Full text of Commercial and Financial Chronicle : January 27, 1955, Vol. 181, No. 5398

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ESTABLISHED 1S39

vvasur
AN 3l 1955

d.

\

Chronicle

Financial

Reg. U. 8. Pat. Office

EDITORIAL

We See It

As
tion

1954

it

as

latter

half

developed in this country during the
of 1953 and the first half or so of

"the

as

The President

Staff Director, Joint

Dr.

depression that did not happen."
of the United States in the annual

explain why the depres¬

happen, or at least to describe what
did happen in lieu of the threatened depression.
He recites continued high consumer spending,
record building construction, high expenditures
for capital goods, ample private credit, construc¬
tion programs by states and localities, "active
ease" by the Federal Reserve authorities, and
tax reductions by the Federal Government.
of

these

dicted

as

of the

of

failure

the

for

nomic

pre¬

was

on

page

MORE

61

grounds for optimism. Notes easing
U. S. exports, and predicts roughly
410,000 vehicles will be sold abroad in 1955, repre¬
senting an increase of 5%. Looks for greater U. S.
of foreign controls on

the future out¬

imports under President's foreign trade
describes

developments have

usually

alert approach in

more

The

ex-,

American

and

imports
in

occurred

will
the

when

1947

,

I doubt if many visionaries
thought, or economic analysts as¬
sumed, that in the short span of the
following 25 years, while overcom¬
ing the twin disasters of deep, pro¬
longed depression and an exhausting
world war, we would:

ously

climb
pent

the

same

the

average

that

Double

national

prices;

exports and imports simultane¬

in

Grover W. Ensley

firm

my

more

a

accom¬

normal peacetime

Commercial exports in 1955 should
rise about 3%

achievements have typically exceed-

Continued
♦An address

is

The signifi¬
point to remember is that, from

of $12.7

one reason

It

economy.

and

the average.

Perhaps

again.

rose

present indications, it will be

Raise real disposable incomes per capita nearly 50%
on

huge
well

time in the postwar era.

man-hour

production

a
as

was

plished in

constant

first

demand

up

-

This

year.

conviction that this year we will at¬
tain this desirable goal for the third

one-

work-week

per

one

purchases from other na¬
not until 1951, follow¬
outbreak of war in Korea,

It

ing the

cant

output

is

our

tions.

75%;

j

in

as

hours;

Increase

1955

of

by the war inspired
jump in U. S. sales abroad

third;
Reduce

for

For the third time

period

in

recovery

the

caused

four

selling abroad.

foreign trade outlook

since the end of World War II, both commercial exports

1920's, when the Nation
thinking in terms of "a new

nearly

from Western Europe

of the most cheerful in many years.

goals; particularly is this true in the eco¬

population

and

program,

will require American auto exporters to adopt new and

area.

Increase

-

marketing opportunities in various countries.

Concludes aggressive competition

era,"

He is,

Continued

on

special reference to automobile sales abroad, Mr.

Diamond points out

In the late

appear.

obviously, not alone in feeling a sense
of relief that we seem to be moving away from
any threat of an early depression, and quite pos¬
sibly crossing the threshold of another strong
upward movement in the rate of business activ¬
ity, employment and in general what is termed
"prosperity." There will be little disposition to

Actual

themselves.

ceeded these

Had he done so he
would have in some instances been saying that
the depression did happen because it did not
happen. There can, however, be no doubt that
he
believes
that
ample private credit, the
sharply altered Federal Reserve policy, and such
reduction in taxes as occurred were helpful in
preventing a recession from burgeoning into a
depression. It is equally clear that the President
is in a self-gratulatory mood in reviewing the
developments of the past year nr two.
depression to

bearing

Corporation

McGraw-IIill International

Discussing the outlook for U. S. foreign trade in 1955
with

as

economic forces that have

McGraw-Hill "American Letter"

Editor,
Economist,

From earliest times Americans have liked to set goals

the President does not present all
"causes"

the Economic Report

look, and gives a projected estimate that the total na¬
tional production potential for 1965 could be about $535
billion, at present prices, or 50% more than the present
rate. Lists as background for this optimistic outlook, our
spirit of enterprise, continuing demand for higher living
standards, and the new mechanics along with the devel¬
opment of skill for making economic adjustments.

sion did not

Of course,

on

factors in the economic outlook for the
assembled by the research staff of the
Joint Committee on the Economic Report. Surveys vari¬
decade

next

ous

in effect undertaken to

Committee

Ensley describes and discusses economic projections

of the leading

has

reports to Congress required of him by law

By WALTER II. DIAMOND*

ENSLEY*

By GROVER W.

Copy

Automobile Exports

During the Next Decade

aptly described the situa¬

a

The Outlook for

Our National Economy

Someone has rather

Cents

40

Price

7, N. Y., Thursday, January 27, 1955

New York

Number 5398

181

Volume

on

page

controls

Walter H. Diamond

above last year's level

billion, thus further reflecting the relaxation of
American goods which was initiated by foreign

on

68

Continued

on

page

64

by Dr. Ensley before the Eighth Annual Forecasting

Greater Philadelphia,

of

Conference, Chamber of Commerce
delphia, Pa., Jan. 13, 1955.

■"An

Phila¬

Club,

address

New

by

York

Mr.

Diamond

City, Jan.

13,

the

before

Overseas

Automotive

1955.

ISSUE—Starting on page 6 will be found those
1955, especially written for the "Chronicle," which could not
accommodated in the "Annual Review and Outlook Issue" of Jan. 20.

BUSINESS FORECASTS IN THIS

business forecasts for
be

Established

U. S. Government,
State and

Municipal

of INDIA.

HAnover 2-3700

CHEMICAL
CORN EXCHANGE

BANK
N.Y.

New

New

and
Trusteeships

THE NATIONAL CITY BANK
OF NEW YORK

of

exchange business.
and Executorships
undertaken

Bond Dept. Teletype:

To

Active

Dealers,

T. L.WATSON &.CO.
Members N. Y. Stock

Miami

NY 1-708

Maintained

Markets

Banks

and

STOCKS

g(HlthwUt
Dallas




COMPANY

BRIDGEPORT

PERTH

Y.
AMBOY

•

Detroit

Beach
•

Geneva,

•

•

Pittsburgh

Coral

Band

Orders

Executed

Canadian Exchanges At

CANADIAN

All

Regular Rates

WIRES TO MONTREAL AND

TORONTO

Goodbody & Co.
MEMBERS

NEW

115 BROADWAY
NEW

YORK

OF THf

CITY

OF NEW YORK

Holland

The

Central Vermont
Public Service Co.
COMMON

Rights
Markets Maintained

Analysis

upon

request

DEPARTMENT

Teletype NY 1-2270
DIRECT

BANK

NATIONAL

Switzerland

Commerce
On

THE

Gables

Beverly Hills, Cal.

Brokers

CANADIAN

Exchange

Stock Exchange

50 BROADWAY, N.

FIRST

Inc.
Trade

Exchange

Canadian Bank of

Our Customers

American

INSURANCE

Cotton

Amsterdam,

Commission

AND

of

N. Y. Cotton Exchange Bldg.
NEW YORK 4, N. Y.
Chicago

SECURITIES

BANK

Exchange

Exchange,

Hollywood, Fla.

Net

122 Years of Service

gt&tltfuv&it

Cotton

Board

Orleans

Bonds

Exchange

Exchange

and other exchanges

£2,851,562

Capital

banking

to

York

Chicago

£4,562,500

Fund
£3,104,687
conducts every description

also

r irst

Stock
Stock

Aden,

Paid-Up
The Bank

York

Commodity

James's Square, S. W. 1.
In India, Pakistan, Ceylon,

Authorized Capital
Reserve

BOND DEPARTMENT

Municipal

Members
New

American

Kenya, Tanganyika.
Uganda, Zanzibar, and Somaliland Protectorate.

Burma,

30 BROAD ST.,

LIMITED

the Government In
Kenya Colony and Uganda
Head Office: 26, Bishopsgate,
London, E. C. 2.
West End
(London) Branch:
13, St.
Branches

1856

H. Hentz & Co.

Bankers to

Securities
telephone:

NATIONAL BANK

Stale and

YORK

STOCK

EXCHANGE

Domwion Securities
Grporatioti
New Y ork 5, N.Y.

Teletype NY 1-702-3

WHltehall 4-8161

Stock Exchange
Principal Exchanges

Members Neu) York
and

other

111

40 Exchange Place,

1 NORTH LA SALLE ST.

CHICAGO

IRAHAUPT&CO.
Broadway, N. Y. 6

WOrth 4-6000
Boston

Teletype NY 1-2708

Telephone:

Enterprise

1820

The Commercial and Financial Chronicle
2

For

•

.

.

Thursday, January 27, 1955

.

(462)

participate and give their reasons

Giddings & Lewis

(The articles contained in this forum are not

and

Naumkeag Steam Cotton

security

1920

has been

fact

this

and

these

to¬

the

se¬

PHILADELPHIA

a

qualities as
as possi¬

bilities

of

Cleveland, Dallas,
San Francisco

million

Specialists in

A
tern

f

Members

York Stock Exchange

American

Exchange

Stock

BROADWAY, NEW YORK I
2-7815

REctor

TEL.

Trading Interest In

This

have

1973.

Barrett Furniture

Industrie.

Commonwealth Natural Gas

intrinsic-

are

These conditions
definitely apply
to Woolworth,
but I also believe that there is a
ally cheap.

Inc

"tfRADFR TAY10R&C0

OIIUWLn, ■HILUnaW.fMV.

utmost importance

Wool-

First of all let us look at

TWX LY 77

LD 39

growth factor that can be

new

Lynchburg, Va.

let

(and with an
! encouraging

Trading Markets in

—

ZILKfl, SM1THER & CO.
Portland-5-Oregon
PD 155

Hoechster Farben

Badische Anilin

Liquid.

per

and their net working cap¬
million.
They have a
current ratio of better than 3%

ital

$127

The more than 2.000 stores

1.

..

,

^y^per5

,r

.

fho

^9

w

inri

+?ana^amn*

l

Britain
2.
makes u.

f

nnn

«00

m

w.

stores;

w—i

wo

-

worth, by far, thelargestvaiety
chain store operation in the world.
Woolworth's holdings

in Wool-

present an unusual picvalues.
Wool-

hidden

of

ture

^

52.7%

sented
its

by

interest

47,430,000

is

favor-

dividend

$2

which may

be

^

increased,

fA

can

Paramount
,

be

garded

r e-

as

an

portion

repre-

51.1%

outstanding

the

through

the

of

This
Woolworth's
$30,880,000. In other
words
this one holding, if valued
dL ifc m^rlrot r\rmo
ic
Txznrth dhVo
at its market price, is worth 46V2
over

is

carried

on

books at only
Members Hew York Stock Exchange

25 Broad

St., New York 4, N. Y.

Phone: HA 2-976S

Tola. NY 1-3222




per

share

means

of

Woolworth.

that you actually can

ST0EHR, Inc.

Established

80 Broad

1926

St., New York 4

Telephone:

DIgby 4-0985

This
buy

saving^

a

last

shares

these

of

^ctt°LTfro7eftoS MO fP™§). This enterprise is the
£c£have from
'on Sf'theatr'S wWch
thP

whprp

district

i«

locatedThe

l

°PeraiinS oveY*uu

^nere tne district the located. from'tal Dominion theatre gross and
is area
I ne accounts for about half of the todistrict covering
.
*
^ieeieeinni
uomimon meatre gross ana
Kansas ni.xr down the Mississippi
City
also has a
50% interest in two
Vaneae

River

has

196

ing area has been hard hit by
drought for the past three years.
This year moisture has been prev¬
alent,
and
the
sales
of these
stores should improve materially.
While self-service has improved
volume

the

sales

of

square

per

fo°t of selling space and is an im-

portan|e

has

been

Woolworth's

wise choice of locations.
-n recen^ years, a

jarj

cen%ge
,
6,

Particu-

large per-

0f ^he new stores opened
.

suburban

th

These stores
built, to the company's speci-

shopping
are

centers.

fications, by the

matic

belt

Canadian

predominately farm¬

This

stores.

Orleans

New

to

center and us-

machines

for

moving

television stations.

Paramount

all the stock
vision

Pictures

also

Productions

L

It al_n ha_

Angplp_

these capital expenditures.

a

to stock these many new

tories,

43,200

owning

class

enlarged stores
All

indications

■F. W.-

"A"

shares and 560,000 class "B" shares

(about 25% of total Dumont stock

CRAIGIE&CO.
RICHMOND, VIRGINIA
Bell System Teletype:

outstanding).
Other factors

(1)

Telephone 3-9137

are

ownership

of

enleipnse are UI ownersnip or
the Paramount Building m New
York citYi (2) 50% interest in
Chromatic
opers of
...„

Laboratories

the Lawrence raw
Color Tele(o\

+1,u„n.

vision tuoe), and ^(3) 64% owneiship in International Telemeter
a

Over-the-Counter

(devel-

Quotation Services
for 41 Years

coin-operated de-

vision programs),

J

National Quotation Bureau
Incorporated
Established 1913

Basic Value of Assets

values

of

the

company's

46 Front Street
CHICAGO

point to

a

con-

RH 83 & 84

in the Paramount

enterprise

The

,

IDS

larffp

stock interest in Dumont Labora¬

and

^
.

CAROLINA
MUNICIPAL E

geies. it also has a large

This station to charge patrons for tele-

leaves extra working capital for
the additional merchandise neces-

NORTH and SOUTH

which

Inc.,

Specialists in

VIRGINIA—WEST VIRGINIA

0perates television station KTLA
.

Since 1932

owns

Paramount Tele¬

of

shares. At merchandise most economically,
about an(j other items which relieves the Corp. (owning

$450 million.

of

LEWIS &

stock

sale

chlnge1) lthis^holding represents comPanY from havin^ to assume vice which permits a transmitting
stock

Bought—Sold—Quoted

rate,

:mod erately

present market price of

value

Batteries, Inc.

t h e

o n

regular
:

to

able manawho is responsible directly to

nrm^nnn^ haSf common. Wool- uaPY include air various auto°Utsta^^nfi7-Prti" lighting fixtures, conditioning,
000,000 shares of
worth's

a

#

.

P°rtant factor tending to improve
T+ri" earnings, of perhaps equal im-

7(7

they hold in Wool worth Ltd.

worth Ltd.

Bayer

million

year,

an+
est
Trading Markets in

$700

over

are

Woolworth's

1954.

in

40%

is

to

V

Farben

dividend

$2.50 per share.
The
stock sold at -35% in 1937 and at
103% in 1929.
The lowest price
at which it has sold since 1945
been

has

sales

Active

annual

the

1947

Since

Stores

Pacific Coast Securities

1912 .

been paidi continuously since
Deen naid continuous y s
ce

Telephone

Western Dept.

stock.

common

Meier & Frank

West Coast

9703 606 shares
of
Dividends have

outstanding

Iron Fireman Mfg.

—

Woolworth Company has

F. W.
Active

.5.3%

,

ger

tor.

A

with

:

; a b 1 e yield of

each supervised by an

study the new growth fac¬

us

General Dry

j outlook along

67%%' of

and then

worth

intrinsic

worth's

Bankers

Broadway, N.Y. 6 COrtlandt 7-5680

$3.60per share

7

f

t,.

Life Insurance Cu. of Va.

Investment

&

sue

by such professional investors. At
market levels they may
start
looking for
"blue chips"
which have not
risen with the

market, and which

Dan River Mills

approxi-

August Huber
attractive
is¬
A natural question is—what are
around
the immediate prospects for Woolworth? The answer is—excellent! its present price of 3 7 %.
Many of the new stores opened in
Business
1954 began operations late in the
year, and their full earnings will
Paramount is a major producer
he felt in 1955. Sixty-seven new
stores are in the process of being of moton picture films with worldbuilt now, and will be in opera- wide distribution. Through ownti°n *n ^le near future; pouring ership of Paramount International
additional earnings into the com- Films, the company has a major
pany.
interest in Famous Players CaThe Woolworth main districts, nadian Corp. Ltd. (reduced from
operation is
divided
into
12

growth factor wanted

these high

Camp Manufacturing

at

111

1897

Office Tokyo—70 Branches

Brokers

times estimated 1954

through lately ten

Contrary to much of the talk
around financial circles, this $7o

has

It

institutions.

by

Co., Ltd.

earnings of

million represents all the borrowing the company contemplates for
the foreseeable future. The exPedited improvement and expansion program will be cornPleted in 1956, and normal imof
them became interested, the provements thereafter will be paid
stock rose a great deal more in
for out of profits
Actually, the
price than mere earnings might only reason this borrowing was
have dictated.
Woolworth is one necessary was the time lost by
of the few really
"blue chips" restrictions on
building during
available
which is not heavily the period 1941 to 1946,
the

stand-

the

"no divi- P°int of tangible assets—about $31
selling

write

Established

from

situated

vision—

Yamaichi

Home

Well

or

Securities

Corp,

Pension Funds and
Insurance Companies, at some time
in the near future. At the time of
recommendation,
Carrier Corp.,
was owned by
only two or three
Mutual Funds.
As more and more

owned

Call

Stock Exchange

Pictures

with

with

knowledge
of Japanese potential.

Per

Trask & Co., New York City,

Paramount

offices

have unusual appeal

investors

investors

Members New York Slock Exchange

exceptionally
rate.

payed leisurely from 1958

good, if perhaps difficult, sysof investing today is to try
a stock that will be a favorinvestment among the many

lacked

American Furniture

may
to

AUGUST HUBER

Mutual Funds,

ffippNNELL & To.

m

.

and American

branch

our

SECURITIES

the

of

worth stores tor on'y
store.

Pfnc^r

to

JAPANESE

domestic Wool-

2,000

The loans nave no mvidend restrictions and will be re- Pei, ^naze

to find

ite

an

loans

The

at- Pa"y-

have both of these

to

than

,

high regard the lending
institutions
have
for
this com-

tributes

Since 1917.

120

Mobile, Ala.
wires

Direct

amazing

an

each

purchase

shows the

B. M. Goldsmith

a p -

pears

Rights & Scrip

at

interest

attractive

Ex¬

change)

more

1Ko

.

improvement pro¬
Woolworth borrowed $35
in 1953 and an additional

of the company

York

Stock

value—to

$40 million recently.
This money
was borrowed solely on the notes

present
price of 51%
(New

in

gram,

at

Woolworth

„

plans call for 150 new
1955.
To facilitate this

what

And

stock.

NY 1-1557

Orleans, La. - Birmingham, Ala.

h-

.

.

brj

Exchange

York 6, N. Y.

HAnover 2-0700

New

Exchange

Stock

chock

american

19 Rector St., New

earn¬
sales

Wnnlwn*th Co. '„n, „„rtn„htWoolworth
will undoubt-

w

York

New

......vcum

expansion and

n

W.

F.

value.

Philadelphia,

stores

un¬

i

of

.

...

efficient self-

more

.

.

,

en¬

hancement

to

Profit margins have been

and present

its

Hew

Steiner,Rouse&Co.
Members

Increased

1955.

for

ings

improved by this move. Over 100
new
stores were opened in 1954,

well

usual

Wires to

conversion

-

.

.

stores

service.

must

curity

representing

,,

old

have defensive

Exchange

Portland, Me., Providence,

best

day,

New York 5
Teletype NY 1-40

Hartford, Houston,

August Huber, of Spencer Trask
& Co., New York City. (Page 2)

new

I suggested

one

likes

Associate Member

Boston, Chicago,

Bought—Sold—Quoted

Paramount Pictures Corporation—

they

Hanseatic
Corporation

Direct Private

the

discuss

us

York City.

New

(Page 2)

W.

F.

Co.,

&

Ira

the matter °f c°ncfr".^°1t^f ufi^fnn coupled w*th improving profit
margins
purchase of Carrier Corp. at about menL
As 1S tyPlcal
P marcHnc should make this stock
ti-iio
more attractive to institutional in¬
$19 per share in these' columns notch management however
vestors.
An awareness by the inas
the security I like best.
In are doing something atout it-Ap
proximately 249 self-service stores
f
UIfderiying
choosing
a
are
now
in
operation
some of va]uesBa^d
th potential of F

New York

BOSTON

Haupt

Louisiana Securities

Company—Bert¬

M. Goldsmith, Partner,

ST™"1 factor-self-service Woolworth's earnings for the past few
h_aZf
siderable improvement in
cline,

Some years ago

Thermal Research

WOrth 4-2300

Stock Exchange

American

F. W. Woolworth Co.

Temco Aircraft

120 Broadway,

New York Stock Exchange

Members:

let

Now

IVcjw York City

intended to be, nor
securities discussed.)

Selections

Wolworth

W.

F.

Woolworth
only about $5.00 per share.

for

Partner, Ira Iiaupt & Co.,

Maule Industries

Stock

particular security.

a

American

the

GOLDSMITH

BERTRAM M.

Long-Bell Lumber of Mo.

Established

they to he regarded, as an offer to sell the

are

Lithium Corp.

American

for favoring

Alabama &

Participants and

Their

ram

Guaranty Trust

•

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

in the investment

I Consolidated Diesel Electric Corp.

Week's

This

Forum

A continuous forum in which, each

Aerovox Corp.

I

Security I Like Best

The

Dealers

Banks, Brokers,

Continued

on

page

12

New

York4,N.Y.

SAN FRANCISCO

1
Number 5398

181

Volume

.

(463)

The Commercial and Financial Chronicle >

INDEX

What About Investment

llCHTflMI

-

Articles and News

Markets in

Page

AND COMPANY

Our National Economy

—Grover W.

By THOMAS GRAHAM*

President, The Bankers Bond Co., Louisville, Ky.

During the Next Decade ?

,

Cover

Ensley

MR. SANDMAN

Diamond--Cover

The Outlook for Automobile Exports—Walter H.

Don't

What About Investment Markets in 1955?—Thomas Graham.^

the persistently rising equities market, promi¬
Mid-West investment banker finds no adequate explana¬

Commenting
nent

tion for

on

proper

—Walter

in 1955.

Spahr--

Who Will Help the

7

I

have

fiscal

a

against

phobia

history

markets.

down

Street"

the

have

I

need for

"tea

1

e

The

many

times

felt

a

As

f

year

—Sen. Styles

Jones
a

s

""

e

10

1.

Bridges

mar¬

were

.

stock

and*

active.

very

might

This, to

say,

less

was

than

accumulated.

by

and

All

of

What Are

wish

I

Poors.

Thomas

Graham

What

and

Standard

I

what

knew

hypodermic needle or
narcotic was being used to stim¬
ulate stocks to unprecedented
levels
up
50%
during
1954
and
100% since 1951.
Even the
recent
two
slight
dips
in the

brand

of

—

only

diminished

have

Averages

slightly the optimism of the "Wall

tickle

to

Market

Strong in 1954

would

to

Surplus

of

each

an

these

.

a

.

in most
stable price level

stall

least

at

or

inflation
Easy

months.

curb

credit

adequate housing . . . bigger
and better municipal services . . .

more

improved educational
facilities
all to match the baby
*boom of the past decade and the
roads

.

.

.

...

■

long-term demand that

brings on.

let me quote our
own Dr.
Charles Williams, VicePresident of the Federal Reserve
Bank in Richmond, Virginia:
.

At

"I
,

out

this point,

do,
for

however, want to hang
a
moment the blinking

'

light—-when

nearly everybody, gets

the late recession period.

The Federal Reserve Board

cently
ments

largely

The

factor.

re¬

margin require¬

increased
—

psychological

a

public—always fickle

in its stock market attitude—as a
result of this and
action

could

"Remarks

by

Mr.

42

20

Editor)

to

Broadway, New York 4

DIgby 4-4970

a

pace

accu¬

that has been

going dizzily along for 18 months
and even start cashing in its chips.
One

of the anachronisms of the

present is that the Treasury De¬
partment has opposed changing
and lowering the "Capital Gains
Tax" which is now the big sup¬

system,

tax

as

espoused

by the Treasury Department—an¬
other

arm

Teletype: NY l-4643.

Frederick G. Shull Discusses "What Convertibility Means"

(Letter

23

Editor)

to

Direct

wires

Salt

Hunting

Vote

(Boxed)

to

Philadelphia

Lake

58

Congress

Consol.

59

Major Budget Reforms Proposed by CED
FI1A Ups Interest Rate on

Diesel

Elec.*

Elco Corp.

59

Debentures

President's Message on Defense of Formosa

Food

60

—

of _the

Mart, Inc.*

1

i,.

'

•

Guild Films,

Inc.

Regular Features

Hycon Mfg. Co. Pref'd* "
See It

We

As

Cover

(Editorial)

Business

*

15

Man's Bookshelf

14

Coming Events in the Investment Field-

We

Policy"

Einzig: 'Sterling Convertibility and U. S. Trade

—

Indications of Current Business Activity..

71

Mutual Funds

250

67

Observations—A. Wilfred May

Our

——

Direct Wires

Railroad

Offerings

Security

.

The Security

.

.

Dan River

72
—

Johnston Testers,

Lipe-Rollway Corp. "A"

2

!

government—

has, in effect locked in the. selling

Continued

on

page

61-

5

The State of Trade and Industry

Lithium Corp.

80

Washington and You

Zonolite Co.,
1

Twice Weekly

Drapers'

land,

The COMMERCIAL and

c/o

Gardens, London,
Edwards & Smith.

specialized in

FINANCIAL CHRONICLE

PREFERRED STOCKS

25

B.

Park

DANA

HERBERT

COMPANY, Publishers
New

Place,

2-9570

REctor

Members New York Stock Exchange

York

7,

DANA

Y.

25

BROAD

ST., NEW YORK 4, N.

SEIBERT,

Thursday, January 27,

Y.

TELETYPE N. Y. 1-5

•

Every

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-Nashville




•

•

Chicago

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•
•

Glens
Worcester

Falls

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Pan-American

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1955

issue)

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—

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135

etc).
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(Telephone

Bank

year:

per

S.
of

Salle

St.,

Note—On

STate 2-0G13);

rate

of

in

year.

of

Record

the

—

fluctuations

In

exchange, remittances for for¬

eign subscriptions and advertisements must

WETtffade

in

New

York

funds.

YORK 6

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Teletype NY 1-4040
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& 4041

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Monthly,
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Publications

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the

La

and

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Subscriptions -in

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

statistical

State" arid
-

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vertising
plete

.

second-class matter Febru¬

as

Subscription

to 9576

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N.

Cap.

Eng¬

25, 1942, at the post office at New
York, N. Y., under the Act of March 8, 1879.

Other

TELEPHONE HAnover 24300

C.

ary

WILLIAM

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Reentered

Reg. U. S. Patent Office

E.

1955 by William B. Dana
Company

Copyright

have

Inc.

r

16

and You—By Walace Streete

I Like Best

Mills, Inc.

77
22

Securities Salesman's Corner
The Market

Cinerama Productions

24

Securities

Securities Now in Registration

Prospective

to

4

24

Securities

Utility

Exchange PL, N. Y.

79

Reporter's Report

Public

40

23

Governments

Our Reporter on

more

Philadelphia.. Chicago.. Los Angeles

16

Bankers

in

securities.

Teletype NY 1-1825 & NY 1-1826

14

Notes

News About Banks and

Request

markets

over-the-counter

HA 2-0270

NSTA

on

trading

Singer, Bean
& MACKIE, Inc.

20
10

Washington Ahead of the News—Carlisle Bargeron

Prospectus

viaintain

than

8

Dealer-Broker Investment Recommendations

From

Stancan Uranium*

12

Bank and Insurance Stocks

Published

For many years we

&

City

57

-

Submits Economic Report to

President

possible further

suddenly quit

mulating at

present
Graham in connec¬
tion with panel discussion of "The Busi¬
ness
Outlook for 1955" at the January
Forecast
Meeting
of
the
Purchasing
Agents Association of Louisville, Louis¬
ville, Ky., Jan. 18, 1955.
,

(Letter

you

as

everybody,
out the
big drum, as seems to be the case porting factor in the market and
today, and beats it loudly to the which makes many investors un¬
accompaniment of the theme song, willing to take profits because of
The
'Happy Days Are Here Again,' "capital gains" inhibitions.
warning

/or

J. F. REILLY & CO.

12

Shape, Says Mrs. Mary Roebling___,

S. A. Loftus Warns Armament Race Will Lead to War

the "coming

in

money,

'

-

11

Funston

or

know, is in part at least an arti¬
rising
equities' market ficial situation resulting from a
alongside a strong bond market. phenomenal savings rate on the
As far as the latter is concerned, part of the American public. And
1 have no reason to doubt its con- a deliberate policy of monetary
tinuance. Particularly in the "mu¬ ease ("active ease" they call it in
nicipal" sector. Both here in the Washington)
that has provided
Commonwealth of Kentucky and excess bank reserves throughout

-

Keith

.

rapidly

throughout the nation people long
since have decided they will get

.

capacity

razor-sharp competition. All
of which can be expected to fore¬
.

price

know, 1954 brought that
relatively rare phenomenon — a
As yon

to

see

assumptions. None is an odds-on
bet in
my
book. ; What are the
industries

6

never-ending boom?

a

caveat

facts?

Green River Uranium
—

Facts?

market

respectfully throw in

audible

of Jan. 20

Outlook Issue"

Review and

Monthly Investment Plans Total 28,800, According to

its

support

I

.

Both Equities and Bond

the

the

does

fancy in such heavyfingered fashion? Inflation? Easy
money?
Ever-continuing growth

Street" groups.

'

(Current Year business forecast especially prepared for
"Chronicle" which could not be included in our

"Annual

Stock Market in Good

in-

.

.

of the Year

which

that many securities prices

ever y

pore

Federal Uranium

»

*

the

rather

responding
to
something
other than the^ known facts of life.

eluding

*

Finance Speaks After the Turn

and

Business

were

t i m i s-m

Stancan Uranium

22

Business Worries—Roger W. Babson

because

good;

•>

!

George M. Humphrey

many ana¬

reduced

were

Sabre Uranium

Trade Agreements Program

Main Objectives of the

—Hon.

_

15

18

G. Thompson.

What's Ahead in 1955 for Real Estate—Stephen

violent¬

were

you

.

mysterious

was

means

oozes

Lisbon Uranium
13

—William G. Maas

large, profits were thinner, espe¬
cially in smaller businesses, and

ket, in partic¬

from

.

inventories

equities

p

both

particular

business

i n e

Amuranium

11

Stockholder Relations

The Role of the Security Analyst in

*

lysts,

many

months.

0

markets

"radioactive."

have

ing good times

ular,

longer,

or

active

ly

been tr"i~,r^*-

for

know, during the past

you

Stocks in

Aver-

g

to do is to sober
things in proper

get

.

Dow-

STREET, NEW YORK

Telephone: WHitehall 4-6551

perspective."

a

bond

reader."

-

thing

and

obsoletes!

to whisper that the

seems

prudent

concerning securities
After 35 years on "Fifth

dream

9

Railroads?—Fred Smith

What About Aviation in 1955?—Mundy L. Peale

predictions

a

guys

Coming Legislation and Business Prospects

:

r

us

Obsolete Securities Dept.

5

—

Dutch Bulbs—Ira U. Cobleigh-

have to make is likely to be short and not too exten¬
Looks for a "selective," but not a major market decline
4

stuck with

99 WALL

may

sive.

E.

send

—just lots of

Section 7 of Federal Reserve Act Still Violated

for economic optimism,

we

.

4

;—Malcolm P. McNair

perspective. Sees basis, however,
and points out business improvement
in recent years has been better than that of the stock market.
Finds principal stock market threat in 1955 may come from
the field of industrial relations, but says any correction that
things in

3

1955

for Department Store Profits in

The Outlook

it, but infers that prudence may require a sobering

down to get

3

LOS ANGELES

ARTHUR L. WRIGHT & CO., INC.

PHILADELPHIA

4

The Commercial and Financial Chronicle

(464)

busi¬
which
took
place in that year. If anything, it
is
somewhat
better than might

.

.

.

Thursday, January 27, 1955

the character of the general

The Outlook (01

Department

have been

Store Profits in 1955
By MALCOLM P.

McNAIR*

School of Business Administration

Harvard Graduate

readjustment

ness

reviews

department

sketch

influences contributing to

the

spending

as

approximately $356
billion, as against the 1953 total of
about $365 billion, a decline of
only about 2lk%.1 Meanwhile the
basis)

adjustment. In looking into the future, Prof. McNair dis¬
cusses such factors as:
(1) government spending; (2) capital

(3) inventories; (4) con¬
and credit questions. Con¬
cludes, on the whole, we are probably headed for another year
of stable prices, and there is ample justification for predict¬
ing good business conditions during next six months.
outlays for plant and equipment;

hension
the

and

extent

possible

appre¬
regard to

in

voiced

was

time

this

at

conse¬

er

As

of

level

high

maintained

critical

credit

con¬

can

be appropriated by

can

the

questions was department stores. I would even
well the say that some of it probably be¬
volume
of longs to the discount houses, and
consumer
certainly some of it goes to the
s p e nd i n
g supermarkets.
how

be

would

maintained.
In

the

report

of

the

Com¬

mittee

on

merchants

spending
passive

toward

must

consumer

be

not

merely

a

In other words,

one.

con¬

spending is something that

sumer

retailers

and should do

can

thing about.

some¬

To quote from the

introduction to that report: "Thus
fundamental concept is that

the

retailing

highly

significant
factor in the total economy must
at all times (except in the event
of

as

a

war) carry the burden of pro¬
a
steady andincreasing

moting

business

was

second

a

Getting

pressant.

latter part

the

reduction

by

major de¬

under

in

way

of 1953, inventory
aggregated more

has

than $4

billion,3 the effect on pro¬
duction as between the high point
the low

and

point, of course, be¬
substantially
double
that

ing

since

production
loses
both the amount of the previous

increase
the

the

also

and

of

amount

ensuing decrease.

flow of goods and services into the

hands of consumers."

Now,
that

one

the

level

of

year

later, it is clear
of a high

maintenance
consumer

spending

was

of the most important reasons

one

total, for the usual fiscal year
ending Jan. 31, department store
sales on a national basis appar¬
ently will be just a shade short of
the 1953 figures, almost certainly

to

1%.

The gross margin percent¬
age
during the year exhibited
practically no change.
Slightly
higher markdowns in the early
(2)

part of
a

the

year

were

overcome

somewhat better cumulative

was

with other similar

periods

moderate and that much sta¬

bility

was

contributed

by

the

maintained high level of consum*

An

eral years,

again moved up, par¬
ticularly in the spring season,
though less noticeably in the fall.

favorable,

by

Prof. McNair before
the National Retail Dry Goods Associa¬
tion, New York City, Jan. 10, 1955.

on

the

average,

than

Private housing, contrary
prediction of many ex¬

the

perts, continued its strong growth,
particularly under the impetus of
easier credit provided under the
new legislation
passed in August.

total

(2) The

outcome

predictions
a

partment
1954

is

Giant On Parade

ning

at

Total

industry in New Jersey
everything from
trical machinery
represent
industries
and any number of
.

factor, as
strongly
spending, run¬
was

consumer

annual

an

billion

of

as

the

rate

of

third

$235

quarter.5

income

consumer

is

close

to

the

declined

of

as a consequence

made

by many ob¬
and such a de¬
performance for

year ago,

some¬

store

obviously consistent with

greater unemployment and
lessening of overtime. On the
other hand, increases in dividends
the

the

and

flow

of

benefits served

ing

factors.

tion

not

was

to

came

counterbalance

as

the

great,

effect

personal

net

and

consumer

the

in

unemployment

Hence

de¬

when

disposable
the

of

taxes

reduc¬

was

suf¬

ficient to give consumers
actually
more dollars to
spend in 1954 than

...

1953.

where 23,000 fac¬
chemicals to elec¬
9 out of every 10
investment oppor¬

in

there

in

On

consumer

has

top of the increase
disposable income

also

been

a

savings during 1954.

decrease

Between

the

beginning and end of the

the

savings figures at the annual

year

rate have dropped
by more than
$3 billion, from $21.8 billion to
$18.4 billion.5
This decline be¬

tunities.

Examples?

tokens

American Insurance Co.

National Newark & Essex

Thos. A. Edison Inc., "B"

New Jersey Natural Gas Co.

Fidelity Union Trust Co.

Purolator Products Inc.

Fireman's Insurance Co. of Newark

South Jersey Gas Co.

First National Bank of Jersey City

Suburban

For latest market

Banking

consumer

confidence and also the effective¬
ness

of

tailers'

manufacturers'

merchandising

and

and

re¬

pro¬

(3) Partly offsetting the decline
in

Federal

spending for national

Continued

—

Trading Department

ICouncil
nomic




NEW YORK 5,

Offices in 106 Cities

below

that

of

produc¬
1952

and

1953, steel stocks went up?"

A.

Wilfred

"Why, with a similar situa¬
reflected in rails, oils,

tion

May

J. W. Fulbright

chemicals, and other products,
the securities

of those industries boomed?" ....
comparison of the volume and quality of stock trans¬
credit now outstanding with that of 1929 suggest reasons

"Does
actions

a

on

for caution now?"

^

-

Actually, the hard fact is that constantly through the years
has there been a lack of "logical" correlation between effective
sentiment affecting

market

factors.

the price structure, and the external
/■vV:'
.

Earlier Divergence

m1

wartime commodity price inflation of 1917, the
stock averages declined a full 50% during a seven-month period.
In the 1920's, even before the onset of the Speculative Embroglio, security prices behaved counter to the course of both
industrial production fluctuations and commodity prices.
Again, in the SEC de-manipulated markets of the mid-30's,
the great bull market of 1935-37 had little foundation in either
general business conditions or the trends of particular industries.
During the first quarter of 1936, in the face of a decline of 27%
in industrial production, the common stock averages rose by 8%.
The price of wheat, corn, rye, oats, eggs, and tin all dropped
appreciably in the 12 months following April 1935—a period, when
During the

the market value of all stocks listed on

the Stock Exchange rose

$32 billion to $51 billion), and the New York
"Times" average of 50 stocks advanced from 78 to 125. The sudden
60%

by

(from

change in the market community's valuation ideas was manifested
12-month

in the

rise in the price-earnings ratios of many issues
The average of dividend yields declined to

15 to 35 and 40.

from 4.71%.

The succeeding market decline

during the third and fourth

quarters,of 1937 far outran the concomitant business recession.
t

i

'

Market Credit Not Controlling

of

on

1936 the margin limits were made more stringent
lowering of maximum loan value from 55% to 45%;
and conversely, in the following October, the maximum loan
value was raised from 45% to 60% of market value—all without
On Feb. 1,

through

effect

a

the

on

of stock prices.

course

During the following decade of the 40's, stock prices in gen¬
eral and market sentiment once more failed to show correlation

production, commodity prices or the level of corporate prof¬
1946 to 1947 the per share earnings on the issues com¬

with
its.

From

prising

the

Industrial

Dow-Jones

Average

40%

by

rose

Economic

Indicators,

N. Y.

2Survey
ber, 1954,

p.

of

Advisers,
December, 1954,

p.

Current

Business,

midst

a

average

profits.

doubling of over-all corporate

industrial

Midst the great

production rise and general business boom of 1946, the

of stock prices actually declined by 22%.

From the

peak of 1950 the average of company earnings in

general has fallen, while the stock averages have

doubled.

seemingly relevant business and financial factors.
The

been

which

questions

puzzling stock

should be pursued

not

in

are

•

*

intriguing Senator Fulbright have

market observers for

over

a

century.

3Council of Economic Advisers,
19.

the

halls

of

non-political environment and

NOW AVAILABLE.

•

•

The NEWLING CANADIAN LETTER
A

fortnightly review of the Canadian Securities Markets

FREE COPY UPON

4Ibid,
5Ibid,
6Ibid,

p.

16.

p.

24.

■

NEWLING & CO.
•*#*

Exchange

cit..

21 West 44th

Street, New York 36, N. Y.

2.

p.

REQUEST

MUrray Hill 2-4545

Members of the Toronto Stock
op.

They

(in the absence of accompanying manipulative

the Congress, but in a wholly
with the appropriate facilities of
scientific research—with the generous cooperation of psychology
departments including those working in the field of crowd behavior!
practices)

2.

2.

•

;

Thus, there is nothing at all new about the recent divergences
between stock market sentiment and prices, and the course of

Eco¬
p.

Novem¬

(from

$13.63 to $18.80), yet the mean of their market price range fell by
7%. During the four postwar years share prices gained only 4%

62

page

!

*

And, Senator Fulbright, please note that that bull movement
with a long succession of 3-million-share days rested on a cash
basis of non-marginal purchases.

■

Merrill Lyncii, Pierce, Fenner & Beane
70 PINE STREET

products, investment in
affected
ap¬

motion.

Propane Gas Corp.

information, just call

both maintained

on

starts

new

plus

earlier,

sustained

in

.

of

what

This

NEW JERSEY

.

major

indicated

it

—

number

whole

apparently will be approximately
1,200,000. Needless to point out,
this activity involves a substan¬
tial expansion of credit.

income

tories turn out

year 3s a

J

securities

tion

one-fifth greater than in October,

1953; and for the

p^'7Tr7—*1

wit:

peared to go up?"
"Why, with steel

3.62%

new

crease

That's

the

ber

of

majority

down,

sumer

from

instance, the num¬
housing starts was

a

the

when
carloadings'
indicating
a
weakened distribution of con¬

In October, for

slightly

the 1953 results.

servers

address

(1)

powerful

operative.

were

with

"Why,

were

;

(3) The expense rate, continu¬
ing a tendency manifest for sev¬

(4) The net result when the
why the business readjustment of
1954 turned out to be a relatively books are closed at the end of this
mild one. The major facts, name¬ month thus will be an earnings
ly, that the readjustment com¬ figure after taxes slightly less
pared

several

sustaining factors

the

markon.

1954

in

ences

In

do

to

economic factors

other—to

the

for

reduction

Inventory

have

and

ness

sharply; by
the
third
of
the
year,
defense
spending was running at an an¬
nual rate $12 billion less than in
the second quarter of 1953.2
(2)

four

price movements on the one
hand, and the concurrent busi¬

creased

business
in 1954 behaved substantially ac-_
cording to forecast:

by

of

discrepancy between the stock

quarter

amount,

that the department store

spending

Government

(1)

aside the question of
where credit belongs, the fact is
Leaving

by less than

unusual, almost perpendicular" rises in security prices,

national defense purposes has de¬

Dynamic

M. p. McN*'V

specific questions announced by Senator Ful¬
forming the basis, of his Banking and Currency Com¬
forthcoming "friendly investigation" of the recent "very

as

mittee's

of Indus¬

Index

Reserve

(3) Capital goods expenditures
business have been edging
(1) Sales were down about 3% by
Retailing in the Modern Econ¬
in the spring season.
Somewhat down throughout 1954, reaching a
omy, which we presented to you
irregular recovery ensued in the point in the fourth quarter nearly
at this gathering last year, we
fall; and Christmas business, in $2% billion less at the annual rate
emphasized particularly the
most regions of the country, at than for the third quarter of 1953.4
thought that the attitude of retail
Against these depressing influ¬
least, reached new high figures.
Prof.

bright

seven

dropped about
7%.
The
principal
influences
operating to pull down the gross
national product include the fol¬
lowing:

be given to the ac¬
quences of the business readjust¬
ment which tivities of retailers, opinions will
was
then differ. For my own part I think
clearly
under that the answer is "more than a
way. Itwas little;" but in the same breath I
widely agreed hasten to say that in my opinion
that on e o f not all this "more than a little"
the

the

Production

trial

spending, cannot be gainsaid.
to how much credit for the

sumption

VERSUS SCIENTIFIC STUDY
Of

was

Federal

struction, and (5) fiscal, monetary

year

(calendar-year

1954

for

Product

National

Gross

the

total

In

ness

Last

CONGRESSIONAL INVESTIGATION

background for estimat¬

a

business picture.

moderate character of busi¬

very

By A. WILFRED MAY

ing the probable balance of fac¬
tors'which will control the 1955

aiding busi¬
in 1954, prominent retail store analyst
store operations during past year and the

Stressing the high level of consumer

Observations.

expected.

point it is appropriate to
comment briefly on the general
balance
of factors
in
the 1954
business
situation
in
order
to
At this

Professor of Retailing,

Lincoln Filene

readjustment

ness

Direct

Private

Wires

to

Canada

Volume

181

Number 5398

.

5

(465)

The Commercial and Financial Chronicle

..

eral Reserve Assistance In Financ¬

Steel

The

7 of Federal Reserve

Production

Trade

Retail

State of Trade

Commodity Price

Index

Auto

Industry

Production

Economists' National Committee

period ended on Wednesday of the past week was about
higher than in the corresponding period a year ago..
v

as

whole

a

,

Gains

in

the

^

coal, electric power,

of bituminous

production

;

crude oil, lumber, paperboard and meat brought
industrial output above the level of the preceding week.
automobiles,

The latest

|

reports on

1

higher than in the prior week and 11% above
a year ago.
Plant shutdowns for inventory taking and reschedul¬
ing of claims for the new year contributed to the increase. Initial
claims filed in the week ended Jan. 8 rose 11% above the previous

period of 1954.
Post-Christmas layoffs in retail trade and seasonal reductions in
outdoor work, food processing and the production of textiles and
apparel accounted for the weekly rise.
and

week

were

8%

the

below

corresponding

The steel industry is now producing at an annual rate of 107,000,000 net tons per year, compared to 87,300,000 tons actually
produced in 1954, states "The Iron Age," national metalworking
weekly this week.
■■■{ Steelmaking operations the current week are scheduled at
84.0% of rated capacity, up one point from last week's revised
rate.
Still higher rates may be anticipated. Within the next few
weeks the steelmaking rate is expected to pass 85%
of rated

capacity.
be

that

remembered

about

a

of the

fifth

official

capacity is being carried as a defense reserve. So, according
journal, the steel industry is really operating at 100%
of its peacetime capacity.

rated

to this trade
or

Board

Federal

5:

System, Jan.

In

instances the defense

many

capacity would have

reserve

scrapped if the government had not asked steel companies

keep it standing

extreme

comes

so

that it could be used in event of war or

so

emergency.

efficient.

Much of this reserve capacity is old or in¬
only when demand be¬

Steel companies will employ it

is

20,000,000 or more net tons. The industry's official capacity this
year is rated at 125,800,000 net tons.
Evidence

"The

of steel

Iron

gray

Age"

has

market activity continues to accumu¬

confirmed

market reports

gray

from

Pittsburgh, Cleveland and Chicago, as "fast buck" brokers attempt
to capitalize on the very tight market for flat-rolled steel.
Prod¬
ucts affected are cold-rolled sheets, galvanized sheets and enamel¬
ing sheets, it reports.
In

the

second-highest passenger
"Ward's

Automotive

production in United States history.
estimated Jan. 17-22 car out¬

car

Reports"

164,876 completions during the
ending June 17, 1950 and added: "but for the lack of major
components at Chrysler Corp., the past week's car volume would
put would be second only to the
week

have established

a

new

all-time record."

latter

shortages permitted only

DeSoto to operate Sat¬

approxi¬
the net earnings

of

dividends, of

after

Federal

Reserve

1947,

30.

p.

specifically that
this interest

of

purpose

charge is to pay into the Treasury

on Banking and Currency,
of Representatives on H.R.

3-5,

said

release

"The

approximately
earnings of

It

the

90%
of the net
Federal Reserve

Banks for

ing

issue; Eccles injected his proposal
into these hearings, and later, in

Despite the clear and well-rec¬
ognized meaning of Section 7, and
of Section 16 (4), and the fact that

the

year

1954 their
rent

cur¬

earnings

a

devoted

were

similar

to

different

a

hearings,

in

manner,

amounted to

$438

Committee.)

miliion,

decrease

There

of

official

compared
with

as

1953.

sult

very

of

E.

Walter

securities. Earnings from discounts
banks

member

lion.
in

mil¬
million

$3

were

with

compared

$15

"Current expenses in

1953),

($4

leaving

of

1954 were

million below
current net earn¬

million

ings

million, compared
million in 1953.

$328

with $398

"Payments

of

divi¬

statutory

dends to member banks amounted
to

$16 million. In accordance with

under which the
bulk of net earnings is transferred
to the United States Government,

System

the

policy,

Federal

$276

ion of

Said

one

interest

the

to

fact, but chose
an opin¬

Eccles

the

at

hearings

original

act to
on

meant for that

lawyers

our

Board could
have

a

of

It

of

tion."

rate

gold

by

advise
use

that

us

lawyers on that

Later

in

hearings

on

reasonable

to

Banking and Currency

that

of

significance

not

that

at

time,

not

were

the

in

any

to

for

the

Reserve banks should be

ques¬

Continued

Fed-

make

on

Board

page

as

We wish to

announce

GEORGE J.

Section 7 of the Federal Reserve

that

VVUNSCH

Act, devoted to "Division of Earn¬

ings" reads: "After all necessary
expenses
of a
Federal
reserve
bank shall have been paid or pro¬
vided

is

United

now

associated with this firm in

States

our

Government Bond Department

the stockholders shall

for,

entitled

receive

to

dividend of

6

annual

an

centum on the

per

paid-in capital stock, which divi¬

Mercury had all assembly workshops going Saturday except Los

the aforesaid dividend claims have

Spearheading
General Motors.'

shall

dend

been

near-top industry mark, however, was
Chevrolet. Pontiac. Oldsmobile and Buick were

the

Continued

on

page

the net earnings

fully met,

shall be paid

After

cumulative.

be

into the surplus fund

of the Federal

The meaning and intent of Sec¬

69

tion 7 should be clear.

m

circles

Reserve

students

and

incorporated

3 7 Wall

Street, New York 5, N. Y.

January 24, 1955

by close

Federal

the

of

J.Cj. WHITE 6c COMPANY

They were

always understood in official Fed¬
eral

founded 1890

bank."

reserve

Reserve

System, and they were always re¬
spected by Federal Reserve au¬
thorities, until the Board decided
in

that

1947

large

Federal

partners

it

portion

wished

of

the

banks

Reserve

States

United

to

give

earnings

Treasury

a

of

We

the

to

are

pleased to

the

announce

opening of

our

without

waiting 1o recommend to Congress
an

amendment of Section 7 to au¬

PHILADELPHIA OFFICE
J

■

progress

THEOIHIO COMPANY




thorize

plan

such

The

action.

Board's

to give to the Treasury

was

approximately 90% of these earn¬
ings (after dividends)
most of
which
were
derived from the

.

jj

Fidelity-Philadelphia Trust Bldg.

123 South Broad Street
Tel. KIngsley 5-0856

•

heavy investments by these banks
government securities.

Teletype: Pit 1185

in

Instead

underwriters

gress

distributors

of

Federal

the

proper

to Con¬
amendment

presenting

of

proposal

a

for

Reserve

Act,

as

procedure required, Chair¬
of the Board stated

under the management

MR. ALBERT

of

YEATTS, JR.

Eccles

man
™

'fa*'/'/,
'

'

'

'

"

'
<

y

'

the

that

■

'

''

'

/'

/

j

'

Board

had

been

advised

by its lawyers that its proposal to
give away 90% of the earnings of
the

Reserve

tified

on

banks

the

could

ground

be

that

jus¬

such

payment could be regarded as "in¬
terest" on
under

Federal

Section

16

Reserve

(4)

notes

of the Act.

EASTERN SECURITIES, INC.
New York 5, N. Y.

120 Broadway,
Ttl- Dlgby

9-3550

,

•

an

Teletype NY 1-4127

or

expected

$3-3

of

plan
event,

this violation of law,

difficulties

no

Board's

the
or.

disposed

issue out of

from

1947

they did not understand the

added to surplus."

were

the

suppose

Committees demonstrated in

that authority—I

here

had

notes."

Reserve

seems

and Senate

of

that

was

has

Board

the

that because members of the House

particular purpose,

memorandum
our

a

circulation

note

unsecured

was

one

charge

quality of the opin¬

paid

Treasury

earnings

net

Federal

the House Committee cited above:
"Although the authority in the

Federal Reserve notes.

on

Remaining
million

Banks

Reserve

million

a

Reserve

recognized

temerity to state, year after year,
beginning in 1947, as illustrated
by the press releases of 1947 and
1955, that such payment to the
Treasury is made "as interest on

of the Board's lawyers.

interest

1953.

$110

torneys,

with

accordance

to act in accordance with

Spahr

yield
holdings of U. S. Government

for

in

ognized this to be

re¬

lower

average
on

"interest"

have

ion of the Board's attorney, or at¬

sense

the provision, intent, or history of
that Section. Eccles evidently rec¬

decrease

largely the

proper

which

$75 million

was

no

Federal

should

the erroneous

>

is

in
this dissipation of Federal
Reserve earnings could be treated

a

1947."

competent

any

mentioned below, before a Senate

urday among the Chrysler car divisions. Elsewhere, Ford Division
had all 16 of its assembly plants working six days, while LincolnAngeles.

the

of

each

ings

be

The

90%

mately

should be observed that tne Hear¬

automotive

industry an all-time peak at General,
Motors, a postwar record at Ford Motor Co., plus the strongest
Independent volume in 57 weeks were vital factors in last week's

By

2233, March

indi¬

Banks

strong they are compelled to bring it back into produc¬

admittedly difficult to draw an exact line through the
industry's capacity and say that all to the left of it is marginal
reserve.
But a careful check of industry sources by "The Iron
Age" places the marginal capacity conservatively at 15,000,000 to

late.

transmit to the Treasury

cate that dur¬

tion, continues this trade magazine.
It

will make it possible to

as

The

House

Reserve

1

era

of

decided to establish such rates

interest

Banks, Hearings Before the Com-

from the Fed-

-

t

Federal Reserve Banks for 1947."

received mittee

figures

'Preliminary

23, 1947, the Reserve
a
release (Z-2040)

issued

in which it stated that it "has now

Securities

the

of

Governors

of

Reserve

On April

>

Board

(Direct Purchases of Government

release by

press

a

more

been

to

the

This

should

It

Following is

10%

were

tending to do. ..."
<

Continued claims filed in the week ended

discouraging, however.
Jan.

insurance claims were

unemployment

merely mentioning'
today as what we are in¬

it here

.

,

and that "I ani

Spahr presents data supporting his contention that by
turning over to the'Treasury an undue proportion of the net
earnings of the Federal Reserve Banks, the Federal Reserve
authorities have violated Section 7 of the Federal Reserve Act,
which provides that, after cumulative dividends of 6% per
annum have been paid to the shareholders, "the net earnings,
shall be paid into the surplus fund of the Federal Reserve Bank."

5%

nation

the

"possibly

earnings of Federal
banks to the Treasury,

Reserve

Monetary Policy

on

16 to pay

of the

90%"

•'

Dr.

the

for

University
Executive Vice-President,

Business Failures

in

output

Professor of Economics, New York

,

J
industrial

under Section

By WALTER E. SPAHR

Food Price Index

,

Total

States Senate, on S. 408
(April 17,1947), he said, pp. 22-23,
that the Board had the authority
United

Act Still Violated!

Carloadings

and

ing Small Business, by the Com¬
mittee on Banking and Currency,

Electric Output

66

6

(466)

The

Business and Finance Speaks
K.

S.

The statistical position of the oil

which had

A***

HARRISON

industry in the clos¬

FORECASTS

forecasts

k

Much

its

\yhich showed local

during

most

ened at

year-end.

demand

is

normal

with

last

of

Prices,

companies with

weaknesses

area

strength¬

year,

During 1955, U. S.
to resume its

serious

pose

dangers

resources

—

natural

crude oil.

producers' natural gas sales to interstate gas pipe¬
are
subject to regulation by the Federal Power
the

reversed

oft-stated

opinion

Commission that these sales

regulation,

Gas

the

not

were

imposing

Act.

of

This

Federal

Power

time

first

public

utility status on the sale of a commodity produced and
sold competitively, with none of the characteristics of
a

utility, is not only of direct concern to each independ¬
oil and gas producer but to all competitive
busi¬

ent

peared.
opinion should be a warning to us,'
but insofar as the insurance business
itself

concerned,

is

can

we

be in-

*

available, there is

,

natural

This is

gas.

gas

supplies for the

and

more

the

and

of

certain

future

as

in

this

in

force

country

rate

of

ings

on

reduction

of

interstate

rate

of

producers channel

more

develop

As

less

incentive

market

Court's

new

rather

than

immediate
several

decision,

efforts have been made to
supplies of gas within the producing states

to

sell

effect

them

projected

in

interstate

curtailment

was

interstate

new

The

commerce.

abandonment

or

of

pipelines.

Thus, gas
states, because of regu¬
dwindling of their future supply, and as
result, eventually higher prices. At the most they could

consumers

outside the producing

lation, face

a

expect only
tion

since

a very small temporary saving from
regula¬
producers receive on the average only about

10% of the amount household

consumers pay

for natural

gas.
So

long

it operates in the shadow of Federal regula¬
tion of natural gas
production, the petroleum industry
and other competitive industries face a more serious
threat

as

which

endangers the nation's historic economic
of free enterprise. That threat is that Federal

system

control will be extended
tive

eventually to all other competi¬

industries.

The only solution

to this problem is the enactment of

Congressional legislation which will clearly exempt in¬
dependent gas producers and gatherers from Federal
regulation in language which no one can misinterpret.
Another major industry problem is
posed by continued
excessive

importation of crude oil. Throughout the year,
the spotlight was on the need to
adjust imports to levels
that would not discourage domestic
discovery and devel¬
opment activities. Domestic producers have been badly
hurt by greatly reduced allowable
production rates as
foreign crude oil has supplanted domestic crude oil to
an

alarming extent.

Total United

2%

States crude oil supply
during 1954 was
below the level of 1953. After
many months of ex¬

cessive

as

inventories, the relationship of supply to demand

Las improved in recent months.
However, total imports,
Which were already excessive in
1953, were increased.

Thus, domestic producers largely bore the brunt of the
of supply even
though some major importers
reduced their volumes of
imports during the year. As

less

remedy is

a

Some
nust

soon

solution

to

applied.
the

of

excessive

found, not only for economic, but also
security reasons. The nation can not risk

imports
for
a

defense
with

promptly

the

crucial

products essential to survival.
The

recent

improvement

tivity has caused

a

tie outlook for the
both

pects

major

emergency with foreign supplies cut off and
the domestic
industry too far behind in developed
to provide

production

for

na¬

of

general

future.

the conventional

the

petroleum




in

petroleum

Federal

Looking to 1955,

income

for

taxes

the

in¬

continue

favorable.

Also, there is every reason
Assuming general
at least as good as in 1954, the insurance in¬
dustry will provide more insurance protection through
greater sales efforts. It should be realized that the po¬
tential market for insurance is still very inadequately
covered.
On the average, life insurance per family is
the equivalent of only a little more than one year's an¬
sales

for

of

insurance

increase.

to

business is

income.

nual

•

It

is

in

the

investment

field

that

conditions

'

&

appear

uncertain
an

and only fairly satisfactory.
There should be
ample supply of mortgages, particularly guaranteed

and also of tax exempt revenue issues. On
the other hand, the demand for money by corporations
for new plants and equipment will probably be lower
because first, it is expected that new corporate construc¬
mortgages,

tion

will

second,

decline

due

to

slightly when

compared to 1954 and
amortization
plus greater
that corporations will be

accelerated

depreciation,

it is probable
generate internally larger amounts of dollars.
On the money supply side, we expect the
gradual in¬

able

to

of funds

crease

there will be

seeking investment to continue. Whether

an

imbalance between the demand

supply, time will tell.

and the

Perhaps, however, the most im¬

portant factor affecting the level

of interest rates will
be the attitude and actions of the Federal Reserve. From
the middle of 1953 until very

recently, the policy of the

Federal

Reserve

has resulted in

a

has

been

one

of

"active

ease"

which

substantial decline in interest rates.

revival

of

business

optimism

ac¬

about

Long-term growth prospects
phases and the chemical as¬

industry

are

excellent.

Those

that

sharpen

At

can

for

a lot of hard work to make it so.
This
healthy and prosperous business outlook.:
and the production manager have

a

sales

The

manager

in the future.

Naturally,
interested
cause

and

in the life insurance business are much

we

in

overall

the

depend

we

that

should

policyholders and, in fact, to
inflation.

In

recent

years.

be

of

every

when

years

concern

to

American is that of

industry

runs

into

difficult times, the tendency has been for those affected
run

This

to

Washington and demand help

ordinarily

means

spending

more

or

protection.

dollars

directly

indirectly and in turn larger governmental deficits.

or

Over

a

long period of time, this

ther deterioration in the

Each

person

must

do

can

purchasing

his

utmost

to

salaries,

or wages, for our business.
People will
if they can and from the experiences of the past
have had no difficulty in showing that there is no

we

than life insurance.
Also, with the
increasing there is becoming a greater
greater need for more and more protection and life

size

to

save

of families

and

insurance

is

the

look forward

best protection

to 1955 with

F.

year

ord

our

J.

at the lowest cost.

We

optimism and confidence.
ANDRE

President, Congoleum-Nairn, Inc.
Nineteen fifty-five can be

banner

a

year

for the smooth

surface floor covering industry, according to every indi¬
cation apparent at this time. Our business is

dependent

two

on

factors—the

construction
to

reolacement

market.

heightened

these

All

activity

market

and

the

new

signs point
in each of

areas.

According to a joint construction
industry survey by the U. S. Com¬
merce
and
Labor Departments, an
estimated 1.3 million
are

100,000

more

1954,

and

year

since

largest

the

than

total

1950

for

peak

Further,

expected in

home starts

This would be

"starts"

new

the

million starts.
are

new

forecast for 1955.

in

any

1.396

of

records

new

1955 in certain seg¬

ments of the public and

commercial

construction

fields, such as schools,
hospitals, churches, shopping centers
and office buildings, all of which are

favoring

rehabilitation
field.

for

smooth

industry's

market,

homes, need

the

million

some

habilitation, and aggressive

J.

Andre

construction,

new

outlook

including
50

F.

sur¬

In addition to

the

Approximately

including

result only in fur¬

power

of the dollar.

prevent this

trend

tutions

homes

rooms,

develop

in

and

is

the

"do-it-yourself"

American

sort

moves

buildings,

renovation

of
are

a

building

underway

or

re¬

on

the

We at

a

a

new

good
rec¬

this

will

the

market

require

kitchen,

further.
smooth

new

Many

the

of

surface

floor

bathroom, living and dining

all through the house.

Congoleum-Nairn

are

engaged in

an

aggressive

advertising, promotion and sales campaign to bring
products to the attention of

more

our

people, and to take full

advantage of all sales possibilities.

We foresee increas¬

ingly competitive conditions within the industry for 1955.
However, we

conclusion is that 1955 should be

for the insurance business with sales at

to

involved

coverings

cover

Overall,

be¬
costs

part of builders, banks, and other mortgage loan insti¬

greatest

an

country

our

save

coverings.

problem

of

economy

margins between living

the

on

factor

industry will maintain the gradually

1955 and for many more

their work cut out for them in
years

face floor

Taking everything into consideration, through
the purchases of mortgages, revenue bonds and so-called
term loans and the disposition of
governments and other
investments made during the period of
extremely low
rates, we are hopeful that the investment earnings of

The

/

good look at our product

a

pencils for the fight for business which
be a good year but it will take brains,

our

It

take

we

overall.

improving trend of the last five

""

PJ'-;:'P'\

time

is

prospects

insurance

no
American salesman

However, the

excellent

the life

P

.

present the Federal Reserve is "cushioning" the market.
This may
allow interest rates to increase somewhat

and to support sound fiscal policies.

nationwide

p'.;"
,.V.;
Is already becoming quite keen and

increase.

better way

believe the mortality experience

we

*

.

fiq the world. ' Any company that has a good
organisation and which constantly seeks ways
have much trouble in

makes

earn¬

be considered normal.

to

problem

be

tional

un¬

insurance

It is estimated that the average

a

must

development activity

Adam

but it is still far from the levels which used to

years,

reduction

a
consequence, the domestic producting. industry
face curtailed exploration and

after

■

ingenuity, and

Malcolm

life

are

1955.,

lies ahead.

whole for 1954 was 3.23%. True, this is an
quarter of one percent-in the last three

a

of

increase

should

following the

investments

on

the low side.
interest

dustry

find

to

supplies for interstate sales.

matter of sound business judgment

a

Supreme

a

gas

even

return

Amber'

L..

■

remaining steady the need for in¬
services, because of the l^rge increase
population, should bring posperous business condi¬

and

and

care

Harrison

^

employment

It

the

in

a proper

v

in¬
is

higher standards
living the death rates for the in¬
dustry were, we believe, the lowest on record. For The
Penn Mutual we know that to be the case.
Only in the

and

use

of their gas

producers will have

medical

obtaining

into rapidly developing intra-state
Gas-consuming industries are moving to pro¬
ducing states in increasing numbers, and as this demand
and

that the problem wilL
balance between

so

keep

improve its product should not
1955.-'
-■
;;
'

and group and in¬
neighborhood of
$130 billion. Due to better
is

be to

sales

and

about $200 billion

of

industrial

markets.

grows

ings of business tends to reduce em¬

is the best

other

all

margins

The ordinary

amount.

record

a

surance

desirous

are

goods, and prices and prof¬

doubt will

of

who

•

ness,
keep
ahead
of production,
otherwise the market might be glut¬

Competition

that insurance in force also reached "

whose personnel is subject to frequent changes.
An even more serious consequence confronts the mil¬
lions of people outside the producing states who
depend
agency

millions

should, for healthy busi¬

in

doubt that total Vd

substantial

by

years

no

those

exceeded

sales

another

gas as fuel for home

and production. Purchas-

power

tions for

insurance

dustrial

additional

power

creased goods and

exact figures for 1954
business are not yet

Although
life

Contracts made in open competition may be
altered in many vital phases by the action of a Federal

natural

better, between purchas¬

or

ing

and

optimists.

eluded among the

producers.

the

even

an

applied to business. ;
*•
Barring a war it seems likely that
with our savings at an all-time high„

there is this year.

With respect to gas
previously committed to the
interstate market, regulation creates many problems for

nesses.

0*i

keep

Practically every forecast is
have disap¬
Perhaps this unanimity of

decision

subject to the Act.

the

for

to

its would decline. A decline in earn¬

bullish*and the prophets of doom and gloom

*■,

Natural

The

business.

on

the two., It is the farmer's problem,

year as

lines

under the

balance,

written

and

ing

ployment

K. S. Adams

'V

population and

there been such a complete consensus
among those who predict business conditions for a new

sion of the United States Supreme Court that independ¬

Commission

ADAM

has

Rarely

i. J, ■.' 1 " ^...:
One of these problems resulted from last June's deci¬
^

growth.

President, The Penn Mutual Life Insurance Company

and

gas

v■"

^

particularly strong

a

said

be

to

seems

ted with

supplies of the industry's two

basic

in

are

MALCOLM

to

future

This

materials

raw

long-term
growth
pattern
increase of between 4% and

an

y'ear ahead

ent

of

position to continue in the forefront of this

expected

5%. Meanwhile, two vital problems
facing the petroleum industry in the

.

of

reserves

firmly laid groundwork 6f diversifi¬
these fields backed up by plentiful

a

both

in

cation

'

beginning of 1954.

been

resulting effect

trick

below the

for the first time in four years.

has

about the increase in

mid-1953? at year-end were
same period a year earlier

since

Co.

Insurance

*'

at the

than

ness

unpublished statements appear in
issue, starting on this page.—EDITOR.

today's

Life

The gloom which seemed to be settling over business

<■

remaining

been excessive

AMBER

L.

Berkshire

Board,

the

began'to lift about the middle of 1954 and. as we move
in to 1955 there is greater reason for optimism in busi¬

ANNUAL REVIEW'
and OUTLOOK ISSUE of Thursday, Jan. 20. The
not be accommodated in our

refined

of
•

CHRONICLE could

for the

prepared

Chairman

H

the 1955 business

For various reasons some of

upward in the last quarter with a higher level of general
business activity and colder weather.
and

Thursday, January 27, 1953

r;

.

Alter the Turn of the Year

BUSINESS

MORE

ing months of 1954 was improved over that prevailing
previously during the year. The demand trend turned

products,

and Financial Chronicle

ADAMS

Chairman, Phillips Petroleum Company

Inventories of crude oil

Commercial

also feel that with

all price

brackets,

our

chances for securing

procucts,

our

available

business

are

our

complete line, to

improved styling and
a

new

larger share of the

excellent.

high, death rate satisfactory and interest earnings

low but

improving slightly.

Continued

on

page

25

Volume

181

Number 5398 ;

.

The Commercial and Financial Chronicle

.

7

(467)

*>•>.%:1

Tlie

Dutch Bulbs
$350 million

Some

day's

of

that

is

title

elusive.
we

passed in review—the Netherland
Electric, Westinghouse, or perhaps
Radio Corp. of America.

feel that to¬

just

You
were

little

a

tu¬

lip bulbs—the
s

p

t i

sensa-

17th

sold

high

as

Company to

as

where in the world, not accounted
for above.

then
in

with

price

lethal

Cobleigh

if

feel that
poetic license

you

We're

of

more

it, isn't

our

persuasive

pany

on

that's

the

our

Continent?

real

subject

—

of

the

of

gone

leading

incandescent

field

of

the
electronics, it
and

in

-

Corporation of America.

a

bulbs

matter of

fact, today, light

account for

probably some¬
thing less than 50% of gross. The

Well,
Philips'

most

impressive sector of Philips'

growth
tronics

it

where, for

years,

tion has been large and

just before the

in

German invasion in World War II,

in

be

to

appears

produc¬

expanding

electronic tubes for TV,

marine

and

celestial

elec¬

radio,

navigation.

offer inn is made only by the Prospectus.

Philips

has

shares

and

Philips
of

not

its

but

own

working

under

patents

in-

only

agreements with Western Electric,
International G en e ra 1 Electric,
Tel.

American

&

Tel.,

Westing-

Railway Signal
Co. for its extensive railway com-

house,

General

business.

dispatching

Production

chemical

of

pharmaceutical, radioactive isotopes, industrial materials, plus,
of

and

and

TV

course,

round

out

radio

sets,

the line of this diverse

dynamic

organization.

a

spark to

network, Philips

a

ploys
tures

in

(and

eight

em—

people, manufacEuropean factories

120,000
30

through
an
American
subsidiary)
and sells
and distributes its diverse output
in
41 countries—virtually everymore

Of

non-Communist

the

on

it

course,

article

crust.

s

impossible

s

short

so

this to

as

the

10,
quote is

^pjie

North

American

interest

company,

founded

to

war,

Philip gives great

of

profitable penetraof the major world markets

stay.

Barring

assurance

continued

tion

electric

this

electronic

and

observation

it

might

goods.

vices. No separate report on North
American

Philips Co. is publicly

available, nor are its shares, but
Reynolds Spring (its name was
changed Dec. 31, 1954 to Consolidated
Electronics
Co.)
common
has

listed

been

net

may

the
for

sales

seem

relevant. For

parochial sort of way, the bene£rs 0f philips' management — up
from 5 to a high of 44 in the past

up

Some overall comment on Phil-

ips- Lamp

Works

Thp

nent

erablv

outDacine

counterparts. On

of $23

sales

net

63%

and

judgment

of

the

management

might well be ruminating

on listing Philips' shares, in due course,

NYSE.

on

have

You

that

noted

Royal

doubt

no

Dutch

Petro-

leum (written up in this column
six weeks [May 20, 1954] prior to
its listing) has been warmly received by American investors, and
has advanced 20 points in the past
eight months. This pleasing phenomenon has surely not gone unnoticed by the top brass of Phii-

iPs>

Einhoven, Holland.

Thus
lute

we

at

conclude

Philips'

brief

our

sa-

Lamp

Works,
bulbs,
and a leading and profit-prone
international organization in the

eminent

maker

of

Dutch

production of a dazzling array of
things electric, electronic, chemical and atomic.

.

Lamp

shares

Two With Edward D. Jones
(Speclal t0 Tm ^ c,„omctF)

American

np^TT^0Ji|'w^ TalKPv*
'

^nHh^mirth

price earnings

a

12

to

Philips'

1

wl

Frank L. Key have

*

;

dones & p°> ^0° North Fourth

demonstrably Str1e^.7iemf
and Mldwest stock Exchanges,

are

cheaper than GE or Westinghouse;
and jn respect to research, a vital

major electronic

any

Three With Westheimer

nucie0nic

enterprise, Philips is
staffed, and has gained international renown and respect,

or

(Special

weP

cornoration

so

vast
.

Chronicle)

to The Financial

CINCINNATI, Ohio—Thomas J.

B1ank> John W. Fitton and Harry
p

Perkins

panyj

have

been

added

fo

^dComl

326 Walnut street, members

pansion capital.

It is not enough

0f

that it sequesters

and retains some

Stock Exchanges,

1

York and

the New

Cincinnati

9

'

—

This advertisement is neither an offer to sell nor a solicitation of offers to

buy any of these

securities. The offering is made only by the Prospectus.
;

1,,

new issue

$30,000,000

Consumers Power

91.5%,

R.

C.

Company

A.

for

more

First Mortgage

Bonds, 3Va% Series due 1990

1953

1948.

inrrpnse

an

onlv

a

Dated

Due February 1,

February 1, 1955

199jt

Nothing here should be
as
assuming that such
relative performance favoring
Philips may continue — we just
wanted to review with you, the
46%.

share

be obtained from

Price 102.325% and accrued interest

record.

the first

net sales of

months

of

1954

were

$338

million, up $56 million over the
corresponding
1953 period; and
comparable net was $4.18 against
50
$2.78 applying against each
any

of

guilder share

the several underwriters only in Stales in which such

value

dealers in securities

of 26.3

Copies of the Prospectus may be obtained from any
writers

of the several under¬

only in States in which such underwriters are

dealers in securities and in which the

Prospectus

may

qualified to act a3

legally be distributed.

(using a conversion
guilders to the dol¬

lar).

and in which the Prospectus may legally be distributed.

look

A

at

the

sheet

balance

might be logical. Company's net
asspts at the 1953 year-end totaled
to $350 million and to those of
geographical turn of mind they

up
a

Corporation

were

Stone & Webster Securities Corporation

Salomon Bros. & Hutzler

leading

million, against $3 mil¬

Actually,

The First Boston

I'm

points shy of 800%! During
the same span of years, General
Electric increased its net by 34%,
Westinghouse by 41% and R. C. A.

nine

as

What

few

plus accrued dividends from date of issue

qualified to act

market?

to is that the shrewd financial

In the

1948.

plied to net income is even
exciting.
Philips showed a

by

are

its

0f r0ughlv

hasjs

construed

underwriters

up

138%. The related comparison ap¬

lion

($50 Par Value)

may

ican

has disnlaved

pomnanv

postwar rate of growth consid-

a

interval, General Elec¬

increased

net

Copies of the Prospectus

ter seek funds than in the Amer-

b? perti-

may

146% from the $171

million reported for

Westinghouse

much

may well be reIn that event, where bet-

quired.

\2 months.

largest total in its his¬

time

on

of net earnings;

so

year 1953 revealed
Philips of $421 mil¬

tory, and

tric

time

some

(present price 41) and the
shares seem to be reflecting, in a

and to make such compari¬
with similar American com-

same

per

for

NYSE

or

larger amounts

inter¬

prove

to

as

Reynolds

60%

over

seems

examine the financial
data about Philips in the postwar

esting

in

Hien, too, a co porat 0
in 1891, is and
geographically spread out,
large scale generates obvious needs for ex-

here

example,

Price $51.34

Philips

Spring Co., fabricator of precision
springS) timing and electronic de-

domain, but enough

lion—the

$2.10 Preferred Stock

These rights
1955 and the
therefore "ex-

money.

has been set down to suggest that

panics

Duquesne Light Company

in

around

Jan.

ingredient in
an

in

delme-

kroad scope
of this Dutch

era;

160,000 Shares

present

Pro-

ducing virtually everything from

January 21, 1955

ISSUE

pio-

by the dozens

come

hundreds

has

sons

NEW

at

American

expired

$13.15

permitting
of
share for each three old

held,

ones

to

dominant

Patents

electronics

optimistic,
'The

rights
purchase

prospered.

If

of these securities.

subscription

Company, the American subsidiaryj acquired late last year the

for

This advertisement is neither an offer to sell nor a solicitation of offers to buy any

new

recently

neered, produced, progressed and

segments of this Earth

As

one

dividend

were

counters, scien- rights" and reflects the subscripgenerators tion to the new shares.

fields

kindred

Present

neutron

Radio

company.

went underground

one

but

holders

controls—in all these

vacuum

where

com¬

Holland owned and managed,

tillometers,
and

bears considerable resemblance to

Lamp Works, and it's really quite
a

become

broader

maker to you!), the official name
of the largest, most efficient, and

electronic

occupation,

Westinghouse,

or

readership, than N. V. Philips'
Gloeilampenfabrieken (glow lamp

prosperous

War

bulbs, it is
comparable with General Electric

to

most

to

ducer

lead-off line

more

World

electronic, chemical, and atomic
enterprises anywhere. As a pro¬

not

ingratiating,

German

on

referring to
tulip bulbs but to light bulbs: and

let's face

after

years

today,

II, Philips' Lamp Works has not
only reassembled itself after years

has been invoked in the headline
■—relax.

ten

only

resili¬

ability,
that

great

durability

and

ency,

hot

Well,

rum.

Ira U.

in

of

agement

man¬

a

offered

—

Geiger

as

42V4.

at

rate is $1.85. There

up

dioxide and tran-

munication signal, and

It is indeed a tribute to

velocity,
like
a
plump
ice
cube

and control Hol¬

own

land properties and all those else¬

apiece in 1630,
faded

trust

a

Canada);
Midland Bank, Ltd., Lon¬
don,
for
deploying
all
British
Empire assets; and (3) the Home

$5,000

and

in

by the

Century

that

(1)

America, (except
(2) in a trust operated

the

of

o n

baskets:

assets

North and South

eculative

market

ecumenical

its

such

shepherded by Hartford National
Bank
&
Trust
Co.
(Hartford,
Conn.) for all the properties in

going to talk about
Holland's

lodged
three

in

bit

thought

have

may

and

York

per-

opened

equipment for telegraph, radar and telephone, the
recording, amplifying and broadcasting of sound; in the delivery
of the adjuncts of the atomic age

company

may

vistas

In all the related fields of

sistors.

of General

you

to

quick

was

new

production

Enterprise Economist

counterpart

the

by germanium

By IRA U. COBLEIGH

A

company

ceive

distributed

roughly 40%

Harriman Ripley &

The First Boston Corporation

Co.

Incorporated

Merrill Lynch, Pierce, Fenner & Beano

Lehman Brothers

in

Holland, 16% in the British Em¬
pire, 12% in the U. S. and 32%

Carl M. Loeh, Rhoades & Co.

Hornblower & Weeks

Weeden & Cc,
Incorporated

elsewhere.

Hallgarten & Co.

W. C. Langley & Co.

Shields & Company

Stroud & Company

Butcher & Sherrerd

Chaplin and Company

Capitalization

Incorporated

E. W. Clark & Co.

Singer, Deane & Scribner

(but

corrected

as

of Dec. 31,1953

for

the

stock dividend distributed in June

DeHaven & Townsend, Crouter

Fauset, Steele & Co.

& Bodine

Green, Ellis & Anderson

A. E. Masten & Company

last

lion

/

Kay, Richards & Co.

of

Thomas & Company

Yarnall, Biddle & Co.

McKelvy & Company

Cunningham, Schmertz & Co., Inc.




Jenks, Kirkland & Grubbs

Arthurs, Lestrange & Co.

long-term

Adams & Peck

Courts & Co.

E. F. Hutton & Company

Schwabacher & Co.

$99.5 mil¬

indebtedness,

Shearson, Hammill & Co.

R. S. Dickson & Company

Singer, Deane & Scribn. r

Incorporated

participating preference
232,090, 1,000 guilder

Burnham and

Company

John C. Legg & Company

DeHaven & Townsend, Crouter & Bodiru

shares, and

shares. This latter
issue converts into 4,641,800 shares
par

Hulme, Applegate & Humphrey, Inc.

involved

New York Haoseatic Corporatio.l

110,000 shares (1,000 guilder par)
6%

McJunkin, Patton & Co.

of

year)

William Blair & Company

Baker, Weeks & Co.

l-for-3

of

ordinary

the

50

guilder

variety,

commonly

traded,

and

more

currently

available over-the-counter in New

Doolittle & Co.

January 26, 1955

Arthurs, Lestrange & Co.

Kay, Richards & Co.

^

8

The Commercial and Financial Chronicle

(468)

Chrysler—Bulletin—J. R. Williston & Co., 115 Broadway, New
York

to

Lake

Broadway, New York 6, U. Y. In the same
data on Consolidated Cement Corporation.

Letter—Fortnightly review of the Canadian Securi¬

Co., 21 West 44th Street, New York

ties Market—Newling &

brochure—A. J. Armstrong Co.,

Mesabi

17, N. Y.—paper—on

Street, New York

East 42nd

60

Inc.,

of

Yields

U.

S.

F.

Dollars

&

Co., Ltd., Ill Broadway, New York 7, N. Y.

Non-Leverage Stocks

vs.

du Pont & Co.,

—

The

City

of

Carondelet

219

Street,

New

Orleans

12, La.

'
Banks and Trust

New York
1954

17

on

Hanseatic
New

leading

banks

and trust

of Dec. 31,

as

companies—New York

City

1954—Paine,

Banks—Comparative
Webber,

New York 4, N.

Jackson

&

analysis

Curtis, 25

31,

of Dec.

as

Street,

Broad

largest population of

Y.

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

parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
National

market performance over
Quotation Bureau, Inc., 46

13-year

a

Front

—

New

to clearance

to offer

ties

Offerings

in

1954—Brochure—Union

Securi¬

Corporation, 65 Broadway, New York 6, N. Y.

bentures

issue of

new

a

City of Montreal

debentures.
offered

are

to

yield

The
at

from

various investment funds for 1954—

Taussig, Day & Company, Inc., 509 Olive Street, St.

Louis

1, Mo.

prices

2.50!%

Cone

Review

—

with

particular refernce to Cannon Mills,

Mills, M. Lowenstein & Sons, J. P. Stevens, United Mer¬

chants & Manufacturers, and Beaunit Mills—H. Hentz &

Co.,

60 Beaver Street, New York 4, N. Y. Also available is a leafjot oo Wa«5Mn{rton Waterpower Co. and General Precision

Equipment Corp.
Trend

of

Deposits

of

$7,361,000
debentures
for
local
improvements, due Oct. 1, 1956 to
1973, inclusive, and $27,639,000 of
for public works, due

Oct.

1, 1956 to 1974, inclusive. The

has set

of Montreal
the

on

from 2V4%

debentures

direct

coupon

ranging

unconditional

the

sale

of

the

Counties—M.
York

A.

New

York

Schapiro

&

City, Nassau

Co., Inc.,

&

1 Wall

Westchester

Street,

New

will be
applied by the City, among other

with

Is and How It Is Applied—4-color sheet

listing of 100 atomic stocks—Atomic Development Se¬

curities Co., 1033 Thirtieth Street, N. W., Washington 7,
W

Railrmd

Stn"k<;?—Renrmt of article by James

Wall—Cohu & Co.,

American Maraeaibo Co.

—

*

Oil

Shearson

Hammill

Spring

Co.—Memorandum—Fewel & Co., 453 South
Street, Los Angeles 13, Calif. Also available is a

memorandum

Byron

Jackson

15 Broad

2nd

on

Montreal

was

Texas Eastern Transmission
Corp.

Proceeds from the sale of

streets.

the

public works debentures will

applied,

toward the

payment

ment of the

or

things,

reimburse¬

cost of various

including

and

other

among

slum

public

April 30,

clearance,

1954,

of

the population of the Province

of

Quebec, and to 7% of the

pop¬

Leading indus¬

tries in Montreal include women's

Co.—Memorandum—Hemphill,

Noves

&

Co

Printing Available—

Calif.
(Special

has

Biggs

staff

Metropolitan St. Louis Add
to The

(Special

slaughtering and meat Coggin has joined the staff of
packing, men's clothing, tobacco,
Metropolitan St. Louis Co. of St.
cigars and cigarettes, foods, elec¬
Louis.
trical
equipment,
leather
boots
and shoes, and printing and pub¬
lishing. Montreal is the head of¬
Joins Green, Erb
fice location of many business or¬

ganizations,

and

Six

Chartered

the

of

Banks

11

have

their main offices in Montreal.
Also

ing

participating in the offer¬
Coffin & Burr Incorpo¬
Eastman,

Hornblower

&

Dillon
Weeks;

&
Co.;
Kidder,

Y.

Security Dealers

Association

Trinity Place, New York 6, N. Y.




Financial Chronicle)

with

Nachtigal is

are:

rated;

to The

(Special

CLEVELAND, Ohio

—

Green,

Frank
Erb &

Co., Inc., N. B. C. Building, mem¬
of

bers

Ex¬

Stock

Midwest

the

change.

Peabody & Co.; Bell Gouinlock &

Incorporated;

Company
Co.

Burns

Denton, Inc.; Mills, Spence

Inc.;

Stroud

American

Corporation;

Tucker, Anthony

Co.;

Daly

R.

Hirsch

Co.;
New

Company;

York

Hanseatic

Shearson,

Corporation;
&

&

Co.
Limited;
The Milwaukee

A.
&

STOCK BROKERS
WARTED

Company

&

Swiss

Hammill

Co.

To

This block is

&

Co.;

H. Hentz & Co.;

with

lation

share.

the unsold portion

of

300,000

original

an

filed

Courts

150,000 shares of common

sell

stock at $1.00 per

share

issue

S.E.C.

under

Regu¬

the

A.

properties that have produced mil¬
lions of $ in silver—lead—zinc—

civic

pany;

center

and

sewers,

concert hall.

The debentures will be redeem¬
as

whole

a

or

in part, at the

Company; F. S. Smithers & Co.;

Adams &

Peck; Freeman & Com¬

Charles King &

Co.; Mul-

laney, Wells & Company; Singer,
Deane

&

Scribner;

Thomas

&

ranging

plus

Box V

holds uranium claims.

127, Commercial & Financial

Chronicle, 25 Park Place, New York.

Company; Arnhold and S. Bleich-

102%,

etc. and also

has a 150 ton mill on

roeder, Inc.; Byrd Brothers; Mackall & Coe; A. E. Masten & Com¬

opinion

taxes

from

accrued

100%%

to

interest.

In

counsel,

of

income

presently

imposed by Can¬

ada will not be

payable in respect

debentures

the

thereon by

owners

interest

or

who

are

non¬

residents of Canada.

pany;

Yantis &

Co.

Collins &
liams

N.A.S.D

Moore,

Leonard

Arthur L. Wright & Co.,

&

Lynch;

Inc.; F. S.

Incorporated; Julien

Company; Allison-Wil¬

Company;

Ferris

&

Com-

DEPENDABLE MARKETS

▼

Broker and Dealer
Material and Consultation

Because

Japanese Stocks and Bonds

Troster, Singer & Co.
74

Chronicle)

Financial

BELLEVILLE, 111.—Clement R.

of

served

tremendous

2-

the

Boulevard.

Wilshire

area

2490

Robert

California Investors, 3924

of

on

HA

—

added to

The company

garages,

markets, trunk

Dollars and Sense"

N.

Calif.

been

&

and

Member

Members:

Chronicle)

parks,
playgrounds, and construction of a

public

"Electronic

.

Financial

LOS ANGELES,
C.

Add

Investors

to The

Johnston, Lemon & Co.; McDonald

fjtcnmrot Securities
Co., £tfl.

Highlights No. 29

He was pre¬

clothing,

highway

construction,
parking grounds

population

the

of

as

Incorporated;

of

Street, New York 5, N. Y.

Reynolds & Co., 425

1,314,641, equal to about 25%

&

the

Gas

&

of

by the City Asses¬

Department,

prices
—

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

Aztec

sors'

pavements, and sidewalks, and the

widening of certain

a

option of the City of Montreal, at

*

Memorandum

estimated

As

extension and

able

1 Wall Street, New York 5, N. Y.
*

&

P.

or re¬

the

city in
leading

life of Canada.

financial

Bros. &

works,

5, N. Y.

Atomic Energy

trial and

imbursement of the cost of sewers,

road
What

local

debentures

improvement

occupies

—

the

has

any

Calif.

viously with Davies & Mejia.

position in the commercial, indus¬

obliga¬

City of Montreal. Pro¬

from

and

Canadian

to 3%%.

and

Canada

Quebec,

ulation of Canada.

offering of $35,000,000
debentures
is
comprised
of

be
—

to

The total

things, toward the payment
Textiles

de¬

3.65%, according to maturity.

ceeds
on

The

tions of the

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

Taxability of Dividends

Jan. 28

on

Debentures of each issue will be

Secondary Issues with speculative merit—Review—Sutro Bros.
&

Hutzler, subject

by the Securities and

issue

rates

Stock

&

and

(Canada) 1955 United States Cur¬
rency

City

York 4, N. Y.
Preferred

Bros.

Hart

debentures

period

Street,

&

Savard

Exchange Commission, is expected

scaled

City Bank Stocks—Annual comparison and analysis

and

Inc.;

Salomon

—Laird, Bissell & Meeds, 120 Broadway, New York 5, N. Y.

yield

Co.

$35,000,000

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

York

New York

Companies—Figures

&

of

in

Montreal,

Province

Chronicle)

become af¬

has

Montgomery Street.

$35,000,000 Montreal Debs, to Reach Market
jointly managed by

Financial

Code

K.

filiated with

A syndicate

&

to The

FRANCISCO,

Thomas

Francis I.

figures—Scharff

Stocks—Comparative

Incorporated,

Jones,

(Special

SAN

1 Wall Street, New York 5, N. Y.

Bank

Orleans

Co.,

Jamieson

L.

Reynolds Adds to Staff

Knapp, Inc.—Analysis—Dreyfus and Co., 50 Broad¬

New York 4, N. Y.

Shields & Company; Halsey, Stuart
New

H.

& Co., Missis¬

Investors—List of 60

Tabulation

—

&

way,

of

Inc., Russ Building.
He was for¬
merly with Waddell & Reed, Inc.

Company, 121 South Broad Street, Philadelphia 7, Pa.

Webb

is¬
sues and
1954 price range—The Nikko Securities Co., Ltd,
4, 1-chome, Marunouchi, Chiyoda-ku, Tokyo, Japan.
Foreign

by

staff

added to

has been

Barton

A.

sippi Valley Building, St. Louis 1, Mo.

Digest"—Nomura Securities Co., Ltd., 1-1 Chome, Nihonbashi-Tori, Chuo-ku, Tokyo, Japan, and 61 Broadway, New
York 6, N. Y.
Favored

Company—Analysis—Gerstley, Sunstein

Financial Chronicle)

to The

FRANCISCO, Calif.—Wil¬

SAN
bur

Wagner Electric Corp.—Memorandum—White

Japanese Electric Power Industry—Analysis in "Monthly Stock

Stocks

(Special

the

and

Gary

L. Jamieson

With H.

39

Street, New York 5, N. Y.

Theodore

Japan—Circular—Yamaichi Sec-

Opportunities in

Investment

Zuckerman, Smith & Co.

Company—Analysis—Harris, Upham & Co., 14

Russell

C.

Wall

Sense—"Highlights No. 20" bulletin—

and

Singer & Co., 74 Trinity Place, New York 6, N. Y.

Troster,

Leverage

Co.;
Roger S. Palmer Co.;
Townsend, Dabney & Tyson; and

Broadway, New York 6, N. Y.

5, New York.
Electronics

Kenower,

A. Overton

Co.; J.

&

Co.—Memorandum—Cady, Roberts & Co., 488
York 22, N. Y.

Iron

Corbett & Pick-

Company;

&

Joyce

MacArthur &

Pyramid Electric Company—Report—S. D. Fuller & Co.,

Issues—Tabulation—
15 Broad Street, New York

Treasury

Aubrey G. Lanston & Co., Inc.,

Japanese

B.

Madison Avenue, New

request.
Comparative

rities

bulletin is

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

Commercial Financing—8 page

& Co.; Burns,

ard, Inc.; Goodwyn & Olds; John

Conklin Organiza¬

Merrill Petroleums Ltd.—Bulletin—DeWitt

36, N. Y.

Inc.,

Co.,

&

115

City 10, Utah.

Canadian

Seasongood
&
Mayer;
Walter
Stokes
&
Co.; Sweney
Cartwright & Co.; Aspden, Robin¬
porated;

son

Ginberg

Company—Bulletin—Strauss,

Koehring

Co. Incor¬

fensperger, Hughes &

tion, 111 Broadway, New York 6, N. Y.

natural resources of the Utah area
Light Co., Dept. M., P. O. Box 899, Salt

&

Piper, Jaffray & Hopwood; Raf-

E.

C.

Securities Corpora¬

Oil—Card memorandum—Aetna

Kewanee

Power

Inc.—Memorandum—Lloyd

Canady & Co., Commercial Building, Raleigh, N.

Area Resources—Booklet on

—Utah

C»J—Memorandum—G. H. Walker &

Services,

Diversified

Investors

J. Mericka & Co.

Incorporated; Newhard, Cook &
Co.; Patterson, Copeland & Ken¬
dall, Inc.

Co., 503 Locust Street, St. Louis 1, Mo.

mentioned will he pleased
send interested parties the following literature:

& Co.; Wm.

son

'

Dewey Portland Cement

understood that the firms

is

6, N. Y.

Inc.; John
McDonald-

Company;

Co.; McMaster Hutchin¬

Moore &

Recommendations & Literature
It

Kormendi

Co.

&

Ruel

Grenier,

Broadway, New York 6, N. Y. Also available is a memo¬
randum on Westinghouse Airbrake
Ill

Dealer-Broker Investment

First of Iowa Corporation;

pany;

Service—Review—Ira Haupt & Co.,

Public

Vermont

Central

Thursday, January 27, 1955

.

.

.

without

NY

1-

376

61

AREA
P

obligation

Broadway, New York 6, Pf. Y.
Tel.:

BOwIm*
Head

Green

9-0167

Office Tokyo

•

DEMPSET-TE6ELER & CO,

O

abundant

natural

resources,

this

by Utah Power & Light Co., offers
opportunity to industry.

RESOURCES BOOKlET

Bo* 899.

on

request

Dept M. Soil Lake City 10, Utah

UTAH
»OWEi Jk .LICIT CO.

181' Number 5398 S.'.'Tht Commercial and Financial Chronicle

Volume

(469)

they knew

Who Will

Help the Railroads?
there is

many years,

Now let's look for

Lists

of railroad rehabilitation.

railroads should be

permitted to set their

own

(2)

As

of

most

Director

as

know, I was
of money,

you

substantial

a

sum

the

of

Committee

Railroad Suppliers, to

approach

What

a

public

under¬

of

broad

problems
the

of

railroad

industry.
Fortunately,
those wh
financed

o

the

Committee

General

—

Elec¬

o c o m

builders
several
—•

railroads

Fred

Rails

without

preconceived

these

the

are

done

situation.

to

in

overestimate

their

our

a

should

sense,

We

cause.

business

and would

be

more

willing to lend a hand if
they felt they could provide any
productive assistance.

ideas and without prejudice; they
were
convinced only that some¬

the

In

our

first

it

the

knew

was

we

an

the

to

being made

now

spite of the hurdles;

lighted

opti¬

keyed

was

which is

progress

in

campaign

one:

we

high¬

the

not

progress,

hurdles.

(2)

or¬

(3) We faced the fact
that

men

are

business

at the out¬

and

not easy to

financial

fool; they

accustomed to understand

the

a

are

situa¬

before

businesses. The effect of the

relationships between the rail¬

road

industry

is to

be done

other

and

that

the

will remain

the

free

railroad

indus¬

industry

threat to the entire

a

it

until

is

returned

to

enterprise system—until

financial

community, of about the railroads, action sooner it is enabled to operate profitably
course,
railroads
generally
are
or later will
be necessary on the enough in good times to accumu¬
thing could be done which had not not
very exciting. Railroad invest¬
been done before; something that
ments are not considered among part of Congress. The only intelli¬ late a backlog against bad times.
perhaps would have more of a the most
promising. Yet you will gent way to inspire Congress to On the other hand, a prosperous
"bite"—that could lead to con¬
go a long way before you find act in these
days of high-priced railroad industry is an important
structive

action.

infer that

the

This

is

not

to

a

financial

who

man

will

refuse

lobbyists is to stake out, educate,

which

propaganda

to warm up to discussion of the
been organized so ably and
future of railroads "if only they and fire into action an important
continuously by the railroad in¬
coiled be modernized."
minority group, who will help
dustry is inefficient or in error.
What we found in our investiga¬ create a
public demand for re¬
My friends simply wanted to take tions
might be explained,
and
form. Our most logical minority
a
fresh look, and I was elected
over-simplified, as a latent will¬
Vice-President in charge of find¬
ingness to help, along with a deep group — other than the railroads
ing the new look.
suspicion that the railroads them¬ and their employees, which con¬
For more
than
eight straight selves are not doing as hard- stitute a
large mass of votes, but
months, we did nothing but re¬ headed a job of selling, servicing,
would be relatively ineffective as
search
the
field.
We
talked
to
pricing, and management as they
railroad presidents, to suppliers, should. Some of this feeling came self-pleaders—is the business and

has

to

shippers,

business

and,

an

on

wide variety of about, or was deepened, over the
leaders, past few years, by widely pub¬
extremely informal licized and often unjustified criti¬

to

and

a

financial

basis, to government officials. We
interested

were

how

know

to

people felt abput the railroads, in
the first place; and in the second
place, whether there was an in¬
herent spark of interest in minds
of
key people which might be
kindled
on

at

into

kind

some

of action

behalf of the railroads if action
some

later date

called for.

were

cisms

railroad

of

managements.

financial
ness

have

community.

and financial
an

The

busi¬

community

important

can

look

(5) When business, industry and
financial

sufficiently
railroad

it

would
to

someone

with

come

plan

a

become

with

concerned

industry,

be time for
ward

community

the

then

concrete

the

in

order

freedom

they

are

give the roads

they

must

operate

to

such

Under

to

a

plan,

have

if

effectively.

specific bills

am certainly not
today
to
announce
that
progress is going ahead according
to schedule. I can hope that it

here

will; but at this writing, we have
nothing
more
impressive
than
hope to offer.
If

we

proceed,

know

we

interested
and
who
investigation was not the customers
can
be, or even that apparently finds it profitable to
ought to be, tabulated. It was the pitch his entire sales story on
the
kind
of
investigation that "The Forward Look," for exam¬
helps to crystallize thinking; that ple; or the heavy goods manufac¬

This is under

no

industry into all other major in¬
dustries, and provide a real reason
for the leaders of other industries
to get

in and help.

While

we

doing this, how¬

are

steps should be taken to de¬

ever,

velop

formula

a

translated

into

understood

which

solicitation oj

by Congress and

NEW

We
gram

fortunate

are

that

a

veloped for the whole transporta¬
tion

business, including railroads.

The Cabinet Committee

President

by-

made

is

has

recommendations

its

there

and

to

reason

ommendation

that

we

toward

a

believe

will

Administration

way

to

make

to

days of

well

our

and

the

to

legislative program
had

we

the

provides

raw

material

constructive

which

ideas

from

can

be

I should say

at this point that I
without experience

not

around the

fringes of the railroad
four or five years
preceding this investigation, I had
worked closely with shippers, and
with some
railroads, in connec¬
industry.

For

tion with

introduction

the

American

General

the

of

damage-free

Through this, I encountered
wide variety of criticisms of the

car.
a

who

knows

in

in

of

testimony in Con¬

elsewhere

belief

that,

would

if

the

reaching,

provisions

that

what many
a

remarkable

part of the

disinterest,

it

difficult to find

a

it

all,

to

a

the

on

not

was

genuine interest

in the railroads. I have yet

to

was

railroads, in damage.

through

Yet,

activities and of

shippers believed

to talk

shipper who would not prefer

ship

service

by
and

railway if the price,
safety

approximately

factors

equal.

asset of inestimable

This

value

were

is
to

an

the

order

to

industry, and

in the end will prove

one

which

their salva¬

are

billions of dollars poured into in¬
dustrial improvements year after

would

permit

transportation to "price" its prod-

Continued

on

page

as an ojjering oj these Securities Jor sate, or
ojjer to buy, any oj suck Securities. The ojjer
only by means oj the Prospectus.

as an

ojjerlo but/,

$25,000,000

by Mr. Smith before the

Convention of the Association of Railroad

Advertising

Managers, Chicago, 111., Jan.

21, 1955.




,

DATED

old

same

trains, coming over the
beds, into the same

stations,

after

year

year

after

year.

price

As

well

you

they

as

know,

know

goes

on

meet

You

have

considerations

insufficient
no

come

as

for

funds

place that

rail

investment

more

Glore, forcan & Co.
Lehman brothers

Kidder, peabody & Co.

Merrill Lynch, pierce, Fenner &

beane

money

in

to

the

tackle

this

Committee

would

be

critical

and

inclined
more

to

be

smith, barney & co.

stone & webster securities corporation

of

campaign. We
people who are impor¬
potential railroad boosters

as

eastman, dillon & co.

re¬

that

tant

Copies oj the Prospectus may be obtained Jrom such oj the undersigned as may legally
ojjer these Securities in compliance with the securities laws oj the respective slates.

from.

attempted

situation

'

maintenance
seen
such

placements being postponed from
year
to y6ar because there are

We

and accrued interest

trying to
income, and

fit

necessary

problems.

—and

100%

year,

budgets

basic

the

the railroads sweat it

after
to

year

still

behind

on

You know how the finan¬

men

trim

the rail¬
niggardly

in making invest¬
improvement. You

what

scenes.

out,

as

look

ments for

cial

DUE JANUARY 1, 1980

INTEREST PAYABLE JULY I AND JANUARY 1

old track

same

old

3.40% sinking fund debentures

JANUARY 1, 1955

year—such men are surprised and
discouraged when they see the

felt
address

United States Plywood Corporation
Twenty-Five year

less

enthusiastic

if

Union securities corporation
January 26, 1955

at all

include

a

Railroad Suppliers'

tion.
•An

save

small percentage of his overhead;
or
the financial man who sees

can

railroad

own

tend

Presi¬

will

they

fabricating

roads have not been

railroads' traffic

his

about

investments

vast

equipment

built.

was

turer

any

planning.

dent's recommendations
far

This

along the

hope for in the earlier

The bulk
gress

the
rec¬

a

Congress.

are

—much further than
reason

appointed

Eisenhower

ISSUE

that

pro¬

already have been de¬

may

This

kind

be

sup¬

roads.

an

is made

be

can

legislation—to

ported by the friends of the rail¬

circumstances to he construed
or as a

that

will be able to tie the railroad

we

Doubt has been

deepened, too, by
the fact that the average business
and financial man, who lives in a
changing world, cannot
under¬
stand why there is so little visible
change in railroad stations, cars,
or rights of way. The automobile
manufacturer, who
spends mil¬
lions every year simply to keep

a

few men—and I

in would have to be introduced into

influence

moment, let's take

a

where

we
are
in this longplan—a plan which, I must
admit, is still in the minds of a

for¬

steps which could and; should be
taken

to

range

means

anchor to windward.

the

who

willing

if

Long-Range
Program

tries; and to make it clear beyond
doubt

thou¬

A Look At the

Now for
set

the

people

they felt their
energies were being channeled in
an organized way.

first campaign

our

hand

a

to

than

more

these people.

economy

If anything

important

be

there¬

doing anything about
would have to start slowly, and
it. Therefore, it is not enough to
parlay our progress into a series
spell out the plight of the indus¬
of successive steps which would
culminate in returning the rail¬ try; it is equally important to re¬
late the welfare of the railroad
road industry to the free enter¬
industry to the welfare of their
prise system.

mistic

allocated

of

mind

about

We

people who

fore addressed

own

than

Smith

had

be

lend

be cultivated and, in

Situation

us

could

the

tion

fundamental interest in the rail¬

road

and

of

Congress, and specific assignments
sands

would

inherently interested in
railroads, it is obvious that

It appeared that the steps in this
railroads
investigations during the
upon
the rest of the
year
found the same rich campaign might be taken about economy had to be clearly shown.
as follows:
vein of interest lying deep in the
Ben Fairless made a start on this
business and financial community.
(1) We would first capitalize on in his speech at our opening din¬
Many
businessmen
lack
confi¬ the fact that many of the most ner when he pointed out that
dence in the management of the effective people have an inherent some 15,000 steelworkers were out
railroad industry in an instinctive interest in the railroad industry, of
jobs
solely because
of the
way;
most businessmen do not and want to see it prosper. We felt depressed conditions of the rail¬
this interest could best be nour¬ roads.
appreciate the full significance of
the hurdles placed in the way of ished
by building confidence in
(4) The next step in our cam¬
efficient
railroad
management,
railroad management. Therefore, paign would logically be to detail
and some are inclined to feel that

a

others

were

railroad

difficulties and under-apply their
talents. In spite of this, they have

otive

financial community are

My
past

the

tric, Westinghouse, the
foundries,
1

the

some

something

get

Financial

and

campaign

in planning this campaign was a
long-range program to actually

More Interested in

Community

of

a new

to

standing
the

find

Business

at

started last year.

Railroad

the

(1) the

rates;

the

and

ganized for

under¬
writers and investment companies to provide funds for railroad
modernization; (3) some moderate form of subsidy to rail¬
roads; (4) a re-assessment of the rail labor situation, and
(5) a stock-piling program of railroad materials and equipment
given

we

behind

moment

a

politics, and, since we know that
the people who make up the busi¬
ness

already

Getting Something Done About

formula for railroad financing that will encourage

new

lies

which

a program

recommendations:

as

what

tangible

a

plight of railroads, Mr. Smith outlines

about the situa¬

important quarters.

many

President, Fred Smith & Co., Inc., New York City

interest in the

have plenty of evi¬
we made the point in

we

dence that

By FRED SMITH*

Asserting, for the first time in

more

tion. And

9

white, Weld & Co.

64

10

The Commercial and Financial Chronicle

(470)

United Artists Stock

Coming Legislation and
Business Prospects

Offered at $17

,

!

lican
.€

President

had

with

deal

to

further

controlled

fey

the

must

things—
political

the

the

and

over¬

and

program.

j.

with
S.

collateral

two

A.

is

ward

be¬

Sen.

Styles Bridges

ex¬

effort

to¬

budget.

balanced

a

the

the

at

in

Inc.

theatre

Artists

has

Theatre

Corp.

investment

Magna

Theatre

Circuit,

in

Magna

believes

and

In

interests,

investment

an

Theatre
the

Continuation of the Small Busi-

its

ex-

States.

United

the

to

of

that
in

UATC

Corp.

of

MODerlvsoamatter

n'riH from
btical climate and finm
we are

nnw

now

made

was

is
ness Act and strengthening
of upon the belief that the income
no' Federal disaster assistance pro- to be derived (a) from the exgrams would seem to have ample hibition
in UATC threatres of
on
support
gome attempt may be Todd-AO pictures and (b) from
nn

pointing toward the Presi-

spS

to

made

fiexible price sup-

vary

Magna

(c) through the Todd-

directly and
well> adjustments have been made AO Corp
cists tr^to ldoDt the
fairly smoothly, and there appears subsequent
Jto be less likelihood of change Todd-AO
President as their own and also
tn

the

P°rts but the P^gram is working

apolo!
RenuXan

and

Democrats

Corporation

Theatre

from Oklahoma and
pictures produced in

thek

whether

Magna

by

Theatre Corp. or others, would be

...

try to predict that his legislative novv than Previously
considerable and that UATC and
program will have better results
Finally, in the humanitarian United California Theatres, Inc.
=
in their hands.
They are obvi- field
public welfare legislation would benefit substantially thereously relying on the polls in re- involving health, narcotics and from The company and jts sub_
gard to the President's popularity problems of the aging and aged sidiaries aiso act as lessors of
if

they
should

&nd

they

in
in statistics
recognize the
the
Republican

believe
also

that

etatistics

the

members

in

naturally

have

record

the

on

last

voting

President

s

pro-

posals than do the Democrats and
the same will unquestionably be
true in the present Congress.

specific legislative meas¬
have not yet been submitted

to the

Congress I

varie<j

fae

I

hitherto

have

the

considerably from

.

,

,

summation

In

—

particular bills but can only dis- for all phases of
legislative areas in general.

banner

a

broad

in

tions

can

be

scope

day

to

Clay by shifts in Democratic party

policy, not to mention the

H. C.
(Special

Wainwright Adds
to

The

—

Francis

B.

Dnnn is now affiliated with H. C.

Wainwright & Co., 60 State Street,
members

Pacific Northwest

Boston

the

of

Stock

New

York

SEATTLE, Wash.

find ourselves.

we

In the field of

foreign economic

policy I would expect the President's trade agreement powers to
extended

I:»e

provided sufficient
safeguards are included to protect
adequately domestic manufac¬
turers. Generally speaking, I feel
that

implementation
forthcoming to promote

legislative

will

be

the free flow of goods and capital

including

such concomitants as
cooperation, trade fairs

technical
and

international travel.

For

the

most

President's
program

part I

think the

military preparedness

has been well received.

Legislation and appropriations to
maintain

the

utmost

in

mobile

—

beeo elected a

native

(Special

son

Bateman

with

o r

t hwe

t

s

Company

ceive favorable treatment includ-

s'e?ved"

as

years ln

the Portland oUlce

an extension of the President's
induction authority. While on the
national defense I feel that the

n

1932.

H

as

a

career

will

for

several

trading

became

department

at

the

production side I believe the headquarters in Seattle after the
Act

On trading department

should

and will be extended.

a

President

vigorous

s

program calls for

growing

which should set

production

and

new

economy

records for

business




and

has

served

at the firm's

in

that

ca-

parity for the past eight years.

On the domestic economic
scene,

the

war

activity

Bateman

both

the

is

a

past President of

Portland

and

Traders Association. He is
ber

of

The

Financial

once again finagling with
the industry and
nullifying the reform legislation of the 30's.

What

it

as

the studied conclusions of

really

is,

is

Carlisle Bargeron

an

of the Senate.

arm

political

document of two Senators,
Langer of North Dakota, and Kefauver of Tennessee, and is based
upon no more than five or six hastily called one-sided hearings
a

designed

to head off the Dixon-Yates contract.
Senator Kilgore
Virginia, who shares the views of Langer and Kefauver
public power, joined with these two in signing the report but

of West
on

he took little
not

if any

Indeed, Kefauver was
one-man hearings
Senator Dirksen of Illinois, another member

part in the hearings.

present all of the time.

conducted by Langer.

of the sub-committee,

They

were

mostly

but having more worthwhile things to do,,

did not, I am pretty sure, attend a single

hearing.

The hearings were

strictly hatchet jobs. Not a single witness
friendly to the Dixon-Yates contract was called.
The hearings
were confined
to this contract, yet the report attacks the whole
industry and urges a further investigation of the industry. What
is wanted is such a raking over the coals as the industry experi¬
enced in the 30's.

Bluntly, if this report has made no more of a study of mergers
industry than it did of the Dixon-Yates deal it is, insofar as

in

adding to the, knowledge of the public or of Congress is concerned,
not worth the paper it is printed upon.
I think I can say

without fear of contradiction that

hearing

no

McCarthy ever held was shoddier or more cruel than the work of
this sub-committee, mostly Langer, at the instigation of Kefauver.
But

hear

you

no

outcry of indignation by the "Liberals," no call

decency and fair

towards American citizens.

play

We hear

nothing of the alleged hysteria and witch-hunting which is likely
to destroy our most cherished institutions.
Presumably none of
professors feel in the slightest cowed by this episode.

our

Well, Messrs. Dixon and Yates are not hiding behind
they are not suspected of being Com¬

Why?
Fifth

Amendment,

They

They are simply American
dollars and cents at stake.

"Liberals."

not

are

Apparently American businessmen are the legitimate prey of
one-man Congressional hearings, of demagogues.
It is all clean fun
and

wholly within the American tradition to smear them.

But go

suspected Commies, on fellow travelers, Leftists, "Liberals."

easy on

The

sophomore,

perpetual

occasion for
to

his

come

attack

an

revolted

be

the newly

elected

Senator from

Nixon

State.

upon

Vice-President Nixon.

He

pro¬

by the type of campaign Nixon had made
only pointed out how the Communists had

to saturate the Washington government during the 20 years

of Roosevelt and Truman.
Yet

other occasions Neuberger has proudly

on

which he conducted

his

own

campaign.

told of the skill

He spent the first

a

of the people" to greedy, selfish interests, a
that is utterly impervious to the needs of the little school
children, to the common people as a whole.
"natural

joined the staff of B. C.
Penobscot Building.

a very upstanding
Why, by portraying him as in
sinister gang that is bent upon giving away the

How does he discredit him?

league with

Chronicle)

the

to

resources

gang

I'll take the Dixons and Yates and Nixons.

You

have the

can

Neubergers.

-

National

Traders Association.

Seattle

Security

(Special

Provost

has

Atkinson

of

been

—

added
and

Walston Adds

to The Financial Chronicle)

Douglas and Edwin R. Eklund

neapolis
Tower,

Associates,

Inc.,

Rand

(Special

(Special

the

to

to The Financial

Chronicle)

CHARLOTTE, N. C.—Hobart L.

S.

Dom

Company,

PORTLAND,
now

Company,

McKeever

is

now

with

Interstate

Securities Corp., Commercial Na¬
tional Bank Building.

621

P.

ST.
Ehler

Co., 28 North Minnesota Street.

(Special to The Financial Chronicle)

—

Southwest

GREENSBORO, N. C. — Earl
has joined the staff of

William

with Walston and

Morri-

Carrick

Smith, Clanton & Co., Southwestern

to

The Financial

LOUIS,
has

Slayton

Mo.

become

&

Olive Street.

—

Company,

Adrian J.
Inc.,

Lynch

(Special to The Financial Chronicle)

Chronicle)

affiliated

Building.

With Merrill

Slayton Adds to Staff

Larry W. Curtiss are
with State Bond & Mortgage

ULM, Minn.—Richard

Oreg.

With Smith, Clanton

Staff

Chronicle)

Street.

(Special

to The Financial Chronicle)

and

to

to The Financial

P. Jones is

son

State Bond Adds Two

Carey

Oreg.

U. S. National Bank Building.

have become affiliated with Min-

now

PORTLAND,

(Special

Chronicle)

to The Financial

Minneapolis Assoc.

NEW
a mem-

(Special

staff

MINNEAPOLIS, Minn.—Russell
L.

With Interstate Sees.

Joins Atkinson Staff

The Financial Chronicle)

Baker Building'

of

manager

the

Production

to

Wonderly

With

substantially

Defense

lesson.

a

It is submitted

man.

has become con¬
nected with C. D. Mahoney & Co.,

C.

to entering service during World
the

to

is

with

Exchanges.

nrinr

rwfiQT„q

be

supported.

Main

e

proposals to make military service War II. He
attractive

Homer J. Bateman

trader

Ing

more

1387

MINNEAPOLIS, Minn. —Faner

etriking power consistent with a
long pull "cold war" should re-

i

have

(Special

Pacific
N

be

make life
private power industry.
is

With C. D. Mahoney Co.

investment

business

can't

contract

the

in

career

Stock

the

Thus the report charges that "Wall Street"

C

Morton & Co.,

his

began

Jav

DETROIT, Mich.—G. Simon de
Montfort and Truman N. Thomp¬

of

Mr.

Seattle,

Boston

It springs from

part of it, he says, discrediting his opponent,

President.

A

Brothers

Tifft

—

associated

Two With B. C. Morton

by
Wil¬

F.

wiRl

Mass

become

has

If

th<4 thing to do

uncomfortable for the

fessed

was

announced

son,

off

Teach it

in
SPRINGFIELD

Roberts

contract.

Oregon, Richard L. Neuberger, made a recent purely social event

Joins Tifft Brothers

and

dentofthe

Lyle

makes.

contract

Street, members of the New York

Vice-Presi-

it

Dixon-Yates

headed

the

Homer J.

Bateman, manager of the trading
department of Pacific Northwest
Company, Exchange Building, has

firm,

brated

and

Exchanges.

peace

in which

in

mergers

industrialists with their reputations and

Chronicle)

Financial

Mass.

of

comes

the anger of the Public Power lobby over the
dent in the expansion of the TVA which the

the

BOSTON,

Bateman V.-P. of

fluid

situation of the "cold war"

Co. in

with Alien &

a

serious study

a

number

up
with the ominous
that it is the third great wave of
in the country's history, the report is
thinly disguised attack on the private

munists.

year

predic¬

any

from

upset

really

unusual

and

electric power industry, provoked by the cele¬

Co.; E. F. Hutton & Co., and Sutro

economy,

our

recent

mergers

for

Associated

tive action I feel will be taken.

cuss

Even

properties

posi¬

some

the

Bros. & Co.

.

,

proposal but

original

not pinpoint

can

which

commercial

which form a part of the theatre
the divided buildings or properties which they
own.

final hedge in

a

various

pointed out; where favorable legis- the offering are—Salomon Bros. &
jatiVe action is indicated it may Hutzler; Carl M. Loeb, Rhoades &
.

Since
ures

As

situation

sufficient

have

to

seem

support for passage.

Congress

better

a

would

Although it purports to be
of

warning

picture

motion

10

top

heard any word of protest against the widely publicized report of
the Senate Anti-Monopoly Sub-Committee.

&

T.

rpmpmberprf that legislation

p

and

have heard a lot, in fact, until recently, you scarcely
anything else, about the hatchet methods and one-man hear¬
ings of the McCarthy Sub-Committee. But in no quarter have I

industry

N.

Marine

The

and

as

made

be

By CARLISLE BARGERON
You

Midland

America

of

Bank

loans

bank

well Inc. is primarily engaged in the
pub- motion picture exhibition busiproposed, ness. Based solely upon the num-

unremitting

of

pense

must

it

cause

not

should

is

first

important

under

tax hibitors
they are, the addition
proposes
that
they United

President

appeal of

The

by

large,

a

program

Desirable

cuts,

soundness

bis

be

will

the company to retire
outstanding bank indebtedness
used

regar^^to^econormc^legislat o
the desire to grant further

President

all

shares,

common

$5,200,000

i

mu

of

popularity

the

of

approximately

highlighted by a Federal road ber of theatres in
whiph the
program.
So far there have not company, its subsidiary corporabeen
too
many
danger signals tions
and
the corporations in
raised in regard to this program, which it has an interest, have an
in
interest (some 350 theatres in all),
The only di Acuity
g
the cornpar)y ranks jn size among

we

consider

two

tiie

outlook

works

lic

legislative

outlook

sale

the

proceeds from

net

conceived and vitally needed

party.

Therefore, in
any

total

the

augment

business

oppo¬

sition

ii
heard

Of

endorsement. To capital.
the favorable
United Artists Theatre Circuit,

Congressional

Congress in which both Houses

are

the books closed.

and

in

Repub-

a

stock at a
share. This of¬

common

general. Legislation designed Trust Co. of New York. The balto promote a favorable business
°*' the net proceeds will be
climate
will in general receive added to the companys working

Not since the Administration of

Benjamin Harrison has

Theatre

Artists

United

Inc.

price of $17 per
fering was quickly oversubscribed

Senator

J

of

Circuit,

Bridges, noting for the fori: time since Benjamin Harrison's Administration, a Republican President must deal with
a Congress controlled by the opposition party, holds, despite
this, forthcoming legislative program, because of the Presi¬
dent's popularity and the soundness of his program, will pro¬
mote free flow of goods and capital. Says only difficulty looming in economic legislation is desire to grant further tax cuts.

!

;

a

shares

Policy Committee

Chairman, Senate Republican

Washington
Ahead of the

(Jan. 26)
syndicate offering 400,121

headed

from New Hampshire

U. S. Senator

From

Sh.

a

Allen & Co. yesterday

BRIDGES

By IION. STYLES

Thursday, January 27, 1955

.

.

.

with

408

is

CANTON, Ohio—John V. Stahl
now with Merrill Lynch, Pierce,

Fenner
Tower.

&

Beane,

First National

Number 5398

Volume 181

The Commercial and Financial Chronicle > v

...

(471)

Chicago Nominates Officers

What About Aviation in 1955 ?

ufacture

have

may

be

Republic Aviation Corporation

peak

aviation

bad

nor

-

In

of

the

1955

will

be

trial—not

a

attempt to reach

an

a

RF-84F

the

time,

the

production

has

and

by

which

received the

advanced

Our

military

the

,,

has

aircraft

always

downs

the

Henry W. Meers, White, Weld & Co.

up

90%

will

of

feasts

and

approaching

industry's

to

attempt

and

find

Central Republic Company.

Treasurer: Edde K. Hays,

for

is

expected

itself

In

to

its

and

pro¬

the future

arrive

to

in

the

toward

employees.

efforts

its

all

But

offer

at

a

which

the year,

Monthly Invesimsnt Plans Total 28,800
million,

Keith Funston,
New

of

tion

rounded

its

out

first

has

long believed to be
commensurate with the increasing
importance of airpower as the na¬
tion's prime means of survival in
a

nuclear age.

$68,G.

Keith

t*uu»iu*

vestment Plan

introduced

25,

for

the

listed

change

the

to

public

on

1954. The Plan provides
purchase
of
securities

As little

as

basis.

pay-as-you-go

a

on

then,

the

into
new

scheduled

be

From

passed.

industry

will

build-up
the

and

the

of

planes and missiles that will

required

from

1957

332

wing F-84F Thunderstreak,

327

high-speed

327

ble of delivering nuclear weapons,

The

$40 per month

per

or

at

270

236
201 *

needs of small to

medium income

______

overseas

In

In

operation

discussing

and

Plan

disclosed

shares

300,000

first

its

during

Funston

Co.

Southern

Greyhound Corp. ______
American Radiator—1.

of

well

al¬

have

stock

Chrysler Corp.___.____-

Mr.

Plans,

Monthly

Funston

added, are only slightly more pop¬

.

putting

an average

Plan

into the

(Special

of $65 monthly

while quarterly in¬

are

averaging $82.

1955

note,"

capa¬

reinvested

who

prefer

to

has

steadily

climbed,

low of 74.3% at the inaug¬

a

of

the

Plan

to

the

started during the

completed

or

stock, to take

term

first

course,

The

and

Barnes

now

2200
was

with

Gates

John G.

Richard

announcement

Mr. Gates

Sixteenth Street.

industry

will

dolph &

Co.

be

ployment

at or

near

the 755,000

Joins
(Special

Reynolds Staff

to The Financial

SACRAMENTO,

Chronicle)

Calif.

is neither

nolds &

Co., 919 Tenth Street.

offer to sell nor a solicitation of an offer to buy any
offering is made only by the Offering Circular.

an

of these

January 25, 1955

EXCHANGE OFFER

The New York Central Railroad

250,000 Shares

Boston and

Albany Railroad Company

Spring Street, members

Los

the

exchange for

Financial Chronicle)

Marache, Dofflemyre & Co.,

634 South
of

Company

Twenty-five Year Collateral Trust 6% Bonds
in

Angeles

Stock

Capital Stock

Ex¬

the

to

The Financial

LOS ANGELES,
Cadenasso is

P.

Lynch,
523

Pierce,

West Sixth

year were

Chronicle)/;.

Calif.—Eugene'

now

with Merrill

&

Fenner

Beane,

Street.

to

The

has

Financial

added

to

C.
the

staff of Schwabacher & Co., Cen¬
tral Bank

6% Bonds.

Central has authorized the

group

undersigned Dealer Manager to form and manage a

of securities dealers for the purpose of soliciting such exchanges.

Additional information and terms of the

Chronicle)

Calif. —Wayne

been

Collateral Trust
.

Schwabacher Adds to Staff
(Special

of
of
Capital Stock of Boston and Albany Railroad Company the opportunity to exchange each
of their shares of said Stock for $150 principal amount of Central's Twenty-five Year

Subject to authorization by the Interstate Commerce Commission and the other terms
its Exchange Offer, The New York Central Railroad Company is offering holders

With Merrill Lynch

a

Exchange Offer, which expires April 1, 1955

(unless extended by Central), are contained in Central's Offering Circular, copies of
which may be obtained from the undersigned or local members of the National Associa¬
tion of Securities Dealers, Inc.
■ *
' '
.

Building.

Stephenson Leydecker Add

profit, to get cash

Plan chad

run

its

were

the

G.

to

The

Financial

Chronicle)

—

Lawrence

Cappelli has become connected

with

Mr. Funston said.
following stocks




(Special

OAKLAND, Calif.

because the

Stephenson,

Leydecker

Co., 1404 Franklin Street.

&

Merrill

Lynch, Pierce, Fenner & Beane
Dealer

Manager

—

H.

Newell Andrews is now with Rey¬

Co.

ANGELES, Calif—Francis
has become connected

'are

Harrison,

A.

previously with Paul C. Ru¬

terminated for vari¬

emergency, or

of

L.

Chronicle)

Calif.—Arthur

Mr. Ells¬

Bowen

with

OAKLAND,

reasons—to switch into another

an

The

to

Arnette

Approximately 17% of the Plans

for

Chronicle)

Street.

Sixth

Bruce &

LOS
R.

latest

figure of 78.6%."

ous

the

it should be able to maintain em¬

Marache, Dofflemyre Adds

Mr.

have their dividends automatically

uration

the part of

The Financial

was

(Special

MIP "investors

from

Financial

New

Funston said, "that the percentage
of

on

With its production
relatively fixed for the year,

formerly with First
California Comoany ahd J. R. Wil-

daily.

interesting to

is

The

to

West

worth

coming in at the rate of

are

about 100

are

and

to

SACRAMENTO,

change.

vestments
Plans

continued,

executives

(Special

nu¬

.

LOS ANGELES,

(Special

MIP investors, he

a

$37,500,000
Upham Co.

Joins Harris,

ular than quarterly Plans—around

15,500 as against 13,300 quarterly.

With Richard Harrison

and

184

liston,

ready been purchased.

& Co. and Fewel & Co.

187

523

over

Milton-C.

with

-191

Mr.

year,

that

one year,

urgency.

base

a very

securities. The

the

of

Greiner
gan

produce huge

wrestling with these problems in
an atmosphere of less excitement

mass

the swept-

fighter-bomber

This

Calif—Thomas
T. Ellsworth has become associ¬
ated with Harris, Upham & Co.,

investors.

now

Security Building. Mr.
was
formerly with Mor¬

Powell Co.,

has

industry

To maintain

skilled

of

$999 per month.

as

is

„

Calif.—Walton L.

PASADENA,
Greiner

.

The Financial Chronicle)

249

Canadian Pacific Ry.—_

allies

260

Consolidated Edison

our

The firm is

318
288
286

Eastman Kodak....

to

the entire industry.

itself

Republic

generally typical of that for the

entire industry.

Westinghouse Electric..
Socony-Vacuum Oil—_
Carrier Corp
Pacific Gas & Electric..

continually

-

326

quarter may invested or as much

The Plan was
devised by member firms of the
Exchange to satisfy the investment

outlook

the

traordinary agility

onward.

and

Biscuit

foreseeable

financing, to provide for buildings
and equipment in the face of sucn
circumstances
has
required ex¬

361

—-

(Special

employees, to achieve satisfactory

bringing

first

the next.

cleus

be

sustaining the

upon

production

now

producing for the U. S. Air Force

the New York Stock Ex¬

on

until

been

concentrating

U. S. Steel

The
Monthly In¬

Jan.

none

now

373

National

a

000,000.

was

has

1,541
1,361

Union Carbide & Carbon

invest¬

be

quantities of aircraft

is

—

will

'

Milton Powell Adds

adopted

large and modern Air

which

Heretofore,

636
451

Oil

the

been called upon to

802

Gulf

a

into

the scheduled build-up toward an
Air Force of 137 wings by 1957

977

Corp.__

now

kept up to date in line with the
startling developments of aero¬

of

end

general

a

International Nickel

completed it

of

Motors

the

Long Island Lighting—

were

ment

and

duPont de Nemours

of

mean

of

War

Tri-Continental

$11,500,000 —
and, if all

would

result

Standard Oil of N. J.___

represent an

total

a

American Tel. & Tel

The

Plans, he said,

Plans

Chemical

General

is

Korean

1,164

__

future of

Force

1,337

Corp

maintenance

month by next

per

The nation has

'

•

..

policy which looks toward the

a

month in January

industry

advantage in

new

easing of international tension, as
well as the fact that the peak of

of Plans

Name of Stock—

800

one

the

op¬

march
stability

of

degree

an

its

continue

to

the

industry

nautical science.

Number

Dow

Plans

investment

This

the

31, 1954:

General Electric

Jan.25

effect.

of Dec.

as

about

stability,

of

enjoy

1955.

Peale

December.

popular among MIP investors

most

Radio

about

28,800
in

an¬

opera¬

on

with

Exchange,

that the Monthly Invest¬

Plan

ment
year

President of the

Stock

York

nounces

to

plans now in effect represent an investment of %W-/z
and, if completed, means
total investment of
sixty-eight million dollars.

reveals

I.

Mundy

from

rate of about

900 aircraft per

Funston, President of the New York Stock Exchange,

Keith

will

through

ally
a

degree

should

all, the year

entire

it

be

not

'

decline gradu¬

Nomination is tantamount to election.

are

more

industry
a bad
year for
aircraft manufacturing.
By the same token, it will not be
a peak year.
As new planes come
into production, it may be neces¬
sary
to
adjust employment. in
many companies.
should

portunity

steady level of

a

duction and to plan into

duction,

Co.

and require

history of the

1955

ups and

something

present pro-

Secretary: Donald B. Stephens, Cruttenden &

year

the

As

famines,

history been subjected to

about

due

aircraft now

delivered

and

built

goes,

industry,

makes

be held Feb. 10:

is

throughout its

aircraft, which

annual election to

following slate of offices to be voted on at the

F-105.

which

in

of

CHICAGO, 111.—The Bond Club of Chicago has

beginning

very

a

So 1955 appears to be the

y.

manufacture

Edde K. Hays

Donald B. Stephens

Henry W. Meers

on

same

backlog
slightly less than $1 billion.

The

This will in part be

complex

more

top secret fighter designated
the

as

other indus¬
tries.

is

company

bility which
enjoyed

being

counterpart

of the Thunderstreak. At the

long been

that Will

sales figures

to the fact that many

Thunderflash,

photo-reconnaissance

type of sta-

man¬

compo¬

work.

and

industry

unusual period
trial by crisis but

an

and

those of the past
but they will deliver fewer

aircraft.

1955 will be neither

for aircraft manufacturing. Maintains the
industry is on way to long-term stability.

aviation

facing

predicts

year

entire
"

executive

aircraft

larger than

year,

Prominent

of

Some individual companies

nents.

By MUNDY I. PEALE
President,

President:

engaged in the

persons now

Bond Club of

11

12

(472)

The Commercial and Financial

Continued

Bank and Insurance Stocks

This Week
Interest
centered

of

annual

the

around

—

in

recent

has

weeks

different institutions

ing

the

proposed

Manhattan

to

New

be

may

National

the

and

Bank

of

largest bank in the City and second only
in the country.
Also the annual meetings

York

banks

the

and

statements of optimism

"vah^

Market
fafter

calculated

Dumont'

capital

Television

($1

the

coming

made

year

various

by

officials

attracted

has

Total

other
the

and

of

are

relatively few stockholders,
primarily in New York City. In

interest

the interest of bank

areas

operating results for the
On this

investors has

focused

been

upon

just ended.

year

3.oo

than double total current liabilities.

point most bank stockholders have

for feeling

reason

satisfied with

the results for 1954.
With very few exceptions, all
of the major banks in the different business centers have reported

gain in operating earnings for the
compared with those of 1953. Deposits are up
good

a

The

the

general

operating

banks

some

the

whole,

best

or

show

judging
of

one

year
as are

just ended as
earning assets.

has been similar throughout
there are individual exceptions
percentage gains than others.
On
by results published so far, 1954 was the
best years in the history of most banking

country although, of

and

the

Strong

the tabulation presented below we have listed 17 of the
banks in different parts of the country that have an¬
nounced or published earnings and show the net operating earn¬
ings on a per share basis for the past two years.
Per Share Net Operating

1954

Trust

(San

substantial

Cleveland

Detroit

First

Bank

;_1

18.83

20.68

7.21

7.64

6.13

6.07

4.59

4.30

1

National

...

National

First

3.06

2.93

—

Bank

National

of

Bank

Boston

of

17.85

Chicago

National

Bank

7.53

6.10

5.93

4.78

further improvement

timated

3.79

Shawmut

3.87

Bank

Pittsburgh
Security-First, Los Angeles

per

4.76

4.07

appropriate

dividends and splits so

adjustments

have

been

that present figures

are

made
on

a

for

stock

k

i

one

operating

or

particular banks do not publish
but just show a net profit figure.
The

earnings

to and from internal

a

per-

formerly
good

not
of

case

entirely valid. For example had Continental Illinois National
Chicago, shown net profits rather than net operating earnings,
the figure for 1954 would have been
$8.06 as against $7.94 in
1953.
Thus, instead of a decline in operating earnings for 1954
the Company showed a gain in net profits because of
the larger
realized

America

securities

on

First

and

National

1954.

in

of

Other

than

Bank

of

time,

list had

of course, that
substantial

of

the

,

other

■■

.

v,,

banks in

the

security profits which if added to

op¬

many

erating earnings would further increase

per

Thus, on the whole 1954 must be considered a good year for
banking. The results now being published helped to account for
stock

dividends

saorina,

Country

visTon"

Hasselbach

is

—

now

with

Weber-

20
Mary

G.

out

Roebling

ties;

o£ the San Antonio Manufacturers'

ghost

skilled workmen

the City Federa-

ness

tion of Women's Clubs,

"Today's

on

Chal-

?,rt

1S the

tl

k

°

challenge

widen-

"for

around

film

35%,

from

higher in the
exceptional films.
and
it
it

should
snould

"Rpdt
"Rpar
near

hp
be

Wjndnu; "
Window

nh
ob-

oirture

"TVio
"ThP

winaow,

ine

"Knock

and

on

first

"Vista-

"White

-

{

a

the stock

°\.

Christ

"Vistavision"

and

-Cme-

^"e'al/es, wXh^ces^equ^

sense are not

Mitchell & Co., 411 North Seventh
Street.

Mr.

Hasselbach

was

for-

merly with Waddell & Reed, Inc.
and A. A. Tibbe & Co.
'

™ysterJes of stock exchange deal-

banker

years

YEAR-END COMPARISON

'

16 N. Y. City
Bank Stocks

of

and

on

past

38

Members New York Stock Exchange
Members American Stock Exchange

5, N. Y.

new

industry—its railroads,

its oil wells

its pipelines

K?_011 ^ells' lls.Si??1"}®®!
ities

ligitimate

every

its util-

Manufacturing

its

Bankers
America.

Association

of

to

The

Financial

bygthe

been

o^Ls hale

filmed

that

a

rp

0

shown

Hotel

Egypt.

good

It

part

of

is

tRied
tified
•
•

plants,
that

.

whose fi-

wnose 11

u

i_.

would

statements

comply

with existing statutes

Building.

It

o£ restricted

Teletype—NY

existing statutes.
"l am not overly

"

(L. A. Gibbs, Manager Trading Dei»t.)

Specialists in Banh Stocks




Shively is

now

—■

Everett

with McDonald &

Company, 50 West

Broad Street,

be

added.

recent

of

The

in

C3n

from,

machines

of

eeoeranhical

manv

?ne °.
have, is well managed and

anxious

to. °Pe?ate the Exchange

™Jf

The destruction of

bv

sudden

a

one

with

°tSe"i ieTan^x:

Zl o" compani'e?5

thrust

enemv

neipiess,

,

section
section

a

ckiiipH

\

under
unuer

lahnr

J3

-k

must

over

atomic
atomic

hp

fluid

\

;u

the entire

be

done.

many

no

There

watchful

great harm
are

eyes on

it*

coun-

this

"As

idea

^ this ldea dawns upon
dawns upon

too

our
0

djum

are

sized

manufacturers, who
unit in the

lmp0rtant

an

Ski"ed lab0r Tl "

gtantly

neces"

must keep our minds
this

con-

subject, and if
existing or planned tariff changes
affect the manufacturers, relief of
on

kind must be forthcoming."

some

With Gallagher Roach
(Special

to

The

Financial

i

Chronicle)

can

many

the opera-

tions o£ the market,

Nothing Seriously

lire.

in

pe0pie, fuller appreciation will go
to tbe problems of small and me-

feut the QQld calcuiating facts win

and

must

oy naving

°Ur section ma*lnes atomic fire
fm,eSt under congested m
a

appear from time to time, confidence can beget a buying fever,
out

one

area

suaaen enemy tnrust must

t

?hinge CommifsTon ii^keeplnfa ^ 3 raovement becomes

come

at

areas

manygeograpnicai aieas at one

time.

c

Th® ^tock Exchange is
e„
organizations^

tinued;

won't

compass mosl

cure.

were

St°Ck

COLUMBUS, Ohio

peril the
labor forces to

concerned try-

about the stock market," she con-

20 bfgb~budSefed films scheduled tion

tn

our

men

transferred

distribution

Wrong

"Nothing is so wrong with the
accumu- buying and selling of stocks and
foreign earn- b0nds that a cold shower of margins and threatened investigations

.g understood Paramount has

1-1248-49

of national

COLUMBUS,

Chase

Ohio

—

Leo

M.

is

now
connected with
Gallagher-Roach
and
Company,
1683 West Lane Avenue.

of

Telephone: BArclay 7-3500
Bell

time

in

must he im-

a•

probable

out

^ms.Sreat asset must he pieserved

company

accountaints^and^
accountaints and
accountainis ana

nancial

production

costs wiU be financed
Paramount's substantial

SferiULvSATie™ 'llr? !ation
O.yii?:
& wMcDonald Add*

in

Chronicle)

nhiA_nn,^

Beane, St. Francis

d

Mille
production
of
"The
Ten
Commandments" which
will
be

Merrill Lynch Adds

nation in the world.

no

This great asspf must hp nrpcprvpd

could pass the examination of cerpass the examination of cer-

new

film

ar¬

sur-

•

either of ^

™ processes have been shown.
Paramount s schedule of
fdms
a. new Cecil B. De-

Group, Invest-

h'P?n l0—I??.y.1Re?~

Laird, Bissell & Meeds
120 BROADWAY, NEW YORK

York

ment

pantdini

Request

the

currently is Chairman

the New

(Special

Copy

for

when

an

nr

a

gains

an invest-

Fluid

Be

iif ^
SfS^n do
peace to those °f Protective war"
? L i iiVS
fnrge In fare must be readied without de"
interest, smallor large, i1,1 lay, and this manpower should be
American

lde"1 °J th,e RalI"Trailer Co.
Mr- Smutny has been

busi¬

tusttx^sstsai vxxtitsar&z
the
wh°
quickly ,be

^teHes^^^

t£0 the screening ot companies.
projection
fn° prJPbet can *or®~
mediums have had most beneficial see ^bat the emotions of people
effects on the movie going public Fai?
orA^3 41S P®sslb^®»
^th attendL?e shS ? good but not,hkely: Adjustments will
show

These

small

workmen
workmen

siUk

ha,

most

bring

now

Paramount's

can

skilled
sKinea

for

'

f

leaving

unemployed

and

Labor Must

assembling of

*

proper¬

"We have in this nation

senal
of
question
senai
ot
that covers passed by

responsibility toward

with

the borderline of suicide?

on

aUeStion—

„

local

elsewhere,

towns

Skilled

Mrs. Roebling said, "There
h

moving

excbange field

™pe" in a broad
ment

inventories and

joint iuncheon

Speaking

of mergers that

its

inglist 01 newcomers in tne stocK

Girl,"

systems.

labor

opportunity * to
dismantling plants in¬
stead of building them up;
selling

the

ore

high places looting

means

work, by

n v

a

by

as

The present

Smutny Named Director
°f Salomon Bros. & Hutzler has
bee" el^ted Director of the RailTrailer Co. of Chicago, it was anPpurJce<J b£ Eugene F. Ryan, Pres-

deny

t

jan

in

men

business

producer

Rudolf sm t
Clarence E.

n

stamp out
of ants in

movie

TwenuT ccntuyf rox's
partner

0 m

T

man

.

theatre distribution.

senior

\

spoke
bef

"Are

of

a

thousands

of

ant hill?

an

ment

,

lives

our

ai

year.

,specm . TP. fikmcul

c

"block"

a

larger cash payments made or contem¬
institutions as well as the optimism ex¬

With Weber-Mitchell

the boots of

as

and

•

Paramount's

LOUIS, Mo.

i

some

mas'—had the largest run of any
film yet shown at the Radio
City
Music Hall and is now in general

and

plated by the various
pressed for the coming

of

should
continue
to
accumulate
substantial
substantial gross revenues through
1955. These include such films as
19515. These include such films as
"Rahnna "
'Sabrina"

Roe-

in

ran

60%,

ness

privilege of corporate enterprise;
crushing competitors as ruthlessly

Trenton
T

and

decidedly

bidding

some

Wood"

share results.

of

Board

the

Man.'

the
national
defense,
Roebling asked, "Is big busi¬
too
big, and abusing the

ness

Mrs.

chairman of
^ b

of

a

Turning to problems of big busi¬

the

fur-

some

served, has recently introduced a
nnmhpr
number nf good niMnroc which
of cfnnH pictures

_

is

of

world will come to pass and once
we will be talking about the

Prpci-

dent

perhaps an era of
throughout the

quiet

been

Paramount
paramount,

Chicago, all of the other banks
f the other banks

above list show net ooeratina earnines.
operating earnings.

to

hiinCr

and

and

peace

Brotherhood

con-

a'

Mary

widening list
watchful eyes on the mar¬

fession

^.S,P jrs.al

message

com¬

to the

plea for wide again

a

skilled labor
for defense
reasons and a

'iVer 'fhe f1: lence,"
share for last

v.

pictures

50%

profits

of

net

ssswsssB'as;

the other banks

of

some

1955

(outlawing'

u

has
the

of

method

reserves.

This makes exact comparisons with

ST.

pictures

on

th*»

The stock is listed

Association and

theatres

against the exhibitor

two instances

Chicago, is after transfers

t)

motion

on

to

back

•

booking),

latter usually includes, profits on sales of securities and recoveries
as in the case of First National Bank of

the

reported

The consent decree

favor

Also in

above

is

improved

rented

years

comparable

basis.

on

business
attendance

a

vestment brokers,

enables the company to earn

vear.

ANTONIO, Texas—With

Es-

recorded in many years, with the
exception of the abnormal 1946

have

it at

rppnmmpnd

the New York Stock Exchange.

on

many

the back for tbe stock Exchange and the securities and in-

profits, reached about $3.60
share which were the highest

the.r im£[finem
mated
$3.60 per

3.72

7

Pat

elusive of 38 cents per share secu-

rity

all, Paramount's
earnings should show

3.46

3.95

tn

current price.

effective insurance against trouble.

are

ex-

in 1954

earnings

In

Peoples-First

It

operating

Maintains the

newcomers.

SAN

4.20

4.26

Where

of

Earnings and Outlook

centage basis.

City Bank—Cleveland

'

.

nave mucn t0 recommend 11 at tne

simplifying Wall Street

ket's operations

Revenues and net nrofits showed

are

National

the

In¬

higher rentals since most pictures

National Bank of Detroit

in
in

in

ternational Telemeter Corp.

also

National

net

the

eral excise tax

35.57

,

Stock Market in Good Shape, Says Mrs. Roebling

com¬

considerably
due to (1) the better quality and
calibre of motion pictures and (2)
refinements and improvements in
motion
picture
projection techniques (Vistavision and Cinemascope). The halving of the Fed-

2.93

Mellon

tangible

with

and

value, Paramount's earnings have been trend-

the

as

the

interests
Laboratories and

Chromatic

pay-

rnents, under such conditions, also

President and Chairma^ of the Trenton Trust
Company

and

mod-

some

dividend

mends brokers for

to

16.86

National Bank of Philadelphia
3.16
Harris Trust & Savings Bank
38.99
Manufacturers National Bank—
8.46

First

in

lywood,

Theatre

2.31

Cleveland;

Illinois

such

pictures,

com¬

period.

$2.75

Trust

Continental

Earnings

2.65

of

assets

Building,

With

power.

erate increase

tabula-

the

a

quality

pany's recently released films, the
large production facilities in Hol¬

1953

Francisco)— $3.29

America.-

Central National

other

this

include

earning

havP much

financially,

pattern

In

of

pany's

course,

major

American

not

larger

institutions.

Bank

purposes,

tion

iocc

better

prospect, Paramount appears to

Summarv
y

°

9.65
'30 65

servative"

by

.

4.50

______

Paramount

were alone more

3.50

holdings—

aided

healthy.
Total
(Jan. 2, 1954) of

tax)

Canadian

does

are

capital of $62.0 million. Cash items

It will be noted that for "conThese developments have affected

rk„+l™lr

Outlook for 1955, and beyond,

2,208,133 shares

improved projection techniques
current assets
&nd higher rentals perpicture
$74.7 million were more than five (along with television apd electimes total current liabilities of tronic affiliations) suggests a con$12.7 million, leaving net working tinued favorable trend in basic

attention.

however,

par)

Finances

—

about

0f 5.3%.

$9,341,000

$10'°° of $288 million

holdings

upward and, at a
price of
37 Vz, the regular $2 dividend provides a favorable return

$20,262,000

KTLA—

gains

Station

value

debt

ing

around

.

interest.

common

ap-

Amortized film (minimum valuation >
Market

favorably

was

'

Minority

followsi

as

and

by the critics.

IA

Long-term

working capital, after deducting

concern¬

the

America

of

Bank

of the various

Chase

of

merger

form

holdings

proximately
Net

In New York there has been considerable excitement

York

Capitalization—Finances

Security

Per share

being distributed.

now

to

The

I Like Best

of the

reports

New

reviewed

Bank Stocks

stockholders

bank

most

in

2

page

^

JOHNSON

By H. E

from

Chronicle...Thursday, January 27, 1955

"If

our

foreign

rela-

Correction
In

listing the

members

of

the

Board of Directors of the Trenton

in as good shape as our Trust Company in their Statement

mark6t'

the

nation

;o"ld

?0nditi°"' the ™rP°rate af-

rest easier, but even our diplo- filiation of Mr. William C. EJiret

introduction, "The Bridges mats

should be credited with the

Toko-Ri," premiered recently sincerity they bring to their

pro-

was

the

shown
proper

as William

C. Ehret;

form is Wm. C. Ehret.

Volume 181

Number 5398

...

The Commercial and Financial Chronicle

(473)

the

The Role of the

Security Analyst

industry

which

is

regular

has

groups

few

generali¬

There

has

considerable

been

improvement in both the quantity
and the quality of corporate in¬
formation being made available
to

stockholders

—

their

or

repre¬

sentatives

by the managers of
corporations
which
the

these

of

stockholders

in

too

in earlier years
information became available

the

many

While

own.

cases

result of

as a

best present your story

audience,
would

I

in
a
talk
designed
primarily to give such analysts a

to

though he not be
of the organization.

say

—

What Not to

stockholder.

The

looks to him for advice and
sel and

as

coun¬

result he has become

a

extremely important to the cor¬
poration management who must
hope for a friendly and sym¬
pathetic attitude on the part of the
stockholder.

The,' importance
of
friendly
stockholding
groups
has
never
been more apparent than at the
present time. For much too long
a

time has the attitude of business

organizations been defensive.

In¬

telligent

cooperation with stock¬
holder groups should be a great
help in taking business off the

defensive and enable it to adopt
more positive attitude.

a

The
tion

friendly spirit of

coopera¬

be based on a willing¬
give the stockholder—or
his
representative, the security
analysts — sufficient factual in¬
formation to eliminate a feeling
must
to

ness

distrust—or

of

than

that—

of the

exist¬

worse

misinterpretation

a

ing situation in the
picture.
The
lic

can

no

be

corporation ex¬
longer ignore pub¬

willing

to discuss
affairs
with

corporation's

He

the
the

stockholder and his representative
both

individually
of security

before
groups
analysts. He
should feel free to present the
facts concerning operations and
finances, without attempting to
gloss over existing problems. In
many
cases
this requires even
greater disclosure of information
than
is
now
being done. The
stockholder

business

the

is

he

and

owner

has

of

the

right to
know.
And
unless
the
security
analyst can have access to suffi¬
cient

and

factual

a

information

he

stymied in his attempt to
plete an intelligent analysis.

is

It

important that in prepar¬
ing a company story for a group
security analysts, the manage¬
ment refrain from using up time
to
talk
about
things that are
hardly pertinent to intelligent an¬
alysis. A meeting of the type ar¬
ranged
by
Financial
Analysts
Societies, is obviously limited as

is

com¬

Presentation

...

I

just

of

a

Company

Analysts

mention

that

to

an

in-,

creasing extent, corporation man¬
agements—probably stimulated by
their

public relations officials or
their public relations counsellors,
are
becoming interested in pre¬
senting their stories to groups of
financial analysts.
First of all,
the story?
*An

address

-

.

IS,

—

Above all do

make

a

glowing

sales talk. It is not necessary, and

quite often has

effect directly

an

opposite its aim.
Subjects That Should Be
Discussed

My discussion here today is con¬
cerned primarily with industrial
companies. It is in this field that

the greatest varia¬
types, quality and quan¬
tity of information available. In¬
encounter

we

tion

formation

and
data
concerning
public utilities and railroads—fi¬

and

otherwise—are

complete and
At

the

same

time

more

standardized.

more

this

does

not

infer that managers of such types
of enterprises should not attempt
to

provide financial

additional

corporate

Maas

1955.




even

of the latter's business.
'•

This might carry through as

be broadened to include

addition

to

earnings

sales, net income

are

concerned,

as

—

of

nancial

just what its competitors'
in any particular division

are

into

people with the
information. the

This is far from being the case.

broad

purpose

overall

divisions.

For

of intelligent analysis,

security analyst is naturally

interested in
total

a

published

breakdown

sales

of the

bilities"

of

an

organization. What

its

competitive position? Is an
expansion program justified? New
products
mean
"life"
to
the
organization.

is

Financial

all, let

Information—First

of

figures

us

operations, future programs, man¬
agement policies and other mat¬
of much

ters

greater help to the

This

announcement

is neither

an

The

(2) "Re-Hash*' of
ports—The Security

Annual Re¬
Analyst has
him all the published

available to

financial information of

a

ration. It is one of his jobs
analyze the financial data. A
evaluation

on

the

part

of

NEW

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

offer

to

buy

any

ISSUE

of these Shares.

January 26, 1953

corpo¬

a

400,121 Shares

to
re-

■

J

"

.

;

,

;

cor¬

poration

executive
of
material
already available is solely a waste
of time for all the people con¬

United Artists Theatre Circuit, Inc,

cerned.

Enumeration of Plants and
—
Once again, please
remember
that
ah analyst has
(3)

Properties

Common Stock
i.

■

(Par Value #1 per

Share)

available to him factual informa¬
tion

of

this type,

something

of

unless there is
particular impor¬

Price $17
per

tance to discuss in connection with

plant facilities—particularly new
plants—there is little to be gained
in using time to list the number
and location of plants and facili¬
the

analyst has

Co [ties

of the Prospectus
States where the

(4)
Industry
Statistics
and
Figures — Industry statistics are
now

also

available

for

the

in

may

part to financial analysts. To load
40 minute talk with a recapitu¬

notes

and

still

sueh data in

a

,

legally offer these Securities

listen

Company

to

Salomon Bros. 8C Hutzler

Carl M. Loeb,

Rhoades SL Co.

written copy of the

much more valuable.
At the same time,
be

may

compliance with the securities laws thereof.

lation of industry statistics which
the listener cannot possibly take

in

be obtained from the undersigned only in such

undersigned

Allen 8C

a

down

Share

most

talk, to be. distributed subset
quently, this method would, be

before the
Chicago Chapter of the Public Relations
Society of America, Chicago,
ill.,' Jan.
Mr.

to

curacy

sales

information

the talk.is, injjay opinion, a waste
* of time. If it is desired to include

who should present

by

attempt

•

by some means or other the
competition usually knows with a
relatively
high
degree
of
ac¬

advantage in presenting
concerning
current

greater

available to himself.

Group of Financial

that

in
discuss financial infor¬ various ways, such as:
Next to a description of new
mation. One of the first subjects
(a) By major divisions
products themselves, it is impor¬
of
importance is that of Sales.
(b) By types of operations
tant to get an idea of when they
Too many corporation executives
(c) By customer classifications
may be expected to become com¬
still say to me: "Why are you so
Obviously, such a breakdown mercially available.
insistent
on
sales
information? aids
him
in
his
analysis
and
This leads to the question of
far as the time factor is cencerned. Aren't earnings your
final and projections.
Research.
A
favorite
question
most important consideration?" I
Let me suggest a few subjects
The principal objection of cor¬
can
give many reasons, but re¬ porate managers to the disclosure among financial analysts is "How
which can be eliminated, or held
much is spent on Research?" or
member that in all cases profit
of
interim
sales
and
to
sales
to a bare minimum, as far as dis¬
"What proportion of sales is ex¬
margins are one of our most im¬ breakdowns is that such disclosure
cussion is concerned.
pended on Research?" Frankly, I,
portant facts used in a financial will benefit competition.
(1) Long Corporate History—
believe the analyst is wrong in
analysis of a company's opera¬
Speaking for the analysts, I
This may be of importance in a
using this approach. To me it is
tions. As a result of many com¬ think I can
say that this objection
sales meeting; a meeting to stimu¬
even more important to learn how
pletely legitimate accounting falls on deaf ears. Isn't this a sign
late public relations of the com¬
the Research organization is set
treatments, earnings figures alone of weakness on the part of those
munity in which the company op¬ can
actually mislead stockholders. managements who make such an up. What type of research is done?
erates. But in a meeting with se¬
Is it aimed at development of new
I
am
talking, of course, pri¬ objection? Particularly so, when,
curity analysts, it just uses up
Continued on page 58
in
so
many
cases,
we
find a
time which can be used to much marily of interim sales data. As

of

ties—information
The

Story Before

(6) Sales Talks
not

analyst.

stockholder relations.

and

must

corporation's

successful

ecutive

Say

stockholder

and

its management.

an

that he should be
corporate managers by
by one or two other
govern¬ "flanked"
ment
executive officers
agencies, happily for the
including at
most part at the present time, such all times—a financial executive;
information is
the Financial Vice-President, the
being given out
more and more
Treasurer or the Comptroller. This
willingly.
The security analyst has become is of particular importance from
the
standpoint of the informal
increasingly
important
as
the
central figure whose duty it is to "question" period, following the
obtain such corporate information more formal presentation.
and interpret it for the benefit of
the

in

references

better "feel" of the company

a

successful

engaged

far
well.
True, this is a little more delicate
before taxes and net income after
situation, but at least there can
taxes, with supplementary infor¬
be
no
harm
in
offering some
mation as to special charge-offs,
generalizations on the relative im¬
reserves, and special non-recur¬
portance of divisions to the earn¬
ring profits.
ings picture, and the possible spe¬
Interim Statements—Even those cial factors which
might affect the
that are now published require
earnings of any one division.
more interpretation and explana¬
Companies also seems averse to
tion by the management. Such ex¬
publishing interim balance sheets.
planation will go far toward pre¬
Why—it is difficult for us finan¬
venting misinterpretation on the cial
analysts to understand. An
part of stockholders. And interim
analyst worthy of the name un¬
statements
are
necessary.
Much derstands seasonal characteristics
can
happen within a year's time —he takes them into consideration
and the interim statements give a
when watchingfor example —
worthwhile clue as to the trend
the trend of cash position.
of
a
company's operations be¬
New Products
From an an¬
tween annual reports.
alyst's point of view this is an
Another important type of in¬
extremely important subject. Dis¬
formation is the so-called "sales
cussion of new products means
breakdown." The majority of in¬
much in determining the progress
dustrial companies whose stock is
being made by the company, par¬
held publicly are now engaged in
ticularly under competitive condi¬
the production of many different
tions.
The
analyst
is
always
products. These can be grouped
conscious of the "growth possi¬
and

this respect. Actually many of our
members
resent
including such

even

the top man

being "pried" out of the

The

Financial

of

formal- appeal to the SEC request¬
ing that Form 9-K be reinstated

Chicago, I strongly doubt that

would say,
can

figures.

quence the Federation has filed

it is necessary to educate them in

particularly
of
outsiders.
I
pick the executive who

—

sales

Federation

.

Obviously, there is considerable
prestige value in assigning the
job to the President, or chief ex¬
ecutive
officer.
However, it so
often happens that the successful
top corporation executive seems
to "wilt" before a large audience
—

National

Financial Analysts Societies, or of
the Investment Analysts Society

intelligent analysis, and discusses the nature and lim¬
its of a company's story that should be presented to financial
analysts. Combats claim an expanded corporate publicity
gives aid and comfort to competitors.
a

quarterly

am Analysts Societies first made ef¬
acquainted with the political forts to get such corporations to
philosophies of all of the members publish this data. Such efforts
of
the
National Federation of were unsuccessful. As a conse¬

tion and

make

ing

not

misinterpretation. Stresses value of work of the security analyst as aid to stockholders regarding factual informa¬

I

companies have dis¬

many

continued the practice of publish¬

fits of free enterprise. While I

I trust or

May

order

of

organiza¬
in an extremely
competitive industry willing not
only to give such information to a
stockholder or his representative
but also to publish the information
in its widely circulated
annual
report!
Let's face the facts. The experi¬
ence
of many
analysts indicate
tions

quarterly sales data is considered
extremely important to financial
analysts. Since rescinding of the

vantage of the "Traditional Amer¬
ican Way of Life" and the bene¬

been more apparent than at the present time," Mr. Maas
holds corporations, to secure stockholders' cooperation, should
be willing, to furnish sufficient information to eliminate dis-

zations.

interest¬

(5) Flag Waving — Too many
corporation executives feel that it
important to expound the ad¬

never

•

would

is

White, Weld & Co., Chicago, 111., Members, N. Y. S. E.

number

9-K

requirements for reporting
quarterly sales. The matter of

ing—presentation of such data.

By WILLIAM G. MAAS*

Stating "the importance of friendly stockholding

through its

analysts

careful—and

a

know, the SEC has rescinded

company, you

available

sources,

welcome

In Stockholder Relations

the

or

not

13

should there
interesting statistical data on

E. F. Hutton &

Company

Sutro Bros. 8C Co.

14

Chronicle.. Thursday, January 27, 1955

The Commercial and Financial

(474)

Room Reserva¬

Raymond V. Coppens, Blair & Co., Incorporated.
tions: John J. Donohue, Donohue &
The dinner will be

NSTA

Notes

preceded by

of-town guests to be held at 12:15

.

COMING

Sullivan.
a

Members' Luncheon for out-

EVENTS

in the Hawthorne Room at the

In

Investment

Field

Parker House.

Jan. 28, 1955
ALABAMA SECURITY DEALERS ASSOCIATION

BOSTON
The

Boston

following

Securities

Traders

Association

have

elected

the

ciation

Moynihan, J. B. Maguire & Co., Inc., President; Gil¬

Dinner

held in Birmingham on Jan. 21, at the Mountain Brook

was

Club.

banquet was

A

the

for

officers

sociation

meeting of the Alabama Security Dealers Asso¬

annual

Country

officers:

new

James £\

bert M.

The

SECURITIES TRADERS ASSOCIATION

coming

year

which time election

held at

of

Lothrop, W. E. Hutton .& Co., Vice-President; Edward F.

Mid

annual

the

at

As¬

Winter

-

Baltimore

Lord

Hotel.
Feb. 16, 1955

(Detroit, Mich.)

Club

Bond

The outgoing President,

held.

was

(Baltimore, Md.)

Baltimore Security Traders

of

annual

Detroit

dinner at the Detroit Boat Club.

Feb. 25, 1955

(Philadelphia, Pa.)

Investment
of

Association

Traders

Philadelphia

dinner
Benjamin Franklin Hotel.

at the

Mar, 11, 1955

annual

(New

York, N. Y.)

New York Security Dealers As-

sociation 29th Annual Dinner at

the Biltmore Hotel.
March

23-25,

1955

(Pittsburgh,

Pa.)
Association

of

Stock

Exchange

Firms meeting of Board of Gov¬
ernors.

April 24-27, 1955
John B. Cox, Jr..,.

James S. Crow

James

E.

Association

ers

Gilbert M. Lothrop

Moynihan

Lewis J.

Odess, rendered

tion for the past year.

a

(Houston, Tex.)

Texas Group Investment Bank¬

'

Associa¬

report of the activities of the

National

Mr. John Bunn, President of the

spring meeting

at the Shamrock Hotel.

May 8-10, 1955 (New York City)
*

Security

Traders

Association,

Security Dealers Association,
evening.

Mr.

cial

made the principal address of the

is of the firm

Bunn

National

Alabama

affiliate of the

national

Hotel

Stifel, Nicolaus & Co. of St.

May

Federation

Analysts

Finan¬

ol

Societies

the

at

Commodore.

18-21,

1955

(White

Sulphur

Springs)

Louis.

Investment Bankers Association
The

Spring

follows:

officers for the coming year are as

new

meeting

off Board

of

(Mackinac

Is¬

Governors.
President: James S. Crow,

First National Bank of Birmingham.
Sept.

First Vice-President: John B. Cox, Jr.,

ciation annual convention.

Second Vice-President: E.

Edward

Hines

S. Hydinger, Carlson &

Co. (Birm¬

Sept.

Carl

V.

Wells

Frederick

V.

Fall

McVey

Whiteside,

West

Winslow,

&

Treasurer;

Carl

and

Frederick

V.

cording Secretary.
of Governors

are:

D. McDowell, Chas. A. Day & Co., Inc.; Leo F. Newman, American
Securities Corp.; Joseph F.

Robbins, F. S. Moseley & Co.; and John

annual

&

following

Rucker Agee

Committee:

Executive

the

to

winter

Securities
dinner

capacity is 300

Members

of

at

Traders
the

Parker

House

on

will

hold

Friday,

its

11J

How¬

reservations should be made immediately.

Dinner

Committee

f-

are

Edward

F.

Nov.

Marx, Jr. (Hugo Marx & Com¬

Birmingham); William Countt

27-Dec.

2,

1955

(Hollywood,

Florida)
Investment Bankers Association

(Thornton, Mohr & Farish,

annual

Convention

at

Holly¬

wood Beach Hotel.

Hayworth (Merrill Lynch, Pierce, Fenner & Beane, Birmingham);

J. Knox Fiscal

Clyde Ulmer (Courts & Co., Birmingham).
SECURITY TRADERS ASSOCIATION

OF NEW YORK, INC.

Security

Traders

Association

of

New

York,

Inc.

(STANY)

John

of Jan. 20, 1955, Final 1st Half:

Schirmer, Atherton & Co.; T. Edmund Williams,
Team

'

Points

"

Hooper-Kimball & Co.; Louis V. Zucchelli, J. B. Maguire & Co.,

Inc.; Wallace D. Dexter, Jr., Stone & Webster Securities Corp.;
Reservations:

T.

Agent

Donadio

(Capt.) Hunter, Fredericks, Demaye, Saijas, Kelly

Leone (Capt.),
Kaiser

Nieman, O'Mara, Forbes, Greenberg, Murphy

Deputy

12

Fiscal

Federal

Federal

land

intermediate

operatives, will become their Fis¬
cal
Agent, Feb. 1, according to

50

Robert B. Tootell, Governor of the
Farm Credit Administration. Mr.

Knox

49

_____

_

12

the

credit banks, and 13 banks for co¬

54

(Capt.), Hunt, Werkmeister, Kullman, McGovan,

O'Connor

Knox,

for

banks,

as

Agent

For Fed. Land Banks

Powers,

Bowling League standing

Ticket

Exchange

ernors.

(Odess, Martin & Herzberg, Birmingham); Frank B. Frazer (Shrop¬

•

Philip D. Winn, Salomon Bros. & Hutkler.

Stock

of

Firms meeting of Board of Gov¬

(Sterne, Agee & Leach, Birmingham); Elbert Martin

Kodgdon & Co., Chairman; Arthur C. Murphy, A. C. Allyn & Co.,
Frank S. Breen,

Exchange

31st

Feb.

cocktails, dinner and entertainment.

so

the

Association

Stock

(New York, N. Y.)

Association

Montgomery); Leo Turner (Jamison & Cor, Birmingham); Howard
Boston

(Denver, Colo.)

of

ernors.

elected

were

1955

Association

Firms meeting of Board of Gov¬

SECURITIES TRADERS ASSOCIATION

Tariff of $14 includes
ever,

Fenner

(Birmingham, Ala.).

The

pany,

The

Lynch, Pierce,

Merrill

shire & Company, Mobile); Hugo

Shea, Jr., Shea & Co.

BOSTON

Royce,

Nov. 16-18

Francis R. Cogghill,

White, Weld & Co.; John A. McCue, May & Gannon, Inc.; Lewis

Milton

meeting of Board of Gov¬

Sept. 21-23,

.

•

Treasurer:
Beane

Members of the Board

L.

(Montgomery, Ala.).

McVey, Childs, Jeffries & Thorndike, Inc., Re¬

(Chicago, 111.)

ernors.

V.

Wells, Paine, Webber, Jackson & Curtis, Corresponding Secretary;

16-17

Investment Bankers Association

ingham, Ala.).
Secretary: George M. Wood, Jr., George M. Wood & Company

Chace,

1955

National Security Traders Asso¬

tional Bank.

Hines,

11-14,

land, Mich.)

Birmingham Trust Na¬

succeeds

Macdonald

G.

Newcomb who is retiring on Jan.
This advertisement appears as a matter

offer

to

sell

of record only and is neither
any of these securi¬
offering is made only by the Offering Circular.

nor a

ties. The

Barker
an

solicitation of offers to buy

NEW ISSUE

(Capt.) Brown, Corby Weseman, Whiting,

January 26, 1955

31.

47 V2

Fitzpatrick
Manson

Mr.

Knox

Agent's

46

(Capt.), Meyer, Bies, Pollack, Leinhardt, Weiler

Bean

(Capt.), Jacobs, Siegel, Topol, Frankel Tisch

46

1935

joined

office

as

since

and

the

had

has

1949

Deputy Fiscal Agent.
he

worked

Fiscal

assistant

an

in

been

Previously,

for

the

Federal

Universal

Major Corporation

42V2

Growney (Capt.), Alexander, Eiger, Valentine, Burian, Craig

150,000 Shares

Mewin, G. (Capt.), Define, Gavin, Montanye, Bradley, Huff-

42

Serlen

411/2

security firm, and has a wide ac¬
quaintance with dealers and bank¬

37

has

(Capt.), Rogers, Krumholz, Wechsler, Gersten, Gold-

Reserve Bank of New York, com¬
mercial banks, and an investment

Meyer (Capt.), Murphy, Frankel, Swenson, Dawson, Smith,

Common Stock

Kuehner

Krisam

$1

per

Share

Klein

(Capt.), Clemence, Gronick, Stevenson, Weissman,

(Capt.), Rappa, Farrell, Vocolli, Strauss, Cohen

these Securities in

compliance with the securities laivs thereof.

Art

resided

fiscal

27i/2

200

Copies of the Offering Circular may be obtained from the under¬
signed only in such States ivhere the undersigned may legally offer

throughout

Closter,

McCoud

Price

ers

Point

Club

Burian

Nat Krumholz

>

130

27

Mr.

George Leone

Trinity Place, New York 6, N. Y.




WHitehall 3-2900

recently

Street,

System
of

Bank

New

(Special

to

The

Financial

With Harris Upham

Chronicle)

(Special

to

The

Financial

UKIAH,
Calif. — Joseph
W.
Hampton is now associated with

Frankenheimer

Hannaford

with

Main

&

Street.

Talbot,

105

North

North

is

now

Upham

Chronicle)

of

Sutter Street.

Co.,

York

Hilton.
Bank

connected

&

been
to

York

joined the Farm

when

he

25

and

as

western

had

he

the

State

He served the

Land
in

Mass.,

where
of

became

the, Federal

Springfield,

President

STOCKTON, Calif.—Bernard J.

Harris,

at

the

Street

1929, coming there from

'

74

office of

Nassau

Newcomb

Treasurer

201

With Hannaford & Talbot

He

years

City.

5 Point Club

New

GEARIIART & OTIS, Inc.

has

William

country.

many

The

31

from

Credit
225

J.

N.

agency

moved

the

for

been

Bank

of

Springfield

Executive Vice-President

President

before

the fiscal agency.

coming

to

Number 5398

Volume 181

The Commercial and

...

(475)

Financial Chronicle
What About Interest Rates?

statutes.

a

Does the Prudential deal indicate

tight money market. But today it
is reverse: The Prudential warehouse deal is arranged for sake of

it might expect FHA and VA interest
rates
to
decline, and it
wants to line up as many mort-

given yet, it can,be safely stated
that he contemplates some unusual urban renewal steps that
could be undertaken in New York
and other large cities and may
soon make public some of his recommendations in this field that
could have a tremendous influ-

manent
would

What's Ahead in 1955
Foi Real Estate?

in

come

a

hold $350 million

future purchase

possible before

a

decline?

change in these rates, but rather

harder to ge by the end of the
Re- year." That, of course,, states it
porterly, it pledges mortgages as in another way. If mortgages are
a collateral, and Prudential draws
harder to get—(for the lender to
their regular interest rate of 4V2% Set!)—that points to smaller dis-

with a view
Finds this
market. Lists as other aids, con¬
centers and urban redevelopment.

of FHA and VA mortgages
by that insurance company.

the

Prudential

more

bor-

while in the
presumably, on

servicing

minus

But

warehouse.

While details cannot be

expected Prudential might be fig- ence in halting urban decay and
uring that "mortgages will be conserving and restoring city real

the more it can earn.

rows,

credit and comments on the "warehousing' deal of Pru¬
dential Insurance Company with New York commercial banks
to

gages as

inflow allowed.

where

gage

to

mort-

Also, ironically, this would seem
to
be
the kind of arrangement

construction,

increases

in

paper

certainly than if it In reply to this question, Dr. Maronly bought them as fast as in- cus Nadler said he foresaw no

rising real estate market and an increase of 5%
Mr. Thompson looks for constant cost
in labor and materials. Finds grounds for easy mort¬

Foreseeing

their

more

gages

THOMPSON*
"Architectural Forum," New York City

Editor,

mortgages

in

investors

accept

the "lender" to corral more

By STEPHEN G.
News

15

estate values,

Accordingly, considering a 11
factors, we can expect a bigger
construction volume; easy financinS> and continued government

counts, or bigger premiums, in manipulations to sustain or stimu—
lieu of any change in interest rate. late employment if an economic

Any lender who has been able to downturn is indicated. It is hard
Pile UP any in a warehouse at the to imagine how anyone can anticiprime loan rate to commercial- prices or yield when they were pate the 1955 real estate market.
To give my summary first and
Highways are being recom- bank warehouse institutions—and easier to get will be that much moving in any direction except
supporting data or background mended to the tune of $101 bil- reportedly may clear as much as ahead of the game.
upward _ (barring such major
following,
the
outlook
can
be lion, over an extended period.^
i% on the spread between long- - At the risk of repetition—from c. ,nges in tne entire economic
summed up in four words: More of
Locally, New York City is trying term mortgage and short-term the real estate borrower or con- Plc^ure as war, or serious collapse
plan aiding the real estate
struction of new shopping

Or

Same.

the

to be extrava-

ris-

market,

ing
The

speaker's
field is pri-

marily

con-

struction

re-

porting but in
G.

real

Thompson

market wil

.

,

also

mirror

estate

most

that

conditions

Jan. 17

On reflection, this arrangement stable or rising real estate market.
of rec- would have an influence on far
Motors' more than the FHA and VA mortConstructing New Shopping
^

gage
ffa«rp

here is

j£ prudential is enabled to leave

up to

gages

token it has that much more of its
Qwn

funds available

to serve

the

or

_

^.faKurinsS and ir? turn fields> 11

_niir__

course

many

<£'rvipp

serv.ee

inh=

or

as

fobs as

er

well, afteir the factory^workers
ceive
their watoes, etc. T is

.

„

Another current sign of expan-

single

a

authoritative

unauthoritative)
dieting or forecasting

even

construction

The

source

a

volume

accepted

construction

pre-

decline
this

forecasts

volume

(or

all

will

in

year,

™ean? the

$237 million shopping center program across the nation.
.

On a longer range look ahead,

"Architectural Forum" also is

CQming

to

Prudential

has

Prudential

extent

or

a

ment

a major market in the
years in urban redevelop-

L

the revitalization

has

of

1°"'

,

f

cionifinnt

total

real estate.

dollar

Continued

building
enced

as

continued

costs.

edging

of

up

materials
much

These

prices, influanything else
increase
in labor
as

labor

costs

often

go

right back to scratch. In lumber,
for instance, there was the 7Vi
cents

an

hour

ommended

increase

for

woods

Northwest.

just

rec-

workers

That will

go

in

into

higher lumber prices, along with
any
other
increased
expenses

achieved overnight.

housing"

deal

for

Irving Trust

closer study points to much more
important considerations,
days of all the "built-in" stabilBack in December, Prudential
izers to prevent a depression. Offissued a report of its economic
hand, appraisers might adopt this researcii staff predicting total nasame terminology to describe contional spending in 1955 would not
stant cost increases for labor and
only be above 1954, but probably
materials as the "built-in stabilbe the biggest year in history. A
izers"
for
today's
venturesome "warehouse" deal would seem to
appraisers. They mean constantly be deliberate, calculated move to
increasing reproduction costs, fre- capitalize on an expected boom,
quently running ahead of depre- and get the biggest share of it
ciation,
so
any
over-appraisal possible for Prudential,
eventually gets cut down to size
In essence, smart, conservative
by
this
slow,
consistent
infla- Prudential
through its "waretionary action.)
house" mortgage deal, is estabSince
the year-end
deluge of lishing a line of credit, or for
business forecasts there have also practical
purposes
"borrowing"
come
a whole new crop of other
money!
"indicators" of expanded business
But wby would mighty Prudento
support
expectation of con- tial, of all institutions, become a
tinued rise in construction and the
borrower? One publication naively
real estate market.
said the arrangement meant the
The
President's
several
mesPrudential was "running out of
sages to Congress have indicated funds."
But this would only be
even
larger public works pro- true if one added the explanation
grams than anticipated last fall— that it was only running out of
in almost all fields except public funds
to expand its investment
housing.
beyond its ordinary rate of inSchools, particularly, have re- come inflow, and it was borrowing
ceived the Presidential blessing, to make bigger and faster investwith
special
message
on
this ments—particularly in real estate.
problem to go to Congress Feb. 15.
Ironically, similar big warehousing
talk by Mr. Thompson

1953

N^w York"Oi'ap.er^Am^rican^SocieTy'of

°yer

Appraisers, New York City, Jan. is, 1955.

surance

a




cently

t

nia^

CM1CAUU, 111.—Harry J. Diacou
has become associated208 South La
with Shearson, Hammill & Co.,
street.

gaue

Diacou

Mr.

"&

"

,
*

n_

was

Linn
•

.

* i

,

o.

„

,

re'/:'

Magnus Adcfs to Staff
(Special to The Financial Chronicle)
CINCINNATI, Ohio — Julian A.

Magnus, Jr. is now with Magnus
and

Company,

Dixie

Terminal

The problem

con-

But

?Snd?Ss

mortgage

were

arranged

operations
to

help

announced for New York

inevi- Global Strategy for Trade and
direct support table. In other cities it is gettingv Tea —Chester Bowles and Ar«thony Hyde—Tea Council of tb~
for real estate by Prudential
off to faster starts, perhaps, but
U. S. A., 500 Fifth Avenue, New
and indirect support to the extent it will come for New York too.
York, N. Y. (paper).

for its FHA-VA warehousing pro- this redevelopment seems
gram amounts to

other lenders have a smaller sup-

Last week at the Building Trade

ply of mortgages to satisfy their
mortgage investment demands.
Not only does the Prudential
action broadcast to the whole
world its confidence in FHA-VA
real estate in particular, and other
real estate in general—but also a
confidence in the entire economy,
How incredible it would be to
contemplate Prudential borrowing

Employers Association dinner, the
speaker was privileged to talk
with Joseph McMurray, the new
New York State Housing Commissioner, who formerly was executive officer for the Senate Banking and Currency Committee, and

ar*d other commercial banks to
hold up to about $350 million of
FHA and VA mortgages for it into
the middle of 1956. This sum is
the equivalent of almost $Lmillion a day> including Sundays, or
practically $1.4
million every
Monday to Friday business day. money to buy mortgages if it was
Prudential described it simply as anticipating a downturn!
a plan to help "stabilize" its mortgage purchasing program — but

along the line. (By way of commentary: we frequently hear these

♦Summary of

har™

" is elementary that the avail- is one sign of what is to come.
ability fif mortgage financing supPolittcal jockeying may delay,
vorts the price of real estate.
this, so it takes ten years rather
Thus any Prudential borrowing than five—but over the long pull

.

tions:

tii

tion» or for refinancing existing bridges, tunnels and highways re¬

-

mention a few- weeks ago. Until
now this speaker has not seen its
volume would go up about 5%- full
importance for real estate
to $38.75 billion
This proved a market presented.
little
conservative
When
ComIf ever a flag was put up to
merce-Labor Departments issued signal the confidence of one of
their estimates in November thev
the country's biggest bellwether
projected a $39.5 billion year for investors in the future of real
1955.
estate, this speaker thinks it was
Along with the increased vol- the announcement by the Pruume
ne
will come two other condidential Insurance of its
'waresaid

our

1"

(Speciai to the financial chronicle)
rmrarn

This will not be Building,

hive"

SepTImber"'by""Architectura"
which

an-

c?nventional ticipating

non-residential mortgage-seek- coming

greater chance of getting a loan— central cities.

.

Forum,"

■ '

Joins Shearson, Hammill'

which is <are fubject to less demand for
^alsb
a
ments for sustaining
their funds, and therefore more asset in their existing utilities and
™arket
"nnt
imw
con
likely to grant an aPPlicatl0n for community facilities, etc. The bigproperty, not simply new con a lQan; Qn otber new COnstruc- $600 million program for new

say

rise

across tne ooara, ot course;,

?350 storage, °£ thLse m0rt" ^ l?A real eState activ!ty:,A}" formerly" withCo
milIion by the same lied Stores announcement of its pnfi Fnrnll
Rodman
in

?n ^ ! conventionalto mortgage investment
market—
divert
other

all the way back to the mil

of

Centers

market.
mari^t
.

tne
creative type. Every mile of highway calls for cement, steel, turnber making
mine.

sumer's end this translates into—
"mortgages" will be easier to get—
and that much more support for a

begin with, it

recall

the

rates.

thec.°"s^ucti.°.IJ .(na^e+t- can have for solid SUmPo°sDer'it)vU m0rtgages, that extra volume of has many elements: traffic
a ntF
f^ °l d prospen y, taken in other mortgage lenders gestion obsolete buildings
is difficult to

To

by

money

Other Implications for Real Estate

tyn^but
service type, dui

{|>at is not otf
most ot
tion

the

general
S.

them, Prudential pays closer to

mount a $600 million bridge- commercial
tunnel-highway program to start

use

continued

pledged to pick up every one

of

to

within a year or two.
six words,
The evening papers on
More
and also carry rosy prediction
More of the ord
year
by General
Same.
More
President Harlow Curtice.
meaning a
An important element
and

gant,

its

This

announcement is

tide

companies and other per-

rpntpr

Acc0riatlon

f

—

Report

—

Research Center, As¬

sociation of American Railroad.^
c/o

Illinois

Institute

of

Tech¬

nology, Chicago, 111 (paper).

—

much as anyone what can be done
under the new urban renewal

neither

an

Schuster, Inc., New York
per), $1.00.

offer to 5cII nor a solicitation of an offer to buy
offering is made only by the Prospectus.

any

of these securities.

NEW ISSUE

1,400,000 Shares

Life Insurance Investors, Inc.
Common Shares
($1 Par Value)

Price $16.25 per

Share

(or less in single transactions involving 3,000 shares
or more, as is more fully set forth in the Prospectus)

Copies of the Prospectus may be obtained in any State in which this announcement
is circulated from only such of the underunters, including the undersigned, as may
legally offer these securities in compliance with the securities laws of such State.

White, Weld & Co.
January 27, 1955

t

Ke^™h L Railroads ca Annual
American
nter
°

in that position practically wrote We Accuse! — The Case of J. Robthe last several Federal housing
ert Oppenheimer — Joseph and
Stewart
AIsop
Simon, and
laws. Mr. McMurray knows as

The

in

builder-borrowers until in-

Rp__rph

J. C. Bradford & Co.

(pa¬

The Commercial and Financial Chronicle...

(476)

16-

"monopolies" which
early in the week
enough to keep the utili¬

Thursday, January 27, 1955

pany

raised

was

THE MARKET... AND YOU
By WALLACE

was

ties uncertain.
wealth Edison

STREETE

softer

than

its

News About Banks

Common¬

CONSOLIDATIONS

somewhat

was

associates

NEW

BRANCHES

NEW

in

OFFICERS, ETC.

The stock market continued

in

reactionary

a

this

week,

the

again

rut

situation

at

Formosa

contributing mostly
caution coupled with a bit of
strength in the aircrafts de¬
spite official declarations that
will

there

defense

be

least

at

going was rough.

of

apparently,

pointments,

%

%

*

the merger

entirely the Asian

for

down

moving

the

on

side.
*

Raymond H. Reiss, President of
Manufacturing Corporation,

Reiss

has been elected

member of the

a

his

father, Jacob L. Reiss, a Direc¬
of Irving and its predecessor

1955.
Raymond Reiss is also

of

Emigrant

Trustee

a

Industrial

Savings

Bank.
*

*

Aircraft

sidiary of J. P. Morgan & Co. In¬

the

better shows

had

on

of

one

although it

highly erratic mo¬
when
profit-taking
in. General Dynamics,
successful completion
early tests of the new

some

ments

moved
the

on

put

of the
atomic

also

-

powered

had

of

Mid-Continent
and

common

of

ferreds
p o r a

billion dol¬

a

the

But

two

the

t i o n

assets into

high territory with
for the day of nearly
conversion of eight points, an excessive
stock
into swing for a stock
selling in

nearly half

lars.

with

colossus

new

new

pre-

merger

than

future

hopes to bolster it.
t-

-fi

a

new

range

the 40's.

cor-

met

was

with

submarine, enough

more

*

^

*

*

Babies"

Cement

issues

were

much

chagrin to lop sev¬
buoyant than the gen¬
points off the stock. In eral list, but without any
anticipation of the merger great fanfare and without too

eral

much

disposition to challenge

strong ones adding

Ship Building and

Bath

Iron Works

to such

in

addition

plane makers

ing, United and Lockheed.
However, despite many at¬
tempts
war

make

to

market"

the

it

strength in the

babies that had

wise

"war

a

no

territory

base

for

other¬

Rails

best.

While

uation

the

at

Chinese sit¬

topic piece and
was
being watched carefully,
it set off no
great portfolio
switching that would change
was

a

the nature of

the

:'t

market.

#

#

Automotive shares
from
from

occasional

were

distinguished.

in

tion

there

a

prices
move

in

independent
little

was

the group.

duction schedules
to

in

their

of back¬

Rail

on

failed

a

dividend

to

spark

in¬

any¬

New York

thing elsewhere.

Jan.

Mr.

Dean

35

of

a

has

the

managing
Concurrently, Julian

Paris

Jay

director and

the

re¬

Chairman

as

Mr.

company.
as

succeeds

who

with

years

banking

Mor¬

21.

Carter

Jay,

linquished his duties
after

Direc¬

of

Cie. Inc., Paris,

on

a

President.

partner

Mr.

in

will

World

War

in

the

1920

After

Vice-President of

a

army
service in
I, he became a part¬
Morgan bank in Paris

and

High
were

ac¬

pro¬

offset

became

serving

Cie.

has been a director of
Morgan & Co. since 1945.

P.

Mr. Allen has been active in Paris

banking since shortly after World
War I and has been with the Mor¬

establishment there
He has been

banking

gan

for nearly

25 years.

Executive Vice-President of Mor¬

& Cie. since January, 1952. He

served in both World

Colonel

a

in

in U. S.

Europe and the Pacific during

World War 11.
*

*

change Bank
elected

J.

of

on

selling than most of the
issues

other

Pacific

Missouri

and

*

*

which

had

shown

Monopoly Attack Slows

Utilities

^

The threat of

split investigation

Congressional
of power com-

"FOR SALE"

of

the

electronics

companies fared well on occa¬
sion, none more than Consoli¬

Technical

including the

Technically there
in

the

market's action to

dicate

real

any

Volume
three

million

on

This

issue

year as

this

the

to

share level for
week but

a

day of mixed
Rallies have taken

the Stock

Exchange. prices.
sold
last
place on declining volume
$5 reached $44 but, on the other hand, sell¬

which

low

week

in¬

conviction.
back

moved

the best percentage the first time in
improvement of any common it was on a
stock

little

was

as

before

turning

re¬

ing has been
scale

*

*

as

far

on a

descending

volume is

as

cerned too.

con¬

*

vors

more

Board

on

its

second

opinion

fa¬

still

correction

before

dustrials and rails last

day of trading was—at least barring

1908-1928 inclusive.

This beautiful set available

immediately at

technically—the week's first
a

downtown New York City bank.

issue to reach
had

Edwin L. Beck

bowed

in

a

new

on

a

low.

It

range

of

«

c/o Chronicle 25 Park PL N.Y. 7

merely

a

fraction

achievement
nificance.

was
1

so

without

the

sig¬

in

any

the

that

sudden

Formosan

would call for

article

time

views
do

Chronicle:
those

not

coincide

are

New

ment of the company.

Mr. Gomory

has

with

been

associated

facturers

Trust

he

1922;

Vice-President
been

in

Chairman

As

since
Assistant

an

1928,

Vice-President

a

Manu¬

Company

became

1935.

American

the

of

has

and

since

Committee for Short-Term Credi¬
tors

of

Germany,

American
tional

banks

he represented
at

Conference

the

Interna¬

German

on

1952.

the

American

the

International

a

Trustee

Chamber
of

the

Far

of
of

of

a

drastic

emphasis.
in

those

of

this
any

the

presented

of the author only.]

as

He also

Commerce,

Board

member

Directors

of

East-America

of

Council

the
of

Commerce & Industry, Director of
the Netherlands Chamber of Com¬

etc.

merce,

*

week,

necessarily at

They

of

Flanigan, Presi¬
dent, announced on Jan. 25. Mr.
Gomory has been Vice-President
in charge of the Foreign Depart¬

change

expressed
with

Manufac¬

York, Horace C.

OF

',

*

*

STATE

COMPANY

situation

shift in investment
[The

of

Company

is

*

into promi¬ any worth while advance
nence
per session, although takes
place, or at least a test¬
the newly listed Federal
ing of the lows posted by in¬

Paper

Quotation Monthly Record

*

Board

Trust

Council

Majority

*

Debts in London in

,

❖

turers

COMMERCIAL




W.

member of the General Ad¬

a

ministrative

Aspects

other of the group

COMMERCIAL & FINANCIAL CHRONICLE

Phone REctor 2-9570

Townsend,

J. Kenneth

Paper shares continued to
enjoy a good enough follow¬
ing to project one or the

84 bound volumes of the

years

York, have
Herbert

and

*

and

Some

*

covering the

New

Kenneth

Vice-President

recently.

well in what

ance

actionary.

&

*

Directors of Chemical Corn Ex¬

run

year was

Bank

Wars, being

air intelligence

The

had

issues

investors wary.

hiked dividend and stock

President, he be¬

as

1948, and
J.

Harjes &
of Morgan

Cie., predecessor firm
& Cie., in 1924.
He served in the
U. S. Army in both World Wars,
being
a
Colonel
and
Assistant

they maintained their bal¬

by reports that good progress at the turn of
dated Electronics, the former
being shaded to the year had settled down
Reynolds Spring. The 455%
new
cars, keeping into
something of a rut.
appreciation in this issue last

the week that gave the market its best lift, U. S. Steel's

played a
Paris banking.

play in the glass issues
its course, at least
on
the list of new highs and temporarily, so that a few is¬
sues
in this section, notably
did a fair job of resisting the
Owens
Illinois Glass, were
downpull when selling pre¬
somewhat prominent on the
dominated.
*
*
heavy side but, again, the
*
implications were minor in
Chemicals presented a
view
of
the all-time highs
ragged pattern with little reached
by some of these
definite to it. On the whole

were

For the individual action of

since

has

Vice-Chairman of Morgan &
in
1945
and
Chairman
in

came

gan

has

Allen

Carter

Morgan

banking
Milwaukee,

After

1915.

mem¬

a

committee.

been elected to succeed Mr. Carter
as

was

his

in

1906

Townsend Herbert W. Nannen
appeared to
Central
continued
to
back be a
consolidation phase
Among the special issues, Nannen, Treasurer, it was an¬
Crane Co. stood out on high nounced on Jan. 21 by N. Baxter
away from its recent high and without
any distribution too
trading in it dried up to apparent. The bulk of the oil activity and good gains, Jackson, Chairman. Mr. Townwhere
it
disappeared from shares acted similarly, al- reaching its best price since send, who has been personel di¬
rector, will continue in that ca¬
the list of most active issues.
through this group ignored 1946. The impetus here was pacity. He served as President of
Pennsylvania Rail did a little the benefits of lots of market a financial service recommen¬ the New York Chapter, American
Institute of Banking, during 1953better pricewise and held
comment forecasting a good dation
pointing out the po¬ 54. Mr. Nannen was advanced
among the busier issues on year for the
tentials of its new titanium from
petroleum com¬
Assistant Vice-President.
recurrent rumors of a proxy
operation underway for bet¬
panies.
*
t*
ter than half a year.
fight brewing. Denver & Rio
Andrew
L.
Gomory has been
Grande was more prominent
elected
a
Senior
Vice-President
*
*
❖
Some Strength in Electronics

degree
the

Nelson

as

wholly-owned sub¬

a

began

in

*

weakness

the stocks of the

makers,

far

Aside

back

ing and filling for the most
mild strength in South¬

investor

erratic

was

were

and

crease

preference

the high expec¬

familiar old pattern

ern

solid

on

tations.

Boe¬

as

corporated.

ber

more

the stock had been one of the

Erratic

& Cie. is

continue

*

nearly their old highs at the mo¬
15% in price over the final ment. Alpha Portland, how¬
Defense issues that man¬
posting last year. Sunray also ever, with the help of a stock
aged to snare some popularity
to
included a few of the textiles, dipped sympathetically after split proposal, was able
it, too, had reached new high make a couple of appearances
American
"War

announced

was

gan

Board

&

director of J. P.

a

prominent role in

las

Chairman of the

and

Jay

where he

to

in

*

tors of Morgan

better

Mr.
career

ner

Election of Bernard S. Carter

session

1946

the First National Bank from 1911

Jan. 11,

good outburst of strength. On
one

Morgan & Cie.

Morgan & Co. since 1945.

couple of the Sunray Oil, which is one of
this week it
acting aircrafts. A new the larger unions in the pe¬ backed up rather abruptly at
split proposal, plus good divi¬ troleum industry in years. first but then put on a good
dend treatment, helped
Doug¬ The combination would make head of steam later to erupt
a

Intelligence of the Third
World War II. He has

in

President of

since

on

a

Army
been

Company of New York to succeed

was

proposal between reactionary lately after

Chief of

Board of Directors of Irving Trust

banks for 40 years until his death

*

More erratic than most

was Mengel Co., which has been

Mid-Continent Petroleum and

CAPITALIZATIONS

tor

*

Disappointment
the larger disap¬

Merger
One

of their

most

*

*

#

for

the moment.

situation

the

changes in

no

business

It wasn't

sympathy with a poor mar¬
proposal was the highlight. ket reception for a rather
Before this action the group
large bond issue. Panhandle
had been inclined to lag when Eastern
Pipe and People's
other sections were buoyant
Gas, the wide moving mem¬
and to sag rather badly when
bers of the utility group, did

Bankers

and

REVISED

BANK

NEW

AND

TRUST

YORK

Dec. 31/54

Total

$78,984,062

due

65,946,732

16,435,225

and

$73,558,039

71,431.204

resources

Deposits
Cash

June 30/54

14,345,626

from

banks

U. S. Govt, security

19,295.876

holdings
Loans

&

Surplus
vided

discounts

and

16,326,594

41,673,039

41,321,908

undi¬

profits

—

1,228,590

Continued

on

1.240,964

page

70

Volume 181

Number 5398... The Commercial and Financial Chronicle.

(477)

II

THE *NAUTILUS
Atomic Sub and Builders
Greatest Lubrication

Rely

on

World's

Knowledge
A snorkel intake tube
to

With the

sailing of the "Nautilus"

—world's first

atomic-powered sub¬

marine—the U. S.

Navy crossed the

threshold of the atomic age.

this most

play

a

dual role in

significant event.

are

now

protecting vital

machinery aboard the "Nautilus."




Second,

Electric

Boat

of the "Nautilus"—relies
our

lubricants

and

Lubrication

Correct

First, famous Socony-Vacuum lu¬
bricants

Dynamics Corp.—builder
a

to

*

Socony-Vacuum is proud that it
has been able to

General

Division,

100%

on

program

being machined

precise tolerances

on one

of the

large lathes in the Groton plant.

of

protect

very

its

plant equipment... has done so for
the past

34 years!

We wish the "Nautilus" and her
crew

all

tinued

success

.

.

.

cooperation,

pledge

in

our con¬

every

way

possible, to the Navy and its sup¬
pliers, toward the end of keeping
America and her allies

strong.
Hydraulic bender shape's section of 8-in.
steel pipe in two
tion

formerly took

minutes. This
a

opera¬

full day.

SOCONY-VACUUM OIL COMPANY, INC
The Makers of Mobilgas

and Mobiloil

IT

The Commercial and Financial Chronicle..,
18

(478)

Main

Objectives of the
Trade Agreements Program

of continuity

ance

By C'amOE M. HUMPHREY*

and

in

have, however, is assur¬
in our policies

to

want

Administration's Trade

This

strongly for a three-

argues

Trade

extension
of
the
Agreements Program.
A
year

three-

,

for foreign

two

years

I

officials
with

two

have

impressed

abroad.

drastic changes which would
adversely affect sizable groups of

ommend

our

major principles in our
economic

lations. First,

value
is

ing

own

our

economy

and

strong

strength

and

Maintaining

the

tance of keep¬

ma¬

terials.

re¬

impor¬

imports of raw

of the

the

—for

the

the

United

rencies

of the free world.

must

are
to¬

ward

econom¬

ic strength and

growth—to¬
ward greater
freedom from
George M. Huihphrey

governmental
interference

and

control.

Our

policies aim at

encouraging initiative and free¬
dom
and
maintaining economic
progress and a

high level of

eco¬

nomic activity at

prices.

Such

lernational

tions.

in

trade

our

both

direc¬

A

makes

a

relatively stable
condition helps irr^

strong internal economy
helps to keep us competitive and

eign

goods attractive to for¬

buyers.

It

also

promotes

high

level

"With

high levels of business

demand

for

ac-

fore

the

mittee
gram,

House

on

the

by Sec'y Humphrey be¬
Ways
Trade

and

Means

Agreements

Washington, D. C., Jan. 18,

financial

sound

a

essential

is

for

of

the

world.

Many

countries, I

glad to say, are appreciating
the importance of keeping their
financial houses in order not only
am

strengthen their internal econo¬
mies but also to keep their foreign

to

payments and receipts in balance.
I am encouraged by the progress

of these nations have made
toward more internal stability and

many

toward

convertiblity of their

cur¬

1955.

one

connec¬

From

bill.

the

the

the Presi¬
should help
to
reduce
government expendi¬
tures for foreign aid over a period
of time. I believe it is best, where
viewpoint,

budgetary

trade

dent's

possible,

program

The second point

which has im¬

is

the

our

of

concern

with

the

foreign

broad

commercial

coun¬

direction

policy.

of

Foreign

countries do not expect us to lower
our

tariffs drastically:

What they

Group
Sells Duquesne Light

$2.10 Preferred Stock

More particularly, we rec¬

corporate business
foreign subsidiaries
branches be taxed at a rate 14
that

nvw.

for foreign countries to
way,
rather than re¬

country where earned.

^h$
.

these tax

with your

The

The

and

'

preferred stock is

new

re-

These proposals are or prjor to Dec. 31, 1959 to $51.84
costly but we think per share of redeemed after Dec.
they will encourage sound private 3^ iggg.

not

large

or

U. S. investment abroad.

The net proceeds from the sale

The International Finance

bill

is

a

Another

Department is ac¬

The Treasury

tively working on

aspects

other

of the President's program to pro¬
mote
ment.

trade and invest¬
proposals will be

foreign
These

submitted to- the Congress

shortly.

One

proposed bill will continue
the program of customs simplifi¬
cation and management improve¬
ment
initiated
by the Customs
Simplification Acts of, 1953 and
1954. Although the existing legis¬
lation

in

this

field

has

brought

should be made.
The
sions

complex
of

the

valuation

customs

laws

provi¬
are

in

particular need of improvement
and simplification. As a result of
studies now being completed leg¬
islative
changes will be recom¬
mended to make the process of

of the

program

jn

on

which the Treasury is working

is

construction

proposal for an International $35,000,000 in 1955, $25,000,000 in
Corporation, to be estab- 1955 and $20,000,000 in 1957.
as an affiliate of the InterDuquesne Light Co. is an elecnational Bank for Reconstruction trie public utility serving an area

lished

The purpose of

and Development.

corporation will be to stimu-

the

0f approximately 817 square

by
through

countries

veloped

capital

venture

loans

Beaver

without

government guarantees,
filling a need which is not

thus

a pop-

the

For

months

12

ended

Oct.

3^ 1954 the company had operat-

zation.

ing

While all of these proposals are

the

important,

the

is

keystone

following

is

States

and

domestic

United

sound trade

a

with

consistent

policy

the

that

show

will

ment

both

NYSE Committee
Asks Nominations

our

international

our

needs.

The

Nominating

Committee

in

engaged

Stock Exchange
H. Hentz

of

& Co.,

that Arthur Nelson has

H. Hentz & Co.

office operations.

be handed to the Secretary of

Florida

and

.

for

present

at

scheduled

two

Coral Gables

in

and

Holly-

9>

16

and

meetings

of
Pennsylvania ■ in
after graduation was
employed by the international
banking firm of Speyer & Co. In
and

became

he

in

Burnham

of

member
Stock

partner

a

Cowan & Co. and

his

if found

necessarv

meet"ng wiliybe

activities

1946

&

the

of

firms

of

a

6th Floor,

11 Wall Street, at 3:45

Wednesday, March 2.

p.m>>

are:

Chair-

Governors;
nine
governors
for three-year
terms, and one governor for oneyear term; three trustees for the
gratuity fund and nine members
of the Nominating Committee.

part-

Co.,

both

New

York

In recent years

Exchange.

varied

held

in the Board of Governors Room,

graduated from the man of the Board of

University
1924,

appear-

Additional-closed
be scheduled
in

Vacancies to be filled

Nelson

Mr.

ner

personal

23.
will

Aropen

wood.

1938

for

appointments for
which
should be made through the Secretary of the Exchange: Feb. 2,
ances,

many

has

to
the

Exchange, April 11, and the fol¬
lowing closed meetings have been

has maintained branch office rep— March

in

election, May

The nominations are

1955.

9,

candi¬

selecting

dates for the annual

Mgr. Of

of

the New York Stock Exchange is
now

Arthur Nelson

and

$80,989,000

of

revenues

net income of $15,997,000.

Reciprocal Trade Agreements leg¬
islation now before you. Its enact¬

each

MICHIGAN WISCONSIN PIPE LINE COMPANY

Counties, Pa., with

uiation of 1,550,435.

being met by any existing organi-

years,

LIGHT COMPANY

miles

taking in the highly industrialized

unde- city of Pittsburgh and surrounding
providing municipalities in Allegheny and

private investment in

late

branches in Miami Beach and one
•• MILWAUKEE GAS

program, which calls
expenditures of approximately

for

Finance

reservation
A NEW JERSEY CORPORATION

the

part

applied to finance
company's 1955-1957

the

announces

Company

shares of common stock

earlier wm be

part

important

Administrations

^ f(™T

nnn

450,000

rnrn,ip,.i;.in

corporation

in that

further step

direction.

joined their organization as General Manager of Florida branch

MICHIGAN CONSOLIDATED GAS COMPANY

0_
wa_

priate time.

member firm

Gas

oversubscribed
closed

,

hv

and

npr%harp

t

ickl

Hentz Fla. Branches

Natural

,

Corp

proposals in more detail C1eemable at prices ranging from
committee at the appro- $53.34 per share if redeemed on

-The New York

American

9,

was

First Boston

The

discuss

will be prepared to

We

1cnftfUi

Preferred stock

f^ef,™

branch income until it is removed
from the

-

Pf ^ offering of 16(^000

from

income

their

earn

in
customs procedures and has caused
Convertibility will be encour¬
an
appreciable decrease in the
aged by a balanced development
of world trade; and, in turn, will backlog of uncompleted customs
work, further improvements
contribute to such a development.
pressed me in my contacts abroad

First Boston

earned

income

of

taxation

to

ceive aid from the U. S. Treasury.
This

we

percentage points lower than the
rate on corporate domestic income,
and a deferral of tax on foreign

about substantial improvements

rencies.

Com¬
Pro¬

with

tion

taxation,

suggesting that consideration

our

at home is equally
essential for the other free nations
strength

tries
♦A statement

on

What

basis.
own

a

imports.

rest

The free

economic growth

world's vigorous

directed

is

dollar

States

yardstick for all of the cur¬

sound.

policies

contribution

monetary stability

to international

dynamic and
Our

States dollar

United

vital part of our

a

principle in

broad

other

mention

to

like

would

I

field' of

the

In

or

citizens.

Trade Program Will Reduce

aid.

particularly

of its clients,

safeguards for our domestic pro¬
It does not contemplate

over

been

they

as

about the level of tariffs.

again be given to certain changes
in the revenue laws with respect

any

comprehensive

a

Investment Research Department,
whose facilities are at the service

are

ducers.

the past tivity, the capacity of our economy
with foreign financial to absorb imports is enormous—

contacts

my

questions of customs

maintains

firm

with

concerned

are

Outlay for Foreign Aid
In

these

much

as

instances

many

is moderate.
It does not interfere with existing

the strength and value of the U. S. dollar

tures

about

in

are

The bill before you

(1) maintain¬

Agreements Program:

commercial
find other

from
a
they watch for moderate steps equitable
Again I
objectives.. standpoint.
countries

stantial underwriting department
and an increasingly active participation in this growing field. The

realistic and

as more

tinuity.

fundamental pillars of the

and thus encour¬
age world trade development and world wide currency con¬
vertibility, and (2) a broad and stable commercial policy,
accompanied by moderate steps in liberalizing tariffs. Holds
the Administration's trade program will help reduce expendi¬

ing

prompt and effi-

more

well

as

period is needed to provide
reasonable assurance of such con¬

Secretary of the Treasury

as

cient

the direction of our

year

Secretly Humphrey lays down

appraisal

Thursday, January 27, 1955

have

embraced

The members of the
Committee

are:

Nominating

Clarence

South-*

H. N. Whitney,
Goadly & Co.; Ralph Hornblower,

wood,
jr.,

Chairman,

Secretary,

the securities
business, with emphasis on bond
brokerage, arbitrage, trading and
underwriting. In addition to general
supervision in Florida, Mr.

The firm of H. Hentz & Co. has

duPont

Hornblower

&

Weeks;

of

aspects

H. Lawrence Bogert, Jr.,
Eastman, Dillon & Co.; Harold H.

Cook, Spencer Trask & Co.; Stephen A. Koshland, Carl M. Loeb,
Rhoades & Co.; Joseph A. Martin,
Nelson is resident co-manager of jr.,
Gaines &' Co.; Richard H.
Hentz's 71st Street branch office Moeller,
Schirmer, Atherton &
in Miami Beach.
Co.; John J. Trask, Francis I.

service

provided

to investors for

Founded in 1856,
brokerage
firm, and subsequently broadening
its services in a wide variety of
nearly 100

AN INTEGRATED NATURAL GAS TRANSMISSION AND DISTRIBUTION SYSTEM
.

SERVING A MILLION CUSTOMERS IN MICHIGAN AND WISCONSIN AFTER
MORE THAN HALF A CENTURY OF SUCCESSFUL OPERATION.




as

'

a

and

Samuel

W*

Hentz became
an important factor in the securities business upon its merger with

Baruch
holds

Bros.

in. 1918.

memberships

serving
modities

the

Salik & Co. Formed

cotton

other commodities,

important
)

Co.,

years.

originally

&

West, Beauchamp & West,

firm

as

•

Officers

,

Charles

are

E.

Salik,

President; Louis E. Salik, Marvin
exchanges k. Jacobs and Thomas M. Dirand,
and com- Vice-Presidents; and John A. Clewell as a land. Secretary-Treasurer,

in nearly

American
securities

markets,

The

' Calif—Salik & Cohas been formed with offices in
'■be Orpheum Theatre Building to
engage in a securities business.
,

all

The officers are also principals
Electronics Investment Management Corporation which has
development of recent years has recently
been
formed
in San
been the, establishement, of a sub- Diego. .

number of

important foreign

ex-

The firm's business is international in scope. A significant

changes.

of

„.

„

H,

Volume 181 'Number 5398... The Commercial and Financial Chronicle

m

(479)

Only STEEL

can

do

so

well

so

Milk Tastes Better
modern, convenient
and

rants

school

stainless steel

when served this

Many restau¬

way.

cafeterias

use

rust. It's

sanitary and

it's hard

enough to resist dents and

easy

i Frozen Steel. Ordinary

to clean. And

new

recently introduced

alloy known

steel

Steel Takes to the Air.
there's
floods
had to

sandy

a

frequently
cross

the flash flood
gas

river

bed
A

occur.

In Arizona,

where

at

flash
-

:

the river bed. So, to avoid

Pipe and supporting structure
ricated and erected by

were

1200 Feet

a

livery end,

sharp steel knife

a

Minute!

That's how fast this mazazine
snaps

a

full-hour

TV

STATES
program

presented

for time and station.
For

AMERICAN BRIDGE
OIL WELL SUPPLY

..

welded
a

The

pressure

blow from

a

picture

shows

Vessel that

13-ton

was

even,

be welded without

.

.

are

so

a

press

gobbles

up paper.

every

UNITED

your

.

further information

on any

ingot dropped

At the de¬

minute to cut the paper. American Quality

well that the customer has been using them
•

TENNESSEE COAL & IRON

.

.

STATES

product mentioned in this advertisement, write United States Steel, 525 William Penn Place, Pittsburgh, Pa.

AMERICAN STEEL & WIRE and CYCLONE FENCE .'. COLUMBIA-GENEVA STEEL
UNITED STATES STEEL PRODUCTS

UNITED STATES STEEL HOMES, INC.

•

UNION SUPPLY COMPANY

•

..

..

CONSOLIDATED WESTERN STEEL

UNITED STATES STEEL SUPPLY

UNITED STATES STEEL

.

.

..

GERRARD STEEL STRAPPING

.,

NATIONAL TUBE

Division, of UNITED STATES STEEL CORPORATION, PITTSBURGH

EXPORT COMPANY

•

UNIVERSAL ATLAS CEMENT COMPANY-

a

sur-

chilled to -22° F.

HOUR.

by United States Steel. Consult

local newspaper




STEEL

printing

in and out 640 times

used to cushion the shock. They perform
in these presses for 20 years.

It's

treatment.

can

♦Trade Mark

fab¬

Springs

other week

heat

"T-l"

This

United States Steel.

guide to quality steel

SEE THE UNITED

USS "T-l*."

as

important, it

73 feet. The tank

This trade-mark

is your

But U. S.

completely

high and low temperatures; but

:vived

danger, the 30-inch welded

pipe line took to the air for 1020 feet.

a

strength and toughness

more

pipe line

gas

retains its

wear.

steel becomes

brittle at low temperatures.

Steel

these

dispensers. Stainless won't

5-265

1*

The Commercial and Financial Chronicle...
20

(430)

Thursday, January 27, 1955

\

During recent months the Ster¬ LETTER TO THE EDITOR:
ling Area gold reserve was barely
holding its own.
Its earlier up¬
ward trend came to a halt. There

Sterling Convertibility
And U. S. Trade

Policy

liberalization of American

LONDON, Eng.
statement,
President

In

—

public

a

Mr. Butler welcomed
Eisenhower's Message,

foreshadowing

it does a more

as

taking

American

in

whole.

/

trade

policy

It

the

that

through

implementa¬
of

tion

the

of

some

recom¬

mendations of

Randall

the

But
private

Report.
the

in

view taken

of-

British

ficial

circles

is

nearly

not

as

favorable

as

Einzig

would

ap¬

from this
is admitted

pear

public

utterance.

the

that

policy

It

foreshadowed

the President constitutes
the

a

by
step in

right direction from the point

of view

trade,

of world

of liberalization

and

that

is

there

now

a

better chance for its endorsement

by

Congress

year.

than

there

last

was

But the official British view

is that the President's policy does
not

go

sufficiently far to make
difference

fundamental

to

a

con¬

vertibility prospects.
The main defect of the program
outlined
sage

in the

Presidential

is the stress laid

on

Mes¬

the

re¬

as

American

States is

''quid pro quo" for concessions re¬
sulting in increases of imports.
But
liberalization on such lines

little

the world

leave

in

peren¬

lost

disequilibrium. American for¬
would remain indispen¬
sable for the balancing of inter¬

regained

national accounts.

against
British

official

in

War

III

erupting
most

The

is

the

of

tion

which is at

present in operation in the form
of exchange restrictions. From an

of debts in the only

such
the
To

payment
off

form

the

enable

form in which

an

import

debtor

The

surplus.

nations

to

discharge their obligations it is
not sufficient for the United States

there

is

why in

such

spit^ of this

strong opposition

a

the United

in

States to unilateral

tariff concessions is that it is con¬

peace

letters

mile high

a

upon

war.

or

that

believe

emblazoned in

should be

de¬

important that it

so

flaming

suspended by

capital city
the Northern Hemisphere where

dirigibles
in

over

Soviets,

A disastrous

broke

war

lasting 27
B.

of

every

We are indebted to Thucydides, the brilliant historian who
lived

during the period of that
Peloponnesian War, and who wrote

an

eye-witness account of its

events and

ending.

"The real

sider
most

of this

cause

to

be

the

was

inevitable."

reducing American of this would be that American 1933 to Sept., 1939, as a student of
tariffs without insisting on cor¬ exporters
would gain both on military strategy and history, I
following
closely
all
the
responding concessions by other the swings and on the round¬ was
abouts.
But this would mean a events in Germany, Russia, Eng¬
countries.

the

"armament

would

be

by

ceded that

war

In

builds

are

at

each reduction of American tariffs
on

cal

foreign imports.
reduction

of

The recipro¬

tariffs might in¬

even

in

be
a

unpopular, and
that
Congress with a Demo¬

ing

exchange

to

countries.

many

Japan,

land,

difficulties in which
It would mean amazing

to

parallel

the

cratic majority it would be

discrimination against convertibility without unilateral
concessions
to
imports by means of ex¬ American tariff
offset its effect on the dollar gap.
change restrictions.

existing

me.

If

dollar

these unilateral concessions go

If

thought that the "arma¬
which preceded the

we

ment

race"

World

Second

War

big and

was

in prog¬
leave the problem of the position ress,
we
were
"pikers," indeed,
when we compare it to the exist¬
of the United States as a creditor
still unchanged.
But at any rate ing gigantic size and cost of what
convertibility would not result in the world is now doing. A con¬
a

this, they would

further than

no

servative

deterioration.

American business¬
men
and politicians imagine that
it would be possible to secure the
full advantages of convertibility
to American export trade without
So

long

as

having to make any

sacrifices in

form of unilateral tariff

the

con¬

cessions, there is bound to be the
utmost resistance to such conces¬
sions. Without them convertibility
would

ture.

LUDMAN

MAKERS OF

the

LUDMAN Auto-Lok

CORPORATION

Aluminum

Awning Windows

LUDMAN Jalousies

FAMOUS

Wood Awning

NEW

PRODUCTS:

Wood Awning

from

convertibility

make

it

while

worth

foreign

would

admit

to

through

imports

ness

the

choice

be

able

expecting

to

advantages

with

of

to secure
from con¬

vertibility without having to pay

BAR-LOK Storm Shutters

the

LUDMAN Screens and

tariff concessions.

price in the form of unilateral

Storm Sash

LUDMAN Intermediate

Projected Windows

Fabricators, Erectors, Warehousing and Sale of Structural

Steel

LUDMAN All-Weather

Custom Aluminum Extrusions

Sliding Glass Doors

Joshua Davis Director
Joshua

NORTH MIAMI

FLORIDA

New

Distributed throughout the world

York—Washington, D. C.—St. lovis—Boston—San




Francisco—Chicago—Atlanta—Houston—Miami

such

a

"race," the invariable and

a

result

inevitable
"race"

that

designed
been

off—has

such

a

been

"race"

was

There

prevent.

to

that

unless

has

exception!

no

The major

premise that "arma¬
cause

such

the

wars

"races,"

been

as

—

called

was

war

such

new,

nations have embarked upon

more

the

study of
past 2,500 years
every
time two or

that

reveals

since

result

our

of

does

war
are

not

caused by

many

other

have

causes,

Civil War, and Revo¬

lutionary War.
A

significant

example

of

the

history repeats itself occurred in
the Fifth Century, B. C.

the Board of the investment bank¬

racy

Davis,

rated,

has
of

been

directors

elected
of

to

the

Thompson-

Starrett Company, Inc.,

engineer¬

ing and construction firm.

that

time

the

only

Democ¬

in the world was Greece, or
Athens, which — like our nation
today—was then at its zenith of
power,

such
and

trine

glory, and prestige, led by
men
as
Pericles,

brilliant

blessed by two of

the wisest

philosophers who ever lived, Soc¬

its

deter

it

if

powerful

war

enemy

This would

war.

a

embraces the

concerning

which
to

will

em¬

that

except for the fact that

enemy

doc¬

same

The thing

war.

"armament race"

causes an

intensified

become

that

is

,

its

"idea"

basic

becqmes a "mania"
and the vast majority of the pop¬
ulation of a nation from its high¬
est intellectuals to its most illiter¬

ate

acts

laborers

if

as

they

were

hypnotized, by merely accepting
the repeated "suggestions" we see
and

hear

every

with the

hour of the day,

belief that it is the only

to prevent war.

way

Instead

utilizing

of

God-

our

given faculties of logical reason¬
ing,

fall victims to mob-psy¬

we

chology

in

this subject

on

few

so

is
something hap¬
that will stop this "armament

pens

race,"
It

urgency

is inevitable!

war

is

important to

difference

our

the

Unless

pressing.

and

so

is because

are—while

others

form.
My
strongly

its worst
speaking

for

describe the
future

between

wars

past ones. As now planned by
military strategists, modern
is

war

scientifically organized
extermination

mass

of

the

vast

majority of the urban population
of an enemy nation—men, women,
and

children.

The

this

of

sample

world

type

of

had

a

warfare

during the month of August, 1945,
when
our
nation dropped
atom
bombs on two Japanese cities.
,

The

working of this law that "arma¬
ment races" cause war, and which
brings out in stark clarity how

At

board
Sales Offices-

nothing
history for the

Chairman of

A.

ing firm of Blair & Co., Incorpo¬

LUDMAN

is

war

be sound
our

reason

states that "armament races" cause

that all

realize

using 1939 dollars

As evidence that the law which

mean

it is confronted, instead

it did

as

yardstick.

a

opinion in the United States

which

the

that

for armaments

much

in 1935 to 1939,
as

is

spending ten times

now

races"

unilateral

Enclosure

LUDMAN Jalousies in Doors

as

is

ment

should

Windows

world

was

estimate

political and busi¬

matters is that

LUDMAN Shower Door Tub

Aluminum

not

unilateral tariff concessions. What

Windows

LUDMAN Auto-Lok
ADDS TWO

dream of the fu¬

a

Possibly the advantages that
United States would
derive

more

LUDMAN Single Sash

remain

costly, at the time it

it

starting

nation

idea

more

a

t

the "race",con¬

One

false

up

machine

from

if

pre¬

cause.

underlying an
which
always

race"

"armament

more American foreign aid to fill
ment race" from 1910 to 1914, in¬
diffi¬
present, there would be a dollar
the gap: Taking a long view, the clusive, the five-year period pre¬
cult to obtain its approval.
So it
gap were it not for American for¬
the
First
World War.
is feared that hopes of a balanced change would not benefit either ceding
eign aid. If the President's policy
the United States or the rest of Therefore, it was no surprise to
trade between the United States
were carried through, the position
the world.
me
when Hitler invaded Poland;
and the rest of the world are still
would remain precisely the same
The first step towards preparing and as soon as our own "armament
as
there would have to be a re¬ very remote. And this means that
way
for the right solution race" became intensified after
there is, very little likelihood of the
duction of tariffs on imports from
the
creation
of
a
situation
in would be to make American opin¬ Sept., 1939, our own involvement
the United States in return for
which it would be safe to abandon ion realize that there could be no in that war appeared inevitable to

things

would

widening of the dollar gap, lead¬

words,

that

its

The basic fallacy

the

As

policy

It is realized that such a

other

race"

was

braces

States.

was

outbreak; the growth of the power
of Athens, and the alarm which
this inspired in Sparta, made that

"arma¬

United

con¬

war

in return sidered possible to obtain both all the rulers of every state and
reductions by other tariff reductions by foreign gov¬ nation may read and ponder its
countries. The only way in which ernments and the elimination of implications.
The result
debtors could be enabled to pay exchange restrictions.
During the six-year period from

to reduce customs tariffs

for equivalent

this.

trade
by the

any

I

which

one

kept out of sight prior to its

is

of

made

cause,

In fixing the

"war guilt" for that war, he wrote:

tinues

be

years

between

resulting in the
Athens, the only free
enlightened nation of that

defeat

war

to

C.

these two nations

in

character

concen¬

a

431

in

out

results

concessions

also

was

France, and Italy
struck
me
as
being
an

ciprocal

powerful

a

trated, tightly-knit military power,
organized primarily for war.

and

I

is

issue

was

era.

pends
Loftus

A.

S.

this

reason

the

other

wealth

foreign tariff reductions
through a return to conver¬

Sparta,

by

seas,

League,

state, quite similar to the
present Soviet Union; and, like

itself, not

our

through

made—in tibility.

be

can

ex¬

by

two

across

Peloponnesian

police

material

quarters is that the United States
American point of view it should
not yet realized the implica¬
not make any difference whether
tions of her position as a. large
American exports would increase
creditor nation. There is still no
or

led

merely our
cities, facto¬
ries, and all

has

inclination to accept the payment

the

isting civiliza¬

discrimination

dollar goods

distances

impor¬

whole

our

unsurpassed.

Democracy,
then—like our

was

large

tant is because

be

Athens,

while

reason

so

remain

nation is today—separated

own

why that issue

as a

cessation

a

day.

any

still

The far-flung Greek
led by

al¬

World

of

probability

unilateral

through

period

danger, the strong

result of an increase
that would result from

of exports

felt

real

ground that

of convertibility would

terests

eign aid

is

the

is

us

be

can

Her art,
philosophy, and literature of that

the one

that

me

Ameri¬

an

There

any

to

appears

rates and his pupil, Plato.

vitally important issue now facing

tariff concessions made in the in¬

nial

What

from

doubt that
be

United

the

in

point of view.

would

It

of the advantages

aware

convertibility

can

Chronicle:

make

that political and

It is assumed

of

Editor, Commercial and Financial

difference.

fundamental

a

continues.

meas¬

be sufficient to

would

ures

Washington Administra¬
tion should be anxious to secure
the

would

official circles such

British

now

procedure

customs

But it is doubted in

business 'opinion

understandable

course

were

might help.

a

one

facing us is the real danger and
strong probability of World War 111 erupting almost any day.
Says war will give no victory to any nation, and, though war
is not inevitable, it will result only if the armament race

made convertible.
Admittedly, the modification of
the
Buy American Act and of
sterling

the

Loftus, U. S. Navy Commander, relired, asserts the

vitally important issue

arise if

requirements that would

■/.V

of

is

world

the

S. A.

a

will

trade, but it would not affect the
balance of payments which would
remain in
favor of the United

States,

policy.

such

the volume of international

trend

liberal

Dr. Paul

to

crease

In the absence of
change the gold reserve
remain inadequate for the

trade

President Eisenhower's
program of a more libera! trade policy, Dr. Einzig finds the
linking of reduced tariffs to reciprocal agreements is disliked
and criticized.
Says right solution would be for American
opinion to realize that there can be no early sterling converti¬
bility without unilateral American tariff concessions.
British reaction

on

Will Lead to War

worthy scale unless there is uni¬
lateral

Commenting

Wains Armament Race

a

resumption of its rise on a note¬

PAUL EINZIG

By

of

little likelihood

be

to

seems

vitally significant point to

consider
wars

is

opinion

competent and

strategists that
win
no

such

a

Victor!

case

of

attack

by

10%,

no

Pearl

a

nuclear

the

or

most

military

nation will
There

war.

100

of

unbiased

And

a

carrying'
least

future

about

the

this

be

why.

is

Harbor
so

ever

will

In

type

of

planes, each

modern

or

H-bomb, at
10 of them probably
the best radar

would get through
and

anti-aircraft

the

exterminative

power

defenses.
or

•

Since

explosive

of only one modern H-bomb

Volume 181

Is equal

Number 5398... The Commercial and

to that of all the

dropped

bombs

by

all the nations en¬
in the six years of World

gaged
War

II, including the two A-bombs
dropped on Japan, only one Hbomb

landing within three miles

of the center of

a

large city would

destroy it and most of its inhabi¬
tants.

It

is

after

true

such

that within

hours

12

an

attack, that enemy
nation's big cities would be simi¬
larly destroyed, but that would
be of

comfort to the millions of

no

exterminated

persons

tion,

our

na¬

fill

the

the

Elects Officers
WASHINGTON,

D.

C.

—

term of three years to

a

vacancies

expiration

Harvey

B.

created

by the

of

the

terms

Gram,

Jr.,

Johnston,

of

Mr.

son.

Baney takes office

Chair¬

as

L. Victor

D. C.

Seested, Washington,
elected Secretary of the

was

National Association of Securities

Dealers, Inc. recently elected:
Joseph P. Kreeger, Jones, Kreeger

District

of

States of

were

Arthur

Hewitt, Washington, D. C., and
Joseph J. Muldowney, Scott &
Stringfellow, Richmond, Va., to

elected: Chairman—

L, Baney,

E. R. Jones &

Baltimore,

Md. Vice-Chair¬
Anderson, Caro¬
lina Securities Corp., Raleigh,
Co.,

man—Glenn

Committee, represent¬

E.

C.

N.

ing the securities industry in this

Hickey, 49 Wall Street,
City, members of the

New

York

York

Maryland, Virginia, West

officers

&

Vilas &

New

Committee.

Richmond, Va.
At a meeting of the Committee
held Jan. 13, 1955, the following

The

With Vilas & Hickey

succeeding Glenn E. Ander¬

man

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

members of District No. 11 of the

the District

for

area

NASD District 11

cities

wiped

out

by

District

No.

11

comprises

Columbia,

the
the

and

nounce
now

Virginia and North Carolina.
The

members

represented

are

Governors

Beverley

of

of

this

this Association

associated

KANSAS

of

lumbia

G.

with

One

.

the

in past wars,

as

Thompson

and

Company, Co¬

Bank

Munford, Davenport

B.

h Company,

Building, has. been
changed to Luce, Thompson and

Richmond, Va.

Company.

that

wise,

the future

financial

derived

by

any

other¬

or

person

or

analogy

to

corporation.
I

wish

to

cite

this

try to bring out clearly the truth
the
existing "armament

-? 5:■ ,-J
!

{

i'

'

f-

*1 f

about
race"

I

as

it.

see

Imagine

huge

a

iron caldron suspended
by a large
chain and tripod over a

How

blazing

fire of small wooden logs. Around
this caldron are seated five
men,
each of whom represents a certain

nation, such
This

A, B, C, D, and E.

as

fire

represents
"armament race."
Within

this

Miracle

a

the

caldron

existing

there

is

Became

Kitchen

a

a

vitriolic liquid which will explode
with such terrific force when it

reaches 212 degress F. that it will
exterminate instantly all five of
these men whose primary duty
is

to

prevent

such

explosion
by keeping the temperature be¬
low 212 degrees for the period of
time

essential

solve

their

macy"
is

for

them

to

was a

"diplo¬

"salesmanship."

or

the liquid

mixture, but

There

no

in

one,

the heat of their arguments both¬
to look at it.

ers

As their

each

of

argument

these

waxes

hotter,

even

while

men,

piously proclaiming that he. him¬
self, is a "peace-loving" person,
reaches for another dry log from
a
nearby
inexhaustible
pile to
throw

the

upon

fire

which

is

slowly but surely raising the tem¬
perature of the mixture to its

plosive

point.

be

can

but

It
and

is

Eventually,
outcome

one

"crack-pot"

ex¬

there

to

this

objective

my

here—

would prohibit it any¬
submit the solution to

existing foreign problems that

our

would

save pur civilization
from
extermination by another World

War, except to

offer this

hint.

would

strongly recommend
the five foregoing described

tlemen

stop

throwing

the fire of

on

gen¬

more

world-wide

our

mament race, and concentrate

clusively
macy"

logs
ar¬

genuine "diplo¬
"salesmanship."
I

not inevitable!

is that

war

The point stressed

will result only if the

"armament

race"

continues.

revolution in Russia, a

its

satellites,

diplomatic

or

with

tions 1$ always
and hope that

possessing
will

have

when

and

-

,

our

a

genuine

of

existing

enemy

a

ice

miracle.

was

•

fairly efficient for

keeping foods longer. But ice was a
product of nature. In the summer it was
scarce and costly. Mechanical refriger¬
ation

was

still

a

the first

na¬

Why this better product today—at

dream of the future.

In 1834 Jacob Perkins had

patented

practical ice-making machine.

By the end of the nineteenth century,

ice-making plants had become

a

famil¬

such low cost?
There
But

are

many reasons,

steel—America's

metal—has played an

of

course.

bargain
important part.
great

And it has taken many kinds of steel.
Wide, flat sheets with the ductility to
shape the case's curves and corners.

But there were drawbacks. The ice¬

Strain-free sheets for doors. Highstrength strip and sheets for structural

sight in cities and towns, and

This

was

home

boasted

certainly

an

every

progress.

box held little food. The ice melted.
And that meant, more
ice water all

over

The idea of

a

often than not,

the kitchen floor.
home refrigerator de¬

veloped quite slowly. The first ones
were crude and costly. They were really
just small ice-making plants housed in
old-fashioned

wooden

icebox.

A

better

material

was

needed. A material

that could be used in

mass-production
manufacturing. A strong, rugged ma¬
terial that costs little. That material,
naturally, was steel.
So the steel home refrigerator came
into

being. And it has progressed tre¬
mendously in efficiency, convenience,

and appearance. The refriger¬
early 1920's, in the coin of
time, cost about six times the price

other home appliances.
production

National Steel research and

"icebox."

iar

ators and many

members.

Wear-resisting steel for mov¬
ing parts. Special steels for hardware
and trim. And, always, with steel's
rugged durability, came the fine quality

have worked hand in hand with

men

refrigerator manufacturers to provide
the precise kinds of steel needed for
continual progress. And this progress
means not only miracles accepted as
commonplace today, but also a steady
flow of new and even better products
in the future.
This

is steel

and this

is

National

Steel—one of America's foremost
ducers of steel.

pro¬

1

surface that is the base for the bright,

smooth, clean finishes.

Today, eight
refrigerators —
production miracle impossible

SEVEN

out of ten homes have
a

mass

WELDED

GREAT DIVISIONS
INTO ONE COMPLETE

STEEL-MAKING STRUCTURE

without modern steels.
Of course,

National Steel does not

make

refrigerators, but since the begin¬
ning, National has been one of the
leading producers of the types of steel
used

in

the

manufacture

of

Great Lakes Steel Corporation
Steel Company • Hanna
•

Slran-Steel Division

Products

Company

Corporation

•

•

•

Weirl.on

Iron Ore Company
•

National Steel

The Ilanna Furnace

National Mines Corporation

refriger-

economy

ator of the

the

of

NATIONAL STEEL

CORPORATION

GRANT BUILDING

PITTSBURGH, PA.

today's handsome models.

possible.

I believe
Higher Power

a

more

wisdom

bring
all

A

fight among

even

settlement

differences

:

Of course,

the

believe that there is real magic in
"salesmanship" itself.
Regardless of what has been
written herein, I wish to make it
clear that, in my opinion, war is

V

been considered

ex¬

upon

and

.

tasty in the hot summer would have

I

that

day, food preservation
thing. Salting, pickling,

drying and smoking were effective after
a
fashion, but foods kept fresh and

space

way—to

sometime

modern

arrangement.

not

In Grandma's

re¬

thermometer extending above

a

Commonplace

an

differences by

of

about
our

than

we

peace

efforts

if

fail.

S. A. LOFTUS,
Commander, US.N., Retired.

386 Humphrey St.,

Swampscott, Mass.
Jan. 24,1855

Joins Ira Haupt
Ira

Haupt & Co., Ill Broadway,
City, members of

New

York

New

York

nounce
come

that

Stock
Jesse

Exchange,
Block

has

.an->

be¬

registered

representative
in the firm's branch office at 501
Seventh Avenue.
Mr. Block
is
a

a

former member of the comedy

team Block & Sully which was
well-known in vaudeville and on

the

radio.




It-.takes steel—and lots of it—to produce nearly

4,000^00 refrigerators each

year.

sheet will be transformed into

This cold-rolled

refrigerator doors.

Only steel will do for handsome.yet rugged,refrig¬
erator door*.

7500

This giant

press,

with

a

is

firm.

thing is certain: there will
be any profit in

an¬

Capiin

CITY, Mo.—The firm

of Luce

name

by

Exchange,

Edwin

Now Luce,

District

oil the Board

Stock

that

enemy's attack.
never

21

(481)

would it rebuild the ten

nor

so

or

in

Financial Chronicle

pressure

of

pounds,forms the smooth,rounded surfaces.

Here, mass-production
over

miracles

are

performed—

2500h andsome refrigera tors daily.Steel means

more

products, better products—at

lower cost.

The Commercial and Financial Chronicle

22

;;.Thursday, January 27, 1955

(482)

At Uranium

Business Worries

he produced when he

Company Meeting

It

forts

of their officials.

Sees in

missions

same

directed

ever

•

■'■

■

.t W'-.

t"

■

,w'.

for

■

in

whether
er"

A'

down of executives.

the

'.'1:

;

*

JV

for

J.

by

January
me

to

which

has

result in greater earnings
companies and better
for many employees.

Ratcliff could

D.

write

causes

tempted me

on

subject

a

for

for some

years,

I

I

that

a

definite rela¬

dollars

of

opening

tionship exists

billions

between

and the health

cases

have

studied

Roger W. Babson

to

for

reason

business
bave
tne

company's declining

a

in

the

shown

be

to

answer

has

in

failing health of the President
of some

of the Sales Manager or

or

Did

industry

growing

a

A

man

and

his

in

put

tail

dated

paid

being

of

by

Corporation.
Plateau

think why Jesus

a
l

is

whose

top

died

of

disease.

any

is

that. Moses gave some

See

ment.
verse

the

in

advice

Command¬

Chapter

B'xodus,

20,

17.

riost

above-men¬

article, the basic cause of

illness

The

is

doctors

stress

and

about

talk

bacteria,

wife

his

associates

or

Investors ask
the stock of

is that
aspirin

how is it that

me

one

listed

concern

on

the

Big Board has been constantly
ciimbing each month the past year,
while that of another in the

industry has not moved
The

point,

a

probably be
doctor permitted to

found by any

the'head

diagnose

same

could

answer

Some day,

men.

company directors who now spend

is

of its

25-

cip^l amount of such bonds for
eac^ share °f capital stock,
Stockholders of Boston & Al-

bany RR. Co. who wish to accept
the exchange offer may do so by

of New York.,

freely for financial audits will

Co.

New

annual

health

their officials.

this

will

I

reports

forecast

on

that

the

be

day -when the
so-called "sleeping

stocks of many

companies" will

zoom

upward.

Of
of

I believe in the work

course.

Merrill

authorized

has

Lynch,

& Beane, dealer
manager, to form and manage a
group of securities dealers for the
Fenner

Pierce,

of

purpose

What About Accountants?

Co.

The New York Central RR.

soliciting

such

ex-

changes.

(Third Article in
In

this

of

work

become

routine

so

find late that neither directors

stockholders
to

audits?

lints

are

give

As

much

result,

nor

thought
account-

coming to be classed

"morticians."

become

a

mere

Formal

audits

"autopsies."

as
can

I fore¬

cast that

a great change is
coming
this connection.

in
I

believe in

the

studying figures;
that

the

importance of
but I am sure

condition

aregefar

im

of

the

'

solid

thanC-matheXati!

cal" figures.

Some day there will

be

a

great awakening along these
Men will be retired
and

pensioned according to their physical condition, rather than

according to their age.

tally, I

believe

simply
Inciden-

President




reputation

stability,

for

Eisen-

and

Heads Cashiers' Division
Alvan

T.

McDermott

Cowen,

of

&

was

Co.,

Peter

P.

elected

President of the Cashiers' Division
Association

the

of

of

Stock

Ex-

change Firms, at the annual meet-

ing

of

that

in

well

some

local

known

business where they might be un¬

in

stocks in general.

common

are

wish to
liquidate such an investment. But
the general public does not know
"

"

*

-

A much larger and more

of this.

na^e

considerable sales

that

is

otherwise

resistance

difficult

a

bar¬

rier to overcome."

People

bank.

they
directors,
and they can see that big build¬
ing on the corner. Stock in iheir
home-town bank is a tangible—
there is no mystery about that.
have

know

its

He succeeds James J.

it

seen

officers

grow,

and

Carlisle & Jacquelin.

you

will be because

you

have brought

them an idea that appeals to them,
A series of advertisements based
'

8

Co.,

William
York

Second
R.

Vice-President;

Muller,

of

Hanseatic Corp.

the

New

Treasurer*

William v
nnipn
^pIp fi
and Wllliam F- Dolen, of t^isele &
,

Klng, Libaire, Stout & Co., Secretary.

is

the

written

around

still

who would

the

Pick

of

cultivate this

can

Your

Company

Top

Recently

I followed about 10
inquiries on a specific
local se'eurity. Out of the 10 leads
obtained

I

bought

from

orders

four

shareholders
to

15

years.

people do not
banks

from

such

time

as

to

well

during the past
The reason more
stock in their

own

is

as

that

stock

they
is

don't

available

time, and in small
big blocks.

their

of

stock

back and have made

sion of the Farm Credit Adminis¬
tration.
They make and service
loans to farms' cooperatives.

G. J. Wunsch With
J. 6. While & Co.
J. G. White &
Company Incor¬
porated, 37 Wall Street, New York
City, has announced that George

this

of

customers

been

store

for

they saw its expansion and
growth, and they felt somewhat
secure when they invested their

years,

such

in

funds

by

well

so

was

themselves.

as

highly

have

could

even

Resistance

chips"

stock

in

they bought a
company's reputa-

but

home-grown

George

I doubt if

them

sold

of the most blue of the

some

"blue

re¬

of their friends

most

largely eliminated.

was

I

well-established

a

that

business

States

J.

Wunsfch

,

the United
government bond depart¬

Wunsch

J.

has joined

ment of the firm.
Mr.

Wunsch

previously

as

was

—*

associated with Schroder Rocke-

my

part,

feller & Co.,

Incorporated.

Have

Years ago

had made

a

a

Door

Opener

I met a salesman who
living for many years

selling health and accident insur¬
ance
for a
small company.
He
could have been a very successful

business instead of
just a fellow who only worked
when the spirit moved him.
But

producer

of

when it moved he moved. He used
to

go into a

or

more

strange town with 25

lead cards that his office

obtain

would

for

their advertising.

to

a

him

through

He would walk

up

his

door, ring the bell, hold

card

Hay dock, Schreiber,
Mitchel & Watts to
Be Formed in New York
Haydock,

Schreiber, Mitchel &

Watts, members of the New York
Stock Exchange, with offices at
120
Broadway, New York City,
will be formed on Feb. 1.
Part¬
ners

will be Henry M.

These people, it is true,

Watts, Jr.,
Charles

member of the Exchange;
E.

Haydock;

Otto

A.

Schreiber,
Fred H.

member of the Exchange;

Jorgenson, William A. Klubnik,
L'xchange member; James A. Cor-

Exchange member, and
Ormsby M. Mitchel. Jr., general
partners. Henry B. Bjorkman aftd
Laura T. Whitmer will be limited
partners.
All were previously
- partners imHaydoek, Schreiber &
* Co.* of Mitchel,-Whitmer, Watts &
Co., both'of which Lirms are becoran, Jr.,

sale and go. He could sell 10
prospects a day when he felt like
working.
But he told me he
while, couldn't do it without his "door
extra
opener;" meaning the card that ing .dissolved.

little noise about the profitable investment that it has been
will buy and sell once in a

institu-

tl0ns operating under the supervi-

They had

local department store.

how he would get in, make the

&SS

either when they have some

The banks

chartered

in the

holders that have held their stock

for them.

Federally

well-known

own

from

years

secured joint
obligations of the 13

four

and
say,
"Good
morning,
you
sent
this
card
(showing it) to us for information and 1 have it for you." Some-

very

1, 1955.

the

stocks until they

common

made this first investment

up

™r£f

several

are

Two of them had not

clients.

for You Must

busi¬
ness firms. Any bank that has had
even
normal growth would pre¬
sent a very interesting story of
the profits that have accrued to
10

of

newspaper

advantage

of them by investing in local

the

to

chat

idea

ahead

lie
take

primarily
redemption

—

-

business firms in your area could
be

organization

sales

who

men

the growing and successful tion without much persuasion on

upon

George J. Miller, of Hallgarten

&

for

be devel-

can

type of business.

as

interest new clients in
doing business with your firm, it
If

lots

Myrvan P. Bums, of Bear, Stearns

good

a

garded
Advertise Local Stocks

realize

Duddy, of

has

new

their local

know

They

active local market

By

opening accounts through the use
of such an approach, you elimi-

local

organization.

offering

banks for cooperatives.

funds to invest, or might
■

are
ma¬

The consolidated debentures be¬

Developing New Accounts)

on

& Co., was elected Vice-President; firm that has been growing and

stockholders

lines.

Series

Community there are
home-owned and home-managed

those

"two-

a

a

every

opportunities

accountants; but has not much

maturity. They
1955, and will
Feb. 1, 1956.
1,

ing offered

By Offering Local Stocks

120 Broadwav,

York, N. Y., exchange agent.

being of-

at

which mature Feb.

New Clients Can Be Secured

cates to The Marine Midland Trust

willing to submit to their stock¬

are

of a
security

of

$40,000,000 of Central Bank for
Cooperatives 2%% debentures

By JOHN DUTTON

surrendering, on or before April
1> 1955 (or any subsequent date The same holds true of any other
to which the exchange offer may local business firm that has a
be extended), their stock certifi- reputation for success.

be

all

$37,500,000

offering

year

on

provide

convinced that they should invest

Co.

debentures

group

Feb.

This

Boston &

The New York Central RR.

trust

debentures

These

shares.

alert

For
Albany Stock

Cooperatives

dealers.

oped by any aggressive firm that

£0

holders

nation-wide

of

shares

collateral trust 6% bonds in
exchange for 250,000 shares of
would be obliged capital stock of Boston & Albany
RR. Co. on the basis of $150 prin-

every night.
The result
without sleeping pills and

many concerns
to close up.

shares

First National

Bonds in Exchange

must drive himself all day and go
with

ten

each

merger,

growth, and profitable operation,
Many of the people in your town
may be
interested in purchasing

N. Y. Central BR, Offers

for
on

ing^ sold with the assistance

into Sabre Cranium

company

share of Sabre.

ture

business firms that have achieved

strain.

■viruses, high blood pressure, weak
hearts, etc.; but the real cause is
worry.
The average businessman
cut

their

of the
one

Securities Salesman's Corner

a

the

to

Bank

publicly

collateral

dated

good health

Tenth

13

principal

Cer¬

Cause of Poor Health

According

terms

no pep

official

confi¬

offered at par. They bear interest
at 1.90% a year
payable with the

The answer may be that they fol-

pt in A-l health.

tioned

Dallas,

that

indicate

followers

Jesus'

they

likely to be true of

very

company

Co.,

how

noticed

you

Securities

Bank of Dallas will handle the exchange of the

called "The Great PhyHave

Under the

will be exchanged for

extra work,
Companies which do not go ahead

This

their

City, at recent meeting
stockholders of Plateau Cranium Mining Corporation at which

the shareholders voted to merge

lowed Jesus' constant teaching not
to hp ton anxious for the things
which the world seeks.
Jesus
by extending their lines or their taught that stress and worry are
territories
are
going backward, futile.
Even 1,500 years before
have

may

and

their fiscal agent. This first issue,
of consolidated debentures is be-

for doing any

zest

or

be

if you

through Macdonald G. Newcomb,

Southwestern

of

Walter F. Tellier of Tellier & Co., Jersey

tainly—if they were not martyred
—they lived to a very old age.

and

ineetings; but he

even

and

Hugh Bradford

little is written in the Bible
few accounts

very

of

hcurs; he may answer his
preside at all required

eight
i

day

WHAT
will

Jan. 21 a $40,000,000 issue of one-year consoli¬

ebout illnesses? Very

be able to go to the

may

each

The

worry

ever

you

been

sician"?

ether top official!

office

and

stress

cially employees
"piecework."

as-

the

certain

good-will

offered

which are
bringing about the breakdown of
executives, foremen, and espethe

of its officials,

I

new

the problem by closing scores of
use'ess Bureaus and Commissions,
These are primarily the cause of

earnings of a
corporation

Most

KNOW

OFFERING

Cooperatives Sell
$40,000,600 Debs.

hospitals, the President could solve

the

which

you

thing—

Central Bank for

the root of the difficulty
and talk about "stress," as does
the author of this "Reader's Di¬
gest" article? Instead of spending
not go to

co n-

am

vinced

be

Why

content to talk about health.

com¬

earnings,

pany

one

Worries

vs.

But the President should not

have

studied

another

dence.

Profits

during

which

or

of

interested

But

open¬

a

their

After 40

time.

business

stranger to them, and local
companies can be your entree to

most

wages

more

opportunity

"door

a

WHO

ARE

much
are

use

certain

YOU

better health

in

The

customers.

new

type

one

be

objec¬

better than

are

the

investment

you

PEOPLE

-

.

of

can

-y

..

'

the

clients.

new

as

securing

v

; *x

A1*

hower's interest

toward

far

as

goes
•

numerous

"Reader's Digest'

article in

An

principle that I
applied to all ef¬

be

can

obtaining
times, I believe,

Federal bureaus and com¬
and worry thai lead to the break¬

of stress

cause

a

the

tive of

definite relationship be¬
tween earnings of a corporation and the health of its officials,
Mr. Babscn predicts that some day company directors will be
willing to submit to their stockholders annual heal.h reports
stating his be'hf that there is a

In

is

believe

BABSON

By ROGER W.

to the

came

door.

-

-..v -

Volume 181

Number 5398

The Commercial and Financial Chronicle

...

(483)
LETTER TO THE EDITOR:
~

•

■

'

v'

4I

•

Reporter

Governments

on

"What

By JOHN T. CHIPPENDALE, JR.
The

government market
under the cloud of the

continues

to

be

the

on

Editor, Commercial and Financial
Chronicle:

to be aimed at the mortgage market, as well
as the
equity market. This is responsible for the feeling, which
seems to be
gaining followers, that the
term

bond

as

a

Because of the existing condition of the
money
only a limited amount of activity in Treasury

issues

distant maturities.

more

however, is still

r e n c l

es¬

Demand for the near-term

Curb

for

Mortgage Credit

on

Although the action of the stock market is^still . considered
\
the most important factor as far as the new credit
policy of '

j

•to be

.the

monetary authorities

certain

government

agencies

to the

institutions

which

building industry

have

been

interested

are

making

in the income received

well

l

as the
repayment of the principal at maturity.
increase the competition for
mortgage money, and in
ure to limit the funds
which would be

could

bring

out

as

specialists

that

it

is

the

refunding to put

on

being

the

non-bank

investors, the
building industry.

to the

might be on a
ury is purely
that

will

by

make

meas¬

,

matter of

a

conjecture, but

obligation

with

3%

a

unexpected.
The debt

impending
appeal

supplying

does hear

one

not

5,000
for

Board, and this leads

not

operators to believe that the prospects of
offered for refunding

a

a

few

that

to

reduce

the monetary

and

authorities

are

cleared

tightening operation
be

carried

far

so

of the

that

is

that

the

fail

to

raised

far from

a

"Whether

on

is

no

the

answer

the

in

article

s

satisfactory

we

are

to

answer:

have

con-

however, depends not
businessman, but on the

the

state

of mind

whole and

eco¬

money

and

of

the

people

as

a

their political leaders,
abroad.

whether there

not likely to
pattern will be adversely
inflation in the economic

business

There

the

about

vertibility,

here

evident

by

or

Certainly tne
concluding
paragraph, which read as follows,

up.

very

—

Seem

ample
clear explanation as

a

is

It
a

monetary authorities is

the

;effected;by such action.

the

on

article

title.

going to keep the pressure on,
changes in policy until some, if

hand, it is also

,

giving

the

market
long-term bond being
money

all, of the maladjustments which have
appeared

nomic horizon have been
On the other

occupied

space

words—would

question

are very favorable.
The sale of
to tighten the money
market, and at the
excess reserves of member
banks, indicates

there is not likely to be
any

not

of

co¬

purposes

time

something

about

and,

to

tie

reply,

in

litical

as

whole and their

a

had

recognized
for

of the

its

by

the

entire

world

Qualityj narriely GOLD!

-

..

depends

on

willingness to

endorse the principles and live up

picture at this time, but the pattern which has
developed in the
-equity market and in the mortgage field
might lead to boom con-ditions in business. This is
something which the powers that be
want to prevent
happening. There is no question but that it is a
very delicate operation, as the economic
scales can be very easilv
thrown out of balance.
The economic pattern
appears to be favorable for the
first
half fo 1955, but there are some
conditioning factors in the wind,
such as possible labor disturbances,-which must
not be overlooked!
Also, the building picture may not be so
strong as the

just such

a machine; but since he
didn't, I'll undertake the job—for

(Special to The Financial Chkonicle)

LAFAYETTE, La.—Chiquelin &

such

a machine would appear to be
within the range of possibility, as
I shall try to show:

Back
fore

in 1908, in

the

an

Economic

0

of

ties business from offices at 543

New

one

^tatempnt*

itself

the

standard

their

reserve."

It

becomes

Francis M.

as

evi-

only substance for building

a

the

Chiquelin, Vice-President;

and Treasurer.

Bradley Opens

•ROCHESTER,

is the

for

.

DIRECTORS

M.

Bradley

safe curities

inter-con- the

is

N.

business

Genesee

Y.

—

Franci3

engaging in
from

.

DISCOUNT CORPORATION
OF NEW YORK

year

EDWARD E. ANDERSON

goes

and any lessening of the demand for
mortgage money would
have a marked effect
upon the credit
policy of the monetary
authorities.

on,

J. LUTHER CLEVELAND
Chairman of the Board,
Guaranty Trust Company of NewTor\

Statement

of Condition

as

of December 31, 1954

ASSETS

Acceptances Discounted

$ 12,828,462.45

United States Government Securities and
'

S.SLOAN COLT

Universal Major Stock
Offered at $1 a Share
.

Gearhart

&

Otis,

York, is offering
000 shares

of

cent)

one

Corp.

stock

Universal

per

share

(par
Major

on

a

shares, out
1,000,000 shares authorized.

corporated in Nevada
1954

in

for the

the,

purpose

manufacture

on

Nov.

in¬

22,

of engaging
sale

of

major

electrical appliances
and
automobile air conditioners.
Its

principal office is located in New
York

City.

The
of

net

the

used

proceeds from the sale

make

intended

initial

to

be

PERCY

H.JOHNSTON
Chairman of the Executive Committee,
-~Y Chemical Corn Exchange Banf{

Annual Dinner Feb. 6
dinner

nual

Detroit

Feb.

16,

Club,
will

of

will

the

be

1955 at the

Detroit,
be

lowed

Bond

held

served

of the Board,
The New Tor}{ Trust Company

6:15

Boat

p.m.

Chairman

fol¬

HERBERT N. REPP

Harvey M. Merker, Director
Research, Parke
Davis &
Company, will be the

guest speaker.

,

Norris

HOWARD C. SHEPERD

*

Chairman

of the Board,
The National City Banl{ of New
Tor\

re¬

MacArthur

dent of the club. Committee

and

for; working capital and other
general corporate purposes. L
^

bers

in

Victor
nett

&

&

charge of the dinner

11,900,580.76

cost

569,086.88

162,571.99
2,787,074.86

LIABILITIES

Capital

$2,000,000.00
3,000,000.00

Undivided Profits......

2,023,112.42 $

.Dhooge, Manley Ben-Company; Robert Benton,

of 133,333 shares of common stock

troit.

Turner, National Bank 6f De¬

and

Contingencies

Payable and Due

7,023,112.42

2,320,637.55
to

Banks and

Customers..

70,050,000.00

Acceptances Rediscounted and Sold with
Endorsement

Security Contracts

Sundry Credits
Ban\

'

5,409,105.93

66,958,134.15

408,693.14
$152,169,683.19

GEORGE WHITNEY

P.

Manley Bennett & Company; and




Director,
Chemical Corn Exchange

mem¬

.Giving effect to., the present fi¬
nancing and the proposed issuance

Phil

DUNHAM B. SHERER

Kenower,
Company, is Presi¬

gas

other indebtedness;

amortized

$152,169,683.19

Loans

Hitchman,

assigning its Irade Jaar.k -with
pay

at

Cash and Due from Banks

President

Scientific

spect

electric ranges and

Account,

Reserves for Premium, Discount, Taxes

Dr.

T.

of the Board

by dinner at 7:00.

of the Bond Club and their guests.

to

vestment

Surplus
DUDLEY H. MILLS

Cocktails

Universal Major Elec. Appliances,

dryers; to

123,921,906.25

Chairman

Wednesday,
Detroit

Mich.
at

of

The dinner will be for members

Inc. which is due under agreement

less

Interest Receivable Accrued

ADRIAN M. MASS1E

an¬

Club

to

payment

or

Sundry Debits

Detroit Bond Club

of

stock-are

to

Security Contracts, at market

United States Government Securities, In-

of the City of New Tor\

"best

was

and

PERCY J. EBBOTT
President, The Chase Rational Ban\

of

DETROIT, Mich.—The 39th

Major Corp.

President, Bankers Trust Company

Major Elec. Appli¬
there will be out¬

Inc.,
standing 400.000

efforts basis."

Universal

Universal

New

issue of 150,-

common

of

at $1

an

Inc.,

to

ances,

.

v

~

'

Chairman cf the Board,
J. P. Morgan & Co. Incorporated

se-

in.

Valley Trust Build-

.

Senior Vice-President

a

offices

vertibility" of national currencies ing.

-

are,

of

dent, therefore, that gold
"machine"

Officers

Chiquelin, President;
-

value, and that is .gold, which the
banks of civilized nations have

II.

and Allen R* Chl(Iuelin. Secretary

value, because it is
world's

R.

onlv

is

substance in the world which

cannot fall in

in

"There

Street.

William

York, Andrew Carnegie made this M.
wi^p

~

is e gaging m a securi-

Jefferson

address be-

Club

T

S?ns> Inc.

-

•

po-

leaders> here and abroad"
just one substance

__it depends on

electronic
one

£f

peopie

a/luncheon conver-

at which
said

brain,

convertibility means to
business"; but its "Concluding Ob-

Treasury bills by Federal
same

Shull

answer

convertibility":

.

servations"

Reserve

G.

"what

to

be

Treasury is being
being carried out by

sation,
been
Frederick

Heatherington

guesses

would

coupon

of

Very truly yours,
export executives" voiced the folupon the article by Donald
lowing comment: "We wouldn't
FREDERICK G. SHULL,
Heatherington in your issue of have much use
for an 'electronic
Jan. 20, entitled "What ConvertiConnecticut State
Chairman,
brain' in our business.
What we
Gold Standard League
bility Means to Business,"
my
need is a machine which you can
hope was, here is where we can feed
with po^unds^^francs,' lire" any 2009 Chapel St.,
look for some help in this
gold- soft
currency, and which will turn
^nn*standard
movement.
But,
as
I out u. s. dollars at the other end." Jan. 24,1955
shall show, that "hope" was not
It could have been very
helpful
well founded.
that point if Mr. Heatherington
Forms Chiquelin Sons
The approximately 125 column- had set forth the
specifications for
inches

to

money

management policy of the
with the program which is

ordinated

Federal

the

would

been

market

money

of

which

which have

ones

some
use

bond

a

satisfactory

a

merit 0f presenting a
spesolution-free from depend«Gn the state of mind
th

cific
ence

F.

As to what the coupon rate or
maturity
long-term bond which might be used by the Treas¬

30-year

a

assumed

market

bas

lighted

a

Treasury

in

question

He speaks of

And

......

Long-Term Bond Issue Anticipated
Accordingly,

be

when my eyes

In order to
some

this

worthy

cause.

early part of his article Mr.

Heathenngton gives a lead which,
carefully developed, could easily
result

A1_.

pared with Mr. Heatherington*s
5,000-word article, mine, at least,

...

,

..

While this 100-word, one-para&raph, solution is brief, as com-

if

that
to

,,r,

neces-

"convertibility" of

,u

In the

furthering
this

going into mortgages, the
long-term bond.
Such an issue
;would have to have a
coupon rate high enough to attract funds
fwhich have been
going into the mortgage market.
government

V

the

anything
seems

"obligations"

SIS'i10 matter
raaY
*h®m f?r redemption; and

f

"convertibility" with safety,, and
for ab concerned,

pnn-

safe

terms

currencies
and we shall have de—
veloped a "machine" for handling

^criticism of Mr. Heathconclusion the that he
is
set forth

and

her

the other trading nations do
saTe Wlth their respective

the

currencies

just natuon

s

for

sary

-on

______

whether

failed to

ciples"

lookout for

in

available

money

of,

subject, I

rally

boom, but this does not seem to
Therefore, it appears as though the
indirect method,
currently in effect, is more likely to be used,
namely that of limiting the availability of credit for all concerned.
>

this
am

sure,

there could be direct action
by
order to slow down the
building
be in the cards at this time.

The

articles

is

concerned,; it seems now as though
the availability of mortgage credit is also
coming in for more than
a
passing amount of attention from the powers that be. To be

dozens

has

letters and

my

mgton

ei

of

definite weight

Ameiican dollar, and also
? redeem those pounds

world is readv "
worm is reaay.

My chief

of

columns

on

"value"
a

°! f[ne §old\ instead of in

is an underlying sympathy for
convertibility.
It
depends
on
whether each nation is willing to
consider itself a custodian of conme
the

redemption; let Great Britain,

likewise, fix the
pound in terms of

obligations of convertibilIt depends on whether there

vertibility. It depends

as

courtesy
your

-

e s

well; and hav¬
ing had the

sizable.

very

advocating return
Standard, not only for
Dollar, but for foreign cur-

the

market, there

obligations,

pecially in the

recent years

to the Gold

refunding vehicle in order to cut down the funds
which have been going into
mortgages.
is

basis,

matter wh6 may present them

no

for

the

ity.

Having spent considerable time
in

long-

a

to

firmly fix

the "value" of the dollar
at $35 a
fine ounce of
gold, and guarantee
to redeem its dollars on
that

Heatherington's article in the "Chronicle" on "What Converti¬
bility Means to Business."

appears

Treasury will offer

Let the .United States

Convertibility Means"

Frederick G. Shull, Connecticut State Chairman of
the Gold
Standard League, finds ground for criticism
of Donald F.

defensive J

credit-limiting operation of the monetary
authorities. Not only is the action of the stock market
being given
considerable attention, but also the
mortgage picture is being
watched very closely by
money market followers.
The movement
■to limit the
availability of bank credit by the Federal Reserve
now

why labor the question
any

■+

further:

Our

Board

—and

*

23

OFFICES: FIFTY-EIGHT PINE STREET

-

,yadsruhTelcinorhC 27, 1955
January

The Commercial and Financial

'(484)

Zi

in

this

With

base.

rate

value

mind, it would seem safer to esti¬
mate the company's future earn¬

Utility Securities'

Public

=

ings in the area of $1.50-$2, after
house-heating reaches a relatively

high saturation.

ELY

By OWEN

the

in

distribute

to

expects

Edison

Commonwealth

future

near

hold¬
North¬

virtually all of its remaining
ings of 5,236,030 shares of
its

stockholders,

own

stock to

Gas common

Illinois

ern

non¬

a

on

taxable basis, as soon as necessary

Com¬

Illinois

the

by

approval

Commission can be obtain¬

merce

Commonwealth has also made

ed,

to sell its entire
100,000
shares
of
Northern Illinois Gas 5% convert¬
arrangements

of

holdings

preferred stock to institutions
at $165 a share. Northern Illinois
Gas common, selling around 20, is
worth about $6.00
per
share of
ible

Commonwealth
47%
would be
Based on this

Commonwealth.
has

ex

selling recently at

been

and

the distribution

worth

41.

about

price, the current dividend rate
$1.80 would provide a yield

of
of

Commonwealth Edison earnings

Sept. 30

months ended

12

for the

about

$2.54, which included

were

equity earn¬

330 in dividends and

from Northern Illinois Gas,
$2.21 after the latter is

leaving

To this could be added
about 160 for the balance of the
rate
increase
granted
early in
separated.

1954, making $2.37.
While the
Chicago flood cost the company
about 40 a share and the recent
explosion of

big generator may

a

caused

also

have

and

above

loss

some

over

insurance, new gener¬

ating economies from added units
and
better
business in
the last

bring the 1954 earn¬
ings (excluding gas) up to $2.40
or more, it is estimated.
It would
seem
reasonable to expect that

quarter

may

future earnings
$2.75

might reach $2.50if
accomplished,

which,

might warrant some eventual in¬
crease in
the $1.80 dividend rate.
Illinois

Northern
nual

with

Gas

of

$61

revenues

an¬

million,

479,000 customers, in Cook

serves

the City of Chi¬
cago and in 16 other counties of
northern Illinois, with natural gas.
The company is getting off to a
very promising start in its career
as an independent company, with
County outside

Marvin Chandler
dent.

Capital

with

timated

around

(around

ratio

is

million)

$16

forma

earnings

for the calendar year

1954 are es¬
timated at slightly over $1. Some
time
ago
the management esti¬
mated potential earnings of $1.10
for 1955 and $1.20 for 1956, but it
now appears likely
that these es¬
timates

side
or

were

and

100.

conservative

be stepped

can

preferred

convertible into

by 50

up

stock

which will di¬

stock

common

becomes

million shares

one

stock,

common

lute

the

on

In February 1957 the $10,-

000,000
of

earnings

as

converted; however, it appears
probable that this dilution can be
offset
It

by

increasing earnings.

seems

pany

will

financing
the

unlikely that the com¬
have to do any equity
for

some

construction

probably
level

of

this

1958,
will

will

the present

at

million

a

year

substantial

a

be

While

years.

program

continue
about $15

through
of

part

provided

by cash
on
hand
plus depreciation and
retained earnings. Thus, it is like¬
ly that only about $25,000,000 new
money will be required through
1958

and

this

can

probably

raised through sale of senior

be

secu¬

rities without reducing the equity
ratio (which will be bolstered by
conversion of the

preferred stock,
probably in 1957).
The

•

Dome--the huge project

principal reason for the
anticipated upward trend of share
earnings is the huge demand for

bouse-heating service in the
pany's

area.-

It has

a

the experts have
unable to locate
since
the
job
is literally like
"hunting for a needle in a hay¬
stack." The leak is probably only
about
a
quarter of an inch in
diameter but the annual leakage
amounts to possibly one-tenth of
the gas now in storage and costs
the owners about $1,000 a day. A
which

leak,

a




been

far

thus

operating which
about half this lost gas

pilot plant is now
recaptures
after

and

further trial run this

a

to

appears

for

prospects

the

without

use

fairly active
in Northern Illinois Gas
the Midwest Stock Ex¬

market

both

been

has

There

on

a

and the New York overthe-counter
market.
However,
change

far

thus

stock

the

of the

only about one-sixth of
has been in the hands

public and the distribution

by Commonwealth Edison will in¬
the
supply
by approxi¬

crease

that,

will

stock

begin

basis.

distributed"

in

come

have excellent
converting
the

Morgan Re-elected By
Los

Herscher

the
as

Morgan, senior partner of

B.

Morgan & Co., has been re-elected
Chairman of the Governing Board
of the Los An¬

anticipated,

as

estimates.

tion

Exchange.

also

is

on

were

Osthaus,

Vice-Presi¬
dent

of

man

&

Bate-

Eichler

-

Co.; Phelps

Witter, part¬
of

ner

Dean

Witter

eral

the

&

Co.;
Lloyd C.

and

B. Morgan

a pro

31, 1953, it is estimated.
However, the Illinois Commission,
in granting the rate increase had
computed that it was allowing a
return of 5.85% on "fair value."

of

partner

Lester,

Ryons

election

took place at
bers'

annual

Mr.

of

served

who

has

because

but

been

an

1949,
Vice-Chairman in 1952;

became Chairman in

Chaiman

as

1954.

step for some time
of
the
relatively

However, the road has asked- the
ICC
for authority to issue
$65
million of Income bonds to refund

approximately that amount of 5%
preferred which is callable at 105.
It
has
also
requested that the
bonds be exempted from competi¬
tive bidding on the grounds that
the whole amount would not be
necessary

actual

to

if in the interim prior
redemption some of the
stock

preferred
into
on

the

convertible
share for share basis and
common
has
recently
sold

within

distance

Island

Rock

is

one

most

of the

conservatively
capitalized
rail¬
roads in the country. In reorgan¬

consummated
1948, non-equipment debt was
which

ization,
in

$300

around

from

cut

was

just

It

million.

$104

under
been

million

further reduced

has

to be¬

million, represented

$50

to

en¬

Obviously,
then, the contemplated increase in
debt by the issuance of up to $65
present any problem. The advant¬

the company and the com¬
mon stockholders could be three¬
fold.
With its strong credit posi¬
tion the road should be able to

ages to

bonds,

with contingent

even

interest,

fixed

than

rather
lower

He

of the impor¬

coupon

rat£ than the

at

a

Chairman

rate base used.

Commission

The

allowed

in

other

better

rate

than

cases

has

50-50

a

Thus, share
earnings could probably increase
substantially
over
a
period of
years, bearing in mind that the
original cost.

rate base will increase

million
ries

of

Illinois

a

year.

However,

regulatory
under

by $10-$15
memo¬

difficulties

the

-

caiitious

maintained

attitude'
with

should

respect to

the

Los

Angeles

fair

and

it

that

felt

once

is

by

been

retired

the

pects

should

warrant

of

tion

Lloyd

C. Young

curities

career

with

F.

E.

He

joined

In

1953

as

Hutton

began
a

Lester-Ryons
of

the

in

was

the
is not
converted prior to redemption, the
common
will
be protected from
the

that

future potential

Island

Rock

ferent

Etonian Chairman of

Monterey Oil Co.
Frederick
of

the

L.

Ehrman,

New

York

20

into

went

were

today

years

ago

than it
when it

elected

of

Monterey

of

He

has

been

a

director and
member
the

a

of

executive

committee
since the
pany

COm-

or-

was

ganized

in

1950.
Mr. Ehrman

has

his

spent

entire busi¬
career

ness

in

New

been

Brothers partner since

Lehman

a

Frederick L. Ehrman

York,

has

and

1941.

on

selization
As

a

has

and

new

Paine, Webber to
Admit J. R. Lowell Jr.

rolling

stock.

operating efficiency
increased
substantially.
In
result,

Lowell, Jr., will

Russell

James

general partner of Paine,
Webber,
Jackson
& Curtis, 25
Broad Street, New York City, on
the first of February, it was an¬

become

a

aging

Lowell

Mr.
New

banking frim.

odd

partners

the floor of the Ex¬

on

New York Stock

The New York Stock Exchange
has announced the following

even

close

to

Maintenance

revenues.

were

of

11%

in

Gersten & Eliasberg will be dis¬
solved

Feb.

1.

Benjamin
ber of the

McGuckin,

F.

Abraham
from

on

curities
136-16

<

business

from

101st Avenue.

*

offices

the

accruals, earnings
common
stock dipped to

$8.59.

In¬

For the like period of 1953

share

earnings

had

amounted to

se¬

at

$14.50. :

Presumably,

witnessed

some

.

December

improvement and

mem¬

Exxchange, will retire

from Brinton &

Company Jan. 31.

Rosen

will

withdraw

partnership in Silberberg &

Co. Jail. 31.

Sr. Order Clerks Elect
•

Francis

H.

Sullivan,

Senior

the

Wert-

of

elected President

Order

Clerks

Di¬

vision of the Association of Stock

Firms,

Exchange

at

the

annual

meeting of that organization.
He

programs

fairly well sustained so that,
with a sharp decline in Fed¬

firm

changes:

of

decline

Exchange

Weekly Firm Changes

heim & Co., was

a

He

change.

erty and yard improvements of
Rock Island
and
its connecting

yet but

of

firm

lot

will
join the four other Paine, Webber

mately two

as

Exchange asso¬

Doremus.

&

DeCoppet

1953, for instance, the transporta¬
ratio of 34.5% was approxi¬

Earnings for the full year 1954

member of the

a

the

with

ciated

is

Stock

York

coast-to-

the

of

partner

coast investment

tion

have not been released

W. Mason, man¬

nounced by Lloyd

succeeds

,

Morgan

E.

Mc-

Grath, of Tucker, Anthony & Co.
:

rCharles J. Pallesen, Jr.,

eral income tax

Lynbart Investors.

the

Oil

Company.

Chairman

the

Board

Large

bankruptcy.

spent during the bank¬

period and in subsequent
property improvements,
of terminals, die-

ruptcy
years

dilution.
an entirely dif¬

is

1942.

"

partner

investment

banking firm of Lehman Brothers,

to

preferred

proposition

some

was

Finally,

not.

is

dividend

extent

ed

of

dividend

pres¬

for the 11 months the road suffer¬

elected

pros¬

considera¬

liberal

more

a

earnings

attitude.

preferred dividend require¬
ment.
Secondly, there will be a
considerable
tax savings
as
the
interest wil be deductible before
Federal
income taxes while the

1927.

Association

Stock Exchange firms.

se¬

trader

& Co. in

Mr/ Young

Governor

his

floor

analysts
has

many

the preferred stock

roads.

Cross.

; JAMAICA, N. Y.—Lynbart
b^1
vestors Inc. is .conducting a

max¬

imum allowable earnings on a

of

ip

Democratic

regime prior to 1952 indicate that
a

Committee

Relations

of the American Red

chapter

weighting for reproduction

cost and

Public

tant

To date the

ent

points below the in¬
dustry average, whereas it had
of
the
Exchange from 1950
been
running about two and a
through 1952.
half points above the average in
Mr. Osthaus, a native of New
the prewar years.
The ratio did
York, has been in the securities
While more detailed study would
increase fairly sharply last year
field in Los Angeles since
1926.
be required to correlate the fig¬
but it is indicated that it still ran
He
joined Bateman, Eichler &
ures
exactly, this indicates that
appreciably below the Class I car¬
Co., in 1953 and became Vice- riers as a whole.
a
rate base about 17% in excess
Also, the traffic
President of the firm last year.
of original cost was allowed.
Re¬
picture has been getting brighter.
production cost as determined by Phelps Witter, who has been asso¬ Partly, this has reflected indus¬
ciated with Dean
Witter & Co.
the Commission is understood to
trialization of important parts of
since 1924, served as Governing
have been 45% in excess of orig¬
the service area and partly it has
Board Chairman of the Exchange
inal cost, hence it appears that re¬
been due to improvement in the
from 1949 through 1951. He is also
production cost received a weight
company's status with respect to
a
director
of
the
Los
Angeles the
of
over
one-third, and original
profitable
transcontinental
Chamber of Commerce, and Vice- traffic as the result of the
cost of less than two-thirds, in the
prop¬
July

better than last year.

management has followed notably
conservative
dividend
policies,

Income bonds will not

of

million

should

results

was

of par.

maintenance, the
1955
be
considerably

deferred

is

striking

least

at

running ahead of a year ago, and
wth no indication
of important

converted

were

It

common.

a

modernization

since

Governor

as

served

mem¬

meeting this week.

Morgan,

Exchange
he

&

Governors

new

the Exchange

a

probably topped $10.00 a share by
a
fair margin.
With traffic now

large amount involved it had been
considered possible that the job
would not all be done at one time.

sums

The

regulatory

original cost rate base as of

an

governing

board
Franz

Co.

condi¬

factor.

forma basis and giv¬
ing effect to the rate increase ef¬
fective in February) about 6.8%
(on

on

Young, gen¬

question. In the 12 months ended
Feb.
28, 1954 the company earn¬
ed

terms

year

Emerson

operate

three-

to

the

do the construc¬
a

cipating such

year

did not approach the
$16.07 realized in 1953 they

record

anti¬

been

had

circles

Financial

for the full

earnings

obviously

out¬

issues.

stock

preferred

standing

sell

Those elect¬
ed

Weather

tions would also be
There

will

Stock

geles

realize
of course, that

Dome

roads

while

rail¬

the growing list of
substituting debt for

joined

low

Calif. —Emer¬

LOS ANGELES,
son

management

Chicago, Rock Island & Pacific

of

tirely by the First 2%s.

Angeles Exchange

to

years

the

for consideration later on.

up

$5

It also assumes,

it.

Chicago, Rock Island & Pacific
Late last week the

now

of ample storage

5-7

no

change, although the matter may

equal to about $1.78 a
addition to the $1 now

some

has

listing

of

being earned.
However, it must
be emphasized that this is a max¬
imum estimate and that it might
take

under¬

the New York Stock Ex¬

ing about $26 million or $12.5 mil¬
after
income
taxes.
This

share

is

intention

on

lion

be

a

present

million storage
costs and perhaps $5 million for
increased carrying charges, leav¬

would

on

It

From this should be de¬

about

the
"when
on

stock

the summer sea¬
son, over half the annual supply
of gas must be sold to industry on
a "dump" or interruptible basis at
around 250 per mcf.
If sold for
space heating the price would be
around 800 or 850 per mcf.
Ap¬
plied to 60 million mcf, this would
mean
about
$36 million added
revenue.

as

soon

as

Commission, trading

capacity during

ducted

It is ex¬
approval

stood that the management

load into addition¬
earnings.
At present,

share

compare

new

house-heating
al

under 20. These figures
with
recent
industry
averages
(for gas retailers) of
4.8% and 15.2 times earnings.
slightly

is obtained from the Illinois Com¬

Over
pany

and

merce

anticipated.
the longer term the com¬

than

price around 20, the yield is
the price-earnings ratio

cent

4%

pected

the
probable success of this program,
application has
been made to
triple the operations at Herscher
Dome in time for the 1955-56 heat¬
ing season. Apart from the leak¬
age, the Dome is operating better
creased.

100 per share, the policy may be
conservative initially. At the re¬

mately 5,000,000 shares.

in¬

operation
will be
In
anticipation of

com¬

backlog of

about 112,000 customers now wait¬

being de¬

by Peoples Gas of Chi¬
cago and its affiliates.
Full use
nie bume has been delayed by
veloped

es¬

cash

The

48%.

Pro

Presi¬

is strong

equity

position

substantial.

new

structure

common

a

its

as

Herscher

the

in

facilities

age

the stor¬

greater use of

through

done

be

can

uns

ana

salvage

4.4%.

ings

service. The problem
is, therefore, to obtain the neces¬
sary
gas
during
the
heating
ing for this

it1"

to

respect

dend

Company

Northern Illinois Gas

policy as yet
percentage divi¬
payout. Payout currently is
approximately 80% and with the
high equity ratio directors would
probably feel warranted in con¬
tinuing a payout above the indus¬
try average around 73%, although
with earned surplus of less than
There is no settled

with

Commonwealth Edison Company

of De¬

Doremus, was

elected

Vice-President; Peter V.

Staple-

Coppet

ton,

of

&

Seskis

&

Wohlstetter,

Treasurer; and Joseph Deegan, of
Walters &

Peck, Secretary.

—

>

Volume 181

Number 5398

The Commercial and Financial Chronicle

...

(485)

25

Business and Finance Speaks Alter the Turn of the Year
Continued

from

the unit delivery decline

6

page

looking commitment to intensive technical development
programs in this era of supersonic aircraft.

President, Wabash Railroad Company
railroad

results

for

1954 have not

been

all

As

finally summarized, it is expected that the average rate
of return
will

net investment in Class I railroad

on

barely clear 3%.

1953 return

When

this

business since the thirties.

of

revenues

upturn

is

clear

that

the

railroads

were

held

road

managements

meet

defense

and

lost

serious

in the

be

to

that

to

be

encies which

K.

Atkinson

roadway

maintaining

of

national

a

recommendations

by

found in

the

the

for

Branch

portation industry

so

as

equal

1955 could truly

transportation

would

be

be

and

legislation

all

of

railroads

study now

carriers

common

ability

the

made

and

it

the

need

to

additional $400

progress.

dependent

known

spend

roading if the railroads
the tremendous

with

nation

our

and

standard

of

for

and

more

still

roads

are

that

increased

given

organization

is

long period

a

involving

industry

dependent

national

stability

we

foresee is based

tax dollars

on

do

general

a

the

better

future

continuous

outlook

sharp

for

ever

years

in

ernment

our

The rail¬

in transportation and will be
the public with

periods, inventories

other

standard of living

rising

are

tinues

1957.

total

Assuming

change in strength
aircraft procurement

B.

ized at whatever lesser level is

J.

L.

levels

Atwood

that

are

unit deliveries of military

services, coupled with
additional stabilizing

remo¬

actually began in 1954. This trend
continue in 1955, but it should not reduce
proportionately the industry's annual sales, employment
and airframe weight production trend.

bilization

program

is expected to

of the retail business, con¬

Consumer Credit

money

being spent for research to develop new

avenues

I

for

expansion and spending.

The possibilities

Moreover, more efficient ways of op¬

unlimited.

are

of competition

This has created new

beginning to bear fruit.

is

now

to

aircraft under the air

longer range effectiveness for larger sales and profits.
Most

important, normal conditions
phasize that the most valuable asset of
is

its

Offsetting the effects of continuing unit delivery de¬
are

the

erating make it necessary for all industries to keep up
with the trend to continue to get

tential

As

available.

new

their share of the

developments

occur,

po¬

build¬

ings, machinery and equipment must be constantly im¬
proved.
by

The new tax laws aid in providing the impetus

permitting

accelerated

viding

the

funds

ment.

The

financial

is

strong,

necessary

depreciation,
to

condition

pay

of

for

thereby

this

business

pro¬

develop¬

in

general

with sufficient working capital to cope with

the situation and

prior

appropriations, defense spending has about reached the
lowest

over

be in

a

position to finance expansion

levels for

the foreseeable future.




Additionally,

the long range trend.

Although 1955

published statements of responsible gov¬

ernment officials that exclusive of backlogs from

of

or

and

forcefully
any

in

women

determine

really

energy

em¬

organization
all positions
the

enterprise.

an

1955

its

and

men

ideas, loyalty,

At Armstrong, confidence to¬

the years

beyond is rooted in the belief

and

personnel will

career

give

Building

the

for

prospects

a

account

good

months

almost everywhere to be excellent.
recall any previous

to

of

ahead

are

held

In fact, it is difficult

time when there

was

more

opti¬

mism toward this

building

industry despite many record-breaking
since the end of World War II. The most

years

expanding

rapidly

building

new

mobile

and

population, and
to widen

market

well

beyond

most

previous

In addition, "fix-up" demands to repair
modernize existing buildings are moving up steadily,

approaching the volume of

now

are

especially

in

ahead

for

new

construc¬

residential

the

opportunities

very

are

field. Consequently,
encouraging over the

building

Armstrong

materials—i.e.,

acoustical materials, insulations,

however, that

toward

because

current
many

Numerous failures among

intensive

to

competition.

a careful perspective be
building activity and future

cross currents are
apparent.
builders and distributors point
Vacancies in older homes are

rising noticeably. New products and erection methods
are rapidl'y obsoleting older ones. Mass construction oper¬
ations and the "home mechanic" are changing material
demands.
Industrial building is less vigorous than com¬
mercial.

In

addition, the role of government cannot be

through changes in monetary
which can affect the level of building
operations at almost any time. In short, building pros¬
minimized,

particularly

pects are favorable, especially over the months just
ahead, but the only guarantee of success is still to be
found

"run-away"

safely said that

may
year,

we

nevertheless

I

as

believe

should approach it with

a

a

it

having the "right" products available, offering

Still higher after-tax incomes
basis

for

another

business.

While

materials

will

containers
for

most

in 1955 will provide the
for the packaging
competition between packaging

satisfactory
keen

year

persist, general expansion in the use of
provide enlarged sales opportunities

should

The strong demand for "visible" pack¬

types.

aging should strengthen glass container sales for many
and improved styling of containers generally will

uses,

create

a

steadily rising volume of new sales opportuni¬

ties during the

Revival
across

of

coming

year.

level

high

operations in

many

\

industries

the nation in recent months already has been re¬

flected in increased

sales of many Armstrong

industrial

in prospect for
such items as gaskets, friction materials, and adhesives
for the automobile and machinery industries; surface
finishes for furniture
and transportation equipment;
specialties.

and

felt

Larger shipments are now

fibrous

specialties for automotive and related

The key¬
1955 will
provide a quality-cost-saving answer to many of
specialized problems facing American industry.

uses;
note

and specialties for the textile industry.
for this part of the Armstrong line for

to

"boom"
can

be

In summary, we

for

general

anticipate

business.

a

While

good but challenging year
the national economy is

feeling of

Continued

conservative optimism.

the "right"

customers.

the

not be characterized

in

the "right" value and the "right" service to

be

cline

"people"—the

whose

prospects

outstanding is high in rela¬
to other years, it is conservative in relation to
income. Savings continue at a sound ratio.

The

nec¬

maintain these forces
against offsetting losses through ob¬
solescence and operational use.
We
believe that the volume of activity
in that latter replacement-mainte¬
nance
phase will be quite substan¬
tial, possibly large enough for the
industry to maintain a large frac¬
tion of operational and employment
now current.
The expected decline in
essary

as

maintained

Baer

Contrasted

whole.

products and improve facilities because

thereafter will presumably be stabil¬

moderate

when policies, products, and procedures must be
reappraised in the interest of greater near-term as well

It is essential,
Arthur

minimum of unemployment
somewhat in excess of last year. Al¬

demand

a

though

no

requirements,

a

achieved in

pace

and related items.

upward and with a

creates

tion

but at

and defense emergency.
Normal
highly competitive business, and a

floor and wall coverage*

the most important yardsticks

determining the trend

contingent upon con¬
tinuance of the government's sound
air remobilization plans of building
up the nation's air units gradually
to
programmed strength by June,
are

or

and credit policies,

Income, which is one of
for

period of relative stability.

war

means

market

factor.

readily apparent outlook for America's air¬
craft industry in 1955 is that it will continue through a
course,

of

years

months

generally are in a liquid

an

con¬

time

tion,

The most

prospects, of

recent

and

growth of the population, which creates

The continued

in

return to trends

a

"Normal" definitely means growth

and

a

as

expanding markets for goods and

ATWOOD

year

no

rate, rather than at the all-out record

the

condition.

President, North American Aviation, Inc.

Such

so,

normal," however, and certainly not

the fiscal policy,

stabilize the economy

to

fairly "normal"

a

trast to the expansionary boom years
of the war and earlier postwar period

expectations.

actions

certain

taking

ef¬

reasonable to expect 1955

levels prevailing before World War II.

tures,

credits,
unemployment insurance and agri¬
cultural
price supports which all

possible.
L.

is

regarding

greater

'greater availability of credit have combined

The gov¬

demand.

the

still

distribution

increased demands for modern housing and other struc¬

factors

with

line

and

and

significant development is that higher incomes, sharply
a

continuing
decline
in
spending, there are other

highs. The need for highways,
schools, churches, public buildings,
etc., is urgent and cannot be taken
care
of fast enough to bring them

to

J.

If

new

Surely,

new

in the economy a few years
pronounced or sustained change in'
general business lies immediately ahead. This is a "new

six

Fol¬

spending by State and local govern¬
ments and housing continue to set

safest, most dependable, and modern passenger and
transportation

past

upward

period ahead.
there has been

now

themselves.

which
tend
to
offset these expenditures.
Increased

growing need

transportation facilities.

the big job

com¬

and the next broad upsurge

ahead.

that

and

stabilizing

billion

in

the

though

defense

for rail¬

improvement
an

the

research;

seems

to be
C. J. Backstrand

ward

trend, the Christmas Season
was
a
record-breaker, leaving the economy strong in
all segments relating to a favorable

they are
increase freight
$1.6

It

business also

present constituted is almost
defense
expenditures.

as

on

stability.

lowing

population growth in prospect for

living, there will be

during

exacting

keen

organization is

our

manufacturing

ad¬

production is scheduled for this year.

atmosphere of the economy during
months leaves little doubt
concerning its

It

sub¬

on

fair chance.

a

in there trying their level best to serve

freight

equipment

The

tend

the

energy.

control

ARTHUR B. BAER

if

about

great

a

and

ficiencies.

success

million annually for road prop¬

There is

demands

improved

market

company

necessity. The obligations and responsibilities
industry under these conditions are most
exacting
and should be kept in mind at all
times by management
and shareowners alike.

compensatory rates, they would have both

and

than

More

products; expanded
selling, advertising, and promotion
activities; intensified product and

the

of the

gradual public

or

substantially

to

improvements.

erty

development in

and

various

annually for capital improvements in the next 10
an

and

from atomic

power

missile

Even

have

and

and stark

of decision af¬

year

developments

opportunity

an

volume with

and

research

to

field, this

The aircraft

sidy for survival.

the

solely
Since the

a

The relative

political decision between free enterprise in

a

ownership

given

addition

entirely

defici¬

the Govern¬

of

among

a

1955

past.

tentialities through a program of

not

are

aircraft.

supporting equipment. Production
quantities has begun on various items

de-regulate the trans¬

transportation with adequate profits,

The

activities

military

War

to bring about an opportunity

competition

the

prepared to make the most of its po¬

President, Stix, Baer and Fuller, St. Louis, Mo.

year

fecting

of

And,

years.

vanced weapons and
of service test

carriers.

The

Aviation's

production

II

schedules,

embarked upon a transitional phase after
of intensive research and
development

emergency

study will point out the need

for prompt and drastic changes to

and

In

Our

He has stated

the transportation

Executive

I am confident that

fair

to

War

production

American

of World

electric

most

a

designed to correct those policy

are

being made

for

Arthur

by him to the 84th Congress.

will

ment.

event

year

joint program with the AEC, we have started
construction on the experimental sodium
graphite reac¬
tor, one of the nation's five experimental reactors
planned for developing the technology of
generating

industry eagerly awaits President Eisen¬

promised

sent

it

the

by

Accordingly,

World

the

of

present

Under

future.

near

The railroad

hower's

in

just

year

consumer

is engaged as a prime
contractor to the Atomic Energy Commission in devel¬
oping nuclear reactors for various peaceful applications.

Undoubtedly, this would prove to be

mistake

employment increased last

served

the

tems.

Rail¬

adequately

larger sales opportunity in

search

for equipment

in

ground

property.

somewhat

industrial

II, it has also been engaged in re¬
and development of guided missiles, propulsion
systems, electro-mechanical devices and electronics sys¬

are

unable

were

quotas

and

markets

building materials, pack¬
specialties—promises to offer a
—

our

end

were

bare minimums.

aging,

principal

Company

on

of

confined

cut to the bone last year and ex¬
penditures for capital improvements

to

American

nuclear science
expenses

relative

three

Cork

10-year high, exceeded only by the peak produc¬
months

North

regulatory law.
operating

perceive

we

the

we expect
company's 1955 sales to at least equal 1954 results.

headed into another year of austerity
unless great changes are made in the
Railroad

North

basis

carloadings in the clos¬
ing weeks of 1954 and the brighter
outlook for general business in 1955,
it

itself,

of

petition, however, make it clear that
gains during the coming year for
any company will not be automatic.

a

tion

Re¬

railroad

in

American

North

Each

Armstrong

the

to

and

the

BACKSTRAND

Total

of 4.13% and with other

gardless

J.

fluctuations in the company's employment last year were
the smallest, percentage-wise, in the company's history.

years, it will mark 1954 as
of the worst years for the rail¬

road

for

stability in view of present schedules and in the fact that

property

compared with the

is

recent
one

C.

President, Armstrong Cork Company

siles and rocket engines and the government's forward-

ARTHUR K. ATKINSON

While the

is expected to be offset by the

increased research and production effort for guided mis¬

on

page

26

26

The Commercial and Financial Chronicle...

(486)

individual

to

more

upward course of broad economic

than the

success

company

developments.

BAIRD

BRUCE

President,
The
with

Asia

additional

in

spending

extensive

of

Company

Specialties

United

continuation

Europe

to

follow, the inflation of an unbalanced
budget through the remainder of President Eisenhower's
term, and the increasing population indicate that 1955
will match or pass the 1954 national

Savings & Trust Company,

This

Washington, D. C.

than

the country which have direct
banking environment have on the

Conditions throughout

bearing

own

our

on

from

shift

gressional level will interfer with
the Keynesian Theory of economics.
Indeed, this theory is being taught

very

ing that

world

in

a

of

armed

function normally
peace or at least free

can

we

at

passed

have

We

conflict.

the

in

majority of the college eco¬

of artificial
controls and rationing into the sun¬

nomic

light of free enterprise, into tne re¬
laxed
functioning of the laws of

statesman

and
demand
without en¬
countering the depression so freely

his

days

dark

the

of

out

Take

of rent con¬
necessary expedi¬

the single case

trols enacted

as

to

by

landlords

shortage.

a

abnormal

off

ward

ent

As

demands

during
the housing
its
by-product the

frozen
in
their position despite increasing costs
in taxes and operating overhead, while buildings were
given a minimum of maintenance and new construction
property

furnished little incentive.

was

trols would

John T. Beatty

It seemed that these con¬

and

they

removed, what has been the result?

New

building has progressed rapidly, landlords have
been obliged to modernize their buildings to meet com¬

petition and

the

have

tenants

market in which to deal and

place to place

as

appears

must conclude

we

and

we

unrestricted

the

are

now

are

a

completely free
shift from

at liberty to

their best advantage. So
well off to be living in a free
to

removed

teaching

incentive

some

likewise

interest

to
on

is

being

reduction

of

measure

pleasing

motive

in

the

restored
It

burden.

tax

by

ing reduction in government spending and in promoting
economy in government operations.
Certainly it is the
not only here

consensus

throughout
1955 to

the

be

one

country

the financial

political force.

socialist.

parties

we

As
can

of laws:

public and the bankers, respectively, in this

There is still

a

great lack of understanding of the

banking facilities readily available to all who seek them.

services

for

which

the

banks

and

are

have

potential customer who
fulfillment.

It is

and

seeks its

the fault of the banks who

have not

knows his need

one

for labor.

GEORGE

"prosperous"

a

Unless the

laws,

our

year.

BEITZEL

B.

The

chemical

industry

eventual leveling

equal
of

in

1954

1953.

mistic

reconciled

a

year

ago

to

will approach and may

—

the record-setting $19,865 billion sales
important, the chemical industry is opti¬

More
about

the

billion

a

—

off of sales

future.

and

will

Industry
facilities

total

more

dollars,

survey

conducted

according to
by the Manufac¬

turing

Chemists'

Association.

our

rials.

These

Ex¬

more

jobs,

Federal
more

for

tax

for

and

Geor»e B- Beitzel

allied

products through last September totaled an esti¬
mated $15,185 billion against $15,122 billion for the same
period in 1953. Thus the prediction is warranted that
'54 sales will

are

the

needs

service-rendering profession and that

a

customer

this message

If

us.

equally

as

much

the

as

could be gotten

we

customer

across

as

it

should and must be, much important business which now
goes

elsewhere would be channeled along normal bank¬

closely approximate the industry's record

Based on six-month figures from
government sources,
profits after taxes will probably parallel the 1953 total
of $1,053 billion.
Also, according to the government,
cash dividends paid by the chemicals and allied
products
industries were $325 million for the first six months of
1954, or 12.5% of all cash dividends paid by manufac¬

turing industries.

American

Bankers

Association,

President of the First National Bank of
a

worthy

J.

Homer

Livingston,

Chicago.

He is

to the many distinguished men who

successor

have held this office in the past and we feel sure he will
devote

large part of his time to informing

a

customers of the

potential

availability of banking services to meet

their needs and the need of the banks to

EUGENE

serve

them.

C. BAUER

trend

hindered

the year 1955

by

labor

Safety

America.

should be

one

its

over

ment

in

will enhance

chases.

car

The reported

sales

way

construction

very

billion, most of it, under contract with chemical com¬
This construction, which includes a number of
AEC contracts, includes projects now underway which

panies.

three

and
completed before late 1956.
years

all

ago

several of

our

program

will

some

which

will

not

be

are

areas

are

represented

in

this

in

new

construction

during the past 12 months.

totaling an estimated $21.8 million are
construction; six other projects to cost approxi¬
mately $32.2 million are definitely planned.
Top ranking New Jersey added $40.7 million in new
construction during the same period and has allocated
another $27.4 million for the next three years.

be

projects

Research and Development
Eugene C. Bauer

50%

expected to be slightly under the $59.2 million

may be somewhat higher,
liquidation of certain capital assets
no longer required by the company.
Important developments during the past year included
another step in the company's long-range decentraliza¬
tion plan which resulted in the establishment of two
new
independent organizational units — the Industrial
Chemicals and Chemical Specialties Divisions.
Further
diversification of activity will be achieved early in the
current year when Pennsalt will gain an established
position in the fertilizer industry with the acquisition
of I. P. Thomas & Son Company, Camden, N. J.
Pur¬
chase of the patents of the Gilron Products Company,
Cleveland, has added important items to Pennsalt's Fosbond line of metal processing chemicals.
Meanwhile, Pennsalt's plant expansion program con¬
tinued at a steady rate during 1954.
A new benzine
hexachloride unit was completed at Calvert City, Ky.;
modern ferric chloride and anhydrous ammonia plants

in

clue

part to the

on

stream

at

Wyandotte, Mich., where facilities
persulphates were substantially in¬
capacity was added at Tacoma,
construction included chemical specialties

production

of

Muriatic
New

acid

Ohio, and Chicago Heights, 111.,
operation in January and February, re¬

Delaware,
for

significant than these impressive measures
of growth, are the increasing contributions chemistry is
making to the health, welfare and security of the coun¬
try.
Although chemicals are seldom visibly a part of
our daily life, like steel and oil, they are highly essen¬
tial to virtually every manufactured item we use. Steel
or
oil could not be processed without chemicals, and
without the improvements that have come about through
chemical research our foods, drugs, clothing and build¬
more

ing materials
quality.

would

be

■

OLE

expensive and

more

of poor

.

BERG, Jr.

President, The British American Oil Co., Limited
Canadian

.This

economy

was

a

the last

picture during

what

the

Research and
progress

—

development

accounts for

an

—

cornerstone of chemical

annual average expenditure

uneven

overall

in

1954

was

certain

effect

at

the

some-

but
year-end

areas,

a sound, strongly based econ¬
Future expansion was assured,
although the rate of growth showed
evidence of declining from the highs
established in preceding years. Bar¬

of

was

ring a repetition of the poor crops
experienced in 1954, the Gross Na¬
tional Product should be higher in
and

match, at least, the record
Capital investment may be
expected to maintain or exceed its
high level and will be a strong fac¬
tor in the maintenance of peak levels
of industrial activity and employ¬
of

under

units.




geographic

expansion

Five

beneficial to the operations of

than

omy.

1954.
Pennsylvania, currently fifth
in national chemical industry rankings, completed $48.8

pur¬

more

reported in 1953, net earnings

Government financed chemical construction represents
additional
investments
totaling approximately $3,360

est

sizable high¬

of

The

While

loadings,

materially railroad

improvement

Pennsalt's performance in 1954 again followed closely
the pattern of the chemical industry as a whole.
While

During the past 12 months, as reported by MCA, the
industry has completed privately financed
projects representing an investment of
more than
$1,216 billion, and has already under con¬
struction or definitely planned another $1,514 billion to
be completed within the next three years.
'

million in
should follow increased

an

1935-39 average.

construction

expansion, the south and southwest reported the great¬

railroad net income, which

shown

continues among the safest in
eighth among 40 major
frequency rate, the industry as a

ranked

accident

in

has

whole

began.

Pennsylvania and New Jersey Show Gains

of action

Presently

industries

chemical

issues,

besides keenly competitive. Improve¬

all

chemical industry

The

1955

Unless

$79.93 against
Average weekly

was

than matched the generally higher wage
manufacturing industries.
The average

more

for

September, 1954,
month in 1953.

same

capital outlay per production worker in the chemical
industry is now in excess of $25,000. In certain new,
highly mechanized plants, the capital investment per
operating employee is as much as $100,000.

that marked

started

President, Poor and Company

earnings

for

the

for

$77.83

and women, including 527,000 pro¬
Average weekly earnings for hourly-

men

workers.

workers

The

Expansion

fortunate this year to have as President of the

are

780,000

duction

industry supplies direct employment to

was highly buoyant as 1955
continuation of the upward trend
quarter of 1954 and indicated the
outlook for the coming year to be generally favorable.

ing lines with benefits to all.
We

for over-all indus¬

pace

account for about 25%
synthetic industrial organic

now

all

Chemical Progress

high in 1953.

we

about

But

Sales, Profits and Dividends
chemicals

15

spectively.

local

for

the j last

pounds.

and

figures

of

over

of chemical industry pro¬

Employment
The chemical

at
scheduled

governments and
improved products
consuming public.

Sales

They

value

billion

plants

mean

returns

or

group with an annual value in excess of
Plastics production in 1954 will about match

1953's 2.8

Wash.

mate¬

facilities also

more

and

new

the

and

wages

planned

chemicals—a

$4 billion.

went

in payments

economy

new

in the public mind and have not said in plain language

that

sales

the

boost

fully dispelled the vagueness and confusion still existing

need

of

introduced

setting the

are

try product growth.

creased.

to

products

Plastics

for

construction,

million

.•

for about 20%

account

duction.

penditure of private capital on ex¬
pansion
indicated * a
tremendous
for

$38.1

Pennsalt Continues to Grow

he^rt

President, Pennsylvania Salt Manufacturing Company

been

completely equipped to render. This is not the fault of the

change in the
and political

Every political leader is at

Nevertheless, 1955 will be

and util¬

Many other channels have been employed
ized

a

economics

unions can be brought under the anti-trust
Republic will become only a statistic.

than

potentiality of the banking industry. Greater emphasis
be placed on the education and re-education of

introduce
of

for business and

one

expect the year

must

must support the private

The country cannot long exist under two sets

emerge.

1954

may

colleges,

they continue to move into the political
expect a labor-socialist government to

in

we

the

another

Products

Significantly,

lives of the institutions.

completed

Advertising to the banking profession in which our
naturally lies, it is pleasing to
note what progress has been made in the education of
the public and in re-educating ourselves to the full

field.

can

type

plants

and prosperity.

pensioners,

Last November the unions finally became a cohesive,

of

that

the

which, practiced by the past several generations
executives, was responsible for the growth of the
corporations to such position as to permit them to save

expansion

most immediate interest

the general

the

at the seat of government but

of stability

the

of

is

note that there is being revived a lively
the part of the public in seeking a continu¬

to

science

control and interference.
The

point

are

toward

government

from

economy

hospitals

But

colleges, perhaps they

smart

areas.

were

politician, the

only

the seriousness of the constant

more

devaluation.

If the corporations feel they

a

Since

need

fatally in the pincers.
They have
their hats in hand either to the all-serving government
or
to the corporations.

indefinitely in this and other

be continued

so-called critical

were

owners

professor, the

with

under construction.

rated

prosperity and full employment, and
case is made.
Few question any

dollar

predicted.

courses.

The

supply

Bruce Baird

Foreign

the

Administration and for¬

Operations

toward a peacetime basis with
slight dislocations and are find¬

wartime

a

artificial

more

of

because

eign military spending and the ex¬
cessive income taxes.
But no poli¬
tician at the Administration or Con¬

We have seen our economy

whole been most favorable.

prosperity is

sound

million,

$19.2

years

income level.

President, National

New laboratory construction com¬
12-month period ending Oct. 31 showed
investment in laboratory facilities totaling

during

pleted

expected to be moderately higher during the months
ahead, individual ingenuity and effort promise to con¬
tribute

of about $300,000,000.

T. BEATTY

JOHN

Continued from page 25

Thursday, January 27, 1955

1953.

The

ment.

adjustment to

a

Ole

Berg, Jr.

buyers'

a
sellers' market is far from complete in
of the Canadian economy, and competition
will undoubtedly intensify during the year.
Reduced
production costs will be a major target and should re¬
sult in stepped-up efforts to increase output, also in

market
many

the

from

areas

development of technological improvements to

en¬

hance the producers' market positions.
The Canadian petroleum industry shares the encour¬
aging prospects for 1955. Exploration and development
activity show no signs of abatement, spurred by the
continuing success of finding oil in Western Canada at

Number 5398... The Commercial and Financial Chronicle

Volume 181

(487)

economic

the rate of approximately one discovery every two days.

stability., .We have gone
achieving this goal.

The number of

long

a

toward

way

completions in Saskatchewan and Mani¬
toba, increased 14% and 200% respectively in 1954, is
expected to grow steadily. The resumption of develop-;
ment drilling in the Pembina field, estimated to be Can¬

Although Arizona is considered to be sparsely popu¬
lated, our market is surprisingly concentrated. Half of
our
population (about 500,000 people) are located in

ada's

the

activity.

steady rate of

a

The prediction for
in Western

Tucson

is that the number of well completions

1955

Canada will be
Within the

next

'One of

18

months, around $100 million will
refinery throughput capacity to
more than 600,000 barrels daily.
This will be sufficient
to handle expected increase in domestic demand which
jumped approximately 7% in 1954, to 525,000 b/d, with
a similar increase anticipated
for 1955.
This year and 1956 may well be the critical period in
the development of Canada's natural gas resources. With
be

to

guishing

the

is playing in

in demand

expect

During
duced

as

the

R

latter

part

inventories

Phoenix,

Arizona

Manufacturing in Arizona is

began

to

Increased

re- -

Last

Bank,

extensive

the

steel

ther

and

we

reaching
about

year

will
of

a

industries

in

came

several of

about
the

into

40

state

10%,

will

result

in

increased

levels,

Walter

'

large

K. D.niaoii

making
*

We

recent

In

years

Federal

Government

increasingly important

an

As taxpayers we

look

upon

expenditures

source

The

the

? The

of

presence

be

may

excess

ev-

pro¬

capacity

substan¬

will

industry's record of past performance for

assurance

statesmanship.

great
is

significance
sound

a

are

this fact with mixed feelings

favorable.

An increas¬

supplied from petroleum in the foreseeable future.
its

to

government project is the electronic prov¬
It is reported that during
there about 8,000 officers
and enlisted men, and about 1,500 civilian personnel. A <

list

large number of these people, both civilian and military,
will be scientists and highly trained technical people.

for

and

new

development

product

continue

so

>.

Retail sales in Arizona for each of the last three years

billion dollars, and will doubtless ex¬
slightly for the year 1955, showing little
change from 1954.
a

ceed this figure

Arizona

population

reached

million

during 1954.
During the last four years our gain in population has
averaged 60,000 a year. Nineteen fifty-five will probably '
show a continued rise of about this number, reaching
1

of

programs

petroleum

derivatives

than two thousand.

more

South

moving
and

*

leading

the

in

nation

rate

of

bank

deposit

growth for several years, Arizona had to yield in 1953
to Nevada which, in that year, had a percentage growth
of 38% against Arizona's 35.7%.
The gain in Arizona'
deposits for 1954 will run about 8%, bringing our total
deposit figure to about $700,000,000.
In bank capital

i

growth, Arizona has continued to lead
years, and will continue to do so
for the year just ended. As a result, our banks are in'
stronger position than ever before. Our ratio of capital
to deposits will at this year-end probably be higher
than in any of the Western states.
the

nation

In

for

many

rapidly growing state there is a great need for
the loan demand upon our banks
is continuously heavy.
Earnings, therefore, are always
high compared to the earnings in states in a less favor-,
able position.
*
our

additional capital and

do

The

doubled
in

World

since

1954 of

one

War

II,

and

reached

billion, 400 million dollars.

a

more

than

new

are

esti¬

mating that this figure will show about the same total
for next year, due to the probability that the pluses and
minuses

will

about

balance

a

long

time

our

state

which

already

numbers

into

dependent

upon

two

major-products—cotton-and copper. This was an unsatis¬
factory situation. For two decades we have been work¬
ing for greater economic diversification and greater-




American

families

can

with only 3.4 million

cars,

of great

progress

is taking place.
established, with demand
labor. Many industries are
bringing some of their people

being

the

area,

many trainees
choose to migrate.

not

is

substitute

to

replace

adding to its beef and

for

This

cotton

releases

and

many

other

the

cattle

raising

Federally

workers

from

workers

as

restricted

the

farm

to

into the

move

factory. All these changes are improving
educational, cultural, and economic levels of these

the

people

and

standards

are

pulling them closer to the national
sadly deficient in most Southern

heretofore

states.

structive

Eisenhower's

cooperation

in

nomics

great decision to seek
terms of evolving world

con¬

eco¬

may make 1955 one of our most historic
years.
The economics of Atom Power
pitted against the statism
of Soviet
ideologies may prove far more effective as a
weapon with which to produce
peace than stockpiling'
nuclear weapons with which to

both

destroy the people of
begin to reflect this outcome,

If 1955 should

areas.

can

welcome it

as

a

in which it is

year

good to

alive.

be

HARLLEE BRANCH,

be spent in the

and

to

The Georgia Power
Company is expecting
good year in 1955 and, in line with this
more

comes

on

continues to grow.

mand

avoid " waste

firms

must

At the

destructive

and

same

top of expenditures of $270,00,000 for the nine
years, 1946 through 1954.
The

the'

Re¬

during

homes,

the

sibilities,

the burden of

carry

national

defense

economic health in
borne

trust

involved.
however

of

an

excess

atmosphere of suspicion and dis¬

well-intentioned,
decisions

mechanism

the

of

may

which

lead

could

to

legislative

impair

industry's supply-demand

and

delicate

the

and

earn¬

continuance of public utility

dependent gas producers
depletion

age

attention

or

allowance,

again

this

year,

long range consequences.

controls

over

in¬

elimination of the percent¬

scheduled
could

have

for

Congressional

the most

Similarly, failure to

serious
provide

adequate solution to the problem of excessive imports

could

right

have

destructive

answers

and

far-reaching

effects.

to these and many other difficult questions

vitally affecting the industry, can only be found
basis of

a

full

The

on

the

understanding of all the facts and patient

I

have

of

every

the

complex issues involved.

confidence that in the long

run

proper

to

the

additional

21,000

commercial

small

customer

trend
Harllee

Branch,

Jr.

during
1953.

over

new

establish¬

industries, and 40

It

toward

average residen¬
used 3,190 kilowatt-

the
is

year,

7%

a

more

gain

that

expected

complete

this

"elec¬

trical living" will continue and that
a similar increase in KWH
consump¬

tion will be recorded again in 1955.
Less than
a

a

year

ago the

throughout

survey

the

Sales Department conducted

Company's

service

area

to

determine the percentages of electrical
appliance satura¬
tion.
Some 10,500 residential customers, a good cross-

section,

ings-investment relationships.

These

6%

23,000

Company's

hours

ignorance of the nature of the problems

There is serious danger that uninformed zeal,

executive

Thus,

tial

essential

its

gained

connected

included

and

The

capacity in the in¬

maintain

and

additional

large industries.

industry cannot discharge its supply respon¬

of

terests

State,

An

of

about

serves

the

lines.

1,960

ments

which

were

customers

yields in accordance with the realities of the market.
But

of

Company's

individual

kilowatt-hour sales

1954.

customers

de¬

adjust their

and

total

Company,

four-fifths

time, in order to

competition,

establish'operating levels

as

another

expectation, will

than $32,000,000
expanding its facilities. This

search

provide better products in larger volume

Jr.

President, Georgia Power Company

com¬

out.
was

million

industrialization

are

transport facilities will be modernized and

consideration

i For

be

could

cars

semi-skilled

replaced with larger, more efficient units to reduce costs

high

We

and

South

crops.

spend

oil deposits to maintain adequate reserves.

new

fineries and

an

Total income of individuals in Arizona has

.

million

companies
accomplishing this end.

looking for

who

a

much

plants

new

re¬

to im¬

Under the stress of keen

petition, tremendous sums v/ill

perhaps 1,050,000 by the end of 1955.
After

11

inven¬

a

finance

and

year

the

Alert

its

the quality of products and to add to the growing

prove

newest

industry will

opportunities, the

search

year.

exceeded

that

perhaps need two
equipped.

two

own

car

ing proportion of the world's rising energy needs will be

ing ground at Fort Huachuca.

have

banks

and

the year there will be located

;

if

now

technique for

estimated

In

we

Long range growth factors

f

of income.

Thomas C. Boushall

high monthly outlays for a new or
assures
large consumption off the
A possible road block here is the

lines.

President

excess

that it will approach these problems with determination
and

purchasing
equipment.

home

also

car

for skilled

of

productive

finance

families to those that

Many

to Vcome

and

of

in the automotive field.

consump¬

capacity is no novelty in the
oil industry.
This condition was typical of the years
just preceding World War II.
Even with the added
complexities of a world-wide surplus, we may rely on

but agree that if the taxpayers' money must
is a good idea for it to be spent in Arizona.
These expenditures now amount to a quarter billion
a

use

barrels

time

some

be spent, it
*

greater

a

fuel.

imports

M

between labor and management over
conditions of pay and the annual
v/age issue
interrupt the manufacture and distribution of so great
a number of
cars, 1955 can be a

tially exceed demand.

df emotion,

dollars

possible

increases in Middle East crude oil output have cut
severely into Western Hemisphere export markets. For

ufacturing enterprises with payrolls of about $110 million.
i

making

mous

pro¬

and

have about 27,000

have become

of

asphalt products in the
of course, this program

capacity at both crude oil and refined products
created in response to the interests of national

million

estimated figures of total production too low.
persons employed in man¬

our

now

effect

run,

foreign oil, expected to exceed one
daily in 1955. The great recent expan¬
sion of petroleum refining capacity in Europe and enor¬

and

employment.
AiResearch, Motorola, Hughes Air¬
are among these.
We know of
three
large corporations that will
begin production in the coming year,
with estimated employment of about
3,000.
These factors may result in

'

for

A

mm:

terms and

defense, will continue to overshadow the markets. These
problems are aggravated by the persistent pressure of

new

craft

i"

demand

*.

*****

Unless conflicts

R. S. Blazer

fur¬

a

ma¬

Previous

questioned ability to keep his used
from choking new car sales.
Adding

now

vehicles, accompanied by increased

motor

ductive

largest manufacturing
increasing their facilities

are

which

It

mills.

Conditions in the industry, nevertheless,
pected to remain severely competitive. The

our

plants

duction

1954

the

have

of

to

In the long

year.

motor

tion

slight downward trend.

However,

stimulus

current

estimating that in the
it may again show a

are

coming

down

of

Government

provide

may

a

otherwise

production

construction

states

larger

a

itself

dealers'

fuel

highway

the

of

in

stimulus.

dollars

to

the

afford

for

is

teachers,

of

model

evolve

and

1953 of $312 million.

was

additional

come

mill

oil

4,000,000 babies

over

prospects

1955

high birth rates since 1946 are now
requiring vast additions to school
buildings, recruiting of thousands of

plying

a

it

year

and
in

economic

The
higher level of
operations is of particular
importance to Midwest refiners sup¬

our

peak figure in

birth of

1954

late

markets.

fuel

6,000,000

con-

purchase
incredibly easy terms seems to
be adequately available.
Lengthening terms for car purchase to over¬

ac¬

strengthened heating and

coupled with other

are

The

more

oil

of

on

their

assert

manufacture

economy

tributive aspects.

tory

steel

-

it has increased ten-fold,

ing

factors

Credit

within

industrial

the prospect of the

and

millions

propor¬

factors

of

would seem to
adequate stimulus for exceed¬
1954
when
these
two
major

have

have

fairly recent addition
economy. Before World War II it was a negligible
factor as a source of income, amounting to an average
of about $30 million in 1939 and 1940.
Since that time
to

growth

1954

of

were "

manageable

corrective

industry

The

Valley National

1953.

over

the

all the elements

successful, peaceful activity, at least in this
With 1,250,000 housing starts confidently pre¬

tne

tivity and somewhat colder weather

BIMSON

Board,

in

for

the past year.

program of the Federal
of

demand

increase of about

over

more

influence.

Canada's economic growth.

WALTER
Chairman

-

dicted

terial

substantially

are

year

significant reduction
that in 1955

a

an

the

to

tions,
the

those engaged in the industry to expand sound economic
lines and thbreby increase the already vital role pe¬
troleum

country.

in

BLAZER

appears

can

burdensome

years.
determination of

a

now

4%

resources

n^iaturity of outlook and

a

It

we

[feature of the industry in the past two

It denotes

represented

rate.

view in the development
has been the distin¬

long-term

S.

President, Ashland Oil & Refining Co.

This

comparatively young industry. The solution of the
problem will certainly require long-range thinking and
planning. '*■
petroleum

the

thus

of

year

cars,

petroleum products increased only about 2%

the

Canad^s

are

prospects of the oil industry
improved for the year ahead.
Last

the rich markets of Ontario and Quebec.

Evidence. «f

in

can

or

The

Additional markets, both for Canadian crude and nat¬
ural gas, continue to be the most pressing problem for

>

reside

spots.

are not
subject
cyclical fluctuations and, so far at least,
not taxable either as property or as income.

V

increasing at the rate of 1.5 trillion cubic feet
annually, the future of the natural gas industry may
be decided, to a great extent, by the degree of success
attending the establishment and operation of the TransCanada pipe line. The 2,200-mile line is planned to pipe

of

25%

things to sell,

BOUSHALL

-Nineteen fifty-five seems to hold
a

number

reserves

gas to

have

Sunshine and beautiful vistas

R.

-

Alberta

who

to

most valuable and indestructible resources

our

depletion

they

Those

20%

of this market in just two

is climate,

increase

to

spent

Another

area.

area.

75%

cover

2,200.

over

Phoenix

C.

President, The Bank of Virginia, Richmond, Va.

.

greatest single oil reserve, will enable Alberta to

maintain

THOMAS

27

were

interviewed.

It

was

found

that

electric

range saturation was

only 40%; refrigerator, 86.9; water
heater, 27.9; and clothes washer (automatic and conven¬
tional), 57.8. Television receiver saturation was 51.2%,
but clothes dryer saturation was
2.17; food

freezer, 8.41;
dishwasher, 2.58 and garbage disposal, 1.35. These fig¬
ures
indicate a vast market remaining for active mer¬
chandisers.

Industry is burgeoning in Georgia.
nual

sales

than

50%

to

industrial

in the past

10

customers
years

The company's

have

increased

an¬

more

and have quadrupled in

20 years.
It
is
expected more new industries will come to
Georgia in 1955, and many existing industries will ex¬
pand.
The following large new industries were com¬

pleted, under construction,

or

in the blue print stage in

solutions will be worked out and that the industry will
continue its

healthy progress.

Continued

on

page

28

23

The Commercial and Financial Chronicle

(438)

Continued

jrom

CARL

27

page

President

Westjnghouse Electric

Time Corporation,

General

1954-

D.

and

Peninsular

Plant, Blue Plate Foods, International Latex
Cabin Crafts (chenille products) and Rohr
Aircraft Corporation (engine modification plant).
Georgia's progress, electrically and industrially, is in
with that of the Southeastern region as a whole.

which

It

Last year the member companies
added 1.7 million kilowatts of generating capacity. Con¬
will

that

struction

well

add

over

million

a

more

is

will

Here's how the first 11 months of 1954 compared with

corresponding period of the record year of 1953 in
Georgia: new car sales increased 3.6%; department store
sales, 1%; residential construction contracts, 23%; and
household appliance store sales, 5%.
This

during

was

drastically by

when farm income

a year

slashed

was

of the most disastrous droughts in the

one

history of the State.
The year

1955, according to all signs, will be
continuing prosperity.
\

of

year

a

in

are

Insurance

and the continued de¬
of higher living stand¬
resulting in demand for ad¬
ditional
telephones
should
cause
stable
employment and continued
Carl D. Brorein
expansion through 1955 in the tele¬
phone industry. In the Florida area,
I anticipate greater expansion to meet new service de¬
industry

mands than in the past

Farm

years.

elements

ination

is

There

subject to determ¬

evaluation

or

the harvest

insurance

for

not

are

in

advance

of

season.

that

under

taken into consideration. The service

right kind of conditions the com¬
ing year could be one showing an

facilities available to the public and

the

broadened

coverages

are

Government

the

qualifications of those perform¬
ing them meet the highest standards

dicting

yet attained.

income.

At

no

of

in

for

is

recognized

now

to

T.

John

Brown

the

to

conclusion

best

that

one

record as the greatest
the insurance industry.
A.

hence,

year

go on

ROY

year

to

tools

than

retail

and

at

trade

attained

levels

the

in

in

is

affected

curement

there

are

many

of

branches of service.

steel

of

production

products

government's

farm

well

into

1955.

Demand

local

exceeds

for

availability.

some

The

in the increased

being experienced in other areas as has.the
rubber industry. From an overall
standpoint, manufac¬
turing in this area should continue at about the same

be

may

below

1954

but

still

our

by

most

good

production

should

be

on

a

basis

at

least

Competition within the in¬
dustry is very keen and is being expressed in the con¬

facilities designed
ficiency of operations.
new

Overall, loan

demand

in

all

to

increase the ef¬

categories,

commercial,

instalment,

and real estate, should remain
fairly strong in
Interest rates, which reflect
Treasury and Federal
Reserve actions, should remain
1955.

at

about

levels.
From all
as

or

it

was

a

year

improved

ago.

two

to

reasonable

a

Should

energy

this

re¬

would

sources

Inevitably, that would

selling
as

in

gas

interstate

com¬

natural gas company for

a

clause

that

rendering its

the

Supreme Court

split-decision

powered the Federal Power Commission to
diction over independent

which

assume

em¬

juris¬

producers and gatherers of gas.
Legislation enacted by Congress to clear
up this situa¬
tion is the only
possible solution. It is imperative that

will

legislation be enacted,
be well

the oil and gas industry

or

the way to

on

indications, the

year

prevailing

1955 should be

possibly somewhat better than




ized basic

becoming the first

a

G.

program

prevail

Drug

is trend

u

any

Considering all these factors

substantial

activity are able to stimulate the market.
long range outlook is, of course, favorable.

&

Gas

ity,

will not solve the

which

excess

at

question

producing

year-end

stood

of

this

problem.

It

seems

be
is

reduced
not

to

if

of

incur

further

that

show
are

G.

B.

Burrus

1954.

as

good

represents

burden

a

levels

are

Inventories
near

pres-

increase in the

outlets,

there will

The

cost

keeping prices at a low level.
doing business will continue to increase

of

moderately. The need for more cash for
working capital
will again be affected
by accelerated Federal Income
Tax payments in the first half of
1955, and by the neces¬
sity of opening new stores to take care of a
moving and
expanding population.
competitive

situation

efficiency in sales effort
advertising
will

be

and

better

will

and

promotions.

because of

a

necessitate

greater

increased

expenditures for

Service

to

the

customer

continuing improvement in

training of personnel.

President, Union Bag & Paper Corporation
Production

to

seems

have

turned

upward

in

most

segments of industry. While it

has only leveled out in
machinery and equipment industries, new orders in
these industries have shown
improvement. Consequently
it seems that we are
beginning a
the

upward

cycle

which

would

move

much

a

markets
war.

Korean

resulting from

This

that

means

something like 10-15% of industrial
capacity which is obsolete and worth
only scrap value, is apt to be elimi¬
nated

during

While
E.

F.

Bullard

much lower than they need or should be.

The

industry's second concern results from the Su¬
Court's ruling of June 7, 1954, extending Federal
authority over independent producers and gatherers of
natural gas. These controls are completely unwarranted,
and they represent a clear departure from the intent of
Congress when it passed the Natural Gas Act in 1938.

that the industry is

so

disturbed

1955.

business

generally

is

to

improve, highly competitive
ditions are likely to continue.
Improvement

may

125

preme

reasons

retail

an

be greater competition for the
customer's dollar—which

the

producers

Among the

Due to

of

expected to

or

plants which have not been replaced

everywhere.
With drilling continuing at an accelerated pace, capacity
to produce is steadily expanding, but actual production
on

expected to stay at

ent levels.

and

substantial

are

increases.

during the 1950-54 period except for
those
emergency
replacements
to

industry

detrimental

very

to

productive capacity level.
One of the main problems in 1955
will be that of
scrapping obsolete

industry to develop reserve ca¬
pacity of one million barrels daily,
the figure is now well above that,
it

plen¬

will have the effect of

closer to

other government officials requested

and

during 1955

small

normally be expected to

obvious

defense

be

pharmacists.

meet sellers'

true

to

continued

The available
supply of pharmacists
is still
inadequate.

new

1,-

imports must

the domestic

inventories

ALEXANDER CALDER

800,000
barrels
daily.
Continuing
high levels of imports are at the root
to most observers that

and

of
the

ing products by the
manufacturers,
the opening of new
large stores, and
the
enlarging of existing stores. '
Employment has been stabilized
with the
exception of

capac¬

at

half
For

rise, due to the introduction of new
products, the duplication of exist¬

Company

Two pressing problems
facing the domestic oil-produc¬
ing industry mar the outlook for 1955, a year that other¬
wise should find this
industry in better condition than
in 1954. Demand for domestic crude
should be up about
4% over last year, but this modest

gain

last

whole, sales showed

a
small increase.
Merchandise continued

tiful

BULLARD

President, Stanolind Oil

the

moderate increase.

a

year of 1954 as a

The

With

in

reversed

™as

1954, with sales showing

difficulties

where the prolonged

*

year of 1954> sales generally in
Stores Industry showed a moderate

Sales

are

Stores, Inc.

iL.In Ji?e.first half of the
Chain

factor

can

this nation's

BURRUS

number

and

F.

B.

President, Peoples Drug

machines

troublesome

national¬

industry in the United States.

In

the

of

in

upon

seems

drought
relief from this con¬
dition will be of important signficance.
Competition will be extremely keen at both the manu¬
areas

many

still

econ¬

comparable with last year.
struction

are

While it is

standards..

Petroleum

realize

by the Federal Power Commis¬

latter

mar¬

cutbacks.

1954.

Agriculture, another important segment of
omy,

There

conditions

The substantial

now

in

this

the selection and

activity

attained

regulation

which must be dealth with.

E.

automotive industry locally has shared

level

of
was

of

the very limited tillable
acreage available and the rapid
growth in population the need for maximum production
from our farm land is
very evident.

backlog
of both
commercial
and
military orders held by major air¬
frame companies would indicate that
Roy A. Britt
this
industry
should maintain
its
current high level of production in
1955.
The electronics industry is probably one of the
most rapidly expanding elements in the local
economy.
Further expansion is anticipated in 1955.
The western
steel production is expected to maintain its current
high
level

It

relied

political uncertainties which will surround the

various

the

has

his costs

The

consequently
changes in the pro¬

by

to

fair

a

future.

near

company

significance.

reducing

and

new

surpluses continue to be

the

and

1954.

and

policies

any

of the farmer's

one

sales

1955

Manufacturing in this area is, to
important degree, tied in with
defense effort

income

very

an

the

of

shall be considered

pre¬

perhaps anticipate that there would not be any
change in 1955 as compared to 1954
except to the degree that new products and aggressive

5%

1954.

slightly better

or

are

figures available, it

manufacturers is lower than

and

we

exceed, by

most

is

for

While there are no accurate

sometime

remain

that

evident that the inventory in the hands of both retailers

facturing and retail levels.

well

farm

Net

has the

area, during the past decade, has experienced
phenomenal growth.
The westward trek continues
today and by and large business and industry have been
able to keep pace with the rapid increase in population.
Construction
activity
which
has
been
very
high in this area for

should

become short in the

keting of their crops.

Federal

This

10%, the levels attained in

estimates

production and the receipts from the

their costs of

Crop

a

Wholesale

only

mean

available for the coming year's market.

of Los Angeles, Calif.

may

some

risk-taking is the chance
and

suffer curtailment.

operation and increasing his crop yields.
Therefore,
adequate machinery of the right type is essential to
those farmers who hope to improve the margin between

addition

BRITT

President, Citizens National Trust & Savings Bank

to

in

The

higher prices to consumers, exactly what
propo¬
nents of Federal regulation have
been seeking to avoid.
The Natural Gas Act, passed
by Congress in 1938, spe¬
cifically states that the Act does not apply to the
pro¬
duction and gathering of natural
gas. It also states, how¬

Whether this decline mate¬

Machinery

an

living, plus the great
population, have resulted in a growth in the
which is actually better than that
of the economy generally.

date in

which

of providing this

means

unparalleled degree.

may

incentive

would

reserves

further decline in farm

some

declining more rapidly than
farm
income is the
factor

gross

forms is the only tested

proven

protection

been

That insurance

business

1955

of

investment

sult, then supplies of these

?nc5lne*.

increase in

the year

gas

important.

against

incomes, the higher standard of

this leads

kind

and reasonable profit
is not offered to wildcatters and
producers, there would
seem to be little doubt that
exploration for new oil and

the

Increased individual and corporate

All

this

If the

rializes and the extent of the change
in
farm
income are tremendously

financial loss.

its many

and

insurance

profit.

into millions of dollars each.

run

to

your

protection

wide

need

the

severe

Brainard

recover

history has there
public acceptance

in

time

such

been

B.

Costs of these wildcats average

average.

improvement in the industry.

when

Morgan

may

incentive

such

question

no

the

financially-

as

oil and gas production.

as

$100,000 each, although individual wells

areas

sion.

always subject to the
hazards of weather, pests and crop conditions and these

business

a

is the national

about

ever,

are

domination.

The risks
involved in exploring for new oil and
gas reserves are
tremendous:
One successful well in
every nine drilled

BROWN

T.

operations

little, especially

very

previous

or

year

Any general statement regarding the farm machinery
industry in the present year is bound to be full of un¬
certainties.

companies today are providing broader and

rates

the

velopment

varied forms of protection than ever before. While
costs of other commodities have risen

considerably,
have changed

by

hazardous

purposes

in the insurance business is extremely bright.

more

made

be

expenditures

President, J. I. Case Company

for believing that the outlook

many reasons

substantial

and

Federal

Utility-type control is not feasible in

merce

President, Aetna Life Insurance Company
There

War.

ards

BRAINARD

B.

since

World

my

JOHN

MORGAN

continuous

been

industry in a
continuing expansion of plant. Shifts
in population, increased production

the board" for 1956.

the

is

tinue

already under way, and an increase of 1.6 million KW is
"on

under

expectation that, gener¬
ally speaking, growth to meet in¬
creasing service demands will con¬

bright 1955.

a

has

close of the second

the

Exchange, a trade association
utilities in 10 Southern states,

The Southeastern Electric

charts

Company

both Bell and Independent,
passed through a period of remark¬
able
growth and plant expansion

line

investor-owned

tne court s interpretation of tfte Natural Gas Act is
the danger that this interpretation
may be spread to oil
as well as
gas, thus bringing both of these critical fuels

The Telephone Industry,

(two plants),

30

oy

Manager,

Telephone

Transformer

of

BROREIN
General

Thursday, January 27, 1955

...

course

Reserve

ment

to

a

Board

a

is

imply

production

national

Federal

production

Reserve

Index

Calder

in

1955

against

increase of 5-6%.*

great
of

full

deal
depends
upon
whether
the
Federal
its
policy to expand the money supply
employment is reached. Since full employ¬

likely to be attained before September, this
favorable money supply through at least the first

not
a

of

the

Alexander

continues

condition

quarters

over-all

on

this year—an

*Of

until

in

132

average

apt
con¬

1955.

Continuation

through September

of

this

1955.

policy

will

result

in

seems

three

rising

Volume 181

Number 5398

...

The Commercial and Financial Chronicle

in recent years, to be a formidable factor in the over-all

F. D. CAMPBELL

I

President, New England Gas & Electric Association
the basis of available business and

On

casts for the

for

gram

and

new

1955

Electric

Industry fore¬

the $24-million construction

year,

through

1958

Association

to

pro¬

the4" New England Gas

of

provide expanded and im¬

proved facilities for serving its cus¬
tomers will prove to be a sound and

practical investment.
The

utility companies themselves,
pointed to as "barome¬

while

often

ters" for the measurement of indus¬
trial

result

a

sioned

advance planning.

ican

growth

many,

The expansion and
utilities necessarily

the

of

the

follow

growth of

tries in their constant and

electricity and gas.
present the adequate

At
D.

h.

indus¬

increasing

of

use

electric

capacity of the New England Gas and
Electric System is provided by its

Campbell

generating facilities and inter¬
neighboring utilities, and the advent
own

connections

with

of natural gas

of

sources
our

own

The

has provided our gas companies with two
their product, the natural gas pipelines and

short notice.
expansion of
distribution facilities

ability to manufacture gas

continued

improvement

on

and

our

generation, transmission and
are
the major part of our program, together with those
changes which are constantly being brought about by

technological development.

benefit from the encouraging

accorded
and

Canadian

ized.

It has

land

too.

show

a

which

been

business recession has not material¬

a

checked

Estimates

nationally, and in New Eng¬

tabulations

and

from

source

every

steady increase in the Gross National Product—
means

This factor

constant

a

lends

increase

in

purchasing

logic and credence to

power.

recent

a

state¬

be¬

response

rights from

its newly developed hoists and hydraulic

total meat output to about 15%

ing the past three

half

being maintained by two controlled subsidiaries
—Hayes Aircraft Corporation of Birmingham, Ala., and

which,

varied

among

Armaments'

backlog

second plant section at

Cockeysville,

mechanical
arate

completed

located in two

departments, presently

buildings
late

in

1954

and

first

The

Baltimore.

in

structures, general dynamics and procurement sections.

By joining with other utilities in forming a new cor¬
poration known as the Yankee Atomic Electric Co., the
New England

Gas and Electric System has taken

nificant step further.
and

construction

the

proponents

of

a

sig¬

In planning for the establishment
nuclear

a

found

most

conservative

esti¬

mates

by power engineers of future electric consumption
seemed almost unbelievable, yet parallelled the
longrange business forecasts and compared favorably with

appliance sales predictions.
All

this

of

meanwhile

by

of

means

optimistic .prognostication means that our
planning has to be big—it has to be long-range and it

potentialities.
marked

in

tional situation.
for

mand
land

the

Gas

A far

future

near

and

greater

Electric

planning ahead of

our

load

power

that

means

System

have

as

tion

and

economic

dubious

merit.

New .TL'ng-

right in

our

W.

be

of

no

more

present instance, however,
that, to close observers of the

business scene, indicate:

Most

It might be

under

an

for

basic

uptrend,

already

weeks, that
gives promise cf expanded industrial
activity curing 1955. Barring inter¬
vening developments of an adverse
way

nature,
the

new

tively
mately
that
Rensselaer

W.

year

for

product

is estimated

about

at

some

national

gross

8%

—

$25,000,000,000
1954.

or

—

for

conserva¬

approxi¬

more

than

Varying rates of im¬

provement appear to be in prospect
for the automotive, agricultural im¬

Clark

with

a

stimulus,

as

petitive
costs

so

for

years,

pacing

is

quarter operations
the
■

to

12-month

be the

outlets

.

economy

in

the

as

a

hard

to

wage

increases,

come

:

as




business conditions

ac¬

in

be taken.

:

there is

no

1955 would

appear

George' S. Case,

good

to be a

W.

as

The.

and

year,

but

the state,

expanding activity of the United States Government
rapid growth

while the steady
Chincoteague is re¬

in and around Dover,

expansion

poultry industry, which suffered considerable loss

during the hurricane of October
15, 1954, is
restored, often with improved economy resulting
Outputs both of electricity and gas

progress

been,*
in return¬
has

being
from

this time.

the

now

With the influence

.

creased

These

labor

have

house

at

Presentlv

optimistic.

is

over

little

ever

of in-,
present.

which

control

man--

make

a

more
than a few
time rather hazardous.

the short
-

,

range

~

.

picture is.
«

1954.
engineers

find

no

basis

in the established trends in

running

for any

material

the electric loads

nearly

10%

ahead

of

time, with the introduction during 1954

heating.

Delaware Power &

for

predictions
months

costs

.factors

agements

threat

the

and

gas

has

con¬

heretofore
substantial

last year. At the
of natural
in the Wilmington area, that phase of the business
been greatly stimulated, especially in the field of

same

stantly in the picture, however, com¬
modity costs can jump out of line

overnight,

over

recession

raw ma¬

Government

Federal

gains

Company

cost, labor costs and other ex¬
to selling prices is about nor¬

mal at

reached maximum

during 1954 substantially above those
attained and January outputs to date show

By that

penses

Coad, Jr.

part of

experienced in tie poul¬

levels

ing to balanced operations.
we mean the relationship of

of

southern

growth of the Naval Air Base at
flecting favorably in that area.

Incorporated

Omar

terial

the

its Dover Air Force Base is resulting in

at

COAD, Jr.

Considerable

expected

business.

In

improved facilities.

J.

President,

rate well above
reflects expand¬

try business is offset by expanding industry, not in large
units but in numerous small and diversified enterprises.

Jr.

guarantee that it will be.

made during the past year

but will continue,

Cooper

the decline

;<

.

a

ing industry, which in turn reflects
a good economic climate in which to

If it is

high..

may

W.J.

population at

do

short,

by

the national average

The
In

prevailing at the
will continue is

produced in the leather, textile, floor
covering, paint and other industries.
The fact that Delaware is increasing

Governmental efficiency may not continue to increase at the same rate,
so we are facing unbalanced budgets at all governmental
levels.
Let us hope that the gross national production
will increase enough to provide a larger basg from which
taxes

year

the steady growth
the chemical indus¬
try within the area, the upswing in
steel and iron, and the improvement
in
the volume of consumer goods

Stuart

continue

the

strengthened

will be
this year

consumer.

of

and expansion of

upon

field, principal among
sub-assemblies of Hays'

the year progresses,

There

although

year

start

which our standard of
living depends so much, will con¬
tinue
to
be
high as war tensions
Taxes,

which,

would
be at an annual rate of more than. 7,500,000,
whereas the most optimistic 1955 goal for the industry.
is in the neighborhood of 5,800,000 units, contrasted with
approximately 5,500,000 produced in 1954. Defense pro¬
duction, which helped to moderate the recession of the
forepart of 1954, will show a gradual decline from cur¬

rent levels

by.

indicate that the year 1955
for all business throughout
area.
The belief that the good

strongly
good
the

lower.

Rapids, Mich., facility.
Approximately 1,900,000
automobiles, according to authoritative trade estimates,
are scheduled to be produced in the initial quarter.
That

;

another

impossible, profits will be that much

Grand

•

Company,

be

be possible to pass along the

the automotive

stampings and

Light
will

that concerns with high
profits will be

whole, first
the best for

give promise of being
Particularly so is this

period.

case

for

the

of

suffer and

will

well, to the varied

components of the non-durable goods lines.
For some industries other than
construction,
as

year

a

tivity most lines will be very com¬

plement
and
others
among
the
trades, witn accompanying betterment in
purchasing power, a concomitant of increased

employment, providing

The current business trends throughout Delaware and
Delmarva Peninsula, served by Delaware Power &

obvious.

business

increased

COOPER

the

shake

durable goods
consumer

than

If something

that people are too confident.

to

to

near-

some

STUART

Sessions Co.

&

at

President, Delaware Power & Light Company

CASE, Jr.

that 1955 will be

experts are agreed

higher costs to the

the

in

steel, bituminous mining and, among
others, the textile industries, and (2)
of

cor¬

good business activity, and about 10% better than 1954.
The fact that so many experts agree is a warning signal.

restricted

onset

S.

President, The Lamson

it may

the

Hayes Aircraft Corpora¬

Armaments, Inc.—remains basic

GEORGE

(1) completion of the inventory
readjustment which, during most of
1954, was reflected in moderately
operations

Bawden Industries, Ltd., as

and

expected

Last year's

porate policy in the scrutiny of specific situations.

Even

the

signs have accumulated

assured

as

conservatism

that

are

remain

Secretary of Agriculture Benson recently pointed out
"In total we are consuming more food than ever
before and our tastes are running more and more to the
higher-priced protein diet items. This trend seems likely
to continue and it emphasizes that the needs of tomorrow
will be for more feed and forage to provide the livestock
products which our population is demanding." This kind
of a demand picture, along with prospects for abundant
meat
supplies in 1955, should provide a reasonably
favorable atmosphere for the meat packing industry in
the year ahead.

acquisitions of recent years—American

Company

Certain things seem quite

Corporation

can

well

as

end,

year

inventories

that

achieve

may

coming

the

this confidence,
the reaction might make for a sub¬
stantial decrease in business activity.

CLARK

forecasting

In

it

appraisals of both worth and prospects

Aircraft

happened

President, Hayes Manufacturing

Normally,

in

we

been

needs.

RENSSELAER

than

and fuel de¬

power,

that

To

the majority interests in

well

With optimistic predictions for busi¬
general for 1955 confidently made in so many

experienced quarters, the utility business should prosper
in the new year barring radical
changes in the interna¬

in

in the successive

has to be practical.
ness

"earning

stability

growth

Engineering

diversification,

that,

so

the

cattle

recent years.

quest for advan¬

of subsidiaries

family

its

greater

which

continuing its

is

to

judicious

generating plant,

energy

the

that

Hayes

tageous additions

in
as

last year. Widespread drought would
liquidation, and heavier slaughter than in
1954; good growing conditions could lead to some herd
rebuilding, which would mean a lower level of slaughter.
In any event, beef supplies will be
larger than in most

ment

by an appliance manufacturing official that elec¬
tric appliance and equipment sales in the next ten
years
will equal the sales of the last 75.

smaller

or

result in

was

the ordnance,

houses

now

James D. Cooney

will, in the main,

cattle

sep¬

section

last

heavy slaughter was primarily
high producing capacity of the national
herd, and did not reflect any significant degree of
liquidation of breeding stock. Weather conditions in 1955
may largely determine whether slaughter will be larger
result of

a

suburb of Balti¬

a

supplies
large,

record levels.

necessitate the construction of

to provide facilities for the electronics and electro¬

more,

year

continue

prototypes. Additions to Aircraft

may

of

the

Beef
of two armored vehicle

the production

nature, includes

classified

that

16% increase in the 1954 fall pig crop as
by the U. S. Department of Agriculture. Their
estimate of a 5% increase in the 1955
spring crop is
indicative of the general level of slaughter
during the
latter part of this year. The increase in
hog supplies is
particularly gratifying from the standpoint of enabling
the meat packing industry to more
fully utilize its pork
processing facilities.

facility have been broadened to include the over¬
haul and conversion of cargo planes in addition to World
War II bombers, while those of Aircraft Armaments are
scheduled at an accelerated pace on an enlarged arma¬

a

1955 will show

over

estimated

owned

program

this

of

reflect

Aircraft Armaments, Inc., of Baltimore, Md. Operations
of the former in its 2,000,000-square feet, Government-

development

increase

Hog slaughter during the first

year.

are

ment

sizable

a

turn, peak rates in their respective defense activi¬

dur¬

years.

Pork production in

program.

ties

Since 1951 both cattle and

slaughter have increased about
50%. Hog production, however, was
contracting
during
much
of
this
period, thus limiting the increase in

Moreover, the Philadelphia unit looks forward
marine
equipment business under the
Maritime
Commission's
newly approved shipbuilding
In

in the supply of red
during the past several years
confined entirely to beef

been

calf

manufacturer in Ger¬

a

the

were

years.

and veal.

additional

to

a

throughout the System.

trade

has

pumps.

and

substations

46

last
largest

person,

per

Expansion

(1)

and (2)

projects of

The "threat" of

in

supplies
pounds

155

meats

the highly efficient vibrating grate
for which the subsidiary has obtained both Amer¬

In order to keep pace
with the speedy growth of the electric "load," we have
allocated
the major portion of our new construction
program to the provision of additional transmission lines
new

year's

Industries, Ltd., of Toronto, Ont., and Affiliated
Engineering Corporations, Ltd., of Montreal, Que.—

stoker

to

civilian

Bawden

ing

sustained high level

a

expected in 1955 relative to last

are

Total meat supplies should therefore compare
favorably with the 1954 record-breaking total of about
25 V2
billion pounds.
In terms of

improved competitive position occa¬
amicable wage readjustment concluded,

the

by

production and

production

year.

the

1954, with the United Automobile Workers. Sim¬
ilarly, the wholly-owned American Engineering Com¬
pany, of Philadelphia, Pa., and its Canadian subsidiaries—

weather and business experts in their

has

Increased pork
of beef

late in

should

the

of

COONEY

President, Wilson & Co., Inc.

Improved operating results, in the circumstances, ap¬
to be in prospect for Hayes' Grand Rapids plant
on the basis of orders for automotive
stampings and sub¬
assemblies currently in hand and others
being negotiated
as

D.

JAMES

of gradually decreasing potency.

one

pear

are
still dependent
prognostications of both

progress,

upon

although

economy,

29

(489)

Light Company is proceeding

with

million within the
next four years, in full confidence that its new invest¬
ments, required by increasing loads, will be fully justi¬
fied* by correspondingly; increased sales and
revenues.
Of this amount, something over nine million is scheduled
for 1955. This four year estimate will be increased by
an

expansion program of $40 to $50

Continued

on

page

30

The Commercial and Financial Chronicle.

(490)

SO

seeking

industry

large

under way with a
site in Delaware are

now

hew

a

over

generally to be good, and in our particular situation
new products and aggressive selling and marketing plans
should serve as a further stimulant.
Our
business
is
the production
rale

food

other

automotive

our

The

outlook

for

truck

our

All in all, we look for 1955 to

costs

handling of

a

rapid

line of products.

in

the

line and

our

be made.

can

have

spent

that

growth

and

there

1954

year

added •

expect that ag¬

we

plant modernization, on which we
$100 million in the past decade, is
During this year we expect to com¬

being continued.
plete the construction of
cracker

our

band

new

biscuit and

oven

bakery in

Philadelphia, Pa., and also complete
new
Chicago Bakery for the pro¬
duction of pretzel varieties to supply the Midwest marVets.
A new biscuit and cracker
bakery is planned by
cur
Canadian subsidiary, Christie, Brown &
Company,
Limited, to be built in Montreal, Quebec Province. Cap¬
the

addition

to

our

ital expenditures for the
year

1955

about

with

$20

million

million in
In

are

addition

continuing

signed to enable
of

research

our

are

expansion

expenditures

potential

$15

and

expanding and are de¬
changing situations and the

to meet

us

personnel development

and

activities.

our

business

our

of

consumers

it

as

increases the number of

products.

our

changing habits of people with the
has had
snack

favorable

a

In

addition,

advent of television

effect, especially in the sales

of

our

varieties.

All

at

a

the

high

next

that

are

level

several

disposable

and

we

confident

are

will

years

income

will

re¬

that

1955

be

good years for the
hountry and for National Biscuit
Company.

M.

F.

COTES

President, Motor

™PLUi
Wheel

landing

prospects
motive

in

Wheel

Corporation

program of diversification at Motor

Corporation

brings

consider

to

us

1955

business

the power lawn
mower, appliance and auto¬
to consider the chances good for a
better year in each of the three fields.
As
we
announced

fields, and

recently,

have

moved

into

the

power

field

with

two

we

entries.

mower

lawn
We

purchased the physical assets of the
Reo Lawn Mower Division from Reo

Motors, Inc., and established

our own

Reo Division.

We also developed and
manufacturing Duo-Trim power

are

in

mowers

Cur
sold

Duo-Therm Division.

our

Reo

Lawn

Mowers

will

through the Reo distributor

ganization.

We expect that

be
or¬

Reo

our

mowers, with their established pres¬

tige and leadership, will show
M.

F.

vorable

Cotes

ous

planed.

Our

sales

a

fa¬

the vigor¬
selling campaign which we have

Duo-Trim

line

of

response

to

mowers,

newly

intro¬

duced, will be sold by our Duo-Therm distributor or¬
ganization. We expect the design features of our new
Duo-Trim

line

to

entrench

this

product

firmly in its

field in its first year.

Sales
more

of

two

our

in

industry

power

mower

divisions

should

dealers'

volumes

and

earnings should

Production

Duo-Trim

of

with manufacture

which
mobile
naces,

in

addition

home

of the
to

will

be

integrated

Duo-Therm line of

appliances,

space

mowers

heaters for

household

and

includes gas floor furnaces, oil fur¬
incinerators, water heaters and mobile

use,

gas-fired

home air conidtioners.
Power lawn

supply

sell in large volumes in late win¬

industrial and

new

exceeded

figures

large
still

our

the

of

all-time

the

proportion
in

hence,

the

commercial

increases
with

of

1953

11.5%

sales.

timated

exceed

to

commercial
tomers by

about

being

are

Crane

casualty

steadily.

the

year

will show
compared

less

sales

for

1954

than

aries

and

in

We

defense orders;

and

The

industry

dye

has

business

level

heavy

of

been

is

growing

industry

New
to

increases of any
In
can

benefits

sound

in the face of the moderate

operations in certain industrial fields.

or

products

near,

will

not foresee

do

optimistic report.

an

on

be

price

With the Ameri¬

period of remarkable yet

a

confident

are

we

W.

EDWARD
President,

Charles

The

ti.at

United

&

Dye

DAVID
Hires

E.

Company

Progress continues in the soft drink industry in spite
of hurricanes and other weather conditions not quite as
favorable

in

as

1953.

competition is still holding down prices, par¬
ticularly in some sections of the
south where prewar prices are still

Keen

in

markets

The

effect.

in

which

these

"price wars" exist, however,
gradually diminishing, and the

are

price changes can only be upward
as
rising costs of labor and mate¬

v

The foregoing figures show that

the decline in busi¬
during 1954 was com¬

The aggregate industrial investment for the past
five years amounted to approximately $538,000,000.

minor. Sal¬

at,

Ci.emical will share in that prospect.

re¬

activity in the Baltimore area
paratively small and this can be credited, primarily, to
the wide diversification of industry in our territory. In¬
dustrial and commercial growth here was maintained at
a high
level, with a total announced investment in new
industries and expansions of existing plants of $99,225,000, and additional labor requirements of approximate¬
ly 4,000 employees. Industrial investment during 1954
was the third
largest for any single year in the history
of this area, being exceded only by the two preceding

We

consumers.

be

remain

improved

and

embarked

growth,

will

appreciable amount.

short, this is
economy

force should

the1 labor

undoubtedly

wages

available

maue

sales by 24.5%; sales of gas to
by 12.4%; and to industrial cus¬
Recent conversions of large industrial

ness

name

activities is bright.

our

civilian

negotiated.

high

peaks.

present

1953

industrial gas sales

Dardi

D.

application.

insurance

The

customers

5.9%.

V.

The

reason.

all-encompassing;

backlog of

Dislocations in

kilowatthour

1.2%

rials force

prices higher. In our own
in 1954 increased in

earnings

case,

spite of slight fall-off in sales, and

further

anticipate

we

localities

in

improvement

have

that

not

raised

tneir

prices in keeping with costs.
There are many opportunities for
of sales along lines that
growing, and the possibili¬

expansion
are

Edward

W.

ties

David

still
are

still

far

from

exhausted.

Theatres

Drive-in

the

Take

for

years.

During the last five years our Company has added
82,312 new electric customers and 48,463 new gas cus¬
tomers. In 1954 alone, 14,726 new electric customers and
9,747 new gas customers were connected to our lines.
The fast-growing household usage of electricity—for
improved lighting and modern appliances such "as food
freezers, air conditioners, clothes dryers, television, etc.

—is

reflected

the

in

increase

in

this

load

of

82%

over

the

example.
War

for

They

II, and

now

drinks

soft

almost

were

unheard of before World

almost 6,000 of these natural markets

have

been

opened, and,

more

being

are

built every day.
a

great increase in roadside stands.

These have been built

by individuals and by chains sell¬

Similarly, there is

ice

ing

under

frozen

cream,

custards,

and

various trade mark names.

similar

products

All of these

are

new

past five years.
Since 1950, when natural gas was
introduced in our area, the growth of gas sales has in¬
creased 125%.
Currently the growth is running at an

outlets for

annual rate of

rapidly, affording in many cases, a market that did not

changing

to

commercial
of

16% to 17%, with more and

gas

heating

for

establishments

fuel

using

more

homes

industrial

and

increasing

and

quantities

gas.

The

exist

the

the sale of soft
of

use

These

before.

drinks

large

soda

ideal.

They provide, at

and

minimum

construction

99.5%

of

in

the

1955

will

mains installed

estimate

this

equal

homes
gas

A year ago we were at

that

figure.

within

built

residential

Last

reach

of

year,
our

for house heating.

the early stage of a moderate

decline in some fields of industrial and business activity.
Today this position is reversed and we find rising trends
in all phases of operation. We look forward to 1955 with
expectations that electric and gas sales will show sub¬

stantial

increases

and

we

are

preparing

for

this

con¬

tinued

growth by undertaking the largest year's pro¬
gram of construction in our history.
This program in¬
cludes

a

new

electric generating unit of 125,000-kilowatt

scheduled

construction

of

15

for

new

completion

early in 1956, the
substations and expansion of a

number

tensions of service facilities to

of

little

up

space

in

fountains.

For the

smaller stores,

they

our

developers

new

is progressing

stores

take

snack-bars

well.

but they do a volume of business that rivals

are

and

as

store,

the

builders

chain

in

snack-bars

territory in 1954 totaled
15,000 dwelling units, which is the highest since 1951,

Residential construction in

ers,




sizable

operations to natural gas account for the increase

process

in

be

is

forging and casting operations.

and 6.6%, respectively, as

Industrial

to

definite

a

of intelligent

ones

The
P.

Charles

the previous
year, this decrease is accounted for by a slowing down
chiefly in the metal industry and in shipbuilding and
ship repair operations. In each of the last three months
of 1954, the industrial electric sales showed increases as
compared with the corresponding months of 1953. These
industrial sales figures do not include sales to a large
local steel company.
A substantial proportion of thenpower requirement is generated by them frcm by-prod¬
uct fuel, which from time to time is available in suffi¬
cient quantity to justify the installation of additional
generating capacity. They placed such additional gener¬
ating equipment in operation early in 1954.
*
Sales of gas to residential customers in 1954 are es¬
expected

are

[

depends on
of men,

success

already benefiting from the pick-up in the textile field.

of

for

customers

good.

increas¬

become

specific outlook for
a

new

Sales figures for December are not yet available, but
we estimate that electric kilowatthour
sales to residen¬
and

lack

a

have

electricity and gas in 1955 and thereafter.

tial

com¬

efficiency fails to produce the desired results because

The

and,

sales

fields

the

to

of

year

Tne

utilization

word

of

are

stage

a

those

unfortunately, all too often what is done in the

year.

in

reflected

be

that

aware

all

be

intelligent

be

in

engaged.

will

gas—

installations

construction

will

will

for

of

A
tnese industrial

of

commercial

ingly

wiil

are

wel¬

we

with real antici¬

with the full reali¬

so

competition
we

that

once

year

this

that

ficient"

record

high

preceding

ter and

spring whereas the selling season for space heat¬
Duo-Therm's largest volume item, is summer and

at

say
new

former

commer¬

and

business.

planning for 1955
a
wide-range

machinery and materials. I use the
word "intelligent" rather" than "ef¬

reflects

substantially

be

the forging and casting field and

insurance

in

We do

petition

the

population,
trie Balti¬
I anticipate

installations—electric

capacity,
mowers

the 2,300 square
This record-breaking

to

add

likewise be expanded.

in

area.

will

-t

It

DARDI

followed

me

the

intense

in

the years immediately ahead.
Contracts obtained during 1954

service

than $10 million to Motor Wheel's volume in 1955.

Distributors' and

have

zation

in

duction

indications

main

of

increasing population in the country is naturally

favorable to

and

expected to total

1954.

programs

The

compared

gas

services

and

of

over

Light

than $7

more

25%.

metropolitan

more

Coppers

and

our company.

by

about

or

business
H.

by

expenditures

the

perishable

made

products to

program

casualty

Consequently,
we

Let

construction will exceed

new

million,

Geo.

served

area

for

1.954

these products.

Our

t..e

Management

sum

gressive promotional and marketing activity during the
current year will materially expand the sales volume
on

in

in which

mile

on

are

improvements

acquisitions

food

new

which

fragile and

confident

owned subsidiaries in

quirements for electricity

reducing selling and.
necessarily high in the

concentrating

now

Electric

D.

distribution

During the last year, United Dye & Chemical Cor¬
poration has been engaged in diversifying its operations.
Eesides our basic dye activity, we now have wholly-

plan to expend $35 million during 1955 in provid¬
ing additional facilities to meet the fast expanding re¬

cial

distribution

V.

and electric

gas

Chairman of the Board, United Dye & Chemical Corp.

come

CRANE
Gas

our

view.

better year.

a

We

sumer.

are

over

Power Company of Baltimore

&

■

greater demands for

Several

be

P.

President, Consolidated

baking and pack¬

in the

made

improvements in

pation.

aging of biscuits and crackers. Great
-economies in manufacturing costs have been effected
because of these changes and such savings have largely
been reflected in the price of the products to the con¬

We

increase

products.

improve the pack¬
aging and the quality of commer¬
cially baked
biscuit and
cracker
products.
As a result these prod¬
ucts
in
particular are enjoying a
continually rising rate of pey capita
consumption.
We believe this trend
is going to continue as the popular¬
ity of prepared foods increases.
Many improvements have also

are

1954.
and agricultural equipment

CHARLES

still being done to

We

should

production

wheel production likewise is favora-ble.

done

been

systems.

automobiles, motor trucks
and agricultural equipment reflects directly production
of our customer companies.
Present indications are that

deal of research work has
in recent years and is

A great
been

and

efforts to

provide year-round production and sales.
In our appliance field the problem is one which in¬

and

crackers

and

biscuits

of

promising

a

Our production of wheels for

National Biscuit Company

expect our sales in the year 1955 to continue to
previous high levels.
We look for business

We

effects

selling of new models and improved prod¬
ucts.
We expect to hold our domination of this field,
and perhaps to continue to improve cur position.

COPPERS

H.

GEORGE

rise

diversification

new

volves hard

successfully concluded.

President,

this

integration of production and merchandising

if negotiations

million

several

Thus

fall.

29

Continued from page

Thursday, January 27, 1955

..

existing substations,

a

new

large outlay for ex¬
electric users,

gas and

compare

a

small capital outlay and

requirement in floor space,

favorably with

Automatic

vending

any

similar

machines

a

space

in

a

profit that will

in the store.

industrial

plants,

stores, railroad stations, airports, parks and institutions
of all kinds

are

increasing greatly and providing handy

spots for people to obey that impulse to "quench their
thirst."

.

it

While

is

likely that there

may

be

some

reduction

in business in the heavy industries due to reduced gov¬
ernment
soft

orders,

drink sales

sumers

we

do

not

believe that

due to their widespread

it

will

affect

appeal to

con¬

and nominal cost.

All of these facts lead us to believe that the soft drink

industry will continue to grow in 1955.

Number 5398

Volume 181

The Commercial and Financial Chronicle

...

JOSHUA

more than tripled since 1940, continue to create an
expanding market for goods and services of all kinds.

has

DAVIS

A.

Chairman of the Board, Blair &

Co., Inc.,

the

Since

eight

discovery
years

of

ago

Field in Alberta
witnessed the growth1

Leduc

the

have

we

of the Western Canadian oil and gas

industry from strug¬

gling infancy to dynamic adulthood. During the period
following the Leduc and Redwater

discoveries, many hundreds of new
companies were organized to explore
for oil and gas in the vast reaches of
Western

Canada's

sedimentary

basins.

billion have been poured
Canadian exploration

development, pipelines, and re¬
From the money spent on

fineries.

exploration

announced

in the installation of modern

The

and

industry

gas

compelling

locating reserves — but
locating an economic mar¬
ket outlet for its production.
Fundamental solutions to
the oil marketing problem were found through construc¬
tion of two important pipeline systems. The Inter-Pro¬
vincial Pipeline was built from Alberta eastward to Sar-

nia, Ontario, at the head of the Great Lakes.
from

Alberta

Then west¬

the

Rocky Mountain belt the
Trans Mountain Pipeline was laid to serve the Pacific
Coast area. In addition, the demand for petroleum prod¬
ucts in the oil-producing prairie provinces has increased
over

manifold.
Further

markets

for

expected to be opened
under construction

Western

as soon

as

Canadian

eastern Canada and the Pacific West Coast

recent

price reductions

mitting Alberta

crude

to

The

area.

of great assistance in

were

compete

more

per¬

effectively

in

nearby markets.
-

Nineteen

for

taken

to

natural

move

market.

to

gas

The

planned

Trans-Canada and Westcoast Transmission pipelines of¬
fered hope that construction might start in 1955.
With
the completion of the projected gas pipelines two

knotty
problems facing the industry will have been removed.
The year 1954 pointed out the tremendous oil and
gas
potential of Western Canada. Both major Pembina and
Sturgeon Lake discoveries were confirmed and extended.
Discoveries

For 1955 I foresee Western Canadian exploration and
development at an all-time high rate of activity. As
companies develop the mammoth Pembina and Sturgeon
Lake finds, prepare sufficient
capacity of natural gas
production for both projected pipelines and, lastly, ex¬
plore the attractive deeper portion of the Alberta basin,
a temporary surplus of oil and
gas may be created but—
as has happend before—markets will be
found.

oil

just beginning to realize

JOHN

W.

DEVINS

The
year

in

the

in

railroad
the

prediction

dour

an

will continue

coming

the

by

in

on

a

justified

more

basis.

manufacturers

distributors of lumber, cement,

and

that the securities

are

having

(1) able management, (2)
(3) adequate working capital, and

those

activities

show

no

structures still continues.
in

our

forward

duction in the early months of
The

have made

wheat)

to

increased

an

pro¬

We expect these upward trends to be

reflected in the
operations of The Minneapolis & St. Louis Railway.
DELZELL

W.

THOMAS

Electric Co.

Chairman of the Board, Portland General

the

At

close

of

booming 1953, there
throughout the land of
ening during 1954.
Now that the year has passed, we
and judge from the
these prophecies of
dictions

were dire pre¬
economic slack¬

made

in

evidence

can look
back
record whether
gloom had any

Those

fact.

of

the Pacific Northwest are,

familiar

more

with

about

cerned

of

region.

and

in

us

of course,
most

con¬

growth
bountiful

in

cannot

seems

so

clear,

but

now

South

in

in

a

by

year

year

year's

ise

of

of economic read¬

industrial

the South

hold

investment of almost

a

year

will

will

respond

in

the years im¬

In

area.

see any

It does not

slackening

over

electricity

of

the

the pent-up demand for elec¬

beginning of 1954 Portland General
residential

And

at the

end

of

of

701

one-fourth

of

the

total

concern

feeding

the

same

time

we

using

were

average

alone

was

the

Just

represents
average

well

use

of

We have long since given up

army

must

the

home

of

meet

use

the

needs

will level off,
servants.
of

auto¬
out

turn

in

1954

1955, a
produc¬

units

the

on

In

in

the

insurance

new

John

pre¬

Diemand

A.

home-building field,

are for about 1,250,000 homes.
Here again is a
opportunity for the insurance industry.

forecasts
vast

Catching Up to the Price Level:

The insurance indus¬

the remark¬
living stand¬
during the past decade. The take-up is accelerating,
but we have some distance to go before premium recepts match the higher values brought on by the era
of postwar inflation, spiraling labor costs and increased

a long way to go to catch up with
able changes that have taken place in our

try has
ards

incomes

from

increased

productivity.
is written for three- or fiveinevitable lag between the val¬

Most property insurance
year

There is

terms.

an

people insure for, and the actual values of the prop¬
erties at the time the policies expire.
ues

If the insurance

policies

on

homes and personal prop¬

erty that were written in 1950 and
this year to reflect
that

in

1952 are re-written

the current value of these possessions,
create an automatic increase in

itself ,should

business.

Additionally,

people today have far more

insurable

values in their homes than was the case even five years

has

Continuing high employment at high wage levels
given the country's families a spending power that

has

been

ago.

Products:

New

buying and equipping homes on a

applied to

scale not dreamed

of short years ago.

Any

predictions about the

property

change that is taking place within the industry itself.

progressive segment (of which the North
much a part) that is mov¬
ing to modernize and simplify the business for the pub¬
lic, the producer, and the underwriter.
There

At

increasing

is

a

America Companies are very

the major difficulties encountered in selling
insurance protection to a family has been the
obstacle of explaining why so many different policies
One

of

proper

are

necessary.

Today, however, in 32 states, we can provide a family
with one simplified insurance policy to take care of its
essential

and

nroperty

liability

needs,

excepting

the

automobile.
The "packaged" policy has had an immediate popu¬
larity with the public, and while it gives the policy¬
holder broader protection at less cost than separate poli¬

cies, it produces
panies.

a

better income for producers and com¬

The insurance business is no exception to the

that

rule

the

public

best meet its

rewards those who

changing needs.
Investment Income

and

Underwriting Profits

It would be foolhardy

indeed to predict the profit out¬

look from underwriting.

Nineteen fifty-four profit pros¬

pects

were

tated

the

1955

will

past 15.
est

continuing challenge of

electrical

that

will

units

over

additional

The

Two-thirds

increase.

national

ourselves with the

growing

1954

11%

kilowatt-hours

million

increase

miums.

electric range and water heater in

an

trying to prophesy when this

the

customers

of 6,228 kilowatt-hours a year.

electricity in the home.

but

interpreted

was

But the trend has continued without

kilowatt-houi*s, another

increase

Harry a. DeButts

to the Southern's widely
advertised invitation to "Look Ahead—Look South" for

bright until Carol, Edna, and Hazel devas¬

Eastern
be

seaboard.

more

This much

competitive

than

year

in the

Underwriters will have to exercise their keen¬

judgment.

Investment

income should

at least equal the high of

1954, and there's the probability of a modest
if

certain:

seems

any

business meets its predicted

increase

levels.

population, the greater needs of present industries and

greater opportunity.




At

homes.

6,929

use

Company's

average

their

1955

Moreover* the South's rising

of this electrical
in increasing measure,

of the

result of

of them had both

in the industrial growth that has revitalized the region
since 1939. We feel certain that many more industrial
leaders

a

an

half-billion dollars.

likely that the present

as

appliances.

Electric

prom¬

Those located at points
the Southern represent an

in

phenomenon
appears,

farms

home

abatement.

develop¬
the

tion in 1955.

seem

homes and

in

trical

increasing industrial produc¬

served by

the

increase

facilities.
Last

sufficiently

mediately following the end of World War II, the sharp

Southern

justment such as 1954 proved to be,
industry
continued
to
expand
throughout the South not only in
new plants established but in
addi¬
tions and improvements to existing

ments in

single

greatest

logically

served

Railway System.
Even

The

appetite is that which

business, industry and railroads
the

di-

new,

days and seasons when there wasn't quite enough elec¬
tricity to satisfy our gigantic appetite.

fore¬

every

good

a

believed

alike

predicted

industry

insurance business must take into account a tremendous

Voter and business¬

projects.

verse

of

insurance

highways should account for about

a

hundreds

of

dollars

of

at

vicinity there

promise of the future to pledge funds for an un¬
precedented program of private and public construc¬
tion.
And throughout the region, the
availability of
sufficient electric power dimmed the memory of those

change the pattern that at

indicator points toward
for

we

Northwest,

the

Forecasting in advance the full year's course of such a
as the industrial and business econ¬
omy of a nation or a region can never be without a cer¬

present

millions

man

Events which

and the

announcements

were

complex operation

may

Pacific

the

Portland

un¬
Thcs. w. Deizeii

see

During 1954 there were
indications, in our own im¬
community as well as

growth will continue
steady and healthy pace.

of

tain element of risk.

and

young

that

In

tion.

continued

the

own

our

been

$400 million

also

good starts.

companies
substantial reserves,

President, Southern Railway System

The insurance business

atmosphere is
air of optimism, as

manufacturers

six

sizable

1955.

is

has

an

the

now,

It

quite satisfactory.
Production of Midwest farm products, with the excep¬
tion of Spring wheat, was very good in 1954. Soybean
production set new records in Iowa, Minnesota and
South Dakota.
The Fall sown grains (rye and winter
picture

agricultural

is

about

Generally speaking, manufac¬

look

area

of

DeBUTTS

during 1955 is better than fair. There
principal reasons for optimism in appraising

three

mobile

John W. Devins

down, and the demand for homes,
highways, business and
industrial

acreage.

HARRY A.

The outlook for business in the property and casualty
insurance field

it

Building
signs of a slow¬

Since

(4) well-located

DIEMAND

When the economic

sustained, strong

a

offering the investor the

potential

A.

President, Insurance Company of North
America Companies

benefits.

indicates

throughout

developed

newsworthy year, into which will be encompassed
the story of our continued
growth and the constructive
steps toward serving that growth with sufficient quan¬
tities of electricity developed
by our greatest natural
resource—the magic of falling water.

panies.

demand for these products.

reserves.

believe

eventful

an

and

steel,

mediate

I

resources.

terials

bought at a discount
capital and oil and gas

working

from

hope and belief that 1955 will be

our

charged with

many

greatest appreciation

It is

wallboard, roofing, plumb¬
ing supplies and other building ma¬

from

net

legis¬

closely tied to the general econ¬
omy.
When factories are humming
and payrolls are up, this situation is
immediately reflected in increased
premium receipts of insurance com¬

plaster,

the end of the boom, about 2% years
ago, there has been
a
large-scale shake-out. As a conseauence, the shares
of many companies may now be

indicated

of

orderly development of the region's remaining hy¬

droelectric

The Strength of the Economy:

Minne¬

Iowa, South Dakota and Illi¬
its freight is both indus¬
trial and agricultural.

1955 will usher in a period of re¬
public enthusiasm for certain Western Canadian

time

set

is

operates

of

particular

own

utilities, the private utilities and
Government; but together they bespeak

Federal

an

good through

and

survey

own

partners

the municipal

its

the months ahead.

sota,

nois,

different, requiring its

and

are

that

year.

railroad

Our

is

served

area

also believe that

stocks—this

little

a

lation

1955.

Since last October, business conditions throughout the
have shown an upward

business

new hydroelectric proj¬
other time in history. Each of these

any

JOHN

Northwest

trend,

proposals for

more

at

proposals is

Minneapolis & St. Louis Railway has had a good
in 1954, and further improvement is expected

at

Sundre, Savannah Creek, Alhambra and
the oil-hunt in the relatively un¬
explored Foothills Belt of Alberta and British Columbia.

I

on

it.

elsewhere intensified

newed

than

the
go

that makes Southern Rail¬

one

believe that the South is

turers

fifty-four

was a momentous year for the
Canadian gas industry.
Important steps were

Western

same

potential' as a producer and as a market. More
growth is coming and the railway intends to be ready

are

now

Thereafter, however,
Canadian oil will face strong competition from Arabian,
Venezuelan and Far Eastern crude, particularly in such
relatively proximate and seemingly "natural" markets
as

why such progress will

reason

its full

A

crude

refinery facilities

completed.

are

of it to produce

use

optimistic about the outlook for 1955.

We

has

rather in

ward

an

ects

among

the

service.

rail

in the future is the

problem of the Western

cil

been in

not

equipment

opment of increasing skill in
better

the Southern
din the devel¬

on

of the region are working toward increased
supply. In the past year — since the national
Administration's
announcement
of
its
"partnership"
concept of resources development — there have been
power

President, The Minneapolis & St. Louis Railway Co.

The basic

A. Davis

being made

Steady progress is still

uncovered.

Joshua

inconsiderable order, nor does PGE stand
it.
All of the electrical distributing

an

facing

portation needs of an expanding economy.

alone, oil and gas re¬
valued at over $3 billion on
present-day worth basis, have been

Canadian

in

31

systems

serves,
a

South has been

It is not

alone

clearly
expressed in the hundreds of millions of dollars spent
World War II for improvements of all
kinds to enable the railway to serve better the trans¬

Western

and

the

in

since the end of

way

Over $2
into

confidence

Southern's

New York City

some

(491)

per

capita income, which

the

needs

of

new

industries

as

they develop.

Continued

on

page

32

32

The Commercial and Financial Chronicle.. .Thursday, January

(492)

Continued jrom page

payment sales

31

of

J.

WILLIAM

DRAKE

400

The

which

commercial

and medium-sized

perform

credit

and

completed

evolved

and

finance

companies

supplying

ploying to

immediate

businesses

have

just

small

activity,

high

unprecedented

em¬

came

great extent the major

a

part of their present resources.
In

1954

vances

by

totalled

$3.2

—

billion

compared

by

ten-year

them

volume
1951

riod

of

$536 million

the

to

period

time

approximately

phenomenal growth

a

financed

since

finance

commercial

companies

ad¬

receivable

accounts

open

in

In

1941.

subsequent

the

45%

figure.

quadrupled
commercial finance

have

companies

William J. Drake

100%

increase

had

in

purchased

over

attaining

that

high

The
even

of

progress
more

the

finance

when

capital

company

industry

the

is

growth

considered.

is
of
In

the last c'ecade the capital structure of the typical com¬
mercial finance company has increased some 300%.
Bank loans to commercial finance companies have also
in a substantial fashion.
A survey made by

increased

the

Robert

Morris

Associates in 1954 reported that fi¬
comprising commercial finance com¬
installment sales finance companies and con¬

companies

nance

panies,

finance
companies, had lines of credit in 293
leading banks for unsecured bank loans exceeding $3.6
billion, or 57.77% of the capital, surplus and undivided
sumer

profits of the said 293 banks, and that the predominant
ratio of such bank advances
ratio ranging from

3 to 1, with the over-all

was

1 to 1 to 5 to 1.

With American

industry now producing a gross annual
product of $348 billion in terms of dollar totals, and with
practically all predictions for 1955 showing a continua¬
tion

of

the

toward

high

the

level

close

of

of

business

1954, with

an

5-10%, commercial finance

some

activity
over-all

company

executives

slackening in the demand for essential business loans
a secured basis, and the
employment of their special¬
techniques in the financing of open accounts re¬
ceivable, imports and exports, industrial and commercial
equipment, business inventories, government contracts
ized

loans—all

with

view

a

of

helping small

medium-size business to meet competition, to ex¬
pand, and to obtain the necessary funds to manufacture
and market new products.
and

That secured commercial

financing is receiving greater
greater acceptance in the business world is demon¬

and

strated

by the fact that the functional market for

mercial

financing

has

com¬

been

widening. In addition to
accounts receivable financing—the backbone of the in¬
dustry—and inventory financing, the industry has made
great advances in

some

forms of

newer

financing; such

the leasing plans on commercial and industrial
equipment and machinery, the financing of mergers and
acquisitions, the financing of television
and
motion
picture programs, the financing of budget accounts, and
the rediscounting of the growing volume of
paper of
installment loan and consumer-loan
companies.
finance executives do not see any slack¬

Commercial

ening of demand for their funds in the aforementioned
marKets in

1955.

accelerated
in

the

n

matter of fact, they see a
greatly

a

in many of these fields.

pace

field

finance

As

of

mergers

and

For

acquisitions,

example,
commercial

executives, who have evolved impleenting techniques which has made many of the smaller
company

medium-sized

and

believe

that

of

mergers

while

companies

they

will
be

can

past

officials,

Federal

Attorney General, will frown

solidations,

the

possible,
particularly the

large

mergers and con¬

on

encourage

strengthened

year

those
and

where

weak

discontinuances

prevented.

They
funds
and

of

increase

an

policies

in
of

the

demand

for

their

of

modernization

plant

equipment.

They believe that the enterprising busi¬
is realizing more than he ever did before the

nessman

that

toll

see

effectuate

obsolescence

competing

tiiat

one

out

is

business
of

every

taking in the relative standing
units.
He knows, for example,
five machine tools and metal-

forming

equipment units in America's metal working
industry is over 20 years old. He realizes that more than

half

the

of

nation's machine

tools

is

at

least

ten

years

old.
He

knows

that

demands set up
words

something must be done to meet the
by the current and ever insistent watch¬

of the market place:

cost savings, expense reduc¬

tion,' productivity improvement. Consequently, he can
no longer delay
the replacement of below standard or
obsolete

profits

tools—facilities

with

their

that

inefficient

are

eating away at net
.production
and
costly

maintenance.

Accounts Receivable
Five

decades

Financing

mew

commercial and industrial




equipment

has

cash
the

on

financing could

and

intrigued

subject

for

fi¬

many

many

on

deferred

industry

every

of this form of financing shows that for

about the only inventory loans made were

many

years

those

secured

by commodities listed on the Commodity
The commercial finance companies proved

Exchanges.

to the business world that the

practice of limiting inven¬

tory financing to staples was unnecessarily restricted.
They therefore removed the bars to this ready means of
financing

receipts, factors' iiens

It is

arrangements.
either in

state

or

product or commodity, indeed,
raw material, that does not

a rare

finished

a

the security de¬
field warehousing

application of

the

through

vices of trust

or

lend itself to this form of financing.

The
field

finance

commercial
of

in 1955

as

heights, particularly

new

industry

believes

this

that

financing will undoubtedly expand
the demand for working capital funds reaches

inventory

competition stiffens.

as

Coin Machine Vending

businessmen main¬

and during the
picture has been shown to be

recent form of financing engaged in

financing

companies is the
Since the end
of the war, merchandising via coin machines has ex¬
perienced a phenomenal growth.
Commercial finance
companies have played a considerable part in developing
such growth and look forward to even a greater activity
in 1955 in this field.

same

economy.

Therefore,

in

that

of

1955, the commercial

there

will

be

finance

industry

greater demand

a

for

this

than ever before.
The looked for
competition in 1955 among manufacturers,
distributors, jobbers and dealers in getting their products
will

consumers

of

necessitate

financing,

the

that

company

does not have

into

immediate

favor

with

the

a

public, will find

this method of finance the best offered to get its
product
to the public in the quickest time and in the
largest

the

of

some

finance

commercial

financing of all forms of coin machines.

Additional

the above

to

several other

are

mercial
into

Financial

Specialized

addition

In

is

flexibility of
credit to keep pace in this highly competitive market.
Also, the very rapidly growing concern, whose product
or

by

greater demand for this

a

especially for

inadequately financed

comes

A comparatively

in

petitive
believes
form

the

the postwar period and in our present high com¬

finance

Techniques

methods of financing,

the

companies in

that will

past

come

in 1955. Most commercial fi¬
now making loans secued by liens

greater prominence

companies are

nance

Some are pur¬

existing machinery and equipment.

on

there

specialized techniques evolved by com¬

Within very recent times, one such
company, by the
employment of commercial finance company funds, saw

with or without
lecourse,
retail accounts,
whether they be open-book accounts, or of the so-called
budget or installment variety. In many cases, also, these
companies are financing corporate reorganizations, mer¬

its

gers

quantities.

sales

course

from

expand

of

$1,000,000 to $50,000,000 in the
While this company had phenomenal

one year.

with

chasing,

good

a

consumer

legion of other growth companies,
acceptance of their products also

attained enviable profit records

through the

use

of

com¬

mercial finance company resources.

Equipment Financing

and acquisitions, secured on the stock on long-term
and receivables of other enterprises.

notes

The legitimate credit

mism.

of

commercial

sizable

demand

efficient

points.

again

lower

and

It

and

industrial

equipment are in
businessmen look for more

as

cost

methods

is

contemplated
manufacturers, distributors
commercial

that

to

companies in the past in great volume.

will

be

used

by

prospective purchasers of

or

industrial equipment in

and

GUILFORD DUDLEY,

1955

on

a

predictions

Gloomy

The businessman is

has

commercial

insurance

hit

a

far

will

now

cash

be

be able to buy

the

We

pay the balance with the
allowances. In effect he will

life
an

ten

years

chinery; eight

years

with a long-term repayment
for machine tools and textile ma¬

newest and best

and equipment

they will find

themselves severely handicapped in the competitive con¬
test.
At the same time, most of
them—particularly the
small concerns—find

that the securities

market

is

pres¬

ently unattractive for obtaining equity funds. Also, they
cannot afford to cut deeply into their
working capital
for large machinery and equipment
outlays and will pre¬
fer to budget payments over

avoiding too deep

various

plans
enable

chinery

on

machine

a

itself

the

of
the

a

a period of months or years,
drain on working capitial. The

commercial

individual

scheduled

finance

purchaser to

companies,

pay

for

ma¬

Guilford

Dudley,

to

economy

the
is

has

about

The liquidation of
been completed and

crease.

All of these factors will tend to

insurance

life

never

create

an

environment

The market for
becomes saturated because of the

conducive to the sale of life

insurance.

constantly increasing population, the

formation of new

families, and the improved financial status of individ¬
uals create constant new sales opportunities. As a mat¬

and annui¬

that

the

ter of

fact, premiums paid for life insurance

re¬

ties

1954 represented only 3.3% of annual per¬
income compared with about 5% 15 years or so

basis, out

of

income

during

United

permit substantial amounts of their funds to be

tied up in customers' installment paper. The
plan offered
to manufacturers and distributors by commercial finance

companies of purchasing or discounting their installment
paper will appeal to large numbers of them.
services
are

will be availed of to

in

of

ago;

and

the

addition

commercial
to

finance

supplying

funds,

a

position, economically, to perform the functions of credit
investigations and collections. The commercial finance
companies have evolved techniques and developed staffs
to whom this work is largely second nature. This knowhow certainly cannot be duplicated by each individual
and

distributor ;except at a prohibitive
factoring plans of commercial finance
companies make possible the complete elimination - of

The

credit and collection departments.

:

\

Resultantly, commercial finance companies

-

are

•

-

offer¬

the total of all life

States

the

is

insurance owned in the

equivalent of

not more than

year's annual income, so it is easy to see that the

one

nation

is not over-insured.

However, the sale of new life insurance is only part
the

problem faced by the life insurance companies

today.

The challenge of a higher yield on investments

of

demands

greater extent in 1955 than previ¬
Manufacturers and distributors are not in a good

expense.

point

national

busi¬
there
should be relative stability of consumer prices. Expen¬
ditures for construction should continue at about the
same rate as in 1954, or quite possibly show a slight in¬

sonal

ously.

indicators

the

that

in 1955

penditures.

Looking at it from another angle, manufacturers and
distributors of all forms of equipment will find that they

specialized
companies, which

will roll up

produce, will meet with ready

will

The

industry

pretty well stabilized. There appears
to be little prospect of any untoward
increase or decrease in Federal ex¬

Jr.

inventories

ness

sponse.

cannot

It

for life insurance.

greater sales record
it did in 1954.

Available

for materials handling equipment;
equipment.

machinery

insurance

fact

six years for construction

Business concerns, appraising the competitive
picture,
know that unless they make replacements and have the

year

reasonable to believe that the

even

than

working capital

timetable:

better

seems

to writes off equipment payments as
Consequently he will be in a position to put
machinery into profitable production at once and

conserve

thus

to feel that

a

position

a

of

reason

outlay and will be able to

in

the pessimistic propa¬
1954 and there is every
1955 will be even

of

ganda

expense.
new

entering 1955 without the

are

handicap

businessman

machinery with minimum initial

of faster depreciation

aid

funds,

company

adverse

crease.

machinery purchases for 1955
depreciation allowances. By the use of

finance

Tennessee
an

the first quar¬
out, the sale of life
new high for the industry as a whole,
although cash surrenders and lapses
showed an industry-wide general in¬

stimulated

by speeding up

had

recession

a

Yet before the year was

of the fact that the Admin¬

aware

of

the sale of life insurance during

on

ter of 1954.

greater scale than in 1954.
istration

Jr.

President, Life & Casualty Insurance Co. of

effect

they

the specialized

required

instances,

many

break-even

meet

needs of industry and trade,

techniques
Every
indication points to a more extensive increase in the use
of these techniques, in 1955, than in any other period in
the history of the commercial finance industry.
in

of finance

The specialized techniques evolved by the commercial
finance companies over a period of years, for the financ¬

ing

1955 with opti¬

The commercial finance industry faces

acceptance of its product (the electrical broiler

consumer

field), nevertheless,

manufacturer

of

activity in pioneering with credit
devices, ranging from the financing of accounts receiv¬
able, inventory and machinery loans, and the financing
of

instant

writers

years

true in

to

practically

in

Inventory Financing
The history

their production schedules prior to

which

also

to

and

war

as,

numerous

high degree of safety

a

commercial

tain

of
see

on

specialty

method

evidenced
increase

no

and

the

obtain

can

of this form of

form

equipment

Statistics show that only by availing themselves

increase

finance

commercial

graphically illustrated

commercial

substantial

this

The special techniques required
a source of immediate

of

by

students

years.

receivables

have had very
shrinkage in volume.

a

a

Others, while not

figure,

None had

than

more

gross

what they had in 1951.

increases.

the

since

enlarge his profit margin, and resultantly, his
The freedom from red tape with which the

businessman

pe¬

businesses

profits.

nancial

over

Several

net

and

whether it be of the manufacturing or service variety.

of

finance companies.
Through the medium of this form of financing, the busi¬
nessman is able to get adequate
working capital to take
advantage of his trade discounts, increase his sales, and
likewise

wide variety of plans for the acquisition of ma¬

a

chinery

tool

agency, has been worked out completely

years

and

over-all

some

the

over

the

—

exclusively by the commercial
found increasing favor with

financing
businessman, with

to the financial

quadrupled;

has

form

financing

concerns

has

—

being in 1905.
the

the

or

mercantile

developed

this

to

that

growth has taken
place, with volume financed growing
by

into

make

to

financing,

of

medium-sized

to

further and greater

a

and

credit

the-gross amount of

on

financed

when

accounts

of

medium-size

of

year

a

open-book

financing of small

ing

business.

receivable

companies of the nation

function

the

small

to

Accounts

Conference, Inc.
finance

plans, have established secured methods
firmly that today they account for a

so

sizable portion of the over-all total of

\

Executive Secretary, National Commercial
Finance

financing

27, 1955

a

great deal of the attention of the top man¬

life insurance company. Restricted to
most prudent investment channels
by the insurance departments of the various states, as
they should be, life insurance companies have a par¬
ticular problem in attempting to raise the yield on in¬
vestments in view of our national monetary policy em¬
agement of

any

only the safest and

phasizing lower interest rates.
There has
surance

at

lower rates

been

lower
are

-

considerable discussion about life in¬
rates.

merely

the present, substantially
-"hope" for the future except

For
a

the buyer of large amounts of insurance who can
qualify for the preferred risk plans offered by. most
companies. Lower premiums pan only come with a high

for

vield

on

investments that will allow- companies to raise

Number 5398... The Commercial and Financial Chronicle

Volume 181

policy reserves. The
picture has improved somewhat in the last
year or so and there appears to be no reason why com¬
panies cannot maintain or perhaps increase slightly the
yield on mean ledger assets during 1955.
the rate of interest guaranteed on

M.

investment

BYRON DUNN

The

I

for this

look

gains.

continue for

to

the

present
fall

the

than

much

pace

of

earnings last

year,

cluded, there

were a

The

about

continued

ucts

from

tinent

position

market in the '29s.

as

careful

for this

M.

few

of

at
certain date.

Byron

Dunn

The seller must give better value and
profitable business and

big!

better service which will lead to

prosperity for each community.
the various types

We find

of firms are teaching their
better job if they

officers and personnel the need to do a

expect
their
not

make

to

companies.

for

and

firm that does

It is our opinion the

will fall

research, study and education

into

enter

themselves

for

money

more

by the wayside, and we are watching those firms very
Every loan is carefully scrutinized, and if and

closely.

they need to borrow funds, we sell them on the

when

idea

advance,

to

we

curtail

loaning to

our

that

only the keenness of American ingenuity to keep con¬
ditions healthy. There is no need for the public to be¬

panicky if there should be a change in the price

come

commodities

certain

of

or

I

depression

do

not

anticipate

out

period of adjustments.

a

—

national

our

increased

increase

hopeful

are

for

as

More

the

level

general

babies

is

other

of

the

The

need

individual

rise

income,

been

responsible for this

Thomas

W.

as

gazing

is

grown

both

close

service

to

added

the

and

num¬

for the year were good, and it was

possible to strengthen further the company's financial
position by the transfer of a substantial sum to surplus.
year's end number about 115,000,

employees now exceed 32,000.
in

households

territory

our

Today, 80% of the

have

telephone

service;

eight years ago the figure was 60%. Such steady growth
is

characteristic

Despite

large

the post-war

both urban

of

construction

demands

to

and rural communities.

expenditures

throughout

period we have been unable to satisfy all

demands for telephone

remain

service and,

high for

as

some

we

time,

expect these
we

planning to further expand our construction

in

already working a six-day week.

health

conscious¬

Based upon leases already signed
negotiations now pending together with other
property submittals now being con¬

and lease

sidered,
a
mately 60

are

now

expendi¬

projection

to

in

at

was
an

the

being planned
three-year period.

can

at

a

them¬

the

to

may

cember

has

given rise to
This

business

business

activity

usher in

the

spirit

a

of

will

new

Defense
down

leveled

Disturbed

off.

conditions

in

by

in

and

instead

cession

of

which

1954

a

did

within the hands of the

1955

should

The

but

reach

at

This will

consumer
can

on

spending.
Manufacturers and suppliers who
operations on a maximum production
needs will

consumer

against rising prices.
wise

be

factor

a

having

in

is

little

doubt

the

keystone

can

direction.

same

Shoe

inven¬

Our Administration has proven its friendliness to busi¬
This encourages new business

ness.

ventures, industrial
expansion, and large investments by private capital in
major projects. Huge sums will continue to be spent
throughout the country in large housing projects, high¬
way construction, the building of hospitals and schools
and in the development and
production of our natural
resources

which

are

limitless

in

many

fields.

Add

to

this the billions of dollars of

have

you

of

a

sound

basis

government spending and
which to assure a high rate

on

employment.
definite

are

indicators

Fresident,
at

P.

Basic

towards

a

substantial

EELLS, Jr.
Refractories,

Incorporated

Assuming steel production during 1955 will maintain
an indicated rate of
75% of capacity, the refractories

industry which relies upon steel for a major part of its
business should show a
very fair degree of improvement
over the year ahead.
The industry will benefit not
alone from the increased
volume of sales but likewise from the
"belt tightening"
induced by last year's

slump.
Supplies of refractories will exceed demand moder¬
ately to yield healthy competitive conditions with
buy¬
ers
benefiting from better quality and service rather
than lower prices.
L.

J.

FAGEOL

President, Twin Coach Company
1954
sales

saw

Twin

volume

and

Coach

Company achieve

the

largest

the

second largest net profits in its
27-year history. It is natural,
therefore, that we face the
new year with
optimism and confidence. The Twin Coach

product

diversification

augurated

about

five

in¬

program,
years

ago,

is

now

beginning to show most encour¬
aging results. In the aircraft indus¬
try, we have steadily expanded our

manufacturing

to have
Asia, particularly

as

one

facilities

of

the

and

leaders

now

in

this

high.

an

of

the

we

are

base

upon which our
the broadest that it has ever
industries of this base, among

and

1954 volume

While

we

of

Buffalo

in

all-time high

steel, construction, automotive, chemical

military, all

line

in 1954.

appears

American economy rests is
As

this

rank

on

was

the

the

been

mean

to monumental road
estimated new home starts in
least
1,250,000.

that

hold

to

brought down more in line with
consumer
buying, the output of shoes for 1955 should
be somewhat greater than the
520,000,000 pairs produced

at

should

1954

continue

Aggressive competition will like¬

field.

steel

connected,
activity in

our

a

their

gear

basis

1955

have a good year in 1955.
highlighted by heavy in¬
ventory withdrawals by steel users.
This figure is
estimated
at from
eight to nine million ingot tons.
Even if 1955 production was just restored to the level
of
1954
consumption, this great additional tonnage
would be required.
We believe the industry this year
will be operating at approximately 85% of capacity.
Steel

to

Edison

healthy and
economy
and placed
a sounder and higher

consumer

the

industry, one of the bellwethers
American economy and an industry with which
closer

Harry

re¬

With increased population the average
family income
in this country has continued to rise and is now some¬
what over $5,000 per year.
You can translate this into

the

first

was

at

all-time

an

expect some tapering off
division activity

aircraft

quarter

of

1955, due to

contract extensions and the necessity
for retooling new orders, we antici¬

pate that overall

operations will

highly satisfactory.

pledged themselves

programs

de¬

purchasing dollar.

1954, and this, despite a general downturn in indus¬
try activity, should again nudge upwards towards the
$40 billion mark. Not only has the Federal and State
building

i

brought about

occur

in

Governments

business

readjustment

necessary

thing

events

sharply

industry which set
,

k

|

strength-

pression, the moderate business

Indo-China, and in North Africa should mitigate against
further defense cuts at this time.
;
The construction

of 1955 with

and

Those who foresaw at the beginning of 1954 only gloom and doom
undoubtedly realize that their
pessimism had very little foundation

buy goods and services.

which has been
grade since the middle of 1953,
spending,

I

to

now

one

upwards.

|
I

ened confidence.

in the hands of the American

money

with which to

|

definite

continue

year

optimism

in 1955 will continue
high level and that wages and overall disposable

vast amount of

f;

next

increased

a

uptrend.

safe to say that employment

consumer

the

prophesy

hold

hazardous

affected

an

explo¬
by the

on

income will continue to creep
a

in

bomb

Therefore
future

be

same

taking

make

case

atomic

a

place

Washington within
the

for

;

i

are

The months of November and De-

this

world

Events

can

exceedingly

an

the

difficult

live.

approxi-

openings

H.
in

place, and at the
more

of

store

new

now

business-pickup for 1955.

can
only guess.
How¬
the home front, it is per¬
haps a little easier to see things
clearly and at the same time be
reasonably
optimistic.
It
would

Rudolph Eberstadt

seem

made

Siberia

of

ever,

them

order to expedite




which

and

employees immediately associated with the planning are

In

have

groups

indulged

has

much

a

as

is

been.

1955.

types

what

this program, the

in

all

Russians.

There
tures

medical

and

of 1955 and 1956.

years

tories

products.

drugs

much

sion

greatly in re¬

preciably.

and

of

acute

hour

well

are

The average daily rate for local calls was ap¬
proximately 14,000,000, an increase of 6% over 1953,
and the number of long distance calls also rose ap¬

Our shareholders at the

sport

a

selves felt

figures.

Financial results

its

living

more

place

as a

in

before—were

non¬

time of the year, but in truth for the
average business¬
it is perhaps one of the less profitable occupations.
The world economy today is vastly
complex and the
increased speed of communications

as

local and long distance calls reached record

ber of both

for

stemming

man,

and

long

2,300,000.
During the past year, some 165,000
new
telephones — more than ever

Eadie

in

which

now

ing

President, Barium Steel Corporation

Crystal

in

nation and as an
economic force, and the task of pro¬
viding suitable telephone service has
naturally grown with it. Since 1947
the Bell Company has added almost
1,000,000 new telephones in its On¬
tario-Quebec territory, bringing the
total

applications

Stores, Inc.

company's expansion program calls for the open¬
of approximately 40 additional units during the

There

maintained.

cent years,

on

EDISON
Brothers

Our

ness.

in

strong

so

income

and

has

are

chemicals

sociations, governmental bodies and other

time,

activity

remained

should continue to do

Canada

more

standards, larger
education programs by medical as¬

reduction in foreign trade.
Demands for new homes and goods

employment

value

and

continual

much smaller

industrial

services

in

Another important factor in the industry's
expansion
the growing awareness on the part of the
general

some

and

use

of

Canada remained close to the 1953 peak despite declines
in certain types
of manufacturing production, lower

prairie grain yields and

group

present

in

are

mean

types

EADIE

of

that

new

a

the

higher sales of medicines, drugs
pharmaceutical preparations re¬
quired for the healthful rearing of youth. The study
of geriatrics and the increased
emphasis being placed
on
better health for older people are also
stimulating
the development and sale of
drugs and medicines.
and

President, The Bell Telephone Co. of Canada
1954

At

products

also

other

the past

over

furans,

veterinary medicine and

of

In

these

the market broadens for

as

but rather a long

population.
THOMAS W.

allocated

Pharmacal,

Among the social and economic factors which are
contributing to the expansion of the drug industry is
the consistent rise in population caused
by a mounting
birth rate and the gradual extension of the life
span of
the American people.
Basically a consumer industry,
the drug business stands to benefit from
any population

For the stability of

production if jobs are to be furnished for

the

Norwich

of

case

remarkable.

cases

RUDOLPH EBERSTADT

Midwest, there is need of greater selling efforts of

our

appropriated
necessary ac¬

extensive investigations, will be found in
The outlook here is promising.

our

change directions for a short time.

drawn

substantial amounts of

market should

stock

if the

reason

medical fields.

care.

healthy and it will take

and

well

as

public

class of people.
I feel business conditions are

per¬

factors

dominant

principally in
antimicrobial chemicals.

We

way.

from

If they do not have the

doing certain things.

of

capacity

the

many

has been

$4,000,000

human

them,

the

large number of

a

their

carefully
salesman¬

In

synthetic

both

ship. We are back in the competitive market and good
salesmanship and good business methods will pay off
and pay off

clinics,

economic

for research,

years

time,

type of business should study their progress
—but go forward with a lot of courage and

C. Eaton

than

more

here in the Midwest feel each

We

is

ing and in

anticipate this will come
speed or at any

and

tivity. The overall results of these
expenditures have been encourag¬

the

fast

and

continue to be
important and

money

building industry as well
home ownership.
However, we

a

social

eral years as

payment and as soon as times
tighten up a little, these same peo¬
ple will move together with mem¬
bers
of
their families.
This will

not

prod¬

new

rapid strides made by most
companies over the past sev¬

drug

the stock

do

HARRY

for the

People are buy¬

as

of

laboratories

Research

ing homes with a very small down-

hurt

few exceptions.

flow

result, in further growth for
the industry in general in 1955.

reaching saturation point.
I think the building industry is in
same

our

President, Edison

in¬

company

should

analysis of the need of new homes
leads
us
to
believe
we
are
fast

about the

our

however, coupled with several

longer

A

1955.

in

While most companies enjoyed higher sales and

^

another nine months but do not see how it can continue
at

year, I believe that, barring some interna¬
catastrophe, 1955 will be one of the best years'
history.

no

building industry, particularly the building of
homes, has been the important factor in Middle
economy.

coming

tional

drug industry

With

The

West

the

on the whole had a good year in
major change in the country's economic
condition, the coming year should see additional modest

President, National Bank of Commerce, Lincoln, Neb.

new

C. EATON

President, The Norwich Pharmacal Company
1954.

*33

(493)

of

L. J. Fageol

our

the

aircraft work

fact

that

in

corporate

our

name

to

"Twin

is indicated

stockholders,

April annual meeting, will be asked to

be

The importance

approve a

Coach

and

by

at our
change

Aircraft

Company."
In our Kent, Ohio, motor vehicle
division, we have
recently introduced a new miniature vehicle known as
the Fageol Pony Express. These are now being used in
steadily-increasing numbers by the Post Office Depart¬
ment.

early

They will be introduced to the commercial trade
in the year. This truck definitely fills the long

existent

need

economical
It
up

is

my

for a compact,
delivery unit.

opinion

at least 30%

lightweight, high

that bus production in

over

last year.

speed,

1955 will

be

Normal replacements of

city and intercity coaches should provide

a

market for

the

look forward with fair confidence to

Continued

on

page

34

34

(494)

The Commercial and Financial Chronicle...

Continued

FRANK

from page 33

4,60Q to 5,500 vehicles as compared to 3,65-3 sold in 1954.
An important phase of our bus program will center
around the sale of new Fageol-Leyland diesel engines
as replacements for worn-out gasoline or diesel engines
The several hundred installations of this

in old vehicles.

type, made to date, indicate fuel savings
cents per

of up to two

Jamestown,

tion, which

better

than

at

others

still

high level of production.

a

with

ment for amortization

tion

have

tax

favorable

been

With

level

the

thus

and

free, to

at

It

appears that the
demand for
housing will continue at a high level,
stimulated by the government's lib¬
eral financing plans and
by a rate
of population increase far beyond all
DeCoursey hales
expectations. Construction programs
are under way for roads, schools and
state and municipal housing and other building require¬
ments.
Moreover, defense spending will continue to be
a
powerful influence for keeping the economy at a
high level.

this

All

high

a

continuation of

and a likelihood of further increases in the
and fringe benefits.
Therefore, it appears

rates

wage

employment,

good

means

wages,

spending on the part of the public generally will
be on an extremely high level.
Retail trade and sales
of consumer durable goods should both be quite satis¬
that

bies

hob¬
time, should experience another good

Luxury items, particularly equipment for

factory.
and

leisure

ample funds should be available for capital expansion
of industry and for the

also be

of savings.

financing of required residential

The stock market, despite the recent setback,

unfavorable

factor

the

for

coming

increasing competition abroad

the economies of other

as

continue

ment

continue to operate its fiscal

can

so

expand.

to maintain

as

balanced

to

However, if the govern¬

balanced

a

might be the

year

countries

fully

One possible

to reflect optimism for the future.

appears

budget, 1955 ought to be

a

well

policies

suuccess-i

if not

economy,

a

highly satisfactory

year.

are

home

look

ever,

as

I

it, the

see

economic

the

into

term

a

as

is

future

long

♦

always

as a year.

1955 looks like

year

loans

new

an

one

How¬
of the

all around financial standpoint, that this

country has

ever

tion

be

should

enjoyed.

at high
ahead at a
lively
clip, and consumption de¬
mand for the better things of life
move

20-year

swing

at

All

for

then

followed

Flanders

it

by having

up

it

make

segments

of

the

nation's

has

economy

favorable

implications for banking and it can have a feeling of
over this year's operations.
Disposable personal income may possibly reach a new
high resulting from high employment, lower income
taxes

and

larger dividends

won

an

paid

stockholders and

to

Business

the

year

few

activity should

but

some

continue
slackening may

in

This may

own.

come

However, if there should be

especially
that
my

we

S.

the

United

high

for

appear

in

most

the

have

L.

D.

in

our

feeling that under Ike,




we

Eisenhower

This

tension.

three

by

drought,

It is

area

away from

did under his predecessor.

years' of

consecutive

and the farmers' income
considerably
curtailed.

been

However,
tinues

housing

the

boom

con¬

substantial

and

unabated

M.

business

and

public works expendi¬
tures are being planned. Retail sales
at Christmas time broke all records,

FINLAYSON

inventories

and
S.

M.

Fleming

credit

at

all

levels

are

in

There is ample bank

good condition.

available, and during the past

most businesses have made considerable progress
in improving the efficiency of their operations.
There
is every indication that the economy will move gradu¬

goods

industries continue to operate at present levels.

will

continue in satisfactory
However, it also seems clear
highly-competitive condi¬
tions applying to many types of busi¬

ally upward during the first half of 1955, and very likely
a longer period of time, if the steel and automobile

for

volume.

to

ANDREW FLETCHER

the

in

1954
new

believe

will continue

year

that

President, St. Joseph Lead Company

unabated

and there is

The

reason

only the most

will enable many

good

a

basis for

the

follow

improvement in lead and zinc
encouraging.

are

year

confi¬

Index

Board

Reserve

Federal

of

generally
Industrial

this respect, this past
typical.. As the Federal

In

Activity.

;
is

an

Lead and zinc are basic materials and as such

businesses and in¬

margins.

prospects for

consumption during the coming year

ener¬

dustries to achieve satisfactory profit

was

Board index started declin¬

dence in the future of the Canadian

Reserve

ing during the latter part of 1953, so
did lead and zinc consumption. The

and

other electronic devices appears

"

to be quite sound.

•'

t

V

life

insurance

been

business

evident in most

for

several

years,

and

we

The

demand for investment

funds

particularly
The

in

prospect

dence

is

at

a

high level,

the

for

construction

mortgage field.
1955 in the resi¬
field

is

little

if

below that of 1954. Furthermore,
need
for increasing
efficiency
modernization
in
industries,
utilities and transportation will .con¬
tinue to impel management to the
employment of grea'ter amounts of
capital per employee. This process,
any

the

and

continuing a trend long existent,
spells further economic progress for
the

nation,, in which life insurance
companies, through investments, are
happy to play a major part.
; •
Edmund

Fitzgerald

With
public health at
favorable level in history,
rates

and

should

holding

remain

low.

its

most

mortality
among policyholders are low
Operating costs are at -least

These two items, with investment returns,
the major factors affecting the net cost of life in¬

surance

consumption
through

half of

1954, leveled out during the
months, and started to rise
as
industrial
activity

summer

in

October

up. Later in the Fall as the
crossed the previous year's
monthly figure, lead and zinc con¬
sumption - did
likewise.
Business
opinion seems to indicate that indus¬
trial activity this year will be higher

picked
index

1954, but not

Estimates

of

policyholder.

good results in them

mean

savings to the

high

as

as

steel

1955

1953.

suming industries,
zinc responds

of

this

metal

tion.

10% to 13% higher than 1954.

are

close

of

over

Similarly, lead

mates of

the major zinc-con¬

accordingly, it would

nearly 90,000 tons

Andrew Fletcher

activity

and automotive production, two of

to

950,000

mean a

tons,

an

increase

and

rise about 10%

of

last year's 860,000-ton consump¬

consumption

major outlet for the metal,
manufacture

If

consumption

based

on

1955

esti¬

activity in the construction industry, which is
as

well

tetra-ethyl

a

forecasts of battery

as

lead

production,

should

to around 1,200,000 tons.

Despite the 1954 surpluses in both metals because of
unconsumed

their lows
of

lead, and zinc by 2.25 cents to

This
of

imports, lead and zinc prices advanced from

by 2.5 cents to 15 cents

anomolous

an

situation

over-supply

stockpiling.
ciative

taining

a

was

Although

of the

even.

and

of
both
the first

continued

of

areas

in

decline
metals

than

Favorable trends have

are

we move further

in
President
easing of war
has been plagued

the

and

year

country

indication

serious

confidence

of

gree

ought

probably not

any

a

proved psychology are the high de¬

of

expect their continuation in 1955.
Fedderman

will not back Nationalist
China to the hilt.

World War HI than

prevented

Other factors in the im¬

Increasing popula¬
tion, the anticipated high level of housing construction
and the general economic
well-being
of the country seem to
imply that
the demand for capital and consumer

.

to pass—but

shows

earnings.

had

and

depression.

worsening of the inter¬

a

bank

FLEMING

M.

could

last

to be comparable with the 1954 level.

undeserved victory at the

States

a

that sound monetary management, combined with sensi¬
ble banking and business practices

Information available today gives the
impression that
general business volume in Canada during 1955

year

if

produce

of 1954,

President, Canadian Marconi Company

the

should be predominantly one of
peace.
Communist China may make a move to take
Formosa—
new

should

this section.

national situation any evaluation of this year's
prospects
made would of necessity have to be modified.

1955.

This

volume

loan

now

today, and its only alternative to following the radical
wing of the Democratic party is to form a Labor
party
of its

greater

a

factors

of

has

\

worse.

we

latter part

mism in

months.

-iwMia

element

year

readjustment began to level off -in
there was a resurgence of opti¬
This was based on the realization

business

the

As

the

be assumed that some part of the increase will flow
into the deposit institutions to be available for new loans
and investments.

Secretary of Labor Mitchell, in recently-blasting
"right to work" laws, may have been attempting to get
union leadership in a more
friendly frame of mind
toward the Republicans. If
so, it was a colossal case of
wishful thinking. Union
leadership is probably the most
left-wing

SAM

it

EDMUND FITZGERALD

pons.

socialistic

a

President, Third National Bank, Nashville, Tennessee

can

The Democrats gleefully jumped in with both feet and

helped it along—and

as

Fitch

G.

Eliot

manufacturers

Houses

Senator

view

automobile models which

new

President, The Northwestern Mutual Life Insurance Co.

by encouraging Sec¬
retary Stevens to make a horri¬
ble spectacle of the McCarthy case

end

and

these

of

commercial

confidence

and

left-wing A.D.A.
balance
in
Congress can start it
again remains to be seen. The Re¬
publicans
threw away control of
both

Bank,

due to rebuilding of inventories. All

levels.

radical

a

Exchange

high business activity, firm money

rates,

reasonable

a

these, coupled with continued demand from
already receiving TV service, should absorb' re¬
ceivers at substantially the same rate as in 1954.
The
market for well priced and designed broadcast receivers

of

the pendulum has been slowed down
and
brought
almost
to
a
halt.
Whether

promise

FITCH

We look forward to 1955
of

areas

socialistic

companies

and

Milwaukee, Wisconsin

high

Inflationary indications are not now in evidence and
money rates will probably remain at or near present

kets

continue unabated.

The

G.

National

S. M. Finlayson
electronic business, which is experi¬
encing a marked growth at the
present time. Several new television stations will come
into operation in 1955, which will create additional mar¬

Produc¬

maintained

level, construction

insurance

record,

satisfactory result from the point of

There

best,, from

life

sales

build¬

all-time

an

getic attention to costs and methods
a

Marine

!

an appeal to
the buying public,
should experience a good year.

in the

Chairman of the Board, Interstate Engineering Corp*

Taking

or

loans.

that

With the introduction of

ness

FEDDERMAN

hazardous—especially for

ease

individual

outstanding performance in 1955.

President,

has had

that

L. D.

800

all-time

ELIOT

rate

for mortgage

inventories

strong influence toward the continued growth

a

high

a

Higher rates of interest for savers should

construction.

than

more

steel industry should operate
satisfactory level with the demand for their prod¬
from various sources and results for the
year might
establish a peacetime high.

a

ucts

Savings will also be at a very high level, so that

year.

another

for

The

large extent,

a

the

another

banks.

necessity of borrowings

are

of

increase in business activity
result in their build-up, cre¬

ating

burden of excessive debt.

of the

forces

planning

These factors have helped the agency

an

should

suf¬

ficient earnings to finance expansion

without

security.

'in

industries.

treat¬

retain

to

involved

which should be of benefit to related

and deprecia¬

able

at

ing will establish

Very

companies have succeeded in
modernizing their plant and equip¬
and

family

establish

anticipated, would

higher business activity

Indications

many
ment

problems

1954.

demand

operating

are

the

and com¬
mercial banks with other lending in¬
stitutions
will
experience a
good

considerable backlog of
orders, other industries find inventory positions favor¬
and

tan be

a

continue

have in many industries a

able

Reserve-Treasury accord of 1950 has also helped to

Residential and other building will

tha year in a
people expected.
We

than most

position

in

result

The country finds itself at the close of
much

bility in the dollar which has existed since the Federal

N, Y.

From present indications it wculd appear that we are
justified in being optimistic at the prospects of business
and banking conditions
t|his year.
A slight rise in the FRB index of industrial produc¬

President, The Bank for Savings in the City of N. ¥.

now

Tax questions relating to life insurance
policies were
simplified by the 1954 Federal Revenue Act. The sta¬

FELT

Vice-President, The First National Bank,

mile.

DeCOURSEY FALES

E.

Thursday, January 27, 1955

of

due

the

a

rising
to

one

mining

pound in the

1T.50

cents

prices

in

a

case

pound.

the

face

thing—government
industry

present Administration's

is

appre¬

policy of main¬

domestic industry, this palliative of stockpil¬
was offered in place of the tariff protection

ing, which

recommended

by the Tariff Commission, is not

a

per-

Number 5398... The Commercial and Financial Chronicle

Volume 181

manent solution to the problem of retaining "an
mobilization

base."

domestic

The

mining

adequate

industry

is

with

confronted

"dumping," as evidenced by Mexico's
recent waiving of the export tax on
fabricated lead
products, and excessive imports from lower-cost foreign
producers as is in turn evidenced by the increased im¬
ports during the last six months of 1954 when compared
to

the

six

first

(495)

months.

Stockpiling is at best only a
temporary expedient but, so long as it continues and
our government is willing to
absorb the surplus of im¬
ports, it is hard to see how the prices for lead and zinc
can recede from present levels.
In the case of zinc, the
price may even advance further, as the current level is

V.

DONALD
President,
Gross

FRASER

forward

Missouri-Kansas-Texas Railroad

revenues

Missouri-Kansas-Texas

the

of

Company
Lines

resents

and

ideas in business, and conscience re¬
minds us that the function of busi-

disturbing declines in traffic
earnings during the year. In
addition to the adverse adjustment

in

the

nation's economy, the Katy's

experienced

persisted for several

r

adversity

for

tion

of

the

policy will be at stake in

industry engaged in the domestic produc¬

crude

natural

oil and

Adequate oil and

gas.

supplies

industry.

are

The policies of our Federal
are
all
important to

Government

■

available

make

policies

en¬

to

find

oil

more

policies

Unsound

gas.

jpr ' Jl

Sound

and

domestic producers

courage
and

-

activities.

these

disrupt

can

and weaken these efforts. Today, we
face

a

number of issues that require

policy decisions of far-reaching sig¬
nificance.; *
;
decision has resulted

A recent court

■

in

control

of natural

production

gas

Power Commission.

by the Federal

This threatens to stifle the develop¬
ment of gas

supplies needed for our

Franklin

Wirt

expanoing economy. The Congress
will be called upon to make a policy decision on this
matter. Federal tax provisions, dealing with the unique
characteristics of oil and gas production, may be an¬
other policy issue of fundamental importance to future
supplies of oil and gas.
The

problem of oil imnorts will be

of

of the most

one

The tremendous expansion

critical policy issues in 1955.

foreign oil production since World

War II, particu¬

larly in the Middle East area, has created a serious world
surplus of oil. The recent settlement of the international
dispute in Iran, and the return of Iranian oil to the world

Surplus for¬

market, further aggravates this situation.

oil out of U. S.

eign oil is steadily pushing American
markets

export

taking

and

over

larger

and

larger

a

share of the market in this country.
The following

years,

than

Net Exports ( + )
or

Net Imports (—)

Exports

Average 1936-40

171

447

+276

Average 1941-45

220

420

+200

Average 1946-50

564

374

—190

844

422

—422

958

436

—522

1,050

401

—649

— —

Year 1953

during the preceding 12 months,
nas
been a slightly im¬

outlook for

This

1,065

350

1,150

300

the 1955 outlook.

1955 would mean

a

'

Especially

from

net exporter in the

a

to

encouraging

to

and

me

conditions

ture

rains,

others in the

as

result of

a

late

summer

and autumn

However, continued favorable weather conditions
during the 1955 growing and harvest¬

than

increas¬

••

•

During 1949, the early part of 1950 and a substantial

curtailed and

restricted without corresponding

re¬

in

oil

imports.

r

plied

an

about

ditional tonnages to our

prewar

to

Two

interesting

on the
Traileron-flat-car—the so-called piggy-back—service was in¬
augurated on one segment of the line last summer and
since extended to several additional points. Our service
is designed to attract the common carrier motor carriers
as primary users, and our relations with all common car¬

cordial

most

and

innovations

and

the

introduced

were

satisfactory.

Our

in

experience

15%

restricted the total income from U. S.
an

increasing extent.

daily.

in

1955)

and

oil production to

Domestic producing capacity has

been "shut-in" to the extent of more than

rels

its.

We cannot look

as

a

source

of

business

and

1,500,000 bar¬

Industry experience shows that domestic

to

higher prices

income.

new

through

come

reduction

a

must

It

volume

greater

of

Paul S. Gerot

of

expenses

throughout the

food

processing and distribution system. In 1955—prob¬
ably the biggest year in the food industry's history—this
will be a major challenge.
The days of huge profit
making in industry are passed. The days of efficiency
in order to make money for future development are

upon

us.

The food

industry in 1955 must begin to lay specific
plans for further development of agricultural research.
for
In

some

crops has been in cultivation
Our population is rapidly increasing.
the farmer we must work further

years.

cooperation with

towards

the

development

nutritious

process

food

of

new

with

ways

to

minimum

the

grow

of

and

waste.

So I would say to the industry
biggest problem it faces is obtaining
sufficient money for investment in the years ahead.
in

1955

the

WALTER

GEROULD

B.

President, A. G.

truckers—offers

a

people

they

as

golf

as

are

bright hope for

were

on

trend

in

our

participation in sports than
More leisure time
and higher personal incomes also are
causing greater participation in
sports.
Sales of athletic goods, not in¬
,

cluding guns and ammunition or
fishing tackle, for the industry and
our
company in 1955 will be from
1954.

while those for
slightly in excess of
$27,000,000. Earnings for 1955 should
000,000

Walter

always

a

sensitive

which have shown
that

we

may

with

setting in all over the country
degree in railroad carloadings—

barometer

of

general

conditions—

increase in recent weeks.

an

I think

ahead and the

distant

face the

year

well-founded

K.

C.

Chairman, United

•

more

confidence.

GARDNER

Engineering

&

increase

were

both

Foundry

as

for

a

Spalding and

result

of

the

expanding

sales, from factors above-mentioned, and from a grow¬
ing youth population, which makes for more participa¬
tion in sports.
Inventories for the entire industry, from the retailer
through the manufacturer, are in good balance.
Although Spalding does not export goods to Europe,
believe that economic recovery of Western Europe

back

we

definitely is a world stabilizing influence. The industry
carefully is watching athletic goods imports. No great
of such goods has been imported recently, but
it is reasonable to assume that more of these items will
come in with the economic recovery of foreign countries.
amount

is

It

The improvement now
some

B. Gerould

1954

in

Spalding

industry

In regard to business prospects for the nation as a
whole, in addition to the Southwest, I am optimistic for
both the immediate future and the
long-range outlook.
I,t is evident that we are now emerging from the read¬
justment which has been underway for more than a
year, and this indicates, to me, a basic soundness in the
economy and in the administrative policies of the gov-'

to

ten per cent above those in
Industry sales, with the ex¬

ceptions noted, approximated $135,-

pas¬

cars—not only to improve efficiency, but to meet
anticipated increase in business.

athletic

by spectatorship.

the

June 15 have proven to be

Sales in the

courts.

active

five to

in

reflected

tennis

goods industry are affected more by

industry.

made effective

getting closer to such play facilities

and

courses

experimental reduced round-trip coach fares on
the line between Denison and San Antonio, Texas, have
been successful thus far and we are extending the new
rates for the coming year. The results since the reduced
factor

Spalding & Bros. Inc.

The trend away from metropolitan areas to suburban
makes for easier participation in sports by more

this

*

estimated

This needs financing which can
only be done through adequate prof¬

Our

Increasing imports have sup-

an

the

areas

traffic volume.

Katy during 1954, both with promising results.

increasing portion of the U. S. market'(from

5%

on

in

do.

our lines has continued
gratifying pace throughout the year, and many new
plants currently are entering their productive phases or
will do so during the coming year, thus contributing ad¬

future
ductions

Both

a

is

part of 1953 and 1954, oil production in the United States;

concentrate

of
plant
modernization,
re¬
search, and developmental work to

Industrial development along

at

barrels

1,000,000

daily.

was

to

profits.

that

ger

market for U. S.

<

Again, this needs funds.

Satisfactory weather conditions would fur¬

seasons.

ther improve the region's economic position and brighten
the Katy's picture as the new year progresses.

ernment.

amounting to more

have

and

ing

The Katy currently is in the process of acquiring new
equipment—diesel locomotive units, freight and passen¬

The change

prewar years to an

ing net importer has meant a loss of

production

will

will be necessary

reversing the downward
senger revenues for the system.

continuation of

the trend toward dependency on foreign oil.

-

public

The available acreage for

Southwest have been reports of improved soil and mois¬

a

—850

new

-

rates

—715

l_

Year 1955 (est)

the

and

deal

This
slight improvement is due to larger
D. V. Fraser
receipts from connecting railroads.
Local carloadings on the Katy continue in lesser number
than a year earlier, largely because of lighter move¬
ments of cotton, grain and other agricultural products.
It is gratifying to note that the year closed on an opti¬
mistic note, botn for the general economy and the vol¬
ume
of railroad traffic, in contrast to the downward
trends which marked the closing months of 1953. In my
recent
trips throughout the Southwest, businessmen
have told me, almost without exception, that they were
encouraged by the recent improvements they have ob¬
served in business. ' All were optimistic in regard to

an
—

Year 1954

was

proved trend in recent weeks.

•

Imports

in

products

new

manufacturing and distribution areas
of the food industry we have a great
need to build better executives, to
train specialists, and streamline or¬
ganizations. We also have a great

there

roads

Crude Oil and Refined Products

Year 1952

We

.

com¬

railroad

on our

operate

manpower

and this

the

to

for

need

interest.

im¬

lower level throughout the year

a

entire transportation

Year 1951

in

is, reflected

is

field has strengthened my conviction that this co-opera¬
tive venture of the two great common carriers—the rail¬

foreign oil:

U. S. Imports and Exports

(thousand barrels daily)

full

continuous

a

rier motor truckers who have used the service have been

comparison of U. S. imports and exports

reflects the increasing surplus of

at

but

maintained only by
tne continuous exploration and de¬
velopment activities of a vigorous
gas

the

President, Pillsbury Mills, Inc.

ness

pany's 1954 performance.
Freight traffic

Basic questions of national

GEROT

S.

and

pact of a severe drought which has

1955

PAUL

in activity for the im¬

Nineteen fifty-five will have the bench marks of com¬
petition, creativeness, and conscience. Competition will
be as tough as
wp have ever seen it. Creativeness rep¬

territory

FRANKLIN

general increase

a

approximately 15% below the all-time
high of 1953, and net income will show a somewhat
larger percentage of decrease. These results are in the
general pattern for the nation's rail¬
roads, most of which suffered severe

prepared to support the domestic market.

WIRT

future.

1954 will be

for

below that at which the government has indicated it was

Oil Producer, Ardmore, Oklahoma

to

mediate

35

excise taxes on athletic
Golf and tennis items, as well
few other items that are small in total

apparent

now

when

goods will be reduced.
as

and

skis

a

industry sales, now bear a 10%
view of

manufacturer's tax.

In

continuing governmental deficit, it is our feel¬

a

ing that these taxes will not be eliminated in 1955, but
it is hoped that they soon will be eliminated.
The National Industrial Recreation Association is do¬
ing much to increase industrial sports programs. A well
industrial sports program is recognized as an

handled

Co.

adjunct to the personnel operation

Engineering and Foundry Company and its
subsidiary companies completed the year of 1954 with
total sales amounting to
approximately 72% of that

essential

for

of indus¬

has been done by the National

United

the

year

of

1953.

ex¬

During

plorations and development, and the amount of new oil

the

past

twelve

years,

trial

concerns.

developing more golf courses,
Golf Foundation, which
Golf Club and Ball Manufac¬
golf courses were opened for

Much excellent work, in
is

underwritten

by

turers.

Ninety-two

supplies made available are directly related to the total

operated, under lease, a
government-owned
plant at
New

play in

1954 while

income

Castle, Pennsylvania, and it has been

additional

concluded that the lease for the

the

year

generated

by

the

sale

of

current

United

production.

Today, the United States is the only major nation of
the free world with sufficient oil within its
for peace

or

war.

own

would

will

A continuation of the trend toward

result inevitably in

or

company

inadequate U. S. oil produc¬

cient
ments

for

war.

A policy decision

has under way

a

plan for

the expansion of its presently-owned
facilities in order to provide suffi¬

meet national requirements for peace

Our national security is at stake.

con¬

tinuation of operations at this facility
not be renewed.
However, the

borders

progressive restrictions of market outlets by oil imports

tive capacity to

has

capacity to meet the require¬
of the trade.. This plan calls

more

fect will

on

modern tools which in
increase

efficiency

as

ef¬

well

provide added capacity.
on
the exceptionally large
volume
of
current
inquiries from
as

this matter is needed to assure the American people that

adequate oil and gas supplies will be available for any
and every emergency.




Based

K. C. Gardner

their regular

customers, United looks

new

198 more were being built and 359
in some stage of planning as the

courses were

ended. ■
Similarly, the

in

developing

Athletic Institute, is doing a fine job
other sources of play, such as tennis

recreational centers.
the Economic Re¬
port indicates that from 1953 to 1965, there will be a
growth of approximately 44% in the age brackets from
10 to 24 years of age and an 8%
increase in those
courts, baseball fields and

Report of the Joint Committee on

brackets from 25 to 64.

It is in these age brackets that

number of participants in athletics.
growth will come about gradually over the years,
rapid pick-up in the late fifties. Since we will

there is the greatest
This

with

a

Continued

on

page

36

36

(496)

The Commercial and Financial Chronicle

Continued jrom page 35
have
24

able attention must be given to improving the effi¬
ciency of marketing methods and staffs,
The impact of increased competition also will be felt
at other operating levels.
Increased emphasis can be
expected on cost reduction and high productivity in
the plant, more efficient accounting and control meth¬
ods, and better distribution procedures.
Continuing economic recovery abroad should benefit
the chemical industry's export markets. But this same
recovery probably will mean that foreign chemical producers also will be seeking a larger share of this over¬
seas business. Should major reductions be made in U. S.
tariffs, foreign firms will become increasingly important

approximately 15,000,000 more people in the 10 to
bracket in 1965, it is reasonable to assume that

age

there will

be

sound, steady growth in participation in

a

athletics, with

consequent affect

a

BRUCE
.,

r.

sales.

on

GIMBEL

A.

.

T

President, Gimbel Brothers, Inc.
The

should

look
mmmmm wmumm

.

in

Jf

;v.

store inventories

birth

together with increasing
numbers of the population reaching
rate

marriageable
able factor.

is another favorgenerally improved

age

The

feeling of confidence in the business
outlook is bound to be reflected in

public spending and excellent

high

decline

is

years

in

matter

a

income

farm

of

chemical

to

concern

past

several

companies

because of the industry's increasing production of fertilizers, insecticides and other agricultural chemicals,
A sound and thriving agricultural economy is vital to
the prosperity of business as a whole,
Union pressure for higher wages, or for a guaranteed
annual wage and other benefit plans, is another problem
on the 1955 horizon.
While an increase in wage and
benefit levels in one industry may not spread to other
industries as rapidly as in the past, chemical companies
cannot long escape the impact of major changes which
Despite these problems, the outlook for chemical

GRAUER

E

A

pi

i.«

♦

p

•

President, British Columbia Electric

•!

n

iH

i

Railway Co., Ltd.

development of industry and

British Columbia's rapid

recent years promises to continue
in 1955 and the B. C. Electric will keep pace with this
natural

in

resources

will

depend

in

of

winter

1956

summer

or

industries

Some

\

1957.

of

homes

and

may

'

convert their

equipment

or

buy new

The

j

dustries

to

develop

:|g|

foreseen.

utility 1954 has been

150%

and

no

In 1955 the increase

estimated at 10%

change

in

this trend

is

Nin usage is conservatively

that

above that of 1954.

Wm

another 95,000
power

hp. in 1958.

Vancouver

on

cable from the Mainland

plans

Most

H|static
MMMM

for

an

underwater

well advanced.

are

In public transit, a continuation of the downtrend

the

riding experienced for
of prosperity

some

years

in

itself

a

reflection

expected.

is

coming year.
figures
seen

consumption

consumer

that

are

1954

has

0f

bottle

a

these

of

dramatic

no

coming

disposable

can

blame

position

can be
burden of

for liquor's
placed upon

excise

it

is

understandable

overall

sales

rise

that

there

foreseeable

can

for

be

the

year

it is in
we

the

ing a gallon of whiskey. Including
levies, more than 50% of the retail price
liquor is composed of taxes. In view of

conditions

an'analysis

anticinate

of business highlights of 1954 that

thp

trends

for

Wi

10,000,000 gallons for the 10 months
ending Oct. 31, 1954. This amounted to 82,406,183 gallons
while in 1953, for the same
period, the whiskey industry
produced only 72,719,911 gallons. However, this rise rewas

1955.

^h°nfTS0 ldatl0ni

but the steady forward march of development °
of
the Province promises to continue unchecked.
gains

RALPH K.

in

American business,

in general, goes into 1955 feeling
This is particularly true for the first
half, because of the expectation that sales will continue
high while demand is increasing and
being replenished.
Predictions for
but

it

appears

whole

Gross

are

that

the

in

industrial

National

inventories

are

year

as

activity and

Product.

k
^

j

Hte

"

Although not all industrial groups
will fare alike, it seems that chemical

companies

should

be

among

those operating at

companies,
new

plants

and

other

boards.
search

high levels. Many
including
Atlas,
have

about

to

plants

go

on

stream

on

the

drawing

With increased stress
and

chemical

development

markets

on

re-

programs,

should

keep

ex-

panding.

Ralph K. Gottshail

by realistic appraisal

of

some

products built up to high levels relative to probable demand in the
coming year. Such lines
some

may experience fairly stiff competition once the
of inventory adjustment is
over.
r irms

areas,
01
a

raw

which have

or

whose

materials

somewhat

ing

general

been

new

for

better

capacity includes
their

own

the

operations,

The

competition, however,

.

a

f

from

the

excessive

many

companies,

especially

^ate of sales demand that, in time, might well lead them
J5?
dominance.
.e; sales ratios between blended whiskies and
straights is now evening up, with blends losing more of

likelihood
means

production
may

of

in

the

Sonth

be

in

increas-

that consider-

/n

stronger kiroads

?nCreasin

and

1954

tv of

holds of the East

Wett

year. Blended whiskies
so strongly, now have

tt™

«

^IrLLline

™

thk

JJ T

haT hwn

the

Rnnrhr,.! ?^ tVL hS f
Bourbons m the blends strong-

availability of straights, at prices

~

com-

petitive with lower aged products, helped switch
many
blend drinkers to straights and bonded whiskies,
thereby
creating a greater consumer awareness for those brands
able to

But

market these

older

Southwest, and particularly
has benefited

population

added

interested

are

is little

or

our

discover

to

falling off

no

people coming into
staying here. In the

of the number of

State

this

and

River

Salt

Valley

Ari¬

Central

of

for instance, at this time and
time past, there have come
live a net of 1,000
families a

zona,

for

some

to

month.

itself

State

The

size

and there is

to suspect that the

reason

growth

increasing

in

continue

not

its

doubled

has

about ten years

in

C.

Hugh

expanded population has ob¬

The

Gruwell

viously required expansion of facilities to serve these people. Thus, homebuildmg g°es on
continually and subdivisions of 200 or

whiskies under their label,
1955 also will mark the
beginning of the liquor

300 two and three

As these subdivisions
supplied with necessities by
large shopping centers so that all the family wants may
be supplied without necessity for going to downtown
shopping districts. Each development finds established
its quota of churches, and Phoenix, for instance, is rap¬
idly acquiring a name as "The City of Churches."
bedroom homes

are

take

not unusual.

they

character,

are

growth of population has been a

Consonant with the

expanding

fast

the

in

change

economy

of

Arizona.

the State was known for its
mining industry, its farms and its cattle ranches. Added
to these staple facets of Arizona's business activity is
now
its manufacturing industry and there appear dis¬
tinct possibilities that manufacturers elsewhere in the
country are coming to regard Arizona as the ideal dis¬
tribution center for all of the Southwest, much of the
Pacific Coast and some of the Rocky Mountain States.
With the situation thus solidifying, there are provided
Earlier and for many years,

jobs for people who have come to Arizona and who need
them. There are others who dispose of businesses else¬
where and come to Arizona and establish themselves in
Thus, the ratio of unemployment to avail¬

business here.

employment has remained satisfactory. The labor
pool in Arizona is composed of competent artisans in
almost every trade and industrialists here speak highly
of the expertness found in Arizona labor.
able

First

National

Bank

Arizona

of

enters

its

Diamond

Anniversary year in 1955. It has served the interests
of the growing State for 75 years and at no time has lost
sight of the implication implicit in its responsibility that
it should lead the State.
As a consequence, in the past
ten

it has trebled its net earnings, it has more
its deposits and its capital funds have in¬
The bank has improved its position

years,

than doubled

five times.

all U. S. banks

among

this time

At

100 numbers since 1944 when
It is now 163rd.

over

in 266th position.

was

Head

Office

that the

is

we

are

engaged in completion of

a

new

Phoenix which is the largest
in Arizona.
It is expected
building will open early in the summer of

Building in

built

structure

new

of the largest office structures in the
already has become highly attractive to
the managements of out-of-state organizations wishing
It

1955.

one

Southwest and

for their Southwest headquarters.

space

As

we

progress

view 1955, we believe that short of
herein touched on will continue.

CHARLES

W.

Trust

Co.

of

war

the

HALL

President, The Oneida National Bank

*

Sves

this

by

we

that there

where

trioy had to prepay Federal taxes of $10.50 per gallon on
whiskey that the market couldn't normally absorb in
the calendar year 1954.
£e resuV was that some older whiskies were offered
d®Pres^e(^ prices, creating an imbalance
??
P trade s pricing picture. We can expect this condi*L0rV°
temporarily since Congress did not pass
the Saylor Bill, which would have relieved the situation,
Balancing out these temporary inventory problems,
are bright indications that straight whiskies
ai f fulfilling their earlier promise and increasing their

®Sts" TradltionaT

Arizona,

commercial

^ Out-of-balance whiskey stocks were forced out of
government warehouses because of the existing law
upoer which distillers can age their products for only
eigat years before paying Uncle Sam the Federal tax on

The increased

expanding in less competitive

position.




period

and

strong profit picture

granted

of

greatly

it
a

that °^c.e dominated the market

basic problems.

One such problem stems from the
very magnitude of
the chemical industry's past growth. This has seen the

capacity for

,

H?elr topheavy dominance each

However, optimism must be ternpered

195r

whiskey. This meant that

a

State

creased

H?e s^a^er ones were in the unenviable position

cautious,

more

will show moderate increases

1954

over

half

production.

mitigated against

was no relief
rate of Federal taxation.

rather optimistic.

of filling gaps
minimum of

a

on the °«** hand, naturally followed

sales line

Two factors

(1) There

President, Atlas Powder Company

second

Bottled outPut-

the

GOTTSHALL
^

the

fleeted no more than the trade's practice
in continuities for withdrawal beginning
four years from the date of

The

First World War.

up

...

e,'?0n0ml,c (lnd,!?aUons f°r B; c.
)p, B* will ossibly a,be P°mt t° falr weather suf•,?
in
There
some industries which

a

a"d

only to that which occurred in the period just after the

fluc-

a $10.50 Fedlevy, which is approximately 10 times the cost of produc-

L- J- Gunson
state and local

of

onerous

eral

Production

in

consumer

tuated within 5% of the 190,000,000

increasing

The country has witnessed since the end of Korean
hostilities a westward migration of people comparable

.

^income,

To meet demand for electric

Island,

all

;mark for most of the postwar years,
despite a rising adult population and

„

Wk.

a

hp. at Seton Creek in 1956. The completion of generating facilities at the Cheakamus Power Site, where the
initial steps in construction have already been undertaken, will bring 95,000 hp. into operation in 1957 and

for

year-end

liquor

GRUWELL

tempo.

Inc.

liquor sales were less than 5% away
from the 195,000,000 gallons sold the
year before. It is an economic truism

■

To meet the

demand, Unit No. 4 at Bridge River, with
capacity of 62,000 hp. went into operation in 1954.
Development of new generating capacity continues.
Present plans call for completion of an additional 58,500

this

all

competitive opportunities in 1955.

more

President, First National Bank of Arizona, Phoenix, Ariz.

will

finalized, it will be

Co-

electric power generating
of the B. C. Electric has

war,

capacity

about

British

in

another year of rapid growth. Since
the

Grauetr

increased

After

'■#„

In the electric

A. E.

opportunities

lumbia.

v
,

pro-

commodities in 1955, will be particularly sharp in the
liquor industry. Yet the shifting production and sales
relationships in distilled spirits will create competitive

doubtedly be felt after completion
of the pipeline when the new fuel
will prove an attraction to many in-

.

ing and make for

no

Competition, the guiding influence

biggest impetus will un-

1

.

superior job of

a

Subsidiaries, Publicker Industries,

equipment in advance, however, and
1955 may feel some of the early effects.

alertness of its management

L. J. GUNSON

the

before

Vancouver

the

on

and the ability of its staff to do
duction, marketing and research,

aheTont.^NaturalTas wUltTbe
available

com-

Paaie.s in 1955 is encouraging. The degree to which any
individual firm will capitalize on the opportunities

ahead

In the gas utility field the likely advent

development.

Therefore, despite the sharper competition these trade
conditions forecast, 1955 will be a good year for the
liquor industry. It is axiomatic that increased competi¬
tion will mean more aggressive advertising and sales
promotion.
In turn, these will help stimulate consumer purchas¬

HUGH C.

the

over

oc^ur in other industries.

business activity.

Gimbel

a.

Bruce

The

and

open to buy positions will
help in taking full advantage of the
potential. The continuance of a high

industry's shakeout period. Public preference will be¬
more selective, concentrating to a
greater degree
upon nationally advertised brands already leading in the
straight whiskey field.
come

competitive factors in domestic markets.

generally

are

condition

balanced

well

a

op-

increase-

strong

4

'

moderate

a

out-

the

retailers

Spring of 1955. Depart-

durin8
ment

Splpjtf

employment

offer

for

portunity

■

-mnmsm

..

improved

Thursday, January 27, 1955

...

and

Utica, New York

The general business pattern for the Utica area, look¬
ing ahead into 1955, appears to be very good. The con¬

struction industry, both commercial and home build¬
ing, is expected to be at a high level of activity, making

important

an

munity

as

we

impact
move

this

on

into

the

com¬
new

year.

Several

new commercial buildings
being built, and during the
current
year
we
will be in the
process
of completing
two major
additions to our private hospitals and
seeing the starting of construction
of a new and modern hospital center.

are

now

Private

home

construction,

with

values priced in the moderate range,
is expected to be at a very good

level.
meet

Mortgage money is ample
all of these local demands.

to

Industrial

steady

production
has
been
although some interruptions

have taken place due to
of

design of product,
selling season.

in the

Charles

W. Hall

the change

a more than seasonal variation
1955 is expected to bring a good

or

Volume 181

Number 5398

...

JOHN

level of industrial production during the first six months,
and general expectation is that it is reasonable to be¬
lieve

that

the

last

months'

six

will

period

be

at

over-supply of accommodations has been offset
higher levels of business activity, by the small
amount of new construction since 1930, and by increased
The

HARPER

by

President, Harper Oil Co., Inc.

an

The first full year of a buyers' market, in over a dec¬

equally good rate of production.

ade, has left the imprint of price wars on the gasoline
distribution in many areas of the country.
Lack of restraint, or a desire for more than an equi¬
table share of the available business,

Agriculture, which contributes in an important way
to the purchasing power of a large group of farmers, has
been somewhat depressed by the lower values received
for dairy products. The cost of goods purchased by the
farmers has been more than they have received for their
product. We are hoping that this margin of difference
will be narrowed in the coming year.

resulted in

has

many

situations

the

past year and banking leaders look "
with confidence on the outlook for 1955. There is a high

should

characterizing the general pattern of
the feeling of people and business in this area.

the

In

President, Plymouth
While
1955 is

the outlook for

brighter than at

industry during
time in the last three years,

that any appraisal for the year
liberally seasoned with caution.

products,

inventories

with

of

Adequate statistics are at

rising
expected healthy
increase in demand resulting from a
high level of national productivity,
consequent

a

price level, and

an

constitute the foundation for
outlook for
rent year. /

The

the

American

'

W.

S.

struction

Hallanan

cussions
that
1955

agriculture

would

have

the

upon

or

severe

In

•

•

the

segment of the industry.
look for a more, prosperous cycle

I

I.

seems

during
the

contributed

|'

vailed

upon

Railroad Com¬

This would

reversed.

put

months ago, may

real jeopardy.

very

perils

these

Despite

cannot view

industry

in any other light than one

optimism.

and

confidence

I

either the short or long-term future of the

oil

American

the industry's well-being,

to

Regardless

It is

experience of recent years, I still have great

against

adverse legislation,

self-protection
read¬
to preserve a healthy

in their schedules as

justments
domestic

gratifying not only from a
standpoint.

S.

Our

the telling influence

production

was

high,

all

but

of

types

ent

a

and

trends

indicate

business

and

conditions

well

into

operation favorably..

did

reach

not

labor

and

Harkison

this

section, aggressive and thrifty management can
face the year ahead with a great deal of optimism.
our

;

the

but

serious

by greater worker

efficiency

and

Conrad N. Hilton

and are of sufficient pro¬
portions to absorb much of the re¬
power,

duction

in

defense

spending and in

expenditures for plant construction.
The

emphasis

research

upon

of transportation

lead more people to

early thirties, it is reasonable to forecast that the
give a good account of itself from

return to the
high occupancy level of the war years is not a prospect.
Hotels generally are in' a better financial condition
than at any time jn the past 30 years.
We have recov¬
ered from the over-building and frenzied financing of
the
1920's and the
business depression of the early
1930's.
Some of the reasons for the industry's renewed
the

standpoint of earnings, even though a

vitality

are:

Cnarles W. Holl

wjll

produce

new

ing

Bank deposits and earnings should
with this gradual upward movement. Present
Reserve policies seem to indicate that
there

products

for

grow¬

a

population.

keep

pace

Federal

will be

no noticeable change
in interest rates, and that
will be available for proper uses as the demand

money

arises.

ROBERT

H.

HOGE

President, The Clark Controller Company
Industrial
in

1954

control

it

as

business

in

was

several

was

of

not

as

easy

to

obtain

the

preceding years. A
of plant expansions, particularly in the heavy
industries, had been completed or were nearing com¬

number

which

pletion,
what

gineered
the

reduced some¬
special en¬

fact

for

demand

the

control equipment.
other hand, the general

of

business

with

actual

is

try

extremely

was

improvement in
to by our indus¬

referred

"standard duty and modified

as

standard controls."

of

Most
in

the

decline

the

control

experienced

industry

occurred

during the middle of 1954.

definite

showed
this

ment

from

downward

companies

reflecting

in

an

prompted

The last
improve¬

by

trend.

industry

our

increased
opti¬
the
increased

during

this

Kuuei

in.

iioge

period.

of

further
not

am

improvement during

entirely convinced

approached realistically, as one in which to expect
competition for the available business and
increasing demand for product improvement which

should

create

new

business.

industries, on which our sales depend, have
announced expansion programs that will produce a good
market for both standard
and special controls.
The
Many

high

better means

un¬

increasing

raise room rents.

incomes

not

are

high.
Personal income
and
savings represent strong purchasing

duly

be

substantially

conditions,

and
S.

of Maryland,

the year.
that these expectations
are
well grounded for all phases of our line of busi¬
ness.
In our company we consider it a year that must

materials have risen,

the ability to

Inventories

cent mark.

I

hotel business should
Tom

HOFF

While
a
more
en¬
couraging attitude now exists, it is
quite possible that the rising scale
of
activity will be moderate and
will level off slightly above the re¬

tion

travel.
Adding to these factors the vastly improved financial
status of most hotels and the improbability of a repeti¬
tion of conditions which prevailed in the late twenties

a




recession

ago

bright,

business in 1955 is based on
general health of industry
conservative side with these

sound expectations for new

,

a

We are
nations in

The
outlook for 1955 is by no means certain but this opti¬
mism continues and there is almost universal expecta¬

For ex¬

business

will

local business volume.
In

too

none

was

business

in stride bv Amer-

individual

favorable prospect by midyear of 1955 agri¬
cultural production will,
barring unfavorable nation¬
wide conditions, do much to prevent any letdown in our
year,

months

Twelve

1954.

mism

normal

Improved

healthy and expanding economy. Ex¬
isting and unsold livestock and crop
production is ample to carry existing

than

an

affect the future; but pres¬

factors

a

operating under a free and com¬

offset

affairs are
few of the many conditions

stimulating

upward trend in general business activity
well into 1955. Most of the eco¬
nomic
indexes.^ are showing
improvement, and basic
conditions support the prevailing public optimism that
the year ahead will be mildly better

are

petitive system. Offsetting our prob¬
are many factors which affect

and

can

be taken

should be

cans

forecast general business
through
1955.
The stock market,
commodity prices and surpluses, un¬

world

free

The present

Most

mm"

costs,

construction

the increases have been

rectly

are

the

of

Trust Company
Baltimore, Md.

quarter

other industries

to

for

only

bad and

seventh

task

Costs, too, were up, but average re¬
quite satisfactory.
It is difficult for anyone to cor¬

that

because I

ample, while building costs are high,
interest rates are low; while the costs

sults were

and

when I bought

problems as high taxes,
and

labor

hotel

employment,

with

common

face such

to me.

lems

were

efforts

CHARLES W.

what

business looks good

nation's

into

but their solution

of price and surplus problems;

hotel

the

first hotel 35 years ago—perhaps more,
have seen it come through good
times and

active, unemploy¬
ment was of no particular concern,
and
retail volume was very good.

construction

of

my

high

fifty-four was a good year in our trade area.
section is basically agricultural, and farmers felt

we

understanding.

world

the

by

against the menace of communism.

good

HILTON

much confidence in it as I had

I have as

In

Nineteen

and

to

contribution
establishing well-

important

an

President, Union

On

President, Hilton Hotels Corporation
future

The

we

Dakota,

housing. The abil¬

commercial but a sociological

CONRAD N.

HARRISON

President, The National Bank of South
Sioux Falls, South Dakota

to

their fight

"mix"

the
largest industry.

TOM

of its

will have a very sub¬

stantial effect on the demand for new

develop

industry.

quality

ity of the industry to operate at such a high level during
the present period of low family formations is indicative
of increased interest in the American home which is

hope that

make such realistic

abroad

travel
add

able

expected that by 1960 the new

World War II,

of

importing companies will, as a matter of

hotels

American

international

family formations, which will result
from the increased birth rate during

Jr.

I. J. Harvey,

unhappy

of the

character and

the

structures and by giving greater
emphasis to the style and color of its
products.

the

domestic industry in

the

in

rary

in do¬

that the upward curve

danger

population to be better

housing. The building material in¬
dustry has responded to this by
adapting its products to contempo¬

greater degree of restraint,

a

production, which began two

mestic
be

serious

is

there

exercise

to

have

housed, coupled with a keen interest
1

quarter of this year:>-Unless importers can be pre¬

first

of the

ment

already-given notice of their

importers have

-

which

shifts,

the present demand.

Perhaps the most dynamic factor is
ability of a larger seg¬

are

intention to make substantial increases in imports in

to

the increased

currently running at the rate of slightly
million barrels daily, there is a shut-in
production^ of"r domestic wells in excess of two million
barrels daily.

mission,

population

and

the

than one

win. their schedules filed with the Texas

Company

1955. There are, of course, many factors such
ready availability of financing, the increase in
the number of children per family

by the fact that while imports of crude oil and

products
more

and

operated

the

1955.

continuing vitality of the current housing market
to assure a heavy demand for building materials

The

already high level of imports might deny them any share
of the projected increase in demand.
The accumulated
effect of unrestricted imports upon domestic outout is
shown

in

J, HARVEY, Jr.

President, The Flintkote

as

continued increase in

a

strength,

proportions.

To

-

represent

thus

outlook

every

light of experience, domestic oil producers are

without the fear that

never

to

reper¬

oil industry.

'

realistic

practical.:

con¬

extgjit, realization of the bright promise for oil in
is dependent upon the continued prosperity of its

users.
•

economy

application

promises to continue

Skill, instead of brute force, should prosper.
The results of this transition can well be beneficial

seg¬

in
this era of mass production and dis¬
tribution makes us aware, however,
that any set-back to manufacturing,

transportation,

extremely sensitive basis.
The rivalry will no doubt be keener, but more
and

tourists

hand for large and small

competition, but it does seem to indicate a tightening
stabilization of sales practices on an

bright
the industry in. the cur¬
:

inter-dependence of all
of

ments

The industry

of fluctuations and a

a

through

of American hotel operations to other

economic

their

to

operators alike. It is not too difficult for all concerned
to plan a reasonable projection of their activities.
This does not imply any relief from the intensity of

oil

many

Harper

beginning to get the feel of the problem, however, and
over-supply will soon be a condition that everyone of
us will be better able to cope with.

be

mortgage principle.
have been spent on modernizing and im¬

sums

American
John

is

recognition that factors beyond the control of
domestic producers could change the picture, suggests

the

replaced

indebtedness has

mortgage

modern, efficient methods, will fill an urgent need for
facilities to attract traveling Americans.
In many of
the free nations of the world the dollars spent by

producers

exceed the demand for some time to Come:

prudent

Reduced

as

continue to

probably

will

build

fixed

constant

The expansion

availability of all petroleum

The

products

reduce

to

countries, as exemplified by Hilton Hotels International,
Inc., is a new and exciting development in the industry,
and one in which I have great faith.
These new hotels,
combining old world charm and hospitality with our

wiser.

Oil Company

the petroleum

any

the

back

modern business and industrial methods.

of

manufacturers have become the

and

HALLANAN

also

but

ploughed

been

have

properties and equipment and, to

working capital.

Large

not only the sales

process,

personnel,
S.

qualified

become

now

earnings

debt, improve

proving existing properties.
Hotel operations have improved

merchandisers.

level of confidence

eliminated.

been

Amortizing

and executives
experienced for the first time the
pressure resulting from excessive
stocks of products.
Order takers

serviced by the people, which has reflected the
steady employment of industrial workers. Bank deposits,
both savings and commercial, have continued an upward

WALTER

Hotel

outmoded proper¬

and

operators

inexperienced

have

old

Younger salesmen

well

during

Most
ties

up

everybody has turned over
their profits to their customers, and,
in
many cases, a sizable amount or
their savings.

sales

trend

population.

where

Outstanding consumers credit has reflected excellent
during the past year and the balances have been

37

(497)

Financial Chronicle

The Commercial and

these announcements and the
and

we

concur

on

the

expectations.
Control

equipment

is

one

of the principal

elements

implementing cost-saving manufacturing methods.
Also, procedures for quality and efficiency control on

for

plant-wide basis inherently require industrial controls.
Practically all industry is faced with some lessening
of volume while confronted with higher "break even"

a

points.

In this atomsphere we believe that our industry

Continued

on

page

38

33

(498)

The Commercial and Financial
Chronicle...

Continued

from

37

page

large employment totals, the stability of prices generally,
the large proportion of the national

1

unique opportunity to accomplish much in creat¬
ing its own markets by designing controls that require
acceptance by other companies sincerely interested in
a

as

lowering their costs and improving
ciency.

their general

It is this latter consideration that will have the

influence
New

our

Products

fundamental
and

policies

our

on

in

1955.

Division

concept

that

We

major

are

expanding
concentrating on the

and

must

we

effi¬

render

substantial

perhaps

unusual service to justify receiving the
volume
of
business
that
would
represent
company
growth in the kind of market that seems to be

shaping

in 1955 and perhaps for several years to
improvement in control products and

up

come.

An

expert

engineering

assistance,

coupled

even

with

more

alert

an

commercial service describes the
implementation of
attitude concerning how to obtain
business in 1955.
expect reasonable success from this
approach.

HOWARD

Life

Insurance

will

be

provement

over

within

the

become

1954.

Competition
industry has
keener, - which is a

insurance

much

healthy condition

and

creased

benefit

sales and

holders in
With

■

good,
lieve

results
to

in

business

continuing

should

for

be

to

Howard

Holderness

that

interest

that current

made

at

JOHN

a

be

financing. I do not be¬
rates

will

materially changed during the
and

in¬

continued

a

investments

be
year

be

can

all-time

new

increase of 2%

in

meat

production,

with

an

1954, is predicted for 1955.
government forecast proves true, the total
volume of meat available should
provide for average
consumption of about 155 pounds
If

per

over

this

Because of

person.

ulation

increase of

sumption

per

be about the

capita

same

daily
7,000,

a

some

is

expected

probably

rising

demand

products

during 1955.

demand

there

that

is

production

year of

foods

meat and

will

and

peak

mately

facture

and

is

no

distribute

including hundreds

new

an

J

ones.

industry will be
by pork, which, according to the
gain about 5%. Beef, which attained
all-time high in production
during 1954, should resame.
Some increase in veal
and
a
may

f
reed

anc* mutton is predicted.

j

supplies apparently are
adequate for continued
heavy output of livestock and
dairy and

poultry prod-

duringei954 SeVe'e dr0ught conditions 'n
PAUL

some areas

E.

HOOVER
President, Angrlo California National
Bank,
San

year

as

wSU,r>.Vey the ec°n°mic

glimpse into the

affected

mid-1954,

attempt

readjustment to

level

national

tures,

a

a

reduced

defense

expendi¬
reduction
of
in¬

general

a

let

national economic trends

reflected
of

ventories in

manufacturing and trade,
intensified competition
resulting

and

from

the

expanded

but

grees

effect
the

on

been
In
Paul E. Hoover

that

a

of

last

1954

the

completed

the

remarkably

national

there

of

the

By

was

evi¬

readjustment

had

in

quarter

most

industries.

there

was

in¬

again turned upward.

Able students of business and economics
moderate improvement during 1955.

dences

small

income.

creasing evidence that the trend of
employment, production and trade
had

a

had
the

middle

dence

health




of

the

homes, schools, highways

facilities in this

area.

1%

than

in

the

nation

below

as

now

be

will

and that the potential—

year

aggressive selling and merchandis¬
ing job that will be required—should be even better than

1954. Competition, however, will be keen and the Carey
organization is constantly keeping before it the objective
of continuing to improve the design and quality of our
products and to further strengthen our position on serv¬
ice through addition of new manufacturing facilities and

look

We

1953.
a

forward

with

deal

great

a

of

adjusting
tions

production to demand.

our

cotton

on

Additional restric¬

in

announced

November, 1954,
will particularly affect the San Joaquin Valley, where
cotton has become an important cash crop in recent years.
acreage,

outlook

the

for

California

either
to

boom

or

anticipate

a

There

is

no

reason

to

expect

depression but there are sound reasons
good year for business and banking.

one

year

decline

W.

ago

in

to

as

a

1953,

prosperous

years

in

a

general

our

»

that

volume of utility

our

will

1D55

show

provement

continues

load

gratifying

They find evi¬
domestic economy in the

tions

the unexpected increase in

struction.

our

of

mates

in

in

total

construction

tivity.
and

and

a

year

for

steam

of

the

on

which
as

well

con¬

in

dollar

volume

in

John W.

the

soil

manufacture

pipe

for

an

of

viate

to

this

all

other

the

company

electric

and

gas

water heaters

The

building,

should

in

result

in¬

field.

fields

served

by

the

company

are

very

President, The Hertz Corporation
The

and

car

truck

trend

favorable

toward
effect

larger
on

the

still

a

The

first

half

of

the
tion

of

the

of

general

past
there

months

continua¬

in the last

forecast'

a

which

extends

period

several factors

are

of

spending,

a

Although

business

six

a

show

upturn noted

1954.

index

good

a

consumer

should

year

of

half

is

in

risky,

our

own

industry which make the entire year
look bright.
First, ours is still a comparatively
young

reaping

industry and we
dividends from

mendous

are

now

our

tre¬

postwar

advertising
and
promotion program.
The public is
better
acquainted
with
the
con¬
venience of renting cars away from
home. As more and more business¬
L.

Walter

men

try

Jacobs

converts

carefree

able

train

trip by

or

service,

our

they

become

to
the
time-saving
and
plan of making a comfort¬

plane and

renting

a

at

car

their

destination.

Hertz,

as
well as other companies in the
expanding operations in several directions.
major share of our business comes from out-oftowners. Therefore, we are continuing to expand service
at airports and railroad stations.
Hertz now has opera¬

Second,

business,

is

The

at

more

terminals

in

than

many

150

airports

and

at

major

railroad

important cities.

gen¬

Third,

25% greater than 1953.

alle¬
many

urban communities—is expected to be 18%
greater than
last year and should further stimulate the

building of

jaunts,
tinue
gram
It

as

of

use

and

to

well

as

rented

important

since

pay

Hertz

the business market,
cars

for

Again,

is

in

the

anticipate
travel, weekend
driving, will con¬
we

vacation

other forms of pleasure

increase.

will
is

is

this

and

consumer

that

highway program—necessary to
already serious traffic congestion in

business,

general business activity and
looks to another good
year in 1955.

tions

is

rental

both

ahead of

shortage of schools, and it is estimated

expanded
the

which

WALTER L. JACOBS

erality that potential for educational and science build¬
ing volume will run at least 12% ahead of last year
was

in

earnings in 1955 will reflect the reduced vol¬
utility orders during the past two years, the
a higher volume of bookings from utilities

of

increase

overall

remodeling and maintenance work.
According to all available statistics, there

which

of

homes.

residential

sales

Humphrey

volume of

substantial

other fields

engaged, principal among which are the manufacture
of pulverizing and drying equipment for
many indus¬
tries and for disposal of industrial and
municipal wastes

encouraging.

Industry output
generally lagging the increase in potential over the past
several months, we are
anticipating a heavy demand for
our products
during at least the first half of 1955.
The continuing high birth
rate; the upward shift in
average
income; increased old age security benefits;
and the Housing Act of 1954, are all factors
creating a

a

plants

is

and

With residential awards
running 23%
1953 at the end of
November, and with

current

boilers

of

industrial

already extensive line of industrial boilers,
anticipate a steadily improving situation with re¬
spect to this type of product.
Our
present
estimates indicate moderate increases

ume

months.

The

in

prospects for

a

have

types

new

we

high level of construction during the current year.
experience indicates that sales of such building
materials
as
asphalt roofing, asbestos-cement siding,
household insulation, bathroom
cabinets, kitchen fans,
etc., lag behind contract awards from two to five

also

two

markets

ac¬

developed

company

in the larger institutions and mili¬
With these new products supplementing the

7%,

market.

wide

trend,

business

as

own

should

market

have

Isenberg

general

the

year

H.

upward

an

on

of

rate

Martens

re¬

also

are

the

placed

a

sec¬

Industrial

ago.

a

maintenance

many

at a higher
optimistic esti¬

most

and both anticipate in excess
of 1,200,000 housing starts this
year.
Many forecasters
now feel that 1955 will be a banner
year for construction,
and some go so far as to
say the end of the building
boom is no where in sight.
There appear to many very sound reasons for
expect¬

families

in

increasing
During the past

While

5% increase in building and 6%construction during 1955.
The U. S.

of

is

at

country

the

of

creased

Corp., exceeded
prior year's awards beginning in February, and the gains
accelerated throughout the year.
Dodge in their Novem¬
increase

the

forecasts

housing starts, as
reported by the U. S. Department of
Labor, lagged 5 to 10% behind 1953
during the first four months, they
forged well ahead beginning in May.
Moreover, Residential Contract
Awards, as reported by F. W. Dodge

Department of Commerce looks for

im¬

view

company's line for the
residential field will be augmented this
year by several
new products and
these, in conjunction with the higher
volume of potential for home
appliances indicated by

While

ber forecast estimated

This

increase

to

pace

than

rate

and

confidence concerning declining pro¬
duction and sales in many industries
was

1954.

over

orders in

considerable

a

supported by the fact that the utility

and

last year's general

on

for

company's

indicated

in

and

was

looked

we

months
of
the
year.
How¬
the current trend is definitely
upward, and present indications are

tary bases.

forecasts

most

construction

than

severe

ever,

generally

HUMPHREY

that, while
probably
have
to
slight recession as
it was still one of

will

1954

most

The
forecast

more

resumption of buying around mid1954, it did not appear until the

both

JOHN

Inc.

in

a

reflecting

stable.

Engineering,

disappointing

somewhat

Whereas

quirements

be

at

ISENBERG

H.

Combustion

was

and

expected.

living should

is

economy

1955.

latter

declining trend for

of

year

longer

a

personal savings as related to disposable income—should
result in more than normal demand for the
residential

productive

more

construction

our
in¬
dustry. We expected a lull in utility buying of power
generating equipment as a consequence of the accel¬
erated
buying that prevailed throughout the several
years of the Korean War.
But the
anticipated
"breathing
spell"
was

further increase in popu¬

more

readjustment affected
industries in various de¬

and

another good

Last

is

forecast

favorable potential for
building materials. Also the "Do
It Yourself" trend coupled with a substantial
increase in

new

This

different

This

efficient

capacity of
plants.

a

1955.

problems

Our

Anglo,

and

scene

future.

near

From mid-1953 to

it

non¬

for those who do the

MARTENS

current

several years and a further decline is expected in 1955.
The world supply of foods and fibers has recovered from
the ravages of war and we face further

ing

Francisco, Calif.

reviewing 'he

similar

and

economists to be 7% above that of last year.
All factors
considered, we feel that 1955

President,

whole, and"
1954 is estimated to have averaged approxi¬

ing the effect
Holmes

The increase in
supply for the meat
accounted for mostly

government,

of

in

its

at

One of the major factors minimiz¬

shortage of capacity to manu¬
wide
variety of food products

a

of

centers,

housing, capital spend¬
showing an upward trend, and the
building is estimated by various

currently

confidence to

construction

that

history.

upward '

increased

there

areas

further

are

sustained

be

Agricultural income has been in

related

maintain

most

mid-1954

to

for the year

the

John

is

warehouses.

Reflecting the vigorous growth trend, non-agricultural
employment in California declined less from its 1953

historians

require¬
population means that if we are
high dietary standards, more food will be
needed every year.
Fortunately, the food industry has
expanded at a rapid rate since World
War II and in
Our

rise

or

will

the expectation

on

record

This is part of the
progress
for higher living standards and
bet¬
ter
nutrition for which the foods
rich in
protein are basic

to

Present indications

California

and other essential

trend.

ments.

California

to 20% of national

activity with the result

food

coming

an

in

kinds

activity. As it turned out we did have a
minor recession last year, but it was offset considerably
by a tremendous increase in building

dairy and poultry

continue

all

economic

indication
the

based

to

To meet this

during

of

President, The Philip Carey Mfg. Co.

in¬

for

every

construction

have equaled from 16%

lation, which will require

About

ex¬

sustained

a

activity in
high level

moderate

Increasing employment and
stemming from business
indicates

for

war

all-time high.

con¬

come

pansion

with

pop¬

in 1954.

as

and

other

shopping

volume of commercial

least
as good as that for the nation as a whole.
The year 1955
promises to be a year of moderate growth, continued
vigorous competition, high employment and income, high
production and active trade.
Prices and
the cost of

HOLMES

record

Cali¬

although the population is only 7% of the national

The

satisfactory return.

President, Swift & Company
A

penditures
since the

policy¬

lower cost of insurance.

a

there

demand

im¬

some

that

motels,

not appear quite as favorable as

ing

For forty-six counties in northern and central Cali¬
fornia,
the area served
by ' Anglo Bank,
aggregate
expenditures for new construction in 1954 were at an

Company,

I expect

and

high level

advantages, will continue to enjoy
more vigorous growth trends than the United States as
a
whole.
Its rapid rate of growth of population brings
with it continuing requirements
for housing, service
industries, public construction and the expansion of
manufacturing industry. Mass markets are being created
and, to serve them economically, industry is locating
new
plants in the West on an increasing scale.
Ex¬

totals

best year in the
history of the life insurance indus¬
try. With general good prospects for

1955,

climatic

relatively

roadside

residential construction in suburban areas.
While the outlook for non-residential construction does

total.

the

business in

savings, the stability of farm income at
high levels and the expectation of a continued
of activity in the construction industry.
Turning now to our own State, we believe
fornia, endowed with rich natural resources

We

Greensboro, N. C.
1954

by

our

HOLDERNESS

President, Jefferson Standard

income represented

Thursday, January 27, 1955

our

postwar

promotion

pro¬

off.

interesting

to

trace

the

car

rental

business

Number 5398

Volume 181

The Commercial and Financial Chronicle

...

growth which has accompanied our system's ambitious
national advertising program.
In the 10 years from 1937 to 1946, when advertising
expenditures were modest, the Hertz system showed
about a 100% increase in revenues.
Most of this came
in

the

war

when

years

restricted.

From

of private automobiles was

use

1947 through

1954, seven years, as our

national advertising budget increased to more

than $1,soared nearly 400%.
in 1955 will not be ours
simply for the asking. With other business firms—our
customers
more
cost-conscious than ever before, we

000,000

year,

a

Naturally,

revenues

our

business

good

(499)

and Sharon areas.

handled less iron

With steel production down, the Erie
ore

products from the steel mills.
of coal and coke was also affected.

to

emphasize

vigorously.

promote

customers

We

and keep

There is

superior service and to
seek new ways to win

them satisfied.
which businessmen's cost-

other field in

one

should

consciousness

must

help

We look for a substan¬
since alert companies will

us.

tial increase in truck leasing,

find it advantageous to free their own

capital now tied

in transportation equipment, and relieve themselves

up

of

bookkeeping, maintenance, and other costs as well as

to

operations

our

to

of

Foundries

Steel

Foundries

Steel

President, American
American

has

in

been

Continued efforts

the

until

the

business

From the time of its formation
of World War II, it was dependent upon
lor in. excess or 90%

the

end

railroads

its

of

1902.

Since

volume.

World

War

the

of

end

II,

been

ment of

certain

business

1954

our

Sept.

There

fiscal

to

In

Jarchow

c.

c.

dropped to a

year

well

as

as an

railroad business will have good volume in the

Business

and

than

in

1955 year.

delivery schedules established

should

business

The roller chain

better

slightly

be

referred to above,

railroads.

our

In

income

net

diversification
these

our

after

steps.
in

sources

our

greater precent of
In

summary,

an

cannot

company

in

combined

with those anticipated, should provide a degree of

ity that did not exist when

our

we

1954

were

taxes

dependent

so

attributable

was

It is estimated

that

1955

make

will

year

stabil¬
upon

approximately 60% of

year,

to

these

income
up

estimate

on

from

an

for

1955

be made until such time

the

as

even

our

1955

upon

our

estimates

anticipate volume and

less than that experienced

in

profits

for

such

somewhat

to

the

in

In

,

We plan to

and

in

Robert

PAUL

W.

For the first time

will continue our efforts in research

we

products

health

new

of

mass production to the people
economical prices. In these vast fields there

quality in

In the

past

year,

portunity

proportion.

unprecedented

of

Continued in¬

in the past by

as

the untold millions of dollars devoted
industry, will bring us to these great

American

by

fully met the

challenge of adjusting their expenses to
partially offset a decline in revenues.
While profits
were
considerably lower than in previous years, the
I uge

capital

been

made

other

investments
in

new

ooerating

them

through

a

that

equipment

efficiencies

have
and

carried

difficult adjustment

period.
As

whole, the railroad industry
was faced with a drop of about 12%
in operating revenues. In itself, this
a

decrease
many

costs

was

not

great

but because

elements of railroad operating
reduced

propor¬

tionately when traffic and

revenues

cannot

be

decline, the effect
was

quite

income

w.

Johnston

September

of

severe,

after

railroads
p.

was

Railroad

upon

fixed

net earnings

consequently net
charges for all

During the past year, Johnson & Johnson has opened
major plants on the West Coast, both near San
dressings and

two

Francisco—one at Menlo Park for surgical

products,

and

well as

as

in Sunnyvale,

a

enlargement

was

made

traffic,

at

ments

particu¬

larly in the east, began to decline in
1953 when military requirements were

San




Jose

dos

Mexico

at

In

during

obligations,
debt

laboratory.

new

a

and

000 10 years ago.
The

to plant enlarge¬

research

new

a

includes

a new

center

Bridgewater Township, N. J.

build

poration

will

Toronto,

Canada,

a

at

has resulted in a

and

additions

Montreal and England are
Johnson

wherein

&

Johnson,

a

New

plants

are

now

its

situated in capital

in

In

in¬

tions, and is

ever

good neighbor.

vigilant in being a good citizen and a

stock

on

a

stockholders approved a pro¬
Central split its common and pre¬

two-for-one basis without

changing

capital represented by such stock. Each share of
common stock of the par value of $100 was reclassified

invest¬

ideal working condi¬

the 70

the

into two shares of common

stock without par value. Each

preferred stock with a par value of $100 was
reclassified into two shares of preferred stock with a
par value of $50 and retains the same preferential and
conversion rights as previously . On Dec. 1, there were
share

and prosperity.

earnings, and

partially finance

May of this year the

ferred

It is con¬
responsibilities to its employees for steady
high

to

will, of course, cause some
increase in the debt interest and fixed charges in 1955
over the condition as of Dec. 31, 1954.

"

employment,

trust

posal that the Illinois

Jersey home-grown

during this

diesel locomotives next year

continues to add millions to the many states
its

equipment

ditional

be constructed in

plant facilities

alone, has been reduced

period from $11,827,501 to $6,162,174, very nearly oneIssuance of the debentures referred to, and an ad¬

half.

planned.

ment, increasing employment
scious of

terest on the debt,

1955.

office, and plant at
to

in the funded debt of the company
accomplished during the past 10 years
reduction of annual fixed charges from

$12,833,579 in 1944 to $7,063,227 on the basis of the debt
which will be outstanding on Dec. 31, 1954. Annual in¬

Ortho Pharmaceutical Cor¬

laboratory,

reduction

which has been

Ethicon Sutures office,

laboratories, and production plant to

amounting to about $59 million, the
railroad as of Dec. 31, 1954, will be
contrasted with a total debt of $282,110,-

of the

$188,629,000 as

\

plaster

1954, more is being planned for

The 1955 program

contrasted with nearly $246 million at
Debt was reduced over $8 million dur¬

total

spite of the great expansion of Johnson & Johnson

facilities

as

the end of 1944.

trust

Mados, Brazil,

City

a

ing the year through the use of that amount of treasury
cash in the refinancing operations. Including equipment

Montreal, Canada.

reduced

following the end of the Korean war. This, of
course, had an effect on the industrial production. of
many manufacturing concerns including the steel indus¬
try which the Erie serves in the Youngstown, Warren

$129,500,000

In Chicopee,

Foreign plant construction ranged from a new
mill

be used

the

at

If

1.

Corporation

Products constructed

Personal

favorable bid for the debentures
proceeds of this sale will
for redemption of the preferred stock.
bonded debt at the end of 1954 will amount to
Dec.

on

received and accepted, the

At North Brunswick, N. J.,

laboratory.

new

a

1955 freight car program
seventy-ton hopper cars.

Total

major

Milltown, N. J., Chicopee Manufacturing

opened

is

Ethicon Sutures Laboratory plant

large bleaching mill is under construction and

a

100

lished

Corporation

Products

Personal

a

a new

Calif.

Chicago

stitution,

off about 35%.

freight

'

objectives.

at

most railroads of the country success¬

is presented

telligent and inspired research, supported in the future

Georgia,

Company

the highest
at the most

only great humanitarian challenge but business op¬

not

In

JOHNSTON
Railroad

Johnson

of surgical dressings after genera¬
have solved this important problem.

surgical dressings and baby products plant.

President, Erie

W.

market this product early in 1955.

bringing

_

„

.

that

calls for the purchase
It is also planned to
equi^lOO freight cars for specialty loadings. The 1955
freight car repair program provides for comprehensive
repairs to 12,200 cars. This work will be carried on prin¬
cipally in the railroad's own shops at Centralia, 111.,
Memphis, Tenn., and McComb, Miss.
The principal financial achievement during 1954 was
the refinancing of three bond issues totaling $120 million.
The replacement of these issues with new issues aggre¬
gating only $112 million and at a more favorable interest
cost to the Illinois Central will produce a savings of
about $20 million over the terms of the old issues. The
board of directors has been giving serious consideration
and study to the possibility of redeeming the 6% noncumulative convertible preferred stock of the railroad.
It is anticipated the directors will make a decision on
this step in the company's financing program at their
regular monthly meeting on Dec. 17. Looking to this
end, the directors of the Illinois Central at their meeting
on Nov. 19 authorized an invitation for bids on $18 mil¬
lion of 25-year sinking fund debentures which was pub¬
The

of

causing

long history

Gross

1954.

estimated to be

Approximately $12 million will be allocated for the
of 70 general purpose diesel locomotives
which will be assigned to freight service. Upon receipt
of these units the Illinois Central will have a total of
372 diesel freight and passenger locomotives. When the
additional 70 units are placed into service, the Iowa and
Vicksburg divisions of the railroad will be completely
dieselized.
The Springfield Division will be dieselized
with the exception of switching service at certain loca¬
tions. The new locomotives will be covered by an equip¬
ment trust to be issued in January, 1955.

the

to

healing.

of

acquisition

the

tions of failure, we

1954

our

stick

not

will

the process of

in 1955 are

operating expenses of $206
million will be about $4 million less than in 1954. This
estimate of operating expenses does not take into account
pending demands for increased wages and fringe benefits.
On the basis of expected revenues and expenses, net
income before sinking fund provisions should total ap¬
proximately $17 million for 1955.
The Illinois Central is planning at this time 1955 cap¬
ital expenditures of about $20 million for replacements
and improvements, compared with $24 million in 1954.
In 1954 capital expenditures included 200 track miles of
new rail,
1,500 boxcars, 115 covered hopper cars, three
passenger diesel locomotives, and 48 general purpose
diesel locomotives. Included in the 1955 capital expen¬
ditures budget are 128 track miles of new rail, replace¬
ment of bridges and improvement of yard and other

many

considerable pain
the patient and delaying recovery.

plant

we

which
in

problem,

baby

based

expectations.
It
is
anticipated

revolutionary

a

that

equal

revenues

facilities.

sticking of dressings
presented
a
serious
surgical

lished.

programs,

of

year

share,

common

_

stand

we

past,

carbuilding programs for the railroads have been estab¬

However,

to

answer

a

slightly in excess of $267 million as compared with
the $277 million in 1954.
There are certain indications
that business next year will be better than present

problems of concern to
health and, in other in¬

past

wound

total income.

accurate

aging, nutrition,

$9.30

comprehensive survey recently
Illinois Central indicates
traffic volume this year will

nearly
Johnston

A.

Wayne

technicians,

and

the

For the future
moves

of

or

equal under¬

an

with

centers

research

found

wounds

1954.

The diversification

have

opportunities

that

momentous

has

sprocket

1955

health

nation's

or

made by the

surgical dressing for burns and other

of

during which it

year,

by the substantially increased volume.
and

the

research

than

to sub-contract a considerable amount of

work in order to meet the

with

greater

scientists

stances,

the

necessary

faced

the manifold problems

important

profits for the machine tool field will be

satisfactory but less than the 1954

be

JOHNSON

WOOD

increase

other

to

A

the nation's

this

related

lines

in

to

$295

in 1953.

on the threshold
practical solutions.
Specifically, mention may be made
of
Johnson
& Johnson's discovery

in repair and replacement purchases.

the

activity

seems

We expect the rising trend to con-'

concerned

own

400

have

we

Carloadings of the railroads have

that

nation

the

looking forward to a better year in 1955.

are

our

over

increased in recent months and this should contribute to

expected

industrial

and

throughout

metabolism, psychiatry, and personal
comfort and well-being.

and other component

equipment purchases

months

few

and

obligations. Never before has there been

The new cars
by the railroads in the 1954

is

last

area

before

never

postwar low, and it is felt that an increase in car

new

the

Erie

standing of

buying is inevitable.

the

in

ress

Industries

year

our

parts for rolling stock.
ordered

was

living.

many

including

ROBERT

total.

our

passenger cars,

It

of

indications that point to optimism for
a steaay advance in our standard
The business uptrend has been making prog¬

are

future

Chairman of the Board, Johnson & Johnson

The railroad
products consist of
freight car trucks, freight car wheels,
freight and passenger car couplers,
braking equipment for freight and

greater

the

tinue and

railroad
approximate¬

30,

decreased

ly 50% of

new

railroad.

our

1952 with $307

million,

In July, tne Erie

products for other industrial

ended

our gross

Rate adjustments have been made in
commodities whicn should produce more busi¬

gaining momentum.

taken

During

uses.

that

being made to increase

are

wise and pricewise.

tne

diversification steps
through entering
the machine tool and hydraulic ma¬
chinery business, the roller chain
and sprocket field, and the develop¬

have

or

becoming more competitive, both service-

by

revenues

manufacturing steel castings and other heavy goods

equipment since

necessary

wherever

expenses

quality of our service

,

estimated to be

million and 1951
million.
Operating ex¬
penses in 1954 will amount to ap¬
proximately $211 million contrasted
with
$221
million
in
1953.
Net
income, before sinking fund require¬
ments, of approximately $21 million,
or $7.32 a common share, is expected
in
1954.
This compares with $26
were

the prevailing

to effect economies and
possible without impairing
the physical condition of
the property. With close control over expenses, we were
able to report a profit every month last year.
the

became

it

pattern,
reduce

are

$277 million for the year compared with an all-time high
of $308 million in 1953. Other years
in
which
revenue
exceeded
1954
with

adjust

They

company's 104-year history.

established "piggy-bank" service
for handling highway trailers on railroad flat cars be¬
tween New York, Newark and Chicago. The results have
been encouraging and we are now planning'to extend
tne service to a number of other territories served by

J Alt CIIOW

C.

C.

Operating revenues of the Illinois Central Railroad
1954 are expected to be the fourth highest in the

rail movements.

ness.

headaches.

oversize

in

contributing factor was the change in dates
last year for introducing new automobiles to the public.
Practically all manufacturers engaged in a retooling
process for several weeks, which curtailed automobile
production, thereby postponing inbound and outbound

—

continue

must

President, Illinois Central Railroad

The movement

Another

order

A. JOHNSTON

WAYNE

its Cleveland dock and fewer

over

finished

In

39

of

Continued

on

page

40

40

The Commercial and Financial Chronicle... Thursday,

(500)

Continued

from

J.

39

page

President,

outstanding 2,716,276 shares of common stock without
par value, and 3/2,586 shares of preferred stock of $50

Continued

of

stock

common

las-based

$1.25 per share on the $100 par value
was
paid in April, 1954. Following the

dividend

A

JONSSON

gin in

research

and

tronic

the

preferred stock was paid in March, 1954, and a dividend
of $1.50 per share on the $50 par value preferred stock

tor

the New York Stock

Instruments

paid in September.

was

iur

laAtj

TI's

estimated

are

io.j-i

in

of

million

$33

be

to

is

the

active

high level of taxes.
The competitive position of the Illinois Central within
railroad industry remained strong throughout 1954.
Public subsidies to competing forms of transportation
continue as a threat to the competitive position of the

products

Illinois

Central

struct the

and

decision to

The

railroads.

all

and

develop¬

of

the Calumet-Sag Channel, all at
work further injustice to the posi¬
tion of the railroads, which must compete against water

Military order backlog is currently some $13,000,000.

whose

which

facilities

tolls

railroads

the

service

or

is for

a

petitive base

eliminate the unfair

which railroads must operate and will

on

time

is

long over-due

when railroads should

railroads

regulatory

through

substitution

of

the

be

to

from

on

for

decisions

in

relief

the

such

light

the

their

to

as

able

exploration

advances

cost

new

at

as

year

the

transportation

a

committee

United

problem

releocpH

is

stockholder

the

that

corruption

under

of

and

to

It

mend

the

is

also

of

to

relatively

the

President

that

the

sistor has

own

since

battle

that

officer

been

paying its

own

I

subscribe

ment

of

that

of

each

by

Richard

Commerce

F.

state¬

Mitchell/Chairman

Commission, when he

said

change is needed in the regulation of transpor¬
as
to bring about
an
equality of treatment
forms of transportation and that if
any agency
could not then compete in such an
atmosphere of fair
terms, it must then fall by the way as a
fairly-felled
casualty of the American competitive system.
a

tation

for

so

all




great

its

electronics

industry

expected
to

product—a

consumer

sale.

As

late

that

commercial

a

pocket

radio

September, "Collier's"

as

transistorized

to

make

an

consolidated

increasingly

sales

in

1955.

Developments

Petroleum

in

Technical

Laboratories

full year of operation as a

important

GSI and

Instrumentation
in

1954

HTL

are

its

first

the
geophysical instruments
petroleum and mining exploration by
available for purchase by others.
makes

products

new

system

introduced by HTL during
the High Resolution shallow reflection

for

were

mining

and

petroleum

exploration,
system, and Log
Level Indicator seismic instrument, the MagneDisc
mag¬
netic disc recording seismic system, and the inexpensive
and high quality Miraloy coated instrument mirrors.
the

versatile

The

7000

expanded

seismic

HTL

are

The long range

normal

more

reflection

sistent

outlook for the American economy in

power,
-

-

This

rise.

increasing

ever

living.
level

in output, possible because of
mechanical instead of human

gain
of

use

is responsible for our ever-rising standard of
Future prospects spell an unprecedented high
of
business
activity. With the emphasis upon

machines, and the importance of their dependability and
,

durability,
important.

alloy

steels

will

become

increasingly

Corporation

of America in 1954 experi¬
earnings a decline from the
peak levels of 1953. Because of broader diversification
of products and increased efforts along selling lines,
enced

the

in

both

decline

less

than

sales

in the

that for

and

corporation's sales
the ferro alloy

was

The Company's operations

percentage.
by

increased

dustries and
Colorado

sales
also

Plateau,

a

Demand for ferro

the

balance

record

of

were

and

whole.

a

even

lesser

benefitted

aluminum

vandaium-uranium

on

ores

in¬

the
are

for the Atomic Energy Commission.
alloys currently is running at close

levels

the

chemical

as

an

higher level of activities

where

mined and processed

to

the

to

by

considerably

industry

Earnings of the Corporation declined by

activity in both geophysical in¬

strumentation and precision optics production made an¬
other plant expansion necessary. Construction will be¬

automotive

of

particular is one of continued growth.
The nation's
population is expanding every year by between 2V2 and
3 million.
The output of each of our labor force of
more than 60 million workers shows a steady and
con¬

Vanadium

saw

wholly-owned subsidiary and

used in

1954, including:
seismic

a

general and for consumption of ferro alloy products in

con¬

the Petroleum Instrumentation Division of Texas In¬

are

in

coming 12 months.

A

quarter, principally to house the
rapidly expanding semi-conductor products, research,
development, and manufacturing operations.

which

Keeley

the American economy
consumers of products made with ferro
alloys look forward to good
business in 1955. The
construction industry, which consumes large tonnages
of alloy steels, faces still another record year, according
to
industry forecasts.
Appliances manufacturers also
are expecting increased production and sales during the
segments

other
large

industry,

will be built in the first

struments.

inventories

place

to

used

which

the germanium transistors in quantities
than sufficient to meet the radio demand to date.
Sales of transistor and other semi-conductor devices

as

C.

Wm.

been

Apart from the optimism prevailing in the

low

producing

business

courageous

when

predicted

Several

wholeheartedly to the

Interstate

another

a

way.

recently made

the

philosophy

1954

retail

Houston

of

level to which
permitted to

low

had

inven¬

Because

alloys.

run

being

33,000 sq. ft.
aduition to the TI main plant at 6000 Lemmon Avenue

.

the

scored

late

tribution

by

it is likely that ferro alloy production this year
considerably ahead of actual use, the balance

will

more

are

them

their

building

extremely

fall,

expectations, with

in

accorded

position.

firm
in

the encour¬

and

1954

ferro

inventories

the radio manufacturer being hard put to meet demand
in those areas alone.
Texas Instruments has succeeded

a
right.
railroad neoole

cannot afford to lose.
Subsidizing
railroads would be tantamount to the
closing of the vise
in the n^iona'ization not onlv
of the rai'roads, but of
all transportation.
It would be a repudiation of our
heritage and traditions and would in effect be an admis¬
sion that the private
enterprise concept has been a fail¬
ure.
My answer is to fight with all our strength and

of

new

industry

public, alloy, stainless and tool
steel producers experienced a sub¬
stantial
increase
in
demand,
and

radio receiver was several years away. In late October
the radio using TI transistors was announced by
Regency
Division of I. D. E. A., Inc., and is now on sale in New
York and Los Angeles and soon will be in Dallas and
Texas. Public reception has exceeded

railroads

uphold

to

magazine

to

It is

fall

reception

of

.

the

their production, in De¬
price reduction as a result of

25%

a

transistorized

financially. There have been suggestions
competitors of the railroads receive benefits

to

made

on

recom¬

the greatest fight is still ahead.

the

aging

manufacturing techniques and expects this
speed the commercial application of silicon

now

that

bv

in

yet mastered

first

feet

resources

TI

has

and

forced

will

and

cost, high gain ger¬
manium transistors made possible the introduction of the

by obsolete regu¬

report

discussed

firm

action

all-out

Announced

automotive

the

in

of

Our

to

of silicon.

introduction

With ; the

transistors.

be

soon

made

year

output

1954.

began

"first"

have

the

by the

the

over,

32

in

slump

tories

action

users

subiect has been

nation

linei of

great future in airborne and other complex

a

improved

by subsidizing railroads will not make

While

complete

a

following almost a

The

the

cember

the public purse, the railroads too
should receive
handouts to meet subsidized competition. I believe
this
is a gloom-and-doom
philosophy. We have been fight¬
ing an issue which is wrong in principle. To add another

the

and

occurred in September,

of decline, is continuing.
of ferro
alloys during 1954 followed 1953's
all time record high level of ferro
alloy production. Alloy steel makers
pared their inventories progressively
throughout the first nine months of

1954

again

from

wrong

equipment, TI's considerable

silicon,

sale of ferro alloys
The improvement in

favorable.

alloys which

for ferro

demand

equipment where operating
temperatures
frequencies are high. Even though no other elec¬

tronics

signs in some quarters of giving up
battle to hwe all form* of transportation stand on

that

of

KEELEY

C.

Prospects for the production and

Products

and

There have been
the

11

electronics

legislation be introduced
of public facilities to
fully
public treasury for the cost of facilities
provided them at the taxpayer's expense.

their

of

the public, the first high temperature

to

made

substitutes)

national

railroad

lead

imposed

railroads

hoped

compelling commercial
reimburse

consists

now

WILLIAM

President, Vanadium Corporation of America

production since May, production of the high tempera¬
ture, high frequency silicon transistor has kept pace
with demand with output now in the tens of thousands.
Because of its superior characteristics, the silicon tran¬

recommendations

committee will

evpry

abuses

appointed

study

make

report will

the

which

operate.

was

States

bone

this

existing markets and a new record sales volume.

of

GSI

in

and

faced with long and tedious hear¬

The conclusions of this

to

erally favorable, our new and broadened range of prod¬
ucts and services should result in increased penetration

models

subsidized

with the market outlook being more gen¬

And in 1955,

Of America's "biggest names" in the electronics indus¬

of Railroad and Public
Utility Commissioners has itself
publicly recognized the inequity of such treatment.
of

Electronic

maintained the

others

in

balance of our

try, only Texas Instruments has yet succeeded in produc¬
ing in commercial quantities transistors (minute vacuum

times with lengthy court actions, before they
can
eliminate costly and unused operations. This con¬
dition exists despite the fact the National
Association

this

compensating growth
corporation.

areas,

and

Under such condi¬

many

lation

stability of a diversified, divisionalized organization.
though activity declined
unavoidably in some

tube

publicly

are

regard the past year's events as proof of the essential

Even

transistor-transformers.

have

may

involved,

him.

Summary and Outlook
I

unfair disadvantage

extremelv

an

transistor

the

yet the railroads

to

Laboratories

the

company.

development effort resulted in several out¬

radio available

public does not support them to the
extent necessary to justify their cost. Under such con¬
ditions public service and convenience is not

Earlier

executive abilities needed in an expanding
Each TI product or service division now
operates essentially as a complete entity, analogous to a
company, with over-all activities coordinated and as¬
sisted by a compact headquarters staff.
oping

standing industry "firsts" during 1954. These included
the germanium transistors used in the first transistorized

type of time-lag curses the railroad in the
discontinuing operations which are unprofit¬

President

operation

In commercial electronics

research and

same

because

ings,

1955

exceeding not only 1954

Technical

structure inspires greater speed
operation and is a great aid in devel¬

and flexibility of

in the current year are

regulation-free competitors.
of

outlook for

a

Exploration Activities

Houston

New

be granted inade¬

may

intervening period.

are

relation

relief

of

in

This

result of

GSI affiliates covering all areas of the free world.

basis.

tions rabroads

matter

a

(Bahamas)
GSI, Ltd., both announced in December, will
in pound sterling areas.
The over-all Texas

Instruments

to

makes

in

Occurred

factors, the

as

1953 level.

Europe, Asia and Africa.

serve

and

operate

The time-lag between appli¬
public authority and the granting
of such relief is unrealistic, time-consuming and
expen¬
sive.
It results in great losses of revenues to railroads
during the period adjusted rates and fares are not in

quate

But

keting operations.
This organizational

in

growing foreign exploration effort. Geo¬
Service (Nederland) N. V. was established in

physical
July to

bodies,

current

a

effect and

year.

stretchout

a

the

part of railway managements to price
transportation service to meet cost and competitive con¬
cation

and

the

on

ditions

Jonsson

1954

serve

Ltd.

should be returned to railroad
management. One of the principal reasons for the finan¬
cial plight of the railroads over the years is the lack of
freedom

record

instruments

equality of treatment in the true spirit of the
private American enterprise system. The right to exer¬
cise basic managerial judgment, which has long been
of

the

E.

consequent improved techniques.
Three new GSI affiliates were established during 1954

accorded

denied

exploration

favorable

of

own

way

The

geophysical

J.

S. and

closed, contract geophysical exploration opei*
ations (conducted through subsidiary Geophysical Serv¬
ice Inc. and its worldwide affiliates) were at a high for
the year.
This high level should lead to an all-time
high in 1955, aided by both the general interest in for¬
eign exploration and the introduction of new geophysical

com¬

require other forms of transportation to pay their
as the railroads are doing.

"divisional¬
operation in
organization
"divisional,"
wherein each product group performs its own develop¬
ment, purchasing, accounting, manufacturing, and mar¬

is

result

a

as

Organization Takes Effect

Divisionalized

Taking effect on last Jan. 1, the new TI
ized" organization had its first full year of
1954,
Regarded as highly successful, the
structure was changed from "functional" to

are

This

decline in U.

Geophysical
As

charges which will adequately reimburse

Such action will help to

1954

increased sales volume

an

but also

the taxpayers for those costs incurred in providing these
facilities tax free for the benefit of commercial opera¬

tions.

in

military contracts early in the

are

are

sales

$24,000,000.

general

combination

provided by the taxpayers,
major group. If it is de¬
cided that public authority should develop waterways,
provide highways for truck and bus operation, and pro¬
vide airport and other facilities and service, some defi¬
nite provision should be made bv law establishing fees,
of

TI

substan¬

tially the same level as in 1954.

1954.

Dallas.

Canadian

public expense, will
carriers

the

announced

been

Military business in 1955 is expected to be at

new

during

slightly below 1953 sales

develop

to

services

approximately

Seaway to enable foreign ships
to ply the St. Lawrence River and the Great Lames, and
proposals

well-received

many

Estimated

con¬

Lawrence

St.

in

soon

sonar, and

affected
Government military

equipment has just

electronics

borne

has
been purchased for one
plant expansion in Houston and an¬
other
plant
expansion
will
begin

the

including radar,

Government contract for $2,500,000 in air¬

A

contracts.

elec¬

resulted in the intro¬

and

of military

major producer

stretchout of

general

1954's

by

Land

of

a

by TI.

research

ment program

duction

November.

Contract

magnetic air detection devices—was adversely

Exchange, Texas

growing

Instruments—as

Texas

airborne electronics systems,

the largest local fac¬

rapidly

a

New Military

industry.

$1112 million will be Federal income taxes. The
outlook for 1955 indicates no real relief from the present

which

on

in Houston, which was purchased in late

way

specializing in the manufacture of elec¬
geophysical
equipment
and
geophysical

and

and larger building now being
Houston Technical Laboratories plant
6-acre tract on the Buffalo Speed¬

new

a

new

Incorporated, Dal¬

exploration for petroleum. Employ¬
ing about 2,100 persons and listed on

tronics

on

will be located

firm

split, which became effective in June, 1954, divi¬
dends of 62*2 cents per share were paid on the no par
value common stock in July, October and December.
A dividend of $3.00 per share on the $100 par value

stock

1955

designed. The

characterized

expansion

1954 operations of Texas Instruments

value.

par

E.

Texas Instruments Incorporated

January 27, 1955

year

of

is

1953,

and

enhanced

the

outlook

by

the

for

the

enthusiastic

Volume l&l

reception

Number 5398... The Commercial and Financial Chronicte

various

of

and

new

alloy

ferro

improved

ALLEN

products recently introduced.
More

products

new

development, and
be
introduced during the current year.
Re¬
activities, under the guidance of the new re¬
search center completed last year in Cambridge, Ohio,
are
continually in search of new materials and new
methods

by which America's metallurgists can better
provide the metals which today's advanced technologies

foundations
few

United

States

National

Bank,

Everyone

has

been

reading

favorable

most

for 1955, such as: worries will lessen; pes¬
simism will fade out of the
picture; war and strife will
be

out
of
fashion; prosperity will
activity, employment and purchasing
at a new
high; not a cloud in the

business

prevail;

there

business sky; etc., etc.

universal

or

view

doom,

is

doesn't

nevertheless

to

affected

rosy-hued.

predictor

a

it

of

Considerable
"sick"

decline in certain

reductions

by

in

us

within

manu¬

ling

bi-focals,

nues.

allowing

to

us

not

see

watch

our

and mingle opti¬
mism with caution. An able and ex¬

Allen S. King

govern¬

of the

sails the Seven

Seas,

round-the-clock

a

watch, scanning the calm

a

wider

The demand

ing

Motors

for internal

Corporation

types, should in¬
during the present year. Many signs point to this.
Beginning late in 1953 and continuing into 1954 the
internal combustion engine industry
experienced a lowering demand for
its products, due primarily to the
the

activities in Korea and

relatively

high

inventory

sition of its customers.

po¬

begin the New Year our
industry as a whole appears to be
we

position

good

a

tage

of
based

ported
C.

J.

Keplinger

behind

looks

to

the writer

period

back

as

a

to

year

The

New

Hercules
Year

volving

with

many

Motors

that

its

field,
of

will

tight

both

.

ness,

ing

de¬

program,

stimulate

combustion

business, and anticipates

competition

which

will

result

in

a

FRANK

year

of

1953.

Presently

period
to

with

expect
first

Co.

operating weather,
continuation of it, we
operating results for the

our

quarter

will

be

year ago.

Because

granted

of

increased

benefits

employes

our

during

the

1954, we will be faced with
higher operating costs this year.
I
year

refer

particularly

payments

and

to

holiday

health

and

wage

'welfare

At
look

this

time

the

for

1955

in

favorable, and with

agricultural out¬
our

territory

is

revival

in

some

the output of manufactured
P.

which there is

Kiley

forward to
Our

will
Frank L. King

a

an

rubber

goods (of
indication),we look

reasonably good

railroad, in terms of mileage, is

now

year.

among

Our road property and equiment are in excellent
are

in

a

the

shape

position to handle promptly and effi¬

substantial volume of additional traffic.




highest

its

has re¬
produc¬

Leaders in the

quarter of

industries

has

1954

exceed
a

by

1955
than a

million passenger

from

and

the increased

pro¬

in

the

cars.

steel

activity

resulted

more

me

The

sound.

are

feeling of cautious optimism prevails in the petrol¬
industry, with production in 1955 expected to be 3%
greater than in 1954. According to trade sources, the
threat of a general decline in product prices seems to
have disappeared.

deposits reflects
Such deposits
have increased steadily, the rise in Southern California
being even more rapid than in the nation as a whole.
All the notes of optimism that are sounded certainly
In-banking, the growth

the nation's increased

in

fact,

of demand

industrial activity.

1955 will be

a

year

without problems;

of our problems become more acute as
industrial growth and expansion are accelerated.
One
problem is the development of executive manpower.
Ninety-two per cent of the participants in a recent sur¬
vey expressed the opinion that the biggest problem of
bank management, as well as of industry in general, is
the training and building of successor management. In
1954, the economy operated at more than double the
many

immediately preceding World War II, yet in the
many companies,
both large and small, key

of

administrative

talent

tends

to

overburden

competent

executives, the resulting premature retirements thereby
aggravating the problem.

Despite

the optimism

expressed

by

business leaders

we

as

characteristics

inherent

Camp, Inc.

Stokely-Van

has an outlook,
the new year.
over-all economy

that the food industry

soundness

fundamental

The

of

enter

our

population of the United States is in¬
creasing at a rate of about 21/z mil¬
lion people per year and the unsat¬
isfied
needs
and
wants
of
this
expanding population are enormous.

that we have achieved a
balance
of power be-

•;

capital, labor and government
which should produce relative sta-

;

It

appears

reasonable
tween

Moreover,
the attitude of
these three economic forces, together
with
the
attitude
of
the general
bility.

The
to

son

success

F.

tlI,

Jtvrunenuarti

is

optimistic. These factors
in prosperity.

result
food

industry

expect
in

such

a

has every rea¬

large

a

measure

favorable

of

climate

population growth and produc¬
Food is a primary necessity

of

tivity.

of prosperity can be merchandised
well. In sheer tonnage mere can

to become a luxury as
be

demand

and

need

American people will
ever-increasing quantity of our

reasonable doubt that the

no

an

t

products.
It

seems

to

me

that

the

which the food
and in the foreseeable
As I see it, these prob¬

problems

industry will encounter this year

self-contained ones.
of our own making, for all external ele¬
ments seem to be entirely favorable to us.
Just what

future
lems

are

will

be

these problems?

are

I

see

cessive

them

as

being ones of over-production and ex¬

competition which

can

result

in uneconomical

operations for all concerned.
When we think of the
food
industry we must remember that the manufac¬
turer,
the wholesaler and
the retailer are essen¬
tially partners.
Each is dependent upon the others
for success. Within these operational elements there is

of inter-dependence. That is to
competition is the foundation of our
American way of life, it can be destroyed, or at least
damaged, by capriciousness and irresponsibility. Ex¬
cessive production by a few can endanger the inventory
soundness of the entire industry by encouraging uneconomical competitive practices.
In turn, unsound competitive
practices
between
manufacturers,
between
wholesalers, or between retailers, can create uneco¬
nomical profit margins which could grow under extreme
conditions into tentacles that might throttle an otherwise economically sound industry. This damage can be
averted if most of us practice reasonable restraint in
our individual efforts to increase our competitive stature.
also

A

level

a

reached

1955.

industry

eum

case

we

residential

duction by automobile manufacturers.

by electric and Diesel-electric locomotives.

ciently

automobile

Greater

largest in the country having all of its traffic handled

and

both

power,

field predict that production in

do not mean that

payments.

of

to

seems

of life and in an era

will continue in

trend

cently

a

It

univer¬

almost

tion level since 1950.

substantially
better than the
corresponding period

John

is

1955

construction

for

The

I

a

in

industry, which
gave vigorous support to the econ¬
omy in 1954, is expected to continue
to prosper in 1955.
Higher output by utilities in 1954
points to a steadily increasing de¬

Chicago, Milwaukee, St. Paul and

and

H. F. KRIMENDAHL
President,

spirit of optimism regarding

a

The

in¬

believe the year 1955 will show a
somewhat higher
volume of rail freight traffic and that
the increase will
range from 4% to 7% over 1954.
So far this year we have had fine

recent years.

public,

sally evident.

the

KILEY

Railroad

a

Compared with

mand

Pacific

importation of residual oil that is dis¬
large extent. However, this should not
get any worse than it has been in recent years.
The public utility use of coal will continue to increase
and I think the over-all picture for the coal industry in
1955 is somewhat improved over the past three years.
I predict an increase in national production of approxi¬
mately 10%, with possibly some improvement in the
average price returned to the producer.
1955, to me, has a somewhat improved outlook over

the
placing coal to

happen on

should

normal standards, 1954 was an active
progressive year even though the general economy
operated at a somewhat lower level than in the record

Frank F. Kolbe

by the so-called "dump gas."
It is difficult to predict what will

and

this

President,

well-head price, and other situa¬
tions, coal will reclaim a large part
of the business now being supplied

KING

L.

and commercial. Indications are that

P.

in

President, California Bank, Los Angeles, Calif.

buyer and seller.
J.

gas will amount to $51.6

railroads

Most

and with the probability of some retail lines reach¬
all-time high.

engine

benefits

has

that

pattern

limit.

its

completed
their
diselization
program as far as they intend to go.
It
is
apparent
that with
storage
domes in the gas industry, increases

an

far-reaching developments which will fill

long-existing need in the internal

a

product

approaches

new

growth

territory, NSP 1955 construc¬
new
and expanded facilities to

business

Corporation

confidence

inventories

new

for

the

of

have

area served by Northern States Power
Company
Minnesota, Wisconsin, North Dakota and South
Dakota, including the Twin Cities of Minneapolis and
St. Paul and some 500 other communities, is expected
to continue its solid growth
pattern during 1955, with a
steady though not spectacular increase in general busi¬

re¬

encouraging levels,
in which aggressive

selling, economical manufacture and
velopment will yield good returns.

stable

service

because

reached

in

generally.
of readjustment

with

and

us

worked

1955

business

the

advan¬

upward trends

upon

in

With

take

demand,
reasonable pros¬

which appears as a

pect

to

increased

any

expenditures

the

tre¬

the loss of pro¬
of these things has

The

This led -to

gradual leveling out in the return
to a peace-time economy;
^

in

its

the

appear

Bridge plant in St. Paul.

a

As

with

million, which is approximately two million dollars more
than was spent in 1954.
Generating capacity of 100,000
kilowatts will be added to the system in 1955 with the
completion of Unit No. 3 in the Black Dog plant near
Minneapolis, wihch will bring the total rated capacity
up to 1,233,630 kilowatts.
This is the second 100,000 kw
unit installed in the System, and a third, scheduled for
operation in 1956, is now under construction at the High

includ¬

gas

of

in

in 1954. The

electrical

m£j£F demands for electric and

crease

cessation

as

air

Consistent

combustion engines,

gasoline, diesel and natural

of

use

and

characterized

C. KEPLINGER
Hercules

rate

same

rural and small

tion

President,

construction

housing

new

equipment, such as washers,
conditioners, should push residential,
light and power sales upward along the
trend lines experienced for a number of years.

dryers

^'Full Speed Ahead."
J.

that

resulting increase in residential customers coupled with

and

seas

the clear horizons for any possible
change or disturbance.
Let us maintain such a careful watch without unneces¬

sarily reducing

indicate

1955 will continue at about the

in the calmest weather posts

even

Company experienced a satis¬

year in 1954, with a 7.6% increase in gross reve¬
The Company continued to benefit from the favor¬

Forecasts

Lee Kempner

R.

would

duction
con¬

dustrial classifications.

perienced captain of a vessel, whether
it be the Ship of State or one that

Also

tonnage with the
a factor
control¬

considerable portion
production.

a

It

diversity of load and revenues, experiencing in¬
creases in residential, rural, and small light and power
sales more than offsetting some declines in certain in¬

step

of

has been

national

able

only all the beautiful highly colored
prospects but at the same time to

trouble.

loss

mendous

railroads

factory

Northern States Power

the

considerable

area.

glasses but shouldn't these glasses be

has

"dump gas" given the coal producers

tinued expansion of other parts of the economy

Perhaps it might be in order to con¬
tinue
wearing
our
rose
colored

it

publicity has been given the so-called
industry, and during the past two or three
had
numerous
problems.
Competition
industry, importation of foreign oil, and

coal

years

However, the
impact of these curtailments was softened by the

cautiously.

move

in 1954 substan¬
observation. Resi¬

ment defense orders.

gloom

behoove

was a

KOLBE

President, The United Electric Coal Companies

facturing businesses; particularly in
agricultural implements and in those

Assuredly the preponderant, if not
Without being

FRANK F.

re¬

building continued at a high
level; retail sales maintained sub¬
stantial increases, and many portions
of the industrial activity maintained
smaller but satisfactory increases. In
the third and fourth quarters of 1954

prospects

the

natural

or

dential

the

of

experience

tiates this general

Galveston, Texas

-

*

>'

caution. In any event,
we may be sure that the future, while bringing its quota
of problems, will also be laden with opportunities.
In¬
dustry should expend every effort in developing man¬
agement to meet the challenge: management not only
capable of coping with problems as they arise, but able
and elert to grasp the outstretched hand of opportunity.

sources.

KEMPNER

The

President,

prosperity predicted by many financial writers,
certain prominent economists believe that the year 1955

should be approached with some

built upon one or a

are

industries

large

41

and the

The area served by Northern States Power Company
enjoys an economy that is well diversified as between
agriculture, dairying and large and small industries. The
swings of the business cycle are less pronounced in the
NSP area than they are in many sec¬
tions of the country where economic

demanding.
LEE

KING

under

are

search

R.

S.

President, Northern States Power Company

should

are

(501)

a

say,

while free

large

measure

In addition to the

tive
are

problems arising from the competi¬

struggle for a larger portion of the market, there
also some problems inherent to the techniques being

employed in handling the lifeblood of any business—
its inventory.
While I have cautioned against the pro¬
duction of excessive inventories, I see a grave danger
in

reducing them to the point where being out-of-stock
an equally
disastrous result—having nothing
sell.
The retailer, the wholesaler and the manufac-

produces
to

Continued

on

page

42

.

•
,

\

The Commercial and Financial Chronicle...
42

(502)

Continued from page

furer

of preparing frozen foods for marketing.
There is no wonder, then, that our outlook

ess

development of con¬
the labels which they
bear.
If any one of these partners permits his supply
of such products to become exhausted, their consumer
acceptance becomes diluted and the consumer will in¬
evitably look elsewhere.
This causes substantial loss
to all concerned—a loss of the previous effort expended
for the development of the consumer acceptance, a loss
of the immediate sale, and a possible and even probable
fact, partners in the

sire, in

is

acceptance of products and

sumer

a

in York Company see

we

cause

continued

strength

notice

we

Corp.

suburban
Some

of

hotels

and

on

because

consumers

of

either to

As

its

creased

use

or

have

been

two

It

increased

decided

Arthur B.

+

into

the

kitchen

be due to the fact that

running out and

are

we

force, through

the last six

through
the

new

introduction

through
We

price

1955

and many

industries

are

ditures

of

a

year

for

min¬

activity, the mining equipment
should be good.
The exploi¬

tation

for

foreign
carry

in

both

domestic

and

will continue, and the
of new wells will probably

drilling
than

oil

areas

at

on

in

a

the

slightly

pace

1954.

higher

The

heavy
industry, including
G.v.Leece
highways, dams, public works proj¬
ects, irrigation and hydro-electric developments, should
year

construction

show

material

a

increase,

while

sales should remain close to the

CARL

H.

industrial

equipment

1954 level.

MAAR

President, Lincoln National Bank

Trust

&

Company of

Syracuse, New York
The year 1955 should

It

may
our

be most

be the first normal

interesting to all of

year

we

us.

have experienced

greatly expanded economy. The huge backlogs
during wartime restrictions are
nearly exhausted in most cases and

of demand accumulated

way

business is being done on a

day-to¬

day basis.
The

most

important factor which

should be considered in this
tion is that
from

our

economy

connec¬

is changing

of shortages to one of sur¬
Therefore, we are finding
ourselves entering a buyers' market
one

pluses.

instead

of

situation

cost

years

re¬

In
Carl H. Maar

Such

sellers' market.

a

should

be

termed

a

normal,

of

business

climate

for 1955 looks very favorable.
general business indicated, produc¬
tion and sales of virtually all Arrow products are ex¬
pected to be greater during 1955 than 1954. The rise
an

upturn in

in

income

from

lion

of

workers

fact

the

that

will

about

come

mil¬

one

people will be employed
and that wages in general will be
moderately higher.
It is expected
more

that

the

population of

our

will

1955

about

increase

disposable

expected
much

personal
increase

to

about 3.8%.

or

difference

better
average

will

standard

of

country
1.7%.

income is
that

twice

Consequently,
show

living

up

for

in

a

If he

We

be

generally,

has

base than

During

stocking
*'

up

merchants

on

•

of

inventories

1953
semi

or

manufacturers
finished

materials

1954.
were

and

also

demand
Our

So

are

more

it

seems

that

inventories of bQth raw materials
shirts, casual wear, underwear,
handkerchiefs, and ties are in better balance today than
a year ago.
Grey goods prices are also firmer now than
they were a year ago. Apparel manufactures are re¬
and

own

company

finished

Arrow

and

situation

we

can

1955 will be a year
keen competition in

come

from the American

consumer.

expected, business volume during the year

be

certain

that

every

business will

have to

its

on

economy.

were

reduced approximately

$4,000,000,000. This situation provides a healthy atmos^phere as we enter the new year, giving industry the
flexibility needed to develop business in 1955.
There

plenty of plus factors which should support
for our country during the next - twelve
The most important of these may be summar¬

are

prosperity
months.
ized

as

follows:

Probable reversal of the inventory trend.
Increased Federal expenditures, especially

(1)
(2)

for

defense.

(3) Continuance of
with

some

a

favorable personal income level

tax relief.

(4) Sizable expenditures for roads, schools and local
improvements by states and municipalities.
(5) Population growth.
(6) Money rates will remain low, and as such, will
be a stimulant to business activity.
,(7)

There will be a favorable foreign demand for
goods.
New home construction will continue at a high

American

for

1955, production and
likely to follow each other more closely.

this

The biggest stimulus to a good

During 1954 inventories

rose.

tribution.

.

and

1953

stocking goods. This resulted in
goods than were finally sold and
Thus, in nearly all industries, during
1954, inventories were trimmed at every level of dis¬
were

production

.

raw

either

sellers' market.

excellent.

be
can

total

production and
solid

as

a

of

toes, with salesmen ringing doorbells. How¬
ever, American enterprise has the "know-how" and will
accomplish the transition with little disturbance to our

family.

inventory situation,
1955 should be a more

buys

should

the

In consideration of the total,U. S.

Barry T. Leithead

active

most phases of business.
level of business will

The

With

in which they have been doing
view

anticipate that

LEITHEAD

President, Cluett, Peabody & Co., Inc.

of




ing

But York Company

curve.

demand

sales

not that fortunate.

BARRY T.

a tremendous increase in the
use of Angostura on
the commercial level. At the present
time, Angostura is

all-purpose seasoning is the only product his firm

constant

business in

seen

this

the

capacity.

food

one of America's
leading liqueurs; and, in vast quan¬
tities, by meat packers in every part of the United
States, who market ground meats, such as frankfurters
and sausages. The most recent commercial
user to order
Angostura is a frozen food processor, who informs us that

With

base metals, plus the uranium

lined manufacture of the heavier products for
duction and contemplating some increased

re.-

being used in bulk by manufacturers of table sauces,
spaghetti sauces and pizza pies; by bottlers of soft drinkfe
and one of the major cola
drinks; -by.-candy manufacr
turers; by packers of mince meats and plum puddings;
by bakers of fruit cakes and mince pies; by the bottler

some

although many business men may
think otherwise because of the many

^

past

With one possible excep¬
1955 sales potentialities of
major divisions
indicate
improvement over 1954.

four

duction of certain product lines, including, new products.
The major expenditure will be in the West York
plant,
which is being completely revamped for more stream¬

ceptive to additional suggestions for using Angostura in
food recipes.
*

this

all

capital expen¬
$3,000,000 to be spent through 1955.
appropriation will go toward expanding pro¬

this

of Angostura bitters as

the

basically

manufacturing, it is not
analyze our 1955 sales

about

Part of this

foundation of acceptance of this new use of bitters has
been laid; we have a firm start and
plenty of reason
to believe that the homemaker will be

households,

in

relies

tion, the

in

markets and

new

Company

Company

to

Our Board of Directors has authorized

pursuing these lines even more
aggressively, with consumer advertising directed spe¬
cifically to the use of Angostura as a food flavoring. The

use

holds

follows the cost

curve

are

.

of

of wage
and other cost increases, nor can we predict that we
Will be able to continue to even partly offset such cost
increases if they come every year. It takes time to re¬
design, retool and reach the market with a finished
product. There are some industries, of course, where the

to

increasingly

period

the

Gardner-Denver

prospects.

months—pos¬

gains in labor efficiency.

some

don't know what

in

addition to the

much lower

a

during

products for

new

But

In

difficult

not be fully replaced.

or seven

inventories

of

in the home.

flavoring in American

industrial

defense

our

the

LEECE

general industries; namely, mining, heavy con¬
struction,
petroleum
and
general

better

not

are

number of

a

may

V.

Gardner-Denver

four

on

better manufacturing methods and tools,
design and redesign of products, through

ing agents, and have passed the word along to the public
through every outlet of information reaching the worn? n
we

sales

have been running at

excessive

avoid

test kitchens have acceptedy it as one of the basic flavor¬

1955

E. Lauer

S.

York Company's principal concern is that of being
constantly caught in the "cost-price squeeze," with wages
and salaries going up year after year and with no offset
through price increases. In a number of product lines
prices have actually been decreased during the last few
years.
We have managed to offset much of this adverse
condition through a more alert and better trained sales

accomplish for
foods the same thing it has always done for drinks. That
is, improve the flavor. This "discovery" by the public
of a new use for Angostura bitters has not been entirely
accidental. It is part of the long-range program of the
Angostura-Wupperman Corporation to insure an ex¬
panding market for our product.
For some years we
have been informing the American people that Angos¬
tura is, indeed, the perfect all-purpose liquid spice, and
urging them to try it as a flavoring agent in food. That
it is an effective, convenient and reliable flavor is testi¬
fied to by the fact that some of America's most renowned

During

Since

in

total

our

most

period ahead retail competition will be keener

G.

adjustment in this business we had to curtail production.
situation is righting itself and we are starting to
add employees to our payroll.
About 50 were asked
to return the week of Jan. 3 and we expect that there
will be a gradual build-up through the addition of about
1,000 employees between now and May 1.

any

American

If

1954.

the

on

hard

President,

This

The truth of the matter is that Angostura bitters has

moved

here

Lafar

of Angostura

use

solely with

than

is true that

To

by the public is not
changes in consumer drinking
habits, however. It will be surprising to many to learn
that during the past ten years when liquor sales are
reported to have made a gain of only 2%, sales of An¬
gostura bitters registered an astonishing 54% increase.
The major part of this sales increase has been in the
2-and 4-ounce "consumer-size" bottles.
This can only
mean that the public has accepted Angostura for some¬
thing else, in addition to its historic use in beverages.
in

situation

fill-in service to retailers on basic
most important to retailers be¬

is

items.

is

sibly 35% below last year. This was due to unseason¬
ably cool weather last spring and early summer and an
abnormal growth in the room air conditioner industry.

cocktail.

The

own

rate of production in

the

consumption during
the past several months. One, of course, is the increase
of at-home drinking.
This has been favorable to sales
of bitters, since a man making his own cocktail is less
apt to forget the Angostura than the hurried profes¬
sional barman. The at-home drinker makes his cock¬
tails from standard recipes, and the standard recipes for
Manhattans and Old Fashioneds and other popular cock¬
tails call for a few dashes of Angostura. The other trend
is concerned with a recent swing toward whiskey-onthe-rocks in place of the highball before dinner.
The
idea has been promoted and advertised extensively by
leading distillers. The public has taken to whiskey-onthe-rocks, with some modification. The modification be¬
ing a twist of leman peel and a few dashes of Angostura,
to smooth out the flavor and provide more taste appeal.
The Angostura-Wupperman Corporation is currently en¬
couraging this practice by reminding the public in ad¬
vertisements in leading consumer magazines that Angos¬
tura bitters make whiskey-on-the-rocks a more pal¬

tied

better

contracts

trends in liquor

atable

our

service

experienced
generally

we expect business in 1955 in our own
refrigeratiop and air conditioning to be as good

it will

discovery by the public of new uses
for the product. Both situations ex¬
ist'in today's market.
There

of

Company,

line of

that is favorable to in¬

of Angostura, or to

to

York

must be attributed
change in certain habits

a

have

noticed

sports.

added

The

orders

sales

consumers

investment.

we

and

small

sums

es¬

work and more
efficient selling and mer¬
chandising will make the difference between acceptable
profit margins or profit margins below par.
We at
Cluett, Peabody & Co., Inc., feel optimistic
and look forward, with confidence, to the year 1955 as
a
growth year.
,

reduction in defense spending and
from this source.

a

back over more than a
century and a quarter, such a great

in

capital
-

include

terrific

is

wear

for business
While expanded

one

safeguards them from losing sales

In the

but

the country.

over

even

This
it

wanted

upswing in

into

run

ourselves

goes

spurt

these

downtrend

intrinsic qualities, and an acceptance
that

all

areas

in

money

year. These figures explain, in part,
why our outlook for the coming year
is optimistic.
In a product such as Angostura,
which has a unique place in
the

of

in

the
of shopping centers in

construction

the Angostura-Wupperman Corpo¬
Sept. 1. In the first four months of the
current year sales of Angostura aromatic bitters ran
34% ahead of the same four months of the previous
fiscal year of

minds

housing,

in

terrific

a

begins

The

be

highway building, schools, hospitals
and
many
other institutions.
And

LaFAR

President, Angostura-Wuppermann

ration

its prompt complete

been

to

and

casual

men,

sales volume, the
business shirt and tie lines continue in strong

stock.

seems

to

for

promise

attire

own

Sales of department stores and men's wear
during the last quarter of 1954 reflected easier
spending on the part of the consumers.
For stable products the company plans to maintain

Reports from our national
organization
show
increases
There

leisure

for

his

on

styles and colors of his

swing

wardrobe

fashions

more

new

shops

rather than the decreases which had
forecasted.

in

demand.

struction.
field

other

wear

regular

business for 1955 it looks
encouraging. In this statement we are gauged pretty
much by our own experience in watching the definite
improvement in large industrial and commercial con¬
As

spend

continued

dual

a

to

interest

The

the

casual

tends

more

tablishing
and

inventories and pricing.

B.

LAUER

E.

President, York Corporation
•

well-accepted economic principles of
proper
balance
between production,

ARTHUR

he

take

and

clothing.
S.

summarize, I see nothing but a healthy future for
the food industry—not booming, but healthy—if those
of us in this industry will operate our businesses in
maintaining

advances

the com¬

gostura bitters: the liquor field, the home and

To

with

for 1955

We have three growing markets for An¬

good one.

a

mercial food processing field.

loss of future sales.

accordance

ceiving larger orders and in turn have had to enlarge
production plans for both grey goods and finished goods.
Men's wear sales normally follow the trend of dis¬
posable personal income. As a man's disposabe income

flavor "holds" through the proc¬

has found whose spicy

41

Thursday, January 27, 1955

(8)
level.
v.

(9) Greater hope for world peace.
These factors

economy

working together should produce a level

and not one of boom and an

unfavorable after¬

math.
The outlook for banks in 1955 may be

slightly on the

Number 5398

Volume 181

...

Financial Chronicle

The Commercial and

plus side as compared with 1954. Loan volume should
slightly as corporations borrow to rebuild inven¬
tories and consumer credit shows a moderate increase.

rise

Deposits should increase as the Treasury continues its
financing program. Government security hold¬

deficit

larger at the end of the year.
bank operating costs are likely to
net operating earnings of most banks

probably will be

ings

Interest

rates

and

remain stable and

equal

96

million

a period of general prosperity.
The steel
is expected to jump back to new production
peaks. The automobile industry, a major key to the na¬
tion's economy, is all set to produce 6,000,000 cars in
1955, an all-time record. Building construction will con¬
tinue its amazing pace of the past two or three years.

and

Pacific Railway Co.

President, Northern

will

1955

in

business

the

last year and
ness

in

and

on

be

country

perhaps

railroad

our

territory

to

continues

ment

and

These

Basin.

in

At

Williston

Northwest

portant to

to

up

considering

optimism
outlook
for

the

Northwest

Northern

west.

Pacific

of

the
Robert S. Macfarlane

commenced

being drilled con¬
tinuously by Northern Pacific and Shell in the Cabin
Creek field on the Cedar Creek anticline and by Amer¬
ada and Northern Pacific in the Fryburg field on the
Northern

Dakota.

Pacific

main

wells

line

are

west

of

Dickinson,

North
The Pine field, where Northern Pacific has a

substantial

interest,

five

strings
negotiated.
Two

development

is

of tools.

being developed by Shell with
Additional agreements are being

important developments in Northern Pacific
and

senger

freight service—inauguration

of

the

pas¬

Vista-

dome North Coast Limited in transcontinental passenger
service and reduction of a full day in westbound Twin

Cities—North Pacific Coast freight schedules will stimu¬
late
our
business.
Northern
Pacific
exnenditures
of

nearly $28,000,000 for new equipment and improvements
this year will help the economy of the entire area.
ROBERT

T.

MARSH, Jr.

spite of fears expressed
as a

whole

was

the

recognize

favorable

of

midyear,

best

in

After

we

confidence

some

of

history

and liquid

in

savings

op'imism

and,

have

mand

for

indicating

increased

have

the

lines

others
have
T.

Marsh, Jr.

ket.

will

and

to

I

be

J.

in

a

buyers'

t

»

--

National

Lead Company will have a
very
Operating at high levels during the
early months of 1954, the company's business picked up

ent

end

of

the

year

and

this

trend

pres¬

at

year

this

lead

were

they

to

said,

many

recession.

severe

a

Some of these signals were a threat¬
ened
a

slump in building construction,
automobile

in

cut

duction,
ernment

automotive
somewhat
did

000.

industry
in

decline

ditures

and

steel

were

1954,

tion,

Measured

of

in

goods

from

and

industrial

sectors

many

terms

of

the

pro¬

of final

services

institutions

and

government expen¬

down about $5,000,000,-

from

the record

year

Joseph

earnings after taxes kept pace, largely
of the elimination of excess profits taxes.
today the

years.

nation's

Most signs

Mari.no

A.

also higher.

And state and local

government spending reached

high in
In
J. L. Mauthc

as

a

result

economy is facing one of its
point toward higher sales and




are

to

McKELDIN

State

to

increase in
tax effec¬
1, and a' 1% -increase

next

1%

a

consumers'

2%

sales

income tax effective next

The

Jan." 1.

income

tax,

beginning
Gov. Theo. McKeldin

July 1, will, if this fiscal plan

collected through
deduction. I am confident that

adopted,

be

enacted

that

so

the plan will

schools

excellent

our

hospitals

and

maintain their gains and continue their advance.
It is my opinion, too, that the Legislature will take
initial steps this year to surrender the unwonted power
it long has wielded over the counties of Maryland by
submitting to the voters a County Home Rule Amend¬
ment
to the Maryland
Constitution.
Last November,
the voters approved such an amendment for Maryland

may

municipalities.
is

It

that legislation will be

expected too

enacted in

about vast improvements in our
in Baltimore City. These will in¬
substitution of a Baltimore City Superior Court

session

this

to

bring

the

fact,

only

two important
which showed

sectors of the economy

declines

last

Government spending and business

Federal

Federal Government
1953 and

were

be

reorganization

Courts

of

facturing, wholesale
$5 billion.

and

Baltimore,

these

two

important

Looking ahead, there
the business

on

There

combat

correction

prospects
year

in

business

of

are

for

ahead.

some

For

is

now

We

over

is

of

construction

the

in

third

new

It is my
many

we,

about

chemical

the

one

on

industry

had.

of

income than

a

year

ago.

prophecies, will set

a

new

With steel inventories

years,

record in 1955.

near

Board,

the

enters 1955, we can look
amazing quarter centuries any

industry

Since 1929, our industry has grown
a
year while American
industry
as a
whole has averaged 3%. Even

10%

greater progress is forecast for the
quarter
century.
Some
au¬
thorities have predicted an increase
next

400%

of

still
no

by

upward

1975.
and

lag in 1955.
the heart

of

At

dustry's
way

in

growth

which

research
and

money

chemical

the

in¬

spectacular
have applied

the

we

scientific

more

The direction is
there should be

is

materials

the business horizon is the

the business horizon is the
outlook for construction which, according to many recent

of

Pfizer & Co., Inc.

of the most

ever

rate

E. McKEEN

Chairman

&

Chas.

and the

on

Harbor,

shall continue our progress without

JOHN

the

Baltimore

the

Annapolis—the Capital.

President

at

under

greatest engineering accomplishment

belief that Maryland will need no new taxes
years after this year's fiscal program is en¬

acted, and that
interruption.

back

building

of the State.
approaching the construction stage of
state office buildings—one in Baltimore CityM

consumer

bright spot

boys

are

and the other in

for

tunnel

to

creating

processes.

(estimated

new

We spend

at

almost

$400,000,000 in
1954) on research
than
any
other industry and will
continue to do so in 1955 and the

now

lower in relation to personal

include

history
also

We
two

a

will be the

which

inventory accumulation during
in the case of steel, a

on

will

deliquent

for

camp

launched last year, and we are moving toward

program

example,

bright spot

high level of

income

work

a

latter

The

delinquency.

juvenile

the walls of our training schools.
have, of course, our big 12-year road

three important bright spots
First, from all indications the

inventories

further

beyond

manu¬

sectors

to

system of parole and probation, and
good work we have started to

the

establishment

the

legislation

new

some

new

our

extend

shall

we

be

will

strenghen

are

horizon.

now

istrate system.

As

of

the

of

inventories.

inventories, including
retail stocks, declined

City, Also included will
Traffic Courts and Police
under an outmoded mag¬

Supreme Bench of Baltimore

spending dropped $9 billion between

1954 and business

contraction

year

unwieldy system of courts now grouped as the

the

for

a new

1954.

substantial

The

of 1953

must, if we

services.

and

proposing

am

produc¬
economy

incomes. National per¬
running slightly ahead of a year
ago and is expected to increase further as industrial
employment gains and the work week is increased.
Another factor which will add to purchasing power this
year is the expected increase in consumer indebtedness.
Total
consumer
credit outstanding
is now somewhat

suffer
production

but

And

was

actually showed gains in 1954 over
the
previous year.
For example,
total consumer spending in 1954 top¬
ped that of 1953. Total construction

sonal

did

steel

of National Lead Company, were re¬

best

recession

of the most moderate in history,

distinct

as

current

Industry sales, including those

duced

business

consumption

The second

pro¬

general reduction in gov¬
expenditures. Actually the

a

We

its impact on
hospitals and

population and
schools,

public

inventory contraction cycle has already
begun. Also, in the case of automobiles, dealers' stocks
of new passenger cars are less than one-half the size of
stocks a year ago. And the need to build up these deal¬
er's stocks will boost automobile production and steel
consumption in the months ahead.

of
citing

which,

points

could

time

economists

at

in new rev¬
to meet our tremen¬

tive next June

is

the

for

necesary

reversal of the

nation's

danger

1954

duction.

the

year.

Last

the

the

probably continue into the

War II.

THEODORE

production.

good year in 1955.

toward

nearly 88 million tons.

of
economy resulted in a decline of 10% in industrial
production from 1953 to 1954 and a 20% drop in steel

Company

of World

this year

clude

the

MARTINO

President, National Lead

will

necessary

despite the sharp drop in steel

The

momentum

the

make

we

as

The

will

taxes this year.

believe

business,

than the 1954 production figure

more

one

as

mar¬

horizon

standard of

our

about. $28,000,000

in the 2%

MAUTHE

L.

not

course,

salesmen

living to be
changed and with a Federal
deficit expected, there is little hope for a reduction in

I

McCabe

President, The Youngstown Sheet and Tube Company

for

profitable

as

believe

compete

plans

business

grow

Courts—particularly

bar¬

I expect the cost of

A.

B.

Thomas

do in the physical sci¬
ences, we will be able to supply a missing link to the
greatest era of prosperity the world has even known.

an

little

J.

foresight to

expenditures in this field,

re¬

Of

is

It

be

de¬

their

volume.

the

on

near

and

payroll

of

business

clouds

be

in Maryland, the prospects are good for some
significant steps in the march of progress which
we have enjoyed in these recent years.
The
citizens of Maryland are
well aware of the

the

from

of

increased

an

from

dark

no

Business has to

production
the 80%

quarter

well

may

Here

I

friends abroad. Government is slowly
its tremendous spending program.
The dollar is once again gaining public confidence.
Possible drawbacks to improving our economic situa¬
tion are the lack of scientific knowledge of distribution,
the lack of significant development in the field of mar¬
keting research, and what in many cases are obsolete
tools in personal selling.
we

but

Governor of Maryland

withdrawing

was

cently

R.

noted

see

HON.

the public, and our

Once

the

in this country if we are
living, if we are to continue
to provide for the constantly growing population.
We
will continue to expand and modernize, as we have ever

other

continues to merit and receive the confidence of

unfavorable

loans

can

dous

In Washington the President

contribute to better living.

foreign
developments, I exoect the year will
be
as
good or better than
1954.
Banks

I

present.

Second

assured.

seems

to

predict,
operating level.

enue

whole

our

breaking rec¬

are

busi¬
in

opens

now

harder

raise

in¬

There is unprecedented appetite for products that

ords.

letdown in

pickup

1955

is

.

number

real significance. Incomes after taxes

quar¬

restoration

a

a

year

ring greatly

the
some

saw

and

The

atmosphere

all

a

factors

beginning to offer possibilities of

of

in

ago

dustry

our

eight million tons

year

a

country.

ness.

is

the

and
in

first three months, a good first quarter for the steel in¬

ties,

population is steadily increas¬
At the same time foreign trade

ing.

books,

production

needs, plans and opportuni¬
the General Assembly is
becoming more
and
more
influ¬
enced, as it always should be, by
the^ expressed will of the people.

flit?'

optimistic atti-'

very

we

good business year, probably

a

second

our

our

the

on

State's

1955

ahead gives promise of being a good one for
the steel industry. We anticipate approximately a 10%
rise in steel output for the industry for 1955, or about

Richmond, Va.
In

take

now

automobile

of

very

The year

President, First <?; Merchants National Bank

ters, 1954

in¬

the

be

Our

der River Basin and Central Montana.

Additional

will

fluencing the outlook for

anticipates

during the year under
agreements which have been concluded. These explora¬
tory wells are to be drilled in the Williston Basin, Pow¬
be

vital

some

economy:

exploratory activity affecting its oil and gas hold¬
ings in 1955 than in any previous year. Thirty-nine wells
required to

in

year

Paper

in

important

more

are

this

tude because

North¬

Pacific

the

and

We

addwhen

economy,

for

reasons

im¬

most

good indication, barring unsettlement

inc ustry's best.
Scott

orders

stay strong.

substantial increase in sales.

—

is

McCABE

Company we are
to top our 1954
capital expenditures of $32 million
and
are
setting our sights for a

factors,

industrial—which

is

relations

that

planning

:

plus an ex-4
tremely favorable outlook for con¬
struction
housing, public works
and

There

labor

paper

develop¬

the

exploration

B.

of

level

came

dustry,

Basin in North Dakota and Montana,

basis

high

and paper in¬
further expansion in 1955. Its last year's
to wit: in 1% of the 1953 all-time

see

in

Columbia Basin in Wash¬
and in the Missouri

the

expected

excellent that the pulp

dustry will

State

oil

are

production

compare

On

tons.

steel

since the end

Prospects

the

and

prosperous

exceed the estimated steel consumption of
As a matter of fact, the build-up of*
stocks has already begun and is likely
to continue through the first half of the year.
or

customer

to maintain

THOMAS

record.

great

a

President, Scott Paper Company

favorably with 1954.
Agricultural expansion continues in
ington

specifically will have

in 1955.

year

a

Pacific

Northern

Lead

year

as

a

banner year for

a

National

for business. I believe
whole will be as good as
little better and I look for busi¬

good

a

All of them have complete
1955, with none of the

important stake.

an

and economists are predicting

Most industrial leaders

that

has

pany

all industries in which National Lead Com¬

are

indecision that characterized early 1954. As the situation
looks today, I am quite certain that the nation in general

MACFARLANE

S.

to

industry

confidence in

should increase moderately.

ROBERT

earnings and

These

43

(503)

John E. McKeen

chemical conn
depends any
longer on one or two products as it might have done
only a generation ago.
Research has made it possible
for a single firm to market scores of basic products
in

a

vast

variety

Competition
American

years

free

to

pany

of

of

come.

No

consequence

forms.

continue to be keen in 1955.
enterprise system provides the

will

The
best

the lowest levels for many

it is reasonable to expect steel production in 1955

Continued

on

page

44

44

The Commercial and Financial Chronicle... Thursday,

(504)

1955

January 27,

)
Continued
of

means

jrom

faced with surpluses and lower

industry

reeds,
good
in

1955

it

as

as

fulfill these

This is another
chemical industry to grow

whole will gain.

a

for expecting the

reason

With each

has

the past.

in

passing

of

As each

human needs.

meeting essential

endeavors to contribute the maximum to

us

American industry as a whole

year,

depends more and more on the chemical industry. We
row
produce materials for all of the 72 major indus¬
tries in the
United
States.
Our chemists and other
scientists

tilizers,
the

In

II.

field

chemical

the

the

saw

of

development

that

products

drug

new

nomic conditions in
Our

wonderful

not

made

the

1955,

accomplishments of recent

In

as

tion

for

have

any

of the major disease

one

great

as

impact

an

problems

which

industry

an

contributed

has

helping people live longer and healthier lives,
a

have already taken

We

animal

researchers

American

No

trade

than

important steps towards

interest, but
to eradicate

interested

more

Overseas

ours.

justify this
by helping
cnemical

industry is

sales

like

H. V. McNamara

disease

industry in the long

and

in

A.

of

starvation, the
is making a signifi¬

Steel

goods.

plans

motive

Products

equipment,

and

power

to the

companies,

will

the

automotive

Consum¬

responding

are

bile

exceptionally
offerings of the automo¬

probably

their

and

The

continue

somewhat

perienced
tensified
demand
and

last

lean

almost

un¬

to

by making

better

creased

create

reduce

in¬

new

ways

to

know that

I

this applies to indus¬

sure

try generally, is continuing to study improvements and
to institute new methods of reducing costs.
ARTHUR

E.

McLEAN

President, The Commercial National

There

there

are

dealt

with,

should
trend

desire

a

unfavorable

I

be

has

is

do
least

believe

it

tirely happy
with
will

Our college training program, as well as on-the-job
training, has been instituted to prepare the younger
generation in our company to take over management
and operation in years to come.
While

the

growth and expansion of National Tea Co.
accomplished at a rate far in excess of the

is

being
industry average, each forward step is made only after
deliberation and discussion, and is based on sound and
profitable business judgment.
Meantime, profits must
maintained or improved.
Therefore, expansion is
being carefully planned to keep pace with earnings and
be

insure

that

is

optimistic

but

our

business "lives within

WARD

its

too

An

series

brackets,

more

a

of

f

business

as

not

the

value

earn

of

the

the

some

minimum wage,
dollar and the

year

by

wili

the

stable, and that

are

con¬




its

fiscal

and

monetary

to

powers

keep

business at

a

All of this was accomplished with a decrease
$10 billion in Federal expenditures for national

over

security

(third

at

were

third

the

noteworthy
Federal

1954

expenditures

Federal

will
Arthur

E.

quarter of

performance

recent

a

of the

action

in

Board

Reserve

This has been

1953).

the

and

raising margin requirements
decisively to
prevent any speculation excesses. Also during 1954 the
cost of living held remarkably steady and the latest*
figure (114.5 for October, 1954) is within 1/J0th of 1%'

shows the government is going to act just as

of the average for 1953

active

and

averted

Thus has recession been

(114.4).

1955

This

promoted.

recovery

continue into

should

recovery:

although competition will* be

keen in many lines.

What

of

some

are

the

why

reasons

the

current

re¬

in business is going to continue?

covery

Inventory Position: Inventories in manufacturing
a steady increase from the late sum¬

(1)
and

trade showed

mer

of 1952 until

they reached

a

peak in January, 1954.

Since then they have decreased every month to

the latest

figure of $77.48 billion as of last October. It seems sen¬
sible to expect that this substantial inventory liquidation
has about run its course.
With business picking up,
inventories will start to be replenished as is now

the

case

in steel.

earning
down
of

of

living,

power

but

again goes
the

peoples

agriculture which

is

business

This

1954.

is

the

over

first time.

high for the U. S.,

four

million

mark

houses

in

million

modest decline and

very

is

long range

housing starts in November, 1954
to only 81,500

1955

in

may

reach

This

1953.
to

stimulant

in

November,

were

1953.

1.3 million, compared

will

commercial

for household

demand

the

Government

of

of

course

act

construction

as

as

a

well

103,New
to

1.1

powerful
as

to

the

products.

Expenditures:

goods

and

of $47.9

level

services

billion.

Federal
are

Government

currently

at

an

It is interesting that this

only about 13%

war,

in

ments for
In

Melville

Add them to the 37 million other babies born

sumer

high.

time,

same

With

should

the

a

see

threat

1955

should

see

an

by state and local govern¬

schools and other

1955

vitiated and with
Ward

the

At

the expenditures

new

short,

income.

going

for

1955

the liberal credit terms of the Housing Act of

New

increase

1954, for the shoe industry,

new

a

a

planning and improved technology will require a con¬
tinued high level of construction expenditures. Further¬
more, residential
building should continue to expand

expenditures.

Possibly the biggest

to come.

the first quarter of

for

$6.1 billion, compared to $6.2 billion in the first quarter

stop declining. The continuance of the
the proposed pay raises to servicemen, the
new highway program, the
possibility of additional aid
to Asia, all augur against further declines in Federal

the fact that births in that year

was

set

high expenditures of $26.5 billion and $28.4 bil¬
and 1953, respectively.
The estimate made

1952

American

by

cold

sold

of

news

cost

in

lion

Government will

guarantee that more shoes
to young adults in the

a

be

years

McLean

<

anual rate of $42.1 billion, compared to $52.3

an

in

billion

of

quarter

.

*

of Gross National Product, whereas
they comprised more than 22% of GNP in both 1952 and
1953. It appears likely the expenditures of the Federal

ago.

tically

only have many businesses been unprofitable in
but many will experience little
recovery in the
that lies ahead. They will have trouble in
coping
will

requirements for

reserve

high level.

is

in the last 10 years

as

decline.

securities, the lowering of taxes, the easing of
credit, all showed the Government could and would use

annual

growth of the past 10 years is prac¬

Not

labor costs

would

banks, the open market purchases of Gov¬

purchases

in the United States. The population

and

prices

ernment

(3)

facts

be larger,

try, of course, is the number of feet

value

stock

ex¬

basic factor for the shoe indus¬

A

savings.

mereased

prices

supported

This

sumers' shoe inventories at the yearend were slightly below those of a

the

far

the decreases in

marked:

so

commercial

1954.

carry over into 1955, so that the year
for both production and sales — will be

popu'ation

total

that

simply means
increases in
in

—

is

en¬

increase

whole

a

pectation

wage

is

aided by

Corporation

to

that

many decisions
increase in the

further

Shoe

staged by retail shoe sales in the
The industry, generally, expects

was

1954.

of

somewhat better than 1954.

upward

unemployables who have

can

strong finish
strength

minimum wage level will not stabi¬
lize our economy. It
another

how

Prompt action on the part of the Government undoubt¬

100, compared

A

quarter

Inflation is again
political expediency

Washington.

taking place. Some talked
how high unemployment

was

means."

MELVILLE

President, Melville

where

year.

and

us,

A

appre¬

in business

of

this

an

play.

were

the decline

the very

last

going to be

ac¬
our

merchandising and advertising, (3) Intelligent manage¬
ment, (4) Development of personnel.
These, of course, couldn't have been possible without
another, and possibly the biggest, factor: The ability

be

an

role

wondered

and

and

go

business
the

will

(2) Capital and Construction Expenditures: In 1954
expenditures on new plant and equipment by U. S.
business totalled $26,682 billion.
This compares with

these

The

would

1955

people

many

over

Product

Much of National's gains ip the past, and our projected
gains of the future, has and will be
due
to:
(1)
Improvements in stores and facilities, (2) Aggressive

to

taken

determine

with

Development of a large group of younger people
stores, offices, and warehouses on whom we draw,
as they get experience on jobs in their
field, to fill key
positions as the need arises.
in

factors

probably be recorded
a good business
year.
However, in many respects, I do

1954

to

like

(3)

believe

not

ignored.
at

be

to

1955 will most

year

those

or

an

turn and the volume of business to be
done should again be greater in 1955.
When
December
comes,
the year

all

people understudying these men to take
positions in our present branches or
be acquired in our expansion program.

young

these

over

opinion as to what the year ahead
business, I am sure that all forecasters must
many misgivings and in this respect I am no ex¬

ception.

in

in¬

for

have

that

recession

a

of

and

consumer to live
better, eat more, and
enjoy a higher standard of living as a result of vastly
improved economic conditions in America.

Bank,

Little Rock, Arkansas

1

look

with physical expansion

has been developed

Our official family

capable

to

hensive

exceed

set in 1953

billion.

consider

Government

ago

year

Crandall Melvin

might

of the American

improvements

inefficiencies.

company, and I am

in

greater

attractive
products.
In¬

these

of

ex¬

more

quality

cost

we

resulted

year

research

times

kept down by studying and applying

not

we

and personnel develop¬

(2) Establishment of capable key personnel in all the
important operating and merchandising positions with

demands

abated for several months.

as

our present rate of expansion,
million or more in 1955.

procedure.

Co.

barometer.

our

well

holds

At

largest food chain in the United
in 1954 of approximately

volume

in the past few years and more and more toplevel decisions are being made by our advisory committee
which operates as a discussion group to decide operating

frames

ers

expressing

sales

a

three levels:

on

(1)

by enlarged purchases
In our business, that

supplying

industry is

In

the fifth

now

with

Our company's organizational
ment program is keeping pace

brakes to the manufacturers of auto¬

own

are

$520 million.

McKINLEY

the future

of hard

our

Federal

to

1954
about

nearly 4%

or

National

Any opinion of

Canada, and

was

This would

Gross

must

country

For
this

1955

billion,

billion.

our

tivity

west

the

time.

For

totalled $364.9

from

with such plans, we must have extreme
future, and particularly the prospects for

the

$370

when

the

to
on

of

meas¬

goods and

the previous high record

of

for sales of $575

public has reaffirmed its confidence

eliminate waste and

Dakotas

period

billion.

$356

its
further

serve:

the

edly helped start the recovery in business which today ;

We

unequivocally that business conditions
good for the entire year 1955. Perhaps the early
part of the year will be better than just "good."
The

was

now

Mexico

of

the

we

expand

1955.

say

McKinley

in

States

Look

w. a.

area

to

all

produced" in
a

rise about $14

ac¬

creased

WILLIAM

would

from

as

of

the Gross National Product

new

considering
various parts of

value

services

during

our

Naturally

prosperity.

President, The Midland
I

the

the

ures

buy

border.

faith

cant contribution to the eventual establishment of world

peace

in

Chicago
Iowa

and

run

Gross National Product which

Michigan and Indiana on the east.
long-term plans are new warehouses in
and in the "Quad-City" area on the Illinois-

Included

foreign
more than
think that

to

quoted Federal Reserve Board's Index of Industrial Pro¬
duction, but the more comprehensive

our¬

also

in

Gulf

the

in

figures

also

we

Barring a shooting war, business in the United States
during 1955 should surpass any prior year. Probably the
best indicator of our national welfare is not the usually

of between $15 and $20

is

so

within the

searching for
ways and means to help the farmers grow enough food
for everyone.
More than that, we believe that our
scientists will find chemical agents which will make it
possible for the human system to get more body-build¬
ing nourishment out of any diet. The possibilities for
our industry
in this direction are staggering when we
ponder what this would mean on a world-wide scale.
1

who

build

and

MELVIN

of Syracuse, New York

Trust Company

to

territorv

constantly

are

will

quisitions

by antibiotic feed supple¬

growth promoted

Our

ments.

a

This

stores.

lessors

National

solving the world food problem; witness the phenome¬
nal

new

the

property

in

as

years

the shoe industry.

million.

to

great responsibility to see that they also have enough

to eat.

is

being
bring the
by

and

three

past

now

investment,

stores for us,

have

we

locations
probably

in the
operate.

an

the

might

much

so

new

will

we

selves

last decade.
As

addition,

which

represents

the antibiotics have in the

as

in

figure to around 85

cancer,

cold, high blood pressure and other prob¬
lems remain unsolved, we cannot be satisfied.
A solu¬

the

CRANDALL

supermarkets

new
area

considered

have

years

As long

industry complacent.

75

10-state

common

our

the entire decade
population growth
factor of both short and long term importance to
in

between 1930 and 1940, it is clear that

President, The Merchants National Bank &

confidence. For instance, we
have under lease, for opening in

now

the world.
The

country will be significantly higher in 1955 than in 1954.
When it is realized that the population has grown as

Co.

reflect that

plans

will

improving the health of people all over

ing lives and

Tea

1955.

off not only in sales during 1955, but also in sav¬

pay

National

the population of the

is not massive, although

course,

McNAMARA

a good deal of confidence to
prosperity and further improvement in eco¬

continued

industry

holds

aid

a

We at National look with

health,

human

of

V.

President,

great pride in what it has already accomplished
high hopes for the future. The year of 1954

takes

much

hundreds of other fields.

in

and

the

food,

diseases,

plant

Here

textiles, fuels, fer¬
raising of livestock

in

problems

solving

are

"growth" factor of great importance to the
entire shoe industry.
The impact in any one year, of
is

production quotas. There
are certainly danger signals on the horizon that can not
be ignored; a much too rapid rise in prices for listed
securities, fading hopes of an ability to balance the
budget and relief from wartime taxes that are too high.
The nation's problems can be solved but it will require
staying with sound measures, more determination to do
a good job, and the
taking of a political risk in so doing.
Wide assurances that all is well is not enough.

43

page

of

public services.
high

level

inflation

of

consumer

and

recession

strong confidence in the future, con¬
expenditures and savings should continue to run

Thus

a

consumer

demand for houses,

services and

The members of both of these groups—male or female—

Likewise the
demand for goods and services on the part of our Fed¬
eral, state and local governments promises to show a net
expansion. Moreover, the demand for goods and services

buy

on

a

big

years,

of bumper baby crops, and you have
"bulge" of good shoe customers in the next 20
first as "teen agers" and then as young adults.

more

pairs

per person

than in the older age groups.

goods promises to remain at

the part

a

high level.

of general business will also show continued

Number 5398... The Commercial and Financial Chronicle

Volume 181

(505)

45

to

With Government, consumer and business de¬
mand now increasing, it may be expected that business
activity, though not of unsound boom proportions, will

In

growth.

nevertheless surpass any prior year.

a

foundry and metal-working interests we find
much improved situation at the Start of 1955.

my

very

Readjustments by various industries served by us seem
to be prettey well completed.
We experienced a con¬
siderable

R. W.
President,

MOORE

Canada

Dry

of

ters

Ale,

Ginger

1954

drew

events of the year in
the soft drink industry gave unusually clear indications
of what we may expect in 1955.
Giving due allowance
for the hazard involved in making predictions at any
time, I think it is safe to forecast
the following.
Soft, drink
tainly reach
total

close,

a

will almost cer¬
new
high, both in

sales
a

volume

sumption.

to

and

The

per-capita con¬
industry has been

rise

constant

the

that

ditions
the

will

sales

Canned

than

opments, the
and

new

but

phase,

sales

package

accounts

now

less

for

It

far

created
most

seems

clear

that

wider

a

become

tax

flurry during the
it settled down

a

market.

the

of

will grow in volume,

exists than has

market

yet

Before the 1955 trend in Canadian

in

other

Vending machines, par¬
ticularly the multiple-flavor types, will definitely play
a larger
role in the industry's opertions this year.
Over the past few years there has been
a notice¬
able trend among independent bottlers to adopt national
franchise brands as a means of strengthening their mar¬
ket position.
This of course also strengthens the na¬
no

way.

What rate of assistance

ernment offer

(2)

Are the

rates

ourselves

Our electric service

miles has

enjoyed

that
to

others

in

field

this

join

in

me

looking

1

■

.

a

matter of personal interest

prophets of gloom who
in

alent

avowed

late
and

were so prev¬

have

1953

to

few of their dour

very

at

engaged
local

Central

North

the

in

service

or

a

continual

Airlines

development
so-called

airline business and

are

growth

are

of

a

"feeder"

experiencing

from

year

to

interrupted very little
tuations of general business.

by fluc¬
Thus in
1954, number of passengers carried
on our system
consistently averaged

year,

between

30%

and

40%

Arthur E. A. Mueller

crease

was

greater

than

above

I believe that

an

this in

the

increase in business travel

in the highly industrialized Middle West which we serve
well be interpreted as forecasting increased activity

can

nationally in business during the coming

year.

We are

that the improvement in business
will continue that we recently authorized a 25% increase
in seating capacity on all the airplanes in our fleet. '
Of further significance in interpreting business trends

so

firmly

convinced

believe

we

is

the

tion

and

that

fact

Airline has increased

in

commercial

travel

greater, proportion

on

than

our

vaca¬

pleasure travel during the past three months.

It is obvious that this indicates greater business activity
on

the part of industries and business in the area

served

We furthermore have noted a more uniform pat¬
tern of airplane usage from the geographical standpoint

by

us.

over our

entire system.

uniformly
1954.

active

than

All of this, it

This

it

seems

that business is more
during the first half of
forms a rather solid base

means

was

to us,

for increased business activity in the year to come.




several

for

due

the

to

3,500,000

fact

acres

Retail

sales

that

our

under irrigation.
family in our

area

per

above the national average

area

prior

includes

are

and

fifth

and

well

as

as

international

during 1955 and

Outside

quent
omy

beyond.

the outlook for business and general econ¬

of our service area, principally in the State of Texas,

DONALD W.

A.

in

domestic

NYROP

President, Northwest
This

of

year

studied

1955,

probably

which

closely

as

tory.

Its trends will
citizens.

No

base

entering,

in

business and all

has

person

the,

as

can

thefy relate

broader national economy.

Transportation, obviously, is
responsive to the

and

ups

economy; and for this
commercial airline may be

reliable

a

very

downs

this

as

If

only
the? experi¬

on

firm

own

answer.

he

man,

judgments

of his

is being
industrial his¬

our

to all

business

his

the

are

much

a

ences

to

we

one

is

Orient Airlines

as any

mean

he

reason

of
a

regarded

barometer of what

lies

ahead. The accuracy will be further
established if the prospect of its own

coming year is projected from
tern

that has

been well

ing the previous
Donald

W.

Orient

ity of
pear

a

pat¬

drawn dur¬

year.

It is for this reason
that, in gen¬
eralizing about 1955, I must look at
it from the standpoint of Northwest

Nyrop

Airlines, whose domestic transcontinental route
the northern tier of states with their wide divers¬

crosses

resources and activities.

The year's prospects ap¬

reassuring.

Northwest
1955.

Jan.

C.

competence

While the Gold Reserve Act of 1934
remains upon our
books, it constitutes a definite road block to a fair
market value for
gold. It no longer serves any good
purpose and should be repealed.
The Bretton Woods
Agreement is another monstrosity which should
be re¬
pudiated by common consent of the
signatory nations.

is

highly favorable with a class of population of pioneer¬
ing stock and almost 85% American-born Anglo-Saxons.

of

men

immediately."

not only far

It is

recom¬

of its creation, to which
of the world's potential gold

statute

some

might be experienced during 1955 and subse¬

years,

of the views of the min¬

and
trade should
be ap¬
pointed by designated government
authorities;
"And that the first of these
steps should be taken

to

possible limitations due to drouth condi¬

of

tions that

capital for

justify plant

success.

finance

expected that this high level of expenditures will con¬
tinue

to

reserves

Commission

a

in appraisal

but two of the principal cities

this vital sales statistic.

respectively in

no

receiving the

of

skilled

a

service

secure

"(3) That Congress fix the ratio at which the dollar
and gold are to be made
fully convertible and deter¬
mine other technical procedures involved
in the resto¬
ration of the gold
standard, after

being re¬
of growth

years

must first search

you

then

"(2) That the gold standard be restored at the earl¬
iest practicable
time;

well-diversified econ¬
omy comprising agriculture, natural
resources, nearly all phases of industrial plants, as well
as
distributing media. The only serious aspect of the
appearance for 1955 is the possibility of a
continued
drouth condition; but even that threat is well balanced
with

1954,

Nichols

L.

year

closing months of 1954 and believe this may well serve
as a
basis for expecting more travel and consequently
more
business activity in the territory served by our
company.

increment

the

to

of

"(1) That the restrictions on the purchase, sale and
ownership of gold by American citizens be immediate-f¬
ly removed;

received

Now as to the year 1955, there is
presently every indication of the
rate of population growth and in¬

levels.

However, we feel that it
is significant that the percentage in¬
ago

aver¬

weather con¬
and, second,
unusually heavy rainfall.

revenues

are

served, namely Amarillo and Lubbock, have ranked first

predictions have materialized.
We

an

drouth

electric

There

Perhaps the best summation

extremely adverse

creased

and
ore

square

annum.

Southwest

mine

short cuts to

jolt during 1954 due

a

ditions— first

dis¬

been

the

in

somewhat of

other metal,

any

investment.

supplies

per

or

potential

a

development of sufficient

the

This illustration of growth charac¬

teristics

H.

large, I feel rather proud of my record as a prophet as
substantially all of my expectations have become reality
during the past 12 months.
The

gold,

find

mendation

have been increasing
of about 15%

age

stored

By and

year ago.

a

Like
and

On¬

in

comprising about 45,000

effective

I have just reviewed

forecast made in your magizine

my

area

quantities

anteed market.

NICHOLS

ergy

'

Chairman of the Board, North Central Airlines, Inc.

northern

increase has been averaging close to
5% a year and sales of electric en¬

ARTHUR E. A. MUELLER

As

large

Gov¬

past few years the population

forward

banner year.

a

L.

It is something, however,
Some companies

machinery and supplies are directing effort
of strategic metals, and just now in the
search for
uranium, for which metal there is a guar¬

much?

but

ended

idle mining
in the field

be

can

Dominion

in

year

ing industry is embraced in the "Declaration of
Policy"
adopted by the American Mining Congress at its recent
meeting, in San Francisco.
On "Gold
and
Monetary
Policy" it recommended:

increment of population and de¬
mand for electric service far beyond the national
average
for many years, and in the

sure

am

power

how

so

losses for the fiscal

purpose.

an

building two large, ultra-modern plants to
I

if

Federal
will

that cannot be accomplished
overnight.
with limited capital but
possessing

Chairman of the Board, Southwestern Public Service Co.

confidence in the future of the industry, we

are

hydro

and

30

in
recent
years,
some
with a modest
amount of success,
operating on limited amounts of capi¬
tal available for the

men

a

the New York and Vancouver markets.

serve

the

A
prompt decision has been promised
meantime plans must be left in
abeyance.

considerable number of licensed
bottlers this year, continuing our policy of widening
the availability of our products.
As a further expres¬
our

for

tario to be increased

brands, both competitively and through the
broadening of distribution which results. We at Canada
add

will

as

diversification

gold producers?

tional

Dry expect to

gold mining

burdens—

amount to $750,000,000.
They desire
only that gold be set free in world markets.
Quite a few gold mining companies have undertaken

to be settled:

H.

Another phase of soft drink merchandising which will

sion of

-

tax

gold should be revalued
presently depreciated dollar, but nothing
Gold miners do not ask for price sup¬
in the case of farm products, on which it is now

June

next

sympathetic

more

a

bore substantial

is done about it.

intelligently forecast, the following two questions need
(1)

probably be exploited further during the year ahead is
through vending machines. These silent salesmen create
extra sales at times and places wherein consumers could
reached

and

treatment

insistent on

more

President, Mclntyre Porcupine Mines, Ltd.

been j tapped.

be

increasingly

BALMER NEILLY

more

predicted that sugar-free, dietetic
drinks will find a larger market in 1955.
Our experi¬
ence
in promoting our Glamor line last year indicated
a solid and growing acceptance on the
part of weightconscious consumers. Most of this is new business, and
it

will

favorable

devel¬

new

also safely be

can

and

climb.

upward

5%

We expect that canned beverages
but at a slow rate.

basically very favorable, I cannot be¬
as
might be indicated by strong

recently. I believe every indication is
satisfactory volume of business, but I am sure that

a

more

year

than

indicated above that the out¬

as

Washington attitude.

Like

past

is

foreseeable future.

the

convinced

enthusiastic

as

results

its

caused

the

during

business in
am

1955

(regardless

in terms of the

estimated that

for

government

everyone knows or believes that

ports,

inquiries is probably the greatest on record
acquiring orders on a greater percentage of
quotations. We are certain that this indicates a good

oup

Federal, state, and local—and paid good dividends as
well, have been left to "die on the vine." By now, most

are

we

gressive selling is obvious under such circumstances.
Politically, the small- and medium-sized business is
finding it more and more difficult to obtain satisfactory
R- W. Moore

whole communities and

and

increasingly difficult for financially weak, poorly man¬
aged and many'small companies to make a satisfactory
showing in 1955. The importance of intelligent and ag¬

have

now

volume.

part has

our

it

con-

continue

an

on

competition will limit margins of profit and will make

in

Thus

year.

should

beverages until

conversation

fad

this

return

curve

feel that

we

of

complexion), to make any move toward alle¬
viating the situation. Domestic gold mines which were
highly productive (as, for example, the Alaska Juneau
Mine), whose payrolls, earnings, and profits supported

of

for

large areas of the
It is hardly to be expected
unfavorable weather

be

to

ahead of that.

financial markets

over

such

cases

Branch

of political

volume

come

population, this creates really siz¬
gains in the total volume of
consumption. Last year's sales were
materially affected by cool summer
country.

some

seems

Activity
always historically
increased volume of business generally. Our

magnitude

forecast

look

able

weather

this

of

third quar¬

business

of

manufacturer of component parts,

a

While I

in

remarkably successful in bringing
steady increases in per capita
consumption year after year.
with

in the second and

volume

business has considerable barometric value.

our

volume of

about

Coupled

General

back to late 1953 levels and in

Inc.

Being
Before

this

amount of

1954.

Administrative

As

2

a

is

looking ahead to

happy

record

a

augury at

number

of

a

$70

million

year

its outset, NWA carried
passengers

on

its

in
on

domestic

route.

NORRIS

The company's revenues for 1954 (unofficial

President, Alaska Juneau Gold Mining Company

so

til the final audited figures are available) were

Many optimistic statements on the outlook for con¬
business and conditions may be anti¬

tinued prosperous

cipated.

000,

than

or more

a

far

un¬

$63,023,-

million dollars above the 1953 total

of $61,834,000.

Some 1.2 million passengers were carried on the do¬
mestic, Orient and Honolulu routes during 1954.
This
,

In the field of domestic

opposite outlook prevails.

gold mining, however, just the
Generally

was

speaking, gold mining in the United
States and its possessions continues
to be very discouraging.
Only those

in

few

properties whose grades of ore
sufficiently high to stand today's
high operating costs, may be main¬
tained
in
commercial
production,
although at considerable sacrifice in
profit return; all the lower grade
the

must

same

cost.

tenance

doned,
and

remain

time

inactive and

endure

high

permanent

except at
investmnet

The

year

This

condition

over a

to be

no

has

at

disposition

on

over

1953's previous high
course, to break¬
still wider margin

a

increases

in

of

and

revenues

passengers

in

greater than it was during the past
shall be getting additional aircraft and

even

we

mean

Northwest

our

more

present fleets of planes.
than

an

analysis of the

Orient Airlines.

They mean that many people have money to spend on
travel, whether they are businessmen who use the air¬
plane to promote trade,

to

now

of

because

fortunes

terrific

prevailed

decade, and there

ratio

These summaries

vacations.

owners.

for

10%

looking ahead, of

expect further utilization of

main¬

loss

are

1955.

1955 should be

They cannot be aban¬

however,

We

ing the million-passenger mark by

are

mines

increase of about

an

of 1,099,000.

C.

A.

comparable

Norris

appears

the part of any Congress or

the

It is
or

or

tourists who

reasonable to

even

assume

trips and

go on

that if

they have

greater sums to spend on travel in

Continued

on

page

46

46

The Commercial and Financial Chronicle

(506)

Continued from page
they

1955,

other

spend on

to

money

filings.
ourselves have done dur¬

So. on the basis of what we

ing the past year, are doing now, and
pears

plan to do, it ap¬

gains.

1955 will be a year of substantial

that

W.

A.

PARISH

President, Houston Lighting & Power Company
The

attainment of
million

of

100

50

millionth

nationwide generating capability

a

connection of the industry's
achievement of all-time high

kilowatts;

customer;

production of energy per unit of fuel—all these
combined
with
the observance of

levels in

Diamond Jubilee to make
year of continued progress for
the electric utility industry.
The future appears to offer oppor¬
tunities that challenge the imagina¬
Light's
1954

a

tion,

as

well

problems that will re¬
planning and lead¬

as

the

of

original minimum stockpile require¬
generally presumed to be about300,000 tons, equal to at least five years U. S. consump¬
tion of virgin tin). For many years the U. S. stockpile has absorbed the world excess tin production over con¬
sumption, which excess has averaged about 36,000 tons
annually during the past four years. If the U. S. were
to discontinue purchases for the stockpile, production
would have to be reduced by means of a quota system
that the International Tin Committee would impose.
In
the first half of 1955, the U. S. Congress will decide the
fate of the Texas City
smelter, which is operated at a
loss by a U. S. Government agency.
Fortunately, there
excess

ments

have

will

also

in

45

is

an

(which

were

of tin

excess

Although few
production
World

mines have been discovered, worldincreased every year since the end of

War II, in

spite of a decline in Bolivia since the
principal mines were nationalized.
Bolivia has been
displaced by Indonesia as the second largest tin producer
in the world

(Malaya being the largest). As, in addition,/
is the fifth largest
producer, political devel¬

Thailand

opments

in

the

Far

quire farsighted

industry.

Certainly growth trends of recent

encouraging.
kilowatt
hour usage per worker has risen 65%
in .the last decade, and automation
which is receiving increasing atten¬
customer

groups

Industry's

by industry today appears destined to push
figure to unforeseeable levels in the future.
Through its use of better lighting, aid conditioning
use

the

other

and
r

is

business

applications,

following

Operationally and traffic-wise, they
successful year.

the

of

facing

problems

they

In the southern

tioning
tric
be

The heat pump, affording complete elec¬

season.

operation for both heating and cooling, appears to

partial answer to this problem.
The problems of heavy taxation of the investor-owned
a

socialization of the electric power industry are

still with
us.
They leave no room for sanguineness, nor for relax¬
ation of the industry's fight for preservation of the free
enterprise system. They are not a cause for despair,
however—they are rather incentives to accelerated prog¬
and

ress

PATINO

R., ANTENOR

It is exceedingly difficult to forecast the course of tin
prices and production in 1955, as major political and

*lt

international factors

Certain signatory countries,

including both

consumers

market

80

and

110

Under

floor

and

long

per

increased

the

U.

above

International Tin
allowed

to

and

the

purchase

tin

when

£880,
should
was

was

the

and

tin

£640

to be

price

was

vary

to

in

was

when

catastrophe,

allowed

metal

and

to

prosper by concentrating on
provide most efficiently and
Meanwhile, of course, public
progress such as have been

70%

(air

plus

those services which it

can

economically to the public.
benefits from technological
introduced by the airplane

cannot be denied.

As in every other year,

lines in

margin

1955.

Not

between

there

least

the

airline

problems for the air¬

are

of

these

revenues

is

and

the

narrowing
While

expenses.

operating revenues are reaching new highs, expenses
are climbing even faster.
Perhaps something can be done to correct certain in¬
consistencies in the airline fare
lieve

this

structure, and thus

re¬

squeeze.

for

our

sell

when

K.,

Antenor

the

price

buffer

A

stock

balance
same

in

to

cash), with
25,000 tons if

of

not

yet
haying divulged its future stockpiling
Although official figures are not issued, it is un¬
that some 40,000 tons have
been accumulated

derstood




than

product

he

did

before

the

war,

despite the fact that he is getting a far better buy in
terms of speed, comfort,
dependability and overall serv¬
ice. Today, for example, he can fly in deluxe comfort
from coast to coast without

a

stop in 7*4 hours at a cost
with the 5.9 cents
mile which he paid for 16-hour coast to coast
flights
6.3

cents

mile

per

as

a

compared

servicing of all automobiles
the

automobile

their

in

use

continued large

a

beneficial

to

new

business

barring

and,

car

a

market.

the

bearing business but not
an answer
by itself. This has always been a highly com¬
petitive business, and that is healthy.
There will be
competitive days ahead with the customer getting bene-r
fits and those companies meeting these

needs best, get-:
The outlook is good, but the going

ting the most returns.
will be strenuous.

.

T.

PIPER

President, Piper Aircraft Corporation
Nineteen
for

fifty-five promises to be

a

prosperous

the light plane maker. After much trial
have learned where the real market is.

part

of World

year

and

error,1
During the

War II, many surveys were made

single

a

industry
tised

for

tremendous demand

be

small

been

ever

No

airplanes.

engine

had

adver¬

so

this one,

due to the exten¬
planes in all kinds of
military
activities.
The
tens
of
thousands who had been trained as
as

sive

of

use

pilots were expected to continue to

fly. Veterans who did not wish to
get other training could learn to fly
government expense; they flocked
to the airport creating a large mar¬
ket for the small planes, but as soon

at

all

the student

and

the

boom

airlines

enter

the

new

year.

some

With

optimism
the

same

progress as they demonstrated in 1954, it would
that the months ahead will be good ones both for
and their

W. T. Piper

airplanes, so that now only four companies are report¬
ing sizable sales. Thinking in regards to private flying
has changed radically in the past few years.
We now
recognize the fact that the real value of air travel is
for long trips, but most people do not make enough
long trips to justify the ownership of a plane.
This
the

that

means

market is limited to

another

or

time

be

can

saved

who for

those

make long

by

wages

The light plane

one

journeys.

flying

frequently

and

So

are

high, that corporations cannot afford to have their
travel by slower transportation.

so

men

manufacturers have steadily increased

the

size, speed and range of their planes. The smaller,
single engine ones are still in demand for spraying,

seeding, fertilizing, etc., and planes seating four or more
are selling readily from $7,000
to $20,000. Most people
do not wish to fly at night or across wide expanses of
water

with

a
single engine and the large corporations
this by buying war surplus airplanes with
four engines for the top executives, but until

got around
two

or

recently

there

has

been

small

no

twin

engine

planes

Three years ago two twin engine planes were put

made.

into production, but this year for the first time, four
planes of this type, seating four to seven passengers, are
available at prices ranging from $32,500 to $70,000. These
planes carry fuel for long hops, are equipped with sev¬
eral radios and have complete instrument panels.

Besides

being a system of travel good only for long
airplanes have had the weakness of being
usable a comparatively few hours
per year.
These new
twins can fly above most overcasts and at
night, as well
as in
marginal weather. With them private planes can

hops,

the

approach

airline

reliability.
Their" ability to operate
airports gives them great utility and opens
untapped market. The twin engine airplanes

from

small
new

a

are

sure

to

revolutionize

of planes for executive

and

greatly increase the

use1

flying.

The sales

possibility of these twin engine airplanes is
tremendous; they are sure to practically revolutionize
and

customers.

pilots stopped flying
collapsed.

Many manufactures quit building

on

segments.

the

practically

their money was gone,

as

up

S.

greatly increase business flying.

PEPPIATT

parallels that of the general
Patino

£880.

and

the

the

about

constant growth
be

will

much

The outlook for business in the

"benevolent neutrality"
Government.
This recent

ernment

plans.

than

healthy if it is to make its proper contribution.
It is hoped that each type of transport will grow- and

President, Federal-Mogul

adopted by the
uncertainty had the
effect of causing the
spot price of tin to drop from the
1954 high of
£825 to
£681
per
ton, equivalent to
103 and 85 cents U. S.
per pound, respectively.
Another major
uncertainty is due to the U. S. Gov¬
S.

a

must be

G.

insist, amongst other
modifications, upon a ceiling price of £840, and hence
delays or modifications are now envisaged in spite of
U.

Statistics

indicate

reason

the airlines

necessary.
It now appears that France will

attitude

the most important single factor is the sale

trucks.

nation's social and economic growth, and that eaoh form

and

£800

Re¬

the

provision being made to increase

the

more

travel

the airlines are actively
successfully competing for their
rightful share of the overall market, it is recognized
that all forms of transportation have their place in the

appear

to be

obliged to sell
should exceed

be

between

tin

that

carried

first-class

by

estimated

,While

rate of

by the producing countries, the initial
stock being of 15,000 tons
(of which not more than 75%
be

it is

It is with considerable enthusiasm and

to be formed

should

airlines
all

miles

passenger

and

that

£720,
and was to be obliged to purchase
when the price should be less than
£640; at the other end of the scale
the Council

In

Pullman).

W. A. Patterson

many

ceiling

S. per pound).
Agreement the

Council

between

1954,

of

London Metal Exchange price should

fluctuate

their

182%.

for air coach service and below first-class rail fares

£880, respec¬
(equivalent to

ton

cents

dropped 34% from 1946
1954, the scheduled airlines

only as far back as 1940.
Actually, air fares today are only slightly above pre¬
war levels for first-class
flights, even less than prewar

it is hoped would assist in
keeping the spot price of refined tin

tively,

even

with four stops en route

which

£640

achieve

interesting to note that while that
through

of

involved.

are

and producers, have not yet ratified
the
International
Tin
Agreement

between

to

Meanwhile, the airline patron is paying only slightly

President, Patino Mines & Enterprises Consolidated, Inc.

of

expect

may

further its already deep penetra¬
tion of the total travel market. It is

more

prices

more

to

leadership.

metal,

a

experience, in equipment, in
dependability and service, the air¬
line industry is in a strong position

electric

industry, the preference clause with its highly
discriminatory application in favor of public ownership,
and the continuing efforts of the advocates of nationwide

closed

In

the

regions of the country, air conditioning
and other seasonal uses have raised summer peak loads
as much as 35 to 40%
above those of the nonair-condi,

Eut today

of new automobiles and

This

exact science.

an

more.

accelerating pace.

an

never

In 1955, with aggressive merchandising
of the best product in their
history,

in the field is air conditioning, with

industry stem pri¬
marily from increased home use of electric service. The
wiring in a very high percentage of the nation's homes
has become entirely inadequate to supply the needs of
the average home owner, a
situation which poses a
serious threat to maintenance of growth in use experi¬
enced in recent years.
Much work directed to solution
of the problem is already being done—continued expan¬
sion of these efforts is a foregone conclusion.
Two

better

and

is

being conducted toward making
bearings with longer life and higher quality.
constantly

would

broaden, the horizons of use.

others to

is

which seemed to indicate that there

The substantial progress made
by the scheduled airlines
nation in 1954 has been written into the records.

Mushrooming
improved
lighting, electric cooking and water heating joining such
stand-bys as refrigerators, freezers, and a whole host of
equipment at

newcomer

search

latter

PATTERSON

of the

com-

a

A.

President, United Air Lines

parable pattern of growth.
Probably the most revolutionary changes are destined
to take place in home use of electric, service.
Certainly
the nation's homes are embracing electrical appliances
and

and

sions and that its manufacture

we

W.

for

Few

W.

tin consumption
has varied between 130,000
140,000 tons annually during the past four years and,
owing to technological advances, such as electrolytical
deposition, etc., is not likely to increase much.

annual

service

engineering play a vital role in our
people know that a bearing may be com¬
prised of many metals—that it has many specific dimen¬

World

are

average

immediate

the*

modify

in use of electric power by all

years

tion and

seriously

Research

business.

and

and customers of the

W. A. Parish

could

everywhere with

existing situation.

ership to arrive at solutions which
protect the interests of investors in

East

almost

their bearing needs.

national

smelting capacity in the world.

new

has

tomers

Thursday, January 27, 1955

...

EDMUND

bearing field naturally

economy of

the nation and

particularly the automobile, truck, farm implement and
other industries requiring engines. For many years our
business has been
because in
economy
an

a

growth business

the mechanization of

engines

have

played

or

bearings of

one

a

nevertheless
indicate

(engineers
are

service

business

here

all

on newer

available

healthy.

a

•

year;

and

scientists

at

constantly seeking new
products and processes,

both for aircraft

dustrial

kind

use.

developed

throughout the world.

-

de¬

for aircraft and aircraft
components in 1955, and
believe that Solar will have its share in
this market.
While the aircraft
industry is subject to inevitable dis¬
locations as older aircraft go out of

The

and for

general in¬

Some of these products

since

the

end

of

World

War

our

continuing

continued

mand

Solar

business, the service end is
a major factor.
Not only is there an
original equipment demand depend¬
ing on the general economic condi¬
tions of the times, but also there is
and

Solar Aircraft Co.

change in the

and improved

another.
In

great

no

ahead.

are more cars,

use

PRICE

we

statistics

cleaners, refrigerators and other

devices that

anticipate

models,

trucks,
airplanes, and other vehicles using
engines than ever before, and most
households are equipped with vac¬
uum

We

T.

General Manager,

production and work starts

our

such

important part.

Today there

President &

Corporation

Guy Peppiatt

Our in¬

dustry is particularly proud of its ability to provide cus¬

II—notably small gas turbines,
industrial expansion joints, aircraft
control
devices,
and
coatings
for
metals—are on the verge of a period
of substantial growth, and we antici¬
pate sizable production in the year
ahead.
Solar

Edmund

is

fortunate

in

that

the

company

was

T.

Price

one

of

Number 5398

Volume 181

...

The Commercial and Financial Chronicle

the first to

tions

for

provement at the mill level.

develop large volume production techniques
jet engine "hot parts." As a result we have estab¬
lished a reputation with leading airframe and engine
companies as a dependable source of quality components.
This confidence in

most valuable

items in

one

of our

concluded, and

engineering

hope to introduce these
Some of them will fill long-felt needs in

1955.

aircraft and

we

other industries.

Another

important event in 1955 will be the announce¬
licensing agreements with foreign com¬
panies which are now being negotiated by our European
branch, with headquarters in London.
In recent years Solar has expanded its factory space
in San Diego and Des Moines, and large numbers of
new machines have been obtained. The company is well
equipped, therefore, to handle important new orders
rapidly and efficiently.
In the year ahead it appears that the great bulk of
Solar's output will continue to be products for the air¬
craft

industry, since our national policy indicates that
will be no lessening of our defense preparations.
arms
of our military services are growing in

air

The

relative importance, and we expect Solar to participate
in the new orders that are issued as it has in the past.

G

field

Our

is

primarily
various

manufacture

plating,

we

REEME

the
types

Electroplating Industry.
of equipment used for

develop processes and we provide the metals
used in the various processes. We feel

chemicals

and

restrictions

goods.

quite

confident

should

industry

the outlook
Business in our
good. Manufac¬

about

for the coming year.

be

not

are

their harm

the already

1955 could show steady im¬
be

forthcoming
tariffs

are

serious

one

viciously burning; fire

All

been

in

■

all,

better than

gasoline

believe

I

1954.

The

imports from Japan alone is main¬
pace of goods landed in September,
October and November, 1954, we can expect more than
one-half a billion square yards coming from this country
into the United States during 1955. This combined with
imports now to be expected from other countries, could
seriously cripple the American Textile Industry.

the

outlook

new

year ago,

operations

In

months, the demand for
products has shown a gradual
improvement and present indica¬

tions

year.

The

so
a

sacrificing

portion of

a

domestic

our

85%

in

reached
of
A.

H.

to

the Roemer Works

Roemer, Jr.

employment
this

at

8,917

time

employees

corporation,

for

the

of the facilities throughout the
corporation
expanded or modernized during the past year.
No major changes to products or
production facilities
are planned for the
present year, although the program
were

unlimited doorway.

that has

been

in

force

for

the past few years

yards and still not hazard the American Textile Industry.
I sincerely hope that our representatives at the forth¬
coming Geneva Conference will take this matter under

President, Southern Pacific Company

the

metal

finishing field is the
industry. This industry

heavily to the general
prosperity of the country. We are
starting the new year with exceed¬
ingly heavy automobile production
and

various

the

automobile

A solution to this

ARTHUR REIS,

The

important factor in
the
a fiercely competitive
business
and the
manufacturer realizes he
must ; be
highly efficient. There appears to be a general expecta¬
appliance industry is also
metal finishing field. It is

in

the

an

appliance

10%.

field

will

be

■

low
the

what

within

the

at

rise

and

consumers

are

quite confident that their incomes will continue
good level.

feel
a

All of this adds

the

to good business in our field for

up

1955. We recognize that it will be a year of
keen competition but we expect a year of good business
in which careful planning and hard work will have
year

their rewards.

JOHN
Chairman

of

the

M. REEVES

Board,

November

should
on

a

Reeves Brothers, Inc.

three

or

four

industry took

months ago.

for

likewise

do

We

'

was

exceedingly difficult while try¬

ing

to

maintain normal production
profit. These invenwere
well liquidated by the

reasonable
of

1954

business

began
provement.
Price

and

to

reversed.
In

brand

-

field

our

the

over

merchandise

become

to

on

from

show

that

held

of the last several years,
its own.
The public has

reliability in pricing

and in

With consumers generally trading up, it is
likely that brands will be able to make further prog¬
ress in 1955.
The one threat to this progress, however,
is discount houses. It will be necessary for brands to
quality.

maintain vigorously the one-price system or they will
rightfully lose out with their traditional retail outlets
—and if they lose out there, they will also be dropped

im¬

a

have

taken

place

President,

number of fabrics

RIGGIN, Sr.

Mueller Brass

basis, 1954 was the most prosperous
in our country's history. The failure
of even a minor depression to appear, following many
dire prophecies of such a recession, proves conclusively
On

overall

an

peacetime

that

year

business

our

country is

inclined
little

been

so

pronounced

the most cautious

to

this

a very sound basis.
months the change for

better. has
even

in

on

recent

In

the

structure

feel

danger

of

that
any

there

are now

is

business

very

col¬

cloths of the lower and
John

M. Reeves

Co.

lapse in the coming year.

optimism will domi¬
1955, and that the pessimists
are fading away.
I believe business
activity will be greater in 1955 than

structions in

petitive field

coarser

con¬

the

more highly com¬
that show very little

Many mills have sold their production for the
months. The apparel and retail indus¬
tries have an optimistic outlook for spring and summer
business. The heavy selling of fall and winter apparel
profit;

next three to four

just past should put cutters and retailers
open-to-buy position for this coming fall.




in a strong
The indica¬

163

by
new

continually making studies

view

to

developing methods

equipment that will imnrovp

Donald

J.

Russell

better service.

Consiaeraoie etiort in research and

ad¬

planning will continue during 1955.
Avenues for further improvements in operation in¬
clude expanding the use of diesel locomotives; improving
of terminal facilities, including construction 'of gravity
classification
yards, the huge push-button switching

vance

yard now under construction at Houston being an

ex¬

ample; coordinating and expanding train and truck haul,
,

including the trarler-flatcar system; stepping up tr,ain
performance between terminals with additional Cen¬
tralized Traffic Control installations and roadbed iiA4

continuing the program to reduce freijght
transit, and the concentrated training and
educating of personnel.
During 1954 our trailer-flatcar, "piggy-back," service
was extended to handle traffic moving between the San
damage in

Francisco Bay

area

and joints in Nevada, Utah, Idaho,

Wyoming and eastern Oregon, and also between Hous¬
ton and San Antonio and points in the lower Rio Grande
Toward the end of the year, Southern Pacific
moving about 155 loaded vans on an average day.
By the end' of January, the service will be further
extended to include movement between points in the

Valley.
was

gon

and Washington in connection with Union Pacific,

Northern Pacific and Great Northern.
Our

and have

brought such items from a
loss basis to the place where they
show
a
fairly satisfactory profit.
There are still, however, certain

delivery
are

uni+s to bpln han¬

growing traffic volume.

are
a

for

1955

San Francisco-Los Angeles territory and points in Ore¬

FRED L.

date

some

May

provements;

course

has

accustomed

ordered

of

efficiency of operations and provide

men's

fifty-five may well be the year wherein this trend is

that

advances

several times

and

it should

the

A smaller percentage .of the consumer
dollar has been going toward apparel purchasing, than
in the prewar and immediate postwar years.
Nineteen

This has come about after

1

tbries

with

fabrics com¬

turn for the better

a

production during and immediately following the. Korean
episode. The resulting large inven¬
tories had to be liquidated and this

middle

dle the

Spring plans

and
in

end

diesel locomotive

variety of new pack¬

industries,

many

now

nearly two years of poor business due largely to oven-

at

the

a

by discount houses.
The cotton textile

Already

aging should give this field a new
appeal to the consumer. High styl¬
ing has created additional volume
Arthur Reis, Jr.

in the past five

property

vestments will continue.

industry.
new

and other trans¬

cars

Expectation is that heavy in¬

years.

and

exert

of

than $400 million

more

locomotives,

portation

to

furnishings field.

buyers of the latest types and styles of articles to pro¬
vide for all types of needs. Consumers generally, seem
to

business

bining with

have

hoarding their income. They are ready and willing

not

contrast

a

Excellent

New colors and

the latest and most productive ^equipment and processes

on

and

favorable influence
for the

in

is

determined ef¬
to keep buying
decidedly
conservative

December

good portion of our business comes from what we
"job shops," shops which do no manufacturing, but
are set up to do metal finishing for manufacturers who
do not have their own facilities for that purpose. The

in

in progress

bounds.

A

is

higher

was

activity has

day
lines.

a

Empire, Southern Pacific

has invested

prevailing
a
year
inventories were some¬

Then

fort

call

income

This

track industry

spur

this Golden

conditions

ago.

Building activity shows every sign of continuing
throughout the year at a high level. This means not
only demand for such plated articles as plumbing fix¬
tures, building hardware, etc., as are built into the
structure, but also a demand for many types of appli¬
ances to outfit the new units of living quarters.

Consumer

levels.

new

for the past 25 years along our
To keep pace with the growth

improve in the men's furnish¬
Our industry should share
in the expected improvement that appears to be facing
the general economy.
Retail inventories are reported
to be balanced and at comfortably

up

in order to meet their competition.

one

1954 levels.

over

there will be continued industrial

resulted

t'

ings field

be expected

can

RUSSELL

constant growth in population and. economic
in an average net
gain of

Jr.

In 1955 business should

,

folks operating these shops realize that they must

It

J.

development during the coming year throughout South¬
ern Pacific's
territory in the West and Southwest where

President, Robert Reis & Co.
•

are
looking forward to
production totals for the year ex¬
ceeded only twice in the history of
the industry.

D.

the most careful advisement.

manu¬

facturers

sales

of mod>~

ernizing existing facilities will be continued.

contributes

that

entire

Several

market

probleni may be found by the setting
up of maximum quotas.
A quota of imports from all
foreign countries could probably be 350,000,000 square

automotive

around

total

.

in

tion

a

and an
annual pay¬
amounting
to
approximately
$36,500,000. The low point in employment was during
the month of August.

generally, are conscious of
the need for the latest, best and most
efficient equipment and methods.
One of the most important factors
turers,

C. H. Reeme

also

was

with

roll

certain foreign nations will prosper by finding
market here for a portion of their exports. But this
an

of

Farrell

year

that

cannot be

of Sharon's
brought the

of capacity—the
highest point of production reached
in 1954.
The highest point for
the

How, then, can we possibly compete with
open market when their labor costs are one-

question of their being firmly behind the principles
Reciprocal Trade Agreements Act up to the point
to their industry.
They recognize the
for

lighting
furnace

in

serious harm

need

blast

steel division

of the
of

recent

second

situation

tenth American labor costs, with labor representing half
the cost of producing cloth?

ho

operating rate; of
will be at a * higher
beginning of the new

company
level for the

ten years.
an

that the

are

the

coming with trepidation since 1945. We have seen Jap¬
anese spindleage increase from IV2
million to 8 million,
them in

recent

steel

market.

in

ROEMER, Jr.

when Sharon was in the process of curtailing
due to a
decrease
in steel requirements.

manufacturing methods are efficient. And their
stylists are alert to the current wants of the American,
this

good or

as

the Sharon Steel Corporation for
considerably brighter than that of a

Their

watched

be

for

is

year

Furthermore, Japanese goods today are of a far higher
in the past. Their machinery is modern.

have

will

'

quality than

owners

1955

President, Sharon Steel Corporation

same

mill

that

H. A.

on

amount of

American

having with prices will also ba

\

result of existing

as a

have

threat,

levels.

the

we

adjusted.

upset, however, if
on imported cotton

be likened to throwing

can

trouble

.

well

may

Further lowered

tariff
If

year

Progressive American mill men are well aware of the
importance of multilateral international trade. There is

The Udylite Corporation

President,

We

H

improvement

tained at the

ment of certain

there

This

but

still other products, development and

On

work is about

the

Solar will continue to be

assets.

then, that the

are

47

(507)

I believe that

nate

in

I think living stand¬
higher, incomes will
greater, business will be more
successful and profits will be larger.
With respect to our own business,
F
T
RJ__|n
1 believe the demand for our goods
will be greater than in 1954. Inventory has been welladjusted and some time during the year I think the
1954,

ards

be

and

will

be

Accounting Department plans to expand the uses
and electronic equipment to streamline

mechanical

of

further

our

paperwork methods.

in operation
"Hamburger Grill"
cars to extend this popular service to most trains.
Ten
new double-deck cars will be placed in the San Fran¬
cisco Peninsula commutation service.
Following receipt
In 1955

we

will place six new dome chrs

and will convert 25 dining cars into

additional

of

our

A

new

locomotives early in January, all
are now hauled by diesels.

of

streamlined trains

major consideration for 1955 is how to obtain bet¬

public understanding of railroad problems and ac¬
complishments, and public support for fair treatment of
the railroad industry, such as in the case of continued
ter

diverting* of mail and military traffic to the railroads'
competitors, since such actions would tend to relegate
the railroads more and more to the status of standby

times of national emergency the
most of the load.
Public understanding should also be sought for the
railroads' need of greater freedom in adjusting freight
rates, either upward to meet increased operating costs
or downward to meet competition.
carriers, although in

railroads will be expected to carry

Continued

on

page

48

i

48

The Commercial and Financial Chronicle...

(508)

Continued from page

ized quarrying and
and when

F. ROOS

CHARLES
v"-

Inc.

President, The. Econometric Institute,

consideration

in

any

based

are

large

so

portion of

a

must be given serious
sound forecast of business.
Our
the assumption that this sending
that

Product

National

forecasts

represents

spending

Military
Gross

on

it

$35 billion and
$40 billion for the foresc~<tole future.
Stalin, UUw- evgfy other dictator,

will

between

range

f.t-eded

of

which owed

of the

purge

rise

this

of

most

The war itself elevated the
army in the respect of the Russian
people. Then in 1953 Stalin died.
Very shortly thereafter Beria made

Charles F. Roos

group.

placing his

men

the motive

was

the

of

mistake

in every strategic place in Russia. What
is immaterial. The fact is that this move

his associates. The army arrested him and
demanded his trial. He was found guilty of
various capital crimes and executed a little over a year
ago.
Since that time, at least three of his Lieutenants
have been tried and executed and the Russian Army has

frightened
the

army

has been

Russian Government

releasing political

by the Stalin regime. Moreover, there
indicating that the Russians have

prisoners taken
is

information

even

ceased

political

taking

Workers

prisoners.

for

the

Siberian mines and farms are being recruited by means
of special

And in recent months, the Russian
opportunities to buy

incentives.

Government has offered its citizens

homes

credit!

on

is in

Russia

destined

to

opened

equipped at

and

a

formance of

manufacturer

the

components,

an

item at—25°

should
have
such things

testing
per¬

as

F and even—100° F.

.

■

fast joining the circle of exact
sciences rather than relegating itself to the fabrication of
is

Manufacturing

materials for
come

a

long

a

specific purpose.

this

in

way

American industry has

progression, yet it

only

has

This significant change in the character of the
manufacturing industry will see a greater impetus in
1955 and succeeding years.
begun.

J. WILLIAM SCHULZE
The company will
Vice-President and Treasurer, Bath Iron Works Corp.
be substantially less
since long hauls from distant plants will be eliminated.
Our own company's outlook for 1955 is that we shall
A training program for our more than 500-man sales
probably do as much business as we did in 1954, if not
force that was inaugurated last year is being continued.
a little more.
This year, we are placing the emphasis on prdduct in- V
The shipbuilding industry as a whole at present is at
stailation and application.
a low ebb, but projected ship construction has improved
Our research department is busy adding to and im¬
materially. The timing of actual contract awards will
determine whether or not the year 1955 will receive
proving our line of products to enable us to take a
much benefit.
As is generally known, a time lapse,
greater share of the market.
which varies from six months to a year or more depend¬
We, at National Gypsum, believe that this nation is
entering a sustained period of unprecedented prosperity
ing upon the character of the vessels, for the prepara¬
and growth. We are ready, willing and anxious to play
tion of plans and procurement of materials and com¬
a more important part in tnis expanding America.
ponents, is necessary before physical construction can
begin.
TEVIAH SACHS
NORMAN SCHWARTZ
President, Waltliam Watch Company
because

better.

the freight costs will

influence in the Soviet Council.

greately increased its
The

Baltimore plants.

being

Midwest will be quicker and

officers, but the

saved

Hitler

of

and
is

company1 discovered near Shoals, Indiana.

our

save

Stalin attempted one

army

York

mine

and

plant which is under construction at tne site will be the
ever built.
Service to our customers in the

allegiance to the old

no

Today

much of this type of testing

so

most modern

leadership of Beria. This new
force was largely recruited from the
dead-end "kids" of the cities, a group
the

Czarist regime.

X-Ray

even

for

manufacturers must have

equipment capable of determining

Baltimore,

deposit
The
raw materials, although at an unprecedented depth, are
of high purity. National Gypsum as the pioneer in the
area has obtained the cream of the deposit.
The gypsum

the secret police under

recruited

he

have
operations.

manufacturers did not
checking welding

many

equipment

Savannah. Expansion
of our
Savannah plant to tie in with the new system has been
completed. We are well along in our expansion of the
City,

that

Therefore,

officers.

its

that

••

equipment that it requires separate departments with
highly trained personnel who can evaluate such things
as thickness of
plating and determine its effectiveness
over
the life of the product.
Similarly with electronic

A

back¬

aristocratic

the

of

because

ship loading operations yet dovised;
save the company more than

completed, will

'

$1 million a year.
Two gigantic ocean freighters ate being built for us.
They will replace three blder and smaller vessels and
will transport gypsum rock the year-round to our sea¬
card plants at Portsmouth, New Hampshire, New York

New

police force to maintain
his power.
He could not feel safe
with the Russian Army in this role
a

ground

The project is one of the most highly mechan¬

America.

47

'

1

Thursday, January 27, 1955«

Perhaps it is not absurd to

that

assume

The current outlook

for the Jeweled

Watch

President, DWG Cigar Corporation

Industry

Today, the future of the cigar manufacturing industry
looks bright. This is particularly true for those compa¬

for the year

1955 indicates that it will be another highly
competitive year. With the slightly diminishing volume of
business, a more strenuous effort is going to be made by
all nationally-known watch houses
%
.as'.-:I
to get as large a part of the available
business as possible.
The most ag¬
gressive manufacturers will, without

doubt, reap the full benefits of
efforts that they put forth.
a

evolution, if not actual revolution, which is
many of the most irritating differ¬

remove

Advertising

ences.

creased

But, if these fundamental changes are taking place,
it is important that the Russian Army's influence be
maintained.
History shows that we may contribute to

sumer

which

nies

scientific

attuned

have

and,

age

dollar

be carried

on

past

oldest

our

in

rooted

to go

this

to

modern

become the leaders

industry,

North

of

one

America—and

perhaps because of its

the

will probably be in¬
fight for the con¬

will

the

In

the

the

and

themselves

as a result, have
in the industry.

age

and deep

traditions—had been satisfied

along without change and had

often resented change. It has lagged
far behind in its acceptance of mod¬

not

business
techniques and fre¬
quently refused to meet its problems

ern

occasionally disagreeing with
Russian foreign
policies.
In these circumstances, the business outlook for 1955

only by national advertising, but also
locally through every outlet avail¬
able to the industry.
It is apparent that the industry
will have to study distribution chan¬

will

nels

this

this end by

maintaining

our

military forces and at

own

least

be primarily determined by the civilian pressures.
Assuming that the Federal Reserve Board will pursue

policies leading to expansion of the money supply, new
orders and production are apt to rise in 1955. However,
the extent of rise and the pressure on prices and profits
will differ materially in the various industries.

the

carried on, and

are

a

turer will

optimistic about 1955!

We expect

that the construction industry that enjoyed

good year in 1954 will lose none of its steam this

year.

At National Gypsum, we are confident that 1955 will be

the

greatest

history.

year

Sales

million,

a

to

new

set

35

a

new

plants

should

in

in

the company's

1954

record

at

$126

were

record.

We

expect

this year.

throughout

operate

than

the

Our

country

capacity

or

to

a

of last

of

estimate that

new

increase
L. R. Sanderson

$37

billion spent

Last
up

a

year

four-million plus record.

lowest
of

activity nationally will
billion in 1955, a 7%
from the record-breaking

$39.5

in

United

States

new

in 1954.
babies

built

born

The death rate

the

was

history. With the population
this unprecedented rate, the

the country growing at

demand for housing continues to increase.
This strong demand for new

of

credit

to

terms

send

household

and

new

dwelling

formation

families with

three

and

the

increasing number of

and four children

point to this.

The growing desire for home
ownership is another
factor that is expected to influence the
continuing heavy
demand.
Additions
be up

7%

and

over

alterations

to

existing homes

should

last year, or close to $1.2 billion.

Com¬

mercial construction is expected to
expand to a new

high

of $2.3 billion of work in 1955.
The urgent need for school construction will doubtless
send this phase of the industry to new

heights.

In order

to meet this

skyrocketing demand

is continuing to expand its facilities
pansion is planned.

pany

In Nova

our

com¬

and more

ex¬

Scotia, we are spending more than $6 million
developing the largest deposit ever discovered in North




tobacco,

and

going all out to

are

business from

the

growing

of the

is

is

consumer

assuming

position

of great importance
manufacturing establishment.
Modern and constantly improved machinery has largely
replaced hand labor and is producing a more uniform
and better product.
Young men with new ideas are
being employed and listened to. Methods used in other
industries for improving the product and increasing
efficiency, are being studied and adapted in the cigar
industry.
Market researchers, package designers, per¬
sonnel experts, and all the tools of today's business world
are
now
a
well recognized part of the leading cigar
within

the watch

publicly stated that the skills
industry itself are essential to
should be preserved.
This is of

importance to everyone.

and

without

a

the

companies.

ARTHUR J.
President, American

SCHMITT

The industry has also recognized the necessity for
creating new consumers of their product. One of the
relatively new answers to this has been the introduction

Corporation

Phenolic

Prospects for 1955 look very good for those industries

of

supporting the electronic, aircraft and military programs.
While

tremendous

such

fields

as

progress

has

been

miniaturization

of

made

electronic

corn-

and sealing out moisture
contamination, there are still
wide areas of engineering and man¬

pacting

pace

to

withstand

of

wires

increased

and

not

deteriorate

will

This

and

keep that

Today
more

laboratories for all types of testing not hereto¬
fore regarded necessary. It was only a few years ago
to set up

the

customer

of

pleasant cigar than

cigars
ever

suit his pre-determined taste.

Military requirements alone will continually

and retain the original

eye

industry into new and more far-reaching fields.
We have already seen in these early days of the jet and

improved metals and better welding
fastening techniques requiring these manufacturers

may

well be termed,

profits and

a

healthier

over-all financial picture.

drive the

and

industry revolution, at it

be reflected in improved sales and

Arthur J. Schmitt
potential in space and Weight
saving miniaturization coupled with
reliability in the electronic and aircraft fields. In the
electronics industry there will be no place for com¬

the development of

the leading banks and financial in¬

vitality is just beginning to be felt, and will surely

new

dollar

guided missile age the absolute necessity for more ac¬
curate, rugged and dependable electronic gear to func¬
tion at greater altitudes and speeds.
,
Aviation has been the great educator of industry. The
influence of aviation on industry in general has forced

-

has only occurred in recent years and the impact of this

phase of the electronic industry on
the move. There is an unbelievable

placency.

in the

all

stitutions in the country.

with ultra-efficient insulation which
will

it is known

expertly studied and largely solved with

the cooperation of

cables

heats

as

beyond

.

boldly faced,

keep

improvements of elec¬
Components.
The need for

miniaturization

"cigarillo"

successful

problems, particularly the necessity of
carrying huge tobacco inventories so that it may be
properly aged for mildness and sweetness have also been

with

to

or

been

financial

The

solved.

development

cigar

has

created.

At the same time wires and cables

further

It

expectations
today several hundred million of these are being
produced and sold annually, with demand still increas¬
ing. It is felt that many thousands of new cigar smokers,
many of them in the younger age groups, are thus being

and

need

little

and

making them more adapt¬
able to further improvement in com¬

ufacturing not completely

the

trade.

herecofore

ponents

tronic

dwellings, coupled with
longer-term mortgages, is ex¬
starts up to 1,400,000—
an increase of about
200,000 over the past year and, in
excess of the 1,396,000 record set in 1950.
We anticipate larger houses this year. The
rising rate
easier

pected

in the manufac¬

great degree also determine the accom¬

defense

solve

being studied intensively.
The scientist, both during the growth and processing of

The government has

national

other

to

equally

cigar companies

tobacco leaf to the

the American watch

in

year's.

construction

reach

the extent of distribution that will

be operating under the new tariffs, and
the results will indicate just what the effect has been
on the American watch
manufacturers and the impor¬
ters.

employed

make up for their past complacency.

phase of the

Every

industry will

near

Earnings in 1954 were approxi¬
mately $4.50
per
share compared
with $2.71 per share in 1953.
This
year's earnings should be well in
Our forecasters

ever

plishment of each producer this year.
1955 will be the first year during which

to it.

excess

eye

confidence of the retail jeweler

The

President, National Gypsum Company
We

Norman Schwartz

competitive styling will be
appeal of the products will deter¬

be attained.

SANDERSON

R.

carefully and give atten¬
big inroads made upon
jewelry business by the

the

to

which

manner

have

pressing problems in
changing world.
The past few years have seen a
profound change. Now, the leading

Increase in

acknowledged.
more

very

retail

realistic

industries
their

Policies will have to be set and openly

discount houses.

mine

L.

tion

Teviali Sachs

in the

receives

before.

It is

a

packag'ed

aroma

finer

and!

It is designed to

to catch his

and freshness.

It

is

distributed to be available to him wherever he may be.
•

It

is

primarily

pleasure at

a

made

Never in the long

agement
The

and

Cigar

to

provide

price which he

the

can

history of

two

him

afford.

our

so

-

relaxing
■

.

industry have

major industry

Manufacturers' Association

Institute—been

with

man¬

organizations—
and

The

Cigar

alert to and prepared for the possi¬

bilities which they feel await them in 1955 and thereafter.

49

(509)

Commercial and Financial Chronicle

Number 5398... The

Volume 181

Richmond, Va.

President, The Central National Bank of

business activity in

by new acquisitions.

favorable

augur

Two important factors
which have declined $5

1955.

inventories

business

to

of opinion appears

direction

The

construction
will equal and probably exceed the volume experienced
in 1954; spokesmen for the automobile industry estimate
that the production of new cars in the new year will
exceed that of 1954 and that they will be readily sold.
industry is that the volume of

Construction and automobile production are

two major

heavy industry.
continuation of basic activity estimated at cur¬

a

high, and taking into considera¬
tion that there will probably be some replacement of
increase underlying the demand factor, I feel the out¬
look for business during 1955 cannot but be good.

rent

which

levels,

are

the

Cotton

million tires during

32.8

some

against

year

an

to

delivered

million

estimated 31.7
important

this

market in the

past year.
outlook is also good

The

will

1955

for the

market, although
be a record-breaking

tire

replacement
not

year.

Peak

replacement years were

Chairman

The

Columbian

a

Life

Insurance

Company

good year for our busi¬

very

Although the net income, after payment of the con¬
fiscatory Federal taxes on people with large gross in¬

than any time
II, yet average
people receive greatly increased net
incomes, and they are the ones who

comes,

is

before

World

buy

much

less

in

tires

ocueriiii^

greatest

years

year—about a half-million
the 1950 mark, but almost 3% more than

greater portion of this increase can be expected
to come from the passenger tire market, where replace¬

reach approximately 48.3

ment sales should

million units,

sued. Policyholder payments average

measured against some

only 3.3%

Life Insurance is the best protection
for their families and for old age, so

in

income for Life

CARROL

Insurance; only about $115 annually.
They realize more and more that

with

prosperity generally predicted
than
for Life Insurance production.

ever

Just

leaders

in

in

industry

the

stated'their

have

the first

place, studies indicate

there will be great prosperity
—the Presidents of General
United

States

David

Forecaster

that

Francis P. Sears

in 1955
Motors,

Lawrence;

General

Electric,

Secretary Weeks;
Chairman Martin of the

Federal Reserve Board.

highway construction, oil,

public utility and steel companies all should have won¬
business in
1955 and Life Insurance companies

derful

should share it.
The

threat

of

hangs

war

the world like

over

dark

a

produced

and should give more satisfactory service.
can look forward to a stronger export

lour years ago

market in

ened their economies,

people feel that stocks are selling too high and

Some

quote the high market prices of the Dow-Jones indus¬
but that list is not really representative of all

trial list,

stocks and is too

heavily weighted by six or seven stocks

which have doubled in

price;

a

list of fine stocks selling

below 1929 figures could easily be drafted, includ¬

way

Tele¬
phone and Telegraph Company which is selling at about
175 compared with over 315 in 1929; followed by Ameri¬
can
Tobacco, Chrysler, International Harvester. Loew's,

believe

we

have strength¬
tires and tubes
as their economic activity moves to higher levels.
Tire and tube prices will move upward during the
current year.
This can be expected because of higher
labor and material costs—which took effect in the final
quarter of 1954—and also because of a violent price war
which raged throughout most of the past year and drove
prices down to unprofitable levels.
The
overall
picture for the rubber manufacturing
industry in 1955 is promising. It should be a year of
Many foreign countries
and will need more

1955.

considerable

improvement over

Beverage, cigarette, coal, department store,

drug, pack¬

below previous prices, and one must

all selling way

are

think cf those favorite railroad common stocks

Studies

Oklahoma City,

of years

individual

modity prices and the cost
will

and

St.

Paul,

but utterly wiped

out by the Interstate

that

the vindic¬

campaign against them by a former President,

while

thousands of investors who had been allowed to borrow

huge^sums on minute margins lost heavily.
to

think

of such

York

lions

of

dollars

forced to

splendid great properties
the Pennsylvania

and

Central

earn

of

value

and

of

It is pitiful
as

the New

Railroad, with bil¬

gross

earnings being

practically nothing for their stockholders.

Really, most of our financial troubles have been

due to

rates; pleasing other countries by

low

allowing too low

tariffs.
But

we

now

minded

have

an

Administration

which

feel that the prices of stocks

in

are

believes

effort and fair treatment

individual

day

honorable,

honest,

in

and

fair-

encouraging

of business, and I

apparently selling high to¬

most cases justified

by their earnings and

prospects.

1953

in

and

prospects
prices.
I

1954,

for

further growth

a

big market rise

earnings and splendid

seem

to justify

present

';
'
/;'■'*
point of comparing these true growth
.

.

have made

stocks with

but the good

had

a

rolling a snowball in a field of snow, re¬




same

as

of living

ing
for

business

of the

in personal in¬
want and need,
and the level of personal savings, estimated at $19 bil¬
lion, will be slightly lower than in '53 and '54.
that

Southwest

our

heartened by what

situation

in

this

all desire so

dependent

the farming
We are not

by

as

agriculture

upon

we

were

a

in

few years ago,

ended

editor

of

the

Farmer-Stockman,

to one-half the

stock estimate

price

manipulation

product.

"The year

W.

A.

Sheaffer,

II

campaign against the
based on a desire to have for our
products the kind of distribution that will be most
beneficial for us and for our customers.
Sheaffer Pen's 1954 sales record indicates nationalOur

houses is

brand
their

producers can prevent illegal price
merchandise without sales losses. In

cutting o>
a year Oi

readjustment for most industries, sales mounted stead¬
ily, being about 14% greater than in the previous cal¬
endar year.

Sheaffer's started legal action
fair trade states, cut off
suspected of price cutting, and ob¬
agreements with 194 retailers other¬

During the past year
against 304
501

retail

tained

price cutters in

outlets

fair trade

faced

with fair trade

injunctions.

aggressive pro¬
increase in the
population during the next five years should,
the writing equipment industry's annual re-

Improvements in writing tools, more
motion, gains in literacy and a 20%
school-age

receiving from one-third/, "help push
normal rainfall, and the Jan. 1,1954, live-11
in Oklahoma showed an 8% increase in

with most of Oklahoma

responsibility to
that requires

a

combat

to

his

wise

drought in 1953 was a cruel one, but the one in"
worse.
Last year's drought is said to be the
one here
in over 20 years. According to Ferdie

was

Deering,

national-brand man¬

depend.

1953.

worst

has

discount
Frank A. Sewell

of industry with
comparative growing

The

Sheaffer Pen Co.

writing

Price cutters can't
perform for the public the necessary
distributing and servicing on which
national-brand manufacturers must

ing

1954

SHEAFFER, II

equipment industry enters 1955 with
prospects for a record sales year, tougher competition
and a leveling off of ballpoint sales.
Among the factors that will influence the industry's
performance will be pen manufac¬
turers' policies on illegal retail price
cutting. Maintenance of price struc¬
tures,
distribution
networks and
brand reputations requires stronger

him

due to the com¬
payrolls into this area and the
importance of petroleum and gas
production, processing, and transportation. Agriculture,
however, is still the source of our greatest income, and
business is generally affected by the condition of the
farmer. It is difficult for many to understand how busi¬
ness in our state has been so active in
1954 in spite of
two years of drought.
Nineteen fifty-four was an un¬
usually good year for business in our state, second only
Oklahoma

much.

dealers and consumers

year

area.

events

turn of

the
we

We believe a

and the
greatly concerned

affected

and

with

are

we

however,
of living
country's

indicate,
standard
for

to me,
will have a year of boom. It does
that we will continue to* push our
steadily upward, and build soundly
future economic prosperity.
I am
I think lies before us, and I believe
should carry us toward the stability

optimistic viewpoint does not mean

_This overall

however,

ufacturer

spot in the
is agricul¬

major
new

and
not

manipulation.

Oklahoma

in

We

A 5% rise is

quite that much. Most of this increase
come will be spent for the things people

on

weakest

The

ture.

times.

by manufacturers against re¬
discounting. Our company is a
leader
in
the
fight against price

community.

forecast

prosperous

total wage and salary income. Farm
income will also rise, though probably

indicated in

tail

and

plant

the

million, leav¬

unemployment at about 4% of
total labor force, or about normal

action

1954, and

equipment expendi¬
only slightly. No
new
taxes are
anticipated in 1955.
Finally, 1955 looks like a year of
world peace, a situation answering
the
prayer
of the entire business

to

Many life insurance stocks have

be about the

tures will be down

so

political behavior—pleasing the public by requiring too

income, dispos¬

It looks as if com¬

and construction.

Haven; Northwestern;

ity holding companies almost wiped out by

wages, gross national
income, retail sales,

employment and
able

selling above 200—New

Think of the great public util¬

1955 suggests a

of great overall business activity, exceeding 1954.
Prospects point to increases in industrial production,

year

all

tive

Okla.

for the nation in

persons

by approximately one
Shanks

M.

Carrol

President, W. A.

SEWELL

the number
will be upped

indicate that

employed

WALTER A.

National Bank and Trust Co.,

President, The Liberty

at least not very much, but I
anticipate an increase in business

of

The

ago,

Commerce Commission.

A.

FRANK

The business outlook

ing, railroad, sugar, textile, and watch company stocks

govern¬

spending.

1954.

list selling way

below earlier figures.

think

I

spending will not increase over

1954,

ing the most popular stock in America—American

and National Distillers of the Dow-Jones

before.

ever

do

will be on the highways,

attacks from the dreadful atomic and hydrogen weapons;

posals allowing rearmament of Germany and settling the
Saar controversy are very helpful.

by

ment

year can

cloud, but I cannot believe that any great Communistic
nation will risk its own destruction through retaliatory

certainly the free nations will not start wars. The recent
French actions supporting Premier Mendes-France's pro¬

spending

level by aboui
$14 billion.
I would not be sur¬
prised to see a new high of $295
billion
in personal
income which,
after taxes, will give the consumer
about $261
billion to spend, more

replacing

transporting goods
expanding economy.
Here again, however, the full potential replacement
market has been reduced through technological improve¬
ments. The truck tires our industry is producing today
are a much better product than similar tires of three or
I

This figure ex¬

1953

$5 billion and the 1954

the growing demand of our

fill

record

the

ceeds

than

improved

More trucks

to

The automobile, house and

They last longer and need

that 1955 may produce

totaling $370 billion.

also be expected in the truck
and bus tire replacement market.
I expect the rubber
industry to sell at least 8 million units in this field com¬
pared to an estimated 7,780,000 in 1954.
This increase can be predicted by the improved eco¬
nomic situation which exists as we begin the new year.
An

also, Commerce

Steel;

national spending

less often.

United

belief

Today's tires are the best ever

the industry.

by

recently, several of the great

States

just past.

America

am

1955.
The reason is:

for 1955, I expect a better year

SHANKS

M.

looking forward to a year of good business activity.
There are several factors which prompt my belief.
In
I

potential

the

Although

47 million in the year

with
its

Oklahoma would experience one of
in business in 1955.

replacement passenger tire
market is made up of almost 34 million cars two years
old or older now in use in this country, not all of this
tremendous potential can be converted into actual sales

of their

the

His cost of pro¬

1955.

President, The Prudential Insurance Co. of

The

is¬

rainfall

ample

current

the

near

was

healthy in Oklahoma, and if we could be blessed
C.

sell

sold in 1954.

were

record, and so

on

ably will be no better than stable. Good business man¬
agement is a must for our farmers.
Outside of the agricultural field, almost everything is

56.3 million replace¬

approximately
ment

will

industry

the

units short of

War

of the Life Insurance

most

believe

state.

production last year were

corn

be high, his acreage of basic crops
will be down because of allotment, and prices very prob¬

The next best year
was
1950, when about 56.8 million
replacement tires were sold.
I

and

duction will probably

shortage years.

Insurance.

of Life

ness

National

1955 will be

I believe

Board,

the

estimate a year earlier,

of the Oklahoma farmer than in

1946

1947, when the industry was
satisfying the heavy demand for tires
which had been built up by the war-

SEARS

P.

of

same

the production of grain
sorgums, which
is an important crop in central and
western Oklahoma.
Wheat was about the same as the
year before, but was produced on fewer acres.
The agricultural prospect for 1955 in Oklahoma is not
a bright one because of the continuation
of the drought
over most of the state.
We badly need soaking rains to
salvage much of the current wheat crop and to provide
subsoil moisture for crops yet to be planted.
Cotton
acreage has been reduced from over 1,000,000 acres to
873,000 acres in 1955, and wheat acreage was reduced
12%. There probably never has been a time when good
farm management was more important to the prospects
lowest

and

FRANCIS

the

over

they were worth only half as much." During 1954
the drought
sent thousands of cows and heifers to
slaughter with the result that there is a lower cattle

but

population outlook for the future in our

pared to 1954 results, improved sales are indicated for
both the replacement and original equipment markets.
Increased production of new cars and trucks in 1955
means
the automotive industry will
need

numbers

cattle

Rubber Company

industry in 1955 are good. Com¬

Prospects for the tire

factors in steel consumption, our major
With

Seiberling

President,

billion

SEIBERLING

P.

J.

bolster

during the past year as well as the normal population
this estimate.
The forecast of the government and the
construction

and continually increasing size

taining the original bulk

SCHWARZSCHILD, Jr.

H.

W.

Continued

on

page

50

The Commercial and Financial Chronicle...

sight.

Continued from page 49
$250,000,000 in 1954 to $350,-

enthusiasm for the Snorkel fountain pen
well demonstrated the public's demand for better

Consumer

has

The Snorkel's success
sales rise in 1954.

writing instruments.

heavily

to

our

the

for

sales

Sheaffer

contributed

compared with $19,552,000 for the like
period in 1953. Sales for the fiscal year ending Feb. 28
1955
are expected to run around $30,000,000, compared
with' last year's $25,161,532 previous all-time-high.
Ballpoint sales should begin to level off in 1955, after
the dramatic increases of the past three years.
Al¬
though the ballpoint is here to stay, it probably won't
make further inroads on fountain pen sales.
Our ex¬
perience shows it has not affected the sale of quality
fountain pens which provide the individualized hand¬
writing not possible with ballpoints.
And ballpoints
don't stimulate the pride of ownership associated with
quality fountain pens.
Consumers are becoming

the

by

annoyed

for

need

buying refills for small-capacity ballpoints and are be¬

ginning to demand better quality and longer writability.
Accordingly, our company will put stronger promotion
behind its long-writing ballpoints in 1955.
The export market for quality instruments is expand¬
rapidly

creased

8%

pens are vastly inferior
Madison's foreign
sales in¬

foreign

most

as

American

to

Ft.

makes.

in calendar

Similar increases, are ex¬

1954.

pected in the coming year. Our foreign markets are
also supplied by manufacturing subsidiaries in Australia
and Canada.

duction
of

The Canadian subsidiary increased its pro¬

capacity considerably in 1954 by completion
$1,500,000 factory at Goderich, Ontario.

new

a

LANSING
President,
To

get

The

headline,

a

food retailers and
the

one

Union

should

consumers

is true,

reverse

SHIELD

P.

Grand

Company

that the outlook for

say

in 1955 is

a

bleak

Since

one.

to a
brief summary of the basic conditions in the food indus¬

try and

their cumulative

the retail operation

in

effect

on

American

primary

population

million

people

prospect

by

increase

With

1975.

es¬

56

of

to

feed

but

not only will there be more

means

they will have to be fed for

more

years.
Because of

technological advances, disposable personal
income, while slightly lower in 1954, will move higher
over

the years.

hour

means

Steadily increasing production

Nineteen fifty-five will mark the silver anniversary

the super market.

In

a

quarter of

a

of

the giant of the food industry.
Scientific methods
applied to distribution, material handling, packaging and

come

^

merchandising have transformed the first

♦*into the miracle markets of today.
morrow

will

be

the

make

the

markets

barrel

of

The

market of

super

markets

super

miracle of

tomorrow.

to¬

It will

yesterday.

of

today

not

one

as

the cracker

and

on

their old-time program of inflation—"Tax,
Elect" with more taxes, more Bureaucrats,
more
spending and more Government controls.
They
think tney can manufacture prosperity faster by these
unsound political means, than by the old time-honored
formula of individual thrift, hard work and old-fashioned
honesty.
repeat

Spend

To

and

prevent such

catastrophe,

a

we

businessmen have

big job cut out for us in 1955—but, with the help of

"Captain Ike" and his competent crew, I have another

L.

SHUTTLEWORTH, II

ahead is, in

year

industry during

sales

in

increase

my

a

seems

in view of the
level of consumers'
disposable incomes, the continuing
home building boom, the ever in¬
creasing population, and the all-time
expectancy

low

high

an

old-time

banker

who

has

levels

of

unemployment.

several

current

developments which

should

enable

the

descriptions—from

1954.

small¬

recover

other

some

of

the

knowledge of
they are saying about their
prospects and programs for the im¬

chases with

more

enthusiasm than heretofore.

Thirdly,

aggressive in-the-home selling programs will be used by
retailers.

just introduced

And finally,

the

new

tufted and woven
to em¬

by manufacturers appear

confidence
among

is

the

wider

favorable.
man-made

wide

outlook for the industry also appears more
the increasing use and acceptance of
fibers will make the industry less susceptible
First,

the

and

unpredictable swings in the cost of carpet

Secondly,

industry seems less susceptible to some of the price

forces,

These factors, to¬

enable the industry to make some re¬
from the extremely poor profit showing for 1954.
should

HOWARD

R.

almost

casts

of

Perry Shorts

unanimous in

However,
of

any

such

there

is

upsurge,

we

all

good

or

bad

efforts.

in

1955

defense-spending
inventions

new

will

depend

largely

will
-

upon

war

programs,

no

new




the

reduction

in

be

placed in effect throughout

the year, notably a substantial addi¬
tion to our fleet of Diesel locomo¬

tives, should enable this company to
handle

business-producing

or

discoveries, no reduced material costs, no
reduction in taxes, and no Santa Claus of
any kind is in

of

effect to meet compe¬

we do not expect our total
earnings will be more than 2% over
1954.
Operating
economies which

and "pitch"—for whether business will be
No

Because

tition,

these

their
is expected to help them this
year, no vast backlog of unfilled orders, no settled Jabor
conditions, no heavily depleted inventories, no large

own

1955 which leads us to believe
will be about 5% more than in

1954.

forecasts may turn "sour" unless the businessmen them¬
selves get in

operated

are

H.

E.

Simpson

the

Northwest.

Pacific

A

Super

traffic

public of this
the

In

crease

service.

new

systemwide
miles

passenger

in

Continental

picture,

1954

when

1953

over

167,477,107,

were

they

amounted

Air

Lines'

12.5%

a

in¬

to

148,919,370.
417,147 passengers in 1954, a 12.8%
increase over 1953 when it carried 369,794 passengers.
Total cargo ton miles
(first 11 months, 1954), was
1,052,157, a 6.5% increase over the like period of 1953
when it was 933,663.
Pounds of air mail carried (first 11 months), 1954 were
2,727,731, a 13.3% increase over the like period of 1953

The

airline

when

the

carried

airline

carried 2,407,768 pounds.
Ton miles
during the 1954 period amounted to 573,499, a 22% increase over 1953 when the airline carried
the mail 470,277 ton miles.

I

of mail flown

integration

the

Air

route

April 1, 1955, of the roides of

on

Lines

Pioneer

and

Air

operation

into

which

some

others

Lines

will

mileage to 4,797 serving 46 cities.

where

cities

major
we are

not

scope

of

now

in¬

The

of Continen¬

Texas

and

New

authorized to serve,

Continental will gain

new

route seg¬

B.

SMALLWOOD

President, Thomas J. Lipton, Inc.
In both

tonnage and dollars, total volume of the U. S.
year reached a new high.
And based
the promising current outlook, I feel sure that a still

food
on

industry last

better record will be made in 1955.

Two main factors

seem

to underlie

the

steady increase in food sales.
First, of course, is that consumers
these days
are
relatively prosper¬
This

ous.

makes

it

possible for the

American

average

family to
things to eat.

buy

and

the

ond,

better

manufacturers, processors
in the industry are

Sec¬

distributors

and

all

working hard to do a more and
more efficient job. The sharply com¬
petitive nature of the food business
today leaves little
room
for any
easy-going philosophy.
Larger and more effective

pro¬

of research and development
constantly bringing about im¬

grams
are

proved

quality,

more

Robt. B.

Smallwood

convenience
food products generally.

and added attractiveness of

On

real progress is indicated by the end¬
toward more hard-hitting promotion appeals

the marketing side,
less

move

linked with

aggressive selling and merchandising effort
distribution.

load

more

eco¬

development that I have been

One

fast

the

is

growing U.

especially close

.

S. market for tea in recent

This healthy inmprovement, in my opinion, is a
of cooperative team-play in action.
By joining hands with the American tea trade, the
governments in India, Ceylon and Indonesia together
are more than matching our funds for an industry-wide

years.

fine example

,

promotion campaign in this country. At the start this
called for great courage by leaders of those countries,
where the standard of living is so much lower than our
they felt that the risk was worth taking, as
of helping to strengthen their respective
economies.- That the risk has, in just a few years, begun

own.
one

to

Yet

means

pay

excellent dividends

In the tea trade we

strongly feel that this demonstra¬

partnership, keyed solely to the
is what the free world needs

tion

of

of mutual expansion,

that

much more of at the present

international

-

is most encouraging to all 1

concerned.

idea

1954.

through

Continental Air Lines and Ameircan Air Lines in Sep¬

nomically, with result that it is an¬
ticipated our net income will exceed
of

Convair

tember, 1954, inaugurated a DC-6 reduced-fare Coach
flight between Houston and West Coast cities. In three
months operation with SO-paS'senger aircraft, this service
has carried 12,327 passengers 6,725,928 passenger miles,
indicating the tremendous acceptance by the traveling

to

just completed its
of prospective traffic for the
company

rates put into

guarantee

and

This

survey

1955.

no

services

in all channels of

year

their fore¬

good business in

the

and

-

*

today
themselves

than at any time in many years past.
I
also
notice
that
the
economists
are

SIMPSON

President, The Baltimore & Ohio Railroad Company

spread

businessmen

through

service is operated jointly with Braniff Airways between
Denver and St. Louis.

more

unusually good attention-getting merchandise.

^

mediate future, cause me to feel that

DC-6

Continental's

ROBERT

the con¬
sumers' spendable dollars in recent
years.
First, an industry-wide ad¬
H. L. Shuttleworth II
vertising
program
is
now
being
launched, emphasizing the functional
values of carpeting in the home.
Secondly, time-pay¬
ment purchase plans are being applied to carpet pur¬

covery

and

joint¬

48,945,286, 29% of the total passenger miles flown by

for

competitors

corporations

—

operated

ments in additional directions.

gether with the spreading of overhead over the expected
larger output, and barring unforeseen cost increasing

what

services

ly with other airlines between major
importantly to our record volume of

Continental.

industry
ground lost

merchants, contractors, sales¬
men, plant managers, etc., up to the
directing heads of some of our large

town

prin¬

traffic. These interchange services accounted
62,809,206 passenger miles, 37.5% of the total passen¬
gers miles
operated by Continental during the year.
Douglas DC-6 through flights of Continental accounted

carpet

portedly lower-cost southern plants.

and

than

made possible

for

and

sorts

10% ^better

increase
in

weight

passenger

Mexico,

My contacts with businessmen of all

or

was

ing 1954.
Through

Six

contributed

plementing the normal benefits from

dangerously low levels much of the time. And finally,
some
mills have shifted operations to newer and re¬

5%

F.

Robert

tal's

competition that kept manufacturers' profit margins at

from

This

6.5%
and

seats

purchase of Pioneer will increase the

Sup¬

to be

good-year for American business—at least

available

1953.

crease

wools, all of which come from foreign sources.

very

approximately

cipally by the purchase and opera¬
tion of new and larger aircraft dur¬

The final

joyfully skidded
through
many
prosperities and
miserably
muddled
through many depressions, I predict that 1955 is going
a

over

these favorable economic factors are

to

avail¬

36,037,029 ton miles to ship¬

lic and
pers,

Continental

The profit

As

289,104,458

able seat miles to the traveling pub¬

the West Coast and with United Air Lines between Tulsa

brace

President, Second National Bank & Trust Company,
Saginaw, Michigan

routes

jointly with American Air Lines between Houston and

lines

SHORTS

own—offered

its

the

on

—

the

Lines of Dallas with

promptly demand that the Government "take over"

and

to

Lines

Air

integrating

the businessmen

will seize the occasion to blame it all

a

of

of Pioneer Air

And he also

drops off again, the so-called "Liberals" in both parties

more

PERRY

R.

obsolete

as

Continental

for

records

before.

ever

threshold

majority, it is evident that American business has much
at stake in this new Congress.
If business falters or

to

century it has be¬

.

cities

history

1954 carried more pas¬

greater promise for the future than

single case where
Government planning ever raised the standards of living
or provided freedom for any people.
In view of the recent election, however, which re¬
established the Democrats in power by a paper-thin

per man-

steadily advancing standard of eating.

a

that

knows

continued

Lansing P. Shield

Air Lines during

freight, mail, express and parcel post on its
flights serving six Rocky Mountain and Southwestern
states than ever before in its 20-year history.
Looking to 1955, the commercial
air
transportation
industry
holds

great

wealth without hard work—law or no law.

logical

eyery 12 seconds in this country and
those born yesterday and tomorrow
mouths

responsible for this

chiefly

are

An

the

Continental

ac¬

opinion, good. Industry sales
could easily exceed 1954 results by 5% to 10%, and
profit margins should increase substantially from their
present unsatisfactory levels.

feeding all these addi¬
millions, who can be bearish
the long pull?
A baby is born

That

splendid

SIX

sengers,

confidence
of today.
They have again proved that America can
prosper in times of peace.
For the first time in years
our people
feel that there is now a trustworthy pilot
at the wheel—one who stays on the course and does not
swerve with every political wind that blows—one who
thinks more of the welfare of his country than of his
"party" or his own political career—and one who be¬
lieves that true economic progress rests on private enter¬
prise and not on Government supports. He knows that
production makes prosperity and non-production makes
depression, and that you can't increase the country's
omy,

the

of

will live longer.

make

F.

ROBERT

President, Continental Air Lines

complishments toward sound currency and sound econ¬

The outlook for business in the carpet

cities moving

tional
for

must

President, Mohawk Carpet Mills, Inc.

shopping centers.

new

its

and

Administration

Eisenhower

HERBERT

country and the creation

Another favorable factor is the

timated

com¬

It is the

consumer.

reason for our

out into the

with—but we

goods

more

make

it.

do

The

buy

will

The people will have plenty of

that our good old "Ship of State" will
"sail on" through all these threatening storms to eco¬
nomic progress and freedom and peace.

industry has had
many friends working for it
One
of these is the automobile, which has
drastically changed shopping habits
of the

to

more

which

customers—all of

to

them

make

kind of confidence

1955.

The super market

of

them

attractive,
appealing and altogether more

more

petition mighty tough.

comments will be confined

my

serviceable,

irresistible

$22 644,000

were

ing

to

money

months ending Nov. 30

nine

a

have,

already

we

do

greater demand for the prod¬

products, but to create
more

hard
more

to

and

ucts

from

volume

sales

tail

some

manufacture

businessmen will have
hard working, not to

Our

thinking

'

\

''

^

Thursday, January 27, 1955

(510)

50

time.

(511)
Number 5398

Volume 181

...

President, American

nationally.

Airlines, Inc.

reasonably uniformity
about confidence in basic business
conditions during 1955.
We believe
that confidence is justified.

population owning homes and belonging to churches
continues about the same. It seems to me that both are
significant and provide omens

has been one of continued progress at
Keystone.
During 1954 we reached our all-time em¬
ployment high. A wage increase affected all Keystone
employees and brought our average hourly wages to a
new
high of $2,722 per hour, ap¬
proximately 360 per hour higher p"
The past year

for good in 1955.

We

are

planning a substantial in¬
our
air
transportation
for 1955, both in the air

in

services

and in the air cargo field,
we expect good load factors for
service to be operated.

passenger
and
the

Capital expenditures for buildings
and facilities for the year of 1955

of 1954, to prepare

will exceed those

expected

for the future.

R. Smith

c.

increased business

the

for

FORREST M.

SMITH

ought to be moderately better
this year than in 1954 but we do not expect it to equal
1953 in any of the fields in which our company operates.
We expect our aircraft component business to be a little
off, our machine tool business to be
fairly
steady,
our
milk handling
equipment business to be a little bet¬
ter, our carbon and stainless steel
tank business to be quite a bit better
than in 1954, and in general expect
to rack up a good sales record and
a
better earnings record than last
year. We believe that 1955 will bring
about more intense competition in

year

high

new

a

have

firms

Deposits in

have also amounted to
figure. A number of
reported record sales,

have

with their

consequently
local business.

sections, which

an

effect

on

which would pre¬
being another good

which

Residential build¬
undoubtedly will continue to be
for business.

year

ing

from

1955

Forrest

M.

Smith

important factor in our economy.
The automobile business has greatly

looking forward to

another good

year.

mistically.

chandising and advertising program, our

is*
John I. Snyder, Jr.

We

the

on

industry, I

optimistic about
railroad business year in 1955

prospects for a better

in 1954.
Primarily because of

in

reduced ac¬

trafic producing in¬
such as steel and coal, our
of. traffic in the first ten
of 1954 was lower than the
of traffic during the same

1905 to

service
course,

the

view 1955 opti¬

sales volume

dustries

forefront of the sweeping trend

months
volume

But a reversal in
evident in Sep¬
tember and by November the traffic
volume lines had crossed. Our traf¬
fic volume and earnings for the last
two months of 1954 were consider¬

period
this

in

trend

This trend is

during

a. 3,.n.n

the

President, Pioneer

eral

SMITH
Air Lines, Inc.

general outlook for business in 1955 in Texas
New Mexico is good. It now appears that the gen¬
volume in goods and services will set a new high

depending upon one primary situation
reservation
must be taken.
This

respecting which

pertains to agricultural and live¬
stock prices
in the first instance,
and an adequate supply of moisture
in the second.
The prolonged and
accumulated

deficiency of

sub-soil moisture and poor
of range and farm

expected that agriculture
and ranching
operators will over¬
come
the
problems presented by

prices

years.
The

Robert J. Smith

for

petroleum industry appears more stable now
time in the past 12 months, primarily as a

than at any

The

tinues,
facture
to

with the
showing

continue

conservation practices.
industrialization con¬
number of persons engaged in manu¬
steady increases and these are expected

of good

toward an increased

trend

during 1955.

Expenditures for services of all types continue at a
very high rate and will likely set new records in 1955.
Per capita income in Texas and New Mexico has in¬
creased substantially more rapidly than the national
increase and this trend will likely continue in 1955.
The

expenditures of state and lo^al agencies of gov¬
likely be higher in 1955 than in any pre-

ernment will




items

in

cans,

for

.

.

.

improved over
is sounder-

E. SPAHR

WALTER

Economics, New York
Yice-President, Economists National
of

Professor

University
Committee

Monetary Policy

on

living today has ever lived tomorrow.
know what the events of tomorrow will be.

No person

cannot

employment of the methods of
truth. We wish we

the

by

human

beings obtain

We

It is

science that

could predict

scien¬
But science for the past is
description; for the future
in the area of probability.

economic events of tomorrow

tifically.
belief

in

sity

recognizes no law of neces¬

recurrence of any ob¬
of events. The use

the

statistical data
to ob¬
serve the degree of regularity in the
recurrence of an observed sequence
of events, we could predict the prob¬

portant
is the

and promisin£f example

metal can for soft drinks

of this trend in 1955
which barely scratched

potential market last year. If the
carbonated and non-carbonated beverage industry fol¬
lows the pattern of the beer industry, which has already
reached a point where the can has more than one-third
of the market for packaged beer, the potential market
for such cans might well be twice the annual production
of

surface

the

the

Even estimating conservatively,
should very soon be as large an item

beer cans last year.
can

manufacturer as the beer can

good

which last year

industry's sales.

normal, or above average.
in general is good,

package business

good. The practically unanimous opinion
businessmen and economic analysts is that 1955 will

has

a

in

to

be

of
be

good year. Good business for any product packaged
cans obviously means equally good
business for the

manufacturer of the can.
The

is

can

successful

because

it can be

filled and

pasteurized, frozen or processed and packaged
at high speeds and low cost and also because of its merchanciising impact. It lends itself to high appeal labeling
for impulse sales, to multi-pack take-home cartonning
and to effective store display.
Given a

year

with the high level of

activity expected

trend in modern pack¬
aging which has already brought our industry among the
top ranking of the country, we in the can industry con¬
fidently expect a most successful year in 1955. The can
will continue to enjoy greater sales next year because
it helps the packer sell his product and the consumer to
riding the continuing

purchase and use it.

words

"will" and "must" in

characteristic of

prediction is not a
scientist.

the
If

accurate

our

sufficient to enable us

were

ability of a recurrence, or

tion,

continua¬

Dr. Walter E. Spahr
of that sequence within the
dictated by the number of
observed. But the unfortunate fact is that we have

limits
cases

relatively little evidence

in the economic

world in re¬

the

spect to which the regularities of the recurrences, or
behavior of trends, of events have been established suf¬
ficiently

of a type
measured by the standards

permit precise prediction

to

well

reveals significance as

of science.

in the economic world is circum¬
limitations that such prediction is,
consequently, of negligible importance. The number of
variables in the economic and political spheres is beyond
human calculation.
Our statistical data are generally
inadequate for purposes of scientific prediction. The
regularities in the behavior of even a relatively few
samples are rarely established. It is known that direc¬
tions of many, perhaps most, trends can change at any
time and without prior warning.
Our common variety
of predictions is therefore highly unscientific in quality;
Scientific prediction

scribed by

many

so

and unscientific
Since we

closed,

in 1955, and

the

of

that

business year promises

But when business

appear

consequence

new

ago

served sequence

business is poor,

their products,
likely to prevail during 1955. The
improved techniques in agriculture and ranching, re¬
sulting in better care for the land, have been the pri¬
mary safeguard against a dust bowl during these trying
present

to answer

Science

for

year

a

prepared foods and non-food items that have eliminated
so
much drudgery from the life of the housewife and
the average American.
' , .

be

which prices

still reap¬
growing consumer

outlook is far

and our position
the challenge of the days ahead.

time

this

of f accurate

standard

but does not insure
and every company.
industries, may still
experience fierce competition for the consumer's dollar.
Only alert and aggressive management can insure a
company or an industry success in any year whether

Given
normal
supply of
in the first half of 1955,

can

all, therefore, our

All in

a

demand

Midwest.

larly in the

living, the can industry is

A

moisture
it

profounoly af¬

so

American

good business for every industry
Industries, and companies within

cover

lands.

the
sanitary

1955 indicate a continuing
construction; and the agri¬
strong and steady, particu¬

building program in

strong

high demand for wire for
cultural market, too, holds

ing the benefits of

Robert S. Solinsky

accounted for over 15% of our

experience in this area for four
five years has left its mark in

deficient

the

fected

for the can

moisture

from severe drought con¬
which have been the com¬

surface

has

that

change

the soft drink

mon

to

a

from

convenient
and
package of today, and the can
industry has grown with that trend.
In
contributing to this sweeping

of

resulting
ditions

this

and

Especially prominent in the modern trend is the con¬
sumer demand for a single trip package.
The most im¬

continuing markedly

The

and

portion of our earnings for plant buildings
equipment needed to maintain the progress of
65-year-old company.
For us,
the days ahead hold considerable
Demand for industrial wire has increased; forecasts for

siderable

to

unit

period in the

the first half of January.

ROBERT J.

packaging"

barrel

smaller,

became

previous year.

r.

"cracker

1S53.

ably ahead of the same

dividends to shareholders, to contribute to
some of the
community's deserving social and educa¬
tional activities, and at the same time, reinvest a con¬

capita
over 1,000 cans per family
The can has been in the

last

volume

regular

able to continue our

Thus, we were

year.

quarterly

promise.

tivities in heavy

year.

strengthened ourselves'by adding new
and buildings to offer even better
to our customers. All this was made possible, of
because a satisfactory profit was made during

doing so we

In

lation from very few cans per

than we had

salesmen were
than retain our

products, equipment

half century, a period which
approximates its life and that of my
company.
The consumption of cans
has grown far faster than the popu¬

and Western are

the Norfolk

output sold and more
position in the industry.

able to keep our

favorable

All indications point to greater

Railway Co.

position. Backed by

standing and

This

& Western

R. E. Sommer
competitive
the under¬
cooperation of our skilled production and
employees, along with an aggressive mer¬

to a most

maintenance

past
President, Norfolk

conversion of

final

the

saw

industry

sales

SOLINSKY

can

announced as of

1.

1954

profitable operations.
industry has shown consistent growth over

and

SMITH

H.

R.

plan was also

Nov.

This is, of course, a

of the

member

a

improved.

was

sion

President, National Can Corporation
As

insurance program
and their depend¬
A broader pen¬

them

to

ents

is primarily

ROBERT *S.

an

improved and we are

offered

,

economy

the

employees,

continuation
of the trend away from emphasis on production and
towards emphasis on sales which has been in evidence
since 1948.
We believe this to be a healthy situation.

favorable factors
vent

exclusive

reflected

be

facturers in our lines.

the New Year we see no un-r

to

As

~

Steel Workers' Alliance,
bargaining agent for our

dependent

-

Under a

employees.

company

agreement signed with the In¬

new

heavy metal fabricating,
only to a very, small degree back
through to consumer goods. - We are aware that beyond
price competition there will be a necessity for us to
exert greater and better sales effort in order to maintain
our position.
We believe this to be true of most manu¬
will

business. "Drought condi¬
still are being felt in a num¬

ber of

during the year.
So far as the general

industry,

Christmas
tions

steel

pricing but do not expect
any
violent price readjust¬

see

|
j

working hours per week

the

concerned, we believe that any price
dislocations that take place in our

and profits

in connection

especially

to

in

em-

almost five more
than other

averaged

ployees

average

Keystone

too,

Then

October.

to

ments

industry

steel

the

than

this competition will

that

and

extend

Antonio and its area dur¬
been gen¬

general

fields in which we op¬

the

of

erate

conditions in San

Business

ing the past year have
erally very satisfactory.
our bank hit a new high,
for the

of

in

Business

Antonio, Texas

San

President, U. S. Industries, Inc.

Chairman of the Board &

each

Bank of Commerce

President, National

SNYDER, Jr.

I.

Wire Company

Keystone Steel &

tem indicate a

JOHN

General Manager,

President &

the

reports that we receive from
all sections of our nationwide sys¬

E. SOMMER

R.

for the same reasons likely to apply
I think it worthy of note that the ratio of

ceding year and

The

crease

51

Commercial and Financial Chronicle

SMITH

R.

C.

The

know
of the

the

predictions are misleading.
the evidence by which we can

do not have

degree

many

of probabilities as

to the occurrence

anticipated events of the

future, what can

the limits of reliable
knowledge? His reliable knowledge is that he does not
know whether prices and production will rise or fall.
Therefore, to conserve his savings and to earn what he
can make them yield, he should divide his savings and
investments into two parts: one part should be employed
in anticipation of a rise in prices and possibly in pro¬
duction; the other should be employed in anticipation
of a fall in prices and possibly in production.
If there
should be a high degree of stability in prices and pro¬
duction—which generally, apparently, does not continue
for many months—the offsetting of one unknown against

the saver

and

investor do within

i*

Continued

on

page

52

52

The Commercial and Financial Chronicle...

(512)

the change in emphasis works to

51

Continued jrcm page

kind should produce conservative
should be up or down, gains
balance losses and the result should be in

another of an opposite

*

should tend to

of accumulated sav¬
ings. Pursuit of either the upward or downward pos¬
sibility is gambling, not wise investment, in the light
of the inadequacies of our ability to forecast economic
events with any important degree of precision.
We are running these days on an irredeemable cur¬
rency as a medium of exchange and wth cheap money
policies and a multitude of otner artificialities, largely
government-generated, permeating our economic activ¬
ity. The optimistic opinion, commonly associated with
such
manifestations, appears to be widespread.
We
should remind
ourselves that under an irredeemable
currency we once had the longest economic
recession
and depression in our history.
As counted by the NaEconomic Research, the recession and

of

bureau

tional

■

the conservation

of

direction

the

1879, lasted 65
1933, lasted 45

depression of October 1873 — March,
months; that for June, 1929 — March,
months.
An irredeemable currency is

force

potent

a

contributing to economic maladjustments which tend
either toward a progressive loss in purchasing power of
the

currency

jamming of workable relationships
selling prices with consequences that
nation into an economic recession and

or

a

between costs and

finally plunge

a

depression.

and

fall

With

Organ

Co.

history, the Hammond Organ Com¬

moved into the New Year by announcing that per¬
will be added to all its models.

cussion control

Estimated
The

$3.35

earned

for

March

ended

the

its

control the ability of the brass

35

three

addition

The

delicate

of
and

Government to

tion of

on

flow

miners'

ing

been

has

organ

changed, with percussion
it is

trol

the

of

performance

experts

market

or

harp,

chimes,
others.

and

musical

and

This

An

is

the

and maintain

this

the

basis

same

sales
the

as

S.M. Sorenson

Because

homes.

offers

year

of

taken

vibraphone
the scope of

further effect upon

a

a

bearing on sales in the
new
franchise:! dealer

organization is established

company's

United

successful

increasing popularity
market

our

increased

potential is

sales

all believe is a

H.

the

■'

President,

Scovill

United

States

the

of

nage

the

of

in

organs

great, each

so

possibilities

level out and stop their downward
reasonable to believe that there will be
any real recovery during the year.
If this proves cor¬
rect, or nearly so, farm income will be moderately lower
and' those industries which depend on rural buying
power will have to look forward to 1956 for any substan¬
prices

continue

to

Harbor.

of attack

wage

competition, reduce cor¬
poration profits. This is the darker side of the picture.
On the whole, however, there are reasons to feel that

to

high

for

in

nine

about

noticeable

accelerate to

at

lasted
was

still greater degree.

In

Company

view

of

our

of

confidence

production

1954

in

of

consumed

the

in

roughly 20% below the ton¬
the changeover from mass

was

previous

brass

comparatively
use

simple

to the more

forms

for

of

soundness

the

has

balance
brass

brought

The mail order industry may share
this increase

the

in

mills

The

in such

needs

manner

that brass is
basic

a

portant

as

statement
or

year'.,

a

to

the

start

of

the

19th

squalls, the flow
cur

Century.
of this

productive life finds

of

program

been

Two

considerations

1954.

material.

single

such

thinking.

This

case

of

has
the

a

of

alloyed

metals

into

reassuring symbolism in the

dominated

One of them

planning
had

been

by

the

in¬

prettv well

-

,

The

former relates to the

new logistics of
industry as
Steady progress in the means and.-speed of
deliveries has swung the emphasis from maintenance of

whole.

inventories
start

and

to

the

reliance
finish of

thought this would
:

on

the

seem

to

the

pipeline

industrial
mean

between

process.

that the




On first

primary

ducer is now forced to "hold the bag." In

the

pro-

actual fact,

for

motions
M.

J.

Spiegel

that

industry has

Our
a

selection

wide

of

Card

Divisions,

this purpose.

a

wealth

made

of

new

merchandise

pro¬

eliminate

enables

turn

ilies
raise

them

There is no way to peer into

results

end

beforehand.

shall have

a

suburban

their

own

living.

meat

for

J.

farmers

Pennsylvania Railroad earnings will show a decline in
compared with the previous year, due to increased

fall

and

of

the

1953

drop in rail traffic which began in the
continued throughout most of 1954. A

and

decided

occurred,
of

the first

Another departure is the free
to

balance

Spiegel

up

now

on

a

Spiegel charge account,
household.

In evaluating the outlook for mail order, it is also
significant that catalog prices for the spring season have

been based

on

a

relatively low point in the price levels

earnings

business.

increased

rail traffic, per¬

the extent of a 3% to 5%
advance in our freight volume in the

haps

to

first

half

tions

Prudential life insurance
protecting any

should death take the wage earner in the

in

flected in

a

mail order customers,

to $1,000 due

1954,

in

however, in the last half
resulting from continuing
costs and a slight improve¬

Industry and business generally in
the area served by the Pennsylvania
Railroad are optimistic as to 1955.
The
anticipated higher volume of
production should, of course, be re¬

deep freeze, and provide

in

improvement

control of

city apartment.
issued

SYMES

M.

items

can

1955 and determine yearconfident, however, that

1954

costs

monkeys, Shetland ponies,

Sundown

am

progressive and fruitful 1955.

ment

the

I

President, The Pennsylvania Railroad Co.

40,000

and

This provides the administrators
accurate information which in
to make intelligent administrative

news.

their children with pets that would be impractical

auto¬

decisions.

swan,

the

Stowell

with prompt,

talking birds, dogs, cats and other animals
more
conventional items in the Spiegel
Catalog recognizes the present day trend to large fam¬
to

C.

rechecking.

of business

time in mail order history.

piglets,

L.

As we continue to increase the

operation of business machines we eliminate many
of the human error possibilities and provide the checks
and balances which prove work progressively and thus

tradi¬

and better color pages,

pets and farm animals for

The addition of burros, goats,

well as

as

typewriter and business machine
function

catalog, for example, offers

own

opera¬

Electronic Computer and

Our

meet ob¬

and means to

more

and

control

the

simplify

aggres¬

the past.

have

Operations of in¬

the

As

matic

we

improved merchandising/better

Although subject to surface
oldest

in

'55 have

is

since

country

increased
However,

The mail order catalogs for spring

an

which

brass,

as

the

the

ways

stacles

the

by the year-end; the other is one with which
brass mills have to live year in
and year out.
'

found

loss

for

and

general.

in

order

mail

order

in

dustry and government become more
complex it is necessary to continu¬

sive to the degree that it has usually

company

prospects

in

regulations

tionally been ingenious and

Im¬

and

resolved

a

the

effected

Gulf Stream.

dustry during

Postal

the determining factor

are

with

grown

a

lesser degree than

a

limiting effect of various U.S.

competition

profit

any

management's

industry,
Sperry

the

to

to give assurance

as

particularly true
L. P.

to
has

industrial
is

return

country.

to

types of retail enterprise, due

to the

maintaining its position

industry,

long pull
in

the

adjustment

peacetime

as

dollar

of

other

compensatory

a

en¬

joyed in 1954.

requirements from American indus¬
try

believe that retail sales

general will be slightly better in 1955 than those

specialized customer

control

statistical

the

private economists,

defense

mainly

divisions of Underwood, all

and the favorable predictions of both govern¬

in

experience

our

or

program.

tions.

ment and

year,

been

the

in

we

with confi¬

capital

Spiegel, Inc.

Board,

year

simplify such a problem.
Our business is in the midst of an
extensive research and development
solve

to

ally

SPIEGEL

the

has

It
of

business

improve¬

Hammond

J.

approach each new

optimism is essential to any business

purchase are not
subject to very much impulse buy¬
ing.
Instead,
they
are
procured
after careful study of a problem of

strong

a

to

A note of

that business machines being

predictions for
A- H- starrett
betterment by the ever-willing economists and "trend
spotters," supported by the opinion of the Federal Re¬
serve, we are inclined to agree that 1955 may be from
3% to 5% better than in 1954, and that 1956 should
With

ment.

natural

aging.

a

receded

and

year

months, when there

slight

very

field

our

last

of

STOWELL

operation, and when this optimism has a sound basis in
fact as it does when we enter 1955 it is most encour¬

1954.

a

is

It

dence.

items

start

C.

L.

President, Underwood Corporation

Government

construction, there must be

Business

improvement

substantial.

strong,

noticeable improvement in 1955 over

the

be better than 1954, even if the

1955 should

is not very

keep

With

profit

They could easily affect business

prospects.

ness

margins and along with severe

ideas

high on the list; a great
improvement ir* steel and automo¬
tive industries; carloadings well up;
continued
installment
buying and

Chairman

Manufacturing

of

may

trend, it is not

great

submit

must

we

and

SPERRY

quantity

somewhat bet¬

breadth of

our

of

economy,

Although

be

have experienced in the

that may very well limit the
the improvement.
While

course,

Stern

Lawrence F.

Punched

C

we

dividend dispersals

1955

in

past 12 months.
There are a few developments, of

come

Starrett Company

with

welfare

M.
P.

are

business—•

for

with the general business improvement will
demands and strike threats, of not actual
strikes, in such important industries as steel and motors.
These could hurt and necessitate a reappraisal of busi¬

STARRETT

nation

foreign
to

Organ.

L.

which

indexes

usual

tial changes.

spending

organization, whose franchised music deal¬
ers sell Hammond Organs on a semi-exclusive basis.
No
jobbers or distributors are included in the setup.
In appraising
1955 from a business standpoint, note
be

we

technical and specialized field of pro¬

highly

any

Pearl

sales

should

keep on

its ability to

position in what

pro¬

national product, retail spend¬

ter than

our

index

Board

yardsticks

as

—should

build constantly to resist any second

increases

company's

The Canadian

market.

States

in

continuation of

averaged

ing, wage rates,

some

believe, however, due to the uncertainty

taxes

organization in Canada.
Sales tests completed in the
past point up the tremendous potential of the Canadian
on

gross

farm

closely enmeshed

so

again demonstrated

industry

home

Another factor that will have
year

used

productive
economy as is the brass industry is necessarily affected
by the rise and fall in that economy as a whole. In 1954,
operation

other

The

matter for speculation.

a

country,

sales.

coming

eastward

a

about 125
1954, should be around 132 in 1955.

in

entering the American market.

by

not

and should have

Reserve

which

the

inimical

con¬

feature

new

far

How

Europe.

coupled with

good automobile sales, warrant
optimism for the year.

duction

of
is getting after fabrication in Western

into

These

Estimates have been made that the

copper

latter copper

We

marimba, celeste, xlyophone,

artistry

summer

like—should
improve¬

the

1955.

Federal

mechanics' hand-measuring tools and precision
instruments, we enter 1955 with courage and optimism.

tones similar to the

of

last

in

some

ducing

possible for organists,
beginners, to produce a

variety

continue

the

the

The signs

evident in the last quarter of

were

ments

consumption during the
and early fall.
Still an¬

into

copper

President, The L, S.

now

wide

which

year—higher steel production and

continuing price differentials which is draw¬
and domestic scrap away from our

world

this

of

strikes

other is the

In

While the traditional

organ.

any

the

of

expression
possible

of

of betterment,

decline in business in 1954,

some

rather mild in most industries.

Another was the combina¬
Government's stockpiling program with the

our

reduced

STERN

Along

before

never

was

was

instead of directly to users.

A.

Organ capable

shadings

nuances

downtrend

One has been the policy of tne
sell its copper to world dealers

market.

copper

Chilean

F.

of the Board,

American National Bank & Trust Co. of Chicago

While there

vigorous and expanding economy.

of percussion control

makes the Hammond

Chairman

During 1954 several developments influenced the do¬
mestic

extra of 50 cents.

an

improvement in industry sales during

LAWRENCE

mills to maintain steady

price

meet

year

disbursements

regular

and

cents

an

lated at lower than current prices.

already paid amount to $1.55, includ¬

ing

to

Dividends

1954.

31,

and

compared to retail store prices.
look for

can

1955

competition from other
materials for many of the applications in which brass is
historically dominant. Further, any differentials in the
price and availability of copper between the United
States
and
European markets affect: the competitive
position of our brass industry, if this situation continues
over
any substantial period.
Still another factor is the
impact of taxes on producers who are forced by copper
shortage to draw on their metal inventories accumu¬
production

course

record

a

fiscal

the

component of brass,

As the primary

price and availability, both current and prospective,

our

will exceed 1953-

company

share

a

for

earnings

net

1954-55 fiscal year
54.

consideration.

ond

as

well for the entire six months' life of the cata¬

These factors would indicate that the mail order indus¬

try

viewpoint of America's brass industry, the
tight situation in foreign metal markets has tended to
dampen the ardor of foreign brass manufacturers about

early winter sales reaching the highest

levels in its 26-year

i

logs,

Copper is obviously the conditioning factor in the sec¬

From

SORENSEN

M.

Vice-President, Hammond

Executive

•

early delivery dates now expected by customers.

Europe, is
S.

pany

stand up

And, if the swing

results.

therefore catalog prices should

that existed in 1954, and

the competitive advan¬

tage of the efficient operator who is geared to meet the

Thursday, January 27, 1955

of

over

James

M.

Symes

We

ings

of
an

the

year,

even

with

greater

1954 in the second half.

indica¬
increase
•

expect the Pennsylvania's earn¬
in 1955 to be higher than in

1954, not only as a result of increased business volume,
but because of the continued return on the capital im-

Number 5398

Volume 181

is

bad

a

sold

the tax

situation;

almost

under

which

any

the fear of double

or

it congests markets

should

TAYLOR

at

of Virginia

to

me

insurance

life

are

a

the

being
rapidly by the formation
of new families, births of babies and
the
assumption
of
heavy
home
mortgage
liabilities.
Steady em¬
ployment during 1955 should pro¬
duce
the
money
with which life
insurance can be bought and the life

in

home,

large

look

I

Charles

A.

have reached a leveling
for 1955 to be distinctly

D. TRIPP

Coppermines Corp.
Economic Trend Line Studies

Chairman,

moving.
I
am
not going
to burden the
reader with reciting a lot of obvi¬
ous
things that are the facts of to¬
day,
such as
peace
looks more
which

in

rection

are

we

promising, house building is con¬
tinuing, national income is slowly
expanding. It may be more impor¬
tant to devote more time on some
of the items that could in due time

To put the mat¬
should be mindful
possibility that 1955 might
the pattern of 1954, and that

change this trend.

briefly,

ter

of

the

reverse

we

whereas the first

quarter looks very

might be

promising, the last quarter

Tripp

D.

Chester

..

misgiving. For the moment, suffice it
to say that available money is in generous supply, that
the spending habits of the people are not hesitant, and
not only does the future look bright, but may expand
substantially unless by our own foolishness we inter¬
subject to some

the

with

fere

a

risk, for instance, that we may

A boom at the present
most unfortunate. It could result in a

Legin to have dangerous aspects.
would

time

be

bust that would

call for large government expenditures

one

not warranted

is

in assuming that a

ceiving

too

Markets

are

optimism

much

one

this

writing,

on

based

on

its

we

merits

will
in

traffic

will

we

so-called

from

better

be

the

general public.

the

coming

off

if investing

is

can

For

misnomer and
a

safer

today.

The

facts

In
or

my

opinion, if

are

that

market

present law
for

a

liquidity.

for

an

It

is

in

the

and

I

personally

devices.

As

presently

available, but it

operated

is obvious

between the effect

tion.

his estate would

money

that

time

money

see

are

on

a

as




a

To

has

facilities.

high rate

sales

of

the

in

that the

pas¬

approxi¬

show

average

em¬

number

average

slight increase, and

a

high

as

It

out of

seems

situation.

For

and

ance

this

has

place to

the

minute

better

in

as

available in

that

it has been

as

wisdom
been

better, but forbear¬
importance.
Much of

vital

of

are

the

last

I

and

year,

trary,

reasonable

common

will

sense

prevail

in

am
con¬

these

undertakings.
When
many

gets

one

pondering

difficulties

tioned two

or

most
and

will

never

in the past,

as

and to

occur,

periods in the past,

depends

ahead,

year

the

I

our

integrity,

on

ghosts

have

three, and others undoubtedly

consideration; but

culties

a

tnemselves.

preseni

men¬

worthy

are

of the diffi¬

many

greater degree than

a

future is in

and the

exer¬

cise of wisdom.
look

I

to

with

1955

considerable

The

stage is set for better things and I

why

our progress

its

of

way,

but

should not continue

light

in

I thought it appropriate
that might

the

of

on

optimism.

see

the

no

to mention

reason

even

expanding

tenor

economy

few of the things

a

interfere, not for the immediate future, but

they may become evident

as

K.

1953.

1955 and

the

banks and

GEORGE

Nashua,

Although somewhat spotty, 1954 was a pretty good
for the economy as a whole, not as good as 1953,

F.

authorities, during 1954, followed
policy of active ease in the money
There

the

banks'

The

United

ments,
for

new

careful

in

funds

the

interfere

and

Treasury

maturing

for

was

rate

in

New

in

re¬

obligations,
require¬

money

not

to

areas

with

a

increase

siderable

compete
where

it

plentiful

the

was

made,

Con¬
how¬

lengthening the maturities
The mone¬
tary authorities, through their poli¬
cies, were helpful in maintaining

of the
John K. Thompson

employment.

progress

of

Bank

,

Hampshire

Bankers, during 1955, will have to
competition in all phases of
industry and banking, high levels of
loan
demand, investment require¬
and

good business tempo in 1954. They will undoubtedly
closely the developing business picture in 1955
with a view to making such adjustments in monetary

Federal Reserve

policies.
The coming year will be highly
competitive in industry. Many com¬
panies, during the past year, havo
been

preparing for such a period.
policies have stressed the
for more efficient production
facilities and improved productivity

Executive
need

of

Distribution

labor.

outlets

and

sales
Geo.

have

policies have received consid¬
erable attention. Capital weaknesses
and
excessive inventory situations

1 nuroer

r.

corrected

been

far

as

possible.

as

solve these

To

completed during 1954
and because of increased competition, 1955 will see more
and larger mergers.
Increased competition will result
in a rising trend of business failures, due to smaller
gross profit margins and reduced volume for some com¬
panies. This will result in larger loan losses for some
banks.
Generally speaking, however, large reserves for
loan losses have been set up in recent years and should
be more than adequate for anything foreseeable duruing
problems,

mergers

many

were

1955.
Banks will find 1955 more

competitive than usual,

par¬

ticularly from tax-exempt and partially tax-exempt fi¬
nancial institutions.
Mutual savings
banks will offer (,>

deposits and longer
mortgages. More
important, however, will be the increased aggressiveness
of
savings and loan institutions, which are less re¬
terms

rates of interest on time
higher ratios of value

and

stricted
terms

branches, liquidity, rates of interest and loan

on

amounts.

and

on

On

larger scale, insurance

a

com¬

panies will compete more fully for mortgage loans, term
loans and investments.

of

is

loan demand

a

certainty based

activities.

half

year

Financing for tax

will

larger.

be

purposes

particularly

1955;

Demands

for

an

first

of

the

in

"annual

May could

on

automobile

pro¬

production

latter part of the

year.

wage" "by labor unions about

have serious consequences and

lead to harmful strikes.

may

Any

decline

in

construction

ufacturing

business

general

activity,

While construction of man¬

requirements.

facilities may slacken, new

schools, hospitals, roads and homes

construction of

will require financ¬

All in all, rates for loans and investments

to be

will tend

higher.

Whereas
serve

however,

will be more than made up by

should not be serious, and

ing.

in the

production in the final two

months of 1954 which should result in lower

the

fore¬

A skeptical attitude is

optimism

continued

for

necessary

for

on

high levels of automobile production and con¬

struction

in

government debt.

flexible

credit

in

requirements.

reserve

States

its

issues

and

reductions

were

rediscount

THURBER

duction because of the large

it to be.

The Federal Reserve

banks'

other lenders will

creased

Increased

year

the

be

solve the problems arising out of in¬

first

markets.

will

Banking has concluded another constructive and prof¬
is very good. The
quality of assets is excellent, deposits are high and
earnings prospects are better than normal.

casts

THOMPSON

President, Union Bank of Commerce, Cleveland, Ohio

a

1955

itable year, and the outlook for 1955

the months roll by.

but better than most people expected

in

two

past

1954, but probably not quite
Money will continue to be readily

President, The Second National

higher

forward

the

while purposes at reasonable interest rates.

hands

our own

common sense,

in

in

than

looks

demonstrated

change

be well able to take care of all requirements for worth¬

much about the foreign

say

it

inclined to believe that in spite of pressures to the

of

little

very

summarize, I think that business

good

as

shown

the future and loading debts on our children and
grandchildren that will be hard or impossible to pay.

might

others,

which

from

tax

large percentage of

buildings,

other year, which should also apply to disposable
and personal savings. I think there
little change in the consumer price index,

many

during 1954, the policies of the

System and the

Federal Re¬

Administration aimed at increas¬

ing the money supply to

combat deflation, their efforts

during 1955 will be towards

restricting excessive use of

a

watch

what

ex¬

probably
well off¬

be very

money

gains

have conferred with

will

always be
long drags

can

there

supply of funds being available for
construction or other purposes which

large accounts

1955

income after taxes

control

tax laws

double tax

that

exceed

increase

an

1954,

1955 will be

policy and its promulga¬
are at the present
we get unsound in making
available to industry, we are simply borrowing

that it

under

will

worked

personal income in

in

1954.

be

over

dangerous

would be

pay a

gone over some very

surprised to

policies
same

that

People get impatient,
time, and it is clear that if

individual to sell securiites calling

last few weeks and
am

the

markets, and the
powerful and at the

is

through inheritance levy.
I have

hours

1955

will

increase

business

than

more

short

in

money

are

substantial capital gains tax, and then if he should

die shortly thereafter

Labor

we

possible

slight

a

production

While

think

I

ments

The

them,

ever,

very

in

itself.

is, in substance, a transfer tax that does much to re¬
duce

sub¬

a

our

the capital

even

steel

10%.

1955

will

can

time when they

English pattern,

in

it is hard to see how agricultural
improve, and if the things that agri¬
culture has to buy get more expensive, a buying strike
might be generated that would easily spread to industry

compensation

might
followed the Canadian

the

but

financing

a

construction.

conditions

present

months rather than

markets at

narrow

should be broadening.

of

of

pull their efforts
longer view they
can stop activity, reduce
legitimate expansion and hurt
themselves, as well as the community in general. Under

diverted to market purposes

capital gains tax

has done much to

activity. This is
be easily misunderstood.

bear.

going to learn the hard way that our

are

business

rewarding

appear

unbridled enthusiasm.

think

be

positions, often demand too much and

getting more active, and although no large

amount of money is being

I

which

on

may

there are

industrial activities are re¬

strong indications that some

done

extreme

J.

speculative boom in securities is under way,

at

from

currency.

our

Although

am not mistaken we would
rule applied to any form

I

same

up

plant and

new

there

believe

ployment

of

devastating to the sound value

which, in turn, would be
of

I

compensation should be, and as a matter of fact, even¬
tually always will be in line with the cost of living,
but if that compensation soars more rapidly than pro¬
duction we could easily price ourselves out of many
markets including our
own, thus dampening activity
and again bringing on major unemployment.
It is not
surprising that labor leaders, in order to preserve their

of

process.

try to build
a boom
on top of a boom.
It is very clear that there
are large groups in the country that strongly urge that
the government step into the breach and do something
about the so-called sick economy.
Substantial groups
are preaching the doctrine that the government should
spend new sums in order to stimulate our activity. This
is a strong pressure, has great political appeal, and
catches many a willing ear; but the facts are, that money
is already a little too available, and that if we are not
very careful with our money policy we can stimulate
a false activity that before
the end of the year might
There is

the

that

by at least

mately 5,300,000 sold in

a

the liquidity

on

be

may

expected

automobiles

somewhat

the

I

1955,

if

and
if

within

the capital gains tax did not apply.

profound effect

a

it

replaced

built

were

current

years.

own

feel that the same forces
that were exerting their influences in 1954 still con¬
tinue.
There is no question but what there is more
optimism in the land today than there was at this time
a year ago, and
I see no reason for
an
early change in the forward di¬
into

look

we

off

had

and

house

a

is

1954

residential

senger

in any

ject

I believe too,

President, Consolidated

As

sold

of

result

Taylor

1954.

CHESTER

that

phan¬

a

Another aspect of the economy that might jeopardize
and congest our future is a rise in labor costs that could

programs

may

expenses

realized

there

and

It

In times such as we are now entering, the
liquidity and convertibility of all markets is of great
importance, and a bulge in the stock market might be¬
come
excessive for the reasons given above.

investment
anticipated
industrial and

Although

transferring

was

soon

the

about

equipment will
further decline, such decline should be pretty
set
by expenditures for highways, school
water systems, and other public works and
It is probable that 1955 will see a continued

property.

good investment op¬

operating
point.

better than

estate,

better

portunities and continue the upward
in life insurance interest earnings.

off

change

real

trend
that

individual

This

of
the

building

institutional

should provide

he

and

1955,

exceed

penditures for

same

short period of time,

salesmen.

plus
road,

however, he

cases,

to another

profit that he was being taxed on was only

an

companies themselves
will have more salesmen and better
carry-over

most

which

inventories

them.

will

increment of increase applied to the
house he was purchasing.
This absurdity appealed to
the tax writers and the law was changed so that if

insurance

The

In

location

one

tom, and the

to

commitments,

tax.

from

being met and those needs are

added

a

25%

needs for

The American public's
long way from

good.

in 1955

insurance business

life

the

for

outlook

The
seems

law,

in

all

already demonstrated it¬
the realm of house ownership. Under the original
householder that sold at a profit had to pay a

self in

at

in

This transfer tax aspect has

President, The Life Insurance Company

maintained

level.
substantially
1953, were considerably reduced in 1954. There will
probably not be any further inventory reductions over¬

Business

and

time.

future

some

be

53

1953, will

substantially less in 1954 than in

were

probably

is apt to have the result of having the market go higher
than it normally would only to decline more than it

operation is anticipated.

CHARLES A.

logically

account of

on

This

tax.

the efficiency and economy

be

cannot

conditions

period.

Further improvement in
of

securities

post¬

which have been made during the

provements
war

(513)

The Commercial and Financial Chronicle

...

policies as will be^ best for the
I

think that

business

than

be a somewhat better year for
National security expenditures,

1955 will

1954.

general economy.

credit in

order to prevent

inflation.

'

To

summarize, 1955 will be a profitable year

ing and industry, but also a year

for bank¬

of keener competition.

Continued

on

page

54

54

The Commercial and Financial Chronicle

(514)

Continued

from

Official forecasts indicate

53

page

will rise 13%
New

ARNtJLF UELAND

on

and

others, the country's economy in 1954 fell
little below 1953 and was the second best in
In general the Upper Midwest shared fully
in this high level prosperity and in

history.

our

respects exceeded the national

many

Agricultural production,
mainstay of this area's

averages.

is

which

continued at a high level
and resulted in continuing surpluses
of
some
products.
Farm
prices,
economy,

while
unsatisfactory,
have
been
comparatively stable and an average
decline
of
perhaps
3%
was
the
The

ally

since

complished.
is

credit

during

has

gradu¬

the

is

there

and

now

Bureau

increase

number

is

of

in

The economic

upward

favorable

These
^

weakness

the

of industrial

factors

offset

are

to

than

of

that

it

(1)

in

in agriculture and by a declining
building and defense expenditures.

warrants

outlook

present

tion

1954;

(2)

V

is

'There

of

difference

a

for

the

opinion

serious
latter

of

with

concerned

stock

in

crease

grow

the year progresses.

as

are

level

year.

prices,

with

with

debt,

mortgage

The
high
the in¬

the

consumer

*

The

current

tories

activity

steel

Looking

the present
continued growth in

see a

ulation,

meaning
and

a

and
W.

Ullman

The

industrial
attitude

of conservative
•

I

feel

Some

that

of

and

Federal

outlook

for

is

in¬

and

Board

is

one

reasonably good.

businesses will prosper more than

develop that affect

an

others.

If

un¬

individual busi¬

there will be greater need for careful planning,
work, close attention to inventory and receivables,
a

strict

control

of

W.

debt.

G.

VOLLMER

President, The Texas
About
and

Reserve

1955

this

time

businessmen

ponents

of

siderable

our

each

&

Pacific

year

carefully

national

Railway Co.

leading economists

many

analyze

economy

the

major
then—with

and

com¬

for

prophecy is cautious

conservative—but

mistic.

All

of

the

firmly

basic

opti¬

economic

factors indicate the trend in business
which began in the latter part of
1954

will

ward

on

support

>

continue

principal

spots

1955,
The

National
of

bright

outlook

for

goods

to be

Product
and

more

(the

services)

than

in

probably will be close

to

1954

the

peak of $364.9 billion.

Per

capita

income

likely

will

appears

high;

to have ended;

Money and credit should be readily
available/
Expenditures of the Federal Government are
mated to be

to

the

that

and

$230 ^million,

that

>
Cioud

little

home

is

and

water for

no

see

the $2Y4

also hazarded a guess that total dol¬
equipment would pass those for

of residential

room

over

prediction

year

1958.

In view

$300 million, I think

reality.

ing

is

well

on

its

probably be only
say that this'
toward becoming a

we

way

where

can

been

clearly indicated by the trend in office build-conditioning in which field Carrier does a largei

better.

esti¬

only

be

in

to

1953's

ot

manufac¬

of

oil

field

its business from

Authorities

high

rate

of

1954

oil

and

which

It

level.

the

predict

production,

and

is

A.

a

E.

Walker

gas

should

probable

hold

sales

our

that competition-

will

be

dollars

been

active.

received

were

Orders

totaling:

during

the

past,
two foreign countries which previously had
of little business, and we believe there,

from
the

has

business

million

source

a

pick-up in orders from other countries/. Na-.

tional Supply drilling rigs and equipment are used today»in

virtually

world,

oil

every

producing

country

in

the

free

t

During the

year we opened an oil field supply store:
Morochas, Venezuela, our second store in that
couuntry.
We also opened new stores at Big Springs
and Pearsall, Texas; Lake Charles, La.; Worland,
Wyo.,;
and at Virden, Man., and Drayton Valley, Alta., in Can-;ada, bringing our total to 124.^ This is the largest num-.
ber operated by any oil field supply
company.
We are.
engaged in'a continuing program of modernizing our
store buildings.
:

at

Las

Our

plant at Gainesville, Texas, built at a cost
started limited production late in 1954
and is expected to be in full operation
by Spring. It is
our seventh
plant, and should provide a'substantial ad¬
of

new

$3,700,000,

dition to

our

manufacturing facilities.

'

Considerable

equipment has been installed in our
them in top operating condition;
These include plants for manufacturing oil field
equip->
rhent at Toledo, Ohio; Houston,
Texas, and Torrance,Calif.; a diesel engine plant at Springfield, Ohio, and
the
Spang-Chalfant Division pipe mills at Ambridge1
and Etna, Pa.'. • ;
•
t
'
•
other

plants

new

to

keep

CHARLES
..

President & General

a

rapid

pace

[.„ since

and vir¬

office

existing

was

buildings

two

This

structures.

used

less

to

one

compares

air

for

1953

son

sales

,

year

did

is
>

business

office, there

are

working in
than two working in

every.? person
more

$9

million*

reflect

the

opti-:

are

showing

their

confi-r

1956

calendars

more

than

a

ahead of the time they are dis¬
Another encouraging sign

that

the

thus far

an

is

accurate

cause

a

a

1

average calendar order
larger than a year ago.

We have long felt that

There is also another large field into which the indus¬

For

nearly

tributed.

for the

moving.

Dec.

opened

-dering
.

growth of air conditioning in all
fields is solid business economics—greater eficiency, and
protection of investment.
now

of

Bigelow

dence in the economic future
by or-

when-

conditioning than

;

&

our new calendar selling sea-'

customers

structures.
reasons

WARD

mism of American businessmen. Our.

older against

with

A.

Sales Mgr., Brown

Our

Within the last few years new office

conditioning systems

is

Our

excess

largest

office space has triggered an even greater amount of
business in air conditioning existing office buildings.
New business for Carrier alone last year in large air

try

Our

$9,780,801 in 1953.

tually every one of them has included complete air con-^
ditioning. Availability of modern, new, air conditioned^

The

1955

1954,

as

$237,171,093.

was

of

our

11
in air conditioning for existing structures*

volume of business.

new

Supply Company

....

The growth

has

1954 to $160 million this year

air conditioner sales will

too

that

same

distributor

the

been

And 1955 should

rise from $100 million in

of

world's

80%

several

Wampier

-

inside the

about the

in 1955.

become more intense, but we are confident of our,
ability to hold our share of available business.
;I We are optimistic about-prospects in the; export field,.

a

air conditioners in

totai

will

Weathermaker,. not,
It is installed

Summer

It

industry.

around

of the fact that total residential volume at retail should'

a

to

19531

approximately

second

should

and

drilling
.

about $1

Some years ago I

and that

the

continued

billion mark reached.

sales

income

about

is the

ductwork

of

in

as

WALKER

are

were

all-time record

oil

air conditioner.

again to nearly $2 billion.

lar

amounted

same

quarter, in¬
50
cents
per

share

a

year

year

Carrier

guess

a

retail

-machinery and equipment, the Na¬
tional Supply Company obtains

industry at retail
billion for the preceding year,,
decade hence, in 1963, industry
sales would reach $5 billion.
The elapsing years have
shown us to be moving well along toward that figure.
In 1953, retail sales volume for the industry climbed to
about $1% billion. In the year just completed, it grew
to

I hazarded

last

turer

refrigerating package using

had climbed

roof

a

per

former

possibly

As

industry's

equipment responsible

E.

indications

$9 million.

•

cents

the

Present

net

Back in 1952 when total sales for the

•

621/2

of

sales

the

:

a

at

1954, almost the

'

high, although slightly under 1954;
Personal spending, which rose to
approximately $234
billion in 1954, well may
surpass that mark in 1955;




air conditioners

room

sales will be about the

con¬

year for the first time, I anticipate the majority,
Carrier's home sales will be for existing dwellings.

of

new

1955;

State-local spending for public works will
be

Inventory liquidation

-

Corp.

This is in the air

buildings have been constructed at

Gross

is expected

break all records in

economic

optimistic

value

—and

1953

up¬

are:

total

W. G. Vollmer

moderately

the business horizon which

the

conditioning

minimum

cooling

a

on

quarter.

ing this

throughout 1955.

The

rate

condensing, located out of doors. ....
The existing home, rather than the new one, is fast
becoming the major part of the residential market. Dur¬

room

the next 12 months.
This year the

production.

Board, Carrier

condition.

connected to

con¬

accuracy—prophesy the trend of business

and

and

dur¬

steady

$22
million
homes
previously have been consid¬
too
difficult or expensive to

a

tower

a

Encouraged by good business in 1954, the National
Supply Company has entered 1955 in a soirit of con¬
servative optimism. An evidence of this was the recent
action by the Board of Directors
increasing the dividend

heating systems employ¬
ing "wet heat."
Carrier Corporation, pioneer and

with

optimism.

the

favorable factors
ness,
hard

the

inflation

continued

a

business

of the

much larger than a room

research.

of

A.

WAMPLER

Chairman

newly-developed
Carl

general standard of living as
result of new technological improvements

creased

in

mild

with

be air conditioned.

in the
a

1955

potential, the residential
market, has been doubled. And all
homes of any size or type may now

rise

for

Chairman of the Board, The National

by

The

air--

same

years.

ditioning of existing homes currently

pop¬

homes

continued

a

prior

air

means

costs

represent less than 15% of the industry's

opinion that there will

our

$14 billion market is opening up.

This

for installing

space

piping

paying

or

continue

greatest

year

continued

more

goods,

more

de¬

conditioning industry enters the mid-year
of the 1950's which I have prophesied will go down in
history as the air conditioning decade, a brand new

air

production.

beyond

war.

major

no

in the immediate

as

CLOUD

ered

at

increase in

modest

a

automobile

major

no

will

Government

rise

air

line oc

we have normal weather this
spring and early
the number of units sold should cTimb to about
1,100,000 in 1955. Although room air conditioners are
the industry's most widely known
product, they will'

also

are

stead

high levels, business inven¬

and

they

see

increasing, continued defense

spending, and

be

ing

which

maintained

part of the rental

up

Sales

-

approximately

dollar.

optimistic observers

more

be

will

be

economically

growing competitive struggle for

the

business out¬

industry manufacturer, has
developed for introduction and im¬
mediate sale in 1955 equipment for

the

the

construction

There will

It is

served

comolete

a

Weathermakers for air conditions

which may be far above.

preparation for defense at the

&

,

summer,

There

(3)

the

new

ing suites of offices in older structures where the water
supply is inadequate, or for those who do not want to

pression.

Vennard

the

operating his system
to wait for the entire

Provided

(1)

Edwin

permits

of

by Carrier is

self-contained

tower,

respect to the

Carrier

cost

buys without having

Also announced

leading

unbalanced Federal budget and with

he

by

the

learn

to pass.

cooled

give

(2)

As

business
that

the

before

conducted

to

owner

season

beliefs:

our

rate

Many observers feel
business will be good in the first half of the
Others see weaknesses in the economy that may

project

home

assumptions although these

President

to

as

search

about 900,000 units in

an

1955.

year

po¬

VENNARD

With

determining average seasonal cooling cost
conditioning in any home. The major re¬

for central air

look for 1955, first we make certain

level

Youngstown, Ohio

outlook

for accurately

volume of traffic

the

by

President, The Dollar Savings & Trust Co.,

*

Stimulating the purchase of new homes with complete
year-round air conditioning systems in addition to lower
mortgage rates, is announcement of a scientific method

President, Middle West Service Company

ULLMAN

W.

for the wealth-producing

EDWIN

a

—

CARL

residences.

is

available to
railroads, as well as to other modes of transport,
show a moderate improvement, and
(3) competi¬
for the nation's traffic will grow in intensity.

was

the

attitude of confi¬
dence for the new year, at the same time it presents
a
challenge to thoughtful people in business and agri¬
culture
a
challenge to appraise markets, to control
costs, to meet competition, and to maintain our high
level of productivity and prosperity.
The

that

considered, it seems reasonably evident
business in 1955 will be somewhat better than

both

degree

some

yearly; (2)

four children

or

Everything

be moving upward.

spending seems to

three

tentialities of this region are great.

public and private construction is projected. Disposable
is at a record level, and personal consumption
consumers'

I, therefore, expect comfort air conditioning
of industrial p'ants to begin this
year to show its truly
great potential, which long range, seems second
only to

development of the Southwest continues
progress will

income

and

of 2,750,000

with

for many years,

the cost of produc¬

ing goods.

much

a

volume

large

A

efficiency will be required to reduce

the predictions are that this

and

continue

ago.

plentiful.

expected to be spent

are

(1) that the rate of popu¬

shows

excess

families

Money conditions are liquid and stable,
readily available at low rates.
Capital
is

reach

to

have the ability to pay for them.

The prospect for world
peace has improved.
A substantial
inventory liquidation has been ac¬

investment

expected

are

increasing in the middle and higher income groups and,
(3) that there is a desire for better homes by those who

12

past

outlook

encouraging

year

Arnulf Ueland

for

the

will

business

of

tone

months

and

1951.

improved

more

lation

the

smallest

activities

Thursday, January 27, 1955

factory whose alertness and competent effort are equally
important. I believe there will be intense competition
among manu acturers so long as the
promulgated pro¬
gram of co-existence continues to survive.
Maximum

repairs and modernization.

The Census

some

a

construction

billion, while about $13 billion

Minneapolis, Minn.

spite of the dire predictions of certain politicians,

only

in 1955

$39.5 billion, which is 7% above the 1954 record of $37

President, Midland National Bank of
In

home building

new

1954;

over

:..

cbaries

A. Ward

our

business

our

sales

barometer

Remembrance

are

be¬

Advertis¬

ing services touch all lines of business
throughout the United States."

Number 5398

Volume 181

J.

...

to consider other such magazine programs, some

WARD

B.

(515)

Chronicle

The Commercial and Financial

of which

be added to our schedule in the coming year.
The increase in our usefulness to advertisers and pub¬

may

President, Addressograph-Multigraph
We have

for

orders

new

Corp.

of
supplies, witn ascending

most successful calendar year

a

machines

in

volume

dollar
in

completed

and

October

November,

and

culminating

high in December. Add this to the
favorable predictions of most econo¬
mists for the current year and we

all-time record

an

have

could

in

business

our

total

a

We
of

firmly believe we face a year

but our thinking
the universal realiza¬
division of our business
is no such thing as in¬

promise,

great

is balanced by
tion in every

that

there

growth and prosperity. We
business atmosphere

evitable

feel the healthy

the

for

predicted

1955—al¬

year

though important—is just a plus fac¬
tor in our favor
and 1955 will
.

.

be

successful

a

plan
J. B. Ward

and

do

.

year

the

for those who

things

that beget

of the advertising dollar, or a total of $1.3 billion
a national advertising budget of $9.2 billion. This

14%

out of

is

an

increase

continuous effort

in scope and power, so grows our
broadcasters to us this medium for the
common good.
In 1955, NBC will conscientiously im¬
plement its policy of "enlightenment through exposure,"
which calls for the integration of cultural and informa¬
tional values into entertainment programs throughout
our schedule.
We will continue, for example, to intro¬
great operatic music and ballet into our comedy
variety programs, so that viewers will have the op¬
portunity to develop their appreciation of these arts.
In addition, we plan such special features as color pro¬

duce
and

in cooperation with the Metropolitan Museum of
a series presenting the history of the first half
of the Twentieth Century.
^ *

grams

Art and

Bowes, it seems

price,

as

whole,

a

American

1955

industry

is

The

generally.

a

people,

oppoitunity
of

standard
the

have
-alert

to

as

hard

the

have the
their high
businesses

to iniprove
living; our

industry.
of

tinuation

alert firm

every

growth
Frederick

Weisman

industry will

long

in

SYLVESTER L. WEAVER, Jr.

move

into 1955, those of us in

in

vances

the

with

dicted

a

industry can be pre¬
fair amount of cer¬

tainty.
year

into its own.

other

color

brings a new di¬
mension and new prestige to their
that

tisers

selling

opened,
America

was

color

facturers.
S. L. Weaver,

Jr.

color

campaigns.
the Radio

As the
year
Corporation of

delivering its new 21tube to manu¬

television

This 21-inch tube, the

overwhelmingly

preferred

by

size
the

public, will add tremendously to
It is estimated that by the end of
250,000 color receivers in Amer¬

color set circulation.

1955 there will be about

ica's

homes

and, with

the certainty of group viewing,

expect more than a million viewers to spread the
word on color after each major color performance.
By
we

can

the end of 1955,

112 stations of the National

Company will be transmitting in color
stations will be originating their own

Broadcasting

and of these, 21
live color pro¬

grams.
year, for us at NBC, will see the expansion of
participating programs.
We will develop and ex¬
tend still further the "magazine concept" of program¬

The

our

which was designed by
small advertisers alike and to

ing,

audience.
bination

NBC to serve large and
attract the total American

This will be the first full year for our com¬
of magazine

programs—"Today," "Home," and

"Tonight," which already account for a full third of our
total network time.
These three programs have suc¬
ceeded

beyond our expectations as testing




1953.

mined

Texas

M. WILLIAMS

About

grounds for

expansion

the

by

Frasch

The gain in total

in

1953.

from

The

very

The

the

of

projects

tons more
sulphur
operated by

long-range;

mine at Chacahoula dome, to be put into opera¬
several projects

tion by Freeport early in 1955, as well as
to

sulphur from sour natural gas and refinery

recover

gases.

These

projects will add still further to the pro¬
of the industry.
In the new year,

new

ductive

capacity

sulphur

consumers

confidence

with

look

can

the

to

prospect of ample supplies of this essential raw material.
JUSTIN

WHITING

R.

>

Chairman of the Board, Consumers Power Co.

improvement
employment and production during the first half
1955.
Business in general for the year should be at
indications

Present
in
of

point

better level than in 1954.

a

outlook

term

indicated

the

for

Power

sumers

continued

to

Our confidence in the longCon¬

area

Company

is

serves

by the fact that we have
construction
expenditures

planned

amounting

million for

$74

to

1955.

This is the largest program we have
ever

had.

Included
unit

new

Plant

in
at

near

this

construction

John

the

for

ready

C.

is

a

Weadock

Bay City of 156,250 kilo¬

watts of capacity.

This unit will be

service

early

in

1955.

Construction will go forward on two
more units of the
same capacity
at
the

C.

B.

Cobb

Plant

near

Muske¬

One of these is planned for
operation in 1956—the other in 1957.
gon.

addition

will

will

of

also

these

units

J"8**" k. Whiting;

will

substantial additions

construct

to

continue

tinue at the

Sulphur
L.

M.

Late

Williams, Jr.

put into operation in February.

other than salt
dome deposits reached an estimated 1,150,000 tons, an
increase of about 50,000 tons over the previous year.
Approximately 350,000 tons represented sulphur recov¬
ered from sour natural gas and refinery gases, 400,000
tons sulphur contained in pyrites, and 400,000 tons sul¬
phur in various forms from other sources.
Sulphur is one of industry's most widely used raw
materials. In one form or another, it is indispensable in
the production of fertilizer, chemicals, paper, steel, gaso¬
line, rubber, rayon, paints and pigments and almost all

im¬

and

our

sources

in

heating

and

residential

the past year continued high,
paralleling general business activity. The pattern of its
use
by industry remained relatively unchanged. About
four-fifths of the total consumed in the United States
was
converted into sulphuric acid — the workhorse
chemical of industry—and the remainder was used in
elemental form or in other compounds.
Abroad, the demands for U. S. sulphur increased
sharply in 1954. It is estimated, on the basis of ten
months' figures, that exports reached
1,600,000 tons,
compared with 1,242,000 tons the year before.
The
United Kingdom and Canada received the largest amount,
while other major recipients included France, Australia,
New Zealand, Brazil, thq Union of South Africa and

1954,

25,000

customers

additional
authorized

were

these have already been connected.
than 50,000 applications for space

hand.

We

tomers

probably will add
during the year.

Nineteen
a

hundred

good normal

well

con¬

and

more

natural
and

gas

some

space

90%

We still have

heating

service

heating

space

fifty-five should

of

more

prove

on

cus¬

to

be

year.

J.

C. WILSON

f

President, The Haloid Company
We at Haloid believe that the outlook for business in
our

field, which is primarily that of office copying, is
Our photography and photographic
products follow quite closely the pattern of general busi¬
ness, while those used in our new
process, called xerography, are fer^joying a sharp upward trend in sales.

quite good for 1955.

We believe business

during

abroad was the start of
sulphur production on the Isthmus of Tehuantepec in
Mexico. This marked the first use of the Frasch process
outside of the United States.
Mexican Gulf Sulphur
Company began production at San Cristobal dome and
Pan American Sulphur Company at Jaltipan dome.
In

building may

1954 pace.

other necessities.

Belgium.
An important development

in this

undertaken

exceed $5 million.
Operating revenues in 1955, we believe, will exceed
1954 by approximately 8%, Many of our
existing in¬
dustrial customers
are
planning substantial increases
in loads.
Commercial building activities, we expect,

the largest sulphur pro¬
continued to be the leading
mine.
Next in order came Freeport's Grande Ecaille
and Garden Island Bay mines.
The latter began opera¬
tion late in 1953 and produced in excess of 500,000 tons
in its first full year. Another new mine, Freeport's small

Consumption

are

will

Frasch

output of sulphur from

* ?

much less favorabld
than the big, successful properties developed in years
past. The deposits are leaner and less accessible, the
construction and operating costs higher, the risks greater:
Finding and developing sulphur has become, and will
continue to be, a very much harder job than it formerly was.
'
!"
V:"*■:
operations generally

new

substations, transmission and dis¬
tributing facilities. In the gas department, additional
natural gas distribution facilities will amount to about
$12 million and general items, including new buildings,

ducer,

Nash property, was

from the

is coming

and relatively small mines.

newer

provements

hot-

Company,

of the supply

proportion

creasing

.

output was made

mines

13

requirements from the output

few minues, principally two. Now, although
these two mines are still the largest producers, an in-»
a

We

350,000

about

tons,

has brought what may be
sulphur. Not long ago the nation

bring Consumers Power Company's generating capacity
to 1,865,968 kilowatts.

of

possible mainly by an increase in
production of sulphur from these
Frasch mines to an estimated 5,500,000

other sources

program

"new era" in

a

The

6,243,000

four-fifths

water process.

The

will see color television
The spectaculars
programs have ex¬
cited new interest on the part of the
viewers and have proved to adver¬
The

come

inch

another

industry, after a year of record pro¬

Boling dome of Texas Gulf

look forward to a year of

and

have

five companies.

-

television and
exploration and ex¬
pansion.
We will explore further in the direction we
took in 1954 and expand in those areas which prove most
promising.
Some of the major ad¬
can

to

production came from the salt
deposits
of
Louisiana
and

came

Broadcasting Company

President, National

of

dome

than

we

determination

compared with

tons,

tons

this

competitive in the months ahead. We can
anticipate increased activity particularly in advertising,
salesmanship, merchandising and packaging. Promotion
will be geared to the changes taking place at the retail
level; will give consideration to homemakers' increased
knowledge of nutrition, the growing interest in timesaving foods and the special appeals needed to move
food products from self-service grocers' shelves.
highly

As

expressed our faith

duction, begins 1955 with sufficient productive capacity
to satisfy all needs of consumers both at home
and
abroad. Total U. S. output of sulphur from all sources
in
1954
is
estimated at 6,650,000

last year.

radio

he al¬

bring out new products and by

The U. S. sulphur

the food in¬

This means that our

We have

LANGBOURNE

accelerated pace.

tivities that contributed to its

be

as

President, Freeport Sulphur Company

industry will expand the ac¬

in the

boss,

when

setting even higher
sales goals and backing them with record advertising
support. We are confident 1955 will be another good year.
to

They indicate a con¬
economic trends that

dustry in 1954 at an
I am confident that

the

easy

economists

which

the growth of

favored

is

comes

good year by increasing our expend¬
itures in research and development

W. H. Wheeler, Jr.

expect to prevail in 1955 have par¬
ticular interest to those of us in the
food

never

to

ago

years

obtain sulphur from

to

able to fill its sulphur

was

the

should be in a healthy econ¬

omy.

and

opportunity to prosper if
the potentials of a chang¬

ing market.
The conditions

customer

ways

consumers,

on

and common sense, the
work and enthusiasm—

success

five

about

begun

greatly multiplied.

termed

courage

for

and the increase in population are two favorable
factors that will influence expansion of business activity.

depends

1955

in

Success
same

efforts

of

undertakings

was

management,

that prosperity depends first
production, efficiency and bold,
aggressive selling, turned 1954 into
a very good
economic year.

power

Our

and

on

good year for
higher purchasing

be

to

as

izing

WEISMAN

going

well

pushing aside the overtones of pessi¬
mism that opened the year, and real¬

same

that

believe

as

labor

American

President, Hunt Foods, Inc.
I

of

process

for Pitneyto me that 1954 was a far better year
than many of us thought it would be.

country

Addressograph-Multigraph machines and
supplies is one of office automation, which assures re¬
duced costs.
We have been preaching this doctrine to
business executives for the past 62 years, and you can
believe me when I say, we buy our own selling story.
R.

series

a

increase sulphur productive capacity. During the period
six new Frasch mines were developed, and the number

expansion program have been completed, although some
efforts are still in progress. Among these are a Frasch

Inc.

Pitney-Bowes,

President,
the

For

Salinas dome.
/ * ■'
production record was largely the result

The 1954 U. S.
of

"

Frasch process plant at

a

Most

WHEELER, Jr.

H.

The story of

FREDERICK

build

The

as

reduce expenses.

to

advertising

of all

As television grows

W.

ratio between cost of goods sold and selling

7%

addition, Gulf Sulphur Corporation announced plans to

budgets went into television.

Management executives are more

proper
with a

when

1954,

over

success.

acutely conscious of the need for economy in operations
than ever and imbalanced planning will not do the job.
Increased sales volume must :be correlative with the

during

that

estimates

staff

responsibility

over-confidence.

of

search

NBC's re¬
1955, TV will take

in increasing earnings.

reflected

will be

lic

55

generally will

be

moderately better in 1955.
The
growth of population provides a solid
demand for goods and services from
additional
people, new households
and businesses.

to

industries

New companies and

being established
supply the products that have been

new

are

i

recently developed.
As
crease

Joseph C. Wilson

ity

in

.

*

and

companies. in¬
size and complexity, they

industries

require more paper work in "order to
operate efficiently. Copying systems
are
an
integral part of such paper
wbrk because the increased complex¬

that more individuals have a voice in impor¬
decisions and must have information promptly.

means

tant

Much

^

emphasis is now being given to labor-saving
and automation.
One of the features of our

machines

products is to make possible

saving of time and money
Continued

on

page

56

56

The Commercial and Financial

(516)

Continued

from

The year 1955

55

page

marks

The

through copying with light rather than manually.

primary target of the cost-cutter in the past has been
the factory, but now he is turning his sights more and
more toward savings in paper work.
The Haloid Company and others in this field are hard
at work on new products that will do new jobs and do
old

jobs

day

the

amount

of

In

summary
reasons

then
for

feel that there are four fundaoptimistic outlook in 1955:

we

this

year

will hear

we

more

probably will continue to be a flow
into the market, but the bulk of
investments of sound quality, and the

find

confidence

of

American

the

people

in

the

activities

of

people

the

but

the

in

-

will

more

American contribution

world of ideas—is

the

to

the

on

products.
(3) New products are to be introduced this year.
(4) And finally, the prospects for business in foreign

shares

better than

they have

in

the

employing him—this is truly a
type of economic partnership that can only bode eco¬
In

1893 Frederick Jackson

rian, announced to
I. W.

had reached its last frontier.

WILSON

perhaps he

sense

President, Aluminum Company of America
of the aluminum

The future

industry continues to be

bright with promise. New markets for this light metal
developing steadily. Established uses are achieving
healthy increases. The market outlook for 1955 is good,

are

and

potentials are also
most encouraging.
The rate of aluminum shipments
long

range

civilian

for

in

use

1954

should

amount

to

approxi¬

mately 1,460,000 tons, which is more
than 16% above the record-breaking
tonnage of 1953.
ALCOA'S

windows today we are
limits.
In

1955

we

shall

limited energy who
try will develop? ,

The actual

new

extrusion

presses and additional wire, rod
manufacturing facilities were put into opera¬
tion by the company in the Pacific Northwest.
New
facilities
for producing tapered
aluminum sheet and
plate for the aircraft industry were installed at Daven¬
port, Iowa. Foil rolling facilities were expanded at the
Alcoa, Tenn., and Edgewater, N. J., plants.

and

cable

Placed

in

regular operation during

1954

were

a

new

ALCOA

chemical products plant at Beauxite,
Ark., and
a plant at
Lancaster, Pa., for the manufacture of screw
machine products and aluminum fasteners.
In

cooperation with the Air Force Heavy Press Pro¬
gram, ALCOA began operation of the world's largest

(14,000-ton)
Also,

extrusion press at Lafayette, Ind., during
installation of two great forging presses
(35,000 and 50,000-ton capacities) was progressing to¬
ward completion at ALCOA's Cleveland
plant as part
of the Heavy Press Program.
1954.

The

past

has been

year

notable

for

advances

in

the

development of aluminum alloys, processes, and finishes.
Market gains have again been made in
building prod¬

ucts, transportation, electrical conductor, packaging, and
in many other directions.
ROBIN L.

WINKLER

For
been

manner

and

than

more

one

year

the

American

people

so

obvious

politicians

that

have

in

a

analysts and seers, economists
at odds to explain it.
The

been

stock

market

averages

at

are

all-

time

highs.
In a constant rush to
explain the high prices the broker¬
age

fraternity

maintains
relation

surely
basic
to

that

to

to

the

the public

caution,

prices

earnings,

there

fidence

advises

is

a

fair

are

etc.,

reason,

yet

etc.
a

in

But

cause,

high prices—and basic
demonstration of con¬

manifested

by

the

high

prices of stocks.
For

three

the

first

decades

time

the

in

more

American

than

both

in

....

activity
the

new

.

,

in

of soft
three

past

in

view

of

operating
yardage

sales

different

of

Bigelow-Sanford and the

woven

important

some

need

manufacture,

carpet
for

of

areas

greater

tradi¬

the

and

in

capacity

Witness

the

new

schools, the

the foundation of all—the
American

the

tremendous

And look beyond
churches and

new

family. The Ameri¬
family is becoming larger today—because
there is
the feelmg that we are
building for a
can

tomorrow that
will not be lost to the bombs
of destruction but
animated
by the atoms of peace.




calon)

The

soft-surface

floorcovering in¬

dustry is no longer confined to the
production of an all wool carpet wo¬
conventional carpet loom. To

ven on a

the three conventional

fourth,

a

tufting
of

small

bath

tufted
mat

weave

carpet

business

has

few years

ago); broadloom widths; the

of
fibers other than cotton; and the development of machin¬
use

that has brought new texture to tufted carpeting.
These
developments, coupled with changing
style

ery

trends have produced substantial

changes in the relative
yardage volume of different types of soft-surface floorcovering being sold in America today. Prewar domestic
woven, wool floorcovering accounted for nearly 100%
of soft-surface sales. During the past year approximately
64% of soft floorcovering sales were in domestic woven
goods, 29%

in tufted and the balance of 7%

The Axminster
of

total

loom

soft-surface

which
sales

prewar

imported.

accounted for 51%

provides about 25% of
the carpet sold. Although velvet yardage has increased,
its percentage of total sales has declined from 26% to
now

22%.

Wilton carpet has increased both in yardage and
in percent of sales, from 12% prewar to 17% of the total.

carpet sales in 1954

Tufted

year.

increased

from

were

about 12%

broadloom

sales

approximately

15

on

below the
the

million

other
square

yards in 1953 to around 25 million square yards in 1954.
In

addition there

Several

"\

■

made fibers.

rious
a

of

The all wool concept for carpet has receded
new materials which make
possible a luxu¬

handful

square

of

yard.

carpet which

retails

for less than $10

All wool carpets constitute less than half

total soft-surface

floorcovering sold today. Within a
shorter space of time, cotton too, has given way. Two
years ago cotton
was
the only surface component of
tufted carpet.

In 1954 cotton accounted for only 35% of
broadloom tufted production. The balance of 65% was

in carpet rayon-nylon blends and other man-made fibers.

The production of lower cost, better styled

square

yards

are

of

presently estimated at about 86,000,000
which 55,000,000 square yards are of

conventional types, 25,000,000 square yards of broadloom
tufted rugs and carpets, and the balance, imports.
The

backlog of orders following World War II and the

demand which
stimulated

yards of

came,, with the outbreak of war in Korea
production of over 80,000,000 square

annual

woven

important merchandising steps

(1) Members of

carpet.

The greatly reduced 1954 sales

are

industry have pooled their efforts

our

for the first time to drive home to the
public the
fits and value of our

product

(the beauty,

fort and warmth provided
by soft-surface
in the largest
advertising and promotion
devoted to

our

products.

bene¬

quiet,

com¬

floorcovering)
campaign

ever

The Carpet Institute campaign

is directed toward

promoting the sale of all soft-surface
carpeting—woven and tufted—man-made fibers and cot¬
ton

well

as

(2)

wool.

as

Instalment

promoted

in

selling

1955

on

of

rugs

larger

a

and

carpets

scale.

Carpet

little

as

(3)

plans tai¬

marketing methods directed to wider
products are being introduced.

our

be

average living room can be bought
$10.00 down and $8.00 a month.

as

New
of

sure

will

retailers

offering complete promotion
financing arrangements. A good

and

expo¬

The outlook for soft
floorcoverings in the year ahead
is encouraging. A rise is forecast for
consumers dispos¬
able income in 1955, from the current rate of
$254.5 bil¬
lion
to $261
billion by next June.
Credit conditions:
should remain good. It is
expected that more than

one

million

homes

new

household

will

formations

be

will

built

next

approximate

and new
million.

year,
one

Prices of the carpet

steady, and

our

ufacturers'

industry's raw materials have beer*<
selling prices should remain stable. Man¬

inventories

inventories

are

in

are

line

with

sales.

Retail

reported to be in good shape, but

the

on

low side.

During the past five

years the increase in soft floorsales (woven and tufted
combined) has kept
with the rise in consumers discretionary

covering
pace

These factors plus the efforts of

power.

increase sales point to

spending,
industry to>

our

better business in the year ahead.

•

1

H.

B.

WOODMAN

President, Interchemical Corporation
Realization of the
is

tempo of industrial activity which

generally expected for the first half

vide

Interchemical with
manufacturers of

are

others—and

our

Our

is

our

of

a

of

1955 will

pro¬

high level of operations.

We-

chemical

coatings—printing inks,
finishes, textile colorants, coated fabrics and

industrial

market

entire

very

output goes to industrial users.
diverse so it is not surprising that

sales tend to follow the Federal Reserve
Board Index

Industrial

Production, adjusted to exclude heavy in¬
dustry and armaments since we do not serve those'
seg¬
ments of

industry.

Several factors encourage us to
hope that we may
do better than the industrial
average. One is the ferment
of innovation and
development in the packaging industry
which provides a market for more than
a
third of our

output.

The

of

cans, of
and cartons

constantly increasing and diverse
uses
transparent packaging films and containers
generally

offer

us

many promising oppor¬
inks, enamels;
sanitary linings which are used for decoration and
protection. Nearly all segments of the
packaging indus¬

tunities to expand our sales of the colorful
and

try

are successfully enlisting the
products in the mer¬
chandising revolution which started with self-service-

stores.
We believe that

a

number of

moves

successfully

pleted in 1954 will work to our benefit in 1955.
the

year

coverage

we

took broad steps which

yardage in small

Changes of equal importance have taken place in floor-covering materials. In addition to wool, floorcoverings
employ cotton, carpet rayon, nylon, saran and other manin the face of

carpet

Rayon

and

new

our

is substantial tufted

rug sizes and bath mats.

opera¬

being taken in 1955.

the

vastly improved in recent years, has
enlarged the selection of well styled carpets in the wid¬
est choice of colors at low prices. The attention of manu¬
facturers to product improvement has led to durable
type backing (as distinguished from the flimsy canvas
a

productivity and correct
manufacturing facilities.

tufted

our

Hartford

been

prewar,

tufting machine,

back of

increase

woven

hand, the company's tufted carpet

groups,

process in 1954 accounted for approximately 29%
soft-surface yardage—and is still growing.
The

all

are

costs,

is manufactured by the
plant which is operating at
capacity to supply staple rayon to other manufacturers.

constructions.

a

for

company's

new

sales for 1954

people

pause,
take
spiritual
out at the horizon and

the construction industry.

houses

the

over

paradoxical

seems

tional

From

offset.

industry, including Bigelowtaking decisive steps to reduce

Summerville, Ga., were expanded in 1954. Fur¬
ther expansion of the
company tufted plant is currently
underway to meet market demand. Carpet rayon (Vis-

for

Inc.

morrow?

to

see

Winkler

Co.,

Peace. Does a man build a
house
if he thinks it will be
destroyed to-

able

breath, look
L.

Carpet

carpet industry with excess capacity

added.

to

the

tions at

types of soft floorcovering have left

Wise

and

the imbalance of

unable

of

simple
quality carpet for the

WISE

soft floorcoverings has stimulated carpet sales. Industry sales in
the years preceding World War II averaged about 1.5
square yards per family.
Today consumption is close to
2 square yards per family. Total soft-surface broadloom

are

Robin

D.

relative

D.

have

services

results.
However,
changes that have taken place in the

James

members

overhead

carpet—a burden which increased

been

have available for the first time several
lored to their needs and

l'loorcovering

hand

have

their

woven

have

will

recent

preceding

demonstrating their confidence in the future

Sanford

un¬

truly tell what American indus¬

can

years

Woven

Partner, Bernard, Winkler & Co., New York
City

our

of almost

source

increase in square yard consumption

affected

Two

from

Carpet manufacturers have weathered a period of dif¬
ficult adjustment to far
reaching changes in the industry,
and can look forward to
improved operations in 1955.

low

conditions, which adversely
the supply of hydroelectric
power in
that area. ALCOA's $360 million expansion
program, started in 1950, neared completion in 1954. The
company's expenditures during the year on new facilities
amounted to approximately $65 million, including cer¬
tain capital expenditures not a part of the original ex¬
pansion plan.
The program has included considerable enlargement
of ALCOA's primary aluminum smelting capacity, and
major additions to fabricating and processing equipment.
The new smelting facilities have been completed and
are in full operation.
Expansion of the company's alum¬
ina producing facilities has also been finished.

look

we

frontier that is truly

a

this

Bigelow-Sanford

water

Wilson

from

JAMES
President,

tailment of electroyltic smelting op¬
w.

geographical

narrow

as

closer to the constructive utili¬

come

zation of the atom—and

of primary
aluminum in 1954 is expected to be
about 665,000 tons, despite the cur¬

I.

but
witness to

without

production

erations in the Southeast due to

In the

right,

was

even

was

higher than in boom-year 1953. The
1954 production of primary alumi¬
num
by the industry in the United
States

Turner, the eminent histo¬
assembly of scholars that America

an

sales

Several

company

nomic health.

been.

ever

tufted

On the other

clearly the evolution of a unique
social system—a social system that can benefit by peace
to a degree our antagonists beyond the heavy portal find
impossible to believe.
Our dynamic capitalism — the
see

verge of tremendous growth. The time is here when the
laborer, the union man becomes a capitalist. When a
labor union buys a bank—when a factory worker owns

are

tion facilities in

strength of the stock market.
We

square yards of woven carpet in a
normal market indicates the extent of idle
produc¬

more

continuing

(1) We believe that general business will be improving^
(2) Much attention is being given by business man¬
agement
to the cost-cutting attributes of our major

markets

volume of 55,000,000

money

American future will be reflected not only in the every¬

pace

an

will

continuing

industry promises to step up that pace considerably.
We look for increasing foreign markets as the econ¬
omies of the free world improve.
mental

There

it.

speculative

funds

of change is dynamic; and
of research and development effort in our
The

affirmation—in

of

about

better.

will be witness to the greater verbali¬
We have begun to see the physical

zation of confidence.

Chronicle...Thursday, January 27, 1955

finishes

and increase

industry,

to

offers

technical service

Appropriations for

provide.

will both extend

volume in the industrial

industry which

an

rewards for the type of
ized

our

com¬

During

substantial

we

are

organ¬

plant, and for

new

improvement of existing facilities, for 1955 are at

a

new

high for Interchemical.
We

continued

to

duruing 1954 and
technical
our

augment

we

accomplishments

research

organization

increased flow of the

an

which

so

important in

chemical coatings service to industry.

Our research

program

where

ness,

We

are

not

now

characteristics

to hold

appear

believe

that

is demonstrated

fields

common

with

promise for

our

busi¬

present

us.

Interchemical's

faith

in

the

future

by its continued and increasing invest¬

to customers and

a

efficient plants, better service

vigorous and effective research

pro¬

Our diversification and growth have been in the

industrial
are

into

engaged but which, because of

ment in larger and more

gram.

are

contemplates gradually broadening

we

certain

We

our

anticipate

field, which we are best equipped

to

looking forward with confidence to what

lieve will be

a new era

of.usefulnas*.

.

serve.
we

be¬

Volume 181

Number 5398

-

Southwest-Northeast route case now before the

In the

tinue

extension

increase which will boost this year's
40,000,000 passengers. Logi¬

passenger

total to

cally, further gains can be expected
in other types of traffic—air mail,

air express.
Between 1949 and 1953, the sched¬
uled airlines of the U. S. more than

air freight, and

totals—from

doubled their passenger

35,000,000. Last
year's 12% increase added up to a
o,000,000 passenger gain.
If their growth continues, sched¬
airlines

1965 will carry

by

an

double last
year's total. As a "growth industry"
which has not yet achieved its full
potential, air transport, in my opin¬
ion, can look forward to steady an¬
nual
gains over the next 8 to 10
70,000,000

estimated

C. E. Woolman

—

expansion very
likely will be tied more closely to the normal population
growth and other factors which influence the overall
period, the industry

After that

years.

safety,

in

records

well as in the

as

and expanding

of business will continue and that business in
be better than in 1954. This feeling is based

will

1955

current trends and expected developments in
level of spending by consumers,

upon

have

not

$30,000,000

provide more and faster serv¬
entire system. During the year ahead we

Convairs will enable us to
ices

our

over

services, as well
Caribbean vaca¬
sold package tours to nearly 13,000
expect another 20% increase in

expect to expand our low cost aircoach
as our services to the Miami Beach and
tion areas.

In 1954 we

vacationers,
vacation

and

we

travel this year.

Travel credit

In the
nomic

prove

plans, now offered by

all major air lines,

an

plan, which permits a trip to any
point in the world served by scheduled airlines to be
purchased with no down payment and paid for in 12
or more monthly instalments.
Local banks in our major

Fly Now-Pay Later

route

the

finance

cities

plan

at regular bank

interest

businesses—will face keener

Our industry will benefit from
salesmen take to the air in

competition during 1955.
increased

travel

more

as

search of business.

continued

were

born

to a good year in 1955,

economic growth of the area

and

in which we have

pattern—the booming South

Wooten

H.

Ben

and Southwest.
rapidly expand¬

services to

additional competitive air

ing region is for

financial and industrial centers of

the

pattern,

but

the

by

the

much

is
rate

trend

faster

as

"Many years have
our

One of the soft spots
1954

was

other
oil

areas,

production.

11th

Federal

for

outlook

As a

Reserve

is

1955

mittee

on

Large stocks of refined

was

the

about

4%

below

Petroleum

same.

offset by

a




.

/

- -.

show

greater and more

a

already been announced for 1955, and may be placed on
rice.
The current outlook is for a 2% or 3% drop in
1955. Continuing drought could
reduce income still further!

in

the

banking, the outlook is

11th

District

very

reflected

was

optimistic. Growth

in

9%

a

increase

that existing custom¬
In¬
dustrial sales show a higher gain for
the latter periods of the year than
for the earlier months, again point¬
the greater use
ers

Wm. F.

Wyman

and

1954

a

10%

modest increase in consumer credit, and
inventory liquidation will result in increased

credit,

the end of

deposits in

a

are

tied

rates

should

strongly

remain

Federal

to

and there have been
is

some

stable.

Reserve

However,

they

monetary policy,

signs that the Federal Reserve

shifting from its policy of "active ease."

may

This
are

industry

If so, rates

try.

with that seen

From what has

evidence

that

pessimism as
and

there

is

the

financial

following areas as

and

industrial oli¬

garchies, and highly concentrated forms of
and

business

management.

"Business

already taken place there is good
opinions showing extreme

earlier

to future

ments.
new

business levels were in error
that the future may

been in even greater error.

Robert Huff On Visit

To East Coast
Vice-President
Angeles, has
been visiting in New York City
for the past week, staying at the
Waldorf, and will stop off at Chi¬
cago en route to the Coast calling
on
insurance executives, dealers
and
brokers.
Mr. Huff is veryRobert

of

government regulation to
public interest?*

"Methods of

attempt to attract votes
familiar technique.
«
>

Obviously
too

an

on

insurance stocks.

eliminat¬
R. C.

ing competition.
these in the

H. Huff,

Fewel & Co., Los

bullish

practices aimed at limiting or

that

in business here in Maine
in other parts of the coun¬

good reason to hope

and monopoly
experience in light of recent economic develop¬
in

covered in

It is interesting to note

generally the recent upturn

study:

rise

the over-all picture and there
respective fields of

summary.

"Changing concepts of competition

"The

than a year ago.

concerned, which can not be

this

show them to have

become somewhat firmer.

the

are

in

making of the service.

both ways as far as

variations

detail

are

is, of course, only

has kept pace

business loans.

Interest

ing to a firmer trend

in

increase in
loans. These are record levels, and we expect the trend
to continue. There should be a heavy demand for real
bank

houses

new

steady gain

This comes both
being added and

•

.

farmers' cash income in

subcommittee of the Com¬

'

in all

ume

Acreage restrictions for cotton, wheat, and peanuts have

diverse opinions
the changing
most important that the

-

have moved forward and
represent new high vol¬
classes. Residential sales

for the year

only other weak spot in our area is agriculture.

member

In 1954,

Central Maine Power

•

.

residential,

industrial.

from

•

The

feels that it cannot overstate

Kilgore for

Comnany

stocks

continued loss of foreign

a

and

sales by

these

include

which

service,

commercial

The

1953.

had a some¬
As a result,

appraisals of 1955 show this more optimistic note.
An
interesting measure of such
business conditions
is provided in
sales
of electricity which utilities
make
to
their various
classes of

in states outside the Southwest.

from monopoly run
large letters across the recent eco¬

the Judiciary./

the

it had a year ago.

than do the others.

imperative necessity for the Congress to deal with
this issue immediately." — Senators Langer, - Kefauver and

firmer tone than

what

Company

of 1954, business generally

close

somewhat, and demand has increased, but

these factors may be

political history of this nation. The com¬

mittee therefore

the

At

placed pressure on southwestern
result, crude oil production in the
District

F. WYMAN

markets, increased imports, and/or increased production

danger to the country

nomic and

good year.

President, Central Maine Power

in the southwestern economy in

the petroleum industry.

domestic

the passage of time, and

wild is written in

for 1955

enthusiasm with a bit of

well to season the

WILLIAM

here than in the
The influence of

products at the beginning of the year, plus a high level
of imports and a relatively stable level of production in

anti-trust laws be examined.

"The

repair of old

need of building new

looking ahead with optimism

many

I believe 1955 will be a

caution.

unemployment in Dallas was oniy 3.5%
nonagricultural labor force, compared with a
national peak of 6.4%.

passed since the enactment of

structure of our

so

it might be

the

of

Hunting!

make it

facilities,

pressing

the

'

'

auto¬
for improvement

highways.

With

1954 peak

ing

in need of

economic scene,

indicate

and

up pressure

parking

conditions,

traffic

roads

rapid growth is especially evident in our own city. Dur¬

original anti-trust laws. Many

of the courts,

of

whole.

a

The Senators then listed the

Vote

build

mobiles and this will

super

optimistic

more

nation

developed our route

pressing needs of this

One of the most

key government,

and

in which we

...

be an increase of new

if there will

as

growth in this area. Thus, the out¬
look for the coming year is even

estate

Delta-C&S looks forward
to

a

believe will be

in 1955. This means better

of

As for

airlines—like other

free with his spending

looks

It

Southwest, the trend of eco¬
tends to follow the

tempered

rates.
The

in

in 1954 to spend

freely but saved it instead, I

business.

activity

national

have declined

added stimulus to vacation air travel
In 1955.
The surface has hardly been scratched on this
travel market. Delta-C&S on Dec. 1 introduced its own

should

shall

I

condense them

to

attempt

and

reluctant

brief statement.

major carriers, during the
past year completed fleet modernization programs with
the purchase of high-speed, pressurized aircraft, includ¬

10,000-mile system serving
Caribbean countries.
investment in 10 DC-7's and 20 Super-

"Chronicle"

the street who hesitated

in

man

money

more

a

contributors to recent is¬

the

of

The
his

expectation

examined .at length by

been

sues

in

than

1955

this

of

In

total spending

in

greater
bases

number of

the fin¬

major routes of our nearly
in the U. S. and six

be

The

1954.

the

business.

by

sectors

these

of

should

dis¬

ing the 69-passenger DC-7—fastest commercial airliner
flying in the world today. By spring we will have 10 of
these 365-miles-per-hour luxury liners in service on

and

government,
each

alert to supplying new funds

needed and I believe a little

curtail credit.

to

by

"A

to have confidence in our money

They will be

and reserves when

E. Worden

demand, money

remain easy.

There is every reason

bankers, I anticipate that the current

Frederic

;,

In spite of this increase in

indicated.

rates should

managers.
recovery

business loans

in demand for

crease

President, First National Bank in Dallas, Texas
Like most other

a

healthy. The demand for new
will increase. New mortgage
substantial increase in mu¬
nicipal borrowings and a healthy in¬
are

WOOTEN

H.

BEN

firm

housing

money

important stake in

an

prices should be stable and

is very

outcome.

the

Lines, along with other

Our

markets—has

that 1955

present it appears

Farm

public—and industry, looking South for

The traveling
new

equipment ever to span the skies, and total available
seats will be the highest in airline history. Delta-C&S

54 cities

year.

money, a

est

Air

good

a

nomic frontier.

that base level.

airline routes will fly in

be

to

out

perhaps in some instances
little.
The outlook for new

expand

and

the

should be better.

Northeast and the region

the transportation field. In addi¬
tion to lowering the base fare level, there is an ever-

Passengers on trunk

turned

1954

commercial ties between the
which is growing more rapidly
than any other section of the country.
The South and
Southwest today constitute this nation's greatest eco¬

strengthen

situation unique in

coach service operated at

expansion programs.

At

1955 will continue to

increasing volume of air

will create for the first

a

be one of the most
outstanding bargains available. Fares are lower than in
1929—taking into account the depreciation of the dollar

counts from

going forward
The un¬
employment problem should sh ow
improvement. The fear of a major
recession or depression has passed.
and industry are

with

generation.

ing in the future.

—a

I feel

1955 with

direct, one-carrier air link between Main Street
America and many cities in the South and Southwest
which now lack such service. More importantly, it will
time

passengers, were

Air travel in

to

that we can look
optimism. Busi¬

confident

ness

not only the future growth
of Delta-C&S Air Lines, but also the pattern of air
service which two vital areas of the nation will enjoy

number of

established by the air transport indus¬
try in 1954. Scheduled airlines last year flew a record
total of 21 billion passenger miles at a fatality rate of
only .07 per 100,000,000 passenger miles. This means
that for each fatality, the equivalent of 2,670 roundtrips
to the moon were flown without mishap.
Continuous
progress in electronics will contribute to even safer fly¬

quite
ahead

That decision will influence

national economy.
New

excellent.

is

brighter anticipation than we did a year ago.

with

months.

Approval of our application

1955

in

business

Hearings in the case were completed Dec. 15, and a board
decision will be handed down during the next 12 to 18

for the next

all of
agreed that the outlook for
We start the New Year

great many, in fact most

a

the forecasters this year, are

Philadelphia, and New York.

and

Baltimore,

ington,

14,698,864 to nearly

uled

routes

its

of

that

It would seem

Delta-C&S has applied for an
from Atlanta, Charlotte, Wash¬

Civil Aeronautics Board,

million

Auburn, New York

The National Bank of

scheduled

and President,

Chairman of the Board

nation.

steady annual traffic gains scored by the nation's
airlines over the past six years should con¬
in 1955.
It is reasonable to expect a five or six

The

E. WORDEN

FREDERIC

and

need,

in the airline pattern of the

thereby to fill a vital gap

Delta-C&S Air Lines

President & General Manager,
'

that

meet

to

seeks

Delta-C&S

Northeast.

E. WOOLMAN

C.

57

(517)

Financial Chronicle

The Commercial and

r..

control all

<Special

,

Day Opens

The Financial

LQS ANGELES,
C. Day

by an all

to

Chronicle)

;

Calif.—Richard

is engaging in a securities
offices at 315 Weft

hi icings from

9th

Street.

■

'

;

58

*

(518)

The Commercial and Financial
Chronicle...

in the

President Submits Economic Report to Congress
{

Council

cating

transmittal, he reports highlights of

of

Economic

department heads, indi¬

recovery.

with

the

contraction

to

was

tive
for

Office

of

the

President, and

revolving fund for advances

a

to
the states and
municipalities
for public works
planning.

take

Conclusion

the future and stimulated business

On Jan. 20, President

Dwight D.

multiplying

Eisenhower submitted tcfCongress
his annual Economic Report, pre¬

improving, re¬
technology are opening

search and

pared with the
Council
of

and

firms, consumers, and
localities
to
increase

public

assistance

of

the

the h

With

and
d

e a

government

In
of

$500 billion,

letter

e

In

accompanying
he-

already

will

Pres.

contrac¬

Eisenhower

expressed the view that

nation

toward

again

was

headed
economic

period
of
growth, which could, however be
seriously hampered by excessive
a

financial

speculations
and
shut
towns due to labor strikes. In his

ifetter the President listed

ber

of

proposals

to

situations

verse

continued

the

of

core

economic

ex¬

remedy

and

economic

num¬

a

to

ad¬

promote

these

of

goals is to create an atmosphere
favorable to economic activity by
encouraging private initiative,
curbing monopolistic tendencies,
avoiding
encroachment
on
the

private sector of the economy, and
carrying out as much of its own
work

as
is
practicable through
private enterprise. It should take

its

full

part

local

and

at

side

the

of

state

governments in provid¬

ing aooropriate public facilities. It
should restrain tendencies toward

progress.

The text

of the President's letter
transmittal accompanying tne
Economic Report follows:

inflation.

or

It

should

widen opportunities for less fortu¬
nate

citizens, and help individuals
to cope with the hazards of un¬
employment, illness, old age, and
The White House,
Jan. 20, 1955. blighted neighborhoods.
Last year the government took
Congress of the
.

To

the

United

Statess:

steps,

many

both

legislative

Act of

had

tation

1946.

of

improving

preparing this report, I have conditions

In

the

assistance

advice

and

of

the Council of Economic Advisers.
I have also had the advice of the

heads

of

executive

to

and

maintain

economic

encouraged people

high rate of ex¬
penditure.
The
opportunities of
competitive enterprise were en¬
larged; economic ties v/ith other
a

departments
countries were improved; the floor
and independent agencies.
of
I present
personal and family security
below, largely in the
was
words of the report
strengthened; and additions
itself, what
were made to our
1 regard as its
public assets.
highlights.

With

production

now

and

increasing

employ¬
a broad

on

front, the events of the past

year

by

of

our

the
the

and

economy

policies needed to promote sound
economic growth.

Today

was

one

contraction

The contraction

erv.

January,

concerning

1954

from

efforts

1954,

Economy

The year

sition

have borne out the major conclu¬
sions of the Economic
Report of
state

spending

be

expected;
experience

less

rapid

two

year,,

of

btate

and

was

large

reduction
expenditures.
The

ana

of

to

for

of tran¬

to

recov-

to

the

reduce

aggravated
in military

construction

ested

from

ever-widening

of

the

developed

property exWe are inter-

if

a

with

both

company

competitors
expansion and a

an

This

nrocram

free

the proposed capital ex-

are

penditures?

i

4

amour\t

i

to

keep

close

a

capital expenditures

the

proposed

thing.
Of equal importance is the method
continued economic recovery must of
financing such expenditures.
not be jeopardized by over-em- Can
it be handled through dephasis of speculative activity.
preciation
watch

Toward Sustained Economic

The

wise
•

4

•

1955

4

is

to

hnrrmtnnd

borrowing

for

course

incr

in

j

•

.

pro-

imparting
diate upward thrust to
activity.
Further

efforts

to

an

imme-

in

economic

not

a

the

sale

most

Fed-

expenditures, together with
increasing revenues from a tax

bpfore

base growing as the economy ex-

next

also

general

Progress

year.

be made

tax

barriers

funds

tax

some

reductions

could

then

in further lowering
to the free flow of

into

risk-taking
creating investments.
Government

and

job-

In

first

a

place

of

one

of

course,

sions

put

management,
personal

made

and

in

in

meeting of its own
longer period can be ar-

a

Existing

problems-Admit

^XISU"f

.

that

A

Vt

^

\

-

has them. And the good financial
anaivst

will

eventually.

fearn

Be

problems.

In

them

ahmit

frank

explain

—

solv(f

the

end, it will

be

done
the

to

beneficial

m0re

FnrppIlst.

Tf

'PPI?K

fn

tbat

mp

management need
makp ^fme tvnes of

corDoration

^nt fePar

to

reason

be

can

made

that

is

not

if

there

do

o(

_

of

and

such

exist.

men¬

uncer-

The

good

going to take
turns

out

you

to

be

variation when the final figare

available, if the forecast

maaP

hnnp^tl'v

X ^sklnce

Rut

will

hp

the

at

declaration,
say
lace in December, that the
management cannot give an esti-rmato

tbe

of

t^e

year's sales

December

figures

"because

are

not yet

in »

of

Arguments

by him.

impres-

Against

Expanding

Information
I

have

argument

*be

company
Secondly, he has the job of at-

already mentioned the
that
giving
out this

type of information gives aid and

4.

persist

be

to set

company

^er problemsEvery' co^otoUon

wa~

speaker

contact,

definite

are

the

sat-

to

are

ranged

This is
important from the standpoint of

.

should

for

—

meet-

more

movies

of

special

a

ures

the

to

the

g^oun—or

the

up

when

some

the case of an individual interview—is the physical representalive

shown

if

—

task

for

ones

representative

the

isfactory

the

reg-

a

^heduled analvstt'

It would be much

analyst

across.

eral

much

tainties

important factor

difficult

but

preclude

this tvpe of presentation at

tion

....

analysis—and

company

the

company

reduce

cost

interesting

are

element

ing.

one

salea and earnings. Such forecasts

Management—This subject is, of
course, one of the most important
—if

Movies

time

outstanding in

** need not be too specific

coin

through

or

• 4

its

principally toward fostering
long-term economic growth rather
toward

™

are

£orecast wjthin

stock?

Govern+

direct

gram

than

one

and^^retained earmngs?
financing—either through

outside

Growth

ment

is

financial developments;

on

shoulder;

help real¬

another,

or

what is being

^

4-

essential

that

way

is

st,andP°int
/ar, And
planning scheduled? ah4ead

the

what

an

is

its

™p~ ^
is

area

know
up

modernization

is

of

to

ucts

ularlv

program.

keeping

avnnrtCedemanddf; toteTtenS Sj ?
export demand
brightened bv

its efforts to maintain easy entry
into trade diiu industry, to check
and muusuy, IU diet*
udue

contraction

pansion

expenditures may turn upward, as the general economic

is

will

DWIGHT D. EISENHOWER.

How

What has the

idea of the physical

hous-

resurgence

organization?

scope?

Department

P,ant Expansion and Modern_
izati0n—It is important to get an

ex-

ment

w<^d*
It

Government

Security Analyst

commercially?

good; there is a
plant and equip-

economic

is its

Research

be

that

research

broad

Fed-

local

the outlook

commercial

additional

reflected

businessmen

inventories,
a

decline

ized

next year will be
than during toe last

expand,

the

The

its full responsibility to
ize that goal.

ex¬

products? Improvement of existjng products? Is there a central-

soon

penditures will probaWv continue

prospect

facilitating the growt.i of private,
enterprise and of increasing the
stability of our economy.

In Stockholder Relations

con-

spending

and

help

The Role of the

likely
rebuilding of

are

some

eral

continues

to

mucn

as well as the
intelligence of our'
generation to the practical end of

Continued from page 13

reasonably

may

we

the

inventories;

of

expansion

pands, should make possible

The

Sources of Economic Progress
ment

further

sumer

do

can

\ -A;: ■ ■■'

A

recent
history
foresighted Gov¬

a

can

prevent fluctuations.

We should harness the idealism

has

year.

ing

that

keep the economy stable, but

recov¬

already made up
half of the preceding decline in
industrial
production,
suggests
that
economic
expansion
will
probably continue during coming
months. It holds out the promise
that we shall achieve a high and
satisfactory level of employment
and production within the current

to

nation's

teaches
ernment

herewith

am

ex¬

vigor of the recent

which

ery,

and

presenting my administrative, to encourage eco¬
Economic Report, as required by nomic expansion. Fiscal and mone¬
Section 3 (a) of the Employment tary measures fostered an expec¬
I

The

■

achievement

Our

and

their

penditures.

to

«;

in the

recession

of

power.

The role of the Federal Govern¬

tion of the last

the

be

ment

from the busi¬
ness

expressed in

buying

same

as in the past, in¬
productivity
and
in
employment opportunities

pansion.

made

recovery

two years

an¬

in

useful

stressed

the progress

in

current

its

the future

creases

Report,

e

the

or more,

dollars of the

transmittal,

t'h

increase

nual level of about $360 billion to

agencies.

t h

from

the

country

our

decade

a

production

of

management

household,

within

can

departments
and

wise

national

of

s

new

age

Economic
Advisers

opportunities, and
our
policies generally encour¬
enterprise and innovation.

up

states

good basis for

no

belief that the Government

a

Planning in the Execu¬ entirely

actions that created confidence in

labor troubles may cause setbacks.

to

lic Works

of

perience affords

Office of Coordinator of Pub¬

an

expanding Federal
enterprises
or
initiating
new
spending programs, the basic pol¬
icy of the government in dealing

Sees nation headed
growth, but warns speculation and

toward sustained economic

shut downs due

and

Advisers

in economic

progress

Instead

of the

surveys

Support should be provided for

further general eco¬

nomic expansion.

■

In letter of

early autumn, and they will

benefit from

Thursday, January 27, 1955

mntinc
tempting to portray the manaee- comfort to the competitor. I be—
to Dortrav the manageereatlv exaggerated
me"4
his listeners. This is "eye that is greatly exaggerated.
An other objection often heard
difficult. As suggested earlier, it
,

was
relatively
an
brief, because of a va¬ monopoly, and to preserve a comweiA
8ive a" analyst a chance is that "we cannot tell one or a
cndnLe
fpw otnrkhnldprq anvthine
Economic
rWiHxrv
Inkri™nrn4>n+
xnai we
well-being
sustains riety of timely public and private petitiv. environment. Continued to meet some of the other mem- tew siocknoiaers anyming that we
b
^
^
)ur whole national life. A high actions.
^management
team
do n°t tell to all of them usually
encouragement should be given
and
.°
The government cut
by way of published reports. My
rising
standard
of
living
taxes, the to small and new businesses.
a
brings to more of our people the Federal Reserve
quite common' for a cor- answer to that is - barrin? sucb
System
eased
Scentific research and developcredit conditions, and the Treas¬
opportunity for continued intel¬
noration representative to give the ,rade secrets and other types
ment activities in all their
phases avera£e
lectual and spiritual growth.
ury arranged its financing so as
a£e
of the toD manage- informa"on
that is truly confi-'
should continue

mild

and

hj®

The

tion's
free

main

our

strength

na¬

are

its

institutions and the qualities

of its people—their

enterprise
make

and

great

behalf

The

ambition, skill,
willingness
to

efforts

and

families
'

of

sources

economic

in

and

need

in

their

behalf

of

own

their

communities.
of

times

our

is

for

economic policies that, in the first

place,

recognize
of

sources

the

sustained

proven

economic

not

second

place,
a

respect
sense

to

need

of

other

submitted

to

the

Congress. Apart
from this, the decline in
private
incomes was
automatically cush¬
ioned by increased' payments of
unemployment insurance and
other
in

benefits

taxes

the

due

by sharp

cuts

government

maintained

high
spending,
businessmen
capital expenditures at
a
rate,
builders stepped
up
a

of

security as
well as
opportunity in our com¬ high
their activities, trade unions
plex, industrialized society.
A

free

pacity

ducted

economy

to

generate

has

great

jobs

comes

if

in *the

and

economic future

a

ca¬

in¬

feeling of confidence
is

wideW

shared by investors, workers, busi¬
nessmen, farmers, and consumers.

Many factors favor
tion

of

our

a

of

their

affairs

with

sense

nized
ever

farmers recog¬
the dangers of
piling up
larger
surpluses,
private

lenders
credit
states

made

ample

available
and

on

supplies

liberal

localities

exports demand remained

construction

of

terms,

carried

large

economic

growth. The population is increas¬

a

con¬

responsibility,

continua¬

vigorous

on

incomes.

Consumers
rate

and

the

reduced

kept

of

complete

with mortgages
long-term
issues.
A
comprehensive program for en¬
couraging private enterprise was

growth and betterment and in the
people for

to

and

programs

out

and

strong.

Although
manufacturing
pro¬
rapidly,
educational
levels duction
fluctuated, total output
are
rising, work skills are im¬ was fairly
stable, and disposable
proving, incomes are widely dis¬ personal income
reached
record
tributed, consumers are eager to levels. But some
ing

to have the

est

support of the

earn-

Federal

Gov-

t

a

Measures by ourselves and other
nations to reduce existing barriers
international

trade,

payments,

and investment will make the free

world

stronger and aid

economic

usuallv

our

own

growth.

in

that it is

a

attempt

an

to

mentusually in an attempt to
prove

ernment.

to

always7,elpfuT

d

aggressive

team

steam and ideas.
bas
It

been

be

full

—

over-played.

interesting to
the so-called "manage-

how

more

ment team" is set ud—with

Roving

toward

of

I think this idea

somewhat

would

hear

young, vigorous

dential—any stockholder either by
him„„

tive—who

is

4

r„nresenta-

a r^eahwilling to spend the

"™:,and

m™°nTiXch
£amil,ar with t es cor pa y

he °™.ns 1S entltled to full-co°Perab!on.
-A.

aim

an

„„

himself or through

third

argument. is

that

the

"depth*"

its
and management does not have the
continuity—if that exists:' A de- time to discuss the affairs of the
to extend personal
security against scription of responsibUiliefc-^yith" ..company with-stockholders. In my
the hazard of
unemployment, to particular referencd-td^y^>ttnger • opinion -the
management, must
strengthen minimum wage legis- "second line" men could be
given;- realize that doing this is one part
lation, to protect savings in credit
Something might -well be said of its 3°b.
this connection, if
unions, and to increase the Presi- on the subject,of
management in- one particular individual is desdent's discretionary
authority to centives
bonuses, special comignated for the job, he must be
vary the terms of insured mort- pensation,
retirement provisions,
Measures

should

be

considered

—

.

gage

loaps in the interest of

eco-

nomic stability.

and

Visual

Presentation

—

-A
great ten-year program - to
modernize the interstate
highway

visual presentation during

system should be authorized.

meeting., This

been ,asked

Our

.

I

have

for-my-reaction
may

to

a group

surprise

you;

partnership policies of water
resource
development should be
further implemented by
appropri-

be held to

ate Congressional and local action

,.L

.

£reely-

_

Remember that
tion
mucb

1v

.

sufficient authority to talk

«lven

the like.

from-- the
better

mforma-

more

is

^management

for

all

concerned

tion of the simplified chart used

—
...

,

...

'

Action should be tnken this
yesr

to

help meet

for

school

our

nationwide needs

construction.

»I

shall

^

a minimum.

First of all

' than

misinformation

from

other

JYe don t want, to see a presenta-

primarily in
Secondly-

■

as

a

sales presentation.
far

as

*a

series

of

-

Modern Investors
"

portraying financial growth
TUCKAHOE,
__fet me repeat that such financialHBehwavzteppf
charts

"

N.

Y.

-

—

Robert

Schwarz—

industries and shortly send to the Congress a data
are
alreadyto"Jrvfiave formed Modern Inliving standards, localities suffered from serious special
message
that
will' deal analyst
businessmen
v.-!-™
are
.u
starting
new unemployment. "The
fortunes
of with methods by which, the FedAs far.as pictorial
slides are vestorsJPtennipg with, offices at.
enterprises
and
expanding
old most of them turned for the bet¬ eral Government
concerned, limit them only to-cer- 111 Lake Avenue io engage in a
ones,
the tools of industry are ter when
recovery got under way ately assist in this
vitat:fIel4;^«».^ain physicaL properties or prod- securities business.
better their




.

•

Number 5398

Volume 181

largely
independently of each
other; there is no formal procedure

Major Budget Reforms Proposed by CED
Research

body

that

tion of

spending according to programs involved by use of the
'program budget." Cites following weaknesses in present
budget procedure: (1) too much detail irrelevant to major

budget issues; (2) absence of systematic Congressional

of the budget the
Joint Conference would meet with

the

Federal

informative and
in

acting

Jan.

15

it

to

Director and any other
administration officials it wished

icy Committee

the

development

analysis

the

of

of

tiee procedures by which the goveminent

determines

the

tures,

•suggestions

of

ciency
and

its

Committee
for

government
of

made

improving

evaluating

"Control

expendir

also

economic

the result of

launched by CED
Frazar

re-1

CED's
a

HWUC

fnllnwino

anu

ivcscdiui

General

Hartford

Life

Insurance

Conn.;
J.
Chairman of

Thomson,
committee

another the competing claims of
the various government programs
for funds and without considering
the burden of the total.

Co.,

the

Sub-

Monetary

Policy,

Management

and S.

subcommittee's

the

section

on

"within

ments and
large agencies, the
Secretary or agency head should

FHA

Ups Interest

Rate

on

Debentures

in

.

,

Norman

claims made
by the institutions when
mortgages insured by the
FHA go into
default and
the

audit} -experts from outside the
agency would scrutinize every aspect Q£ agency management—the
anocation of authority and responsibility, the flow of work, the
efficienCy with which functions
are performed, personnel policies,

HZ ,,tSZ
consultation
rhairmcn

Norman

P. Mason

Thomson

Mr.

is

In

calling

for

.

ft. r*

properties
are acquired by the Commissioner.
The new rate of 2%% is effec-

and s0 0„,

"The Jrrebiueiil should submit to
X'Xie President bUC
the Congress reports on the major
new
^
m ^—
findings U1 uiese auuus anu un uie uve wim ic,
Imam&s of these audits and on the tive with respect to all mortgages
for
insurance
on
and
consequent action that has been or endorsed fc 1955.

"miidelines in the form

wil1 be taken" tbe
said
In

fairiy sizable groups of activities "

addition

to

Committee after Jan. 1,

procedure would reflect "a
look at the whole budget and at
This

CED's

are:

Elliott V. Bell,
,

the

in-

crease,

Research and Policy Com-

mittee

that

said

which has the approval of
the Secretary of the Treasury, was
made
in
accordance
with the
Housing Act of 1954, which stipu-

Wilde,

Thomson and Colgate, members of

Programs Not Unrelated

Mason

Mr.

Messrs.

lates that the Commissioner

Chairman of the

#

rapid de- least a preliminary examination of Executive Committee, McGraw- time to time shall establish
President
of
Nortnwest Bancorvelopment of the trend toward a major budget issues," the Com- Hill Publishing Company, Inc., terest rate not in excess
poration,
Minneapolis,
and
Mr. "program budget," the Commit- mittee said, and "would serve as New
York; John D. Biggers, current yield on
ColifStG IS HOllOr3rV Oh3trrn3Tl of f
Anf
Colgate is Honorary Chairman of tee ooiz-J* "Government anfiTTifinc? a vt/wtA IM Jl
said:
activities
reminder + rv the nnVvo/MvimHlAAC OVlQIfTYlflD of tllP "RoPlT'ul T ilhllPV- pyDTTlPDt QPfMlfltlPS.
to
subcommittees Chairman
the Board, Libbey- ernment securities,
the Board, Colgate-Palmolive Co., should be described in such a way that programs cannot be viewed as Owens-Ford Glass Company, ToNew York.
as
to make it easier for a Con- unrelated; programs do add up to ledo; James F. Brownlee, Partner,
expenditures.

P.

level. Such a staff can
examine operating procedures Mason announced on Jan. 19 an
more
critically than
can
the increase of Vs of 1% in the rate
bureau personnel who are direct- of interest payable on debentures
ing operations. And a manage- issued by the
ment staff is indispensable for agency.
following through on suggestions ) FHA debenfor improvement of efficiency."
tures, guaran¬
These staffs; the
Committee teed by the
sajd> "win be more effective if a ,United States,
thorough management audit is a r e issued to
conducted under the supervision lending insti- of the Bureau of the Budget once t u t i o n s in
every severaL years. In such an payment of

mm-

o11virnmmittPP

Commissioner

FHA

bureau

Ton-

Tnint

Chairman

• f h

"(4) There is no systematic review of performance or evaluation
of efficiency."

Bayard Colgate, Chairman

of

Saw
ryii+tee

Riirlcmf

annrnnriafinn«;

fhp

;_ph

fprpnpp

without weighing against one

one

Cameron

Fiscal,

on

Debt

and

'

<

B.

mittee and President of Connecticut

required.

_

than two

more

con-

no

s, are ^porl^d. House and
Senate members of the Conference
would meet separately. In each
house these meetings would keep

made public by
PUUUL uy

was
was

.it

Even if there is
at this time, such

5

"(3) The budget process in Conim.uuu6v,vpUv,woiu vuu
Wilde, Chairman of gress is splintered.
Expenditure
Research and Policy Com- ucLtoiyiw tend to be mauc one by
.roiicy comdecisions «;nu w uc made wxic uj
It

years ubu.
ago.
jrv-uid

stage.

An

Members of the subcommittee

unit which inducted the study
are: Mr. Colgate, Chairman;
Messrs. Bell, Heller, Mitchell,
Temple, Thomson, Yntema, and
Miss Anna Lord Strauss, New
depart- York,

no

sensus

The

issues.

Mich.; J. D.
President, Crow

Zellerbach Corp., San Francisco,

arrive at have a strong and competent
expenditure- management staff of his own to

.

intensive study

an

the

expenditure apd revenue
committees aware of the others
intentions and should make the
S^ There, is no systematic pro- actions of the two pairs of comcedure in Congress to insure con- mittees more consistent.
sl-eratlon of problems involving
Turning to its recommendations
relations between expenditures for alleviating the present pieceand revenues.
meal consideration o£ appropria-

is

search and education organization
is

make

on

unduly long period of preparation

Expenditures," one of the
periodic reports on national problems
issued
by
the
non-profit
non-partisan

budget

ment programs or their costs.

,

Govern-

ment

and

major

addition,

Zellerbach,

problems, reportit at this provide a continuous check on the
"but
would management of operations at the
formal

revenue

con-

budget does not clearly describe
the services provided by govern-

operations

Federal

;

to

effi-,

performance.

concensus

deliberations would be of value to the
Chairmen of the appropriations
Present Weaknesses
committees in giving guidance to
The Committee said its pro- their subcommittees" as well as
posals are aimed at these principal to the Chairmen of the revenue
weaknesses in the budget process: committees.
v'"(1) The budget contains too
Later in the session, but before
much detail that is not relevant mai°r revenue and appropriations

Committee

and/weaknesses

Congress

at the heart of

propriations are
proposed the problem."

were

of

winch

siders the budget in making ap-

more

help Congress

Development.'

detailed

a

in

in

Dearborn,

pany,

hear, and attempt to

to
a

manner

by the Research and Pol-

for Economic

In

Budget

to

upon

Measures

—

tive committees and - the Committees on Government Operations
in Congress." It would also relieve
the budget document of much of
the confusing detail which presently distracts appropriations
subcommittees from the "important problems of policy that ought
to be more thoroughly discussed."

the Budget

efficiency.
WASHINGTON

shortly

plan,

CED

the

Under

after submission

pro¬

weighing expenditures versus revenues; (3) the
"splintering" of the budget process in Congress, and (4)
lack of systematic review of performance or evaluation of

ixr a

coordination of

economy.

cedure for

make

the

insures

expenditure
and revenue decisions" or adequate consideration
of their long-run effects on the

clarification of costs through classifica¬

urges

59

(519)

Chronicle

The Commercial and Financial

...

more

from
.

an ln-

of the
comparable gov-v

AA

gressman to

„.

p

Kecommenaations

ine

Committee's

The

different

0f

recommenda-

lion's include:

Activities

judge the desirability
government

should

quantitatively

and

be

services,
described

unit cost fig-

give

ures should be presented where
feasible."

Congress and the public a clearer

The Committee said that despite

Changes in the preparation

(1)
and

of

use

the

of

form

the

which

budget

"program

to

the

goal

orMnizatioif

Creation of

Joint Budget

a

not

ward

revenue

The

Joint

include

the

And

Conference

several

members

Congressional

has

submitted

was

volved.

problems

in Congressional procedures for considering
expencitures, - and, .authorization
e

-

President to veto inoivid-

items

(4)

in

of

a

discussed

major

13

"under

decision, but they do indicate the
kinds of ~ categories- which, if
spelled out in more detail, would
appear in a program budget."

aoprooriations bills

Establishment

«

j

*

¥

n

f

r

•

♦

"»«
!°
I periodic management audits of the bud^ document deficient in
executive deoartments and large some resPectsi its §reat bulk is
agencies and the strengthening of also a handicap, the Committee
the management staffs of the^e- said" The 1288"Page budget docurarWnt' sec etanes.
sprrptnrie*
ment for fiscal 1955 weiShed five
pariment
and
hajf
of annual performance reports and

,

:

*

pounds and

a

iscal
in fiscal

1954

trie

that

government ab-

a

vagt

amount

of

detail

on

"ob-

exoenditure: personal
>ed
scrbed about lb % of all the goods
services, travel, transportation of
and services produced m the U. S.
things, supplies, materials and the
as
compared with about 5% in
"The
major budget issues
1939 and only 1% in 1929.
would be clearer," the Committee
"With the Federal Government said> jf this detail were deleted
absorbing about one-sixth of all from the burget document "and
the goods and services produced presented to Congress as a part of
in
the
country, t~e
control of a yearly report on performance."
government expenditures has bevitally important," the Com-

come

mittee

"which

the

said,

the

"the

and

manner

Executive

in

is prepared in
branch and the

budget




jects»

0f

In recommending institution of
Joint Budget Policy Conference,
the Committee noted that now

Dillon & Co. headed

Moines Register & Tribune
Cowles Magazines, Inc., New the underwriting group which
Efforts should also be made to York;_ Jay E. Crane, Vice-Presi- offered yesterday (Jan. 26) $25,-

Chemists'Assn., Inc., Washington, 100% and accrued interest.

Qf the proceeds, about $15,586,-

wm be used t0 redeem

fou;r

^
f outstanding debentures
d t
$2,845,185 of other
(unded indebtedness. The balance

Herald, Washington. D. C.; Robert w-p ^ added to the company's
Heller, Robert Heller & Asso- «enerai funds and used for various
Committee noted that "at the ciates,
Inc., Cleveland: Amory corporate purposes including thr 4*
present time the President can Houghton, Chairman of the Board, expansion of its distribution sySveto a single objectionable ao- Corning Glass Works, Corning, tern, both in the United States and
propriation or legislative rid^r N. Y.
Canada.
only bv vetoing the whole bill,
Ernest Kanzler, Vice Chairman
debentures are redeemable
thus holding up funds for all the of the Board, Universal C. I. T. .-n wb0ie or in part at the option
activities falling under the bill." Credit Corporation, Detroit; Meyer 0£
company at prices ranging
Congressional control of expen- Kestnbaum, P r e s i d e n t, Hart from 1031/2 if redeemed prior to
ditures should begin early in the Schaffner & Marx. Chicago; Sigurd jan ^
to jqq
redeemed
process, even before aooropria- S. Larmon, President, Young & gfter jan ^ 1973 They are retions are made, the CED group Rubicam, Inc, New York: Fred deemable for the sinking fund at
emnhasized. For example, com- Lazarus, Jr., President, Federated 10q
mittee reports on bills authorizing Department Stores, Inc., CincinThe company is engaged pri-

In urging that the President be
granted
item
veto power,
the

reauired nati; Lerov A. Lincoln, Chairman marHy in ibe manufacture, purof the Board, Metropolitan Life chase and sale of Douglas fir

to include estimates and discussmns of eventual costs, it said,

insurance Co., New York.
(softwood) plywood, hardwood,
The Committee noted that in
Thomas B. McCabe President, plywood> pine plywood, lumber
fiscal 1955 according to a Bureau Scott- Paper Corn^ny, Chester, and dQOrs It also manufactures,
0 t e Bud£et estimate,
ma.ior Pa., Howler McCormick, Chicago, processes and sells other laminated
programs amounting to

The

Committee

also

Philip D. Reed. ^rQSS sai'es 0f $61,437,000 and net
Chairman of the Board, General profj^ 0f $2,652,000. For the fiscal
Electric Company, New York;
r ended April 30, 1954, gross
Beardslev Riiml, New York; Harry sajes were $124,067,000 and net
Scherman, Chairman of the Board, profjt $4 722,000.

proposed Philadelphia;

that the President submit to Congress a yearly report on the
performance
of the
Executive
departments and agencies, with
evaluations based on measurement
of unit costs and statistical information on performance where
possible.

Such a report, it said, "would
be of great use to the Executive

Book-of-the-Month Club, Inc.,

New York: S. Abbott Smith,
President, Thomas Strahan Company,

Chelsea,

Mass.:

Wayne

C.

Tavlor, Heathsville. Va.
Alan H. Temple
Executive

branch where the main responsi- Vice-President, The National City
bility for promoting efficiency Bank of New York, New York;
"the revenue committees and the lies, and also to the appropria- Theodore O. Yntema, Vice-Presiappropriations
committees
ao t tions subcommittees, the legisla- dent-Finance, Ford Motor Com-

a

Debentures Offered
Eastman,

$15 billion non.?.^tcheH.^
^nd related products. The com-'
L3"'3?. m3n"ri"i.a"5
in the basic" authorizing legisla- Inc., New York; George L. Morriin the United
tion- About nine-tenths of this is son, Chairman of the Board and States and Canada and alS0/has
accounted for by veterans' pro- President, General Baking Com- a majority interest in a veneer
■ grams, agricultural price support, pany, New York
plant in the Belgian Congo.
grants to states for public asHoward C. Petersen, President,
For the gix m0nths ended Oct.
contained sistance, and interest."
Fidelity Philadelphia Trust Co.,
1954 the company reported

Budget Information Deficient

system

The Comnr ittee pointed out

York; Gardner Cowles, President,

deeply into the problems of each Des
of the programs as they now do." and

ural Resources, Labor and Manpower, etc. These headings are too
broad to be used as a basis of new activities should be

in-

-

improvements

(3)

de-

headings—National Security, Nat-

the

budget and discuss the major ex-

penditure-revenue

the

cases

transmitted the fiscal 1955 budget
to Congress last year, spending

It would meet after the

President

important

The Committee pointed out that
in the President's Message which

-Joint Committee on the Economic

.Report."

in

objectives in which the citizen is
interested."

leadership
/and majority and minority representatives from the appropriations
and revenue committees and the

ual

cases

caption of the activity fails to
show how it is related to policy

"wculd

for t'

all

in

decisions in

Congress.

•

developed

where this could have been done,

decisions and

of

been

Conference as a step tocoordinating expenditure

Policy

hearings, going more

D. C.
^
_
,n°lto^£>ted S* dea?Iy,a? ?,ee what-the recommendations of ClarenceFrancis •GeneralFoods.
H might be. Although meaningful its appropriations committee look Corporation, New York, Philio L.
unitall activitieSj are not calculable like taken up on the floor." bills Graham, President and and Times
cost figures such figures have are as a whole before the
fQr
The Washington Post Publisher,

In' organization units
by
units

rather than

(2)

Dolicv

same

their

°n

quests bv functions and activities

involving

hold

and summary. Often the scale at scheduling of other legislation, "it
r^- which the activity is to be carried would be easier for each house to

budget"

expenditure

grcuos

Plywood

Whitney & Co., New York, United States

a total and are usually competi-. J. H.
tive with each other for funds.
S. Sloan Colt, President,
"The subcommittees would then Bankers
Trust Company, New

.

.

A

Tyche securities Upens d

fpr£pa

„nth

William

.

nffirp<?

at

950 East

!^™ed ™ * RrnnY Npw York
fb8Jd^ . ' _p_11TAip„ hi 1 sin ess'
to» eng S r»rprpcp ic nrinrinai
0

01 tne firm.

P

P

CO

The Commercial and Financial Chronicle... Thursday,

(520)

be

President's

r'

Message

Defense of Formosa

on

used

only in situations which

recognizable

are

definite

Chief Executive asks for emergency authorization
to

armed forces not

use

by Congress

upon threatening
nearby. Resolution approv¬

Authority
tions

President

24,

Dwight

Eisenhower submitted

B.

gress

i.e

special

a

specific

requested

tion
le

to

S.

U.

use

fit

sees

to

from attacks

mosa

which

authoriza¬

armed

both

Con¬

to

in

message

forces

defend

as

For¬

by the Chinese

Communists and also to repel any

Communist

concentrations

on

islands.

nearby

mes¬

sage, along with the text of the
proposed resolution introduced in

Congress, follows:
nation's

our

safeguard

foreign

policy is

to

h y

and

serving
and

In the

control

Then

the

and

vicinity
the

of

north

the

of

Eisenhower

Pres.

hostilities

in

1945,

Formosa and the Pescadores have

in the

Tachen

fire
islands

friendly hands of

that

assert

prelude

to

friendly hands.

In

un¬

(Formosa).

that

fill

Our

people

their strength
task."

to ful¬

Clearly,

existing

the

to

and

area

the

of

moral, economic and
forces upon which the
the Pacific depends.

It would create

that

United

tions,

the

of

and

in the

western

constitutes,

States

na¬

backbone

structure in that

would

.munications

portant

between

elements

other

that

of

barrier,

damage the economic

countries

The

friendly to

United

of

free

States

China,

of

that

of

the

the

Re-

indeed

and

Formosa

the

of

aggressive

sumption
that

tions,

our

when

the

armed

aggression
in
Korea
in
1950, to direct our Seventh

June,

Communists

committed

Fleet to defend Formosa from
pos¬
sible invasion from the Commun¬

ist mainland.
These

valid.

The

tinues
tive

Seventh

under

to

Fleet

Presidential

out

carry

that

still

are

con¬

direc¬

defensive

pel

in

ernment

order

to

promote

its

security and stability. All of these

military and related activities will
be continued.

last

addition,

there

December

a

signed

was

mutual

defense

between this Government
the Republic of China cover¬

ing Formosa

and

Pescadores. It is

defensive
is
:

now

United

a

the

character.

before

neighboring

treaty of purely

the

That

Senate

treaty
of

the

States.

Meanwhile,
pursued

Communist
a

series of




China

provoca¬

pro¬

appropriate

United

such

resolution

establish the auth¬
President as Com¬
Chief to employ the

mander

in

armed

forces

promptly

Nations

un¬

the

by

situation

participate

These

contemplate

in

effectively

for

the

became

It

necessary.

would make clear the unified and
serious intentions of

Govern¬

our

Thus

it

will

reduce

bility

that

nists,

misjudging

the

of the United

our

peo¬

the

tate

Chinese

by

now,

would

of

use

United

armed

States

if

necessary to assure the security of
Formosa and the Pescadores.

Commu¬

crisis

which

actions

take

must
of

are

the

ready

various

under¬

kinds.

Republic

For

ready
China

of

to
to

redeploy and consolidate its forces
if

should

it

these forces

desire.

so
are

Some

of

scattered through-

cut the smaller offshore islands
a

result

historical

of

rather

as

than

military reasons directly related
to defending
Formosa.
Because
the

air

situation

withdrawals

for

in

the

the

area,

of

purnose

redeployment of Chinese Nation¬
alist

forces

without

would

be

assistance

;

impractical

of

the

armed

forces of the United States.

Moreover,

must

we

concentration

or

be

employment

Chinese Communist forces

viously

undertaken

to

to

ob¬

facilitate

attack upon

Formosa, and be pre¬
pared to take appropriate military
action.

States

enlarge its

gations

beyond

Pescadores

treaty

as

defensive

obli¬

Formosa

and

the

provided

by

the

United

there¬

peace,

States

must

re¬

move

any
doubt regarding our
readiness
to fight,
if necessary,

the

preserve

vital

stake

the

of

free world in

a free Formosa, and
in whatever operations
may be required to carry out that

engage

ratification.

armed attack directed

against that

But,
area

compels

count

to

danger

take

of

into

ac¬

closely related localities

and

us

plain requires not
only Presidential action but also
Congressional action.
In a situa¬
tion

such

and

under

warfare,

modern

the

Threatening
I

be

of

prudent
before

emergency

flying.

are

Situation

the

as

that

soon

situation,
be tem¬

may

the

resolution

the President is

as

would

do

to

shall

we

remain

obligations

our

as

faithful
member

a

of the United Nations to be

ready
international disputes
by peaceful means in such a man¬

to settle

international

security, and justice,
dangered.

and

peace

not en¬

are

in this

I

message,

respectfully request
Congress take appro¬

the

bank's

the

of

stockholders
directors

and

recently

held

Winston-

in

Salem, N. C.
Mr. Clark is

of

native

a

New York and

has

spent

his

career

in

field

ness

of

the
i

banking, specializing in municipal
From 1938 to 1940 he was

priate action to carry out the
recommendations contained here¬

bonds.

associated with Shields
pany

White

The

In

Jan.

House,
1955.

24,

as

in muncipal bonds*

1949,

following is the text of the

Congress
after reception of the Presi¬
and

ingly

adopted

overwhelm¬

the

hy

House

the

following day:
Whereas

the

primary purpose
United States, in its rela¬
tions with all other nations, is to
develop

sustain

and

just

a

west

diction

Pacific

the

of

in

the juris¬

under

Republic

under armed

now

School

tration
He

Bond

of China

Bache & Co. to Admit
Wallace to
New

being made by the

Communists

preparation

is

in

that

for

aid

of

such

armed

in

and

attack

on

West Pacific

and

and

Pescadores;

and

Whereas

by

the

partnership

which

island

Formosa

Glen

A.

Nations

action

other¬

or

tions

in

is

chain,
part, is

Whereas

that

say

would wel¬

we

to the active hostilities in the

This

critical

created

situation

area.

has

been

by the choice of the Chi¬

nese

United States

and consent to

defense

ual

United

nizes that

flaunted

territories,

created

end

the

whole

by deeds.

world

Just

as

by

they

the

situation, so they
they so choose.

it if

What

we

are

can

seeking

now

is

na¬

the Pa¬

on

of

ratification

a

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

armed

attack in the

directed against

thp

for

arrned

increase

an

forces of the United

or
any acceleration in mil¬
itary procurement or levels of de¬

fense production.
seen

any

emergency

change,

I

If

arises

will

requiring

communicate

with

the Congress.

ever,

that the effect of

priate
will

I hope, how¬
an

Congressional
be

to

calm

unfore¬

any

aopro-

resolution

the

situation

rather than to create further

con¬

flict.

described,

Formosa

and

in
the

to the treaty;
Therefore, be it resolved by the

tives

Substitute for

and

of

States

One

final

is,

request
for

present

point.
of

the

treaty

China

and

United

with
I

the
we

have

Senate.

circumstances

Re¬
have

and

mosa

armed

clude

hereby

is

the

ly with E. W. Smith Co.

Panke Sales

States

as

he

the

Pescadores

securing ard protection
such related positions and ter¬

of

ritories

of

that

area

now

in

friendly hands and the taking of
be

when
mine

by

or

the defense of Formosa

the

that

President
the

peace

shall

Indeed,

Nations

City,

St.,
members of the

New

York

Stock

Exchange,-have

announced that Karl J. Panke has
been

appointed Sales Manager of

the firm's municipal bond depart¬
ment.

Mr. Panke has been in the

investment

the

banking

past 26 years.

business
1

-

for

a

T. A. Lauer Pres. of

and

deter¬

security

is reasonably assured
international conditions,

by
or

action of the United
otherwise, and shall so

report to the Congress.

Commodily Exchange

expire

shall

area

the

York

Pescadores.
resolution

of the

New

measures

required

the

as he judges
appropriate in

Dept.

Lehman Brothers, 1 William

deems

against

Mgr. For

Lehman Bros.

auth¬

attack, this authority to in¬

created

it

Eastern

of

the

trans¬

make

States

necessary for the specific purnose
of securing and
protecting For¬

This

I

United

orized to employ the armed forces
of the

and

substi¬

no

which

which
the

The action

course,

—

announces

House of Representa¬

the

be

assuring

Mutual Assistance Treaty with
Nationalist China

Securities,
Inc.
opening
of
an

That the President of the United

to
a

Opens Phila. Branch

Yeatts, Jr. Mr. Yeatts was former¬

of

such other

Action Not

will

partnership.

ties

therein

region

America in Congress assembled.

policy.

recommenda¬

my

and

Pescadores, would be dangerous to
the peace and safety of the par¬

the

area

Consequently,

call

3

York

Exchanges,
admit Melville

PHILADELPHIA, Pa.

recog¬

Senate

not

to

New

Stock

Eastern Securities

the

and to unite in its
application. We
are not
establishing a new
do

the

office
in
the
Fidelity-Philadelphia Trust Build¬
ing,
123
South
Broad
Street,
Philadelphia. The new office is
under the management of Albert

primarily to clarify present policy

tions

Feb.

on

of

Francisco

the

mut¬

between

China, which

an

from

retires

Jan. 31.

Jan. 6, 1955, sub¬

treaty

of

on

Barth &

States of America and the

Republic

west Pacific

to

es¬

mitted to the Senate for its advice

Communists, not by us. Their
offensive military intent has been
words and

friendly

President

on

Wallace

the

Admit Melville Marx
SAN

Marx

the

Street,

J. Barth & Co. Will

of

cific Ocean; and

wise.

action by the United Nations
which might, in fact, bring an end

a

bordering

or

in

Acheson

partnership

possession

secure

Pacific

Wall

36

City, members of the
Stock
Exchange, on

firm. Mr.
Wallace is manager of the firm's
municipal bond department. *
to

friendly government of the

a

western

York

particularly

the

area

Formosa

of

York

Partnership

Co.,

Feb. 3 will admit Darnall

if

continued would gravely endanger
the
peace
and
security of the

&

Bache

attack, and

New

attack

expanded

its

of
Department.

to be¬

1952

in

office

Manager

come

threats and declarations have been
are

Business

Wachovia at its Win¬

joined

made and

Chinese

of

and

peace for all; and
Whereas certain territories

the

Gradu¬
Adminis¬
at New York University.

Clark attended the

Mr.
ate

ston-Salem

the

of

made Assistant Manager
department.

was

of the

introduced in

message

In 1947, he

joined the Bond Department staff
of Chase National Bank and in

Text of Resolution

dent's

Inc., deal¬

C. Clark and Company,
ers

The

and Com¬

municipal bond trader.
1946, he was President of John

DWIGHT D. EISENHOWER.

San

United

C. Clark

John

estment

n v

members

in

fol¬

entire busi¬

For the reasons outlined

that

President

lowing the an¬
nual
meeting

our

that

ner

was

Vice-

elected

United States and all

security of the area
reasonably assured by inter¬
national conditions, resulting from

to

may

the Congress

your

unity

our

Company,

Trust

and

Bank

are

mitted

authority that
by

demonstrate

WINSTON-SALEM, N. C. —
C. Clark, Manager of the
Bond
Department
of Wachovia
John

sential to the vital interests of the

be

The

we

Of Wachovia Bk. & Tr.

able to report to the Congress that
the peace and

and

accorded

help,

if, with

and our determination. In all that

in character. Consequently

recommend

expire

to

threatening

present

resolutely faced,

porary
I

that

the

of

Likely

Temporary

believe

aspects

signed

tack.

That

peace.

Formosa and the Pescadores;
Whereas such armed attack

at¬

an

is

purpose

warning signals

of

such

sure¬

coming to the Congress.
Then it
might be too late.
Already the

tute

of

the

armed

public

success

respect,

and dangers would

will be served

us,

conditions

it would not

await

fail¬

the

Our

are

confronts

now

as

con¬

or

inde¬

appear

cause

To make this

ditions, might determine the
ure

us

basic

de¬

enduring

the

awaiting
unhappily,
the
now

their

pressures

nor

States

alert

in

If

ly mount.

soon

the interest of

fore,

if

a

thwart all at¬

to

against it.

lay should make
cisive

resolution

Again I

United

to

be

must

we

the

that

be

directed

John G. Clark V.

be
as

even

come

The

and

area

tacks

States, and precipi¬

major

a

In

Various Actions Proposed

States

treaty

our

desire.

to

that

should

solemn evidence of our determ¬
ination to stand fast in the
agreed

possi¬

they would neither anticipate

to

agreement

promptly brought into force,

firm pur¬
pose and national unity, might be
disposed to challenge the position

to

important

ever

basic

in.

Congress and

our

ple.

has

measures

measures

the

the

of

nation

as¬

jurisdiction

resolution,

for peace.

this

of

and

it

ment

this

indicated if in his judg¬

Be

to

Congres¬
would
clearly

suitable

publicly
ority of the

actions which, under current

Communists Provecatio&s
has

the

I do not suggest that the UnPed

treaty
and

that

designed to improve the prospects

of

In

of

Congress
specific

and
and

for

of

peace

by the United Nations, to ask the

any

cooperate in every proper
feasible way with that Gov¬

our

sufficiently critical to im¬
without awaiting action

me,

mission.
We also provide mili¬
tary and economic support to the
Chinese Nationalist Government
we

the

believe

one

Meanwhile,
become

of

considerations

in order to

than

more

we

a

and

body.

assist

by such considera¬
Government was prompt,

of

We would welcome

example,

Influenced

to

We

area.

Communist

forces.

serious

a

Charter, for the purpose
ending the present hostilities in

all

and

de¬

its

that

common

a

Pescadores should not fall into the
control

of

of

forces

and

nations, have

interest

life

us.

friendly Government
public

im¬

world.

der

the

free

In addition, this
breach
interrupt north-south com-

ocean.

the

Pa¬

for

other

the geographical

of their security

and

breach

a

poses

security

indeed
is

balance

and

country and of the entire Pacific

action

seriously dislo¬
if unstable,

even

would

purpose.

this

situation

existing,

"determined

all

use

Pescadores would

cate the

I

act

can

attacks

conquest of

a

Taiwan

the

cific

main

fight for the liberation of

friendly hands, Formosa and the

chain

gen¬

For example, after the
Ichiang, the Peiping radio

of

danger

have recognized that it was
important that these islands should
in

the

these

the

to

will

our

However,

ment,

themselves.

We

island

to

group

against

veloping situation

of

free

island, Ichiang

loyal ally, the Republic of China.

peace

other

Formosa.

small

a

will

military

mount¬

of

against

said that it showed

our

Japanese

remain

several

Republic of China.

air attacks

intensity

fall

the

Since the end

been

for

Formosa.

seriously

Chief.

rights and security of the

purpose

are

security.
of

the

of

came

selves

For¬

imperils
peace

had

The Chinese Communists them¬

Straits

in

States.

sional

to

China islands, notably those in the

developing

in

that

approaches

been under the uncontested

years

Tachen

situation

is

mosa

which

artillery

western Pacifa

natural

bravely for days against
overwhelming odds.
There have
been recent heavy air attacks and

honorable

peace.

the

of

one

fought

just

a

tect the

United

erally spelled Yikiang, was seized
last week by air and amphibious
operations
after
a
gallant
few

pre¬

the author¬

in

Commander

be forced upon us

September, 1954, the Chinese
Communists opened up heavy ar¬
tillery fire upon Quemoy Island,

One

establish¬

ing

inherent

the ac¬
required

of

be

In

the

States

at¬

an

positions of

some

might

Congress

mosa.

security of the
United

of aggres¬

That purpose, they

proclaim, is the conquest of For¬

•' .! ing

:

The most important objective of

pattern

a

purpose.

to,

or

not hesitate, so far as my Con¬
stitutional powers extend, to take
whatever emergency action might

and military actions,

establishing

Formosa,

The text of the President's

the

of

Until

tive political
sive

be

ity

passed by the House.

for

which

would

ing request already introduced in Congress and overwhelmingly

Jan.

of,

Formosa and the Pescadores.

adjacent thereto, but also to permit attacks

On

preliminaries

tack against the main

only to defend Formosa and islands

Chinest Communist concentrations

parts

as

1955

January 27,

Theodore A. Lauer, E. F. Hutton
&

Co., has been elected President

of the New York Commodity Ex¬

change,
nf

succeeding
Rarhp Rr

Pn

William

A.

Number 5398

Volume 181

...

The Commercial and

(521)

Financial Chronicle

tion is in

Continued from first page

judgment definitely indicated.

our

credit and the active

have

The ample

the

of the Federal Reserve authori¬

ease

thought for

"light

I

iC

As We See

these

:

generally is, of course, to say that sufficient unto the day
is the evil thereof, and not to study the mouth of the gift
closely. In this uncertain state of world events,
still imperfect understanding of social and eco¬
events about us, it is hardly surprising that this

horse too

and in

our

nomic

general attitude should prevail.
Yet it

to

seems

us

that it would he well if amid our

rejoicing that times are still good and seem to promise
to be better we did a little quiet and careful thinking
about some of the fundamentals of the situation by which
we are surrounded at this time.
There, of course, can be
no' doubt that consumers continued to spend more liber¬
ally in 1954 than many of the more pessimistic among us
expected. In the last analysis it could perhaps be claimed
that this behavior on the part of the consumer saved the
day, and is responsible for a continuation
of business being conducted today.

of the large vol¬

ume

That Could

find
way to persuade the consumer to spend lavishly at
all times. It might even bolster the claim of the labor lead¬
ers, or some of them, that the cure\for, or the prevention
of, depression lies in the simple procedure of raising wages
to prevent a depression is to

continuously and substantially in order to give wage earn¬
ers
"purchasing power," and thus the means to bolster
consumer spending.
It would seem to imply that the con¬
sumer—that is the ordinary man and woman—could en¬
sure

perpetual prosperity by always buying with abandon.

as

throughout the entire eco¬
When they are artificially created, and
when they coincide with a generally optimistic mood on
the part of the general public, they can lead to a great
variety of conditions fraught with hazard. Obviously, they
are
closely related to the housing situation to which refer¬
ence has
already been made, and to the huge and continu¬
ing volume of consumer borrowing. Construction pro¬
grams of state and local governments are naturally influ¬
enced by them. And the abundance of funds plus the
gen¬
erally cheerful atmosphere plus ever rising demands of
labor can, of course, give rise to uneconomic expenditures
for capital goods.
Let

be thankful for what

us

be certain that

have, but let

we

know what it is that

we

"The
is

from

nomic conditions

others

ence,

believe in his ability to cap-„

italize

half.

careful observer that the
consumer is not the automaton—always spending for con¬
sumption the same proportion of his income year after
year more or less regardless of circumstances—that some
It is clear enough to the

of the modern economists have seemed to assert.

In

some

spend what they have available
td' them much more readily than they do under other con¬
ditions. There is the further possibility that under some
circumstances consumers may be so disinclined to buy

circumstances,

what

regarded

are

matter

consumers

to

invest

goods,

as consumer
their funds,

that

or even

definite

for that
hoarding

on the part of the rank and
file could not fail to have wide repercussions throughout

emerges.

Such

an

attitude

the business world.
A*'1

the

optimistic

One of the ideas I would like to

It

\KvYet;is it not possible for adverse conditions to arise
out of an opposite attitude on the part of consumers?
Is,
there no such thing as reckless extravagance on the part
of the man in the street, and are there not heavy penalties
for such behavior?

It

seems

to

us

that the

answer

must

obviously be in the affirmative—else we at any time could
spend ourselves immune to economic adversity. Is it not
incumbent upon us, therefore, to inquire more closely into
this

phenomenon of consumer liberality during the past
and a half? And, while we are at it, is it not well to
inquire into another area where the consumer is active,
indeed is the dominant figure, even though outlays in this
sector are ordinarily viewed as investments rather than
"consumer expenditures"? We refer, of course, to the out¬
lays of the great rank and file upon houses, particularly
single family houses.
Mortgage Debt

year

The

mortgage debt of these purchasers of individual

spite current strength, seems like¬
ly to decline some time in the

will

fairly

future.

near

at

1955.

Not

plant

past,

wise true that there has been

significant decline from
the all-time high in the matter of incurring what is called
consumer
debt.
The total of this type of indebtedness
outstanding has not been rising sharply during the past
year or more for the simple reason that repayments fixed
by the peak borrowing of 1952 and early 1953 have been
so
large that they have offset new borrowings. These com¬
mitments plus those incident to mortgage
borrowings are
now
placing a fixed burden upon consumer income which
is far from negligible. Whether it is more than can be con¬
veniently borne, and hence whether it has reached a dan¬
gerous point we do not undertake to say at present. The
answer must
depend upon many circumstances difficult
to foresee.
We are quite certain in our own minds, how¬
ever, that this aspect of the present situation should not
escape attention or fail to get the most earnest attention

'

••

no

of all serious students of the present state of

things in this

country.

Analogous scrutiny of some of the other developments
which seem to give the President a good deal of satisfac¬




of

are

more

be

to

seems

in

equipment

much

These

demand.

siderations

.

are

.

less

negative

but

.

I

consumer.
a

are

wiP

be

side,

pos¬

1954.

sibility of continuing strong

con¬

and

a

demand

sumer

to

seem

undoubtedly to

me

.

as

you

.

very

to be the most
important factor.
Consumer de¬
mand reflects disposable income

chasing agents

and

than

which

No

in

are

one

guess

.

.

favorable

behavior, not

both of
position.

even

...

greatly.

improved

trade cycle
within each industry is much ad¬
Knowledge

of

One

vanced.

the

important factor to

remember well

in considering

market

securities

the

...

is

...

the

vastly greater amount of statisti¬
cal fact available to today's secu¬
rity analyst

.

.

dealer

.

.

.

in¬

.

surely cannot be

stub¬

so

bornly conservative as to be gen¬

bearish about current
economy
trends.
This economy
has just won a notable victory
over
deflationary forces. It was

uinely

so

tremendously strong in its es¬
that

sentials
to

grow

it managed

actually

little

a

under the

even

wraps that fiscal and mili¬
readjustment threw around

heavy
tary
it

of

half

for

1953

and

1954.

the

Than

recent

equally

Ten

"Light

B 1

u

e"

gains

capital

ing

is

(remember, tim¬
important in this

most

group).
10

ad¬

"Light Blue Chips"

Louisville Title Mortgage Co.
American Air Filter Co.

so

Cochran

Foil

Company

and accidents have a way of hap¬

Reynolds Metals Co.

pening when least expected."

Kentucky Stone Company

It

is

opinion,

considered

my

American Barge Line Co.

correction that
we
may
have in the immediate
future is
likely to be short in
Investment

other

its

banking,

therefore,

a

issues

Federal Chemical Co.

Kentucky

any

in

There

1955

.

.

"undigested" securities
will be an important contributing
factor.
At present, we have al¬
most no undigested securities . . .
that is, inventories . . . so far as
stocks

Kentucky Rock Asphalt Co.
Merchants

call

me

of

Ohio

10,

"Wanted: A Broad But Sober
Market"

Storage

Co.

Sand

H.

Willett, Inc.
Co.

Gamble Brothers
West Kentucky Gas Co.

technical

date of Jan.

Cold

Reliance Varnish

Joins Shearson, Hammill
(Special

article

under

River

Consider

strong

1955, by Edward H. Collins:

&

Churchill Downs

to your

an

Ice

Co.

attention a
in the fi¬
nancial section of the New York
Let

or

Morton Packing Co.

position.
headline

.

10—Speculative—Growth

Louisville Railway Co.

concerned, and

market's

the

in

point

are

exceedingly

an

Co.

see your

Capital Gains

.

comes,

is

others;
I" '

Next

nationally and locally. And
believe that when the correction

that

Water Service
many

Investment Dealer.

both

common

are

increases

to

stock

new

like

usually

supply the de¬
products. I visualize,
considerable increase

production

Dobbs Houses

extensive.

too

not

business,

mand for its

in

any

and

duration

has

business

lists

other

Third: Ten speculative—Growth

Market

Stock

years

without

stock

common

many

I suggest three groups:

Second:

correction until

4%%

makes

National Cylinder Gas Co.

"Times,"
Business Improvement Better

In

months

18

a

prac^ -r

recently, naturally, is testing fate,

I

vestor.
One

as

however, that

Management techniques in busi¬
have

much

which

no

Chips.

in

market

stock
for

vances

I

purchasing agent.

a

...

.

be absolutely sure of

can

human

"Any

wide

stocks.

in¬

auto

a

First: New York and local banks

or

the

in

of the

scope

New

...

assets

liquid

Especially

250

6,807

attractive.

econ¬

increases

wage

3,500

mkt.

and combinations of stocks

Quoting Lucien Hooper, leading
York security analyst:

.

pur¬

3,057

market,.

investor has

any

market

dustry.

and

exchanges

What I have said is of

apparent
an

active

tical value unless I put my judg¬
ment on the line. In doing so, the

larger share

numerous

more

The

follows:

as

judgment.

1955
from

suspect this will be

strikes

activity.

ap¬
un¬

various

latitude for exercising investment

of labor disturbances and

year

that

con¬

there

On the positive

others.

urgent

with

Total

cost increases will be much
difficult to pass on to the

omy,

time in

any

and

hard for

press

traded

Kentuckiana

relations.

earnings, and it is
that in so competitive

in

date

industrial

of

in

neces¬

particular

any

Compared with

the

homes has been

rising, particularly during the past few
months, at a rate not heretofore known in this country,
and probably in no other part of the world. It is like¬

stocks

national

indicated that the unions

seems

the

of

There are in this country
proximately 75,000 listed and

prin¬

comes

that

is

group generate opportunities
the other group."

for

affect

can

future.- The

forecasts

field

the

emphasize is that construction, de¬

said

Unlisted:

which

immediate

being

judgments

Unlisted:

cipal threat, though, to the

Construction Likely to Decline

sarily

factors

nomic

sup¬

is

mistaken

one

Thus,

ness

r>

be

What

the

stocks

words,
ported the bull market.

is

not possible for
all-wise, but it is
possible for half of the

degrees

other

infer¬

by

clearly
people to be wiser than the other

'

<

It

to

anyone

Markets in 1955?
in

also,

the basis of his superior

on

Listed: all

stocks;

must

judgment.

What About Investment
of

eco¬

accurately

more

than

3

page

the

who believes that he

man

able, at times, to analyze

listed

Continued

local

over

Quoting Dr. C. R. Whittlesey of

also

us

and

take

the Wharton School of Finance:

have;

we

listed

would

leadership.

system.

imply

some

Such factors

care.

marked effect

a

Hardly Be

Yet to leave the matter there would seem to
that all that is necessary

have

can

nomic

feeding of relief. The habit

differ with the President in this

certainly to be studied with

are

('*>
that

time

some

blue"

securities

ties

61

to

The

Financial

BEVERLY HILLS,
I.

Brunswick

ciated

has

Chronicle)

Calif.—Lewis
become

asso¬

with

Shearson, Hammill &
Co., 9608 Santa Monica JBoulevard.
Brunswick

Mr.
as

an

has

been

active

individual broker.

been better than the stock market.
For the

past decade, at least until

have

sold

than their worth in

rela¬

recently,
for less
tion

good

stocks

bonds, earnings and divL
These lower-than-justified

to

dends.

have been due in the

stock prices

main to world turmoil

to in¬

...

stability abroad . . . and to threat
of war. During the past 21 months
there has been a marked improve¬
in

ment

world conditions. People

everywhere have become less wor¬
ried about the immediate future.
This

is

price
and

being reflected in higher

earnings

more

tinuity

Peacetime

worth

ings or

ratios

stocks

for

confidence

in the con¬

peaceful

conditions.

of

earnings

more

than

are

always

wartime

earn¬

war-threat earnings.

Principle Threat Is in Field
Industrial Relations

need

this

kind

of security

development of
industry and financing of growth
companies nationally, and espe¬
cially in the Kentuckiana area.
We also need this kind of market

of

Joins

Taylor & Company

(Special

to

The

Financial

BEVERLY

Chronicle)

HILLS,

Calif.

—

Harlan K. Deckert has become as¬

with

sociated

Taylor

and

Com¬

tho enemies of our
pany, 364 North Camden Drive.
American
capitalistic He was formerly with A. S. Van
system
both at home and Denburgh & Co., Inc.
abroad
that we have acquired
the ability to control "booms and

to

to

prove

regulated

.

.

.

.

.

.

Hall & Hall Adds

busts."

(Special

No

Mayor Market

Decline

to

The

Financial

Chronicle)

Calif. —E. Trudeau
Expected
Gable has become associated with
I would expect no real begin¬ Hall & Hall of Fresno. Mr. Gable
ning, presently, of a major market was formerly local representative
decline.
Rather, we should see a for Paul C. Rudolph & Company.
selective market with an investor
swing

from

stocks that al¬
their 1955
secondary, unlisted,

prospects
and

to

LINDSAY,

the

ready have discounted

we
discussed the
cons" of various eco¬

Previously,

"pros and

We

market for proper

local groups

of good quality

which have not had

tial market rise.

any

Philip Van Deventer
Philip Van Deventer, officer of
Van

Deventer

Brothers,

Inc.,

substan¬ passed away at the age of 61 fol¬

In our office, we

lowing

a

long illness.

-j

62

The Commercial

(522)

Continued

jrom

ing

4

page

inventories,

up

which
in

The Ontlook foi Department
Stoie Profits in 1955

$3

in

tion

ing

has been an in¬
and local spend¬

purposes

in

crease

state

amounting

roughly

to

$2V2

billion.7
(4)

To

mentioned

be

also

on

the plus side is the factor of some
increase in the balance of exports

imports in 1954

over

with

compared

as

1953.

It should also be observed

that

the remarkable

stability of prices
during 1954 has been another im¬
portant

influence

the

very

the

business
than

more

bers

111

almost

1947-1949

Similar

of

still

115,

at

a year

in¬

an

the

on

same

base.9

possible
consumer

outstanding showed virtually no
change in 1954.16
With the in¬

readjustment,
Reserve
duction

of business

year

when

the

Federal

Industrial

of

Pro¬

registered a decline of
7%, consumer expendi¬

roughly

for

tures

a

Index

actually

consumption

personal

running more than
$5 billion higher at the end of
the year than at the beginning of
the

were

year,10 and this without ben¬

efit

of

any

increase

of

consumer

amount

standing.
to

the

and

outlook

con¬

the

of

the gen¬

for

1955?
con¬

among

unanimity

Government

of business

families

area

expenditures,

sometime

in

1955,

unfavorable
business

unless

effect

the

on

situation.

the

high rate

a

the

but

war,

clearly

period

casts of the

the

ever

past,

an

business profits and

ability

of

capital

of

fashions

new

in housing,

of

household

improvement

trend to larger
the stimulus pro¬
by current housing legisla¬
all argue that
the housing

tion

the

and

boom

haS

With

such

hot

yet

its

run

standoff

a

of

course.

opposing

considerations,
Federal
Reserve
policy with respect to interest
rates may eventually be the de¬
cisive

influence.

in

1954

to

a

moved

total

more

private

ever,

remain
the

of

(Mortgage debt

up

$12

to

than

billion,

$100

bil¬

For the time being, how¬

lion).12

The rate
also

on,

of

one

1955

construction

the plus factors

important considerations. With the

ing the latter months of 1954 be¬

current rate of

population growth,
high expenditures

tokens

with continued

in 1955 than in 1954, but they are

for

and

chary of predicting that the peak
figures of 1953 will be attained or
passed.
.

\

•

-

<?•

Again

let

most

business

days

proceed

mates

look

on

you

forecasters

that

nowa¬

is

the

their

important

flows

of

spending,

including
principally
(1)
government
spending,
em¬
bracing
defense, other Federal

requirements

excellent basis for

an

of

ever,

some

this kind of

ly

spending,
all

odds

stream
ion

(5)

and

which
the

consumer

is of

course by
important

most

of spending.
for

vestment

these several

of spending may be assessed

areas

follows:

as

(1)
has
in
a

Government

defense

Federal

fallen
an

Spending;—It

been remarked that
period of a little more than

year

"the

expenditures

Government

of

have

by about $12 billion, from

annual

of

rate

annual

an

a

rate

$52 billion to
$40 billion.

of

the

on

been

does not show

ing

an

increased

investment

ment,

we

return

in
are

to

of

3%

sumer

cline in defense spending perhaps
is indicated, but certainly nothing
like the drop which occurred dur¬
and

year.

has

leveled

To all intents

defense

purposes,

off.

Other

spending
Federal

expenditures likewise have fallen
off

somewhat, and this trend

continue.

the

On

other

may

hand,

as

7"Survey of Current Business," Novem¬
ber, 1954, p. 3.
8Council of Economic Advisers, op.
cit.,
p. 4.

to

witness

201

bid,

p.

2.

,

'




in

during the year,^ there
prospect that total per¬

income

will

1954,

allowance
income

to

5%

be

even

will

fact

perhaps

lower: in

in

higher in
after mak¬

the

for

1955

will

be

in

resumed

1955.

particularly in the depart¬
store field, the growth
of
revolving credit plans appears to
be another possible source of con¬
sumer cerdit expansion.
There is

portant

still, of

the im¬
question
of

course,

underlying

consumers'

attitudes

spending.

by

toward

Studies

intentions

able

attitude

chases of
than

the

be

a

evident

was

more

favor¬

future

toward

pur¬

durable goods

consumer

activity in 1953.

the

at

Also, it

of

peak

well

may

argued that, if consumer atti¬

tudes

toward

favorable

spending

in

while

1954

remained
business

even

favorable in 1955. Con¬

more

ceivably, however, this argument
overlooks

the

fact

that,

noted

as

later, the unemployment statistics
1955 may quite probably look

in

All

1954.

in

than

worse

in

all,
there
are
ample
grounds for being moderately op¬
timistic

the

on

outlook

for

con¬

spending in 1955 and for
predicting an increase over 1954,
but the continued strong efforts
sumer

manufacturers and retail¬

of both

essential

ers

will

the

consumer

be

to

draw

out

dollars.

increased

could,

This

personal

of

course,

labor

total personal
income clearly would be carried
through to disposable income, in¬
asmuch as any personal tax in¬

increase in

(barring extremely seri¬
ous foreign complication) are def¬
initely not in prospect. Next, then,
creases

now appears

that changes in inventory
policy will be the principal source

the perennial question of
savings rate. As already noted,

comes

the

changes in business activity in
1955, at least in the first half. The

production.

If

on

a

year

in

top of this halt

University predicts wage hikes of five
cents
to eight
cents an hour,. including
fringe benefits, in 1955, 'tBttssaess Week,"
Dec.

depletion there is a

resumption of the policy of build¬

Likely to

probably

headed for another year of fairly
stable prices.

Wholesale prices in

recent weeks,

however, Have been
slightly on the low side of the
plateauH which has
existed
for
-

and retail prices
likewise have drifted down a' little

months,

many

since the middle of. the year. Wage
advances will be a stabilizing fac¬

tor

far

so

and

as prices are concerned,
serious labor stoppage of

any

might push prices up.
Growing demand for American
exports may also be a strength¬
course

ening influence on prices, in Eu¬
ropean prosperity
continues and
particularly if German rearma¬
ment
goes
forward.
To repeat,
prospects for price stability in this

coming year, while good, are not
quite so good as was the case a

25„ 1954,

14Nathan

p.

N.

it

for

.

'

icit, whatever its utlimate conse¬
quences, will in the short run be
to

increased

business

activity. It is not to be inferred,
however, that any inflationary ef¬
fect .on
prices will- necessarily
Government

icits

do

not

of

budget, def¬

themselves

we

1955.

flare

up

With

credit

materials which

will

in price inflation under

conditions

supply.

...

respect

continued

of demand

and

monetary

and

-

matters

the

outlook:

for

price stability ig per¬
so clear as it was

haps not quite
at

the

the

the

first

second

less

probably at least

sure.

an even

chance of continued good business
during that period; nevertheless it
be admitted that

must

have

sion in 1955

do

we

not

of business expan¬

assurance

sufficiently vig¬
the gross na¬
tional product beyond the high
point of $370 billion at the annual
rate which was achieved briefly in
the second quarter of 1953. Also
on

a

scale to carry

orous

to be virtual

seems

unemployment

certainty

figures will
higher during the first half-of
than

This

may

the

was

in

case

1954.

sound paradoxical, but

have to remember that with
growing population the labor
force is augmented each year by

you

our

600,000

new workers.
saying is that,
given the annual increase in the
labor force and given the annual

So

or

what

700,000
are

we

advance of at least 2% in the pro¬

ductivity rate,
distribute

to

duce)
more

1954

where

a

eco¬
haive

$10

$12 billion

to

just to keep even.

year

went behind, and

we

an

we

(and therefore pro¬

least

at

are on

we

treadmill

nomic

best

guesses

1955

we

seem

to

shall not go

-

In

the

now

be that in
ahead quite

enough to catch up with where we

ought to be if full employment is
to be

sustained.

It

not that

of

is

potential.

Arno

Thompson
ing

there

is

any

pointed

As

the

Johnson'of

Company:

lack
by

out

Walter

J.

"Purchas¬

created by produc¬
increased productivity
is

power

Our

tion.

to

in

About

somewhat

are

There is

cause

price inflation; they simply supply

certain

is that
justifica¬
good general
to

up

conditions

of

half

adds

predicting

business
half

all

to have ample

seem

1955

seeking to pull this en¬
picture together, it is impor¬
tant to glance briefly at both fis¬
cal questions and monetary and
credit questions.
With respect to fiscal matters it
is clear that the present spending
and taxation policies of the Ad¬
tire

already has made possible an ad¬
vance
of 62% since 1940 in our
total
If

real

we

of living.
productive abil¬

standard

utilize

our

.

.

.

beginning of 1954. With ity only up to the point proved
ample supplies of- goods and am¬ possible in 1944 we can have the
ple productive capacity available purchasing power to give our peoit does not seem likely that the
pie a standard of living one-third
demand for inventory rebuilding higher than at
present by 1960,
will occasion any particular up¬
and
still maintain a strong de¬
ward
movement
of
prices,
al¬ fense.
."The 17,050,000 spending
though there will almost certainly units
who have moved up
be some pickup in business loans above
$5,000—almost a third of
this
spring, partly,, at. least,. in all U. S. 'families'—could repre¬
connection with rising inventories. sent
huge new markets for
v

.

.

...

If

the

demand

for

inventory

many

re¬

placement

products.
new

But they don't become

customers

automatically. How
people buy—and their standard of

living

—

habit.

And habits

do

not

to

logic,

easiness, and there are indications
that
some' tightening
of money

emotional

Koffsky,-x&rqnrted-inr ?j'15CounciI
cit., p. 28.

16Arno

o( "Etotnnr.. Advisers,
'•

y

•

op.;

largely

are

are

matters; of
not easy

to

change)."16 There is nothing wrong
with this logic; but
unfortunately
people, particularly as consumers,

stock market boom-with some un¬

24.

"Business Week," Dec. 25, 1954, p. 24.

What
tion

run

Questions
Before

-

proximately $4 billion

Are

!

;

.;

that

should be sufficiently
there was a decline in savings
vigorous- to push prices up ap¬
during 1954 of something more
decline in inventories seemingly
preciably,
there
is reason
for
has come to a halt. In other words,
thinking that such a price move¬
llThomas
Holden, in "The Business
Outlook," 1955, Conference Board Eco¬
ment might soon be reversed. Al¬
businesses are no longer seeking
nomic Forum, Nov. 9, 1954 (Studies in
ready the Federal Reserve Board
to live in part out of their existing
Business Economics No. 46), p. 11.
apparently - is. eyeing^ the,/ home
inventories.
This
fact
alone
is
12"Business Weal;," Dec. 25, 1954,p, 66i?
mortgage situation: as well as the
probably worth an increase of ap¬
13Professor John Dunlop
of Harvard
of

of

something

there

Fiscal, Monetary and Credit

that
range

1955.14

upset by any prolonged

Any

philosophy

(3) Inventories—It

now

billion peak reached

a

stoppages.

purchasing power.)

in inventory

91 bid, p. 3.

further

a

to

of

be

likely

ing the past

seems

point close

income

equip¬

certain

the

to

prediction

economic situation for the purpose
of sustaining and boosting con¬

Barring serious international com¬
plications, some further small de¬

it

1955

forecast

to

1955 than in

that
government must intervene in the
a

For

back

every

ing

capital

and

rate

plant

credit

combustible

farm

future by resum¬

own

Prices

over

Remain Stable

favorable

$287

sonal

business;

in

*

On the whole, we are

ensue...

is

in

strong urge

a

authorities

dilemma.

a

business

good

automobile

new

advances-

predicated

American

by

tary

have

1955

the

part of 1953. With con¬
tinued
improvement
in
factory
employment and with some wage

vigorous policy of capital in¬

to build its

1954

the latter

if during the next two years busi¬
ness

already

a

on

has

to

models, it is plausible that the
expansion of consumer instalment

product

personal income has

climbed

program

Administration

present

Washington

of

effects

whole internal economic

each

this

of

outlook

In

factor.

national

billion.

Total

somewhat lower

adverse

some

the

by all

course

advance.

generally.
(Purely by
way of obiter dicta, I am moved
to remark at this point that the
of

major

gross

reasonable

business

In the opin¬
reviewer the present

the

1955.

Spending—Con¬

spending is of

a

$230

rate than in 1954 and consequent¬

for

the first half of

in

spending in 1955, the

plant and equipment, (3) business
spending for inventory, (4) spend¬

public,

substan¬

dynamic stimulus to
a

tion

in

of ministration will result in an in¬
billion, consumer spending crease in the cash budget deficit
for goods and services amountedfor the present government fiscal
probably to something over $233
year,
to the extent of perhaps
billion, a figure higher than 1953's $iy2 billion. This increased def¬

capital goods spending in the
years ahead. In the absence, how¬

se¬

the

hand,

being shown

$356

trying

tial

prospect is for

and

without

the business cycle, there

guess

outlays, and state and local spend¬
ing,
(2)
business
spending for

ing for construction, both private

odds

with

long-range planning of their cap¬
ital

construction activity

Consumer

sumer

to

base

(5)

mation, and with the growing ten¬
dency of businesses to undertake

esti¬

to

high

least

at

development,

with the current interest in auto¬

appraisal of the out¬

an

for

remind

me

research

other

now

in

prac¬

They

credit

consumer

outlook.

Certainly the
high rate of contract awards dur¬

are

the

creased interest

must

tically all expect better business

economic forecasters.

On

year ago.

families,

the avail¬

funds

so

curities.

we

vided

and

by technological change.
of

and

up,

of

longer-term government

some

ment, there is no visivle reason
why such attitudes should not be

equipment,

total

requirements necessitated

new

doubled

background,

course, there is always the desire
of the U. S. Treasury to market

On the

the

market plus

consumer

of/'marriages,
increase, number of

gaining strength too

the

In

readjustment was obviously oc¬
casioning
increased
unemploy¬

ment

catching-up

the

is

formation of

on

any

movements

rapidly^

hand, the continued strong
trend to the suburbs, t. e develop¬

Capital goods
been running
since the end

have

expenditures

have

The

other

reversed

can

1954.

danger of running too far.

further-

1955 of perhaps 3% to
This gradual decline in capi¬

5%.

enumer¬

that the housing boom is in

argue

in

drop

for

as

list

same

be

can

1,250,-

number

population

expenditures for plant
a

cons

1955

for

families,

private

as

equipment indicate

and

tal

well

as

and

tangible statistics

anual

of intentions in this

Substantially the

pros

ated

rate to approximately $2V2 billion.

surveys

of

continue to indicate

of

gradual

a

another

upward

the next two years puts the mone¬

amount

of consumers'
University of
Michigan Survey Research Center

C00.11

which

the

at

predict

to

might quickly develop if

these

of

seemed to be

obvious desire of the Administra¬

ing starts running around

the
shot in the arm given by accele¬
rated depreciation during the Ko¬
rean
war
period is no longer a
factor.
Plant and e q u i p m e nt
spending now depends on fore¬

to be

seems

amounting

ex¬

construc¬

rates

inr.

strong year in the building indus¬
try, with the number of new hous¬

will aggregate nearly $27 billion in

decline,

about

Building activity was
than they, thought
it

is

As

total

of

Thursday, January 27, 1955

...

spending
in
previously noted, the

source

ment

1954.

tendency

1955.

Also,

be, particularly in tne pri¬
housing sector. And now the

vate

that is, spending
equipment,

of

economy.

we assess

Once more there

siderable

plant

plus

total business

would

(2) Business Spending for Plant
Equipment—Business capital

goods spending,

mere

principal

1955

fooled

stronger

prior to
message.)

out¬

hope will

we

postwar

business

made

budget

per¬

Now turning our attention away
from the past and toward the fu¬
eral

being

the

got

tion in

of high¬

program

of the

one

the

(4) Construction—Even the
perts

and

for

without

even

increase,

activity equation.

and rehabilita¬
these appraisals, of

are

Nevertheless,
marked

clearly

construction

President's

characterized the latter half of

factors in

mind

at

A Look Into the Future

ture, how shall

the

for example,

cessation cf inventory depletion is

total

credit

characteristic

be

American

new

in

This is the kind of

formance which

tinue

istration's large

course,

any

building such,

1950.

speedup in the Admin¬

(All

for

any

adverse developments in
the business situation might well

way
tion.

present

of

that any

a

other liquid assets now stand

creased

as

business ac¬
of course,
foreign complications might result
in a step-up of defense spending,

call for

cash

an all-time
high. '
Expansion of consumer credit is

as

time,

1954, has been showing

Finally, we cannot leave this
quick review of the 1954 business
results without emphasizing again
the fact that in

spending in 1955 will be more or
less neutral in its effects on the

and it is also to be borne in

at

of

tory

are

general volume
tivity.
At any

and

balances

another

not

rising substan¬
tially.
Altogether, then, it ap¬
pears that the area of government

sta¬

retail

than

more

stood

number

re¬

num¬

characterized

prices, which for
have
dex

has

(on the basis of

100).8

as

has

For

index

the

to

and

of

general

level

price

1947-1949

bility

the

year

close

110

character

readjustment.
a

wholesale

mained

contributing to

moderate

consumer

is
substantial
price advance, there is little like¬
lihood of any high rate of inven¬

already indicated, state and local
expenditures

probable in 1955, especially

since

policies; and if,
later, the prospect

suggested

security

suffi¬

are

pears

important bearing

an

prices

some
further
the savings rate ap¬

in

another

inventory

on

and

attractive,

produc¬

Obviously the price

outlook has

goods

ciently

decreases

add

billion to

1955.

If

total

easily

could
$4

or

be

appearing
lines of business, tnis ten¬

some

dency

development

a

to

seems

now

anfl Financial Chronicle

behave

and

H.

strictly according

it

push

will
of

take

some

Johnson, "Huiye New

kets," pp. 4 and 25.
phlet form, 1954.

big

a

kind

Published

in

to

Mar¬
pam¬
+

-

■

.

.

-Number 5398 ...The Commercial and, Financial Chronicle

Volume 181

get 'the
the

rolling

economy

toward

see that big
anywhere in 1955.

cannot

«r

ir

n

Frankly I
push in sight

f

t

certain

of

services and that

that

of

has

growth

goods

and

store buildings, too slow in moving toward simpilfied selling, too

the

bypassed

w

K

wrencnes

It is my belief that
ten

every

forecast should
each

across

»

sonnel

their

The

outlets.

since the
fested

eco-

have writ-

in

page

big red

letters the warning "Look Out for

Wrenches."

Monkey

this

concluding

So

part

before

of

my

re-

marks I should like to remind you
that
there are several potential

monkey

wrenches which
tossed into the more

get

trfed Adraw
fiT

it

hv

Chairman
Stores

of

increases

big

Board

A;

it goes

am

in

improved

methods

merchandising and

consumer

expense

of

.

,

saying that

at

may

any

turers

work

in

the

values.

con-

with

of

It

employ

and

f

o

increased
^

movement.

'

:,a

accessories,

gasoline, and other
supplies, for the com-

There are too many department
stores in this just so-so category

ponents of more and better houses,

that are no longer innovators.
One of my former students, Dr.

increasingly use
electronics and mechanized methods of record-keeping.
(11) It will use the new philosophy of expense budgeting and

Edward M. Barnet,

control

automotive

such

as

rjaiSj

and

lumber,

building matehardware, and for the

housing "services" represented by
the outlay for rent or its equivavlent
practically none of these
and

goods

services

of North-

now

western

Unversity, has recently
written a book about retail mass
merchandising under the intrig-

through

pass

(10)

uing

"Innovate

title

Perish."

or

It

will

that

is

embodied

in

the

revised Expense Manual of the
Controllers' Congress.
(12) It will devote much time
and effort to executive develop-

partmentized
in

stores

specialty.;, apparel choice is whether

the

port? "And

1953

Harvard

to

Re-

by
standing
pat
or
whether you will lose it to your-

for both these kinds

so

will lose it

you

others

Very

base,

narrow

recognized that

it

even

is

to

be

small im~

a

provement in net profit as a percentage of sales can mean a fairly
considerable

improvement in the
ratio of dollar earnings this spring
against last spring. An improvement

of

20%

reasonable

25%

is

not

un-

to

the

look for.

"thp

Therefore

auesti0n

to

to

"Can

answer

deoartmenf

stores

S'Tnore profits

A hands °f either department What Dr Barnet means is that ment.

5,t0res or °ther g*neral merchan- there is almost never

helil f

percentage

in

crease

merchandise

trol.

expense

some inprofits in the spring of
1955 is clearly indicated.
Since
spring season profits in the department store business constitute

and

spending for automobiles and auto

the

63

approximately constant,

>

will

handling

and

and

products

A

(9)

manufac-

development

of mechanization

any gain to
dlse outlets(Maybe some of be had from standing pat. You
Allied
them should-) As remarked of are always in the position of pocvahcu both department stores and de- tential loss of business and the

recent

.

without

abroad

enemies

I

training and modernizing
organizations, too slow in

Period have mani~ adopting

war

themselves

per-

Puekett

CorDoration

/i7r+

(1)
our

FarV

less

or

some

R

the

might

here

and

nart

following

•comments

improvement

entire group of general merchan-

'

nomic

chandising

slow in developing improved

large part

a very

(523)

dise

a

l
uut ior m
ivionxey

IjOok

sales

retail

goals that Arno Johnson has

logically indicated.

so

'

But to return from this excursion into the future, what is the

"yes"
is

far

so

the

as

concerned.

If

spring

season

business

in

the

outlook for 1955? Can department fall season shows the same adstores make more profits -than vance
as
the
forecast
for
the
they did in 1954? In particular, spring season, the answer for the
what is the outlook for the
spring year as a whole is also "ves." For
season?

the still longer

if there is

run

anv

wuf change ^entire AmplcAoll ?LS,tor?S A years
dna,2591
self by making the innovations
(1) 1951
with
of thf1955 outlook
complexl0n 1953 simply were not their day that will keep you up m front. is no reason
rrSi must not be. m the again, Thai Th ? day will Some department stores need to stores should
sun.(2) The possibility
and plausibly soon, take this moral to heart.
,

ct to sales there validity in what we were trying
wh
department to see in that crystal ball a few
not share
minutes ago, the answer to this
the increased
conprofit question for the good stores

.1

come

tionately

AhAA" A n,fwi,,S1^U A?A is not to be doubted, for the quailAs a generic type of retail disA any wl or all tative mix of consumer expendi- tnbution great assets. Don't write
the department store
ond half year, in l two nA
halt
ture clearly exhibits some cyclical
still has
n

ond

three

important

of

sectors

de-

mand, the demand for automobles,
the

demand

the

for

demand

houses, and

new

for

business

goods, could trigger off

capital
real de-

a

and

movement,

spending that

the

in

are

kinds

of

it off.

I

today

vogue

be succeeded by a different
grouping of desires and gratifica-

may

have

already

hinted,

the

^ons^mpUorkuern6
vonsumpuon

surnrlles

Tarn tightening of
tiehtenlneTf

a
surpnses,
a
credit could

sharp

the

reverse

pattern

...

.

.

,

.

.

(4) Just possibly labor's demand
the

annual

impossible

of

work

serious

like

now

will prove
settlement without
wage

stoppages.

turn

to

I should

concretely

more

to The department store

present

our

ecpnomy is the ^ growing
middle class, with its

ranem

constitute the

de-

-

store

major

for the luxuries and

services,

business

-

ciass

of

short-run character:

a

n

is

uiuse

uuugs

partment stores,
nantly stand fo^

temporarily in a poor light. Some
of these changes undoubtedly are

nice-

For in-

wincu

still

of

^ion

abnormally low

an

consumer

end

of

the

propor-

expenditures at

war

a

better department store,

depressed

that long a time of peace? My
crystal ball is no better than

consumer expenditures
fQr
1UL clothing and ghoeS) outlays for
uulu"'s

yours, but here are some of the
things I would visualize.
-

th

the

disannearanrp

of

years

several

partment
the

stores

'Greater

served

the

rpppnt

de

particularly

New

to

about

in

well-known
York

of

has

area

highlight
future

in

questions

this

type of

distributive

enterprise.
Only a
couple of weeks ago an article in
the

Merchants'

alleging "that
sales of

have

Forecast

issue

department

of

store

$9.8_billion in 1954 would

been

$4.3

billion

higher

if

1929

be

surmised

ratio

similarly it is to

that

the

of

ra<tio

the

ratio

to

they

total

had

in

retail

sales

1945.

gloomy views fail to take

These
an

ade-

quate perspective. This is particutrue
of
any
comparison

larly

,

based

ly

1945, which
distorted year in
on

was

high-

a

retail

con-

the other hand, the tendency for

ly

make

to

consumers

proportion-

change of long-run character,

a

chanffine- Position

T-

The

of the

n^c

-

^

C4)

W

the period

in

since

1939

other types of retail outlets handling
general
merchandise,
no
sweeping generalization can be
Don't forget that in these

drawn.

ables;

furthermore,
automotive
expenditures in 1945 were low
because of gasoline rationing, and
obviously the great housing boom
had not yet started.

that afforded by

Picture

recent

a

is

study of

Federal Reserve Bank of New

'Sm «leAf letPq'nt
.total sales of retail stores th"1 A'
through-

1

out .the

country gained 120% beAugust 1945, and Septem-

tween

ber,

t.

(

19o4,

whereas

store sales during the
mcreased
only 60%

,

department
same

period

this

study

calls attention to the fact that the
.real comparison

is

with

other

re-

,tail .outletswhich handle department store type
merchandise, that

better

a

stores
sales

have

increase

than variety

chains, and although
done so well as
Sears and Penney, they have done

they

have

better

not

than

Ward

Grant.

well

clearer

dollar.

arel

a

Personally

I

don't

come

bousing

think

reached.
the one
the

Qn
on

and

siackened

one

durable
h

s o m e w

goods

the

For

spring

season

sumer

interest in durable goods

of

the

department

1955, then,

con-

as

give

pause

and

at

least

as

These facts should

to any critics who

are

tempted to indict the department
industry as a whole.

store

The of
truth is that there

kinds

there is
the
the

department

just

stores,

and

will

the old mammoth department store. Able department store organizations will
themselves
increasingly
sponsor

complete shopping centers.
(6) The good department store
of the future will differentiate its
services and its markon according

types of merchandise and customer buying habits to a greater
extent than is the case today, with
a range from simplified or check-

out selling to £uU se.rvlc®'. 4t
low-margin

a

wlIJ
discount

vast difference between

where

so-so

Undoubtedly

and

department stores,
there

and

promotion
buying habits have

taken over a substantial part of
the latter category of stores that, distribution costs, and at the same
have been too slow in keeping up time it will offer complete service,
with the times, too slow in adapt- in some instances including houseing themselves to all the changes to-house selling, at higher margins
represented
by
the
suburban on those goods where the retailer
are

many

in

3%.

other

In

in

these

stores

the

over

period gained only 73%.

words,
since

the
the

real

end

has_been an

of

picture
the~

same

In other
is

war

that
there

modernized

functional

types

of

ing better personnel training, bet-

ter types of fixtures, more showiSHarvard Business School, Division of, manship
and greater separation

5r«u7h,ofBUD:pt.™:;«1t,nj''°sPp"cta;;?

Of

buying

enormous growth in 3,.res in 1953," by Malcolm P. McNair. bilities

-'

P.




•«»«.

"W°men'S W"r

and

£1

AgELeA CaUf-A^t
~~'T~hn*M

p,-

.*

.ana_

have
&

Coombs

»_*-

If

Co

coombs & cc

x-n
FWnn

Los

Angeles

01 bos Angeles,
oireei.

J. J. Riordan Opens
J. J. Riordan &

gaging

in

Co., Inc. is en¬
securities business

a

°«£es at 42 Broadway, New
Leo Weiner
Leo

Weiner

is

Opens

engaging

in

a

securities business from offices at
136

Liberty

cit

under

Street,
the

New

firm

York

name

of

Umtcd Equities Company.

0ffice
VnrV

af

82

opened a branch

Beaver

Street, New

ritv

to im-

much. Here and there

markon, but because of the
strong preSsure of discount house

competition

certain items there

on

win either be reductions of mark0n

or

increases in markdowns. On

0ther
no|.

ke

date
jas|.

hand,

since

greaf'an

s0

invent0ries

spring

now

^^g

as

the
at

blv le

+jiese

present
ratio

on

low

slow-moving
be
appreci-

comnosite result of

factors

seVeral

vjewer's

was

relatively

a

should

Th

s

will

to liqui-

stock-sales

PQjfjt markdowns
merchandise

there

urge

in

will

opinion

be

this

re-

gross

a

SySVplibly ffa
shade better than that of the 1954
sprjng

season.

'

,

v

.

•

O_1o_

nkedhip
P™t nP^
nrnvp

to

hold the expense percentage ap-

rate/wiU

aL th/hlttip

still be a factor^and the batt
rPmains

^arhe11T3^sf

to'be

™

foueht

it

nn

is

^

r^Arcoti^rs tes^iaImarketing

-

p

will be opportunities for increased

manufacturer

consumer

South

Two With fnnmU & Pn-

vYi11 make sales very c!ose to the Lake City have

house" type of operation on goods

stores

453

words, this is a prediction that in

to

offer

about

prove very

replace

Brudl

Spring Street, members of the Los

much

so

(2) Because competition will be
strong, the gross margin per-

-

—

per-

ft£ures ^or ^ke 1953 spring season.

department

a

good

are a11

at

Chronicle)

Eichler & Co.,

maiV

physical volume of

store^.sales will

haps increase not quite

season

Financial

Angeles Stock Exchange.

;7ir^;babl7'continueaMgh?"and
therefore

The

ANGELES, Calif.

^ne is now affiliated with Bate-

has

t.

a

down-

or

onitnmprs

for

LOS

to

consumer,s retaU

quare

Increasingly the individual
in planned
regional shopping centers. In some
respects the shopping center it-

enjoyed

In this period, for in-

department

multi-

million

(5)

automobiles

stance,

for

stores will be located

their sales.

dur-

in the share which

crease

in-

an

centage rate is not likely

fariiitipc

S

to

a

Whpthpr suburban

total

sales

be

downtown

.''-feetforimore.

Although department stores in
apparently have lost some

will

tabe functional

Story structures of

for soft goods because hard
goods
were
not
available,
consumer

tendency
stores

than mammoth

15 years department stores tripled^ self

and

The

indivjdual

sumption, with high expenditures

particularly

a

time soon there should be

which increased only 10% from
(1) It will be typically a mul- as the total volume of retail busi1946 to 1953 as comPared with a tiple store operation, local, re- ness generally; Inasmuch as no
rise in consumer spending for all gional, or national.
important price changes are in
types of goods and services of
(2) In metropolitan areas, more sight, it then seems reasonable to
76%,19 represents a temporary 0f jts volume will be in suburban set the estimated increase in derather than a permanent shift. On stores than in downtown stores.
partment store sales for the spring

department stores had maintained
wlnch

jernh1elSeKnai0n ^
rpVc0n h*! p* pvnppfabnn"that'!nmp*

Bateman, Eichler

(Special

No nearby change

a

comp

ablv

problematical.

The job is not to supersede the that are attuned to modern u
department store or to convert it ing 2o and, on the other hand,
lnto something else. The job is to when consumer interest in new
make it

directed

was

With

ing than retail sales generally is

predomi- hanri apparel Hpsifmprs have done
hand, annarPi designers haVP Hnnp
a better job of creating fashions

i

Sew hlklf UnderstandnnllTfi"

store

sales will make any better show¬

ue

arl? specifically to the question to tbe housing area and the high What will this better department
Srnfuf'iM aK
C3n Percentage now directed to that store look like a few years hence,
Rppp^flv there have been
Recently twl LvP hppn some area is merely a Partial return to say, by 1970, if we are all graced
ment store business.

department

is even more decidedly "yes.".

t of 1955

j

stance,

situation

.ugl°x.mZ„ viefSB,.exSres!?3

gut

whether

in-

are

flrst

^ordeDartment
wM£ seemmgly business massofnlife; mose i^the^es o£ thts that point has quile been
has put ties
-d unrigs wine. ue- jj. Will
is
It will
wH
when,
the

T

great

that

dicated for th

Thus changes in the consumP" mand for,1uaJilty merchandise, for takeg out Qf the

business

...

for

ti

platform two
"Department
stores

significant factors of

#

As

this

prestige and institutional standing.
One of the most

pression.

(3)

remind you of what

me

fram
ago:

years

tomorrow."18

t1Gns

Let

said

in

expenditures

sumer

of 19o4 will show appreciable re
sulls in Ayo°(4) With an increase in sales, a

*eUing responsi- slight betterment of gross margin,
Tob.s

vote'riwre effort lo'creativemer- ftlSfgZ

lalk

a,

the

Bosto„

Dislri.

pV)R

IN

64

The Commercial and Financial

(524)

*Continued from page

desirable

9

Who Will Help

subsidy, since there are no

would

railroads

meet

to
and
any

are

situations;
certainly there is no longer
reason
to prevent the rail¬

roads

competitive

from

because

having

the

this

freedom

transportation

of

goods is a highly competitive op¬
eration in every section of the
country. There is virtually no such
"thing as a railroad monopoly any¬

that, of
course, it must have no strings.
Still
other
roads
are
already
making money, and are violently
and
probably irreconcilably op¬
posed to anything approaching a
subsidy.
It
is
highly
unlikely,
therefore, that any meeting of the
essential,

is

sidy

AAR
with

but

could

Board

come

ever

up

clear-cut, straightforward
either including or
the protection of the government. avoiding
subsidies.
They
could
If
there
is
no
agree only that competition should
monopoly, and
but getting
competition can take care of it¬ not be subsidized

more; and competitive transporta'tion facilities certainly don't need

a

program,

—

purposeful done about
government should control rates this is like pushing water uphill,
and
as it has.
many
believe the industry
Another
recommendation
we
might more profitably move in
self,

it

is

hard

to

why

see

the

would

hope
for
would
be
a
formula by means of which the
railroads can secure enough funds
to rehabilitate their lines, and to
add equipment in sufficient quanHtlty and quality. It is unlikely that

-

anything

other directions.
There

sions

have

with

been

discus¬

some

leaders,

in

which

in

United

the

the

government

Certain

funds for investment in the public

mands

interest, and communities might
be
prevailed
upon
to
finance
certain services or facilities which

very

the

on

industry;

existence

Labor

Act,

yet the
Railway
non-railroad

of

the

most

businessmen

feel, makes it ex¬
cannot be profitably supplied in tremely
difficult for labor and
the
way
the communities want management, in the railway in¬
them, in the course of normal dustry, to find themselves in a
railroad operation.
completely free area of collec¬
tive
A

Strong

Actually,
made

of

funds

be

can

allocation

government for

the rehabilitation of the railroads.
In

bargaining.

that there is

case

indirect

the

by

Case

strong

a

the

for

ion

a

between

in the

ment

economic

War,

vised

event

manage¬

recommendations.

place, the present power of such
plight of the railroads is considerable.

dates back to the first World

the

and

railway industry, the
almost invariably

government
makes

In

The

recommendations

Any formula de¬
independent business¬

by

at which time the

government ran men regarding the railway indus¬
approximately try would probably suggest a re¬
a greatly examination
of
the
wisdom
of
stepped up pace, and had no time,
having a specific Railway Labor
manpower, nor inclination to pro¬
Act, which automatically makes
vide
proper
maintenance. When the
government a vital partici¬
the
government
gave
up
the
pant in railway bargaining.
the

railroads

two

years—ran

they

were

All

ex¬

for

them at

end

the

at

of

that

war,

(5)

wrecked.

industries,

other

the

than

railroad industry, came into re¬
ploring
what
sort
of
formula
might be devised by them to be markably good times after the
submitted
to
the
government, war; and the profits of war pro¬
the President would recommend a with the objective of placing the duction, added to the profits of
prosperity,
made
it
subsidy, but there might be de- railroad industry in a stronger subsequent
most
industries to
veloped a formula by means of position. You would be interested possible for
which private capital would be¬ to know what the ingredients of modernize to new planes of effi¬
come
available, under conditions such a program might be—and I ciency. But periods of prosperity
no
promise
generally for
thought to be practical for both hasten to point out that this is hold
the
railroads
and
financial based upon unorganized and un¬ railroads; even in good times, they
make comparatively little money;
sources.
systematic research. It is the dis¬
and if they seem to be making too
Another recommendation might tillate of conversations.
be some kind of stockpiling to in¬
much money, steps are generally
Such a
program
might easily
taken
sure
the nation of sufficient rail¬
to
remedy the situation.
have five elements, three of which
road facilities in the event of war.
Therefore, even though the rail¬
would run somewhat parallel to
If the railroads were develop¬
roads spent many billions of dol¬
what we have guessed may be the
ing their own recommendations, recommendations of the Cabinet lars after the first World War,
they would undoubtedly be differ¬ Committee.
they could not get anything like
Here
are
the
five
ent than these. But certainly any
the amount of money required—
points:
constructive action is better than
and through all the decades be¬
(1) Freedom to set rates: The tween then and
no action; so it is hoped that the
now, they have
ICC should no longer have juris¬
entire transportation industry will
never been able to get far enough
diction over rates.
The railroads
ahead
to do
the job that
develop unified support for the
they
should set their own rates, sub¬
President's recommendations—and
know needs to be done. Let us say,
only to the same type of
the move in the East to set up a ject
then, that the government is, in a
which
now
governs
combination trucking and railroad regulation
sense, in debt to the railroads for
prices; that is to say, one railroad not
advisory group is an important
having provided the necessary
could not have a variety of prices
step in that direction. It is prob¬
maintenance, nor for making it
for rendering the same service to
able that the industry should take
possible for the roads to accumu¬
different customers. A special in¬
the position that while the recom¬
late funds enough to repair the
mendations are not complete or dustry Committee, operating out
damage done by the government,
of the AAR, would set interstate
perfect, progress must be made a
during the first World War.
rates
so
that
cross-continental
step at a time—and may not be
Or, we could look at it still
would
not
become
a
made at all if the first step is not shipping
another way. We can point out
bookkeeper's
nightmare.
Rates
taken.

Stockpiling equipment: Any

business

looking

group

railroad

picture
that

suggest

probably

would

the

the

at

government

stockpile, in one way or another,
enough
equipment
to
provide
ample transportation in a crisis.
This equipment might either be
used

solely for government ship¬
ping, or it might be assigned to
a
specific railroad under a con¬
tract

which

ular

would

call

for

the

during

stored,

not

since

life

is

however,

should

ment

the

There

contract.

agreement,

general

that

equip¬

built

be

of

and

unused

equipment
to the econ¬

contributes

nothing
omy and degenerates even more
rapidly in storage than in use.
Tangible

in

Interest

Now

it

may

that

seem

to

indicating

Continued

of

many

these

from first

five

It

of

the

has

railroads

been

might

suggested that

one way of arranging
this might
contemplate going outside
be to set up some sort of govern¬
industry for an answer; but
this could have two obvious ad¬ ment guarantee — although this
could have long-range liabilities
vantages:

would
the

as

First,

it

would

dramatize

to

nations last year. This
shipments abroad will
to

the

1952

that

means

close

come

of $13.2

mark

industry is

an

assets.

as

funds:

After

the

railroads

have

entire

been operated with fewer restric¬

much so, that other
elements of the economy are mov¬

tions for a reasonable period of
time, it is generally felt that they
may
find themselves
with
re¬

essential concomitant of

our

economy—so

ing in to

see

that proper steps are

Second, it might expedite mat¬
ters, since there is such a wide
difference
railroad
due
and

to

opinion

within

geographic conditions
all

the

industry itself — largely
the fact that competitive

uniform
and

of

throughout
railroads

do

the

are

not

established

credit.

there

taken in the public interest.

be

At

that time,
difficulty in
finding capital. But it is generally
felt

will

of

the

that

there

may be an awk¬
period in which the

ward interim

railroads

erate,

but

assets

vo

nation, dom.

have

do

freedom

indus¬

Take
one

the

matter of

not

have

capitalize

on

sufficient
that

free¬

railroads
believe

a

private capital to make such funds

of

recover




means

as

or

indirectly

from

that

with¬

ment.

Most

would

those

funds

come

such

come

directly

the

govern¬

some

state
flatly that they
subsidy is essential, that

the railroads cannot

This

funds would have to

subsidy,

if

air

prefer
from

to

tax

see

ad¬

Expected

devised

so

that

which

contributed

have

and

the

of

facilities

—

panded 4%.

Based

on

ex¬

this year's

it

becomes

a source

to de¬
of additional funds
necessary

tide the railroad

period

such

a

of

industry

adjustment,

source

were

over

and

if

intelligently

conceived and properly promoted,
it is entirely possible that Con¬
gress

(4)
While

would act favorably upon it.
Assessing
the

labor

industry

problems:

itself

would

be reluctant to take part in al¬
tering its basic labor situation, it
seems
virtually certain that any

formula
""Mjlr?

»-»nt

devised
overlook

by
the

410.000 vehicles will be sold abroad

in

1955.
It

is,

of

remind

denied the fourth.

velop
to

been

three

to

major transportation
and

shipments

overseas

most

dollars

of
are

while total

made,

many

industry
fact

that

that

rcertain

circumstances
do

by
an
unnamed
individuals if asked to

of

group

is

so,

far-fetched

a

academic

exercise.
I

think

For

that

the first

there

is

is

the

case.

many

years

not

time

in

tangible evidence of in¬

in the plight of the rail¬
industry at high government

terest

road

levels, and

have ample assur¬

we

ance

that there

and

financial

who

pers,

are

business

many

people,

would

and

like

ship¬
help

to

the railroads.

Moreover,
faced

we

with

critical

are

the

which the

sential

continuously

possibilities

situation

railroads

to

the

Finally,

we

of

developing,
would

defense

of

a

in

be

es¬

the

na¬

tion.

that

some

having

are

of
a

nothing

face

must

the

fact

our

major railroads
desperate time—and

less

than desperate de¬
scribes the kind of time they are

having

something

so

—

must

be

done.

With

think

these

it

is

facts

in

high time

mind,

that

all

I
of

give serious thought to exactly
ought to be done, that the

us

what

railroad
for

last-ditch

of

us

that

and

of

industry itself get ready

the

we

many

the

ready

the

take

railroad

cut

case

In

to

in

in

can

full

hand,

advantage

powerful

the

people

case

industry if

ought

men

What
of

name

long

a

you

keep

railroad

in

building

feeling

contribute

can

lurking

—

in

to

take

their

places

and

say

your

way

you

to

additional confidence in the

places—or

for

clear-

a

there to plead.

mind.

the

go

which

at

everyday business,

advertising

do

is

plead

were

your

that

drive

believe

that

fact

are

right

to

too

the

many

are

not

managed,

in

the

free

enterprise system.

superfluous

course,

you

who

belong

Overseas Automotive

importance
sion

of

Last

$2

dollar
of

to

foreign

year

result

continued

imports

another
and

of

Club

your

billion
sustained

to

of

the

expan¬

exports.

nations

reserves,

to

the

to

added

their

chiefly
heavy

raw

Americans

the

Gross

National

American

pur¬

will

materials and other

Product.

The

therefore,

consumer,

will have

more

money to spend on
imported merchandise in 1955 than

he had last year.

Before

taking

on

you

tour of

a

the 24 countries where U. S. auto¬
motive exports will be increased
this

and

year,

how each

one

later

pointing out

of you

can partici¬
pate in this expansion, permit me

to present a few more
key

factors
affecting overall trade prospects.
background should help you

This

share in

this

business.

new

Easing of Foreign Controls
U.

S. Exports

Thirty-four
ries

eased

nations

controls

territo¬

or

U.

on

on

*

.

S.

ex¬

ports since the beginning of 1954.
They represent nearly every con¬
tinent
for

in

the

roughly

tional

world

60%

trade.

Argentina,

and

The

account

all

of

interna¬

list

includes:

Bolivia,

Chile; 'Costa
Rica, Dominican Republic, Ecua¬
dor, Netherlands Antilles, Peru,
Trinidad and Uruguay in Latin
America; Bermuda; Belgium, Den¬
mark, England, Germany, Greece,

Holland, Italy, Luxembourg, Spain
Sweden in Europe;
Cyprus,

and

East;

billion, equaling the 1951 and 1953
records.

spending will all help to bolster

Iran

a

Increased

production, highway con¬
struction, stockpiling and defense

gold

by the U. S. In 1955, im¬
ports wiil climb 5% to almost $11

buy more

expected to rise 5%.

steel

as

chases

all-time

is

for

year

instance, the automotive industry
enjoyed a 7V2% jump in exports

forecast, it is safe to predict that
reasonable
estimate
automotive exports will increase
it would amount to
about 5%, which indicates roughly
billions of dollars—billions

the

were

its

available.

example: the heads

have to be

op¬

not,

try itself.

of trucking,

case

policing, etc., would be allocated
to the trucking industry. But even

If

to

imagination,

to resolve from within the

would

less

by any
In
this
event,
some
feel
it
face
would be in the public interest to
precisely the same problems. This
wide diversity of opinion in the provide funds without depending
industry would be most difficult wholly upon the willingness of
stretch

the

transportation, and waterways? In
As you probably are aware from
the case of airways and waterways,
past experience, when total U. S.
the computation of this cost would
exports climb, there generally is
be relatively simple; in the case of
a
corresponding rise in automo¬
trucking, an equitable formula tive sales abroad. Last

only a reasonable share of the
(3) The question of government total cost of
highway maintenance,

Washington the fact that the wel¬
fare of the railroad

well

vices in

under

Outlook for Automobile Exports

billion.
that the chief difference in the
Perhaps we should be more opti¬
eventually be set, in actual
relationships
between
the
rail¬ mistic than this. From the latest
practice,
to reflect the service
roads and other means of trans¬
Committee, some of us had given
provided and the pressure of com¬
poll taken by the McGraw-Hill
thought to the possibility of or¬
portation with the government is
"American
petition — which is exactly how
Letter," it has been
the
fact
ganizing a group of leading indus¬
that
the
government
prices are set in other industries.
determined that four out of five
trialists and financial people, and
creates and maintains all or part
businessmen, or 80%, expect their
(2) Financing modernization: of
assigning them the responsibility
the rights of way and the safety
overseas sales to improve.
But the
of
developing and sponsoring a Many businessmen believe an at¬ devices used by other transporta¬
increased purchases from the U. S.
formula, which, with proper gov¬ tempt should be made to devise tion facilities and does not assist
some formula for financing which
resulting from fewer restrictions
ernment
implementation,
would
the railroads in any comparable
would
enable
insurance compa¬
may begin to slacken in the sec¬
lead
the railroad industry
back
way.
How much does it cost the
ond quarter of 1955.
into
the free enterprise system. nies, and eventually underwriters,
to
maintain
these
to provide funds to the railroads government
This could still be done, at a later
Increased Sales of Autos Abroad
in larger measure than the actual rights of way and these safety de¬
date, if necessary, to augment the
condition

made

page

would

merit.

recommendation

a

ready, not well enough

Before the advent of the Cabinet

Cabinet Committee's proposals.
It
may seem
strange that we

be

places—that the railroads

the

Railroads' Plight

you

in

might

reg¬

inspection and conscientious

maintenance

factors

difference of opin¬

labor

first

the

railroads

business

only industry

States

from

freely than it does
mean, as far as other sources of funds available to
failing
systems.
Other
concerned, that rescue
they would be permitted to set leaders in the industry—probably
rates, with less regulatory inter¬ a minority—hold opinions, which
ference. This might go a long way in some cases they have publicly
toward enabling individual roads expounded, that some sort of sub¬
the

a

the

ties might

the Railroads?
out

more

This

now.

com¬

unnecessary

itself
railroad proper¬ has written
irretrievably
justifiably be exempted into the labor-management part¬
taxation; some extension of nership. As you know, it is cer¬
the principle of accelerated amort¬ tainly not fair to say that labor
ization might be devised to supply and government jointly make de¬

subsidy.

uct much

but

munity services, rather than direct

Chronicle...Thursday, January 27, 1955

and

Northern
desia

Lebanon

in

the

Middle

Congo,

Belgian

Egypt,

Rhodesia, Southern

and

Union

of

South

Rho¬

Africa

in

Africa; Austrailia, Ceylon, In¬
dia, New Zealand and the Philip¬
pines in the Far Sast.

In

addition,

Brazil, Colombia and Turkey lib¬

items from abroad to keep in step

eralized

with the expanding U. S. economy

goods in the first part of the year

justments and public payment for the railroad industry is virtually this

year.

Industrial output here

but

were

controls

forced to

on

American

renew

barriers

Number 5398

Volume 181

when

later

each

.. .

The Commercial end Financial Chronicle

faced with

was

exchange difficulties.
Most of these countries

are

now

closing the gap in the backlog of
essential goods accumulated dur¬
ing the 1952-1953 decline in their

purchases of U. S. exports. Al¬
though it is unlikely that a sat¬
uration

point will

be

reached, it

is quite possible that their present

requirements will taper off. Never¬
theless, with gold and dollar hold¬
ings of foreign countries (exclud¬
ing Russia) now standing at a
record $25 billion, there is little
to worry about any tighten¬

need

ing of import restrictions on U. S.
products. In fact, a few countries
that procrastinated last year may
relax controls because of the rap¬

idly

approaching

a

for

convertibility.

rency

there

date

is

liberal

more

Moreover,

If

enterprise
around

will

output
in

American

by

hover

to

they

year,

a

These

and
the

above

services,

historical

line with

is

which

and

average

postwar levels.

It is

interesting to note that, based on
President Eisenhower's prediction
of a $500 billion Gross National
Product

by

1960,

exports should
eventually run between $18 bil¬
lion and $20 billion annually.
The

principal market areas ben¬
efiting most from expanding U. S.
will

exports
will

hold

Latin

be

steady at the

dented pace set in
last

of

America
unprece¬

Foreign Relations Committee are
now
led by men who supported
nearly every Randall Commission

two

proposal.

sumer

A

three-year

of

extension

the

Reciprocal Trade Agreements Act
is a sure prospect.
Chances are
that the General Agreement on
Tariffs and Trade

finally will be
ratified, while there is only a 50-50
possibility that Eisenhower will
be
given
authority to
reduce
tariffs
years

5%

annually

for

recommended

as

three
the

by

Randall Commission. Further
toms

simplification is
the

abroad

a

much-debated

cus¬

certainty
14%

tax

income earned from

on

will

be

incorporated into

the U. S. tax structure.

Government

stockpiling will
to expanding
S. imports in 1955. The increas¬

also
U.

be

ing

stimulus

a

influence

chases of

American

of

pur¬

strategic materials from

abroad is

becoming

a

vital factor

in the stabilization of world trade.

New

orders

erals

over

for

metals

min¬

and

the next few years will

exceed $3

billion, with the proba¬
bility that close to $1 billion will
spent in 1955. Belgium, Belgian
Congo,
Brazil,
Canada,
Cuba,
Mexico and the
be

prjfndipal

sterling

will

area

beneficjaries

from

sales to U. S. of

aluminum, beryl,
chrome, cobalt, diamonds, lead,
mercury,
nickel, tungsten, ura¬
nium, zinc and other ores.
A Tour for Better Markets for

U. S. Exports

American business
already has felt the favorable re¬

to uncover better markets for you

sults of Western

next

Europe's liberal¬

ized trading policy on dollar area

Therefore, further gains
are
unlikely unless sterling be*
comes fully convertible in 1955.
Declining commercial sales to
goods.

the Far East will be

direct off¬

a

shoot of Japanese austerity forced

the nation's economic crisis.
military spending in Japan

by

Less

anced

in

part

other

where

Asian

will

West

fi¬

Indo-China

to

explosive

the

counterbal¬

increased

by

assistance

nancial
and

be

will

Korea

and

areas

make

huge
Although foreign aid will
by the shift in

outlays.
not

be

the

new

affected

Congress, there is no
doubt that overall military spend¬

ing for overseas shipments will be
substantially less in 1955.
Ex¬
penditures for
defense exports
y/ill drop to roughly $2 billion—
the lowest point in many years.
There

bound

are

One of these

establishment

the

that

of

the

$100

million International Finance Cor¬

poration, which will expedite de¬
velopment of Latin America in

ifying

the

Edge

the

Act.

Chase

other private

to

finance

U.

S.

in

although

Bank,

scope

that

so

automotive

will

rectly,

of

Last

guarantee policy of the

insurance

help

portion

exports.

the expanded credit

Export-Import
limited

will
Bank

banking groups

larger

a

This

National

commercial

but not least,

not

Fed¬

Reserve Board's action mod¬

enable
and

is the

Another

particular.
eral

The first

stop today

assist

it

will

exports di¬

some

capital

goods firms in matching Govern¬
ment-backed

loans

long-term

of

tour

on our

is Mexico. Here is an
which is now rapidly re¬

year

economy

gaining its strength after having
been severely shaken by the 45%
devaluation
of
last year.
Improvement will proceed stead¬
ily, sparked by a noticeable in¬
crease in U. S. foreign investment.
A vast internal development pro¬
gram will be pushed by the Gov¬

peso

ernment

business.

stimulate

to

tive sales will rise this year

Traveling southward for a short
to
Guatemala, we cannot

The

anticipated climb in U. S.

imports

will

receive

a

decided

boost from the President's foreign
trade

program,

likely to

be

most of which is

passed.

One of the

most'significant results of the 1954




most

in the world.

will intensify

has
ance

mapped

on

the

and therefore

substantial assist¬

a

The Foreign Oper¬

program.

ations Administration has just al¬

located

$3

million

for

highways will be started in 1955.
Administration

5%

a

experts anticipate

gain in

passenger car and
consumption in each of the

truck

road

con¬

will

channeled

be

there

shortly.

Planned for completion by
this

highway,

significant
malan

vehicles.

July 1,

which will play
in

part

relations,

heretofore

funds

More

U.

will

untapped

S.-Guate¬
open

up

market

Guatemala

a

has

a

for

The

efit

Colombian import reg¬

new

ulations

automobiles will ben¬

on

American

exporters

dously.
U.

S.

Until

three

and dollar

reserves

ample
to

pur¬

exchange restrictions.

Cuba's economic well-being de¬

pends

Washington.

on

decision

by

the

ministration to

imports
means

for

U.

by

recent

Eisenhower Ad¬
raise sugar quota

250,000 tons

in

1955

greater opportunities ahead
S.

and truck

exporters.

Cuban auto

imports—down 10% in

market for auto parts and vehicles
in Uruguay.

coffee for export

Argentina, our last stop in South
America today, cannot be consid¬

weeks

ago,

.

*

the

ered

choice

a

salesmanship

market.

here

But
your

on

real

part

could increase your business con¬

siderably.

Out

of the

5,760

cars

and
trucks
imported
by
the
Argentines in the first ten months
of last year, less than 17% were
from the U. S. Main supplier was

the German Mercedes Benz, with

should

offer

to you as a

the

with

act

doubt

that

been

revived

enthusiasm

result of the new trade
There

S.

U.

Manila's

considerably

is

position

bettered

be¬

of the important tariff con¬

cessions

Realizing the vast potential cf
Congo, one leading American

firm already has considered con¬
struction of

most

gained. End of the peril¬

helpful to

ment

The govern¬
proceed with its

you.

now

can

plans for much-needed

automobile

an

bly plant there.

assent

It is only a mat¬

ter of time before other companies
will investigate the area.
Roads
to

reach

mines

key

and

centers

being completed daily, thus
assuring a sizable jump in demand
are

for vehicles in

1955.

Egypt's budget for development
projects is 30 million Egyptian
pounds ($86 million) higher than
last

have

Appropriations

year.

been

increased

for

communica¬

tions, public works and commerce
and
industry.
The long-stifled
trade between Egypt and Britain
will return to normal in 1955 now
that

the

two

countries

have

tled the Suez Canal dispute.

is

capital
and

ments are

set¬

Local

moving

substantial

into industry
foreign
invest¬

planned because of

hospitable

Import

laws.

more

restric¬

tions will be eased due to

an

industrial

im¬

proved

exchange position so that
it is reasonable to anticipate higher
automotive
sales
to
Egypt this
year.

Middle East

The

17% remittance tax will prove

ous

plentiful.

are

no

has

weighing more than
and agricultural projects.
These
2,740 pounds were discriminated
will provide an early incentive to
against with an 80% stamp tax
the spare parts industry especially.
in addition to the 40% ad valorem

On

itinerary today we ha^j
scheduled only one brief stopover
in

our

the

Middle

East.

This

is

be¬

it will be too early in 1955
for Iran to actually reap any fruits
cause

from last year's settlement of the
Philippine Anglo-Iranian Oil crisis. Perhaps
trade
delegation to Washington by 1956 the economy will have
auto imports are subject to the
said he thought the demand for progressed sufficiently to warrant
huge
tax
payments.
This,
of
these imports would rise by 25%. a more optimistic approach for
course, means the end of prefer¬
the automotive exporter. Already
The second
ence for Western European light¬
hopeful area for
taxis are meeting planes at air¬
you in the Far East is Thailand,
weight cars.
ports, a sign of the better times
To clear the way for larger auto which in the past six months has
to come in Iran. But a $6 million
purchases in 1955, Colombia also been allocated $36.7 million of U. S. aid allotment for
public road
will have use of $25 million from U. S. aid for such defense support
development, plus budget ap¬
the International Monetary Fund as road networks and telecommu¬
proval of funds for construction
jfor liquidating outstanding ar¬ nications. A total of $60 million of the
long-sought Mediterranean
rears.
It is reliably reported that is expected to be granted to Thai¬
Sea to Persian Gulf truck express¬
the Government will open credits land, a good part of which will go
way,
makes Lebanon a market
amounting to $75 million for road for the "all-weather" road to link
you too
should explore without
construction in 1955.
Paving of Bangkok with the undeveloped
delay. Swiss and German inter¬
five major highways is scheduled. Northeast provinces.

levy and 3% license tax.

Now all

The

still

One

member

the

of

have

ests

U.

S.

businessman

gards Colombia

of

as one

Although

re¬

best

our

income

from

In Africa

nations
into

there

which

first-class

at least five

are

can

be

lishing

developed

markets

in

lost

no

time

in

estab¬

firm foothold in Lebanon,

a

Arriving in Europe from the
East, we quickly spot a

1955.

Middle

coffee will fall, vast hydroelectric

South Africa—already one of your

market

projects will boost spending.

good customers—will increase her

year

mittances

to

overseas

Re¬

suppliers

will be accelerated while the peso

should strengthen this year.
Ecuador
one
of
the

most

—

neglected

Latin American

all

of

the

reserves

of

are

heavy

mainly because Moreover, the need for skilled la¬
sales early last bor in mines will modify the po¬

up

cocoa

Talk

protective

of

discounted.

general

duties litical tensions.

Crossing over the border
exporters the Rhodesias, we find two

American
are

optimistic

over

fu¬

Imports of

kets

that

here

have

slighted

pletely

in

been

the

into
mar¬
com¬

past by
In both

capital

equipment,
trucks
and American exporters.
regain some of their Northern and Southern Rhodesia,
lost momentum as new farm and world demand for such key met¬
road
construction
projects near als as gold, asbestos and copper,
as
well as U. S. stockpiling of
completion.
Peru's
outlook is much
more
strategic materials, have brought
favorable than a year ago. Cotton a new prosperity. In 1953 an astute
and sugar production in 1954 ex¬ government
administration cur¬
will

1953

ceeded

will

ports
Bank

will

levels

and

continue
The

lend

to

rice

ex¬

show

a

Export-Import

Peru

up

to

$100

million to finance copper projects.

tailed development projects when
a

balance

of

occurred.
controls

payments deficiency
last

But

were

assortment

year

relaxed

of

on

import
large

a

nonsterling

goods,

Purchases of heavy machinery and

including vehicle spare parts. The
climb, with a postwar expansion will be renewed
with
vigor,
assisted
by World
tificates scheduled for automotive Bank loans, British guidance, and
imports. The sol will strengthen a favorable trade surplus for the
durable

items

will

hefty jump in dollar exchange cer¬

further

since

the

only

apparent

obstacle to progress
and

erals

which

are

in 1955 would
quotas on min¬

petroleum—neither
now

America's

of

anticipated.

automotive business¬

should

experience improved
next year be¬
cause you
can count on a more
stable economy there than in 1954.

men

in

Uruguay

revived

itself

last

Federation
An

even

of

extensive earnings from ship¬
ping, enable the country to almost
close tRe dollar
gap.
Although
the

Swedes
tariff

S.

alizatioh

tain.

on

are

fabulous

store¬

bitter

dollar

imports is

Swedish-Russian

probably

over

thf

shrink

in

trade

1955,

cer¬

will

while

iron and steel firms will find

new

customers in the Middle East and

Asia.

Norway is another nation whereAmerican discrimination will play
a

part in determining your
Right now, Oslo

large

export business.
is

complaining about U. S. immi¬
gration laws, which work a hard¬
ship on Norwegian shipping lines
and

seamen.

Norway's
crease

to

be

Chances

are

will

Government

that

in¬

the number of automobiles

imported in

1955.

At least

four

large auto associations there
backing the move. Because of
present import restrictions, there
is a waiting list of some 20,000

are

persons

to

set-up,

buy

cars.

Under the

East Euro¬
be brought into

only

pean
autos can
lies
Norway without a license. As a
most
result, the average car there is
promising market in the world 13
years old. Despite the continu¬
for
the
salesman
of
tomorrow.
ing import surplus, the outlook
For here in the heart of Africa,
for the Norwegian economy points

house

in

of

the

strategic

Belgian

in addition

materials

Congo,

the

to the endless streams

improvement. In¬
dustrial output and exports will
tin and industrial dia¬
gain, while the krone is sure to
Crop and cattle-raising conditions monds, is nearly $750 million of
strengthen. The country intends
are good so exports again will be
refugee gold and foreign exchange to float a substantial dollar loan
able to offset imports. A pickup belonging to the Western world.
in the New York market.
These
in the tempo of collection pay¬ This
money
chiefly
represents
steps all indicate that relaxation
ments is in sight, while greater capital that sought a safe haven
Continued on page 66
availability of capital is bound to after the outbreak of war in Ko¬
of

uranium, cobalt, copper, man¬

v

action, further libei^

current

Rhodesia.

more

a

to

U.

restrictions should be

import

that

after

prolonged period in
dollar automotive purchases sub¬ the doldrums.
Despite the U. S.
stantially.
Import controls will Treasury's anti - dumping ruling*
be steadily lifted and exchange
against Swedish hardboard, Stock¬
allotments are sure to be more holm
enjoyed one of its. best for¬
generous. Continuing demand for eign trade years in history.
The
gold and uranium will support her 10% jump in exports, in addition

continue to enjoy
sharp upward trend of exports climbing foreign exchange re¬
begun in 1954. Gold and exchange serves and a stronger currency.

markets—will

sales

A

tremen¬

cars

be U. S. tariffs or

gold

will

cause

next three years.

comeback.

materials.

struction

to deal in

longer

struction industry and many more

6»\

industry. Exporters willing rea, but never returned to the
triangular transactions original source. At the same time
find
a
readily expanding cotton, rubber, cocoa, timber anoL

spur

advertising and ex- nearly
4,000. Although tight con¬
terms to preserve trols will
stilly guard Peron's for¬
their
business
from
European eign
exchange,
the
continued
competition. Unfortunately, pay¬ business
upturn in Argentina is
ments on purchases from the U. S.
expected to prompt further dollar
will continue to be slow because
allocation by the Government for
of the shortage of bolivars and
vehicles.
Government "red-tape." However,
Hopping over to the Far East
if you can afford to be more
we find only two countries where
lenient with your terms to Vene¬
the economic background is re¬
zuela, you will receive large divi¬
dends in the end.
No letup is ceptive for greater automotive
sales.
The first, the Philippines,
forecast for the mammoth con¬
jtend

autos

Republic

remain

avidly contested

highway system being built along
Guatemala's
Pacific
slope.
The
U. S. is determined to keep this
of Democracy

be

American exporters

ture sales to Ecuador.

chase them in addition to the total

Trade

of the

one

overlook the long and impressive

side

will

will

in

Central American

Con¬

oil, the Venezuelan
market

visit

absence of

Foreign

automotive

and

France, Germany, Sweden, United

President's

purchases

from

earned

vehicles

Kingdom and other nations.

Program Will Boost U. S. Imports

goods

year.

their best buy.

deficiencies

stimulated by building projects.
With an abundance of dollars

with
the exception of lubricants. A re¬
cent decree is designed to protect
domestic producers. As you know,
Mexicans have a strong prefer¬
ence for American autos, particu¬
larly two-tone cars, and the in¬
roads made in 1954 by European
automobile
producers
following
the
devaluation convinced
peso
many more Mexicans that U. S.
were

determina¬

a

the

overcome

drastic readjustments.

markets.

import controls will
continue in Mexico, your automo¬

Although

stimulate American

to

sales abroad in 1955.
is

forces

several

are

there is

years,

tion to
with

be

the second half

year.

has dropped 35% in the past

come

Purchases by Europe

Africa.

and

the

Both

dip in the European beet sugar
crop.
Although Government in¬

and Means Committee and Senate

reduction

healthy export
shipments will
nearly 4% of our total

represent

low-tariff leaders.
powerful House Ways

will

continue

business.

by

policy

$13 billion this

amount to

a

American goods.

on

sales

overseas

1954—will expand. Another bright
to suddenly appear in the
somewhat weakened economy is

replaced

and

trade

thqt the high-tariff

note

that

be adopted by the U. S. Congress.
This too will inspire some nations
to loosen curbs

is

advocates in Congress who headed
the key committees have-been

chance

excellent

an

cur¬

elections

(525)

toward general

ganese,

\
%

The Commercial and

66

rnviim.oA

f

irnm

A thorough under- upon any particular bank to retire
such notes when issued.
"The fact that the authority to
try also will be a tremendous as- fix such rate of interest is in preset.
cisely the same sentence as that
Moreover, the 1955 exporter will empowering the Board to regulate
have to budget more funds for the amount of notes issued to any
sales promotion and merchandis- individual bank, indicates that
ing of his product. He must rec- Congress had in view a method of
ognize the fact before it is too controlling the circulation of Fedlate that he must double his ad- eral reserve notes in each individvertising in overseas markets, just ual district. .
as domestic business already has
"... The Act says that the Board
done with highly favorable re- may grant the application of any
suits. Additional services, better Federal reserve bank for Federal
credit terms and far more careful reserve notes, either in whole or
investigation of each market will in part, but to the extent that
be required of him. For instance, such application is granted, 'such
either he or his representatives bank shall be charged with the
should travel abroad more fre- amount of such notes and shall
quently to investigate and analyze pay such rate of interest on said
foreign consumer buying tastes.
amount as may be established by
<po cement new relationships or the Reserve Board.'. . . [Italic in
strengthen old ones, the modern Memorandum.]
automotive exporter will have to
"it seems clear, therefore, that

acts business.

nnr/P

yOntinuea jrom page 00

ices are being accepted. The
line is Jan. 26.

offing.

dollar curbs is in the

on

AUIOlllOOliv IlXpUXIS

I Or

UI1I100K

worried
and will
map her buying strategy according to Washington's trade program,
Last year's tariff action by America
against Danish blue cheese
prevented Copenhagen from going
all the way in the December libtoo has been

Denmark

eased

trade deficit in 1954 and the econ-

generally has been set back,
if
the present downward
trend follows past experience of
reacting like the U. S. economic
pattern six to nine months later,
the Canadian upturn should be
noticeable around midyear. This
will bring with it stepped-up purchases of American cars so you
may look forward to better sales

they

time,

omy
But

were
38%
of

of

the«extent

to

Further relaxation
S. items, including vehicles

dollar

goods.

U.

on

that

At

ports.

Canadians encountered a serious

aoilar nn-

on

parts, can be counted upon if

and

the White House holds to its pres-

On this ba-

tariff intentions.

ent

sis, you

expect at least a 20%
export business with

can

rise in your

Denmark.

for

Prospects
domestic

business

excellent

in

are

Denmark,

Industrial production is on the up-

swing

exports

from

income

and

shipping has improved. The
tight exchange situation experienced earlier last year has eased,

approach in selling abroad in 1955.
First, to face the aggressive com-

disappointing crop harvest will
offset by Danish purchases of

previously untapped areas, the
U. S. salesman must be totally
familiar with the merits and deficiencies of the products sold by
his competitors, both at home and
overseas. Today, more than ever,

and

A

4?e

Commodities

with

local

petition from Western Europe in

currency

under the U. S. farm surplus program.

Netherlands

The

remain

will

world

the

end

no

1955
There is
for the steady

during

in

sight

attention

to

the

com-

holdings—now

close

.

:

—

Continued from

to

Production will conrise 'while
agriculture

page

5

$1.3 billion.
tinue

to

Dutch

n

.■

ff

guilder probably will
1955. With

A

become convertible in

import controls
for

be relaxed
fifth time since early 1954,

a

sure to

automouve

England has just lifted restncthe import of U.

on

will

and

is

to enter

well

number

brand

a

attitude

cant

of

during 1955.

four

over

in

allowed

reflects

cars

permit 640 autos worth

$1.4 million
This

S.

times

last

the

year

and

and

new

the

serve

required by law, the total of capi-

tal accounts would have been
$2,938,839,076, instead of $1,141,774,000, and the ratio to other liabilities would have been 5.8%

instead of 2.25%.

It is the obligation of a central
bank or central banking system
to be strong. And any weakening
of such bank or system as compared with what might have been

the case calls for scrutiny. This is

particularly true when the weak-

ening process arises from violation of law.
The ratio of the capital accounts
in nati0nal banks ($7,912,331,000)
to other liabilities ($103,847,479,-

000) amounted to approximately
7.6% as of Oct. 7, 1954.2 These

time of banks

can

to

turn

the

Reserve

banks when in need; but the Reserve banks, which can be subjected to all the pressures that
member banks, foreign banks, and
the Treasury can exercise, have a
ratio of capital accounts to other
liabilities of only 2.25%!

bank."

This Memorandum is published
in full in Henry Parker Willis',

The Federal Reserve System (The

since ]946 the Reserve authorities in vi0iation of a law of CongresS? haVe been weakening the
capital structure of the Federal
Reserve banks as compared with
what would have been the case

Ronald Press Co., New York, 1923), had those authorities administered
the System in accordance with the
that the requirements of the Federal Re¬
^,issl^.ation, by
serve Act. ShouM those authorithonties of approximately 90% of ties be able to demonstrate that
|he net earnings of the Federal capital accounts of 2.25% of other
Reserve banks, 1947 to date, does nabiiities is adequate, the fact
n0* /j.
remains that it should not
granted in Section 16 (4) which have been reduced from 5.8%
was designed to provide the Board to the present level by violating
with an instrument of control over a law of Congress,

If'

1^1^. J|

IlVllfllll WWIOICM.

have the right, acting through the all

persist-

signifi-

Federal

Reserve

2Prcss „(cas, of the ComptrolIer of

December 9> 1954'—

banks are

participating

eraI Reserve notes less the amount

lnd Surplus of the 12 Federal

in

^
m

^

that violation; (jOnSUIUBrS rOWBf

Federal Reserve agent, to grant
m whole or in part, or to reject
entirely the application of any
Federal Reserve bank for Federal
Reserve notes; but to the extent
that such application, may be
granted the Board of Governors
of the Federal Reserve System

tlOi

and Congress is failing to see to
ber of the Board of Governors and
it that its own law is administered
QUO/ BoitOS Offered
n0 present of a Federal Reserve
legally as intended.
V/q./u wviiw* viiwiwm
bank bas oppose(j and fought this
The earnings of the Federal
An investment banking group
violation of Section 7 and distorReserve banks illegally turned headed jointly by Harriman Rip- '
tion
ot- the meaning 0f Section
over to the United States Treasury ley & Co., Inc. and The First Bos16 ^ of the Federal Reserve Act.
are as follows:
ton Corp. yesterday (Jan 26) of' shall, through its local Federal
1047
$75 223 818
fered $30,000,000 of Consumers
tJer aJs l f •+
naintpHnnt
Reserve agent, supply Federal Re3943
166 690 356
Power Co. first mortgage bonds
L
"rve notes to the banks so ap9I9
i93l«837
u\
3V4% series, due Feb. 1, 1990, at
!blatI
plying, and such banks shall be
1999
196628858
102.325% to yield 3.14% to maih
ft hi! ff,iwu?,
charged with the amount of the
195J
254.873.583
turity. The group won the issue
P
®
®
qn„y . notes issued to it and shall pay
jq>;2 ~ "
291 934 634
at competitive bidding on Jan. 25
d'f
P'0*1™?4fZ
such rate of interest as may be
[993
342 567 984
with a bid of 101.769 for the indi;"et earnwg««n®^6 established by the Board of Gov[954
276 0000001
cated coupon.
i
To supp£ ernors o£ the Federal Reserve
Proceeds from the sale of the
ment tL powei of the Boafd in Sys£em on °"!y that amount o£
Total.... $1,797,065,076
bonds will be used by the comrediscount rate The suc
notes wb'cb equals the total
pany to pay for part of its con"S use 01 tne reaiscount raxe. ine amount of its outstanding FedAs of Dec. 29, 1954, the Capital ^mr-tinn urogram which cost
this author knows, no mem-

as

_

,

Government.

:

volume of Federal Reserve

+

notes issued m each Federal Re-

(4) [U.S. The Reserve Board has been
C"rrency'
which is violating the law since Inland w- E- s"
involved reads. The Board shall is still doing so, the presidents of

ent violation of law is that, in so

Lifting Restrictions

far

tions

f|

1

01*11

■

A sad commentary on the state
of affairs revealed in this

•:

.

the

at

earnings of $1,797,065,076 been
added to Surplus (Section 7), as

sbou'd this violation of law be
That part of Section 16
™ntinued year *"er
Code, title 12 sec. 414]

ex-

porter.
Britain

<

ACl ullll VlOlfitfiu!

,

offered^ promising^market for
C wide-aTakf

f

f|

SSprtlfill 7 Of FPflfMHil itCSfifVft
g^VVliVll 1 U1 1 UUUUi

will hold at the present high level.

The

may,

675) on that date was approximately 2.25%. Had the dissipated

granting any application for Federal reserve notes, fix such rate
of interest as it sees fit to be paid
on the notes issued in compliance
with that particular application,
and this rate is in no way dependent upon any previous rate
charged to that Federal reserve
bank or to any other Federal re-

and miraculous climb in gold and
dollar

Board

all other liabilities ($50,716,248,-

be should know the language of efit froin America's improved for- pp. 883-885.
^
*be nations with which he trans- eign trade outlook in 1955.
It should be obvious

of the strongest economies in

one

more

plaints received from his importers
abroad.
Furthermore, he
should aim at preventing errors
by offering merchandise of improved quality, as well as establishing more consistent production and shipping schedules. His
1955 code of selling also will
necessitate continual testing of
sample areas so as to develop new
markets before his European competitor gets there. If these few
key steps are followed, there is no
reason why all of you cannot ben-

In order to share in the broader
buying potential of these 24 countries, the American automotive
exporter will have to adopt a new

foreign

and

trade

devote

in the second half of the year.

increased

both

dead-

Today's tour ends in Canada,
where exports appear to be on
the rebound once again and gold
and dollars of the Government are
at an all-time peak of over $1.9
billion. It is well known that the

about U. S. import policy

eralization of curbs

Fvnnvlc

Alli/fcYHfinilA

AhIIaaIv (aii

standing of the economic and political background of each coun-

__

_

"*

Financial Chronicle... Thursday, January 27, 1955

(526)

wPr

It

marks

another

British

step in

elimination of exchange

the

trols and is

before

long

quotas

be

will

cars

con-

definite tip-off that.

a

on

almost

American

completely

„abolished. You would be wise to
Start cultivating this market now,
..

"ot
r

,°"lyl foy furrent. busl"ess, but
ng-term, since there aie
t

e

great number of people in the
United Kingdom who like power
a

and

comfort

and

afford

can

the

m.a^ " ,me

Reff^rauThorTies
^es.erve

auinonties

of

certRicates beld

ld

by the

Reserve banks stood as follows:

about
wb:ph

$69^70.000
it; pvnPptpH

in 1954 and
cost

tn

over

"the" rediscount ?ate, Federal Reserve agent as collat- Capital paid in [by $287,558 000 $70,000 ,000 Oct 31 1954From comthis year.
Jan.
eral security."
member banks!
i 1949 to
the
S"11 ^ f"r^her in ,1955- p^n^ion of Federal Reserve ncftes °n
15' 1915' G°^nsel °f the Surplus (Section 7)" 625'013-000 pany made gross' property addisteel, metalworking and

rInhf,dfrrRrintfshfnH^ftr;tiTf!" siin
autos.
British industrial procan

by raising

_

with

ve-

hicle output showing

he greatest

Gold and dollar

vitality.
should

approach

the

reserves

billion

$3.5

this year, making non-resi-

mark

dent convertibility
reality by 1956.

of

sterling

a

Our last European stop is $nain

heavy

where

amounting

11

mihtarv

aid

^;o

t'e

past fiscal year has been surpris-

mgly slow in boosting the
Franco

omy.

will

seek

econ-

another

Pa]^

,

■tea.srai Kesen/e notes Federal Re
Board submitted Surplus (Sec. 13 b)__
till
a Memorandum to Paul M. Wartax; on tneir use
burg Qf the Board Qn the subject
use

Ueany a
Were this provision of law to
be employed, as intended—and it
never was so used—, the Reserve
banks would have an opportunity
to avoid much or a11 such "interest" charge or tax by not expand-

levied under this provision of law
on the Federal Reserve notes is-

sued bv

each Reserve bank- and

that Counsel stated among other
things
"each 'serrate

"hat

Isue

of interest.
the
"A contrary

ferent purpose and procedure from

those
being
employed by
result would deBoard today. Now, at the end of feat the obvious intent of Congress
pressures
resulting the year, net earnings of the Re- to enable the Federal Reserve
assistance have been mod- serve
banks are computed, the Board to control, as far as posthus far.
Production will 6% dividend is paid to member sible,
the conditions governing

grants will be
Inflationary
from
erate

become

more

more

difficult to get.

diversified. A grow-

ing external debt, particularly to
Germany, puts Spanish credit facilities
there

near

is

the danger point. But

considerable

expansion

Spain.

of

opportunity

your

sales

to

The accumulated demand

for auto

parts is tremendous and

reliable

reports

indicate

that

agents of American producers are
eager

to build inventories.

over,

right now, bids for four au-

tomobile

cranes

lor




More-

riarour

Mu

banks, approximately 90% of the
remaining earnings is given to
the Treasury as "interest" on Federal Reserve notes, and what is
left is carried to Surplus (Sec. 7).
It should be thoroughly clear that
this procedure has nothing whatever
to do with regulating the
volume of Federal Reserve notes
entering circulation as was intended by Congress in the specifications of Section 16 (4) of the

v-Act.

w

1

.

1

_

1

,

..

.

,

Thf naiuTe and h_lstaFy 0.fo^e
SVT?}US
? ^■ SecUor} |3(b)
of the Federal Reserve Act are
such that we need not involve
ourselves in an explanation of
c

&s! wU*?toTe"«nTor ^rp^Tsio^^S^ions0?

i"g their volume of Federal Reserve notes^ a different Federal Reserve bank,
This, obviously, is a very dif- may be subject to a different rate

$300 million, but large American

for

0f bow interest charges might be

27,543,000 tions of approximately $304,500,-

$940,114,000

tbe (^Vtba0tnSar0ef be'nL

electric
nlant

plant

$60,300,000. for gas

600,000

Pla"J a d

other

for

$6 600 000

and

pa
The new bonds will be redeemab1e for the sinking fund at special redemption prices scaling
.

,

.

,

and

violated

The> 1««other cauital^accounts"

down from 105 33%
tv,

'

I

^

n

n^?tpd ^nuP hp
company buys and sells,
;
' ./h ' litt,
rplatinnJun tc, fe.n®rat?s a"d distributes elecJ? ^
.
\
nsnip t tricity m 1,479 communities and
I°wn.sbips, including rural areas
Poc„e,Q ftfLinio
in Michigan; buys, distributes and
JJ®?® f.
sFlls natural
in 278 communi^-es and
a^d seHs and
J*
.
olm„.c
distributes prooane-air gas. The
orfifoi
!,irrxi„e P°Pulation of
territory served
[LL -hanV?
exceeds 3,250,000.
99
1054
For the 12 months ended Oct.

J

0

^

000, of which $237,300,000 was for

nft

.

,

t

the demand for credit and to enable the Board to adapt not only
rediscount rates but also the volume of Federal reserve notes to
nf
the varying needs of different
sections of the country.
L'
f,
.
.
The paragraph quoted cllrT.i®
«nthpr panitai
above [the pertinent part of Sec- ®
r|ntnl
141 7740001
tn
tion 16 (4), quoted above] clearly
^
' * '
'
'
''
authorizes the Board to control
1 Fortieth Annual Report of the Board
not only the issue of notes to a of Go"er"°™ of thea*e£Zra\ ReseJve Sys~
particular bank but also to fix or {947-1^, thrPquot«fti prell rliLs^for
determine the pressure to be put the data

on

1954.—w. E. s.

31, 1954, total operating revenue
amounted to $166,994,000 and net
income $26,427,000, which cornpares with operating revenue of

$157,599,000 and net income of
$24,836,000 for the year 1953 and

$137,435,000 total revenues and
$19,750,000 net income for 1952.

Volume 181

Number 5398...The Commercial and Financial Chronicle

(527)

MUTUAL INVESTMENT FUNDS

SERIES
Trust

varying investment
objectives, currently in¬
350

orations.
i

For

reports year-end net assets

$791,073,860 with 28,267,407
outstanding
and
122,555
sharesholders. Comparable figures

last

shares

cor-

FREE

for

1953 were $522,368,398 in assets, 26,752,930 shares outstanding
and 113,678 shareholders.

formation folder and

prospectus, clip this ad
id mail with your name and
address.
^

NATIONAL SECURITIES &

The

value

asset

outlook

31

Dec.

and

2,124,031

shares

before,

months

12

were

secu¬

rities of American

Investors

tenor

In their annual report to share-

in

1954

amounted to 0.39 of 1% of average

net

reduction from the
figure of 0.41 of 1% for 1953.
assets,

a

the
the

stocks

at

prised

more

sets compared with 10% five years

$27.99

Dec.

at

highest for

120 Broadwoy, New York 5, New York

and

1954

was

year-end

stock

On the

years.

31,

any

splits

on

the

over

basis, the total
$1.02 in quarterly dividends
paid was the highest in the trust's
history.
same

of

The

year-end

share

in

total

93
•

FOUNDATION FUND

value

INCOME FUND

•

INSURANCE FUND

purposes

r»f

f

1954, the trust had

*an
these

stocks

common

134"' different

r

companies

91%

have

continuously*- for
10
and the^Temainder

LTD.

19 RECTOR STREET, NEW YORK 6. N. Y.

the above

or

«?'eU^S i°m °1iie^Theindustries were:
fiye largest anby

UlcWnk

be obtained from

vestments

local dealer.

petroleum

t

$165,842,435

(21%);
(11.6%); rail¬
roads $60,199,375 (7.6%); chemi¬
cals
$54,650,100
(6.9%);
and
metals
and
mining
$48,780,375
(6.2%).
utilities $91,869,412

Major changes in the trust's
portfolio for the fourth quarter of
III

1954 included:
PURCHASES

ATOMIC SCIENCE

Company—

Bought

Aluminum

through

Co.

Bethiehem

a

steel

C.

MUTUAL FUND.

I.

T.

of

America

Financial

General

20,200

Corp._;

Motors

lo.ooo

Corporation

-

28.000
?o ooo

—_

Kimberly-Clark Corp.
Mission
West

10,000

Corporation

United

Aircraft

Va.

Pulp

45,000

Corp.__

and

20,000

;

Paper

Co

15,000

sales

ATOMIC DEVELOPMENT

company—
MUTUAL

FUND,

Inc.

American

Chance

is

designed to provide

Sold

Viscose

Vought

International

Corp

i5.ooo

Aircraft

Harvester

11,800
Co.___

Mission
a

managed investment

Development Co._
Montgomery ward & Co

Standard

in

variety of

a

Texas

Oil

Co.

Pacific

companies participating

ports

resulting

from Atomic Science.

473

ATOMIC DEVELOPMENT SECURITIES CO.
THIRTIETH

value
1954

the

a

was

end

48.5%

7. 0. C

a

new

record

with

$36,Net asset

the

at

re¬

$51,384.-

of

earlier.

share

close

of

$24.94 against $16.96 at
of

STREET. N. W.

WASHINGTON

TRUST

compares

year

per

20,000

net p^ots

which

018,564
SET THE FACTS AND FREE PROSPECTUS

11,900

Trust

Dec. 31, 1954,

on

high

20,000

SHARES

total

78,000

107,066

:

(Ohio)

Land

CENTURY

in activities

1033

Regarding the current outlook,
the trustees

stated,

.

continuous

in

increase

population, the accumulation, of
savings for investment and the cooperation of the government with

1953,

an

increase

of

including the capital gains

distribution

of

25

cents

a

share

were

2,060,592 shares outstanding

higher

business

convincing

be made

case can

to

support such a forecast,"
department comments.

the

"The

economy has been liqui¬
dating Korea since the third quar¬

ter

of

1953.

This

deflationary
which
has been manifested by a decline
pressure

in

the

on

armament

economy,

orders

ventories,

appears

in

the

1954.

Added

aucLin

have

to

fourth

in¬

befcn

quarter

factors

;"su^ance,,

J

a

trend in economic

which
of

of

of

strength

goals,"

should

unions

push

lead

it

considers

unreasonable

it

engender

directors of

of

announced

to

Atomic De-

Fund,

Inc.,

it

trouble
for

today by Newton

Steers, Jr., President, and Merle
Thorpe, Chairman of the Board,
John

could

R.

Menke, President of
Development Associates,
Inc., White Plains, N. Y., a firm of
Nuclear

than

demands,
labor

more

been

witnessed

indirect

effects

the

on

in

ing, is

of

one

nuclear

the

WOria.

;

to 1946 Dr. Merritt

HOm iy<tZ

prnjPf,f

tt

^AOJeLl,

q

Manhattan

of

U ••=>• Aimy.

desire

a

tories

in

to

Wilson Hewitt
ager

in

Ohio

and

of

William

wholesale

as

man¬

western

Pennsylvania,
Virginia for the

West

million

announced

Delaware

Fund

inven¬

up

of

substantial

interest

business

insurance

strike.

a

retained

in

the

through

was

dicated
money

the

would

be

rates

money

construction

in¬

seem

for

industry,

but
business

increased

inventories.

"Although stocks

GLICKENHAUS, senior

partner of Glickenhaus & Lembo,

director of National Life &

not

are

a

Insurance

has

been

elected

a

director

Guardian Mutual Fund.

organized

Berman,

by

change firm,

Neuberger

York

New

in

of

The fund

Stock

1950.

&

Ex¬

exces¬

Life

a

Company;
and
Becker, President and

E.

director of Franklin Life Insur¬

Company.

ance

Capitalization of
consists
solely of

the
the

company

1,400,000

shares of the current is¬

common
sue.

booms,

offering are:

stock prices are high in
relation to experience of recent
Estimated earnings of the

years.

Dow-Jones Industrial averages for
about

are

Dickson

Johnston,

Brown

the

Dow-Jones

selling

are

14.6

at

41/4%.

price-earn¬

a

yield of

a

years.

action of the Federal Re¬

increasing

margin

Legg

Reynolds
Central
Courts

Incorporated
Corporation
Co.

&

Co.

(Incorporated)

Co.

Lewis

&

Co.

Co.

&

Barth

&

Boettcher

Co.

and

Company

Bosworth, Sullivan & Company,
Dempsey-Tegeler & Co.
First Securities
William

,

Co.

Co.

McDaniel

J.

&

Company
Sons

Republic

Cruttenden

Sutro

&
&

&

&

R.

Inc.

Corporation

Staats

&

Co.

re¬

be

interpreted as a finger raised
against allowing the
current trend to get out of hand
in

warning

Fund, Inc.

ADAMS

AVAILABLE
YOUR

ON

LOCAL

THESE

MUTUAL

INVESTMENT

FUNDS

DEALER.

Hugh w. long

and

Incorporated

Lot Angeles

Westminster

at

company

OR

«'

Parser, Elizabeth 3, Hew Jersey

The

Adams

amounted

31

Express

to

Com¬

$49,019,966,

equal

all

which

of

during
$1.46

$37.08

per

share

at

amounted

cJ .!7jo-iton

was

to $1.56 per share,

paid

out

as

dividends

tho year.
Net
long-term capital
realized amounted to $1,929,823, or
per

share,
full

in

dend

December,

in

FUND

of 1953.

Net income

gains

to

PUTNAM

$68,133,974,

equal to $51.53 per ;hare of common stock
outstanding.
Both figures are the highest
in
the company's history as a closed-end
investment
company
and
compare
with
the end

Cleveland

of

Dec.

U/te Jjeorqe

speculative

EXPRESS

assets

at

to

which

was

shareholders

1954.

also
as

a

dis¬
divi¬

the

Company,

Lemon

C.

or

&

in

Co.

&

John

This compares with

in

S.

Equitable Securities

Alex.

level

400

"The

R.

Walston

for the last five years.

same as

the

those associated

Among

virtually

$27.35,

times earnings and yielding

Fund, Inc.

a

Insurance

Charles

earnings, and yields, as
they were at the crest of previous

1954

Fund, Inc.

Company;

director of Northwestern National

values,

Net

FROM

ad¬

expects

company

to utilize the services of Alfred M.

George W. Wells, President and

durings,1955. Demand for
should be high not only in

probably

pany

Chicago

life

secu¬

investment

as

and the

visers,

and

housing starts

tributed




of

sively priced in relation to book
SETH M.

Diversified Growth Stock

San Francisco

1

or

forms

stocks

Accident

and

and degenerate into a

February 1,1955.

Chicago 3, Illinois

other

this impetus would begin to wear

serve

PROSPECTUSES

President

in combination with
insurance, and in
companies which have

clusively

off

Tuesday.

shareholders

21,1955

in

ments

company

concentrate
invest¬
stocks
of
companies

to

writing life insurance, either ex-

been

build

anticipation of

"Firmer

income, payable February

135 S. LaSalie Street,

investment

new

of¬

continuous

For

flect

share from investment

January

The

expects,

at the

net asset value.

rity ownership.
be quite impor¬
Templeton, Dobbrow & Vance,
example, the high level
Inc., investment counsellors, have
automobile production may re¬

tant.

correspondingly affected.

Armv

THE APPOINTMENT

$25

Chief of

was

Raw Materials for the

Manhattan Bond

8^

■„

directors.

Fund, Inc. have

D.Tripp

redeemable

quirements slightly may probably

The Directors of Television-

C.

J.

engineer¬

new

25th CONSECUTIVE DIVIDEND

Chester

and

.

ml

of record

Co.

could

economy

6% for the average of the last five

to

&

Co.

If
a
fear
of
shortages
should
Best, insurance
counsellor, and
spread, it could cause a substantial
Wolfe, Corcoran & Linder, con¬
Mr.
Menke's
organization
has buying wave which would have a sulting actuaries for specific eval¬
served as technical advisor to the profound effect upon the economy
uation studies, from time to time.
Fund since its inception.
He is because of the low condition of
Raymond T. Smith will serve as
also a director of the Atomic In¬ inventories,
and create artificial
president of Life Insurance In¬
scarcities. Present sober business
dustrial Forum, Inc.
vestors, In(i., and will also con¬
sentiment might well
catch the tinue as a vice-president of Alfred
Dr. Phillip L. Merritt of the E.
optimistic fever of the stock mar¬ M. Best Company, Inc., publishers
J. Longyear Company, Minneapket and result in speculative in¬
olis Minn
of insurance reports. J. C. Brad¬
consulting minim? en' AV11I,I1-» consulting milling en
ford, partner of J. C. Bradford &
gineers and
geologists, was also ventory buying and price rises.
"The
liberalization
of
credit Co.,
elected
investment
bankers,
and
director.
From
1947
to
terms in 1954 gave the construc¬ formerly board chairman of Life
1954, Dr. Merritt was Assistant
tion industry a tremendous im¬ & Casualty Insurance Company is
Director of the U. S. Atomic Enpetus, which one senses has taken secretary and treasurer.
ergy Commission's
Division of
on a slightly speculative tinge in
Directors of the new company
Raw Materials, where he was in
recent
months.
Unless
rampant are: Messrs. Smith and Bradford;
charge of uranium
exploration
Eldon
speculation develops, the effect of
Stevenson, Jr., President
tTirniiPhoiit tTip worlH
From 1Q49
consultants

Diversified Investment

28, 1955

&

jointly head an
investment
group
offering
for
public sale today 1,400,000 com¬
mon shares, $1 par value, of Life
Insurance
Investors,' Inc. " The
Stock is priced at $16.25 per share
in blocks of less than 3,000 shares,
and at slightly lower prices for "
larger blocks.
The company was incorporated
on
Dec. 3, 1954 as a diversified
management investment company

a

time.

some

"The

has

this

"If

management

the

elected

attain

to

states.

to what

ings ratio of 10.2 and

dividend of

Today

Weld

Bradford

be

may

hard

en-

been

velopment Mutual
was

their

the

to

have

Fundamental Investors, Inc.

a

White,

shares will be

vironment,
expected

Industrials

per

Offered

company within the
convertibility meaning of the Investment Compayn Act of 1940, and thereupon
currencies."

important

At

declared

Life F und Shares

activity abroad v"open-end"

MEN eminent in atomic

,ergy

of

digestion."

lead .to

may

The firm's

are

bfijking^hich are
s fields- of investment.

period

a

**•

are the'high level of construction of
the
"closed-end"
type,
but
activity and the continued up¬ within 30 days will become an

the

Electronics

be

■

activity

Bullock's investment management
department.
"A

would

,

forecasts

boom, states Calvin

a

marked

t

was

paid in January of last year. There

various

of, general

op¬

general

analysis lists a num¬
contributber of disturbing possibilities, in¬ holder's option at
in8 to the growth and developThere will be no
ment of the American economy cluding labor trouble. "In view
of the favorable
economic en¬ fering of shares.
and are beneficial to the two

paid»board

yea^ or more

may

the case with banks,

vin TWO

I1 d^ejt industries.

stocks,

dividends

Distributed by

Prospectuses

was

growing and essential industries,

Of

HARE'S

alsq

the

lif-fed

as

business enterprise

Average

investments in the
Funds for various"*1

investment

as-

ownership-has
in-*
creased
substantially vover
the
years, the report notes, and was
231
shares
per
shareholder
at

t

At the end of
Mutual

than 30%..;of net

excellent,

were

"The

February 1954.

com-

casualty companies, results for the
year

.

capital gain discents per
share

a

24

1954

year-end.

.

,

•

of

mhde in

was

GROWTH FUND

addition,

tribution

of

comment

this field

,
.

\

•

per

$19.53 and the
dividends for 1953: was

cents.
In

-

asset

end

that both in
and in that of straight

and

ago,

was

BANK FUND

•

1953

of

the

uniformly

moderately

a

operating

basis of adjustment for stock divi-

CORPORATION

Established 1930

the

to

rather than

dends

RESEARCH

of

of

points
level

expenses

is

although

holders, the trustees observe that

The trustees point out that the
trust's holdings of life insurance

share

per

1955

in

timistic,

months, the rise has acat a dizzy pace.
Probably the most constructive 'devel¬
opment that could occur in the
celerated

Sentiment regarding the business

By ROBERT R. RICH
MASSACHUSETTS

Mutual Funds with

over

few

last

New Boom in '56

SECURITIES

vested in

frenzy. The advance over the last
year has been rapid, and, over the

Bullock Sees No

NATIONAL

67

Putnam Fund Distributors. Inc.
50 State

Street, Boston

(>

\

C8

(528)

The Commercial and Financial
Chronicle...

Continued

jrom first

the

page

ed expectations lies precisely in this
characteristic persistence of Amer¬
icans

to

farther ahead.

look

looking

ahead

explanation

this

of

not

is

of

significant.

inherent

Americans

of

eagerness

to

adjust plans and programs, to
change traditional ways of doing
things, to work hard, and even to

pick

stakes and

up

tempt
raise

be

to

in

move

at¬

an

productive,

more

to

living standards, and to

greater

cure

se¬

freedom.

I have been asked to discuss the

long-term outlook. This, of course,
is a subject uppermost in the mind
of

with

connected

person

every

the machinery of the Employment
The Joint Economic

Act of 194-3.

Committee

jects

Staff

trends

constantly pro¬
population, labor

of

force, hours of work, productivity,
plans and expectations of

and the

Government,
where

on

business

to see

sumers

if

our

and

they throw light
be

economy "may"

as¬

sembled, and the Joint Committee
has published, what
reasonable

and

hope is

we

consistent

a

of

set

economic projections of these fac¬
tors

for

the

next

decade.

glad to provide

report to any

I

will

copy of this
interested. To¬
a

one

day I will try to summarize

our

major findings.
wish

I

I

the

into

and

assurance

Johnny.

day

set

It

Johnny's

forth

these

future

the

mately 30 million in 12 years is
to twice the population of
Canada. It represents an annual
increase of about 2xk

equivalent of the
population of Louisiana or Mary¬
the

or

year,

land.

conviction

that

mother

of

economic

an

standpoint,

changing composition of the
population between 1953 and 1965
is perhaps more significant than
the expected 19% growth in the
total. For example, the labor force
will probably increase only about
18%. On the other hand, the num¬
ber of children between

10

of

and

I find

youngsters
but

will

18

50%.

over

likely increase
father these

as a

heavy

are

the ages

consumers

not very productive. Also

are

number

of

persons

over

65

The effect of these

lation

changes

decade

will

during

other

and

next

consumer

goods

and

save,

the

on

Economic Growth of Production

cifically

us

analyze

now

more

spe¬

the factors making for
growth on the supply,
production side during the

or

next

economic

few

These

years.

drawing a picture of
Johnny," the fond
mother explained, "no one knows
what

able for work in

are

the

size

am

God."

"But

God

answered

looks
with

like."

Johnny

"They

assurance:

will when I get through."

Obviously,
rot

these

materials

presented today as

are

forecast

a

prediction of what will actually
happen in 1965. Rather, they are
projections of what could happen

hope

we

are

reasonable assumptions.
In

these

assumed

projections

we

have

Employment

the

"maximum"

Act's

economic

growth

as

♦he goal, but do not try to
justify
given level of unemployment

Moy

being consistent with that goal.
add, however, that we

I hasten to

have

not

in

pected
It

assumed

such

economy

an

would

sume a

overtime

an

would

as

be

ex¬

emergency.

be

unrealistic

constant,

or

to

as¬

steady, rate of

economic growth

every year. For
example, 1954 was slightly below
—just as the early months Of 1953
were

probably

term
ance

trend

above—the

line.

Also,

no

is made for major

longallow¬

depression

war.

The

calculations

1965, which I want
are

on

the basis of

present prices.

ity

of
should

the
be

for

the

year

to talk about,

approximately

Reasonable stabil¬

general

born so

price

level

the

goal.
Under this
assumption, income from the ex¬
pected significant increase in pro¬

ductivity would largely go to the
production—wages, sal¬
and

profits.

Such

from

assump¬

of work;
are

changes in

role

our

A

look

at

such

price

competitive system.

Population
the first

of

Trends

population

trends

analyze

economy is

where

our

is

national

heading. The size and

composition of the population af¬
fect both potential national
pro¬




reasonably
size

of

the

significant

the next

income

decade

consumer

investment

of

hour

in

output

per

will be the

assumed

output
3%

in

agricultural

man-hour will increase

per

per year, somewhat

less than

recent

years, but higher than
1910-1953 average of about

the

2%.

In nonagricultural industries
rise is assumed to be about

the

2.5%
with

per

year

sectors

some

the

on

more

average,
and some

less.

This is somewhat above the
1910-1953 average.

These

figures

of

work

on

total

from

ing

much
ous

1965

could

arrive at

or

respect¬

the demand
decade

side

dur¬

present

goods and services

State

local

and

hazard¬

—

Federal,

—

could

exceed

$95 billion in 1965, compared with
$85 billion in 1953.
As

first

a

approximation, the
Federal budget is assumed to be
balanced

in

new

1965

at

levels

per¬

for

I

the

economic

want
on

to

em¬

the part

American

average

con¬

hard

to

willingness to work

a

accomplish it.

In

.

housewives, youth

years

recent

and

the.-

aged have been taking jobs when¬

they were given an oppor¬
tunity, in order to supplement
family income and buy that

ever

the

television

set,

what-not.

The

refrigerator,
implications

this characteristic
It

means

are

of

fairly clear.

restlessness

a

or

the

on

part of most people and pressures
make modifications in
public

to

and
private programs
in ways
calculated to improve
living con¬
ditions and individual freedom.

lowering the savings rate toward
levels

of

of age should contribute to

years

of the

1920's.

These tremendous

developments

in

the

consumer

skill—both

ments.

I might say parenthetically,

have

made

tion

Act

ment

of

some

household

our

common

expressions

obsolete.

according to Charles

shouldn't

ask

the

Mrs.:

"What's

cookin'?"

Rather, one should in¬
quire, "What's thawin'?"
If

personal

ample,

savings,

amount

personal

to

disposable

compared with the
for

the first

in

1920's,

mand

would
in

ex¬

of

approximate

1965 and

$360

the

aggregate
demand of Government, business

and consumers will clear the

ket

of

the

$535

billion

cooperative

ing

with

nomic

the

only

growth.

One

and

does

of

eco¬

economic

not

have

to

that the national economy
conquered the business cycle
to recognize that the capacity for
economic

statesmanship on the
agriculture, labor, man¬

of

greater
I

and

today

Government

than

confident,

am

bankers and

ever

too,

financial

is

before.

that

the

institutions

to

today and tomorrow will pro¬
vide the money and credit needed
by

expanding

an

economy.

mar¬

Strides Area

potential

of Economic

Statistics

presented

of

one

problems

argue

Obviously the balanced growth

model

illustra¬

an

recognition of
responsibility of

has

production.
>

as

fluctuation

as

de¬

1946

recent

the Federal Government for deal¬

agement

1954, and

of

the

part

8!/2%

consumer

the

of

of

6%

income,
rate

quarter of

the

for

about

public and private
making economic adjust¬
I point
to the Employ¬

for

—

technological

area,

5%

task.

and

A
third
factor
important at
present, and particularly promis¬
ing for the future, is the new
machinery and the development

billion

difficult and

more

of

time, and an increase in the pro¬
portion of population under 18

a

Total Government expenditures
for

introduction

t

number of households headed
by
retired
workers,
more
leisure

present rates.

next

studies of present trends.

some

Mortimer, President of General
force,
Foods, in coming home from the
productivity
office
after
a
weary
day one
national pro¬

assumptions

on

the

by

labor

Efforts to estimate

growth

limit of perhaps 9-10%,
possibility which is indicated

and

be about $535 billion in
approxi¬
mately present prices, an increase

of 50%

ex¬

the next decade towards

over

For example,

$535 Billion Output in 1965
hours

for

products, changes in social aspira¬
tions and tastes, growth in the

Output

that

complicated,

force

which

matched by

budgeting of
savings
and

upper

However,

Agricultural
is

a

man-

worked.

It

rise
an

maxi¬

initiative

stantly to raise his level of liv¬
ing.
This objective, however, is

growth

ample, if the savings rate should

plus a high
by industry
and agriculture are expected to
make possible continued spectacu¬
of

be

second

expansion

dis¬

or

economic

between

Would

com¬

provide

for

phasize is the demand

that

area

contribute to

balanced

pattern of

pressures,

development,.

Possible

output is hours

Average hours of work

expected

to

continue

to

de¬

cline.

This might take the form of
a reduction in the work-week
by
1965 of as much as four
hours, or
increase in vacation

of

20-25

days

per

200

up

hours

1965.

A

to

a

per

or

year,

combination of these

adding

to

$60 billion

influencing the approximately

an

important step in trying

petitive

level

amount

factor

amount of national

tion would not, of
course, rule out

dynamic

a

the

1953.

A second

changes in individual prices and
the

make

of

already

are

most

and

rewards

in

this

study

number

a

is

which

could be
constructed, and actual
developments may differ in im¬

I want to say a

word about the

significant strides made in recent
in

years

the

of

area

economic

statistics, giving management inhelpful in * making
prompt adjustments in economic
formation

mitting tax reductions of perhaps
portant respects. Some would as¬
15 to 20% below the
hypothetical
changes in the desires of the
for
example,
an
even
programs, in the interests of sfa-„,
yields at present rates.. We would sume,
young, the aged, and women to
shorter work-week with
greater bility and growth. The Joint Eco¬
expect a State and local govern¬
enter or leave the labor
force, or
Committee
ment deficit of some $2 billion— emphasis on increased leisure, or nomic
publishes
a
migration into or out of the coun¬
a
different rate of productivity, booklet, each
month
entitled:
try, of course, could increase or reflecting the financing of schools, or a
greater role for Government "Economic Indicators."
hospitals,
and
other
decrease this estimate somewhat. highways,
expenditures.^
We
have, placed
It is interesting to note that
public
investment
expenditures
It is arbitrarily assumed that
ap¬
major reliance on private eco¬ out of all of
the statistical series
proximately 4% of the civilian necessary on a vast scale to keep nomic
expansion.
in this publication which we now
up with a rapidly growing popu¬
labor force will
be temporarily
If
events
are
to
lation.
I would like to
approximate take
for
granted
as
available
empha¬
unemployed as a result of techno¬
this model, however, personal ex¬
size
the
within a matter of days, very few
problem of State and
logical changes and normal turn¬
local finance. Innovations will be penditures for
consumption, by were in any similar sense avail¬
over in a dynamic and
expanding
one
means
or
another, must in¬ able two decades ago.
required if these governments are
A year
economy.
crease
significantly. It is believed ago, for example, we were dis¬
going to meet the demand for
that this adjustment, as well as
Accounting for present cold-war traditional
services.
cussing, on the basis of economic
most of the others that
requirements, perhaps 3 million
may be
Estimates of the rate of pri¬
facts, what ought to be done about
persons will be in the armed serv¬
needed, can come about as usual a
vate investment during the next
moderate
business
recession
ices. Another
million persons decade
have been made on the through the spontaneous adapta¬ which had been in progress only
seem likely to be
tion of the free private
employed in ci¬ assumption
competi¬ a few weeks.
that
population
Important correc¬
vilian
tive system. But I would
government—federal, state growth, research and
empha¬ tive policy steps — both private
develop¬
and local—compared with
size the important role of Gov¬
just un¬ ment,
and public—were made possible
and
intense
competitive
der 6 million in 1953.
Among those pressure will vastly expand busi¬ ernment monetary and fiscal pol¬ as a result of these economic data.
who
icies in facilitating this private
study the problem inten¬ ness investment opportunities.
We have not had to sit
innocently
sively, the consensus is that 5V2
We have
estimated that resi¬ expansion.
by, eventually to be overwhelmed
million persons will be
primarily dential nonfarm construction will
with
unemployment
and
with
Reasons for Optimism
engaged in agricultural work com¬ increase from $12 billion in 1953
cumulative liquidation of inven¬
In
spite of the obvious diffi¬ tories and credit.
pared with over 6V2 million in to $16 billion in 1965 to
achieve
1953. This represents a continua¬ and maintain
the stock of hous¬ culty involved in making some of
While
there
are
still
signifi¬
tion of the
long-term declining ing demanded by the anticipated these adjustments, there are rea¬
cant gaps in our statistical knowl¬
sons
for being
trend of agricultural
optimistic about
million
employment 56
households.
This
is
edge, I think all will agree that
the outlook for long-run
but at a rate of decline
slower equivalent
stability
to adding about
IV2
today we have better clinical tests
and growth in this
than has prevailed in recent
country.
new
years. million
housing units per
—temperature
readings, cardio¬
First
of
These calculations thus leave 60 year as
all,
the
American
compared with just over
grams, and the like—for the econ¬
spirit of enterprise gives industry,
million persons in private
nonag- one million in 1953.
agriculture, and labor a competi¬ omy than at any time before. I
ricultural employment in 1965—
Business expenditures on plant
won't go so far as to say that we
tive drive to surpass
an increase of
always the
just over 10 million and
equipment are assumed to achievements of the
have anything comparable to the

factors of
aries

we can

estimate

1965

labor force at that time.

„

or

the basis of what

of the labor force, hours of
work, and productivity.
All persons who will be avail¬

good

The Limits of the Projections

and

ing factors making for economic

into

re¬

research

acceptable

other.

A

per

that

breadwinner to

Let

He

output

potential for

the one hand, and to
decrease the capacity of the fam¬

asked what he

doing.

of

duction

on

competition
mum

enterprise.

man-hour. spending. The problem of main¬
maximum
Here lies the real secret of Amer¬ taining
employment
ican economic strength. Intensive and - balancedeconomic
growth
terms

suggest

increase

prices they are able to pay.
We must pursue
programs which
will facilitate and
strengthen this

19th

and

areas.

could either

over

The third factor affecting poten¬

the

to

The

turb

clothing, shelter

be

demand for food,

services,

popu¬

the

18th

Pattern of
Consumer Budgeting

tial production in 1965, of course,
is productivity, as measured
in

will increase by 30%, or signifi¬
cantly faster than the total popu¬
lation.

the

The Projected

expansionary

the

one

came

substantial

a

in

particularly to under¬

—

developed

force.

lar advances

From

the room, and seeing Johnny busy
with crayons and sheets of paper,

plied, "I

million each

with

seems

was

to

equal

ily

could

projections
little

be ex¬
increase to about 190
million people by 1965, compared
with just under
160 million in
1953.
This increase of approxi¬

the

/"')The Staff has recently

be

present fertility

On the basis of

con¬

heading.

be

that output.

pected

capital

expendi¬

Additional

did

at

centuries in the way of exporting

po¬

tures to satisfy the leisure-time
hobbies, educational and cultural
pursuits of the population should

rates, our population can

complete

a

our

Britain

output, its effect on con¬
sumption and investment is also

potential demand for

duction and

But

phenomenal
More important is the

progress.

to

could duplicate in the second half
of the 20th century
what Great

economic

tential

Daring the Next Decade

or

The

implications

significant in calculations of

Our National Economy

as

social

trend cannot be minimized. While

■O

on

ahead.

years

and

Thursday, January 27, 1955

holidays
or

some

past.

per

year—

1953.

over

This

figure is made up of about
$25 billion to replace fixed assets

actually
billion

retired,
for

and

about

accelerated

assets

and

for

the

replace¬

expansion

Some

sumed,

year

by

national

is

centives

man

weekend

something to look forward

to

in

of

the

increase

in

private

but

if

satisfactory

arrangements
to

be worked

private

straints
tribution
one

as¬

experiences

on

in

in¬

could

out, the United States

Not

first-hand

most

of

production

and

re¬

test," enabling economists
predict
accurately economic
turning-points, but our ability to

and

dis¬

time

remedial

countries

other

does

vate

and

American

our

"rabbit
to

practices

fully appreciate the dynamic

force

pri¬

minimizing

economic contraction is far better
than

competi¬

actions—both

public—for

it

was

when

we

were

de¬

probably

the

pendent exclusively on the "crys¬
tal ball," or looking at the patient's

important single factor

ex¬

tongue.

system.

plaining
vances,

and

volume and

services

It

the

inter¬

and

efforts

net

one

restrictive

tive

capacity.

alternatives, foreign investment has been
per

$35

until

ment of obsolete but not worn-out

reduction of about

three-day

60%

is

productivity
the

ad¬

ever-increasing

variety of goods and

available

to

consumers

The

Employment Act calls for

maximum economic

growth.

The

moderate projections which I have

presented

for

1965

suggest

the

'

Number 5398

181

Volume

during

probability

1953

between
An

the

The Commercial and Financial Chronicle

..

.

12

Continued

years

and 1965 of:
in

increase

increase in output

An

hour

40%

of

in

all

per man-

agriculture

35% in private industry;
An increase
in
total

and

national

output of nearly 50% in constant

prices;

and

A rise in real

Last

disposable income

truck

capita of nearly 30%.

per

These

estimates

line

of

out

achieved

at

surely not

are

with

the

actual

uninspiring

rate

a

of

four-year

near

the

500,000th

compared to

gain,

4.9%

a

ments

con¬

not warrant relaxation on

in

the

business,

nities.

There is

the

distributing
That pie

Product-wise,

If

when measured in terms of

unem¬

and

to

with

I will close

outside

and

an

pressure

the steel industry's efforts
increase in shipments of finished
by

shipments of finished steel should be notice¬

has

production

Ingot

on.

been

up

for several

paper.

inventories.

will push steel

trade

the

specifically

trade

comes

from

a

move

Bay E. Estes, director of commercial re¬
of stocks by con¬

magazine

shipments 2 to 3% above usage this year,

reports.

and

The American Iron and Steel Institute announced that the op¬

postwar settlements have been by
far the most unstabilizing factors

erating rate of steel companies having 96.1% of the steelmaking

in the last half century.

They have,

capacity for the week beginning Jan. 24, 1955, equivalent to 2,027-

of

forces for
is entirely

000 tons

preparations for

wars,

wars,

course,
also been
economic expansion. It

possible that

factors

autonomous
to

continue

will

dominate devel¬

opments in the next decade.
ahead

must look

we

of what we know and on the basis

of what

we

believe is reasonable

hope. Turning back then to the

to

balanced growth model

possibility that

there is some

have set

our

presented,

put

my

the

driver

who, in explaining the inscription
on the National Archives Building
Constitution

says:

tells
seen

ain't

"You

passengers

nothin' yet."

330,410 tons

.

*

.

,

-

*

.

'

;

f

Louis.

to The Financial

OPELOUSAS,
is

now

Co.

to The Financial

Mass.—Evelyn Phil¬

lips has been added to
Investors Planning
New

the staff of

Corporation of

England, Inc., 68 Devonshire

Street.

~

Joins Palmer,

Pollacchi

(Special to The Financial

BOSTON,
has

joined

established in the previous

kwh. above
week, when the actual output stood at 9,928,-

000,000 kwh., and an increase of 1,005,000,000 kwh., or 11.2% over
the comparable 1954 week and 1,837,000,000 kwh. over the like
week in 1953.

Chronicle)

Mass.—Webster Wilde

the

staff of

Pollacchi & Co., 84

Palmer

State Street.




18

Loadings Rise 7.1% In Latest Week

Loadings of

freight for the week ended Jan. 15, 1955,
7.1% above the preceding week, according

drop of 1.7% from the comparable 1954

a

Loadings totaled 644,940 cars, an increase of 25,069 cars or 4%
corresponding 1954 week, but a decrease of 60,077 cars

Output Last Week Registered Second Highest

The automotive

Commodity Price Index Reflected An

Irregular movements characterized the "Dun & Bradstreet"
daily wholesale commodity price index the past week. The index
closed at 278.16 on Jan.

and 275.11

the

on

18, comparing with 278.70

in leading

grain markets

Rye displayed independent firmness on the possibility of export trade developing and fears of an increasing scarcity of free
because so much has been put under Government loan. The
easier trend

ceipt

in

wheat reflected

limited

additional moisture in

of

History

the

mill

buying and the re¬
drought areas,

southwestern

expansion in cash grain receipts. Some export sales of corn
England and the Continent were noted but volume was not
heavy. Volume of trading in grain and soybean futures on the
Chicago Board of Trade showed little change for the week. Daily
an

to

sales totaled 46,000,000 bushels, against 46,200,000 the pre¬

average

vious week, and 48,800,000 in the same week last
year.
Following substantial bookings a week ago and lacking

previous week. The past week's production total of cars and trucks
units, an increase above the preceding week's
output of 8,662 units, states "Ward's." In the like week of 1954
137,681 units were turned out. It is worthy to note that in the
past week output of cars attained the second highest level in the
history of the United States.
Last week, the agency reported there were 22,725 trucks made
in the United States. This compared with 22,720 in the previous
a

year

ago.

Canadian

near

a

standstill last week.

Trading in coffee

only moderate with prices

a shade lower
showing considerable in¬
cheaper-priced coffees following the reductions last week
in their blend prices.
The domestic raw sugar market was dull
reflecting continued slow demand for the refined product. Lard

for the week.

was

Roasters

were

said to be

terest in

trended

lower

limited

export

influenced

by lagging demand for loose lard and
buying. Following a sharp break at mid-week,
hog prices recovered to show a slight rise for the week.
Trading in cattle at Chicago was featured by the sale of high
prime steers at $36.25, the highest price in two years.
mild

The

the

in

downward

trend in spot cotton prices continued,
Trading in most markets was fairly active with,

past week.
in

sales

the

the

14 markets reported

preceding

at 367,600 bales, against 317,800.

Persistent

week.

hedging, the

plants

turned

out

6,288

cars

1,003 trucks last week, against 6,056 cars and 977 trucks in
preceding week and 7,625 cars and 1,435 trucks in the com¬

sources

fairly

were

numerous

but

actual

limited in volume.

Since

to

Highest Level

April of 1954

Commercial and industrial failures climbed to 265 in the week
ended Jan. 20 from 200 in the

any

were

sales

for

export

were

Net CCC entries of

ended Jan. 7

entries for the

up

1954-crop cotton during the.
slightly to 71,200 bales, bringing totaL

through that date to 1,867,100 bales.

season

Volume

Spurred By Clearance Sales Higher

For Week and

preceding week, according to "Dun

•

Substantially Above 1954

Consumers' response to clearance events in the period ended

Wednesday of last week lifted retail sales slightly above the
level of the preceding week. Home
goods, apparel, and automo¬
on

biles registered the greatest increases.
The volume of trade in January has been considerably higher
than in 1954, and comparative figures this week were
particularly

large

result of last year's widespread

as a

panying

snow

storms and

accom¬

trade.

Suburban stores reported larger weekly and
yearly gains than did downtown outlets.
poor

the week

was

esti¬

a

Bradstreet, Inc.," to be from 4 to 8% larger than
Regional estimates varied from the comparable year-

year ago.

ago

levels

to

by the following percentages: South and Southwest
-}-6; New England, Northwest, and Pacific Coast +4 to
+8; East +5 to -f-9; Midwest +6 to +10.
|

Reduced-price promotions boosted purchases of household
goods the past week, with furniture, bedding, kitchenware, lamps
and floor coverings selling in greater volume.
Wholesale buying in the week was unchanged from the pre¬
ceding week but considerably above the corresponding week in

retailers'

While

stocks

of

low and substantial orders

apparel

were

and

household

goods

placed in these lines, trade

in cotton textiles and food declined.

Department store sales
the

Federal

Reserve

on a

country-wide basis

Board's index for the week

1955 advanced 16% from the like

ing week, Jan. 8, 1955,

an

period last

increase of 13%

year.
was

as

taken from

ended

Jan.

15,

In the preced¬

registered from

that of the similar period
Jan.

15,

1954

a

1955,

an

loss of 1%

Retail

trade

in 1954, and for the four weeks ended
increase of 12% was recorded.
For the year

was

in

registered below that of 1953.

New

store basis the increase

York

was

City

the

past

week

a year ago.

was

On

a

slightly

store-for-

about 4%.

According to the Federal Reserve Board's index department

year.

City for the weekly period ended Jan. 15,

increase of 14% above the like period of last
In the preceding week, Jan. 8, 1955, an increase of 5% was

1955, registered

Rise

of

mill demand and uncertainties over farm legislation
contributed to the easiness of the market. Inquiries from foreign,

store sales in New York

Failures

absence

aggressive

ahead of the volume of the like period

parable 1953 week.

Business

any

price inducement, trading in hard wheat bakery flours came'

to

1954.

amounted to 185,991

^

which improved small grain prospects. Corn and oats were under
considerable selling pressure and prices declined largely due to

were

estimated

mixed with

were

showing losses for the week.

rye

industry for the latest week, ended Jan. 21,

24,149 trucks

week earlier,

a

date last year.

same

movements

all grains except rye

according to "Ward's Automotive Reports," assembled an
163,266 cars, compared with 155,109 (revised) in the

and

hogs.

Irregular Trend the Past Week

+2

Railroads.

8.5% below the correspondent week in 1953.

the

to $6.84,
highest level in

mated by "Dun &

revenue

to the Association of American

week

number

the

was

The total dollar volume of retail trade in

Car

and
[

..

Jan.

is to show the general trend of food prices at the wholesale level.

This week's output constituted a gain of 53,000,000
that of the previous

"Ward's"

"

was

estimated

Chronicle)

the

The index represents the sum total of the price
per pound of
raw foodstuffs and meats in
general use and its chief function

Trade

week.

1955,

r

were

distributed by the electric light

Level In Country's

La.—William C.
connected with

Moderately

barley, butter, tea, eggs, potatoes, steers and
wheat, corn, oats, hams, bellies and coffee.

rye,

Lower

Week

Past

high record at 9,928,000,000 kwh.

U. S. Car

With Investors Planning
BOSTON,

In

for the week ended Saturday, Jan. 22, 1955,
was estimated
at 9,981,000,000 kwh., a new all-time high record,'
according to the Edison Electric Institute.
The previous all-time

Chronicle)

King Merritt & Co., Inc.

(Special

A New All-Time High

Output Registers

above the

With King Merritt

lifted

While this

week

The amount of electric energy

or

Lawless

75.6%.

Record

han is with A. G. Edwards & Sons,

(Special

77.8% and produc¬

of Jan. 1, 1954.

increased 42,737 cars or

111.—Donald D. Bro-

week

week earlier.

a

weeks, it marked
figure of $6.96.

*

(Special to The Financial Chronicle)

St.

as

Electric

With A. G. Edwards Sons
QUINCY,

was

The operating rate is not com¬
parable because capacity was loWer than capacity in 1955.
The
percentage figures for 1954 are based on annual capacity of 124,-

which

Avenue

"What is past is prologue,"
his

rate

A year ago the actual weekly production was

placed at 1,802,000 tons or

we

in

views

$6.81

seven

and power industry

words of a Washington cab

on

with 83.2%

annual capacity of 125,828,310 tons as of Jan. 1, 1955.

For the like week a month ago the

sights too high, but

them too low.
me

on

tion 1,850,000 tons.

history indicates an even greater
likelihood that we may have set
Let

of ingots and steel for castings as compared

(revised) and 2,008,000 tons a week ago.
The industry's ingot production rate for the weeks in 1955 is

But

the basis

on

capacity of the entire industry will be at an average of 84.0% of

based

week ago.

a

new

the increased demand for steel

for U. S. Steel Corp., thinks rebuilding

sumers

observation

an

factors,

of

restore

search

productivity.
that

here

this

Part

increasing

our

from

declares

ployment—because of our growing
force

cases

time

are 72 to 75% of ingot output.
The
remaining 25 to 28% is lost as scrap.
But in October and No¬
vember, latest months for which shipments figures are available,
only 65% of ingot output was shipped as finished steel. This means
mills were putting a good many ingots into a build-up of semi¬
finished steel, particularly slabs for the light, flat-rolled products,

slip—

labor

that

shipments of finished steel

actually

we

expects auto
However, some of the

everyone

midyear.

before

hardship

most

but shipments of finished steel have not kept pace.
Before they could boost shipments of finished steel, mills had to
build up stocks of the semi-finished product.
Ordinarily, mill

pie.

as many as

price index last

from

Wholesale

the
require¬

months,

Gross-National-

still

and

about

ease

The increase in

re¬

must be made bigger.

stand

we

size

same

"Steel," the

in hardship cases, it continues, is being achieved by
booking orders.
Steel producers are trying to leave spots
to accommodate orders from customers who need immediate

able

opportu¬

solution in

no

is not likely to get tighter, says

delivery.

have

we

food

Price

open

consumers

production, can
employment

of Capacity

in

care

and govern¬
ments increase their demand, and
hence

States

Relief

day-to¬

production
months. Only if

expanding

at United

supply tightness in some forms of steel,

over

industry,

softened

to relieve

national

for

coming

output

steel.

day economic problems. For ex¬
ample, I would like to emphasize
the importance of increasing total
demand

despair

to

be

will

Optimism,
This does

believe, is justified.

$100,000, twice

In Latest Week

weekly magazine of metalworking, the current week.
Much of the strength in demand, it states, stems from

long-

of

were up

Wholesale Food Price Index Rose

31

Don't

automobile

been

potential growth.

run

I

have

exploration

of

An increase also
liabilities under

ago.

casualties, those with
to 36 from 29, but did not equal the 37 of
Twenty-six of the failing concerns had liabilities in ex¬

last year.
cess

to 229 from

or more rose

year

small

among

$5,000, which

This Week

Economic Problems

an

appeared

a

Commodities advancing in wholesale cost the past week were

the current squeeze

remarks

in

increase

involving liabilities of $5,000

in both the previous week and

flour,

No Relaxation of Day-to-Day

to

Failures
171

A further moderate rise in the "Dun & Bradstreet" wholesale

slight gain during Jan.

a

Steel Output Scheduled to Rise to 84.0%

growth

construction.

My

week of 1939.

plants.

an

was realized during 25 years
depression, war, and world re¬

fined

comparable weeks of 1954 and 1953. Despite this upturn, mortal¬
ity remained 28% below the prewar level of 367 in the similar

high in United States car and
vehicle of the year produced

industry plant on Friday past.
production also showed

which
of

Industry

17-22, some 6,288 cars and 1,003 trucks were programmed, com¬
pared to 6,056 and 977 two weeks ago.
This represented a 3.7%

maturity and that it

achieve

cannot

has reached

now

week's

Canadian

the last quarter
century. To say they are too high
would be the same thing as saying

Bradstreet, Inc." At the highest level since last April, casualties
considerably the 208 and1173 which occurred in the

new

output found

some

rate

during

that America

shooting for

weekly records, with the latter three divisions
almost sure to erase all-time peaks set two weeks ago.
The strong level of car assembly was not matched by equally
impressive truck construction.
Nevertheless, truck manufacture
did edge upward slightly, enabling the past week's car and truck
production (185,991 units) to reach the best level since 188,845
jobs were built in the week ending Feb. 24, 1951.

nearly 10%;

69

exceeded

The State of Trade and

of the average an¬

A reduction

&

5

page

of

population

one-fifth;
nual hours of work of

from

(529)

an

reported from that of
four weeks ended Jan.
For the year

the similar week in 1953; while for the
an increase of 10% was reported.

15, 1955,

1954 the index advanced 1% from that of 1953.

*

The Commercial and Financial Chronicle

(530)

70

Continued jrorri page

tered the employ of First

16

Bank in July

in

various

of

News About Banks and Bankers

the

time

operating departments

bank

as.

for

served

he

-

City National will have capital of

some
•

~

100,000
of

Stockholders

Trust

Clinton

said that-the consolidation will
later this month upon re
ceipt of formal approval of the
Superintendent of Banks.
The
euiiiuuieu
combined assets of The Northern
wx
Stockholders
also approved th? Westchester Bank foundedJn 918
distribution of the additional 10,- an! The First National Bank of
ctnck ^rlivirlpndL
frninrloH
199.8 "Will
in000 shares as a stock ^dividend* Artfsley, founded n 1928,-will in
York, at their
Jan. 19 approved increase in the bank's authorized capital from 110,000 sales
to 120,000 snares oi $10 par atuuiv*
izu,uuu shares of
yai stock*
of New

Company

"meeting

annual

oUoroc

nnn

oc

on

son

occur

n

o

by directors; at' crease County Trust's assets to apthe rate of one new share for each proximately $295 million.
Ferd T.
11 shares held on Jan. 7, 1955. The Hopkins, President and director of
stock dividend is payable Feb., 10^ the Northern Westchester Bank,
1955. An item bearing on the pro- and Thomas H. Quinn, Chairman
oreviously

voted

»nVx<4-r.l

J

ir\

on*YoroorI

iM/YYi/YniNA

posed capital increase, apperaed in
tory
r
icciip
na(tp
77
our Jan. 6 issue, page 77.
it

*

it

of stock¬
Banks Trust

At the annual meeting

Savings

of

holders

mi

0f

nf

The

a

Dnvtlr

a!

i.

First

Bank

National

York

John

19,

Jan.

held

City,

Adikes, President of the Jamaica
avings
Bank
and
James
R.

Vice-President

First

Jr.

Hughes,

of the Savings Bank of Utica, were
,

_

J

.

,

Directors.

elected

of

Ca

made

March

ig53

Mr.

Newstreet

with

the

originally

the

^ ba£££f

in

He
P® W3S in tile Air r Orce.
xie has
nas
worked in various departments of
the

Development and Public Relations

Department.
*

*

pf

$25

also

^

TRtjSX

value The

par

bank's

Credit
credit

a vw a

Tt»i

A

t

E. Ryan to

11,893,447

10,836,399

named

23,254,597

19,567,380

Discounts

14,988,147

15,101,186

Undivided profits..

2,336,082

2,205,371

Cash and due from
banks

pvnirpd

U.S.

,

,

,

P

,

,

In

in

_

,

.

,

,

addition, stockholders voted
of a third
annual 5%

favor

stock

dividend to be paid on

basis

of
„

Loans

security

&

The

Mechanics

First
„

x

_T

Bank

tional
*

1

I,i:„

T

Square,

Franklin

in

N. Y., on Jan. 11, Arthur T.

L. I.,

Roth, President of the bank, fore¬
would

bank

earnings

the

that

casted

the

of

approximately

total

$3,748,000 after taxes compared
with 3,103,266 for 1954.
He also
announced that the total deposits
increased $100 million over Dec.
31, 1953 of which 46% was due to
the normal* growth of the bank
and 54% was due to deposits of
The share¬

the consolidated banks.

holders

(a)
per

approved:

the

value

par

share and number of shares of

the

bank's

outstanding

will

which

XL.-

take

completion

the

after

place

with

the

of

mergers
Westchester

Northern

the

and

^nnnnn

be sold for cash or used
acquire additional County Trust
^

scrip
to

add

$500,000

t

additional

brought about by

Cashier

were

tion

of collections

head

installment

the

As

result

a

19 meeting, the

at the Jan.

taken

number

the action

Of

of

shares

outstanding

of

stock will be in841,000 to 922,950.
a par value of $5.
directors meeting which

Dec.

loan

banks

an

i:

in

j.

Qn

*

City,

*

„i

was

The

of
1.

r»

Andre>

Rollinson

Jr

have
of

the

Board

of

Hibernia

Na-

Ardsley

Bank, of

National

Vice-President and Cashier of the

Excelsior

Northern Westchester Bank,

the issuance

12,300 share stock dividend to

a

Jan. 11,

on

1955.

(c)

further

a

increase

of

the

of the bank to

stock

$7,-

393,000 by the sale of 133,300 additionai shares^ of the par value
of $5 each,
each.

Jan.

11,

1955

accorded

'are

ViceTrust

County

Company, upon consummation of

James W; Murray of

the General Precision Laboratories, Inc., in Pleasantville, N. Y.,
was made an associate director,

]VIr.

is

Andre

has

Savings

Stockholders

N.

National

the

of

of

Bank

Y.,

meeting on Jan. 19 a change in the
par value per share
and in the
number

of

Directors

stock for each

new

10 shares of $5 oar value.

shares

of

stock-

common

the

of

from

bank's

$10.00

and

238,500 shares respectively to $5.00
The
First

board

of

Suffolk

Huntington,

directors

National

Long

and

of

the

Bank

Island,

of

N.

Y.,

and the Babylon National Bank &
Trust

Company,

Babylon,

L.

I.,

477,000 shares respectively.
Ralph T. Tyner, Jr., President of
the National Bank of Westchester,
stated that this action, previously
endorsed by the directors, may re-

W. W. Pope

George W. Owen, Jr.

a broadening of the market

N. Y„ have

unanimously approved
agreement, to consolidate the

an

hanks

two
the

under

the

Huntington bank.

has

received

Currency

of

The merger

the

the

of

proval

charter

preliminary ap¬
Comptroller of the

Washington
-

D'

C " and

will be referred to the stockhold¬
of each bank for their
approval

ers

at special

meetings to be held Feb.

25."*'AU oFthYofficers

and

em-

ployees of both banks have been
i

x.

ee.

ployees of the consolidated

L

stabilizing of the price.

report

presented

annual

meeting, Mr. Tyner declared, "The
of

year

1954

Trust

of

one

great

Company and The First
Company

National Bank & Trust
of

since

"but

title

^

the

Tuckahoe

consolidated

under

that

Thos. J. Wallbillich

A.

em¬

bank

which will continue to
operate the

Through

pany.

these

steps,

we

There

11.

were

in the directorate.

Vice-President,

com-

of

Senior

no

on
changes

were

appointed

Vice-Presidents;

T.

An increase in the capital of the

National

pointed Vice-Presidents; Oswald
at Cam- J. Howat, formerly Assistant Vice-

Bank

Bank

0

placed" i
as

As

time.

He

will

becam

now

-

•

-

•

^

Solis

has

been

connecte

He

ment.

is

graduate

a

Institute

th

of

Bankin

of

and has held various executive of

fiCes in the local Chanter

tL

ing
-

includ

Mr? Soli

Presidency

served in the armed forces
Mr

Trpntina

TTnitp'ri
t^rpp

(pre

qtotc

e^tering

in

c^n/Pri

Lrinp

fmm

vppr?

th

pnrnc

1Q4?

fo

the

iQdfi

j

Hibernia National Bank in
he

wag

empioyed

by

Transnorr ^Tprmina^
qfra„u.n

QUirmintr

Rp

of Th

t^e

195
Texa

TncXTn

rwma™

m

ment

bank will
excess

of

have total resources in

$56

million

capital funds and

and

reserves

total

of over

north and to the Hudson River at
^

+

..

Tarry town
the

on

White Plains."

was

.

Stockholders

Company

N .Y., at
19

mergers

+

.

_

of

of

The

White

County Dec. 23,
Plains,

their annual meeting

on

approved
the proposed
with the Northern West-

Chester
Bank
of
Yorktown Heights

Katonah

and

and The First
National Bank of Ardsley, according to a statement released Jan. 20

by
Andrew
Wilson,
Chairman.
Similar action had been taken
by
stockholders
of
the
other
two




referred

™

t>„.

in

to

our

*

issue

*
t-.

*

*

bank

detroit,

Total
*

ness

*

of

Detroit,

MICH.

resources.

-

associated with The Hibernia Na-

June$30, 54 tional Bank

1,819,462,027 1,770,282,038

cashSltand"~~due 1'692,153,216 L657-103-713

.

from

banks

1 vet.erson'^'^hairman U. S. Govt,
National Bank and
curity holdgs.
ComPany of Paterson, N. J., Loans & discts.
£?S afin0Uunced that the Board of undiv. profits.

dunes

were

Dec$31, 54

of

2672.

*

Development
Department,
appointed Assistant Cashiers.
George W. Owen, Jr., has been

stock.

new

national

The consolidation

page

„

$25,000 of

i

the west, .including

key cities of New Rochelle and

$4.3 million.

Jan.

relieved

and

pointed to the Business Develop
Department in October, 195

East

Trust

ca

th

March'

on

was

Auditor

American

At the

J.
Wallbillich, Manager of the For-

the board of directors will be sub-

Central

de

^ntoLtta^Tru^D^rt

nual Meeting of shareholders,

the name National Bank of West- mitted to the stockholders at the eign Trade Department and A
ches^r
which Tarry- annual meeting Feb *14.
R Alexander Manager of the Oil
cember was mined hv The in De*
*
cember ln October by The Tarrvand
joined
Gas^ Department^ were aptown National
Bank & Trust Com-

transferred * t

with the bank since 1933, servin

Elroy Alexander

whjch took placed after the An.
Jan.

the title

then

Auditor

of

Mr.

in
busi-

Company,

of

barjdn

his

1925, with th

10,

the Operations department

ent

merger

recommendation

of

Cashier.

meeting
of the bank's Directors George W.
that presently exists in the public
Owen, Jr., formerly Vice-Presi-

The

began

Oct.

Vice-President, which as
signment he has held to the pres

He aded that "the shortening of
the title will remove the confusion

and

Orleans

sistant

^hasbeen coveted byour

pany."

New

Country

America, etc.

was

duties

insurance

June 1953 this portion of our

bank

of

early part of 1951

in

The Westchester Bank mind between the business of the dent and Cashier, and W. W. Pope,

Pr°Sress.
&

was

Title"

active," Mr. Large

Perhaps Title ly
^ho Insurance
d
In his

the

at

said,

Club

President and Auditor, and in th

was

.

invited to become officers and

.

a

in

interest

Man

as

,1946. On March 22, 1949, he wa
given the title of Assistant Vice

in real estate title insurance.

continues to be

Bank

Orleans

on

duties

M.

the name led many to believe that
.the principal interest of the bank
"Our

severa

Auditing work, and in that
partment served in various
pacities
until
he
assumed

name

James

"Land

of

National

of

Howat

to' the

the fact that the present title is
long and unwieldly.
In addition,

was

for

Th

eral
staff
and
later
placed
i
charge of the proof section. M

of

Philadelphia

of

recommend

the? inclusion

share of

one

Company

Howat

career

on

of

i

.

of

Club
Independent Petroluem Asso

Mr.

White Plains,

rights to purchase those additional
shares, at this price, in the ratio

worked

Office

Hib/brnia Bank & Trust Compahy
where he was assigned to the gen

Company.

Trust

Alexander

Orleans

New

ciation

New

stockholders that the bank's

and

t

came

in field titl

engage
.

The

Large, President, stated that the
approved at their annual decision of the board was based

Bank of Westchester,

Mr.

New

The

*

Company
to

Oi
Ul

.

Durimf^thi? lfttP
he tranfferred tpa £

to

Petroleum

the

*

Board

voted

.

ager of the Oil & Gas Department
Mr. Alexander is a member of th

.

Tradesmen's Land Title Bank and
Trust

'

Mr

Standard
^tanaard
.

early in 1947, was mad
Supervisor. - In May
1950, Mr. Alexander came to Th

of

of

trustee

a

*

The

th

Unitization

be shortened to Tradesmen's Bank

at a sale price of $32

shareholders of record

The

The

of

the merger.

common

on

Presidents

now

,

the
ine

rr,

1937;

meeting California

York City,

of

shareholders of record

Schaefer,

Stanley

h

|

{

,,

the

jan. 26.

stock of the hank by

F.

of

Manager^

became

.

work.

elected

been

Directors

First

and

.

Louisiana

*„

Directors

Harrison

s>

tively to $5 and 1,333,000

respec¬

Staff

California Company, and

■

Newark, N. J. the bank announced

tively, effective Jan. 11, 1955.
(b*) an increase .of the common

the

jouiea

Hibernia

and

Board

the

to

He

Department

re-elected

/"k_I

XT„

•

nr

Na

W?r* 1°

five

.

nP

thp

Hibernia

Reserve

and

*

Stahl, Jr., now President of The

make

to

of

leavi

d

972,860

profits..

stock from $10 and 666,500 respec¬

voted

was

The

at

Foreign Department in 1947

llluex

F.vamExam-

Fidelity Union Trust Company of

it

1933

years and

*

F

in

TraH^

and will continue in this capacity

23,771,823

996,741

i94L

Mr the

18,451,914

22,516,663

Foreien

and

trans

was

Foreign Trade Department, an
appointed Assistant Manage

tional Bank of New Orleans, La., at

9,236,554

20,178,155

he

Bank, Mr. Wallbillich becam

with the Percy Kent Bag Co. part of

President

4QK

'P7C

67,376,495

10,154,818

undivided

Charles

11a

1923

the

deDart
t

..

at the Jefferso

was

u.s. Govt, security

LoanSdi&Sdiscounts

followed, all of the officers of the
bank were re-elected. In addition,

Kansas

Wallace M. Davis

June 30,'54

'

ii

1939
1939.

as a messenger
.

In

member

a

depart-

Trust
Trust

Federal

the

in

*.

31/54

ian

gg

ca?hSand "due"from

and
and

J.

$71,974,280 $72,966,135

Total resources

RankBank

with

years

The shares have

the

iner

COMPANY,
N.

In

various

as

_

*

TRENTON,

from

creased

been

stock dividend

a

TRUST

TRENTON

Trust

County

Accictant
Assistant

Bank

.

i

,

.

hppn

having

*

*

may

stock.

havnf*

nna

E.

common

in

well

as

gaSSn lf

Assistant Cashier. Also

Assistant

ment, and Melvin D. Ellis, a special representative in the corre-

of that amount.

Ardsley banks. Arrangements will
be announced shortly whereby the

At

change in

a

.7

i

side nt
°
"
served until

i

Stockholders
stockholders entitled to

held.
held

20

Bank

organized

re

Trust Company
worked

w
He

lit+i aai*

National spondent banks department

.

a

hi
election to Senior Vice-President

Officer'
wincer,

Trust
irust

r\r\A*»otinr\p

rtf

Bruce, Noel,
for

the

for each

share

new

one

Govt,

holdings

was

Department
Department.

named Trust Operations Officer, ments,

company,

82'890'212

present directors whose terms had

National

Orleans

were

also re-elected seven of the

as

electe

was

1933, Mr. Pope was elected Assist
ant Vice-President and headed th

Bank of Trenton, N. J., has en- Geary joined City National s Trust
At the annual meeting of the fractional shares will receive scrip krge<i its capital from $2 000,000
Department in 1952. His previous
shareholders of the Franklin Na- certificates under the distribution to $2,500,000, as of Dec. 14
the experience includes two years as
»»—i-

Hibernia

New

six

announced

Boceii A^istant'
Boceii,
Assistant

*

ANI)

1919

He

itaff promotions: Edward V.
Mr. Wallbillich began his bank
^ear^' estate planning officer in jng career in 1918, when he wa
the Trust Department, advanced employed by The Hibernia Ban

bank, and since February 1950

BANK

Assistant Auditor.

from

directors

of

has been attached to the Business

C0UNXY

the employ of The Hibernia Ban

line.

approval by the Comptroller of was made Vice-P
the Currency.
The bank's board which capacity he
^

tol945

1942

credit

one

160,000 to 200,000,
according to R. Crosby Kemper,
President of City National.
The
stockholders' action is suoject to
stocknoicters
action is subject

went

exDerience

hanking

Vf>ar'e

number

shares

1939 after

in June

bank

any

The stock dividend will increase Assistant Cashier in~ 1925. "whe

was

Assistant Vice-President.

an

for

elected to
The
paterson, n. j.
In the bank's bond department, Branch.
County Trust Company Board of
,
<
Dec. 31/54 June 30/54
A. F. Stepp has been promoted to ferred to
Directors by the stockholders who Total resources—$95,270,109 $91,135,970
Assistant Vice-President, and W. partment
Ardsley,

,

of 14 Wall Street, New

Company

Department^ Ii^^ember
^

thejP^'ous week.Credit

tanks

Thursday, January 27, 1955

.

$5,000,000 and a loan limit of $1,- & Trust Company in

bank's

the

of

manager

.

lion-dollar increase in
capital, serve Bank in New Orleans Late
Through the transfer of $1,00U,UUU he joined the State Bank Exarhi
from undivided profits to capital, nation Service, and then enter

National

After serving

1933.

.

as Cashier since its

opening in May 1933; in 1939, he
was

elected

407,485,851

385,090,959

Qvven left

807,068,296

819,002,499

nance

4i3 974 048

come

Vice-President.

as

Assistant Cashier in thi

Hpnartmpnt
...

J

,

Mr* Bond
when he

was

Mr. tenant, j.g.

the Reconstruction Fi-

^

actlve

duty

the U. S. Navy from 1944 to 194
released

He

was

as

a

Lieu

employed b

A. S. Aloe Company after his re

se¬

^

u

Jjas Promoted Robert W.

pie^ert from Assistant Vice-Pres*dent to Vice-President and has
appointed Martin Newstreet Assistant

Cashier.

Mr.

Siebert

en-

Stockholders

475,156,085
14,131,219
*

of

,'

*

City

•

■

National

Bank & Trust Company of Kansas

inY'on

^25%

stock

a

Jam 11 approved
dividend, calling for

Corporation in 1933 to be-

tional.

a

Navy

until

Immediately following The Hibernia National Bank.

World War I,
ag

lease from the

195

Cashier of The Hibernia Na- when he entered the employ
M

in which he served Bond has been active in the,Busi

commissioned

officer

in

the

ness

Development

Departmen

Navy, Mr. Pope began his bank- where he will continue his duti

mil- m& career with the Federal Re- as Assistant Cashier.

Number 5398

181

Volume

.

.

The following statistical tabulations

indications of Current
j-«

(531)

The Commercial and Financial Chronicle

.

•

latest week

\

,

week

Business Activity

or

month available.

or

month ended

Latest

AMERICAN

IRON

(percent of capacity)

-Jan. 30

(net tonB)

oil

condensate

and

Gasoline

14

6,689,200

6,574,400

6,375,300

6,332,550

(17,370,000

7,389,000

7,226,000
24,478,000

6,968,000

Jan. 14

24,784,000

25,392,000

„

2,822,000

2,844,000

2,500,000

Kerosene

12,029,000

12,444,000

11,587,000

10,286,000

Jan.14

8,737,000

8,876,000

7,818,000

8,923,000

transit, in pipe linesunfinished gasoline (bbls.) at
Jan. 14

(bbls.)
oil

(bbls.)

at

oil

(bbls.)

at

Distillate fuel

fuel

Residual

162,198,000

151,778,000

of

steel

for

28,465,000

31,936,000

105,132,000

118,082,000

99,346,000

50,566,000

52,065,000

52,265,000

49,066,000

freight loaded (number of cars)
Revenue freight received from connections

.Jan.15

CIVIL

CONSTRUCTION

ENGINEERING

—

(no. of cars)

U.

644,9^.0

602,203

641,871

Jan. 15

565,545

612,748

582,053

—

AMERICAN

$364,734,000

$324,479,000

249,096,000

194,561,000

and

State

103,189,000

Jan.20

93.312,000

115,638,000

129,918,000

70,356,000

Jan. 20

83,175,000

87,817,000

98,596,C00

51,844,000

Jan. 20

10,137,000

27,821,000

31,322,000

18,512,000

-Jan. 15

8,680,000

8,510,000

8,820,000

8,180,000

Jan. 15

553,000

204,855,000

214,978,000

190,198,000

184,527,000

194,108,000

21,446,000

20,276,000

20,837,000

43,000

52,000

33,000

19,893,000

20,168,000

19,806,000

13,112,000

9,791,000

10,883,000

*232,810,000

238,122,000

*2,004,000

7,545,000

2,173

1,302

4,456

$21,503,579

export

241,337,000

____.

3,355,000

'

INSTITUTE-

CAR

of December:

delivered

cars

$173,545,000

163,839,000

construction

Public

211,687,000

(barrels)___.

1—

New domestic freight

$257,151,000

Jan.20

5,903,980

Month

—

(barrels of 42 gal¬

oil output

RAILWAY

Month

Jan. 20

7,946,328

5,035,364

Increase all stock (barrels)

ENGINEERING

construction

Private

*8,089,427

5,240,209

—

oil imports (barrels):.-—_—;
Refined products imports (barrels)
Indicated consumption domestic and

619,871

597,676

construction-

S.

8.281,000

tons)—

Crude

NEWS-RECORD:
Total

1

(net

__

RAILROADS:

Revenue

Ago

castings produced

Natural gasoline output, (barrels)—
Benzol output (barrels)

25,490,000

Year

Month

INSTITUTE:

products

(barrels)
OF AMERICAN

ASSOCIATION

of that date:

Previous

of October:

Domestic crude

163,560,000

100,111,000

Jan- 14

160,956,000

27,677,000

*Jan- 1;
•lan- 1;

at

steel

Total domestic production
lons eachi

2.693,000

Jan. 14

Stocks at refineries, bulk terminals, In
and

and

STEEL

AMERICAN PETROLEUM INSTITUTE

23,677,000

—Jan. 14

(bbls.)
fuel oil output (bbls.).

Finished

ingots

AND

Month of November
Jan.

oil output

fuel

IRON

(net tons)—Month of December

1,802,000

1,850,000

*2,008,000

Jan. 14

(bbla.)

(bbls.)
(bbls.)

output

Kerosene output
Residual

AMERICAN

of

(bbls.

gallons each)

Crude runs to stills—daily average

Distillate

§2,027,000

are as

Month

75.6

Shipments

output—dally average

of quotations,

cases

Ago

77.6

•83.2

PETROLEUM INSTITUTE:

AMERICAN

42

Ago

ia

or,

either for the

are

Latest

Steel

Equivalent to—
Bteel ingots and castings

Crude

Week

that date,

on

production and other figures for the

cover

Dates shown in first column

Year

§84.0

Jan. 30

—

Month

Week

INSTITUTE:

STEEL

AND

steel operations

Indicated

Previous

71

municipal

BUILDING

VALUATION

PERMIT

BRADSTREET,

INC.—215

DUN

—

&

CITIES—Month

of December:
New

England

$21,641,289

$14,836,020

68,040,491

74,879,340

105,141,783

South Atlantic

41,272,680

33,925,015

East Central

73,566,605

76,954,373

29,452,475
67,301,733

76,826,091

76,674,220

60,940,461

.West Central

27,806,248

46,230,111

Mountain

17,840,717

20,187,682

21,306,200
16,896,261

Pacific

Federal

82,283,322

77,387,157

61,202,714

$409,139,733

$427,879,197

Middle
COAL

OUTPUT

Bituminous

BUREAU OF MINES):

(U. S.

coal

Pennsylvania anthracite

(tons)

SALES

STORE

DEPARTMENT

(tons)

lignite

and

INDEX—FEDERAL RESERVE

AVERAGE

SYSTEM—1947-49

=

Electric

(in

output

-_Jan. 22

kwh.)__

000

(COMMERCIAL

FAILURES

INDUSTRIAL)

AND

—

DUN

240

85

steel

Pig iron

(per gross

METAL

(E.

PRICES

South

—

Central

__

_—

refinery

Export
Straits

(New

tin

4.797c

4.797c

4.797c

4.634c

$56.59

$56.59

$56.59

$56.59

$34.50

$34.33

$32.83

$28.50

United

York

BUSINESS

FAILURES—DUN

INC.—Month

&

Jan. 19

at

29.700c

29.700C

29.650c

31.775c

30.975c

31.875c

of December:

number

204

87.125c

88.000c

84.500c

15.000c

15.000c

15.000c

14.800c

14.800c

14.800c

12.800c

11.500c

11.500c

11.500c

9.500c

DAILY AVERAGES:

97.68

97.88

99.09

98.02

25

110.34

110.34

110.52

Jan. 25

114.46

114.46

114.66

112.37

Jan. 25

corporate

I_Jan.

Group.

,

Total

107.27
100.98

108.52

108.52

108.70

105.17

Bituminous coal and lignite

110.88

110.88

111.07

107.80

Pennsylvania anthracite

111.44

111.62

111.81

t109.42

2.66

2.65

2.58

2.64

3.15

3.15

3.14

3.31

Jan. 25

2.93

2.93

2.92

3.04

Jan. 25

3.06

3.06

3.04

3.15

3.16

3.15

3.32

Jan. 25
Jan. 25

3.46

3.46

3.45

3.25

3.24

3.44

Jan. 25

3.12

3.12

3.11

3.29

.Jan. 25

3.09

3.08

3.07

3.20

Orders received

417.2

413.4

409.8

419.0

241,055

249,382

208,891

223,396

Jan. 15

255,794

204,172

252,701

Percentage of activity
Unfilled orders (tons) at end

93

86

92

91

Jan. 15

of period

388,392

406,002

349,727

390,294

21

106.47

PRICE INDEX—
Jan

106.78

106.61

107.44

(customers' purchases) t
8

1,946,677

1,444,572

1,412,931

863,821

8

$99,201,069

$68,068,161

$67,572,730

$38,131,438

Jan.

8

2,163,641

1,529,630

1,492,485

668,498

Jan.

8

sales
sales

short

1,520,965

1,482,354

660,406

$106,547,091

$65,728,335

$65,742,603

of

2,443,000

Nov.:

5,230,836

*5,082,374

6,222,600

5,198,109

*5,053,429

5,915,300

32,727

coke stock

Oven

*28,945

307,300

2,806,768

tons)

*2,850,695

2,657,729

(net tons)

end of

at

month

(net tons)

INSTITUTE—For month of December:

COPPER

/

Copper production in U. S. A.—
Crude

(tons of 2,000 pounds)

Refined

97,806

♦97,837

88,732

133,523

*116,135

123,296

119,626

*118,925

112,244

47,108

*37,094

89,193

$74.12

•$73.57

$72.36

80.15

•79.15

77.52

66.47

•65.97

64.45

40.5

(tons of 2,000 pounds)

U.

In

S. A.

FACTORY

pounds)

(tons of 2,000

stocks at end of period

copper

of 2,000 pounds)

EARNINGS

,—

HOURS—WEEKLY

AND

ESTIMATE —U.

AVERAGE

(tons

_____—

DEPT.

S.

OF

Weekly Earnings—

manufacturing

:

goods

.

•40.2

40.2

Durable goods

41.1

•40.8

40.8

Nondurable

39.8

•39.5

39.3

$1.83

•$1.83

$1.80

1.95

•1.94

1.90

1.67

1.67

1.64

71,700

77,300

43,100

14,200

30,100

6,800

10,300

5,700

170,500

217,100

158,500

Seasonally adjusted

130

129

126

Unadjusted

128

130

124

100.7

100.6

115.0

manufacturing

_______—

goods
Hourly EarningsAll'manufacturing
Durable goods
Nondurable goods

$27,318,721

Jan.

8

Jan.

MANUFACTURERS ASSOCIA¬

8

8

700,450

535,360

700,450

535,360

468,123

208,270

468,123

208,270

TION—Month

of November:

'

sales
of

8,092

2,154,220

8

Jan.

Short sales

Gas-fired

furnace

Gas conversion

Round-lot purchases by

37,082,000

*2,500,000

.

tons)

(net

Beehive coke

GAS APPLIANCE

dealers—
of shares—Total sales

Number

10,131

8,665

8

Jan.

Round-lot sales by

Other

9,421

Jan.

value

Number

MINES)—Month

OF

(net

coke

Oven

All
Jan.

Customers' other

36,750,000

2,816,000

(net tons)__

(net tons)

Hours—

dealers (customers' sales)—
shares—Total sales

Customers'

37,825,000

MINES)—Month

Nondurable goods

Odd-lot purchases by

Dollar

(BUREAU

Durable

Jan.

Number of

COKE

Ail

FOR ODD-LOT ACCOUNT OF ODDLOT
DEALERS AND SPECIALISTS ON N. Y. STOCK
EXCHANGE — SECURITIES EXCHANGE COMMISSION:
Odd-lot sales by dealers

OF

LABOR—Month of December:

STOCK TRANSACTIONS

Number of shares

(BUREAU

243,316

Jan.15

(tons)

OIL, PAINT AND DRUG REPORTER
1949 AVERAGE = 100

OUTPUT

of December:

Refined

ASSOCIATION:

(tons)

Production

$43,754,000

Deliveries to fabricators—

.Jan.25

INDEX

PAPERBOARD

1,871,000

$35,067,000

3.69

3.25

"III..
II

COMMODITY

NATIONAL

4,065,000

3.19

Jan. 25

MOODY'S

COAL

Production

Group

4,154,000

1,857,000

109.60

"

Group.

6,859,000

—.—

liabilities

105.00

""II

Utilities

9,757,000

5,926,000

liabilities—

Commercial service

110.52

Jan. 25

Group

4,241,000

10,466,000

__—

112.19

Jan.25

A

$23,731,000

5,578,000

8,509,000

$40,103,000

liabilities

104.83

*

Baa

$8,099,000

6,285,000
—

112.00

AVERAGES:

Aa

Public

813

$17,526,000
Retail liabilities

110.15

corporate.

Industrials

933

liabilities

Wholesale

110.34

.Jan.25

Aaa

Railroad

64

917

104.83

aan- 25

Group

Government Bonds—

Average

68

Total number

112.00

Jan. 25

Group

MOODY'S BOND YIELD DAILY

U. S.

89

72

Jan.25

■

Industrials

110

Commercial service number

Jan. 25

Aa

Utilities

85
382

*.

107.44

Jan.25
~~

193

86

490

—

_

13.000c

Jan. 19
Jan. 19

at

179

98

413

130

___;

—

—

28.475c

86.250c

Jan. 19

I

at.

Louis)

29.700c

.Jan. 19

at

~

Public

321,220,935

BRADSTREET,

Construction number

Government Bonds

Railroad

45,195,814

382,683,383

Manufacturing number
Retail number

Jan.19

MOODY'S BOND PRICES

Average

40,309,360

$377,077,647
55,856,712

363,830,373

York City

New

Construction

U. S.

States—

City

Outside

Wholesale

at

Louis)

(St.

(East St.

208

QUOTATIONS):

M. J.

at
York)

(New York)

Lead

213

Jan. 18

Electrolytic copper—
Domestic refinery

Total
New

200

Jan.18

ton)

&

8,976,000

Jan. 18

lb.)

(per

9,431,000

265

PRICES:

(per gross ton)

Scrap steel

9,928,000

.Jan. 20

IRON AGE COMPOSITE

Finished

*9,981,000

&

BRADSTREET, INC

Zinc

106

698,000

—

ELECTRIC INSTITUTE:

EDISON

Lead

99

Jan. 15

100

688,000

489,000

____•_

Atlantic

dealers—

Jan.
Jan

shares

8

487,680

394,450

387,730

344,460

Gas

shipments

burner

Domestic gas range

STOCK SALES ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
FOR ACCOUNT OF MEMBERS (SHARES):

(units)

—

shipments (units)
(units i

boiler shipments

operated

shipments (units)

15,600

TOTAL ROUND-LOT

Total Round-lot

658,620

550,440

666,980

183,790

Jan.

1

18,647,260

14,514,540

16,828,770

8,397,870

Jan.

sales

Other

ERNORS
1

1

19,305,880

15,064,980

17,495,750

8,581,660

Jan.

sales

Short

INDUSTRIAL PRODUCTION—BOARD OF GOV¬

Total sales

TRANSACTIONS

ROUND-LOT

FOR

Index

SPECIALISTS:
1

2,319,510

1,612,870

2,076,330

Other

1

348,440

250,440

376,020

95,580

Jan.

1

2,049,730

1,285,780

1,708,920

583,430

Jan.

1

2,398,170

1,536,220

2,084,940

679,010

sales

sales

Other transactions

Initiated on the floor—

Jan.

1

543,970

Jan.

1

32.300

the floor-

143,610

1

594,620

452,510

620,050

149,110

622,661

656,625

341,700

1

100,200

99,200

80,910

23,300

1

862,413

630,982

725,762

962,613

730,182

806,672

246,597

Jan.

1

3,593,083

2,740,691

3,344,605

1

480,940

373,140

483,030

124,380

Jan.

1

3,474,463

2,345,772

3,028,632

950,337

Jan.

1

3,755,403

2,718,912

3,511,662

1,074,717

Total sales

LABOR

—

PRICES,
(1947-49

NEW SERIES — U. S.
=

DEPT.

as

110.1

109.4

110.9

92.6

92.7

90.7

98.4

104.0

103.7

103.0

105.9

.Jan. 18

farm and foods

110.1

.Jan. 18

products
foods

commodities other than

87.7

86.5

83.8

((Includes 654,000 barrels of foreign




NONFARM

REAL

FEDERAL

ANCE

BANK

GREAT

IN

LTD.—Month

ESTATE

£52,656,000

£22,555,000

SAVINGS

2,304

2,049

1,820

$40,96.5,100

$14,238,500

$615,500

BRITAIN-

of Dec

FORECLOSURESINSUR¬

LOAN

AND

CORPORATION—Month

of

Sept.—

MARKET

.Jan.18

115.1

115.1

114.7

114.5

AND

TRANSACTIONS

GUARANTEED

A.—Month

of

IN

DI¬

SECURITIES

December:

95.8

OF

U.

S.

Net sales
Net

ZINC

.

purchases
OXIDE

.—

(BUREAU

OF

MINES)—Month

of November:

crude runs. §Based on new annual canacitv of 125 828 Tin tnnc
of Jan. 1. 1955, as against Jan. 1, 1954 basis of 124,330.410 tons.
JAll-time new high record.
tNumber of orders not reported since introduction of Monthly Investment Plan.
figure.

ISSUES

CAPITAL

RECT

Jan.18

.Jan.18

Meats

•Revised

NEW

TREASURY

100):

commodities

Processed
All

$349,806,000

OF

Commodity Group—
Farm

54,493,000

$371,915,000

£16,529,000

Total

MIDLAND

sales

58,376,000

63,778,000

1,272,100

Jan.

8,717,000
35,971,000

66,690,000

60,354,000

—

35,818,000

223,297

1

dividends

Policy

39,862,006

8,809,000

72,863,000

——.—

$152,387,000

44,863,000

8,947,000
38,626,000

—.__

$151,957,000

49,254,000

—_

Surrender values

729,603

LIFE

OF

$399,965,000

593,950

1

TO

$169,921,000

429,010

Jan.

transactions for account of members—

INSTITUTE

t—

Matured endowments

562,320

Jan.

sales

Total purchases
Short sales

All

5,500

Jan.

Short sales

WHOLESALE

187,410

26,100

1

Total sales

Other

611,650

23,500

Jan.

Total

Total round-lot

505,160
*

PAYMENTS

benefits

Jan.

sales

transactions initiated off
purchases

middle

at

INSURANCE—Month of November;

Disability payments
Annuity payments

Total sales

Other

POLICYHOLDERS

Jan.

Short sales

Other

Employment

1935-39 Average=100)

INSURANCE —BENEFIT

LIFE

Death

Total purchases
Other

Railway

Dec.:

742,990

Jan.

purchases

of

of December

registered- Jan.

Short sales

Total

of

COMMISSION—

COMMERCE

INTERSTATE

ACCOUNT OF MEM¬

BERS, EXCEPT ODD-LOT DEALERS AND
of specialists in stocks In which

Transactions
Total

RESERVE

FEDERAL

THE

OF

SYSTEM—1947-49=100—Month

sales-

^,o^a,.uu iom>

Producttion

Shipments
Stocks

(short

tons)

(short_tons)_
of month (short tons)

at end

.

.

11,819

•12,113

14,100

11,953

•11,658

12,465

14,775

-•44,909

28,369

72

The Commercial and Financial Chronicle

(532)

.

.

.

Thursday, January 27, 195&

ADDITIONS v

it INDICATES

Securities Now in Registration
Stores Corp., New

Allied

Arctic

York (2/3)

Oct.

Uranium

Ltd.

Mines

(Regulation "D") 1,500,000 shares of common
stock (no par value), PriCF—20 cents per share. Proceeds

offering. Proceeds — For general corporate
Underwriter—Lehman Brothers, New York.

—For

Aluminium
filed

18

Dec.

purposes.

Ltd.

capita stock

shares of

904,314

Jim. 7,

1935 at rate of

one new

share for each 10 shares

held; rights to expire on Jan. 31. Price—$47.60 per share
(United States funds) or $46 per share (Canadian dol¬
lars). Proceeds—For expansion program. Dealer-Man¬
agers—The First Boston Corp.; A. E. Ames & Co., Ltd.;

& Co.

Morgan Stanley & Co.; and White, Weld

Amalgamated Uranium Corp., Salt Lake City, Utah
Sept. 1 (letter of notification) 2,500,000 shares of com¬
mon stock (par three cents).
Price—10 cents per share,
Proceeds—For exploration and development costs. Office
—218 Atlas Bldg., Salt Lake City, Utah. UnderwriterWed J. Bowman Co., the same

city.

Briarcliff, N. Y.
Dec. 6 (letter of notification) 7,500 shares of 6% par¬
ticipating preferred stock. Price — At par ($10 per
Ehare). Proceeds—For working capital. Business—Dis¬
Amcrete Corp.,

tributor of

prefabricated concrete wall panels and but¬

made of steel reinforced dense concrete,

tresses

general* Corporate purposes. Office — 411 Childs
Bldg., Winnipeg, Manitoba, Canada. Underwriter—De
Gaetano Securities Corp., New York.

(no par)

being offered for suAscription by stockholders of record

Un¬

etc.

Golconda

Arizona

Metals,

•

•

28

300,000 shares of common stock (no par).
Price—To be related to current market price at time of
filed

13

Jan.

SINCE

PREVIOUS

ITEMS

REVISED

ISSUE

-

British Western America Uranium Corp.

(2/7-8)
(letter of notification) 298,400 shares of common
(par 25 cents). Price—$1 per share. Proceeds—
For exploration and development expenses.
Office—C.
A. Johnson
Bldg., Denver, Colo.
Underwriter—S. D.
Fuller & Co. and Vermilyea Brothers, both of New York

Jan. 13
stock

it Calaveras Mineral Products, Inc.

Inc.

stock

Jan. 17 (letter of notification) 125,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For min¬

general

ing operations.

Dec. 7

(letter of notification) 292,000 shares of common

(par 10 cents). Price—$1 per share. Proceeds—For
corporate purposes. Office — Kingman, Ariz.
Underwriter—Baruch Brothers & Co., Inc., New York.

reduce accounts payable, to maufacture new tape
recording machine, and for working capital. Office—730
Fifth Ave., New York, N. Y. Underwriter — Townsend
Graff & Co., same city.

Co.

of

America (1/28)

Dec. 28 filed 97,481 shares of common stock (par $5) to
be offered for subscription by stockholders of record
Jan.

27, 1955

six

shares

To

be

the

on

basis of

one

held;

rights to expire
determined shortly before

—

Center

1110

Modular

Homes,

St.,

Santa

Cruz,

address.

same

Inc.

Dec. 9

—To

Canteen

Office

Underwriter—Jonas L. Roe,

California

it Audio & Video Products Corp.
Jan. 17 (letter of notification) 450,000 shares of common
stock (par one cent). Price—30 cents per share. Proceeds

Automatic

Calif.

new

share for each

Feb. 14. Price—
the making of the

on

offer.

Proceeds—Together with other funds, to purchase
262,500 shares of common stock of the Rowe Corp. Un¬

(letter of notification) 196,000 shares of common
Proceeds—For ad¬
ditions to plant and equipment and working capitaL
stock.

Price—At par ($1 per share).

Office

3808 22nd St., East Del Paso Heights,
Underwriter—United Capital Co., Reno, Nev.

Calif.

—

California Tuna Fleet, Inc., San Diego, Calif.
Sept. 29 filed $4,000,000 of 6% sinking fund debenture!
due 1966 and 160,000 shares of common stock
(pair five
cents) to be offered in units of a $500 debenture and 28
shares of stock.

Price—To be supplied by amendment*
Proceeds—For purchase from National Marine
Terminal*
Inc. of its undivided interest in 17 tuna
clippers, subject

to certain

liabilities; for construction of four tuna clip¬
pers; and the balance for working capital and general
corporate purposes. Underwriter
Barrett Herrick &
—

derwriter—None.
v

—

^ American Beauty Homes, Inc., Houston, Tex.
notification) 300,000 shares of common
stock (par 10 cents). Price—$1 per share.
Proceeds—
For prefabrication and assembly of homes. Office—10509
South Main St., Houston, Tex. Underwriters — Hunter
Securities Corp., New York, and Continental Securities
Corp., Houston, Tex.
Jan. 20 (letter of

American Duchess Uranium & Oil Co.
Dec.

9

mon

stock

1,500,000 shares of com¬
Price—20-cents per share.

(letter of notification)
(par five cents).

Proceeds—For uranium and oil activities. Office—Judge

Bldg., Salt Lake City, Utah. Underwriter—Northern Se¬
curities, Inc., Seattle, Wash.

W American Hospital Supply Corp., Evanston, III.
Jan. 19 (letter of notification) 5,000 shares of common
stock (par $4) to be issued at the market, or lower, esti¬
mated at $25.25 per share. These shares are subject to
option to the Harry M. Berner Estate, of which Leo E.
Stevens, 2020 Ridge Ave., Evanston, III., and Charles F.
Hough, 231 So. La Salle St., Chicago, 111., are trustees.
American
Jan.

Service

fice—400 Walker

Bldg., Washington, D. C. Underwriter
—Theodore T. Ludlum & Associates, Ltd., Washington,
C.

Telebet units and Teleac systems and additions to work¬

ing capital. Underwriter—Mitchell Securities, Inc., Bal¬
timore, Md.
•

Axe

Jan.

Science

filed

10

shares

$10

—

Corp.

of

share.

per

stock (par
Proceeds — For in¬

common

vestment in the electronic and atomic fields.

Advisor—E.

W.

Axe

&

Investment

Water Works

Co., Inc.

(2/9)

—

in

Offering

Baker Truck Rental,

Inc., Denver, Colo.

Jan. 10 (letter of notification) $300,000 of 10-year series
A debentures dated- Dec. 15, 1954, and maturing between

each).

Proceeds

Stout
&

van

(in denominations of $1,000
Office — 2201

For working capital.

—

St., Denver, Colo. Underwriter—Bosworth, Sulli¬
Co., Inc., and Garrett-Bromfield & Co., both of

Denver.

it Bangtail Preferred, Inc.
(no par).

Co. and

To repay bank loans and for additional invest¬
subsidiaries. Underwriters—W. C. Langley &

The First Boston

Corp., both of New York.

American Water Works

Co., Inc.

(N. Y.)

Underwriters—W. C. Langley &

First Boston

in

Aeries

E

at

rate

of

4V2%

per

Proceeds—For

de¬

Francisco, Calif.

Oct. 28 (letter of notification)
2,970,000 shares of class A
capital stock. Price—At par (10 cents per share). Pro¬
ceeds—For exploration

and

Office—161-10

development

expenses.

fice—995 Market St., San
Francisco, Calif.
—Coombs & Co., of Los
Angeles,

Of¬

Underwriter

Inc., Los Angeles, Calif.

Price—At par

Salt

mining

Lake

(three cents per share). Proceedi
Office—510 Newhouse Building
Utah. Underwriter — Call-Smoot Co.

expenses.

City,

Phillips Building,

same

city.

Ave., Provo, Utah.
Oct.
mon

15

(letter of notification) 3,000,000 shares of com¬
(par one cent). Price—10 cents per share.
exploration and development costs. Of¬

stock

Proceeds—For
fice

—

705

First

National

Bank

Bldg.,

Denver,

Colo.

Underwriter—I. J. Schenin Co., New York.

it Black & Decker Mfg. Co., Towson, Md.
Jan. 18

(letter of notification) an undetermined number
of common stock (par $1), to be offered to
"employees pursuant to an employees' stock purchase
plan adopted in 1954. Price—Not to exceed an aggregate
of $300,000. Proceeds—For working capital. Underwriter
of

shares

—None.

Canyon Uranium, Inc.
Nov. 29 (letter of notification) 6,000,000 shares of
stock

mon

(par

one

cent).

Price—Five cents

per

com¬

share.

Proceeds—For mining

activities. Offices — 1003 Con¬
Bldg., Salt Lake City, Utah, and 618 Rood
Ave., Grand Junction, Colo. Underwriter — James E.
Reed Co., Reno, Nev.
Blue

mon

Jay Uranium Corp., Elko, Nev.
1,000,000 shares of

com¬

stock. Price—25 cents per share. Proceeds—For

ploration and development costs.

ex¬

Office—402 Henderson

Bank

Bldg., Elko, Nev. Underwriter—Security Uranium
Service, Inc., Moab and Provo, Utah.
•

Bowl-Mor Co.,

Inc., Everett,

Mass.

(1/31)

Nov. 26 filed 200,000 shares of preferred stock
and 200,000 shares Of common stock
(par 10

(par $1)

cents) to be

offered in units of

Philadelphia

Pittsburgh

Chicago

one

share of each class of stock. Pric^

—$5.50 per unit.

Proceeds—To carry machine leases and
manufacturing operations. Business—Manufac¬
tures and distributes by lease and
sale, a bowling-pin

finance

San Francisco

Private Wires




to

all

offices

Cleveland

ferred

shares

for

each

17

Calvan

par¬

shares.

The

offer

of

is

the

★ Capitol Reef Uranium Corp., Reno, Nev.
(letter of notification) 300,000 shares of common
Price—At par ($1 per share). Proceeds—For min¬

Jan. 20
stock.

ing

Office—First National Bank Bldg.,

expenses.

Reno*

Underwriter—None.

Carnotito Development Corp.

—For exploration and
317 Main St., Grand
ern

development expenses. Office—
Junction, Colo. Underwriter—West¬
Securities Corp., Salt Lake City, Utah.

Central

Airlines,

Inc.,

Fort

Worth, Tex.

Oct. 26 (letter of
notification) 150,000 shares of commoa
stock (par 25
cents), to be offered for subscription

by-

stockholders.

Price—$1 per share. Proceeds—To pur¬
chase additional aircraft and
equipment, setting up new
stations, etc. Office—Meacham Field, Fort

Worth, Tex.

Underwriter—None.

Century Controls Corp.
Dec. 17

(letter of notification) 100,000 shares of

Price—$1.25

commoa

share. Proceeds—For
working capital. Business
Accessory control systems
and components for aircraft
interest, etc. Office—Allen,
Boulevard, Farmingdale, L. I., N. Y. Underwriter—None.
per

setting

machine.

New York.

Chesapeake
Dec.

7

filed

&

Colorado

Uranium

750,000 shares of

Corp.

(2/15)

stock

common

(par fiveProceeds—For exploration;

cents).

Price—$1 per share.
development program. Office — Washington, D. C.
Underwriter—Peter Morgan & Co., New York.

Underwriter—Aetna

Chesapeake & Potomac Telephone Co. of

Securities Corp.,

<

Baltimore City (2/1)
Jan. 11 filed $25,000,000
40-year debentures due Feb. 1*
1995. Proceeds—To redeem
$15,000,000 of 3y2% deben¬
tures due 1984 at 104.52% and accrued interest on
March,
7, 1955; to repay advances from American Telephone St

Telegraph Co. and general corporate

purposes.
Under¬
writer—To be determined by competitive
bidding. Prob¬
Halsey, Stuart & Co. Inc.; The First Bos¬
ton Corp.; Harriman
Ripley & Co. Inc.; Kuhn, Loeb &
Co.; Morgan Stanley & Co.; White. Weld & Co. Bids—
To be received
up to 11 a.m. (EST) on Feb. 1 at Room.

able bidders:

2315 —195

Broadway, New York, N. Y.
Chillicothe Telephone Co.
\ >
13 (letter of
notification) 4,775 shares of common,
stock (no par) to be offered for
subscription by stock¬
holders. Price—$50 per share. Proceeds—For
property
additions. Office—58 East Maine

Dec.

St., Chillicothe, Ohio.

Underwriter—None.

Blue

Oct. 15 (letter of notification)

Boston

non-cumulative

and

tinental Bank

New York

of

contingent to acceptance by not less than 51%
outstanding Calvan stock. Underwriter—None.

stocky (par $1).

Ave., Jamaica, N. Y. Underwriter—None.

Bikini Uranium Corp., Denver, Colo.

velopment and expansion of agricultural, industrial and
commercial enterprises in Israel. Underwriter—None.
Anticline Uranium, Inc., San

Proceeds—To purchase

Underwriter—Weber Investment Co., 242 N. University

compounded; and

annum,

share.

New York tracks.

re¬

Co. and The

shares

—

Corp., both of New York.

$2,502,111.10, to yield 5%.

per

on

sub¬

Ampal-American Israel Corp., New York
Sept. 17 filed $5,000,000 of 10-year 5% sinking fund
debentures, series C, due 1964; $3,125,000 of 5-year dis¬
count debentures, series D; and $4,100,000 of
10-year dis¬
count debentures, series E. Price—Series
C, at par; se¬
ries D $2,507,659.53, to yield return equal to
compound
Interest

horses

Big Indian Uranium Corp., Provo, Utah
July 15 (letter of notification) 500,000 shares of common
stock (par 10 cents). Price—25 cents per share. Proceeds
—For mining operations. Address—Box 77, Provo, Utah

Price—To be supplied by amendment. Proceeds—To

bank loans and for additional investments

Price—$50

race

Big Bend Uranium Co., Salt Lake City, Utah
Aug. 6 (letter of notification) 7,000,000 shares of common
—For

Feb. 8; rights to subscribe Feb. 23 (Northeastern Water
TjCo., owner of 1,625,000 of the 2,704,472 outstanding
shares) will subscribe for 325,000 of the new shares.

sidiaries.

run

stock.

(2/9)

Jan. 13 filed 540,894 shares of common stock (par $5) to
be offered for subscription by common stockholders at
the rate of one new share for each five shares held about

1,751,428

Oct. 26 (letter of
notification) 16,000,000 shares of com¬
mon stock. Price—At
par (one cent per share). Proceed!

Kidder, Peabody & Co., all of New York.

Jamaica

ceeds

Petrofina, Ltd.

filed

and

—Expected today (Jan. 27).

(par $25).
ments

20

ticipating preferred stock (par $10—Canadian) to be
offered in exchange for shares of
capital stock of Calvan
Consolidated Oil & Gas Co., Ltd. at the rate of six
pre¬

Nev.

and

225,000 shares of cumulative preferred stock
Price—To be supplied by amendment. Pro¬

Canadian
Dec.

Inc., New York. Under¬
writers—W. E. Hutton & Co., Hemphill, Noyes & Co.

Co.,

Jan. 13 (letter of notification) 200 shares of capital stock

American

pay

Electronics

&

2,500,000

Price

cent).

one

Jan. 13 filed

9

Co., Inc., New York.

Automatic Remote Systems, Inc., Baltimore
Aug. 4 filed 620,000 shares of common stock (par SI
cents), of which 540,000 shares are to be offered tc
public and 80,000 shares to be issued to underwriter
Price—$3.75 per share. Proceeds—For manufacture ol

1956 and 1964. Price—At par

Publishing Co., Inc.

11

(letter of notification) 50,000 shares of class A
common stock (par$l).
Price—$5 per share. Proceeds—
For working capital and general corporate purposes. Of¬

D.

derwriter—Glore, Forgan & Co., New York.

Circle Air

Industries, Inc.
(letter of notification) 299,000 shares of com¬
(par five cents). Price—$1 per share. Pro¬
ceeds—For machinery and equipment and
working
capital. Name Change—Company was
formerly known
as
Paley Manufacturing Corp.
Office—244 Herkimer
Street, Brooklyn, N. Y. Underwriter—Allen E. Beers
Co., Philadelphia, Pa.
i

Nov.
mon

29

stock

.

,

it Clarington Sand & Gravel Co.
Jan.

18

(letter of notification) 12,000 shares of common
Price—At par ($25 per share).
Proceeds—For
purchase of mining and washing. equipment to
equip
plant now under construction. Office
Clarington, Pa.
Underwriter—William T. Bowler & Co.,
Bradford, Pa.

stock.

—

•

Colonial Acceptance Corp.

Dec. 20 filed

$2,500,000 of 6% junior subordinated sink¬
ing fund debentures, series B, due Dec. 1, 1968, of which
$1,529,550 principal amount are offered in exchange
for $1,390,500 of debentures due 1958 on the
basis ol
$550 of
Offer

new

debentures for each $500 of debentures held.

expires Feb. 21.

Price—At

par

and

accrued

in-

Volume

terest.

Number 5398

181

Proceeds

The Commercial and Financial Chronicle

...

To retire junior subordinated

—

Contact

sinking
Underwriters
Fairman, Harris &

Uranium, Mines, Inc., N. Y.
(letter of notification) 500,000 shares of com¬
mon stock
(par one cent). Price—10 cents per share.
Proceeds—For mining expenses. Office—100 West 42nd
St., New York. Underwriter—Justin Steppler, Inc., New

fund debentures which mature Dec. 1, 1958.

•—Straus,

Blosser &

McDowell and

Dec.

Co., Inc., both of Chicago, 111.
Colorado

Plateau

Uranium Co.

Continental Loan

—For mining activities.
Office — 824 Equitable Bldg.,
Denver 2, Colo. Underwriter—John L.
Donahue, 430 16th

Dec.

Nov. 1

(letter of notification) 300,000 shares of common
subscription to present stockhold¬
Price—At par ($1 per share). Proceeds—For work¬

stock to be offered for

ing capital, inventories, machinery and equipment, etc.
Office—109 N. Larchmont Blvd., Los Angeles
4, Calif.
Under wri ter—N one.

Price—At

Proceeds—For investment.

which 20,000 shares are to be sold for account of certain

stockholders

ceeds

and

Price—To

company.

40,080

shares

be supplied

To be used

—

by

Co., Dallas, Tex.

(letter of notification)
and

$150,000 of 4%

10-year

Devil

42,000 shares of

for

of

account

amendment.

Pro¬

principally in connection with

8

mon

stock

writer—Melvin F.
ver,

con¬

Uranium

it Dodge Uranium Corp., Grand Junction, Colo.
(letter of notification) 200,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For min¬

★ Crosse & Blackwell Co., Baltimore, Md.
(letter of notification) $250,000 of 10-year sub¬

Jan. 20

ordinated convertible debentures due Feb. 15,
vertible into common B stock on the basis of

ing expenses.

Jan. 21

1965 (con¬
one

share

Price—At par. Pro¬
Office—6801 Eastern Ave.,

ceeds—For

Office—212 Uranium Center Bldg., Grand

Underwriter—None.

Junction, Colo.
Duke

Power Co.

218,737 shares of common stock (no par), be¬

Dec. 3 filed

stockholders of

ing offered for subscription by common
Consolidated Credit Corp., Charlotte, N. C.
Oct. 25 (letter of notification)
$100,000 of 20-year 6%
subordinate sinking fund notes and 100
ten-year war¬
rants to purchase 20 shares of common stock to be
sold
in units of a $1,000 note and one warrant.

Price—$1,000

per unit

(each warrant is exercisable at $10 per share.)
repay bank loan.
Office
221^ West
Trade St., Charlotte, N. C.
Underwriter—J. C. Wheat
& Co., Richmond, Va.
Proceeds —To

—

Consol. Edison Co. of Now
York, Inc.
April 7, 1954, filed $50,000,000 first and
refunding mort¬
gage bonds, series K, due May 1, 1984. Proceeds—To be
applied towards cost of redeeming $27,982,000 New York

Steam Corp. first mortgage bonds and
$25,000,000 West¬
chester Lighting Co. general
mortgage bonds. Under¬
writer—To be determined by
competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co.

Inc.; Morgan Stanley

& Co.; The First Boston

for May

Corp.

Offering—Originally set

11, but has been postponed because of market

conditions.

No

Constellation Uranium Corp.,
Denver, Colo.
(letter of notification) 1,000,000 shares of

Oct. 11

stock.

mon

Price—At

(one cent

par

com¬

per

For

—

NEW
January 28

ISSUE

(Friday)

to

Common

stockholders—underwritten

by

of)

&

Halsey, Stuart & Co. Inc.; and Savard
& Hart) $35,000,000
;

Co.;

Works

4%

bonds

due

1983.

Price—To be supplied by
Romenpower Electra Con¬
Co., which received the bonds in payment
for work preformed for the
Republic or one of more
of its agencies. Underwriters—To be named
by amend¬
Proceeds —To

amendment.
struction

ment.
Dallas Power &

Jan.

Light Co. (2/14)
$7,000,000 of sinking fund debentures due

14 filed

1980.

Proceeds—For

—To

construction

Underwriter

program.

determined by competitive
bidding. Probable
Halsey, Stuart & Co. Inc.; Salomon Bros &
Hutzler; The First Boston Corp.; Lehman Brothers;
Union Securities Corp. and Wertheim & Co.
(jointly);
Kidder, Peabody & Co., Blyth & Co., Inc. and Merrill,
Lynch, Pierce, Fenner & Beane (jointly); Equitable Se¬

bidders:

curities

Corp.;

Kuhn,

Loeb

be received up to noon

&

(EST)

Co.

Bids—Expected

Feb.

on

524

exploration and development expenses.

Atlas

Bldg.,

Van Blerkom

Salt Lake City, Utah.

&

Co.,

Underwriter—

CALENDAR
Cement

(Merrill Lynch,

Corp

Pierce,

Common'*^

Fenner &

Beane)

60,080 shares

Corp.)

420,623 shares.

(Monday)

(Bids

^

(Bids

Debentures

EST)

noon

11

EST)

a.m.

(Tellier

6c

(Peter

$7,000,000

15

(Tuesday)

Co.)

Kansas

(Bids

11

(Shields

&

Texas

Co.)

February 3
Allied

Stores

Electric Service

Common
&

(Bids

Sheraton
300,000

(Paine,

Webber,

Pittston

Co.

(Allen

&

435,934

March

Central

&

South

Reynolds &

Co.)

285,000

shares

(Monday)

D. Fuller & Co. and Vermilyea

February
Motors

(Offering

to

Brothers)

(Bids

(Exchange

(Tuesday)

8

Public

approx.

PST)

Service

offer—not

invited)

Common

600,000

shares

March

15

Bonds

be

to

invited)

$10,000,000

(Bids'to-be

Preferred

invited)

$6,000,000

February 9
(W.

C.

(May

Union

be

Securities

May 10

Bonds

Co

(Bids

Common
28,000

Corp.)

384,861

shares

(Tuesday)

Bonds

11

a.m.

EST)

$12,000,000

(Wednesday)

Electronic Specialty Co.,

Los Angeles, Calif.
100,000 shares of capital
stock (par 50 cents).
Price—$3 per share. Proceeds—
For working capital.
Office—3456 Glendale Blvd., Los
Angeles, Calif. Underwriter — D. A. Lomasney & Co.,

Jan.

10

(letter of notification)

Corp.)

6

filed

300,000 shares

of capital stock.

Electronics Investment Corp., San

Price—At

14 filed 2,000,000

Diego, Calif.

shares of capital stock (par $1).

Proceeds—For investment.

it Epsolon Uranium Corp., St. George, Utah
Jan. 19 (letter of notification) 4,277,394 shares of com¬
mon stock
(par one cent). Price—To incorporators only,
2V2 cents per share. Proceeds — For mining expenses.

Alabama

mon

Bonds

Co

Power
(Bids

11

a.m.

EST)

$15,000,000

November
Southern

9

(Wednesday)

Co.
(Bids

—

to

be

invited)

500,000

shares

Uranium, Inc.

18

Gas Corp.,

Denver, Colo.

(letter of notification) 5,400,000 shares of com¬
stock (par five cents) to be offered for subscription
20

by stockholders of Colo-Kan Fuel Corp. for a period
then to public.
Price—5 Vz cents per share.
Proceeds—For expenses incident to gas activities (and

of 40 days;

$5,625,000

Common

Belle

(letter of notification) 5,000,000 shares of com¬
mon stock (par one cent).
Price—Five cents per share.
Proceeds—For exploration and development expensea
Office—506 First Security Bank Bldg., Salt Lake City,
Utah.
Underwriter—Utah Securities Co., same city.
Oct.

Oct.

Preferred

(Offering to stockholders—underwritten by W. C.
Langley & Co. and The First Boston Corp.) 540,894 shares




July 1, 1967, and 1,950,000 shares of common

purchased, with amount of shares increasing
proportion to amount of bonds purchased. Price—
100% of principal amount for bonds. Proceeds—To pay
balance
of purchase price
of Las Vegas Hotel, Inc.
capital
stock,
construction
of main hotel buildup:
pavilions, swimming pool, furnishings, etc. Underwriter
—Company may sell debenture bonds and common stock
to dealers through brokers.

Fallon

shares

Co., Inc
Co., Inc

Inc., Las Vegas, Nev.
8% sinking fund debenture

(par 10 cents), each purchaser of bonds to have
the right to purchase common stock at par at rate of
10 shares for each $100 of bonds up to $9,900 of deben¬

Eula

Common

Georgia Power Co

$12,000,000

Langley & Co. and The First Boston

American Water Works

$6,000,000 of

Underwriter—None.

(Friday)

May 31 ( Tuesday)

American Water Works

filed

Price—$5 per share.

(Tuesday)

Kansas Gas & Electric Co

by Morgan
$325,000,000

underwritten)

Morocco Enterprises,
29

($1 per share). Proceeds—For machinery and build¬
ing and working capital. Office — 407 Liberty Trust
Bldg., Philadelphia, Pa. Underwriter—None.

(Tuesday)

Westpan Hydrocarbon Co

Co. of California
a.m.

El

Dec.

par

$298,400

Common

Co.)

Telephone

Southeastern

$5,000,000

Kansas Gas & Electric Co

Corp
&

address.

Electronics Co. of Ireland

Debentures
Curtis)

stockholders—underwritten

Stanley

General

8

(Monday)

Corp.___i

April 15
General

*

Dec.

British Western America Uranium Corp.__Common
(S.

be

to

(Bids

February 7

it East Texas Loan & Investment Co.
(letter of notification) 25,000 shares of common
stock (no par). Price — $10 per share. Proceeds—For
working capital. Office—203 East Cotton St., Longview,
Tex.
Underwriter—D. G. Carter Investment Co., same

shares

Common
and

1

West

Common

—

Co.

28

Jackson &

Webber,

(Bids

Minerals & Chemicals Corp. of America
Brothers)

$17,000,000

of America.

Corp.

(Paine,

shares

Jackson & Curtis; Stone & Webster
and Pacific Northwest Co.) $3,600,000

(Lehman

1, 1954. Price — At par (in de¬
$1,000 each). Proceeds—For purchase el
real estate, capital improvements and contingencies. Of¬
fice— 306 E. Main St., Johnson City, Tenn. Underwriter
—D. T. McKee Investment Co., Box 904, Bristol, Va.
nominations of

New York.

General Telephone Co. of the Northwest-Preferred
Securities Corp.;

Bonds

EST)

a.m.

February
....Common

(Lehman Brothers)

11:30

(Wednesday)

Co

$1,500,000

(Thursday)

Corp.

(letter of notification) $160,000 of first mortgage

bonds dated Dec.

6%

Jan.

(Wednesday)

Fuller

Common

about $900,000

50,000 shares

General Homes, Inc
D.

Bonds

$16,000,000

(Wednesday)

Co.)

February 23

(S.

$750,000

Georgia Natural Gas Co

Common

February 2

Co.)

EST)

a.m.

February 16
South

Hycalog, Inc.
(Keith Reed & Co.)

&

Morgan

City Power & Light Co

Common

$300,000

Dec. 20

in

$25,000,000

Corp.

Tempe, Ariz.

East Tennessee Water Corp.

ture bonds

February

$1,100,000

(Tuesday)

Green Mountain Uranium

Ariz.; John Brannan, Phoenix, Ariz.; and J. Lee Thomp¬

stock

Chesapeake & Colorado Uranium Corp.__Common

February 1

non-voting

shares of class C common
non-voting stock at par ($1 per share); 7,500 shares of
class D common non-voting stock at par ($2 per share);
and 94,722 shares of class E common non-voting stock
(par $1), of which 34,444 shares will be offered to offi¬
cers and directors at par, and 60,278 shares will be of¬
fered to public at $2 per share. Underwriter — None.
Stock will be offered through W. Delbert Tenney, Tempe,
stock at par (50 cents); 15,000

bonds due

February 14

Chesapeake & Potomac Telephone Co. of Balti¬
more
City
Debentures

it East N'West Finance Co., Phoenix, Ariz.
(letter of notification) 120,000 shares of class AjV
common voting stock at par
(25 cents per share); 28ftj»000 shares of class A common non-voting stock at par

Jan. 4

Common

'

Preferred & Common

Securities

derwriter—N one.

Jan. 20

January 31 (Monday)
(Aetna

Office—•

city.

same

Dallas Power & Light Co

Bowl-Mor Co., Inc

rights to expire Jan. 28. Price—$40 per share. Proceed*
repay bank loans and for new construction.
Un¬

—To

son,

Debentures

,

to

14.

Co., Salt Lake City, Utah
Oct. 18 (letter of notification) 2,000,000 shares of com¬
mon stock Price—At
par (15 cents per share). Proceeds
—For

12, 1955 on the basis of one new share for
each 20 shares held (with an oversubscription privilege);
record Jan.

(25 cents); 30,000 shares of class B common

be

(Offering to stockholders—no underwriting)

(City

(Shields

(Republic of)
$2,500,000 of Veterans, Courts and Public

filed

Lehman Corp.

Glore

Forgan 6c Co.) 97,481 shares

Montreal

7

Consolidated

Automatic Canteen Co. of America
(Offering

Jan.

Desert Uranium

share). Pro¬
exploration and development expenses.
Office—206 Mercantile Bldg.,
Denver, Colo. Underwriter
—Petroleum Finance Corp., Oklahoma
City, Okla.

ceeds

Cuba

date set.

new

Service,

Inc., K. O. V. O. Bldg., P. O. Box 77, Provo, Utah.

working capital.
Baltimore 24, Md. Underwriter—None.

Beane,

Underwriter—Security

Utah.

Moab,

Underwriter—None.

Underwriter—Merrill

Fenner &

Colo.

^ Diamond Uranium Corp., Moab, Utah
Jan. 20 (letter of notification) 3,500,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
Proceeds—For mining expenses.
Office—M. I. C. Bldg.,

of stock for each $2 of debentures).

New York.

Bldg., Maob, Utah. Under¬
Schroeder, 501 Kittredge Bldg., Den¬

Main St., Petersen

fice—21

it Cooperative Trading, Inc., Waukegan, III.
14 (letter of notification) 7,500 shares of common
Price—At par ($10 per share). Proceeds—To pay
debt and for working capital.
Office — 711 McAlister
Ave., Waukegan, 111.

(par one cent). Price—10 cents per share.
exploration and development costs. Of¬

Proceeds—For

stock.

struction program, already commenced, at Kansas plant.

Lynch, Pierce,

Canyon Uranium Corp., Moab, Utah
(letter of notification) 3,000,000 shares of com¬

Nov.

Jan.

150,000 shares of capital stock.

it Consolidated Cement Corp., Chicago, III. (2/9)
Jan. 20 filed 60,080 shares of common stock
(no par), of
selling

C preferred

stock; remaining 12,000 shares to be pur¬
chased by underwriter.
Price—$1,400 per unit; and $2
per common share.
Proceeds—To buy common stock
of Budget and Mutual and for working capital. Office—
815 Fidelity Union Life Bldg., Dallas, Tex. Underwriter
? —Securities Management Corp., same address.

★ Composite Fund, Inc., Spokane, Wash.
market.

$10); and 1,000 shares of 6% cumulative setm^
stock (par $100) or an equal amount of 5%
debentures due Feb. 15, 1965 (aggregate of the preferred
and/or the debentures will not exceed $100,000). Price
—At par.
Proceeds—For expansion. Office—2030 Har¬
ford Road, Baltimore, Md. Underwriter—None.
stock (par

200 shares of

Colorvision, Inc., Los Angeles, Calif.

filed

Jan. 21

common stock (par 10
cents) to be offered in units of $1,000 of debentures and

St., Denver, Colo.

Jan. 21

22

debentures

7B

^ Devale Dairies, Inc., Baltimore, Md.
(letter of notification) 10,000 shares of common

7

York.

Dec. 1 (letter of notification) 1,900,000 shares of common
stock (par one cent). Price—15 cents per share. Proceeds

ers.

(533)

possibly uranium). Office—527 Ernest & Cranmer
Common

*

or?

r\Yi

Bldg.,

nn no

74

The Commercial and Financial
74

Price

fjpntinued from page 73
First

Securities Corp.,

class A common stock
(par 25 cents), 214,285 shares of class B common stock
(par 35 cents) and 300,000 shares of clasS1 C common
stock (par 50 cents). Price — At par.
Proceeds — For
working capital. Office—Phoenix, Ariz. Underwriter—

Nov.

320,000 shares of

filed

29

(2/1)
Nov. 30 (letter of notification) 2,000,000 shares of com¬
mon
stock (par one cent).
Price—15 cents per share.
Proceeds—For mining activities. Office—618 Rood Ave.,
Grand Junction, Colo. Underwriter—Tellier & Co., Jer¬

.

.

.

Thursday, January

27, 1955

it Federal Civilian Employees'
Washington, D. C.

of preferred stock (par

$100).

Club,

of 25-year 6%
thereof). Pro¬
ceeds—For purchase of property and initial develop¬
ment. Underwriter—None. Incorporated—In Virginia.

Jan.

(letter of notification) $250,000
(in units of $100 or multiples

18

debentures

Financial
Jan.

New York

Credit Corp.,

filed

29

of 7% cumulative

250,000 shares

sinking

preferred stock. Price—At par ($2 per share). Pro¬
ceeds—For working capital. Underwriter—E. J. Foun¬
tain & Co., Inc., New York.

Proceds—To redeem 50,000 shares of $4.50 divi¬
dend preferred stock, 60,000 shares of $4.40 dividend
preferred stock, 1949 series, and 50,000 shares of $4.44
dividend preferred stock at the prevailing redemption
prices of $105, $105, and $105.75, respectively. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Stone & Webster Securities Corp.; Lehman
jbrothers and Equitable Securities Corp. (jointly); Kunn,

Four States Uranium Corp.,

Aug.

(letter of notification) 300,000
Price—At par ($1 per share).

16

stock.

mon

shares of com¬
Proceeds—For

and development expenses.
Office —
Rood Avenue, Grand Junction, Colo.
Underwriter
Joe Rosenthal, 1669 Broadway, Denver, Colo.
exploratory

618
—

Ltd. (Canada)

Underwriter—McCoy & Willard,

cent). Price—Two cents per

stock (par one

Price—$250

Underwriter—To be determined by com¬

bidders: Halsey, Stuart &
Merrill Lynch, Pierce, Fenner
& Beane and White, Weld & Co. (jointly); Salo¬
mon Bros. & Hutzler and Union Securities Corp.; Kuhn,
Loeb & Co. and A. C. Allyn & Co., Inc. (jointly); Lee
Higginson Corp. and Carl M. Loeb, Rhoades & Co.
(jointly); Stone & Webster Securities Corp. Bids—Had
tentatively been expected to be received up to 11 a.m.
(EDT) on June 15 at The Hanover Bank, 70 Broadway,
New York, N. Y., but offering has been postponed.

capital

share. Pro¬

development of oil and ura¬
nium properties. Office — 414 Judge Bldg., Salt Lake
City, Utah. Underwriter—Utah Uranium Brokers, same

ceeds—For exploration and

city.

(letter of notification) 25,000,000 shares of capi¬
Price—At par (one cent per share). Proceeds

Oct. 25

tal stock.

exploration and

—For

36

development expenses. Office—

Underwriter

Salt Lake City, Utah.
Flegal & Co., same address.

West Broadway,

—Melvin

G.

Manufacturing Co., Wilmington, Del.
of notification) 50,000 shares of 8% cumu¬
lative preferred stock (par $1) and 50,000 shares of class
A common stock (par 10 cents) to be offered in units of
one
share of each class of stock. Price —$3 per unit.
Proceeds—For working capital, etc.
Office—15 Brookside Drive, Richardson Park, Wilmington 4, Del. Under¬

it H. and S.

(2/2)
Dec. 15 filed 300,000 shares of common stock (par $1).
Price—$5 per share. Proceeds—For plant expansion, new
Office—
equipment, inventory and working capital.
Huntington Station, L. I., N. Y. Underwriter—S. D. Ful¬
ler & Co., New York.

Jan. 17 (letter

it General Motors Corp., Detroit, Mich. (2/8)
20 filed 4,385,000 shares of common stock (par $5)
to be offered for subscription by common stockholders
of record Feb. 8 at the rate of one new share for each

Price—To
capital ex¬
penditures and working capital. Subscription Agents—
J. P. Morgan & Co. Incorporated, New York, N. Y.; Na¬
tional Bank of Detroit, Detroit, Mich.; Continental Illi¬

Proceeds

* Kelley-Jo Oil Corp., Choctaw, Okla.
Jan. 17 (letter of notification) 500 shares

of common
Proceeds—For
exploration and development. Office—122 North Broad¬
way St., Choctaw, Okla.
Underwriter—None.
Kemper Thomas Co., Cincinnati, Ohio
Nov. 5 (letter of notification) 10,000 shares of common
stock (par $10) to be offered for subscription by stock¬
holders first, then to public.
Price—$16.50 per share.
Proceeds—For working capital. Office—Norwood Park,

writer—None.

General

•

Homes, Inc.

held; rights to expire on March 7.
by amendment. Proceeds—For

20 shares
be

supplied

Co., Chicago, 111.; and Bank

nois National Bank & Trust

America

of

N.

S.

&

T.

A., San Francisco and Los An¬

Underwriter—Morgan Stanley & Co., New

geles, Calif.
York.

Dec.

stock (par two

mon

exploration and development expenses.
Office—208 Turner-Cottman Bldg., Casper, Wyo. Under¬
writer
Casper Brokerage Co., Inc., Henning Hotel
Bldg., Casper, Wyo.
• Hilton Hotels Corp., Chicago, III.
Dec. 23 filed $7,978,900 of 15-year convertible deben¬
tures, due Jan. 1, 1970, and $31,915,600 of 15-year deben¬
tures due Jan. 1, 1970, being offered to certain holders
—

former

and

it G. M. Shares, Inc., Detroit, Mich.
Jan. 20 filed 52,585 shares of class A

stock

(par $1),

11,138 shares of class B stock (par $1) and 790 shares of
common stock (par $1) to be offered for subscription by
holders of the respective shares at the rate of one new
share for each 20 shares of stock held as of record Feb. 8.

cents).

of com¬
Price—Five cents per share.

For

—

holders of common

stock of Hotels Statler

Co., Inc. on the basis of $10 principal amount of con¬
vertible debentures and $40 principal amount of nonconvertible debentures for each common share held.
The offering

will expire on Feb. 14.

Price—At 100% of

principal amount. Proceeds—To prepay bank
for working capital.
Underwriter—None.

loan and

Proceeds—To purchase common stock of General Motors
Corp. through the exercise of rights received from that

At Dec. 31,

company.

1954,

G. M. Shares, Inc. owned

2,577,160 shares of General Motors common.
General Services Life Insurance Co.

Sept.

50,000 shares of class A common stock
Price—$10 per share. Proceeds—For general
Office—Washington, D. C. Under¬

filed

14

(par $1).

it Howell-Rogin Studio, Inc.
Jan. 11
(letter of notification)
stock.
Price—At par ($100 per

• Hycalog, Inc., Shreveport, La.
6 (letter of notification) 50,000

corporate purposes.

Jan.

writer—None.

stock

of California (2/8)
filed $12,000,000 of first mortgage bonds, series

General Telephone Co.
Jan.

10

Price—To be supplied by amend¬

I, due Feb. 1, 1985.

Proceeds—To discharge bank loans and for prop¬

ment.

erty additions
determined

Halsey,

by

Stuart &

Curtis and

Kuhn,

and improvements. Underwriter—To be
competitive bidding. Probable bidders:

Stone

Loeb

&

Co.
&

Paine, Webber, Jackson &
Webster Securities Corp. (jointly);

Co.

Inc.;

and

Salomon

Bros.

&

Hutzler

(jointly); White. Weld & Co. and Kidder, Peabody &
Co. (jointly). Bids—Expected to be received up to 8 p m.
(PST) on Feb. 8.
•

General

Jan.

12

Telephone

filed

ferred stock

144,000

Co.

shares

Northwest (2/3)
4.80% cumulative pre¬

of the
of

(par $25). Price—To be supplied by amend¬

Proceeds—To repay bank loans. Underwriters—
Paine, Webber, Jackson & Curtis and Stone & Webster
Securities Corp., both of New York; and Pacific North¬
west Co.,
Seattle, Wash.
ment.

General

Uranium Corp.,

Salt Lake City, Utah
Oct. 27 (letter of notification) 1,200,000 shares of com¬
mon
stock.
Price—At par (25 cents per share).
Pro¬
ceeds—For development and exploration expenses.
Of¬
fice—404 Boston Building, Salt Lake City, Utah. Under¬
writer—p. G. Christopulos & Co., same city.
Globe
Jan.
of

18

Metallurgical Corp., Beverly, Ohio

filed

which

147,500 shares of common stock (par $5),
30,000 shares are to be offered to a group

composed largely of stockholders of Globe Iron Co, the
partent and

117,500 shares are to be offered to public.




500 shares of class A
share). Proceeds—For

equipment and working capital. Office — 756
Ave., New York 19, N. Y. Underwriter—None.

Seventh

(2/1)

shares of common
are to be first of¬
to public. Price—
to public $5 per share. Proceeds—For

general corporate purposes.
& Co., Dallas, Tex. ^

Underwriter—Keith Reed

Imperial Minerals, Ltd. (Canada)
23 (Regulation "D") 830,008 shares of common
stock (par $1). Price—36 cents per shares "Proceeds-—
For mining activities.
Underwriter—Milton D. Blauner
& Co., Inc., New York.
Offering — Expected today
•

Nov.

(Jan. 27).
International
Nov.

23 filed

Spa,

Inc., Reno, Nev.

12,000 shares of common

stock (no par).

share. Proceeds—For land, construc¬
tion, working capital, etc. Underwriter—None.
Price—$500

per

Investment Corp. of America

Aug. 30 (letter of

notification) 3,799 shares of cumula¬

preferred stock (no par) and 3,799 shares of com¬
stock (no par). Price—For preferred, $20 per share;
and for common, $2 per share. Proceeds—For working

tive

mon

capital.

Office—3603 Broadway, San Antonio, Tex.

derwriter—Interior Securities, Inc., San
Irwin Community

Un¬

Antonio, Tex.

Television Co., Irwin, Pa.

Aug. 31 filed 4,000 shares

of 5% cumulative preferred

$100) and 2,250 shares of common stock (par
$100), of which 4,000 shares and 2,000 shares, respec¬
tively, have been subscribed for by 156 persons prior
to registration thinking registration was unnecessary.
Each subscription agreement provided for payment of

stock (par

2%
and

total purchase price on signing agreement
balance on request of the board of directors or at

of the

Cincinnati, O.

Underwriter—None.

Lake Lauzon Mines,

Ltd., Toronto, Can.

of common stock (par $1,
shares are to be offered in
160,000 shares for account
of Percy E. Rivett. Price—40 cents per share, U. S. funds.
Proceeds
For development and exploration expenses.
Underwriter—To be named by amendment.
Lee Finance Co., Minneapolis, Minn.
Nov. 3 (letter of notification) 13,000 shares of preferred
stock (par $10) and $170,000 of 8% subordinate notes
due five years from date of issue.
Price—At par. Pro¬
ceeds—To reduce bank loans and for working capital.
Office—305 Northwestern Federal Bldg., Minneapolis,
Minn. Underwriter—Daniels & Smith.

Aug. 2 filed 660,000 shares
Canadian), of which 500,000
behalf of the company and

it Lehman Corp., New York
20 filed 420,623 shares of

(2/9)

capital stock (par $1) to
be offered for subscription by stockholders of record
about Feb. 8 on the basis of one new share for each 10
shares held (with an oversubscription privilege); rights
to expire on Feb. 23. Price—To be supplied by amend¬

Jan.

ment.

Proceeds—For investment.

Underwriter—None.

it Levine (A. A.) Co., Inc., Bedford, Mass.
Jan. 17 (letter of notification) 540 shares of class A
fon stock and 527 shares of class B common stock.

com-

Price

($50 per share). Proceeds—To procure labor¬
atory facilities and for working capital. Office—166 Page

—At par

Road, Bedford, Mass.

Underwriter—None.

Libbey-Owens-Ford Glass Co., Toledo, Ohio
Jan. 24 filed 19,322 shares of common stock (par $10) to
be offered for sale to employees holding series J options
granted pursuant to the company's Stock Option Plan.
it

(no par), of which 5,000 shares
fered to employees and the remainder
$4.60 per share;

($100 per share).

Price—At par

—

Highland Uranium, Inc., Casper, Wyo.
13 (letter of notification) 6,000,000 shares

Jan.

—

—

stock.

Uranium Corp.

Butte

Gunsite

For merchandise purchases and
working capital. Office—132 Market St., Paterson, N. J.
Business—Distributor of jewelry. Underwriter—None. :
Justheim Petroleum Co., Salt Lake City, Utah
•
Dec. 9 (letter of notification) 2,650,000 shares of com¬
mon stock
(par five cents). Price—10 cents per share.
Proceeds
For oil and mining expenses. Office—318
Phillips Petroleum Bldg., Salt Lake City, Utah. Under¬
writer—Hunter Securities Corp., New York.
Kansas City Power & Light Co.
(2/15)
Jan. 19 filed $16000,000 of first mortgage
bonds due
1985. Proceeds—To repay bank loans and for new con¬
struction. Underwriters—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Lehman Brothers and Bear, Stearns & Co. (jointly);
Kuhn, Loeb & Co., Salomon Bros. & Hutzler and Union
Securities Corp. (jointly); Glore, Forgan & Co.; Blyth
& Co., Inc. and The First Boston Corp. (jointly); White,
Weld & Co. and Shields & Co. (jointly); Harriman Rip¬
ley & Co., Inc.; Equitable Securities Corp.
Bids—Ex¬
pected to be received up to 11 a.m. (EST) at 20 Ex¬
change place, New York, N. Y.
Proceeds

unit.

per

petitive bidding.
Probable
Co. Inc.; Lehman Brothers;

Co., Salt Lake City, Utah

notification) 11,000,000 shares of

Dec. 9 (letter of

B

14, 1954 filed $24,000,00 first mortgage bonds due
June 1, 1984.
Proceeds—To redeem $10,000,000 of 3
first mortgage bonds due 1981 and $10,000,000 of 3%%
first mortgage bonds due 1983, and for general corpo¬

1

Gem Uranium & Oil

it Jay-O, Inc., Paterson, N. J.
24 (letter of notification) 1,200 shares of common
A voting stock (no par) and 4,800 shares of common
non-voting stock (no par) to be offered in units of one
common A share and four common B shares.

Jan.

Co.

Gulf States Utilities

/Aug. 10 (Regulation "D") 300,000 shares of common stock.
*YHce—At par ($1 per share). Proceeds—For explora¬
tion and development costs.
Office — 100 Adelaide St.
West, Toronto, Canada.
Boston, Mass.

other.

May

rate purposes.

Underwriter—John A. Aicholtz
Fort Worth, Tex., and an¬

505 Macon St.,

postponed.

fering has been

it Futures, Inc., New York
11 (letter of notification) 94,000 shares of capital
stock (par $1).
Price—At net asset value. Proceeds—
For investment in commodities and commodities futures.
Underwriter—Futures Distributors, New York.

(letter of

Falls, Tex.

Glore, Forgan & Co. and W. C. Langley &
(jointly). Bids—Had tentatively been expected to be
received up to 11:30 a.m. (EDT) on June 15 at The
Hanover Bank, 70 Broadway, New York, N. Y., but of¬

Jan.

Gatineau Uranium Mines

ther

Co.

Grand Junction, Colo.

Properties & Oil Development Corp.
notification) 30,000 shares of captal
($10 per share). Proceeds—For fur¬
exploration and development. Addres—P. O. Box
17

stock. Price—At par

Loeb & Co.;

fund

and rer

it Jarmon
Jan.

1109, Wichita

filed 160,800 shares

May 14, 1954

equipment, construction

& Associates,

Utilities Co.

Gulf States

None.

after 15 days from date of grant of
Price—$100 per share. Proceeds—For

lated purposes.

City, N. J.

sey

or

organization expenses,

Ohio.

Mountain Uranium Corp.

Green

on

television permit.

and

Co., Cleveland,

Discount Co.

Home Loan &

Farm &

—

time

any

$10 per share. Proceeds — For capital improve¬
working capital. Underwriter—McDonald &

—

ments

Denver, Colo.
Underwriter
Philadelphia, Pa.

t

Chronicle

(534)

Price—$52.50 per share.
Liberty Uranium Corp.,

Salt lake City, Utah

July 1 (letter of notification) 3,000,000 shares of common
stock
(par one cent).
Price—Three cents per share.
Proceeds—For mining operations.
Office—402 Darling

Bldg., Salt Lake City, Utah.
Underwriter — Uranium
'Mart, Inc., 146 S. Main St., Salt Lake City, Utah.

Lorain, Ohio
notification) 2,500 shares of common
be first offered for subscription by
stockholders.
Price—$20 per share. Proceeds—To re¬
imburse treasury for expenditures already made for
additions to property.
Office—203 West Ninth Street,
Lorain

Telephone Co.,

Sept. 7 (letter of
stock (no par) to

Ohio.

Lorain.

Underwriter—None.

it Lucky Strike Oil & Land Co.
Jan. 20 (letter of notification) 1,000,000 shares
comomn stock
(par five cents). Price — 25
share. Proceeds—For expenses incident to oil
Office—1824 California

of class A

cents per
activities.
St., Denver, Colo. Underwriter

—None.
*

Uranium Corp.
notification) 4.300,000 shares of common
stock (par one cent). Price—Five cents per share. Pro¬
ceeds—For mining operations.
Office—38 South Main
Sir, Salt Lake City, Utah. Underwriter—Seaboard Se¬
curities Corp., Washington, D. C.
Lucky

Jan. 4

Strike

(letter of

Inc., Salt Lake City, Utah
notification) 4,000.000 shares of com¬
cent). Price—Three cents per share.

Mac Fos Uranium,
Sept.

16 (letter of

mon

stock (par one

Volume-181i; Number -5398/*-.

The Commercial and Financial Chronicle

.

Proceeds—For exploration and development costs. Office
—239 Ness Bldg., Salt Lake, City, Utah.
Underwriter—
Utah

Securities Co.*

-cfty.

same

/ v"

.

Magic Metals Uranium Corp.

■

Natural Gas Co.

and 6,336 shares for account of selling stockholder.
Price—To be supplied by amendment (expected around

construction

•

Missouri

Jan.

record

12

at

rate

of

one

to

—For

construction

Monte Cristo

Price—At
f

•

-

Oct.

;

5

(letter

unit.

stock

mon

(par one
exploration

Montezuma

share of each class of stock.

Proceeds—To purchase

prop¬

Jacqueline Rose,
.Blvd., Los Angeles, Califis President.

E.

and

development
Co., 139 North

Reed

Uranium, Inc.,

•

York

same

city.

or, at .the election of the Scrah
each share of Scranton's 3.35

this issue

ScotfcCottfc-SP*

on

Statement

effective

Price—To be supplied by amendment. Proceeds
acquisition of properties. Underwriter—William

Co., New York.

'

if Phaostron Co., South Pasadena*
Jan. 19 filed 90,000 shares of common stock (par $1), of
which 50,000 shares are for the account of the company
and 40,000 shares for account of selling stockholders
Price—$6 per share. Proceeds — To reduce bank loans
and for working capital. Business—Manufacturer of elec¬

common

tric

share- Proceeds
?elling stockholder. UnderDam & C6.r Minneapolis, Minn.

Shipbuilding, Qorp^ llevoe & Raynolds

Scranton.

Per

panel

resistors,

meters, electric test
aircraft and sensitive

instruments, precision
miniature relays, au&

Underwriter—First California Co., San

Co., Inc., Newport Steel Corp;,-; Marion Power
Co., Osgood Co. and TennesseeProducts;GhemicaT^& Oils, Ltd., Toronto, Canada
Corp. on the following basis: 675,549/sharesr^ holders :
275,000 shares of common stock
of the

Jan. 5 filed 206,000 shares of common stock (par $7.50),
of which 106,000 shares are to be sold for account of

540,439 outstanding shares; of

of

Tennessee Products1; &

rate.of l ^ 'shares

for each

.common stock

Chemical

share of

Corp.,

at

the-

stock

common

of

55 cents

Co.,

Inc.

the

at

of

rate

1%

shares

for

(par $1)

of Devoe, at

each of class B

the

of IV3

rate

shares for

stock of Devoe; 1,290,252 shares
1,290,252 outstanding shares of common
of New York Shipbuilding Corp., at the

both

common

to holders of the

stock

(par $1)

rate of

share for each share of

one

common

•

for each 2.1

shares

stock

common

not

owned

(par $10)

by

share of

each

the

of

on

the

stock

rate

of

1V2

shares

common

stock

of

1955,

($1

materials and

raw

ing capital.

per

share).

new

Underwriter

—

Newman

&

Mineola, N. Y.

Uranium

Corp.

Offering-

of which

Jan.

Office—2310 Main St.,
Underwrite!*—Cobb & Co., Inc., same

Chemicals

Corp. of America

435,934 shares of

common

stock

(2/3)
(par $1),

shares

be

supplied by amendment. Proceeds—For
acquisition of properties and for capital requirements in
connection with kaolin catalyst program, and other
gen¬
eral corporate purposes. Underwrter—Lehman
Brothers,
New York.

Minneapolis Gas Co.
30

Inc.

(N. Y.)

fishing reel. Office—280 Madison Ave.,
16, N. Y. Underwriter—None.

Olympic Development Co., Stamford, Conn.
13 (letter of notification) 29,698 shares of common
stock ot be offered for subscription by stockholders at

Jan.

rate of

At

one

new

($1

share for each six shares held.

184,523 shares of common stock (par $1)
being offered for subscription by common stockholders

per

and

for

Paramount Uranium Corp., Moab, Utah
Oct. 7 (letter of notification) 6,000,000 shares of capital
stock. Price—At par (five cents per share). Proceeds—

mining

expenses.

Office—325 Main St., Moab, Utah.

Co., Salt Lake City, Utah.

eight shares held; rights to expire on Feb. 2. Price—$24
per share. Proceeds—For additions to property.
Under¬

Pay Day Uranium Co., Las Vegas, Nev.
Oct. 15 (letter of notification) 2,500,000 shares of capital
stock (par two cents). Price—10 cents per share.
Pro¬
ceeds—For exploration and development costs. Office—■
230 Fremont St., Las Vegas, Nev.
Underwriter—Allied

writer—Kalman & Co.,

Underwriter Co.,

of

record

Jan.

20

at

rate

of

one

new

share

Inc., St. Paul, Minn.




for

each

20-year
sinking fund bonds due Dec. 1, 1979. Price—At par (in
denominations of $1,000 each).
Proceeds—To purchase

the

same

city.

assets

Methow

of

Valley Telephone Co., refund

mort¬

gage

Ranger Lake Uranium Mines, Ltd., Toronto,
Canada

(regulation "D") 300,000 shares of common stock
(par 10 cents). Price—$1 per share. Proceeds—For gen¬
corporate purposes. Underwriter—James Anthony

Securities Corp., New

York.

Rapid Film Technique, Inc., N. Y. City
July 30 (letter of notification) 60,000 shares of com¬
mon
stock
(par 10 cents). Price—$2 per share. Pro¬
ceeds—For working capital. Office—21 West 46th Street,
New York 36, N. Y.
Underwriter—Jerome Rosenberg,
Future Estate Planning. 630 McLean Ave., Yonkers, N. Y.

Airlines, Inc., Miami, Fla.
(letter of notification) 1,190,000 shares of com¬

Oct.

21

mon

stock

holders

on

(par 10 cents) being offered to minority stock¬
basis

the

shares held of record

of

one

new

for

share

each

two

Oct. 26, 1954. Resort

Airlines, Inc.
(Del.), parent, has the right to purchase up to 84% of
the offer. Price—20 cents per share. Proceeds—To re¬
duce accounts payable and for working capital. Address
—Box 242, International Airport,
Miami, Fla; Under¬
writer—None.

Price—

share). Proceeds—To retire short-term
working capital. Office — 30 Commerce
St., Stamford, Conn. Underwriter—None.
par

notes

Underwriter—Van Blerkom &

filed

pro¬

Resort

12

ness—Produces

For
•

Underwriter—None.

(letter of notification) 150,000 shares of class A
stock (par five cents). Price—$2 per share. Proceeds—
For acquisition of Florida company and purchase of ma¬
chinery and equipment; and for working capital. Busi¬

purposes.

125,000 shares

310,934

Price—To

Dec.

Price—Five cents per share.

if Oliver Products,

are to be sold by the company
by certain selling stockholders in¬
cluding Lazard Freres & Co. and F. Eberstadt & Co. Inc.

and

17

New York
&

for construction

eral

land, Ore.

*

filed

and

Dec. 30

(letter of notification) 800,000 shares of common
Proceeds—For min¬
ing expenses. Office—2005 S. E. Hawthorne Blvd., Port¬

city.

14

loans

Underwriters—Morgan Stanley & Co.; Drexel &
Co.; and Glore, Forgan & Co. Offering — Temporarily
delayed.

gram.

Rainier Telephone Co., Rainier, Wash.
14 (letter of notification) $85,000 of 5V2%

10

stock.

Investors Financial Corp.
(letter of notification) 150,000 shares of common
(par 25 cents). Price—$2 per share.
Proceeds—

Minerals

ceeds—To reduce bank

Dec.
■

if Nutmeg Mountain Quicksilver, Inc.

.Military

Texas.

cumulative preferred stock
Price—To be supplied by amendment. Pro¬

(par $100).

debt, and for working capital. Underwriter—Wm.
P. Harper & Son & Co., Seattle, Wash.

Jan.

Expected today (Jan. 27).

•

Bradley

Under¬
Alator Corp., Ltd.;
Streit; all of Toronto,
equipment.

Prices—$14.37 V2 per share as to
7,850 shares; $12.121/& as to 20,000 shares; and $11.25 as'
to 10,000 shares, or a total of $467,844.
*

1,562,500 shares of common stock (par one
Price—40 cents per share.
Proceeds—For ex¬
ploratory operations, machinery and equipment, and for
working capital and unforeseen contingencies.
Under¬

Jan.

and

Public Service Electric & Gas Co.

officer of the company.

cent).

Houston,

Chesler;

'

Dec. 22 filed 250,000 shares of

if Northwest Airlines, Inc., St. Paul, Minn.
37,850 shares of common stock (par $10) to
be issued under options to certain officers and a former

Nov. 26 filed

general corporate

if Professional Casualty Agency Co., Urbana, III.
14 (letter of notification) 88,997 shares of capital
stock (par $1). Price — $1.15 per share. Proceeds—For
working capital, etc. Office—The Maples, Urbana, 111.

Jan.

Jan. 18 filed

l**c.

writer—General Investing Corp., New York.

filed

Telephone & Telegraph Co.
(letter of notification) 2,000 shares of common
(par $100) to be offered for subscription by stock¬
holders.
Proceeds—To
repay
loan.
Office—Elizabeth*
City, N. C. Underwriter—None.
Nov.

Underwriter—None.

Mid-Continent

For

A.

Norfolk & Carolina

Co..

$250,000 of 6%% income
convertible debentures (subordinated) due Feb.
1, 1965,
to be offered initially to stockholders.
Price—100% of
par (in units of $100 or multiples thereof).
Proceeds—
For working capital, etc.
Office—22 Jericho Turnpike,

stock

of options, development

stock

Micro-Moisture Controls,
13 (letter of notification)

1

rights will expire on
$2.06 (U. S.) per

and

Canada.

Jan.

Dec.

(Canadian)

Proceeds—For payment

Louis

Proceeds!—To pur¬
D.

Price—$2

of properties, and for machinery and
writers—Allan H. Investments, Ltd.;

Miami, Fla.

•

•

share-for-share basis;

a

28.

share.

Osgood.

machinery, and for work¬
Frank

on

Feb.

Beverages Co., Hialeah, Fla.
Oct. 28 (letter of notification) 200,000 shares of common
chase

Shipbuilding stock for each five shares of
stock of the Trailer company. Offer will expire

14

which

Underwriter—None.

for

of

IV2 shares of class B

Price—At par

Shipbuilding Corp.

Jan. 26, unless extended.

New York (2/3)
285,000 shares of common stock (par $1),
75,000 shares are to be sold by the company
and 210,000 shares by the Englewood Corp.
Price—To
be suppiled by amendment. Proceeds—To purchase ad¬
ditional assets and for working capital. Underwriter—
Allen & Co. and Reynolds & Co., both of New York.

of

Nippising Mines Co. Ltd., Toronto, Canada
Jan. 3 filed 1,200,000 shares of common stock (par $N—
Canadian) to be offered as "speculative" securities for
subscription by common stockholders of record Jan. 26,

Mi-Ame Canned

stock.

Pittston Co.,

Jan.

•

Marion; and 940 shares
to holders of the 1,410
outstanding shares of class B
common
stock (without par value) of the Osgood
Co.,
not owned by Merritt or
Marion, at the rate of one share
for each

Philadelphia, Pa.

17,409

Merritt, at
common

common

Newport; 26,114
outstanding shares of
Marion Power Shovel Co.,

Co.

100,000 shares by com¬
Price—To be supplied by amendment. Proceeds—
capital expenditures. Underwriter—^Drexel & Co.,

For

Spokane, Wash.
York

Water

pany.

share of

one

stock of

common

of

Co., New York.

(par $1) be¬
offered in exchange for 374,624 shares of common
stock (par five cents) of Highway Trailer Co. at rate of

stock (par $l)of Newport Steel
by Merritt, at the rate of one share

shares of

of

New

Suburban

certain selling stockholders and

To selling stockholders.

ing

common

holders

to

—

Dec. 6 filed 74,925 shares of common stock

stock of N. Y.

Shipbuilding; 27,907 shares to holders of the 58,605 out¬
standing shares of
Corp., not owned

Philadelphia

New Silver Belle Mining
Co., Inc., Almira, Wash.
Sept. 8 (letter of notification) 500,000 shares of common
stock (par two cents).
Price—10 cents per share. Pro¬
ceeds—For exploration and development costs.
Under¬
writers—Percy Dale Lanphere and R. E. Nelson & Co.,

each

share of class A stock of Devoe; 242,700 shares to holders
of the 182,025 outstanding shares of class B common
stock

per-share. Proceeds

Underwriter—L. D. Friedman &

Tennessee; 755,105 shares to holders of the 453,063 out¬
standing shares of class A stock (par $2) of Devoe &

Raynolds

Francisco, Calif.

(no par)^
shares are to be offered in
Canada-apd 155#^&l!iares in the United States. Price—

(par

>•

Reserves,: Inc., New York .
filed $7,500,000 of,. 4% debentures due 1970,
1O"0;OOO' shares of 5% preferred stock (par $25) ; and
1,()00,000>shared of common stock (par. 10 cpnts) to be>#
offered in units of $75 principal amount of debentures,
one share of preferred stock and 10 shares of common

A. M. Burden &

Jan. 26.

1,000 shares of

^k:?(K^k^™e^^^gximiini of $18-50

of

,

Petroleum

—For

42a.i MitmeapoIis, Minn.

^;

v

.

special products.

$5)

*

Pennsylvania'.1

Dec. v27

stock.

Montreal

Dec.

New

Denver, Cold.

-

stock

common

Dec. 22.

^■'.T,'.-*.
V/- ;l

(City of), Canada (1/28)
>
Dec. 30 filed
$35,000,000 of 1955. U. S. currency1 issue
debentures due serially
Japr. ft 1956-1974. Proceeds
To pay for new
construction, improvements, 'etc. UnHalsey, Stuart & Co. Inc. and

Proceeds—To acquire assets

21 filed 3,018,567 shares of
$12.50) to be offered in exchange for:,Oi^tahdihg

the

Virginia

(letter of notification) 3,000,000 shares ^of com- *
stock (par five cents)v. Price—10 cents per share. •

derwriter—Investment Service Co.,

.tylcGluskey & Sons, Inc. Office
—527 Grand Avenue, NeW Haven, Conn. Underwriter—
Barnes, Bodell & Goodwin, Inc.-, New Haycra, Conn.
* *.

of

serie:
cumu

approximately 91% of the preferred stock and 91% ol

expenses.

exploration and development operations.
Office—Ernest and Cranmer Bldg., Denver, Colo. Un¬

and business of H.-& T.

Merritt-Chapman &

preferrec

stock, or for each lot,of four shares of Scrantor
3.35% cumulative preferred stock, three shares of Penn¬
sylvania's 4V2% preferred stock.Pennsylvania own*

-

Proceeds—For

A,, due July 1, 1962^ a»dr $95,000 of 6% debentures,
.

$hareowners, for

cumulative preferred stock, two shares of

5

mon

Underwriter—None,

July 1, .1970,

ton

Corp., Moab, Utah
3,000,000 shares of comcent). Price—10 cents per share.

St., Reno, Nev.

McChiskey'Wife Co., Inc., New Haven, Conn. :
(letter of notification) $95,000 of 5% debentures,

series B, due

cumulative

4.40%

share of Pennsylvania 3.35%

one

latiife inferred stock,

D.

Uranium

Underwriter—James

June 21
series

Scranton

of

(c)

preferred stock for each share of Scranton 3.35%

of notification)

Jan.

10831 Wilshire

stock; and

10

Co., St. Louis, Mo.

to be offered in units of
cents per

Underwriter—Edward

program.

Proceeds—For

erty and fixtures.

each

(with an oversubscription privilege); rights
expire on Feb. 8. Price—$20.75 per share. Proceeds

^"Mayfair Shopping Center, Inc., Los Angeles, Cal.
Jan. 13 (letter of notification) 100,000 shares of class A
(non-voting) common stock (par 48 cents) and 100,000
shares of class B (voting) common stock (par one cent)
Price—50

for

Pennsylvania 4.40% series preferred stock fo?

share

common

Fund, Inc.
328,843 shares of capital stock.

24 filed

one

share

new

each

stockholders of

common

two

share of

stock (par $1) be¬

shares held

Jones &

Proceeds—For investment.

common

the following

on

of Pennsylvania common stock foi
Scranton common stock; (b) om

one share
shares of

(a)

each

>

27,420 shares of

ing offered for subscription by

if Massachusetts Investors Growth

market.

securities of The Scranton Electric Co.

Blosser &

basis:

tl£ilii»es;Go.

Dec. 20 filed

^ Marion River Uranium Co.
June J4 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share.
Proceeds—
For development expenses. Underwriter—Crerie & Co.,
Houston, Tex.

Stock

—Straus,

■

$100); 5,378 shares of 3.35% cumulative preferred St<fc£
(par $100); and 4,032 shares of 4V2% cumulative pre¬
ferred stock (par $100) being offered in exchange foj

McDowzllZs&itimi&S TIL,

Office—65 East 4th South, Salt Lake City, Utah. Under- '
writer—Mid-COnment Securities,inc;; the same city.

r

Dec.
858

pany,

[■?'*

75

Pennsylvania Power & Light Co.
2 filed 65,455 shares of common stock (no par).
shares of 4.40%
cumulative preferred stock (paj

(par $2.50),
of'which-114,000'shares are-to-be for account of com¬

Sept. 14 (letter of notification) 2,995,000 shares of common stock
(par one cent). Price'-10 cen
Proceeds—For exploration and development expenses.

Jan.

(535)

-

Jan. 6 filed 120,336 shares of common stock

rt

1

Missouri

v

Rolon Tire

Oct.

27

stock.

Chain

Corp., Denver, Colo.

(letter of notification) 60,000 shares of common
Price—$1 per share. Proceeds—For increased in¬

ventory, working capital, sales and production expenses,
etc. Office—150 Tejon St., Denver, Colo. Underwriter-

Peters, Writer & Christensen, Inc., same
Rushmore

city.

Uranium & Oil Corp.

of notification) 2,000,000 shares of common
Price—15 cents per share. Pro¬
exploration and development expenses of
uranium and oil properties. Office—618 6th St., Box 8,
Dec. 7 (letter

stock

ceeds

Rapid

(par one cent).

—

For

City, S.

D.

Underwriter—Philip Gordon & Co.,

Inc., New York.

„

Continued

on

page

76

The

Chronicle

Commercial and Financial

.

. .

27, 1955

Thursday, January

(536)

76

4-LSllisbury

preferred stock (par $10)

July 9 filed 621,882 shares of
and 621,882 shares of common stock
offered in units of one share of each

75

Paxton, Mass.

Broadcasting Corp.,

5% notes and
6,000 shares of common stock (par $1) to be offered first
to stockholders in units of $1,000 of notes and 40 shares
of stock. Price—$1,000 per unit. Proceeds—For working
capital. Office — Asnebumskit, Paxton, Mass. Under¬
writer
Kinsley & Adams, 6 Norwich St., Worcester,
(letter of

Jan. 20

(par

stock

Hogle & Co., same

General

Proceeds—For

Neb.

St., Reno,

Inc.
notification) $295,000 of 5%% convert¬
ible debentures due Dec. 1, 1960 and 29,500 shares of
common stock (par 10 cents) to be offered in units of
$100 of debentures and 10 shares of stock. Price—$101
per unit.
Proceeds—To purchase equipment to retire
$50,000 of notes and for working capital..
Trailer Ferry,

(letter of

Nov. 23

city.

Samicol Uranium Corp.,

Price—At par (one cent per
—For development and exploration costs. Office—Medi¬
cal Arts Bldg., Las Vegas, Nev. Underwriter—Uranium
Brokers, Inc., the same city.1

Co.

Klein

and

McGrath

Underwriters—R
Securities Corp., both of

mon

Proceeds—For

Miguel Uranium Mines, Inc.
of notification) 2,000,000

shares of common
stock (par one cent).
Price—15 cents per share. Pro¬
ceeds
For mining operations. Office — Mineral Bldg.,
Grand Junction, Colo.
Underwriter — Tellier & Co.,

Jan. 6 (letter

owned

stockholders of

exploration and development costs. Of¬
fice—211-206 N. Virginia Street, Reno, Nev. Underwriter
—Western Securities Corp., Las Vegas, Nev.

Proceds—For

—

of proper¬

America Building,

Western Securities

Dallas,

Corp., Salt

Longmont, Colo.
3,000,000 shares of com¬
stock. Price—At par (10 cents per share). Proceeds
—For mining expenses. Office—234 Main St., Longmont,

if Tri-State Uranium Corp.,
19 (letter of notification)
mon

shares of common stock (par $10)
and 83,334 shares of preferred stock (par $20) to be
offered in units of one share of each class of stock.
Price—$30 per unit. Proceeds—To construct racing plant
and to repay obligations. Underwriter—Selected Securi¬

Phoenix, Ariz.

Ltd.

Colo. Underwriter

Ucolo Uranium

City, Utah

Co., Salt Lake

shares of com¬
per share.
costs. Of¬
fice—906 Walker Bank Bldg., Salt Lake City, Utah. Un¬
derwriter—Western Securities Corp., the same city.

Sept. 13 (letter of notification) 2,800,000
mon stock (par one cent).
Price — 10 cents
Proceeds—For exploration and development

(Canada)

Sept. 24 (Regulation "D") 599,760 shares of common
stock (par $1—Canadian). Price—50 cents per
—U. S. funds.
Proceeds—For exploration and develop¬

share.

Inc., Salt Lake City, Utah.
notification) 15,000,000 shares of com¬
mon stock (par one cent).
Price—Two cents per share.
Proceeds
For exploration and development costs.
Office—424 Judge Bldg., Salt Lake City, Utah. Under¬
writer—James E. Reed Co., same city.
Uintah Uranium,

(letter of

Oct. 5

and acquisition of proDertv. Underwrite*
J. Cooney & Co., New York. Offering—Now being

ment expenses
—H.

12 filed 83,334

Nov.

Proceeds—For
development expenses. Office — 317

Mines,

Ariz.

Inc., Phoenix,

Paradise,

Turf

cents per share.

and
Railway Exchange Building, Denver,
—E. I. Shelley Co., Denver, Colo.
Tarbell

Underwriter—None.

Colo.

ties, Inc.,

exploration

Underwriter

Jan.

Corp., Denver,

Aug. 17 (letter
mon
stock.
Price—10

East, Salt Lake City, Utah.
Securities Corp., same city.

—358 S. 3rd St.

Colo.
of notification) 1,700,000 shares of com¬

Tacony Uranium

•

Inc., Reno, Nev.

(letter of notification) 2,994,000 shares of com¬
stock (par five cents). Price—10 cents per share

Nov. 22
mon

stock (par $25)

Utah.

Lake City,

share for each
four shares held; rights to expire on Jan. 27.
Price—
$32.50 per share. Proceeds — For expansion program.
Underwriter—Quincy Cass Associates, Los Angeles, Calif.
Silver Pick Uranium,

Underwriter

Texas.

Angeles, Inc.
stock (no par) be¬

ing offered for subscription by common
record Jan. 14, 1955 at rate of one new

Trans-Continental Uranium Corp.
1 (letter of notification) 2,990,000 shares of com¬
mon stock.
Price—At par (10 cents per share). Pro¬
ceeds—For exploration and development costs.
Office
—Western

and development

Office —1406 Life of

North

Oct

Sytro Uranium Mining Co., Inc., Dallas, Texas
Sept. Q (letter of notification) 2,975,000 shares of com¬
mon stock
(par five cents). Price—10 cents per share.
ties.

For

—

Office—94

Co., same city.

Proceeds—For exploration

of common
per share.

exploration and development expenses.
Main St., Smithfield, Utah. Under¬
writer—Lewellen-Bybee, Inc., Washington, D. C.

Proceeds

exercise of options issued to eligible
and key employees of company and its whollysubsidiaries under its Stock Option Plan.

officer

Underwriter—None.

Up Bottling Co. of Los
Dec. 14 filed 19,767 shares of capital

Under¬

Top Notch Uranium & Mining Corp.
(letter of notification) 4,000,000 shares
stock (par two cents). Price — Five cents

Jan. 5

deliverable upon

if Sans Souci Hotel, Inc., Las Vegas, Nev.
Jan. 17 (letter of notification) 300,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For con¬
st? tivtion of additional wing to hotel. Office—3320 South

Seven

development expenses.

Lake City, Utah.

it Swift & Co., Chicago, III.
20 filed 86,800 shares of common

Jersey City, N. J.

Vegas, Nev.

shares of com¬
cents per share.

Jan.

—

Fifth St., Las

exploration and

Office—Newhouse Bldg., Salt
writer—Guss & Mednick

Utah

Salt Lake City,

(letter of notification) 2,500,000
stock (par three cents). Price—10
5

Jan.

New York.

San

Uranium Corp.,

Swedes

Santa Fe, N. M.

exploration expenses, etc.

and

ment

of com¬
share). Proceedi

stock.

mon

300,000 shares of common stock (par 10
Price—$2 per share. Proceeds—For develop¬

cents).

Co., Las Vegas, Nev.
notification) 29,910,000 shares

Superior Uranium
Sept. I (letter of

Sept. 14 filed

•

Underwriter-

Trust Bldg., Baytown, Texas.
Investing Corp., New York.

&

Bank

Utah

shares of common
stock
to employees who
are
not stockholders; then to stockholders; and any
unsubscribed shares after Feb. 4, 1955 to public. Pro¬
ceeds—To restore to working capital amount expended
for acquisition of these securities. Office—105 N. Third
West St., Salt Lake City, Utah.
Underwriter — J. A.
(letter of notification) 4,062
(par $10), to be first offered

1,800,000 shares of com¬
15 cents per share.
mining activities. Office—206 N. Virginia
Underwriter—Stock, Inc., Salt Lake City.

30

Dec.

V.

3

Jan.

Co.f Reno, Nev.

Aug. 3 (letter of notification)
mon stock (par 10 cents).
Price —

T. M. T.

Inc.
shares of class A
one cent). Price—50 cents per share. Pro¬
mining expenses. Office—Citizens National

ceeds—For

Salt Lake City,

of land and to
Underwriter—None.

Uranium Drilling Co.,
(letter of notification) 500,000

Stewart

Mass.

Hardware Co.,

(par one cent) to be
class of stock. Price

—$10.01 per unit. Proceeds—For purchase
construct and equip a luxury hotel.

notification) $150,000 of

—

Salt Lake

Thunderbird Uranium

Nev.

Stardust, Inc., Reno,

Continued from page

—

made.

City, Utah
shares of com¬
mon stock
(par five cents). Price—10 cents per share.
Proceeds—For mining expenses. Office—130 South 13th
East, Salt Lake City, Utah. Underwriter—Peters, Writer

if Silver Reef Uranium Co., Salt Lake
Jan. 17 (letter of notification) 3,000,000

Christensen, Inc., Denver,

&

Colo.

(Jerry), Inc., Washington, D. C.
Jan. 17 (letter of notification) 6,000 shares of class A
common stock.
Price—At par ($50 per share). Proceeds
—For automobile financing activities.
Offices — 217
Southern Bldg., Washington, D. C.; and 833 Pitt St.,
Alexandria, Va. Underwriter—None.

Temple Mountain Uranium Co. »
7 (letter of notification) 3,500,000
mon stock
(par 2V2 cents). Price — 3

Oct.

Proceeds—For

exploration and

Slick Rock Uranium

Development Corp.

notification) 2,900,000 shares of common
cents), including shares for option to
underwriter and prior property owner to be amended
Price—10 cents per share. Proceeds—For development
arvd exploration expenses. Office—Newhouse Hotel, Salt
Lake City, Utah. Underwriter — Van Blerkom & Co.,
same

city.

1,200,000 shares of com¬
mon, stock (par one cent).
Price — 25 cents per share.
Proceeds—For mining expenses. Address—P. O. Box 330,
Edgemont, S. D. Underwriter—Capper & Co., New York.
(letter of notification)

13

Solomon Uranium & Oil Corp.,

Inc.

(letter of notification) 2,000,000 shares of com¬
mon stock
(par one cent). Price — 10 cents per share
Proceeds—For mining expenses. Offices — 506 Beasor,
Oct.

7

Bldg., Salt Lake City, Utah, and 1016 Baltimore Bldg
Kansas City, Mo. Underwriter—E. R. Bell & Co., Kansa?

City, Mo.
■

r't

■

Somerset Telephone Co.,
June

stock.

Norridgewock, Me.

(letter of notification) 2,200 shares of capital
Price—At par ($5 per share). Proceeds—For ex¬

11

pansion and new equipment. Underwriters—E. H Stan¬
ley & Co.. Waterville, Me.; and Clifford J. Murphy Co.
Portland, Me.

it Southeastern Public Service Co. (2/3)
(letter of notification) 28,000 shares of common
stock
(par 10 cents) to be offered in exchange for
Hamilton Gas Corp. capital stock (par $1) on the basis
of 31/2 Southeastern shares for each Hamilton share. This
offer shall terminate when offer shall have been accept¬

Jan. 24

ed

stockholders owning not in excess of
Office—70 Pine St. New
Underwriter—None.

(2/23)

bonds due
bonds and
for construction program.
Underwriter—To be deter¬
mined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; The First Boston Corp.; Kuhn,
Loeb
& Co., Blyth Co., Inc. and Lehman Brothers
(jointly); Salomon Bros. & Hutzler; Kidder, Peabody &
Co.
and
Merrill
Lynch, Pierce, Fenner & Beane
$17,000,000 of first mortgage
Proceeds—To redeem $7,000,000 3%%

1985.

Union Securities Corp., Hemphill, Noyes &
(jointly). Bids—Tentatively ex¬
pected to be received up to 11:30 a.m. (EST) on Feb. 23.

(jointly);
Co.

Drexel & Co.

and

International Sulphur Co.
shares of common

stock (par 10
to be offered for
at the rate of one
and 70,000 sharei
are for account of certain selling stockholders. Price—To
be supplied by amendment. Proceeds—For exploration
and drilling, and payment of bank loans and advances
Underwriter—Vickers Brothers, New York, on a "best ef¬

June

Co., Inc.

development expenses
City, Utah. Un¬

filed

19

Texas

Sodak Uranium & Mining
Jan.

Electric Service Co.

Texas
Jan.

21

York

5, N. Y.

cents), of which 385,000 shares are
nibseription by common stockholders
new share for each 4%
shares held;

Star Uranium Corp., Salt

Lake City, Utah

(letter of notification) 6,000,000 shares of com¬
mon stock (par one cent).
Price—Five cents per share
Proceeds
For exploration and development
costs
Underwriter—Ned J. Bowman Co., Salt Lake City,




Utah

cents); Priee—$2.50 per

of common
share. Proceeds

stockholders. Office—8th St. and 2nd Ave.,
Kensington, Pa. Underwriter—Greenfield & Co.,

New

Offering—Being made today (Jan.

York.

Inc., New

27).

^Universal Petroleum Exploration & Drilling Corp,
Oct. 4 (letter of notification) 300,000 shares of common
stock. Price — At par ($1 per share). Proceeds — For

company
Edwin J.
Dotson, attorney-at-law, Simon Bldg., 230 Fremont Stn
Las Vegas, Nev.
Underwriter—Robert B. Fisher In¬
Boy (drilling equipment which
and working capital. Office—c/o

cost of Driller
rents out),

South Fifth St., Las Vegas,

vestments, 510
Urainbow,

Inc., Salt Lake

Nev.

City, Utah

2,000,000 shares of com¬

Aug. 31 (letter of notification)
mon stock (par two cents).
Price—15

cents per share.

exploration and development expenses.
Office—908 Kearns Bldg., Salt Lake City, Utah. Under¬
writer—Austin B. Smith Brokerage Co., the same city.

Proceeds

For

—

Uranium Discovery

&

Development Co.,

Wallace, Idaho
Nov.

of notification) 1,000,000 shares of capi¬
Price—At par (five cents per share). Pro¬
core drilling program upon two groups of

16 (letter

tal stock.

ceeds—For

Address—Box 709, Wallace, Idaho.
Co., same city.

claims.

Underwriter

—Wallace Brokerage

forts" basis.

Texas
Jan. 17 filed $1,500,000 of 6% series A debentures due
serially from Feb. 1, 1957 to Aug. 1, 1961, and $1,000,000
of 6% series B convertible debentures due serially from
Feb. 1, 1962 to Aug. 1, 1966.
Price—To be supplied by
amendment. Proceds—To construct and operate a manu¬
facturing plant near Orange, Tex., for the purpose of
manufacturing insulation
bpilding products. Under¬
writer—Emerson Cook Co., Palm Beach, Fla.
Texboard, Inc., Dallas,

if Uranium Enterprises, Inc.,
Jan. 20 (letter of notification)

Price—At par ($100 per

stock.

mining expenses.

Denver, Colo.

1,500 shares of common

share). Proceeds—For

Underwriter—None.

v

Inc., Rapid City, S. Dak.
notification) 1,165,000 shares of com¬
Price—At par (25 cents per share). Pro¬

Uranium Royalties,
Dec.
mon

27

(letter of

stock.

etc. Office—626 Sixth St.,
Underwriter—Wendell E. Kindley &

ceeds—For mining expenses,

Rapid City, S. D.
Co., same address.

if Thatcher Glass Manufacturing Co., Inc.
Jan. 17 (letter of notification) 2,500 shares of

common

Price—At market (around $17.87V2 per
share). Proceeds—To Franklin B. Pollock, Chairman of
the Board, who is the selling stockholder.
Underwriter
—None.
Shares to be sold on the New York Stock Ex¬
(par $5).

stock

change.

Uranium Shares,
Dec. 22
mon

Jan.

4

(letter of

For

New York

Co.;

notification) 125,000 shares of common

share. Proceeds—
598 Madison Ave.,
22, N. Y. Underwriter—Jay W. Kaufmann &
city; Milton D. Blauner & Co. and Baruch

(par 10 cents). Price—$2 per
working capital, etc. Office —
same

Brothers & Co.

Inc., Denver,

Colo.

notification) 30,000,000 shares of com¬
Price—At par (one cent per share). Pro¬

(letter of

stock.

ceeds—For mining expenses.

Office—3038 Wyandot St.,

W.

Colo. Underwriters—Kamp & Co., Fred
and Mile High Securities Co., all of Den¬

Denver,

Miller & Co.
ver,

Theatrical Subsidiaries, Inc.
stock

Aug. 2

(par 50

stock

—To selling

filed 455,000

by Hamilton

8,000 shares of Hamilton stock.

if Union Spring & Manufacturing Co.
(letter of notification) 115,000 shares

Jan. 7

Exchange Place, Salt Lake
derwriter—Walter Sondrup, same city.
Office—39

it Slagle

Oct. 8 (letter of
atock (par five

(N. J.)

shares of com¬
cents per share

Colo.

Salt Lake City, Utah
notification) 6,000,000 shares of com¬
mon stock (par one cent).
Price—Five cents per share.
Proceeds—For exploration and development costs. Of¬
fice—420 Felt Building, Salt Lake City, Utah. Under¬
writer—Western Securities Corp., Las Vegas, Nev.
Utaco

Oct.

7

Uranium, Inc.,

(letter of

Volume

Number 5398

181

The Commercial and Financial Chronicle

...

(537).i;77

(

"

'

Zenith Uranium & Mining Corp.

Utah Apex Uranium Co.

Oct.

18

(letter of notification) 3,000,000 shares of capi¬
tal stock (par three cents). Price—Six cents per share.
Proceeds—For exploration and development expenses.
Office—430 Judge Bldg., Salt Lake City, Utah. Under¬

July 12 (letter of notification) 300,000 shares of

writer—Mid-Continent Securities, Inc., same

Boston, Mass.

city.

stock
For

(par one cent).

mining

Price—$1

share.

per

common

Proceeds—

Underwriter—Sheehan &

operations.

Citizens National Trust &
Los Angeles

Co.

Jan.

14

stockholders

Corp., Las Vegas, Nev.
Aug. 20 (letter of notification) 10,000,000 shares of capi¬
tal stock (par 1 cent). Price — Three cents per share.
Proceeds—For exploration and development expenses.
Office—1818 Beverly Way, Las Vegas, Nev. Underwrite
—First Western Securities, same city.

for

each

it Vada Uranium Corp., Ely, Nev.
17 (letter of notification) 2,000,000 shares of com¬
mon stock
(par one cent). Price — 15 cents per share.
Proceeds—For mining expenses.
Office—280 Aultman
St., Ely, Nev. Underwriter—Bristol Securities Co., Fall
River, Mass.
Jan.

surplus.

...

Inc., Wallace, Idaho
Oct. 15 (letter of notification) 1,500,000 shares of com¬
mon stock.
Price—At par (five cents per share). Pro¬
ceeds—For expenses incident to mining operations. Ad¬
dress—P. O. Box 289, Wallace, Idaho. Underwriter—Alden J. Teske, d/b/a Wallace Brokerage Co., Samuels
Hotel, Wallace, Idaho.
Webster

Uranium

Ltd., Toronto,

Mines,

Canada

Dec. 30 (regulation "D") 300,000 shares of common stock

(par 10 cents).
eral

corporate

Securities

Price—$1

share. Proceeds—For gen¬
Underwriter—James Anthony

per

purposes.

five shares

1,200,000 shares, and to authorize $5,000,000 of preferred

filed

1952

12-year

Dec.
sell

30

it

Power Co.

was

bank

repay

(5/31)

loans

for

and

construction

program.

Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Morgan

Stanley & Co.; Union Securities Corp., Equitable Securi¬
ties Corp. and Drexel & Co. (jointly); The First Boston
Corp.; Lehman Brothers; Harriman Ripley & Co. Inc.;
Blyth & Co., Inc. and Kidder, Peabody & Co. (jointly).
Bids—Expected to be received up to 11 a..m. (EST) on
May 31. Registration—Scheduled for May 4.

Jan. 24 it

was reported company plans to issue and sell
200,000 shares of common stock (par $5). Proceeds—
For capital expenditures.
Underwriter—Courts & Co.,
Atlanta, Ga.

Jan.

and

one

amendment.

additional shares

of

Weld

Union

Price—To

stock

be

Co.

&

and

acquisition

of

some

control

financing
this

of

may

result

company

but details

by

are

not yet

Hotel, Boston, Mass.
Alstyne, Noel & Co., New York.

Under¬

Office—Statler

writer—Van

Jan.

19 company sought ICC exemption
tive bidding of up to $345,000,000 of new

from competi¬
securities. Pro¬
ceeds—For
refunding.
Underwriter—Previous negoti¬
ated sales were handled by Kuhn, Loeb & Co., New

Securities

York.
West Coast Pipe Line Co.,

pipeline.

Corp.,

both

of

New

Jan.

Western

Plains

Oil & Gas

'

-May 24 filed 100,000 shares of common stock (par $1).
Price—$4.75 per share. Proceeds—To redeem 1,250 out¬
standing preferred shares ($125,000), to repay bank

loan, etc. ($2,500); for purchase
tional mineral
interests, leases

acquisition of addi¬
and royalties in th«
United States and Canada and for other corporate pur¬
poses.
Office—Glendive, Mont
Underwriter—Irving J.
Rice & Co., St. Paul, Minn. Statement withdrawn.
or

it

was

announced

stockholders

on

Feb.

1

creating

(letter of notification) 500,000 shares of common

stock. Price—At par (50 cents per

mining

expenses.

Wash.

Office

expected early

—

in

sale

Public offering of $2,000,000 bondi
Underwriter — Tellier & Co.,

1955.

Jersey City, N. J.

First Bank Stock
Dec. 21 it

was

922 additional shares

basis of

Corp., Minneapolis, Minn.

announced corporation

plans to offer 361,capital stock to its stockholders

of

share for each eight shares h^ld.

one new

Price—To be determined at time of
offering (stocklWSers meeting will be held Feb. 16 to
approve issue). Pro¬
ceeds—To increase capital structures of affiliated
banks.

Underwriter—Blyth & Co., Inc., New York.

31

Power

it

Corp.

reported company plans to offer to its
stockholders about 232,000 additional shares of common
stock

on

was

l-for-10 basis in May or June

a

writers:

Kidder, Peabody
Pierce, Fenner & Beane.

&

Co.

and

1955. Under¬

Merrill

Lynch,

,!?

reported company may issue and sell late
in 1955 about $10,000,000 of first
mortgage bonds. Under¬
writers

was

To

—

Probable

be

determined

bidders:

by

competitive

bidding.

Halsey,

Stuart & Co. Inc.; Kidder,
Merrill Lynch, Pierce, Fennef &
Beane (jointly); Lehman Brothers and
Blyth & Co., Inc.

Peabody &

Co.

and

Central

Maine Power Co.

3l, W. F. Wyman, President, stated that

Dec.

plans to issue and sell
par

share). Proceeds—For
5905 Phinney Ave., Seattle,

Underwriter—None.

some

additional

company

common

stock,

$10 (probably to stockholders). Proceeds—For

con¬

struction program. Underwriter—May be determined by

competitive bidding. Probable bidders: The First Boston
Corp. and Coffin & Burr, Inc.
(jointly); Harriman
Ripley & Co. Inc.; Blyth & Co., Inc. and Kidder, Peabody & Co. (jointly).

Franklin National
Jan.

Bank

11

Central

Bank of Franklin

Square, N; Y.

to

record

of

to vote

proposal authoriz¬
ing the sale of 171,875 additional shares of capital stock
to
stockholders
on
a
l-for-4
basis
(with a 21-day
standby).
Proceeds—To increase capital and surplus.
were

on

a

of

stockholders

capital stock

of

(par $5)

133,300
at the rate

share for

each 10 shares held as of Jan.
11,
1955; rights to expire on Jan. 28. Unsubscribed shares
(not exceeding 10,000 shares) are to be |irst offered to
employees of the Bank and The Employees' Profit shar¬
one

new

ing and Benefit Plan of the Bank.

Price—$32

Proceeds—To increase capital and surplus.

per

share.

Underwriters

—Blair & Co.

Incorporated; W. C. Langley & Co.; HornWeeks; Bache & Co.; Hayden, Stone & Co.;
Co. Boenning & Co.; and Hallo
well, Sulz¬
berger & Co.
■
[".■
blower

&

Grimm

&

I

-am

General Telephone Co. of California
Dec.

National Bank of Cleveland

offered

additional shares

15

sion

•

Jan. 25 stockholders

Underwriter—McDonald & Co., Cleveland, Ohio.

it Winfield Mining Co., Moab, Utah.

•

an

cumulative

it Western States Copper & Uranium Corp.
Jan. 17

America, Inc. stock.

will

authorized issue of 100,000 shares
preferred stock (no par), of which it is
planned to offer publicly 50,000 shares. UnderwriterWhite, Weld & Co., New York.

Offering—Post¬

Co.

on

of

poned indefinitely.
•

19

vote

to be used to build

York.

and

Corp.

it Calumet & Hecla, Inc.

Underwriters—White, Weld & Co. and Union

Securities

issuance

(jointly); Glore, Forgan & Co.; and The First Boston

Dallas, Tex.

with other funds,

the

$6,000,000 convertible debenture bonds

in connection with the acquisition of Uranium
Mines of

Dec. 31 it

it Baltimore & Ohio RR.

Nov. 20, 1952 filed 1,125,000 shares of common stock (par
50 cents).
Price—To be supplied by amendment. Pro¬

ceeds—Together

of not to exceed

Florida Power Corp.

and

Corp., both of New
Offering—Postponed indefinitely.

York.

reported that

was

Co.;

Consolidated Uranium Mines, Inc.

July 23 stockholders authorized

Dec.

System, Boston, Mass.

S. Robie for $8,000,000,

available.

one

private sales of
$55,000,000 first mortgage bonds to be used to build a
1,030 mile crude oil pipeline. Underwriters — White,
common

it

the

Richard

$50 deben¬
supplied by
Proceeds—From sale of units and 1,125,000
share of stock.

14

from

Rent-A-Car

&

Scanlon

Co.

Florida

15, 1964, and 580,000 shares of common stock

(par 50 cents) to be offered in units of
ture

&

announced

company plans to issue and
$15,000,000 first mortgage bonds due 1985. Proceeds

—To

debentures

6%

~

one new share for each share held.
Price—$42.50 per
share. Proceeds—To increase
capital and surplus. Under¬

on_

$29,000,000

(Colo.)

writers—Bosworth, Sullivan & Co.; Boettcher
Peters, Writer & Christensen, Inc.; and Earl M.

West Coast Pipe Line Co., Dallas, Tex.

20,

Bank of Denver

Jan. 12, the Bank offered its stockholders
of record Jan.
11 the right to subscribe on or
before Feb. 1 for 30,000
additional shares of capital stock
(par $25) on the basis

subject to approval of the stockholders. Underwriters—
Wm. C. Roney & Co., Detroit, Mich., has handled nu¬
merous secondary offerings in the past.

Avis
.

f

of

Nov.

due Dec.

on Feb. 14.
Proceeds—To increase capital and

stock to carry a dividend rate of not exceeding 5%, with
either a $50 or a $100 par value. Both stock issues are

it Atlantic Steel Co., Atlanta, Ga.

Nov.

were

held; rights to expire

share.

per

Colorado National

Corp., New York.

Wenga Copper Mines, Inc., N. Y.
18
(Regulation "D") 900,000 shares of common
stock (par five cents). Price—30 cents per share. Pro¬
ceeds—For general corporate purposes.
Underwriter—
[Willis E. Burnside & Co., New York.

11

i

v

Air-Way Electric Appliance Corp.
Dec. 6 directors approved proposals to increase the au¬
thorized common stock (par $3) from 400,000 shares to

Alabama
Vulcan-Uranium Mines,

Jan.

Underwriter—Blyth & Co., Inc., Los Angeles.

Calif.

Prospective Offerings

>

of record

given the
rights to subscribe for 200,000 additional shares of'new
common stock (par
$10) on the basis of two new shares

Price—$33
Utah Uranium

\Jsd ^

Savings Bank of

.

for

applied to California P. U. Commis¬
authority to issue and sell 200,000 shares of
preferred stock (par $20). Proceeds—To re?ay

4%%

company

bank loans and for expansion program.

Underwriters—

May be Paine, Webber, Jackson & Curtis; Stone & Web¬
Corp.; and Mitchum, Jones & Templeton.

ster Securities

Jan. 20

(letter of notification) 500,000 shares of common
stock (par five cents). Price—20 cents per share. Pro¬
ceeds—For mining expenses.
Office—M. L. C. Bldg.,
P. O. Box

648, Moab, Utah. Underwriter—Security Ura¬
nium Service, K. O. V. O. Bldg., Provo, Utah.
Woodland Oil & Gas

Co., Inc.

Dec. 21

(letter of notification) 299,900 shares of common
10 cents). Price—$1 per share. Proceeds—
For equipment, drilling expenses and working capital.
stock

(par

Office—42

Broadway, New York, N. Y.

Underwriter—

E. M. North Co., Inc., same address.

•

Central

&

ceeds—To

stock

share.

Utah.

Underwriter—To be determined by

(par

one

cent).

Price

—

Three

cents

pel

Office—323

Newhouse

bldg.,

Salt Lake City,
Underwriter—P. G. Christopulos & Co., same city.

23

common

Proceeds

competitive bidding.

Probable bidders: Blyth & Co., Inc.
&
Co.
(jointly) The First Boston

and Smith, Barney
Corp. and Merrill
Lynch, Pierce, Fenner & Beane
(jointly);; Lehman
Brothers and Lazard Freres & Co.
(jointly).
Bids—
Expected on March 1. Registration—Planned for Feb. 2.
I

Wynn Pbarmacal Corp.
Dec.

Dec.

bank loans and loan from insurance
company, and to purchase common shares of subsidiaries.

_

(letter of notification)
stock
—

(par

For

10 cents).

production,

Sept.
sell

29

it

was

reported company plans to issue and
new bonds.
Proceeds—To refund its

$40,000,000 of

3%% bonds and $2,441,000 4%
Underwriter—May be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Blyth & Co., Inc.
outstanding $37,851,000
bonds.

85,000 shares of class B

Price—$2.50

development

per

and

share.
sale

of

company's products, working capital and other corpo¬
purposes.
Office—5119 West Stiles St., Philadel¬
phia, Pa. Underwriter—Charles A. Taggart & Co., same
city.

sell

it

30

was

(5/10)

announced

company plans to issue and
$12,000,000 of first mortgage bonds due 1985. Pro¬

ceeds—To
gram.

retire

bank

loans

Underwriter—To

be

and

for

construction

pro¬

determined

by competitive
Halsey, Stuart & Co. Inc.;
The First Boston Corp.; Lehman
Brothers; Union Securi¬
ties
Corp. and Equitable Securities Corp.
(jointly);
Morgan Stanley & Co.; Kuhn, Loeb & Co.; Shields & Co.
and Salomon Bros. & Hutzler
(jointly); Harriman Ripley
& Co. Inc.; Blyth & Co., Inc. and
Kidder, Peabody & Co.
(jointly). Bids—Expected to be received up to 11 a.m.
(EST) on May 10. Registration—Scheduled for April 13.

bidding. Probable

bidders:

Chesapeake & Ohio Ry.

com¬

Proceeds—For exploration and development ex¬

penses.

Georgia Power Co.

(3/1)

Corp.

Uranium

Mining Corp.
July 21 (letter of notification) 9,996,000 shares of
mon

West

repay

■i

World

South

Jan. 18 company applied to SEC for permission to issue
and sell 600,000 shares of common stock (par $5). Pro¬

•

Chicago, Rock Island & Pacific RR.

Jan.

11, J. D. Farrington, President, announced that the

directors have authorized the issue and sale of not

it

Giddings & Lewis Machines Tool Co.

Jan. 26 it

was

announced stockholders will vote Feb.

15

increasing authorized common stock (par $2) from
400,000 shares (360,000 shares outstanding) to 750,000
shares, in order to have additional shares which would
be available for acquisition of any business, increased
working capital, plant expansion or exchange of shares
in other companies.
Underwriter — Previous financing
handled by Hornblower & Weeks and associates.
on

more

rate

than $65,000,000 of 40-year income
*—To redeem its

000

Wyoming Uranium Corp., Salt Lake City, Utah
Aug. 23 (letter of notification) 9,166,667 shares of com¬
mon stock
(par 1 cent). Price—Three cents per share
Proceeds—For exploration and development expenses.
Underwriter—James E. Reed Co., Salt Lake




City, Utah.

shares).

debentures. Proceeds

outstanding preferred stock (about 640,-

Underwriters—If

by

competitive

bidders may include: Halsey, Stuart

bidding,

& Co. Inc.; Morgan

Stanley & Co.; Lehman Brothers, Lazard Freres & Co.
and

Bear, Stearns & Co. (jointly).

competitive bidding rule

was

it Gulf Cities Gas Corp.
Jan.

17,

D.

L.

Alberty,

Executive Vice-President,

an¬

nounced that the company will have another stock issue
in

the

near

future.

Proceeds—For

expansion.

Under¬

writer—Eisele & King,
handled previous

Libaire, Stout & Co., New York,
financing.

Exemption from the

asked on Jan. 20.

.

«

Continued

on

page

78

78

The Commercial and Financial Chronicle

(538)

i.

Thursday- January 27, 1955

fci)
Continued from page

Jan. 12 it was announced

authorizing

on

latter

March

of

part

capital stock

100,000 additional

of

shares of

Jan.

19

the

first

and

To

be

;
j

Office of the Justice Depart¬
that the government's hold¬

of capital stock (par $1), out of
will be offered for sale early

President,,stated that prelimin-

Corp. plans to

(jointly);

Corp.

Blyth

&

Stuart &

Co. Inc.; Glore, Forgan

v'

*

Pipe Line Corp.

.

& Co. and Goldman,

** *
plans sale of 60,000

Proceeds—For new

Merrill Lynch, Pierce, Fenner & Beane

Bids—Tentatively expected March 15.

Jan.

(jointly).

Wpridng Co.

was

djstrjct have been approved by the
d^^tors and construction will begin immediately. Un¬
derwriter—Kidder, Peabody & Co., New York, under¬

financing.

addition,

be

offered

1,659,200' shares of
for

subscription

700,000

own

the

Majestic Auto Club, Inc..

offer 500,(par fiye' cent®) to, the ipolprist and general

completion of the current offering
}f )00,00Q shares to service station owners and operators.
Office—Room 717, 141 Broadway, New York 6, N. Y.
public shortly after

Machine

Co.,

Syracuse,

stock

is planning to issue

(no

N.

a

new

announced company proposes to offer to

March 1, next, 511,205 addi¬

(par $100) 'on a l-for-5
basis. American ^Telephone & Telegraph Co., its parent,
about 69% of presently ^outstanding shares.

ceeds—To

repay

borrowings.

temporary

Pro¬

Underwriter

The

new

.

Republic

Co.

Inc.

f

of

(par $10)

the basis of

on

•

Boston

Halsey,

Corp.;

Offering-

Jatn.

17/ Keith

were

given the

of America

Price—
sur- ?

(2/28-3/4)

Jan. 18 it was reported company

(Jan, 2(7)

of 150,000 shares of
.

About $6 per share.

Proceeds

authorized

directors

8

(2/16)

Southern Co.

•

000,000 to ' $25,000,000

Corp.; Kuhn, Loeb

.

the company will have to raise more than
of

new

sion

it

5

share.

per

first

of

& Co.;

reported

was

1955).

proximately $200,000,000. Underwriter—For and bonds,
to

be

determined

bidders:

by* competitive

bidding.

Probable

Salomon

17

Dec.

stock

it

was

Gas

420,000 shares of common

(par $5) will soon be offered to public*

To be named later.

Co., publisher of The Boston Post.
man,

Price-

Proceed*—1To The Post Publishing

^Northern Indiana Public Service Co.
Jan. 12, D. H. Mitchell,
company
new

President, announced that the

plans to, raise approximately $12,000,000 of

money

(which

may

be done; through sale of pre-.




the

Bros.

&

Hutzlfer;-

retire

bonds

bank

the

sale -of

(probably
loans

be

and

;

in

for

determined

by

Lynch, Pierce, Fenner & Beane; Equitable Se¬
Glore, Forgan & Co.; Kuhn/Loeb & Co.

(jointly); Kidder,

Peabody"& Qo,]
u

Supply Co.

on

stock

on

approving-a proposal to create
of " preferred

shares

debt, and

from

(Mo.)

announced that stockholders

was

on

1,335,000

may

stock

and

the

March-15

an

issue mf

$5,000,000

oi

increasing the authorized common
shares rto. 2J>QQ,0QQ shares*.. -The
.

raise about $10,000,000 through the sale

$5,000,0001 preferred stock and $5,000,000

finance

bid¬

^

Underwriter—To

Western Auto

of

competitive

purchase

of

140

bonds-to

^retail stores owned by

Gamble-Skogmo,. Inc.

Pierce Fenner & Beane, New York.

&

Co.

(jointly);

Blyth

&

Co.,

Inc.,

Bear,

Western
Nov. 24 it

Lehman Brothers; Morgan

stockholders

"

on

a

l-for-10 basis).

tional

Power Co.

ing—Expected

announced company plans to issue addi¬

common

stock

early

in

1955.

licly

or

11

bids for

Southwestern Gas & Electric Co.
17
sell

it

was

in January.

Lincoln, Neb.

Bonds

con¬

may

be

Offer¬

sold

pub¬

privately, depending on market conditions.-

Westpan Hydrocarbon Co.
Dec.

California Co.

and

Proceeds—For

Underwriters—

Hornbjower & Weeks, William R. Staats & Co. and First

Jan.

-

Underwriters—May be Dean Witter

& Co. and The First Trust Co: of

was

Lynch,

40,000: additional shares of common-stock (the latter to

struction program.

Nov. 12 it

Merrill

announced company plans to issue and

Not expected until Oct. 12.

;

—

Light & Telephone Co., Inc.

was

Bids—Tentatively scheduled for NovrO. ' Begisiration—
^

Underwriter

sell $3,000*000 first mortgage bonds due 1985 and about

Stanley&;£^

body & Co., and Merrill Lynch^Pierce, FOTher ^Beane.

Underwriter—East¬

Dillon & Co., New York.

in

The. First Boston Corp

Underwriter—To

Co.

announced

bonds

Co.. Inc.; Blyth & Co., Inc. and Salomon Bros. & Hutzler;

investment in additional stock of subsidiary companies.

Southern Nevada
Penn

.

-plans

company

Proceeds—To

construction.

company

bank loans and for

Morgan Stanley & Co.; Halsey, Stuart & Co. Inc.

North

pres¬

competitive bidding. Probabje bidders; Halsey, Stuart

stock

$100,000,000

improvement program, which will cost ap¬

■.

over¬

Underwriter—

mortgage

first : mortgage

30Tyear

$7,000,000

Jan. 12 it

that

capital money to aid in carrying out its expan¬

and

an

are

West Texas Utilities Co.

Jan.

bonded

by

(with

White, Weld & Co.

30 it was announced company plans to issue and
sell to ;the public 500,0p0 additional shares of common

determined

common

Virginia Electric & Power Co.

Price-

Dec.

be

.

Nov. 1 it was reported company may issue and sell $20,-

100,000

repay;

•'

stock at the rate of

About 150,000 shares

Price—$9

construction.

new

(11/9)

(par $5). Proceeds—To

offering to

share for each five shares held

and Lehman Brothers

stock.

common

For

an

common

-

Merrill

*'

'

plans registration today

—

Bear,

•

None.

new

$10,000,000 of debentures. Underwriter—Paine,

South Georgia Natural Gas Co.

and

share for each

Feb. 9.

on

18 it was reported company may be planning sale

Wertheim

S. MpHugh, President, announced

Co. Inc.;

(jointly);-

petitive bidding. Probable bidders: Halsey, Stuart & Co.

Underwriter—The First Boston Corpi, New York.

Sheraton Corp.

Brothers

burg, Thalman & Co., Carl M. Loeb, Rhoades & Co. and

Telephone Co.

competitive *

Stuart &

Inc.; Union Securities Corp.; Stone & Webster Securities**

share. Proceeds—To increase capital 'and

per

Lehman

1955.

construc¬

(jointly); White, Weld & Co. and Shields

curities Corp.;
•

bidders:

in

late
new

(jointly).

new

May,

Dec.

?

Spring of 1955. Underwriter—To be, determined by com¬

one new

held; rights to expire

*

expects to sell about

company

To be. determined by

—

ently outstanding.

(par $100).

<

Jan. 25

record

s^ld

Underwriter--^

United-Dye & Chemical Corp.

one

National Bank, Boston

25 stockholders

5 14/15 shares

plus.

$12,000,000- of

bank loans and for

repay

Probable

First

Sept.

(jointly); Smith. Barney &

May, 1955.

or

Rockland-Atlas

$32.50

reported

was

stockholders of additional

Co.; Kuhn, Loeb & Co.; Glore. Forgan & Co.
Expected in April

stock

$10,000,000 to

About $60,000,000 of bonds wil be

Underwriter

& Co.

Underwriter—William

preferred stock

>

com¬

Underwriter—To be determined by competitive
bidding.
Probable bidders:
Harriman Ripley & Co. Inc. and

•

it

Stearns & Co.

reported that company plans to issue and

was

4

*

'

Line Corp.

ding. Probable bidders: The First Boston Corp.,'Laden-

—None.

New York

-

•

It is planned to offer publicly

ADril

or

subscription privilege).

100JQQO shares of

Central

24

tion.

Pope, Inc., Syracuse, N. Y.

rsell

March

Proceeds—To

Y.

block of

and

Walker, President; announced that the

P.

will vote

tional shares of capital stock

owns

-

$30,000,000 30-year first mortgage bonds

value) to finance further expansion

par

in the United States and Canada.
N.

Tom

either

Jan.

shares.

England Telephones & Telegraph Co.

its stockholders of record

•

★ Union Electric Co. of Missouri

by

Underwriter—Shields & Co., New York.

was

4

•

Blyth & Co., Inc. and Union Securities Corp.

company

mon

24

bidding.

Webber, Jackson & Curtis, Boston, Mass.

Aug. 25 it was announced fcotapany plans to

Oct. 19.sit

issue

White, Weld & Co. and Stone & Webster Securities 'Corp.

*

*

of about

V

New

to

stock

*

..

*

later this year (may be done privately).

on

iif Portland's Kenton

000 shares

Inc., New York.

preferred stock.

1,400-mile natural gas

right to subscribe for 37,500 additional shares of capital

Pipe divisfon will enter the plastic

wrote previous public

preferred

stock. Underwriter—Dillon, Read

common

1955 of about $85,000,000.
in

10 shares of

Proceeds—Together with other
a

or

f

borrowings made in 1954 wil require financing during

in

,

apfioupced company's National Tank &
pipe business on a
production basis on or about March 15. Plans fojr 'fi¬
nancing a substantial addition to the company's plaint
it

(par $1)

7, De Alton J. Ridings, President, announced that

Jan.

27

stock

common

In

would

Porter-Cable

/

Lehman Brothers;
Blyth & Co. Inc.; Union Securities Corp.; White,eld &
Co. and Shields & Co. (jointly); Kidder, Peabody & Co.

M and M Wood

border.

stock

Nov. 11 it

(3/15)

stock (par $100).

Haryl-*^

construction program for 1955 and replacement of bank

ma¬

& Co. Inc. (jointly).

bidding. Probable bidders:

petitive

Canadian

Halsey,

Underwriter—To be determined by com¬

construction.

Nov.

Public Service Co. of Oklahoma

reported company

plans

company

$20,000,000v of

'

'February, 1955.

Bids—Expected March 15.

was

reported that

year

Transcontinental Gas. Pipe

Co.; Dominion Securities Corp.; Union Securities Corp.
Offering — Expected to be completed in first half of

The First
Boston Corp. (jointly); Union Securities Corp. and Stone
& Webster Securities Corp. (jointly); Lehman Brothers
and Bear, Stearns & Co. (jointly); Kidder, Peabody &
Co. and Merrill Lynch, Pierce, Fenner & Beane (jointly);

it

(jointly); W. C. Langley'^Co:;

was

this

$15,000,000 of

Underwriter—White, Weld & Co.; Kidder, Peabody &

(jointly); Blyth & Co., Inc. and

Kansas Gas & Electric Co.

12, it
sell

& Co.

May 1, 1956 (convertible into-preferred stock at

the

issue and sell

competitive bidding. Probable bidders:

Kuhn, Loeb & Co. and A. C. Allyn

Jan.
and

Bids—Expected

Inc.

present; stockholders who already
•

mined by

23

Probably

20, C. R. Williams, President, announced that it is

common

stock to its stockholders.

Electric Co- (3/15)

shares of preferred

bidding*

pipeline between Ingancio, Colo., and Sumas, Wash.,

£0fyOOO,OOO of first mortgage bonds due 1985. Proceeds^For construction program. Underwriter — To be deter¬

Sachs & Co.

n

Texas Eastern Transmission Corp.
:

and. Halsey, Stuart &

Co.,

funds, to finance construction of

distribute part of its hold-

reported company plans to

Dec. 23 it was

Dec.

Boston

stock. Price—$70 per unit.

financing by Holly Uranium Corp. has been arranged
be followed by a public offering early in 1955 after
of Holly Uranium Corp.

& Co.

T>

^

re¬

Underwriter—

units of $60 principal amount of notes and

iry

and

competitive

by

First

turity) and 280,000 shares of

Kansas Gas &

Proceeds—To

construction.

planned to offer publicly $16,800,000 of 6% interim notes
due

Holly Corp., New York

Dec.

new

Pacific Northwest

1955.

ngs

The

Inc.

Dec.

025,000 shares outstanding,

vhich Holly

-.1

.

*.

the Alien Property

ro

il..V

Ripley & Co. Inc. Offering—Expected in April

•

ment said it is Anticipated

Sept, a S. B. Harris, Jr.,

©_

May, 1955.

early in March.

Lowell, Mass.

Harvard Brewing Co.,

D/\nk/v4«r

and

sale of $50,000,000

the

refunding mortgage bonds.

determined

Co.

.

authorized

directors

tire bank loans and for

Pressprich & Co., both of New York.

in

nnrJ

and

Inc.;

8c Co

Blyth

*

bidders:

ings of 345,760 shares

On^

•

man

fields. Underwriters—-The First Boston Corp. and

Dec. 31

\

Kidder, Peabody & Co. (jointly); Lehman Brothers;
Merrill Lynch, Pierce, Fenner - & Beane and Union

<

Securities Corp.

multiple line
R. W.

expand activities in the casualty and

To

fine.),

it Pacific Gas & Electric Co.

stockholders during the

Price—To be named later. Proceeds—

four shares held.

/TMA

Co.

Tn/v

9-

D1 -*r4V»

r1^

Merrill Lynch, Pierce, Fenner & Beane.

^

basis of one new share for each

the

on

*

-

petitivebididng. Probable bidders: WJiite, Weld

commpj^stock). Underwriterai—Probably

Jlepufclic

stockholders will vote March ,7

offering to

an

and/or

Central

Insurance Co.

Fire

Hanover

ferred

77

(4/15)

Sinclair Oil Corp. will ask for

384,861 shares of Westpan stock about April 15,

1955, if it has not been able to dispose of these holdings

reported company is planning to issue

$6,000,000 of cumulative preferred stock

it was reported

before that date.

Underwriter—Union Securities Corp.,

New York, underwrote recent

sale of Sinclair's holdings

$100). Proceeds—To prepay bank loans-aadimsecmstruci-^' fOPColoradolnterstate-Gas Co

White, Weld &r Ce., New

(par

tion program;. Underwriters—To be determined by com-

;

Number 5398

181

Volume

.

.

of

the part
sponsoring underwriters.

of

"long-haul"

a

The

on

000,000 of sinking fund debentures

able to an¬

at mid-December was

been

had

issue

the

that

nounce

and the books closed.

sold

H. Hentz Adds to Staff
(Special

which brought out
Central
Railroad's $18,-

group

Illinois

(539)

Chronicle

The Commercial and Financial

.

&

Hentz

Street.

Salle

Mr.

previously with Stein Roe & Farnham.

a

were

bond

a

as

long-term government

a

SOUTHERN

the air is
"■

At

rate the

any

market

issue

in

being

corporate new
indication of
receptive mood

CHICAGO, 111.—Thomas Zimieis now connected with Lea& Co.,

son

Inc., 39 South La Salle

For

NOTICES

the

The experience of Com¬

monwealth Edison's big

debenture

the

situation

mirrored

offering

pretty well.

the
Consumers Power Co.'s $30,000,000
of
new
35-year
first mortgage
bonds. The bidding showed clear¬
along

week

this

But

to

bonds
bond

was

dicated

101.73. Reofferin¬

set at 102.325 for an
yield of 3.14%.

out-of-town
insurance companies came in for
sizable blocks and banks, acting
for pension funds, also displayed
keen interest with the result that
the issue moved out rapidly.

SNCOBPOKAfEP

198tii

Common Dividend and

an

Dividend

Extra

dropped back to
987/s bid 98 offered.

Cents

(85f)

dividend

of

per

One

Company, payable in cash on
1955,

will

doubtless

Motors'

via "rights"
make itself felt

sale

stock

common

close

February

business

of

Checks

will

be

10,

1955.

mately $325,000,000 of new
the

will

underwriters
deal

the

are

Feb.

on

Holders

7.

Feb. 8 are entitled to

record

held

of that date

as

Considering
the stock, it is
of registered

the

of the

This

new

until delivery

shares is accomplished.

shorten

could

the

sail

of

firms who go in for

general

underwriting in the interval.
Rail Debentures

Sold

was

ings,
out

which,

to

as

F.

CRONM1LLER, Jr.

and

President

Secretary

HARVESTER
COMPANY
The Directors

of International Harvest¬

Company have declared quarterly
No. 146 of one dollar and

dividend

preferred stock payable March 1,
1955, to stockholders of record at the
close of business on February 4, 1955.

the

GERARD J.

LIMITED

have called for something




Company

DIVIDENDS

CUMULATIVE PREFERRED

EGER, Secretary

New York, January

33/4%

Dividends aggregating

Company of the

25 V2 cents Per share on the
Cumulative Preferred Stock,

1,200,000

par

been

today

value of $50 per
declared, payable

follows:
To Stockholders of
Date of

lteeordattheC'lose

Amount

Payment

of Business on:

l'A% (62'/j<)

Mar. 15, 1955

Feb. 15, 1955

l'/4%<62'/2e)

June 15, 1955

May 13, 1955

I Va%

Sept. 15, 1955

Aug. 15, 1955

(62'/2f)

A dividend of

share

30V2 cents per share on the
Cumulative Preferred Stock,

on

seventy-five cents (75<)

has today

pany

of Southern Railway Com¬
been

declared out of the

31, 1954, pay¬

fiscal year ended December

The above dividends are pay-

payable February 28, 1955, to
stockholders of record Febru¬

Checks will be mailed
from the Company's office in
Los Angeles, February 28.
5.

able

on

Treasurer

March

1955, to stockholders of
February

15,

record at the close of business on

15, 1955.
An
per

extra

share

mon

dividend of

on

surplus of net profits of the Com¬

for the fiscal

1954,

payable

stockholders
ness

dollar ($1.00)

has today been declared

Railway Company
out of the

one

the 2,596,400 shares of Com¬
par value of Southern

without

Stock

ended December 31,
February 15, 1955, to

yeor

on

of record at the close of busi¬

February 4, 1955.

January 21,1955

J. J. MAHER, Secretary

UTILITIES COMPANY
19, 1955,

January

dividend

U.S. currency was
no

par

that

quarterly

a

of fifty cents per

declared

share in
on

all the

will be outstanding on

pursuant

to

transferable

scription rights issued on January

1955. The dividend is

on

sub¬

close

of

business

35%

4%%

30

all

Secretary

per

share

on

its

Preferred Stock ($30 par)
cents

cents

Common

to

dividends

per

per

share

on

its

Stock ($15 par)

payable March

1, 1955,

stockholders of record February 15,

1955.

January 19, 1955

cents

dividends:

share on its
$1.76 Conv. Preferred Stock ($30 par)
44

February

JAMES A. DUUEA

has declared the

following regular quarterly

10,

5, 1955, to share holders of record at
the

The Board of Directors

January 31,

payable March

SOUTHERN COMPANY
(INCORPORATED)

DIVIDEND NOTICE

February

11,1 955, including shares subscribed
for

THE

value shares of this Company

EDWARD

January 26, 1955

L.

SHUTTS,
President.

The Board of Directors

has de¬

quarterly dividend of
22Vu cents per share on the
clared

a

outstanding shares of common
stock of the Company,
on

payable

March 5, 1955 to holders

of record at the
ness

on

per

2,596,400 shares of Common Stock

without par value

surplus of net profits of the Company for the

4.88% Series.

ary

have

has

of the
following quarterly dividends:
authorized the payment

on

Preferred Stock of Southern Rail¬

shares of
way

share

p.C. HALE,

IOWA SOUTHERN

25, 1955.

DIVIDEND NO. 20

DIVIDEND

NOTICE

NOTICE

DIVIDEND

STOCK

4.08% SERIES

pany

1954 offer¬

expected, turned

Railway

Company

The Board of Directors

INTERNATIONAL

seventy-five cents ($1.75) per share on

written this week also

another of the late

Edison

California

as

er

Montreal

to

CORPORATION

Southern
Southern

4.08% Series;

11, 1955.
Finis

FORSTER, Secretary

OIL

TULSA, OKLAHOMA

DIVIDEND NO. 29

February 11,

(

cent

per

preferred

10.

SUNRAY

CUMULATIVE PREFERRED STOCK

record at the

January 25, 1955.

the 4%

on

stock,
series A, will be paid at the rote
of 26% cents per share on April
1, to shareholders of record

any

March 10, 1955 to

ALUMINIUM

77)

(No.

4.88% SERIES

Dye Corporation,

1955, and expiring
some

of

1955.

On

of

exchanges who par¬

up

shares,

rate

Quarterly dividend No. 136 of
Seventy-five Cents ($.75) per
share has been declared on
the Common Stock of Allied

with the

likely that members

tied

,

declared

Vice

Secretary

quarterly dividend

The

15.

has

cash was directed to be paid at
applicable fraction times $37,
the approximate market value of each common
tional

the

sub¬

ticipate will find a fair portion of
their capital

Directors

further a 3% COMMON STOCK
payable April 28, 1955 at the rate
of
3
common
shares
for
each
100 common
shares held March 24,
1955.
In lieu of frac¬

W. C. KING,

the Common
March 21 to

on
on

shareholders of record February

Pennsylvania

of

1955.

Also

for each

popularity

Secretary

W. D. Bickham,

DIVIDEND

payable

Stock, payable

1955

19,

declared for quarter
ending March 31, 1955 DIVIDEND of ONE and
ONE-HALF (1V2%)
PER CENT or $1.50 per
share on PREFERRED STOCK,
payable April
20, 1955 to shareholders of record April 6, 1955.
Also declared a DIVIDEND of FIFTY CENTS
per share on COMMON STOCK, payable March
1,
1955
to shareholders
of record February
Board

10,

Chemical &

share

cents per

cumulative

of

rights expiring March 7.

4,

a

REFRACTORIES COMPANY
Pittsburgh

up

scribe for one new share
20

capital,

February

business

of

1955.

HARBISON-WALKER

with
handling

sign

who

company

stockholders of record at the

close

declared

W. D.

January

Treasurer

approxi¬

raise

to

to

January 7,
regular quarterly
dividend (No. 61 ) of thirty (30)

The directors, on

March

mailed.

Harry L. IIilyard,

i
"l

DIVIDEND

March 1,

marketwise.
Calculated

payable March 10, 1955,

pany,

Com¬

stockholders of record at the

to

such an

General

projected

the

as

quarterly dividend of
50^ per share on the outstand¬
ing capital stock of this Com¬
a

of

Stock of Tiie American Tobacco

mon

impends,

undertaking

enormous

dollar ($1.00)

share has been de¬

per

the Capital

on

of Directors today

Board

Eighty-five
share and an extra
Dollar ($1.00) per

dividend

regular

close of business

weeks,

few

next

the

25,1955

J. F. McCarthy, Treasurer.
A

stockholders of

General Motors' Stock
For

01

Co., Limited

G.

coupon,

usually is the case when

no.

Bay Mining

sli&rc

brought out at par for

been

3%%

January

No. 176

declared

Stock of this
Company, payable March 14, 1955,
to shareholders of record at the close
of business on February 11, 1955.
clared

its

week,
sponsors decided to dissolve the
syndicate and cut it loose. Sub¬
sequently the debentures which
a

(Canadian)

3, N. T.

debentures a forthnight ago
decided to turn that issue loose to
find its own level.
The offering
proved decidedly slow in

Dividend

NOTICE

A Dividend of one

New York

111 Fifth Avenue

banking

appeal to buyers.
So early on Monday this

INCORPORATED

1955.

and Smelting

year

had

Secretary

dividend

wealth Edison's

had

1955.

ALEXANDER

H.

D.

Hudson

took up Common¬
$50,000,000 of 50-

which

group

the

11,

of business on February

the close

0L

Around

meantime,

the

March

per

The

January 25, 1955
The Other Way
In

on

share payable
14, 1955 to stockholders of record at
fifty cents

dividend of

January 26, 1955.

share have been declared upon the

A number of larger

Broadway, New York 4, N. Y.

OIL COMPANY

declared a quar¬

Directors has

Board of

The

terly

group

by the runner-up,

ing

COLE,
the Board

of

W. J. ROSE, Secretary

instance.

issuer

one-half cents

SOCONY-VACUUM

January 21,

came

paid the
a
price of 101.769 for the
as
3JAs, only 39 cents a
more than
the bid entered

dividend of thirty-seven and
(L37V2) per share payable
11, 1955, to holders of Common
Stock of record February 25, 1955, who
on
that date hold regularly issued Com¬
mon Stock ($1.00 par) of this Company.

payment of a
March

Singer Manufacturing
Company

Dividend

Aregular quarterly dividend of

banking groups
alike as
price and coupon rate in this
successful

The Board of Directors has authorized the

Dated: Januiry 27, 1955.

CHAS. F. BRADLEY, Secretary

/\ forty-five cents ($.45) per share on
the Common capital stock of the Company
issued and outstanding in the hands of the
public has been declared payable March
10, 1955, to the Folders of record at the
close of business February 10, 1955.

thinking very much

The

D. McHENRY,
and Secretary.

One

The

ly that competing
were

Stock
DIVIDEND

*

H.

//

«

i

■

Common

stockholders of rec¬
ord at the close of business
on February 28, 1955.
f

AMEIUCAX GAS

disposed to keep to the

were

sidelines.

Company

Vice President

A!V» ELKCTII1C COMPANY

Common Stock

States Lines

ted

12,

be closed.

not

Chairman

giving

market

Treasury

ground grudgingly but none-theless steadily, sentiment had been
disturbed and large scale inves¬
tors

will

Transfer Books

March

payable

'

declared
regular
quarterly
dividend
of 20
cents per share on the common stock
payable February 28th, 1955, to stock¬
holders of record February
11th, 15-55.

forthnight, with

a

Uni

has

Directors

of

SYLVAN

than

more

cents

on

54

NO.

DIVIDEND

fying alacrity.
-

of 40

share has been declared
the Common Stock of
Southern Natural Gas Com¬
per

INC.

DELAWARE,

OF

Board

The

a

DIVIDEND

& Treasurer

Dividend No. 64

dividend

A

1955 to

NATIONAL SHIRT SHOPS

Street.

the
largest issue brought out in the
period was absorbed with satis¬

JOHN W. BRENNAN, Secretary

.

NOTICES

DIVIDEND

wicz

been re¬

had

it

than

members of the San
Francisco Stock Exchange.

and, as a consequence

cently

Co., 490 Cali¬

F. Swift &

Henry

Common Stock

is affiliated with

Delano

H.

pany,

gave

more

a

week

this

Calif. —Le-

SAN FRANCISCO,
land

Pipe and Foundry Company

United States

Birmingham, Alabama

Chronicle)

(Special to The Financial

to The Financial Chkonicle)

(Special

transfer books will remain open.

The

Joins Leason Staff

March 15 operation,
apparently clearing.

forthcoming

GAS

N AT URAL

F. Swift Co.

Joins Henry

this day declared a

quarterly dividend of seventy-five cents (75Q
per share on the outstanding Common Stock
of this Company, payable March 18, 1955, to
stockholders'of record on February 25, 1955.

COMPANY

fornia Street,

tne Treasury s

ot

part

6%

next, to retire its outstanding
convertible preferred stock.

disposed to

rather generally

anticipate

offering to yield 3.50%. The road
will use the proceeds on March 1,

world

underwriting

the

•With
now

price of 99.14, the debentures
repriced at 100 for public

Y., January 20, 1955

The Board of Directors

South La
Golden was

120

Co.,

Foundry Company

New York, N.

CHICAGO, 111.—George T. Gol¬
has become connected with

Bought from the issuer as 3V2S
for

T
United States Pipe and

den
H.

NOTICES

DIVIDEND

NOTICES

DIVIDEND

Chkonicle)

to The Financial

79

close of busi¬

THE SOUTHERN COMPANY
Serving the Southeast

SYSTEM

through:

Alabama Power Company

Georgia Power Company
Gulf Power Company
Mississippi Power Company

February 7, 1955.

L. H. Jaeger, Treasurer

Southern Services, Inc.

^

60

TJie Commercial

(540)

and Financial

Chronicle...Thursday, January 27, 1955

benefits

government

apparent cost—in

•

So

•

•

Eisenhower

registered

from tbe Nation's

J

^

xl

Capital

has

probably

in that unof¬

success

ficial but real function of

A

Interpretations

seem¬

ingly lower budget — have
warmed the hopes of all.

Washing'
the-Scene

without

.

still

a

tician—which is to fool

M.

■

the

people

the

of

most

poli¬

a

most of

time,

they point out.
)>

•

flmcc

gress and

overwhelming is security spend-

of

members

to

role

government in
society, in his various messages
to Congress of this month.
This clarification comes jfo the*
the

of

■

lines

it stoos going:
stops going
down, changes for overall curtailthent ^government snend«ii^Antdn pr>upmment spendieg'are
in?
thrft
when
i&g JTbjfrf when

the long-run budgetary o.uflook!
and the President's philosdphy
of

Congressional observers think
they can see some of the out¬

'goyerpment. Nevertheless, so

Con-1
^tVioro in fhic r>itv htoth !
others in this city hpth '

clarified

See 1955 Outlook

iO the civilian activities of the

WASHINGTON, D. C.—President
Eisenhower
has
greatly-

it

Civilian-^p/yjiflly: Rising

first

was,

year

dent. That is because Mr.

Eisen^j

Lower, when there was a vigor¬

leadership

conservative

ous

postpone

to

tended

Congress,

in

^major decisions until 1954, by
\he device of delaying decisions
recommendations

and

policies

were

h i 1

w

e

studied by special

Commissions.

all

nearly

to

"breaks"

the

(4) Their immediate cost will
be

remarkable further
Defense

both

parties, and among the "lib¬
eral" and conservative wings of
both

vised upward to $4.5 billion.

to just where
Eisenhower intends going.

Mr.

It

natural

is

as

that conservative

for the current

Department

is

year

with

have

Republicans hesitate to say in

the

public, however, that they see
hope for a balanced budget.
It is equally natural that New
Deal Democrats avoid blazoning

"further
of in

publicly that the President has

bi-jacked their principal stock
in trade, the Welfare State. And
the

leads

President himself

his

following in confusing, in public
-statements, his fiscal goals.

1956

Budget, in the size of

deficit, should be regarded
with large reservations.
Likes Strategems

the

conceal

government's
fiscal position.
roads

Military Cuts End

carried

Key to what President Eisen¬
hower referred to in his budget

although

his
balanced budget
ago

year

one

"twin goals of a

and tax reductions"

tailment

in

the

was

military

as

cur¬

spending

(foreign aid spending being not
substantially).
How vigorous was this policy
was dramatically illustrated
by
reduced

the fact that between the Janu¬

budget message of one year
and the October revision,

ary
.ago

the

estimated

was

diminished by $4 billion.

defense

spending

President Eisenhower

plicitly makes it clear that the
curtailed

of

-era

spending

has

"all-security"
to

come

an

end.

United

of

eliminate

piles of

great

States

security of the

through

an

U. S.

housing bill

takes the Federal National Mort¬

Association borrowing out¬

gage

side the debt

limit, and the Sec¬

retary of the Treasury wrote
intended

letter

to

convey

idea, without so saying,
Treasury guarantee.

a

the

of

a

Mr. Eisenhower also endorses

proliferating trend toward Fed¬
of bank loans,
being used to finance

is

that

paying

In the

case

of

being a mere
the government

agent,
through Farmers Home Admin¬

and procurement will be on the

istration approving, administer¬

rise.

ing, and servicing the loan.

has

Eisenhower

Mr.

asks

for

been

$2.4

billion

actually

of

higher

appropriations for the De¬

«ew

fense

Department.

Continued

gradual reduction in the number
«f

in uniform will be

men

more

than offset by the projected mili¬

tary
and

manpower reserve program,

the

greater pay

fits being requested

as

and bene¬
incentives

to keep men in service.
And

Mr.

he

may

be

trick of

a

President

obvi¬

appears

ously to do, that national income

develop

and there will

circumstances under

no

which the

government's

guaran¬

tee will in the net cost anything

to the Treasury.

Should

a

whilst

it would face

listing its assets,
ouster of its di¬

an

the superintendent

rectors from

Should

banks.

reveal

only

would

be hit

a

corporation

plus signs, it
by the state

its

both

commissioner

corporations

and

the SEC.

There is

no

complete informa¬

total

as

the

President Eisenhower's Budget
and Economic messages are

full

of

the objective that the gov¬
shouldn't

ernment

people

what

themselves;

they

and

for

do
can

that

(3)

the

for

do

the

takes

almost

observer

to

face

(5) About the only chance for

one

a

be

appar¬

(6)

professional

a

match

what

trolled

in one document against what is

said in another.

with

That the Presi¬

that

dent, whilst talking budget bal¬
ancing and
push

June

when

tively

welfare

belatedly

mammoth

the

for

to the

contingent liabilities of the

deficits

it

will

even

come,

At the

time and figura¬

same

the

President

same

lists

make the French Na¬

may

Congress

not

in

a

passing

and may or may not

the

over

the

"Chronicle's"
i

last

Crowell, Weedon Adds
(Special

Under massive government,

what

the

views.)

of

some

and later got action there¬

of

of

to

The

Financial

Chronicle)

LOS ANGELES, Calif.—Olin D.

all

Presi¬

Albright
staff

sufficient time for many people
to reconcile, as it were, assets

of

of

has

650 South

the

been

Crowell,

added

Weedon

to

the

&

Co.,

Spring Street, members

Los

Angeles

Stock

Conservative Republicans de¬

With Francis I. du Pont

jectedly report that Eisenhower

(Special

is still

popular, that widows and
orphans think their savings are
being protected; taxpayers that
they will get a break. Mean¬
while, the

promises

We recommend

further

of

at

LOS
B.

I.

to

The

Hawkins
du

Pont

gueroa

Financial

ANGELES,
is
&

now

Chronicle)

Calif. —Lotis
with

Co., 677

Francis

South Fi-

Street.

,

tioned

of

plan

the market

W. L. MAXSON CORPORATION

addi- >i

CAPITAL STOCK

jectives, and (while not clearly

it)

the

aforemen¬

spending

foreign

CAPITALIZATION: 330,397 shares Capital Stock

out-

This is

a

real

GROWTH Company (Electronics)
•Earnings

slight rise
aid outpay-

in

omy may

a

which

further

be looked for.

Sales

Not Earnings

per share

$3,229,917

$211,364

$0.81

7,453,985

614,012

2.26

1952

15,923,380

526,494

1.82

1953

34,377,128

1,085,502

3.54

37,143,000

1,496.000

4.53

1950

econ¬

At

1954

an¬

other time the President

implied
military or
security spending might have to
stable level of

endure for

as

long

as

praise for their valiant efforts to

extravagance




&

Co. Inc.

•On

an

Increasing number of shares yearly due to stock dividends

Trading Market for Brokers and Dealers

50 years.

Men like Treasury
Secretary
Humphrey, former Budget DL
rector Dodge, and his
successor,
Roland
Hughes, have excited
curtail nonsensical

Carl Marks
FOREIGN

SECURITIES

50 BROAD STREET

TEL:

•

SPECIALISTS

NEW YORK 4, N. Y.

HANOVER 2-0050

TELETYPE NY 1-971

:y<:

Ex¬

change.

with liabilities.

tional welfare and spending ob¬

explaining

re¬

coincide with

own

breath, the

scores

and

irresponsibility

states.

tively in

is

uncon¬

(This column is intended to

on.

enough

fiscal

a

election

large,

flect the "behind the scene" inter¬
pretation from the nation's Capital

figura¬

show,

such programs he proposed
year,

of

tional Assembly look tame.

programs,

learned last

President,

TV

beat

head

1956's

era

sound dollar, means

a

the

Congress

After

the

over,

said

is

the functions of the

on

Hence this $40-biIIion segment
of the budget ceases to be a

a

time

same

intends, i§ laid on the table
for all to see, but there is not

ments.

that

dle the disbursement.

1951

actual

realm

It

or

Broad Ike Program

flirting
"capital

table, for 1956.

tion extant anywhere

and

to

bank, like the Fed¬
eral Government, ignore its lia¬

(2)

be¬

programs,

cause they hope to capture the
Administration in 1957 and han¬

and corporation profits.

Federal Government should not
a

budget" by listing "Federal as¬
sets" among his expenditures, in
one

at

new

Eisenhower projects

for fiscal 1956
in

that

with the old

can

under

peculiar to massive government.

encroach

Finally, the President shows
hint

ing

for

That the President

for

holding down immediate spend¬

schools, roads, pub¬
lic health,
and supplementary
Federal pension payments.
as

small

own

liabilities,, is to assume,

respect

fleecing of people by inflation;

is

such

a

Democrats

motive of their

ently to the Right whilst dealing

that

assume

of

as

soil conservation.

of the

Some

enabling act and

expenditure.

a

from the Left, is a phenomenon

To

"assets" and in

all

loans, the function of the

guarantee

such

ap¬

the steel-plated

no

things.

of

budget.

President's programs ultimately
would entail vast expenditures,

billion, for insur¬

resounding quotations about
(1) the necessity for preserving
a sound dollar and avoiding the

eral

Eisenhower

use

balanced-budget in 1956 will
an economy
boiling with in¬
flation, boosting national income

are

the

$200

guarantee of loans, and

or

these

as

from

run

jside the

dent

completed,

surpluses

to

billion to $300

bilities

Mr. Eisenhower's

bank

accumulation

budget,
will be

corporation.

curement

to

the

spending

substantive

such

as

the

Treasury and the borrowing on
the

The adjustment of military pro¬
so

believed

will always rise,

be

to

in his Budget Message the new

im¬

now

outside

on

is

program

true

a

However, the gov¬
contingent liabilities

such

Furthermore, the President is
now displaying
an unusual af¬
fection
for
strategems
which

The

message

ernment's
are

redoubt¬

so

Harry F. Byrd

as

unable to pull such

listing out.

ance

Ike

Senator

a

has been

the

*io

Even

government.
able

This suggests that the

an

initial

now re¬

cut" the President talked

The

characteristically content

"What do you suppose it is Pumpernickel has on the
boss?"

spending, the prospective deficit

parties,

in

small.

proach is to

shoe to get the foot in the door.
He is

curtailment after January of $4
billion

and

fare programs will pass.

$2.9 billion, and,

pretty general agreement among

State

(3) Nevertheless, some poten¬
tially expensive long-range wel¬

1955 Budget Message assumed a

the

Welfare

ing the southern Democrats.

of

noted in this connection that the

deficit of only

tough barrier to the

a

expanding

It might be

the favorable side.

disheartened

too

are

impose

Mr. Eisenhower has avoided ril¬

politics and revenue will be on

despite

Furthermore, there is now

,

publicans

Asr htV up, the 1956 Budget
Messag^ "appears to assume all
or

by
the
in what

they think is their party's best
interests, for conservative Re¬

proyisipq jjor them in his budget.

I

will be

passes

entirely
leadership

Democratic

has evaded making

dent

in effect/^thei
"active" year of the Presi¬

Last

Whatever

(2)

determined(

IbflMEJflg/ Although Mr.
a year ago, ANEW
pY getting the.
Eiseufiowef hatr backed a score
language of these formal'dpcu-i
or. more pfriew welfare proments against perf'oiMnce by
(tracts inviTOftg rising Federal
outlays, jM£apd large the Presi¬
the President in 1954. - ^ *>
j
-

1955's

many years.

qpnceaf^J^Jg^^vilian spend-

ihiayeal' withj f ing.is.on

the President said

for

little beyond.

ness

1^56 Bucfg^U^pSsage artfully

professional politicians, rh owonly by c^jp^aring what]

ever,

outlook
a

dent has proposed enough busi¬
to keep Congress busy for

although the

Fi.

the

(1) Only a small part of the
President's welfare program can
in any case pass, for the Presi¬

thi|wmyed.

!

of

session, and

LERNER & CO.
10 Post Office

Square, Boston, Mass.

Telephone HUbbard 2-1990

Teletype BS-69

r

^