Full text of Commercial and Financial Chronicle : January 29, 1953, Vol. 177, No. 5190

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WHS®*
ESTABLISHED 1839

30 «53

JAN

Reg. U. S. Pat. Office

Price 40 Cents

7, N. Y., Thursday, January 29, 1953

New York

Number 5190

Volume 177

Copy

a

7:

EDITORIAL

We See It

As

By PAUL W. McCRACKEN*

University of Michigan

>

The
a

Administration has been in office only

new

little

than

more

a

week, but

commentators and others

many

By OltVAL W. ADAMS*

Prof. McCracken pictures prospects

for current year as
generally good,with an increase in production of about
$15 billion more than in 1952. Looks for proportionate in¬
crease in consumer spending, though we are close to peak

professional

already busy assess¬

are

These analyses
of necessity almost

ing, its quality and its promise.
these

and

appraisals

are

Conditions,

Professor of Business

Executive Vice-President

new

buying. Discusses "coming recession" and
depends on: (1) future tax policy; (2)
marketing efforts; (3) public works spending, and
(4) banking expansion.

in government

wholly political in their nature. A great deal has
been heard of the

new

political "ineptitude" of the

closed your books on a pretty
Earnings even after taxes were generally
well maintained, and were for the average bank slightly
above last year. This reflected three developments:
(1) The demand for bank credit
was brisk but not excessive, with the
Most of you 28 days ago

Administration has made, particularly in its rela¬
tions with

good

Congress. All this that has been taking

Capitol Hill either by design or by its
very nature has been damaging to the Republican
regime and to the new President, so it is said.
Designing Democrats have been carefully and
shrewdly using it to build a basis for future at¬
place

on

year.

result

that

pouches

note

Moreover, the typical loan b,y
end was being negotiated

(2)

tacks, the story continues.

the

doubtless

is

There

a

modicum

of

truth

in

in

crease

aside

/

of

as

year

of

some

or

one

those most

some

We

are

here to consider

PICTURES

X

or

borrowers,

than a mat¬

48

page

by Dr. McCracken before the National Credit
the American Bankers Association, Chicago, 111.,

address

♦An

of

Orval W. Adams

IN

THIS ISSUE

on

Then

came

the principles

extension

that

of

such

the

on

conditions

pre¬

of honest labor was evidenced by the use
Continued

Con¬

trained

credit

the "new order." Our departure from

52

on

page

48

by Mr. Adams before the National Credit Conference
of the American Bankers Association, Chicago, 111., Jan. 28, 1953.
♦An address

Jan.

28, 1953.

Candid shots taken at the 27th Annual Dinner of the
Association at the Hotel Biltmore, New York City,
29, 30, 31 and 32,

—

York Security Dealers

the

premise
vailed.

importantly determine the success
on

i

The seniors among us were

in

and competent

Continued

of his efforts.

the reward

Sound credit

generally—you all realize very well that

these considerations

major

a

ing of credit. Our country was built
on principles of highly ethical public
conduct—policies wished onto gov¬
ernment by the inherited and firmly
held belief of our people that work
was
honorable, the worker worthy
of his hire—and entitled to retain

generally, there¬
pretty good reading to

fortune telling.

about

knowledge

management

ference

page

curiosity

succeed" is

"Incentive to

question we are beginning to ask ourselves.

idle

analysis,

years

DEALERS

of

ter

a

factor to be considered in the grant¬

the average bank.

banker, this "forecasting" is more

For the

directly involved. The New Dealers for

on

the

now

presages

in governmental poli¬
cies affecting the granting of credit.
I view that election as a protest
transcending partisan politics.

stockholders. What about 1953? That
is

several individuals among

Continued

made

fore,

which

election

basic change

in

increase

modest

!
i

specifically the fundamentals

recent

Year-end reports
McCracken

W.

Paul

made most effective use of just such
material as this to discredit the Republican party
for a time seemingly beyond repair. It is to be
hoped that lessons have been duly learned from
what has been taking place, and in the future
long

a

net after taxes for

.

underlying the granting of sound credit. We should not
indulge in finespun theories or academic cant. This is
both a sober and hopeful gathering pinpointed by the

higher interest rate than a
reflecting the general

meant

ings

sudden pol-;.

a

Predicts bankers' advice again
places and calls for return
of gold standard.

firming up of rates during the year.
(3) Though'some costs were up,
prices generally were fairly stable
so
that the increased/current earn¬

provided certain types of politicians in the Demo¬
cratic party (and also in some instances in the
left wing of the President's own party) with
ammunition they highly value and intend to use
as occasion presents itself.
It would appear that
much of these ills might have been avoided with
better planning and better approaches on the part

I
I

private debts;

ago,

year

no

■

4

will receive attention in high

the basis of about a quarter of a

per cent

and the matter is not to be brushed
importance. There can be no ques¬
tion but that the events of the past week have
these accounts,

r

icy reversal is not practical, and decries tremendous in-

'

on

Warns

government spending and taxation.

contained

billion more loans than at
beginning of the year.

$4 to $5
the

of government mismanagement,
situation, prominent

public of control of both government and industry. Calls
attention to problems of U. S. Treasury,, and says nation
must decide in next four years what is the optimum in

.

staff, and of the "bad start" that the

years

Administration faces desperate

Mid-western banker lists forces which tended to deprive

concludes much

President's

First National Bank of Salt Lake City

v

Asserting after 20

New

Jan. 16, appear on pages

State and

in

WESTERN

U. S. Government,
State and

Municipal

Securities
telephone:

STATE

Pacific Coast &

AND

Municipal

MUNICIPAL
Bonds

Hawaiian Securities

BONDS

HAuover 2-3700
Direct Private

Wires
Bend

Chemical
Dean Witter

BANK & TRUST

14 Wall

COMPANY
MENT
BOND DEPARTMENT

Co.

&

THE NATIONAL CITY BANK

ESTABLISHED

Street, New York, N. Y.

Members of Principal

OF NEW YORK

Commodity

and Security Exchanges
San Francisco

Los Angeles •

•

Boston

•

1915

Principal Exchanges
BROADWAY • NEW YORK CITY

Department

THE

CHASE

Members of All
50

ja

r„ N. Y,
50 BROAD ST., N.Y\'Ar

!l. A. H0GLE & CO.

Chicago

Bond Dept.

Honolulu

Teletype: NY 1-708

Denver
Spokane

Salt Lake City
Los Angeles
and 10 other Western

NATIONAL BANK
Of THE CITY OF NEW YORK

Cities

Britalta Petroleum

STOCK and BOND

ESTABLISHED

BROKERAGE SERVICE

Members New

Suu Life Assurance

1832

York Stock Exchange

Canada Oil

i

American Stock Exchange

Commodity Exchange, Inc.

for Banks,

CANADIAN

T. L. WATSON & CO.

Brokers and Dealers

Land, Ltd.

Central Maine

BONDS & STOCKS

Power Co.
COMMON

Net

New York Markets Maintained

To Dealers,

Analysis

Brokers and Banks

upon

request

<S>
50 Broadway,

Hardy & Co.
Members Hew York Stock Exchange
Members American

30 Broad St.
Tel. DIgby 4-7800

New York 4, N. Y.

Telephone WHitehall 4-6500
Teletype NY 1-1843

Stock Exchange

❖

Tele. NY 1-733




DEPARTMENT

GqoDbody

&

Co.

ESTABLISHED 1891
MEMBERS NEW YORK STOCK

New York 4
bridgeport

CANADIAN

perth amboy

EXCH.

115 BROADWAY

CHICAGO

40 Exchange Place, New

York

N.Y,

IRA HAUPT & CO.
Members

and

New

Teletype NY 1-702-3

WHitehall 4-8161

York

Stock Exchange

other Principal Exchanges

111 Broadway,
WOrth 4-6000

1 NORTH LA SALLE ST.

NEW YORK

DortmioH Securities
Grporattott

Boston

N. y> 6

Teletype NY 1-2768

Telephone: Enterprise

1820

&

2

The Commercial and Financial Chronicle

(462)

WE

The

and

POSITION
IN

TRADE

Security I Like Best

Copeland Refrigeration
Eastern Utilities Assoc.

participate and give their

&

Conv.

Common

Electrol Inc.

they

are

N.

be regarded,

to

LEONARD

New

Corp.

as an

offer

York

v

v^o,™

0

mpnnW

Stromberg Carlson, Pfd.

has

Taylor Oil & Gas

the
tne

to

rrnmman

^he
ine

Navv
xxavy.

Air

fhp

tn

namA

business
dus

friendship
of
Republic
and

Western Natural Gas

the

Common & Pfd.

Air

Force

necessarily

re¬

in

so

the

of

important

po¬

Republic
in

of

oi

models of
ing

New York Stock

Exchange

Tel.

NEW

REctor

and

air

YORK

5

2-7815

at

selves

and

s
with

-

credited^ \v'tfc

som® 60,
of

Bassett Furniture Industries

p

Commonwealth Natural Gas
Dan River Mills

old
lhe old

hour

an

STRADER,TAYLOR & CO.,! nc.
Lynchburg, Va.

ipt

of

fighter^

the

milp

an

the

over

In

an

last

three

jet, a boU-miie an noui
radius of

a

itc
Its.

vnrin.Kvarious-

armament

the

was

Knur" ipf

over

nlane

jet piane

1,200 miles,
power

rnmhinntinnc
combinations

of
01

simulfiring
of 32 five-inch
aerial rockets, 6 machine-guns or
two 1,000-lb.
bombs or napalm,
incidentally, they can also carry
"baby" atomic bombs. A new verincluding

the

taneous

VIRGINIA—WEST VIRGINIA
NORTH and SOUTH

sion of the F-84,

called Thunderstreak, has recently been brought

CAROLINA

out

which

erful

MUNICIPAL BONDS

CRAIGIE&CO.
RICHMOND, VIRGINIA

features

more

pow-

with

pared

be

to

employees.

Force

program: is

Republic

Re-

other

aircraft
to

seems

tractively

version

naisance

of

the

camera

F-84

priced
as a

be

and

stocks,

because

nose

1856

H. Hentz & Co.

wires to

our

branch

offices

General Aniline &
Film "A"
Missouri Pacific R. R.
Old

market wise,

Missouri Pacific R. R.
Serial

RA

LEVY

150

Ivfo efrning?
ferred

>

rjse

during

d

times

also

can

to

be

sumed

BALTIMORE TRANSIT

COMPANY
Recapitalization Plan

earnings

as

,

investigation/
Finally
that

road's

own

fleers
been

|^H|||Mjj|^K

the

Teletype
NY 1-2976

altered

Commonwealth
last

occurred

uccu.rrea

last

ahanJnn

granted

Oil

miipc

enmp

Company

per-

Common Stock

aL
betore taxes. Also,

cin^non1

w

track wl11 net some

casb as scraPWorking capital at the end of
.'October_was $765,000. One million

Bought—Sold—Quoted

dollars is considered the minimum
sa^sfactory amount for the road,
^h113' *be $400,000 will again bring
road's current position to a

of-

buying
in

4, N. Y.

„harp anrmallv hoforp tavdc

have

stock

50 Brbad Street

per

M

if SEC reports
show

tn

care-

fui

J. V. MANGANARO CO.

9^H :™Isslon t0 ar " " some 60 miles
^ non-profitable line. This abandonment should save $0.34

i

Request

on

Telephone
HA 2-3878/9 '80

^

Commission

minion

then the stock

deserves

in

record high.

new

develoomert
u
Tu
r

rnerce

re-

4

Memo

week when the Interstate Com-

'

soon

.u

New York T
Tel. NY 1-1932

aecom-

o

•

■

like-:

are

Security Dealers Attn.

Perhaps the most important sin-

dividends, de-

favorable

7-

Y.

N.

Broadway

New Y'ork

*
Oppenheimer & Co.,
™ew *ork City
^

®r.® aboat
its

%'s

Tel. DIgby 9-1550

11

* artner,

sharply, and if

5

CiKRSTEX & FRENKHL

major supplier to

plish, especially
1953 may reach a

.

r»

Common

it

^

Prospectus

on

request

^ comfortable level,

the open mar-

Illinois Terminal Railroad

com-

dustry expansion in the road's ter-

stations

to enable

.

Established

Mobile, Ala.
Direct

at-

most

m0n, selling at 7%
on the New ritory.
Intelligence York Stock Exchange, is such a
But perhaps as important would
to assay bomb damage after raids, stock.
be the continuing absence of nonas
well as for other uses.
The
The company operates some 400
recurring
misfortunes
which
XF-91
experimental
fighter miles of track in St. Louis and
plagued the road since 1951-. They
motor-powered by- turbo-jet en- southern Illinois. Additional rev- included several
local strikes and
gines and four auxiliary rocket enues come from a terminal near
high waters on the Mississippi,
motors
has already
been flown downtown St. Louis and the Mc-, which have
hindered normal opersuccessfully and, furthermore, the Kinley toll bridge which spans the ations.

in the

NY 1-1557

Orleans, La. - Birmingham, Ala.

the Air Force, its shares are qualified for "The Security I Like.

slow-

not

*

the

Exchange
Exchange

St., New York 4, N. Y.

HAnover 2-0700

New

fighter planes in the free world Best" rating. What Boeing, Lockand contrary to recent reports the heed and Grumman have done

iv

Stock

it will

years,

ket, then the
Leon
Other favorable developments
fighter bombers and interceptors, security becomes unusually inter- are additional rolling equipment,
Republic will produce large quan- esting as a means of capital ap- a new roadway on the McKinley
tities of the RF-84 a photo reconpreciation.
•
bridge and new traffic from inwhich contains 10

RH 83 & 84

Telephone 3-9137

a

engine
and
swept-back
In addition to producing

wings.

■F. W.-

25 Broad

Members

be in a position this year to claim
that it "has become of age." Corn-

Republic's staff is producjng the iargest number of jet

leL

Stock

York

American

years

ample line of bank

my

cently a high g°vernment official is regarded

Air

New

Members

improve-

opinion, because of the
remarkably outstanding performance which the company has made

ing down nor is it being per, mitted to lag as a whole. Produc-

F-84 Thunder-

packing terrific destructive

Specialists in

Members

posi-

credit.

machine-

47 the inst 4UU m
4/, .tne first 400-mile

army

fi^n

p

with
LY 77

P
r

forerunner

fn
in

I

believed

war.

ri<The

Life Insurance Co. of Va.

Bell System Teletype:

steady

Members, New York Stock Exchange
December, 1945, which was the
"
and American Stock Exchange
greatest number of domestic sin- Illinois Terminal Railroad
gle-engine combat planes of any
A railroad stock
selling near its to working capital/ have
one type produced during this peall time low is rare these
days. If the picture.

Camp Manufacturing

Since 1932

ment

shown

and it has

stated that
-

jn
remainderto on
loss
ine

rounds

are

has

capital

working

RA's within the last few

than

more

22,000

some

credited
c

were
we

there

present

bom

tion

owned

Republic built 15,329
Thunderbolts from 1941 through
ing the

an

own PlanF During World War II,
^public employed some 16,000
workers
at
Farmingdale
but at

ammunition in addition to
having dropped 132,000 tons of
bombs in over 546,000 sorties dur-

American Furniture

played

$30 million and is

of

gun

Trading Interest In

TWX

g

were

-irr

inh

sb

a

small

million

135

LD 39

pnrlipgt

Tt«

Its earliest 30b

throwing

tne

ground,

have

building wings and mobile training units although Servel, a major
subcontractor
in Indiana,
prob-

■

havmg destroyed over 7,0'00
emy Plane3» about one-half

American Stock Exchange

BROADWAY,

and

st

in

Thmiderhnlt<?
Thundei bolts

Members

Steiner,Rouse&Co.

time, is represented by the build-

company's

^^1 ^lT?tjrf a^ Produces

used

gets

'

.

.

to escort bomb

was

120

5

World War II.

was

plastics

alu-

and

outright. Its plant at Port Washington is leased and is used for

N. Leonard Jarvis

d

company

steel

of

ing of stress analyses and physical
structure
laboratories.
The

cess

mili¬

aircraft.
Since compleon

•

in

ways

part. The main plant
Farmingdale is estimated to
have a replacement value in ex-

tary

McDonnell &fo.

as

period since World War II.
it is thought that the company

any

may well exceed $6 a
welding,-new methods share even after allowing for the
of setting up jigs and fixtures,- 10% stock dividend which was dethus cutting major tooling costs, clared last Noyember to supple-

manufac¬

ture

Since 1917

numbers and in

poundage is running as large

important

the

and

Rights & Scrip

tion currently in

at

develop ment

Specialists in

Bought—Sold—Quoted

=

automatic

minum,

has

held

Teletype NY 1-583

Levy, Partner, Oppenheimer &
Co., New York City. (P. 2)

it has been in-

as

Louisiana Securities

Leon

top rank in its field. Advances in earnings

substitution

which

sition

Exchange

120 Broadway, New York 5
BArclay 7-5660

in

in a

view

Associate Member

Stock

must

and

1920

—

items in

ally close one

Corporation

'

down

cutting

Alabama &

Leonard

of shipping and other ment total cash dividends of $1.25
production research have a share a year. A substantial part
fortified Republic's position in the of profits are plowed back into
industry.
The use of plastics is the business, mostly for research
encouraged and either in their and
development
but
also for
use as production tools or
in the equipment which, at the present

unusu¬

an

in

forefront

N.

public has amply proved not only will show sales for 1952 in the
to the Air Force but to our friends neighborhood of $400 million.
a11 over the world that ** rates After taxes, on the basis of 75%,

new

is

New York Hanseatic

the

—

Illinois Terminal Railroad

nor

its
production
tempo,
Complex jets are essentially the
^es^.
engineering skill can
produce. In this connection, Re-

i

mi

fhj

be,

to

Thursday, January 29, 1953

Selections

Aviation

Jarvis, Partner, Hayden, Stone
& Co., New York City. (P. 2) '

creasing

City

Republic Aviation

Schering Corp.

intended

production costs

Members, New York Stock Exchange

Smelters Development

not

are

Republic

/

■

.

Participants and

Their

particular security.

a

1

sell the securities discussed.)

to

in

JARVIS

Ivt " v"Y*c7"i

u

at

Puget Sound Power & Light

American

'

'

Partner, Hayden, Stone & Co.,

Metal & Thermit

Established

for favoring

(The articles contained in this forum

East Tennessee Natural Gas

Polaroid

reasons

.

This Week's

,

Forum

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

.

has contracts to develop. Mississippi."
*
;
. k
:•
As. the result of. the gboye facplanes which, for the time!
During
1951
and
1952 when tors, earnings for the last half of
being, have been designated as m0st railroads' earnings soared, 1952 have been
about 40% above
XF-103
and
XF-105,
and
has Illinois Terminal's reached their the 1951
months. This

Gordon Graves & Co.
30

Broad

Street, New York 4

Teletype

Telephone

NY

WHitehall 3-2810

410 Pan American Bank

1-809

Bldg.

Miami 32, Florida

company

,

other

Members
York

New

American
York

New

Stock

Chicago,

Board

,

Exchange

Exchange,

Orleans
And

Exchange

Cotton

Commodity

New

Exchange

Stock

of

Cotton

are

still

in

the

»

other Exchanges

Exchange Rldg.

NEW YORK 4, N. Y.
CHICAGO

DETROIT

PITTSBURGH

"

GENEVA, SWITZERLAND




levels

since"

1940.

stage.

potential radius of action whereN. Y. Cotton

lowest

Thunderstreaks

Trade

ever

aerial

tankers

is

secret

can

used.

It

initiated

that

safely be and

a

in

1948, tight-finances
heavy capital improvement

program
no

caused directors

to pass
But since

Republic, the dividend last June.
other aircraft manu- then,
several
important events,
facturers,
is
also
working
on which should cause substantial imguided missiles. Republic has been provement both earnings-wise and

along

with

Over-the-Counter

trend should

top

They
Thundei jets
and. earned $0.92
and
an
estimated
now
coming off. $0.95 respectively for those years. •
the
production
line
are
all
Although these reduced earnings
equipped
for
aerial
refueling still cover the road's $0.20 quar-,
which considerably extends their terly dividend, which had been
seciet

Inc.

Exchange

which

others

continue.
and

a

Aided

new

by

higher rates

warehouse

scheduled

for

completion this May, 1953,
earnings should be well above last
year's levels. The combination of
higher
earnings
and
improved
working capital should result in
the resumption of dividends,

Capitalization
minal

is

simple.

of

Illinois

It

shares."

National Quotation Bureau
Incorporated

Ter-

consists

Established 1913

of

$11,000,000 of first 4s, $3 million
equipment obligations'and 500 000
common

Quotation Services
for 40 Years

46 Front Street
CHICAGO

New York 4, N.Yj
SAN

FRANCISCO

Number 5190

Volume 177

The

The Commercial and Financial Chronicle

.

Capital Investment Ontlook

INDEX

By DEXTER MERRIAM KEEZER*
V

'*

McGraw-Hill
•'

Publishing: Co., Inc.

'

>

■

•

■

'

,

j

'

1

•

'

1953—Paul W.

page

*

*

■

McCracken

AW COMPANY

Cover

:

■

.

Yesterday, Today and Tomorrow—Orval W. Adams—

Asserting outlook for continued high level investment in

new

plant and equipment by American industry is

over

good

very

'

1

•

•

/Economic Picture for

•

.

■'

.

llCHTtnSTEl

B. S.

Articles and News

Directory Department Of Economics

The Capital Investment Outlook—Dexter M. Keezer_

THE QUIET MAN

—Cover

is

3

__

—

modernization trend to foster

good

as

;r>1953 Dilemmas—Roger W. Babson————

j.y

,wv>Vj The

the

fact

9

Investor Looks at 1953—S. B. Lurie_-„______

Economic

business",

American

that

gave

cash!

Obsolete Securities Dept.
99

10

WALL

STREET, NEW YORK

Telephone: WHitehall

large scale capital expenditure.

I shall deal with the outlook for

our

4

Vital Aspects of Gold Price—Harold King—

and looks to

omen,

our

His junk and

4

him

capital outlays, j Says needed capital will be avail¬
able, coming largely from retained corporate earnings and
increased depreciation allowances. Finds prospects of balanced
Budget and of tax relief

Bus Business—Ira U. Cobleigh__,___^

;

let up in

Federal

shouting

praises. We took

two, Dr. Keezer cites surveys by Department of
Commerce and McGraw-Hill Publishing Company indicating
next year or

no

3

(463)

Outlook

for

Equities—Bradbury K. Thurlow

4-6551

10

Major Issues of 1953—Charles B.J Shtiman

11

investment by American plans almost no let-down from,
No Immediate Rise in Interest Rates in Offing—Marcus Nadler 12
business only over the next year the present record-breaking rate
or
two and I shall skimp on the of capital expenditure has since
Look for Higher Interest Rates—Hubert F. Atwater
12
analysis of the- been confirmed,.through a .more
.interplay be-. comprehensive survey by the Fed-" - $ Banks Should Build Up Their Net Worth—John J. Rowe____ 13
tween
capital eral
Department of Commerce,
Eisenhower Regime's Policy for Defeating Communism
in ves t m e n t which is incorporated in its most
;—Hon. John F. Dulles
14
and the oper¬ valuable study of "Markets After

capital

-

Cinerama, Inc.

'

Great American

—

ation

the

of

gen¬

economy

me

Defense Expansion." The Com¬

erally, which

closes

is

new

essential

to

thorough¬

a

going treat¬
of

ment

my

The

for

outlook
continu¬

a

ation of
1

-

new

.

n-

plant and

equipment by "American industry;
is very good indeed. And if one
assumes

we

shall

have

industry

the

and

for

expenditures

equipment which
to make

plans

Investment—Maurice
A Balance

only

are

Moes

Sheet of America's

14

-

—_

Strength—L. L. Colbert

Gulf

15

The Mutual

slightly less than those of last
which hit an all-time high
$26.9 billion per year. A study
of a
smaller
segment of indus¬

Fund—The

Investment

Modern

—Samuel M. Gordon—

Haile

16

._

.

wise

indicated,

try

McGraw-Hill
are

have previous
that there

as

as

Prospectus

F. Murray 18

Market for Mortgages—Roger

a

investment

at

capi¬

carry on

level

a

not

Year of Decislon-r^Warrcn Lee Pierson.

A

a

*!

r

* 7

<*•

,

.

.

The

Business

W; W. Townsend_,

jf.

r

Outlook—A

»

'•

••

H

-

61

Broadway, New York 6

x

sjt

»!«

...

*

r

Incorporated"

23

__

_

'

'

Coming

Depression
j,

'

•

BO 9-5133

#
'

i

\

s

'

.

T^(Statements of businessmen and bankers on the 1953 outlook
Zr'|;Which could not be Accommodated in our Annual Review

r

available

and

issue of January

incentive .to,

the

J

*

Direct. Wires

.

.

_

thing to carry ' them to ah conclu--'
4
To do that the money must

Teletype NY 1-3370

t

/'Business and Finance Speaks After,Turn of the Year"

sion.*
be

request

J.F. Reilly&Co.

Strategic Factors and Investment Analysis—Harold C. Bailey 22

Capital Will Be Available

quite willing to make—it becomes
eveh better than-:.that; it is ex¬
cellent.
"7

on

20

—

t

Philadelphia
6

Los Angeles'

•

San

of American in¬ spend it must not be impaired, v
Study of Federal Home Financing Essential, says
23
Hoiman D. Pettibone___r__,
dustry have plans for investment When, however, one turns to this,
in : new
phase of the outlook I still find* it
: a
plant 'and
equipment
:
II. Frederick Hagemann Advocates Gold Convertibility-.—— 24
very good.
Right now; corporate
which, if carried out as scheduled,
••;;'V/
•/ ;...;
•
•. /;•••:
•
- j
.M
will sustain a high level of ac¬ profits after taxes, the principal
j Mutual Fund Values Increase, according to Henry Long Index. 47
tivity in this field through the source of funds for the purchase
coming year and perhaps well be^ of new plant and equipment and
'
: • >
yond. The chances that they will the principal inspiration for such .r
Regular Features ■
have- the funds to carry out the purchases, are running at a rate.
plans, already good, have, recently of close to $18 billion per. year: ; ;.i As We See It (Editorial)^-—!-—---j-Cover
The

Mines

17

_

"

Pension Funds

great deal lower for several years
ahead. •'
:.
A
;;

and

Olin Fisher—____

surveys,

already plans to

tal

Investment Dicta—Clyde

Of course, it is one thing to have
courageous fiscal management in
Washington over' the next year or plans to make 'capital investment*
two—an assumption which I am, H is another and more binding

**.

Sulphur*

,

year,

in

vestment

Keezer

M.

high

a

1 of i

eve

that

plant

Industries

Growth Company Shares—A Basis for Savings Bank

dis¬

survey

of

subject.

Dexter

Department

merce

Francisco

managers

.

.

develop¬
operations
of the Federal government—more

Coupled with increased deprecia¬

specifically by the prospect that,
on a cash basis, the Federal bud¬
get Will be balanced and may even
generate a surplus by mid-yfear. I

billion

like

shall return to this point.

which

been

strengthened

ments in

by

tion

the financial

billion

,

,

allowances

available

a

The fact that American

no

which

year

opposed

as

will

•»

"(about

the

has

of business

reduction

taxes.
.

investment

have

-

seems

quite

a

considerable

unbe¬

almost

credentials

authorities in this field.

They

profits

as

the

than $100

billion of new in¬

validate

plant and equipment in
place since the end of World War

the

expenditure
there is

II, and about doubling manufac¬
turing capacity .in the process,
American
industry* can still be

there

tries

is

companies

While

to

as

'.

'

Jan. 15,

1953.

,

Continued

on

page

*

l

T '

"

Our Reporter on

i

■«

40

Exchange PI., N. Y. 5

Teletype NY 1-1825 & NY 1-1826

8
16

:

5

______

59

—

*

t
.

«

•

.

44

1

Governments.

57

Prospective Security Offerings.
Public Utility

at present

:

..

HA 2-0270

46

——

Our Reporter's Report—

41

Securities

Securities

41

-1

Railroad Securities

Corner.—

Salesman's

—_____

—

The

I Like

Security

industry——5

Washington and You_____—

r

A

(Walter Whyte Says)____:—___________ 52

Tomorrow's Markets

60

>__*

Twice

Published

1

Weekly

closed-end,

investment

record of

47
'

Stock

Common

@ $6

2

Best—____;

The State of Trade and

MANAGEMENT, Inc.

42

54

Securities Now in Registration

'*

v

51

—_—-—

1

Observations—A. Wilfred May__

•,'

■

■

"T

Texas,
-1
»■"

Austin,

:

•

Singer, Bean
& MACKIE, Inc.

22

________—

_________

News About Banks and Bankers—

,

assure

■

Council,
■' .V
•

♦

U

Notes

NSTA

large

a

'

Citizens

Funds

Mutual

there is no way
full steam ahead.
of
knowing just how much, I
But
this
is
the
fact.
Some
Ihink there is something in both
months ago our McGraw-Hill De¬
points.
I personally
have mis¬
partment of Economics got sight givings about the possibility of
of this fact by making a prelimi¬
sustaining the present level of
nary survey of business plans for
profits through the year, although
capital expenditure in 1953. And a lot of
people for whose judg¬
ment I .have much respect do hot
V *A« address by Dri Keezer to the
Austin

Delhi Oil

8

indications of Current Business Activity..—

that the total

result.

this

right on going

and

Airlines

S.

8

____

of the News—Carlisle Bargeron

From Washington Ahead

-v

high level of capital
which
is
planned,

no assurance

_____^

U, S. Gold Outflow".

.

will be distributed between indus¬

,

keep

if

U.

43

—

objection is

The other

even

Securities

Corp.

Cinerama, Inc.

5

Einzig—"Sterling Convertibility and Recent

r,

of

level

present

— ——____

Development

Research

Brown Allen Chemical

45

*____

...

—

and

•

sustained• during*

be

-a--,

Dealer-Broker Investment Recommendations..—:

enough total volume of profits to

dustrial

planning to

the

will

year.

that

can

scarcely believe that, after putting
.more

that

pated

few people who

Stocks.-.:

Coming Events in Investment Field:

"i

capital, expenditures

plans- to ..go

lievable to

Canadian

planned—even if there

are

Ihsuraiice

and

^Business Man's Bookshelf.

about; $10

to

industry
At this point, I seem to hear two
right - ahead
.through the year. at close to .its objections being raised. - One ; is
record-breaking level of capital that it is not safely to be antici¬
-

Bank

be.

$11.5

in 1952) this looks to me
level of profits sufficient to

sustain

is

this

Associated

value

Drapers'

London,

Gardens,

C.,

E.

Eng¬

non-diversified

company

with

1500% gain in

pet

share

a

asset

during

the

'

■

For many years we
have

r

:

specialized in

COMMERCIAL

The

PREFERRED STOCKS

land;-c/o Edwards & Smith.

.

and

-J-

-

Reg.

U.

Reentered
ary

WILLIAM B.

DAN"A COMPANY,

Publishers

Albany

■

-

New York Stock Exchange

Boston

'

*
Chicago

•

Glens Falls"

HERBERT

•

Private Wire to

/-

Nashvilie

•

Schenectady

Worcester

CROWELL, WEEDON & CO,

LOS ANGELES, CALIFORNIA




•

the

under

post office at New
the Act 'of March 8,

of

shares

7,506,866

RESORT AIRIiNES

common

stqek. Report Available.
'

Subscription

D.

SEIBERT, Editor & Publisher

in

Territories

Possessions,

Thursjlay, January 29, 1953
-

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1953 by William

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FINANCIAL CHRONICLE

past 9 years.

funds.

New York 4

Tel. HAnover 2-6577

I

4

The Commercial and Financial Chronicle

(464)

cow," yet the demands for

Bus Business
A

quick look at
comment

"Expanding Your Income"

leaders in bus transportation with brief

some

country where people
in all walks of life prefer to ride;
is

States

they do a great percentage of
that riding on

and

This

buses.

Omnibus

Take

a

Here's

Corp.

fits
a

company
owning Fifth
Coach Company which op¬

miles

81

erates

of

lines

bus

in

rubber-tired

and having a 73% in¬
terest in New York City Omnibus

charabanc is

Corp.

lineal

the

de¬

of

scendant
the

street

named

car

expire.

New York;

is

the

in

trolley

ur¬

transit,
in

but

runs

between cities

well.

as

Ira

Cobleigh

U.

for

You

recall,

may

instance,

that

1914

in

could go by trolley from Bos¬
ton to Pittsfield; and that the New
Haven
Railroad
perceived such
inroads from trolley competition

you

for

traffic,
that it
bought out whole networks of
street car companies in New Eng¬
passenger

land;

attempt to gain a virtual land

ose

doomed

monopoly was

transport
to

it!

and gradi-

ill-conceived

an

doing

broke

went

and

Such

failure;| more especially so be¬
it failed to envision the fu¬

cause

ture

myriad of buses and private

cars.

let

However,
the

myopia

succeeded

of

Billion Riders

not

us

history..

dwell on
The bus

the tram; and has suc¬

in

ceeded

a

don't mind

very

big

way.

If

you

few relevant statis¬

a

tics,

here they are. Nine billion
people—over four times the entire
population• of this planet—rode
buses, within cities,
in

1951; and there

ri.trs in

1952.

interurban,
still more

or

were

Over 90,000 public

transport buses, and 111,000 school
buses make up a mighty fleet that
takes

6,500,000

school

each

of

rest

down

from

us

the

to

kids to

week

and from

day;

and

Prospect
of

corner

the

Street

Main

and

Church;

from Portland to Palm
Beach, or from Boston to Bakersfield. It's quite a business.
Bus

business

quite
(1)
(2)

sharply

transit

older

is

divided

really

into
city

or

intercity.

transit

two

classes:

service,

Let's

talk

and

about

first,

because it's bigger,
more
complex.
Just

and

pick out any city with say 10,000
and

less

sold

in

since in
Omnibus Corp.
Chicago Transit Au¬

today,
of

Fall

the

to

however,

1952,

thority its wholly-owned subsidi¬
ary, Chicago Coach Company for
about $16,500,000. Another private
bus
transit company
thus went
municipal. Omnibus lost $10,500,000 in gross (1951) and a lot of
buses, but there's a brighter side
—cash received!

With this Omni¬

bus retired $6,095,100 of

high div¬
idend ($8) preferred at $115, paid

off

equipment loans and set
up
some
reserves
for possible
claims and taxes. Now, apart from
equipment obligations, sole capi¬
talization
of
Omnibus Corp.
is
647,739 common shares quoted at
10 and paying $1 currently.
From 1938-1945, earnings were
good; but by 1946 powerful union¬
ization, higher operating costs and
taxes,
plus
higher replacement
some

beset

cost

Than Nine

More

At the end of

1951, Omnibus Corp. and subsidi¬
aries owned 1,900 buses, 1,772 of
them Diesel driven.
That figure

it

ban

franchised

83

has

miles in New York.

Not

only has
replaced the

which

earning

increases,
and

Fare

power.

both

granted

in

1949

1950, helped stem the

ings

tide;

ebb

moment

we

demands

$1.74)

but at
again

see

(25c

an

earn¬

this

very

new

wage

hour

above

reduction of the work

and

week to 40 hours with the 48-hour

weekly

mand created
and

if

a

met,

higher fare
earning
the

lines

and

again

suggests

the

as

for

With

This de¬
month long strike;

envelope.

pay

power

a

only defense
maintenance.

city owning some bus
negotiating labor rates
private management has

on

same,

to

follow

pattern

pretty much the same
when it f. comes
to the

bargaining

holders?

Who

trolley to bus gained momentum
in the '30s, the rubber-tired tran¬
sit lines
sold to

bought
There's
transit
trend
are,
vate

were

in many cases either

private companies;
by

over
a

else

municipalities.

great deal of municipal

that

however,

transit

facilities

in

Philadelphia, Pa., serving a
population of over 2,600,000 with
assorted

and

diverse

passenger

service

by street railway, track¬
trolley, motor bus and sub¬
way-elevated lines. Buses are an

less

important,
ment

in

and

increasing,

this, extensive

ele¬

system;

a

visible

but here again earnings have been
bedeviled by higher costs, labor

direction.

'There

difficulties

ownership,
in

or

some

corporations

and

very

whose

big pri¬
opera¬

tions attract investors.

that

in

(85%

of

higher
standard

and

fares,

much

delayed

crossfires

of

needed

it

lines

own

(14% of gross); and it also oper¬
the Delaware Bridge Line,
owned
by the
Delaware River
ates

Commission.

Joint

Altogether,
Philadelphia Transportation
earned $72.6 million gross for 1951,
equivalent to $1.17 on each of the
717,005 common shares outstand¬
ing. On this 80c, a share was paid
in 1951, and 1952; but nothing in
1949
and
1950.
Ten-year price
range on this common is from %

(1942)
quote

1893

1953

12%

Exchange, sells around
and has paid $1 for the last

five

years,

vacation

daily

to

in

addition

traffic,

to

is

1953

thousands

stocks.

an

Dilemmas

Another

inauguration

is

Federal

taxing

He

nation.
a

speculative

*ar

elements

climate. With these
remaining
uncertain,
Philadelphia Transport common

possible

its

appeal

the

to

rent

price

Tax

f

political

baps

a

ma.

If

these

Local

urban

—

Roger W. Babson

Operators

transit

to

Dallas Railway,

lie

Service

or

Co.

of

New

taxes

and

50%

will

if

be

in certain

granted

have

we

in

declining

promises,

result

a

he

can

reduce

taxes much

more in 1953?
Never
before has any new President inherited
such
abnormally high

exp an a

a
Korea — Dilemma No. 1: The
Pub- American people want their sons

Jersey,

owns

lie Service Transportation Co., one
of the titans of transit. However,
when

look

you

the

member

municipal

politics
But

tax.

all

at

basic

chise

these,

re-

overtones

and

of

is Dilemma No. 5.

time, don't want Korea to fall into
Communist hands. This is a Diwhich

with

lemma

Mr.

also

that

downtown conges-

■>

.

Needed—A Spiritual Awakening

back from Korea and, at the same

j

thankful

am

Eisenhower

Truman

our

fran- and his military aides have hon-

the

consider

the increasing

is

that

Dwight O

President 'of

now

COuntry. Unless World War III
(an(j

comes

struggled. The promise of
Ike to visit Korea and try to acestly

M h

jt

comes

Eisenhower

.11

tL9rt,

would be needed

more than ever),
Inflation can be curbed. Hence,

complish the impossible was a
great factor in electing him. Will we have Confidence.
This is a
and the trend to suburban living, people turn against him when he
great step forward. But the Amerand population growth, creating reports that 1953 will see no solu- .
DPOnle—evppnt in
new
demands
for
bus
service, tion
to this Dilemma, notwith- lcan PeoPle- except in emergenAlso consider as a source of addi- standing his hopefulness?
cies
are basically business and
tion, in big cities, the progressive
difficulty of parking private cars,

pm

Communism

interurban

tourist

or

bus

The

—

Dilemma

employment minded. Our marvel-

No. 2:

President this week

new

re-

sacrifice. Eisenhower believes that

not

confined to Russia.

for

name

so

and

tens

j.,

.

.*

-

A

as

a

America.

capitalized "this

ual awakening, brought about by

wave;

great social tidal

But

only

adversity,

while the United States has some

great spirit-

a

will

make

our

voters believe and act likewise,

With Olderman, Asbeck
-

(Special to The Financial Chronicle)

CLEVELAND, Ohio —Laura
Bolder

has

ioined

thp

A.

staff

n#

* sta« of

Olaermari, Asbeck & Co., Union

Commerce Building, members of
the Midwest Stock Exchange.

up or

_

"2
1

-

swift, and with hotel tariffs and admitting more foreign
so complete,
goods into our markets. But he

of

thousands

at home in

arrange

also

knows

that

such

a

program

thq garages.

WHAT'S AHEAD?
Ten reports

Such a move might also
cause unemployment here at home,
Greyhound Corporation
which would be welcomed by the
In this billion passenger, inter- Democrats. Hence, this third Dicity
bus
traffic, one company lemma. Competition during 1953
stands out as leader—Greyhound will be very severe, even among

This

the

seven

.

-

angry.

distinguished

enter- U.

S.

manufacturers,

District of
Canadian

No.

4:

provinces, operate
as

Penn- nomical

Haven, Southern
Great Northern, share

New

Pacific and

such

Columbia

Our
a

new

Sent

more

ecoGovernment,

There will be less money spent

by
an departments, including the mil-

Dewey

Foundation

for

a

who contribute

year to

the

Study

of

Cycles

9 E. 77th Street, Mew York 21, N.
Also,

«

-dividend"

.

,

stock market cycles, projected

.

to

future.

Send

$10

today.

Ask

i9$o~

worked

wtat'l? IS.

SSf

Y*

chart of variooa

Thi* pr<»jection, made in 1944, has

will

honest and

Federal

to persons

$10

without

President

a year by Edward R.

(co-author Cycles—The Science of
Prediction)

^

railroads

sylvania,

t

whole will ultimately be best for

the family round-trips, covering thou- would make the U. S. business
politics. sands of miles, leaving their own interests who elected him very
cars

do

facilities

resort

that

We

movement of billions; of unhappy

down in our aid to Europe and Japan.
coast, or cross country, tours are Our new President knows that
offered at prices so attractive and this can be done only by lowering
schedules

fact

what is best for the world

It is the

revolutionary

world

a

this
.

sympathetic with these downtrodthe rail- den races, but he knows also if
between he changes our present policy he
cities, such as the run from New would be cursed as sympathetic to
York and Boston, Washington and Communism. This is
EJilemma No.2
Richmond, bus lines provide al- which he must face in 1953.
most hourly service at low-cost
Foreign Imports—Dilemma No. 3:
competition-beating rates. For the Voters are demanding a reduction
vacationer,

largely

Russia's spread of Communism.
But he knows that Communism is

passenger volume from
roads.
For
example,

or

due

to

the tram, but taken over a major

tourist

growth has been

ous

iterated his determination to stop

picture is less complicated, and in taken the side of the conservative
this field, the modern streamlined owners of property and tried to
diesel carrier has not only retired check
it.
Eisenhower must be

Certain

NEW YORK 6, N. Y.

a

stocks, it is well to consider at taxes, upon the government's
least five Dilemmas which we spending of which our prosperity
possibly Pub- must face in 1953.
is largely dependent. Hence, this

king size utility, which

and

INC.

as

lure you, look up Baltimore Transit Co., Twin City Rapid Transit,

states,

Hodson & Company,

only

to radical laboA Per-

sop

But

Hence,. 0ther

prise with its subsidiaries, oper- being
handicapped
by
greater
ates an integrated highway bus imports. '
system of 90,000 miles, serving 46
Balancing the Budget—Dilemma

ANNIVERSARY

benefit from the

exists

of Eisenhower fulfilling all his

m

plants or buy

equities

Gains

reduced, and

profits and dividends, as

before rushing

Other

It

taxes

1953.

synonym

Capital

much

a t°ken reduction of 5% in

income

Democracy
is

The

be

reduction.

a

excise

quite alluring yield.
Some

1953.

COuld

investors would

is

in

m1K«raC^'

dividend, the cur¬
common indicates

for

it

as

»

a

during

ao

will be a great

more

sporting wing of the stockholding
fraternity. If you could only be
of the 80c

Reducing Taxes—Dilemma No.5:
The Excess-Profits Tax will end

and

contacts.

derived

in 1933.

face

marvelous

favorable

is

this

would
lower tax receipts. This is a
Dilemma which Eisenhower must

is

energy

labor factors,

more

income

profits,

mean

of ster-

man

creased

of

bus-minded.

now

fascinating enter¬
prise, whether you take a long
ride, or just a long position in its

most

a

of

Bus business is

tremendous

sure

are

to

hundreds

Duluth,

from

create

en-route

By ROGER W. BABSON

in¬
fares, better cost control,

makes

or

wheel

over,

stabilization

or

long concentrated hours
the

Denver

regular

Greyhound

avoid

behind

round-trips, and special

charters,

parking problem downtown,

a

ling character,

could

and

and whether to avoid rasslin' with

roughly 80% of net.
Even with two regional strikes in
1952, the dividend was covered.
With 6,300 buses on the road, ag¬
gressive sale of packaged tours,

Here, a? in other urban lines
and

Its

powerful

are

N. Y. Stock

funded debt of about $48

Corp.

SIXTIETH

This investment could

notes.

$1 dividend preferred and
million.

par

equipment

merchant.

rapid • roadwork
competitive lures.
conceivably improve overall net Greyhound is providing a lot of
by as much as % million a year. travel satisfaction, as well as a
Greyhound common, of which current 7.7% yield on its common.
10,600,367 shares are listed on the
America is a nation of travelers

and

follows 752,384 shares of

common

$20

preferred

travel

9Vi
(1945). Current Dwight Eisenhower is now PresiThis highly volatile dent of the world's most powerful

to
5%.

,




its

runs

$2,224,700 par in $4.25
and $6,341,000 in cash

by

Here again, fare rates are "sacred

165 BROADWAY

is

gross), and as lessee,
the city
owned lines

operates

The

trolleys,

As the fast switch from

Transportation

knows?

Philadelphia Transportation Co.

across-the-board

the juice.

traditional low cost fares, modern

table.; For these rea¬
tional
revenue,
card advertising
Omnibus
Corp.
stock
is
in buses and even radio music and
speculative.
Higher fare could
blurbs, tried (as well as litigated)
mean
better earnings,
but how
in Washington, D. C. As long as
high can fares be set without re¬
rising demand for bus transport
pelling riders; or how can they
be kept as they are, without in¬ exists, ingenious management may
well develop profitable techniques
voking the specter of municipal
for meeting it.
>
ownership? Would the latter pro¬
duce
a
The Interurban Carriers
capital gain for share¬

Another big city transit enter¬
prise is Philadelphia Transporta¬
tion
Company
which
provided

were owned by the elec¬
tric power
company that supplied

efficient

sons,

population and (1) it
had a trolley line once or (2) it
has a bus line now. Many of these
lines which began years ago as
over

purchase of % of its outstanding
shares for

unique among urban transit out¬

holding
Ave.

in¬
in¬

and

Philadelphia

Thursday, January 29, 1953

.

an

holding the deficit bag.

carriers.

Omnibus Corporation

United

It has been said that the

fares,

.

of labor,

price

of
possibly cur¬
tailed service if private enterprise
is to continue; or outright munici¬
pal
absorption,
with
taxpayers
higher

how the investor fares among these

on

the

dicate once more, the prospects

By IRA U. COBLEIGH
Author of

in

crease

.

7*

for

chart

c:tfc^n'y back.in ,ul1 if not d«h*hted
rep

the

ownership in Greyhound lines itary.
More efficient operations
respective areas.
may be expected.
But this defla¬
in October, 1952, Greyhound se•
v,
cured
complete
ownership
of tionary program may cause unem-

in their

.

Overland-GreyhoundLines,-by ployment and lower profits.

As

. _

•

r

)

^

Volume 177

Number 5390

The Commercial and Financial Chronicle

...

Steel

The

(465)

Production

Observations..

Electric Output

Carloadings
Retail

State of Trade

Commodity Price Index

—

Industry

What Price Glory?

Business Failures

J
change

noted

was

the

past

week

in

total

The importance of

industrial

production ranged close to 6% under the record attained

Controlling Factors in the Busi¬

a

nate business and

.

million./! This was

1.2 million higher than

Industrial
average

or

production last year ran at 219% of the
about equal to the 1951 output. Through a

trated drive in the final five months of

amounted to 93 million tons—only .12 million tons less than
despite the prolonged mill shutdowns, states the Federal

year

Local

,

Industrial

.

'<

'•

;

/•"

< •

7.

;

a

Taxing,

of

'

Supplement

to "New Tax Manual for Pennsyl¬
vania

■'

Communities"

Its

and

—

against conflicting directorial interest in companies
aegis of the Public Utilities Holding Company Act,
the Investment Companies Act, the Federal Communications Com¬

McCann, Community As¬
sistance Committee, Pennsylvania
Motor
Truck Association, Tele¬
graph Building,c Harrisburg,Pa.—

cessive month. As a result of the steel
strike, output fell to 193%
in July. But record demands from the military and civilian sectors
of the economy have pushed
up the index ever since.
The De¬

paper.-

7_/k,

v

to

a

j

record 247%

Some steel

/

.

consumers, fighting a

'

;

:

mission, the Civilian Aeronautics Board, and the Interstate Com¬
merce
Commission. An individual wanting to be a director in

.

t

more

pro-'

ternational B

curement, may be over-playing their hands, states ''The Iron
Age," national metalworking weekly the current week.: A careful

point to

may

future, this trade journal adds.

"

7

,

an

No Work

uncertain

There

is no reason to suspect the market in the next few
Demand is far too strong But the
psychology of shortage
is a powerful force that could
bring on a mild case of boom and
bust. The inventory correction of 1950 could be

ler

s

half of

1953,

or

York

are gaining, but inventories are
Juggling of stocks to get badly needed

badly unbalanced.

items makes steel supplies

seem

smaller than

they

and

Y. (plus a chart of stock
marekt cycles, projected to 1990—
ask for chart* C).

Ontario Debentures

appliances, every possible pound of steel is being
race to reach the customer first.
This is adding
market, this trade weekly notes.

thrown into the

terrific pressure to the
Some
of steel

purchasing agents

controls.

are

Offered at 96.75%

already discounting the lifting

Harriman Ripley & Co. Inc. and

In

their aggressive buying, they
appear to be
paying little heed to Controlled Materials Plan quotas, or inven¬

tory restrictions.

Wood, Gundy & Co. Inc. and as¬
sociates

+

purchasing agents are admittedly over-ordering, ap¬
parently on the theory that only part of their order can be filled
anyway. In a number of instances shaving of inflated orders
resulted

Feb. 1, 1975 at 96.75%

may

in

delivery of about

as

much

steel

as

had

been

Proceeds

the

.

or

more

items.

The

search to fill

It also explains

.

pressure in the market.

undue number of
emergency calls for "depart¬

capacity.

delivery from warehouses, states this trade journal.
producers are keenly aware of their growing
production
They know that

inventories,
t

as

well

as




many

consumers

may

one company

"

:

sale

of

the

to be advanced by

of

Ontario

to

The

the

from

quest

Commission

Real Issue

Unawareness of the

..

77

,

..Wilson's, complete unawareness of
the basic principle that a man cannot assume a position implying
the possibility of serving two masters and the kindred proprieties,
before, during and after the hearings before the Senate's Armed
Services Committee. He sought to create a. picture of a "goat" oP
political skullduggery, "pushed around" by demagogues following
uninformed low instincts of their constituents. "I've been clipped,"
he wise-cracked to the Pentagon barbershop on his arrival on his
job today. Undoubtedly a major motive in the final decision
to liquidate his stock was that of making a supreme sacrifice to
free his Chief from unwarranted political embarrassment.
"

-

conflict

permission of the regulatory agency,
where there is an actual conflict.
V

which withholds it

-

.

where there is any possibility of

get the

Most surprising was". Mr:

compulsory divest-,
officials is based on its
insufficiency, on the ground that there are other numerous ele¬
ments, including conscious and subconscious ones, which motivate
duality of interest. But opposition to a step fundamental to good
practice on the ground of its incompleteness or inability to func¬
tion as a cureall, seems wholly invalid. And the fact that in our
"crusading" new business Administration's first and clear-cut test
its representatives fell down, compels the unfortunate inference
that on more diffuse tests the proprieties would more certainly
have been violated.
And further it implies the conclusion that
discussion to effect legal changes to make the government jobs
attractive for industrialists, will be abortive.
Some

ment

of

opposition

the

against

voiced

of stock ownership by government

The Cost of Serving
Mr.

Wilson's

obeying the Congressional will in

sacrifice in

disposing of his General Mbtors shares does not seem so fabulous
—apart from the question of comparison with what others have
been forced to do, from similar officeholders, past and present, to
the army of draftees
ment.

Of his

own

pletely from the

for

•>

under the aegis of that very Defense

Depart¬

40,000 shares, he has agreed to remove com¬

family 32,000 shares, leaving his children
Continued

7'-..

on

page

and
59

advance of moneys to be used

r

for its present capital con¬
program and
to repay

struction
any

current

delivery, they fear

Province

part

production is slowly raising
supporting higher manufacturing schedules,

New capacity yet to come will
speed the process of catching up.
When the word gets around that steel
orders can be placed
with promise of
early

are

by the Commission to provide in

ment store"

Steel

and accrued

Power
Commis¬
sion of Ontario pursuant to a rean

an

50,-

Hydro-Electric

these troublesome holes is

relentless, accounting for much additional

the

from

debentures

by shortages of

one

today

interest.

hoped for in the beginning.
Unbalance is still the keynote of the
inventory picture. Many
seemingly comfortable inventories are crippled

offering

are

than

interest, must

000,000 Province of Ontario (Can¬
ada) 22-year 3V\% debentures due

Many

have

FulPublic : Affairs Committee,
22 East 38th Street, New
16, N. Y.—paper—25c.

21, N.

are.

purchasing agents,. spurred by front office races
for the consumer market, are
extremely aggressive in their pro¬
curement. In competitive consumer durable
goods industries, such
autos

Today!—The Plight of

cles, 9 East 77th Street, New York

Industrial

as

Machines

by Edward R. Dewey sent to those
contributing $10 a year to the
Foundation for the Study of Cy¬

An "Iron Age" survey of steel inventories in
major consuming

,

n e s s

What's Ahead—10 reports a year

early in 1954, states this trade authority.

centers indicates that steel stocks
still

—

Inc.,

repeated in the"

second

i

America's Migrants—Varden

";

months.
-

u s

Corp., 590 Madison Avenue, New ?
York 22, N. Y.; /
/ .//

check of the market this week shows
overwhelming demand, but
of these very signs of strength

some

of

—

describing procedure of
sayings institutions—In¬

value to

challenging battle of

Accounting

Mortgage.! Loan
Booklet

?

the

under

cember

figure, however, was still considerably below the level of
Octobers-November, 1943, when fulLscale war, carried production

desires

acted into law

John A.

December, it disclosed, climbed to
post-World War II high for the fourth suc¬

new

continuing

Railroads:- Local

Real Estate Tax Law

production in

235%, setting

Estate

Real

Pennsylvania

codification of the people's
according to. their moral
sense.
In direct
contrast to an unpopular'
ordinance of the Sunday-closing type, whose
infraction is winked-at, if the statute barring
A. Wilfred May
the serving of two masters had not been on
the statute book in some form since 1863 (and
re-enacted in 1879, 1909, and 1948), such a law would have been
legislated to follow the popular will long ere this.. ,
' . /
It is within the last decade that restrictions have been en¬

the law is merely a

Inc., 225 West
Street, New York 1, N.'Y.—
fabricoid—$12.50. *

in 1951

Reserve Board.'':

.

—

34th

manu¬

to fit

well as schemes advanced for
getting around-the law; but equally extrane¬
ous is the widespread discussion centering the
issue on the various legal phases.
What Mr.
Wilson and much of the public—both "pro-"
and "anti-Wilson" —have lost sight of is thatr

the designees, as

—Business Reports,

1935-39

1952, the nation's

Out of order have been not only the pro¬

posals for changing the law ex post facto

William J. Casey and J. K. Lasser

concen¬

facturers made up nearly all the losses resulting from the 56-day
steel strike in June and July.1 Steel out-turn itself for all last

1953

at

of its "Crusade."

a

Plans:

Pay

Business" and its sponsoring
this time of the launching

of "Big

cream

Administration

a

.

Executive

1(

,

the

market outlook

Average-from

duality-

of-interest

"

at/

•

.

significance lie in the manner in which the overhanging
was faced—or rather ducked— by

Ap¬

Practical
Standpoint".. and current projec¬
tions of buying levels —. $5 for.
these special reports and weekly
bulletins
through March 31 —
Anthony Gaubis & Co., 37 Wall
Street, New York 5, N. Y. v.
\

in December, 1951. The Christmas season brought temporary in¬
creases of 500,000 in retail stores
employment and of 400,000

post offices.

—

study entitled "What Is the Best
Stock

was

Outlook

during the next 12 months plus

According to the United States Bureau of Labor Statistics,
factories employed more workers in December than at any time
since V-J Day.
Manufacturing jobs numbered 16.7 million, up
55,060 from the preceding month. At the same time, total nonfarm employment rose to a new record of 48.8
It

Market

praisal of factors likely to domi¬

year ago.

800,000 above the November total.

and

ness

in the final quarter of 1943 and close to the highest point reached
since the end of the second World War.
Unemployment held
well below the level of

the "Wilson-Talbott-Stevens case," it seems

actually lies not at all in the legal phases with which so
much of the public discussion has been occupied.
Rather, does its
to me,

output from the near-record level of the preceding week. How¬
ever, it continued to be somewhat higher than a year earlier.
Total

By A. WILFRED MAY ssss

Index

Auto Production

and

Little

.

Trade

Food Price

-

5

temporary loans incurred for

capital
The
'

or

The Partners of

other purposes.
will constitute

debentures

direct obligations of

the Province

Walston, Hoffman & Goodwin

of Ontario and will be redeemable
at

the

option of the Province at
announce

time on or after Feb. 1, 1958
prices ranging from 101% to

any

at

as

the firm

par.

Ontario is the second largest
the Canadian

on

name

will he

of

June

1,

1952

Walston & Co.

was

Members New York Stock Exchange

4,766,000, representing about 33%
of the total

1953

of February 1,

provinces, covering

approximately 412,000 square
miles, of which about 88% is land
area.
Estimated population of the
Province

that

and other

leading stock and commodity

exchanges

population of Canada.

Net direct debt of the Province on

Sm Francisco

•

Los Angeles

•

New York

•

Philadelphia

•

Lugano (Switzerland]

POTTSVILLE

SANTA

BAKERSFIELD

ERIE

MODESTO

BELUNGHAM

EUREKA

OAKLAND

RIVERSIDE

ANA

SEATTLE

FRESNO

PASADENA

SACRAMENTO

STOCKTON

HARRISBURG

PHOENIXVILLE

SALINAS

SUNBURY

BROOKLYN

HARTFORD

PITTSBURGH

SAN

DIEGO

VALLEJO

CLEVELAND

LONG B^ACH

PORTLAND

SAN

JOSE

YAKIMA

EAST ORANGE

BEVERLY

HILLS

*

-J

6

The Commercial and Financial Chronicle

(466)

motives and

For various

be the key word in any

business prospect for 1953.

Ifciie

estimate of

It is apparent that our

ness

reasons some

of the 1953 busi-

forecasts prepared for the

,

signal projects, new yards and shops, and other fixed
installations.
Many more technological improvements
could he made if the financial ability were available.

CHRONICLE
ANNUAL

could not be accommodated in our

In

REVIEW

lar, will be influenced to

The remaining unpublished
statements appear in today's issue, starting
on this
page.—EDITOR.

Administration's
fense

decisions

de¬

on

spending.

Under

production in particu¬
large degree by tne new

*

present plans,

the defense
would

and

expected

22.

Jan.

day,

1953 railroad traffic

volqme and gross reven.es are
present high levels.
This is
activity for general
business and large government spending for defense.
Barring further inflation in operating costs and strikes
in
major industry, railroad earnings should remain

OUTLOOK ISSUE of Thurs¬

rational economy, and industrial
a

reach its peak in the middle of* 1.953,
with possibilities of some general

prices of nearly every item that enters into the cost of
living and doing business.

about the

lousiness

hand, sufficient earnings are necessary
to attract capital and support from investors in this pe¬
riod of unprecedented utility construction and expansion.
When and where the facts are fully and fairly pre¬

economy as

thereafter.'

Jbowever, the demands of the Korean
operation increase, our defense pro¬
gram may well be stepped up, or
certainly maintained at present
levels with continued high produc¬
tion and employment.

While

anticipated that the
construction industry will follow the
general trend of business, it must be
remembered that the building prod¬
Herbert Abraham
ucts industry has always exerted a
fctrong stabilizing influence on our
economy. The present outlook for this segment of Amer¬
ican industry in 1953 is favorable, with anticipated sales
and production figures approaching the high record set
it

is

in 1952.

'

This is verified by surveys indicating that in the first

fcalf of 1953

the housing situation will remain reason¬

ably stable, with
tion

of

a

possible decrease in the rehabilita¬

old homes and

emphasis op new construction.

Demand for housing may well be stimulated by smaller
clown payments, and easier financing methods.
There
are

already indications that credit requirements will be

same

of

Because

On the other

If,

continue

to

at

based on the forecasts for sustained

program of $57 billion a year

let-down

Thursday, January 29, 1953

70% of these improvement funds will go for new loco¬
cars with the remaining 30% for fa.l and

FORECASTS

MORE BUSINESS

HERBERT ABRAHAM
President, The Ruberoid Co.
well

.

Speaks flitter the Turn of the Year

Business and Finance

Korea may

..

as

they were ip 1952.
vital importance

their

to

the

.

national

essential common carriers of passengers and

freight the railroads have been the object of Federal
and state regulations for over 65 years. By attempting
the worthy purpose of protecting the public from a po¬
tential railroad monopoly, government regulation and
subsidy has worked to build up other forms of trans¬

sented, I am sure the public will continue to accept, and
the regulatory commissions will approve, rates for gas
and electricity which yield sufficient income to permit
utility companies to meet the demand for their services.

portation to full grown competitors and has weakened
railroads to the point where they are struggling
maintain their financial independence. This threat

the
to

Of great

significance in 1952 was the founding, of the
Corporation by 15 private utilities
to supply 2.2 million kilowatts of power to the Atomic
Energy Commission. This organization follows the pat¬
tern established two years earlier by the five-company
Electric Energy, Inc., which is installing 900;00d kilo¬
watts to supply power to the Paduc^h, Kentucky, atomic
installation. In addition, five New York State bower
companies have proposed to develop additional power
from the Niagara River, scene of one of the .great his-~
torical hydroelectric developments of this nation, made
also by private enterprise. If and when.'Congress grants
permission, the utility companies are prepared to con¬
struct the project.
O
;
7

to free enterprise must

Ohio Valley Electric

be recognized and corrected by

prompt action. The new Congress has a job to do for the
American people in revising transportation laws so that
a
reasonable measure of freedom is restored by the
removal of unnecessary and excessive regulation.

1953
when the fate of the great railroad

could be the year

industry

may

be decided.

.

C. J. BACKSTRAND

,;

President, Armstrong Cork" Company

Barring all-out

war

for national defense

7-

_

in 1953, government expenditures,
no longer take an increasing

„will

.

proportion of the total national output, although military
outlays are expected to continue to rise slightly through¬
out th,e year. A new balance seems
.
■
,
r
pared to meet the power requii^ments; of. quii. defense
likely between-the military and civil- /•
and civilian" programs with the active cooperation vdf'
iari sectors of thq ? economy with a t'
Government. The claim that private capitaluhable or 7
marked easing in the strains and
unwilling to undertake large-scale power, development
pressures which; have accompanied.
is refuted by these examples. Private capitai 'hascon- the defense build-up. Further sharp
tinuously demonstrated its willingness and%ability to,
rises in consumer prices are not in
These recent

the

enterprises are sufficient evidence that
investor-owned utility companies are pre¬

nation's

.

relaxed along these lines.

-

Plant and' factory construction appears to be neaping
the

required level, even with a big" defense program.
However, construction of the type which normally fol¬
lows such expansion is considerably short of its peak
requirements. We can look forward to a parallel com¬
munity building program including the erection of
r.tores, offices, warehouses, schools, hospitals and other
etructures which will contribute a great many jobs and
dollars to a widespread number of cities, towns, and
villages, especially those in defense production areas.
In 1953 the home purchaser will demand more for his
in better materials and workmanship, and the

money

trend toward use of improved devices in housing is ex-1
pected to continue. Development of "Duroc," a colorgrained siding, by The* Ruberoid Co., is just one example
of this growing awareness of the need fpr new materials.
Industry, too, reflects this trend toward higher quality
constructioin for possible dual-purpose objectives—de¬

fense

as

well

as consumer

goods.

All this offers a

challenge to every branch of the con¬
struction industry, which will stimulate competition to
produce better products for the building products buyer.

develop large

power resources

in the public interest.

are managed vigorously and efficiently in the
public interest and the public has knowledge of their
accomplishments, I am confident that the public will ap¬
prove and support business rtianagement and investor
ownership of the utility business.
* J
r

serve

the

nation's

is attested to

by the impres¬
sive gains registered in 1952 in electrie

generating capability, gas con¬
production, sales

sumption, power
and customers.

It is generally recognized that the

American

^consumer

is

receiving

value today for his utility dol¬
lar than for any other
comparable
expenditure. A number of factors
more

have made this
and

efficient

increases at a

ter,

plants,

more economical

service, as well
in power use,
necessity for rate

minimum.

The

power.

first

■

,

-

new

'."v.

For example, in 1940, 1.34 pounds of coal
plants

fourths of

a

under

now

produce

were needed

electricity.

power

at

The most

about

three-

pound of coal per kilowatt-hour, and plants

design will lower that figure.

industry has demon¬

use

ability to supply for ever-increasing customer

in home and in industry.

The problem still with

Is how to continue to meet this
demand in

a

us

period of

rising costs.
The

cost

cannot be

of plants, equipment, materials and labor
continuously increased without seriously af¬

fecting the cost of utility services to
•industry is

impose

aware

upon

the

of the

public,




burden

■

our

that

customers.

increased

already faced

„

'

•

.

;

*

+•*'*""'

earnings figures for >1952

are com¬

ing behavior of consumers. With increased availability
aU civilian products, it is to be expected that con¬

pleted it is expected that the average rate of return on
the net property investment of Class 1 carriers will be a
Tittle

more

of

sumers

This will be an improvement over
when
the
return: was
only
3.69% and approaches ,the average

than 4%.

Our

rates

with inflated

in their purchases.
exception, and in most lines

will be even more selective

Seller's markets will be the

1951

competition can be expected.
high over-all level of ac¬
tivity is anticipated. Some weakness in private building
from 1941 through 1950. The rail¬
is in prospect, but this is likely to be offset by an in¬
road record is not very impressive
crease in public construction. A freer supply of all build¬
when compared with that enjoyed
ing materials—especially metals—as well as the further
by other major industries,; which reglifting of government restrictions, should prompt an
ularly earn an average; of from 7%
expansion of commercial building., Still rising needs for'
to 18% on their net investment.
It
schools, churches, and many institutional structures foreis not a record which would en7 shadow further growth in construction in these fields.
courage investors
to venture their
New homebuilding promises to be moderately below the
funds for new issues .of railroad
levels reached in the last three years—primarily because
stock.
Consequently, the railroads
the most urgent housing requirements appear to have
must spend a major part of their
been met. Repair and modernization work, however, is
earnings and working
capital in
expected to expand further. With limited opportunity
order to make necessary improve¬
for larger volume in new residential construction, satis¬
Arthur K.' Atkinson
ments to their roadway and struc¬
factory profits for builders and material suppliers will
tures, as the only sources of new
depend more than ever upon ability to control costs and
borrowed capital are the issues of comparatively shortgive greater values to the consuming public.
term
still greater

In the construction field a

of 4.25% earned during the 10 years

t

,■

.

.

v

obligations
railroads

on

equipment acquisitions.

Because of the

cannot

be placed m a class with the
They, are stili the backbone of our
national transportation system, carrying more; commer¬
cial inter-city freight, based on tonnage. • moved and
distanced involved, than all other fQrms of public trans-,
port put together. The,: Class 1 raihoacU alone employ a
horse

and

over

The

in

the months ahead.

Although it is too early to de¬

termine precisely the course which the new Administra¬
tion will take in many areas,-it now seems likely that
a

find a quarter Americans at average wages of
about $80 a week. They represent a net investment by
the general public of $25 Vs billion and pay m.ofe than
$100 million in taxes each month to the Federal, state
and local governments.

far-reaching effects of government ac¬

general business, the policies and programs of
the new national Administration will bear close watching

tion

buggy.

million

In the gas business the demand
continues for the clean,
efficient automatic fuel which this

strated its

■;

President, Wabash Railroad Company
When the railroad

has increased approximately 20%.
has been for military pur¬
poses. Consequently,
while the nation's efforts during
the past two and one-half years have been directed pri¬
marily toward achieving greater production, the task for
business managements in 1953 will be to sell in full the
expanded capacity for civilian goods.
*
The principal uncertainty facing many individual lines
Of business in the year ahead can be traced to the spend¬
productive capacity

Less than half of this gain

,

and no longer elusive

■

C, J. Backstrand

adjustments will continue to take
place among individual lines.
Since the outbreak of the Korean War, the nation s

have' taken the

nation's utility companies

steps to entering this

field.

The

io generate one kilowatt-hout of

efficient

now

new

*
as progressive gains
been instrumental in
keeping the
.

7 .ave

^

of

Technical

improvements, the

and constant management efforts to
seek out new ways of
providing bet¬

Ernest R. Acker

_,

possible.

operational

installation

level for general business, but many

Utility, companies look forward with great anticipation
to 1953 $nd the years following.
Already experiments
are
underway involving the technical and, economic
problems of the conversion Of atomic energy into electric

j

to

offsetting the slight decline in. spend¬
ing for new plant and equipment ex¬
pected v a f t e r
mid-year. Broadly
speaking, the year ahead promises to
be one of relative stability at a high

panies

'

ability

age

f

ARTHUR K. ATKINSON

Realizing the vital contribution of electricity and gas
to America's civilian and defense needs, the privately
owned business-managed utility companies will continue
their vast expansion program in 1953, unmatched in
industrial history. Effectiveness of

of 1952. Rising consumer incomes .
should expand the potential for sales,.

;

encroachment will continue. As long as'the utility com¬

President, Central Hudson Gas & Electric Corporation

this

prospect, and production in all prob¬
ability will remain close to the aver-

utility companies will continue to provide gas and elec¬
tric service or whether the trend toward Government

ERNEST R. ACKER

needs

7

The public is still in the position to determine whether

rriore'favorable climate for business will prevail than

in recent years.

Greater economy in government can be
tax relief is possible, and Federal poli¬
expected to reflect the views of all groups
in the economy. Much of the current optimism regarding
rear-term business prospects undoubtedly is based on

anticipated,
cies

•

can

some

be

these considerations.

railroads, like other business and industry, need

adequate profits |n order to survive and; progress with
the expanding national economy. They have made great

While there

are

strong reasons to face 1953 with con¬

they will continue the huge program begun at,the close

fidence, complacency would be dangerous. For,, certainly
good business this year cannot be taken for granted;
Sound planning, with emphasis
upon improved efficiency, redoubled selling efforts, and new product de¬
velopment, will be the key to successful operating results

of

in 1953.

strides

•

in improving their service, efficiency and safety

in almojst

every

phase of railroad operations.

World War II of spending

an average

of

Iri 1953

more

than

a

billion dollars annually for capital improvements. About

Continued

on page

25

r
Volume 177

Number 5190

.

.

.

The Commercial and Financial Chronicle

(467)

7

:v

Interest Exempt, under the United States

Taxation

Housing Act of 1937,

hereafter imposed by

now or

as

amended, from all

-

the United States
--■ft -------------J

NEW ISSUES

■

I

iHBJMW

-:-r --J

-

---

$111,015,000

New

Bonds
Due

serially

shown below

as

Principal and semi-annual interest payable, at the option of the holder, at the office of the Fiscal Agent of the respective Local Housing Authorities
of New York.

Coupon bonds in the denomination of $1,000, registerable

to principal only, or as to both principal and interest, with the

as

or

at the office of the Alternate

privilege of reconversion, at the

Paying Agent in the City and State

of the holder, into coupon bonds.

expense

Legal Investment for National Banks, without limitation as to amount of investment, and for Commercial Banks,
Savings Banks and Trust Funds in New York and many other States
These Bonds, to be issued by 43 Local Housing

Authorities located in 21 States, will constitute, in the opinion of Counsel, valid and legally binding obligations of the

respective Local Housing Authorities, secured by

a

and interest

on

with the

first pledge of Annual Contributions unconditionally payable pursuant to the Annual Contributions Contract

Public Housing Administration in an amount which,

together with funds of the Local Authority actually available for such

'

'

the Bonds when due.

will be sufficient to pay the principal of

purpose,

The United States Housing Act of 1937, as amended,

,

solemnly pledges the faith of the United States to the payment of the Annual Contributions

by the Public Housing Administration in accordance with the terms of the Annual Contributions Contract.

LOCATION OF HOUSING AUTHORITIES AND AMOUNTS

Scale 4

Scale 1

1,685,000 New Haven, Conn.

2,865,000 Paducah,Ky.

-

2,400,000 Fall River, Mass.

$5,885,000 Chester, Pa.

2,305,000 Beaumont, Tex.

1,230,000 Pensacola, Fla.

1,375,000 Danville, Va.

2,950,000 Wichita Falls, Tex.

1,440,000 Norfolk, Va.

•

3,980,000 El Paso, Tex.

1,355,000 Biloxi; Miss.

r

950,000 Laurel, Miss.

765,000 Buford, Ga.

805,000 Lumberton, N. C.

705,000 Camilla, Ga.
680,000 Cartersville, Ga.

3,025,000 Norfolk, Va.
2,990,000 Norfolk, Va.

3,620,000 Trenton, N. J.

1,045,000 Stephenson Co., 111.

1,245,000 Murfreesboro, Tenn.

705,000 Douglas, Ga.

2,390,000 Lynn, Mass.

3,020,000 Pontiac, Michigan

Scale 2

910,000 New Iberia, La.

2,520,000 Tuscaloosa, Ala.

3,085,000 Austin, Tex.

"

2,555,000 Newport, Ky.

$1,680,000 Waycross, Ga.

$3,200,000 Huntsville, Ala.

,

2,145,000 Atlantic City, N.J.

4,310,000 Columbia, S. C.

3,065,000 New Albany, Ind.

Scale 1-A

Scale 5

785,000 Virginia, Minn.

$

$1,890,000 Charleston, S. C.

$1,680,000 Fresno County, Calif.

$7,930,000 Hartford, Conn.

1,010,000 Union City, Tenn.

2,410,000

La Grange,

f

920,000 Borger, Tex

Ga.

730,000 Harlingen, Tex.

1,590,000 Marietta, Ga.

$10,265,000 New York City, N. Y.
1,000,000 Port Chester, N. Y.

7,920,000 Richmond, Va.

t

1

COUPON RATES, MATURITIES AND YIELDS

r
1

'

«

i

Scale 1A

Scale 1

Due

Scale 2

'
.

1.80

1.20

1.25

1.25

1.25

1.30

1.30

1.30

1966

1957

1.35

1.35

1.35

1.40

1.40

1.40

•1967

1958

1.40

1.40

1.40

-1.45

1.50

1.50

1959

1.45

1.45

1.45

1.50

1.55

1960

1.50

1.50

1.50

1.55

1.60

-

-

•'

1.55

1.55

1.55

1.60

1.65

1.60

1.60

1.65

1.70

2.25

2.30

2.35

2.40

2.45

2.35

2.35

2.375

2.45

2.50

2.50

1.80

1.85

1.90

1.95

1.95

1976

2.375

2.40

2.45

2.50

2.55

2.60

1.85

1.90

1.95

2.00

2.00

1977

2.40

2.45

2.50

2.55

2.60

2.65

1.90

1.90

1.95

2.00

2.05

2.10 "

1978

2.45

2.50

2.55

2.60

2.65

2.65

1969

1.95

1.95

2.00

2.05

2.10

2.15

1979

2.45

2.50

2.55

2.60

2.65

/1970

2.00

2.00

2.05

2.10

2.15

2.20

1980

2.45

2.50

2.55

2.60

2.70

2.70

2.70

2.75

•

1.70

1.80
•

.1971

.

2.05

.

2.10

1972

,

1.75 A'

1.75

Scale 4

2.25

1968

1,65

1.60

Scale 3

'

,

1.60

1962

;

Scale 2

Scale 5

1.85

1.55

1961

1.70

1.90

1.75

1.20

1.65 "•

1.90

1.75

1.15

1.65

1.85

1965

1.15

Scale5

Scale 1A

1975

1.85

1.20

1.15

1.65

1.85

1.75

1.10

1963

1.80

1,70

1.10

Scale 1

1974

Scale 4

1.70

1.05

Due

Scale 3

1964

1.05

2Vz%

2%%

v

Scale 2

1.10

1.05

1956

-

/.i

»

■

Scalf t A

Scale 1

Due

Scale 5

Scale 4

Scale 3

1955

*

-

-

2Vi%

1954

*

•

■

2Vz%

2%%

2.05

2.10

2.15

2.20

2.20

•

r

2.15

2.50

2.55

2.60

2.65

2.75

2.75

2.50

2.55

2.60

2.65

2.75

2.75

1981

2.50

2.55

,

2.35

2.30

2.25

2.20

2.15

2.60

1982

2.30

'

1973

2.70

2.65

1983

2.25

2.25

2.15

2.10

„

' • * '

<

'

-•(
interest payment date on and after ten years from date of the Bonds as a whole, or in part in inverse numerical
accrued-interest to the date of redemption plus the following premiurfis: 4% if redeemed on or before 15 years from date;
or before 20 years from date;
if redeemed thereafter but on or before 25 years from date; and 2% if redeemed thereafter.

The Bonds of each issue will be redeemable on any
•;

'v

order, at A redemption price of par and

.•

3% if redeemed thereafter but on

The above Bonds

are

offered when,

as

and if issued and received by us, and subject to prior sale and approval

Descriptive Circular

t

Chemical Bank & Trust Company
The Philadelphia

*•

Mercantile Trust Company

National Bank *-

St. Lout

American Trust Company

'

Incorporate

;

Newark

Swiss American Corporation

Shearson, Hammill & Co.

'■

,

.

'

,

'

Newark

■

\

Baker, Watts & Co.

Louierilte

Incorporate

Scott Horner & Mason, Inc.
'

G. H. Walker & Co.

'

Dempsey-Tegeier & Co.

Bacon, Whipple & Co.

Ernst & Company

Fulton, Reid & Co.

in Dallas

of Birmingham

.

Inc.

,,

Fahey, Clark & Co.

of Memphir

The First National Bank

1

.

The Provident Savings Bank & Trust

Company

Ball, Burge & Kraus

Chas. W Scranton & Co.
i

A. Webster Dougherty & Co.

Foster & Marshall

Merrill, Turben & Co.

Third National Bank
Nashville

First American National Bank
NaehrilU

Incorporated

W. R. Stephens Investment Co.
Incorporated

22,1953.

Laird, Bissell & Meeds

Thayer, Baker & Co.

Janney & Co.

Kaneae City,

,

Mo.

Stifel, Nicolaus & Company
Incorporated

National Bank of Commerce
of Seattle

The Ohio Company

M. A. Schapiro & Co., Inc.

Hannahs, Ballin & Lee
The First Cleveland Corporation

New Rochelle Trust Company

R. L. Day & Co.

City National Bank & Trust Co.

of New York

Incorporated

Incorporated

Schmidt, Poole & Co.

■

The Public National Bank and Trust Company

Smlthfield, N. C.

Johnson, Lane, Space and Co.

'

D. W. Rich & Company

Cincinnati

Robert W. Baird & Co.,

The Illinois Company

Harvey Fisk & Sons

of Saint Paul

•

Carl M. Loeb, Rhoades & Co.

Boettcher and Company

First-Citizens Bank & Trust Company

,




'

The First National Bank

New York Hanseatic Corporation

First National Bank

B. J. Van lngen & Co. Inc.
Branch BankingN.C.Trust Co.
&
Wllaon,

Barr Brothers & Co.

Blunt Ellis & Simmons

Bartow Leeds & Co.

Mercantile Trust Company

The First National Bank

J. S. Strauss & Co.

The Robinson-Humphrey Company,

Lazard Freres & Co.

Seattle-First National Bank

of Baltimore

Citizens Fidelity Bank & Trust Co.

Bank ofIlS. A.
America C.J.Devine&Ce.
N.T.

Glore, Forgan & Co

Wlnaton-Salem", N. C.

Weeden&Co.

^

Brown Brothers Harriman & Co.

Mo.

New York, N. Y., January

Harris Trust and Savings Bank

Wachovia Bank and Trust Company

Trust Company of Georgia

National State Bank

A. M. Kidder & Co.

GGckenhaus & Lembo

Commerce Trust Company
Kaneae City,

,

,

Hayden, Stone & Co.

Portland. Orefon

W. H. Morton & Co.
Incorporated

Fidelity Union Trust Company

of Chicago

The First National Bank
.

F. W. Craigie & Co.

of Weatcrn Naw York

Domimck & Dominick

The First National Bank

^

^

.

The Marine Trust Company

request.

Salomon Bros. & Hutzler

Kidder, Peabody & Co.

'

•

Dick & Merle-Smith

Blair, Rollins & Co.

Son Frencieco

Bache&Co.

The Northern Trust Company

The Chase National Bank

Bankers Trust Company

upon

of legality by Bond Counsel.

First National Bank
of Mlnneapolia

Northwestern National Bank
of MlnneapoUe

Union Trust Company of Maryland
Baltimore

Watkins, Morrow & Co.

A. G. Edwards & Sons

Marine National Exchange Bank

The Milwaukee Company

Model, Roland & Stone

of Milwaukee

The White-Phillips Company, Inc.

Wood, Gundy & Co., Inc.

3

The Commercial and Financial Chronicle

...

(4C3)

Electric Co.

Louisiana

Central

—

Memorandum

service

Co.—Analysis—Ira Haupt & Co.t 111

Power

Maine

operating

Total

Y.

1952

Massachusetts—45th edition of booklet of
up-to-date financial statistics of Massachusetts, its counties,
cities, towns and district—Tyler & Company, Inc., 11 High

Chilean
Wall

Report—Bache & Co., 36

Situation—Special

Copper

Street, New York 5, N. Y.

list—G. H. Walker &

Stocks For Investors—Selected

Common

of factors likely to dominate business and market
outlook during the next 12 months plus a study entitled
"What is the Best Stock Average from a Practical Stand¬

Stout & Co, 50

praisal

231 South La

111

N. Y.

Hogle

A.

Area—Survey—J.

Intermountain

Miller

Heller & Co, 30

Risk Equities—Bulletin—Stanley

Yield

Pine Street, New York 5,

'

Booklet—New York Stock Exchange, New

.

seatic Corp, 120

Broadway, New York 5, N. Y.

ysis of 17 New York City Bank Stocks—Laird,
Meeds, 120 Broadway, New York 5, N. Y.
1952

anal¬
Bissell &

City Bank Stocks—Year-end comparison and

York

New

Analysis—Booklet—A.

Stock

Bank

is

a

and

York 4,

market performance over
Quotation Bureau, Inc., 46

120

Whitestone
to

Stock

per

dum

in

1953

indicator

NSTA

market

;

Feb. 13,
'•

>'•

•

of stock

market

-

Team—

*

annual

Hotel Statler.

Krisam
*

able is

a

memorandum

on

Louis

San

Francisco

Also avail¬

(Capt.),

Sullivan, Murphy, Searight

Greenberg,

Werkmeister,. Leinhard

Tisch,

:

(Capt.), G. Montanye, Voccolli, Siegel, Reid__
Murphy (Capt.), MansOn, D. Montanye, O'Mara, Pollack,

Also available

Railway

and

are

Gavin

Co, 115
bulletins

Willys-Overland

Chemicals Corp.

—

Analysis

—

Kalb,

9
9

:

.

9
6
5

(Capt.), Frankel, Strauss, Nieman, Bass, Krassowich
Donadio (Capt ), Demaye, Whiting, O'Connor, Rappa, Seigas
Bean

Craig, Fredericks, Bies, McGovern
Goodman (Capt.), Smith, Valentine, Meyer, Farell, Brown—
Serlen (Capt.), Gersten, Krumholz, Rogers, Gold
(Capt.),

4
4
4
3
3
0

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

Walt Mewing

Bridge Company of Weslaco, Tex.—Analysis—Garrett
Company, Inc., Praetorian Building, Dallas 1, Texas.
Memorandum

—

(Chicago, DL)

Association
the

winter meeting at

Drake Hotel.
Feb.

.

<

(Philadelphia, Pa.)

20, 1953

Investment Traders
ter

,

Association

Philadelphia annual Mid-Win¬
Dinner at the Benjamii^ Frank¬
Hotel.

lin

(Phila., Pa.)
Financial
Analysts Societies sixth annual
convention at the Bellevue-StratApril 12-15, 1953

National Federation of

^.--213

Walt Bradley

Abe

Hemphill, Noyes & Co.,

Art

212
202

Strauss

Burian

April 30-May 1, 1953
(St. Louis, Mo.)

Duke Hunter
Hoy Meyer
Will Krisam
George Leone

223-208
216

Ernie Lienhard

Street, New York 5, N. Y.

5 Point Club

Point Club

Hoy Meyer

Street, New York 5, N. Y.'

—

;.

Investment Bankers

of America

of

at the East Room

Schroeder.

Feb. 13-14, 1953
:

Wis.)
Mid-

Club

Bond

ford Hotel.
200

Audio Devices, Inc.—Analysis—Peter Morgan & Co, 31 Nassau

Baker-Raulang Co.

the Hotel

of

_'—______—" -4.:

_____

Mewing (Capt.), Bradley, Weseman, Hunt, Gronick, Huff

Growney

Motors, Inc.

Attapulgus Minerals &

Points

;

Burian

Central & South West Corp.

Broadway, New York 6, N. Y.

■

Ghegan, Jacobs, Gannon,-Cohen

(Capt.)

Leone

:

1953 (Milwaukee,

Milwaukee

Winter party

Meyer (Capt.), Kaiser, Swenson, Frankel, Wechsler, Barker

Armco Steel Corp.-r-Bulletin—J. R. Williston. Bruce &

Wall

.

Hunter (Capt.), Klein, Weissman,

Corby
*

OF NEW YORK

.

cycles, projected to 1990—ask for

*

ASSOCIATION

Security Traders Association of New York (STANY) Bowling
League standing as of Jan. 22, 1953 is as follows: «
,
:
:
i'

for

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

14

1953 (Detroit, Mich.)

dinner at the

—

mill &

P

Plaza HoteL

the Sheraton

Detroit Stock Exchange

•'

SECURITY TRADERS

the

of

.

&

Traders Asso¬

annual Winter Din¬

29th

at

annual

Club.

1953 (Boston, Mass.)

Feb. 11,

Goodbody & Co, 115
Also available is a memoran¬

Anchor, Hocking Glass Corp.—Memorandum—Shearson, Ham-

and

meeting at the Mid-Day

—

Chart C).

B

Chicago

of

Club

Bond

ner

Study of Cycles, 9 East 77th Street, New York 21, N. Y. (plus

Voorhis &

1953 (Chicago, HI.)

Feb. 11,

Feb. 11,

Dairies.

Foremost

'"i

St.

election.

nual

•

Exchange an¬

Stock

American

,

Bank—Circular—Homer O'Connell & Co, Inc.,
Broadway, New York 5, N. Y.

Co, 120 Brpad-

market trend

Brochure

—

Ahead—Analysis

chart

*

i

York: City)

57; N. Y.

Own

on

Traders

Security

Feb. 9, 1953 (New

Walston, Hoffman &

—

at

Me.)

(Kansas City,

City

Boston Securities

What's Ahead?—10 reports a year by Edward R. Dewey sent
to those contributing $10 a year to the Foundation for the

on

Analysis

Firms,

-

dinner
f-:1/

Association Winter Dinner.

Boston 9,

13-year periodFront Street, New

1953—Freehling,
Meyerhoff & Co, 120 South La Salle Street, Chicago 3, 111.

a

Kansas

current issue of "Business
and Financial Digest"—Loewi & Co, 225 East Mason Street,
Milwaukee 2, Wis. Also in the same issue is a discussion of
\visconsion Bankshares Corporation.

year

Broadway, New York 6, N. Y.

What's

—

Associa¬

Exchange

President's

Jan. 29, 1953

^V

*•'.

■* *

-

Leone's Restaurant.

U. S. Vitamin Corporation—Data in

by first class mail; $26.50
by airmail—Marc de Goumois, 7-03 154th Street, '

year

Stocks

annual

Analysis and review of the Cement

—

Stock

of

tion

Wall Street

of

Division

,

—

service—$25.00

City)
Sales-Tabulating

(New York

Purchases and

Supply—Memorandum—Cruttenden & Co, 209
Salle Street, Chicago 4, 111. "

Field

Investment

Jan. 29, 1953

...

ciation

Market Deviations

weekly
per

.

New York.

New York 5, N. Y.

Stock

.

a

Pace Setters for 1953—Bulletin—Sutro Bros. &
way,

Sutro & Co, 407 Mont-

Calif.

Rye National

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

—

Goodwin, 35 Wall Street, New York 5, N. Y.

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

yield

Analysis

Rohr Aircraft Corporation

Also available

11 Wall Street, New York 5, N. Y.
survey of Tobacco Stocks.

South La

...Mass.

.

1953—Survey—Thomson & Mc-

Kinr.on,

—

Industry—Lerner & Co, 10 Post Office Square,

York 5, N. Y. Also available is a bulletin
Guaranty Trust Company.

Outlook for Common Stocks in

Fuel

Riverside Cement Co.

Wall Street, New
on

..

Kidder & Co., 1

M.

River

Street, San Francisco 4,

Company—Analysis—Straus, Blosser &
McDowell, 135 South La Salle Street, Chicago 3, 111. *
*
Packard-Bell Company—Bulletin—J. R. Williston, Bruce &
Co, 530 West Sixth Street, Los Angeles 14, Calif. Also avail¬
able is a bulletin on Title Guarantee and Trust Company.

quarterly comparison of leading
companies of New York—New York Han-

trust

In

Pacific Power & Light

New York Bank Stocks—83rd
banks and

EVENTS

Mountain Fuel

York 5, N. Y.

Street.

COMING

.

Co.—Analysis—Sincere and Company,
Salle Street, Chicago 4, 111.

Co.—Analysis—Aetna Securities Corp,
Broadway, New York 6, N. Y.

gomery

and Cash Dividends—

Investment Facts About Common Stocks

Also available is
.

Manufacturing

Mississippi

Co, 507 West

&

Angeles 14, Calif.

Sixth Street, Los

.

.

International Harvester

N.'Y.

Company Incor¬

Canada—Review—Ross, Knowles & Co,

bulletin

a

with

afifliated

now

porated, 647 South Spring

Inc.—Report—Eisele & King, Libaire,

Street, Toronto 1, Ont, Canada.
on Canadian Natural Gas.

330 Bay

is

California

Broadway, New York 4, N. Y.

General Petroleums of

point" and current projections of buying levels—$5 for these
special reports and weekly bulletins through March 31—
Anthony Gaubis & Company, 37 Wall Street, New York 5,

Calif.—Edwin

ANGELES,

Davis

A.

First

Fiduciary Management,

Outlook—Ap¬

Controlling: Factors in the Business and Market

Chronicle)

(Special to The Financial

LOS

5, New York.

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

High

With First California

Company—Analysis—H. Hentz & Co,
60 Beaver Street, New York 4, N. Y.
Delta Air Lines-Chicago and Southern Air Lines—Review of
merger—John H. Lewis & Co, 63 Wall Street, New York
Hudson

and

Delaware

was

$4,125,200.

Street, Boston 10, Mass.

reports—Blyth & Co.,

Stocks—Analysis of 1952 year-end

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

period

the

for

net

and

$25,178,964,

were

income

of

Commonwealth

Electric Co.

ended Oct. 31*

12 months

for the

York.

of

revenues
&

Gas

Iowa-Illinois

Utility—Special study (ask for Highlights No.
19)—Troster, Singer & Co, 74 Trinity Place, New York 6,

Central Public

Bank

351,—

is estimated at

area

468.

Broadway, New York 6, N.

New

and for its gas

timated at 291,810,

ice Co.

Central

is es¬

pany's electric service area

Rauscher,

—

Co, Mercantile Bank Building, Dallas 1, Texas. Also
available is a memorandum on Southwesten Electric Serv¬

Pierce &

1953

Thursday, January 29,

St.

Louis

"

Municipal

*

,

Dealers

Group annual outing.
May 7-8,1953 (San

200

Antonio, Tex.)

Investment Bank¬
Association of American

Texas Group
Baltimore
50

Transit

Broad

Canada

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

Southern

Limited—Report—Leason & Co,
corporated, 39 South La Salle Street, Chicago 3, 111.

In¬

ers

part of the 1953 construction pro¬

Kuhn, Loeb & Go.

Iowa-Illinois Gas & Electric Co.

Offer

Utility Bonds

Kuhn, Loeb & Co. is offering to¬
•

day

Reprinted—
Special study of

Central Public
Company has

Utility

just declared initial semi-annual dividend

of

.40

Cents,

$8,000,000 Iowa-

(Thursday)

day

on
Net

possibly Tax Free.

Gas

Electric

&

Co.

first

principally in the bus¬
generating, transmitting,
distributing and selling electric
iness

of

its bid of 101.79%.
proceeds from the sale of

Ask

for

"Highlights" No.

19

Troster, Singer & Co.
Membert: N.

74

7.

Security

Dealert A»$ociation

is

distributed

in

the

foregoing

Trinity Place, New York 6, N. Y.




communities, in Cedar Rapids and
Ottumwa, Iowa, and in several
smaller

preferred shares, will be applied
by the company to the retirement
of

$6,000,000

of

bank

loans

in¬

curred in connection with expend¬

itures under its
program,

1952 construction

and to the financing of

Security Traders Association of
the Waldorf-

New York dinner at

Astoria.

natural gas. Electric energy

the bonds, together with proceeds

60,000 cumulative

HoteL

(New York City)

energy and

from the sale of

•

May 8, 1953

is engaged

distributing and selling
is dis¬
mortgage bonds, 3%% series due tributed in Rock Island, Moline
1983, at 102.384% and accrued in¬ and East Moline, 111.; and Daven¬
terest, to yield 3.25%. The firm, port, Fort Dodge and Iowa City,
bidding alone, won award of the Iowa;
and in portions of sur¬
issue at competitive sale on Tues¬
rounding territories. Natural gas
Illinois

Spring Meeting at the Plaza

gram.'

communities.

The

com¬

pany also sells electric appliances
in its electric service territory and
gas

appliances where gas is dis¬

tributed.
census,

On the basis of the 1950

the population of the

com¬

May

13-16,

1953

(White Sulphur

Springs, W. Va.)
'

Investment Bankers Association

America

of

Spring

meeting

at

the Greenbrier Hotel.

Sept 14, 1953 (Sun Valley, Idaho)
National Security

Traders Asso¬

ciation 20th Annual Convention.
Nov. 29-Dec. 4, 1953

(Hollywood, Fla.)
Investment Bankers Association
of America Annual Convention at
the

Hollywood Beach HoteL

Number 5190

Volume 177

performance

Vital

gold

of

in

this

re¬

spect demands that its production,

Aspects

By HAROLD KING, Ph.D.

At this stage of history, it

is

to

interest

the

United

the

of

Dr. King, commenting on rumors

the citizens of other
countries, that the world market
for gold adjust itself to the mone¬

of

tary

States,

in gold

price, lists arguments supporting
this move,

and concludes these

arguments "are very impressive,
but wide of the mark."
of interest

Holds it

U. S. that world

to

is

it

ence,

that

this

ridiculous

ratio

is

to

not

assume

much

market for gold adjust

itself to
nation's monetary needs and "not
to current price of gold in Macao"

and

needs

that

our

this

of

not

country,

policies

monetary

made subordinate to

be

the

bility at $35

tual economic

worth,

realty values do
hattan.
and

Its

on

Nevada's

as

those of Man¬

industrial

leadership,

tually considered

foregone con-

a

:

elusion, and
the
argument
centers

now

value determinant.

sufficient

lion

to

The
in

warrant

decline

of

$350.1

for

the first

the

role

determines

monetary

gold is to play, it

deter¬

so

much?".

The
in

ircles

c

which

these

rumors

travel
New

not

are

Dealish, but
conservative.

And

At present
of

our gold stock
$23 billion, and de¬

mand deposits stand at about $111

billion. Under

our

ing, and

reserve

the

Two With du Pont

with which

we

have had

experi¬

York

LOUIS,

associated with

&

.

of

members

31

Co.,
the

du

Milk

New

Mo.—Theodore
Bertram

V.

C.
,

Jones

Street, members

of the

Exchange.

members of the New
Francisco

San

and

B.

Midwest

Mr. Jones in the

ORLEANS,

Patterson

and F.

with

now

La.—Thomas
A.

Puissegur

Renyx, Field & Co.,

Incorporated.

past was in the investment busi¬
ness

Estabrook Adds to Staff

in Chicago and Denver.

and
(Special to The Financial Chronicle)

Boston

Corey
D.

Stock.
was

Exchanges.

With Waddell & Reed

Miss

previously with Irving

LeBeau.

Mr.

Foy

(Special to'The Financial Chronicle)

with

was

BOSTON, Mass.—Russell E. An¬

v

is

with-Waddell

Richard J. Buck & Co. and R. H.

Green

Johnson & Co.

Incorporated.

&

is

drew

brook

JERSEYVILLE, 111.—William E.

now

&

of

members

Reed,

affiliated with Esta¬

the

Boston Stock

'•

15

Co.,

State

New

Exchanges.

surely,

type of
appointments
made by Pres-

ident

lend weight to an

Eisen¬

hower

King

do

New Issue

not

assumption that

is about to embark

the nation

on

$15,000,000

another funny money spree. Para¬

doxically* it is the idea that we
to adopt a sound monetary

are

system, which supports these re¬

State of New Jersey

ports.
What Underlies These

(1) Our
ened

be

so

that

hold

some

consonant

-

with

the

recognize same by rede¬
fining downward the dollar in
terms of gold content. Those who
this view

contend

would

redefinition

dollar

our

.

..

''

;

\

••

•

,

1, 1953. Due February 1, 1955-68, inclusive. Bonds maturing on or after February 1, 1966 are callable at par
whole or in part in the inverse order of their numbers, on February 1, 1965 or any interest pay-

Dated February

and

accrued interest, as a

payab'e at The National
Newark, New Jersey. Coupon Bonds in denomination of $1,000, exchangeable for fully
registered Bonds. Coupon and registered Bonds interchangeable.
'

thereafter.

ment date

State Bank of

that

Principal and semi-annual interest (February 1 and August 1)

i

be

not

Interest Exempt

rioration which has already taken

allowed

' '

3%, \xk% and 1%% State Teachers' College Construction Bonds

inflationary, but merely an ac¬
knowledgment of the dollar dete¬
place.
(2) Since

'

L.

"

it would

to

adhere to

■

.

money

merely

such

■

has been cheap¬
much during the past two

decades

facts

Rumors?

depreciate, it is "un¬
realistic," so the contention runs,
for the Treasury to offer as much
as
1/35 of an ounce of gold for

from Federal Income Taxes under Existing Statutes and Decisions

Principal and Interest Exempt from Taxation by the State of New Jersey or by any
County, Municipality or other Taxing District of the State

has been

to

Funds

our opinion, as Legal Investments for Savings Banks and Trust
in
and New Jersey and for Savings Banks in Massachusetts and Connecticut

Eligible, in

New York

dollar presented,
and the
adoption of domestic convertibil¬
each

ity at this price would immedi¬
ately threaten dissipation of our
.gold

Without

reserve.

AMOUNTS, MATURITIES, COUPONS AND YIELDS OR

domestic

Due

convertibility, of course, we can¬
not have sound money for several
reasons,

that

1,075,000 each February 1, 1957-68, inclusive
Yields

Yields
Due

Coupons

long as their money is irre¬
deemable, the stranglehold of the

1955

government on the personal affairs of the citizens is not broken.

.

PRICE

$1,050,000 each February 1, 1955-56, inclusive

not the least of which is

3%

1956

3

as

Due

Yields

Coupons

or

Due

Price

Coupons

or

Price

'

(3) Reports have it that gold
is selling on the "grey" markets
of the Hong Kong-Macao area,
and elsewhere, upwards of $52 per
ounce.
This, it is argued, is in¬

1964

1.40%

1.65%

1%

1.70

iy2%

1.20

1961

iy2.

1962

V/2

1.55

1966/65

l3/4

1963

V/2

1.60

1967/65

l3/4

1.80

1968/65

13/4

1.80

1%

1.25

1958

V/2

1.30

1959

1%

100 (price)

1.35

1957

Vk%

1.10%

1960

1965

■

.

100 (price)

(Accrued interest to be added)

dicative of the "real" worth of the

'

'

metal.

(4) The gold stock of the United

\

States

declined

the

of

each

gold

earmarked

counts

tive

went

foreign

for

five

down

as

and

ac¬

consecu¬

a

starting last July,
possible flight (?) of

the precious metal;1

These

arguments

pressive,
the

are

mark.

they fall wide
The points which
are

of
re¬

not necessary
that its price be
reset with mathematical precision

time

to

time,

in

line

value.

On

with
the

contrary, it cannot function effi¬
ciently in its monetary role except
its price is held constant




The Chase National Bank

York

Ripley & Co.

First National Bank

Top

F. S. Moseley

Chemical Bank & Trust Company The Northern Trust Company

The First Boston Corporation

Incorporated

.

.

i

Estabrook & Co.

Kidder, Peabody & Co.

Blyth & Co., Inc.

mankind lies within its monetary
functions.
For this reason, it is

from

Harriman

the follow¬

(1) The greatest contribution
gold can make to the destiny of

its assumed "real"

The National City Bank of New

im-

very

but

quire recognition
ing:

as

when,

months,

indicating

;

are offered, subject to prior sale before or after appearance of this advertisement, for delivery
if issued and received by us and subject to the approval of legality by the Attorney General of the
State of New Jersey and by Messrs. Hawkins, Delafield& Wood, A ttorneys, New York City.

The above Bonds

last

five Imonths of 1952, and stocks of

Chas. E.

& Co.

Weigold & Co.

Bacon, Stevenson & Co.

R. W. Pressprich & Co.
First of

Michigan Corporation

Incorporated

Eldredge & Co.

A. Webster

Dougherty & Co.

MacBride, Miller & Co.

Van Deventer

Brothers, Inc.

incorporated

Camden Trust Company
January 29, 1953.

Cook & Quinlan

Street,

York

the

Harold J.

Stock

(Special to The Financial Chronicle)

NEW

are

Stock

associated

Co., 425 Montgom¬

Two With Renyx, Field

ropolitan St. Louis Co., 718 Locust

Pont,
Street,

York

and

have become associated with Met¬

BOSTON, Mass. — Mildred K.
Corey and Robert C. Foye have

become

Exchange. Mr. Carson was previouly with Raggio, Reed & Co.

(Special to The Financial Chronicle)

Homsey

have

Street,

ery

Metropolitan

St, Louis

(Special to The Financial Chronicle)

system of bank¬
percentages

Wilson

with Davies &

Two With

ST.

become

excess

FRANCISCO, Calif.—
George F. Carson and Wiliam G.

trading

the

months of the

seven

Dickman

Homsey

(3)

of

department.

gold for the five months starting
July amounted to only $199.2

mines,

is in

manager

last

worth—all

essentially,
its
intrinsic
"grey" market quota¬
question "how tions notwithstanding.
the

around

(Special to The Financial Chronicle)

SAN

that Mr. Remington has been ap¬

pointed

The reduction in earmarked

year.

Two With Davies & Co,

The corporation also announced

mil¬

gold stock during the

our

Midwest Stock (Exchanges.

est in the corporation.

consterna¬

last five months of 1952 compares
to an increase of $663.7 million

As the United

States

ORLEANS, La.—Kent H.
Courtney is now affiliated with
Howard, Weil, Labouisse, Friedrichs & Co., 222 Carondelet St.,
members of the New Orleans and

And for

gold hoard, place the United
million.
in a position virtually to

price determine what the actual eco¬
of gold is to be increased
this nomic value of gold shall be. This,
year. In some quarters this is vir¬ for the reason that demand is a

NEW

PHILADELPHIA, Pa. — Wood¬
those who prefer to compare our
gold stock to the money in circu¬ cock, Hess, & Co., Inc., 123 South
Broad
Street, members of tne
lation, the latter exceeds the for¬
Philadelphia-Baltimore Stock Ex¬
mer by only about $7 billion.
(4) The "flight" of gold has not change, announce that Clifford G.
been
of an order of magnitude Remington has acquired an inter¬

price of
tion.
Circumstances be¬

gold in Macao.
ing such as they are, prices pre¬
vailing on such markets shed
about as much light on gold's ac¬

ounce.

per

the

that

abound

(Special to The Financial Chronicle)

Of Woodcock, Hess

States

Rumors

Joins Howard, Weil Staff

Remington Heads Dep

more

price, be the dependent vari¬ than adequate to support domes¬
able.
tic, as well as external, converti¬

(2)

9

(469)

not

Of Gold Price
impending increase

\

The Commercial and Financial Chronicle

...

Stubbs, Smith & Lombardo, Inc.

and

10

The Commercial and Financial Chronicle

(470)

The Investor Looks at 1953

.

.

.

Thursday, January 29, 1953

Economic Outlook for

Equities

Hodson &

Company
60ih Anniversary

mMmmmmm.
Charles

We think

a
good many dealers and institutions know it
already — that very often the fastest way to find the
buyers or sellers you want is through Merrill Lynch —
particularly when it comes to large blocks of stock.

Because here
in

a

wire

matter

at

Merrill

of minutes

Lynch
.

*.

.

linking 107 offices from

make your

interest in

a

we can canvass the country
have 65,000 miles of private
coast to coast

.

.

.

institutions, thousands of people.

If you think nation-wide coverage like this can
make use of our services some time soon?
to

offices

.

There's

;

flash
.

no

any

realistic hid

or

offers

keep you advised of the
charge, naturally. *




always

.

.

not

happy

can

security known to hundreds of

to

help, why
We'll be

each of

progress

we

our

make.

H.

L)owd

Volume 177

Number 5190

.

.

.

The Commercial and Financial Chronicle

11

(471)

halted

Major Issues of 1953
•-

1

'

*

-

»

-

'

/

_

to other nations that

4

.

confident

Citing recent downward price trends in agricultural products,
Illinois farmer's spokesman looks for agricultural
groups to
renew efforts to secure
legislation on national programs. Lists
as

issues

the national

on

system
other

adopt

new

De¬

zation

of security for farmers and urges more depend¬
efficient production and individual initiative. Concludes

agricultural prosperity is

closely related to general

more

perity than to governmental action.
By
of

all of

now.

the

fact

us

that

conscious

are

changes in

demands

Big

political

pros¬

with all

its

ant

en¬

is

a

The

all

America today
"what will

sion

tion

in

the

on

side

85%

a

Products

been

They
can

These

fraud

a

not

are

.

de¬

and

now

be effective in control¬

peacetime

price

and

wage

Their only apparent pur¬
is to conceal inflation and to

Federal agency

very

11,000

terms

the

of

sell

excess

O.P.S.

price

United States is lower than in any

to also

serve

other

are

in the world and
lower than any other time in the
history of America. This is a re¬
country

One
needs

of

of

We, in America, are also in needl
foreign markets. This is par¬
ticularly true of many of our agri¬

mo¬

be¬

cultural

the

products
If we

per

great

continuing
for ample
O.P.S. controls ham¬
nation is

production

and

should

plans to increase

check

like to develop

the

be

.in

those factors and proposals which

Let

1953.

According to the Bureau of
Agricultural Economics, the par¬
ity price ratio-dropped last month
to 96, which, is the lowest level

Farmers believe that many func¬
tions of
government should be

formed". at

for American

good

are

generally

April, 1950. Prices received
farmers fell eight points in
December to a level 36 points be¬
by

that

portance of agriculture

hand,-prices paid by farmers

sumer

re¬

and

others now
the
national

business,

has

Farm

been

one

of the products

as

a

worthwhile

should

be

of .the

various

kept

mental

programs with which we
experimented.
These pro¬
grams have included the Federal
Farm Board's storage and stabili¬

zation

the

efforts, the

normal

cal trade

legislation which has en¬
and
per¬ couraged a substantial increase in
level foreign.. trade.
I am \ convinced

acreage control

of the thirties, the

programs

leading supporters of the recipro¬

price

granary,

marketing

agreements.

Continued
v

.

..

an

offer to sell

The offer is made

.

nor a

solicitation of

on

,

t

.

,

New Issue

con¬

of labor and

has increased. Modern
agriculture is a very substantial
user of modern,
industrial prod¬
ucts. Chicago, is the agricultural
capital of America and the world.
industry

points lower 4han the December,
1951, ratio. Farm prices have de¬
clined for four consecutive months.

In all probability, the agricultural
in 1953 will be dominated

A

scene

$50,000,000

percentage of the com¬
industry of the city of

high

and

merce

by farmers' efforts to

cope with
Chicago depends directly or in¬
increasingly unfavorable phase directly upon agriculture. We canthe price- cycle. Historically, not have long-sustained national
farm prices rise faster than other economic health unless all major
-prices during periods of inflation segments,
including
agriculture,
an

<

-

•

also

down

go

more

quickly
prices

in

are

and drop further than other

Issues

ward trend in farm prices has any
long time significance of interest
-to you, as credit men, is for you

*

farm

stable

oy

prices,
even

national

/''

"

of

gram',
two

I

examining this

would

premises

-essential for

like

that

I

to

i

wi»l

iness

The

these .issues

also, to

manner

is

decided

future

of

our

free

enterprise system in this country.
Many people assume that the re¬
cent
pationa!
elections, decided
This is

The

a

Copies of the Prospectus
dealers

other business

in America.

in

a

decision would result in

As

the

any

Harriman Ripley & Co.

possible

1953.




fzc^eu^ys^cfrof the undersigned and other

*

scehe, What are

major issues?

Com¬

.

'

The onward
"

nism

The First Boston

march

can

Smith, Barney & Co.
A. E. Ames & Co.

Corporation
.

,

the

4

of commu-

throughout the world

Corporation

The Dominion Securities

(

McLeod, Youngj Weir, Incorporated

\.

Government Controls,;

Wood, Gundy & Co., Inc.

Incorporated

organized agriculture > views

national

i *Aa

28,

obtainable

na-

important questipns. Long delay
in meetipg the issue and making

are

address-*.by Mr. -Shuman before
tbe: National
Credit
Conference <►# f- the
American Bankers Association, Chicago,

ape

lawfully offer these securities in the respective States.

opportunity to decide these

pro¬

operative in

may

dangerous

change

our

are

as

tional Administration merely gives
us the

>

highly competitive bus¬
having aU Of the business

III-, January

Price 96.75% and accrued interest

considerable extent,

a

the

these issues.

a

factors that

February I, IMS

of the

understanding of "continuation of the policies of re¬
agricultural problems and the im¬ cent
years which have led down
portance of .the proposals-of or¬ the road toward a' nationalistic
ganised agriculture. The first of state and ' a destruction of
/ our
these premises
is that farming freedom.

today is

Due

agriculture but

assumption.

•

establish

believe

Dated February I, 1953

great economic signifi¬

not only to

which

;

'

These is¬

thereafter.

soon

determine

agriculture for America. How¬

ever* before

have

in
-

; '

T think it may be of interest fpr
this group of business leaders to
look for a moment at this'program

some

'

which

to our entire nation.

programs

.

or

cance

that they have formed for _the
guidance of their national leader1

ship.

look at

now

1953

of operation,, will result in
and increasing
their efforts tp secure legislative
the

us

sues

together
increasing

farmers renewing
on

Let

America

today
face
America and must be decided in

costs

action

-

Facing

great -issues

and the economists to determine.

Declining

balance
v '

good

with the rest of the economy.

during
deflationary
periods.
Whether or not the present down¬

with

relatively

'

Twenty-two Year 3lA% Debentures

.

and

:• (CANADA)

^

of

be

.

January, 29, 1953.

Incorporated

-

-

The

page

offer to buy these securities.

an

only by the Prospectus.

ever

supports

ex¬

This announcement is neither

in

govern¬

have

Bureau

of

designed
equality to

a

examine the relative

we

-•

you1 can

low December, 1951. On the other
main steady at 281% of the 191Q14 average. This was only three

the Federal Government. Federation

eliminated

think of
serve to prove this rule. While the
numbers of farm operators have
decreased very rapidly, the im¬

since

American

as

we

various

programs

This is

and

years,

with

economic

also good for agri?

are

culture. I believe that the few

ceptions

power of

bring

merits

monopoly controls
industry, agriculture, or labor.

The

and

farm

objective

World Trade
■

sjze

is that the things
and factors that adversely affect
agriculture are also bad for the
rest of America. In the same way,

,

in

of

agriculture.

cannot tolerate

20

experimented

kinds
to

international

our

than

more

have

^merica has been to

increase

wheat

as

to sell these

Farm Program

For

nation from the domination of

changes in supply and demand. We mind

completely eliminated. One of the
principal planks in Farm Bureau's
program for

such
are

have much to gain
by developing

Agri¬
culture is an industry of small
businessmen, whose welfare de¬
pends upon a relatively free move¬
ment
of
prices in response to

ceiling which tends
a price floor.

the

the

power, of

monopolistic labor groups.

as

our

in

a

our

prices

today because of the

production.

The second premise that I would
.

higher

production

world market.

labor organizations from the anti¬
trust
laws
should be
removed.

has approximately
employees and has had

dence to indicate that
many

to

products in the world market, we
monopoly practices exercised must be
willing to buy some for¬
few men who control some of
eign goods so that we can sell our
the
great industrywide national
excess production to them.
Agri¬
organizations. Through this dom¬
culture and other business
should,
ination, a few men now have the of
course, be protected from seri¬
power to control
the production
ous damage by use of the
escape
of
practically all of the essential clause rather
than attempting to
goods and services for our 150,avoid its application.
While the
000,000 citizens.
These men can
reciprocal trade treaties have re¬
and do shut down the
steel, coal, sulted
in some improvement in
petroleum, and other vital indus¬
international, trade, we have a
tries without regard for the na¬
long way to go to repair the dam¬
tional welfare.
age
done by the trade barriers
There is only one practical an¬ which
were erected
by all nations
swer.
The present exemption' of
following World War I. Farmers
by

con¬

and

working time
required to buy a given quantity
of food, the price of food in the

us look first upon the eco¬
nomic picture as it affects agricul¬
ture in this, the; first month of
-

control system.

continue

of

the

condition the American people to
a
controlled economy.
This one

There

creasing individual freedom, ra¬ sult of the dramatic increase in
ther than going in the direction agricultural efficiency during re¬
of
more
and more
dependence cent years. Farming is a business,
not a way of life.
upon a big Federal government.
Price Drops in Agricultural

..

should

methods

right of labor to or¬ and
cotton.
ganize, but they do not believe in

levels.
pose

competitive,

business.

lieve in

that improved

power

exercised by the great labor
nopolies.
Farmers certainly

gov¬

'

monopoly

today is that

controls

have

ling

in

rapid improve¬
agricultural produc¬
efficiency in the United

in

or

in¬

of

modern,
technical

continually

powers

business corporations
think of monopoly. How¬

ever, the greatest
in America

example of this type
is the O.P.S. price and

thing

or

we

Federal

nationalistic type of

We

assist other nations in

practically no effect upon the cost Legislation should be enacted to trade.
States. In terms of percentage of of
living or the cost of labor. In outlaw industrywide bargaining.
disposable income spent for food fact, there is considerable evi¬ Only in this way can we
protect

C. t». Sbuman
daily lives,
in our homes,
our businesses, and our factories."
Farmery, through their organiza¬
tions, can, and I believe will, play
a deciding role in helping to make

decision

for

through

tions

best

never

in the

tion

our

this

a

ment

gov¬

ernment

fibre

and

a

lusion.

occupations. Farming is in¬

been

nas

func¬

of

food

highly

the

on

proper

trols

deed

deci¬

o u r

wage

other

is

be

of

the

in

us

The

was engaged in agriculture
directly related services,
15% was in other oc¬
cupations. In 1953, these percent¬
ages are almost exactly reversed,
with 15% in agriculture supplying

faces

of

the

other

are

when

time,

centrali¬

ernment in America.

and

question
which

toward

In 1850, approximately 85%
the population of the United

while only

reality.
major

in

an

developing
production
threaten our freedom in America. so
that they can
gradually raise
Traditionally, farmers have fought their standards of living. How¬
monopoly power. Ordinarily, we ever, as
they increase production,
think of great financial institi^
they must have the opportunity to
There

pointing

States

attend¬

problems

greater

we

danger in

nations.

pattern

•

is

Monopoly Power

not

sound.

same

other words,

there

nation of all useless governmental
controls and all governmental ac¬
tivities which have been

.

ago.
oi

world peace depends, to a
believe that great extent, upon whether or not
we
extremely
succeed
in
establishing
a
strong central government.
healthy world trade among all
In

and, regula.tions. The new Congress should
give its early attention to elimi¬

mercial agriculture of 1953 is

action.

were

and

at the

power

Government

eco¬

govern¬

ment
of

for

should be transferred to the states. that

free-choice

our

toward

increasing

tirely different from the way-ofnomic conditions result in changes life
agriculture of 50 or 60 years
in

demon¬

attempt to convince
that
they should

are,

of

we

democratic

our
we

moving

cries false god
ence on

in

workable

was

people

while

labor union monopoly powers; (3) world
trade; (4) a
farm program; and (5) elimination of Big Government.

that

It is useless to

(1) government controls; (2)

scene:

succeed

we

During recent years, we have fol¬
lowed a path which has indicated

By CHARLES B. SHUMAN*

President, Illinois Agricultural Association
*l,

if

strating to the world that our sys¬
tem, based on freedom, does work.

4.5

The Commercial and Financial Chronicle

12

Thursday, January 29, 1953

...

(472)

bound to increase.- The volume of

By MARCUS

-

Dr. Nadler foresees

be

great

the

business

de¬

1962-67,

o

was

'

2.79%

met.

with

gone

of funds seeking an
outlet in long-term bonds and in

than in 1952.
Moreover, mortgages will be equal to or
private mortgage indebtedness is larger than that of 1952.
The yield on not likely to rise at the same rapid
Experience
of
the
past has
rate as has been the case since the shown that in periods of high bus¬
AAA
corpoCommercial, in¬ iness activity the dynamic econ¬
rates actually end of the war.
and
other construction, omy of the United States gener¬
w a s
a
trifle dustrial
ates
large
savings. During the
lower
at
the however, is likely to increase.
There will be a larger supply of past few years these savings were
end
of
1952
of

end

fluctuations

Price

Government

in

1951.

long-term

obligations

in

the

not

likely to be

whereas the

1952

as

is

rates

interest

of

trend

the

after

continue;

penditures

position of the Federal Treas¬
and the type of refunding that
may be carried out by the new
Administration.
It is fairly evi¬
no new

given
debt

money

months.

supply of funds

The
fiscal

current

seeking an outlet in long-term
obligations and in mortgages is
bound
to
increase.
Capital ex-

of

excess

during the next six
second half of the

will show an
expendi¬

year

over

revenue

ture and in fact the Treasury may

be in

"

penditures by corporations during
1953 are estimated to be slightly

position to repay some in¬
Similarly it is doubt¬
will of¬

a

cannot

ex¬

and
con¬

avoid:

we

(1) A 3% call
A 3%

to

on

we

years'

interest

•regarded
this

Florentine

in

long-term

(4)

fi¬

for

and

25 to 50 years to run.

Century
the

first

personal
office

and

credits

him

Hubert

F.

Atwater

tax-free

have

to

be

Even if the

the

discount

great to tempt

,v':(

joying

discov-

or

who

return

a

ital loaned and

the

on

intact

the

the

surer

will be the buyers

cap-

the

to

that the longer the

believed

course

the return of the

capital

absurdly low rates there
experienced buyers

some

were

then

and

learned that the objective of sound

original

or

While this great debt, Federal,
community and private was build¬
ing up and borrowers were en¬

loan

investment is

corporate

anyone.

his

over

is

coupon

would

up

the three gold

balls

or

best

Municipal issues
1%% and having:

15th

hang

the

absence of any market

An

State

bearing 1%

to

2%%

bonds..

nancier of the

•was"

be

can

or

A decline equal to three

four

has

that

that

ten-year basis.

a

'

Legend
it

rate.

such part of

on

debt

20-year basis

on a

(3)

Medici.
*

money

rate

Federal

placed

•

all

applicants,

Can

Cosimo

owe

enjoy the rewards

market

for

turn.

in the

their

They

comiiig

1 -5-year-term,

policy will be bringing, back
taj

at

a

time

when

rates

capiris-

are

The experienced investor

lender.

ing>
A little self-denial during
prevailed during the past few frequently finds employment for a the period of declining interest,
part of his funds in equity securi- avoidance of long-term, investyears.
Under these circumstances
ties but the bulk of all savings is .ments which offered only a mocithe supply of funds
in the .not
distant future is bound to be equal regularly invested for a fixed re- est increase in annual return, and
turn
without
expectation of a concentration on investments hayto and maybe larger than the de¬
jng some of the characteristics of
mand and hence institutional in¬ speculative profit.
In a free economy the rate of the commercial paper of
vestors may again, as in the past,
bvgone
interest paid for borrowed capital ^ays wjh continue to pay off.
find an outlet for their funds in
finds its level based on the laws
tinue

need

Treasury will

the

dent that

large as in

however, capital
v by
corporations

construction

home

savings will

The

war.

the

other

grade corporate bond sector.

is

also

be

to

tially higher interest costs to
new

the out-

as

the

absorbed by the

ury

highThe
greatest increase in yields oc¬
curred in tax-exempt obligations.
The demand for capital in 1953
than

greater

the

in

were

all pay

we

(2)

with having invented
expansion of in¬
ered "interest."
it is, of course, impossible to pre¬ dustry and by the huge building
I
was
first
taught
dict. The greatest unknown factor activity which set in immediately

tax-exempt securities—how large,

the

at

Benjamin Franklin

the

year.

than

Marcun Nadler

the month when

about

is

patience."

annual homage to the memory

tention

important

a more

the "supply

as

of

■

standing exponent of the value of

con¬

smaller

2.74% the pre¬
vious

of

volume of consumer loans

far as possible and
family formations in 1953 will be
has

as com¬

pared

In
our

demand

f

interest investor
,

been '"thrift," it is
It is doubtful whether the fitting that at¬

partly because the great pent-up role in the future than in the past.
for housing has already On the basis of the above analysis
been met, undoubling of families therefore one may conclude that

ble bonds, i.e.,
the' 2V2s

fixed

City

noting recent rise in Federal rediscount rate,
why current interest rates will go higher, and

already

has

1952 people will play

and

1951

in

than

smaller

reasons

"the

will in¬
crease at the same rate as in 1952.
be The contractual savings of the

to

likely

is

erected

homes

yield on longterm
ineligi¬

durable

many

goods

sumer

is also likely to reach the
level of 1952. The number of new
money

the

1952

of

for

demand

mortgage

for

give*

partly because the great pent-up

be

not

should

demand

The

Mr. Atwater,

Individual

increasing.

partly because of the satisfactory
volume of business activity and

1953 than in 1952.

much larger in

capital during 1952 the
increase
in long-term, rates was
moderate indeed. Thus at the end
for

mand

Looks for

concerns

of

through mutual savings
banks, savings and loan associa¬
tions and the commercial banks
will also continue at a high level

concludes interest rates will
materially different from present m first-balf of year.

Notwithstanding

number

the

By HUBERT F. ATWATER
Gammack & Co., New York

savings

expansion of inventories, and

not

is

which

^

capital in 1953, but

funds seeking investment outlet will increase.

says
no

funds,

pension

/

York University

rise in demand for

no

few years has been very
large and hence the sums accruing
to insurance companies will con¬
tinue to rise. The same applies to

Oiling

NADLER*

Professor of Finance, New

'past

.

Interest Rates in

Look for Higher Interest Rates

written during the

insurance

life

No Immediate Rise in

debtedness.

ful whether the Treasury

which

levels

the

at

have

namely, plowing back of earnings
well as depreciation. The latter

We
t debt to Don
long-term
Government
obliga¬
W<
high-coupon-bear¬ tions. The supply of these will be of supply and demand and it is
ing securities in the first half of increasing since at the proper time only when, by artificial means, Cosimo for having invented inthe year in exchange for matured the new Administration will en¬ interest rates are held at unusu- terest, since it has been the obshort-term
obligations
such
as deavor to convert a portion of the ally low, if not non-compensatory jective of all our investing.1 We

item is bound to rise.

certificates

lower

than

during the past

year.

fer

-Corporations will continue to rely
primarily on internal resources,
as
•

Unless

the

international

In

polit¬

deteriorate

should

situation

ic1

to

an

end.

the

of

indebtedness.

term

be

no

under

there

circumstances

-these

f

and

should

decline,

inventories; if anything,

[
s

conclude that in spite

may

take place. If this is the case

the

demand, for

credit

bank

year
ness

on

the whole

capital

is not likely

a

moderate

interest

of

the end

the

decline.

a

rates to the levels which

.

J

,

bankers

actionary

.

and

.

.

,

invest-

ment managers who have stuck to
lending policy

short-term

a

we

^n(j

not

m

and

their state-

.

Constitutional

that

know

those re¬

something to

QWe

»,

nrents-large items marked

same.

of the

serve

Re-

for Decline in Government

1935 saw the start of Bonds."
which, ill ro¬
tation as interest rates declined,
With
took most of the higher coupon
(Special
The year

an

Under

circumstances,

expect

the lender and we

to

.

Governments can at times do the

however, can
decline in long-term

no

greater than during last year and

by

the travagances without just payment

long-term rates ought to wit¬

one

to be

from

different

Toward

present.

of the un¬

the demand for long-term

decline

a

therefore

may

thereabouts

always

endeavored to borrow for its ex-

now

certainties that prevail at present

of

in the volume

increase

One

them.

want

or

year

lso

of the aspects of

Royalty has

speculation.

one

of interest rates will not be

materially

/

4

moderate

the

level

keener, commodtiy prices will matured securities it will be only
either remain level or will witness because institutional investors will

that

conclusion

reach is that in the first half

may

of

many

on

.

final

The

be

a

takes

income

investing for

that

levels

long-term

into

debt

short-term

obligations.

the

1953

half of

second

different. How¬
if the Treasury offers longobligations in exchange for

ever,

Competition will

.

.

situation may be

>the sellers' market in all lines will
come

long-term

era

of refunding

grade investments from

first

in-

ST.

prevailed

Waddell & Reed
to The Financial Chronicle)

'

LOUIS, Mo.—Elizabeth M.

f

may

♦Summary of an address delivered by
Pr. Nadler before the Mortgage Bankers
Conference conducted by New York Uni¬
versity, New York City, Jan. 28, 1953.

be

even

prior to the unpegging of Govern¬

smaller.

ment

The supply of funds seeking an

holders of 5s found they

the Federal

obligations by

had only

Wadde" & Reed> Inc-

and 3s. This in itself was
trouble enough but the problem,

23As

Reserve authorities.

outlet in long-term obligations is

«

**
VYllSOn Upens
. MARSHALL, Tex.—L. M. Wilaggravated by son is i engaging in a securities
increased borrowing by the Treas- business from offices at 311 North
ury largely for war, to give away Franklin Street. '
or
for other unproductive pur,-*i
i
of

protecting capital that had to

'earn

interest

was

poses.
To keep
from

'

•

'
t

it

; cause

Our
of

analysis of the 1952 year-end

reports

outstanding banks is completed and
A copy w

of

now

has

sent

free

deal-actively

less

$20

upon request.

in bank shares and

are

or

small blocks

at net

•>

,

,vy:tl| ^

.

about

prices.

"

1

!

.

t

Exchange.

*

•

o p

ton &. Company, Inc., of St.
Joins Caunter Staff-;

resist the insuf¬

(Special to The Financial Chronicl*)

by long-

CLEVELAND, Ohio—Frank 3>.

created in the last few

Trebisky has become connected

afforded

return

..

,

i_

with L. H. Caunter & Co.. Park

.

If he has not avoided the Building
bait his problem is magnified.

,

month before

One

Blyth & Co., Inc.
New York
Boston

•

Louisville

•

San Francisco

Springfield
•

Detroit

Sacramento




•

•

•

Chicago

Philadelphia
•

♦

San

Los Angeles

Pittsburgh

•

Minneapolis

Fresno

•

•

Jose

•

Spokane
•

*

'

•"*

Joins King Merritt

large ma¬

rate has been advanced to

Cleveland

Pasadena

a

(Special to The Financial Chronicl*)

turity of U. S. debt, the rediscount

Seattle
•

Oakland
»

Portland

•

Indianapolis
•

Eureka

San Diego

'

at

this

will

level

stand

in

levels

had

been

there

are

AUGUSTA,

2% and

all other borrowers
line.

Coming at

time when business loans were

.peak

>

enjoy the rewards

to

.

*

'■

r

'

.

1^11

ayl°? « Va lttC

-years."
*

'

" '

_

patience, if he was experi¬

term issues

-

chronio.*) ,
QUINCY, 111. — Kenneth ,M.
James has become connected with
■

investor

interest

fixed

enced enough to

prepared to

r *'

'

;

1953

ficient

sell in large

or

and Midwest Stock

policy

specious

continued that now
debt is due in
than two years and nearly
billion must be refunded in

of his

buy

this

on

long

so

now

t

-

to the financial chronicle)

10% of the Federal

available.

The

We

of early maturity.

was

Reliance.

a group

•

ill be

(special

;
CHICAGO, 111.—Tom G. Forney
public much credit was taken for has joined the staff of Betts, Borthe fact .that a great deal of such laad & Co
m South La
debt cost very little to carry bestreet; members of the New York

Bank Stocks

\

Joins Betts, Borland

1

the cost of rising debtbecoming too evident to the

.

■

.!

.

i,\i/:|«aa

and

Federal

''

a

at

funds-.

.

.

^

Ga.—Roy P. Herr-

K*ng Merritt &

Herman E. Jurgens

Herman E.

tight for many weeks,- the

New

Jurgens, member of
York Stock Exchange*

certain to be substan- passed away

Jan. 21,

Volume 177

Number 5150

.The Commercial arid Financial Chronicle

others have

Banks Should Build

but, by and large, it is
a
striking
tact
tnat
we
nave
rougniy, lent the govtrnrnent about
-

as

muen

enure
was

President, Fifth Third Union Trust Co., Cincinnati, Ohio

developments of

country and, obviously, this
possible by reason of

miraculous

stood

recent years

the

only

that

Mid-western banker discusses

money-as we have to all

corporations and individuals in

By JOHN J. ROWE*

i

loans than gov-

more

ernments

Up Their Net Worth

and

little

under¬

invention, namely, double-

entry

deposits in whole bank-'
ing system is due not only to government debt holdings and to
rising tide of business dollar volume, but to higher costs and

We
have
bookkeeping,
built
up
a
deposit liability to
roughly correspond to our total
money lent, including in this cate¬

taxes, which lead business

gory

and contends the astounding
mounting

13

(473)

1

ernments

permanently

because

that

under

that

to

tne fact

deposits increase, despite

terest

littie-unaerstood

double-entry bookkeeping system,
do actually create dtposits as
buy them from the Govern-

we
we

ment,, or as we buy them from
previous owners, but the deposits
only remain with us because our
depositors

need,

need balances.

think

or

they

help

stopped,

demand

and

accounts

bank.

about

of

account

expense

lowered

the

average

Shortly thereafter,

courage

new

borrowers,

the

and

rates

prime

meted downward.

"Printing Press" Money
word

was

savings

on

generally

was

borrowers

rate—and

Just

deposits

interest

to 1%—a colossal reduction in uie

the

*

loan work out; in¬

a sour
on

to en¬
interest

rate

plum¬

In other words,

could

the

name

they did.

In the case of

our own

bank,

we

for causing

government/'

5

4

1

paid $1,832,000 in interest on de¬
government secu¬ press"
money. The word "credit '
posits in 1930, and would ;have
rities, because, in essence, that's stems from 'the word
"credo," paid $4,200,000 in 1952 at the same
what they are—Loans.
meaning complete belief. Consider average rate, had we paid interest

L*'ger C-h BaUnces Being Kept

to

concerns

keep large bank bal-

Blames inordinate increase in government
bureaucracy

ances.

sky-rocketing prices and says only cure is "less
- Urges banks to
strengthen their positions by
increasing net worth. Says, this should be measure of bank
rise, and forecasts continued heavy corporate borrowing in
Very naturally, during the first

giyen year, men in

u

t h

p o n

corporation

and
if, on the average, a bank lends
no more than its. proportion of the
total lending that day or
week,
done by all banks, that each given

the banking business
try to look
forward and focus their attention
e

to

seems

me

to be

relationship between

the.account of the customer;

bank

the actual needs:
for

keeping

tne

a

"printing

our

1

There

immediate future.

month of any

all of

direct

a

personal

balances,

or

and

fancied needs

or

bigger balance than

a

individual

or.

had

company

previously

kept. -C o m p a n i e s,
roughly, keep 10% of annual sales
in
banks;- obviously, when sales

f'™
the statement, "I believe ip—." To
print on a piece of paper "This is
$5," with no guarantee as to ex-

"Net Worth"

change

value, is completely departing from what I believe to be
fundamehtal factor in the word
"credit." In other words, a prom-

a

ise

must

have

fulfillment.

a

In

the

Size

.

,

the

At

appears

pay

Should Measure
of

Bank

present

to be

a

interest

more

moment,

there

marked trend
on

to

savings and

time deposits by some few banks,
presumably in an effort to attract
more
deposits. My own convic¬

long run, coined paper is an
will retain its share of the
absurdity. It has no value across tion is that banks should concendeposits thus created. Obvi- treble, bank balances tend to in- national boundaries, and the func- trate on building up their net
by and large; ously, a great deal of the new re- crease to—say two and one-half tion that gold has played in the worth, and that the size of a bank
interest
in- volving money reaches hands
of.^mes* Similarly, individuals with past to enable countries to have should be measured by its net
come
is" our people or
companies who owe <*our *ax. dates Per annum facing a fluctuating
balance
of
trade worth rather than by its liabilimajor
source money, and
susbtantial payment
with higher wages and sal- within reasonable limits, settled ties.
..
V
: V'
of revenue.
\ down on other debts occurs
It
almost a?les> obviously keep larger bal- from time to time by the moveTA is quite interesting to note
Incidentally, instantaneously after newy loans * ances than formeny.
<
ment of gold, has been broker that the 4th Liberty Loan Bonds,
^having been are put on the books; - thus,/it / U this is true, bank loans and with severe consequences. - "
which were offered in October,
an active bank
seems quite apparent ,;that' each .total
i918,: sold down to a yield of
investment securities must
As the number of
trend of inter-

bank

est

new

rates

as,

„

o

_

•

.

-

,

/of f icer

for bank is restrained in;:its;-lending bd and are that much higher. This
-over
?ofer 40 vpars.v nhtiw hv thp nrwpnf rvr pvnppfpH seems to .me- to snell out thp fact
40 years,v policy by the present or expected seems to me- to.spell out the fact
feel atrlejast* total of its deposits.v£that higher bank deposits and
'th a t
I
can 7
Of course, tms is not .the"

K

;

fs^peak
a

only larger loan portfolios, and much

wit h

-

restraint, because each bank will
set its own standards as to the

thority

u

John J. Rowe

when

I< make

proper ratio between its own net
the statement worth and its total of loans.
that the outlook for interest rates; - What will the demand for loans
is the -major normal question at
be, and what form will they take
the beginning of each calendar in the
reasonably near future?-

higher Government bond

are

and

,

higher

I have very

banks

Further mechanization is impera-

more

live.

have

ahead.

will, in my opinion grow in

1

I feel that it is

to

make

*'

f

;

looking

wrong!

are

on

time,

ing

for

do his

himself,
his

forecast-

own

which

done with complete

discloses

then let

probably

serenity, if he

forecast

to

no

new

products

be

can

to be with

the

over

from

one

else.

us for a long, long
machinery and new
will
require
capital,
in
substantial
excess

I

had

intended

to

earnings

which

elaborate

is

-little doubt that the

would;, be
corporate

higher

owning
bonds

loans,

,

many

and

even

also

that

banks to

is

it

severe,

increased

marked when , fore, the issue was in a badly un.
period of increase digested state for a long time, and
genius, producing a lesson was learned from the efr
more
chattels which fects of this obvious danger.
more

through
inventive

go

ing

and

more

a

inflationary, for

the

to

fact

that

to add up

me

Government

as

Government bonds,

own

bureaucracy increases inordinateWhat is inflationary is for the
prices skyrocket, and the only
Government
to
withdraw
more
cure, it seems to me, is "less Govand
more
people
from
private ernment"
•

llvlonl a"L?ettha™siS0U„fbthe
tnereoy
assisting
tne

1 have another »et °Pinion «lat

payions,

money as well as for commodities.

to

ismad?

we

miracle,- remained low. In other home and factory,
words, I am querying the stateThis all seems to

be

apt

the

though become the equivalent of a necessity ; in
the average • American

spiral increases. Higher costs
make higher prices for borrowed

restrain

may

of

ploughed back
and depreciation,

amounts

Competition

,

on

parison

the Government debt had, by some

ment

high taxes, which may be
lowered a bit, but can be counted

praise where
each person

enor-

With

So, I will try to
are, and

num-

mous.

confine myself to an effort to
apwe

Laboratories

ture I believe to be simply

at

forecasts in the past, one reaches
the 'conclusion that most forecasters

Research

beL and their horizons for the fu-

fair statement

a

that/ when

Our

tonnage-volume

business, rather than being • con-r
—
sidcred the prime cause.
"
' ,

when attempting to set a
goal, earnings-wise, for the year

year

accounts

the_ result of both higher prices

people

payroll increases, in com- 5.875%! in May, 1920.0 It took two
urUh
'with people on- private years for thte issue to regain:a par
industry payrolls, the /increasing quotation, below par m 1923, back
costs of doing business, both/tax- to par iiid.924, and above par until
wise and through the
resulting the fall of 1929. v
.;r •: ;
urge
for higher wages ; as the ;We know tbat. great.; stress was
floating supply of labor dimim Pkyed upon 'Borrow and Buy,
- '
---ishes force orices ud
Obviouslv
when the issue was offered, thereFederal

wage

By and large, it strikes

me

that

the

fey/

panic,

the

durjng
1929

denly wanted

after

years

to get rid

banks lowered

interest

the

sud¬

borrowers

of debt,

rates, and

It does appear to me

that today

large amount of the long-term
issues are owned by trusts and
funds of various nature.
Insur¬

a

companies
have
reduced
of
long-term bonds
owned. I have a feeling that man¬
ance

total

their

of these various holdings for

agers

others

are

more

and more recog¬

nizing the fact that the yield is
very low, when taking into
ac¬
count the increased cost of living
and the inadequacy of incomes
this

kind,

widow

and

of

after taxes, for the
orphan, and low for

'

rather

earnings. This

extensively
upon - the
astounding miracle engineeringwise and inventive-wise, of the
last two decades, but as I was col¬
lecting facts and figures, a friend

to

up

to

seems

substantial

a

both short

demand

and long

—possibly

the

ment" for

more

to add

me

for

banks
'

can

only hold
•'

'

Gov-

in

some

cases

charged

no

'J'-.

more

T-'\

Continued

on

:

interest

term money
"require¬

word

than the

money

of

mine, Mr. Fenton B. Turck, of word "demand" for more money
Turck^ Hill and Company, New is a better way to phrase it.
-.
York City, sent me a paper of his,
We
have
gone
through
an

This

announcement

is

not an

offer

to

sell

nor a

solicitation of

an

offer to buy

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

o

entitled

"The

American

Explo¬

astoupding era of mounting de¬
posits in the whole banking sys^because he
handled the tem, and there seems to me to be
subject so extremely cleverly that, a strong relationship between the
I felt it foolish to
try and labor total dollar volume of business
the subject myself.
" '
v.
done in the couhtry, and the total
sion."

I

refer

all

you

to

that

article

<

No

NEWISSU8

150,000 Shares

add'up the exact amount of bank deposits, about
impact of radio, television/ plas- which I will give additional mentics, glass fibre, ?pd literally hun-- tion further on.
y', y
/
one

can

Budget Finance Plan

dreds of other completely new in"i*"'., •
wui, *
mte *'
ventions and products.', t+o title Deposits Rise and rail With Level
Its
J

"The
the

American

Explosion"

tells

At the moment, I want to stress

my very early days of baok-

'^Lj£

the
the

an

effort of

hnrrewer
borrower

with-his

banks are an

humor, that

in

When-'KTSS?

his

and that

hand, and
before he

threw

with

his cigar away
in, that money was very
tight, but if he kept his hat on

kept

his^cigar while^talking,

that money rates were very,
very

an

Deposits Restrain Lending

have

ion

that

of mind

a

was

banks

manufacture

rate3

based

unconsciously,
when

and

are

a

in

state

*An

address

January 26, 19S3.
M

i'-'c

U

Rowe before

Mr.

CMZZm:
••

*

■'

-

0-'

n.-tl

■"

-

-

„

i

,

>1

-

-

■

,

the

that

endless,
of

process
new

•i.




//

-:i

\ic- ;Kudj

Share

astounding

that

fact

courser

as

have to

we

banks

so™

governments
Cf■'•r.'T

n-d-1

may

be obtained in

Prospectus and others

anv

as may

State only from such of the several Lnderlawfully offer these securities in such State,

all

we

all of

than

1

V

hu

Ot

have mere
and,
sj-

it 11/1 T*1

January 28, 1933

loans,

i
i1 b.i: f

.it

Reynolds & Co„

our

other borrowers put together.' Of-

V1 '/

writers named in the

endless chain has resulted in

ernment

'O

Copies of the Prospectus

deposits

•

'

Price $10
per

universally

have, in very round figures indee<*i loaned -about as - much,
money to the United States Gov-

lend, they promptly
money by crediting
by

an

the

consciously, or
the fact that

upon

.

-

then

and

never-ending

checking against the

feeling that the opin¬

money

a

naturally created in the first

instance,
I

(Each share convertible into VA shares of Common Stock prior to
January 1, 1957, and into 1 share1 of Common Stock thereafter.)

darge holding of goverximent sea^ banks,., deposits
were

Total

^

%

Share)

deposits rise and fall
advancing or receding
•*
'

With the advent of

vlbw..

s

"f

per

our

economy.

came

and

integral part of the

(Par Value $9

'"f1"84"31 Il£e.of thlS «ieat natl0n.>

inte .he effiee
into the office

rame
came

hat

.

60^ Convertible Preferred Stock

dose

to the mounting dollar volhad been in the business all of his
business life, that money rates are ;iipie, of business, which leads me
to make ' the
statement
that we
a state of
mind; supplementing it,

with

,

.

story

!'>

(a California corporation)

of Business

'

lu.i

/

Lester, Ryons & Co.

page

43

The Commercial and Financial Chronicle
14

800,000,000 people and they are
being forged into a vast weapon
of fighting power backed by in¬
dustrial production and
modern

Regime's Policy
Foi Defeating Communism

Eisenhowei

Communist-controlled people.

Second

against Communists by united effort

been

has

I

assure

can

fcave

been

They
Leen

used

very,

busy

a

of

pay

*

ing

problems, but
jl
hope never

Congress

end * with

people

partnership in
Gives tables showing prices, yields, and
earnings of "growth companies/'

.

,

will

we're

the.;

know

and

what

pur-

poses

our

production and War -production,
depends very largely upon impor¬

These., enemies

tations

arc

J«l»n *"• Dullei
;

,

pretended that I did have, but I do

teach

is that their leaders

one

you

this

threat

that

the

proach the solution of these prob¬
lems.

-

-

i

—

and

I

to

want

threat

is

is

that

who's asleep at

address

by

Now

r

our

■.

by

Dulles

the

broad¬

State

De¬

the

•

That's

com¬

pletely dominate. In that area

1953.

are

its

I

investment.

offer to sell

nor a

solicitation oj offers to buy

of these securities. The offering is made only by the Offering Circular.

Nr.w issue

These Securities

are

offered

as a

speculation

300,000 Shares

enter the

should hot

equity mar-'

ket, but stay in their own back
yard Of bonds, mortgages,; and

benefits ahd
I believe \ I

loans; foregoing, the
risks
of: ownership.
can

Maurice

N.

the

demonstrate;1 that "taking

Moes

„

conversion of 5% of assets from a„

they will keep grow¬

3%

and

return to
the

increase

.15%.
from

6%

a

overall

return would
earnings by.

To the extent that earnings
3%, the

other assets exceed

overall

a little over seven years Telephone and Telegraph common real benefits of
they only controlled about
GROWTH LIST
200,000,000 people, and today, as

an

equity position,

say,
they control 800,000,000
people, and they're hard at work
to get control of other parts of

the

world.

|

4.»

„

,.

,

,

.

High
Let

me

*

**

'

with

a map

before

pick out some of The high
spots of trouble. Let's start with
which

naturally
comes
minds because of the

our

and

there.

bloody

war

that

What's

going

on
about?

all

Yd.. 1952

Div.

Chemical

Fd.

—

DeNmrs.
Chm.

&

Mch.

Gen. Elec.

—

Paid

Paid

1942

1952

Bsd.on

'42-'52

1942*

1952

Yield

Yield

'42-Cst.

17

62

265

$1.70

$3.00

10.00

4.84

10

39

280

.25

.80

2.50

2.11

88

184

1.06

3.55

3.43

,4.03

.70

2.00

5.00

4.26

142

1.40

3.00

5.38

4.76

11,54

59 1

211

1.00

4.00

5.26

6.78

21.05

391

2.00

•«

26

95

19

55

4.65

1.89

9.30

1.00

3.50

2.38

20.00

.75

2.50

1.00

2.40

760
'

2,63

9.61

5.26

4.36

12.63

6.10

4.44

15.00

2.88
'

54

16

Scott

4.00

189

43

.17 Yz

265

211

5

__

14.28

235

63

43

Phillips Petrol,

8.00
11.45
'

47

Chem._

Monsanto

17.65

14

Mfg.

Minn. Mng. &

„

26

Mch._

Bus.

Inter.

% Incr.

1952

19

Motors

Gen.

Price

31

Amer. G. & Elec._

du Pont

me,

*.

Aver.

1942*

Dow

;

of Trouble

Spots
now,

,

Div.

Aver.

Price

I

cruel
any

of

ago,

Korea,

an

an acceptable assumption, then
sincerely
believe* the
banks

not

the

government,

first to
Tbis advertisement is neither

is-

expanding, dynamic economy,
matured and static. If this is

War, only

which

ours

getting control
by political equity field, with 57% of the buy¬ for an increased earning power of
warfare, and indirect aggression.
ing in public utility commons and .15%. If they assume the risks of
And they have been making Very
preferred, 33% in industrials and partnership, why not look for its
great progress.
:
4
' *
At the end of the Second World about
10%
in
rails.
American benefits? If they are to reap the

,

area

an

that

tenet

must

one

by

proclaimed

Communists

Russian

basic

stock

common

believe

I

that

power

of

We must

,

already

of Europe.
Secy.

tianscribed

partment, Jan. 27,

ap¬

to

field

to

benefits from the equity,
overwhelm¬ going yields on bonds and mort-,
portfolio are proportionately less.
the result would gages. According to a recent ad¬
It does not appear, realistic for
not be in doubt.
So that strategy dress by William A. Lyon, State
savings institutions to accept the
has been to pick up one country Superintendent of Banks, 52 sav¬
risks inherent in common stocks
after another
ings institutions had entered the

be awake, all of us awake, to that

and

me

his post.

strength

in

ing

serious one.
recently
said this nation stands in greater

you're entitled to have enemies ^control one-third of all
rie do the best that I can for you.
the people of the world. I've here
And that is going to be the spirit behind me a map which shows the
wf the State Department and of vast
area
which stretches from
'cmr ambassadors. You needn't be Kamchatka,
near
Alaska,
the
nfraid that we're working against northern islands
of
Japan and
jou and for others.
right on to Germany in the center
and

not

til they have got such

the

deadly

a

Government; danger.

your

that have hired

to

answer

pay me and

♦An

an

power of the banks.
As I see it*
we're more the approach most commonly en¬
and
more
cut off and
isolated. visioned is to take advantage of
They said they don't want to relatively higher yields of com¬
start an open war against us un¬ mon stocks as compared with the
us so

ing

awake to that fact is like a soldier

abundantly clear—is that I

'.consider that it is my job to work
for the people of the United States.

of

proach
new

the

hold

they

their

into

commitments

embrace

will
in

mistake

exclusion of the benfits

enters

one

to the phil- "

osophy

a

gained from long-term part¬
nership in growth situations.
If

management
as

the

be

emphasize current returns

be

manganese

around

peril than at any time in our his¬
tory.
Any
American who isn't

Now, the first thing that I want

part

to

bank

ings

over

would

it

think

I
to

than a third
purchased.

could be obtained from a list of
the world.' At the present to have paid cash dividends for
common stocks acceptable to the
time, the Soviet Communists are, the preceding 10 years.
Everything I have read relative banks is 6%. If we assume that
carrying out a policy which they
savings banks investments in 5% of the banks' funds might go*
call
encirclement.
That
means to
into common stocks, and the other
they want to get control of the equities indicates that the primary
95% of assets yield 3%, then the
different areas around them and object is to increase the earning

President Eisenhower

our position in the world is
end the spirit with which we ap-r

you

the

responsi¬

a

more

common

lies in

may say,

take

to

what

am

enter

Of the total

in

.

do we need
seriously, and

Well,

worth while to tell you

make clear

of

banks

aggressive dynamic', attitude, put¬
/ -'
' * - *.. V/J ting less emphasis upon .current]
There are some of* the reasons- of ' surplus / itlrid
and undivided ihcome, can lead to much greater
why the enlightened self-interest; profits,! whichever is smaller. Thb long-term income and apprecia¬
■« i?
of the United States compels that stocks would have to be listed on tion. ' i ■
( The' maximum
returns
which,
we
should have friends and al¬ a national securities exchange and

I've already met with two Con-r question and they've found, most
fgressional committees that deal recently, only last week, that the
primarily with foreign affairs and Communist party in this country
row
I want to have a ehance to is part of a gigantic conspiracy
.talk with you. Of course, it's obt designed to overthrow our Gov¬
vious that after six days I haven't ernment by violence.
cot the answers to all the prob¬
A Deadly Serious Threat
lems.
It would be ridiculous if I

make it

steel

is of, course basic, in peace

which

have been teaching
it for many years, and everything
that they do fits into that teachT
ing.
And in this country our
courts have had to look into the

.'

and intentions are,

think it's

bur

example,

close attention to what is go/
in the rest of the world.

it openly and

thinking. 1

about

For
industry,

dependent on overseas goods.

to

on

that

is

* it;

have

enabling savings

•

they

what

we

lation

..

\

States

that

self-interest,

alone made up

With the recently enacted legis¬

from/overf. The bill ^'per¬
mits the pur¬
seas.
So, if we were alone, not
the Russian Communists and their
chase of com¬
allies in other countries.
* only Would the manpower odds be /
mon and pre¬
terrifically against us, but • we>
Now you may ask, how do we
would be at a great disadvantage ferred stocks
know that they are really trying
in the production of the weapons up
to 5% .- of
to destroy us?
Well, the answer to that we needed. -*
j*'v assets,- or .50%

-

the

-

of

"United

cast

banks,

emphasize current returns to exclu¬

benefits to be gained from long-term

were

which our enemies control,
it all of the natural
resources
which they need.
On
the other hand, we are largely

interest, our enlight¬

destruction.

with

talk

it's

over

growth industries.

in

war

us

within

has

that is that we
have enemies who are plotting our

;

a

rope,

And the reason for

to be too busy ;

the

self-interest."

own

our

ened

•

cumulated

"en¬
That is

going to be the guide as we go on
to make our foreign policy. Now

days,

in

ac-.

has often

phrase; it's the phrase

a

lightened

they

that

you

very

have
perfect

mass

,to

mistake to

a

State
to
which the odds New York
common-stock field,
7 to 1.
And another important fact is bility is thrust
that this vast area of Asia-Eu¬
upon the sav-

have

against

President Eisenhower

days

just six

now

that I have been Secretary of State

co

sion of

was

wouldn't be pleasant to

It

favor.

will be re-examined.

to

and it is

ration then

efforts

find

equity investments

on

the despots so

Admits

higher yield

sufficient to warrant commitments by savings

is not

big coalition on.our side against
that the manpower
was about 7 to 1 in our

a

of ourselves and our allies.
allied unity in Western Europe has "stalled," and, if our
ultimately prove ineffective, our Western Europe policy

there

War

World

1,

Members New York Stock Exchange

Mr. Moes contends that

against them, the population odds,
against
us
and
in their favor
would be 7 to 1. Now in the case:
of the First World War and the

Says action will be taken by Administration to make foes in
Far East want peace, and calls for erecting a common bulwark

It

By MAURICE MOES
Erdman & Co.,

ple is compared with our popula¬
tion* about 150,000,000 people, it
means
that
if
we
were
alone

encirclement" by Soviet
Dulles outlines policy to encourage and cul¬

tivate desire for freedom among

800,000,000 peo¬

If this block of

Pointing to "a deadly serious threat of

Russia, Secretary

Company Shares—A Basis
Tor Savings Bank Investment

atomic

include

that

weapons

Secretary of State

X

Thursday, January 29, 1953

.

Growth

bombs.

FOSTER DULLES*

By HON. JOHN

%

.

.

(474)

237

.97V2

•

2.40

Paper
-Well, one thing that it's about is
21.25
5.45
5.00
4.25
1.00
290
78
20
Stand. Oil (N.J.)
Japan. You see, the Soviet Union
3.99
14.31
4.91
has already moved into the north¬ Aver. 12 stocks—
287
ern islands, which are yery close
^Adjusted.
to Japan—in fact they are within
two miles of northern Japan—and
While the adjustments in price and dividends for 1942 have been
tyeir planes are reported daily
made to provide comparison with 1952, no attempt has been made to
almost as flying across the north¬
take into consideration minor changes in capitalization, which may
ern part of Japan.
%.,»•
have occurred.

And you can see from this map

PERMACHEM CORPORATION
(A Delaware Corporation)

if

area

up

would

„

within

be

the

pincers.

And

Chinese

COMMON STOCK (PAR VALUE 10<)

Communists

per Share

from

from

them

he obtainedfrom the Undersigned

or

got

into

Asia, from Manchuria,
China, and to process
arms

and

for

weapons

the vast manpower of China.

'

Spiess Co.

USDIIUYFITI.K




Open Until 8 p.m.

-us.

a

It

was

hard enough for us to

win the

MEM HERS NATIONAL ASSOCIATION SECURITIES

Broadway, New York 6, N.Y.

be

that, if it happened, would
very unfortunate thing for

Pacific
DEALERS, Inc.

WHi tell all 4-7965

war

when

when China

Soviet Union

against Japan in the
Japan

was
was

our

was

If Rus¬

sia, China, and Japan all com¬
bined, it would be pretty tough

Continued

on

Yld. 1952

Div.

B.sd. on*

Paid

1942

1952

1942*

1952

Yield

Yield

'42-Cst.

5.56

5.39

3.88

5.72

5.32

8.62

9.00

7.63

5.77

7.63

3.25

4.00

7.74

6.67

9.52

140

1.60

2.00

10.67

5.56

13.33
7.20

26

-28

$2.00

$1.40

47

62

•1.66

2.50

118

156

32

9.00

__

42

60

43

__

15

36

& Tel.

Tobacco
Edison

Consol.

Paid.

'42-'52

36

___

Airier. Chicle

Amer.

r/n Incr.

1952

29

Air Reduction

Amer. Tel.

Price

1942*

■r

Rfg._

50

69

38

2.90

3.60

5.80

5,22

General

Foods.__

32

47

47

1.70

2.40

'5.31

5.10

7.50

National

Biscuit

15

32

113

1.40

2.00

9.33

6.25

13.33

20.00

Corn

Prod.

Stores

_

*'

_

Sterling Drugs
United
F.

W;

Fruit

Wool worth

12

32

167

1.00

/2.40

8.13

7.50

29

37

27

1.70

2.00

5.86

5.41

6,90

20

58

190

1.25

4.00

6.25

6.90

20.00

26

*44

69

1.60

2.50

6.15

5.68

9.62

7.01

5.8.9

10.63

75

Aver. 12 stocks

alone,

ally and the

heutfcal.

Div.

Aver.

Price

Safeway

>-

And

Peter W.

39

Russians

then they could use that to
process the raw materials which
and

may

the

power

come

Copies of the Offering Circular

if

Aver.

Communist

control
Japan with its great industrial

of

Price $1.00

INCOME LIST

thby had not. only tfyis
to the north of Japan, but
also bad all of Korea, then Japan
that

page

50

'Adjusted.

made to

'

.

While the adjustments in

•/

price and dividends for 1942 have been

provide comparison with 1952, no attempt has been made to
consideration minor changes in capitalization, which may

take into

have occurred from year to year.

Volume 177

Number 5190

.

The Commercial and Financial Chronicle

.

.

15

(475)
they should be foresighted enough
forego larger current return,

and

for

strive

the

results which will

better

overall

been

believe

true

it

in

will

the

be

four

It

America's

past, and I
in

true

as

the

Research, aggressiveness,
inventiveness,
and
competitive
ability have a successful record.
I have prepared two lists of

se¬

dent

investor.

One

list

growth companies, the other, lib¬
eral dividend
payers.
One will
that the

note

chased

growth list, if pur¬

price of i942,
yielded 4.91%, while

second

purchased

list
on

could

have

7.01%

a

basis.

obstructions
threshold

The

based

1952

would

return

the

on

on

price

mean

of

other

group

the

10 years

Now

»

let

the

at

advan¬

tages which the growth situations
have

to

annual

offer.

By

return

of

as

sacrificing

2%

an

(worth less

than

than

•

own

expert, but as an ob¬
should like to discusS

with you some of the

days

things that 1
people's minds these
things

that

toll,

rently

concern

inal

cost,

while

yields 10.63%

the

second

The growth

cost.

on

list

list has appreciated roughly 287%
from its original
value, versus 75%
for

the

second

look

out

back

the

substantially,
and

10

and

point

which

grew

years

companies

than to

look

accurately forecast

next decade

ahead

what

will produce.

the

To my

country.

of

one

And

as

*

•.

of

arid

at the

L.

L.

a

Colbert

time main¬

same

pro¬

nation's

brace

and

as

a

we

should

necessary

one

em¬

for

all

had the

we

in

our

com¬

a

increasing

on

happened be¬

in

it

new

who

make

can

processes, new ideas

opportunities.

new

the

the

They

un¬

last November fourth did

our

peo¬

partnership — enhance¬
Just how well our country's maple look more critically at a suprincipal and a substan¬
return based on orig¬ perficially prosperous "today" and t.erial needs have been met by our
vote so overwhelmingly for a productive machine was indiciated
inal cost.
solidly based "tomorrow."
jn the report issued last summer

ment

in

Reserve In v. Co. Formed
(Special

to

The

Financial

CINCINNATI,

•

ahead of

Chronicle)

Ohio

—

Richard

H. Keys has formed The Reserve
Investment Company, with offices
in

the

to

engage

Dixie

Mr.

ness.

Terminal

what

foresee

lies

,

nation's

me

attitude

toward

the

done.
Such

assets

abled
time

in

as

these

nation

our

little

have

for

the

than

more

a

en¬

third

single

of this kind' can be

Paine, Webber

H. B. Cohle Adds

as

'

It showed that

—

might

s

...

B. Cohle &

and

inet of

know,

are

staggering,

Stock

Ex¬

Joins J. Lee Peeler

'

*

C.

—

Olin

C.

joined the staff of J.

Peeler

Building.

&
«

Company,
.

,

a

Trust
';

(Special to The Financial Chronicle)

significant

....

..

.

the

e

„

Quantities of guns

&

Company, Inc., 1151 South
Broadway.
-T
•

Limits to

chosen

Our Foreign
'

'

cannot

the

our

and

allies

*

wealth

indefinitely

-

tion

is

called

Aid

in

ing supply of

a

we

foster
trade

friendly nations.

ISSUE

support

the

military structures
eventually

This situa¬

directly related to foreign

our

own

welfare and to that of ad

of

inroads

the

with

allied

countries

It apparently

falls to the United

States to take the

national

essential

defense;
economic

to

well

lead

to

obstructions

which

Dated

pressing problems to¬
are linked with our

for

concern

As

a

nation

our
we

War

national

seek

and

to

an

abroad

breech*

and thrives.

\

freer flow of export1;

a

imports

stantial

realize

we can

More

commerce.

should

result

standards
mean

can

in

de¬

us

markets

products.

PRICE

it

have

to

Swift has been added to the staff
of Waddell & Reed, Inc.

'An
the

shall

we

large defense
indefinite time. Ul¬
a

demands

for

on

$8,000,000

Bonds, 3%% Series due 1983
Due January 15, 1983

102.384% AND ACCRUED INTEREST

.

Copies of the Prospectus
in

any

solvent

a

State where the

may

be obtained from the undersigned by persons

undersigned

may

lawfully

offer these securities.

and strong allies.

costing

our

people

for world-wide

gravest

L.

an

timate victory
economy

clear that

maintain

set-up for

deal
,

seems

cost,

address

Economic

of

course,

by

Mr.

Club

of

Mich., January 26, 1953.

a

great*

defense.

is

Colbert

Detroit,

Kuhn, Loeb & Co.

The

more?
before

Detroit,

January 29,1953.

it

living

Ameri¬

Development of

„

January 15, 1955

OFFERING

¬

abroad, and this would

better

-

imposed
by the cold war. How¬

sub

important,
higher

end to the
vast

a

growth of total free world

defense.

the

that

conditions

circumstances to he construed as, an* offer of these
of an offer to buy any of such securities.
offering is made only by the Prospectus.

First Mortgage

rot
na¬

our

development and

Iowa-Illinois Gas and Electric Company

more

a

intern-

are

Communism

economic

abet

that

commerce

absolutely

stifle

l^ad in seeking:

of obstructions to

removal

tional

again&t

us

Communism.

ex¬

example of united effort

amonp

A healthy two-¬

Continued

-

real¬

a

flow of trade is ess
essential to

way

securities for sale or a solicitation

NEW

continuy

international

cab¬

a

ap¬

trades

materials, it io

raw

important that

and

America

trade.

The

the

,

ourselves

assure

istic

o£

•

of

without

for

international

to

♦problems.
To

sense

a

its freedom, a profound

is

Through

't

Even

world, in

destiny, is.determined to

This advertise went is not, and is under no

country's best ideals,
challenging opportunity/

The most

It is

Waddell & Reed Add
LOUISVILLE,, Ky—Stephen

_

our sup¬

'■

the free

If

.

King Mer¬

(Special to The Financial Chronicle)

has

and tin.

day naturally

ever,




poSsible is

-

our

a

an

could

that

upon

} LOS ANGELES, Calif.—Evelyn
with

allies.

our

look to

now

part of

some

aluminum, nickel, natural rubber

without

providing permanent help to

of mate¬

ply of such vital items as copper,

upon

productive ^weakening our own.

fense effort that has been

King Merritt Adds

now

and

dedication of the American

new

people to

Korean

Anderson is

strong

■

this

ourselves

We

year.

than two

tons

peaceful world.

(Special to The Financial Chronicle)

N.

weakening

■of

Possible-

makes

each

imports for

wo

materials.

With this kind of team and with

to set

has

for

well

men

there is

DURHAM,

need

qualified by
perience to help him.

Co., Union Trust

Midwest

the

which he

with

changes.

of

producing and consuming

n°t

leadership for the days
ahead, in the care and promptness

W. Carl

receivers, and presents the danger

terrific rate. Some of the fig-

eifective
.

Building, members of the Cincin¬

ritt

a

' What

.

we

ognized

Roop has been added to the staff

i

Commission.
are

v'*.L

f

'

"Recognizing economic health
an indispensable basis of mill-

tary strength and the free world

(Special to The Financial Chronicle)

CINCINNATI, Ohio

:

,

dent s Materials. Pol-

self-defeating,

create dependency among the

can

Today

raw

billion

half

a

a

nation in many

of

areas

put

shrinking

our

Our people use up more

proach

^economic
when he said:

with Thomson & McKinnon.

Lee

.

critical

own.

our

materials.

raw

change

getting things

on

"have-not"

a

preserve

better way of

our

•

,at

shall strive to foster
; AKRON, Ohio—Robert H. Noah
everywhere, and to practice our¬
is now affiliated with
Paine, Web¬
selves, policies that encourage
ber,
Jackson
&
Curtis,
Ohio
productivity and profitable trade."
Building. Mr. Noah was formerly
President Eisenhower has rec¬

Peeler

«

ures, as you

peace,

nati

-

are

Building,

(Special to The Financial Chronicle)

of H.

+,

being made on all
sides.
That is an interesting ex-,*cy
ercise.
I
believe, however, .that we
us

in the securities busi¬
Keys was previously

with Clair S. Hall & Co.

Joins

to

are

in

tial income

Efforts

stock of

with

consumption,

drain

incentives and believe profoundly

mind, this is the challenge to the weaknesses, you will find hearten¬
The record of our productive of world leadership and supply
savings banks, and their recently ing evidence that we still possess
is
an
established Mutual Fund. It would all the ingredients to make a fu- achievements
impressive against an imperialistic foe.
ture just as dynamic as the best one.
seem clear that if the
Since the end of World War II
Our gross national product in
challenge is
of our past.
to be accepted, the first
step must
ig4g_the year before Korea—was we have provided countries
be the adoption of an investment
Vitality of Nation Persists
$258 billion. As 1952 came to an abroad a net assistance of more
policy which subordinates the easy
One of our most precious Sssets, end we were producing at an an- than $36 billions in the hope that
road of higher current
income, to
it seems to me, is the tact that nual
the
rate of $340-odd billion.. To this aid would make them selfpainstaking search for the
the real strength of our nation is
growth of tomorrow.
Then, and
get a better perspective of this supporting and self-reliant. How¬
not so much its material resources
only then, will the savings banks
record, consider that only 13 years ever,, such astute observers of in¬
justify placing depositors' funds as it is the vitality, the integrity,
the industry and the good common ago
in equities, when
our
national gross product ternational affairs as our own Joe
they can pass
sense of our people.
Never before amounted to just $91 billions.
on
to them
Dodge caution that continued aid
the real rewards of
successful

coupled

abroad,

prodigious

common

generation to shoulder the burden

time.

some

by the

importance of these

productive enterprise, it is not
that

had

country has the kind of

our

most of

,

high level of civilian

condition

more

we

rials

derstand

our

our

strengths

.

duction emphasizes the strength of

sort

a

of

,,,

our

inherent

But most of all it

heavy burden of de¬

a

50%

than

to

trated

factories.
.

and

tain

balance

sheet

gross

demonstrated ability

fense

that if
think in

around

extent at least, frus¬
international com¬
plexity of restrictive tariffs, ex¬
port
quotas, blocked currencies
and in many cases by their own
self-imposed
inflationary
fiscal
policies.
Foreign
a i d
goods
shipped

are,

and

to carry this

a

say

you

gap in the balance of
its
related
problem

tjhe productivity of our farms and

our

Wnne

preface, let

terms of

total

our

produced in

us.

me

group.

I appreciate that it is far easier

to

every

services

and

today Amer¬

job, to keep

cause

the

orig¬

on

better

people

and
lives of

plants

new

that

petitive enterprise system to do

and

better than

14% return

cur¬

national product—all of the goods

our

oil

/ It happened because

ture

of

in

heavy

incentives

is

country

agriculture,

in 1945.

-

rate of more than $50 billion. That

of

n-

total of more than

so

added

businessmen,

10 basis
points to overall
bank earnings) the 10-year period
shows the growth list now paying
a

record

productive capacity

running at the annual

16%

from

years

manufacturing companies

because they
aiiect the fu-

about

seven

excluding

y,

billion

ican

On top of that dreadful

are

r

a

have

defense expenditures

our

the

equipment,

127,000 casualties that our
forces already have suffered

in Korea.,

are on

—

in

t

u s

$150

Calls for removal of

economic staying power.

our

an

I

server,

believe

ago.

look

us

Not

now

In other words, practically
same
spread exists today as

materials.

raw

yield 3.99%, with the
the

5.89%.

existed

strengthen

make

through 1952, American i

spent

prodigious consumption has

our

new

can

to

d

,

international

to

of

want

or

1946

commerce.
Says we are on
technological revolutions. Concludes with
understanding men heading government, business and labor

been

interesting thing is that the growth
list

foreign aid and

our

heavily drained stock of

at the 'mean

have

would

the

warns

I need

because

auto executive

contains

business

foreign aid, though meas¬
dollars, has been deliv¬
the form of goods, paid
for with dollars provided by our
taxes.
The result is a widening
in

ered

..

still possess all ingredients to

we

as dynamic as best of our past, prominent
points to persistence of nation's vitality and its
ability to carry defense burden along with high level civilian
production. Lays this to individual incentives of people, but

containing names
satisfy the most pru¬

individual

Our

ured

trade, with
of
dollar
our lives better for ourselves and
shortage abroad. Allies that would
our
prefer to meet their balance-ofchildren.
payment problems by selling us
It happened, for another
thing,
goods instead of receiving our aid

you and

make future just

both

would

million

America, competing in a
traditionally free market for what

President, Chrysler Corporation

Asserting there is evidence
-

curities

Strength

firms in

By L. L. COLBERT*

future.

that

I believe it happened, for one
thing, because we have more than

out,

from the

accrue

purchase of growth situations.
has

and tanks and planes that it turns

A Balance Sheet of

to

page

an

42

Chronicle

The Commercial and Financial
16

1953

Thursday, January 29,

...

(476)

appraising future prospects for
It is distinctly a job
for specialists who work full time
at the job.
in

The Mutual FundThe Modem Investment
By SAMUEL M.

News About Banks

Diversification is simply the ap¬

CONSOLIDATIONS

to investments, of the
principle of spreading

plication
insurance

GORDON*

Co., Members N. Y. S. E.

Ira Haupt &

security.

a

NEW

bank prac¬
the risk over
No insurance

the risk or the savings

an*l Other Exchanges

spreads

that

tice

OFFICERS, ETC.

In

a

mean

a

mortgage just a few

would

Directors of the Commercial State
of New Bank & Trust Company of New
-York City, it

circular dated Jan. 13, the

fire would Federal Reserve
crippling loss. No savings York says:

Bank

ings. One death or one
bank

Bankers

and

CAPITALIZATIONS

mortgages.
company would insure just one or
a few lives or one or a few buildmany

explains Funds' functions, types, cost, and how
to judge them.
As advantages, he cites diversification, con¬
tinuous supervision by professional management, reasonable
dividends, freedom from bother, and liquidity. Lists following
disadvantages: Chance of loss; irregularity of dividends, and
mistakes by even professional managers. Describes ways to
purchase and redeem their shares.
Mr. Gordon

BRANCHES

NEW

REVISED

"Marlon

Folsom, who was last elected

B.

a

W

Kimilarlv
simnany,

thprrr

ruin
rum

tnem,

sufficient

of

by member banks in Group 2 *s a Class B tiounced
investor
»
uive&wi director of this Bank for the tteee-year

no
no

term

will risk his

means

beginning

from

that

x
1951> ha5 reslgned
effective Jan. w, 1953,

n-

a

S

properties. One bad mortgage could

o n
^

ny

Jan

offiC€

Jacob. Leicht-

PresiFor 27
Mutual Fund is an investing com- Investment Funds the manage- risk by investing in a broad list by member banks in Group i as a class a years,
Mr.
has
pany that provides a convenient ment works like
a team. It is of securities, so that damage -in director of this Bank for the three-year ^Stephens
Uno
substantial effect On term beginning Jan. 1, 1953, will not as- <■r
mem—
one
way for investors to combine their made
up of industry specialists
nas^no suDsianuai eucu un gunw thPt office beCause he is to accept been a mem-:
men experienced in research, stat¬
resources
for
the whole.
appointment
as
Consultant
and Special ber
of
the
isticians, economists, security ana¬
the mutual
Continuous Supervision is also
JffS*
lysts, officers and board of direc¬ a
advantage of
job for those same specialists. It jCies
.State Assemtors
and
all.
finally the investment
If ail of
means
of course, constant watch"a special election, involving banks in b 1 y.
During
What

Funds?

Mutual

are

In the older and larger

A

—

Mutual

capital in one security or a
securities.
He, too, 'spreads

few- to accept appointment
the of-the Treasury.

Secretary

as Under
^

m a n,

dent.

^

nfi

nnp

.

in

us

this

committee.

as¬

sembly. hall
were

to

our

personal

checks

large
and

individual

X

dustry are
with their

into

ployed

be

g,®.£?i£!t£."J* tin'V^

securities owned,
bonds-cannot safely
put away and forgotten. The

Stocks

over

and

changes.'

economic ' picture
mand

for

portions

the respective terms of office

l*35 served as

and

Chairman of

«ex pe-

.

fessional inGordon

M.

bamuel

of the team in

to

managers

invest

•,

-

.

How Do They Function?
monies

would

though it

were

be
a

—

worked
all through the night. Their plan
its possibilities—checked into "it of action was ready for the fol¬
—watched it for two years—with lowing week before the market
the result that his company pur¬ opened on Monday morning. They

single account.

invested

in

resources

common

should be

est .and

the

dividends

many

folio

the

are

and

%

deducted.

This averages

to 1%

annually. If there
Realized, profits
from: tne

called security profits.

the

Investment

Company

SEC all regulated

Under

Act

of

by the

Mutual Invest-

Funds must pay out at least
90% of their income to remain tax

ment

exempt. In usual practice they pay
out I00%.
; :
;
;
-

'A

1.1k

by

Gordon -before
th.
City
College rof New York, School
of
Business, Adult Division, Dec. 2, 1952.
My.

ave a

r~u

-

the

outlook

for

business

in

that

particular industry, tor business

general, are only soipe of the
things which must be considered

m

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

NEW ISSUE

149,500 Shares

which

into

>

The

>

largest number of Mutual;
Common Stock Funds.
a

?

u

who has

k

elected
serve

as

to

Vice--

Jan. 2.

colonialtaukT comfanv. new tork
Dec. 31/52 June 30, '52

'

*
Company

*
Trust

r

Guaranty

fully invested at all times, while
others attempt in part to catch <
cyclical swings. Certain Funds are
always diversified among many
industries, and others concentrate
more intensely in those industries
which
the
management
regard

He is identified with

partment.

Some

Funds

growth

favor

the expense of

dividend

Schaumberg, and Corwin S. Scott
to
be
Second Vice-Presidents;
William C. Eiseman, John P. Glor-ieux, Clinton J. Gregory, and Randall B. Tucker to be Assistant
Treasurers, and Robert M. Hill to
be an Assistant Secretary. At the
Company's Kingsway Office, London,

R.

Greville Steel has been

appointed Assistant Manager and

also invest in bonds and preferreds if management thinks the

Alfred

may

demands it.

situation

Then there

are

and

people

with

a

Their

is

They confine

securities of the tobacco industrv,

S. D. Fuller & Co.

the utility, automobile, steel, railroad

or

insurance companies.

How do

.

we

f

January 26, 1953.

The

measuring
?

:

-

business

yardstick

is

to

look

Continued

on

page

success

.

1,336,000

1,341,000

__

* T.f
*
.
the" Annual " Meeting
of
stockholders of • Savingrs - Banks
Trust Company of New York, held
jafi. 21, William Bryson, President of the Cayuga County Savings Bank, . Charles W. Carson,
Prcsident of The Community Sayings Bank of Rochester, J. Wilbur Lewis, President of the Union
Dime savings Bank, John I. Milpresident of The Troy Savings - Bank, George O. Nodyne,
President of the East River SavjngS Bank, and Daniel T. Rowe,
At

v.

.

Kings Highway
Bank, were elected di-

pregident of^^ the

Savings

*

the

certificates for
chares

mav

*

*

The Personal Loan

Department

Manufacturers Trust
Company of New York was moved
over the weekend from its former
location at 29 Broadway to larger
quarters at 67 Broad Street, where

par it

opened for business on Jan. 26

par according to an announcement by
be- the Company. At its new location,

the the department will occupy the
entire 13th and 14th floors and a

old $100 par
now

be

ex-

P°rtlaa af fhem,1.5th fio?r ?f 6T

Broad Street. This area is almost
changed at its Coiporate Trust Di- twice as great as the space at the
vision for the new $20 par value former quarters. Growth of the
shares
An item bearing on this department
is indicated by the
„

„

.,

proposal appeared in our issue of

distinguish the good

.

ones.

1,000,000
each of

shares from

to 5,000,000 and to change

vo1ue

16.555,000
29,006,000

of its stock- of

holders held on Jan. 21, the proposal to increase the number of

marily to those investors who are
sold on the prospects for a particular industry.
For example, a
specialty fund may concentrate on

be obtainedfrom the undersigned.

annual meeting

authorized

19,466,000

rectors,

in-

steady

61,879.000

62,956.000
21,130,000

un_

divided profits
.

Trust
Company of
New York also announces that at

the outstanding shares of $100
value into five shares of $20
to one or two value was approved. The split
appeal is pri- came effective Jan. 22, and

Specialty Fund.
investments

Secretary.

the

Another type of Mutual Fund
their

Assistant

are

institutional

concerned

$67,268,000 $66,406,000

.„ A9K aan

^

Guaranty

Bond Funds and

These

Anderson

D.

bfcs.

nMi.ooo

return. Some common stock funds

for

•

u. s.

good dividend records in the" the bank's relationships in the
past, while Others may hold highly Pacific
Coast . territory.
Other
speculative issues or a combina- Guaranty promotions are those of
tion of both.T Some ' Funds are Clifford R. Rohrberg, Frank R.

share

New York 6, N. Y.

conVersjon Gf the Modern Indus<rjal Bank cf New York, to the
Commercial State Bank and Trust
Company was approved by Superintendent Lyons of the New York
jbecn .state" Banking Department;on

have

industries.




haj pooc-

high

which their managers consider to

the

39 Broadu ay,

who

cupied the

degree of New York announces the appointvariation in management policies, ment of Guido F. Verbeck, Jrn to
Some
invest only
in securities be a Vice-President, banking de- is

income.
There is very little rappreciation in this type of Fund.

may

n

are

vestors

Copies of the Prospectus

^ th€ newspaper field, he engaged
lark'•in banking, textile and the gafSr h r"' ment industry. He was Secretary
S?nv -Tand General Manager of the DarS1r ling Stores Gorp., and Assistant
Ringier,. f o r-; vice.President of the Sterling-Nameriy Treas- tionai Bank "& Trust Company
urer, succeeds
Qnd the Public National Bank and
i,eonard
Trust Company. As noted in our
Livingstone
issue„of Dic. 25, ^age. 2518, the
hw

Cash & due fr.

there

Here

New Yoik limeS'

*

"

Funds

his business

York "Times'

Np

—--

Preferred Stock Funds.

per

announced on Jan.
Leichtman, President.

pan kin -.started

Mr

outlook.

Common Stock
-

been

stocks

business

(Par Value $.25 per share)

Commercisa

nf

was

15, by Jacob

portfolio Between bonds and;^atef.
resources
according to the economic Vlce-President,: has .heen.-e
Total
"Deposits
Vice-President and Treasurer.

their

.
as

Company «f.

primary withstebility a^dTdjust 'President untii

stocks at

Price $2

has

94

they had beeh

moving prior to Korea, and bought
that would benefit: by.va

best.

Regal Plastic Company

^ir)pn?

.

Ravfpr

stocks

Informed Selection almost defines itself. As I explained before,
it means the purchase of securities

Past records,: management reputation, profit margins, tax position,

„
. ..
Pankiri

.
.

T;rk"itrw"as,1. later joining the staff of the New
Vork -..Ame-rican., After

/.■

only after careful analysis by peopie trained to make such analyses.

0

ejected Vice-President and Comp- —"
"
tl
career on the

.

Bibulous proht i;h it
"

?

troller of Chcmical Bank &

of their defensive eq¬

uities

*

i

This advertisement is neither
any

Ringier

:

ue

r

buying and selling of their securir
ties, these also are distributed and
are

moved out

block of stock in
progressive • company,
"

v

i-'New York,
p
P*

;
.'
A
wartime inflationary economy;£ ^ 1
In - their every day operation
How many Mutual Funds are;
they base their investment . pro- there and how.' many types?
•
gram on t.he three foundation
-There are various types of Mu- stones of investment success, tual Funds
among the 105 regis- 1
Those three stones are informed tered. Each classification is de-'
selection, broad diversification
signed to meet specific investment "r
and continuous and informed suobjectives. Balanced Funds invest1 Arthur P.' Ringier
pervision. Let's look at them one in common stocks, preferred stocks by one. ;
;

management

of tlje

e.

r

Reserve

-

Arthur

o'clock that evening. They

large

V

now#

months

:1940 which is administered

a

most

/^ey

from

.

three

every

expenses

were

from

1,

securities in the portbe paid out to the

shareholders

fees

received

would

after

chased

stocks, pre-

terred stocks, bonds, or a corpbination of two or more. The inter-

broke^out,-in June, 1950, one of
the Mutual Investment Funds

of the

■

managed Mutual Funds was

one

as

Bank

Right here another exampJe is i
When the Korean War

intrigued several years ago by the
new
unbreakable bottle. He saw

objectives of the Fund and

whether their

in

A research man

designation

Federal

chairman, and

in order;

example is in or¬

an

to interpret

how

supervision.

uous

" ;

well

as

charter prescribing the invests

ment

;

Right here

The

invested

.

r,u

theni:ca_n do a Eood j0b of contm- Agent of the New York Reserve

in the com¬

der.

The company would operate under
,a

influence the rest

know

and

ures

whether an investr

pany.

•.

...

--

;

ment should be made

money in securities, we
would have a Mutual Investment
our

Fund.

; ;

'

Their findings

.vestment

Stephens

"0 Committees
Legislative Committees

brass.

pro-,

Mailory

U.

.Committee and Chairman

banks in the near future."

ry

em¬

riencea

crane

Burgess,

Messrs.

f^nroTdurf^u iTi'nt °L°S^ the ?ankingJ

DeA

product falls off.

a

of

which

for

change m the tax structure xan
jn our jssue of Jan. 22, page Ways &
specialists pay periodic visits vitally affect the profits of a bus- 296 reference was made to the
a}1soQ1fnf anT S
to individual companies and dismess. World politics can cause an
app0intment of Jay E. Crane as a;a" SJ^te
uss
their products, • their probupheaval in, an industry.
Only cjass q director of the .Reserve and Commissio,
'ems, their progress with the top men who have the tacts and tig- Bank
and
his

a

basket,

then

analyzed.

favorable? The
companies in that in¬
analyzed and compared
competitors. The indus-

its prospects

of

for

amount

dollars

Are

fulness

entire industry is

An

place

d

_Qtr_

91o4

Dec. 4, page 2134.

m

-

at

>

.

.

D.

1

T

t

*

Mailory

•

Stephens

fff

"l Tom'Tel Than'Toa

has increased from less than 100
S1X years ago to
Manufacturers

*

was

471 elected Chairman of the Board of

380 at present,
Trust

Company

announced on Jan. 28 the follow-

Continued on

page

45

Volume 177

Number 5190

...

The Commercial and Financial Chronicle

17

(477)

from

Economics

Social

and

commenting

the

on

Science

shift from

under

preferred and

common

in

case

the

Conse¬

past.

good

leasta

-

v

por-.

.

tion of life inv o

1

the

v e s

mundane.

*

*

At the time

;

f; enactment

o

P

r

o s

of

this

can

of

some

at

the

case

of

be

insurance

controlled

by the
for com¬

stocks

I shall

ter of

the

announcement of

continued

compara¬

the strong monetary de¬

of

50%) at

a

had the government not syphoned

estimate the

share.

a

as

an

stock dividend

price of around $80

a

mand which would have obtained

present

Aetna Life

use

While

it

is

difficult

earnings of

to

life in¬

a

surance

tax

marginal is only $2.00 or 2% of the market reinvested the tax pajer aoes noi
income, the exemption of an im¬ value of the stock in question. pay currently an income tax upon
a

late

the

the

A

of

tax

plicit

id e nt

331/3%

income

his

on

ofr $150

month

a

On the other
who

hand, the little

man

this reinvestment.'.

represents

the

the

motto

cost

him

to

of

gets

into

the

tax

But in due course

bracket

income. This

Prof. C. O. Fisher

a w

»>

by

Caveat

•

.

Emptor

to

a

and

vestments
problems,
a
change
growing out of the distressing fir
.

nancial* and economic debacle

second

to

those

man

then has

the

of

of

claim

to

with

investment; ;;

erf

-

.

operation.

v

\

.

'

,

.

•

>

II

..

Home Ownership

III

tary
In

sense.

;

Preferred stock is

a

mone¬

Stated in another, way.
to rent

It has been to

the

house

own

owners

than

house

a
a

|

Ownership

the dreams of avarice" of the
mon

stockholders.

house.

If

with his home

net return of 5% on his pur¬
chase price, the gross rental, in¬

a

cluding depreciation, maintenance)
Insurance and taxes, must aggre¬
gate
approximately ' 10%.
This
means that the home owner, liv¬
ing in an $18)000 house, pays him¬
self; a
rental of $150 monthly.
the past

it has been pos¬

sible ordinarily to occupy a rented

This, does not

mean

that the

ber of stockholders is

but it does
of

stock

num¬

the willingness of people to

build

and to buy houses with the expec¬
tation that a rise in valuation will

Railroad)

ven

may> find' themon noth¬
ing. And the first claim on nothing
"is not substantially better than is

-selves with

a

-

prior claim

the tenth claim

on

measure

rental.

i

owned:

stockholders

is

A.

is

*

'

v

Normally, when a corporation
in difficulty it will resort to

various

measures

to

prolong its
that, when

life and with the result

failure finally comes, there is UN
tie or nothing left after the
4
ment of bonds with which

the

preferred stockholders.

toifcay
Also*

if
a.
corporation
becomes
ex¬
tremely prosperous, the preferred

stockholder finds himself

Continued

on

as a

poor

44

page

■

i

$6,000,000

k,

|

3%

•

by the

of
small

mass

•

relatively

'

:

.

(Philadelphia Plan)

;

,

minority \ in the upper
income groups has been relatively
large.

has been

Y

effec¬

>

and also in the creation of
stock
worth

in

which the

in- a
more

a

\

I'

•-,

$200,000 semi-annually August 1,4953 to February 1, 1968, inclusive

Priced

Y
Y

ownership of

corporation' is
the little man,

:

.

■

.:.

to

Y-

-

yield 2.20%

Y,

"•

•

to

'

'

3.10%, according to maturity
■

■

■

Issuance and sale
'

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

HALSEY, STUART A CO. INC.
L. F. ROTHSCHILD &, CO.

etc. up to a top of 92% on income
excess of $200,000 a
year. Per¬

in

to put all those with
taxable income in the

as

$44,000 of

•!y

■

rY

Y

■

A. G. BECKER A CO.

BAXTER, WILLIAMS & CO.

IRA HAUPT & CO.

HAYDEN, MILLER &, CO.

INCORPORATED

THE ILLINOIS COMPANY

•

t.

NIcCORMICK A CO.
January 23,1953

McMASTER HUTCHINSON A CO.

MULLANEY, WELLS & COMPANY

I

\ ' \
I. i

•»-vv

•

situ¬

r

*

,

given
to

mature

.

\ •;
i
;
Y
"
To be guaranteed unconditionally as to payment of principal and dividends by
' *'
Y [Illinois Central Railroad Company
Y
'
Y
.

The impact of the gradu¬

ated income tax

To

,

tive, in a manner indicated herein
below, in modifying somewhat the
traditional pattern of ownership
ation

»■

Equipment Trust Certificates V

whereas the amount owned by the

At any rate, the facts in¬
so-called
rich category.
that, as related to house
valuation, rentals have
usually
Recalling that the major portion
fceen too low. But the tax situa¬ of investment in stocks
has come




nothing.

*

that the amount

mean

haps it would be valid to classify
for income recipients in such manner

the inadequate income derived as

dicate

cor¬

poration fail, the preferred stock¬
holders
(this was true for ex¬
ample in the case of the New Ha¬

.

some

com¬

a

j

A-

insignificant

house,, valued
at.
$18,000,
for measured by take-home^ than to
something less than $150 a month. the big man; The present tax law
I think the explanation for this is graduated steeply as to income,
disparity between house valuation the 48% bracket • beginning at
and house rentals has been true $12,000, the 75% bracket at $44,in the past primarily because of 000, the 80% bracket at $60,000.

compensate in

Should

Illinois Central;
Equipment Trust, Series 36
;

completely paid for, is to receive
small

But in

..

bad invest¬

a

Of Stock

general it has been much more

economical

J.-V-:.'": :-

;

checks

against
it) and subsequently the owner of

,

'

those ,of cost in

'

I

.•

Traditionally' home ownership
Traditionally most stock in most
been justified more on psy¬
corporations has been owned by a
chological and emotional grounds
relatively small number of people.
on

exces¬

/

...

has

than

Query:

an

currently in
,•

r.

The Little Man and
"

-

as

increasingly .desirable uri-

comes

der the tax program

refer¬

.

pay

Preferred Stock Y

,

the. field

commitments.

economy

nor

issuance

characterized'

are

sive price for the discouragement
to venture in pioneer fields? J ■:
-

less than the shifting of sur¬
plus to the capital account and the

take-

a

that

venture

the company

pays one s self
;.of stock more valuable to the rich
by occupying one's own home falls price for equities all the more at¬
man and consequently his demand
tractive to the little man.
'
from a gross of $150 a month to a
characterization, I am not at all
for it may push the price up to a
persuaded that we have arrived at net of about $66 per month. In ..Without attempting an appraisal
figure above that warranted from
a
point when it no longer is in¬ short, home ownership, thanks to of this .situation from the point
,the point of view of the little man.
cumbent upon the investor to be* the concealed tax < subsidy, Yhay of view of social welfare and eco¬
If this were the whole story one
ware
or
to give serious thought be no more costly at; the present nomic policy/the fact remains that
"would have, to conclude that the
to) his
financial* opportunities. -time than is the rental of a house the current tax program inevi¬
little" man, in the ownership of
What I shall attempt at this time owned
tably tends toward a redistribution
by someone else.
this stock, pays a prohibitive price
of the ownership of stock in such
is ar cursory discussion of some of •.
From; the figures given it' is
"for the so-called "growth."
manner as to reflect the value of
the generalizations which stem
obvious that the saving increases
such
from
current'' economic policies, both with an
ownership respectively/ to
But, on further observation, this
increase in the tax
with especial significance deriv¬
people in different income cate¬ conclusion is probably subject to
rate applicable to marginal in¬
some qualification.
It must' be observed in
As already in¬
ing; from taxation policy.
Per¬ come and also with an increase in gories.
haps- it would be no over-stater the valuation;of the house owner- passing, that this redistribution dicated the rich man, following
may be offset in some measure tax payment, may
meat to say that every financial
not have 1 fall
occupied. *0ne can ..probably de¬
by the slender margin -between, the money he wants to invest in
problem
at " the
present -time, fend this subsidy 011 the
theory
income and the cost of living to this type of stock and,., further¬
whether it be corporate or -per¬ that home
ownership makes for the little
man, a margin so small more, what investment funds he
sonal, must be approached with good ^citizenship and the creation
in many cases as to force the little does have might be invested more
due consideration to the impact of of
-intangible -values. ', That the¬
fellow to forego the opportunities advantageously in tax exempt se¬
taxation. Y Y.
ory *1 am not interested in de¬
to buy what he ought to buy;when curities.
How strong this factor
I shall attempt r to generalize, veloping -at the present time, as I
he ought to buy it:
is, and to what extent it consti¬
perhaps in a maimer/that is more wish merely to call attention to
dogmatic, than* warranted, - on. a the fact that home ownership be¬

ence

mat¬

a

implicit in the purchase of bonds,
is represented by a premium of
$2.00 on a $100 investment.
To
get this residue of $2.00 which

the 1930's. Despite Mr. Roosevelt's

in

must remain

conjecture.

.

governmental attitude toward in¬

number 'of items

the

loan at the rate of 5%, another for the little man is three times
ment for individuals.
This gen¬
the stock, if he needs money,, can
$600 is deducted from taxable in¬ that for the big man. Little won¬
sell his securities with the result eralization must be appraised in
come. .Assuming
again the mar¬ der, therefore, that the big man
the light of certain) qualifications
that he pays an income tax of 26%
ginal tax rate of 33%%, the net seeks a naven oi retuge in tne
on his capital gain,
This process, easily understood. First, it is ob¬
cost of this money to the home ownership of municipal and state
vious that preferred stock repre¬
or sleight of
hand, enables the big
owner is $400.
This again rep¬ securities^ the income from which
sents a
hybrid investment; The
is deductible-from gross income man to substitute a 26% tax for a
resents a reduction of
approxi¬
owner has neither the
security oi
in computing Federal taxable in¬ tax at the rate of 75% or more. It
mately $33 a month in the cost of
a
bond owner nor does he have
follows that the tax gain from a
home ownership. The two reduc¬ come. The- shift of the demand by
what Dr. Johnson called the "po¬
the big man from equities of tax substitution of capital gains for
tions, therefore,')mean that4 the
current dividends makes this type tentiality* of growing rich beyond
exempt
securities* results in a
rental which one

s

philosophy of Caveat Venditor. 1
know
of
no; more :■ appropriate
language by which to character¬
ize the revolutionary change -in

finance,- particularly

in

the risk attendant upon the
pur¬
chase of stock, as opposed to that

a

has

implicit in the
1

net

Furthermore, if the home owner
home of $6.00 or 6%.
■
a
$12,000 mortgage on his
In other words, the take-home
house and pays interest on his

phi losophy

reflected;

a

only $100

law /

represented a
change
of

common

advantage

man

tax

month when the tax up to $4,000 would pay approxi¬ may be expected to declare a stock
saving is taken into account.
mately 25% tax on his marginal dividend (which means no more

;

the

rich

of "growth" stock, does
itself to statistical meas¬

to the

Does

Roosevelt said
new

to

the

to

corollary, as applied
big man, derives from the
impact. In general, taxation
rich, the market price
illustration. Aetna Life has been
forces the big man to purchase
mon stock fails to reach the level
paying for the last few years a
high grade riskless securities
which otherwise it would attain, dividend at
the rate of $2.50 an¬
rather than securities in the field
and the small man is in a
position nually. The stock has been selling,
of business pioneering.
Assume,
to buy stock at prices more favor¬ in the latter
part of 1952 (before for
example, that the appraisal of
able than would exist had the rich

stocks and bonds.

concealed

an

of

Act

1933

-

Secu--

the

of

rities

offset

company, chiefly because
of the setting aside of
contingency
From
another
subsidy. This can
point of view reserves which may or may not be represents the
compensation for
But at be illustrated by using the fig¬ ownership of stock is worth more needed, it is a safe guess that
risk, the rich man subject to a
: > ures mentioned above, namely, an to the little man than to the big Aetna Life has been earning ap¬ tax of
75%, must get a gross
$18,000 house and $150 monthly man. For illustration, assume that proximately $10.00 a share. Should
spread of $8.00,. because the $8,00
rental. The income tax laws do the man in the 75% tax bracket the $10.00 of earnings be distribu¬
gross
spread
following the ' im¬
not include as taxable income the receives a gross income of $8 or ted to the big man in the 75%
pact of taxes becomes $2.00. This
implicit rental which the home 8% on the market value of" his bracket his take-home, following situation
prompts the rich man to
owned pays to himself. If, there¬ stock. The net take-home for this taxes, would be $2.50 per year.
commit his funds to the so-called
fore, the college professor pays man, after* the- 75% tax impact; If, however, $7.50 annually are safe investments rather than:

consideration of the sublime to

analysis of the mundane.

in

time.

funds

off a substantial portion of their
has
The following observations prob¬ tion
changed
this.
Every
ably represent a shift from the home owner is a beneficiary of a purchasing power.
*

illustration

found

vestment

of progressive taxation, compared with

investor, with income in high tax brac&ets. Reviews
tive merits of

larger

retlects the smaller volume of in¬

"Caveat

the

Points out bow small investor has advantages

system

our

the

a
that

quently, the demand tor equities

Emptor" to the "Caveat Venditor" philosophy in investment
transactions, contends this change does not indicate that it
is no longer incumbent on investor to beware in selecting
investments.

the

these

was

Fisher,

with

matter of simple

arithmetic

Wesleyan University, Middletown, Conn.

Prof.

people

incomes, it is

By CLYDE OLIN FISHER
Professor of

the

A corollary from the above an¬ tutes an
alysis points to tne desirability of accruing
people no the ownership of so called purchase
longer have the abundance of "growth stock" by the
big man not lend
funds available for investment as rather than
by the little man. A urement

Investment Dicta

\ ■ i
U t

18

The Commercial and Financial Chronicle

(478)

***14

Pension Fnnds

Market for Mortgages
By ROGER F. MURRAY*

Vice-President, Bankers Trust Company, New York

Pointing out that
$10 billion, and

corporate

pension

funds

aggregate

now

growing at rate $1*4 billion

are

a year,

Thursday, January 29, 1953

the

save

operating

conclusion

same

This

expense.
may

be

not

reached, however, when we are
type of investment. As a when current contributions are re¬ lacting as fiduciaries. We cannot
consequence, there is a natural ceived in large amounts, he must very well have our customer take
tendency for pension funds to still be selective in the choice of the risks, however small, so that
make mortgage loans only in cases outlets. The problem is only ag¬ we can save the expenses.
My
where the owner or the tenant has gravated by having heavy receipts point is
simply that as a con¬
anexceptionally
strong
credit from amortization.
scientious
fiduciary, a
pension
fund trustee feels called upon to
standing.
The volume of such
Ease of Valuation
loans is limited, and often the fi¬
incur certain servicing and han¬
Any mortgage investment has dling expenses which he could
nancing is handled through a sale
and
leaseback, arrangement
or an advantage for valuation pur¬ avoid if he were making the same
term lending in which the pledge poses because of the custom of
loans for his own account.
of property is not employed. Thus, carrying it at the face amount as
In the final analysis,
handling
the interest of pension funds in long as it is in good standing; The
costs must come out of the yield
conventional mortgages is quite same, investor in 1946 might have
and, as a consequence, the differsmall and usually restricted to se¬ made a 3 V2 % conventional mort¬
on

-

..

H

to date the Treasury has been un¬ trustee must put the money to
willing to authorize pension funds work as soon as possible if,he is
to accumulate reserves for losses to keep up the earnings rate. Even

as a

.

Mr.

Murray decries lack of investment in mortgages by these
funds. Lays chief cause to refusal of Treasury to authorize
pension funds to accumulate reserves for losses on this type
of investment. Says FHA and VA mortgages represent logical
fields for pension funds because of: (1) limitations of possible
losses; (2) liquidity resulting from amortization; (3) ease
of valuations, and (4) relatively good rate of return.

any

lected

and

commercial

tial between FHA and VA mort¬

loan and also bought a 2% %
gages and good quality corporate
public utility bond of high quality
bonds becomes very small. Under
at par.
His public utiiity bond
I assume, however, that you are
prevailing market conditions with
shows him a ten-point loss while
an
We estimate that trusteed cor- world there are
few topics on more interested in the question of
ample supply of corporate
FHA and VA mortgages since they he can still carry the 3A/2% mort¬
bonds and with the broad field
porate pension funds now aggre- which we are jusified in making
gage
at par, even
though the
are the ones for which a shortage
of common stocks available, pen¬
gate about $10 billion and that dogmatic predictions. Nevertheof funds has been apparent from whole world knows that the 31/2%
sion
funds
are
they are growing at the rate of less, I feel no hesitancy whatever
simply not at¬
time to time.
The insured and rate is entirely out of line in the
in predicting that the demand for
tracted to FHA and VA loans.
$lJ/4 billion a
present market.
The fiction of
guaranteed mortgage fields, more¬
mortgages from pension funds in
year. While
Thus, we conclude that the rate
carrying mortgage investments at
1953 will be negligible. If I were over, represent logical fields for
of return at this time does not
not
large in
pension funds because they offer par, however, is helpful for state¬ exert a
a
relation to life
mortgage banker I would not
sufficiently strong pull to
ment purposes and for presenting
opportunities for nationwide lend¬
count on any significant volume
insurance
overcome a certain reluctance to
a good surplus when the
investing
ing and important economies in
of funds going into real estate
co m p a nies,
enter the mortgage field. Contrib¬
institution is being examined.
handling. I shall deal primarily
mutual sav¬
mortgages. I would assume that
uting to this reluctance on the
with FHA and VA loans, there¬
The pension fund trustee, on the
pension funds would invest less
ings banks, or
part of many corporations is the
fore, in discussing the appeal to other hand, has no surplus account
than $100 million in mortgages,
distaste for having any part in a
savings and
pension fund managers of four to worry about, does not have to
loan
associa¬
foreclosure action, even though
perhaps substantially less than
major characteristics of these adjust his book values to market
that amount.
the corporation may be several
tions, these
values on any particular date, and
types of investments.
In presenting such a negative
trust
funds
steps removed from the actual
accounts only to the corporation
conclusion to you, I am obviously
nevertheless
event. I have in mind the case of
Limitation of Possible Losses
for whom the pension plan is ad¬
*
'
*
•'
under an obligation to give some
the XYZ Company which offers
might appear
The
insurance
and
guarantee ministered. The presence or ab¬ a
substantial reasons. Otherwise you
to represent a
highly advertised service or
features limit the possible, capital sence of fluctuations in market
su bstantial
consumer product.
might gain the impression that
Let us assume
losses
of
a
lender
to
nominal prices at any particular period is,
that for good reasons the bank
pension fund managers have a
potential mar¬
amounts.
This naturally appeals therefore, relatively unimportant.
Roger F. Murray
ket for
real
J prejudice against mortgages, or to any .investor. However, a pen¬ The results of an invesmertt pro¬ acting as trustee of its pension
estate
mortsimply have not considered them
plan is unwilling to waive amor¬
sion trust is a very long term in¬ gram for a pension trust are not
tization on a group of VA loans
jgages. After all, even a few hun- adequately as a possible outlet for
vestor, and immunity from loss at measured by months or years but
dred million dollars a year of new funds. I can assure you that penduring a period of adversity. The
any particular time is not the con¬ literally by decades. Realized cap¬
money make a difference in the sion
fund trustees have given
servicing agent is so informed and
trolling
consideration.
Pension ital gains and losses, together with
mortgage market. It is quite ap- careful thought
to real estate fund trustees feel satisfied to pur¬ earnings over a long period of he takes the-necessary steps un¬
der the guarantee.
propriate, therefore, to include mortgages and that their present chase
It would be
good quality corporate years, constitute the performance
most extraordinary if in the course
private
pension funds on this policy of not being substantial bonds with
justifiable confidence of a pension fund. Fluctuations in
of subsequent developments the
morning's panel discussion of the lenders is based on a thoughtful that
they will be paid at maturity. prices which result from changes
institutional sources of demand consideration of the comparative
name of the pension plan did not
Fluctuations in priced during the in money rates are relatively un¬
for mortgages.
somehow become known.
If so,
advantages and disadvantages.
intervening years arqnot impor¬ important, and obtaining immu¬
It is my function on this panel,
the XYZ Company in 'that area
One general point should be
tant,. and experience has shown nity from them by the technicali¬
tiowever, to strike a distinctly * recognized at the outset because 'that! with a careful selection of ties of valuation procedures has may have destroyed the goodwill
for which it is spending large ad¬
negative note,, In this uncertain of its bearing on the ^ppropriate- credits * and with attention
to little or no appeal.
/j,.
ness of mortgage
loans: whereas
vertising appropriations. Just for
changing conditions* 9 well di¬
address Ity
i\ir. Mi^ray at tW most mortgage lenders use some
Rate of Return
/the .sake of a moderately higher
versified corporate bqhd portfolio
Eighth Annual Conference or the MortJr.
gage Bankers Association arid New York
kind Of. H mortgage experience re- will give a yery good perform¬
The final advantage in making yield on its - pension plan, why
University, New York City, Jan. 28,1953. serve on their conventional loans,
should the XYZ Company run the
ance.
;
mortgage • loans is the relatively
risk of> finding itself in that posi¬
The willingness of pension fund good rate of return for compara¬
tion?
Why should it not confine
trustees to invest substantial
tively short average maturities.
itself to corporate obligations and
amounts in common stocks also We are probably all in agreement
• '• */
shows that they are. seeking to ac¬ on. the necessity or at least the equities?
CHICAGO TITLE AND TRUST
complish considerably more than desirability of an increase in rates
Summary .and Conclusions
simply a -limitation of losses. A on FHA and VA loans, but even
COMPANY
To summarize the;point of view
pension fund is justified in mak¬ without these increases we must
111 West Washington Street 9 Chicago
ing these equity investments for concede that for intermediate term which I have outlined in the hope
the favorable return which can be securities the rate of return pres¬ of giving some -of the principal
obtained over a long period of ently provided is fairly good once reasons for the absence of pension
years. Again, market fluctuations
CONDENSED
servicing and handling charges funds from the; mortgage market,
BALANCE
SHEET
types

of

gage

industrial property.

,

•

4

,

-

t

.

t

-

j

_

.

.

-

primary'importance be¬ have been reduced. When we start I trust that I have explained, why
pension fund is in a to consider handling costs,-we en¬ mortgages make only a limited
position to act as a true long term ter a very broad field Which I can appeal, with the result that pre¬
investor. Not having demand lia¬ eover
this
morning /only very vailing; yields do not attract any
bilities as do most other institu¬ briefly. However, I should like to significant portion of the present
tional investors, the pension fund mention two
major factors which large flow of funds. Most of these
can well afford to go through pe¬
prevent us from taking advantage reasons are fairly basic, and I
riods of stress without too much of the full
savings, in cost which doubt that ithey -can be easily
concern
over
price fluctuations are afforded by the latest im¬ changed. Nevertheless, the newly
are

As of December 31, 1952

not of

cause

ASSETS
Cash

'$ 3,876,759

Marketable Securities
U. S. Government

(at cost)

Obligations.

$25,625,094

State and Municipal Bonds
Other Bonds and Preferred Stocks..
i Common Stocks

i

First

•

Mortgages-.

4,044,184

5,623,050
4,755,553
184,601

the

because it does not have to sell

curities

in order to

meet

payments."
•

5,070,202

Accounts Receivable (less reserve)................

764,397
524,396
102,338
924,704
5,500,000
1,500,000

Sundry Loans and Investments.
Real Estate

(less depreciation).
Stocks of Associated Title Companies (at cost)
Chicago Title artd Trust Building Corporation...
Title Records and Indexes
;

Total Assets.

.

.......

.

.

1... J.. i

$48,354,874

^Market Value $42,811,500
i

i

*

LIABILITIES

,

Trust and Escrow Cash Balances

.V

"$14,602,711

Cash

Deposits as Indemnity Against
"Specific.Title Guarantee Risks.. ;.4.
Accounts Payable
Accrued Taxes Payable.
-4

2,331,753
127,588

.......................;..

Reserves for Losses and

1,429.939

Contingencies

4,146,928

Capital Funds

Capital Slock
■Surplus
t

Undivided Profits

$12,000,000

Assets in the

amounts

pledged
trust

$48,354,874

provided by

statutes of Illinois have been

to qualify the Company to
and escrow cash balances.




to many

investors is the; contrac¬
tual amortization which; provides

do business and

Jo

secure

follows:

the

gage

are

as

special
v

prob¬

(1) We act

as

r

trustee not for

widely

as
on

Mort¬

sion

fund

characteristics

and

a

many

individual trust accounts varying

loans-

of

Bankers ^Association
of
America appointed to study pen¬

to size. Large FHA
multi-family projects

problems will find portfolio man¬
agers interested > and cooperative.
I am-confident that

trustees

value

pension fund
highly the flexi¬

bility of their activities and are
be appropriate in
sur¬
always eager to explore; new fields,
prisingly small number of Junds.
steady return flow of funds each
of investment whichJnay be suit¬
If we were to take a block of
year.
This provides a degree of
able for their purposes. I would
liquidity to .the portfolio to meet FHA or VA home mortgage loans be considerably less than frank
iri a certain housing development,
any demands which may be made
we
would have to split up our with you, however if I did not
upon the investor and also makes
reiterate my earlier prediction
"available hew money for invest¬ commitment into perhaps 40 or 50 that
"at least during 1953, pension;
ment under varying conditions. V accounts. In taking this step we
funds twill be v a, factor rof very.,
would immediately lose most of
While important to mbst insti¬
little importance in the real estate
the very important advantages of
tutional investors'- the amortiza¬
mortgage market.
simplified bookkeeping by the
tion feature is not very significant
servicing agent. " 1
.
to* a pension fund.
Thetypical
Arthur M. Idler Now With
fund is growing rapidly and has
(2) Tarn sure you all appreciate
G. H. Walker & Co.
the difference
between lending
no
need for liquidity.
Further¬
would

a

its

rapid

per annum,

25,715,955
Total Liabilities *

One of the desirable features of

insured and guaranteed mortgages

of funds

of
15%

rate

often amounting to

3.715,955

These

large pool of funds but for

Amortization
-

formed, committee

techniques.

+

Liquidity Resulting from

more,

10,000,000

t

..

/

35,162,280

provements in mortgage servicing
lems

\,

'

40,232,482 *
Reserve for Market Fluctuation....

;

se¬

current

growth,
or

more

makes the return flow

for ..investment

of

little

In fact, where the rate
of growth is high, it may be pref¬
advantage.

erable to
acquire good quality,
long-term .securities with no re¬

in your own" portfolio and
making loans in a fiduciary capa¬
city. We are accustomed to omit¬
ting some frills and even some of
the
less
important
safeguards
when
we
calculate
that
they
would cost us more to perform
than we could possibiy suffer in
the way of losses.
We conclude

(Specin) to The

money

ST:

—

.

,

'

Arthur M.

Idler has become .associated with,
G.

H,

Walker

& Co:, 503 Locust'

Street, members of the New York
and
Mr.

Midwest
Idler

Stock

for

payment feature in order to ease
the problem of investing funds at under these circumstances that we with the St.
any one time.
The pension fund will take the business risks and Company.
,

Financial Chronicle)

LOUIS, Mo.

Exchanges.

many

Louis

years

Union

was

Trust

Volume 177

Number 5190

...

Seven

great divisions welded into
It takes

/
:

.

a

requires

Imrnm
[BP#'fl
lKv

V

■!

•

11

one

to

industry whose

maintain operations.'

very essence

,

is bigness, National Steel is big!

J

..

National Steel owns and operates vast mines and mills, the world's largest
°Pen hearth furnaces, a great fleet of lake ore boats arid river barges, the
biggest and fastest electrolytic plating lines, one of the world's largest
;■

"

And to meet the growing needs of tomorrow, National Steel continues to
expand, with a capacity of 6,000,000 ingot tons annually set for 1953.

ett

\

an

continuous rolling mills.

\ NATIONAT /
\
/

HANNA IRON

•

•

completely independent . . . completely integrated
leading steel producers.

.

.

.

one

of the

nation's

NATIONAL MINES

ORE

COMPANY, Cleveland, Ohio—Iron

properties and mines in Minnesota, Wisconsin and
Michigan. In addition, National Steel is participating in
the development of the impprtant new field in LabradorQuebec, where great reserves will help to assure the future
supply of iron ore—the basic ingredient of steel.
ore

,

This, then, is National Steel... growing to serve the needs of all America
•

j'

19

,

industry just

|BHk
rnVMrnSi
Ifflfll

"(479)

lot of doing to make a ton of steel. Probably no other industry
tremendous in variety and extent as those neededv

resources so
in the steel
And in

imKm\

'

The Commercial and Financial Chronicle

'

CORPORATION-Coal

mines

and

THE HANNA

properties in Pennsylvania, West Virginia and Kentucky,
supplying high grade metallurgical coal' for National's
tremendous needs. Recently, coal resources were further
expanded by the acquisition of a substantial interest in
two
large mining operations in the Pittsburgh area.

FURNACE CORPORATION-Blast furnace

GREAT

division of National

LAKES

STEEL

CORPORATION—Located

at

Steel, in Buffalo, New York. Its four
the pig iron production of National's

Detroit, Michigan, this unit of National Steel is the lead¬
ing steel producer in that important industrial area. Its

eight other blast furnaces in Detroit and in Weirton,
West Virginia. In addition, it is a leading producer of
all grades of merchant pig iron for foundry use. *

complete steel-making facilities enable Great Lakes Steel
to furnish a wide range of industries with a large volume
and variety of standard and special steels, including
famous N-A-X High-Tensile steel.

furnaces augment

<

ts

i

STEEL COMPANY—The world's largest independent manufacturer of tin plate, with mills at Weirton,
West Virginia, and Steubenville, Ohio. A pioneer in
developing the electrolytic process for applying pro¬
tective coatings to steel, Weirton operates the world's
largest and fastest electrolytic plating lines. Products
include a wide diversity of other finished steels.

STRAN-STEEL DIVISION—A

WEIRTON
-




unit

of

Great

Lakes

Steel,

v.

with

•

NATIONAL

STEEL

*

'

■

PRODUCTS

t

COMPANY,

Houston,

:

Texas—A

plants at Ecorse, Michigan, and Terre Haute, Indiana.
Originator and exclusive manufacturer of the famous
Quonset buildings. Other principal products .include
Stran-Steel nailable framing for the building industry
and Stran-Steel flooring for trucks and truck trailers.

!:

leading steel distributor in the Southwest,
furnishing a wide variety of products to thousands of
customers in a ten-state area. The huge plant and warehouse—A Quonset structure fabricated by the Stran-Steel

Division—provides five
■'
.

acres

-

of floor

space

•

»

s

under one roof,

'

i

•
.

NATIONAL

STEEL

GRANT

SERVING

AMERICA

ACO

BUILDING

BY

SERVING

R PO R AT IO N

PITTSBURGH,

PA.

AMERICAN

INDUSTRY

|

20

(480)

The Commercial and Financial Chronicle

been avoided

A Year of Decision
By

WARREN

Chairman

is

the

LEE PIERSON*

of Trans

Airlines

World

and

Administration

world

well

Six weeks ago I was on a

flying

from

Honolulu

United States mainland.

tue

to

This

was

the last lap of a special TWA surv e

which

:

circled

'

the

globe.

[few

A

minutes

before

de¬

our

Gen¬

parture,

Eisen-

eral

had

ihower

'! taken off from
ja Hawaiian
air

base

his

we

from
While

Pierson

Lee

Warren

| waters of the
Pacific Ocean,
I

terrific

the

A

our

Jndo*

Community,

China and Tunisia

the

among

are

this Year of
new Federal Ad-*
in

[problems faced
[Decision by the
[ministration.
i
Definitive

by

Korea, the Euro¬

Defense

pean

of

some

faced

tasks

President.

new

about

think

began to

*

Policy

v

.

people has been focused on Wash¬
ington.
They are waiting anx¬

iously and eargerly for the

new
them what

Administration to tell
wr ?

done

be

prcb

their

about

situation

The

ems.

look

to

many

is

awe-

serve

ths

stone

of

into

view

the

the

nec¬

was

if

past

in

present

pre-

balance

was
the keyforeign policy
Nineteenth Century into

Russia

our own

ruled

was

to

prevent

encroachments

in

Russian

more

Catherine
Great

ranks

the

with

(Czar from

founder

as

the

than

had

and

(now

Russian—now

sought

had

built

Leningrad)

{
access

St.

•

the

to

Petersburg
the Gulf of

on

Catherine II also under¬

the

stood

1725)

to

Soviet—Empire.

Peter

the

Peter

1689

the

of

Russians.

importance

her

to

adopted country of expanding geo¬
graphically towards 4he Baltic
Black

and

make

Seas—and

them

both

sought

Russian

lakes.

It is

interesting to recall, in

ing,

that it

the

snug

teenth

the

end

Century

rings

Asia

in

Pearl

as

of

there

and

encouraged

and

free

a

were

stir-

to

the

feel

the

policy.

We

Russia,
navy

de-

of

our

bases—such
led

the

independence
strong

a

China

Japan

bulwarks

as

against Russian ambitions in Asia.
Thus, a sort of balance of power
The first World War

have
not

resulted

the

in

United

and

men

the

stalemate had

a

States

resources

Allies.

might well

But

thrown

its

the side of

on

cies

formulate

to

and

with

grams

This is

new

country became
involved, and furnished the
margin of power by which Gerwith

many,

her

allies,

feated

was

ernment

we

past 20 years our gov¬
has had no
definitive

she

Revolution

Another landmark
tion.

was

the French Revolu¬

Many things

flowed

must not

from

know today
extraordinary

we

this

foreign economic policy.. Impor¬
tant
and
costly — moves have
been made. Generally speaking,

clash of social forces—such

these

the

—

actions

immediate

taken to meet

were

emergencies

home

at

recognition of

individual

the

as

liberty;

the doctrine of the

sovereignty of
people; and the stimulation of
the principle of Nationality.
,

pr
abroad.
Perhaps
themselves made such

times

the

expedi¬

an

These developments would

war¬

rant further comment, but for our

ent, stop-gap approach necessary.
purpose today, I wish rather to
During this period the United stress
another result of the French
{States faced everything from do¬ Revolution. That
was the definite

mestic depression to participation

3n

a

world-wide war, followed by

something

in

new

international

!elatioiis—the Cold War—which
0

many

has been

onflict which

tragic

as

as

the

it.

preceded

It is important that we now for¬
mulate a foreign economic policy

introduction of Russia into Euro¬

contains

elements

of

per-

anency and which is understood
ot only by the American

people
by the rest of the world,

ut

j I have stressed the word foreign
economic policy.

to

Necessary

It

hardly

seems

point

out

this

to

that it is not possible en¬
tirely to divorce economic policy
from
political policy
and
vice
group

Versa.

ing role played by Russia in over¬
throwing Napoleon, her place as
a
European power became un¬
assailable.

of the United States had lit¬
interest in any aspect of for¬

...

;

;

Unhappily for the world, Russia
had
no

experienced

Dictator

Peter

the

to

the

Great,

of

tle

Romanoff Czars has brought even
to the people of Rus¬

II

and

the

later

They considered it less freedom
something abstract, uninteresting, sia.

1 Today, in 1953,
choice. As the most
tion

on

earth,

Council

Kansas

on

the

City,

have

we

the

Affairs

Kansas

dipped

torical

na¬

been

center

by Mr. Pierson before the

World

have

powerful

pushed reluctantly to
An address

I

significance.
we
have no

City,
rg>&




of

pretty far into
past, but I feel that the his¬

must

background I have recalled
be kept in mind if we are

to understand

Missouri,
y

a

few major politi¬

cal developments which

within

curred

Greater

many

of

us

ing problems facing the

new

Ad¬

Our Allies have
urged that
lack the economic means to

of

minority

sup¬

because

the

the
and

1939

Britain

the
was

time

second

drawn

was

balance

of

threatened.
the

United

in, and the

war

globe.
A miltary victory was
won, but
peace in any real meaning of the
has

not

resulted.

The

bal-

of power in both

Europe and
Asia was
completely destroyed.
Poland, Eastern Germany, parts of
Austria, most of the Balkan area
the Baltic

heavy drain

omies

the United

states

of

called, "capitalist" countries and
to confuse their people. As an
instrument of subversion it has
proved
uniquely effective,
and
when the time is ripe it has been
followed up by force and the most

brutal ruthlessness.
Ih meeting
this
we

what

by

which

it

is

development,

the

an

are

smokescreen

hopes

enemy

to

broken

up,

and

China

also

fell

the

have

oc¬

lifetime

of

present. Whether any

oJUftaa .xoiRd-^roa:.,^hcwAld-r4iav«

as

reduces
barriers.

powerful

their

Meanwhile, the

nations

once

effective-

on

served

as

have been reduced to

either
our

side

shields

impotence.

■*

Second,

the

for

necessity

an

Ir0n. Curtain, the suppression of
intercourse with their neighb°rs> and a constant atmosphere
°*

tension

and

distrust in

order

to preserve their own uneasy rule.

of

on

aid

World

States.

gifts to

second

development
nebulous, but' certainly

these

To

three

Since the end

II, we have spent
billion in loans or

great consequence. I

of
refer to the

changing position of the

British,
Dutch and' French Empires, and
the resulting restiveness of great

our

re¬

enemies, Germany. Italy, and
Japan.
We in the United
to

carry

definitely.
we

States do not

this burden in¬

on

Indeed,

cannot without

feel

we

that

facing internal

bankruptcy. On the other hand,
the recipients themselves are
tired

level,

°Pment—the

invention

fection of modern

they not support them¬

can

selves

and

The

their

system of

armies

is

answer

trade

has

breakdown

same

suffered
its

as

the

political

1

system.
of

the

major factors

First

and

per-

and

re¬

lishment of rigid barriers to trade
between the countries behind the
Iron Curtain and those outside it.
Second:

weapons

countries

the

loss

and

possessions

in

by

Japan

taken

countries

them

gentina

once

Latin

some

which

largely

world markets.

the;

colonial

Third: extreme nationalistic and
American

World War II ended,-

European

of

Asia.

industrial capacity.
Our Disarmament

are:

foremost, the estab¬

inflationary policies by

When

now?"

that the world's

sponsible for this breakdown

out

have

of

the

For example, Ar¬
furnished grain to

United States — acting upon ,the Italy and beef to Britain in return
for
manufactured
articles,
but
assumption that the Soviet Union
was motivated by the same peacetot aims as ourselves—demobil-

*zed the army, navy and air force
which had won the victory. We
eveP scrapped a great part of our
military supplies.
.

.

The Soviet Government, on the
other

,

ment

hand,

continued

program

its

and

arma-

promptly

moved by a combination of force
and subversion into the vacuum

created by the

peace,

Suddenly we realized that unless opposed, the Russian dictator-

ship soon would control all of
Europe and Asia.
The
United
States began to grope about for
situations of strength with which

of

age?

war

were

now

own

factories,

exhausted,

communications

and transport had been wrecked,

people lacked food, clothand shelter.
Their governweak, their treasuries
and their currencies de-

were

empty

bauched.
At this

point in our foreign eco¬
policy we applied quick
measures.

We

moved

in successive stages from UNRRA,
to the Turkish-Greek Aid Proto

gram,

Mutual

the

Marshall

Security

and

is hardly able
population.

Plan, to
the Point

to

feed

her

Fourth: general abandonment of
the gold standard and resort to

"managed"

currencies,

sultant lack of

.

Four program. Each of these- activities was a stop-gap effort to
colonial
populations.
Independ- cope with the weaknesses which
ence
in
many
places
has not had developed in the political and
brought peace or prosperity.' Too economic armor of our Allies,
often, in fact, the new freedoms Generally speaking,
they were
have been followed by serious internal disturbances.

to

cent

political

major

developments must be added a
verY significant technical devel-

emergency

is

a

of

resources

Allies and

our

being

constitutes

the

on

War

eco¬

countries

artificial,

which

than $40

more

present

these

somewhat

Some
Modern Weapons

nomic
Colonial Restiveness

re¬

confuse us, and not the enemy of being on theNdole. An obvious
1<:se^ The Russian rulers are question arises at this point:
"These nations were
dominated only by two motives:
self-sup¬
First, the same aggressive and porting in the past and had great
expanionist dreams to which the military forces. Why, if their
economies
are
back
to
Czars aspired; and
prewar

the countries of Western Europe
which had just endured the rav-

more

levels

based

want

must be careful to recognize it

they

scale

quired to meet the Soviet threat

so-

or domination.
Japan
disarmed, her island empire

came

Russian rule

The

the

on

the

to meet this threat. Unfortunately,

which

armaments

in

under

ness

.

nomic

governments

great deal

a

program,
of the most
press¬

one

ministration

port

and

Allies

our

disappointment in this

Furthermore,

ing
ments

Catherine

and. of little
practical

since

Great

spread to all the continents of the

was

national

these

militarily weak and

encouraged

and that is

upon

injuries

our

campaign, with its myriads
dupes and covert agents all
the world, is not intended to
confer upon anyone the dubious
benefits of Communist ideology,
It is intended to disrupt the econ-

airplane

zens

eign policy.

in

in Europe

power

and

of

so-

with

re-

convertibility from

one

currency to another.
Fifth:
indulgence

by

ments

all

the

over

govern¬

world

in

an

orgy of

living beyond their means,
causing continual debasement and
lack

confidence

of

in

their

cur¬

rencies.
Sixth:
ations

an

epidemic of expropri¬

and

restrictive measures
toward foreign
investors, with the
result

that

investments

the

flow

has

of

foreign

dwindled

to

a

trickle.
Seventh: the enormous increase
in

productivity of United States
industry without equivalent prog¬
ress by other
major trading coun¬

Their

Soviet
of

again,

actually

ance

play

still

are

that

Strong. We have in¬
own
military power

have encountered

we

propaganda

to

We

fact

over

still surround us, but the modern

a

the

up

the

war—nominally to defend
independence of Poland, but

word

our

direction"of

fancied

or

and

Their

powerful country ac¬
tually adjoining Europe and partcipating in European decisions,
whose people were almost com¬
pletely
untouched
by
modern
political beliefs. The isuccession
throne

Once

For

are

have

II.

accom¬

to restore theirs. In recent
months

This

under the Soviet yoke.
' .;
The Atlantic and Pacific oceans

no

liberty. So, since the begin¬
ning of the Nineteenth Century,
have

Peter

went to

States

the

0f

awakening

Reformation,

no

cal

we

swallowed

of

Catherine II.

the

raciai

problem.

with

countries

groups.

personal and politi¬

Renaissance and

of the idea of

of

j Only a few years ago most citi¬

affairs* Because of the lead¬

pean

j

hich

had

time

overlook

faced

unleashing—

central

designed

real

of

War

long-term solution of

any

basic

and

Government —of

['Communist"

carefully

, the

the

World

produced only by nations of huge

first

was

Results of French

pro¬

perspective.

great advantage.

a

the

For

fresh

a

the

creased

which
have potentialities of terrible destruction but at the same time are
de- so complicated that they can be

our

At the same time Russia, ravaged
in its tremendous re¬
partitioned
(in
1772)—thus for by the
germs of Bolshevism which
sponsibilities. At the same time, the first
time making Russia a
Germany had smuggled into her
Simply because the new Admin¬ European instead of
essentially an borders, was forced to
istration is new, it has a great Asiatic
give up
monarchy.
many of the European territories
[opportunity to review past poli¬

[inspiring

the

Soviet

reached in the Far East.

was

development
been

for

made

We

toward

and

Nine-

the

which

Harbor.

Philippines

pass¬

Empress that Poland

was

Western

We were safe
in "splendid isolation."

Catherine

while

was

to

foreign

Hemisphere.
Toward

gaining

we were

has

called

so r

in

British

tablishment

perspective.

Finland.

Needed

This week the attention of our

becoming dominant. To

(from 1762 to 1796) by an extraor¬ United States begin
dinary woman, Catherine II. Al¬ need for a Pacific
though by birth a princess of a bought Alaska from
petty German State, she became, veloped a respectable
upon her marriage to Peter III, own, and established

sea

>.

Economic

Foreign

was
were

position to prevent any one power
from

them—

solve

to

do

can

independence,

the

Europe

whether

to

are

While

was
daydreaming high

,above

ih

strength

balanced that the British

stage. The decisions

concluded that it

proper

1

•{

mili-

tary

will

we

I

essary

on

I Korea.

fol-

the present era.

what

return

[flight

which

lowed Napoleon's defeat, the

strongly influence
the pattern of the world in which

and

times

the

Vienna

this

live;

plished

the Soviet is

third

through

of

from the

we

A

before

However, they have not

Communist Propaganda

develop*

Congress

which the United States will make
year

existed

resources of the areas in which
they live brought into production,
great benefits for all of mankind

must reckon with

we

Our
own
foreign
policy
there will be throughout
this
period
rested
peace or war, prosperity or pov¬ principally
upon
the
Monroe
erty, freedom Or slavery, hunger Doctrine. We had no political inor abundance.
terests
in
Europe, and because
there was no dominant European
Past Gives Perspective '
power, we could depend upon the
I speculated to
myself as to why Atlantc Ocean, the British fleet
these
problems had arisen—and and our own modest military es-

flight

y

of the world's

and

is the destruction of the European
balance of power. Ever since the

con¬

and which is understood by entire

plane

ener-

Power

of

Balance

The first great modern

American

as

of

ment which

people. Notes changed position of
British, Dutch and French Empires, observing independence has
not brought peace or prosperity.
Maintains our businessmen
must receive same protection abroad which foreign investors
receive here. Holds we must encourage currency convertibility.
as

their

If

will follow.

eign economic policy which is hold and dynamic, which
tains elements of permanency

now-exists;

rewards.

gies
can
be
directed
toward
peaceful pursuits and the great

us

act upon our understand-

we

Destruction

formulate for¬

must

it

as

for

understand

we

ing realistically and forcefully.

International Chamber of Commerce

new

that

ensure

world

that

Chairman of the United States Council of the

Mr. Pierson declares

to

economic

be left to future

can

historians. The major task

Thursday, January 29, 1953

...

tries.

These

are

economic

by no

ills

all

means

from

the

which

the

world

suffers, but they will serve
illustrate why things are not
as
they used to be. However much
we might like to do
so, we cannot
to

turn

back

the clock to the 19th
when isolationism and
protectionism were logical poli¬

Century,

cies for
*

What

the
we

United
do

States.

be able to achieve—is

which
want

we

can

•

)

want—and should
a

world in

live at peace.

We

strong and friendly neigh¬

bors who

are

able to protect

selves, support themselves
spect themselves.

them-V

and

re¬

We alone can¬
meeting the immediate need.
They have restored not accomplish these aims, but
But the fact remains that mil-, the Western
European countries with a clearly understood
policy,
lions of human beings who are to a reasonable level'of
prosper- and
a firmly carried-out
ready, willing and
anxious to ity and a standard of living in
progran^
now--

successful in

sedjeing-greater' --most

cases better than that~whic!t

.

Volume 177

Number 5190 .The Commercial and Financial Chronicle
.

.

■

-

CUN

Still

THAT

SHOOTS

AROUND

CORNERS!

undergoing tests by Army Ordnance

is this curved steel barrel deflector for sub¬
machine guns.

fires

weapon

a

STAINLESS

The automatic rapid fire"
45 cal. bullet, the

and

the 45 cal. automatic pistol, and the bullet

fs deflected in

a groove

PREFERRED*

A bus manufacturer reports

bus shown above is made in two models

...

a

that the

standard model

same as
a

model with side

panels of silvery stainless steel. When

the stainless bus and the conventional

to a 45 degree angle.

dispatched for the

Facts you should know

sengers

Tbis trade mark is your guide

about steel

tt quality steel

same

painted panel bus

destinations at the

same

time,

will usually choose the stainless steel sided bus in

preference to the other. Only steel

can

do

so many

jobs

so

well!

Lost year, the iron and steel industry used about

100,200,000 tons of coak If loaded in 50-ton

hopper
tram

cars,

that amount of coal would fill

long enough to

go

around the world at the

more

-




'

a

'halfway

equator! "

Listei ti... The Theatre GuilA
<

than

M

U» Air, presented
every Sunday evening by United States Steel. National Broadcasting Company, coast-to-coast network. Consult

your newspaper

for time and station.

AMERICAN BRIDGE. .AMERICAN-STEEL & WIRE ond CYCLONE FENCE1:. COLUMBIA-GENEVA
STEEL. .CONSOLIDATED WESTERN STEEL:. GERRARD STEEL STRf ^ING.. NATIONAL TUBE
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PRODUCTS.. UNITED STATES STEEL SUPPLY I. 0!vhh*$ of UNITED STATES STEEL CORPORATION, PITTSBURGH

i ■'>

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GUNNISON HOMES, WG.

A

are

pas¬

UNION SUPPLY COMPANY. UNITED STATES STEEL EXPORT COMPANY •UNIVERSAL ATLAS CEMENT COMPANY

-

(481)

21

22

The Commercial and Financial Chronicle

(482)

equalization is of course being at¬
tempted in West Germany today.
It might nevertheless be impru¬
dent to gamble upon it.

Strategic Factors and
Investment

Analysis

ket action that any

tion is

general atten¬

Since the hazards of interconti¬
atomic

very

real,

take

them

f

sa

of

have

war

how

can

into

become

analysts

we

for

account

the

eguarding

the
of

inves¬

for

on

the

much space to
demonstrate
ques¬
tion the prop¬

Accord¬

tesummarvery

As it

Harold

C.

Bailey

itecame im¬

Pacific

tralize the

Boston

annual

The

Fleet

neu¬

Pearl

at

rural

smaller

tems

areas.

will

Plaza

Hotel

it

'Soviets

to

try

to

neutralize

For

what

other

purpose

.

cans

little

deterrent

effect

but

but

adequate

to

home

de¬

of

found

jg

this

is

country

possible.

»ur

inter-continental

our

ports,

cities

well

as

air

major

our
as

We

they will include

bases,

industrial

whole series of

a

^'special situations" where unique
End
si re

tation to

i

John J. D'Arcy

J. Fred. Underwood

of Investor Commitment

in Vulnerable

Areas

artificial

slight

structures

compared

Obviously the alert investor will Furthermore
seek

immunize

to

litmost

in

against
and

areas

deems most

He

in

st

over-commitment

activities

which

vulnerable

to

he

attack.

i

past, he

enterprise

Li here

his

are

those

i

ns

©

are

safe.

Finally

suffers

isolated

this

type

of

industrial

asset

work?

the

;ve
itch

i

o

If

he

case,

some

other

that

might

of these

stocks

in

should

well

even

'

»

i

more

of

A good many New
vstors

insist

on

in

lathing but "locals" because they
v

*nt to be able to

i:

mey

is in.

see

what their

In consequence

some

,

Proper Evaluation of All

com¬

to a single State or even
single county. If that State or

unty

should

prove

a

,

strategic

no

substitute for balance

proper

evaluation of

all

the

"A New Strategy for NATO"
by
J. V. Murphy p. 84 column
1
January issue of "Fortune." De¬
spite the general excellence of this article

CHarles
the

3

dbssent

from

the

conclusions

because I
b

i

tors

he

draws

give a different weight to
upcn
which his conclusions

boused.




the
are

can

be

averted.

should be held
it

can.

suffered

that ' of

times,
forced
who

on

Even

Co.r, is

handling

reservations

the assumption
if the country

some

Ruhr

exceeding
"Valley many

adjustment might be

between

property-owners

escaped unscathed and
others who had lost all. This very

&

York,

Co.,
•

for

of

A.

C.

out

for

of

town

Leslie

B.

Swan

of

Co.* reser¬

Hartford

and

New

111. —The

Marshall

Company of Milwaukee has
opened a branch at 30 North La
Street
of

Blair's
was

under

Lorraine

association

previously

He will have had noth¬

left the Treasury
velt
for

came

That will make

and

:

no

difference.

Old Andy had

But the Roosevelt crowd tried to put

in.

.

to London as Ambassador before Roose¬

gone

him in jail—

alleged evasion of income taxes.
rather

is

It

New

Dealers

interesting

to hear the outgoing Democrats,

now

whatever

you

or

"witch-hunting" which they
They do this while at the

say

same

want

There

;•

are

/time,

them,

bewail the

time setting

up

another whipping

-

r

»

indications that Mr. Wilson is quite annoyed with

the experience.he has had.
very

call

to

is coming under the Republicans.

boy in the person of Charlie Wilson.

If he will just look back

over

some

recent history he should become quite philosophical and in
as

did Andy,

well but it's

a

lot

and

you

>

thoroughly to enjoy it. The

come
more

is not

as-

.

meet "such

foreign Ambassadors.

pay

fun than the daily hum drum of making

*-

interesting

people/particularly the
"/V" /"

*

the

L.

Capital Inv. Co. Formed
7. LITTLE ROCK, Ark.
Capital
—

Investment

Co.

has

been formed

offices in the Pyramid Life

with

Roberts, who was formerly with
Hill, Crawford & Lanford, Inc.,

New Marshall Branch

Salle

ing to do with it.

come,

•Building to engage in .the securi¬
ties business.
Principals are J, R-

*

ment

God help him.

;■

Andy did, he will come

:

-

V ''

*/- " J

Philadelphia;

Haven.

CHICAGO,

He will have to

as

-

bust should

a

money,

Boenning

reservations for New

and

vations

stocks

devastation
the

had

Some

symbol of how the Republicans favor the rich.

room reservations.

Charles W. Scranton &

and

that
1 See

charge of

J. Fred. Underwood of

'

there is

fare

dollar

is in

der

e

every

McCormick

Richard M. Barnes of A. M. Kid¬

mitted

have

F.

At this point it should be made
clear that even in the atomic
age

factors in investment decisions.' It
is to be hoped that atomic war¬

^counts

James

hardly

Investment Factors

England in-

investment

includes:

Allyn & Co. is in charge of ticket
reservations, and James E. Moynihan of J. B. Maguire & Co., Inc.,

&
Needed:

isolated communities.

which

na¬

hose plants are located in smaller

St

Committee

Co., Inc.; Alan C.
Leland, Geyer & Co., Incorpo¬
rated; Warren A. ;Lewis, Weeden
& Co.; John McCue, May & Gan¬
non,
Inc.;
J.
Russell
Potter,
Arthur W. Wood Company.

tight financing, expansion of

money
supply could
companies fail to be considerable.

v

a

D'Arcy of F. L. Putnam

Chas. A/Day &

tional debt which might well ex¬
ceed one trillion dollars.
Given

investments the

in

one

inconceivable horror but of

Paul she wanted.

Swan

Blair; Harris, Upham &
Co.; William J. Burke, Jr., May
&, Gannon, Inc., President of. the
Association;
Leon ,E. Day, Jr.,

less from the inflation in¬

plants—exclusively here, however, is not only

B.

Robert R.

be

separable from war's aftermath.

Leslie

Company, Inc., is Chairman of

the

struc¬

to

came

secretly to like it.

Barnes

M.

John J.

&

reserves.

enough

she wanted Mr. Mellon
back and said gra¬

say

phone, and he

good times keen up. He will become more famous than he ever
realized he would become. He will become a household word as

If

sought to ing it today plainly "dates" him¬
diversification. self. The environment visualized

concentrated

tense

Of

Richard

has

predominantly occupied

s

.

tures

was

the

something about there being no end to our prosperity or get
Coolidge to say it. The wage earners were being caricatured as
going to work in high hats and tail coats and nobody paid any "
attention to what the Democrats were saying.

a

relatively

of these

him to

change his outlook and when he does,

Of course, "inflation" has ceased
particularly endeavor to
geographical diversification to be a popular word and one us¬

the

ure

I

the

to

the

to

some

misunderstood her to

we

sent

v/e

It-will be that way now about Charlie Wilson as long as the

will
ure

e

himself

is

privilege of buying two World /
"Nats" won the pennant and

.

especially valuable activities True, elaborate refining and proci
going on.
essing plants may still be der
stroyed but the value of these

Problem

•

...

.say
"

mind.

to

the .South Seas. The damned
making too much; something had

were

sir, those were the days. The Democrats would keep
croaking about Andy and how he favored the rich but the country
loved Andy. When the stock market slowed down he would either

present-day

come

their boss, made enough to take

-'Well

1.

,

once

stock recommended by
to Europe and

cruises

ciously that it

age, underground
exceptional
appeal.

at

lpng as conditions are as good as

were made in Andy's days
graduated from grade schools. That's

never

to Andy for $45 and attended the games on a pass.
Andy always attended the dinners of our then burgeoning White

and

Among them the metals, oil, natT
gas

on a

dead, and

In the atomic

ural

,

House Correspondents' Assocation, and one time when I was pre¬
siding at a dinner and sitting next to him, a girl friend called Paul
Mallon, one of us, later to become a celebrated columnist and now

practicable means
But this would not

have

demogogi- \

:,I sold them

are

international relations.

assets

who had

.

no

the facts of

or as

jin Andy's days. Millionaires

men

/ As a young reporter, I rated the
Series tickets when the Washington

to

may be sure that

Garner

as

to be done about them but wasn't.

wan-song

in

were

vacation

doing so.
meet
assault.1
In his
help the stockholder too much in
President Truman gave conceivable circumstances.
Con¬
"tacit recognition to this situation. necticut investors
occasionally fail
!
By the same token no extended to diversify adequately their an¬
discussion of the nature and loca¬ cestral holdings. -They may not
tion of probable strategic targets be unique in this failure of adap¬
fenses

funny

as

been many years ago but our wage earners went to work in automobiles; and country clubs were built to accommodate our nou{ veau riche as they were called; Young stenographers, by placing

host of catastrophe claims.
The
life
companies
themselves
ex¬
thought and effort to plored steps to reinsure any ex¬
building of an offensive air ceptional losses they might suffer

too

Barjreron

Ogden

,

some

[force for its

Carlisle

to

up

late

j

out of

their territorial air defenses? Here
iu
the
United
States
we
have
the

came

What the Democrats said about Andy never cost the Republia vote.
And what they say about Charlie Wilson will never

they

/

Lave the Soviets given absolute more
widely appreciated for their
priority to the expansion of.their long-term growth factor. But life
long-range atomic carriers and stocks would not benefit from a

given

He wasn't

plumbers and carpenters

last

time

every

recommen¬

the

was

cost the Republicans a vote—as

Other sys¬

long

Committee, and
Andy and bow

affairs

But there

with Garner.

p.m.,

thought

at

ranking member

upon

cally entertaining, but he had the inescapable logic and he always

Life Insurance Companies

stocks

against

Garner's favorite

was

Hill.

a.bet

company

Garner

concerning fiscal

won.

might also be
whole American war potential be¬
given to the nature of the enter¬
fore
proceeding to world
con¬
prise owned. The life insurance
quest.

they did

Jack

was

delighted him to bear

own

the

through the wide open
for thousands of miles.

Some

ears

ury and, when Andy went off to London as Ambassador, became
the Secretary of the Treasury, who was always able to hold his

Effect of Disastrous Bombing on

the

and

deaf

Mills in the House, later to become Undersecretary of the Treas¬

29th

run

spaces

rich

on

was favoring the
rich in taxes
Congress met and the Treasury

before

proceeding to the
.conquest of Southeast Asia, so it
tlias become imperative for the

about how

the

he

Wed¬

on

too,

removed,

were

of

what

Captiol

at

Demo¬

themselves, secretly liked

did

dations

their

nesday, February II at 6

and

whipping boy;

Traders

Dinner

the

post-World

scream

favor

of the House Ways and Means

be¬

r/;'•,

hold

old

man

profits

But it all fell

Andy Mellon

comparative
/

man

him in the spirit of good clean fun.

At the most it

and

Andy Mellon of the

will be the

Under him,

used to
in

taxes

the Democrats,

con¬

difference

Securities

Winter

Sheraton

utility

companies should come through
all right. Railroads sometimes de¬
pend for the bulk of their revenue
upon strategic areas or have ter¬
minals expensive to construct and
maintain in such

perative for the Japanese to

iHarbor

The

Association

tive.

must

ized

factor

Traders Association

Here the

is destroyed or rendered inopera¬

ingly, the sit¬

/briefly.

loss

reduced,

the

billion.

excess

the

least it

more

to be the

He

for

reduced

by $16
as

and

otherwise

on

.

the extent to which the area itself

become

uation

total

tween

Mellon

debt

taxes

against the poor.

is

this

very

stocks

the

mean

Andy
I

he

ventional grounds.

might

it.

War

and the Democrats

attractive

equally

in

such

op¬

review

is destined

political purposes just as they barked
about Andy Mellon.
I don't know just how Mr..Wilson will like
the role he is to play.
Andy Mellon reveled

Among

determining

two

about

im¬

At the

the

be

between

wiU bark

elements

an

tinder

one.

might

determining factor is likely to be

hazards

.'real.

clearly

bankruptcy.

from air and heat blast.

that

these

upon

Wilson

Republican Administration.

crats

Boston Securities

beyond

have

an

Charles E.
new

investment

unfavorable

portunity

nickel
had been
enterprise headed

every
on

any

strife

armed

scale.

transcendent

a

pinging

concentrated

a

has

greater portion never to
the extent of any appreciable im¬
pact upon property interests. But
what we have seen happen abroad
so recently could now happen here

far, for example, are the
immunity.
big-city utilities vulnerable? Ex¬
cept for the
generating plants,
usually in the outskirts, installa¬
tions are under ground and prob¬
ably relatively safe from damage

•require too

osition

if

suffer

1860's

the

and

How

It would

tors?

loss

staked

inter¬

ests

would

middle

States suffered from

target, he would suffer a concen¬
trated loss in the same way that
he

the

By CARLISLE BARGERON

portion of the continental United

'

nental

follow from the fact that not

since

Noting possibilities of real atomic attacks in vulnerable areas,
Mr. Bailey sees m this a problem for the alert investor to dis¬
tribute his commitments to secure geographical diversification.
Holds life insurance shares will be principal sufferers in cases
of disastrous bombing attacks, and feels concerns which have
large assets underground "have an exceptional appeal." Avers
"atomic age" requires proper evaluation of all investment
factors, and decries fact there is little general attention being
paid to strategic factors in investment decisions.

Thursday, January 29, 1953

.

of the News

This

investment decisions.

in

may

Hartford, Conn.

Ahead

being paid to strategic fac¬

tors

.

Washington

There is little indication in mar¬

By HAROLD C. BAILEY

.

Investment Counsel, West

From

.

manage¬

Blair.

with

the

reported

"Chronicle" of Jan. 22.

in

Miss
firm
:

the

P. K. Roberts

and H.

F. Chastain.

In Investment Business
-Nancy

Dillon is engaging

in

East

City.

74th

Street,
.

.

New

.Henry^Franc

to

Admit

ST.

&

LOUIS! MO.—Henry, Franc
Co., 308 North Eighth Street,

members- of
Midwest

the

Stock

New

York

"Exchanges,

and

will

admit.Morris Stone to partnership
March T: Mr. Stone has been as¬
sociated

with

the

firm

for

many

years.

Opens Office
a

securities business from offices at
220

-

!

York

HAMILTON,

Ohio

—

Louise

B.

Joyce has opened offices at 350
South D Street to engage in the
securities business.

i

Volume 177

Number 5190

.

.

The Commercial and Financial Chronicle

.

functions

Study of Federal Home Financing Essential!
Pettibone, President of the Chicago Title and Trust

reexamination

the_Federal Government's
pation

financing
D.

was

urged

Pettibone,
'

—

*

-

*

Federal

partici--and

housing and real

in

of

by

estate

—

address

an

32nd

of the

at

an¬

meeting
Chicago

.

v

,

*i

siderations of mortgage credit
The

major

thority

this

of

purpose

or

Au¬

to supply good living

was

accommodations

ciation

on

able

Jan,

in

for

persons

un-

to pay full economic rent.

It
"involved continuing subsidy from

Chicago.
Stating that
every instance

; public funds for housing.

'
(6) Shortage, of housing (r,eal
and artificially produced through

—

en¬

triotman

try
into
the
housing and mortgage

rent

d. Pettioone

control)

World

fields has

War

during

II

and

increased

after

the

use

brought about the creation of

or

in curtailment of oppor- numerous
Federal
agencies intunity for private enterprise, Mr. eluding Federal Housing AdminPettibone
pointed out that the istration, Veterans Administration,

resulted

Kprfpral Government had been in-

into

vited

when

the

that

ete

mortgage business

in

business,

(7) Today's
and

common

with many others during the eco-

maintain

with

should

be

determined

tprms nf thp mark-Pt niarp

President, Townsend-Skinner & Co.
Investment Counsellors, New York

in

anH

nnt

Drawing

bv government edict in which the
welfare aspects

political

or

to broaden

pressure

for mort-

market

a

..,

.

tivities

.

know t*13* government acin
real

for

financing
highly inflationary. What
about government policies which
may
be deflationary?
It would
wise for

seem

meet

The newspapers, the magazines,
air waves and the television

to consider how

us

are

all

proclaiming

.

.

period of time

gancJn£ an<i building construction
Surely we know,-that over-infla!on sets the staSe tor over-defia'

•

rLl:

•

V

different

a

,

.

a con-

tinuation of the "boom," each for

a

.

recession "soon."

a

the

screens

deflating phase of an
economic cycle in real estate fi-

we

but

than

more

year

Every

,

Jxce®sl7.^tition between-

a

two.

or

single

prognosticator
believes
w e

mented the mortgage debacle

are

the

1930s.

.111

Are there unhappy re

suits

between

lenders

for

its end.
The only dif-

mort¬

ferences

gages?"

:•

Additional

questions

raised

approach¬

ing

brewing in today's competi--

tion

opinion

by

safer, sounder and more liquid
position than anyone else. That

a

is where he should be—and there
is still plenty of time and oppor-

tunity

period

Trust Company which he be.ieved
neecl to-be answered included:

of

have

it

has to
Townsend

him

to

get

there,

inexhaustible,

Ships on
Display at Bowl'g Green
A

still

miniature

ships of war,
of

the

flotilla

of

led by

a 45
carrier

aircraft

Navy
ft. model
Quonset

Point, is now on display at Bowling Green
Park

(oppo-*

site 25'Broad-

way),

.with,

run.
.

W. W.

is

Miniature

to do with the

!_he Present °f Ch.icaS° Title and,

for

Neither

for

none

lenders in the 1920s greatly aitg-

.

>

estate

be

can

we

Says

change will be precipitated by mounting inverted pyramid of
private debt, so it is wise for sayings associations to prepare

business methods,

soun(j

over

experience of 1929, Mr. Townsend contends

on

much closer to end of the boom than most will admit.

are

nres

of powerful groups prevail

sures

Depression Coming

By W. W. TOWNSEND*

weiiaie aspects oi political pies-

Bankers Asso-

of Federal

in

courts

involving mort-

self-sustaining economic elements.

Mortgage

2 0

state

cases

Housing Authority. In this philosophy, a welfare objective was
recognized as outweighing con;

nual

and

supplanted

Tinn«

Company, in
the

agencies

A

rates, mortgage insurance,
secondary credit, all of which are
today matters of government con¬
cern,

(5) In 1937 a new social philosophy introduced the United States

Title

Trust

and

courts

defaults

^age
°

President of

Chicago

laws

thousands of

Federal

and

Federal

state

Holman

laws

The Business Outlook—

the

can

terest

enterprise.
thorough

functions

.

cannot

government

ignore

market;
completely
disregard the mortgage market so
long as Federal funds are avail¬
able to perform a given task. In¬

Company, calling government aid in mortgage field "a habit
forming drug," says it has curtailed opportunity for private
A

of

continuously

welfare

Holman D.

23

(433)
/

,

the.

question of who
nomic collapse of the early '30s, shall provide this market.
needed help.
Pettibone,
summarizing
these
"Bu.t government' aid seems to developments, declared: "We citi-

"If 80% unguaranteedMoans are!
ing what hap-- operation; this
not-suitable for institutional pur— pened in 1929 as a result of debt- d i s p lay
chase then should we not consider,- expansion, noting that this item launches and

have certain attributes

why and to what extent govern— is

of

a

gages,

habit-

zens

the

invited Uncle Sam into hous-

he stated. "First,
easy to stop
the habit;
second, in extreme cases sound
treatment requires not an abrupt

ing and real estate financing. He
came in a very small way at first
—just to help supply mortgage

stop but a tapering off.

and business catastrophe followed

forming drug,"
is

it

not

how do

stop

we

When and

begin to taper

or

government?"
Continuing, the Chicago banker

off,

demands

our

added

on

:

Sam has been

"Uncle

rescuing,

resuscitating and stimulating

housing and real estate financing
in
a
big way during the past
twenty years. True, he seems to
thrive on it; he has grown oh so
big!
But,
how
much
reserve
strength does he have?
Do we
know how he will perform under
less favorable conditions.'
Ought
he

to begin to, retrench;
something for a pinch?

to

now

save

Mr.

Pettibone

proposed

.

that

a

funds for farmers. But

as

financial

-

,

great

as

as

any^mrstep f Y«y hstepped
away^^from^anaging, esta^

,inand
and houdng do
dnatfrom the
alone and apar( sn

.te^wn^aii^m^mann^pf

total economy of the country. The

bask support of rental or mort.
gage payments for housing is em-

..

.

of
increasing
government
participation in a field previously
occupied by private
enterprise,

techniques employed by the mortgage
bankers
have
undergone
great change. We must admit that
we are not the same kind of free

These

enterprisers

were:

we

once

were.

We

must confess that we are leaning
farmers fell in
1916
when they on
Uncle Sam. That is today's
were
unable to obtain mortgage fashion.
;
i
funds, resulting in the creation of
"Each one of us finds it easy to
difficulty

The

Banks

Land

Federal

12

which

into

and

49

regional Joint Stock Land Banks,
(2) inability of home owners to
make mortgage payments .m 1933
with
accompanying
distress
of

mortgage
the

which

lenders,

formation

of

Home

led

say

that Federal activities should"

be curtailed or discontinued.
we

seem

£
pother fellow s business,

But

that there be

Mr.

current and fresh"

a

(3) The plight of holders of de-

impartial evaluation of the whole
government program with respect

the

to housing and real estate financ-

Loan

Corporation.

faulted

1930s,
the

real

estate

which called

Reconstruction

bonds

in

for aid

from

Finance

Cor^

But

scope.

ancj

ing, Mr. Pettibone stated:

P. & S,

bond financ-

ing and foreclosure and reorganization of properties
standing as
security for such bonds, which
brought about extensive investigations and regulations by the Se-

Therefore,
"favorable"

in

spite

of

indications,

the

all

believe it to be the part of wisdom
to prepare for a recession, soon,
and

to

over

we

hope that it will not carry
a depression later on.

into

curities

and.

sion

the

primarily
both,

a

to

Sales

Tabulating

(b)

or

efforts

a

or

to

borrower

to

Division

that

the
,

President's

annual
,

din-

will

held

Division

J*;1r'°j! J?®

9q

the

iqi-~

t

iy5^a

Rp^'nrant'

s iv»uiuicim..
Among

be

yesterday's profits are
tomorrow's probable or
If the savings and
tion

is

invited

guests are

New York
Keith
v

Stock

Funston

Ex-

Presi-

V,

e

-

^en^' New York Stock Exchange,

or

John J. Mann, Chairman, American

Stock

to

tion in its

Exchange;

Edward T.

.

™

Als0>

a

six foot model

'
S. S. Missouri is on dis¬

play in the lobby of the Under¬
writers Trust Co., at 50 Broadway.

loan associa¬

its full func¬

perform

>

u: S. Navy, are also being

o£

^fd'^a

pos¬

-

ahiPs' both merchant. and battle.

of the U.

even

homes, now
which may be

Milwaukee Bond Clulb
Msd-Winter Party

free; and
the only

on

clear,

•

.

Other model ships now on displsy in that area include four setss
of various British and French

community, it should be
to make the mortgage

prepared

loans

gram.

if.
to survive-o u

sible pressures.

of funds for those who

MILWAUKEE, Wis.—The Milpressed for cash to pay emergency waukee Bond Club will hold its
expenses.
The willingness and annual Mid-Winter Party on Fiiability of such associations to do day, Feb. 13, in the East Room of
just that, in previous periods of the Hotel
Schroeder.
Cocktails
stress and
strain, is one of the will be served starting at 5 p.to,,
reasons why they enjoy so large
with dinner at 7 p.m.
a

measure

Savings

of

been

riding
wave

Webber, Jackson & Curtis, Vice-

too,

if they,

commitments

can

are

too,

on

never,

time

for

dent,

Firm Name to Be

almost

Changed to Bendix Gk

savings and, t|

be

other

any

l

Following the retirement fro vx

the

to

Paine,

making

estimates

ing help themselves.
executive

Vonier,

urer

pre-

today, then they can help no one
else—because they will be need¬
The

M.

G.

President. The Secretary-Treasof the group will be appointed by the incoming Presf-

now,

overex-

are

based

and

dent;

of tomorrow's improvements over

loan

J.

the crest of a
which has car-

vailing belief that this
tended;

of the Club are

P. Lewis, J. P. Lewis & Co., Presi-

them a long way. If,
they become bemused by the

they,

New officers

associations

loan

ried

if

are

public good will.

and

prosperous

end;

aid

stimulate:

is much work to be done today

of

announced

has

that savings

mean

preciation for the Navy's outstanding contributions to the blood pro-

executives should

begin
looking for the storm cellar. There

bave

ft

Exch

.

rescue

lender

Stewart, of Lehman

RroT'Tres'dent'of0the^PiTrchases
,

This does not
and loan

source

the following: Richard M. Crooks,

-"Government

either

in

program

our

Annual Pres. Dinner

"

with real estate

need to reexamine

Group to Hold

Richard H.

participation
in Chairman,
poration.
"
this field thus far may be classi-'
hanf,G. G
(4) Problems arising in connect lied into (a) operations designed:
'
tion

we

re-appraise

this area—now."

J?

Pettibone stated.
'
to
In making his recommendation

Owners

Red

a

Blood

"If mortgage defaults occur in' situation is getting worse because^ D r i v e in the
volume, what will Uncle Sam do?' almost no one believes it to be business area
are
now
dealing with very; bad, we come up with some opin-'« 0f New York

zens

.

(1)

start of
Cross

We

from ConDangers.. v
y: .v
pl0yment.
A high level of emshould be created to make a
"One of the results <• of govern- ployment at good wages or the
thorough- study on a nation-wide'ment participation in
real estate .opposite conditions are vital elebasis ,.of the whole
government financing has been to remove im- ments in determination of long
program with respect to housing portant segments of? the business range
governmental policies for'
and real estate financing, making from the domain of the mortgage'real estate
financing and housing.'
its findings and, recommendations banker.
• •
;•••"'*•
'
/.'"The changing relations of the
public.i He ..Urged that moitgag©
"Notwithstanding, indeed in a Federal government to housing
bankers take an active part and ]arge measure because of
govern- and real estate financing are not
render full aid to such a study.
ment
activities, many mortgage Peculiar to this one area of our
Mr. Pettibone reviewed
seven
bankers have had good earnings economic and social and political
events or so-called "emergencies" during the past five years.
The life. They are typical of a trend—
which
constituted the
historical source of these earnings and the national,
even
world-wide
in
tion

c o-

it; dramatizes the

ment should continue to assume; was then or has been at any time
the extra risk?
since, and noting, also, that the

gress^

background of the present situa-

vy's"

.

com-'Jhose^ stepping aw^were some
/re« eK"teP" ? ^n°
as

under authority

nearly twice

now

a

--

financial calamity from 1929 on, large commitments. At a time of'- ions of our own:
" for the
boys in
further mortgage loans couldn't economic distress, will govern-(1) We are much closer to the-Korea. Charles
Charles Weber
save the farmer. Widespread un- ment bq harsh with a distraught' end of the boom than almost
anyM. W.ebe r,
j
employment produced a succes- home oWn&r?
one is willing to admit.
President of Weber-Millicarx
sion of crises affecting every busi-f /'Should tthcle Sam now discon(2) It will be precipitated—or Co., Chairman of the Investiw nfc
ness and every citizen. Mortgages. tjnue new ^commitments for
pub- accompanied—by the collapse of Brokers' and Underwriters' Red
and the mortgage business toppled pc housing and slum clearance? today's huge and mounting in- Cross Blood Drive, officiated
rwith the rest. Those citizens con-, should Federal funds for such verted .pyramid of private
debt, at. the opening day ceremoni
cerned with housing and real es-~ purp0ses be allocated only against particularly consumer debt.
which were highlighted by prostate financing turned to govern- matching local funds?"
(3) The duration and extent of entation of a 45 inch scale model
ment.
' '
R
concluded bv declaring' "As the readjustment are problemati- of the U.- S. S. Missouri, made by
"As government, in response to
id 1by declaring. As. cal. But; thereafter, we should Thomas Sallume, to Navy Admiral
citizen pressure stepped in did
.
authoritative
nationwide have a protracted period of sound R. h: Hillenkoetter, Commandant
and not synthetic prosperity.
' of the 3rd Naval District, in ap~
we must remember that reaI-

committee of Congress, or a
mission appointed by the Presi-.

dent,

Remember-{ N

bolder than*

banker

has.

£jrm of David P. Currey an I

•

..

01

T

^ C. Luitweiler on Jan. 31, c-a

building construction, thereby MrrnrmiW PtWident
American
passed. The time has come for Feb. 1 the firm-name of Benai
supplying
needed
housing
and
him to be more cautious than the Luitweiler & Co., 52 Wall Street,
helping to energize the whole Stock Exchange; Roscoe C. Ingalls,.
lathers. It will require that extraN
York Citv, will be change.!
Exchange Commis- economy, (c) social or welfare ob- President, Association of Stock omAimf
pQntiAD
tn
him
7
amount of caution to nnt him in
put
in
early '30s, and the jectives.
to Bendix & Co. George R. Cooi Exchange Firms

fcCormick, President, Amencan

r\t

in

famous Section 77b of the Federal

Bankruptcy
entirely

an

ganization

Act

in

1934.

Under

concept of reorinstead of liquidation,
new




."It

is

now

a

fair

question,"

he

said, "to ask if government has
adequately
separated
its
credit
and its welfare functions? Credit

T,

.

n)to

presidents of all the Divisions

of

Wall

Street

*Excei*pt6

ni<.

oll

have

been invited to the dinner.

also

Townsend
ference

of

New

Jan.

at

from
the

a„

1953

address

by

Mr.

Management Con--

of the Savings Association League

23,

York

1953.

State,

New

York

£e

member of the New Yo.t !-C

jr

t-ii_

.

Stock

Exchange,

City,

Oil
fhn

comes a

iu'

Feb.

1

firm

partner in the firm.

,

24

The Commercial and Financial Chronicle

(484)

material reduction of the rearma¬

Sterling Convertibility and

ment

production

order

balance

Recent U. S. Gold Outflow
and ascribes it to

fundamental

in

Sees

change

no

economic

situation, and notes
by Professor Robbins, British economic authority,

book

recent

of dollar revaluation.

rumors

international

in which

a

drive.

rearmament

It

when Britain and other

LONDON, Eng.—The last threequarters

of

1952

witnessed

a

re¬

heavy inflow

to

the

United

States
was

which

an

standing

fea¬

ture

of

**'■

the

think

;'v

international
economic
uation

the

I

sit¬

scale to

other

<•<

seriously

about

gress

In

greater

this

connection

the

publica¬
Pro¬

of

1951

tion

the

first

and

".quarter
1952,

of

of

recent

a

article

has aroused much attention.

and

became '

even-

reversed

,

j

fessor

to

extent.

some

of
Dr. Paul

The

Einzig

newly
'mined
gold
;

the
the

Woods

large extent to. international

States

suffered

some

ponement

loss of gold.

because

loss

clusion

To some extent this
due to the conversion of

possibility of

the

in

official

price of gold.
vious

that

change

the

chances of

no

even

official

on

so

famous,
sion:

epigram to suit

Mr.

fault
Is

/

:

of

/;_///

caring

too

little

too

;

and /:

*

the

chance

of

an

if

even

increase

of

•Walter V.

to

fin

movement

has

of

<

Peter W.

very

to be op-

"

some

to

reason

theless,

it

provided

reminder of the
cumulation

of

a

scale

a

necessary

that the
,

foreign

cuts both ways.

alize

fact

ac¬

balances

It is easy to visu¬

situation in which

conversion

a

large-

of foreign

dollar

into

reserves

gold might prove
embarrassing if it coincides with
large-scale losses of gold through
adverse

an

In

the

such
■

-

and

not

balance

present

losses

the
on

give

a

very

gold

moderate

outflow

was

sufficiently large scale to

cause

United

payments.

instance, however,

were

whole

of

to

concern

the

to

States.

payments

stock,
share.

common

he grateful

lias

price of
So long as the United States

an

Nor

were

ain,
the
Netherlands,
Western
Germany, Japan and other coun;

upon

steps which the new Adminfour

year

as

a

has

been

.

will make the bankers' job

difficult, but sound; moves 5
by the Administration are/im- V
perative and should receive our '
more

it embarks,upon,

.term in office. .The
;

"The road back to orthodox finance

elected

support:

platfonn calling for balanced

>

necessary

all

economy,

,

Whatever sacrifices

are

society, for increased world trade
and sound money based oix gcrfd
are

/

should be accepted by /
of our/economic .

segments

;
*.

the cornerstones of true pros-

perity and lasting peace.'/

; j" /

' ;

To Give Course for

,

Cbrpora&on,

as a

tests,

-

iipparts

r the
United
made. The company contemplates
import surplus the
low price of gold means that the. that its product' will be used ex-'
United States get fewer dollars for tensively for large scale disease
an

the gold they sell in settlement of
that surplus. In other
words, so

long

as

there is

an

American

ex¬

port surplus, foreign countries will
get less American goods for the
same

amount of

gold with which

prevention
measures.

;

-With

company,
can

/

and

germ-killing

-V

<'5

\-

—

additional

also

research, r the
believes that its process

be

successfully

connection with

used

in

paints, floor wax,

(in¬
they have parted. On the other plastics and rubber goods
hand, when the American balance cluding children's toys), cosmetics
of payments is unfavorable to the and dentifrices. An application of
United

States,

foreign

countries

Permachem

to

commercial

to export less goods to the
United States to receive the same

the

commercial possibilities.

,■

and

home

laundering has also been
developed which, due to the prod-,
uct's powerful germ-killing or in¬
amount of gold.
It is considered
conceivable, therefore, that should hibiting properties, offers further
have

adverse

balance of payments

on

a large scale it
might
American
opinion
in

public offer¬
ing will be used for the commer¬

We

for

raising the price of gold.
however, very far from
approaching that stage.

vestor, what., to looter for; as a good-

investment, and. what to avoid

unsound^-*_:

introduction
further

search
and

of

of Permachem,
development and re¬

the

process,

Throughout/- the

as

,••i.,.>
-

course

wholev investment' field

>

J.4

.

/ the

will

be

-

always with emphasis
on the present situation and possible^rends and tendencies. Btmds,.
surveyed;

,

.

,.

/

Proceeds from the

cial

are.

Small Investor

Finance: Robert F. Mulvaney, preferred stocks,- and tax-exempt
Irving Lundborg & Co., Chairman; securities are considered; but at¬
H/T.' Birr, Jr., First California tention is concentrated on com¬
Company; R. R. Hodge, Frank C. mon stocks as the type of security
Shaughnessy & Co.; Palmer Mac-; investment which meets the need
auley, Hooker & Fay; and Berwyn of a much larger proportion of
general investors. The course will
E, Stewart, J. Barth & Co.
/•
cover industrials, railroads, public
; Floor Trading/ Douglas G. At¬
utilities, oils, chemicals, etc.
kinson, Dean Witter & Co:, Chair¬
Carl T. Hyder, Manager of the
man; John I. Dakin, J. Barth &
Fifth
Avenue 'Office
of
Pyne,
Co.; Richard P. Gross, Stone &
Kendall and Hollister, will give
Youngberg;
Harry
Meyerson,
the course. After graduating from
Stewart, Eubanks, Meyerson &
Columbia College, he spent a year
York; El win E. Purrington, F. B.
and a half in, the Law School be¬
Keyston Co.; and Robert H. Wilfore going into business. For more
lard, McNear & Willard.
than 20 years he has dealt in the
Listing: Stanley R. Dickover, general investment field, special¬
Elworthy & Co., Chairman; Leo izing in the handling of individ¬
B. Babich, Hill Richards & Co.; ual
portfolios. Recognized special¬
Ernest E. Blum, Brush, Slocumb ists and authorities in different
& Co.; M. J. Duncan, Calvin E. fields will
appear as guest speak¬
Duncan & Co.; Charles W. Fay, ers.
Jr., Hooker & Fay; Edwin R.
Meetings will be held on Thurs¬
Foley, Kaiser & Co.; Arthur Gamday evenings for 10 weeks begin¬
barasi, Shaw, Hooker & Co.; and
ning on Feb. 5. The fee for the
Paul
F.- Stewart,
Stewart, Eu¬ course is $15.
banks, Meyerson & York.

long-

however,

States have

f^vor of

the net gains of Brit¬

measure

.

export surplus, refusal to: laboratory

influence

Shortage Still Remains

to

SinCe AugUSt' 195°'

at

.

unwillingness of the United

continue
Dollar

%%

nra

>

will

/Ethics and; Business Condtietr.
speculation at t William H..Agnew,;Shumanj Agnew & Co^
Chairman; Warren H:
$1 per
*■..
7 ' /. ;
•The company,: headed • by Sig-1 Berl,; Edwin
D. * BerL- & Son;
mund Janas, Sr/ former President; George Davis, Davis, Skaggs &
Co.;/ Richard
Lawson,. Lawson,
of Colonial Airlines,
Inc., has de-/
veloped the product known as Levjjr & Wflliams; and Stanley E.
"Permachem" which, according to Symons, Sutro & Co * ;
V
^
shares of Permachem

States to raise the official

gold.

W. Spiess Co., of New
City, /is;- offering 300,000

York

a

for the

Spiess Go.

raise the price of gold means that*'casting self-sterilization properties
only the United States
to the textiles out of which such;
^have
to
pay
pre-* fewer dollars
items as clothing, bandages and
for the gold
imported
" " "
surgical ( dressings, ' towels,
in settlement of the
and
export sur¬
been, how¬
numerous ; o t h e r
products, are
plus. ' If,

stock of. the United States. Never¬

re-

A practical evening course in
FRAINCISCO, Calif.—
Mark C. Elworthy, El worthy & the fundamentals of security in¬
Co.^ Chairman of the Board ot vestment, entitled "The Small In¬
Governors of the San Francisco vestor," will be given at Colum¬
Stock Exchange,
has announced; bia University by the Institute of
the
following
appointments \ to Arts and Sciences, beginning in
Standing Committees of the Ex¬ early; February; The aim of the
change? for the eurrent year: *
- course fa to tell the; individual in¬

J.

Peter

Factor,; ^

present-trend of. the
-of

;

Offer Permachem Stock

early convertibility.. /,

balancer

;•,

to¬

eco¬

favorable traue balance in
relation to the United States will

vvnu

the-

of
negligible
dimensions
compared with the size of the gold

ever,

overall

S. F. Stock Exch.

,

The

Bank

discount rate last Thursday from

nf

J

Kennedy„

American price of gold were
one to a
million, they would
fer to avoid it.

.

increase in

&

of the firm.

become accentuated the countries

' ha v e

They do not want to repeat that*

experience, and feel that,

attitude

Questions

hp is known

Ament-an

* '

much.-'

con¬

influence

policy is known to be

j Should the

'

-

latter's

U. S. Trade Balance Key

*"

Sterling the

the Dutch

"trusting'

,

is

to Mr. Churchill

Churchill's
maior

the: nomic

occa¬

the

was the
Federal
Reserve

SAN

wards

people

the

v/'.C", •'

"In matters of

«

Dutch

,

ment bonds were unpegged. A
further step

Appoints Committees

on

bitter about ft, so much
they adapted Canning's

taken

was

"hen govern-

be'

The

nosed

many

•

Cherwell.

is
At the time
verv
that

of

amount

"An i,TIP°rtant ateP in the con~

fhafi

access

stron® and

.fclt

to

Burr, Inc., 70 Pine Street,
himself through the intermediary New York City, -has been
ap¬
of
Sir Arthur Salter "and Lord
pointed" Assistant Vice-President*

their sterling re¬
still -well remembered.

the

vtro1 of credit expansion

n

tax: re-money,; the independence ^of the Federal Reserve
Board, and the improvement of
foreign trade through the elimina-

Walter V. Kennedy, associated
particular, his. with the New York office of Cof-;

In

policy.

carry

n

views have

for

substantial loss

Robbins'

depreciation of
serve,

on

siderable weight in official circles
and are liable to influence British

Banks

safety were the
Dutch authorities.
Presumably the
experience of
1931, when they
a

There

Central

.....

suffered

its

believe that Pro¬

why they should
infinitesimal risk of
loss on their dollar re¬

play

large

budgets,, strict
duction, sound

,

Foremost among those who pre¬
to

in

istration takes

reserve

views

a

serves.

fer

is

con¬

fessor

such

an

a

the

improvement of

be * undertaken.

increasing

"The outlook for;our ;
^conomjT'

Administration

safely

ob1-

reason

suffering

it

every reason to

Governments -and
take

the

to

come

the

remote, several

were very

saw

buying
was

convertibility

has

living

Federal Reserve Bank credit out-

'

depends

will have to go much
further before convertibility could

increase

an

American

Although it

of

he

that

fa

hnrtAj,

gold

the result of speculation

was

the

on

"it

the Sterling Area balance of pay¬
ments and the accumulation of the

foreign dollar holdings into gold.
This

stability

•

United

was

exchange

best

can

its source; name-

government

era* Reserve Banks not continu-

e

of

o

•

reserves

than

a

.

system aiming at

of
countries, and convertibility. Tf in spite of
the United States and this " he
openly advocates post¬

gold

other

monetary principles.

of the architects of the

one

Bretton

found its way to a

:

has always been'
outstanding exponents

orthodox

He is

f*f*m

gram

Robbins

of the

one

the

this

within its income and by the Fed-

f

OMr:

"

monev

Ha

H. F. Hagemann, Jr.

_

Of Coffin & Burr

"

^

,

2%, the first increase
" '
an early date, take steps to make *
"Returning to sound fiscal polithe currency of the people again cies, however, will create many
convertible into gold^General aC.;.problems and it will be a delicate
ceptance of the gold standard re- operation at best. The cutting of
quires acknowledgment of the expenditures will not be popular
truth that true prosperity cannot and the fact that such cuts are
be created by printing money."
absolutely necessary for the genConcerning the economic situa-7
welfare will have to t>e extion, Mr. Hagemann remarked:
plained to tlie pubm:^ ,

,

Kennedy Asst. V.-P.

Pro¬

of

calling

expansion

continued

|-,e controlled at

***■"': ftatof Tddfng

/arf

by

emphatically rejected the idea of
convertibility in the near future

to

came

halt

a

reduce.foreign aid.

fessor Lionel Robbins in which he

part

require

I»joved to be standing.

substantially

to eliminate or

will

Qf credft. This expansion

has

years

to

Robbins

during

,*

implementation

halt to the

con-

j

In all probabil¬

the United States.

gold

ve?i

an

'

*

enable

countries

* y

thousands

ity the reversal of the trend will!
imme-, not be so sharp in 1953 as it was
diate resumption of convertibility. - in 1950.
Nevertheless, it is safe,
to assume that it will follow in
Convertibility Opposed by
due course the decision of Con-:

4

,'r

large

and

«The
program

advocated^ an
return

to

scarcity of dollars continues to began to follow the American ex¬
prevail and is the basic factor in- ample and embarked on a rearma-,
The reversal of the ment drive beyond their means,
trend has been barely noticeable, that
the
balance
of
payments
and it has certainly not been on a
changed once more in favor of
Britain

J* r° n 6

un-

necessarily high tariff barriers.

early

countries

the situation.

sufficiently

out¬

s

American
was
only

the

of

character

sided

tion of trade restrictions and

followed

that

heavily in consequence of the one¬

sterling convertibility is strenuously opposed.

markable reversal of the trend of
the flow of gold. The

■

repetition of the situa¬
Addressing shareholders of the
immediately
Rockland-Atlas National Bank on
after the outbreak of the war in
Jan. 20, H. Frederick Hagemann,
Korea when for many months the
United
States
was
losing
gold Jr., President of the institution,

gold outflow from U. S.

to recent

Hagemann, Jr., President of Rockland-Atlas National Bank of Boston, telis shareholders it is
hoped Congress
will soon take steps to restore gold convertibility of currency.

result

The

effort.

Convertibility

H. Frederick

United
their

the

power

rearmament
would be

tion

Einzig calls attention

existing

the

States would have to step up

By PAUL EINZIG

Dr.

of

Boston Banker Advocates Gold

In

Europe.

of

maintain

to

Thursday, January 29, 1953

...

company's product
the acquisition and

Public

Relations:

Paul

A..

Rees, Bray Promoted

Pflueger, Pfleuger & Baerwald,
Chairman; Edwin D. Berl, Edwin
to make a fundamental
difference
What is believed to be well on products, and for working capital.
D. Berl & Son; R. William Bias,
in the international economic
sit¬ the cards
is, that the attitude of
Jrr, Shuman, Agnew & Co.; Daniel
uation.
For one thing
Kinnard Adds Two
they were the Republican majority in. Con¬
/ J.
Ga. — Arthur F.
Collins, Holt & Collins; H. H. /• ATLANTA,
largely the result of curtailments gress towards
(SpeciaLtp Tin; PlNANCIAIrCHRONICLE)
military and eco¬
Davidson,
Bailey
&
Davidson; Rees III and Robert M. Bray, as¬
of imports from the United
States nomic aid to Europe Will
uninten¬ /MINNEAPOLIS, Minn. — Caleb Jesse M. Levy,
Jr., Lawson, Levy sociated with the Trust
so
that they originated
Company
through tionally contribute "towards, the D. Mende and
Richard R. Rise- & Williams; Arthur R. Mejia. Har¬
weakness, and not through accentuation of the adverse trade
of Georgia in their Bond Depart¬
brook .r are. now connected with ris; Upham ; &/Co.} and Albert
strength. Fundamentally the sit¬ balance of the United
States/Its .John CL ..Kinnard &, Co./135 .South
Schwabacheri:Ji*.i Schwabacher '4-^ ment, have been promoted to the;.;
uation
has
not
changed."
The inevitable consequence will be a! Seventh-Street.
\ / '
: ]&{Co::•//•/A//;/ -'•"•/•r /•:• /•" position of Assistant Secretaries.
..£•/
-">4 •— ••
'
'
'
'

tries on

a

sufficiently large scale




GOP

Foreign

Aid

Policy

introduction

of

the

:

additional

By Trust Go. of Ga.

,

.

-

-i

'

Volume 177

Number 5190'... The Commercial and Financial
Chronicle

(485)

Business and Finance
Continued

I

from page 6

of

which will hold the road better than
any
light car has ever done before. With this
roadability
to build on we then gave the car-unusual
power with
the assurance that it could be used with
safety.
*

A. E. BARIT

■

President, Hudson Motor Car Company
The

Hudson

another

Motor

successful

Car

sale

of

Hudson

satisfactory and the performance of our
the highways as well as in stock car
competition

on

has

again

them

proved

standing.

to

...

be

,

Jet,

new

with
of

car

a

roadability,

products

has been most
cars

car

a

inherent in

Company has just completed
The

year.

car,

Our

i
.

Speaks Alter the Turn
all
six

kind of

new

out¬

car.

new

will greatly increase

car

business,; because there has been

•

The
amazing
record * established
by the Hudson Hornet on stock car

in

tracks

throughout the country in 1952
*

instinctive

an

of

business

'

'

high;,

point

in11952, prices increased from 3 to 4 times.
During
the last half of the
year prices on older
properties were
reduced by about 5%-to 10%. New
construction volume
' was about the
same as 1951 and
though labor costs have
>
risen, builders had difficulty in

a

our

interest

of

speaks

truiy

good volume

'

sensational

economy—is

this

One of the indicators
may be the condition in home
building in this area: The market for residential
properties in 1952
may be characterized as more stable than
for recent years. From
the low point in 1936 to
the

-

•

We believe that this

,

top

share in

promised.

,

characteristics-

and

passengers

performance—together with

'

desirable

will

oi the Year

-

light weight; coupled with excellent
for

room

the

of business

29

the part of many people. There
passing on this increase
are
: to
"prospective purchasers. Sales prices on
medium priced
to account for this: The
number • homes
were'about the same as the
previous year. Vol¬
multiple car families increases every year and
many
ume
iS.being maintained largely by builders who
women and
young people seem to prefer it. The crowded'"
develop
a
jvell planned housing project and are able to negotiate
conditions of roads and
parking space makes- the

,

itself.

for

Hudson

Hornets

placed first in 47 out of 55 stock
In

races.

Hornets
12

31

placed

races

car

first,

of these

Hudson

races

for

In

In

on

reasons

most desirable.

car

this

type

In. view

Hornets

third.

second,

cars

of

com-

pact

Hudson

placed first and second.

those

of

those

of

compact

number

a

of

of
all

these

G.

amazing record of winning the
first four places.
These stock car
are

standard

held

all

tight

the
mile

over a

comers

things,

I

believe

lohg-tfcrm Federally

-

long felt need
that

just

like

Hudson

mile.

A. E.

Barit

in

permits being issued it would
appear that the volume of
building in the early part of 1953 will
equal that of

circles, to oval'
These stock

G. BEARD

last'year.

car

events

record

a

culmination

of production.

year

of the tremendous

of the metals industries

public

are a

i has
to

This

record

large

expansion

expansion programs

instigated at

programs

approacn

completion,
of

the

there

likelihood

is

In

addition

The record

to

of

Hudson

products in stock

car

industries

process

of substantial

are

now

in

work

.

ROBERT F.

spend
in

the

not

$3

billion for
The truck

receptive '>than

Motor

Company

new

equipment'

industry is

ever

before

to

more

these

.

troduced.

My views are based on the
experience of The White Motor Co.

»

are

BLACK

equipment developments and
operating efficiencies now being in¬

unusual degree.

of such a.nature that cutbacks

that

•

1953.

new

products have performance, roadability, safety and
an

saying

industry.
According to estimates made by The American
Trucking
Association, the truck industry will

defense program which, supplement¬
As a result, our sales -; ed^ by regulaiv business consistent
G. G. Beard
with the leveR of'production in the
were such that it gave us a most successful selling year.
metals
industries,- ipsures * a high
Satisfaction of our owners is the source of much pride
level of operations through 1953. This defense work is
and optimism; ; The Hudson Hornet and its companion
our

durability to

by

public stands, to gain
improved shipping service
an^l the truck operators more efficient business because
of new
equipment new available to the truck

the

for

Clearing Industrial District, which
section of
industry, I should like

comment

The

,

tition "proved conclusively to the motor car buyer that

cross

this,

President, The White

a

metals

compe¬

summarize

;

belief

general

of

reduction in
winning most of the stock car races '
demand for capital equipment for the
Hudsons captured every national record in public stock
;
metals industries.
Actually, consid¬
car
competition sanctioned by the American Automobile
erable additional
expansion is con¬
Association; Hudsons won almost three times as many
templated to round out the initial
points in the National Association for Stock Car Racing
'
V
circuit as their closest competitor and they also had f programs.
manufacturers
o f
Furthermore,
more
points in the Pacific Coast Racing Association '
heavy equipment: as used in the
circuit than any other car..'.;
•
.*
.

in the

fairly good

difficulty in maintaining earnings.

,

.

motorists.

a

although
the economy
may be operating in high
gear in 1953, we
have some managers who
look forward to
approximately
the same volume in 1953
as in 1952 but
expect increased

was

the start of the Korean War. As these

testing ground for th^ very qualities of durable,- quick
and safe transportation that are so important to all

Being located

.

completed

1952

the

Many build¬

building

1953. '•

Manufacturers of heavy machinery and
equipment for
the ferrous and non-ferrous
industries have

you

guaranteed financing.

ers, confining their activities to
higher priced homes,
reduced prices in- order to
move
them; those who held
to their
asking .price could not sell. Based on

r

-

President, United Engineering and Foundry
Company

in

dealers and are
of tracks, from

types

one-half

tracks of

all

cars

from

on

to

open

stock

buy

can

apparent.

very

will enjoy a most successful
year iri

five

a

Hudson Hornets made

races

the

events

That there is

is

car

in

a

it

is

truck equipment
analysis survey
conducting among truck fleets
in every kind of business, throughout
the country.

anticipated.

the Hudson Wasp, gained wide public acceptance >
There is much > production
equipment which is ap¬
during the-year; just past and with the many new im¬
7
7 7
provements which have been added to both these models ' proaching a .stage of obsolescence. Replacement of obso¬
I
Today's operating conditions and
lete or inefficient ^facilities and
fdr 1953/ we are -certain that they will gain even wider
machinery will undoubt¬
high costs of doing business make it
edly receive the-attention of the metals producers, par¬
public acceptance during the coming year.
necessary for every truck operator
ticularly in theface of- higher labor costs repeatedly
Because of the unusual durability and long life of
to be more alert than
ever to distri¬
imposed on industry. Productivity, coupled wtih in¬
our cars,
there has developed a great demand in the
bution or
delivery costs. Because of
creased efficiency, while not the only solution to rising
used car market for Hornets and Wasps. In fact, there
this fact,
any economies that can be
Robert F. Black
manufacturing costs, are factors which will be studied
is a shortage of Hornets and Wasps in the open used
effected or any plan to boost
volume
carefully by manufacturers in the future.
car market today. This, of course, speaks extremely well
of deliveries of
shipments hits a responsive note
An
for the acceptance of our cars and again reflects the
among
analysis of the character of our national productive
truck operators.
This fact will increase
facilities will indicate a much higher percentage of ob¬
the-need for
public's appraisal of their quality.
-new motor trucks and
equipment in 1953 to replace outsolescence than is generally recognized when compared
1953 should be a most successful year for Hudson. Na- of-date, inefficient trucks now in use
by many firms. 1
to,the rate of growth of new productive capacity. Fur¬
tional employment is heavy with good prospects of re¬
For that reason our
company is expanding its payload
ther analysis will reveal that in most industries there is
maining so. Payrolls are at an all-time high.
The
engineering and research program
a
semblance of a pattern as to when replacement of
during the coming
production of defense material is scheduled to increase
year.. This program provides truck
operators with a
obsolete facilities takes place; The pattern over a period
in volume as the year goes on: The public has been in
sound way to determine
ideal truck specifications for
of years is fairly regular. It indicates that the trend of
a. buying mood in recent months,
and should improve
the_ir own service and then provide specific models
of
in that direction because we start this year in a new
replacements increases in some ratio to the growth of
^specialized design for maximum
efficiency under these
productive facilities. The replacement of obsolete ma¬
area of governmental policies,
I believe there will be
exact operating conditions.
<
chinery by more modern equipment embodying pro¬
an easier and more optimistic state of mind on the part
The widespread interest that
has greeted the first
ductive, and quality characteristics should' be a con¬
of the majority of the buying public because they feel
phases of the White Payload Procurement Plan
tinuous process; in a dynamic economy. This
that a new national program in which they can be more
in 1952
process, if
and new model White Trucks
confident is on the way.
reflecting this payload
continued, as.it should, would influence the: past cyclical
design have been particularly
character of business of the heavy equipment manuHere at Hudson we now are delivering against some
gratifying. Already
many
truck operators are
putting into effect operating econ¬
facturers by creating a more even'distribution so long
of our defense contracts, and are about ready to start
car,

,

,.,

.

.

•

.

deliveries
able

on

force

schedule
month.

the

balance of them.

educated

calls

for

to

a

Our plans are

the

We have

tasks

a

involved

consider¬
and

further

steady increase from month to
such that there will be no inter¬

,

done, make more deliveries, or
carry more merchandise.
In city
delivery, for example, our White 3000 line is
built
entirely on functional design aimed to save time
in every element of
delivery service, from the moment
it starts in the
morning until it returns at night.

metal

■

v

,:

•

«,.>•

•'

r

'

We have ready for
introduction

■

factory-engineered

-

which add

down within

road clearance. .Hudson's

"step-down" design,
as-this principle is known, has enabled us, to incorporate
in" our cars all the desired factors from the standpoint
J
of durability, safety, and comfort, so important to all
'

motorists.
Hudson

v
•
••
•'
'
again will lead the^way in the science of•
automobile ,building when, shortly our company will
introduce to .the public our Hudson Jet—an entirely
new kind of car—selling in the low-price field. 7
4

,

•

*"7 We joined .the benefits of "step-down" design to the
benefits of light weight and thus produced a new kind-




LAMBERT HERE

.

the base frame,.we were able to lower the seats of the,car and lower the top without sacrifice of either head¬

v*
*

-

I-

President, State Bank of Cleaning, Chicago, 111.

some disagreement with the general'unanimity~ about good business conditions in 1953- in our area.

pujring -1952; many found competition increased consid¬
erably and though sales volume was maintained, net profits were lower, and many feel that this condition will be

.

'

intensified in 1953.
for
,

volume

in

All

seem

general for

to agree that the prospects

1953

are

evceltent.

On

the

other»hand,; there

are individual business., people who
do not expect .to share in this good volume;
Hence,\one
would conclude :that.while
tions are

general prospects for condi¬
good,* it does not necessarily follow that all lines

low-bed

early in 1953 the first

models

in

this

3000

line

new

level of this model

as

much as 12 inches to save

lifting,

stretching and reaching—thus saving as much as
8,000
foot-pounds of energy a day and as much as an hour
of
:delivery time a day.
7 '
.

-

■

We'find

a

efficiency for city and suburban mul¬
tiple stop service such as soft
drink, beer, ice cream and
-milk delivery.
We have been able to lower the
body

the better it will ride and the safer it will be.

room^ or

model improvements
designed
doing the job a more efficient
production tool by making it possible to
get more work

necessary for maximum progress in
working; field, The capacity of the heavy
equipment industry, as it stands today, is adequate for

the

Technology, giving impetus to the development of new
processes of manufacture, creates the necessity for manu¬
facturers to keep ahead in an increasingly competitive
era.
Companies in the equipment field geared to the
changes taking place thereby provide themselves with
additional markets'and increasing diversification.
In conclusion,:the heavy equipment field looks for¬
ward td a continued period of activity with operations
in 1953 on approximately the same level as in 1952.

greater efficiency and

cars

assignment, then provide

to make the motor truck

it serves.

carries with it the responsibility of equal
progress in chassis design so as to insure the enjoyment

J3y recessing:the floor of Hudson

'

engineers first determine what truck units
will
achieve greatest
efficiency in a particular transportation

some

power output

/

and devel¬

Our

time ahead to satisfy the needs of normal expan¬
sion, maintenance and replacement of those industries

Progress in the field of automobile design means for
owner greater comfort, more luxury, added
safety
and top performance which comes from a combination
of sound chassis design and engine efficiency. Greater
engine efficiency with its corresponding increase in
the

better performance with
We, at Hudson, have for some years been concentrating upon this problem. A basic principle, wellknown to science,' is that with due regard for road
clearance and headroom, the lower a car can be built,'

our research

facturing personnel

has been exceptionally good and we have been pressed

safety.

by

affected by cyclical characteristics can better maintain
efficient organization and skilled technical and manu¬

by our dealers for additional cars to fill their orders.
,In 1953 Hudson will again make great strides forward
in advanced automobile design.

of this

supported

the fact'that expansion of pro¬
duction facilities in the heavy < equipment, field itself,
does not compare with the expansion in the industries'
they serve.' This is not unhealthy, since an industry less,

our

ference between defense and automobile production.
The early demand for our 1953 Hornets and Wasps

,

omies which have resulted from
opment program.

national production as a whole is maintained. This is

as

Another development which has resulted in
ciency and new earning power for

.

new

,

effi¬

highway transport

operators expected to be a major factor in the
industry
in the months ahead is the new
White Steering Pusher.
This is a
steering axle unit for White

highway tractors
driving axle. Introduced in
October, this twin steering unit has gained
widespread
acceptance already because of its ability to
produce load
tolerance for
additional
carrying capacity, complete
trailer interchangeability, higher tire
mileage and im¬
proved roadability.
mounted just ahead of the

„

is

Another important phase of our payload
in the development of
higher

weight truck epgines.

We

are

engineering
horsepower, lighter
adding a White Mustang
Continued

on

page

26

*

26

The Commercial and Financial Chronicle

(486)

Continued

develops

which

Engine

would

from page 25

h.p.

184

-

.

,

permits

and

a

in production at
need for better-informed
truck salesmen and our company is doing something
about it.
A continuing sales training program is being
conducted at the White factory in Cleveland and at re¬
gional and branch headquarters throughout the country
to provide the White sales organization with the most
complete and factual sales-engineering information ever
provided truck salesmen—an analytical approach to
proper truck application.
'
And what's more, we are teaching them how to use
the data we've developed, interpreting highly technical

shortages.
-

throughout the truck industry. .
complete line of

in Iran.

period when surplus oils will be
seeking a market. This undoubtedly would cause some
curtaiment of domestic production..
y
* On the other

is

looking

service in

forward

aggressive

for the year

My hope

terprise system.

carrying
the

freedom

we

a

as

Dollars

War

munist

China

struggle

the

be met

to

even

is

requirements.
The
petroleum

continues

at

great republic
are

our

rate

the original

We have

F.

Billiard

than

People must have

intelligently the

the

tinues with each
also bring a
tlement

the

in

Williston Basin

Dakotas and

discovery well.

new

,

This

year

should

*

has

been

upon

-tq

increase

y

.

done to the extent of

:

-and the

ing it.

economy,

but research has

processes are not yet

means

of

proven

as a

petroleum

economically competitive with

thetic

petroleum,

method of fostering the development of
but

the

oil

opposed to such subsidization.
to

synthetic

cur¬

Government subsidization has been sug¬

gested

consumer

filling the needs of the

buy

an

industry

is

syn¬

unalterably

Subsidization forces

the

uneconomical product. The consumer




<

•

/

-

.

controlled

devices,

presses,

pumps,

hydrants

fire

equip¬

stokers,

industrial
and,

among

World

•

feet,

is

Ala.,

facility

at

in the modification

of

government-owned

engaged

War II-aircraft into

training and administrative

planes for the Air Forces; and Aircraft Armaments, Inc.,

•

which, in two laboratory buildings in Baltimore, Md.,
is

active

in

the

development

of various

types of elec-

tronic equipment and armament for the Air Forces and

•,

•

subsidiaries—Hayes Aircraft Corp., which, in

2.000,000-square

Birmingham,

Administration attacks

».

handling

marine

include

concentrated

be

high level of commercial, industrial, and construc¬
activity, coupled with personal savings and business

Hayes Aircraft currently employs approximately 4,000

expansion, could produce results similar to those of 1952

workers, more than three times the number of a year

general

—a

'market.
ued

lack

of

interest

A downtrend

in

in the

these

government

market

governments

levels, could
as a

bond

conditions, plus contin¬

softening of commodity prices and

stock

that costs continued to

,

■

which exceed their re¬

Products on which their

others, aircraft tooling.
New records are making the operations of Hayes' two

the level of business prosperity
new

will

a year ago.

A

increases in the

economical

hydraulic

-

.

in which the

Toronto,

the high rates of the last year

defense orders

and

material

ment,

be maintained.

the international military picture)
on

Philadelphia,

tion

_

and more

activities

in-

production,

.the refinancing and deficit financing problems confront¬

In the search for new reserves, the industry drilled46,800 wells in 1952, which is a new record for drilling
in this country. This was accomplished in spite of the

rent methods.

manner

over

increase without offsetting
price of crude oiLand in spite of a short¬
age of materials caused by the steel strike.
' *
There is continual talk of synthetic
petroleum, nur¬
tured mainly by the past Administration, although the
petroleum industry as well as the government is carry¬
ing on this research. Industry is always seeking better

civilian

spective backlogs of

For government securities the 1953 outlook (assuming

^depends primarily

.

fact

on

•

r

its;- '.no. great change in

a 200,000 barrel1951, and now our reserve produc¬
ing capacity is between 800,000 and 900^000 barrels per
day. and may be expected to increase further during the
coming year.
.
', .
Even greater reserve capacity might be forthcoming
if the price of crude oil were such as to reimburse the
industry for the cost of providing the. additional reserve
capacity.
.
;
...

was

per-day increase

Ont.—should operate at

.'

GUILDS

of Hayes' wholly-owned

plants

hand,

treal, Canada, and Bawden Industries, Ltd., of

Executive Vice-President, C. F. Childs and Company )

T

producing capacity, in the interests of national;

security. This

can

other

Pa., Affiliated Engineering Corporations, Ltd., of Mon¬

a

.

called

stable dollar

'c;- .-/.v'F.N.

the industry can proceed with an orderly r

industry

a

for naval

sub-contracts

two

on

prime award for bomb fins.

a

subsidiaries—American Engineering Co., of

Montana con¬

.

The

high employment and

-

operations

by

the

On

.

their government.

an

Whatever slack may be

occasioned, however, should be taken up to some

extent

*.

make the final decisions.

formed people in support of a free economy,

j

exploration and development program of .the submerged
lands off our West and Southern Coasts.'
;
V \ •;,/ r
reserve

thus

facts if they are to determine

course of

pre-World War II background in material pur¬

a

chases direct from mill sources.

supported

Iment, business, labor and agriculture work with

settlement-of the tidelands issue,./ If s, set-?

occurs

lack of

clear understanding of the issues

more

the availability of steel in the light of Hayes'

years, upon

I am firmly convinced that when leaders in govern-

.

This fact gives credence to the opti¬
they will find all the oil this
country will need for years to come.
The development of the Rocky Mountain area and of;

,*

political leadership in this country, but

a

Grand

Rapids, Mich., facility will be contingent, as in previous

torpedos, and

It is the people who

involved.

that

men

a new

a

sub-assembly work to be undertaken by Hayes'

pattern.,

by people who have

again in 1953.
oil

if not increased employment, and, as a
generally favorable consumer market for
both durable and non-durable products.
Year-to-year
comparisons should favor the upside during the first
several months and a barely sustained level in the clos¬
ing months as defense outlays pass their peak.
Although automobile manufacturers plan an increase
in production during 1953, the volume of stamping and

concomitant,

principles for

that leadership can only be effective when it is

discovery of new oil is expected to be reported for 1952
of

some

control there, chopped away at our freedom and deviated

/from

particu¬

1953 should

sustained,

uct,

to drift gradually
from those original high principles or good pattern.
To illustrate this, I remember very clearly the
boyhood story my father used to tell me about his building of an old-fashioned boardwalk. Grandfather started
out bravely enough and the walk looked all right at
first, but it gradually grew wider and wider until it
lost its original form.
Father had used each board he
cut as a pattern for the next one instead of measuring
each board by the original correct pattern. Just so have
we, by accepting a little regulation here and a simple

,

backlog of
of many manufacturers,

a
relatively good business year, with indications
pointing to a moderate increase in gross national prod¬

Brenton

We have found that it is very easy

produced. In 1951, the last period for which com¬
plete data is available, more than twice as much oil was
found as was produced during the year.; A comparable

mism

Harold

To accomplish

save.

founding fathers laid down

books

the

on

W. Clark

Rensselaer

the

on

be
W,

envision

: away

re¬

Based

orders

place where

as a

on

larly in connection with defense contracts,

and

free to work and build and

it is

and

we

other

plant
equipment is expected to decline

crease.

follow.

to

us

in time of

faster

common

the

Similarly, the number of
dwelling units started will drop
slightly, but, as an offset, the volume
of public works construction will in¬

and

men

On

new

|

country

heretofore.

somewhat.

re¬

But in

industry

a

large

this,

to the in¬
.

E.

may

buying.

than

and

military

its borders

this

*

is well
prepared to meet this increase in
demand, for the discovery of new
oil

of man.

or

nation.

a
a

men

current defense

our

it

as

hand, business expenditure

with varying ideals and prin¬

t

above

buy,

ity

the

to

ciples.

1953

demands

was

women

emergency.

the

thrt

committed

cannot

America

It is expected
requirements will be
another 4% greater than they were
in 1952 to meet additional civilian
rid-onal

outlook

Although defense spending will
rise in 1953, but to a smaller extent,

to stand before the

are

nation

spect for us as

sulting in urgent demands to satisfy
military requirements.
These de¬
mands are now being met and will
continue

republic

our

but dollars alone won't buy

us,

the advent of the

into

consumer

has

We need to

business

be influenced by defense expendi¬
tures, private capital outlays, private
and public works construction and

might cannot force, leadership upon
a world.
We are depending too much
upon
dollars to do everything for

and the entry of Com¬

Korean

-

given to the

general

actions have been

our

which

protection of the dignity

the

were

■

—

percentagewise, than in either of the

BULLARD

Those

1951.

-

last two years, it will be less of a
stimulus to increased business activ¬

which

founded if

included about 1.2 million new vehi¬

saw

•

CLARK

re-

world

anticipated by the petroleum industry, the domes¬
for all petroleum products was greater in
than in the previous year, although it was a more

and

will

any evaluation of prospects during 1953 for the
diverse lines of industrial
activity engaged in by Hayes
Manufacturing Corp. and its wholly-owned and controlled subsidiaries, consideration must be

is that Americans will
for revitalizing the free en¬

Little by little

birthright.

our

upon

during the year just closed, making a net
which now

which

W.

investor

President, Hayes Manufacturing Corporation

;

toward a regimented state and away from

us

individual

been

demand

1950

RENSSELAER

and

progress

study and honor the basic principles

revenue,

President, Stanolind Oil and Gas Company

in

that even the most conservative
have opportunities for profits.
•
<
occur

•

1953

their responsibility

assume

coming close to matching the alltime records in

years

trend, adjustments of the short-term govern-:

market, and resulttemporary fluctuations in prices, are so certain to

ing

«

1953.

contains within

1952

of

year

get bullish.

ment securities market to the
money

•

President of the State Bank of Des Moines, Iowa

today's oper¬

nearly normal increase of 4% ps compared
creases of 12% and 8%
experienced

the

ever

-

W. HAROLD BRENTON

gain of 500,000 trucks in the industry fleet
numbers 8,700,000 units.

As

another

to

to

Long ago, we learned the danger of predicting other
than in terms of broad, obvious trend
possibilities. What-

President, The American Bankers Association

equipment purchases, and ton-miles
of freight service it established in 1951.
According to
the American Trucking Associations, Inc., the truck in¬
dustry in 1953 is expected to invest $3 billion in new
trucks, tractors, trailers, tires, parts, accessories and
special services. This is expected to match the 1952 total

tic

the dollar, it is difficult

In

just closed has been a big one for the truck
industry despite reversals during the early part of the

E. F.

value of

'

mands on American productive capacity.
In spite of these specific problems, the oil industry

;

The year

added

further attempts to nationalize

any

suiting in the loss of control of the sources of supply,
bring about a shortage of crude oil in the world
markets.
Such a situation would place additional de-

history.

cles

hand,

Washington will be willing to adminso long needed to strengthen the

ister the bitter medicine

•

a

could

organization—should make the coming year one
the most satisfactory years in our company's 53-year

investment which

be

foreign oil operations in countries other than Iran, re-

sales

tonnage,

fiscal officials in

.

-

ating conditions and a better-informed, more

year,

.

these

there will

kets,

White Trucks

combination—a

engineered for maximum usefulness under

of

.

.

problems pertains to the situation
If Iranian oil should return to the world mar¬

first of

The

specification and operating information so that the latest
design information is calculated for every truck cus¬
tomer and prospect in an easy-to-understand way.
In
this way, we are able to provide the customer with the
most useful, practical truck he can buy for his own par¬
ticular business needs, resulting in improved delivery
This

•

Because the majority of predictions for business, in
general, indicate little change for at least the first half
of 1953, and because we like to believe that the new

in the coming year. One could result in
oversupply of crude oil, while the other could cause

leum industry

there is a widespread

service

well.
problems, both foreign in origin, face the petro¬

Two

very

developments like these now

With

financial condition which might well be considered some¬
what healthier.

itself, but

the taxes to subsidize that product as

favorable power-to-weight ratio.

Whne,

not only the cost of the product

pay

Thursday, January 29, 1953

...

generate

a
a

fear of current
into

movement

the Navy.

in its aircraft modification program, on

5

ago,

»

expects to be engaged into 1955.

;

Birmingham

company

Indications

which it

are

that the

will receive additional awards for

the conversion of other aircraft than the B-25 bombers

.

haven of security.

now

being modified, thus assuring an enlarged volume

'
■

A

realistic

the

by

new

authorities would not produce

apparent optimistic reasons for

a

any

its traditional form

rise in market prices.

as

a

proportions that it was deemed

ing staff

ent

To that

high proportion of short-term debt and increase the

of

highly trained

industrial property

expect higher prices and lower interest rates.

site,

you

will,

gations

of

Compare^

the present rale of return to investors in

the

Government

of

prevailing rates
Canada,

a

on

nation

'

a

advisable not only to
house its grow¬

engineers under one roof.

in the environs of Baltimore.

On the

50,000-square feet engineering and factory build-

ing is being constructed, into which, it is expected, Air¬

obli¬

craft Armaments'

in

Spring of 1953.

a

the design and devel¬

end, Hayes recently acquired a 26-acre tract of

present low proportion of long-term debt, we should not

'U.S. Government securities to

on

•expand that unit's facilities, but also to

if the Treasury Department attempts to reduce the pres¬

I if

work

opment of intricate defense equipment has attained such

re-

penalty rate, and

the year ahead.

At Aircraft Armaments,

readily

Certainly, if the Federal Reserve rediscount rate is
establishd in

of billings in

approach to the government debt problem

activities will be consolidated by the

Volume 177

Number 5190

.

..

The Commercial and Financial Chronicle

.

27

(437)

RALPH S. DAMON

policy of "Trade Not Aid"-is implemented by the in-*
coming Administration, it is possible that imports and

'President, Trans World Airlines, Inc.
Public
time

acceptance of

air transportation

is at

all-

an

.

high today, as revealed by record figures for the
just ended. The scheduled airlines of the United;

.

year

States

during

1952 set

highs

new

and

mail

m

traffic,

passenger,

and

same

time established the best safety record in their history.

.

ratios,

dropped from 1.3 to 0.38
100 million miles, the
lowest figure ever recorded.
More

than 27 million passengers were car¬
ried more than 15 billion
passenger

IpSfi
V

V ^

gstl

miles

sifts

""'A

States, for

by domestic and international
airlines
of
the
United

number

%■

i

17%

of

in

carried

passengers

the

number

of

and

In

the
Ralph S. Damon

23%

greater than last

out

a

trend

which

1951.

over

passenger
year.

characterized
the
industry
throughout its history, and which has been particularly
marked during the past three years.
We confidently
expect further substantial gains during 1953.

ratio declined in

service, at greatly reduced fares, on its transwidening the market for air trans¬
portation and making it possible for many to visit for¬
this

the

service

to

could before.

Middle

and

1953, this market should be
to foresee

the day when

With
East

expected for
It is possible

Far

greater.

even

tourist fares will

be

.

vested

to

come

appreciate

the

advantages
recognized by Americans who use air cargo: quick turn¬
over of goods, prompt realization of
profits, rapid filling
of orders, and greatly reduced inventories.
In

the

past

the

year

United States showed
miles of;
demand

more

on

than 13%

the part of

international airlines of

11

increase in total

an

1951.

over

foreign businessmen and

ment officials for additional

air service,

funds,

bonds.

Additions

the

to

common

stock

should amount to about

the 1951 figure of $433,759,352. .
Total assets of the North America

govern¬

last year went over the half-billion mark, at

$470,000,000,

as

owed

was

This

is

credit debt

analysis

people

using

are

referred

to

demonstrates

earlier.

that

a
great many more
credit, which is the reason it

consumer

has

grown and will continue to
grow, unless the great
income market is shut
off, with resulting im¬
pairment of consumption sales and
factory employment

middle

rates.

un¬

A second study shows that this
larger group of peo¬
ple are in excellent financial condition to
carry the ob¬
ligations they have contracted for.

The leveling-off of
incomes, which has been
economic development of our

mental

centrated
in

come

income

were

the

middle

income

itself has climbed

Wages

and

salaries

group

and

are

recognized

Another link

favorable decision

a

between

the

from

products and

the

privately employed

Companies which

$504,006,887*

or in the government civil service
aggregated
$33,600,000,000 in ,1933. These payments
climbed to. $70,000,000,000 in.
1941, and today stand at
more than
$200,000,000,000. This is a rise which

far

for

the

understanding
1953

agency,

should

it

on

avoid

the

growing volume of traffic.

regulatory

serves

past losses and

cover

for the future.

establish

sumer

These

a

course

which

statistics

bid},

during

of

light

on

whether

regulatory agency will
permit the high traffic ex¬
pected during 1953 to be translated into good earnings.

follow

,

too

will

credit

clear
role

or

not

consumers

credit.
Board

estimates

in

result.

It

now

1952

than

appears

the

1951

that the total

For

using

Federal

consumer

the

forepart of

crease

at

1953

A.

Diemand

In the

petition will be keen,
outlook

for

a

ocean

even

with

marine-business

com¬

less favorable profit

than in former years, as underwriters compete

slackening

volume




of

business.

If

a

national

Dietz

Other

-

American

family

home

and

the

living standard of
to levels which are higher than

those enjoyed by any other class in any other land at
any other time in history.
Since it is the boon to the average wage or salary

earner,

it is also

a

economy

where

con¬

very

national

consumer

credit, totalling about $15,900,000.0^

charge against the

same

group ol

appliance

pro¬

instalment credit

principal mechanism

for

distributing

sale

pliances.

It

anticipated.
ing

will

sumes,

1946

is,

however,

bulwark

a

to

successful

with

bulking

and

in

larger

modernization, loans

steady

additions

to

in

dis¬

activity, with

outstandings,

Repair

continue

grow and more space is

earnings
Total instalment

credit is truly the servant of the American middle income group.,
It is the boon which has raised the comAmerican

above,; this
over-expansion of

tribution in particular
fields, and marked
some possible
expansion in total

be

may

hous¬

on

volume,

smaller

the

total,

the industry as¬
dwellings built since
as

owners'

required.

families
? -,

.

.

Charge accounts, the principal category of non-instal¬

ment

credit,

consumer

will

expand

or

contract

sea¬

sonally and in direct relationship with the trend of re¬
tail trade. If high
employment continues and the price
index stays on even keel or
drops a bit as some have

or

fort of tho

an

credit, for furniture, personal items and
the like, is less important in
volume than that repre¬
sented by credit for
purchases of automobiles and ap¬

date, covering extended payments on
loans, was $15,883,000,000.
Any examination of the consumer credit picture to¬
day, should start with the observation that consumer

the

ness.

O.

that

on

purchases

rate of 5 to

increasing competition for this busi¬
John

credit

it looks

10%, but loss
ratios are unpredictable.
There is
every sign that the past underwriting
4«t;ii
profit in the fire classes will i«nrf
bring
a

A.

billing device synchronized with the accrued

continue to in¬

in

in all phases of

one

discussed

undue

was

credit

are

been

duction also is to be
anticipated, with

credit outstanding at Oct.

obligations.

that there

again proving the
this output.

indebtedness,

of those who contract such

has

as

outstandings will continue to grow in 19*°
Current forecasts
by the industry indicate that automo¬
bile and truck production in
1953, may reach 6,500,000
units, compared with the 5,500,000 produced in 1°5?.
This will make for hard
selling by dealers who will re'y
on
instalment selling to reach increased
numbers of
customers. A large volume of electrical

31, included more than
$4,000,000,090 in charge accounts, a form of short-term,
convenience credit which usually represents no forward
obligation whatsoever but can be described as a monthly

1951, bring¬
better profit result.

if premiums will

as

sumer

favorable than
a

consumer

but,

personal

savings

over-all

although the figure admittedly is a
large one and seems to have within itself the capacity
to frighten the unwary.
Consumer credit outstandings are not all medium or
long-term consumer debt, sometimes regarded as a
charge against the future. The $22,800,000,000 of con¬

premiums written by the Fire and
Companies
of
the
North
America group will be about $155,000,000, an increase of 7% over 1951.
The loss experience during the year

ing about,

of

most active

was a

in current

have

amount

spectacular increase during 1952

a

high, consumers' earnings are
prosperity and the outlook for
stability of employment and prices is found to be
good
by the nation's leading economists and financial experts.
Instalment credit, the most
important component of

high

a

say

of

reflection of

a

more

at

to

use

sumers'

$22,000,000,000, certain observ¬
been quick to assume that
\$22,000,000,000 is an excessive

Marine

was more

outstanding

not

the

con¬

new

er*?

Insurance Company of North America
Companies con¬
tinued their expansion in
1952, and expect to expand
their business again in 1953. Both volume of
premiums
written by the companies and
underwriting profit will
greater

is

1952,

credit

consumer

today,

are

When the

or

whole.

a

The year

than

President, North America Companies

be

as

themselves, they cast no
the important question of

much

Reserve

make

dynamic

figure and places this figure at

JOHN A. DIEMAND

reportedly has shown

used

credit in

credit's

individuals

$49,600,000,000,

$76,800,000,000 or 8.6 times the comparable consumer
credit obligations of
$8,826,000,000. By the end of 1951
(the latest date for which figures are
available), there
was
$186,000,000,000 in personal savings to contrast
with $20,600,000,000 of consumer
debt, or savings of
more than nine times the debt.
The ratio, undoubtedly,
is still more favorable
today, for the rate of savings

expenditures of all types.

*

It is to be hoped
that, as a result of experience
the immediate postwar years, the

profit to

credit provided a vital under¬

sumer

has

years,

are
available, such savings
7.5 times the consumer credit
obligations at the year-end. In 1941, these
savings were

pinning to the economy, representing
nearly 25% of estimated consumer

re¬

recent

totaled

President, C. I. T. Financial Corporation

consumer

in

level,

*

r

growth

Reserve Board estimates of
personal liquid assets hold¬

approximately $50,000,000,000
1952, and this expenditure was an
essential support to the distribution of the $215,000,000,000 of goods and services which were purchased by con¬
sumers
during the year. Thus, con¬
of

having jurisdiction over the United States air¬
been unwilling in the past to recognize the
special capital requirements of an industry which is
characterized by violent traffic fluctuations, rapid tech¬
nological development, and long time-lags in procuring
new
equipment. In the past, this agency has not been
willing to permit the industry a level of earnings in good
which would

a

of

bring

ings of private

hope that 1953 will show

American families

has

times

may

ARTHUR O. DIETZ

agency

lines

to

profit.

•

The

Year

series

a

passing

Furthermore, the airline industry is faced with heavy
capital costs for purchasing and integrating new and
increasingly expensive equipment required to accom¬
modate

New

rate

outstripping the expansion of consumer credit out¬
standings/, In 1939, the first year for which Federal

of catastrophic losses, such as the
November 1950 hurricane on the East Coast, the fire and
marine companies should continue to show reasonable

transport industry. Of course, the airlines
are subject to the same increases in
prices and wages
as
other industries, and they have endeavored to meet

to

the

casualty underwriter.

Barring

air

problem by improved efficiency
the increase to the public.

what

to

the de¬

consumers,

remarkable

a

far

.

is reasonable

the

part of the airlines'
be another good year

this

,

ahead

If price levels hold even and claims costs remain

the

on

the

ex¬

outstandings.

Personal liquid savings, another indicator of
gree of financial well-being of
today's
.

forth, certain assumptions must be made:

With these optimistic notes for the future, and with a

regulatory

;

Looking

markets

principal

of income in the
$2,000-$7,500 bracket. The na¬
tional figures for wage and
salary payments to persons

•

nation, premium writings
by Fire, Marine and Casualty Companies will continue

of the Middle and Far East and the industrial know-how
of the United States is definitely needed.
reasonable

in

personal

the

as

to rise.

mid-1953, subject to

business

this

source

.

.

growing

funa-

dramatically.

in

CAB.

an

a

time, has' con¬
greater proportion of the total personal in¬

a

shown

help meet this demand,; TWA has applied for;

21,-

or

indication that the same trend
magnified if the figure could be projected
1952 and applied against the
$22,000,000,000

is

To

13,200,000

Thus, the 1951 debt of $20,600,obligation of 25,870,000 family

extension of its routes from Bombay to
Tokyo, and we
are
hopeful of beginning service eastward from India

-

by

an

ceeds the expansion of consumer
credit

particularly in

-

and

every

substantially increased for 1953.
The volume of insurance premiums is directly related
to the growth of the national economy.. So
long as there

the Far East.

$2,000

be

through

--

will be

nation.

primarily

was

There

consumer

compared with
-

.

the

would

.

j

between

$9,400,000,000' of
outstanding at the beginning of the year.

debt

units.

principally in public utility equities which were acquired
through the exercise of rights.
At the end of 1952, invested assets of the companies

;

incomes

debt

consumer

in

000,000,

com¬

as

portfolio

growing

a

families

1951 results.

i

the
ton-;

revenue

There is

new

had

In
1951) 65% of all families had incomes in the $2,000$7,500 middle income range, and there were
39,820,000

with last year's total net addition to the book
value of securities owned of about $26,000,000.
The major portion of this investment has been made
in U. S.. Treasury bonds and high grade
tax-exempt

Air transportation has come to play an ever-increasing
role in international
trade and commerce.
European

have

approximately $33,000,000 of

of

consumer

pared

\

•>

businessmen

group above the

these

of

By 1942, 59% of the then 36,450,000 families,
500,000 families, owed most of the

During the first 11 months of 1952, the companies in¬

available

throughout the world.
.

derwriting profit for the

may be described
*

units.

families.

$72,009,000,

combined loss and expense figure that indicates an

extensions of

45%

dollars)

derwriting loss for the company in 1952.
The total of premiums written by the North America
Companies for 1952 will be about $227,000,000, with a

ist-class

Atlantic routes, thus

prior time, be¬

any

1935, there were 29,400,000 American families and
recent estimate by McGraw-Hill
economists shows

that

larger premium volume, the
ratios will result in an un¬

a

combined loss and expense

In May of 1952, Trans World Airlines introduced tour¬

never

handling

and

$7,500, which might arbitrarily be selected as the lower
and upper limits for
defining the middle income groups.
Thus, in that year, almost all the $5,100,000,000 (1935

1951.

over

than at

savings

belonging to middle income

a

Continuing losses on automobile bodily injury and
property damage liability insurance, and a sharp upturn
in fidelity losses contributed to an increase in the com¬
pany's loss ratio over the 1951 result. While the expense

carry

has

eign lands who

increase of 25%

an

were

more

people

they have larger

In

will end the year with premiums written of

TWA's domestic

miles for the year
The figures for 1952

as

ance

domestic passenger miles alone,
airline industry scored a 17.4%

increase

more

-

Despite adverse profit possibilities Indemnity Insur¬
Company of North America followed a policy of
providing for normal growth of business. The company

| miles flown.

i

than

more

the rising standard of
living and general Ievelingoff of personal incomes have
greatly increased the pro¬
portion of the whole population which

profitable ilnes.

passenger

group includes
ever
before and

cause

The effects of inflation, which caused casualty
insurance companies such huge losses in 1951, continued
to be felt despite some rate increases in the
most un¬

increase of 9% in the

an

earnings and

writings.

scheduled

families

more

increasingly large loss
rigid underwriting

expect

The middle income

.

In the early months of 1952, the attitude of most
casualty insurance underwriters was influenced by the
exceptionally bad underwriting results of the previous
year.
The market was tight, particularly in the auto¬
mobile bodily injury and property damage
field, as many
companies refined their business and restricted their

rate

passengers per

\

properly

can

requirements.

The United States domestic fatal¬

ity

proportions, he

must first consider who owes the
money.

Tailor-made policies covering new methods of installa-r
tion and construction will be much in demand.
Many
lines of inland business, due to

cargo,

the

at

people—and when one attempts to determine-whether
it represents a debt of
unmanageable

exports may be somewhat greater than in 1952,
We expect, along with continued industrial
expansion, *
a more pressing need for forms of
specialized insurance,
protection throughout the inland marine insurance field.;

predicted, brisk
lines
-

may

markets

stagnate

from

are

time

probable
to

time.

although

some

Merchants

are

promoting credit selling most aggressively,
particularly
on

big-ticket

is

a

a

royal road

items

as
durables.
This observation
reminder that credit selling, though
profits, is not a one-way street. "No

forerunner to

down

to

payments"

such

a

and

"four

,

years

to

pav"

Continued

advertising
on

page

28

:

The Commercial and Financial Chronicle

S3

Continued from page

is somewhere

27

over-optimistic
also the over-optimistic store owner,
the

purchaser but
Consumer credit is a most human phase of economics
and business.
It is very close to the stream of family
life, needs and aspirations. Many see it as no accident
that the people of the United States enjoy the worlds

.

Thursday, January 29, 1953

.

credit.

consumer

Because

or

EVEREST

how it is possible for any

I do not see

distinct falling

to occur during

goods

for

demand

in

inventories in the hands of a

what

fized

-

they

them

of

I

when

ago

years

corded sales and shipments

D.

C.

Everest

which I am

which

factual

more

data

on

depression.

a

We

come

But

signs of

The

new

the

problem

an

of

a

*inem all

the

our

these

know-how, and

plants -abroad,

now we

given

will have to buy

which they produce.
If the old "goodwill
racket," advocated by Roosevelt and Truman, is really
going to work, we just can't absorb that amount of
stuff and if we take their production plus what we have
goods

radar

Operating both
of

A.

one

lack of business.

will hear the unions yowl
and criticize the tariff policy which was set up by Mr.

Insurance

and it may face

•not appear

In

a

will

be

fecheme
not

cuts

50%.

Someone

must

of-flexibility-.in this tariff set-up

bound

time.

of

You

by

some

cannot

convention

depend

upon

over

a

devise

so

that

long

beset 1952.

the

the

Electric

and

military

fields

and

tional

[

a

will

conditions
•

savings

pro¬
A.

E.

ice

fill

are

far

from

1952.
rates

A

life

is

expected.

merit,

from

insurance

of

causes

Fitzgerald

before
.:

On

the

at

absorb the entire market.

We
-

a

are

lot of

in

a

terrible

mess

'In

tfye invest-

the outlook is

Canada,

The grain crop, one of

•

economy,

was

"

,"

TRADING

j. r. wllliston,

created

Bruce & Co.

ANO

J. R. Williston &l Co.
in the East.

which will require

-

Inquiries Invited

crop of executives

•




■'*

NewYarfc

■

San Francisco

,

iLos An*eles-

'

Portland

T

,

V

*

level,

continuation

for

of

by

the
the

The Canadian in-

through the

know little about this situation.

.

a

high

Continued

Conrad, Bruce & Co. with

OTHER-STOCK- ANO COMMODITY EXCHANGE#

period of

So far as the paper industry is concerned I believe"
consumption, including something ih excess of Tive anilhon tons of newsprint from Canada and Scandinavian
gantries, will run in excess of 31 million tons, which-

for

Pacific Coast firm of

EXCHANGE

Quotations

capacity

expenditures

consolidation of the

Mti

common sense to wiggle out of.
We have not been bedeviled with imports for some con¬
new

to

ORGANIZATION

diplomacy and

siderable time and therefore the

booked

COAST TO COAST

STOCK

and
good.

the mainstays of the Canadian

defense-supporting industries, we expect overall demand

NEW YORK

seem

United

record one in 1952.

a

'

the patriotism of im¬

one

business

for

future,

outlook

months, defense expenditures
expected to reach their peak

'

and

the

mid-1953, and capital

least

leveling off in the demand for capital for defense and

ESTABLISHED

good.

immediate

1953,

be

to

business

present high level of business activity.

side, while there may be some

W£M»2M

have
run

remain

to

more

business maintaining a - very
economy seems set for a good year.

death

other

the

states¬

and

will

longer

private

along with low rates of termi¬

nation
Edmund

low

of

The
of

States, with manu¬
reporting a greater back¬
log of orders than a year ago, steel

not

satisfied, it is

continuation

countries

many

Grauer

the needs which life insurance serv¬

anticipated that 1953 sales should be
close to the record high levels
of

In

companies

In view of this, and because

grams.

interna¬

facturers

a

and

investment

are

the

specifically

high value on
encourages
long-

and

self-reliance

the

situations

if

For

atmosphere created by
the prospect of a new national Ad¬
ministration is good. It is an atmos¬
phere which places

of

payments.

immediate

conditions

the

range

require

Such

For the insurance business in par¬

ticular

of

improved

approach.

new

fields

and

calibre.

outlook and

new

the

manlike consideration of the highest

porters to sit idly by and permit American made goods
vo

in

trade

area and of the dollar-poor
countries
outside the sterling area

that America has a
a

Limited

sterling

•

1953 will be new,

leader with

new

Company

year

severe

same

citizenry,- regardless of party,

some

we are

GRAUER

full of great problems, but it would
that business recession will be one of them.
a

but
problems that have
Encouraging, however, is the feeling among

facing

great many instances the tariffs in effect in 1932,
represented 100, are now 12V2 through three

successive

E.

Columbia

The problems primarily lie in the international, politi¬

Company

The national Administration in

iioosevelt.
which

British

1953 will be

sort or another, are shutdown for

Then you

prime and sub-contractor, Frue¬

a

already visible.

particularly along the East Coast, mak¬

ing gimcracks of

as

difficulties

it

its associ¬

country.

our

President,

ia this country, someone is going to get hurt. My guess
is that these imports will continue until such time as a lot
<j2 union plants,

electrical gun director and

systems which proved effective against Nazi
planes and "buzz bombs" during World War II.

President, The Northwestern Mutual Life

■

rehabilitate

Laboratories

ated

EDMUND FITZGERALD

'

to

Bell

cal

think the demand might easily
exceed the productive capacity.
Any of these analysts who can pin-point a recession
to the seventeenth day of August or some other date is,
la my opinion, just full of prunes.
There is one' im¬
pending threat to our economy, however, which no one
seems to pay any attention to, and that is the possibility
of a flood of imports of things which can now be made

dollars

are

business recession,

the world, then I would

of

The fire-control system is an outgrowth of the famous

:

problems within the early part of its term in office.

one

have poured out billions

is

Perhaps the key word should be

impending setback

My guess is that "obsolescerie" of design may cause
higher expenditures rather than lower during 1953.
Should we have another "Korea" in some other part of

Over the past few years we

system is compact and portable
anywhere the gun battery can go. The
unusually light and can be transported - by

-

Administration will certainly have to deal with

thing and actual expenditures are another.

abroad.

fire-control

as

figures
are

backlog for military type

a

a

is this:

those

has

$90,000,000.

be moved

plane.

entering 1953 with everything booming and
though it will continue. What it boils down
there is enough steam in the boiler to carry
the current boom well through this year if not farther.to

Fruehauf

Korea,

the

new

can

trailer

are

it looks

in

hauf is delivering materiel indispensable in the defense

receipts and expendi¬

much

so

The
and

stability.

will be very high. Receipts of

gobblede-gook in the
out of Washington. Commitments

not

and

A sharp decline in

profits.

:

starting

hostilities

special trailers being produced for the
lightweight magnesium trailer unit designed
to house and transport a new and more effective firecontrol
system for automatically aiming anti-aircraft
artillery.
'
Among

expect the incoming Administration to carry

do not

if the

than $63,000,000 of trailers to the gov¬

company

over

services is

government economies to a point that would jeopardize
the social advances of recent years or risk the danger of

satisfactory.
Of course, food is one of the things they cannot get
along without which lends stability to our particular
business, but if expenditures for war materiel are such
an important part in our present economy, there is going
to be no slackening in that department for some time
to come. I think during the coming Administration we
have

Eccle3

George s

of

also very

are

adjustment in

smaller margin of

reason¬

Following the pattern set in World War II, when
Fruehauf plants produced 101 different military vehicles,
current defense production is widely diversified. Models
range from 1 %-ton cargo trailers through gasoline trans¬
ports for various branches of the armed forces.

place.

than

1, they all wanted their shipments held up in our plants
during December and are now clamoring for deliveries,
which indicates to me that January and February re¬

tures

a

some

more

The

trailers of

production.
* (
prices, being supported by the government, ob¬
viously cannot decline much, and under present condi¬
tions a reduction in many wages is not likely to take

familiar, I know that all of these packers of food prod¬
ucts, and particularly those engaged in frozen foods,
put off buying until they were practically out of con¬
tainers and then expected their supplier to furnish them
with five-color printing overnight.
Our difficulty has been to keep people satisfied in
the matter of deliveries during the past three or four
months. On account of this old inventory idea on Jan.

will

see

a

government spending is
,

of

outbreak

has delivered

We
balanced budget

be stimulated by

This will be possible

,

the

ernment.

Farm

prices were lower. A good many
people do not seem to realize this.
In the business of food packaging with

pusiness

Since

program

and

cost

have

less

much

are

few

a

were

they

which

supplies

erating

curtailed.

price of commodities is not to be expected,; partly
because one cannot see any material'reduction in the

of op¬

units and the number of days
ahead

tax

tion

,

people have this
situation, for instance,
in dollars rather than in

up

will

we

in tax -rates.

situation is settled and

Korean

and

the

•

I think too many

inventory

Business in general would

in the operation of our gov¬
We will see sounder fiscal

probably see

and

new

a

hostilities started.

able reduction

ef¬

policies that will stop inflation.
will

business

pick-up in

Prices should be generally stable throughout the year.

and elimination of
some of our government controls.
By 1954 we will definitely see a
new
pattern. The principal charac¬
teristics will be increased competi-

military purchases are not going to
be stopped overnight, I cannot see
bow 1953 is going to be seriously af¬
fected so far as units of production
concerned.

Korean

government.
probably go through 1953
rather stable basis. We will see

ernment.

our

large segment of concerns were re¬
duced
to
a
dangerous point, that

;tre

a

The

1953.

cycle.
The truck-trailer manufacturing industry went
through a period of approximately 12 months with sub¬
normal sales, probably due to the necessity of consoli¬
dating the large increase in trailer equipment purchased
by the motor transport industry around the time the

ably not too serious, but a definite
readjustment which will be felt. The

economy

FRUEHAUF

after the settlement of the steel strike has started

economic boom will probably last through
(his year but at some time not too long after that there
will be a readjustment. I do not think that we can close
our
eyes and now say that everything is going to be
good for a long time to come. We are
bound to have a readjustment, prob¬

on

nation, should place that objec¬

other.

Commercial business of Fruehauf Trailer Company is

We will

the current
year.
When one realizes that employment was at its
highest peak in this country st.anv time on Dec. 31, that
during 1952 there is no question but
off

above every

expected to increase in

National

The present

management

unity will
Business management, along with

objective.

ROY

better

Marathon Corporation

Chairman of the Board,

tive

GEORGE S. ECCLES

better

rates firm.

interest

President, Fruehauf Trailer Company

President, First Security Bank of Utah
Association, Ogden, Utah

ficiency,

and

strong

all other elements in the

goods regardless of their ultimate use.

great need lor the future is more
D. C.

be the main

creasing the consumption of paper and paper products
are so necessary to the packing and protection of

consumer

pessimism and, because consumer credit also
always involves the future, their appraisal of what the
future is going to be.
Since 1953 gives promise of being a good year for
business generally and for the consuming public, it will
also be a good year for consumer credit and those wlur
use it to provide themselves and their families with the.
material requisites for a better life.

timism

continue

to

which

credit is
r.o close to people it is very responsive to what people
are
thinking about—their immediate attitudes of op¬
of

users

capital

The pew year will be one in which national

both paper and paperboard.)
On this basis, consumption in 1953 will be
within one or two per cent of v/hat it was for 1952.
Any full-fledged war effort will have the effect of in¬

largest

and are the world's

standards

living

highest

for

one-third the consumption of steel.

near

(When I speak of paper I mean

,

not only

which entrap

snares

are

l

.

(488)

Seattle

x-

•

Miami Beach

,

\

on

page

33

Volume 177

Number 5190

The Commercial and Financial Chronicle

...

(489)

New York

Security Dealers Association

Harry R. Amolt, Amott, Baker & Co. Incorporated; Donald C.
Cook, Securities &
Exchange
Commission; Frank Dunne, Dunne & Co.; Richard M. Crooks, Chairman of New York Stock
Exchange

Edwin

L.
\

Howard
Mortimer

Beck

and

Hal

E.

Financial

Murphy,

Commercial

and

.Col.

Oliver

J.

Chronicle




Co.; J. Howard Rossbach, Securities
Morris, David Morris & Co.

David

&

Exchange

Robert A.

Bligh, Fahnestock & Co., Torrington, Conn.; Frank T. Harrington, H. D. Knox & Co., Inc.,
Boston; Herbert D. Knox, H. D. Knox & Co., Inc., New York City

Troster, Troster, Singer & Co.; John
Goldman,. Sachs & Co.

Allen, Albert Frank-Guenther Law, Inc.; Stanley L. Roggenburg, Roggenburg & Co.;
Landsberg, Brickman, Landsberg & Co.; William Moran, Securities & Exchange Commission

Joseph S. Nye, Neerguard, Miller &

29

Commission;

Paul

R.

Rowan,

A.

Richard

Keane,

&

Securities

&

F. Abbe, Shields A Company; Harold B. Smith,
Pershing
Co.; John M. Mayer, Merrill Lynch, Pierce, Fenner & Beane

Exchange Commission; Philip
Gray, New York Stock

Edward

L. Carret,
Exchange

Granbery,

Marache

&

Co.;

Nolan Harrigan, Irving Trust Company; John J. O'Kane, Jr., John J. O'Kane, Jr. & Co.; Edward T.
McCormick, President of the American Stock Exchange; Charles H. Dewd, Hodson <6 Company, Inc.

30

The Commercial and Financial Chronicle

(490)

...

Thursday, January 29, 1953

Twenty-Seventh Annual Dinner

Hanns

Peter

A.

T.

M.

E.

Kuehner, Joyce, Kuehner & Co.; William
Joseph Kane, Dominick & Dominich; Reginald

Byrne, Securities <£ Exchange Commission;
Siegel, Securities & Exchange Commission

Krensky, Republic Investment
Mackie,

George

A.

Searight;




Inc.;

Gerald

W.

J.

S.

York

Wien, M. S. Wien & Co.;
Security Dealers Association

Frederick

Co.;

D.

Gearhart, Jr.,

Kumm, Dunne & Co.; "Duke" Hunter, Hunter Securities
Corporation; Julius Golden, Greene and Company

Edward

J.

Singer,

Gearhart
Samuel

William

Company, Inc., Chicago; Herbert Singer,
Merritt Coleman, Allen & Company

C.

Melville
New

H. Joyce, Joyce, Kuehner &
J. Knapp, Wertheim & Co.

Bean

&

James

F.

FitzGerald,
Walter

Enright,

Daniel

M.

Edmund

W.
F.

& Otis, Inc.; William C. Orton,
Weinberg, S. Weinberg & Co.

Arthur E.

Gude,

Winmill

Davis,

Schwartz, Bache & Co.; Harry D. Casper, John J. O'Kane,
&
Co.; George V. Hunt, Terry & Company

L. Canady & Co., Inc.; Carl H. Oelkers,
Saunders, Dominion Securities Corporation;

Rambo,

Co.;

Jr.

Manufacturers
John Heck

Sheehan, Jr., Sheehan, McCoy & Willard, Boston; Edward V. Otis, Gearhart
J.

&

Close

&

Kerner,

Inc.,

Philadelphia;

William

Russell,

Trust

&

Co.;

Otis, Inc.;

Mabon

&

Co.

Volume 177

Number 5190

.

.

.

The Commercial and Financial Chronicle

Held

at

(491)

the Hotel Biltmore

Robert

A. Weaver, Securities &
Exchange Commission; Edmond G. Blumner, Securities & Exchange
Commission; Richard M. Crooks, Chairman of New York Stock Exchange; A. M. Metz; Edward A. Kole

Clarence E. Unterberg,
Laurence

M.

Marks

C. E. Unterberg & Co.; Charles M. Zingraf,
Co.; George L. Collins, Geyer & Co. Inc.

Samuel

&

F.

31

Colwell,

Abner

W. E. Hutton

Charles

King,

Goldstone;

National

&

Charles

Murray

Association

of

Hanson,

Securities

Co.; Gerard L. Burchard
King & Co.

Investment Bankers Association of America; George E. Rieber,
Frank Dunne, Jr., Merrill Lynch, Pierce, Fenner & Beane

Dealers;

Fillan

and

Moran,

Charles

M.

Moran & Co., Newark,
Weber, Weber-Millican

N.

J.;

Co.

f
Stephen
t'l'

L.

Frank

Blanchard, Schwabacher & Co.;
Harold
J.
J. Ronan,
New York Hanseatic Corporation;
#

Anthon

*

Frank Daines,

Hayden,

Burke, Auchincloss,
Anthony Marcovich,

Stone

&

Parker &
Laid'aw &

Redpath;
Co.;

Lund, Securities & Exchange Commission; Howard Rossbach, Securities & Exchange
Commission; George Parlin, Securities & Exchange Commission;
Allen MacDuffie, Federal Reserve Bank of New York




James

Canavan,

Maurice

Co.

Hart,

New
New

York Hanseatic Corporation; F. Daniel Wasscrvogel, Dean
York Hanseatic Corporation; Theodore
Schneider,
Burnham
D.

John

H.

Paul

Jacoby,

Asiel

&

<£ Co.;
Company;

Witter

and

Co.

Stevenson, Singer, Bean & Mackie, Inc.; Charles E. Stoltz, C. E. Stoltz & Co.; Matthew J.
McCabe, Singer, Bean & Mackie, Inc.; Bernard Salmon, Singer, Bean & Mackie, Inc.

I

32

The Commercial and Financial Chronicle

(492)

...

Thursday, January 29. 1953

January 16th, 1953
"

X

Daniel J. Riesner, guest; Samuel B. Cantor,

James V.

Campbell, H. C. Wainwright & Co.; T. J. Cahill,
Bank

of

Arthur

Bisgood,

Theodore Young, Adolph 0. Mazur, and Alexander Zebertovich,

all of J. Arthur

Warner

&

Co., Incorporated

Frank L. Hall, Gersten A Franhel; Aaron Netburn, New York Hanseatic Corporation;
man,

Irving L. Felt-

Mitchell A Co.; James P. Cleaver, Goodbody & Co.; Jack Honig, New York Hanseatic




Registrar

&

Transfer

Co.;

Louis

Walker,

Co.;

Saul

Golkin,

Golkin

&

Co.

Harry B. Spring, and George Stewart, Spring, Stewart & Co.

National Quotation Bureau; Harry MacCallum, Jr.,
MacCallum
&
Co., Mt. Vernon

the Manhattan Co.

Theodore E. Plumridge,

James Siepser, Shaskan & Co.; Morris Seiler, Bache &

S. B. Cantor Co.; Robert M. Topol, Greene and Company

Corporation

Samuel E. Magid, Hill, Thompson A Co., Inc.; Robert Strauss, Daniel F. Rice and Company, Chicago;
Charles D. Runyan, Trust Company of North America
•

Charles Robinson, Frederic H. Hatch & Co., Inc.; John H» Slade, Bear, Stearns & Co.; Frank J.
Morrissey, F. J. Morrissey & Co., Philadelphia; William Schrciner, F. J. Morrissey & Co., Philadelphia

Number 5190

Volume 177

.

Financial!

.The Commercial and

.

Chronicle

(493)

33

Business and Finance Speaks filter the Turn oi the Year
added

Continued, from page 28
dustrial capacity is still expanding and defense expendi¬

the past year

indicates

stable wage costs for 1953,

more

Most of the decline has been in the sectors of

;

consumers

goods and food prices, and there appears to be
mediate prospect of a reversal of this trend.

-

.

Two

wide

factors which will affect the economic, situ-

new

Railroads,
business,
* outlook

ings

as

much

for

extended

over

of

/

results

'

influences will be

these two

from

Canada's

important

Shipper

"

with

-

.

;

r

relation

President,

the

to

of

than

more

World

War

to

1953 has every prospect of being a good
business year on the whole, but it holds many serious
problems in the fields of economics and international
relations

which, if not improved, might
business conditions subsequently.

poorer

well

lead

'r.

'

'

f

-.

''

'

1

*

„•

•

,V

4

*

*,

"

'

.

„'

•

♦.

.

signals

Most

and

all

that

thought

from

not

been

to

my

own

increase

for

these

There

in the future ever

the

efficiency,

to have

seems

judgment, is not merely wishful thinking, but is
everyone knows and
need .not

here.

discussed

be

I do not think that

cessation of the fighting in Korea

a

would have any

immediate effect on our national econ¬
because we are committed to a program of strengthening our defenses militarily, and while expenditures for
that purpose may decrease to some degree, money will
still be spent for defense.
omy

*

Looking into 1953 there is, of course, a lot of defense
money which has been appropriated which has not yet
been spent. The purchasing power of the civilian popula¬
tion is at

a high level and I
change that situation.

nothing in the next

see

year

earnings
quate for the job

Johnston

but

supported by economic factors that
which

W.

express

the part of the public
since the election and that confidence,

more

a

1951.
of

Wayne

Johnston

A.

exception.

no

still

that

inade¬

needs

be

to

Good business will not

automatically flow to individ¬
companies in '53—to sell, they will have to deserve it,

ual

will have to

and

every sound merchandising
at their command to increase their sales.
use

means

erating

of greater

way

large number of freight
cars
whose delivery'has been delayed by shortage of
steel, but they have the physical capacity to handle a
a

larger business than they

are handling at the pres¬
problem is to get enough business to fully
utilize the huge investments that have been poured into
ent time—the

plant.
To do this, the railroads must be
free to price their services on a truly competitive basis.
They must have the freedom to exercise their own judg¬
ment, based on knowledge and experience, as to what

of

latter

part

which

Catching-up
lead

constantly-increasing cost of doing business.

in

or

in the coming

programs
As

industrial

personal

and

high

stimulating
levels of

further

demand

increased.

for

consumer
goods
expected to remain
and result in some strength¬

services

strong

is

ening of retail prices.
outlook

The
is

generally

in

"

as

Johnson

industrial
in

kets

the

countries

favorable.

In

Demand

activity remain high/~*MarUnited ^Kingdom and other soft currency

industrial
evidence

tinue

service

'<:■

accompanied

to

internal

nations.

for

for

some,

Canada's

telephone
time

to

vigorous

There Invalid

development.

service

will

con¬

Leading 'the

come.

-and close behind the United States and

phones

per

„

systems and numerous smaller regional companies.-

Operating in the
.

;

Ontario

and

Canada

serves

more

Quebec,

nearly dwo-thirds -olThe

.-phones, maintaining
and
to

service.

$85

Bell Telephone

'very

some

million

for

company

construction




1

of

highest

approximately $6,000,000.

in 1952 of $176,400,000 will re¬

of

about

$12,700,000,
with' $13,500,000,

compared

it

also

facilitmsand

factor in

a

eventful for the Erie Railroad

was

as

marked

all

the completion of its program of
dieselizing
freight service.
Savings produced by this new form

of motive power have been and will continue to be

a big
company's earnings.
With our diesel pro¬
gram for all operations virtually completed, the peak of
•capital expenditures for modernization and improve¬

factor in the

ments is

now

next few

behind

us

and

capital requirements for the

will be less than in the past.
As a re¬
sult, debt will begin to decline as equipment trust obli-.
gations mature.
years

Present indications point to a reasonably good produc¬
tion

year

for the

nation's

basic prime mover of

industrial economy.

industry's

raw

ished products, the railroads will be

market for their share of
On the Erie,
1953

our

indicates that

the

As

the

materials and fin¬

aggressively in the

available traffic.

our

gross

will

revenues

be

slightly

higher than in 1952.
We start .1953 with a wage rate
higher than the average of 1952 due to the escalator
formula tied to the

cost-of-living index.

With

a

maintenance and repair program that will take
current requirements, our net income should

normal
care

of

compare

favorably with results of the past three

years.

As stated

decreased

of

1953,

be

If

for

be

face
a

transition

a

state of

of

both

business

railroad

are

hampering railroad

to fit modern

regulatory policies which

progress were

competitive conditions.

brought

to the
are

same

entitled

economic factors
to

the

same

as

any

up

to date

Such revised poli¬
any

are

other

subject

other business and

opportunities to operate

on

a

free enterprise business basis without the added* burdens,
of

excessive regulation

or

of

subsidized

competition.

government for

spending

reason

out,

the

mid-1953.

for

defense

peak will

However,

prob¬

it

is

not

government is exercised, this pe¬
riod of transition need be neither
prolonged nor unduly

painful.
There

are

encouraging signs

many

business in the months ahead.

on

the horizon for

For more

than ten years
have built up a tremendous
capacity for production.
This capacity far exceeds our domestic
requirements.
The major issue with which we are faced
in a transi¬
tion is that of
effectively
we

utilizing

tion

is

over

should

and

further

a

above

our

capacity
One

trade between the

encourage

States^ and the rest of the world.
have four-fold

this

needs.

own

for

solu¬

development of foreign trade. We
relax trade barriers and construct

selectively

Such

United

course will
this country's

a

effects:

(1) it will utilize
capacity for production; (2) it will create favor¬
balances in foreign countries;
(3) opening of
American markets to foreign
products and materials

full

able trade

will

conserve

American

resources
which are presently
alarming rate, and (4) such a
realistic approach to the financial
plight of these coun¬

being exhausted
tries will

at

obviate

an

the

for direct

need

grants of

dollars

long been

keenly

and

goods by the American people.
The Illinois Central Railroad has
of

.aware

years

of

,

,

foreign trade possibilities. For a number of
have been carrying on a comprehensive pro¬

we

gram

trade

development between this country and
the republics of Central and South America.
We are
hopeful that these efforts in the development of inter,

American trade will
to

stabilize

Central.

the

play

total

.

,

an

important part in helping

business

volume

of

the

Illinois

,

Ingenuity in the development of new and improved
products by industry combined with
effective sales
promotion

should

for civilian

help

goods in

to

generate

1953.

increased

markets

On the Illinois Central it

plan to intensify promotional efforts

our

In

on

all

is

fronts.

addition to stepping-up our sales
efforts, our indus¬
and agricultural development programs will be

trial

sulted

in

with
on

Railroads

the

are

vigor.

new

locating

industries

In

than

more

Illinois

1952

100

new

these

efforts

dependent
for their

re¬

traffic-producing

Central.

<

the prosperity of in¬
prosperity. They are
the messengers of America's
industry. The greater the
markets for a high level of industrial
production, the
greater the demand for railroad transportation. The
dustry

generally

railroads

business

picture would be much brighter

by

a
war and defense
economy to
If sound judgment in the councils

therefore

have

transportation

entire

to

and

meet

The

during

expected

from

normalcy.

road

if "the outmoded and unrealistic

be

expected that the aggregate volume of business for the
year will be appreciably affected.
Eventually we must

for

still inadequate.

any

after

plans

are

experienced

well

spending

stretched

previously, however, in terms of purchasing power, rail¬
earnings

been
can

military purposes. It is anticipated this factor will lead
to a lessening of The industrial
pace during the latter

prosecuted

preliminary estimate of business for

privately-financed, taxpaying organization,

nation's^iele-.

a

or $4.68 a
non-recurring tax credit of $1,537,746,

A

share for prior years was
the 1951 results.
a

past year

$4.38

or

cies Should recognize that the railroads, like

expendetf/jjlose

new

share,
1951.

cents

Erie of

provinces of

high standards of ^equipment

'During-1952 the

63

the

Company of

thickly populated

The

share in

to

revenues

income

net

a

common

Sweden Id tele-

hundred people, Canada is served by,

«3,000,000 telephones operated by eight major Telephone

.

T*

•

due

world in the annual number of conversations per person,

*

1

has

demand

unabated

bouyant

field, consistent, strong demand for

residential

and

that

less

in dealings with dollar

economy

additional

-

:

business

somewhat

in

sult

in

news¬

lumber and metals - is^Tieavy
and is likely to continue so §§ long

the telephone

-

field

print,

and

are

policies of

>

exporf

the

the United States for Canadian
Frederick

In

revenue

operating

The

activity, employment and
income in Canada will* be
or

lost

Total

year.

these

current

maintained

turn,

of

result

a

conditions,

headed for the

revenue

has
year

the nation's overall defense program

on

to

tariffs which will

housing, and all of them may beexpected to sustain large investment

-

than

common

until mid-1953.

production

In common with other
Western nations, Canada is
actively engaged in defense production. This program:
is expected to continue at a high level throughout 1953.
We also look for further expansion in the utilities, the
resources development industries and

'

last

of

at least

prices will produce the greatest volume of traffic. This
will be especially important in the "selling"
period that
lies ahead when the primary job will be to increase our
gross. Only by a higher volume of traffic and improved
efficiency of operation will the railroads be able to offset

in its history but fell $2,400,000 short of
the previous year's record gross of $178,800,000 because
of the 54-day steel strike in June and
July which resulted

President, The Bell Telephone Company of Canada

per

business

the

continue

railroad

was

$12.51

level

reached

Railroad

with net

more

and n'et income for next year will
favorably with 1952 results. The accelerated

ably

the Erie

of little

revenues

should

1952

for 1951
or

about $16

or

compares

performance, however,
misleading because of the ever-diminishing value of
dollar in terms of what it will
buy.
An analysis of factors
bearing on general business
activity during 1953 indicates that Illinois -Central op¬

purposes

gross

share,

the

part

In

FREDERICK JOHNSON

expected

is

the

to

$23,000,000,

$18,000,000,

expenditures with the faith that the public and the gov¬
will recognize and remove the obstacles of,

the

Operating
is

year

The dollar measure of this

outmoded

ernment

much

the

new

common

r

share.

Railroad had

1952.

Net income estimated for 1952

income

should

order

for
a

nearly

■

a

in

high of $302,000,000,
increase of about $7,000,000 over

an

have

drawing on their working capital and borrowing
through equipment trust financing to modernize their
properties to the best of their ability.
They made these

on

to

business

of

Central

year

reach

-

iby

The railroads have

which

on

levels

compare

were

regulation that stand in the
transportation progress for the public.

Illinois

good

to

safety,

basis

future

revenues

done. Yet the railroads moved ahead

~

reliable

a

The

'

encourage investment on a scale that
is needed to keep pace with the in¬

P.

on

better,

investments

dustrial economy.
The year 1952 was

Railway -Express

-

and
dependability of service to the pub¬
lic. These improvements have been
made during a period when railroad
earnings have not been sufficient to

'

.

"observation,

from

me

rebirth of confidence

a

in my

from

come

the United States.

over

of

public.

producing savings in operating
expenses which have helped to offset
higher costs and at the same time,

3

for business and I

year

only

that

reports

officers all

good

the

railroading.

of

officers

industry

activity.

terminals, better shops

—

railroad

discussing

predict

locomotives, bet- '

Railroad
a

to

been

President, Railway Express Agency
1953 looks like

vides
average

an

since the end

year

in

information, together

which

plans
transportation needs with
shippers throughout the nation, pro¬

Company

spending

services

cars

economical

to

A. L. HAMMELL

a

their

ter tracks and

and

'

*

dollars

They have invested in better

industries of Canada.

In summary,

■

Railroad

improve

Canadian

and base metal

Erie

billion

a

II

dollar, if maintained or con¬
tinued, will benefit the newsprint, pulp, lumber, shingle

.

facts

and future

JOHNSTON

The nation's railroads have been

industries, notably
forest products, base metals and fish, saw a sharp decline in the prices of their products during 1952 as well
as
some
loss of markets, particularly in the sterling
areas.
Nineteen fifty-three will be a year of adjustments in various ways for these basic industries beween
present cost levels and changed market conditions,
The recent strengthening
of the U. S. dollar with

This

quarter.

to the better.

material

raw

business

periods.

learn

PAUL W.

American

of

Through regular meet¬
Advisory Boards, transportation re¬
quirements are determined for each

Canada's future.

second: any change of policy by the new Republican Administration respecting trade between Canada
and the United States.
It is hoped in Canada that any

denominator

excellent position to view

an

ence;,

.

JOHNSTON

common

a

in

are

the

tion are, first: the results of the Commonwealth Confer-

,

attention.

Growth has been no less
satisfying in
"housekeeper" industries which assure the broadbased, essentially sound economy which promises so

im-

no

WAYNE A.

President, Illinois Central Railroad

Expansion and
development in the past 10 years have been outstand¬
ingly rapid, but they have also been well balanced and
firmly based. Spectacular advances, particularly in the
oil, iron and uranium industries, have gained world¬

The downward trend in the cost of
•

1953 call for equally

activity.

Canada's economy is strong and stable.

expected to remain high throughout 1953.
living index during

tures are

130,000 telephones. Plans for

intense

"4

-

the

future

activity

in

a

upon
own

vital

order

interest

to

demands.

be

The

in

in

industry's

position to
general level *of
a

also

dictates the nature and extent
improvements the railroads can
justifiably make to provide that service.
of

replacements

The

Illinois

and

Central

Railroad

tal expenditures

ments

of

in 1952.

is

now

planning capi¬

in 1953 for replacements and improve¬
about. $20,000,000, compared with $23,500,000
From January, 1947, to the close of

1952, the
Illinois Central will have spent about
$152,000,000 for
replacements and improvements in property and equip¬
ment. These expenditures have added more than
16,000
new
freight cars, 54 new passenger cars, 136 diesel
:

*Continued

on

page

34

34

The Commercial and Financial Chronicle

(494)

Continued

from

and in good

duction.

diesel pas¬
fleet, and
up-to-date

switching and transfer locomotives, and 20
locomotives to the Illinois Central
kept the fixed plant of the railroad

senger

inadequate to replace property at today's high cost as
it wears out. This means that the difference not cov-

urgent need for a more realistic
matter of depreciation in order that

this

an

fixed

assets

expected that when the project is completed, the invest¬
ment will be $42,000,000.
This gas storage company is
part of the Natural Gas Pipeline Company of America

money invested in these
returned until the amortization

be

cannot

and

This is discouraging to investors
because obsolescence, a danger which such rates do not
consider, might occur before the investment has been
fully amortized.
Therefore, from the standpoint of fairness, as well as
protection of incentive, no limitations whatever should
be imposed by the Federal Government on rates of amor¬
tization. Because of the great uncertainty with regard

adequate

Legislation affording relief from the present high lev¬
els of taxes would be a real stimulant to business. Fewer
dollars for taxes will mean more dollars available for

to

is

spending

all lines of business.

in

obsolescence

of

all

management is in

accomplishments on the Illinois

the greatest

of

One

risks it

during 1952 has been the consummation
-of the plan to simplify the financial structure of the
company.
A significant step in this program was the
creation of a consolidated mortgage in 1949. This mort¬
its

solidate

a

of $13,000,000

sale

investment

of Consolidated Mortgage

who invest

company,

to place all mortgage debt under a single mort¬
That will leave $35,000,000 of debentures due in

the way
gage.

taken

be

to

1966

of other

care

Consolidated

the

than

Since 1939 the Illinois Central has reduced
funded debt, exclusive of equipment obligations, from

Mortgage.

tax

railroads

are

not

total

the

in

merely

One

show

necessitates

policies, refiners

risk,

under

and

the

revision

give

serious

there
prove

are

depend

The

Such competition does

The

is

freedom

more

to

price

which will reflect costs

Another
do with

situation

the

on a

with

enormous

railroad

service at

H.

The canned

which

amounts

we

of

must

public

deal

has

with airlines

are

airports

provided

with

way

money.

about

a

The

creased

much

increasing attention of the oil

in

the

four

1952-1955

years

is

41,-

or an

1920s

and .'30s,

coal used.

market for

coal continues to shrink.

In

methods and processes
and

improve

indicate

that

which

product
the

oil

Although much

of

this

but

industry

refinery
Preliminary
will spend a

enlarged capacity, perhaps

investment

new

even

invested in modern processes to

proving quality.

A significant

a

will

larger share will be

reduce costs while im-

development in this di-

:rection is the trend toward modernization of the
smaller,,
refiners. For
example, the catalytic cracking of smaller
refiners will be increased more
than fourfold if the re¬

finery construction

program approved by the Petroleum
Administration for Defense is realized. This would in-

crease the small refiner's share of total
catalytic cracking capacity from 1.86 to 6.54.
The tax policies of the new
Administration will




,

.

of

the

At this rate, there will not be

railroad

coal

market

the railroads

are

a

in

a

few

years.

good percentage

not selling any today

nevertheless operating at near capacity.
They
replaced the railroad business with utility and in¬

are

have

dustrial customers.
The

for

go

left

of their output to

increase

quality.

Last year, demand from the railroads de¬

14,000,000 tons.

Many coal mines which formerly sold

indus¬

minimum of $4 billion on
capital investment in 1953.

<

total

railroad

tons for 1952.

.

Increased competition is due in 1953.
Leveling off of
demand will focus

t

the

in tons of

C. G. KIRKBRIDE

„

The

1944, the railroads consumed 136,000,000 tons of coal. It
is estimated that this figure will be around 40,000,000

President, Houdry Process Corporation

.

of

1952 to 18,500,000 tons in 1956.
the electric industry was
growing rapidly but at that time it was growing on a
small base, whereas now an increase percentagewise in
the use of electricity amounts to a tremendous increase

the nation.

.

total

generat¬

3,000,000 tons in

in

Back

and enable the railroads to meet, on
basis, the competition of these other agencies. The
end result of applying these very
practical policies will
produce better and more economical transportation for

estimates

a

new

000,000 or 40,000,000 tons more than this in 1956. The use
by the TVA alone is expected to increase from

of transportation

on

for

call

of coal

fair

efficiency

plans

increase of about 55% over the
Dec. 31, 1951 figure. In 1951, the electrical utilities con¬
sumed about 105,681,951 tons of coal and with this big
increase in generating capacity, they might consume 30,-

transportation policy
among the various forms

try

1955.

113,000 kilowatts,

the railroads do.

These things form the basis for
which will eliminate inequities

kilowatts, an in¬
6,000,000 kilowatts in one

of

ing capacity in 1953, 11,494,000 kilo¬
watts in 1954 and 8,800,000 kilowatts
in

of

same

is expected to be

capacity

Present

that trucks, barges, planes and all other
transportation should stand on their own
feet and pay all of the costs incident to
conducting their
business, including a fair share of community taxes, in
the

1952,

81,000,000

12,910,000 kilowatts of

Frank F. Kolbe

believe

agencies

of October,

year.

competing

public

least

crease

directly subsidized by the government and

•operating from
We

We

75,444,276 kilo¬

by the end

installed

peting with trucks and busses which operate over public
highways built with taxes paid by the railroads and
■each of us individually.
We are competing with barge
transportation operating on waterways maintained and
purse.

was

.

for

coal

during .the current

year

to

demand

take

care

of its

own

for
as

export

will be

Europe is

now

much

less

largely able

needs.

In the decade 1940-1950, the use of oil and gas almost
doubled, but nevertheless the use of coal also increased.
Oil and gas will continue to increase but coal should
continue to get a large share of the business. The report
of the Presidents Materials Policy Commission released
in June, 1952, estimates that by 1975 the demand for

coal

will

have

increased

to

815,000,000

tons,

a

56%

increase

with large increases also in oil and gas.
The
impact of oil and gas differs in different parts of the

country.

In New York, for instance, where coal sells at

industry at

a

high level.
In

industry

there is ample
capacity to meet the demand of our
present
population.
However,
the
supply each year is contingent upon
packers' plans and contracts with

.,

our

made three to six months in

also

weather

generating capacity at

1951

kilowatts and by the end of 1952 the

traffic to the agency of transportation best equipped to
do an efficient and truly economical job. We are com¬

sustaining force to main¬

a

largely

increased to almost 80,000,000

at

as

tain the volume of the

of

it had

to subsidize competitors of the railroads. A situa¬
tion of this sort does not produce economical transpor¬
tation for the nation nor does it permit the free flow of

food

industry is today in the
as supply as related to
concerned, that it has been in for the past
several years, and the basic increase in the economy and

generation.

watts;

to

used

improved out of the public

frozen

is

installed

re¬

position, insofar

advance

electric

cost

new

is

growers

the end of

being

money

and

best balanced

continues to in¬

to

The

F. KRIMENDAHL *

largest increases

due

lwo cost.

very

President, Stokely-Van Camp, Inc.

energy

that

The

levels

current basis.

a

One of the

crease.

Also in this matter of regulation the railroads

coal at

,

in the decade 1940-1950.

of

use

irreplace¬

an

population of the United States will

of oil

use

for

these developments and other

in competition with coal in¬

creased 59%

The

'

need

upon

Companies

of coal and the

use

use

an
auger but which can mine 1,000 feet
ability of the coal industry to compete will

coming year are the demand for energy,
demand and supply of competing fuels, and the progressiveness of the industry.

monopoly-type regulations under which railroads must
operate.

as

The

for coal in the

and gas

bad

Chemicals Co. has developed a con¬
with electronic controls which does the

important factors that will determine the outlook

deserve the

not

Coal

very

feet of

serve

One of the greatest prob¬
wrestle on the railroads is that of

unrealistic

transportation.

Electric

a

ducing methods.

FRANK F. KOLBE
President, The United

policy of regulation. Railroads today are
regulated as though they were a monopoly. The rail¬
roads hold no monopoly in transportation today.
Not
«mly are the individual railroads competing among them¬
selves for traffic, but both individually and collectively
railroads are competing with highway, water and air
an

work

demand

the railroad situation.

lems with which wet

200

of

naturally

sales

lesser

large buildings for

developments in coal technique this past

100 to

or more.

existing amortization rules.
If this hope is realized, there will be no recession in
1953—any slack in defense could then be taken up by
private investment.

by all industry,
certain other factors which can tend to im-

the

tinuous miner
same

related to the amount of business done

,

of

the

to

in

result

and

Carbide & Carbon

present

consideration

use

has been

recover

are

will

Administration

will

and

the increased use of
augers to mine out
coal, the face of which has been exposed by strip min¬
ing but which is too deep or under too much rock to be
economically mined by stripping.
These augers can

tools of production

new

fitted,

purposes.

only bad business but

year

paid.

taxes

especially

able natural resource. It is a waste of natural
gas to burn
it under boilers where coal is available.

naturally hesitant to risk capital
in new tools of production unless the investment risk is
reduced to a minimum by amortization of the investment
as soon as possible.
Therefore, it is hoped that the new

than

While the future prospects for

affect

not

would

would

Investment

$332,000,000 to approximately $151,000,000.
This vast improvement in our financial position will
insure the Illinois Central's ability to withstand the upsand-downs of business cycles.
more

to appraise the

consideration to those
by letting them
get their money back, and then tax the true profits—
no
tool of production can return a true profit until the
tool has paid for itself.
it

Instead,

Bonds in

June, 1952, and the commitment for a further sale of
$12,000,000 of these bonds in 1954 at the option of the

enabled the Illinois Central to provide for
maturities through 1955. This action, together with the
sale of $62,000,000 of Consolidated bonds in August, 1952,
to retire the joint refunding bonds of 1963, has cleared

amortized

are

The

single mortgage.

a

industries for industrial

This is below the cost of new
purchases of gas
in Texas plus transportation
charges to Chicago. To use
natural gas for replacing coal under such conditions is

the rate at which investments in tools of production

on

Company,

Peoples Gas Light
This storage program

of coal.

its

of

Pipeline

The gas companies have been selling
gas at dump rates ranging from 11 to 18 cents
per thou¬
sand cubic feet which is $4 or less for an
equivalent ton

corporate funds, management should
have the freedom of setting the rates of amortization.
Elimination from our tax structure of all limitations

Illinois Central to con¬

means for the
bonded debt under

provided

gage

far better position

a

is

heating

taking; and since each is responsible for the

is

Gas

Company of Chicago.

to

management should have the freedom of establishing the
its investment should be amortized. Each

Central Railroad

Natural

subsidiaries of the

are

it

research, each

industrial

on

Texas-Illinois

Coke

will make it possible for the
gas companies to sell more
gas to the householders for domestic use, for which use

dynamic economy which currently

a

billion

$1.18

the

of which

and

rate at which

expansion, replacements and improvements. This type
spending will help to maintain high levels of produc¬
tive employment and a high level of activity in virtually

pipelines.

ground storage system at Kankakee to take "off-peakgas" and store it for the winter demand.
It is

is completed.

period

approach

the

use

load

that the

This means

rates.)

a

In Illinois, the Natural Gas
Storage Company of Illi¬
nois is spending $17,000,000 on the first unit of an under¬

amortization rate for manufacturing corpora¬
3.7%, or an amortization period of 27 years.
(These percentages appear to be determined lor amorti¬
zation rates on what actually are reasonable depreciation

they become obsolete

equipment and other property as
or no longer serviceable.

to

tions alone is

be obtained from operations to replace tools,

funds may

,

weighted average of the amortization rates

average

by depreciation must be made up out of net income.
At the present level of taxation, for every dollar of capi¬
tal expenditures, including those for property replace¬
ments in excess of depreciation charges, the railroad
must earn more than two dollars in income before taxes.
•ered

to

,

$4.50 transportation cost,

a

total delivered price of $9/ fuel oil is a serious
factor, but in Chicago where coal delivered sells for $5
a ton, fuel oil
cannot compete. Natural gas has had a

permitted by the government on fixed assets of American
corporations is less than 3% a year, which corresponds
to an amortization period of more than 33 years.
The

Property replacement has been a subject of increasing
in railroad circles. Depreciation allowances are

is

making

-

■

concern

There

serious disruptive effect on the coal
industry as large
quantities of it have been dumped at any price in order

'

The overall

condition.

Thursday, January 29, 1053

.

the mine for $4.50 and bears

tion programs

have

.

strongly influence the scope and timing of moderniza¬
planned by the oil industry. Present limi¬
tations on rates of amortization probably constitute the
greatest deterrent to investment in new tools of pro¬

33

page

.

the

packing

conditions

at

and

season,

contingent

upon

time

the

of

Therefore, in any individual
year supply can easily get out of bal¬
ance
with demand on particular
H. F. Krimendani
items.
Today there are individual
items that are out of balance just as
there are every year; however, overall, the supply situa¬
tion, including carryover, is somewhat lower than in the
previous year. Actually the Department of Agriculture
has estimated that the total 1952-53 pack of canned fruits
will be approximately 10% below last year, and that of
all canned vegetables 15% below last year.
pack.

.

Contributing to the sustained demand for canned foods
is the fact that
canned

and

on

a

capita basis the consumption of

per

vegetables is 38%

greater than it

was in 1939,
greater. Undoubtedly the
canned foods has served to im¬

canned fruits it is 32%

on

relatively low price

on

Mrs. Housewife that she can help combat inflation
by increasing her purchases of these items. The U. S.
Department of Labor Index of Retail Prices shows that

press

since the

1935-39

period all foods except canned fruits

and vegetables have gone up to slightly over 230, where¬
as canned fruits and vegetables have remained well be¬

low 170,

Raw

materials,

cans, labor, and the cost of all
gone up substantially since the 1935-39
period, and the relatively low price which the canned
food industry has been able to maintain has come about
through increased efficiency resulting from better pro¬
duction techniques and increased volume.
It appears during the coming year that the demands

materials have

of the armed forces for canned foods will be
less than they were this year. However, the

somewhat

Army Pro¬

curement

Program has been coordinated

with

industry

so that industry has been able to
plan its production for
the Army and at the same time take care of civilian con¬

sumption without

severe dislocations in supply.
healthy market such as we should have during
1953, there will be intense competition for the house¬

In

a

wife's

dollar.

planned

and

Industry

merchandising

must

be

on

a

scientific

basis, including proper displays
and aggressive promotion at the consumer level. The
fact
that a large part of distribution
today is from self-service
chain stores and supermarket operations makes this

em¬

phasis

<

I

on

do

merchandising all the

not

feel

coming

that

the

more

market

important.

situation

.

during

.

•

the

year will be such that profits will be guaranteed
to all producers regardless of their
efficiency. However,
those companies with efficient plants and alert
manage¬
ments should be able to capitalize on a
normal com¬
petitive market with a - background of sustained and

rising demand.

Number 5190

Volume 177

.

Chronicle

The Commercial and Financial

.

.

(495)
s. e. lauer

emphasis is somewhat in the opposite direction—com¬
petition from Germany and Japan in the camera and
optical field is becoming an increasingly important fac¬
tor. Their wage levels are so much lower than
ours that
they are able to compete in this country in spite of the

President, York Corporation
*

•

We are a pretty hardheaded group here at the York
Corporation, but after a careful national survey and a
partial international survey this organization feels it
will make 1953 a better year than 1952. Whether this
means
am

increase of 10%

an

or

bit

too

'

some

be

to

seem

scrapping

obsolete
has

business

any

real

particularly

ties,

great

need

for

capacity. <T h e
possibili¬

also

we

for year 'round air condi¬
tioning. Admittedly this particular
development is still in its infancy,

dential

air

in

conditioning to make

it

means

that while this business will not be well stand¬

their

ardized and

simplified for the next year or two, it seems
add substantially to the dollar volume in
the air conditioning field during the next five
years.
destined

Another

,

of

segment

the

business

showing

amazing growth is in the field of what
Air"

conditioning

This

refers

in

annual

our

principally to

both

we

and

private

lated

report.

The

old

We

are

diction

selling.

scrap

policies of

copper

It is

the

1953

is

not

attainable

If

We

are

R.

Lovell

re¬

forms

of

to

in¬

support.

The

On the assumption that controls
will be removed, the
outlook for the
copper and brass industry in 1953 is good,

our

share

some

appears somewhat doubtful.

will

total

available business.

*

.

We plan to about double our capital
expenditures for
1953 production compared with 1952.
That should be
followed by a heavier expansion
program in 1954.
A careful review of our
backlog of unfilled orders

may

increase

and

of the year

It is certain that competition

intensive

selling efforts

will

be

the

order of the day.

sign but in the close control of quality production, if air
conditioning and refrigeration is to have its rightful
share of the

copper

According to the economists, the second half

creasingly particular about not only what is pays for a
product or a system, but for the quality it gets. This
means
steady inmprovement, not only in product de¬

and their
out in

effect

royce g.

President, Argils Cameras, Inc.*
We

in

optimistic about the business outlook for 1953.
emphasis has been placed on the importance of

are

Much

defense
direct

expenditures with particular emphasis
expenditure for the Korean situation. It

on

is

number,

now

but

motorists

This

fact

points

to

good

a

With

spark

It

necessarily follow that it
will diminish in rapid fashion or dis¬
appear completely.

could

not

that there is
our

It is

opinion
healthy undertone in
brought about by the

anticipation of

Of

a

The

quality

of

men

of

tion.

:.

We

see

no

immediate change in

and

electrical

automotive

looks

system

forward

parts,
what

to

be our best year.

in allied

industries, the easing
controls

and

the

spiraling inflation that has
slowly but surely destroying

Martin

•

We

to

meet

to

customer

forced

are

to

'

expand

demands,

but

our

production

our

at

the

time,

same

slowly because of strict

proceed

plans

facilities
we

govern¬

this picture during the early part of 1953.

mental

striving to increase our
peacetime business, we also keep ourselves continually
alert to the demands that defense production necessitates.
Production keyed to our defense needs is first and

Even though
product has been active, we have, never¬
theless, pursued an aggressive advertising and sales pro¬
motion program looking forward to the day when it will
be necessary to put added effort into our
selling. In this
.same

vein, we have also improved our sales force and
actively engaged in training young men to bolster
strength for the time when the buyers' market hits

are
our

us.
New products, and continued improvement of our
present products, have been important considerations in
our future planning. '
•
•

Although
we

are

we are optimistic about our basic economy,
conscious of the fact that there may be some nec¬

adjustments resulting in price decreases. Our new
product plans take this into consideration and we recog¬
essary

nize

that

we

must

be

prepared

to meet

a

highly

com¬

petitive market.
We have made substantial additions to

inefficient machinery and equipment to

our

plant dur¬

lower

our

pro¬

duction costs.

The

outlook

poor,

foremost
our

for

at

Auto-Lite,

and

will

remain

so

as

long

as

free enterprise system is under attack.

our

merchandise in

both from the




meet

Though we at Auto-Lite are ready for a good 1953 on
production basis, we also are devoting considerable
and money to further our already good relations
with our employees, our customers and the communities
in which we operate-plants.

restricted return

or

.

Now underway

is a program designed to further ac¬
family of employees with the importance of

their role in the automotive industry.

We

are conducting private automobile shows in all of
plants. 26 in number in 19 cities from coast-to-coast,
in order that each member of our production family can

learn

first
of

some

hand

the

of

the job

nation's

finest

he

or

she is doing

automobiles

may

that

so

roll from

production lines.
These automobile shows will be conducted

was

through the month of March.
inaugurated

on

the

"Easter

Grand

Parade

Ballroom

of

on

a

local

The second series

Jan. 13.
of

the

Stars"

Automobile

Waldorf-Astoria

will present
Show

Hotel

costs

Marginal mines

based

that

rise

even

inflation

ad¬

improvements the times

forced

are

as

in the best mines

to

close, and mines-

the better deposits not only suffer severe loss
income but have their supply of ore

of

on

drastically re¬
duced by the rising cut-off that marks the end of
profits.
In the United States

mine that

today, the Homestake is the only
the major gold pro¬

still be listed among

can

gravels

in

Gold continues to be

California

and

Alaska

won

in

district, but elsewhere the few gold mines that
operating are struggling to break even.,
Canada, the situation is not quite so bleak, for the
major mines are younger and more of them are profit¬
still

In

able. But, in spite of the vast area still worth intensive
prospecting, new discoveries have fallen off and explora¬
tion is at the lowest ebb

in

in

the

New

in years as a result of the

favorable

situation imposed on the
beyond its control.
Under these

conditions,

a

un¬

industry by policies

most serious and dangerous

decline in the world's output of gold would be
expected
in the years
immediately

ahead, except for two develop¬

ments that tend

These

to offset

to some degree the bad effect
extremely unfavorable political-economic climate.

the

are

new

production from the

westward
expan-;
gold-bearing deposits of the Witwatersrand
in the Transvaal, the
relatively recent discoveries of gold
in the Orange Free State and the new mines now
coming

sion

of

into

production

the

uranium
new

was

lease
ore

on

becoming marginal

was

concerned.

Africa
of

there, and the profitable recovery of",
the gold-bearing reefs that has given a
life to a number of old mines of the Rand,

from

ore

as

far

as

gold content

These favorable

developments in Soutti
are to be attributed to the
finding of new supplies
to offset the depletion of the older reefs and to
the

technical skill with which the terrain has been
explored
and the deposits exploited.. The financial
boldness with
which vast sums of money have been raised
and ex¬
pended in these new enterprises also must be
as

a

recognized
major factor in providing these timely increments
gold supply. The cost of this great expan¬

to the world's

sion in South Africa will be well

over

$500,000,000; and.

the expenditure of this huge
sum—large even by Ameri¬
New Deal standards—is most
reassuring as an indi¬

can

of the faith

in gold that is held
by hard-headed
intelligent adventurers.
It would, however, be most unrealistic to think
that
and

comparable opportunities

for

development of gold

ores

exist in the United States

or even
in Canada; but what
chances this country has are not likely to be
energetically
exploited under existing conditions that

courage
ties

by

retained

seriously dis¬
prospecting and the development of new proper¬
drastically limiting the reward that could be
even

if

a

bonanza

were

found

by such efforts.
unique in that
product derives its value primarily from the wide
acceptance of gold as the basic monetary material. Gold
as a commodity has inherent worth for its
beauty and its'
industrial uses; but its great and undeniable hold on the
The gold

mining industry is, of

course,

its

imaginations of

Following the local showings Auto-Lite

and

with the best technical

even

afford.

cation

our

McLaughlin

time that he must

same

profits necessarily decline

vances,

men

quaint

H.

operating costs that unavoidably rise as the token
depreciates. Pinched in this way between a fixed

a

..

D.

money

time

basis

the export field
point of view of the relatively
high cost of labor in this country and the lack of dollars
in our normal
export markets. As a matter of fact the
is

regulations.
Though we are constantly

our

ing the past two years, but at present have no plans for
further expansion. We intend to concentrate on
improve¬
ment of our facilities and the
replacement of relatively

for his product at the

currency

whose

continuing with

are

demand for

our

Under present conditions

world, and particularly in the
States/gold miners are in difficulties, arising pri¬
marily from restrictions on ownership and disposal of
gold that force the miner to accept unredeemable paper-

of the

economic system.

our

G.

Royce

to
7 Robert E. Lewis

the

a complete line of
batteries,
plugs, wire, cable, ignition

governmental

been

running at a
have been unable

completely fill our demands even
though we have increased produc-

in

end of the

Our business has been
we

cars

course,

ances

ap¬

pointed to the Cabinet has given con¬
siderable-strength to this viewpoint.

high rate and

older

all of our plans are
hinged upon the availability of raw
materials, the lack of labor disturb¬

sound program to be
followed by the Eisenhower Admin¬

istration.

for

year

Auto-Lite

our

a

economy

keeping

are

system

does

only increasing

maker, of which The
Electric Auto-Lite Company is the
largest independent in the field.

the
now

taper off from the peak.

not

are

electrical parts

knowledge
that
military
production is being stretched-out and
soon

supply.

in the

United

are

the road

on

operation.

common

will

and thus set cut-offs that delimit the

in that old

lewis
Automobiles

supply—is,

profitably
three large
dredging operations, and the new Golden Cycle mill in
Cripple Creek has kept scattered small operations alive

Company

e.

ore

primary

have gold deposits, how¬
the other two factors and par¬
ticularly the third determine the
grades of ore that will yield a profit

from

martin

Chairman of the Board and President
The Electric Auto-Lite

robert

the

ducers of the world.

1953 forecasts.

on our

first—the

ever,

and

Competition from aluminum will continue. It is note¬
worthy that several alert brass mill managements have
begun to fabricate aluminum.
Others plan to do so.
However, the continuing increase in population and the
development of new uses for copper should
require ever
larger tonnages of the red metal.

delivery timing indicates that another stretch¬
defense spending should not have
any appreciable

own

those that

ore

personnel, training and
public is becoming in¬

That calls for

its

Each factor

gold mining
way,
and each
a

of
consideration.
country without deposits of gold
has a gold mining
industry. In

No
ore

impossible at this time

rise, tempo¬
rarily, to around 30 cents per pound. As production from
new
mines, now being developed, reaches the
market, the
price, no doubt, will decline again.

going to have to really earn

in expense for additional

in

course,
Endicott

new

decontrolled, the price of

.

recovered, and (3)
political-economic policies, both

The

principles.

the above pre¬
without unusual and

enlightened cooperation
peace and a prosperous

* V

" ''

,

President, Homestake Mining Company

venture

copper.
was

*

V

.

of

inflences the other.

benefit in the long run
through the return to sound trade

of the potential that lies ahead.

other

of

trickle.

a

new

com¬

signify the end of regimented

era

gold he must dispose of.

predict
Administration relating to the
copper and brass industry. If controls are
removed, as
we all
hope, the industry and the defense effort should
the

extended effort in the fields of sales
promotion and hard

crease

production of

flow

duced to

office

also conscious- of the fact that

for

the

.

The state of the gold
industry in any country is deter¬

These

copper.

'

an

striving for

affects the outcome of

policies retarded rather than stimu¬

termed "Big

of business.
-

the form of domestic

foreign

which
.

domestic and external, that determine
the return to the producer for the

in foreign copper.
they were permitted to
through only 80% of the in¬

pass

those

donald h. Mclaughlin

the

40%

creased cost of

and new multiple
buildings, hospitals,
hotels and apartments. The York
organization, both at
the factory and in the field, is
thoroughly skilled in
both the presale engineering and execution of this class

public

space

in

and

include

mined by three factors: (1) the available
supply of are
and its
nature; (2) the technical methods that are appli¬
cable and the skills with which the
deposits are mined!
and the metal'

However,

almost

stockholders

needs

copper

to

open

persons

populace.

s

mestic price of copper at 24
% cents,
encouraged the importation of for¬
eign copper at 36V2 cents per pound.
Fabricators were allocated 60% of

s. E. Lauer

good and to put it within the reach of most pocketbooks.
It

among all

/,

Furthermore, the United States
Government, while holding the do¬

resi-

and

economy

handicapped

costs.

lot of money, time and talent

a

being spent for research

will

.

The year 1953 could well

ment controls

systems

but

were

by govern¬
covering allocations of
copper supplies, and by price ceil¬
ings, which failed to offset increased

enter into
the residential field with integrated

is

in

wages, freight and supply costs, the price
has been held at 24% cents
per pound since the autumn
of 1950., Copper and brass fabricators

growth
as

show

petitive normalcy.
•

During 1952 the domestic copper mining industry was
subjected to unfair price controls. In spite of substantial

T\

this

original equipment
thus
providing an additional selling tool to our original equip¬
ment customers, their dealers and
distributors.
Though we feel 1953 is dawning on a basis which we
hope proves to be significant, we at Auto-Lite also feel

-

increases

in

Auto-Lite products as

that 1953 is the year that business must return
to

President, Calumet & Hecla, Inc.

try is not overbuilt and there does y
rrot

Automobiles
use

endicott r. lovell

supporting factors y
for this kind of thinking which are
f|
not related directly to the general
Uj
economy. To begin with, this indus¬
are

This show will be open to the general public
April 4 to 9, and will be televised
nationally the
night of April 7.

a

early.

There

•

York City.

from

import duty. We feel that the answer to this problem is
greater efficiency on our part and increased aggressive¬
ness in our
selling program.

20%, I

notj in a position to say. It is

35

gives it

an

men

as

an

accepted

enhanced value that is

no

symbol

of wealth

less real because

Continued

on

page

36

36

The Commercial and Financial Chronicle

(496)

Continued
it is based

hold

page

that the gold standard is a

35

enduring traditions and on its psychological
the imaginations of all peoples.

on

The

from

on

welfare

the

of

gold mining industry, at least in
future, will be determined to a very
large extent by monetary policies of the free world and
particularly by those of the United States. Under the

the

relatively

near

present restrictions

imposed by the American Gov¬

now

ernment, the domestic gold miner is in a particularly
position, for he is denied the protection against
inflation that his gold would ordinarily give him at a
time when he must meet his rising costs in depreciating

difficult

dollars.

Fortunately, the steps needed to correct this situation
•are the very ones that would be most beneficial to the
country itself, viz., the restoration of the gold standard
with gold and the dollar freely convertible at a fixed
rate.
The stabilization of money, to check inflation
and to lessen the danger of drastic inflation, is surely
one of the most urgent needs of the times.
The domestic
gold mining industry in relation to the problem is too
small to be of much influence; but the vast stock of
monetary gold is of utmost importance, for it affords
the power to establish monetary practices that will aid
rather than hinder multilateral trade and that will

cor¬

rect the chaotic exchange controls and other restrictions
that

plague the world.

now

The

the promises to

pay,

responsible men"
have made

are

the best efforts of "competent and
apt to be futile. So many, however,

effective

an

that

standard

be

to

the

for

case

their

restoration

of

arguments

here, except to urge
step is taken, the relation of gold to the

currencies will be
will promote

Wide

that

one

the

hardly need
that when such a

good

repeated

needed

be maintained

can

paper

that

and

stability..

Since

stored.
common

World
of

measure

obscured

War

the

I

the

function

value of

of

gold

currencies

as

has

a

been

artificial restrictions of one sort or an¬
other.
Yet, if gold possesses tne properties mat a
monetary metal should have, its value will have per¬
sisted
through this troubled period without drastic
change when measured in terms of goods and services.
by

This actually is the case, and the problem to be faced
in restoration of the gold standard is to
adjust the paper
currencies of the time to this persistent and stable value

gold,

and not attempt to

adjust gold to

dollar and other depreciated

gold

value

of

the

1914

currencies.

franc

cannot

the

paper

Obviously, the
be

regained

by

honoring the vast claims that would be created if the
franc of today were made redeemable at the 1914 rate.
To a lesser'degree, the same can be said of both the
pound sterling and the dollar. No one urges that the

foreign central banks necessarily the right one?
Econ¬
omists and bankers of standing can be found who
argue
that it is; and others who deny it.
One group asserts
that an increase in price would lead to
dangerous in¬
flation.
Other equally good authorities consider that
restoration of the gold standard with
gold at the current
official price would be
seriously deflationary and would
be a repetition of the mistake made
by England in 1925

attempting

of

of industry

currencies

that

inevitably

under

to -maintain

the

old

ratio

between

the

re¬

emergency

1951.

by

ounces

If

it

1952

billion

one

that

assumed

under

erating

of

had

ounces,

to

rate.

It

is

attained

certainty

a

under

that

this

output

conditions.

current

would

other considerations

convertible.

Whatever reasoning

motive

ratio

at

which the

gold

is

that

the

dollar should be valued

which

be

could

fixed

with

in

will be

made in 1953, which will bring,
ultimately, the
possible transportation at the lowest possible cost.
The railroad plant is being expanded to
fully meet the

best

in

needs of

industry and agriculture...
•
'
The attitude of everyone concerned with transportation
to have become more favorable toward the rail-;

best

roads,

sympathetic and understanding, and more
see that we get a square deal with our i
competitors at the hands of our government. This heart- '<■
ening and healthy atmosphere will prove helpful during :
1953.
V'"
'
'
.:

of

hope

of

prices.

'

'

-

.«!,

.

.

V

•

/►

,

J.

,

•

,r \'

'

Indications

;

in

GEORGE L. MORRISON

baking industry's position in the coming

as secure as

it.

General

will

year

forward-looking progressive bakers make

Baking's gross sales had increased by

$4 million during the first three-quarters
portion of this increase was author¬

some

1952.

of

ture.

and

by O.P.S. to compensate for
higher costs, and the balance repre¬
sents increased unit sales.

A

gold miner of

many

course

is

to

open

charge of self-

interest when he urges that the dollar be
revalued with

gold at

higher price.

a

As

matter

a

of

fact, either of

the extremes predicted
by theorists would

If

restoration

at

$35

per

ounce

expected deflation, he would

do

should

benefit him.

result

in

the

well, for gold mining

thrives in depressions.

If the price of gold is
excessively
he would benefit temporarily but in the end

increased,
would be

damaged

as

his costs reflected the full effects

of the inflation that could

logically be expected.

quently, the gold producers

should

endeavoring to promote their
the

own

Conse¬

curtailment

of

defense

cuts

in

defense

by

we were

-As I

see

increasing

concealed
the

vast

To

date,

would have

have

has

been

foreign governments and agencies have been the
most
potent. The adjustment of the dollar to
gold; when
convertibility is restored, must take this actual situation
a

stable

relationship is to be established.

If gold is the

monetary base, the dollar and other cur¬
rencies as they exist
today should be adjusted to it.
Otherwise, what is actually attempted is a. devaluation
of gold, if the price in dollars
is placed too low. If this
could: be
if would

itself

as a

accomplished- without

serious

repercussions,

properly raise doubts about the value

of gold
monetary basis, and lend weight to. the
argu-.

ments of the extremists of the
managed currency school




If

a

definite absence of mois¬

comes from light rains
in recent weeks, the
prospects are not favor¬
1953 farm production equal to 1952. Then,

living by

same

level,

business

a

George

in

an

atmosphere of

ity products, will rely on

even

1953

WILLIAM L. NOLAN
a

prosper¬

Chairman of the Board, McLellan Stores

consumer

In

top-qual¬

dictated

and by

and

new

by

economiq^considerations

no

be

near

in

\

that I feel that

it

new

and

.

of

our

affairs.

We

predict permanent
brought about

States

future.

possible; to

u
a

.

away

with

pleasure of eating three square meals,

the
a

,

and

;

to

to

meet,

enjoy

un¬

but

the

of

permanent factors which have cre¬
ated and,; will: continue to create a

expanding demand for both

goods and services.
.

Among .those

are

a

broad

'

'

permanent,

distribution

of

?

-

factors>

a mass

income

market for-

w

growing population

1

•

L

Nolan

*'*..

providing

a

con¬

tinuous, expanding demand-for the kind of
goods which
this company offers in 29 states.
<v'
^
;
:

:C<^petitioh

derfully satisfied feeling and solid nourishment offered-, r^ovpro^ess.
by bread, meat, eggs and vegetables.

able

are

time

employment,

gdod^-T-a rapidly

sure

won¬

same

which has created

that the American people, properly
supplied, will never

accept synthetic forms of food and; energy for the

the

*'

and'

day but I'm

at

solid and
„

.

may

necessity

We

our.presentprosperity is derived from the more"

,

lot about experiments, which

do

-

-

services.

fundamental, basis

plant construc¬

developments in

prosperity

expanding demand for goods

an

duction

us

..

any,

period of increasing

,It is understandably true that the
defense program has increased pro¬

-

new

a

precedented prosperity.

production machinery should

anticipation of

We read and hear
make

and

specific knowledge of how far and'

the purchase of

suspended

the

mean

entering

we are

the demands of the defense program,

accurate plans.for future expansion,

frontiers.

This does not
or

by,

expansion.; policies will

how quickly our technological research will advance

tion

duct

heavy increase iir business during

qualified

be made without

toward

opinion

business, but there is no need for pessimism
provided the utmost efficiency is exercised in the con¬

technical progress within the baking industry.

It's obvious that
can

our

risk in retail

greater efficiency of op¬

that long-range

Company

General Baking,

peace.

for the United

and think

feeling, however, is that the rail¬
satisfactory traffic volume during
3% off from 1952.

a

or

-

I do not expect any

higher, depending,

L. Morrison

new ways can and will be found
to further improve our services and maintain

economy

somewhat

Our

enjoy

1953—possibly 2

defense spending.
At General Baking we're confident

continuing its policy of offering the

possibly

trend.

roads should

that

ous

Farm inventories, however, are up con¬

the national Administration and other
happenings make it most difficult to forecast the 1953

5%,

even

as

The change in

buffer of about $10
billion with which to offset cuts in

we

be

by various temporary devices,
among which
loans, gifts and handouts of various sort to

into account if

markets.

volume.

dollar

was

encouragement

„

at

of the

a

some

of course, on the international situation.

interest

its full effects

snow

the

able to increase the Ameri¬

standard of

can

business

narrow

it, substantial devaluation

already occurred.

spending,

eration and aggressive selling methods to maintain
high

nation.

levels,

siderably which will be helpful to 1953 rail traffic.
defense expenditures are expected to continue at about

Instead of worrying about

of

entire

reflected?

1952

their.-products.

is

<r

grounds of greatest good for the

as

at

there

expense

from time

continue

The baking industry need not be
unduly concerned in the event that

accused

of the country, for the action that
they have
to time advocated can be
defended on the

While

able to

be

not

conditions

will

too,
the Burlington may suffer a slight
decrease in their traffic if lower price level of certain
farm products continues being paid to the farmers for

volume
a

business

volume

granger roads such

,,

should take immediate steps to build

which

traffic

start last fall and there

A

ized

ties.

gold,

•

that

are

decline

President,
General Baking Company.

The

railroad

during the first half of 1953 with a possibility of some
during the second half. Changes in the inter¬
national situation will, of
course, affect railroad volume.
While railroad
traffic
in
durable
goods may carry
through the year in satisfactory volume, the weakening
(in the West at least) is expected to come from lower
than normal farm crops. Winter wheat
got a rather poor

Chairman of the Board and

be

more

determined to

and without drastic disturbance of existing

permanence

.

seems

proper

terms

building program. Continuing capital expendi- •
improvements in all parts of the railroad plant,

tures for

is employed,

however, the premise should be clear that

The results of this improvement

in

determining the ideal price at which the dollar should
be made

on

The railroads, including the
Burlington, will continue
the coming year to emphasize their need for vital
materials required to carry on their freight car and loco¬

be

involved

property investment at the
4%.-compared with a rate ofr

have continued to be reflected in greater effi¬
ciency and economy in practically every phase of rail¬
road operations.

price gold*
in currency

are

net

on

program

ounce.

many

return

the year of about

made by the rails.

ever

be required to achieve it, if costs
held at the present level, is difficult to
estimate,
but I would be inclined to think it would be between

Obviously

approximately

program of capital expendi-i
which the rails have spent an average of more;
than a billion dollars annually in the past seven
years,
they spent last year $1,374,000,000 for improvements. >
This was the second largest annual capital expenditure

were

$50 and $70 per

of

Continuing the large scale

1940

not

of

taxes

$1,300,000,000
and
equipment and'
joint facility rents, Class I railroads

railway operating income in 1952 equivalent
of

rate

tures

desired

could

What

$8,100,high, increas--

new

a

3.69% in 1951.

quently, to the extent that gold production is a factor
the problem, one could properly conclude that the

spending.

and

Murphy

net

a

a

end

in

the

of nearly

expenses,

peacetime

C.

H.

million ounces per year, which is close to the max¬
imum world production in any year which was attained
in 1940 (37 million ounces, exclusive of
Russia). Conse¬

at

in

ing over the previous year by aboutone-third of 1%. After paying record-

40

operations

slight improvement

a

000,000 also hit

quantity of gold absorbed by industry and private
(which is considerably below
present figures), this would require an output of around

right to maintain

with

a new all-time high, and anincrease of about 2% over 1951. Op¬

stocks will not exceed 25%

about

million.

roads in 1952 approximated $10,600,-

the

was

38

000,000,

tranquil conditions

more

than.

more

than

freight rate increases during the year.
Operating revenues of Class I rail¬

reasonable estimate.

a

is

world is of the order of

from

less

their financial statement, because of -

if the total monetary stock of gold

per year

free

to

figures available show that
despite fall in traffic the rails ended

the

of the

million,

million

Latest

contribution from the world's mines of around 30 mil¬

lion

2y2

40

monetary
needs
resulting
from expected
growth of populations and industry. This would mean

a

ton-

a

are

regard as primarily re¬
sponsible for the severity of the depression of the Thir¬

pound

1952,

monetary gold has been regarded by a number of com¬
petent economists as a rate that would be needed to
meet

billion

by Class I rail-*
decrease of between 5 and 6% under
Early reports indicate that carloadings decreased
in

roads

conditions

and accepted standard are again to be provided.
An increase of 3% per year in the world's stock

gold standard be restored with gold priced at $20.6718
per ounce in dollars of today.
Thirty-five dollars per
might still be too low.

Is the price at which the
Treasury has purchased gold
since 1934 and at which it honors the dollar claims of

Preliminary estimates indicate that 612
miles of freight service were
performed

unavoidably detached from
gold. Even the victorious nations do not escape though
they may be spared devaluations in their most extreme
form. The effects of such disasters, however, cannot be
ignored.
Claims of fantastic magnitude expressed in
francs, pounds sterling and even dollars cannot be hon¬
ored by conversion into gold at the rates that prevailed
in prewar times, They must be written down to sensible
amounts in terms of gold, if the balance is to be restored
and the benefits of measuring them against a common

ounce

in

extreme

of

dislocation

drastic

devaluation

spread between income and costs that prevailed in

differences of opinion

unfortunately exist with
regard to the number of; dollars that should be re¬
deemed by an ounce of gold when convertibility is re¬

of

sult in

Thursday, January 29, 1953

.

H. G. MURPHY

with their destruction of lives and wealth

wars

their

and

sorry

itself.

gold

Great

.

President, Burlington Lines

again to regain monetary stablity on an international
scale, the currencies must be adjusted to the steady,
persistent value of gold, and not the reverse.

which is

record of managed currencies speaks for
Without the impartial discipline of gold behind

relic of the past.. I am con¬
devalued and that if we are

fident that gold cannot be

.

is now

as

it always has been

a

real. spur,

New~ techniques and developmenti of

and: ideas

-

are

strong influences in the-

new

retail

j

Volume 177

Number 5190

.

.

The Commercial and Financial Chronicle

.

an

(497)
trade

through the entire United States
'

stores.
In

'

t

in

all

types of-

stone

stratum.
It is the opinion of the
geologists and
engineers that, at a cost of approximately $45
million,
this storage project will provide usable
storage of a min¬

.......

particular field of retailing as in all other fields
of business, we cannot underestimate the
magnitude of
the

our

job

still

to

be

done.

troubled times does not

National

come

imum

security

cheaply

or

in these
without effort.

billion

which

is

now

operation will follow

bulk of the country's business is still for the
purpose of

duce

The present: situation is strong and the outlook
good,
but there is need of caution in the retail
field, and to
challenge of fast moving events, We must have,
a
new approach' in
rperchandising—better timing and
more modern
selling methods to make 1953 a better year.
While it is prudent to expect occasional
setbacks, the
long-term outlook remains favorable. •
'
;

A large market consisting of
exists

\..

v

in

the

heating
',77 /,;777 ^j-fijeldi; .but present natural gas pipeTine transmission capacity in many
-areas > is; inadequate
to satisfy; this
i;. market. The extension of house heat-

-

1952.
will have

limitation,

orders

of controls

Another

which

new.

heating customers have been
■7 absolutely necessary in order to in- sure
adequate supplies to present
customers

iames

;

F.

in

~,T'iods. If the

^

Oates,

Jr.

the

p u

peak

(

.,

sendout pe-

supply is oversold,
welfare, comfort and
be placed in jeopardy..
file

from1

that

of

new

with

not rest

on

these potentialvheating customers and the
would have to .be sold for other uses.
7"

remaining 75%
7

.

7.

.

:

situation

materials-and

be

removal

forbidding, if we develop actively and use efficiently
the most powerful ingredient of all: scientific and
teebfe-

raw

nological
and

to technical advancement in the field
most necessary.

We can't do this by edict.

President, Phillips-Jones Corporation

;

of not

In order to predict conditions as
they will
in the shirt and sport shirt
industry it is

types-of firm customers until additional supplies of nat¬
ural gas are made available.
To this end an estimated
$1,173,000,009 will be spent in 1953 by gas utilities in

understand
which

construction programs to increase the
supplies of gas to
consumers,; However, the solution is not
solely one of

building

pipelines to

more

the

serve

same

*

greater incentive, principally through proper recogn^oa
prestige of his professional stature, to the scientist

retail.

as

a

in the best interests of con¬
of our most valuable natural resources.

facturers

out

substitute for oil and coal under the boilers of in¬
or for comparable commercial purposes.
solution

experts, is

for

Peoples

Gas,

as

a

considering

by the
huge underground stor¬

various ways, it

method for
itdi

e

dome

the, possibilities

of

storing

gas

born

.

in. ;

serve

was

line.




depleted.
were

as

a

exist in 1953
necessary to
in the year

and

-

/

demand.

there would be
for

weakening is

an

'

7 " «

an

enormous

airplanes

were

demand for airplanes and

sold

as

_

things

Wooden

replaced

by

have changed since
propellers have been

metal

The

ones.

two-

training planes have been
replaced
by
planes
with

passenger

largely

higher speed, longer range and seat¬
ing four or more. Most new ones
now
have a tricycle landing gear,
which
J.

Phillips

quired

greatly reduces the

taking

for

off

skill

re¬

and

landing,
gives excellent visibility for taxiing
and

makes

it

easier

to

handle

the

plane in high winds. The aileron and
rudder controls

inating
These

the
two

-with

good

are

need

W. T.

connected, elim¬
for coordination.

Piper

things have

learning to fly.

greatly decreased the work of
Practically all planes are now equipped

radios, and the government has built Omni
over the country, which simplifies naviga¬

Stations all
tion.

.7 New
.

excellent likelihood

in which we live

will bring the sunshine of prosperity (its sole virtue)
into all segments of the shirt and sport shirt industry

throughout 1953.

7.

they could be built, but when
GI pilot training declined, the

Many

.

•

while

then.

Seymour

economy

challenge for 195$.

as

the

It is my considered opinion that
go by before any marked

cold-war

our

PIPER

market for these planes collapsed.

at all

and there is

seen,

a

fast

f

months will

that the expanding

This is

W. T.

After several years of floundering around the small
plane industry has finally got on the right track. When
World War II ended, it was commonly believed that

1952

the optimism of an industry which
position than it has been since the war years.

full

we must

President, Piper Aircraft Corporation-

;

to strengthen

supply

mechanic, from the scientist

build up our technologies^^
it to develop weapons and goods better

use

,

a

at least six

.,

and

power

V--

big question mark is the productive capacity of
mills and manufacturers and the speed with which this
capacity can reverse, the present imbalance between

pipe¬

From engineer to

assembly line,

than those of anyone else.

The

mar¬

definitely superior. These can be the product only
people who are superior in their technical knowledge

and skill.

babe.

is

thing;

we

to the

the

new¬

same

strike in modem

can

are

of

By Christmas

bare

as

enemy

longer will give us time to mobilize and producework madly behind the protection of wide
America must have productive power in
being
and that productive power must turn out
weapons that
while

summer

apparent and stocks

is in better

Herscher, 111.,

Beneath The thick'.limestone
dome, and about onethird of a mile below the surface of
the ground, is a
7 : er ef porous sandstone now filled
with salt water at
'h'.'-h pressures. As natural
gas is pumped into the sandrtone the water * will be
-forced back and a "bubble" of
7«*rr will be formed at the peak of the dome in the
saikt-

hot

learning the

now are
an

oceans.

Thus, as we enter 1953
huge open-to-buy by retailers, full-scale
operations planned by manufacturers and a stubborn
confidence by mills. Good general business
conditions,
including full employment and a high national income,

would be the

"whish is approximately 40' miles from the
Chicago
ket and only 17 miles from our
new Texas Illinois

and

realization^ that

quantity. But others

The speed with which,

.:

make goods and weapons

can

warno

were

were

there

decided that the most
satisfactory
use of an anticline or lime-,
formation in the region of

us

America has proved it
in

manufacturing and

early
the

the shelves

determined

facility where the

After

was

levels

plan to develop a
gas, not needed by house heating
customers in the summer
months, could be then stored
for Use during the
following winter heating season.
age

try, and technical societies; and (d) launch planned audi
personnel to the

active campaigns to attract technical
fields where they are most needed.

pushing their plants
for maximum production.
By early
December the enormity of the sell¬

dustry
The

An
to

engineer; (c) stimulate more students to enter tech¬
study, by cooperative efforts of government, indus¬

nical

pendulum of pessimism had swung
By August orders were being
placed in substantial quantities, tex¬
tile prices were rising and manu¬

a reliable, clean and economical fuel and
premium fuel should not be used at bargain rates

a

and

too far.

Natural gas is
as

and

f

supply-demand situation
closed.
The first. six n>onths Vof
by retail hesitation,
;

levels—mill,

added

the year is not
one

marked

were

all

ruptible" commercial and industrial customers in order
to make use of the
steady flow of gas from the pipelines
every day of the year. In my opinion the sale of
gas to
off-peak and interruptible customers during the warmer
months of

the

just

most certainly must

omy.
We must—starting in 1953 and with
increasing
vigor in future years—(a) determine our scientific and
technical manpower requirements in
advance; (b) give

manufacturing
uncertainty, a der;
clining textile market and a down¬
ward adjustment of inventories at

areas, because

the combination-of peak winter demands and low
sum-,
mer demands of residential
customers makes it neces¬
sary to sell large volumes of gas to "off peak" and "inter-

servation of

has

we

by democratic processes, just as we have built the
world's greatest production machine under a free eeon-

past successes but must continue to meet
with new and improved products.

:

But

do it

to take

'

brainpower. Here is our potential equalizer
possible advantages-technical superiority.

one

job for
them, for they can plan a man's career, direct him imtei
technical studies, and order him to
apply his knowledge

.

SEYMOUR J. PHILLIPS

our

Let's not forget that Joe Stalin's
gang is developing this
resource as fast as they
can; and it's an easier

*•

Many other gas:c6mpanies are similarly in the position
being able to satisfy new house heating and other

a

power and raw materials of Red China and the
like,
shake well, arid you have human and material resources?
capable of far outpacing our own.
i
An ominous outlook, isn't it?
But it doesn't have to
.

our

:

capacity of Russia and fits
cannot afford to ignore the osftpxff

we

we

now an

requesting
homes, and

.

can¬

generally look upon as "backward"—
example, Manchuria, not long ago insignificant, feu*
active arsenal. Add to these ingredients the marw-

for

•

to continue to grow and

competition

and material

men

our

European satellites,

than

more

....

.

cold war, our warm war (Korea), and
the
that may come in the form of World Waor

of countries

This was demonstrated during the
past year when Sheaf¬
fer's introduced the new Snorkel fountain
pen, the first
practical "messproof" pen. Heavy public demand for this
new applications are
currently being filed at the rate of
pen with the
tube that sucks in ink and eliminates
approximately 5,500 per month. As a public service in- 7 messy
"dunking" of the pen point or barrel, was re¬
Stitution, Peoples Gas long ago recognized its obligation
flected in a marked upswing in the
company's sales
to find a wayv.0fserving all of its
potential customers.
during the last quarter of 1952.
.'.7-77 ?.. •
A partial- solution was realized wheft the new Texas
With a sounder economic outlook in
prospect for 1953,
Illinois pipeline was placed in operation in
December, „ the Sheaffer Pen
Company also plans to strengthen its
1951. ^ However, the high expense of
pipeline construc¬
position in foreign markets. During the past year, the
tion dictated the search for an alternative means of
sup¬
company set up a manufacturing plant at
Melbourne,
plying the-space heating demand rather than construct¬
Australia, for production of pens and meehanieal pen¬
ing even more pipelines. It is' frequently overlooked
cils. Output of this plant is expected to be
stepped up
that the average gas house heating customer in the Chi¬
considerably during 1953. 1 In addition, the company's
cago climate requires on an average day
only 25% of
Canadian plant at Malton, Ontario, is
increasing pro¬
the amount of ;gas he requires on a
peak day during the
duction of Snorkel fountain pens to meet the Dominion
winter heating- season. This means that
only 25% of the
demand.
7
.7 7••V'-7*' '*
total capacity of new pipelines would be needed to serve

122,590 applications from Chicago families
permission to use gas to heat single family

something far greater
a turning
point that
and technological

In addition to the productive

advantage:
anticipated favorable conditions in 1953, we can

of the

is

freedom-loving allies the world over.
At the same time, the Communist hordes and
holdings
grow and grow. And though it's not fashionable toadmiff
it, Communist productivity has inoreased tremendously.

provide .smaller businesses,
the writing equipmeni industry, with

up

war

It

scientific

our

alone, but must be shared

cause

make

in

United States is the fact that our
not be devoted to American use

the

the confidence of the nation

plastic

change

a

IM*
greatly outnumbered
by Communism,, Our natural resources are fast depleting;
particularly in the forms that we now use them. Ami
amplifying this increasingly dangerous position for the

"r7..-'777->

■'

7;

other

on

If we are

gas

on

for

change of calendars.

our

hot

favorable Administra¬

Release

on

Regardless of poHtical views,

stimulated by the tremendous re¬

the manpower of the free world is

additional cash for research and
development., These two
phases of a company's operations ape essential in the
highly competitive writing instrument business.

b 1 ic

;
;
safety will
As of Jan. 1, 1953, Peoples Gas had
;

gas

In

for optimism is the prospect of a
pos¬
sible expiration of the Excess Profits Tax on
corporations
on
June 30.
This would'

7 house

:

more

be

perspective.

materials such a$ metals should,
permit virtually full production of writing instruments
barring a national emergency.
7 ■
7

a

been

I;..isstied restricting the addition of

'

•

Development

However, the

which, have

fine effect

a

in;-industry.

!•; very unpopular and disagreeable sit;.7uafion with gas utilities and poten/.

for

*'
-..
; ;■
;' 7 ■■ ■. -7' ■:
Business has been spending almost
against its better judgment during

Wilbur" Olson

iitafboervice, therefore, has necessar-\
[pilyj.fbeen restricted in these areas.

;;Ttial'.customers alike.

a

calls

tion.

house

•':.Tms,has been and continues to be

than

waiting business in particular and
industry in general.
77 Removal of industry's uncertain

7, under a

but

problems.

Ad¬

new

; 7 outlook of the past few years has
resulted in the
shelving of overcautiousness as business pushes ahead

The outlook for the gas
industry for 1953 and for the
foreseeable future appears very

*/

to

tional peace.
But the advent of 1953 calls for

.

.

environment off

citizenry's active interest in government.
leadership in the United Nation's action in

our

products, and possible

7 about the economic outlook
7

.

an

the proudest of stimuli to productivity,
technological progress, and the attainment of internarPen Co.

generally is in our favor. If
reduced spending is accompanied
by
a
balanced budget during the new
; year,; there should be no question

Chairman, The Peoples Gas Light and Coke Company

in

Korea provides

world

-

1953

surgence of our

And

,

meet the

cannot fail

we

raw materials—should
pro¬
expansion of business and sales in the writing
equipment industry during 1953.
7.7;The confidence of the
business

an

elsewhere in the world.

or

removal of controls on some

--

customers

new

enters

accomplishment and optimism. This year we will
rem^*
defense production peak while still
producing civiliasii
goods for a standard of living never before attained here

storage field,

Development, W. A. Sheaffer

ministration, development of
,

States

our

Three factors—confidence of business in
the

'

and clearly influenced by expectation • of
greater supplies rather than less as time goes on. The

gas

The United

WILBUR OLSON

temperate

inot without its

a

conditions permit.

as

'7

Corporation

peak-day

a

bility, be far enough along to permit limited operation
during the 1953-54 heating season and that expanded

merchandise, while confident, is orderly,

additional

and

vigorously underway, will, in all proba¬

Director of

promising indeed

gas

that the construction at the site of the new

forward to fill the gap.

; 7;,:7? 77james'f. dates, jr.

feet of

deliverability equal to the capacity of thred pipelines each cost¬
ing about $175 million. Our experts have advised us

When government purchases are at its
peak, it is
natural to think that business could not sustain a
reduc¬
tion in those purchases without
depression, but this is not
true.
The question is whether
private business in its
normal function of satisfying people's wants
will come

satisfying people's daily wants.

cubic

deliverability of IV2 billion cubic feet, being

Maybe defense spending will be the main support of the
economy for some time to come as some
people think,
but if things are going to be done
better, retail business
and the country generally will be better off.

Buying of

90

of

FRANK N. P1ASECK1
Chairman of the Board, Piasecki Helicopter

-

"
.

for the

airplane

7"7'

•

"

'

'

•-

being found regularly.
They are now used to locate schools of fish, hunt wolves
and coyotes, and patrol pipe lines. Corporations have
fleets of planes to go from one plant to another. Probably the farmers find more jobs for planer than any
uses

7'r.

are

Continued

on

page

38

38

The Commercial and Financial Chronicle

(498)

Continued

from

page

As

37

They look for cattle, check water supplies,
and dust crops, fertilize fields, sow rice and make

time saving trips to town.

The surface in this field has

industry

utility which

is

building

now

with

planes

proven

being bought by people who travel.
their airplanes after only
Those who buy now not only

are

In the past, many owners sold
■

short

a

period

of time.

a large number of hours each year,
but they are
keenly interested in getting the new improved models.
The year 1952 showed an increase in number of planes

fly

and

greater increase in the dollar volume.

They are
being used for the job they can really do—that
is the furnishing of long distance transportation.
The
a

at last

improved airplanes and the improved navigational aids
have greatly increased the popularity of private avia¬
tion. Unless all signs fail, business in this year will be

L. RIGGIN,

F.

SR.
-

see

continuation

of the

type of business prosperity
that industry enjoyed throughout the year 1952. I now

a

same

believe

the

that

defense

program

will

extend

year

and do not think there will be

general

a

throughout

entire

the

business slow

dur¬

down

ing the last six months of 1953.

With

the very real possibility that the Ex¬
cess
Profits Tax will be eliminated
after

first

the

months

six

of

1953,

there is every indication that profits
from
industry will be as good or

than in

better

even

The

election

has given

business benefits from this stimulus.

of

1952.
Eisenhower

Mr.

spirit of the people in this country,
not only people in industry, includ¬
ing management and workers, but to
citizens everywhere.
With the op¬
F. L. Riggin,

Sr.

portunity

have for

we now

developing

this

Of

course

•

If

mism.

the

v

This pressages

the

a

public enjoying

important

more

tion will

labor

be for

will

the

to

labor

believe

not

well

as

as

until

it

Axle

sponsibility

time.

to

their

get

operate fully with the
prepared
have

to

to

accept

Washington

sacrifices,

which

order

they

to

drastic

so

surely

wanting

as

per

tion),

annum

the

of

20%

national

in

and

change in the
government
advised

stabilization

All

months

steel

on

would

little ability

around

should
that

a

very

do

even

quickly,

had

everything they

Republican

they tried.

and

base
that supposition.

that

ago

in
F.

W.

be permitted

will

can

to

had

stretch out, the rearmament program.

will

roll

of

everywhere

to demonstrate

can;

Administration is

good

for

clearly
the

all

Administration

new

a

opinion

However,

whether

these will

include

to

inequities,

additional

RACKMIL

remove

The

With the advent

not

announced
no

its

way

taxes

to

in planning
1953, compared t6

mous

or

eliminate

•

increased

reduction

based

in
it

on

business

predictions

past experience and

must

on

necessarily

be

current conditions.

We

the

entertainment business,
particularly that part of
relating to motion pictures and phonograph records,
are
keenly sensitive, to the caprices
and

whims

of

the

markets.

mass

During
1952, it is interesting to
note, both the motion picture in¬
dustry and the record industry cele¬
brated
ness

sary

birthdays. The picture busi¬
high-lighted itsv 50th anniver¬
and the phonograph business

commemorated its 75th.
Both of these businesses

kindred interest and
to

produce

appeal

to

a

the

a

responsibility

entertainment
greatest

that

will

number

of

people.
As
Milton

R.

Rackmil

forms

of

tions, these industries

communica¬

are

constantly

faced with the question: "What is the
...

,

mood of the people today and what

..

will be its mood tomorrow?"
It is difficult in certain

There has

vision

on

been

both the

much

talk

about

picture and the




sion.

If the conclusions of the automotive

the economists

the

effect

record

of

business.

are

tele¬

no

The
we

British

and

the

industry and

their

intentions.

own

war-weary

them express the

peace;

with

loyalty of their

by plunging into

rearmament program
war

no

warlike1

They also believe that the Red Russian rulers

of their satellites
of

with whom'

have

own

all-out

an

subjects

distorted view that the American;
is definitely aimed at-

Russia,

rather, than

and they believe that if

a

a

devastat¬

to -establish

,

world'

Russian-American

does

occur,

area,

with utterly disastrous results to their people,

We

Western

are

believe

or

Many.*

war.

Europe

will

become

the

war

combat
even

if

local,

state, and Federal

govern¬

ments will reduce taxes and devote more funds to

constructive operations as

industry will have

a

such

road-building, the automotive

good

year

and

our

country will

improve both its national and international, position.

1954.

individual

increase in
will

be

as

most

,

1

a

dropped

income

tax

made

rates

source

on

of tax money at present

since it

sales of investment properties and

thus

greatly decreases business activity.. Possibly, it might
be well to keep a three months' short-term capital gains
tax- provision to reduce purchases and sales based en¬
tirely* ,on speculation.
'
There ought also to be indicated for 1954 consideration,
.

,a

considerable

of

reduction

in the

tax

brackets

of

people

incomes running from $20,000 to $100,000n 5s
these people, in spite of all the talk of prosperity, are
gross

very^uch
Federal

With

worse off now than at any time since the
Tax- Law started in 1913;. while .those

Income

^mailer incomes are generally very much better pff.

Thece

are; many

life insurance

cur

year

(1

1953.

(2)t^The

activity, as shown by the Federal ReiIndex, is at its peacetime peak.
~-h

increase

since-1935, with
yearr
we

reasons to expect good business,. ,in
industry throughout the whole ofr the

industrial

serve^Board

allied with the winner.

that

H'%
1951

than useless

thoroughly convinced

are

countries

Francis P: Sears

cost

boards.

prevents
•

have business connections

that

a
in gifts
savings in.

of

June 30, 1953, instead of
waitihg for its official expiry on Dec. 31, 1953.
I am hopeful that the capital gains tax will be redueed
to not over 10%. Financial experts say that it is worse
in

correct, most of the shortages which

European industrialists

1953^With

billions

expect the Excess Profits Tax will be dropped when
it expires on June 30, 1953, and I think it is likely that

sign of peaceful conclu¬

smaller inventories.

some

billions

I

cramped business activity in 1952 will be overcome, and
it will be possible to increase shipments and operate
with

to

billion for the fiscal

further reduce taxes in

and

independent

expanding business, and dis¬
spreading war, in spite of the

outbreaks which show

though they

businesses to literally follow
blue prints but patterns have
been developed over the
years, and these patterns stand us in
good stead as far as
our planning and
production are concerned.
-

a

many

ing

public

possibility of

do not dare to test the

.

have

card the

stupendous

of useless depart¬
agencies, committees,
etc., etc. in Washington, we may well balance our budget,
ments,

economists look forward to

Making

of

personnel

to be unani¬
schedules for

majority of

continue

must

we

and

abroad

seem

production

The

1952;

■

beginning July 1,

year

deficits.

Federal

with Russia

incredible that anyone -

least $10

at

to

readjustment
whether there will1 be

industry

war

the 1953 outlook on

great deal of extravagance and silly
experimentation, thus resulting in a
saving in the so-called defense effort
of

there is

reduction and

Leaders in the automotive

President; Universal Pictures Company, Inc.
President, Decca Records, Inc.

has

on

ourselves to be able to use
all effective weapons, and this means
further huge government expendi¬
tures for this purpose, though I hope
and
expect that .the splendid new
Administration will do away with a

determine the policy which will be pursued.; We know
that there will be many changes, but we cannot' be sure
of taxes

people, business and labor and agriculture alike.
MILTON R.

which

the imminence of war,

on

seems

thoughts

my

prepare

pro¬

sell.

Company

ple to such destruction.

been lifted until it

duce all the vehicles it

Rockwell

Insurance

of the hydrogen bomb are so

horrors

it

that

quite possible that the automotive

industry
C®1.

;

would choose to subject his own peo¬

quarter of 1953; but, in the interim,is

1953 and

The

ically bring about a 50% cut in auto¬
employment in
the first

and

1956

businessmen

Seiberling

for

/

Life

supply are catching up with the demands and that the
outgoing Administration feels it is safe to reduce, - or

very

1953

do not think there is likelihood of

I

automat¬

ple, has not tried

problems,

improved

an

FRANCIS P. SEARS

in

the recent Administration has not been for all the
peo¬
the

point to

Chairman of the Board, The Columbian National

was

short

all

employment.

of

signs

Rubber Company.

sudden change is that our sources of

solve

.

ourf&usiness, and toward some modernization of sell¬
polities, with a view to further leveling of the company'^^ear-around production schedules and increased

only conclusion to be drawn from this

to

x

car tire for speeds of 100 miles per hour and
afrie to withstand the punishment inflicted by ldng
highway runs at such high speeds. We have been: at
work oil this for more than a year, and are very much

motive

good

time to demonstrate to the American people that

plants.

passenger

(approximately
gross produc¬

those who really want it done, and four years is all too
a

our

encouraged by ou.r progress to date.
We -'iie planning steps toward greater diversification

industry

six

about

restrictions

will

the part of

on

financing adequate to

1953.with

year

more;

light of the complete
top personnel of the

automotive

'Hie

co¬

clean-up

a

be done without sacrifices

a

~

of

restrictions have

sincere in

are

Nothing

can

in

re-

,I$g. 1 research project is the design of a premium

is running between $50 and $60

gram

re¬

a

my.

Company

billion

Administration, and to be

new

accept, if they

Administration.

affairs

own

has

acijen.ng

.

tion" in Korea, the rearmament pro¬

business, a fact which
thoroughly demon¬

concern

is

to be

i

a

employment in

Our

There are very few occasions when the business atmos¬
phere is so clear that it is simple and safe to make a
long-distance forecast. It is particularly difficult at the
moment, when our country is engaged in a "police ac¬

is

business

Every

begin .the

opments

and.

it

soon

j.

be

ing

businessmen must recognize is that bring¬
ing order out of the chaos in Washington is no easy task
take

So

those

over

in

up

should

earnings

Seiberling Rubber Company's prestige in the tire mar¬
ket should be greatly enhanced by new products to .be
introduced early in .1953, and by others now under devel¬

ROCKWELL

WILLARD F.

One thing
will

full

Chairman of the Board, The Timken-Detroit

strated.

and

national morale.

the

to

more

become

prices will go

1953

high level of production, from now into, the
peak summer tire-buying season, and we expect to be
bettter able to meet customer demand and to provide

feeling that the outlook for '53 is good.

honest

an

efficient
Administration,
one
principle of serving all groups
of our citizens impartially and equitably, and with no
promises or commitments to be fulfilled to any special
favored group, there is gradually developing a new spirit
and a determination on the part of industry to demon¬
strate to the people of this country how much better an
able and efficient Republican Administration can serve
all of the people and how much better such Administra¬

is dedicated

We

provide

continuance of good business. With,
more leisure time to do things and
in the entertainment business

confident that entertainment will

are

tire

Our

for 1952. However, they will not approach the
high level established in 1950 unless Federal taxes
materially reduced.

are

.

.

fact, it is entirely possible

record

is main¬

.

new

a

much firmer price struc¬

a

improved

tained, the American people will have no reason or in¬
clination to retrench or to modify their standard of
living.

at

ported

i

high employment level

present

In

1953.

for optimism than pessi¬

I believe there is more reason

be

only

retail

that

our

eral.

of

ture.'

know-how, to assume

activity.

and

that

cause

a formidable position in
business, like all others,
depends upon the general trends of the nation's economy,
the international situation, and world economy in gen¬

and

ence

should

sales

because of the ex¬
pected increase in unit sales, but be¬

The

for television in its studio.

unit sales should in¬
higher rate,

somewhat

a

high—not

major studios in Hollywood, who have the experi¬

the

at

Dollar

time, Universal Pictures Company, Inc.,

a program

million

54.2

of

rate

of 7%.

yet to be announced.

boon.

as a

At the persent

in 1953

.

j

partly because we were not able to
produce enough tires to meet de¬
mand in the past year, and partly
because of new plans for this year,

factor, to the entire entertainment industry, will actu¬

ally serve

Seiberling Rubber Company

industry's sales of passenger car and truck
replacement market are expected to rise,

Seiberling's

of television. It is our conviction
rather than persisting as a competitive

television

for

iudz

tne

crease

•

further development
that

1953

units to about 58 million in 1953—an

increase

experience will be true with the

We believe the same

the

to

iroiii

that when new media of en¬
tertainment develop, the public's appetite for entertain¬
ment becomes greater and, therefore, all entertainment

shorter working hours, we

tremendous boost to the

a

point applies to the motion picture business.

same

In other words, it seems

production of these pictures will be designed exclusively
They will not be utilized for exhibition in
motion picture theatres. It is our belief that if more and
more film is used on television that it is most logical for

nothing at this time on the business horizon,
short of all-out war, which would indicate anything but
can

The rubber
tires

for television.

President, Mueller Brass Co.
I

The

is

excellent.

The outlook

is very favorable.

was

pany

Thursday, January 29,

.

J. P. SEIBERLING

meteorieally

was

.

President, Seiberling Rubber Company

successful, that Decca Records,
organized. Despite radio competition, this com¬
grew tremendously along with the growth of radio.

radio
Inc.

barely been scratched.
The

find that the same ques¬
during- the early days of radio, and par¬
ticularly in the early 30's when radio assumed its present
character of network broadcasting. It was in 1934, when
tions developed

other group.
spray

look into the past, we

we

.

in population of 26,000,0G0 people
babies running nearly 4,000,000 a

new

i& about double the annual increase in population

had

been expecting.

(3)'Employment payrolls
tory with the exception of

are
a

the highest in

our

his¬

short period during World

Volume 177

Number 5190

.

The Commercial and Financial Chronicle

.

.

i

(499)
when

II

War
our

we

striving feverishly

were

increase

to

ment.

is

due largely to the fact that we are
now
advantage of mass production economies, a
factor which enables us to
keep costs low in spite of

*

The better governments, both national and state,

(4)

This

established in the November elections,

the

cost

building

of

living,

account

on

hospitals,

schools,

suburban

the great volume

(6)
of

accumulated

housing

and

water

G.

of public

needs

for

supply,

Until

the

never

buy the things they need and want in great quantities.
the

in

United

States

will

be

cut

down

be

must

reduction

in

applied

the

the

to

future,

thus

budget proposed for the

£y ex-President Truman.

is

he calls

it, he has proposed

an

of

140.000

people.

easily

double

that

can

for

some

seven

eight

or

years

said

are

"

the

much

net

more

result

the

for

so

of

outright
Did

how

be

public

When

was

should

SPATTA

what
.

yet.

We

position

for

strong

neck with

mar¬

The

materials

The

(1)

fact

that

to

mechanized

industrial

What

plants still lack advanced

(3)

The

rising

costs

a

short

out

we

being

the

kinks,

daze

a

present basis for
overlook

widespread

that

we

a

to

so

enough of them had been
the appetite of the mass market
of

industrial trucks

insurance
other

and

to

effort

square

com¬

produced

costs

product

are

product

that

becoming

are

involved

of

in

generally

the other

and

actual

the

often

very

hand, there

these

The vast

of

operations

1952, will not be
in

1953

is

efficient

equipment

result

can

^placing their first orders for industrial trucks.

field

the

any company

created

two

The

first

these

II.

of

potential customer for

high cost

acceptance

and

of

perhaps by 10 to 15%.

production of aircraft

devices.
are

pressurization and aircondi-

are

sales

How¬

The

importance of the automatic

of

the

has

helped

Wilson

Foss

this

equipment

decline in pork comes after
unprecedented continuous increase

an

hog

production

favorable to further increases.

in

combination

Pork

find

in

the

primarily for military air¬

are

has

w^ptare

years,,

some

with

Delta

since

The large 1952 corn crop,

reduced

hog production this

it

touches 33 cities in 12 Southern States, ranging from
Dallas, Texas, to Charleston, S. C., and from Miami north
to Chicago.*

year,

this has been
accomplished

in the
has

number

been

of

warehouse

increased

operating costs for

and has

meat

price of

few

During the past 10
much

as

are

years

good

a

buy in today's

Ijidrket.

they have not increased infprice

other

manufactured items

i




been

as

increasing

Delta's business has grown stronger

for

every year in the last dozen years,
with steep climbs since end of World
War .11 when new flight equipment

several

the point where increased

beef

trends

^oflequip-

industry,
outlook

production

are

of

both

a

there

for this

be

can

confi¬

became

always

uncertain

in

expected

stable demand

product prices declined

encouraging

The overall level
op¬

situation

meat

and

the

even

more

is able and

produced,

willing to

because

meat

pay

is

for the quantity and
a

industry.

,

highly

perishable

very

competi¬

business

compared with <881,of 11%.: Air
9% and air freight in¬

975,704,

was

up

In planning for new ships on
with its proposed merger with

order and in connection
Chicago & Southern Air
Lines, Delta obtained a $20,000,000 loan commitment re¬
cently, principally through Southern banks headed by
Citizens &

Southern National Bank of Atlanta.

of this size would
a

Estimating

of

12%

in 1951, an increase

mail

j„

sharply.

068

a

creased 17%.

19% and several important by¬

product, processed and distributed by
tive

talled
C. E. Wool man

supplies, prices

However, the price—as always—will be whatever the
kinds

senger

stable than in 1952, when the average of

more

all meat prices declined

.

in total

again*
days

December,
gain in pas¬
for the year 1952
over 1951, to break all previous to¬
tals. The company showed a 1952 net
profit of $4,147,079 after taxes, in¬
cluding non-recurring special items.
Net
profit in 1951 was $1,947,225
after taxes.
Passengers carried to¬

the

Consumer demand

relatively high.

several

showed

Delta

relatively efficient volume. Finally, in view

the

should be

several

are
year.

available

last

the

years.

supplies should be sufficient to permit

prospect of little change

re¬

fork-lift

livestock

consumer

'Industrial trucks

future

the

erations at

employees? The

a

higher

is expected to continue
of

aft- actual

storage capacity and

the

has

reached

now

and

packing

factors in

to

trucks and pallets.

as

production

Although

without additional construc¬

tion, but it has often been accomplished with

result

long

as

Air Lines, which has been serving the South
1925, is somewhat of a barometer in the area, for

.

capacity of warehousing facilities. Not only has

reduction

production, therefore,/!may not decline
cycle.

dently expected in the next few

accelerate

manufacturers

of

President and General Manager, Delta Air Lines

as

fork-lift

enabled

some

C. E. WOOLMAN

United

normal

a

Cattle

.

fork-lift truck

as

increasing in importance each month. Although

the units.

States since 1946. A point was finally reached where the
relationship between hog prices and corn prices was not

truck, particularly
among
industries
.where
warehousing
finished
or
partially finished production is a problem, The-use of
use

devices that

being developed today by a few companies such

PAC

beef.

in

im¬

""."aMS

World

aircraft elec¬

This
Edw.

are

major factor

since

manufactures

In the second group is the Manufac¬

■■■"*&>■

industrial truck.

an

construction
of

a

aircraft and guided

industries

new

craft, pressurized commercial transport utilize

a

employing 15 to 18 people and

handling of materials is

has

long-time- leader."

of supersonic

in

have

^

con¬

"Business flying

pork supplies will be reduced
enough to offset most of the increase

marketings

regard

in which the

{.W

C.A.A.

tioning equipment for both human cargo and electronic

we

in

nearly

new

has

and

production

likely to be much larger than

troduction/of

ft

the

War

in the future.
meat

crease,

reducing^certain
manufacturing operation.

mediate savings, and in each month that
passes
'more and more
economy-minded companies

regardless of world

revenue

missiles

however, points to improving feed relationships ahead.

duced

of

ing instructional flying,

siderable change in the kinds of meat.
Beef and veal production will in¬

of

are ways

"indirect" costs attendant to the

net

source

According to

turing Division of PAC, concerning itself with the design

not

to

"direct"

production

air¬

tronic equipment.

Total

small fraction of the total cost

a

of

become the major type of aviation flying, thus supplant¬

long since been established, and

repeated

handling aids

that

fleets

aircraft has become

and the first half of

of reducing
keep the demand

aware

the

their

on

corporate

Big Business, is expanding greatly every year, and is a

.The method of
handling materials, particularly in prewar
plants, is generally the first and most likely target. In¬

double

yearly

it is to be hoped that the disruption
caused by them, especially in 1951

capital outlays.

the

$100 million
Maintenance of

continuing

had last year, but there will be con¬

been mechanized to the
point that further economies
not possible without tremendous

-The

than

ever,

Manufacturers

a

engine

a

planes.

■

The possibility of the termination of direct price controls
in the near future is encouraging. Their
unworkability
in the livestock and meat industry

strong.

I

amazing developments in aviation
past few years has been the acceptance of

during the same period. Totaling an estimated
9,500 aircraft, of which some 1,700 are multi-engine, the
corporate and executive aircraft operators are spending

This year is expected to be different in several respect.3
the year just past, for the meat packing
industry.

ways

materials

most

airlines

more

has

the

and airframe companies like PAC that
long-term business potential of even greater
importance than the current military program. These
company planes flew a total of 2,986,000 hours last year,
some
730,000 more than were flown by the domestic
offers

,

.

of

owned

of this shock when it

care

and .modification,

procurement

during the
the private airplane for industrial and business use. The
fast-growing fleet of corporate-owned aircraft has cre¬
ated an important new commercial market for privately

of the

from

'20s—just

form

'

t

cut in funds allotted to the Air Force

severe

.

•'

we have delivered fill only a rela¬
portion of the overall market potential.
Today's industrial truck position, it seems to me, is
comparable with the position of the automobile in the

a

stopped.

a

aircraft

One

when the blow comes, i£" can be ab¬

that the units

as

make

which is
seriously doubtful, the effect would probably not begin
to be felt by the aircraft
industry until 1955 or 1956,
because of long-term programing
?

for

smoothing off the edges, straightening

tively- minor

-

developments in speed and aircraft pressurizaessential to modify many aircraft as soon
they are off the production line. Private companies
specializing in this type of work are best adapted to
handle the conversion. Even if the new Congress were

from this

come

the work potential for com¬

PAC is practically limitless.

New

ditions.

each

produced during World War II
and in the years that have followed, it is reasonable to

ihanagement to find

base

as

tion make it

year,

strenuous

will

rate of about 800 planes
total of nearly 400

a

near-record

a

as

President, Wilson. & Co., Inc.

were

The pressure on

hit at the

With

transports also produced in the same year,
substantial increase in the number of light planes

a

panies such

of

pay

while, but the day of judgment is
or

Thomas Wolfe

six

,

paying for the First

success

will

another

sold for business purposes,

EDWARD FOSS WILSON

a marketing
standpoint, 1939
be regarded as a starting point
of industrial trucks. Even though

use

are

we

.

of

utility from

before

for

Gilpatric, reaching

Spring.

plus

doubt how

a

in

.

may

thousands of units

On

Spigener

■■

From

:

labor

to

should do to take

sorbed.

foot of floor space.
George Spatta

■

H.

killing blow that can't be avoided.

a

building
construction, which make it manda¬
tory for plant owners to realize
maximum

go

is to begin

comes

The continually pressing need
for
management
to
cut
costs
of
finished products; and

for

of

staved off

we

ing and can't be avoided

(Z)

acts

the

on

seem

keep good times going and

effort for

handling is a relatively
technique and that thousands of

equipment;

costs

G.

Government may make further

materials
new

whet

next

We haven't paid for the Second World War

get.

we

all

Remember that

long time to

con¬

handling
equipment manufacturers. They are:

.C

instead

schedules

commercial

World War 12 years, then the
deluge; so maybe we have
a

three factors which

are

tribute to maintaining a
ket

late

out

Billion

showing how the Gov¬
about spending these tons of money. Our
spent

rise

to

meet

to

curve

months, according to Undersecretary

be published

Times will continue

maybe two.

production
procurement

continue

just can't do it unless

was

that
9,000
military
produced in 1952. This

were

aircraft

consider the national debt, you shudder and

you

of the work will be sent

estimates

USAF

.

There

assume

tion

planes

for

potential for materials handling equip¬
sufficiently large to assure present manufac¬
profitable operations over an extended period in

in the

a

terrible leak at the bottom.

this money
wonder.

market

the future.

One

companies

private overhaul companies dur¬
ing the next fiscal year.
Although military production fig¬
ures are curtailed
by security regu¬
lations, Aircraft Industries Associa¬

on

figure

to

spend

maintenance

private

to

people should know beyond the shadow of

is

turers

You
a

ernment went

-

The

try

could

An audit should

mean

President, Clark Equipment Company

ment

about 50%

think, "I surely would like to see how one (the Government) goes about spending its BILLIONS."

prosperity and freedom from worry and fear.
GEORGE

a

Roswell L.

ev&r

you
you

for

more

with

during fiscal 1954. At the present
time, 25% is civilian-worked while

in the future.

war

Dollars?

all powerful.

whole

is

money

50%

activities

the

Truman and F. D. Roosevelt.

Labor chiefs will not be

(11)
So

.

it

spend

are

This

of

^

The Air

Force has announced that it
plans to

duplication of work, for
Bureaus to the right of

thing.

there is
as

of

us;

.

(10) Business generally will not be harassed

With Presidents

to

law

of

Corpo-

ration, is particularly good.

many

they

other.

expenditure
of

so

that

for

companies which are engaged in the maintenance
airframe and engines, such as
Pacific Airmotive

bureaus to the left of us; so rode
depression, which is just around
the corner, the
props being largely
expenditures made by our Govern¬
ment, evidently preparing for an

year

figure; it is being accomplished before his

leaving Washington in droves.
'

one

where

each

over

account

a

peace,

decrease

a

are

needless

increase in personnel
be

time-honored

find ourselves in

we

state,

People who have been feeding in the public

Very eyes.

trough

There

coming

In this time of

Fancy!

the

get

we

formed

falling

and

enabling

worked,

bureaucratic

unexpended appropriations of previous sessions of Con¬
gress

as

bureaus

(9) Waste, loafing and slackness in the army and air
here

Business activity throughout the aviation
industry will
on
the upswing throughout 1953.
Outlook

world out of old ideas that have

new

indicate tremendous payments to the workers who will

force

time

such

President, Pacific Airmotive Corporation

continue

SPIGENER

supply and demand working, we are
going to have our
people on both sides of the fence, for and
against, the
present trend towards Socialism. In
trying to create a

shopping centers stimulating buying, and (8)

the still necessary huge expenditures for rearmament all

;

H.

Chairman of the Board, American Snuff
Company

roads,

(7)

I

present inflationary pressures.

the decrease

(5)

in wholesale commodity prices with resulting decrease
in

THOMAS WOLFE

able to take

production.

war

39

have been impossible

A loan

in the South a

Continued

on

page

40

•

40

The Commercial and Financial Chronicle

(500)

Either plenty of orders on hand or foreseeable

busi*
generally optimistic for tha
other major industrial classifications, all of which\en«*
joyed a good operating year in 1952. It might be well
at this time to' call special attention, to Maine's shoe
industry which has grown rapidly both in output and
number of plants.
The 39,000,000 pairs of shoes pro-*
duced in 1952 give it the nation's number six ranking
and exceeds 1948's production by nearly 15 million pairs.
Maine's second group of industries/ while smaller iiu
size, bulk large in importance. They include industries
stemming from developments of recent years, including
electronics, pipe lines, and frozen foods; they include
small businesses producing goods of high craftmanship,
such-as furniture, or specialty items, such as snowshoesi
The State of Maine is peculiarly adapted to furthering
the progress of such industries,' for while the Pine Tree

industry, agriculture,'and

great progress in the field of

Continued from page 39

tourism.

South has been closely linked

opment of the region during the past two years.

capacity to

Jew years ago,

Delta expects

but such transactions are now routine in

any

the region.
The

rapid

of air transportation in the
with the industrial devel¬

development

passengers
tion's .total

WILLIAM F. WYMAN

in 1951, which represented 3.7% of the na¬
air travelers, and a 46% increase over the
boarding at Georgia airports in 1950.

President, Central Maine Power Company

total Of 463,361

Again in 1952 Maine's business and industrial record
showed sound, solid growth; present forecasts predict
a continuation of this condition in 1953.

where 561,360 passengers took off in 1951,
eighth among cities of the United States in the

Atlanta,
ranked

this booming area.

serve

Georgia communities alone boarded a total of 674,754

number of airline passengers during 1951.

Through

reflecting increased business travel and increased funds
pleasure trips. The economy of the South was once
tied directly to agriculture, but now we also look to
manufacturing and tourism as well. The factories are

only because of favorable labor, climate and

other resources,

because the market is here also.

but

influence

Development of air transportation especially in the last
10 -years

has helped the development of the South
all

entire

Not

only

civil

"

aviation

but

i

contributing to the South's prosperity, with
tary air bases most active here.
for

Now

and it is

'

many

mili¬

major industry

a

outside of Atlanta,

Air

them

hoped that this defense plant will be converted

transportation

with

years.

handle

its great flexibility and fast

water,

and

motor

lines

freight

equipped

airlines look forward

to

from

recovered

a

has been
discussion, It is encouraging to note that
up to the present time Maine has not lost a single tex¬
tile plant to any other section of the country.
' \
the subject of

continue its

Continued from page 20

.

..

To

A Yeai of Decision
of

leadership they

be brought imports

We must devise

foreign policy
which is bold and dynamic. Since,
as I said earlier, no such policy
cap succeed unless it has proper
economic
foundations, I - would
a

-

like to

offer

here

redommendations
serve

some

specific

which

out

economic field

of

part

reason,

matters

as

impinges on some
the problem. For
decisions on such

raw

materials, invest¬

ments, military aid, technical as¬
sistance, export-import trade, and
currencies

parts of a

must

be

treated

as

They

common program.

< should be considered at the same
Congressional hearings, dealt with
inr the

jobs

same

The

million

three

some

RUie

not

engaged in export
It
might' lose
the

now

industries.
•

come

American-• farmer'•'

legislation, included

iff the same appropriation, and
administered by one Government

eign

producers

•

from

of

many

the United States

because

of the fear that success in

would
to

raised.

be

this

the

cause

selling
duty
against

American

To

protect

unilateral

tariffs

:

would

be

increased

for

I proposed a few weeks ago
a

Citizens'

Key Importance of Trade

"

My second point has to do with
direct relationship of inter¬
national trade to military security
and economic stability. Our Allies
the

weakness.

the

defend

themselves—as

well

as

as

the

Today

dollars

Commis¬

you

in

can

independent

on

the

one

hand

that

or

no
:

James

.

s

Jacques

Earl
of

r

>

j

14

of

state

Elected

to

&

in

as

Director

Company,

/' /;

The dinner will he attended by
bankers, investment bankers, cor¬
porate executives, members and
associates of member firms of the
i

com¬
en¬

Texas.
serve

a

"

financial matters;

associa--

ion,

Edison

committee¬

Detroit Stock Exchange and ad-*
ministrators;" of ; securities5 cofti-1956, were Philip R. Neuhaus missions;;• ■'':; •/;'- "
:*
Underwood, Neuhaus & Co.,
Reservations should be made

of

of District No. 6 until Janu¬

ary,

rules

of

.British

the

The

Treasuries;

and

is

effect

Houstop,

and John W. Pancoast with Fred Oppat at the office .of:
Robertson & Paiicoast, the Detroit Stock Exchange; tick--

San:Aht6niql/

1

.

••/

-

V

$9.00 per person.
»
Exley, Charles A, Parcell3«
& Co., is Chairman of/the Dinner*
ets ate

C. E.

K.SSSn

'

American

+ w

'
•

1

J iSnLin +iK
u:1? interest abroad in the
achievements of private initiative
?

.

of

e

prises the

:•;5

,,

t

jaicqUes

F.

amounts, for

tjVe

.

<

Vice-President,

Detroit

Fridley

one

t h

men

Commission

,

Statler at 7 p.m.

of

ritie

F rid 1 e,y

of Dewar,

danger to our industries.

c u

G.

exchange yoiir

>

Insist

Ex¬

of
Oti3
Elevator
Company,
Babeock 8c
Wilcox Corporation, United States
Leather Company, Flintkote Com-pany, General American Investor^
National
Aviation
Corporation,
International Paper Company and
the Bowery Savings Bank of New
York, and also has a broad ex¬
perience in domestic and foreigii

Mr.

exchange them for dollars

disinterested. and investment.

: and

This

Annual

Stock

Company of New York as Senior

replaces

tire

CongressvFrench

pointed out. previously—if they identify the cohipiodities add the
are
economically
strong: They, services that the United States
cannot achieve
this strength if' can accept from abroad with little
we

Se

except iri accordance with testric-

I

the Detroit

Wednes¬

change will be held at the Hotel

Dealers.

cannot

.

the

of

Association

a sign of economic
\Y
f

unlimited

of

1953,

11,

National

the

with the, opportunity of
counsel.

Dinner

Committee

British pounds or French francs;
but the holder of pounds or francs

workihg outside of governto advise on practical foreign economic policies.
Such a
commission
could
provide
the
President

en¬

steps which

bilty is always

a

Feb.

Boylston A. Tompkins will be
DALLAS, Texas — James 7 F.
Jacques, Vice-President and Di¬ the speaker. Mr. Tompkins ha$
active in banking and fi¬
rector of First: Southwest Com¬ been
nance
since his graduation from
pany of Dallas, has been elected
Yale in 1915. He is presently as¬
Chairman
o f
District No. 6 sociated with the Bankers Trust

•'*
the

day,

Hess, Houston;

,

of

is

indus¬

Annual Dinner

District No. 6,

specified period of time."
creation

proposal

of

:

DETROIT, Mich Y-Oh

cordingly, the lack of converti-

commodities

given

on

not

that

assurance

ment
•*

only

fifth

I

-

Convertibility is not just
a
magic word. It is the end result
cf a sound internal economy. Aq-

the United. States
Government might well consider
danger

some

a

will bring about
convertibilty of the major cur¬
rencies. Convertibility — a term
not generally understood—means
nothing more nor less than the
ability freefy to exchange one
currency for another.

making long-range plans to

in

sell

/•.

:'

,

..

Elects J. F. Jacques

.

7/.7..'.-,'.,

A

sion

agency.

can

justly complain about such
'
K
'

i

.<

Detroit Stock Exch.

NA All Ilictripf Nil n
,1IWI#
**wi V

can-

couragement by the United States

for¬
discouraged

are

.

commerce,

nationalist

remedy

ultimately

■

Currency Convertibility

Proposals

the present time

At

rabid

most

t

dollar market abroad./
Tariff

international

condition.

four-billion-

a•

to

could

First of all, we must recognize
that each action we take in the

this

of

workers

States action in this field.

other

are

pillars of future United

as

allowed to

mto
the United States; a cut in exports
will soon occur. This might throw

achievement.

to
<

can

<

increasing

ever

in this Year of Decision.

gives our businessmen the same
protection foreign investors receive
here.
This
asks
nothing
more
than to apply the Golden

,/

.

Maine's

by

of the world's economic and
political ills. The challenge is ours

conduct which

official

of

; v

type

resource

•/-

many

a

,

,

and

lieve

justify such investment, the

countries involved must pursue
course

natural

these

aid

to

meet

created

situations.

uses,' and on improved stock
North-South competition situation

the

-

' l'.Zdemands: for' electricity
continued growth, Central Maine
Power Company .alone has spent $35 million in new
facilities and replacements in the past three years, and
estimates it will spend another $16 million similiarly in
1953. Included in this program is 60,000 kilowatts .'of
new steam-electric ^generating capacity added in 1952
and 45,000 kilowatts of new hydro development now
under construction.
* K
*
L.
1
To

nation-wide;

improved situa¬

an

industrial

or

to

The

cooperating with other trans¬

portation companies in helping the South

which

the other five New Eng-?

;

tries in 1953.

tion in 1953,
basing their predictions mainly on expand¬
ing individual consumption without including'military

While

heavy freight at lower rates than airlines.

textiles

as

incomes have climbed from

continue

mark'ets.

in -national

size

$51 million to $164
million in 10 years and are still climbing, aided,by such
developments as frozen foods and the broiler raising
business, the latter jumping, from - a few hundred
thousand dollars to over $23,000,000 in just overKB
years.
Frozen food processing also has aided the se^
and shore fisheries to expand from $25 to $75", million
in 10 years. New methods and expanding markets will

Included in this group are

slump during 1952 look forward to

speeds has helped to develop industry with benefits for

railroad,

competitive

Cotton

production of civilian airbraft in future

Farm

paper, textiles, shipbuild¬
ing,.metal trades, lumber and wood¬
working, and boots and shoes.
In
most plants in these categories ex¬
tensive programs of plant moderni¬
Wm. F. Wyman
zation
and
product
improvement,
have continued since the end of World War II,. keeping

is

Georgia is the production of jet bombers at the Lock¬

heed Aircraft plant at Marietta, just

to

too

same

States

end of World War II.

pulp and

aviation

military

,

promising

generally

picture

for 1953.

and air freight.

press,

on

Turning first to Maine's major in¬
classifications, we find the

only for passengers but for air mail, air ex¬

not

year

outlook

combined, its population is less; than that
of Boston. With but 21 cities, all under 100,000 popula-f
tion; and 412 towns, it has ideal, low cost development
space for small and medium size industries, tpgether
with plenty of good processing water, electric power and
a dependable,
skilled, intelligent labor market. All-in-*
all 230 such industries have started in Maine since thd

dustrial

other parts of the

quickly accessible to

nation

succeeding

each

the State's over-all economy.

by

making it

land

plays a dominant role
today, the trend of recent years to
diversified
industries
locating
in
smaller centers is having a greater
still

group

1953's

State is about the

While this same

to tell.

Maine had

the brunt

industrial story which

entire

the

of

for

hero not

industrial

years a
half-dozen major
classifications have carried

the

Much of Delta's business is generated within the South,

make

ness

,

the South to advance faster in 1953 than
other region of the nation, and we have just started
taking deliveries on a fleet of 10 Convair 340's on order,
and the combined
fleets would greatly increase our

*

Thursday, January 29, 1953!

...

At

Exchange

4;

Committee: :

5 & 20 Club Elects

its seventh annual meeting,

>

New York Stock

Exchange

they not tradq with the Iron Cur¬
It could determine the fields m
American
Stock
Exchange
The habits and thought patterns the
tain, and on. the other prevent which American industry is cap¬ of socialism
Weekly Fina-Ghanges;
are
becoming all too Five and Twenty Club elected
them from trading with us.
able of meeting competition as
The New York Stock Exchange,
deeply ingrained even in those
We must meet head-on the situ¬ well as those commodities which
George Herrel as President to has announced the foil o w i ri
g
who do not profess to accept its
ation which has developed abroad; American consumers could well "
succeed Jacob Feinstein. John S. changes:
?
!
;
philosophy,
whereby our Allies themselves use but cannot obtain; at home asTransfer of the Exchangemem^
»n;^i
McDermott, formerly Treasurer^
«a longer want to' be dependentcheaply as they ought to be pro- ■
political and economic was elected Vice-President. bership of David. B. Bandler to •
op our hand-outs—they want to duced. It could also help; to pre•^?.*b?^the; ircat?st. Former Secretary, Philip H, David Weinberg will be considtrade with us—to buy from us and- vent
ered by the Exchange on Feb. 5*:
powerful pressure groups^13?.?.
r
to thwart Russian,
to, sell to us; To accomplish this,' from, winning undeserved pro- - ambitions.■Only a firm and effec- Diamond was elected Treasurer
Transfer* of the Exchange mem-?
.

.

i

j

.

.

the United States must- relax its
traditional abhorrence of

If

we j as

to be

a

at

the

expense,

imports,*: American taxpayer and

political and economic iso¬
high tariffs and out¬
customs

procedures

might

Private

Investment

Y*

consumer.

Must

We in the United States

is

are

in

ternational situation

as

ahd

Rulley Koerner was elected. bership of Barnett Faroll to Jo-.

Secretary.

George Herrel, a regular mem¬
too

inclined to regard, the present inr

......

recommendation

their ways and live
with other countries.

change
peace

be

Stimulated

My/fourih

.up by strength,
ever persuade the Soviets to

the^\^n

oi

nation could afford

lationists,
dated

tection

something
precedent,

ber of the

Exchange for approxi¬

mately 33 years, was Vice-Presi¬

seph Klein will be considered by
the Exchange Feb; 5.

Rossman to Admit.

Philip G. Volpe, member of the •:
illogical that' ways be found to stimulate
dent' of the" club last year.
unique and" without
New
York- Stock Exchange, oii
and facilitate* substantial^ private: Rather, it-is-the extension and
The: Five and Twenty Club is" Feb. X, win become a partner m
Unless we give our Allies the foreign investment—hot*
merely. development: of- - events " which
the New York Stock Exchange'
composed of individuals who have
opportunity of selling more in the to aid the* economies of. other originated decades/ or centuries
firm, of F.<L^:Rossman.. & Co., 12©v.
American
market, their econ* countries but also to assure our- ago, If wcr understand these facts maintained; regular memberships ^Broadway; New York- City. Mr/"
omies without United States aid selves an
adequate supply*ofJes^> and>" deal- with them, in .their op the American Storic Bxehange :Volpe was formerly a. partner lii
will be in jeopardy/Unlessmore sential raw
materials; .,
proper perspective,,, wd willL re-» for 2?; y^axsf or knjger •
-Chase, .Meyer;'Barnett &*€0.
^ •"f
/
* ?
make sense, but they are
in our present situation.




,

"

..

>

.

i.

i

i.'i

n

i

* ■ >

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1

Volume 177

Number 5190

.

The Commercial and Financial Chronicle

..

(501)

John P,

Public

Utility Securities

New

York, Chicago & St. Louis
1952

traffic and

re¬

British Columbia Power

revenues

will be

BOSTON, Mass. — John F-f/
Murray has been
appointed
a
trustee of the Boston
Metropolitan

ports to be issued, in preliminary again this year. Also, many an¬
form, was that of the Nickel Plate alysts consider that in the case of
(New York, Chicago & St. Louis). Nickel Plate what moderate in¬

stock

The results, while not
were

tfche

conditions

under

which

the

there

crease

may

be

in

holding
dollars.

mainte¬

outlays could well be offset
continued
improvement
in

has been

1897,

operated during the year, operating efficiency as measured
aand the increasing bite being taken by the transportation ratio.
Thus,
Iby the tax collector out of net in- there is a tendency at this point

selling recently on the American Stock Exchange
$1.60 to yield about 4.6%; the B stock, which

lU\ it pays
dividend, is qouted

no

nance

by

District,

Columbia Power Corp. is a
leading Canadian utility
company with system assets of nearly a quarter-billion
The company's
$2 non-cumulative participating Class A

at 35

spectacular,
highly gratifying considering

Corp.

British

higher

and

pays

around

in recent years has

7%.

The

shown

business

rapid

dates

growth

back

to

industrial

as

/company

activity in this

(come.
The company has a heavy
.-stake in the heavy goods industries

The system
set-up, because of tax considerations, is still rather
complicated, although it is gradually being streamlined.
British
Columbia Power Corp. Ltd.
("The Power Company") has only
A and B shares
outstanding, and it owns the entire common stock
(also A and B series) of British Columbia Electric
Company Ltd.

in

;and

coal

that

so

it

naturally
considerably affected by the

\was

of

•strikes

fall.

At

income

last

the

last

time,

Federal

more

same

taxes

and

summer

than

were

$3

million higher in 1952 than in 1951.
This increase
to

$1.65

outstanding.
eral

alone equivalent

was

share of

per

stock

aggregate

The

common

Fed¬

income tax last year came to

$18,770,500

than $10.00

more

or

share.

Despite

the

strikes

was

and

up

road's

1953

earn¬
more

optimistically.

senior

company paid in advance the $1,750,000 balance due on Feb. 15,
1953

on

promissory

Company (British Columbia Electric Railway
Company, Ltd.).
The latter has
outstanding in the hands of the public only about
£1 million of debentures and
preference stocks, all remaining
securities being held by The Electric
Company. As soon as certain
tax questions are cleared
up, it is hoped to merge the Railway
Company into the Electric Company.

company plans to sell at competi¬
tive bidding $10 million of mort¬
gage
bonds in the near future.
Proceeds will be used to clear
up
the
$2,250,000
collateral

notes,
semi-annually

British

ifate in 1951.

about

Atip

operating
.penses

in

and

In

this

connection

it

due

was

of

to

main¬

outlays.

way

lower

More

the lower

was

For the year

whole this ratio

was

reduced

tion

last

week,

pected in

some

appointment
influence

as

had

been

settled.

marketwise

ber alone

there

was

a

of

cut

The

meeting
Society of Secu¬
rity Analysts last week, Mr. L. L.
"White, President
of
the
road,
•painted a less optimistic picture
<©f

the

lower

Mo.

the

in

become

the

on

affected

premise

major

no

that

strikes

operations

the

for

full

if

car

'that

not

the year-end.
centage is low it

is

^interruption of traffic due to the
"Steel strike last summer. This is a
phenomenon

as

any

de¬

cline in traffic
normally means a
^return of cars to the owner's lines

$>y foreign lines

to avoid per diem

{payments. With these maintenance

{programs, Mr. White expressed the
•opinion that Nickel Plate could
3iot

bring

large

as

a

<of gross down to net

in

1952 unless

there

percentage
this year as
is

some

tax

relief.
Of course, at this
early stage it

is

anyone's

guess

as

to

1953

as

omists vary

ions

part,

on

a

whole.

econ¬

widely in their opin¬

this point.

however,

fcave been

The

the

For the

railroad

most

analysts

estimating that railroad




in

Midwest

share

earned

was

Gardner
Matthews

transit

and

the

6V2%

Coffin

will

become

partner

in

the N. Y. Stock Exchange firm of
Fahnestock & Co., on Feb. 2. He
will make his headquarters in the
office to be opened by the firm at
123
W.

South Broad Street.
George
Betz, Jr. and Owen O. Freeman

will

be

branch
are

associated
as

with

the

an

1951;

a

case

helpful earnings factor.

generally favorable, judging

appears

for

a

7.5%

over-all basis,

to

some

the electric service subsidizing
extent.
The company some time ago

over-all return

and

was

apparently allowed

partners in Coffin, Betz & Co.
office in

Bethlehem, Pa., in the
Building, under the
direction of Frank X. Lawson, and
at Vineland, N. J.,1 under the man¬
Bank

agement of Jerry Brown.

return, which is understood to be well above the present
earnings rate. The company has indicated, however, that
only be raised to aid in necessary financing.
understood to be in excess of

original cost but
writing off the excess,

class

stock

for

the

present A and B

shares of the Power Corp.,
by stockholders before equity
financing is undertaken. No definite prediction as to dividend
policy was made by Mr. Grauer, although he indicated that the
dividend on the A stock could perhaps be
raised; it appears to the
writer that the present price of the A stock discounts an increase
to a $2 rate. Market interest in the junior B shares
may stem par¬
and this question may be voted on

tially from hopes that the company will benefit in future by gas
oil developments.

and

Gibraltar Financial Corp.

Joins Waddell & Reed
m

The

Gibraltar

Financial

Corp.

(Special to The Financial Chronicle)

has been formed with of fees at 61

Broadway, New York City, to act
as

dealers

in

U.

S.

Government

securities and sitate and municipal
bonds.
Officers are John J. Fitz¬

MINNEAPOLIS, Minn.
Swenson
Waddell
tan

is
&

now

—

connected

Ole S.
with

Reed, Inc., Metropoli¬

Building.

gerald, President and Treasurer,
and Jack J. Bernstein, Vice-Presi¬

Henri
Henri W.
away

Heukelom

van
van

Mr.

!.

With State Bond &

Secretary.

Two With Waddell & Reed

a

partner

van

in the

Exchange

Probst, Wetzler & Co,

ATLANTA, Ga.'
Fulford
now

and

—

Thomas

Robert V. Nixon

with Waddell &

C.
are

Reed, Inc.

U

Mtge.

(Special to The Financial Chronicle)

NEW

(Special to The Financial Chronicle)
was

former New York Stock
firm of

dent and

Heukelom passed

at the age of 80.

Heukelom

a

new

Assistant Managers. All

$7,781,-

bonds.

Mr.
who

Murray,

is

in¬

an

vestment
visor,

past

the

in

Strum

P.

John

Murray

ad¬

&

City, and for

of

a

number of
executive

American
Boston.

Institute

A

York

New

account

senior

of

Van

with

was

Towne

years a

the

of

Finance in

graduate

University

of

career

on

of

College

Boston

the

he

old

Business

his

began

"Tran¬

Boston

Halsey, Stuart Group
Offers Equip. Tr Ctfs.
An

underwriting

group

headed

turing semi-annually Aug. 1, 1953
to Feb. 1,1968, inclusive. The cer¬
tificated

were priced to yield from
2.20% to 3.10%, according to marr

turity.

ULM, Minn.

—

Robert

J.

Halstenrud has been added to the
staff

of

State

Bond

*

The

issue

is

to

be

:.r

secured

by

1,500 50-ton 16-door (Jrop-bottom
all steel gondola cars, of standard

estimated to cost not )ess
$8,400,000. Issuance of; the
certificates is subject to authori¬
gauge,

than

zation by the Interstate

Comrpqrce

Commission.
Also

participating in the offer¬
L. F. Rothschild & Co.;
Baxter, Williams & Co.;,rA.
Becker & Co. Inc.; Ira Haupt &
Co.; Hay den, Miller & Co.; The
Illinois Co.; McMaster Hutchinson
ing

are

,

&

Co.; McCormick &
Mullaney, Wells & Co.

Co.;

and

v

of British

since this might hurt the company's case in the event of
any future
expropriation proceedings (such as have occurred in Ontario).
The management is considering the substitution of a
single

Fahnestock & Co. will also open
Union

is

(in the

the company has no immediate intention of

C.

a

on an

Book value is

Pa.—Roy

or

increases, two increases in gas rates and three in
the present regulatory system started in 1938).

other services

asked

& Co.

Opening Branches

1953
in

(since

rates will

PHILADELPHIA,

stock

company's preferred stcok compared with $11.60
year 1951.
The reduction of the Canadian cor¬

regulatory situation

Regulation is

actual

Firm

this

1952

that

on

electric

two

in

Roy Coffin to Be
Fahnestock Partner;

of

sue

000

W. E.

Tague Joins
Edgar, Ricker Co.: v

They have had

in G. H. Walk¬
er

29
is¬

from the remarks made by President Grauer in a recent talk be¬
fore the New York Society of
Security Analysts.

Reinholdt &
H.

on

seems

calendar

The

Mr.

the past was a

Robert

the

Ex¬

what the

level of business will be for
Year

earned

b ers of

partner

pointed out

•that the road has had an increase
••an bad order cars ever since the

natural

per

has been made available, but a substantial
indicated by the report of the Electric Com¬
pany for the 12 months ended July 31, 1952, which showed $13.80

North

67

general repairs
While the per¬

was

estimate for

no

Matthews in

main-

lay 100 miles.
The
freight car condition is good, with
-less - than
4%%
undergoing or
-at

earnings gain

changes.

point

to

or

$2.35

d

Stock

not

Last year the company laid
JSniles of
rail.
This
year
it

awaiting heavy

has

Columbia Power System)

in the usual meaning of
%he term, but that the work should
I'be done this year.

be raised in the five

to $64 million, or an average of $13 million per year (com¬
pared with $22 million yearly in the past five years).
The next common stock offering will
probably be made by a

years

H.

and

"tenance

planned

this

porate income tax rate from 52% to 47%

was

deferred

proposed expenditure of $31

a

will reduce the amount of cash required to

Eighth Street,

also

He stressed the

was

with

Company recently did some senior financ¬
together with depreciation and retained earnings

the New York

repairing that should have

this

and

1954

Electric

m e m

{•possible to do all the track work
'been done.

ing,

will be

year

The

Columbia Power A stock, probably late in

407

•pointed out that due to inability

»;and

peak

year

He

'<%o obtain sufficient steel it

available)' in the next five years, largely for expansion.

sale of British

e

Jan.
new

Central RR. series 36,1 3%
equipment trust certificates, ma¬

connection

early in 1954.

t

a

bids

until
on-a

nois

6

1%

wjth

i

re-

Halsey, Stuart & Co. Inc. on
Jan. 23 offered $6,000,000 of Illi¬

30%

__

such

last

year.

Passenger Transit
Freight Transit

8

DempsfiyTegeler & Co.,

:gross revenues will be down about

■3%

55%

j_

asso-

c

The management has made
.?£ts plans and set up its preliminary

as

this

The

Robert

—

11 y

n

questing

about

explains the decline in the depreciation re¬
Neverthless the management expects to spend about $126
mililon (or $136 million if substantial amounts of natural
gas

Matthews

Year'.

are

obtained

were

The System has been
pursuing a modernization program, now
largely completed (the retirement of about 20% of the property

(Special to The Financial Chronicle)

traffic in 1953 than in 1952,

'budget

revenues

Miscellaneous

Dempsey-Tegeler

{particularly in the last half of the

'•there

estimated

Gas

million.

prospects for the coming
He
visualized
somewhat

Year.

1952

Electric

Robert H. Matthews

LOUIS,

cur-

sealed

in the

serve).

ST.

re

Dis¬

is

by

1

With

The

about: 34%

was

rapid, comparing with that of California

System's

become

In speaking at a lunch

ton.

trict

follows:

as

2.6

•of the New York

production in British Columbia

is

no

on

railway

system of
Greater Bos¬

past decade.

0.6 points to 34.7%, and in Decem¬

{points.

1949

ex¬

virtually

shares.

In

population, since much of the territory is sparsely

has been very

area

quarters, the dis¬

had

Authority, the
street

manufacturing, 20% forestry, 9% construction, 9% mining and
7% agriculture, with the balance miscellaneous. Growth of the

ysts that the day of more liberal
distributions is coming

for

script" under Frank Bowker.

dividend
closer.

body

Administration,

were
pared notable that when directors failed
In part the cut in ex- to increase the quarterly distribu¬

-transportation costs.
a

1952

financing

Transit

have 65% of the

maturities will remain heavy but
capital needs for additions and

expenses

iimportant, however,
as

were

revenues

$2 million

:moderately.

tenance

five-for-one split

a

Gross

the

Metropol¬

Columbia is larger than
Texas, with forests, fishing,
products, farms and ranches, together with major gas
supplies and possibly oil. The cities of Vancouver and Victoria
mineral

earnings of $8.96 compared with
$8.79 earned in 1951. The magni¬ betterments to property and equip¬
tude
of
the
property's earning ment have presumably passed their
ipower can be recognized when it peak. Therefore, there is growing
i*s realized that the present stock confidence among railroad anal¬
lis the result of

the
itan

way

The

notes.

spurt.

a

(hereafter "The Electric Company"). This company has a
large
capitalization, held by the public—about $131 million 1st
mortgage bonds ranging from 3%.% to 4%%; and some $43 million
preferred stock. The Electric Company in turn controls The Rail¬

Meanwhile, the financial picture
improving. Late last year the

is

maturing $375,000
through Jan. 29, 1955, and to bol¬
the ster working capital.
Equipment

share

common

estimate the

ings potentialities somewhat

the

and

higher taxes net income for
Year

a

to

enjoyed

area

Murray Now ]

Boston Dish Trustee

By OWEN ELY

One of the first of the

41

&

Mortgage

Co., 26y2 North Minnesota Street.

MILWAUKEE, Wis.—Joseph T.
Johnson,
President
of
Edgar,
Ricker

Street,

&

Co., 207 East Michigan
general
distributor
for

Wisconsin

Investment

Company,

has announced the appointment of
W.
Edward Tague
as
wholesale

representative
fund's shares.
many years

eral

of

this

mutual

Mr. Tague has had

experience in the gen¬

investment

and

mutual

fund

field, and has recently been

asso¬

ciated with John J. O'Brien & Co.;

and Cruttenden &

Co,

'<*• *

42

he Commercial and Financial Chronicle %

(502)

Continued from page

II, is once
England.

15

K

America's Sbength
economically stronger free world as well as make progressively
could well be the most powerful better products available.

does

white

the

that

Told

shroud.

half-hearted

be

for peace. It would unFortunately for America this women, she suggested somewhat
dermine the Communist cold-war kind of progress is going on in wistfully that she would like to

almost every field of production,
In this still-youthful era of teching in an economic tailspin.
nical development, we have seen
It is gratifying to see Detroit, such
astounding new industries
through its Board of Commerce, c0™e lnt.° being as television and
advocating

benefi-

far-sighted

a

None

cial foreign trade program.
of

courts uncontrolled importa-

us

tion

of goods that would
do

extent

destroy

But to what

American industries

industries

our

gener-

artificial
artificial suooorts?
supports.
Our businesses have grown strong,
rpfmirp
require

allv
ally

not because of

protection, but be¬
cause of competition and its cease¬
less spur to increased productiv¬

and

production

make

to

equipment, Americans have

their

little to fear from the best efforts
of

'4 V

As stated b,y the

foreign labor.

Detroit Board of Commerce: "Pro-

ductivity a^ well as wages
mines

the

Threshold

On

of

v^tment

a

Em-

'in

result of heavv in-

equfpment|-took

with

tive

labor

other

the tools

and

do

to

road in the recent

people endowed with common
and a native ability to work
for a common purpose.
This is
our greater sinew.
a

sense

Roosevelt

Theodore
"There is

our American way of getting
things done has performed almost

should

miracles of achievement.

should

is

fear the

said:

future, but there
reason
why we
seriously neither

good

every

once

good reason why we

no

it

face

With

not

of

men

only

economic

our

staying

flinching

solve

to

purpose

them

threshold

the

on

are

tQQ]s

^

direct

and

of-

processes

Today

—workers,

.

of

as never

Securities Salesman's Corner

before we need

the best efforts of all three groups
owners

By JOHN BUTTON

and managers

production team that will

a

WJC-i.

new

make sui,e our way of living will
technological revolutions.
Jusjt thrive.
jet engines and atomic
Materially, all that we have is..
power are still in their infancy.
the result of our combined efforts

BUILDING AN INVESTMENT CLIENTELE

remember:

The world's first commercial coal-

chemical plant, I
gone
into operation,

has

iearrlj

whole

a

new

'field

of

w^01®. new lieid ol

openlPg a

to make

^

groups

ajr

jn

(Article 4—Part 2)
"Talks Before Investor Groups

work count for more

our

and better goods

In

that is the real meaning.

we

every

incentive to do this job

well.

conditioning, year-round

home climate control is available.

community there

every

are

And by keeping organizations that number among

f productivity.

Develop Qualified

Prospects and Leads"

for more people.

~ade Zers
ar: everlastingly and vigorously at it
EdTnfng'the hoteonformanu! mutual benefits. We have
we ca" lncrease and extend its

and
almost daily
machinery, and improved techniques of production, are competi- |acturers of industrial textiles.
throughout the world.

our

even

understanding hiding from ourselves the gravity
heading our government, business of the problems before us, nor
a. and labor
together should have a fearing to approach, these prob¬
with
the
unbending, un¬
very real opportunity to strengthen lems

Despite the fact that an over-

enjoy, but —in

,.

we

Detroit and Michigan on*eni'ne
as

have a white shroud with just
little fringe of lavender.

New

deter- hydrogenation

labor.

of

value

ployees of
inHmtries

takenly in

production.

Technological Revolutions
.

of

superiority

the

men

of the machine.

masters

These things we now
of

that,

out

country strong. We have

our

factories

whelming proportion of all work power but our economic, as well aright."
done in our American manufac- as social progress.
I am sure we shall find right
radl0» air conditioning and the turing industries is done by apWorking together to preserve answers to our problems, for the
fabulous new synthetic materials, piying mechanical energy, full the freedoms and incentives that future of Our country certainly is
to mentlon only a few. Products productivity is achieved only have made possible our productiv¬ clearly mirrored in the great
of these ne.w industnes have been through the cooperative efforts of ity advances of the past, we can deeds of its past.
br<>ught within the reach of mil- the people who provide the buildlions because we have learned to ings an(j machines, who operate
master machines for economical these facilities, and Who plan and'

ity.
Because

point

the

the this job- More important, we have

ladies past,

for maiden

shrouds were

and the lavender one for married

weapon

strategy which counts on the capitalism of the free world collaps-

It keep

satisfy this situation to

not

with
brakes on, our nation has been
about technological progress.
It
able to out-produce all the Com¬
reminds me of the little old spin¬
munist world combined.
ster I hear about recently.
She
Despite the obstacles and hin¬
went to the undertaker to select
for herself a casket
and
burial drances that have been placed mis¬
cannot

You

A Balance Sheet ol

to pay the bill.

outproducing vide the dollars

more

Thursday, January 29, 1953

t,.

Nation Built Up By Incentives

It is because of the rise in pro-

in¬

their members many who are

he offered the

suggestion that any

desired

who

one

information

obtain

to

the

on

more

subject could
handy return

learning about sound do so by sending a
principles. There are card to his firm. These cards were
the various business organizations placed on a table where his audi¬
such as Rotary, Kiwanis, etc., pro¬ ence could conveniently procure
j
<
fessional women's clubs, medical them.
in

terested

investment

Air conditioning's benefits in con¬
Our country from the start has and dental
societies, trade associa¬
Many people came up to talk
earnings fort and health and new job op- been built on incentives. Man's
tions, church organizations and with him after the address. Sev¬
gone up portunities
will be widely ex- incentive to profit himself and his
many others.
Their members are eral asked him for his card. There
over the-years.
Today's worker, tended in the years ahead. Year- family underlies our unique enconstantly seeking qualified speak¬ is no doubt in my mind that this
using modern machines and tools, round air conditioning has grown terDHS€ svstem in America,
ers who can come before them and
type of contact can produce some
produces about 20 times as much most rapidly in the last seven ierpnse sysiem
And that profit motive deserves inform them, as well as offer an
exceptional business if it is con¬
as
he could turn out if he de- years; its biggest expansion lies
credit for most of the' material entertaining evening or luncheon tinued and pursued
intelligently.
pended upon his physical Strength ahead. The house of the future
goods we enjoy today. American Ijour.
These people are usually But the talk must be worthwhile,
alone. Without machines we can may be built around a central air
industry has expanded and in- mature in their outlook and many and the man who makes it must
produce t)4 more than our grand- conditioning unit which will make
, i(
Droductivitv. tools have will
qualify for membership in not only have a message, but know
fathers could. And the reason for possible so many construction sav- ^easedit? Pw"
,v,nroveH
and
the higher income brackets. Their how to put it across.

that the real
people have

ductivity
all

of

our

worker's

American

the

produc-

teity being so much higher than

within'reach

?'

of

c°™'f?"™g within reach of
almost all nome builders.

competitive
labor
abroad
is
largely the excellence of his tools
As a result of inventiveness and
and equipment. These are being new techniques, the automobile of
improved all the time. American the future will incorporate imbusiness traditionally has been provements just as
startling as
its tools as soon those of the past, which we now
Our
as better machines come along.
It take so much for granted.
u
rv"~
does not wait for machines and engineers and research men tell
me than
engines will be smaller
processes to wear out before dis¬
and more rugged and will produce
placing them.
willing to

scrap

All

our

a

result

as

of

this

American

characteristic.

dustrial
seen

benefited

people have

We

in¬

have

it transform Detroit into the

automobile

capital of the world.
The early pioneers in the automo¬
bile business adopted the auto¬
mobile from Europe where it was
born.
In the space of 60 years
this young American industry de¬
veloped productivity to such a
degree that it built well over 100,000,000 cars and trucks. It has de¬
veloped a wholly new civilization
and put it on wheels.
As

than

es

J2

known

telf

of

this

of

result

a

more

a

enterorise

million

bosi-

tods

manv

never

about

sons

It
it

one

in every

is
is

of

means

like

because of the auto indusBecause ot tne auto indus

automatic

devices

All

these

advances

are

in

the

traditionally

American way of
progress. First the idea for a new
product, then its development in
laboratory and factory, and then
its machine production in high
volume

so

as

to

reach

the

many

This way to

increased produc¬
tivity through improved machines

is the way to meet the expanding
tenements of a rapidly increas¬
ing national Population. Each
it is going up by about two

qUarter million persons, and
thafs like adding a state each
year wjth the population of Iowa,
a

,

Ai0re

>

,

mul¬

and better products
within

brought

of all

t,ecause business

years

has

m'

frit

able

to

,

We have taken today only a
gllmpfe+ atour nation m the has
what Productivity
meant to

past

J1 1.t. f?ills t0 keep up
the inflated iSnS and t£i HWn
dollar La the dispro- S7 productivity parade. The wlth
the
penportionate tax load that has been alty of technological obsolesence
placed on automobiles.
This in- and industrial short sightedness is

of lt backthe busjness to increase pro-'

ductivity

of World War
+

n

stalled

?u

tt

ability to

earn a

profit'
the

three^new engine

work,

giant machine

of

many

machines.
and use

As

lesser
the

to_do the
individual

development

of such'automatic

proc-

they will create demand for new and higher skills
esses increase




machines

and

tools

many

to discuss such

<1

;

Inspiring Talk

an

taken

cost

of

keeping

The

our

be

very

meet.. As the size of this financial

If

you

in

your

proach. If you will look at the
economic system subject from the viewpoint of the
has increased it has emphasized average man, of his earning and
at the same time the need
to his striving, his endeavors to pro¬
prune every unnecessary item of tect his family and to take care of
cost from our government:over¬ his obligations in later years, you
head.
can visualize a completely differ¬
;
In the last seven years the Fed¬ ent situation than if you only dis¬
eral government has taken three cussed * investment procedures in
our

upon

in taxes;

dollars
in

all

own

billion dollars their cold

than

more

the

Each of
our

seven

us

was

preceding
as

collected

157

years.

individuals and

businesses

has

felt

in

the amount of our own com-

Danv

a

already they

time that is spent in the col-

single year. That is equal to the
work Of 80 full time employees'.

THEY

CAN

TO

DO

people who may become good
Again, in planning these
meetings there should'be a def¬

clients.

inite

of additional

offer

informa¬

tion, and a method of making it
easy for those in your audience to
request it; such as the suggested

abstract

make

return card that can be mailed to
their the firm's office for their attention;

future more secure.
They don't
care much about how the tools are

fail to restrain incentive and op-

material for

our

As

no

They want to be told the

them.

for

method

them

is

in

language

that

I
on

once

they
'

heard

a

very

be

can

•

hot

cipal,

as

once

did

I

hear

stocks,

such

preferred

from

,

will

However, it

discover

than

if

advertising to

will

be

you

confine

a general cov*
-

or

A. Mackenzie With

investment

situation

another's.
oh

develop.

than likely that the pros¬

you.

(Continued Next Week)

Alexander
come

is dif¬

He

special- cases:

used

»

Bitier, Herrick Co.

have

plan for your business. He .developed the idea that each per¬
individual

to the exact

erage of your market.

a

illustrations

as

business that you will

par

money just the same as you

son's

to

approach,
your

value, etc.
This speaker started Off with a
discussion of the importance of

ferent

more

indenture, interest, prin¬

convertibles,

common

of

investment minded if you use this

moving talk

the subject of "How to Estab¬
a Sound Investment Program,"

and

able

pects

lish

words

plans

by which you can de¬

termine in advance
amount of

understand.

these

of

any

meeting qualified people, there is

facts, yet they also want to have
it made simple and laid before

Today
when progressive tax
having a plan for your
rates take up to 91% of personal

were

conquered nation of World War

have a qualified speaker
organization there is no
to create the interest

way

of

the made but what they can do with

weight of this tax load. Recently
I came across an example of what
it means in manpower as well as
dollars for a company to perform
its job as a tax collector for the
government. I received a report
o—
0n

unrelated

and

better

that is fifty-three billion reality. People want to know what

Mackenzie

New

has

be¬

associated with Butler, Her-r

rick & Marshall,
;

He ,New

gave some sound rules for success.
about a very real hurdle in the way of
10 years behind the times. The' continuing improvement of our He sold a comprehendible idea to
Germans, forced ,to start from productive machine. They hinder his audience. At bo time did he
scratch, have equipped their own .it today, right at a time when, our
try to £ell a particular security or
war-damaged factories, with the nation must look to that same
latest type tools. Today Germany, productive power to furnish the & mutual fund. He-just sold one

tools but

important subjects

"The Importance of Making A

as

Develop

Will"; "The Reason Why Estate
subject of investment can Planning Is Necessary for Family
dull or it can become a. Protection," and other such re¬
country militarily strong.
That
cost is a paramount obligation for living, dramatic and inspiring sub¬ lated subjects that are a part Of
every section of our economy to ject. It all depends upon your ap¬ successful * investment procedure.
financial

,m" from Germany under terms of the portunity,
•
: ' •'
produc- reparation treaty. They were good
Unreasonably high taxes--create

tion. lines which in effect substitute one

with

message,

open

,

It is this

#

ex-

will

that in the final analysis pays

a heavy one.
income and as much as 82% of the
fAfter the war the British re- top dollar earned by out most
Smce eQhiPPed many of their plants successful companies; they can't

II, for

own compfny

real

a

bring them who would qualify as investors, is
your
influence to
arrange
with
the i banks,
doors for your women's clubs, or fraternal orders

firm.

f

w

Arranging for Meetings

a' not done so. If you can

and to turn part

h

Sffffn

,4'

many

others may be on the threshold of
Another
excellent. method
of
the becoming investors but as yet have
coming before groups of people

earn

ihui

nm^rp«

in

has already asserted itself—

cases

reach

over

preducZnTfts 'X'tonTe fort *nd ,What its continued improve- fS and payment of the^Slto ^eineer cost out of production
CaD T®"
0ur fut"re' B4 titude of taxes that are siphoned
SSnvVi nlJ ntfl
wSt knovt *romthe experience of off the automobile industry, and it
lalL
nrpwpf Lr J
?thersuwhat ^an happen to a coun- totaled 160,862 man hours in a
thnn

securities

in

interest

.

'

been

hundred and

instead of the few.

and

*
*

strain

un¬

anything available today.

seven per-

employed in this country.

even more econom¬

ical power output. This power will
be transmitted to the wheels by

™year

before,/were brought into
Employment was pro-

vided for about 9,000,000 people,
or

increased and

replaced^wages haveP been

30 Broad Street,

York City, members of the

York

Stock Exchange and

associate members American Stock

Exchange.
Mr.

...

Mackenzie

with

was'

formerly
Rollins

&

Sons, Inc., and his own firm

of

associated

E.

H.

defense and pro- good idea.-Have a good plan. Then •Mackenzie & Co:, Inc.

Volume 177

Number 5190

.

.

.

The Commercial and Financial Chronicle

(503)

Continued

from

13

page

basis.
are

Operations of the company

presently limited to the States

of
Washington,
Oregon,
Cali¬
fornia, Nevada, Utah and Arizona.

Banks Should Build

On the basis of the amount of
counts

Up Theii Net Worth
institutions

facing still mounting

costs.

our

Beginning
shortly
after
year 1929, the reluctance of
tomers
and
on

of

banks

the

to

owe

cus-

money,

of

interest

the prime

seem to me

which made it possible for

reasons

the government to borrow

money

cheaply. I feel that they made
very clever use of a naturally low

so

lnieresi
interest

they
the

market' That in the main
maiKei.
rnai, in ine main,

lender

tl,
the

i

was

in

mind of wanting

dIlt;
of

f

frame

to coax the bor-

rower—hence, low interest
This leads

the

government

not the

but

the

in

growth

borrowing

(

Amp riran

J tie

c,

saies

finance business
and

Are

was

probably as marked
the
top echelon of

and
and

and
an a

money
money

posed

of

dustrial

dous

of

men

what

has

by
a

continu¬

V.

cisco

click.

&

and

new

continually,
encour¬
of failure and

in

should

Technical

produce

mechanization, and it
Liicti
that

unless
uiucsb

down

the

The
pace

risks
are
great
is frequently dis-

land,

corporations
borrow substantially.

have

creased

net

deposits.
to

there
of

our

was

to

in

had
had

over

u.o

in

$3 billion
and by

circulation,
increased
increased

to
to

$30 billion—10 times

over

for in-

relation

economy,

little

a

money

lfl52 .it
1952 .it

in

I wonder how many of
realize what has hap-

fully

pened

great need

worth

a
a

little

as

much

currency
needed .in the public
pocket ,and the business and bank
cash

has

the-

San

American

System
vigorous and

been -kept

lion

Electricity -kw. hours
from 20 billion in 1910 to

went up

397 billion in 1950.

Think of how

much

more power is behind
every
pair of hands in this country!

...

Banks Have Obligation to Build

Up Net Worth

,

,

t

It is my

so

heart

to

of

—

the

Hence,

speak

the

—

Obviouslyrwe

have

are

skills, if

^

"

1

.

we

fulfill
,

role

de't

hac.

moral

confi_

the

ty..

„

As

J'

11

r

i'

vr

V,

Norraan

*/r

D*

*

H.

was

Tipp.

expansion, a period of sustained expansion which in relative
terms, has, as far as I know, not
been exceeded anywhere in mod¬
times."

ern

Foremost

rights of prpperty
to government

are

anterior

yond the reach of popular

closs,

ma¬

Parker

perity

— is
the exploitation
of
Western Canada's fast moving oil

and

industry

gas

As

result

a

launched

laa£.

in

within

the

worth
rule

to

of

Are

we

10

for

1

deposits

ratio

of

net

being a fair,
thumb, factor of safety?
willing to go ahead and
as

the matter off with the state-

pass

ment

that

ownership of govhas
completely
upset the old standards of ratio?
our

ernment

bonds

Have

let

we

.

"We

it

owe

to

our-

selves_ deceive us about the burden of the government

rWe

all

know

net

between

that

worth

debt?
the

and

spread

jn the banks of the country today
is very, very wide. I cannot urge
too
strongly that banks, as we
enter this

of

having

great y
changed administrative body in
Washington, fight for earnings, for

retained

era

earnings, and

far better ratio

net worth to

You

are

part

of

family, have
the power

a

build up a

the average

of

deposits.

all familiar with indus-

teral growth.
tlal

on

Banks, as an essenour

an

Each

worth

see

that

and

keeps in step with the unbe-

net




grows,

Plan

at

and

$10

preferred

vertible

into

stock

mon

into

and

wnHome

basic oil pipeline network, linking Canada's western oil fields
with markets from the Pacific
a

coast to

far east

as

Toronto—a

as

2,500 mile stretch. The basic pat-

tem *S dS*ignf for rapid exPanr
S10n as the oil reserves, markets
achievements

in

ency,

of

oil

balance,

within

four

some 300

Canadian,

or

fieid

new-Canadian

tne

jn

1952

i,.

.

about

.

$50

mi.

.

«r

than in 1951.

oil

million
aaa

«««

The $5,000,000spending was 20 times
rate prevailing prior to the
Leduc
discovery of
1947 — the
more

that

set

western boom.

ing

is

to

Jan.
of

share

pr0Ceeds

as

corvertible
be

added

the

Redpath,

registered

representa-

preferred

t0 the

®i?i°»f Redpath, ^-CThi"ll°.S„SJ
&
Mr. Lewry for

1957

of

For

a

of

the

development of its
and

by

the

growth,

own

of

receivables

of its business.

in

the

closs,

consumer

originating

with

retail

dealers in automobiles, household
furniture
and
appliances
other personal property and
on

&

Redpath

since

a

and
mer-

time payment

+

+

i

°* 435,000 units

were

™

i^nno ^ 1952—2815'000
Parf and 1.59,000 commercial ve-

hides, an increase of 20,000 umts
°.v®r the previous year. Commer-

increast represented most of

the

me increase.

steady delivery of defense orders
was maintained, "although these

accounted for only

a very small

ing out of Canada's industrial

in

a new top

>

LOS

M.

has

the

staff

621

been

added

& Bradstreet of Canada,

Ltd.

ports

at

South Spring

of Hill

0£ thie Los

cisco

Richards

&

Co.,
Street, members
Angeles and San Fran-

Stock

Exchanges.

"3
third
*}£;^ai9d1^av e^n ton the
rec0rd-breakine

Nail™*!

,

4144500 000

<$)000 above
than

levels throughout the pre-ChristDoiiar

Assistant Cashier.
to

the

bank's

one-third

in

of

all

all

the

vious

steel
dent

a

*

review

of

the

Canadian

industry, H. G. Hilton, Presiof
the
Steel
Company of

Canada

sets

production
tons.

the

the Dominion's

at

a

record

steel

3,720,000

With net imports established

1,600,000 tons, Canadian consumption reached about 5,320,000

Department.

is assigned

Personal
.

,

for

year.

the

was

entire

estimated

period in preLong holiday week-

ends did little to affect the normal
seasonal demand in most
Types ol

goods ranging through all gift articles, staple household require-

ments, foodstuffs and in
instances,
the
so-called
Higher individual

certain

luxury
incomes
easier
easier

Cred" termS P'US aVailabiUty of
reasonably
were

priced

merchandise

factors in this trend. .De-

mand and chain stores

as

well

as

received a
£rade> Blin

Bradstreet reports.

NASD District 13
Elects Officers
At the
trict

being developed.
Credit
The heavy consumption of steel
by Canadian industries is an indi-

annual

Mo.

meeting of Dis¬

13

Committee

Jhfq<_^a~

years

Annnlnb

He

volume

month of December
jn advance of same

14-

or

the1951 record and

made

re-

high

succes-

tons, said Mr. Hilton. This was a
/\ppoinis
new
bigb figure> reflecting the
The National City Bank of New
degree of activity in all Canadian
York has announced the appoint- enterprises,
and
the
extent
to
ment rof Albert V. Silva as an which the resources
of Canada are
TiHr

buying

SI 288 000 000

at

,v

consumer

mas and New Year weeks,

&

cj 000 000 000 for the

In
to

j

wSSJte'S Spedalty shops again
share
the totaj

prior to 1930.

ANGELES, Calif.—Ernest

Blackburn

•

(Canada) estimates in its
r^v}ew numoer.

ex-

pansion, retail trade in Canada
gives promise of maintaining the
high level attained in 1952. Dun

lines.

volume and in divideclining metal

prices it may also reach

payments

finance

degree,
purchasing retail installment sales

chandise sold

Parker

(Special to Tm: Financial Chronicle)

;

business,
making small loans to individual

too-substan-

a

new-ear price tag.

year 1952, was a year of and savings coupled with
iuoz was a year 01 ana savings coupled with

Sst^ showed^new1' hifhs

more

usual

borrowers and, to a lesser

to more than $400

or

eed

Hill Richards Adds

addi-

Budget Finance Plan is engaged
in the

*

$275

it

$350 million

Mr

1946

and

pany,to provide additional funds
to lend to borrowers and to putcourse

for

Federal treasury."

,

...

tional offices. This expansion has
made .it necessary for the com-

chase

exceed

Associated pipeline and refinery

Miner
vea'rs

three

oast

operations

acquisition

accounts

ever,

tia| Part of thc

with E. F. Hutton & Co. as a reg- recora waiting $i,288,uuu,uuu
reached in 1951.
istered representative.
Dividends paid by metal mines
Mr. Lee has been with Auchin-

both

expansion

the

central
buying office of Sears,
Roebuck & Co. in Chicago. Prior
to joining Sears he was associated

general funds of

substantal

reason

to

was'associated'with

year

SpaWinrwa^lnnected'wUh fhe

this

the company to provide for additional working capital. The business o£
the company has experi-

enced

a

Coffin, Betz & Co.

will

stock

In 1953 the spend-

expected

the economic climate
1421 continues favorable.

r,
Parker

common

sale

current

million if the current gas pipeline

about

f

from

the

Despite

coin-

1,

off

same time the firm an- projects get going in full blast.
nounced that William Justice Lee,
The year

coneon-

shares of

prior
one

is

share

l>/4

heavy tax load which still, how¬

About 18% of over-all production was sold in export markets,
self-suffici- where sales rose substantially. A

years.

share.

per

re-

strictions which prevailed at this
inSar' £ ?■' ^ef.ore ml.d"
J
' a
9^° re(?uction m excise
lax brought partial Relief from the

emergencies warrant. Thus the
prospects are bright for Canada's
or

At the

Lester,

^

&

tives.

,

stock thereafter.

whole industrial "contracts

obligation, beyond

of words to describe, to

their

Finance

by

deposits

dpveinnmpntq

months completion of

nine

net Sp?fhS|e°nr!ferPred Jtoekof
the orSa,n;?ation as a registered producti0n
.1,"° ™veihhle preferred stock of Budeet representative.
Budget
aenas.

card

of

l!)52 there

in 1952 there will come

.

,

Finance Plan Pfd, Stk,
Ca

year.

.,

^°1°: are the credit

'

11 1S to be hoped that 1953 will

year

spending boosted the total 1952 in.analyst, and Edward C. Spalding, vestment to more than $310 milrailroad and merchandising spe- lion and is also
expected to boost
cialist, are now associated with the 1953 investment to at least
them

Reynolds^ &

m0nths of last

.J

„

.G?

.

?^e an even greater relaxation of
Fted®**al levies, so .that buying
P®wer may be restored to thoufands
Canadians who need motar cars*
Canadians who purchased new motor vehicles in 1952
contributed $135 million to the

Chestnut
Street, announce that
Thomas M. Lewry, 3rd, investment

Budget
T

in the earl

and

PHILADELPHIA, Pa.—Auchin- million,

and morally be¬

Wortlf'°Afte°r a"ll theP'ound

adequate as our economy
gallops forward. Should we dis-

de-

the production

are

of

one that promises a
strong impelling force for the Dominion's pros-

velopments of the last

strike

Auchincioss, Parker Go.

jorities.""

money

must be

Canada's

among

per-week

3 With PhiEa. Office

economic docu¬
ment
based
upon
the concept
that
the
fundamental
private
an

Bankers Offer

worth of the banks of the country

pe-

the

the Constitution

much

by curtailed supcomponents, particularly
steel, which caused a lag in output

em-

riocl of

mem

'

essentially

of the

the

f

economy.; Ryons & Co. and associates yesafter a tour of dutv with the Armv
tremendous terday
(Jan. 28) offered 150,000 ,o{ the United
States, has rejoined

a

*uck> good

,

government—we have
barked upon a trenmendous

Already

H.

August M..Amend, Fred N. Bei.y,
P..1Pnherlv and
—^e J.
Coberly; and Jnsrnh
Joseph

A.

Beard commented about the Con¬

stitution:

nil

°>i

good

m'i

a

Charles

Dr.

are

liir

is

t S
W
r?
American and' European of firms percentage of overall production,
1 h "an'hItmfrnhave poured over $250 million inLargely as4a result of the in?daiHaad Alexander, Jr.; Clifford -to jand exploration and develop- creased individual .incomes aris-

amazing American

our

T

M

9'

passoV

to'* wind ward—the Ten Command^a

11

1

n

I

and

this nation? We have two anchors

Constitution.

i

firm

Fleming;^ H. P. Henriques,

t

welLbeing of the people of

ments, and

i

X

of indus-

mental

•

l

Lnfi^hm w°h People—and perhaps I should be allowed to say,

New
Street,

?en
H.uckle^

r*

cotr

major roie in improving the hap-

"piness," comforts'and

the

265

JMorrtian
Harmoni hdward, G- McEneaney; Edmund W.
Tabell; Fred W. Young, Jr.; H. R.
Dernckson; R. W. Englander, Jr.;

vital

have

to

n

??'

the

Wall

in

700.

at

jwiRia^n'V^rfecoli*
rTciscoii,

propa

T,yfeel

and

continue

will

as

imnortant

m^hinerv

,

whirh

able

are

our

nctniindinfflv

is

5?°*^
?j/ec5

role

a

iIt

r«

♦

35

a

Switzer-

about

Street;

partners

hi

in

of

as

effect

situation

brighter outlook for the Canadian
auto industry. In a recent
public
statement,
William
A.
Wecker,

plies

Exchange

office

at

irLi

ahead of them which will call for

erly to

p

entering into
era in Wash-

an
astounding new
ington and the banks have

national

they

office
staff

a

office

Yiu

.

opinion that the banks,

because of their trustee capacity,
are

h

"In sum,

now.

name

member of

a

Stock

Francisco

General

strong."

drawers.

Bank deposits went up from $41
billion in 1920 to over $170 bil¬
■,

and

York

me

uunic
come

Fran¬

the

principal stock and
exchanges. It has 36

Montgomery

substantially,

Banks

us

taxes
lcaacs

other

commodity

which

rare

strikes

until
until

and
cuiu

will need to
:

increased

greatly

York

appointingrbut the results pro¬
vide the stepping stones through

nation

skills

San

representative

confident

life.

in
1941

benefits.

in¬

they act wisely, as I feel
they will, it should be¬
get confidence in our amazing in¬

In

business, is

New

and

times

Walston
1932.

improved

°| Firl?ncS,' stained in
"Gone today
Ajff, York, By a fortunate curbs imposed
Y
New v°r£

nf

Feb

ofliees coast to coast, as well

and

about

great

effective

^
One

materials.

raw

prospects for
year. In the words of President of the General Motors of
Douglas C. Abbott, Canada's able
Canada, remarked:

the coming

Goodwin.

the

As

dustrial

every corner of the vast Do-

continued favorable

9

supported fully for its long term

com¬

remarkable

this

from

changed to Walston, Hoffman
The firm, which is
of the larger firms in the se~

was

Research must be

ways.

aged

for

Almost oil reports onmmcr
Almost all ronnrts coming

trends

minion, and from all segments of
industry and commerce, reveal

that

C.
in

one

search

fostered

coun¬

experience

made

trends.

-

ernities

better

skills, and with tremen¬

practical

,the

Walston & Co. is the name un¬
der which the firm was founded

That the future depends on the

govern¬

Cabinet

ever seen—a

the

in

1953' the name of the firm Will
h. .LanMj
be changed to Wd(!tnn & rn
Walston Xr Co.

credit
creatt

ing philosophy, conceived
in
recognition of the basic truth—

change

a

mental management as this

try has

in

thirtieth

P'aS!n^f Good*
vV Piston, Hoffman & ^Cnlwfvv in,

Explosion

"Research must be

1953

year

with

in

the

UIJaLm

announces

Pont, phrased it:

Reduced

the

enter

now

about

Vis

There seems to be no let-up in cation of the trend toward greater
°Ptimisra regarding Canada's ex- manufacturing output, which, as
'.PandinS economy, despite the re- in the United States has been
cent reversals in stock market hampered by restrictions on use of

Change Name

L

successful

We

.

West

By WILLIAM J. McKAY

com¬

!0 WaiSIOSl & UOr

Fxnlosion "

American

Rankino
tsanKing

Corporations Will Borrow More,

1

largest

operating in the small loan

Firm io

necd practical research.
As Dr.
Crawford H. Greenewalt, of du

open

Taxes

31,

is believed to

tenth

Far

present simply astounding mode
of life, aptly termed by Mx. Turck

market, and
then conditions, were the causes.

Unless

the

and

American economy.

colossal. The banking structure
should have a larger "net worth'
base.
Industry has accomplished our

of low interest rates,

cause

that

rates.

the opinion that

to

me

the company

about

Canadian Securities

ac¬

Oct.

on

The year 1907 could be defined largest in this business,
as a "bank panic," and 1929 was entire United States.
characterized as a "bank panic."
Our position of trust is simply.,

following the tide, and

were

fantastic

and

outstanding

^

elimination

deposits,

the

1952,
be

pany

lievable

43

tionai Associatian °* ^ecunties

Dealers,
Joseph S. Nye,
■

„

*^)aa£,c*,
Mlller & Co
was

elected

Chairman
for
G

1953.
e or

g e E.

.

tueber was ap¬
P°inted Secretary
and
John J. Kelly,
Assistant Secretary to serve
period.

Joseph S. Nye

for

the

s~-re

•A

44

The Commercial and Financial Chronicle

(504)

Continued

from

folio

17

page

Thursday, January 29, 1953

...

might

Our

Reporter
By JOHN T.

Government

The

Governments

on
seems

have

to

well

with

Secre¬
tary of the Treasury Humphrey, that the Feb. 15 maturity of
1%% certificates would be refunded with a one-year obligation
as well as a five-or-six-year maturity.
It had been rumored for
sometime that the Treasury would make a split offering to holders
of the February maturity. Although Treasury Secretary Humphrey
did not give the interest rate which the new securities will carry
(this information will be available tomorrow) the market appears
prepared for the announcement, made late last Tuesday by

to indicate that the new

will run for six years, with a

financing that

tion appears to have
-

/

•

'

r

)(

done

was

'

There had been

a

of financing the

Policy
changes in the method

ment.

ent

unfavorable develop¬

desire for a
feeling apparently had

that were look¬
departure from the old methods of debt management,

see

now

hiight be as good

issued

;

,

Harvester

International

some

7% non-callable pre¬
That preferred stock

that the Treasury is giving to hold¬

of the Feb. 15 certificates seems to cover the field very well.

callable preferred stock which is
the type currently issued, there¬

Those that must have the more liquid short-term issues can turn

fore, engages in an operation in

ers

the maturing certificates in for the new one-year
the cither hand, the

which it is "tails I lose and heads

obligation. On

appeal to those that have need for more income. The large com-

mediate term issue.

more

),

'

It is reported that the latter banks have been

'"./'J

that

'

effect

;

^

Current Investment Policy

tation

ors,

the

terrific

expansion

utilities since the war

in

public

has called

for the issuance of additional

se¬

curities in such volume as to make
it difficult for the market to ab¬
sorb all the new issues.

instances

the

capital

In many

investment

in electirc utilities since 1945 has
or exceeded the total cap¬
investment made up to that

equaled
ital

Since the ordinary investor
wishes to have a diversification in

date.

If

one

seeks the reason for this

condition, it is not too difficult
to

find.

The institutional invest-?

chiefly the life insurance
companies, have billions of dol4
ors,

lars which must be invested

an¬

nually. The life insurance com¬
panies show an increase in assets
of $4 to $5 billion a year.
With
minor exceptions these companies
must
limit
themselves
to
the-

recently sold and currently
thing and do not have the oppor-*
relatively attractive prices.
tunity to purchase equities to any
For example, the common stock
substantial: degree.
The institu¬
of the electric utilities which were
tional investor buys bonds for the*
selling at a price to yield approxi¬
reason that the traditional rabbit.
mately 4% in 1946 have been sell¬
of Uncle Remus "clumb a tree.'*
ing recently at a price to yield
The insurance; company as an in¬
from 5 lk % to 6 V2 %, the quality
voluntary purchaser of bonds has.
of the stock remaining constant.

sell at

the

.

for the inter¬

fairly heavy buyers of the February 15 maturity with this idea
.jR/mind.

do not win."

also

xnercial banks will be more interested in the near-term obligation,

institutions going

been

It is perhaps true
purchaser of the
npn-callable preferred stock, now
selling at a premium because of
created a demand which resulted
low interest rates, would have
\
For the future, investment in
in the sale of. such, bonds at prices,
done better had he purchased in
public utility stock offers attrac¬
no
the first instance common stock
longer attractive to the in¬
tion.
Savings banks and trust
dividual. In this respect there is,
of) the same corporation.
funds have been permitted, in a
a
similarity to the contrast, be¬
The tax situation also has its limited
degree, by recent legis¬

I

higher income intermediate term security will

with, the smaller out-of-town

public

equities of¬
time, if it has good financial ad¬ fered to him. For these two rea¬ tional investors. In a sense theinstitutional investors are invol¬
vice, would market such non- sons,
therefore, in the light of the
callable preferred stock. The pre¬
untary purchasers of bonds be-*traditional criteria public utilities
cause
ferred stock owner, buying the
they need to earn some¬
have

.

Refunding Deemed Attractive
The split offering or option

Measured by all traditional cri¬ in
general, .the only kind of bond
teria, the common stock issued by which an individual can now af¬

has

what the reaction will be towards a somewhat longer term

higher-coupon obligation.

Public Utility Common Stock

on a 4%
basis is worth approxi¬
purchase of bonds and mortgages,.
mately $175, the ptice at which it his
portfolio he has- not been able,
The E bonds sold by the govern-^
been selling recently.
But
taking that fact into account, to ment
are not available to institu¬
no
corporation
at the
present absorb all the new

anytime to try out the market and

as

stock

some

ferred stock.

opments. Sooner or later a break would probably have to be made,
and

common

current practice

Company, for example, years ago

that be seemingly were conscious of these devel¬

and the powers

time

-The

plenty of support because there were many people
ing for a

the

the

But

preferred stock
premium of
75 to 100% over the issue price.
But this preferred stock, issued
before the present practice
be¬
came crystallized, is not callable.

However, with a new team on the field, the

change evidently was very great. Also, this

given

which is selling at a

district that were of the opinion that

icHpver of the certificates would not be an

the

Stocks

versus

Here again one must remember
that numerous qualifications but,

of inflation, many invest¬ ity of which makes the
purchase
to get onto the industrial band of every bond in reality a spec-*
is to make the preferred stock wagon, have attempted to liqui¬ ulation if not a gamble.
I refer
date their ownership in utilities here
only to the government bond
callable at the option of the issu¬
and to shift to an investment in relative to the bond issued
by a
ing corporation. It is true that
the equities of industrials. Also,
corporation).:
there is in existence at the pres¬

government's needs. Nonetheless, there was still

mot a few in the financial

of

(To complete the picture,

owner.

general feeling in the money market

very

consumption

must exclude from this cate¬

profit

,

„

jfont; the new Administration would make

a

2V2% cou¬

also been discarded by the new group.
'
*

common

utility corporations has ford to buy, if he can afford to
selling in recent years at buy that, is the E bond issued by
gory
so-called convertible pre¬
prices very attractive to the in¬ the
Federal
Government.
No¬
ferred stock the owner of which is
vestor. Now, as in the past, the where else in the bond
category
given an opportunity under cer¬
public
utility corporation
is will he find comparable safety
tain conditions, to jump upon the
chracterized by a high degree of and
liquidity. No industrial cor¬
band
wagon
and
become
the
stability and is protected in large poration, no matter how prosper¬
owner
of common stock should
measure from the impact of com¬
ous, can offer the Security and the
this seem advisable.)
petition.
But this has always prospective payment of principal
Not only
does the preferred
been true.
There are, however, which is available to the Federal
stock
owner
in
general
have
new
factors in the present pic¬ Government
(I
pass
over
the
neither the protection of the bond
ture. First, because Cf the expec¬ question of
owner
nor
the opportunity for
inflation, the possibil¬
one

played a rather important
by the previous Administra¬

New Administration's

the

Dives.

The element of surprise which

arole in the

the

to

crumbs that fall from the table of

certificates will be 2%s, and the inter¬

mediate term obligations
pon,

the

good

equities.

Bonds

pretty

at

in

50%

IV

stock¬
holder and must content himself
relation

been

contain
to

Investment Dicta

CHIPPENDALE, JK.

market

well

present time 30
utilities

he^e.

tween the rich man and the poor

The institutional in¬

lation
to
purchase
corporation
man
in the purchase of growth,
equities. Because of the high de¬
stock.
"
/•
pany and trust funds, limited in gree of stability the public util¬
The
final; generalization ; is*,
general *o the purchase of bonds ity stock seems to be tailor-made
and
preferred stock, finds the as an investment outlet for sav¬ "keep away from, bonds" except topreferred stock worth more to ings banks and trust companies. the extent: of buying.. E bonds ml
whatever measure^ may be appro-,
it than to the individual investor. I saw a recent,
analysis indicating
This is true because under the that the mutual
savings banks in priate for the: purpose: of having;
an
tax law the institutional investor New York had
emergency fund -upon whichi
purchased utility
includes in taxable income only stock to the extent of about 60% to ca}l in;*the, evertt of: unfore¬
15%
of
its
dividend
income of all the stocks purchased .under seen contingencies.
vestor such

,

Despite the lack of certainty in the money markets, there are

as

life insurance

com¬

,

areporfes that a substantial amount of funds that are available for
investment at this time-of the year have been finding their way
into' Government Securities.

Private pension funds, according to

advices, are still interested in acquiring the longest maturities
with, price weakness.
torn

They have also been moving from short-

obligations into the higher income issues in somewhat larger

volume than has been the

laave been

more

the substantial

case

recently. Savings banks it

active in the short market
amount of money that

institutions since the turn of the year.

as

seems

whereas

include

must

has been put into these

Again, it is the out-of-town

commercial banks that have been doing most of the business that

Is being done in the intermediate and more distant maturities. It is

the

individual

investor the
income

new authorization granted rer
•centiy,.. ■ •
«
100% of income derived in the
The growth of pension funds is
form of dividends in a manner another bullish factor in utility
comparable " to
that
indicated stock. Obviously the higher the

buyers, because of

in

taxable

herein before. As in the
the

relative

value

of

case

of

rate of

earnings

on

these pension

•

v

.

*<«>

-

-

#*

i*.

Stock Offered
Public

offering of 149,500. addi¬
shares of Regal Plastic CoL

common

funds the lower is the initial, cost tional
it to the corporation making pro¬ common stock is being made by>
is vision for such pensions. If the. S. D. Fuller & Co. at a price of
ble obligations, with the 2% % of 1958, getting some attention also.
worth more to the. institutional funds are invested in gilt edge
$2 per share.;
•
The midwestern and southern banks are the leaders at the moment
investor than it is to the individ¬ bonds the corporation must set
Proceeds from the sale will- be$Bl these purchases of the bank obligations.
ual investor.
aside a sum substantiallylarger used for
J,
additionaL working capi—*
I da hot mean to say that no than would be necessary if the
■'tali for product development and;
;
Short-Term Issues in Demand
preferred stock is good. I mean fund earned 5 to 6% during the. for expansion of the company'ssimply that as such it is not a period of accrual., Recent esti¬ facilities in Kansas City, < Mo., to>
The short-term Governments are getting what is called good
good investment for the individ¬ mate indicate. that such funds meet a substantial increase ; hi
buying from sources other than the savings banks, with corpora¬
ual
It is true that individuals approach or will « in the near fu¬ business.
As of the start of 1953*.;
tions reported to be active in the acquisition of Treasury bills. The
have frequently gained from the ture approach $3 billion annually. orders on
hand exceeded $1,000,4"
The public utilities outlet would 000. Net :
large commercial banks have likewise been in the near-term marpurchase of preferred stock which,
sales : forrthe year, 1952'
because of accrued dividends or. seem to be. very attractive for totaled
-1set; in good volume, with the New York and Chicago,institutions
$832,491. Following-.the
"for other reasons, sells at a dis¬ the Utilization of such funds^
current sale, 'the company Willevidently the most important buyers among the deposit banks. If my: guess is cprrect* the in¬
tress price.
This I should call a
have. 335,500 shares ofv cornmoil •
Despite the rise in the rediscount rate, there has been no disspeculative gain which is not pe¬ vestment by saving banks arid stock
outstanding.
.
J-; >
')
feosation yet to raise the prime rate, although it is reported that
culiar to preferred stock.
trust funds and pension funds, to¬
The company is in the plastic*
qpiite a few commercial banks have had the question under some
To state my generalization in gether with the completion of the
fabrication business.
Many'Ofi its*
discussion. Nonetheless, it is believed that the
more adequate terms, I should expansion program of the utilities customers are
deposit banks are
major factors in the?;
within the next few years, other
say that no individual, under con¬
^aing to assume a waiting attitude, that is take their time about
appliance, electronics and chemi¬
ditions now prevailing, can afford things being equal, should result cal fields..
"
"asking any changes in loaning rates, at least until there is more
to buy preferred stock at the in a substantial price increase for
information available about the seasonal trend of loans and the
time of issue if, at that time, the the stock of the better placed util¬
Biggs & Moffat Opens
return flow of currency.
corporation can afford to sell such ities, But, in the eloquent ap¬
1
Biggs & Moffat has been formed
preferred stock. But the market praisal of one of my students a
few years ago, "ceteris is rarely with offices at 67 Wall
Street*
apparently has not reflected this
New York City to engage in the*
Phillips, General Partner.
The
generalization and even at the paribus
department will be managed by
securities business.
While investment is very much
present time .many corporations

seperted that these banks still have

a

.

stock to the rich and the poor,
follows that preferred
stock

liking for the recently eligi¬

,

-

,

■

,

,

«

&, 6.

Hatty* Opens
New Bend Dept.

Mr. Robert J. Southwell and will
be equipped to handle transactions
in connection with
railroad, in¬

find

it

easy

to market preferred like

a

tailor-made suit in that it

Hamilton

Managem't Adds
designed for the bumps
Phillips and Company, 44
(Special.to Ths Financial Chronicle)
dustrial, and municipal bonds. Mr. to be acceptable to the purchaser and the cavities of a framework
"Wall Street, New York City will
DENVER, Colo. —Joseph B*
Southwell has been in the invest¬ except perhaps to the institutional
on. which it is to hang, I would
expand their facilities by the es¬
Dyar has joined the staff of Ham¬
ment securities field for several purchaser.
tablishment of a Bond DepartMy generalization is, hazard the generalization that in ilton
Management
Corporation,.
imeni, it was announced by B, G, years.
cases
beware of preferred stock;
an:4nvestmerit: -port- 445 Grant Street
- - - -most
B. G.




stock

on

terms

which ought not

must be

-

Volume 177

Number 5190

..,

The Commercial and Financial Chronicle

£505)
Continued

from

individual initiative.

upon

11

page

that

sure

will

thirties

legislation
of
the
designed to check

was

price collapse, rather than to support prices at high levels. During
World War II, the farm programs
were
changed to provide price
supports at high levels to encourage production. Following the end
Of the war, the high-level price
Supports were continued.
themselves,

Farmers,

through

farm Bureau organization,
in developing a new

took the lead

farm program based upon flexible

opportunities.

The

upon

ri?In-tS
oiSSc

nh

£lfn

it

nf'

ic

from

cusservice

to

promotions

Credit

in

Department

Now

is

lnit
n

C;tAr»lr

Trnnefpr Dpnnrtmpnt

Department,

f

*

*

*

Underwriters

The
New

has

York

promotion

Co.

Trust

of three

of

the

Contributions

are

Company

tee, Savings Banks Association of

approved

disastrous national

The

flexible

i

is

gram

price
practical

York

to

troller.

an

retirement plan were
Jan. 21 by the bank's

a

vent such

recession.

pro¬

to pre¬

means

Big

is

ever

cation

greatest

check

problem

the

growth of i>ig govMany of our troubles

ernment.

during .recent
traceable

the

to

in the

crease

years

directly

are

tremendous

size of

Government., ;';The

in-

Federal

our

inflationary

spiral which has increased prices
and
destroyed
the
purchasing
value of

our

money

is

direct

a

the

will

Section

under

Revenue

165

of

Code.

inflation
to

are

by

to

stockholders

rate

of

as

Feb.

on

shares

two

a

our

dividend

completely.
Inflation
by encouraging
production, by maintaining sound
can

us

be

controlled

Federal monetary and credit
poli¬
cies, and by drastic economies de-

signed

to

balance

the

Federal

It

is

easy

to

Peter

the of the

govern¬
mental economy, and it is
easy to
shout for elimination of non-es-

*

*

;

■

(_

Smith, retired Justice
New York State Supreme

re-elected to the Board

was

on

Jan. 20

that

Smith

and

of

formerly

was

when

he

resigned
*

*

14

member of

a

become
Court.

to

Jan.

21

the

of New

George

Every governmental

ice is considered essential

H. Doscher, a trustee
Secretary to the Board

or

toward

some

by

with

active

from

the bank in

on

with

service

1948, and at the time

that

the

group.

dangerous philosophy

government

should

provide
security for all citizens,
huge
Federal
Government

threatens to destroy our
free enterprise system is a result of
now

our own

in
.

after

our

demands. If we are serious

desire to halt the

tinuing increase in the




ever con-

size

the

and

activities

branch

of

offices

the
and

Uld;? TTvf *11U

some

income
The

As

of

inflationary

over

the past two years.

This is

one of

Underwriting—

at

Written

of the

Months Ended-

June 30

Dec. 31

1952

-"

1051

S

'■

mi

$

s

50.881,479

Incurred

7,415,156

2,165,063

4.682.747

43,841,704

39,077,419

35,438,401

28,673,683

31,372,369

25,071,09#

18,03i;968

.

40,121.14#

31,161,516

Earned

Losses Incurred

41,242,482

1,301,123

Reserve

51,256,860

49,580,356

Increase in Unearned Prem.

Expenses

one

the first to pub¬

-'/<

year.

-Six

Premiums

the past two

over

show the experience of the Fidelity and Casualty Cat.

underwriting results for the

Premiums

within

favorable

a

.

indication of the underwriting trend

for each six months

lish

pressures

underwriting suggests

in 1953.

year

an

years, we

17,736(4411

15,474,721 * 15,091.25#

+

Other Profit

.As

386,873 —2.568,381

and Loss Items

Profit

be

can

or

—728

Loss

seen

-7,769,671

+ 634

+

—

1,113 '

+386,145 —2,567,747 —7.7G8.557

from

the

six months of 1952 became

first time in
was

1,723,95a
—4,933

—4,728,88#^

more

foregoing underwriting in the last

profitable

than two years.

primarily the result of

a

on

a

statutory basis for the ^

As mentioned previously this

better rate structure.

The volume of business because of higher rates has increased:

•

about 25%

that

so

even

though losses

balance has been obtained

The results achieved

are

up

somewhat,

a

better

between losses and earned premiums.

by the above

not

company may

believe, however, that the trends in

figures
cerns

neces¬

over

the next few weeks will also show
,

material

a

.

This is significant for the large fire insurance groups that have

casualty subsidiaries.
in

ficeer™et£e
and

branch

Cornwas

at^ 1st

*

earnings

on

a

They should be able to report

some

gain

consolidated basis because of the better under¬

writing in

casualty lines.

lines show

no

This would be true

even

though fire

material change from the favorable period of 1951.

The

Directors

of

the

Elmhurst

National Bank of Elmhurst, N.

Street

announce

Donald
and

of New York, announced that at
Marino

President
Fred

W.

and

was

the

M.

Director.

election

recent

Carlson
Mr.

as

Y.
of

President

Carlson

be¬

a

He succeeds Albert H.
was

elected Vice-

Comptroller,

1936

and

ent title of Assistant

and

who

of

Calif.—Robert
H. Chapin has joined the staff of
Fairman & Co., 210 West Seventh
Street, members of the Los An¬

Glos, who

was

appointed

;

at

Meeting to Chairman

Continued

on

-•

page

ANALYSIS

17 N.Y.

of

City

Bank Stocks
Will

was

be

sent

on

request

formerly with Marache, Dof-

flemyre

&

Co.

for

a

number of

years.

Laird, Bissell & Meeds
Members New York Stock Exchange
Members

120

Charles M. Bull
Charles
Prescott

49

&

geles Stock Exchange. Mr. Chapin

the, bank since

of the Board of Directors.

pres-

Comptroller.

President

the Annual

Klocke Assistant Vice-

President in addition to his

YEAR-END

LOS ANGELES,

T.

meeting of the Board of Trustees,
J.

OUR
(Special to The Financial Chronicle)

Lee,
President
of came associated with the bank in
Central Savings Bank in the City June as Executive Vice-President.

Lee

Joins Fairman Staff

*

COMPARISON

at

V

Rockefeller Plaza.

James

*

M.

&

•

evidence in the above

general throughout the industry and that other con¬

are

reporting

improvement in casualty underwriting.

Jan. 17, at his home in

60 years

serv¬

However,
many services performed by gov¬
ernment could be
provided more
economically by private enter¬
prise. In addition, we have drifted
that

casualty

revival of

a

trend

in operations

elapsed.

Th?' St ihT^rl

ment.

one

the

not be reflected

"

tfee

_j•

„

furl

future

near

We

♦

a short illness.
He of his retirement, held the post of
of age. Born in New Vice-President. He was 76 years
con+ioi
r York
City, he joined the staff of of age. Mr. Doscher had been with
the bank for over 60 years, having
tha Irvi"g in 1908 and sPaat
™'J?e if
entire business career with the risen
from
office
boy to Viceare
few,
any,
non-essential
bank.
He
was
long
identified President.
expenditures
of

was

Thus, unless there is
the

new ones,

sarily be indicative of the experience of other casualty companies.

Brooklyn, N. Y. died sud¬

on

Trust retired

died

policies and the writing of

impact of these increases will

of Trustees of The Lincoln Savings

Wood- denly

Irving
York

time lag between the granting of higher
rates,

a

until almost two years have

a

haven, Long Island, N.^ Y., Vice- Cheshire, Conn. Mr. Doscher had
of

full

by

and former

Bank of

DeNike

Jan.

on

Justice of the Supreme

Street and Seventh Avenue office

J.

is

and the expiration of old

the bank's Board from 1919 to 1934

an¬

Herbert

have been advanced to Vice-Presidents.
George

As there

these

as

of Brooklyn, N. Y„ it

President David B. McVean. Judge

Gersten, President of

Company of New York

nounced

Underwriting began to improve
higher rates became effective in the last half of 1952. "

P.

announced

was

Bank

in rates in 1951 and 1952.

.»

ings Bank

Company,

endorse

:♦

ojUsplit stock Court,

National

';

m

casualty underwritiBjtf

between inadequate rates and rapidly
rising costal

squeezed

Underwriting

of Trustees of the Bay Ridge Sav¬

President

budget.
'

1936.

held of record Jan. 9, 1953.
'
': ••

Public

fighting in Korea produced

wherein

The severity of this position resulted in substantial increases

\

Auditor for the bank and

:

freedom, we must check this wild.!
; Baskin. and A. Herbert Sandinflationary cycle before it de¬ ler, lending officers at the 39th
stroys

1923, most recently held
position'of Secretary; Mr. Tis¬

for each 10 shares of the old stock

E. Chester

1950-1951

the

on

claim costs saaM

on

sot, with 20 years of service, was

the

at

automobiles

of

the

in

Stock the bank in

9

outbreak of

set of circumstances in

1952

bank

re¬

inten¬

preserve

.

.........

•

inflationary forces

Dec. 31

the the

At

authorized

distributed

be

Trust

had
we

of

amount

We

If

...

will

by 10,000 additional shares which
•

the

have

.

of

encouraging.

break-even point

bodily injury and property damage insurance

ings Bank of Kings County, Brook¬

former

sult of the fiscal and financial
pol¬
icies of our national government.

tion.

*

meeting

meeting, stockholders voted
the newly
named Auditor* Mr.
to
split the bank's stock on a
two-for-one basis and to increase Hokenberg, became associated with

facing America is how to control
or

'

*

a

on

large increases in the number

companies in the America Fore Group and

;

;

a

for the improvement last year was the

reason

the

retarded

of

most

are

casualty underwriting should

lyn, N. Y., held Jan. 12, President

lesser, subject to qualifi¬

Internal

Government

the

,

needs

and

study

expected,

as

of Trustees of Fulton Sav¬

Board

same

Perhaps

to

share an Paul W. Connelly announced the
amount equal to 10% of the bank's following promotions: Stephen
adjusted net irtcome each year or Wade, Comptroller; Louis Tissot,
Eric Hokenberg,
15% 0f the participants' aggregate Secretary, and
compensation for that year which auditor. Mr. Wade, who joined the

drastic price decline.

a

1953,

primary

The

was

the last half of the year so that if the improvement

into

court awards after the

was

casualty underwriting in 1951

companies showing the largest losses

believed to have reached

are

roads and the influence of

to

Vice-Chairman of Legis-.

Following

on

participants

year>

danger

support

ap¬

June, 1936, and in January, 1940,
was
appointed Assistant Comp¬

stockholders at their annual meet-

°£ a farnr price collapse touching
a

off

was

Governor Driscoll

by

problems

by Clinton Trust

New

of

employees'

tendency to flueis

he

1950

Commission

lative

future-: is to support farm prices ing. Under the plan, which be^gainst disastrous collapse.. Farm Comes effective for the current
fimteiWidely, and there

In

York.

♦

completely

regimented
^economy,; the only
basis for a farm program in the

a

of

from Assistant Treasurer and As-,
children. Mr. Klocke entered the
sistant Secretary to Comptroller.
bank's employ as an accountant in

prosperity is more
related
to
the • general
prosperity than it is to govern¬

prices-do have

Chairman

former

Employee Relations Commit¬

New

Assistant Vice-President to Vice^

Agricultural

a

and

Forum

officers, viz:

President; Kenneth W. Landfare,

member of the faculty

a

Graduate School of Bank-r

Vice-President to Executive Vice- pointed
President; A. A. Lubatty from serve as

entire nation.

Willing .to live under

Engineers,

ing, Rutgers University; Secretary
of
the
Savings Banks Officers

the

anounced

Y- Tamney advanced from

«J_\

Finance;
of the

Broadway. '

;

Unless farmers

,

School of Commerce Accounts and

Closely

mental action.

Sept.
1,
that, he was Assist-

ant Treasurer of Allied

29

appropriate time to
look critically at past farm pro¬
gram legislation and attempt to
benefit by our past mistakes as we
plan'.: for the future.
Farmers
should recognize that agricultural
Welfare is directly related to and
dependent upon the general eco¬
our

lines.

some

satisfactory in the current period.;

The

as

year.

that

history, the developments of 1952

be quite

Comptroller

1944. Prior to

an

nomic health of

in their

taries and J. M. Henry Finck to Inc., and Accounting Officer of
Assistant Manager. At the same Commonwealth and Southern
time ;Walter Friedsam was ap- Corp. He is a graduate of NYU

level, 90% of parity price supports
'

Assistant

Main

the

at

Mr. Marino joined the bank

Central

its

W. Merwin, Jr. to Assistant Secre-

When it extended the rigid, high-

through 1955.;***

unprofitable with

continues

Office: Edgar F. Kirby and Gaius

Egr CUllU

,

is realized

Most companies

r

16

page

Slat ^dtee^Vi4 :=to ^agriculture P°inted an Assistant Trust Officer
at the Stock Transfer
.

it

increases in rates

ing

.

pi

.

News About Banks and Bankers

mv

fh*

•

When
very

cas¬

entirely satisfactory the trend of underwriting showed

sometime in

Continued

mar

u

nhIrS

1

.

not

the improvement which occurred in

improvement throughout the

™ade America great—dependence the freedom of the individual to
efficient production and choose.
-

.

a

While, the results, from present indications^

toward renewed empha-

,

in the insurance

was

were

gov-

sis "Pon individual initiative and

s^tiich
wnicn

principles

Insurance Stocks

significant developments

ualty underwriting.

the false
lurrJ

tnose

the most

of

—

business during 1952

eminent

However, as a
result
of
continued delay
by
Congress/ this flexible price supt»

One

successfully only if we abandon

keting; quotas.

£!+ infr?a!.

This Week

from

away

I

By H. E. JOHNSON

Federal

fense of making our free enter- America by turning
prise system work. It will work increased dependence

In supporting this legisla-^
tion, farmers recognized that any.
long continuation of rigid, highlevel price supports would result
excessive, production and a re-

controls and

Bank and Insurance Stocks

issue

greatest

in the world today is the issue of
Government, freedom, versus statism. Since the
we
must
be willing to reduce beginning of our American form
these demands upon government of government, farmers have been
for services and for special favors, -in the foreground in the struggle
Our
most
important
defense to maintain freedom. I am sure
against Communism and the other that they will take the leadership
ideologies which would destroy at this critical time and set an
our free America is the sound de- example
to all other groups in

of the

cost

2949.

to acreage

am

.

price supports which was incor- uPon
porated in the Agricultural Act of

,urn

I

of America

freedom
with
its
greater risks but also its greater

Major Issues ol 1953
agricultural

the farmers

choose

45

Bull,

partner

Stock

Exchange

Telephone: BArclay 7-S5W

in

Co., passed away at

the age of 70.

American

BROADWAY, NEW YORK 5, N. Y.
Bell

Teletype—NY 1-1248-49

(L. A. Gibbs, Manager

Trading Dept.)

Specialists in Bank Stocks

*

46

The Commercial and Financial Chronicle

\

(506)

investors

Joins Vercoe Staff

Mutual Funds

formerly with Merrill Lynch,

Beane in Chi¬

pierce, Fenner &
cago.

cations

creased from 1,110,432 to

NATIONAL

the

during

MUTUAL INVESTMENT FUND

were

this
to

Gross

Association
dealer or

NATIONAL SECURITIES &

RESEARCH CORPORATION
•
New York 5, N. Y.
mmmmmmmmmm

120 Broadway

with

breakdown

no

IJkMMJkM

group,

a

GROWING

in

ket has resulted
for

PUTNAM

business

offer

"Analysis

those

Pittnam Fund Distributors, Inc.
50 State Street,

The

1

If

a

mu¬

fessor of

finance, who has

ground of experiences

as

be

trust

investment

net

7:45

p.m.

on

Co.;

Monday

Niagara

30

at the

from Jan.

School

28

of Com¬

11,000,

pany;

Washington Square.

merce,

10,000

U.

Sales

MASSACHUSETTS Investors
ONE

STREET

States,

JbiLOCK
'

§ | | JNEWYORK
CCNTLIMEN: At
me •

do

obligation please tend

prospectus on

Canadian Fund.

in

000,000
and

in

mark

registered

total

net

its

At the

total

nounced

year-end, the Trust had

$512,365,938
compared with $437,873,741 a year
ago; 99,126 shareholders compared
with 88,023; and 25,093,085 shaies

Address.

«Y

'

'

'

T<r. *»

a

a
monthly
Bullock
an¬
Monthly Accumulation

on

will

the

confidence

.of

"growth"

a

stocks

in over-all

made

up
96.89%
No major change

investment position

business and
*
/

''

.

a;

>

Diversified Investment Fund

/.lav.:-.;.;-:p

•industries

.

securities

tutes

area

the

consti¬

horizon

this

that

an

as

of sixteen thousand

miles. "According to geolo¬
Ralph E. Davis," Mr. Orr
pointed out,
"ten thousand ' of
Pure Oil's twenty-five thousand
Tidelands lease acres in Louisiana
would indicate a natural gas re¬
serve of over three trillion cubic
square

gist

feet—enough to serve a city the
of Chicago for twenty-seven

size

and still allow room for ex¬
pansion."
years

reports

Life

Fund

an

1951. Net as¬

the close of

75G

at

set

value

unit

per

increased do

of

1952

of

end

the

at

540,065

realized capital

against 507,328 on Dec. 31, 1951.

part
invest¬
combining
the

is

operated

unusual

type; of

Fund

The

of'

an

ment

program

as

principles of a trust fund and. a
mutual investment trust. The plan
provides seoarate trusts for each
individual investor, the Massachu¬

Life

'Hospital

setts

Company as trustee.

investment

the

Insurance

The Fund' is

medium for such

trusts.
As of Dec.

the

of

31, 1952, the portion

Fund's

assets represented

equities was' 56.92%,
with
43.08% in protective-type securi¬
ties.
Of the protective portion,
1.61% of the total Fund was; in
cash and receivables, 11.96% was
in U. S. Government obligations
and 29.51% was in other bonds,
loans and preferred stocks.
'•

by

utilities constituted 18.27%

public
of the

industrials

were

In

the

equity

Fund;

entire

portion,

31.06%; bank, finance and insur¬
stocks

5.79%

and

railroads

majof/market trends.

..'

•
.

and

in

>
.

AVAILABLE

FROM

/w'u

YOUR

ON

LOCAL

THESE

MUTUAL

INVESTMENT

FUNDS

DEALER,

OR

substantially.. A

aadvil

were

uiaiiiaiiiiiiiii

the

total

and

of

13

new

securities

two

were/tJiniinated during the
On December si, oil stocks made up
of the

portfoljp,

manufacturing,
American

portfolio

shares,

the

in

while

mmmmm

wmmmr

itm

WELLINGTON

Mil

mftb

followed by holdings

jthtmicals

and

Cyan;.mid

la|t

Flork&

increased 7,900

Ckyetknit

Hugh

STREET

W.Long an

ynapmoCd

Power

public
the

entered

quarter

-sin

"

The
f

:

,"

nt

Parker, Elizabeth

Jersey

Power

holding

Electric
and

was

Abbott

to 9.p00

with

G.000

Li'jht

A-

was

shares'; Ford Motor

Canada?by 2

Company of
Idaho

:

in

j
'

■

■iMiiiiRaiiiiitifi

and broadcasting

special situation

u

previously held
year.

■■

by




level

which to drill,

most economical in

stating

He

hundred feet."

defined the sixty foot

Mr.
may

industry vie».;£• added to the port¬
folio, and holdings iA/, public utilities were

Manhattan Bond Fund, Inc,

LTD.

the above or local dealer.

to the shore to a

runs

six

of

depth

of

railroad

-

Funds)

Prospectus may be obtained from

is

Jthc outlook for

M9
1952, the automobile

In

incresaed

6, N. Y.

Tidelands

size

continued, "the

Orr

Mr.

Texas,"

only oiL"

the

one-half

"About

'

Z'*-'

<

ISES

YORK

yield gas rather than

to

1.80%. Among the industrials, the

with

•

RECTOR

ticularly

ance

keeping

utilities.

NEW

the continent, par¬
the Tidelands off the
Gulf Coast which are most likely
of

mentary

in

21.9',;

19

gas

be made at any lime if considered

Diversified Growth Stock Fund

"

HARE'S

in

companies,
fully invested posi¬
1952, and, |t the year-end

in

tion

•f

Distributed

rise

may

V

maintained

Shares

Ltd.

stock

V'/. '

.

business cycle or
greater " investment

time.

stocks

of

all

gains. The
number of units out¬
standing reached a new high total

risk that may be incurred at such

'

.

Shirts,

of
•. •

now
planned, according to
Randolph, although changes

•

Institutional

level

:

the

in

found

de¬

new

"which will be
the great sedi¬

during 1952 from

already to have made

in

necessitate

will

discoveries

field

be¬

sentiment*appears to
developing since the

felt

representative ex¬

that this continuing

our

been

overlook

Aviation Group Shares

Investment

The Colonial

maturity of the

of

Diversified Common Stock Fund

<Mutual

pipelines, al¬
spectacular job

gas
a

$29.54 from $28.01 a year earlier,
after payment of 20 cents a share

immediately
influence in

of its net assets.

Stock and Bond Group

distance
doing

and

lead to disappoint¬

may

common

Group Shares

to

1953, he said, but the prudent in¬
will not forget the greater

Fundamental Investors, Inc.

Insurance

con¬

message

vestor

Irving
Trust Company, New York City,
facilities

the

his

econ¬

to

expected
In

-

the

National Investors, which has
long followed a policy of invest¬
ing
its funds primarily in the

Bank Group Shares

long

increase in total net
assets to"$15,953,403 on December
31, 1952, compared with $14,211,-

that
our

the year progresses, but
change in business and in¬

vestor

Inc.

Using

of

Mr. Randolph viewed
1953 as
holding prospects of active though
perhaps irregular business.
In¬

investment

t

W,*

'

he

MASSACHUSETTS

prices.

"

>

can
and

tributed

opinion
wofk in

be

election and

investment

of

much

as
a

have

Plan for shares of Canadian Fund

of

assets

be produced, dis¬
transported" which,
added, "involves a job for the
that

gas

Worjd War II and

major

vestment

Calvin

program,

shareholders.

net

that

demand from

and

on

said that
at the end

followed

1953.

a

ment

and reflecting the trend

purchase
company
shares

outstanding, according to
report now being for¬
to

Corp.

toward

annual

warded

come

itself

dealers,

commenting

again in the upward

the

programs

20,000 shares of American

shareholders

^

t

had

economy

a

invest¬

cents per-

Administration's. p o 1 i c i e s

Co.;

IN RESPONSE to

42

economy

might
in

Dividends

from

situation,

was

it

as¬

stockholders, Mr. Randolph added
that any expectation that the new

&

&

assets

substantial

gains
in net assets per share* number of
shareholders, and number of
shares

1952

from

share

per

quarter

Randolph,

tinue

10,000, Brooklyn Union
Co.;
10,800,
Gimbel Brothers, Inc.;
10,000, Great Northern Paper Co.; 17,500,
Montgomery Ward & Co.; 17,500, National
Lead Co.; and 70,000, North American Co.

passed the $500,-

1952

share

$12.36.

was

national

omy

Corp.;

Gas

investment company in the United

Net
were

investments. At

on

main forces at

Power
Corp.;
10,000
Aviation; 11,000, North¬
17,000, Ohio Oil Com¬
Unrited Aircraft Corp.; and

Steel

S.

Gas

this

1951

per

1951, the

the time since

Co.;

included

Natural

Trust, oldest and largest open-end

WAll

of

Mohawk
Ry.

gain

business

the

Anj^rican

Pacific

ern

of

fund.

of

income totaled

the

10.000, Detroit

Tire

Goodyear

end

cents

value

Mr.

invest¬

Firestone Tire

1.2,300,

11,050,

Co.;

mutual

share in 1952.

Rub¬
Rubber
Co.; 15,000, International Paper Co.; (>4,000

from

1952

Investors

President

each

common

Steel

the

were

$31,245,836 at the

ment

Trust

portfolio ior the
purchases

Bethlehem

year

paid

included

1952

of

Continental Oil Co.;

North

Jan.

Trust's

of

shares

to

41

expressed

Edison

tration will

be held

of

set

operation

the

$3,672,277

bringing the

the

the end of

.

the

quarter

10,000

evenings beginning Feb. 2. Regis¬
to

in

Changes
of

of

National

and

at

realized

$499,988,846,

11,000,

to

p.m,

tion

assets.

fourth

portfolio

be conducted

a

This

to

'

ber

6

amounted

#<

manager.

Classes will

mutual

department manager, that
"under present price relationships
a market exists for all the natural
fund

plained

$27,150,752. Assets on Dec. 31, 1952
were
equivalent ' to
$12.23
per
share after a year-end distribu¬

and

companies,
different indus¬

22

board

assets

which is
key ele¬

the

in

in

of

growth-stock

representing 97.6% of the Trust's

secu¬

rity analyst, investment counselor,
and

Fund,

according to the 13th
report released today by

course

back¬

a

a

1952,

classifications.

ment

pro¬

a

shares

end,

the

143 different

representing
trial

will

course

of

end

stocks of

folios, and liquidating values.
Jones, NYU

Canada,

Francis F. Randolph, Chairman of

type of business."

investments

had

as

successful

the

the

At

fees, investment objectives, port¬
the

management,

in

ment

funds, markups, management

Directing

that

Investment

past

factor

annual

capable
prime

very

and is

the

assets

year

investment

attract

of

widely recognized

content will include

Dr. Thatcher C.

to

us

staff

a

tested

of

of any

study of investment trusts,

tual

In

FUNDS

Corporation

are

in the matter of continuity

factor

market.

course

enables

research specialists

It is also

special securities.

there

believe

We

advantages in larger size

maintain

interested in

designed for investment company
employees and for persons in the
investment

Boston

are

main
net

subject of some discussion

a

also

Trust Securities" to help investors
and dealers who

during

ing cost of 29/100 of 1% of aver¬
age
net assets.
Our larger size

Investment

of

sales.

NEW

NET

In our case, it is the
main reason for our low operat¬

will

school

of

Milton Fox-Martin,

Peabody's central

Kidder,

mand

the annual re¬

on

companies.

Accounts, and Finance.
NYU

now

percentage

Canadian

of

company

Dividend

cumulation plan.

to the shareholders of

spring semester at New
York University's School of Com¬
The

plan

Fund's

Trustees, states: "The size
companies has be¬

the

definite

course

new

which

investment

recently.

the

merce,

FUND

a

its

for

significant

share.

per

of

securities in the investment mar¬

Secrye

facil¬
Shares,
accounts for a

ities

told

Orr

Mr.

increasing service."

come

mutual funds and investment trust

27/ie

accumulation

a

gram,

ready

of

of

importance

monthly

plan utilizing trust

port, Merrill Griswold, Chairman

the

among

to

sponsor

quarterly div¬ Ltd., also under Bullock man¬
share agement, have
been
purchased
capital gains distribution of extensively
on
a
periodic
ac¬

of open-end funds.

different types
THE

as

fund

"Your

the Kidder, Peafirm, radio pro¬
Money At Work/'

Speaking on

body, investment

the Trust paid four

Commenting

funds

open-end

mutual

nqt

has
10 years."

about doubled every

idends totaling 92 cents per

Com¬

panies, which compiles these fig¬ and a
ures, reports that, in the future, 55 cents
it will report only total figures for
the

established 1930

offer

$782,902,000 $18.90 for the previous year.

Investment

of

first

the

ORR,

H.

day that "since World War I,
World War II, the use of gas

supervised
program
in Canada, exceeded $23,000,000 at
year-end and shareholders num¬
bered 16,090. Calvin Bullock was

compared
with
$674,610,000 in
During the year, lour quarterly
1951.
Repurchases were
$196,- dividends were paid totaling 92 Vz
022,000 and $321,550,000 respec¬ cents per share and a capital gains
tively, and net sales were $586,- distribution of 27 cents per share
880,000 for 1952 compared with was made in December. In 1951,
$353,060,000 in 1951. The National

Prospectus from your

$20.42 per

Fund,

diversified,

assets amounted
share compared with

and United Gas
.
'
■„

Colonial

of

first U. S. mutual fund to
provide U. S. investors with a

net

basis,

Canadian

of

assets

to

senior partner
Management Asso¬
ciates and a director of several
leading corporations, said yester¬

JAMES

Inc.,

report have been adjusted to re¬
in¬ flect this 100% distribution. On

1,359,000

period.

same

1952

in

sales

STOCK SERIES

outstanding

(before dupli¬

eliminated)

were

plan, "Growing
is
available
to

Canada,"

Net

compared with 23,tual funds were $3,931,407,000 on 167,850 in 1951. During the year,
Dec.
31,
1952
compared
with the Trust split the stock on a
$3,129,629,000 a year earlier. Num¬ 2-for-l basis and all figures in the
ber of shareholders

by 2,000 to 13,000;
to 15,000.

3,000

by

Com¬

15,000; Merck &

by

pany

A

dividends.

13,500

ment

dealers and investors.

By ROBERT R. RICH
TOTAL NET ASSETS of 110 mu¬

the

about

folder

with

Co., Huntington Bank
members of the New
York Stock Exchange. Mr. Holevas

of

reinvestment

&

Building,

was

less

not

(Special to The Financial Chronicle)

COLUMBUS, Ohio—Tom Holevas
has become associated
with
Vercoe

may accumulate shares
monthly remittances of
than $50, with optional

through

29, 1953

Thursday, January

.

.

.

Compaf.y
of

4,2po

000 to 7,000; and

by : 4.400

shares

to

of

5.000.

Master

eliminated from the portfolio,

Laboraidtrns

2,000 shares to 0,000:

was

decreased

A1 filiated

by

Gas Equip¬

prospectus from
your

1

V

investment dealer

Volume 177

Number 5190

.

The Commercial and Financial Chronicle

.

.

47

(507)

largest

holdings
were
in
oils,- agement
&
Research
Company
chemicals,
electrical
equipment since 194b. He. was formerly man-

sales charge is lower when

and

Some Funds lower the cost at
$10,000.
In lots of $100,000 the
cost averages 3%.
Thus, the acquisition charge represents
the
cost of merchandising shares and

retail

trade

stocks.

of

ager

ment

EfcNEST
elected
ton

T.

SKINNER

has

Vice-President

a

Fund,

nouncement

been

of

the

of

Boston

A

according to an an¬
by Henry l. Vance,
oy iienry T. Vance;

depart-

Mutual

Life

In¬

Company.

surance

Bos¬

investment

native

of

Newport,

Island, Mr. Skinner is

Rhode

graduate

a

number of shares

0f

is

president. Mr. Skinner, who has

Columbia University School of
Business.
His other business ac-

been

tivities

tations

with

associated

and

management

since

is

1927,

investment

research

also

work

Treasurer

tion

r,l

the

formation

ill

which

of Texas

and

the rtaff of Boston Man-

on

included

Fund, of

The Bond i und of Boston and has
been

have

he

is

Fund

"asked"

participa¬
of

Texas

in

price,
price.

of

the

per-share

the

in
In

price
price

your

ference

Management Associates.

between

value

Research and

"bid" price and price you

or

the

"asked" price.

pay or

net

asset

This acqui¬

sition charge also covers the sell¬

ing cost,

Mutual Fund Values

Dividends

from

during

the

investment

3.56%,

according

A

b

n s

Long

a c

past

in¬

tal

averaged
the Henry

her

J

.

"Trusts

azine.

.

in

31,

prices

return

was

-

,

funds

V

showed

y

in¬

from

Dec. 30,

on

buy

of

4.7%

for

or

more

sell
than

in the

rose

permitted

securities

on

of

any

one

hold more than
of the securities of any one

10%

the bal-

to

margin,
estate, to invest
of
their
assets

real
5%
to

company, "or

1939 is used

"/ ' y-; ■;' y

„,

as

At,.1 they

V''..£v

three months.
curities

bank.
live

Mutual

always

ch™*

The

shares

ment

your

.

can

doing,

are

be

can

Funds

We

Mutual

of

Funds

through

they

se-

custodian

a

Investment

what

see

Th«

by

goldfish bowl.

a

re-

a

every

Their cash and

held

are

in

They issue

shareholders

Invest-

purchased

investment

dealer,

do

todian bank Or the Fund itself.
Many have periodic navment nlans

.vldrH,nave Pen?aic Payment plans

enabling
each

to

you

purchase shares

There

month.

also

are

sev-

whLebfyou
tpn-vpnr
ten-year
For

invpctmpnt
investment

example,

would

a

The

of

all

borrow

not

money.

a

$100

mean

months.

ing

own
nmawm

program

$12,000 program
month for 120

a

automatic

dividends

in-,
during

come

had

they year-of
3.67%

3.96%
1951

with

'

times

in additional shares,

year,

o

r

Three

1952 for all 43 non-spe-

which

and

a

year

cialized funds in the Index

40.4%

for

the

security

and

the

stocks

profit

the

of

long

term,

tangible

very

common

have

results

for

of

the

funds,

A

3

paqe

ap-

5.68% and 2.54%. .Capi-

between

—

—

—

?

preciated
!

50%

over

—

——

from

16

page

+

business profits may be less stim-

would suggest.

.

Mutual Fund—Modern Investment
the
ine

nast periormance. il thev nave
past nerformance If uiey have

consistently attained their investment

objectives

their

charter

described

as

both

in

good

during

times and bad times, during varimarket

oils

cycles,

we
can
be
management
knows its business and will con-

fairly

certain

that

tjnue to be successful.

Naturally

the older and larger Mutual Funds
afford to have

bigger research
/departments, staffed with the out¬
can

financial

standing

investment world.
ment Funds

by their

are

conservative

dia,
s

brains

as

the

of

Mutual Invest -

nature

very

investment

all of them

me-

based

are

on

spreading the risk through diversification.
needed.

But

than-this

more

is

The prudent investor will

ment
mem

Funds
runas

that smaller companies
going to be less well provi¬

are

themselves
inemseives

on
un

gives

ireedom

us

look at their capital

appreciation

performance,.^ their

dividend

payments, and whether
they have been in business long
enough to operate during depres¬
sion
I
an

deemed

my business as
investment advisor to instituin

and

the

planning of esfor individuals, have found

tates

visit

to

necessary

the

work

shops of these Mutual Investment
Funds.

I have found

very

cooperative

their

investment

how

The

they go
-reason

the

of

Fund?

The

merous.

in

a

We
one

and

attaining

their

it.

success

demand.

on

rities in

their

portfolio.

If

secu-

in-

an

in

Mutual

owning
Investment

advantages
do

not

basket.

invest-

are

put

Then it

continuously watches these

fnvestments;
to

It

dends.

We

get

our

job

reasonable

or

divi-

Most of all, Mutual Invest-




of

planned for this

be

year can

ear-

ried

out without any change in
the Federal tax structure as it
ap-

plies to business. Even so, I per¬
sonally would unload the excess
profits tax at the earliest possible

in

stand, if not admire, a decision to

the

results

of

surveys

of

pro¬

of industrial expansion

re-

s*ai,? ^

"u"

in

Washington

a

companies.

lt ,run
stimulus
tion

I

would

under¬

on f.0^ six months if the

provided by its elimmanot needed to support a

were

high level of capital expenditures
by business. In that event, it
would serve as a hole card of
sorts.

bulletin issued

Federal Budget and

by manufacthe United

Tax Relief

But, in

event, the fact that
the Federal burgetary situation is
so improved that business taxation
any

within

value of

his shares

what he

paid for them, he would and

months because of Federal taxes,"
that
"it is
principally the

necessary without inviting a disastrous
Federal
deficit, adds a

small

new

sustain
j

loss.

a

in- the

do>

If

believe,

you

future

then I
agree that

less than

of

industry,

think

must

good

as

American

that

you

management can reduce

risks

blR cannot eliminate them. Dividends

paid

by

because

vary,

stock

it

owns

the Funds will
dividends on the

will

managers

competent

vary.

Profes¬

£are trained and

people.

Nevertheless,

they will make mistakes,

though

and

For

in

the

past

medium

panies whose
stifled."

American

our

these

12

sized

growth

is

to

18

com-

being

smaller

en-

nation, a new and much more
hopeful development has showed
up recently. It is the prospect, already noted, that for the fiscal
year ending June 30 next, the cash
receipts and expenditures of the
Federal government will at least
in

balance

and

there

may be
receipts.
prospect, produced by the
upsurge of business in recent

substantial

a

months and

excess

of

This

them

they
they

are

a

can

But

and

not make your shares
when the securities* market

can

go up
as

quickly.
not /miracle men,
more

whole

of defense
a

a

further cutting back

expenditures, provides

dramatic contrast with the pros¬

pect of a deficit of many billions

is

of dollars

time when dividends

pronouncements on the budgetary
outlook.
More important, it af-

going down. Nor
they maintain dividends una

portrayed in the official

generally are inj a downtrend, fords the incoming Administiation
They are trhe risks which accom- the piospect of being able to pio-

in

my

worth

humble opinion, risks well
taking.

the

The

What
Funds
of

a

do

cost?

Cost

Mutual

When

buying shares

pays

a
charge,

Fund the

on

outlook for

varies

the

capital investment by
constitutes

sort

a

of

line

the present high level of

of

defense

for

that

profits—the key line of defense of
the high level of capital invest¬
ment

planned—should
signs of weakness.
now

show

safe system of

a

time, the Russian commissary de¬
partment will be in no shape to
provision an all-out war.
Close to Peak of Defense Outlays

If,

I anticipate, we

as

close to

the

are in fact
of defense ex¬

peak

so far as the years im¬
mediately ahead are concerned, it

follows that there must be

an

ex-

pansion of civilian consumption to

to

bog down. An analysis of
magnitude of this necessity

extended

an

consideration

of

June 30, unless renewed

prospect that the Federal
cash budget will at least be bal¬
in

anced

have
the

this

fiscal

indicated,
recent

not

is, as I
only to

of

business

year

due

upsurge

activity but to the cutting back of
defense

expenditures.

When

such

the

Federal budget for

the current fis¬
it was esti¬
mated that by June 30 next, we
could be spending money for de¬
fense at an annual rate of $60 bil¬
lion. Actually the rate will turn
out to be much nearer $53 billion
cal year was made up

per year.

By making sufficiently belliger-

new

,

necessity will be successfully met.
greatly enlivened applica¬

If so, a

tion of the art of selling in all of
its major dimensions—from prod¬
uce

design through advertising to

houserto-house canvassing

play
I

I anticipate that ia

show of determination

as

characterize

to

come

salesman
our

will

decisive role. This is why

a

have

the

the key custodian

of

prosperity.

The

that

is

point

made,

if. all

even

of

of

course,

ouf salesmen

spper Paul Bunyahs in their
they could not reasonably he
to produce sdles which

were

line

expected
WmilH

inrlpfinifelv validate

"capital
d -

of

of

ness

rate

a

y valldate abusi¬
rate
by

expenditure

the

sort

we

have

main¬

tained since the end of World War

II. Personally, I do not believe the
point is well taken. It is true that

the

next seven

years

as

we

have in the past seven years, but,
that is by no means the end of

the matter. A large share of this
capacity is old, rickety or obsolete.
When
the
investment
require¬
.

ments Gf modernization

to those of

new

being

ment,

so

are

added

product develop¬

notably exploited

in the chemical industry, and the
of investment to meet

needs

eco¬

nomic

growth, to which the bulk

of the

tremendous electrical util¬

ity investment is
is

no

directed, there

basis for the

fear that

op¬

portunities sufficient to sustain

a

of capital investment
by business are running out.
At

level

any

rate,

we

know that for

the coming year American indus¬

try has plans to carry on at nearly
present record-breaking rate
of
capital investment. We also
know
that plans already made
the

would, if successfully carried out,
sustain that rate during
immediately ahead. The
chances, already good, that it
would
be possible to carry out
these
plans have recently been
much brightened by the improve¬
ment in the budgetary situation
0f the Federal government — an
go far to

the years

sary.

—a

on our

Whether it will be necessary
key question involving the

^
more

particularly

the wars, which I expect to see,

to be seen. But insofar as it can be

helpful to smaller growth compa-

will make the Russians less rather

appraised as a special, phase of

not

Congress,

the purposes of
discussion,
I shall : Simply
the
assumption that the

partJto get Off the defensive in

would

of

whole., So, for

this
make

high

The

do it. Instead

only

vestment

are

be

the neighborhood

also

offset

hamstrung by Fed-

taxation;

The

to

not believe that they are going to

eral

7Vz%.

strength

if

profits tax scheduled to

with each Fund,;L>Ut averages in
of

It

of

mid-year

level if

sales cost, or nies whose plans for capital in- ihan
which

ciently to provide

S^fuy^^KUhat"
mean'
food supply and that, in the mean

relief

by

act

element

at

in normal course, with

up

excess

expire

.

Investment

Mutual Investment

acquisition

comes

reduced

second
comoanies

tire

be

be

can

business.

however, and indeed for the

I think they will/make far fewer
than amateurs, and will recognize
much

«

,
.
bv seethine rewhich is attended by seething re¬
sentment on the part of the peas¬

over

States

was

k'

we
cannot expect to add to our
manufacturing capacity as rapidly

Good Prospects of Balance

in

on

cancelled

But

of

Jan. 5. These surveys
disclosed that "billions of
dollars of plant expansion plans
have been

primarily because it im¬
poses a peculiarly noxious penalty
on
the growth of vigorous small

sold his shares when the net asset

"gives'"us freedom-Purchaser

devote full time to

career.

develop that the high
capital expenditure now

may

companies

were

our

carefully selects a
widely diversified list of equities.

It

level

turing

Professional

management

profits if that should materialize.

in need of funds and

vestor

nu¬

all

on capital
expenditures of a de¬
cline in total volume of corporate

moment

Commerce

proportion to the underlying

is; reduced at

It is the thorough

professional

disadvantages,

shares

eggs

objectives

about

for

quite obvious.
experienced

management
in
explaining

encourage

a

Now for the disadvantages. Mutual
Fund
shares
fluctuate tin

nP

■} wj!.
?«««
V^ais befoie this reorganization,

a

capital expendi¬
tures they have planned to make
than large companies. Some sup¬
port for this suspicion is found

Chambers

sional

personally in

tions

it

boom times.

and

to

the

lrom

or^duHnV1 downward swmgs in st0cks a^e desiLable thin%s to .own:
during downwa?ITvvh^rin Diversification and professional
market,

profits

centiy made ln eight states by
dividend. their
respective chambers of Comdetails, m0rce
(in Indiana, Kansas, Kenkeeping
records
and
simplifies tucky,
Missouri, New Jersey, Ohio,
our tax
problems.
They can be Virginia and
Wisconsin) summarliquidated at any time., The law ized
by tbe Research Office of the
provides that shares must be re- Council of
State

having missed

never

It

ord

the

with

finance

grams

nricle
pricie

More specifically,

suspect

and

■

.

a more forced by the

me ,?

in

sioned

Continued

collectives

the operations of our economy as

I

in value.

of

and chances of meeting it success¬
fully would inevitably involve me

latter,
however, ulating to capital investment than
fully invested the total investment now planned

,

agricultural
direction

the

larger and more tightly controlled

the

/ '

maintained

rajiged positiohs during that period,

in

compensate for the absence of
mounting expenditures for de¬
if our growing economy is

shareholders.

relatively -de- '
The increase in

stock

of

system

penditures

appreciation

over

shown

distributions

•

the

ing their
production
Induction

plus

M

principal values dVehrthe share Ahem.' Also, I suspect withone-half
year
period out having anything remotely apsince the
post-jKorea lows was proaching . adequate information
26.5% for the balanced companies about it, that the distribution of

Henry A. Long

developments which are
available. They tell me that the
Russians are drastically reorganiz-

not

and

five-year average of
Individual returns during

4.21%.
the

f

and

taken'

experts on Rus-

as

sian

fense

average

two

con¬

trasted

also

best credentials

sup-

by the

those with the

some of

,,

,

fensive positions.

.

somewhat

am

the expectation

findings of

reinvest¬

four

.

vestment'

I

in

ported

They can be redeemed without
through your dealer, the cus-

y ' "

,

their assets? in
common
stock
v
during the greater party of "the- ',
year, while
several:, stock. funds

However,

cost

%/ '

'
pniy ;:,50:; tcb>#0% V6fy^dfitinued from

held

their

company;

Three-quarters of the balanced

-funds

average re¬

turn

The Index

the base.

4.03%.

Common stock

ah

1952.

not

are

to

ants, will be shaken down suffi¬

they cannot lend money,
corresponding /,. figure for stock 'and with the exception of a cou:funds' Was 199.2.
The
level
of "Pie, whose
charter provides for

av¬

year

erage

increased

port

-

buy dr sell securities

anced funds stood at 172.7 and the

The

.

funds

Funds

re¬

6.3% during the year ended Dec.

-and

.

'

not permitted to under-

are

write securities.

the regulations of the SEC, Mutual

not

are

and that of the "stock funds"

•

Estates" mag¬
five

gains distributions

"balanced"

Index

published

time without extra

conclusion, under the Investment Company Act of 1940 and

flected in the income figures.
The average principal value

year

to

redeem your

you can

cost.

Henry Long Index

to

"balanced" mutual funds

of

Increase,

as

at any

In

According
come

shares

They

quoquo¬

daily newspaper,
acquisition charge is the dif¬

the

director,

a

included

larger

a

purchased,

are

the

such relief

would

repressive

effects

more

belligerent. But, having

than tipped my hat—remains

tJ1uetl/°kalfo®C°"?(Xl "expenditure

much, I hasten to add that by busjness can be pronounced
absolutely no credentials very good, and potentially exin this foggy field of speculation, cellent.

said

as

I have

V"'

48

And

are

the real

not

problems by which the
They are important

Eisenhower Administration is faced.

only in the degree in which they get in the way of effec¬
tive; attack upon the real tasks that lie ahead. The work
thiai the new President and his party newly in control of

Congress have cut out for them is of a wholly different
order.- If the controversy—if that is what it was—over the
Wilson nomination and confirmation has seriously weak¬
ened his effectiveness in

it doubtless

was

to a number of

people, it

can

.

their

mankind; or is it to meet ,
of carrying out the
a
group of
visionaries
confident
that
they,
and
they:
alone, possess the skill and fore¬
sight to direct not only the lives
of this people but to reform and
the

cases.

get accomplished what all intelli¬

first

The

edge,

stroy the driving force of incentive in the individual American
and to undermine the integrity
and
the
independence of^ ihe
banking system of America; to
impair the ability of bankers in
discharging the greatest responsi-

.

wo

iii

use

tr

ments

.

-

..

..

.

ifW'.
;

.

arid'»

f

>'

v

,

.

to these

centralized,

to

*5

•

with their

the

over

activities

of

the

daily lives
people, a

they whom

is

in

and

^

.I

g

£!

_

undermine the
economic

UtnU

trf

1

Unn

^

1/wn 1

us and our chil-

dren—be snent bv government?

How much

best be spent by

can

usr

When you have answered

have

you

these,
whether you

decided

.

°f ind?Pendence in our ica in which the cost of

>~f'a

a! rifn 1

which has been liquidated in almost all other Parts of the world

property

steady
confiscation
ot
through the staggering

every

burdens of taxation and through
borrowing

which

means

deferred

a

..

""rv"destroying
/

nrivate

point that

you

regulated to such
retain little free-

and

?01? Pf

initiative

initiative i00k to the "elective" intelligence

manipulation

^control-

govern,

turn—or whether you want

to be taxed and

taxation*
'
.

we earn

believe can, with greatest

want to preserve what is left 'of
crushing ^he America we knew—the Amer-

,

we

honor bound to fight any proand

.

_

of reprisals,

fear

By

r*

?owing inierlerence benefit to all—to

ordinary concerns, re-

"more abundant life";

we repre¬

interests

whose

questions:

How much of the dollar

growing interference

constant and

onnnirv

In the midst of the changing
g0verament to
the coir
concepts of the functions of govBv thc ruthless and unnecessary
the
ernment and the rights of the inpeople functioning m a free field.
aoanaonmeru 01 ine goia sianaaia
To my mind, one of the s .rangest
dividual,
_we_ have not seemed to which once acted as a warning
sense
our
full
responsibility to n/Z/harikm"
hallucinations ever enteruaned by
keep those confiding and trusting 'iacine uitimate limits on nolitical an informe<i public was that the
depositors informedregarding the
to
^
reck- welfare of.. the nation depended
causes that
brought the interest ;"r/i"
"
' —
principally upon the success of one
or
another political party—upon
rates on their deposits to a low
'
By abandoning the gold stand¬
level.
whether this policy or that policy
ard, monetization of the Federal
These industrious people, un
was put into effect.

repIace
intetiigence of

abandon^

whote

cred£

.

nftn(ulinne

?
looked

all, rich and poor alike. The new Secretary and his chief, the President of the United States, will
have to take criticism, fair and unfair
alike, in their stride
to

the
fiscal and financial problems of the
.country that they
will deserve the gratitude of us all. When
they have done
that, or rather when they have demonstrated that they
are doing that, then it should not be difficult to
put down
the tumult and the shouting even though the achievements

ux

their

to

npprt^intif
of

n
uncertainties

toils and

made possible and re-

As I see it. this nation could

have survived the ill effects of

By the steady encroachment of
political control upon managerial
skill and experience in our financial system; and

fr^ th^

roef

was

sorted to in large measure.

sav^ff; as

qIh

life.

the adoption of the most absurd^
political theories just SO lorig as

the government left the individual,

By a questionable practice of free himself to spend substantially
did not. tell them seeking to maintain the market
jail of every dollar he earned;' to
in plain language why these hopes value of its own securities.
/ venture his time and money4* as

Many of us

This is
fession

on

our

mismanagement
the

of

.

tragic

20

vears

and

of

the

^
which were

manage

away

a

.

mu

industry.

ner

them?
constitu-

operation

of government;

„

•

r

.

.

„

...

u.

do

Part of the "dollar you: and,
not

have

that

confidence.

"elective" intelligence, arid by,
that I mean to identify the strange

,

problems with which

phenonrjeuon which occurs when

^

.

elected to

some

a

hiah office,
with the

What obligations will it be called .suddenly becomes imbued

hands the control- upon

repudiation of

a

,

t?

4i^

All this:

By

I earn.

'I

the Treasury is confronted are:

^

tional guarantees in the
-

own

ories if they involve entrusting to

Treasury's Basic Problems

determined to sweep

own

this
survive the adoptioh of
the most solid poHticM the-.
ean

government +hf> «npnHin« Of; ihjp
ffnjrprnmpnt the spending: ot the

individual family relations?

free people and to take

into their

iam

Tieasury more deeply the.

application of forces

-of government and

.

even

a^hing^outside of^ur

the rights- of

Others. - .
' ■ - ,v
I do not believe that even

^

ud

the Umitation that he

should not invade

a.

no one

the present hour, we have
had little else but a demonstration

in' Jp?4 onfr <f

an-

nation

[until

I

SeBUt
ranidlv-

^

"it ciefully in" evaluating creSt.
last

a

now

P ^ "

minimize that fact, We must weigh

the

nolitie

.

faces

desperate situation; and let

r^For

the result:

progressively developing

v

government,

Administration

new

mor,

part of complicity

Wiethe 20 years of such
magie money men
After

have faith

enough in the basic commonsense
of the American people to believe that
they can be made
to see aiid recognize and
applaud real achievements in
the interest of all the people, and the Lord knows there
is plenty to be done in the
Treasury which would be of

debt

of the effect upon them
upwu

conscious

Jhim. "




>

er,-

*

hnnStv

,

control

fncIinftions

solid benefit to

,

nf tw

B.y a,h!g?ily growing more highly behooves all of lis to give thought
centraIized COIlt.ro'',a
daily

forees
forces.

stitute the very backbone of nloco
this
fhn
rtroof
mirlHln
country/ the great middle class

man,

so

nnlr?

•

security of the PeoPi® who

along with them the

and not falter in their determination

Gallon

®3 t^d^ ie^f th^

appreciable,

gram calculated to
roots of the thrift

well fail to approve and

we

It

us.

are

and that every move he makes will be
'Watched with malicious care by those who Would destroy
But

i?

to

,

--r.

yielding

,

no one in his
applaud is the answer.
Take the Treasury Department as an illustration. The
newly appointed Secretary is reputed to be a man of very
'substantial wealth. According to apparently reliable re¬
port he made a very favorable impression before the
Senate Committee questioning him. No information has
been vouchsafed about his
holdings, or his disposition
; df them, but no whisper of criticism has been heard in
connection therewith.
The fact remains that he is a

'

wiiV-

-«,«

™|^^^e3«itS'

fair striding, impairing, and hinderreturns. Not for a moment should
ing their activities—and this all
we
forget our responsibility to
being done under the benevolentthe millions of thrifty men and
sounding pretext of affording a

Here again achievement of the sort

Wealthy

•

^at we

exceeding/its true income annually; by vast, amounts,; and this.
even though its true income repm
£: Sn S
resents an unfair diversion of the S' •,
' —
'
i
earnings of its people from other
* y°
*
'Vmpr;pa, a."
and more needed uses;
aJ a
decide the future of America, it

good loans and gooa invest
gooa loans ana good invest-

make
maxe

The Treasury as an Example

sense, can

such
sucn

from
trom

Our job as bankers is, first,

of the old billionaire dinner tech¬

nique to discredit many of them and
Eisenhower Administration.

.

^^iSrahS

and

great care has been taken to avoid even the appearance
,pf evil as respects holdings and connections/ there is little
doubt that the hatchet men in the opposition party are

^planning to make

?ww

outright purchase,through the exk^0wlcdg
tension of elaborate and unprecedented,grafts frouf^ ^ paternalistic

The Banker's Present Job

.1

-1

^ dollar the. Treasury

ernment through what amounts to

c.t..

resulting
resulting

,

1

dollar

becoming a postwar, coldwar political casualty.
;
In the granting of credit during
this period, we have learned the
necessity of taking into account

partment other than Defense has this particular sort of
1+,
,
t
,
t
issue been raised,
although, of course, there are men of
large means in several of them. And although apparently
a

American

the

insure

thus

; / ' Much the same story is to be told as to other activ¬
ities and branches of the new Administration. In no de¬

.1

the obliga¬
Our con¬

SS''

..of*;ix>!wer between: .the

constitutional departments
of government;
By a bureaucracy in full flower,
the like, and extent and capacity
for growth of which was beyond
our capacity to believe;/
By the destruction, of the indepnedence of state and local gov-

from

sent

n

Treasury.

bility imposed upbii them—name- central goveiminent;^ h strajive. capacity
. .
. v;
ly, tp provide sound credit, and
By expenditures of government
Course During Next Four Years

country.

1

balance

identified, for the past 20 years
conceivable
weapon at their command, political as well as economic, to de-

measure

the

is in direct proportion to the

By attempts to destroy the fine

phrases, "New Deal" and

have employed every

support of the President, to overcome a poor start and
succeed in performing an outstanding service to his

•

thereof,

tions of
cern

Forces, both identified and un- three

against what the: opposition
party and its members who take pride in their low polit¬
ical cunning are unquestionably planning to do with the
ammunition thus placed in their hands lies in a record
of real achievement. If Mr. Wilson proves, as we should
and do expect him to do, that he knows how to bring order
and efficiency out of the chaos that is now the Defense
Department, and displays a singleminded determination
to do so, it will not be easy for his detractors to make
headway against him or against the Eisenhower regime
on the basis of him or of his work.
Nor is it likely, we
should certainly hope, that men of light and leading in
Congress would undertake or would want to undertake
to);<do anything which would stand in the way of his suc¬
cess.
This ought to make it possible for him, with the

.J

undertakings assumed, the

plus the freedom of action, knowl¬
and administrative ability

page

"Fair Deal,"

/./ But the real defense

1.

the

of

v

.

of

remodel the whole world?

Teslerday,Today,and Tomorrow

and the

.

,

expenses

ideas

tion

work still lies ahead of him,

•

.

brains, to profit by their

ment of

of those entrusted with the execu¬

tegrity; no one would question his earnest desire, to serve
his.Country; every one concedes his outstanding ability. If
he seemed a little obtuse as regards matters which he had
; ■never in his life before been called upon to consider, an
£ awakened realization of some political facts of life, and
a more effective approach to Congress can easily repair
the damage.
'7
>/. ;/V:'V''.
:

own

contributions to the advance¬

own

well be

gent and patriotic men want to see done is what will count
in the final appraisal of the man and his work in the
service of his country. No one doubts his essential in¬

,,

'

heavy and rabbitlike bureaucracy?
Will the Treasury be called upon
to meet the expenses of govern¬
ing a free people, free to risk their
own time and money, free to use ;■

His Work Ahead of Him

can

strength, or will he be
in the red tape of a top-

activities attempted by Uncle Sam,

Continued from

extent to which he

to /

Uncle Sam be left free

-

interfere with the work in hand.

forgotten.
Mr. Wilson's

,

bound

early controversies and blunders—if that is
what they are—are, to repeat, important only as they

Otherwise, as painful

How will he

the load?

exert his

These

dealings with Congress, then the

episode is greatly to be regretted.
as

Real achievement is the defense in all

1953

Thursday, January 29,

Will

we

so

.

what is he to stand?

./

might go down the list. There is crying
/need of constructive work everywhere. Not only is there
inefficiency and waste, and even corruption in many
places, but there is a morbid growth throughout the gov¬
ernmental organism. Surgery is in order. At many points
pressure groups are demanding and will continue to de¬
mand special favors. Almost any program in the interest
of the people as a whole will step on the toes of some
one #f these special interests/some of them upon the
pedal
extremities of many. All manner of means will be used
to discredit those intent upon these necessary changes.

precautions will be taken not to provide the political
^sharpshooters with just the targets they seek.
these

.

.

.

carry

bons, and economic royalists.

See It
We

As

Chronicle

those of what Franklin Roosevelt used to call Bour¬

are

Continued from first page

But

Financial

The Commercial and

(508)

.

jdea that he knows all about some-*,

it be allowed to meet,thing of which he knew little
,

-

,

Is Uncle Sam to continue to be

or,

nothing prior to his election. It is
a

phenomenon of which

we

have,

modern
Atlas,
carrying - the- seen a great deal in recent years-^
world on his shoulders?: If so; on. not that it is anything new—and

a
,

to. meet,, and in what, man-.

.

Number 5190

Volume 177

.

The Commercial and Financial Chronicle

..

(509)
which becomes

and

more

The

more no-

tticeable as government; takes
Itself more and more power.

c
are

non organized to get out of
W5aiutcu

'

When I think of the

with which

spontaneity

spawned the thou-

are

is organized to get encouraged by a spendthrift
govinto debt, but the peopleii ernment has
acted in unison to

world

to. people

sands and thousands of proclama¬

debt.
and
of

Every

conceivable

facility

which

could

man

uul

tions, orders, directives, and reg¬
by which we today are

1929___i

to consider that

they

qualifications

of

om¬

nipotent Creator.

Gentlemen, do

Policies

„

feet

our

do

on

75.6

155.4

93.5

242.0

277.2

do;
to be-

Sam

Atlas,

even

155.8

actual

an

1946

decline

in

We

pri-

power of the dollar. It
was

must

is

debt

in

the integrity of the citizenry
the country.
If the base dis-

of

took

place

increase

an

collapse.

.

between

.

.

-

.

only about equal to the

aver-

'add:,

freely,

so

flagrantly),
led

many

believe

to

all

never

we might
borrowed so much,

we never

spent

or

"We

•

good".J and

so

wasted so
millions were
or

that

if

spent

we

had and borrowed and went

we

into debt, we would
come

somehow be¬
prosperous; and if we

more

had it

-never

good," maybe

so

we

ought to double the debt and make
it just so much "gooder"; and if

$265 billion debt is a good thing,
why is not a $530 billion debt
3wice as goo<L

■a

then

It; would ce

ly

^

bigger deficit pool of
fphony money to give us a hypo¬
dermic-needle
prosperity.
As a
give

us

ffesult

a

of "never having had

■good,"

have

we
wh

IJT'

acquired

it

r

P.Iace since. romnared. it.and 19al
If the 1946 will he
figures
figures

matter

a

and multiplied the burden of tax¬

I A+o 1

of

rl nhf

nritroto

all

know

that

the

C1 OO

averaged

increase

billion

a

crease

in

We all

know

MaIt*

in

the

that

pressure

suffer

he

think

I

too

that

we

too quickly when we

sharp

turn before we

a

lhave slowed down to

compel — us to
improvident loans. For 20
J

year.

Based

total

$33

over

the

on

/,nv>r.r\ntrf^^w»

tmobile"
mobile.
•would

safe speed,

of"'usTs^kina'"nor
g,
o

be wise to ask, an over-

might reversal. But
:and

ask, that we slow
racing on the wrong
quickly as we can and

this

rroad

Tthat

asking,

we are

must

we

♦down

;as

a

None of us is askt

we

as

we

soon

turn in the: right direction
as

t

credit

consumer

the

on

relaxation

of*real

restrictions,
there seems
to feel that there has
been a further large increase in
private debt in 1952.
every reason

Debt is

Banks must take chances like

every one else. People cannot do
business without money. They can-

estate

credjt

the hands of the peo-

money into

in--pie.

not

the

enjoy

we

consistently

Now, I would direct
to

one

...

.

more

can.

strain

American

your

which

of great concern about pub-

:,|icdebt. But I would speak of the
vjie debt.
•danger point of increasing private
•jdebt.* I think we should face the

the

Again

fear

that

there

are

those

who

'.^voqld lull us into, sweet slumber
"Vith a fme-sounding phrase that

•

>Ihas

come

Can

change
Well,

Give Advice

the

first

time
will

bankers

in

be

the

two

that

financial

les. You must

condition

to be called

"disposable

should

that

realize

sponsibility

our

does

not

decadent

system that

some

quar-

ters

proclaim it to be. The propelling power behind our progress
is

private

initiative

.

,

the

and

——

un-

—

—

leashing of personal energy in

a

5% div¬

share

new

for

held, according to
m

_

merit reieaTed" by

Andrew

Chairman of the

bank's

formal

flexibility, and is far from the

in favor of

one

directors.

The

Wiison

board

dividend

approval

each.

s&ate-

a

„

of:

pending;

by the Superin—

tendent of Banks, will go to stockholders of record as of Jan
21
Stockholders entitled to fractional
"
shares

"
the

on

"
—
-—
for 20 basis will

one

receive scrip certificates and will
sponse to rewards for achievement.' be
advised
of
an
arrangement
re-

uPon these principles there has

which
these
certificates
be sold for cash or used ta
additional shares;-la
making
his
announcement
Mr,
free- Wilson pointed out that as a re-

system,"

under
may

i
which.is the best that has yet beenacquire
devised for the satisfaction of hu-

wants

man

dom.

t

and

Every

individual

,

i

_

r

•

possible

measure
suit of the dividend action the
should be adopted to provide for a' number of
outstanding shares o*
dynamic and expansive economy. County Trust capital stock will be
'

_

jej.
be

can

the

ug

n0£ forget that there;

incentive to succeed

no

by:

individual

if the country is!
survive; and here, as with'
respect to the individual, the truth,

noj.

remains that to survive
wuh;n

]iv„

means

to

innnm.

vnilr

I know that the

_

.

_

_

„

increased from 185,375 to 193,756
with a corresponding increase in
Par value from $2,966,000 'to $3,100,000. A $500,000 increase in the
bank's stated reserves was also
announced.
Capital funds;*nctw
total

$14,678,985.

'

mm

people have had
Alex

Seidler,

has

Jr.

^ forward to the future with tional State Bank of Newark,•<N.Z
William

Freem^

F. ;?

Executive

Kelly,

"J1* Vice-President of The
^ at The Graduate « of Philadelphia ^
Trusts
was elected
_

danger

The-road of

sa,(;rl??ce:

jus-

oorresnondinelv
cor e po
d
g >

is

of

great.

and

t0 ouAtl'ne' ?"

,,

mllo.

™avl
waystte

Si

ho

our

1 h?ve

such

,-r

Leonard

were

T.

W.'X

Beale,

n
prepared w changes in
tor

economic

Depositors'

system.

Let's Have Sound Money Based
on

Gold Standard

History records that an important £undamental in the road
built

on

foundation

a

sound

moted

from Assistant Vice-Presi^

wa«

charge

soun^foundation °for The^xtcn- S
phiinnL
3Sni,H La
sion of credit
government, corthe ^
lepayment ^adeauateiv
porate, and personal
adequately
rxf

*

and

nni

.

of peace.

The present

n

J

Jhe
whpn

assured
assuiea.

is

deteirnining when credit is

granting of public, corporate, and

Federal

are

comapnied• by
government

the

control.

w
has

feet

dependent

upon

aid, which has been

ac-

extension

of

order

In

in

individual

which
credit

m

domestic,

can,

jn 0ther words, it is

an

liberalized.

Healthy

While

should champion the cause of pri-

vate enterprise and sound national
sure

that

economic,
and
fiscal the banking system is on a healthy
policies; create a favorable busi- basis. It is true that the bankers
ness Cnmate; and reestablish faith
engaged
wholeheartedly
in
the
ajfPS
°
•ages, nnrl avPradPs will not save
and averages will nnf
and
confidence
in
the
future Voluntary Credit Restraint Prothe individual when a debt is due
rtr-rvxirlh
exf
Ihic /vrv.ivi+vxr
i.rhinlt hplnm] nlcmi
/(amnm.
growth of this country.
gram which helped place a damper
There are those who would tell
Twenty years of deficit spend- on inflation.
Nevertheless, outus that we have not reached the ing has demonstrated the fallacy standing loans of all commercial
danger point of 1929 in the ratio of all the claims of the "New banks in this country
it.

„

e.,

„

,

.

«

.

one

be

any moie than horses

ralr
,
.

■

.

w„

e

,

V.

.

.

..

when

Continental-was .ab¬

'

Other executive promotions ap-

Proved by the board

were:

tt

standard

V

11-,

way,

,.

t

,h®

1931

sorbed by the bank.

John

Baw™£

Willard' L.' Case

Kenneth

Henry

1i /

„

11

„

I

„

1

/\ v.

nl.1

L,.

Wallace, Donald F, Con-

Jri, and
from Assistant
toAssisiant Viee-Presi-.
W, Clegg Jr., TrustOf—

S.

Faus,

matic enforcer of fiscal and finan-

dePt.

Jicer; Fred E.Officer; DavidT^usl;
Ashbridge Jr.,
W.

It

is, in

which

national,

c

any

^HuHf humans0\iie&to

l

in

a

fraternity

inter-, policies, it should make

,,

with, lau. Andnther |old standard
a

Basis

neftUBy
the banking

and

cial laws.

Banking Should Be Assured of
r

loan

a member
of the Pennsylvania Bar and be-

„en

ls dQubtful tf humans like to be

then.f°g
°
-

bank's

Ti+i« v *ruse. Continental
Equitable
Title
&
automatic Trust Company in 1925. He joixied
Pennsylvania
Companyin

of us likes to be bridled or curbed,

country,
with safety, be

.

a

to

sound

built, this

policies

nu^ti^

freedom

American system, it is essential to deflate Big Government;

ad°Pf

the long run serve to reincentive
to
succeed

the

store

et-

The net

an

been, an expansion
government
operations
and
shrinkage

and in

the

Private credit js insured against gan his banking career with Jhftr
..f.
ol
OVn0eoi,m
Pnntinpntai
F.nni+nKigx

that

economy

of

""d- the goid standard, the credit activities. He is
o!

political abuse and excessive

.

pouring of Federal funds. Prac-; as we hope and believe, changed
tically all ma1or segments of our policies of government will tend

placed

•disposable income (as is true of
statistics on most other matters)
.irqust necessarily deal with aver-

of

rnumr

are

their

or¬

Treasurer. Harry I. Lauer, who
Douglas Freeman had in mind is joined the bank in
1921, was pro-

"Tho'L^oti^n tTX/
on the assumption that the bor-

•

M

h.

^e

in

named';at the

ganization meeting of the board.
Alfred c. Graff, with the company
since
192.9, was advanced,, from.
Treasurer to Vice-President and

money- redeemable in gold, which dent to Vice-President. Mr. KeHy'
provides a stable medium of exx„ui
Bie
tllo(
Provides a stable medium of ex- was pleated Evenitive Viee-Preai—
elected Executive Vice-Presitration will be piled many trying
^erwillkeephisjob health. he change, a measure of value, and dent last September and has;
orthat It
problems, foremost of which is will continue in good
a
storehouse of value.

the doorstep of the new Admmis-

not

cauP

.

or

now

we

as the present, it is
especially foolish to risk the de-

opportunity to be heard, but also
we

w

?f?iler^r?pectlve', St?tlsxtlcs orl

_

20

Presidents were

appointments made jeopardized.
important fiscal government
In a time
positions. We should welcome this uncertainty,

they

•"when

idend

operated during the war years, it
has demonstrated
great
vitality

high

policy.
is exactly what

your

in

will

afraid

great

economy

N. Y. voted

sons wdl cease to think of her to the board of directors o£the
have done.
No bank is stronger"?® a Lady Bountiful and regaid bank
at the annual meeting; of
-than the loans it has outstanding.
huer ?s a 1?oth®r for whom> from stockholders on Jan. 19. Directors
If loans are made to those whose the love they bear her, they are re-elected
by
the
stockholders

listened

hlSTm In order to restore the fundarestore the fundasoften, the facts mental principles and ideals of

3

re-

and

encouragement knowing that the

debt.

of

Government

to

-

-fact

the

our

atten¬

point sometimes minimized be•cause

At their annual meeting on;Jan.
21 the stockholders of The County
Trust Company of White
Plains*

not be expected to be satisfied
without good homes, automobiles,

in ..the days gone by was usually must relax y0u
on

cades,

despite

under

popular. People are television, and other things to'
afraid of it. Good credit make them happy.. You bankers

founded

Bankers

of

business enterprise.

Furthermore,

.;>!(<'-

and

ingenuity,

of

to

now

restoration

dangergpoint.

.

.

And Bankers

peace

to

JDanger of Increasing Private Debt

....

sound

been
awakening, as evidenced in the
November election; therefore, we elected Vice-President of tHe Na-

^

tion

News About Banks

standard of living unless they have
American conveniences. They can-'

will upset the economic auto-

*we

sourcefulness,
know-how

in

tribute

a

it-

now,

denced by the

know

all

we

are driving
at 80 miles an hour
>on the wrong road. If we try to

>make

i.

were
" f

-cannot turn

]ft

damaging

some*

'suddenly
ipletely.'

in-

—

deed, almost to
make

industry

are

u™*-

'has long lived under
;

war

s been built'the American

has been exerted to induce

Killi

for the first 10 months of 1952 and

who

man

a

Prp„„lir_

billion feet, denounced conservatism in
six-year period is an aver- banking, just as it has forsaken
age of nearly $25 billion a year; conservatism in its own affairs
and for tie years 1950 and 1051,
It has
seemed
to
say.
Get

For

We

t,

fact, the increase in years, the government has, in ef-

«of confiscation.
!

in

in the

the point

near

customers

our

j
Loans

that
individual
and
noncorporate debt nearly doubled in
this
period
and
that
corporate
debt increased by about 67%. As

FederarSebT and°*in nolonger

dangerously

■

compared, it will be

are

seen

all-

an

are

so

-acquiring
•acquiring it have destroyed half
•of the value of the people's money

ation

-

.

not, of protecting

or

increases in private against themselves.
which have been taking

annual

debt
new

,m

done,

had

a

elim-

was

eauiDment"
equipment."

Continued from page 45

comes.

economy in order
The
achievements

American

.

of the

cry
j

do,

us

we

to

scarce-

"(Ms
"standard
standard

and

between integrates, the superstructure must

1940
The banks
are
not
only the
noted, how- guardians of the funds of our deever, that this six-year increase positors;
they are also charged
which took place during the war with the
duty, whether we like it

hge

philosophers,

it

States

and 1946. It should be

was

Listening to the
&

.

as

strong

_

forget that the

and

*

had

never

Government of the United

much larger

a

1940 and that

cloud?

on a

determine credit policies.

money

121.4

in

true that there

take will basically

we

Let

wished

we

well

as

America must maintain
and

,

analysis of these figures in-

_

The route

we shall be rendering
to our customers, our

service

survive.
An

dicates

...

though standing

since the gold standard

1

'

-

our capacity to

To cut this to

can

move anywhere but down —
which is what it has steadily done

minimum,

61.8

519.2

sour

the value of the dollar

ly

tw-generous

when the showdown

54.6

j| decline in the period
1929 and

modern

the

129.6

intelli¬

an

want Uncle

we

come

-

—

world affairs, keep
the ground, limit our

undertakings to
or

—

in

gent part

61.3
243.3

rising

reveal

extension of credit.

what

-

398.7

chasing

want to mind

we

business, take

own

-72.6

the period from 1929 is not the base of our financial
spite of the growth of structure, but only the superstructhe economy and the lower
pur- lure.
The base is the soundness

.

our

88.9

decade

a

the

lurn in the
A turn in in( tide would

the entire country.

Corporate Noncorporate

161.5

vate debt in

Credit

riding

banking institutions,

Individual and

Private

29.7

190.8

1951

to

What Route We Take Will De¬
termine

Dollars)

Public

191.1

_

than

more

been

undoubtedly

a

1946

possess
an

of

1940_

Congress would allow — it
to me the bureaucrats have

the

supporting figures:

are some

Total

Private

ana

consideration,
opportunity for those affected
be heard, which even a rubber-

come

Here

Total Public

and

all

people

uae*
tide.

a

without that debate,

Seems

°

have

and to load them with obligations. ToanT because'of" a'

and

(Billions

governed and controlled in our
Simplest activities — laws
made

stamp

* * f

agency

ingenuity
aided

frnm npnnlo
fronvneonle

awav
awav

Net Public and Private Debt

ulations

to

the

invent,

intp thP
take the dollars

portfolios. For
we

4»

a sense, a

speed

JnseTfWctiVelv ^

The gold standard does not
itively guarantee safety

than brakes
safety.

on

-

Measuroll,

a

car

Trust

ficer,

en^orces ^seI'*

John

and

pos-

Investment
M.

nn**ra^i«ne

Of-

Cookenbacb,

nfficov

oil

any more frust operations Ullicer,
all to
guarantee Assistant Vice-President. . William,

No matter what standard

f.

Delafield, from Assistant Sec-

fiscal darn fool re^arv +0 Trust Officer
Mav A
A
hie
UU1LC1is always going to ignore his
T
,
tj
M t
brakes and
dllQ
brakes and DUSh'hiS throttle tO
push his throttle to
ana XaCJliy ivxck Baggs,
nenry iVILK.
the floor, and flaunt the laws of from Assistant Trust Officer to
the road. But that is no reason Trust Investment Officer. New ofaggregate
brakes should not be stand- ficers named were
Ralph Henry
billion, or three ard equipment.
Frank
T
Gnrhal
rPnrtiA
we

are on> some

ol,«,oxrc.

amncf

r

o

,

between total debt and total out-

put.

That

man

that

worry
„

cause

*

hits'

.

reach

is
he

a

bit

like

does

not

telling
have

how fast he is driving benothing is hurt until he

Whn
Who

the

utanfc to wait until
wants tn wait until

danger

point

of

And who loiows how close
come

a

to

and still, be safel




WP
we

1929!

we

can

Dealers" and "Fair Dealers"

the

possibility

selves

into

of

spending
prosperity, and

as

to

our-

has

demonstrated that with respect to
a government or a
nation, as with
rpsnppt

to
inHiirirllial
ttioro
respect to an individual, there io
is
only one way to live and prosper,
and that is to live within
your in-

comet

ail

than

and

half

$61
times

This

more

boom

w*

as
in
And I say to you—and I should
*
°
?
~
longest like to read into the record of Kerchner, Frank O Hara, Jack ie
and biggest in history. Some day this occasion—that the gold stand- Appleton and Charles J,? Regleiv
there will be a reckoning. Will ard should be "standard equip- Assistant
Treasurers; Philip MKa nvannrnrl
moot
tVin
mnni"
in
fVxi^.
T+
we be prepared to
meet the test? ment" in this nAiln'tmr
country.
It is a Tnrkpr
Assistant
Trust
TnvpstIt is timely to appraise the over- safety factor without which there

1939.

a

as

is

much

,

the

urn

let

all

situation

scrutinize

our

a

-

.

.

.

_

^

and

constantly

to is little effective control

loan and investment

or

currency

and

on

credit

T

ment Giticer, and L. Leslie Apple-

without which gate, Assistant Secretary.

"

The Commercial and Financial
50

Continued from page

to

lead

would

neglect

14

growing

danger.

Well, you can see that there is

trouble
around
the
world; I've pointed out some of
the high spots of trouble, but there
are many more.
There are plenty
plenty

Regime's Policy
Defeating Communism

Eisenhower
JL

Foi

of

of

which

areas

vulnerable to

are

the political
warfare which the
Russians are waging and if these
in the Pacific. Stalin cally an area which was strong in
areas were lost then
the Russian
the military sense.
has boasted that with Japan the
And the countries have quite a Communists would have largely
Soviet Union would be invincible.
considerable
military
tradition. completed their encirclement of
We don't need to believe that, but
The trouble has been that in the the United States and be ready for
at least we can see that it would
past
these
Western
European what Stalin has called the decisive
be pretty tough going
blow
against us with the odds
Now
the Soviet Russians are countries have used their military
overwhelmingly in their favor.
•
making a drive to get Japan, not strength with which to fight each
That's a gloomy picture but it
other and
fo bleed each other.
only through what they are doing
need not and it must not discourin northern areas of the islands Particularly France and Germany,
as you
know, have been fighting age us. These Russian Commuand in Korea, but also through
each other about once in every nists are not supermen and their
what
they are doing in Indo¬
strategy is not irresistible. I feel
china.
If
they could get this generation for quite a long time.
The present hope is that Germany absolutely confident that we can
peninsula
of
Indo-China, Siam
and France will join in a single make it fail. Now as I said I'm
(Thailand), Burma, Malaya, they
Defense Community not going to attempt to tell you
would have what is called the rice European
bowl of Asia. That's the area from and then we would have a situa¬ tonight in any detail what will be
the foreign policies of President
which the great peoples of Asia, tion where they could not fight
Administration.
It
each other and where their com¬ Eisenhower's
great countries of Asia such as
bined strength with that of their would be foolish to attempt to do
Japan and India,
get in large
other allies would make it un¬ that so quickly—it's only a week
measure, their food.
ago today that President EisenAnd you can see that if the So¬ likely that the Red Armies would
hower was inaugurated — but I
viet Union had control of the rice attempt to invade Western Europe.

going for

bowl

us

that

Asia

of

other

be

would

an¬

which would tend

weapon

expand their control into Japan
That is a growing

to

Chronicle

.

Thursday, January 29, 1953

.

.

(510)

and into India.

is not only a bad

danger and it

situation because of the threat in

the Asian countries that I refer to

the French who

but also because
are

much of the fighting

doing

there

a
great effort
that
capacity of their

making

are

and that effort subtracts just
from

much

building

the

a

making"

the

European army and
contribution which

otherwise they could be expected
to make. I'll touch on that prob¬
lem

later

when

on

get

we

to

Europe.

Now, then, we can go on to the
next

area'

is

which

the

That's

we

it

the plan

Unfortunately

and

stalled.
though some of

as

seems

Now

ourselves.

that

the

contains
reserves

-

greatest
that there

area

known
in

are

oil
the

Let

me

say

this

in

that

to youT first of all
trip we are taking

the Con¬

ing commitments is for

our

of the United States work¬
ing in cooperation with the ex¬

must be looked upon as

cen¬

If

all

hands

that

of

of

power.

tremendous

a

balance

of

economic

is

that

a

the

area

the end of the Second

World War,

almost

the
just refuse to believe, but if
the
appeared there were no chance
world
which
has
long
been
guarded and called the life-line getting effective unity, and if
and

There, there

the

are

of

scruples,

of

there is such

difficulties at the

America's

Government and the Government ing to
of

Egypt which relates to
question of the defense and

the
con¬

trol of the Suez Canal.

law.

own

see

you

the

around

looked

at

that

world

Asia

we

so

far

trol

most

should

be

trouble

con¬

If

there

there,

that

of Africa.

South

take

But

the

look
we've

gone

and we've looked

America for

for Europe.
And then

we

come

now,

the globe, to Western
itself. And in Western
we find that there is in
existence there one of our major
foreign policies, the foreign policy
that is called by the word, NATO;
NATO standing for North Atlan¬
tic Treaty Organization. The pur¬
pose tbere was to tie the Western
(European countries together with
association
from
United States
•

The Russian Communists, as I've wondering whether the State De¬
pointed j)ut, have swallowed a partment can really be trusted to
great many people to date, ap- take a strong lead against Russian
There
have
been
proximately 800,000.000, but you communism.
know there is such a thing as in- some shocking revelations which

showed

digestion. People don't always
get stronger
by eating more;;
sometime^' they eat more than
they can" digest and
then they
get weaker instead of getting
..

I

to

employed

the

of

atomic

that all of
the resources of government, and
that includes the F.B.I., are going

Signs -of Indigestion in
Communist World

be

can assure

such people

any

you

be

to
are

that

sure

detected and

And already there are signs of cleaned out. I can promise you
indigestion within the Russian that our foreign policies, our new
Communist /world. The purges policies, will never to the slightest
and the trials that are going on degree reflect any lack of faith in
in Eastern Europe, the wholesale the ideals and the principles on
executions that are going on in which this nation was founded.
And let me now in conclusion
Communist China, all these things
show the people are restive and say that I believe that our foreign
>

are

unhappy.

The

fact that the policies

should be open so that
know what they are and
they should be sufficiently simple

Communist rulers feel that they

you

of

weakness,

not

a

sign

can

that you

so

be

of

can

understand them

judge them

and

and they should

sufficiently decent and moral
that

fit into your
think is right.
These principles of openness, sim¬
plicity and righteousness—those
principles are those which are in
so

strength.

idea

And a great deal can be done
to make these peoples, these captive peoples, retain such a love
of freedom and independence and
to bring such a love and determination to keep independence
on the part of these peoples that
I've talked about who are menaced that they can't be swallowed

of

they

will

what

you

accord with

what used

to

tho

be

great American traditional foreign

policy—that

been

has

tradition and I

am

our

great

pround that we

here in the State Department and
in our
foreign service will have

performance, by our own ex-

$15 Million Bonds of;
State of New

Jersey

Offered fo Investors

say

that

any

of

their

the

minds

Communist

or

are

cause,

they've used vio—

on

a

countries

local scale in
of

the

world

.

1.10% to 1.80%, according to ma¬

of V°u has &ot- 3 Part in mak"
inS a successful foreign policy for
the United States, because whether

one

turity.

for

effective limitation

not we peacefully sycceed will
largely depend upoh the demonstration you make as to the value

destroy the traditional friend-:

must

have

tablishment

a

and

.

^

we

of

we

arma-

ourselves

should

offering

include The Chase National
First National Bank, Ne>v
York; Harriman Ripley & Co.,
Inc.;
The
First
Boston
Corp.;
and productivity of liberty,
You must work hard enough at* Chemical Bank & Trust Co.; The
whatever your task is to show Northern Trust Co.; Blyth & Co.,
that freedom is. mdi-e productive- Inc.;
Kidder,
Peabody •&
Co.;
than slavery.
You -must be re- Kuhn, Loeb & Co.; E'stabrook &
soureeful and inventive enough so Co.; R. W. Pressprich & Co.; F. S.
that our instruments of peace and
Moseley & Co., Inc.; Chas.
R.
if need be war-rare better than Weigold & Co., Inc.; Bacon, Stev¬
enson
& Co.; First of Michigan
any that can be indented by the'
despots and their captives.
And Corp.; Eldredge & Co.* Inc.; A.
we
must be compassionate and Webster Dougherty & Co.;. Map-

or

group

Bank;

Bride, Miller & Co.; Van Deventer
Brothers, Inc.* Camden Trust Co.;

making

the

world

that

ther Russian-

Quinlan;

and

-Stubbs,

Inc.

*«

.

Walter M. Wells With

then all of us

en--out

&

Cook

Smith & Lombardo,

freedom? seem desirable,,
together will-make,
strong military es-; freedom so sought after through-;;

ment.„ Therefore,
,

.

Other members of the

i

-

;

Douglass

'

(Special to The FimanciaIi Chronicle}

'

the creation of military Communists will he bound to fail,
BEVERLY
HILLS, Calif. - —
among our friends but- in their strategy of encircling us
American republics. The past Ad-;
WaRer M. Wells has become asso¬
the purpose is never to wage warby swallowing bp the rest of the"
ministration has been so preoccu-; but
ciated with Douglass & Co., 464
only to deter war.
:•
<
* world. >f ;
1
\
North Bedford Drive. Mr. Welis
pied with some of these problems.
Not only shall we never invoke •*
i
.
«„
was
formerly •• with' First Cali¬
of Europe and Asia and Africa- war to achieve our pyrposes but" - "9 -WiU Not
Intimidated
fornia
Company and jBhearso'n,
we
shall try to the best of our
The point I want to emphasize
that I referred to, that I fear, it"
ship

-

between

the

people

of the

courage

"

strength

.

.

.

.

r

ability to stop the wars that are is that the heart of
successful*
going on in the world, no^ foreign policy te our Rational con-"
Soutji America and taken it for ^
tably these wars in Korea; and duct and example and that is a
and from Canada so as to create granted that we could forget about Indo-China. Today these wars go^ matter for every individual andthere a community which would South America for a time and on because the enemy thinks he's not just the diplomats. So far asbe strong enough to deter any at¬
getting an advantage by contin-; your government is concerned you
then go back again and find every-,
uing the war. I believe that Gen- -may be sure that it will not be.
tack on Western Europe by the
or
conRed Armies. This area of Western thing the same as it was before.. eral Eisenhower -will 'find- the intimidated, "sub#fted
Europe has always been histori¬ But. actually any such policy of ways to make the enemy change ^quered. Our nation must stand as




that

bomb.

..

_

Communists

some

secrets—even

stronger,

*

that

sympathizers have found their
way into high places and betrayed

and

They're building up a vast mili-- friendly and good neighbors betary machine;
they've rejected eapse people who are wholly-self-.
United Nations proposals for an-ish are never an attractive people.;
armistice in Korea; and they've
If each of' you will recognize,
rejected United Nations proposals that you have a part to play in,

as we

to

to

including Korea and Indo-China.

quarters which are
away,
largely
under¬
and they're trying

out

several

some

ground so far,

gp ardund

Europe
Europe

ip
working

transformation

on

We know that

strong Communist movements in
South America and Fascist influ¬
ences

went

lence, at least

granted.

Europe and Africa, Africa being
a
large source of raw materials

they deny that
thing as a moral

a

world

traitors to

reality is that there are

would break the contact between

the

Stalin

we move on

who still have political

of

fact

who thought that their goals could
be achieved peacefully have either

further, we at
Europe, and we've looked at
can go to Africa.
And throughout
Africa, but then also we've got
Africa the Communists are trying
this hemisphere to look at. And
to arouse the native people into
we have to look at South America.
revolt against the Western Euro¬
Sometimes
we're
inclined
to
peans

in

They preach violence. Stalin

that

foreign pol¬
as

honorable peace.

Now I suppose some of you are

recall,-

which they seek cannot, they say,be achieved without violence. And

icy in relation to Western Europe.
So

you

has said and it is taught to every
one
of his Communist followers

to give a little re-think¬

necessary

an

own

the Bible-,

portion

present time between the British

Then if

policy.

seaways

it
of
in
which made it possible for Europe particular France, Germany and
to be in communication with Asia. England should go their separate
ways, then certainly it would be
world

achieve

The NationaL City Bank of New
Germany and Japan, for example,And it means that each of you York and associates are offering
have taken the sword with seem-1 has a task in foreign policy. For- $15,000,000 State of New Jersey
ingly overwhelming power only ei£n policy isn't just something 3%, 1V2% and 1%% State Teach¬
in the end to perish miserably., - that's conducted by- Secretaries of ers
College '.Construction bonds
Now, of course, we know that State and by Ambassadors in dif- maturing Feb. 1, 1955 to 1968. The
our
enemies do not have moral ferent parts of the world, every- bonds are priced to yield from

$30,000,000,000 have gone
into Western Europe. If, however,
the Suez Canal
there were no chance, and that I

And furthermore this

also has control of
and-

has made

States

passed into the
unity there. Of the $40,000,000,000
potential enemies
which we have sent abroad since

make

the

.

big investment in Western Europe
on the theory that there could be

that

our

would

shift-in

United

The

■

despotism, the totalitarian dictatorship of the Communist world,

amples, how good freedom is and
that all they that take the swor'd
h?w much better it js than desperish with the sword. And even POstism is. Now who can put on
people who do not accept that as that performance, that demona doctrine of
faith, they should at stration to show that example?
least remember that twice within The only people in the world that
our generation great and powerful
can do it are you, the people of
despots have taken the sword.- the United States of America.

departments of the Gov¬
ernment. We shall be there to ob¬
serve
and to listen but not to
make commitments.

peoples of the world

I am confident, peacefully

is absolutely

It says in

gress

area

the other free

this: you

Together with

.

not

are

we

say

us

to the
peoples

and digested by Soviet Communism. And perhaps in time the a chance to carry on that great
opposed indigestion will become so acute, tradition and to live up to it. And
in that way we shall,
to
I think,
any
such policy ancf so, of that it might be fatal.-.
course, am I and all of my associ-Now what's tm» job and our'; deserve and I hope we shall re¬
ates in the State Department and
task in that respect? Our job is ceive the support, the confidence
the foreign service. We shall never to serve our own enlightened self- and the cooperation of the Ameri¬
choose a war as the instrument of interest by demonstrating by our can people.

Eisenhower

the downgrade./

Hitler in 1940 said that that

the

War

We want to look Russia was inevitable, and that
the situation over at first hand we'd better have it soon rather
and
see
whether this trend to than later because they said time
unity is on the upgrade or is on is running against us. President

ecutive

aspirations.

Preventive

world, let

count upon us.

can

terrorism in order to make the
people do their will, that fact is a

no

the

of

have to resort to these tactics of

Have

slavery,

timid and the intimidated

we can,

really be absorbed

of

outline

the

to

as

this week.

rope

world, and the Soviet interest is
shown by the fact that Stalin
when he
was
negotiating with

ter of Soviet

two

Communist

der

storm-tossed

a

by the

never

policy, one negative
the other positive.

Will

description. The problem of mak¬

and

try¬

are

the

you

.

British

of

hatred

give

Now first the negative one. We
people and some of
the German people want again to will not try to meet the Soviet
go in their separate ways. That's strategy of encirclement by ourone of the reasons why President selves
starting a war. Take that
A few
Eisenhower asked me
and Mr. for certain.
people here
Stassen, who directs the Mutual and there in private life have
Assistance Program, to go to Eu¬ suggested that a war with Soviet
French

the

ing to inspire the Arabs with a
fanatical

what

basis of

the

on

about him

in

rock

To all those suffering un¬

world.

respect for freedom that they can

sign

going to make any
commitments of any kind, sort or

find that the Communists

can

to be somewhat

seems

And

I

know

good idea and it has indications
country bipartisan our foreign

a

support.
now

I

this

in

had

Arab

And in the Middle East

world.

think

Yet in Western Europe

No Unity

solid

a

his mind in that respect so that
they too will want peace.
Now the otner purpose of our
foreign policy, and this is tne
positive aspect, must be to create
in other peoples such a love and

may

have

somewhat

neglected I

Hammill & Co.

now

With WaddeU & Reed
(Special to The Financial Chronicle}

BEVERLY
ber

with

A.

HILLS, Calif.—WU-

Barton

Waddell

is

now

connected

& Reed, Inc.,

Wilshire Boulevard.

8943

Number 5190

Volume 177

.

The Commercial and Financial Chronicle

.

.

(511)

The

Indications of Current
Business

Activity

week
Latest

*

AMERICAN IRON AND STEEL INSTITUTE:
Indicated

steel

Equivalent

operations

Previous

Week

(percent of capacity)

following statistical tabulations

latest week
or

or

month available.

month ended
Month

Week

Ago

oil

Crude

and

42

gallons

Crude

runs

condensate

§99.3

'99.7

107.2

98.8

1

§2,238,000

'2,248,000

2,226,000

2,053,000

F

DEPT.

MERCE

(bbls

average

of

of

SERIES

OF

Month

—

17

6,524,000

6,468,300

6,610,800

Previous

Year

Month

Ago

COM-

of

Nov.

17

(7,081,000

$43,512

7,117,000

6,928,000

17

24.037,000

$42,692

'10,1'22

10,373

'20,652

20,818

$74,656

'$74,189

$73,883

$1,742,000

$248,700

$1,819,600

6,639,000

an.

'$43,415

10,178
20,966

Retail

6,196,500

an.

of that date:
('(dD

'

dollars):

Wholesale
an.

(bbls.)

23,768,000

23,497,000

2,791,000

'3,080,000

17

10,903,000

'10,900,000

2,942,000
10,583,000

2,872,000

an.
an.

17

9,023,000

Stocks at refineries, bulk terminals, in transit, in
pipe lines—
Finished and unfinished gasoline (bbls.) at
Jan. 17
Kerosene (bbls.) at
.
Jan. 17

9,350,000

9,134,000

9,121,000

143,344,000

'140,741,000

131.017,000

140,941,000

224,932,000

'26,234,000

28,652,000

24,060,000

8«, 683,000

'94,323,000

105,884.000

Total

22,056,000

an. 17

75,358,000

Kerosene output
1

NEW

(millions

Manufacturing

—

stills—daily average
Gasoline output (bbls.)

are as

Month

1

Feb.

output—daily

each)

to

of quotations,

cases

Ago

-Feb.

(net tons)

in

or,

either for the

are

Latest

AMERICAN PETROLEUM INSTITUTE:

.

Dates shown in first column

Year

to—

Steel ingots and castings

production and other figures for the

cover

that date,

on

51

Distillate fuel
Residual fuel

Distillate

fuel oil

ASSOCIATION

(bbls.)

(bbls.)

oil

OF

(bbls.)

at

(bbls.)

an.

at

of

A7,745,COO

CONSTRUCTION

48,876,000

48,504,000

of cars)

an.

688,232

710,358

747,660

648,987

578,418

680,784

676,40 7

U.

S.

Private
;

*an-

construction

17

and

State

Bituminous

Beehive

BUREAU

and

coal

Pennsylvania

S.

lignite

anthracite

coke

OF

(tons)

(tons)

122,994,000

382,967,000

87,365,000
67,137,000
40,771,000

64,446,000

26,366,000

SALES

SYSTEM—1947-40

AVERAGE

=

IN

of

LARGE

of

as

CITIES-

Dec.

15:
190.7

;

products
vegetables

79,500,000

'9,600,000

10,210,000

11,330,000

667,000

706,000

988,000

110,800

101,000

148,000

703,000.

r,

■

112,400

oils

and

&2

rr<.

.

89

237

216.7

236.7

236.5

346.1

346.8

139.8

'

140.3

157.8

190.5

sweets

190.6

186.4

201.3

206.8

145.3

Fuel,

fuels
:

144.9

99.4

216.5

-

Ice

139.2

149.0

99.6

and refrigerators
electricity

and

143.9

149.9

electricity

Gas

90

213.2

226.0
,

201.1

and

Other

Jfan. 17

274.6

228.2

347.0

Rent

»

190.4

263.8

236.4

—

Clothing
17

139.1
232.2

194.3

201.8
and

Sugar

„jS

191.1

217.1

products

232.3

194.5
257.6

bakery

Fats

^

RESERVE.

100

Month

—

229.9

and

Beverages

17,066,000

.Ja.6- 17

INDEX—FEDERAL

DE¬

foods

Fruits

50,000,000

28,275,000

S.

omitted)

FAMILIES

Dairy
Eggs

67,066,000

101,414,000

U.

—

COMMERCE

(000's

Cereals

242,207,000

165,860.000

Jjih. 17

STORE

OF

REPORTED

items

All

$309,273,000

77,809.000

*rf
Jan.

MINES):

(tons)

DEPARTMENT

$154,502,000

Jan/22

-

(U.

$548,827,000

Jan.£2

municipal

OUTPUT

32

—___.

Federal
COAL

$229,078,030

22?

106,034.000

an.

Public construction

„

CORPORATIONS

Meats

construction

PUBLICLY

—

1035-89=1 GO—Adjusted

-

NEWS-RECORD:

Total

S.

INCOME

ENGINEERING

—

U.

December

All

*an. 17

(no.

DIVIDENDS

BY

41,059,000

705,479

i.

cars)

freight received fiom connections

ENGIVEERING

17

RAILROADS:

(number

5H

9,606,000

PARTMENT

Jan. 17

AMERICAN

freight loaded

Revenue
CIVIL

output

oil output

Residual fuel

Revenue

(bbls.)

oil

166.5

■

97.5

213.7
'

206.6

166.5

156.3

'

Housefurnishings

EDISON ELECTRIC INSTITUTE:

OOOlkwh.)

Electric output (in

^JJan. 24

8,144,074-

--

8,121,357

205.3

Miscellaneous

7,549,730

204.9'

175.0

!

:

7,616,421

174.7

169.1

759,737

■

210.2

'

FAILURES

(COMMERCIAL

AND

INDUSTRIAL)

—

DUN

&

BRADSTREET, INC
IRON AGE

steel

Pig iron
METAL

lb.)

(per

Electrolytic

(E.

J.

(New York)

4.376c

4.376c

$55.26

$55.26

$52.72

$42.00

$42.00

$42.00

In

4.131c

$55.26

$42.00

Lead

(St. Louis)

Zinc

(East St.

--—Jan. 21

24.200c

14.000c.r

14.000c

14.000c

13.800c

13.800c

13.800c

18.800c

12.500c

12.500c

12.500c

19.500c

—,-

_

U. B. Government Bonds

Jan. 27

95.72

95.97

96.05

108.70

108,88

109.60

112.19

112.37

113.50

111.07

112.19

108,16 v

108.34

108.88

U.

S.

Group

106.92

BOND

108152

108.70

109.42

DAILY

111.44

112.37

AVERAGES:
Jan. 27

2.80

3.23

3.19
2.98

2.95

Group

PAPERBOARD

!<■ Orders received

(tons)

Percentage

of

Unfilled

OIL,

AVERAGE

;

period
REPORTER PRICE

Numbei

100

-

.——Jan

a-

Number
Dollar

of

-■

7'

of

Customers'

short

Customers'

(

Rouua-iot

;

Matured

$83

96

85

$512,208

441,859

392,482

of

Other

367946

26,709

28,876

867,325

$46,713,904

$33,201,396

$37,618,852

25,868

32,435

27,542

147

85

105

32,553

25,783

32,330

27,327

920,904

ol

■"

905,070

io

2,563

3,194

731,645

917,710

$37,682,687

$26,981,457

$36,125,595

OF

285,170

234,940

327,780

Other

285,170

234,946

327/780

Jan. 10

7,701

(SHARES):

1

-

411,750

241,260

281,220

238,270

7,516,380

7,223,140

9,001.240

7,674,620

7,420,160

9,239,510

FOR

ACCOUNT

OF

L___

■<•497,020

MEM¬

_i_L

,~f''''
^

*»/

on

780,320

744,490

101,100

105,060

161,530

Totai

611,870

704,900

398.000

$2,398,000

$23,795

♦$23,615

$22,337

19,717

'19,800

20,355

$43,512

'$43,415

23,510

'24,728

S42J592
22,im

$30,228,000

$29,644,000

$28,809,000

$276.1

♦$276.1

187.9

'187.5

184.5

•184.0

Sales

—

716,930

868,430

163,600

184,500

231,840

<

initiated off the floor—

5,600

15,200

9,400

173,700

175,140

242,850

190,340

252,250
364,330

28,420

22,400

57.310

222,475

268,843

392,455

333,520

297,263

414,855

U.

—

S.

A'.i

..uf

F>.?u

iiiuiiities

c-i-A

Pro'X>seti

PRICES

of

1,330,131

1,228,540

1,531,450

971,687

124,580

148,680

193,330

177,150

1,055,853

1,340,205
1,533,535

1,224,030

—

-<

'

Jan. 20
V

109.6

Jan. 20

100.1

100.7

foods

<4us

Jan. 20

104.1

•104.4

against the Jan.




I,

1952

basis

of

20.8

32.7

"*32.9

31»7

3.8

34

and

dividends-

4.2

♦53.5

52.5

21.3

•21.3

20.5

13.0

12.8

income

_—

FARMERS

DEPT.

4.6

53,2

OF

—

•

256.0

12.4

*255.4

2394

INDEX

AGRICUL¬

farm

15:

277

products

282

257

301

.

267

260

-

248

Food, grain
grain

and

hay

—j,—_

Cotton

102.8

•109.8

109.5

98.1

•99.3

112.8

112.8

crude runs.
tons.

SBased

on

new

$Ten days.

*

annual capacity of
'

117,547,470 tons

249

213

219-

224

429

424

311

288

Livestock

Dairy
'

■

238

crops

Oil-bearing

112.7

108.587 _70

240

215

195
Truok

92.5

aJ

'•

(Includes 659,000 barrels of foreign

46L5

4.6

101.0

y

Jan. 20
and

-

21.8

August, 1909-July, 1941=100—As

November

All

Feed

;

r .-ods

ngnre.

BY

♦49.9

21.9

social

income—____—_

income

S.

,

Unadjusted—

Meat

vd
of

U.

—

,

,

412

,

Ah '•nu'jj.oRities other than farm
,

for

payments

RECEIVED

1,046,880

1,204,533

rental

interest

NUMBER

—-

—

7K8

50.1

income

transfer

174.8

17L3
-

3.7

T

contributions

and

$2604
'

'82.9

83.2

—

V.
——

__

ti

COMMERCE)—Month

—

nonagricultural

TURE

*

ids.

f
{

Total

DEPTb OF

Commodity Qjonp—
.

STATES

—...

labor

Personal

390,830

Jan.

;

OF

UNITED

(in billions):

employee

Proprietors

Total

Jan.

SERIES

omitted)

THE

and salary

Other

226,857

240,355

Jan.

100):

(000's

3

INCOME IN

insurance

144,350

299,550

for account of members—

;

November

industries

Less

137.850

386,211

iJi— Jan.

.

NEW

—

CIRCULATION—TREASURY DEPT.

Government

6,500

Jan.

—

=

dollars):

—

—

November

Service

y-f

1

;

J *>47-49

SERIES—

of

receipts, total
employer disbursement
Commodity
producing
industries
Distributing industries

131,000

Jan.

;
—

PRICES,

—

SALES

&

NEW

(millions

Total personal Income

613,830

1,185,925
LABO R

INVENTORIES

COMMERCE)

November

'

of

of

688,850

Jan.

—

.

sales

WHOLESALE

OF
of

(DEPARTMENT

575,510

the floor—

purchases

Snort

,

-

$2,661,000

Durables

llj,34d

665,170

935,280

1,061,345

.

"•in

V

$2,516,000

Wage

Jan.

-

Otliex sales

.♦

'453,890

Total

Jan.

Tota: juuhd-lot transactions

$315,371,000

"v

INSTITUTE

$1,547,900

(DEPT.

i

Jan.

;

purchases

—

INSURANCE—Month of November

$1,669,000

Month

5,862,240

158,240

17,880

irHiisacuons

^otnt

51,845,000

$339,557,000

499,000

5,623,450

3

,

27y,300

Other

48,501,000

'346,000

238,790

3

Jan.

sales

'

8,311,000

46,769,000
50,458,000

'$1,816,000

—As

—jan.

sales

Other

.

52,916,000

omitted):

PERSONAL

3

———

purchase*

Short
m

30,560,060

45,127,000

INSURANCE PURCHASES

MONEY IN

—Jan.

initiated

31,605,000

$304,060,000

MANUFACTURERS'

537,570

766,270
rtiihr. ctions

42,448,000

28,595,000

:

'

,,

sales

Toi.u

$136,825,000

39,111,000
9,220,000

Total

-

'

sales

Other

$154,860,000

32,337,000
7,874,000

Non durables

.

TRANSACTIONS

Other

$141,626,000
!_

Total

1

——

Snort

November:

182,340

Jan. io

Tata,; purchases

-

)

TO

LIFE-

474,000

BERS; EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
specialists in stocks in which registered—

.,</

OF

373,000

Transactions 01

■

PAYMENTS

8,942,000

Inventories:

sales

Total, sales

ROUND-LOT

7,023,000

Group

182,340

jan. io

MEMBERS

sales—

sales

of

Ordinary

$32,714,977

jan. jo

sales—

——

ACCOUNT

Round-lot

Short

15,965,000

'9,190,000
'7,199,000

I

7,157,000

__

(000's

763,102

10

ROUND-LOT STOCK SALES ON THE NEW YORK
EXCHANGE AND ROUND-LOT STOCK
TRANSACTIONS

FOR

734,213

4,906

-

TOTAL

Total

129.8

770,803

•

900,164

jan

——:

shares—

•

..j

'16,389,000

9,336,000

"

—Jan. 10

_

«

225

•

purchases by dealers—

Nuwtier

16,493,000

values

OF LIFE

$54,174,482

32,700

105.1

"

'141.7

employees In manufac¬

Policy dividends

1,122,380

*

;

4„

,

143.8

Annuity payments

40,243

758,703

5,701,000

'107.1

Average=100)—

Disability payments

113.80

7,296,000

r

5,829,000

Avge.=100)—

z.

of

12,997,000

'7,417,000

107.8

endowments

Total

'

sales

Round-lot

108.77

'13,246,000

..

Industrial

dealers-

by

sales

'108.63

1,074,494

_jan

shares—Total

Short

108.58

Jan. 10

.

433.7

13,337,000

Death benefits

jan. io

—

sales

Number

(1947-49

INSURANCE—BENEFIT

193,052

.—Jan. 10

sales

value

20,264,000
7,823,000

499.0

5,784,000

POLICYHOLDERS—INSTITUTE

"

sales

other sales

Dollar

456.4

204,021

Jan. 10

,__

shares—Total

LIFE

500,300

17

workers)

manufacturing

178,124

Jan. 10

Customers' other sales
Number

9,219,000

483.3

goods
Nondurable goods

LIFE

:

sales

20,180,000

8,637,000

Durable

242,594

Jan. 10

short

2.93

—

shares

Customers'

•,

23,152,000

20,290,000

industries—

$260,644

J:.n. 10

value

23,070,000
Dec

7,553,000

(1947-43

number

Surrender

Odti-ioi purcnases by dealers (customers' sales)—
Number of orders—Customers' total sales——

\

$295,157

-

orders

of

407.7

INDEX—

Odd-lot sales by dealers (customers' purchases;

v

^

405.4

%,

Indexes

-95

-o—Jan. 23
STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODD- •
LOT
DEALERS AND
SPECIALISTS ON N. Y. STOCK
EXCHANGE — SECURITIES EXCHANGE COMMISSION:

*{'

3.04

All

3.21

3.09

omitted)

(production

manufacturing

turing

3.44

3.20

239,772

m

-Jan. 17

of

14,529,763

COMMERCE):

manufacturing

Payroll

3.56

3.34

244,187'

—Jan. 17
__;

end

at

DRUG
=

Jan. 17

.

._

:

(tons)

PAINT AND

1949

J

orders

—_____—

—

activity

3.50

3.37

494.6

-

All

f

.

116,538

AND

INSURANCE—Month

(tons)—--—

Production

■

3.51
-.3.24

3.10

'

-Jan. 27

—

ASSOCIATION:

OF

(000's

Employment Indexes

3.30

3.38

hours

manufacturing

Estimated

3.03

*3.23

3.52
v

-ian. 27

——

3.06

3.26

3.25

r

-

3.11

3.27

Jan. 27

INDEX

20,252,000

PAYROLLS—U. S. DEPT.
LABOR—REVISED SERIES—Month of

All

"

3.12

——Jan. 27

COMMODITY

n

3.21

3.04

r

Industrials

NATIONAL

;

2.74

3.24

Jan. 27

MOODY'S

"

vT

'-'3;05

———Jan. 27

k

2.80

Jan. 27

Railroad Group
Public Utilities Group

•

2.78

*.

—-•—Tan. 27

—„

■

;.

(DEPT.

Durable
goods
Nondurable goods

f

Aa

.

20,180,000

October
All

'

Government Bonds

Aaa

539,033

20,290,000

27

(DEPT.
OF
COMERCE):
(exclusive of linters) prior to

spindle

OF

113.50

*

Average corporate

Dec.

14,714,878

EMPLOYMENT

109.24

*

YIELD

5,683,708

109,328

789,906

Active spindle hours per spindle in place Dec.

105.17

-

-

of

as

16

Active

103.13

106.39

Jan. 27

-

__

7,462,269

114,027

Spinning spindles in place on Dec. 27
Spinning spindles active on Dec. 27

107.62

104.14

100.21

,C 103.30:

Railroad Group

MOODY'S

V

103.97

Jan. 27

'

Group

1,464,783

671,803
1,596,805

7,802,862

27

27

COTTON SPINNING

112.56

-

Industrial

of Dec.

as

697,984
1,602,810

114.08

110.88

"

Jan. 27

—

Utilities

<

December

GINNING

Jan.

109.24

Aa

Public

spindles active

96.43

^t-^-Jan. 27

Average corporate

;

of

903,432

Dec.

Running bales

MOODY'S BOND PRICES DAILY AVERAGES:
i
-

COM-

19.000c

Jan. 21

i*—aJan. 21

———.

OF

BALES:

month

consuming establishments

COTTON

27.425c
103.000c

of——Jan. 21

.—

DEPT.

In public storage as of Dec. 27
Linters—Consumed month of December

24.200c

34.350c
121.500c

——Jan. 21

at

24.200c

34.875c
121.500c

—--Jan.21

at

Louis)

24.200c

34.950c

121.500c.

—

RUNNING

—

Cotton

at

at—

LINTERS

Stocks

.

Export refinery at_
(New York)

!

4.376c

Jan. 20

QUOTATIONS):

Domestic refinery at

MERCE

.

copper—

Straits tin
Lead

142

AND

Lint—Consumed

,.._Jan. 20

M.

&

95

_i£LJan. 20

.

(per gross ton)

PRICES

158

>j£-.

(per gross ton)

Scrap steel

173

r_Jan. 22

COMPOSITE PRICES:

Finished

,

COTTON

crops

and

:

products

animals

products

-

Poultry and eggs

——-—

189

-

300

345

1,
<.

.

172

249

:

304

295

-

V

•301
328

310

318-

.238

..

316
228

•j
•

•

>

Jjo.

249

•

y

The Commercial and Financial Chronicle

.

.

Thursday, January 29, 1953

.

(512)

52

Air Line would be Very convenient if

selling just over five times; or
Kansas City Southern at less
than five times. Then there is
Illinois Central, Chesapeake &

Tomorrow's

Whyte

==Bj WALTER WHYTE

change could have saved on
current and other expenses by
amounted

eighths of

about

to
a

point either way.

one

might,

«2own to

the

which way

on

ml the past
it looks

as

thing

—

will they go?

stockholders next year

a'

Thus

1932

problems,

two or three days,
if the immediate

consumers seemed quite lmperviin ous to the blandishments of re-

and tailers trying to work off congested

prospects

future
even

never

of those hard. SO°d5
knew" would be hard

though we can inventories
sure of our ground, "everybody

be too

Prospects for the current year
to be shaping up something

seem

like this:
conditions

aiit }innk S
nbpni
L

th?n«

the market action

interest

our

exploring

few parts of the world
where people have a sufficient
margin above subsistence to afford
the luxury of
not spending,
Here the typical consumer can cut
back his pace of spending and
still remain quite comfortable,
During much of 1951, for example,

are very

ran

at

gener-

about

for

ever

as

far

such

see

MrlXlv

7

to §et in-1,951.

'he

increase in employment and
somewhat higher average

ing

the relatively low spend¬

involved

scale

of

in

$10 billion more output
1952.
Stepped-up ct>n~

relationship to incomes
reestablished, instal-

(2)

It

is not apparently to be
residential or industrial

found

in

State

ities

into

dition.

a

My

and

local¬

serious financial
own

for example, a

current

To

the

that

extent

the

trend

of

inadequate capital outlays changes at all, i\
local govern¬ will apparently be in the down¬

this

ment services has put many

some

of

direction.

ward

Our export markets cannot

(3)

con¬

State of Michigan,
wealthy State in a

be

significantly

eign

demand

expanded.

for

For¬

American

products is, of course, largely linw
ited

by the dollars flowing to the
through our im¬
loans to the rest of the

rest of the world

ports,

commitments.

world, and gifts. Neither Congress
In fact, an important reason for
not public opinion seems inclined
insisting that Federal expenditures
to
increase aid (gifts), which is
be pared down is to give State
probably a thoroughly
sensible
and local expenditures room for
position. Conditions abroad do not
expansion. We should, therefore,
make lending to foreign borrow¬
expect that a major part of any
ers
a
very attractive proposition
early relief from heavy Federal
taxation will be offset by a corre¬

sponding

in

increase

State

local taxation.

to

American

investors.

We

shall

probably, therefore, do well if we
and
can expand our imports by enough

to maintain roughly our present
(3) How Will the Demand for volume of
exports.
Machinery and
Equipment
and
(4)
Many
consumer
markets
New Construction Compare With
seem to be approaching saturation.
Last Year? These so-called capital
Production of passenger cars is
outlays accounted for a $52 billion about 25% below
peak 1950 pro¬
market last year.
Indications are duction rates. Production of house¬

that the

figure will be about the hold appliances is similarly lower,,
though
up
considerably
from:
year-ago levels. Yet all these items
are
readily available to consum¬

that 1953 will show about 150,000
fewer homes built.

added up at
about

be

#

When the sales reports are wage rates. Instalment debt,
indicate that the
the end of 19o3, busi- though growing rapidly, is still
nesses
will find that they sold JQW rejative to income levels. If tial construction
(^.)

added

found?

to

facilities construction, or in the machinery
provided. Recently built com¬ and equipment industries. Indeed
munities are'without the custo¬ as just indicated, these industries
own,
mary standard of urban services. will do well to hold their

There are three reasons for same for 1953, or possibly some¬
thinking consumer spending will what less.
ke higher in 1953. Pay envelopes
In
1952, about
1,100,000 new
will contain at least $6 billion dwelling units were built. The F.
more in take-home pay, reflecting W. Dodge Corporation estimates
some

,

.

capacity.
private de¬

productive

this

mand

are

basis and unable to meet

that what you

know

also

substan¬

period of unparalleled prosperity,
currently on a hand-to-mouth

operations.

banking

of

nc

#

*

♦

Based

all comes

it

same

presented as

Economic Picture for 1953
to

exist so long, then something
liappens. The chief question,
-Jl imagine, that concerns most
^readers, is in which direction
ivill this "something" go. Try
&s

are

unless

is

But you
report
will be
*
$
*
substantially
influenced by the
general
business
situation and
It might be timely to ob¬
how well you adapt to these conserve that markets,
like na¬ ditions.
It is, in other words,
ture, abhor vacuums. A state much easier to turn in a good
of suspended animation can year-end report for a 1952 than
even

little value

to

is

Where

tial additions to parking

its

three-

Maxsy stocks didn't
swing that widely.

They

those of the author only.]

Continued from first page

Fluctuations

just closing up.

Chronicle.

Ex¬

Stock

the

It

disrepair and wholly additions

Improved street systems will

be of

Even

necessarily at any

in

are

inadequate for the 50% increase
in our car population since pre¬

1

[The views expressed in this

their earnings.

in ratio to

tems

war.

stocks

rule of thumb that says

plished in the past few days it
if

*

%

*

there is no

Unfortunately
=

For all the market accom¬ have to sell at certain prices

as

was.

action.

Says—

seems

there

Fundamentally, I still feel
that even if there be a rally
Ohio and probably a few more in the immediate offing, the
longer viewpoint calls for re¬
rails.

Markets
Walter

Seaboard

is

there

about the

same

Other experts

pace

of- residen¬

Present

ers.

raise
any

market

conditions-

the

question as to whether
significant increase in produc¬

tion

these

of

items

could

be

sold:

if

industry could switch out:
for 1953 will be
of defense production.

as

even

last year.

There is the problem.
Will a.
much the
decline
in
government
demand,
same for plant and equipment ex¬
spending will account for ment debt could rise another $3
and capital spending coincide with,
about $5 billion ot this, and in- bdlion or 20%. Some further ex- penditures of businesses. Expan¬
a
saturated consumer-goods mar¬
sion plans in many lines are ap¬
creased government spending the
ket situation and produce our first
pansion of instaiment credit can,
proaching completion.
The steel
remainder.
real postwar recession?
therefore, help to market the inIf so, re¬
♦
*
*.
industry, for example, will spend
duced
(3) Because of additions to pro- creased output of consumer hard
employment and payrolls
this year about 17% less on plant
ductive facilities in virtually all goods when the defense program
would
further
shrink
consumer
To answer them with any
and equipment. The auto industry
lines, businesses will be able to makes that possible.
Moreover,
demand, force additional cuts in.
has scheduled a similar reduction.
certainty requires a great deal
construction and equipment pur¬
produce roughly $15 billion more consumers
have been showing Other
lines, however are planning
more clairvoyance
than this output this year than in 1952. more inclination to spend in rechases—and we would be in themoderate increases, so that total
writer has. There are many Thus more can be produced this cent months. The Christmas trade
familiar recession spiral.
plant
and
equipment expendi¬
We must admit, ' I think, that.
generally good.
Consumer
xeascms why stocks should go year than people will readily be was
tures for 1953 are not expected to
inclined to buy. This will almost spending is now about 6% above
here is a question of considerable
be
mp; there are just as many
significantly
different
from
certainly mean sufficiently intensi- the low , point of two years ago.
substance and well worth rasing,
reasons
why they shouldn't. fied competition to hold the price in spite of the substantial recent last year.
It is none too early for us to ex-A Coming Recession?
Yet, with the great majority level quite stable; it might even pickup in retail trade, there is no
plore the lines along which an¬
evidence that consumers are overof the public, those already drift slightly downward.
There ipf I think, general agree¬ swers to this problem are to be*
(4) This all adds up to another spending. In fact, the amount of
found.
long, and those who expect to good though somewhat unspectac- savings tucked away out of in- ment that 1953 will be a good year
as a whole. In recent weeks, how¬
(1) Tax policy will provide part,
Ifee long (bullish) the chances ular year far banking. Once again -comes is on the high side. There
Because the cash,
ever, you may have noticed an of the answer.
favor the up-side, for the time the demand for loans should be |s thus no reason to be pesimistic undertone of
skepticism
about budget is still roughly in balance,
brisk; deposits should rise slightly; about retail trade and consumer what conditions are
Iheing in any case.
going to be by we are in the fortunate position
and
net
earnings should show demand in the months ahead,
•
*
*
year-end.
Many have expressed of being able to cut taxes by a.
some
further improvement over
(2) win Government Spending the fear that business activity dollar for every dollar reduction,
It's not exactly a secret to 1952 for most banks. The more
Represent a Larger Market for would reach a peak by the latter in Federal expenditures.1 This is
competitive situation which seems Gutput Next Year?
If s0
how part of the year and then start a highly significant point. With^
regular readers of this column
to be emerging will, of course,
much?
jn recent years, govern- into a recession.
the pre-Korea tax structure, and.,
teat I'm not wildly enthusi¬
separate the men from the boys m ment spending has represented a
Now predictions of a recession current levels of incomes beforeastic about the future of the many lmes. Lending officers will
"six months from now" are not a taxes, private demand would be at.
jarge and asSured or automatic
need to be ^ore than ordinarily
market.
mar^e^ for over one-fifth of our new
Nothing has
thing.
Similar
predictions least $8 billion higher than it now
careful, of course, that they bet
output. Furthermore, since have been made all during the is. Therefore, for every dollar that,
their loans on the men and not the
happened in the past week or
^ cretajn increases in gov- postwar period.
They may all government Spending and demand,
so to change that opinion. Yet,
ernment
spending have guaran- simply reflect a sort of near¬ goes down, an additional dollar off
Why 1953 Looks Good
teed that there would be a market sightedness. Because we can never take-home
pay will be available
1 see an intermediate rally
Whether things look good for a for any increase in output which see clearly what will support busi¬ to
finance ^stepped-up
privateforming which can get started businessman depends heavily on additions to capacity might make ness activity in the period ahead, spending.
whether his customers show an possible.
In fact, since the inva- we maj' be assuming that no sup¬
from these levels.
This does not, of course, solveinclination to buy or not. What is sion of South Korea, government ports will be there, and we shall
the whole problem. One difficulty^
♦
*
«
true for one is, of course, true for purchases
of output have in- have a recession. At any event, is the
problem of timing. By theThere's been a great deal of all put together. In 1952, for ex- creased about S20 billion each these gloomy predictions have all time conditions have developed:
ample, consumers represented a year, and are now running at the thus far fortunately come to no far
enough to make a tax change
talk about undervalued
market for $216 billion. Federal, rate of about $80 billion per year. avail.
'
(up or down) clearly in order, the
We will do well this time, how¬
Stocks. The favorite yardstick State and local governments spent
prospects now are less certain.
tax change is usually overdue. Irk
$78 billion.
we Seem to be close to the peak ever, to examine this matter a bit. our
fretted out for comparative
very proper concern to bal¬
rr^oi
-IOK9
of our defense program. The new Because such forecasts have been ance the budget, and perhaps make
]V at for
ota O
pu
952
Administration and Congress are wrong in the past does not prove
purposes is market price times
some
headway toward whittling;
(In billions)
•
strongly committed to budget re- that we can be complacent this down the
debt, we may be inclined:
earnings. I don't know what Consumer
time.
In Aesop's story there was
purchases
$216 ductions.
Even so, government
to retain our present heavy tax.
tee current popular belief is , Government purchases
a wolf the third time.
78 spending will represent a modersystem too long.
As I understand it, those who
51 ately larger market for output in
One thing would clearly be in
but I dare say that stocks sell¬ Capital outlays
1953.
Defense
outlays will
be are disturbed about year-end 1953 order—a
high-level Hoover-Corn^
Total gross nationl product $345 somewhat larger. Time will be re- prospects emphasize four points:
ing around five times earnings
mission appraisal of our whole tax
About $51 billion of new ma- quired for Detroit's Mr. Dodge to
(1) The defense program is at structure. Our present structure,,
would be considered "good
its peak, and nondefense Federal pretty
chinery and new construction ac- regain control of the budget,
much
like
Topsy,
just
potentials." Anyway I'm as¬ counts for the remainder of the
State and local spending is al- expenditures will be cut. Conse¬ growed — on
the
least-squawk:
most certain to rise substantially. quently, enlarged government
suming that to be the case. $345 billion of output last year.
1 The
cash budget is somewhat dif«What is the evidence that there This last point is worth some em- spending will no longer provide
ferent from the ordinary budget.
It in¬
Continuing this logic the rails will be a market for a larger out- phasis.
an
assured market for whatever
cludes all cash income, including social
output private buyers will not take insurance taxes, as receipts, for example,,
show as much potential as any put in 1953 than last year? It all
An additional $5 billion of State
and excludes from expenditures all items
depends, of course, on the answers and local spending would be re- off the market. Indeed, Federal not
representing cash actually paid out,
ether
group.
For example, to three key questions:
quired just to restore State and spending will be cut. Therefore, such as interest accruing on Savings
private demand must increase by Bonds outstanding. It .is considered to
teere is Delaware & Hudson
(1) Will Consumers Spend More local government spending to its

will be

the

up-side.
How far it will go and how
long h will stay there are ac¬
companying questions.
move

on

in

than

prewar

Were

be

to

The

picture

is

very

sumer

,

.

,

.

,

selling around 48,
term five times

or

at less

earnings.




Or

in

1953?

American

this

It

is

a

tribute

enterprise

to

system

the

prewar

that tional

importance relative to na- enough to offset this and to ab¬
sorb the $15 billion per year in¬
income.
The results are

question must be raised. There obvious.

Street and highway sys¬

crease

in output made possible by

be

a

effect

tions

more

of

orthodox

significant measure of tha
government's fiscal opera~
activity
than
tha
administrative budget.

the

business

on

or

.Volume 177

Number 5190

The Commercial and Financial
Chronicle

...

fcasis of imposing taxes where the
Prosperity of the Twenties" was
(fewest votes would be lost.
such a period. The price level was
What taxes do depress
private quite stable, and business
activity
demand most? What kind of tax
generally was rising. What would
system would best promote the a recurrence of such
a
period
crontinued vigor and vitality of our mean
for banks? Your note
pouch
.enterprise system? These are some would
expand by at least another
Of the questions to which

at¬

more

tention should be given.
(2) Tax reductions can increase
take-home pay; they do not assure
that the added take-home pay will

banks

$165

rise in deposits from about

a

billion

billion

now

decade

a

to

street, Inc., reports. At the highest level in seven months, casual¬
ties exceeded the 142 occurring in the comparable week of I952r

perhaps $230

hence.

Will

our

but

banks be prepared to service these
additional
deposits?
How
will
banks attract the necessary $5 bil¬
lion

50%. Total loans at all commercial
banks would be approaching $100

of

new

capital funds

would be needed
their

present

Wholesale Food Price Index Moves Side-wise

which

to

to persuade consumers to spend
these extra dollars. This means a

It

great many things.
New products and
models

the

are

really

only

now

to

way

paturate otherwise saturated

kets.

The

American

ft

new

car

(Tor him

good

mar¬

to

refrigerator if the
will do nothing more

than his present

machine

will

do.

prettyOn

the

Other hand, he has never demon¬
strated much capacity to resist a
really new item.

v,

Obviously, much selling effort is
(ineffectual, reflecting a decade of
doing business in virtually an as¬
sured market.
We have, in fact,
substantially

whole

a

generation

Of

people whose merchandising
experience is in a period of easy
business. It would be unrealistic

go pretend that this may not
day pose a problem.

some

Businesses should be encouraged
go strengthen their, market re¬
search
activities.
Bad
guesses

about customer reactions to
price,
product, and marketing policies
©an

serious loss of

mean

worsened

a

and

business,
position,

competitive

losses.

Lending officers in¬
should
insist
that,

creasingly

Where appropriate, borrowers pro¬
vide themselves with such market¬

ing information.
1

High cost operations should

be

examined.

They will be the first

casualty of

more

kets.

competitive

Could better

down excessive costs?
are

of

some

the

banker

Customer to

Would ad¬

cot

to

These

the

questions which
might then help his
answer.

(3) .' Public

,

bound

mar¬

equipment melt

ditional credit do the job?

spending

is

substantially—

to

make work but to provide
essential facilities. The American

Association

of

Highway Officials
estimates that outlays of over $30
billion will be necessary to restore
our Federal-aid
highway systems
to

condition

a

of adequacy.2

The

Bureau of Public Roads estimates
that

$1.8

each

be

spent

just to maintain our
highway system invest¬

Evidence

ment.

is

must

year

present
that

billion

our

is

questions?
Obviously, they wilL
Deposits would need to expand But they must be answered if this
at least 40%—for all commercial
era of
prosperity is to be achieved.

Continued

all around

in

our

us

than

children
which

six

"housed in

are

are

million

school

buildings

beyond feasible rehab¬

ilitation and repair."3 Close to one
more children must resort

million
to

multiple sessions. The increased
birthrate, and higher income lev¬
els, will create additional demands
for higher education—for which
facilities

must

capacity

of

be

provided.
The
urban facilities

such

water and sewage disposal

as

not

kept

pace

has

with the growth of

urban areas, and these arrears
must be made good.
our

Clearly, public works will con¬
tinue to play a substantial role in
the business situation during the
period

ahead.

toe not to
vide

with

us

The

make

have, and

things

are

problem

work

in

will

but to

we

Steel Output Scheduled to Decline

many

cases

al¬

ready long overdue.

as

May,

(4)

To

important

an

extent,

past rates of growth in
production and business activity
continued

are

banking.
ahead

the

as

perity"—
ness,

depend

a

decade

to

become

"Eisenhower

period

on

the

destined

were

known

will

Suppose

of

Pros¬

busi¬

good

normal expansion, and

rela¬

tively stable prices. The "Coolidge
2

"Markets

sion,"
1952,
3

U.
p.

Ibid.,

S,

After

the

Defense

Department

of

30.
p,

31.




Expan¬

Commerce,

Industry

ended

limited

a

Wheat,

and rye prices fluctuated mildly, firming

corn,

slightly

at the close of the week.

prices was restricted by the large farm re¬

The rise in corn

and

serves

Slightly This Week

marketings, while trading int
sluggishness in both the domesSe

moderate increase in

a

wheat generally reflected some

making itself felt as far ahead
"Steel," the weekly magazine of metalworking.

says

Tuesday of last week, the grain markets generally re¬
volume of bidding for the increased offerings*.

on

flected

and export demand.

Transactions under the International Wheat agreement

totaled

With the approach of the
government deadline of Feb. 1 for
steel companies to open their order books for
May delivery of

2.9 million bushels in the week

non-defense steel, the companies are being
deluged with requests
for space for steel products now in
tightest supply. Included are
heavy and wide sheared plates, hot-rolled and cold-finished carbon

prices dipped, in contrast with continued strength in soybeans.
Coffee futures firmed noticeably in the face of light current-

and

alloy

bars

over an inch in diameter, hot-rolled
sheets, states this trade journal.

rolled carbon

■

As

the

refined prices there are now on a par

,

to the steadiness in veal cattle.

was

99.5%, the output

2,243,000 tons.

was

at

an

all-time high of

f

Scrap steel, an important ingredient in the making of new
steel, continues to be adequate in supply despite the increased
needs of the

Trading in the wool markets increased noticeably last week,

expanding steelmaking capacity, this trade publica¬

tion notes.

There

rate of steel companies having 93% of the steelmaking
capacity for the entire industry will be at an average of 99.3% of
capacity for the week beginning Jan. 26, 1953, equivalent to
2,238,000 tons of ingots and steel for castings. In the week
starting Jan. 12, the actual rate was 99.7% of capacity and output
totaled 2,248,000 tons.

Wednesday of last week. As during,
the total dollar volume of retail trade continued
surpass the comparable level a year earlier.
However, it did
not exceed the record level of two years ago when waves of
nation in the period ended on
most of last year,
to

scare-buying boosted sales.
Extended

by

output

Electric

a

year ago

when the capacity was smaller

2,053,000 tons.

was

at

by. Dun & Bradstreet, Inc., to be from 1 to 5% higher than
that of a year ago. Regional estimates varied from the year ago
levels by the following percentages: New England 0
to +2; Midwest 4-1 to +5; South and Pacific

—2

Output Exceeds Level of Previous Week

industry for the week ended Jan. 24, 1953, was esti¬
8,144,074,000 kwh., according to the Edison Electric

The recent active interest in apparel began to

The week's total represented a decrease of 42,181 cars or 5.6%
below the corresponding week a year ago, and a decrease of

74,271

9.5% below the corresponding week in 1951.

creasingly popular.
week

rose

year

Despite

built

to its highest point in 11 weeks, according
Reports."

was

in the United

Canadian plants turned out 7,359 cars and 1,795 trucks against
7,225 cars and 2,406 trucks in the prior week and 3,306 cars and
2,881 trucks in the comparable 1951 week.

Business Failures Reach Highest Point in 7-Month Period
Commercial

and

industrial

failures

week ended Jan. 22 from 153 in the

increased

of

or

Spring clothing was in¬
■

more

than in either the preceding

comparable 1952 week.

In rising demand were dairy

stores

the

sold slightly

ago.

•,

to

173

in

past

week

In widest

was

,

in the corre¬

but continued to spend more than
year.

popularity

,

were

washers, floor coverings, decorating
The demand for television seta

quite mixed with steadily sliding sales noted in the East and

soaring interest in the Southwest and Pacific Coast.

their preparations for the Spring
the total dollar volume of wholesale trade
period ended on Wednesday of last week held close to
the record level reached in the prior week, which was the highest
As many buyers continued

and

the

made up of 112,876 cars
States, against 110,885 cars
and 27,893 trucks the previous week and 63,523 cars and
25,012
trucks in the comparable 1952 week.
trucks

decreasing

promotions

Summer

seasons,

the

yet attained for this time of the year. However, not all lines topped

Disputes

output for the past week

falter in many

•

materials and incidental furniture.

in

It aggregated 112,876 cars compared with 110,885 cars (re¬
vised) in the previous week and 63,523 cars one year ago.

Total

to

foods, seafood, pork and canned meats. The consumption of olemargarine and frozen foods was substantially above that of a

production in the United States last week de¬

spite labor disputes

response

clothing, particularly haberdashery and slacks.

sponding week last

Loadings of revenue freight for the week ended Jan. 17, 1953,
705,479 cars, according to the Association of American
Railroads, representing an increase of 17,247 cars, or 2.5% above
the preceding week.

car

the

parts of the South and Pacific Coast,

the

totaled

Passenger

while

wear

Shoppers reduced their purchases of household goods slightly

Loadings Reflect Mild Progress in Latest Week

Labor

Winter

Shoppers displayed

week.

nation last

the
in

demand for men's
In

ported for the corresponding period two years ago.

and 27.441

of

Food

United States Auto Output Makes Gains

+4 to 4-8; Northwest 4-2 to +6.

4-7; Southwest
parts

to +4; East;
Coast +3 ta>

Spring clothing in many parts was not overly enthusiastic as yet£*
The sharpest gains over the year-ago levels were in the

The current total was 22,717,000 kwh. above that of the pre¬
ceding week when output totaled 8,121,074,000 kwh. It was 527,653,000 kwh., or 6.9% above the total output for the week ended
Jan. 26, 1952, and 1,174,508,000 kwh. in excess of the
output re¬

cars, or

esti¬

mated

Institute.

Car

"

The total dollar volume of retail trade in the week was

interest

The amount of electric energy distributed by the electric light
mated

shopping hours and relaxed credit terms were used,

retailers to bolster buying; shoppers were more deeply?

many

A month ago actual output stood at 97.3%,

2,226,000 tons, while

power

little variation in retail trade in most parts of the

in debt than ever before.

erating

and

was

domestic wools.

Slight Change from Week Previous

Trade Volume Shows

The American Iron and Steel Institute announced that the op¬

actual

demand predominantly for greasy fine

with the

Temporarily the industry dropped from its record-breaking
production pace. A strike in the Youngstown district cut the
national rate of steelmaking to 98% of capacity in the week ended
Jan. 24, "Steel" reports. This is equivalent to
2,209,370 net tons of
steel for ingots and castings.
In the preceding week when the
rate

Prices for prime steers and heifers declined, in contrast

year ago.

provide for approximately 4 million tons of steel and

other necessary additional facilities.

•

_

prices sagged considerably the past week. While
prices recovered somewhat, in later trading, they closed
below the previous week's level. Hog prices, on the other hand,
dipped toward the end of the week but closed above a week ago.
Cattle marketings continued to be very heavy, with receipts of
live animals 5% above last week's high level and 37% above at.
Livestock

lamb

deliveries of steel should speed up,
The steel industry has a capacity
bigger than ever before, it is operating near capacity, and it is
planning substantial further expansion.

This will

sugar

raw

last week's virtual standstill.

progresses,
trade weekly.

This year, steel companies plan to spend about $i billion for
additional expansion, the American Iron & Steel Institute reports.

with those in other areas.

remained limited. Earlier gains in cocoa
futures were erased when prices dropped on the New York Cocoa
Exchange; activity in the spot markets revived somewhat from
in

Trading

year

this

Oat;

buying. A reduction in refined sugar prices, anticipated in the
'Eastern markets for some weeks, became effective on Jan. 19**'

v

Further evidence of the sustained
strong demand for the
major products is the eagerness with which consumers, particu¬
larly automakers, seek conversion arrangements for sheets and
bars. Under this method consumers
get semifinished steel from
producers short on rolling capacity and engage other producers
with surplus rolling capacity to roll it into finished forms.

declares

ended Jan. 13, bringing the total

106.2 million bushels of the quota.

for the season to within

cold-

and

.

to "Ward's Automotive

whether

on Jan. 20, the index compared with the two and a half
low of 278.24 a week ago, and 307.01 a year ago.
While there was a slight rally in grain prices in the week

The strong demand for steel is

pro¬

need, must

.

year

buying policy. Any weakness in sales of consumer dur¬
able goods could
bring an inventory correction both sharp and
painful. This is the thinking behind some words of caution that
have been
voiced, concludes "The Iron Age."

tion.
More

Slight Recovery

slight rise in the general price level last week was reflected
Dun & Bradstreet wholesale commodity index. Closing at

A

5

The State of Trade and

popula¬

car

page

alter their

or

present highway system

increase

Wholesale Commodity Price Index Made
In the Latest Week

279.61

appallingly inadequate for the

50%

from

comparative of $6.60.

down 4.9% from the year-ago

was

in the

national

works

increase

growth in

is

buy

or

^new" model

needed

.

represents the sum total of the price per pound of
31 foods in general use and its chief function is to show the geireral trend of food prices at the wholesale level.

these

de-

consumer

tmderstandably not inclined

this

Brad-

The index

bank credit?

assure

price index, compiled by Dun &

street, Inc., stood at $6.25 on Jan. 20, unchanged from last weeki<^v
level when it reached the highest since the $6.27 on Nov. 18.

average

to

food

wholesale

The

just to maintain

answers

the 1951 total of 193 and off sharply,

slightly below

were

55%, from the prewar toll of 385 in 1939.

capital to
billion, compared with about $65 deposit ratio of about
8%?
billion now. Will
lending officers
Will
the
nation's
bankers be
be able to find
enough good loans able to
find

jbe spent. It is the job of businesses

8®

(513)

the

preceding week, Dun & Brad-

records set two years ago

Department store sales on
the

Federal

Reserve

Board's

after the start of the Korean clash.
country-wide basis, as taken from
index, for the week ended Jan. 17,
a

1953, increased 2% from the level of the preceding week. In the
previous week a drop of 3% was reported from that of the similar
week of 1952. For the four weeks ended Jan. 17, 1953, an increase
of

16%

was

registered

an

For the year 1952, department store sales
increase of 1% above 1951.

reported.

Retail trade in New York last week

rose

about

Z%, stimulated,

by clearance sales and special promotions.

According to the Federal Reserve Board's index department
City for the weekly period ended Jan. 17,

store sales in New York

1953, increased 1% above the like period of last year. In the pre¬
ceding week a decrease of 11% was reported from that of the sim¬
ilar week of
an

1951, while for the four weeks ended Jan. 17, 1953,
increase of 7% was recorded. For the year 1952, volume de¬

clined 7% under the

preceding

year.

J

i

,

Financial Chronicle

The Commercial and
54

.

.

Thursday, January 29, 1953

.

(514)

ADDITIONS

if INDICATES

Registration

Securities Now in
•

6,000 shares of common
stock (par $2.50). Price—At market (about $5.87V2 per
share). Proceeds — To Investment Co. of Philadelphia
for 4,000 shares and William S. Wasserman for 2,000
shares.
Underwriter—None, but Vilas & Hickey, will
act as broker. No general public offer planned.
•

(letter of notification)

12

Allied Insurance Co. of America,

Broadview, III

.

1,000,000 shares of capital stock (par $1)
to be offered to agents of Allied Van Lines, Inc. Price

Dec. 15 filed

-41 .60

Proceeds—For capital and surplus

share.

per

American
Dec. 15

stock.

Kansas City, Mo.

Alloys Corp.,

Underwriter—McDonald-Evans & Co.,

City, Mo.

Shreveport, La.
City, N. J.

To

^American Underwriter & Funding Corp.
Jan. 19 (letter of notification)
50,000 shares of class
A common stock (par $1) and 50,000 shares of class
B common stock (par $1) to be offered to holders of
conversion
policies issued by Insurance Corporation
of America.- Price—The "A"

the "B" stock

10 shares

insurance funds.

Office—3623 North Central

Inc. (N. Y.)
capital stock (par

-A-Associated Advisers Fund,
Jan.

22

Ave., Phoe¬

Underwriter—None.

nix, Ariz.

filed

Price—At

36,025

shares of

Proceeds—For

market.

investment.

$1).

Under¬

writer—None.

Underwriter—None.
• Automobile

1

filed

Commercial
Jan.
due

filed

13

1973

junior subordinated

first for subscription
of

one

by

class A and

Price—To be supplied by amend-

24, 111. Underwriter—None.

.

National Ceramic Co
*

(Bids invited)

Bank

Underwriter—None.

First

Boston

Canadian Prospect

Real estate.

Pan

(White,

i___Common

Minneapolis, Minn.

American

Ramie

(Morgan

><.

.,

(The

;

First

Merrill

United

in

Co.

States)

Gulf

Dodge & Co.)

and Clark,

& Co.

—Preferred

Boston Corp.; Kidder, Peabody & Co.;
Lynch, Pierce, Fenner & Beane; and
i White, Weld & Co.)

Co.—

Insurance

Common

Sulphur Co.__

Debentures

——

Stanley

Equitable Gas Co
\

1
»

Common

—

stockholders—no underwriter)

to

(Offering

.

Big Basin Oil, Inc., Holyoke, Colo.
(letter of notification) 1,100,000 shares of com¬
stock (par five cents). Price—25 cents per share.

(Grayson-Eigles Co.)

- •

Commercial

,

Garrett

common

Peters, Writer

& Co.;

D.

Edward

Toronto, Canada

First

and

&

Price—Approximately 64.48 cents

per share. Proceeds—
leases and for corporate purposes. Under¬
writer—None. To be named by amendment.

Northland

• Bunker-Chance Mining Co., Portland, Ore.
(letter of notification)
Office

—

(

|

(Offering

Byrd Oil Corp., Dallas, Tex.
Oct 22 filed $1,750,000 of 10-year 5%% convertible sink¬
ing fund mortgage bonds due Nov. 1, 1962, to be offered
for subscription by common stockholders at the rate
of $100 of bonds for each 28 shares of stock held
(for
• 14-day standby).
Certain stockholders have waived
their rights. Price—At par. Proceeds—To
repay $1,014,-

•
-

'

■

..

<r

"*"

'

.

noon

Read

Iowa Southern
V

.

(Bids

*

■

be

to

invited)

.

./

Bonds

,

r '

by

noon

(Lids

(Offering to stockholders)

ESTi

}"

Corp.;

Preferred

Fenner & Beane
Boston Corp.)

Fenner

Bonds
,

—Bonds

Light Co.__

'

1

(bids to be/invited)

;

February 6, 1953

March 27,

1953

Debentures

Diamond Alkali Co
(The First

-Common

Merritt-Chapman & Scott Corp

Boston Corp.)

Co.__

.Common

„_

>

(Offering to

.

,

1953

March 24,
Dallas Power &

Beane)

.

17, 1953

.

and Merrill Lynch,
&

Curtis)

Mississippi Power & Light Co
J
(Bids to be invited)

Common

,

First Boston

Paine, Webber, Jackson

Lehman Borthers; and
&

Illinois Power Co
Pierce,

+

Common
may include

(Offering to stockholders—underwriters
Lvnch, Pierce, Fenner & Beane;

Merrill

March

Pierce,

(The First Boson Corp.

*

£

Maryland Casualty Co

.

_

Lynch,

.—Common

February 25, 1953

Common

Co
and The First

-Bonds

Corp
be invited)

to

Electric & Gas Co

February 5, 1953

Oil

.—Bonds

New York, Inc

(Bids

Niagara Mohawk Power
South Carolina

_____Equip, Trust Ctfs.

Virginian Ry

English

•

;

(Bids to be invited)

...Common

(Weber-Millican Co.)

"

j

February 18, 1953

Co. Inc.)

Famous Foods of America, Inc

-•

-

—-Common

Utilities Co....——1

•;

EST)

&

to stockholders—underwritten
Dillon, Read & Co. Inc.)

(Merrill

.

j

February 17, 1953

Edison Co. of

February 4, 1953

Illinois Power

'
\

Corp.—Common

Exploration CO—
•'
(Peter W. Spiess Co.)

•

Con.

-

Southwestern Public Ser. Co

Road, Portland, Ore. Underwriter—Standard Securities
Corp., Spokane, Wash.

*•"

y

—Equip. Trust Ctfs.

(Dillon,

6485 N. W. St. Helens

•

r'

by

Southwestern Public Ser. Co._-Bonds & Preferred

Proceeds

7

•

Texas Oil

^

Inc.)

Gerber,

S.

(Bids

1,000,000 shares of class

Price—10 cents per share.

—For mining expenses.

(M.

.

' (Lids to be invited)-

;

..Common

Ltd

-Preferred

—————

(Dittmar & Co.)

} y-j,

,

■

—.—Preferred

Pennsylvania RR

Oils

f.-i'

Niagara Mohawk Power

1

and
,

to
stockholders—underwritten
Smith, Barney Ar Co.)

(Offering

To acquire

——Notes
Corp.) ! '

Boston

Co.)

Hooker Electrochemical Co

stock (par $1).

.

j

-

& Christensen;

Jones

—;

Frito Co

v

Freightlines, Inc.—————Debentures

(Allen

Oils Ltd.,

Co.

&

,;

/

-

Credit Co
Peabody

(Kidder,

Colo.

Sept. 25 filed 1,000,000 shares of

1953

February 3,

mon

Proceeds—To repay notes, and for drilling expenses and
new equipment.
Underwriter—E. I. Shelley Co., Den¬

February 16, 1953

-—Common

Corp

Dec. 8

B assessable stock.

invited)

(Kuhn, Loeb & Co. and Carl M. Loeb, Rhoades & Co.)

Underwriter—None.

Bristol

(J. I.) Co—

Case

\

Common

&

be

to

*

Bonds

St. Louis RR—

&

(Bids

Brothers)

February 11, 1953

Ltd

Weld

Chicago

Corp.)

February 2, 1953

defray cost of making payment
of deferred obligations issued pursuant to the warrants
and, if there is excess, for working capital. Business—

York,

»

Debentures

Sachs & Co. and Lehman

-

:

(Offering to stockholders—underwritten by Lehman Brothers
and Blyth & Co., Inc.)

To

Office—510 Baker Bldg.,

New

Goldman*,

..Common

Louisville Gas & Electric Co

Jan. 26 filed 5,181 shares of common stock (par $1) and
"deferred obligations" to pay an aggregate of $333,—

<

1953

January 30,

'

Dillon & Co.)

May Department Stores Co

EST)

noon

of the Manhattan Co
(The

if Baker Properties, Inc., Minneapolis, Minn.

Proceeds

Equip. Trust Ctfs.

.'

T

if Axe-Houghton Fund B, Inc., Pittsburgh, Pa.
1,000,000 shares of capital stock. Proceeds

—For investment.

(Eastman,

*

(Bids

Debentures

Fair Stores, Inc.—

Food

.Common

—•

'

Southern Ry.

1953

February 10,

1953

January 29,

share for each five old

new

Jan. 26 filed

12

cago

notes

NEW ISSUE CALENDAR

capital; Underwriter—Bioren & Co., and H. G. Kuch &
Co., both of Philadelphia, Pa.

Jan.

notification) 312 shares of common
stock (no par), of which 200 shares are to be offered
by the company and 112 shares by Russ Brown, a sell¬
ing stockholder.
Price—$1 per share. Proceeds—For
office expenses.
Office—3851 West Madison St., Chi¬
(letter of

21

common

share held (with an oversubscription privilege). Price—
At par ($10 per share). Proceeds—To increase working

ver,

III.

ic Curta Sales, Inc., Chicago,

(letter of notification) 29,000 shares of 6% cum¬

stockholders at rate

492.75.

(no par), of which 10,000 shares are

Jan.

into common stock for a

ulative preferred stock, series A, of which a maximum
of 15,927 shares were offered on Jan. 27 (for a 30 day

period)

15,600 shares of common
to be offered
by the company and 5,600 shares by Russ Brown, a sell¬
ing stockholder. Price — $5 per share. Proceeds — For
working capital. Office—3851 West Madison St., Chi¬
cago 24, 111. Underwriter—None.
<
1
(letter of notification)

21

stock

(2/3)

of

convertible

period of five years).

Banking Corp., Philadelphia, Pa.

Co.

Credit

be

>

equipment., Underwriter—None.

$25,000,000

(to

Office—747 Windsor St., Hartford 5, Conn.

Calculator Co., Chicago, III.

* Curta
Jan.

500,000 shares of 6%

Manufactures electrical

Proceeds—For equipment

principal amount.

supplies.

Underwriter—None.

cumulative preferred
stock (par $1) and 255,000 shares of common stock (no
par—stated value $1) to be sold in units of two shares
of preferred and one share of common stock. Price—$3
per unit.
Proceeds — For working capital. Business —

(letter of notification) 100,000 shares of common

(par one cent). Price—At market (about 35 cents
share). Proceeds — To certain selling stockholders.

Jan. 15

and

and

Corp., Philadelphia, Pa.

Products

Code
Dec.

stock
per

Price—At

Company intends to offer securities to broker-dealers for
public offering.

if Audio & Video. Products Corp., N. Y.
Jan. 23

& Co.

Co., New York.

if Cro-Plate Co., Inc., Hartford, Conn.
Jan.
19
(letter of notification) $50,000 of 5-year 5%
serial notes (with stock purchase warrants to buy r30
shares of stock per $1,000 of notes at $5 per share).

retire short-term

Underwriters — Morgan Stanley
Clark, Dodge & Co., both of New York.

held; rights to expire on Jan. 30. Price—S35 per
new construction.
Underwriters—

Morgan Stanley &

To be supplied by amendment. Probank loans and for working

—

(no par)

Proceeds—For

share.

undetermined number of shares;
be named

capital.

stock at $5 per share and

Proceeds—For investment of life

at par.

Price

1, 1978.

Co.

Power

617,669 shares of common stock

16 filed

being offered for subscription by common stockholders
of record Jan. 15 at the rate of one new share for each

if Case (J. I.) Co., Racine, Wis. (2/11)
Jan. 21 filed $25,000,000 of 25-year debentures due Feb.
ceds—To

about Feb. 17.

Consumers
Dec.

through a Canadian underwriter to
Offering—Expected week of Jan. 26.

later.

Stanley &
Bids—Tentatively expected

Halsey, Stuart & Co. Inc.; Morgan

Co.; The First Boston Corp.
to be received

plied by amendment. Proceeds—To company to be used
operating expenses to pay for future exploration and
development of leases, etc. Underwriters—White, Weld

Underwriter—W. C. Doehler Co., Jersey

in part, for expenditures made in connection
company's construction program.
Underwriters—
be determined
by competitive bidding.
Probable

treasury,
with

Prospect Ltd. (2/2-6)
Nov. 24 filed 303,595 shares of common stock (par 33%
cents), of which 235,000 shares are to be issued upon
exercise of share rights and 68,595 shares are to be sold
for account of selling stockholders.
Price—To be sup¬

an

(2/17)

of first and refunding mortgage
bonds, series I, due Feb. 1, 1983.
Proceeds—To repay
-$*22vQQ0.00Q bank~loa ns~and-fhelhalance to reimburse the

Canadian

York, for

both of New York.

16 filed $40,000,000

bidders:

balance

and

Co.

&

Peabody

Consolidated Edison Co. of New York, Inc.

Angeles, Calif.

& Co., New

increased volume of

an

Boston Corp.,

First

Jan.

for

Pipeline Producers, Inc.
Jan. 5 (letter of notification) 599,000 shares of common
stock (par one cent). Price—50 cents per share. Proceeds
—To drill wells. Office—Room 308, Texas Eastern Bldg.,
American

To finance

—

Underwriters—Kidder,

The

ic California Electric Power Co., Riverside, Calif.
Jan. 8 (letter of notification) 9,066 shares,of commenh
(par $1). Price—At market (approximately $10.50
per share).
Proceeds—To Mono Power Co., the selling
stockholder.
Underwriter—Wagenseller & Durst, Inc.,
Los

Proceeds

REVISED

business.

stock

•

(letter of notification) 1,000 shares of preferred
Price—At par ($10 per share).
Proceeds—For

working capital.
Kansas

effective Jan. 21.

Statement

Underwriter—None.

ment.

notes and for drilling expenses and
Underwriters — Dallas Rupe & Son.
Dallas, Texas; Carl M. Loeb, Rhoades & Co., New York;
and Straus, Blosser & McDowell, Chicago, 111. Offering
—Postponed temporarily.
capital.

working

.

ISSUE

PREVIOUS

ITEMS

•

of outstanding

500

Co.

ACF-Brill Motors

Jan.

SINCE

stockholders—no underwriter)

-

.

'

>

■

(J. A. Hogle

& Co)

February 9, 1953
.

Baltimore & Ohio RR
(Bids

Boston

Philadelphia

Pittsburgh

San Francisco

-

Chicago

Cleveland




to

all

offices

(Bids

--Common

Texas Electric

Co.

•

EST)

to

be

invited)

■

April 14, 1953

Inc.)

Tennessee Gas Tranmission Co
a.m.

invited)

Ser. Co.-——Bonds & Preferred
(Bids

Debentures

(Paine, Webber, Jackson & Curtis and
Stuart &

—,—-Bonds

Co
be

April 13, 1953

Sylvania Electric Products, Inc

(Bids 11:30

to

'

(Paine, Webber, Jackson & Curtis)

Halsey,

Private Wires

Power & Light

EST)

Sylvania Electric Products, Inc.-

NewYork

Florida

Equip. Trust Ctfs.

,

noon

1953

April 7,

Bonds

New

Orleans

Public
(Bids

Bonds

Service Inc
to

be

invited)

,

,

Volume 177

Number 5190

.

The Commercial and Financial Chronicle

..

Detroit Hardware Manufacturing Co.
(letter of notification) 10,000 shares of common
stock (par $1).
Price—At market (approximately $3.25

Gyrodyne Co. of America, Inc.
13 filed 350,000 shares of class A common stock
(par $1), to be offered for subscription by stockholders
of record Dec.
22, 1952, on a pro rata basis; rights to ex¬
pire on Feb. 28, 1953. The offering will include 50,000
shares to directors, officers and employees of the com¬

Dec. 22

share).

per

of

the

of

Fred

Schrey.
Roney & Co., Detroit, Mich.
•

Diamond Alkali Co.

Jani

To

filed

21

1978.

Nov.

Proceeds—To Detroit Trust Co., co-executor

Estate

C.

(2/6)

$15,000,000

Price—To

Underwriter—Wm.

pany and to certain individuals and firms in payment
for services. Price — $5.75
per share. Proceeds — For

sinking fund

be supplied

retire

debentures due
by amendment. Proceeds—
notes and short-term bank

$5,800,000 of 2%
for capital expenditures.
First Boston Corp., New York.

loans-and

engineering and construction of prototype coaxial heli¬
copter. Office—St. James, L. I., N. Y. Underwriter—
None.

Underwriter—The

★ HaasfDodson Co., Inc., Washington* D. C.
14 (letter of notification) 750 shares of preferred
stock
(par $100) and 7,500 shares of common stock
(no par), of which the preferred and 1,500 shares of

Jan.

* Diversey Corp., Chicago, III.
(letter of notification) 11,074 shades of common
stock (par $1) to be issued in exchange for 13,855 shares
"Kills

of

Chemical

em

tion"

on

basis

stock

for

each

Co., Ltd., a Hawaiian
eight shares of Diversey

of
10

of

sum

shares

$100

shares

will

which

be

will

paid

result

Underwriter—None.

of

the

for

from

other

Office—1820

common

corpora¬

share

common

rate

The
interests in

two

shares

be

offered

common

to

be

in

units

of

one

preferred

shares;

the remaining 6,000
purchased by three directors.

Price—$100 per unit.
Proceeds—To finance business.
Office—Room 302, Shoreham Bldg., Washington 5, D. C.
Underwriter—None.

of

Roscoe

to

are

and

common

company.

fractional
the

Underwriters—None, but Hamlin & Lunt, Buffalo,
will offer any unsubscribed shares.

exchange.
St., Chicago

•

★ Hamilton Funds, Inc., Denver, Colo.

Doughboy Industries, Inc., New Richmond, Wis.
(letter of notification) 30,000 shares of class A
stock. Price —$10 per share. Proceeds —For working
capital. Underwriter — Kalman & Co., Inc., St. Paul,
*

derwriter—Hamilton

'

•

Co., Inc.
Jap. 8 (letter of notification) 300,000 shares of common
stock (par 10 cents). Prioe—$1 per share. Proceeds—For

expansion and working capital.

Office

stock

'

:

'

r

ties

and

1

21

.

.

Erie Meter Systems, Inc., Erie, Pa.
9 (letter of notification) $300,000 of 15-year 6%
sinking fund debentures dated Nov. 1, 1952 and due
Nov. 1, 1967. Price—At par and accrued interest.
Pro¬

Dep.

•

-Famous Foods of America, Inc.

(2/4)

Jan. 20 (letter of notification) 300,000 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—For

Jan.

^ Federated Fund of New England, Inc.
filed 100,000 shares of beneficial interest in the
(par $1). Proceeds—For investment. Underwriter
—Federated Management Corp., Boston, Mass.
Fund

★ First Securities Corpi, Philadelphia, Pa.
Jan. 21 (letter of notification) 600,000 shares of common
stock (par one cent) which includes 22,190
shares"'.being
rOoffered to the previous purchasers. Price—25 cents
per
share. Proceeds — For expansion of business arid for

working capital. Underwriter
Philadelphia,. Pa. ;

—

First Securities

-fcoro.,

due

and

Feb.

1,

1973.

Proceeds—To

Price—To
repay

be

de¬

supplied by

bajggsjoans
Underwriii$$j§$ast-

acquire additional facilities.,■
Dillon & Co., New York.

'

-

Foster Wheeler

Jan. 5

Corp.
filed 30,032 shares of

'

*

/$itf£

stock

(par $10) to
be offered to certain officers and other
key employees
of corporation and its subsidiaries under a "Restricted
Stock Option Plan."
common

26

filed

115,000

,

(2/16-17)
share of convertible

preferred

stock

(par $7.50), of which 85,000 shares will be offered
publicly and 30,000 shares to employees. Pricey*- To
public, $10 per share; to employees, $9 per share. .Pro¬
ceeds—For expansion of
business and general corporate
purposes. Business—Manufacture and sale of food prod¬
ucts.
Underwriter^—Dittmar & Co., San Antonio, Tex.

Jt General Securities, Inc., Minneapolis, Minn/
Jan-» 23
market.

filed

50,000 shares of capital stock. Price—At
Proceeds—For investment. Underwriter—None.

^ Gulf Insurance Co., Dallas, Tex. (2/11)
•«'
i
Jan. 19 (letter of notification)
5,000 shares of capital
stock (par $10) to be offered for
subscription by-stock¬
holders

for

each

of
35

record

Feb. -11

shares

on

basis

of

one

new

share

held; rights to expire on or bbout
March 3. Price—$50 per share. Proceeds—To increase
capital and surplus. Address—P. O. Box 1771, Dallas,
Tex. Underwriter—None.




and

Water

Sts.,

Ro¬

common

stock

held; rights to expire about

Magma King Manganese Mining Co.
Nov. 12 (letter of notification) 553,500 shares pf common
stock (par 10 cents). Price—50 cents per share. Proceeds
—For

May Department Stores Co. (2/10)
of sinking fund debentures due

Jan. 21 filed $25,000,000
Feb.

First

(2/5)

working capital.
and Lehman

250,000 shares of common stock (no par).
Price—To be supplied by amendment. Proceeds—To re¬
pay bank loans and for new construction. Underwriters—
Fenner &

Boston

Corp.

and

Merrill

Lynch,

Pierce,

Beane, both of New York.

McCarthy

Price—$1

ing of oil well.
Nev.

per share. Proceeds—To complete drill¬
Office—401 South Main St., Las Vegas,

Underwriter—None.

Proceeds—For

Diversified

investment.

Underwriter-

Services, Inc., Minneapolis, Minn.
(2/17)

Jan. 21 filed

$7,000,000 first mortgage bonds due Feb. 1,
and improvements.
Un¬
be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; The First
Boston Corp.; Kidder, Peabody & Co.; Lehman Brothers,
Bear, Stearns & Co., Equitable Securities Corp., and
Salomon Bros. & Hutzler (jointly); White, Weld & Co.
Bids—Scheduled to be opened on Feb. 17.
1983.

Proceeds—For additions

derwriters—To

Ispetrol Corp., New York
29 filed 49,500. shares of common stock. Price—At
($100 per-share). Proceeds—To finance purchase of
crude oil for Israeli enterprises and to purchase crude
oil and oil products for resale in Israel. UnderwriterIsrael Securities Corp.. New York.
Israel Industrial & Mineral Development Corp.
Oct. 6 filed 30,000 shares of class A stock. Price—At par
($100 per share). Proceeds—For industrial and mineral
development of Israel. Underwriter — Israel Securities
Corp., New York.
Oct.

,

★ Johnston Adding Machine Co., Carson City, Nev.
Jan. 15 (letter of notification) 86,632 shares of capital
stock. Price—At par ($1 per share). Proceeds—For ad¬
ditional materials and expenses. Office—First National
Bank JBldg., Carson City, Nev. Underwriter—None.

Kellogg Petroleum Products, Inc.
Jan.

stock

14

(letter of notification) 1,221 shares of capital
(no .par) being first offered for subscription by

stockholders of record Dec. 26, 1952, at rate of one new
share for each 2.4 shares held; rights to expire Feb. 11.

Price—$125

per

share.

of common stock (par 25

Price—$2 per share. Proceeds
For drilling of
exploratory wells, acquisition of leases and for general
corporate .purposes. Underwriter—B. V. Christie & Cq.,
Houston, Tex. Dealer Relations Representative—George
A. Searight, 50 Broadway, New York, N. Y. Telephone
WHitehall 3-2181. Offering—Date indefinite.
cents).

• Mercantile Acceptance Corp. of California
21 (letter of notification) $12,955 of 10-year 5%
junior subordinated debentures. Price—At par. "Pro¬

Jan.

ceeds— For

working capital. Underwriter — Guardian
Francisco, Calif.

Securities Corp., San

^ Metropolitan Finance Co., Cleveland, Ohio
19 (letter of notification) 1,000 shares of class A
common stock (par $100), all of which is subscribed by
present stockholders, and $6,000 of 5% 15-year capital
notes.
Each $1 note may purchase one share of class
B stock at par ($1 per share).
Proceeds—To expand
business. Office—835 National City Bank Bldg., Cleve¬
land 14, Ohio. Underwriter—None;
Jan.

Nov. 3 filed 113,000 shares of
stock
10

Granite City, III*

6% cumulative preferred

(par $5) and 113,000 shares of common stock (par
to be offered in units of one sharifc of each

cents)

class of stock.

Price—$6

per

unit.

Proceeds—For work¬

ing capital. Business—Purchase, processing, refining and
of Fluorspar. Underwriter — To be supplied by

sale

amendment.

stock

(letter of notification) 400,000 shares of common
(par five cents). Price—60 cents per share. Pro¬
acquire additional properties. Office—927-629

ceeds—To
Market

ler

St., Wilmington, Del.
Co., Jersey City, N. J.

Underwriter—W, C. Doeh-

• Mines Management, Inc., Wallace, Idaho
(letter of notification) 400,000 shares of common
stock.
Price—75 cents per share.
Proceeds—For ex¬

ploration and development. Offices—507 Bank St., Wal¬

lace, Idaho, and W. 909 Sprague Ave., Spokane,

Wash.

Underwriter—None.

Minneapolis Gas Co.
~ * r
164,000 shares of common stock (par $1) to
be offered for subscription by common stockholders at
rate of one new share for each eight shares held on
Jan. 7 filed

rights to expire on Feb. 9. Price—To be

Jan. 27;

supplied

Proceeds—To retire 5,841 shares of $6
preferred stock (at an estimated cost of $613,305) and
for new construction. Underwriter—Kalman §c Co., Inc.,
Minneapolis, Minn. Private placement of first mortgage
by amendment.

^ Investors Stock Fund, Inc., Minneapolis, Minn.
Jan. 21 filed 2,000,000 shares of capital stock.
Price—
market.

(Glenn), Inc.

June 12 filed 10,000,000 shares

•

★ Intermountain Associates, Inc., Las Vegas, Nev.
12 (letter of notification) 255,000 shares of capital

Jan.

stock.

Underwriters—Goldman, Sachs 8c Co.

Brothers, both of New York.

Jan. 19

16 filed

The

1, 1978. Price—To be supplied by amendment. Pro¬
refund part of debt and for expansion and

ceeds—To

Nov. 10

Lynch, Pierce, Fenner & Beane
Corp., both of New York.

Illinois Power Co.

capital. Office — 532 Security Rldg.,
Underwriter—Weber-Millican Co., New

working

Mid-Gulf Oil & Refining Co.

(2/5)

150,000 shares of cumulative preferred stock
(par $50). Price—To be supplied by amendment. Pro¬
ceeds—To repay bank loans and for new construction.
and The First Boston

of New York.

Co., Inc., both

Mex-American Minerals Corp.,

Jan. 16 filed

Underwriters—Merrill

(1/3Q)

Proceeds—For

ments.

writer—Smith, Barney & Co., New York.
Illinois Power Co.

(Ky.)

held; rights expire Feb. 17. Price—$36.50 per
property additions and improve¬
Underwriters—Lehman Brothers and Blyth &

shares

share.

(2/3)

par

* Frito Co., Dallas, Tex.
Jan.

of

Iowa Southern Utilities Co.

$7,000,000

to

Office^—Fourth

Feb. 18. Price—To be supplied by amendment.
Proceeds
—For expansion program and working capital.
Under¬

.

amendment.

re¬

filed

"10 shares

Investors

.

Proceeds-—To

97,147 shares of cumulative convertible
second preferred stock (no par) to be offered for sub¬
scription
by common stockholders of record about
Feb. 3 on the basis of one new preferred share for each

At

* Food Fair Stores, Inc., Philadelphia, Pa.|K
*;
(2/10-11)
"V'2
Jan. 21 filed $12,500,000 of 20-year sinking fund

man,

15

Jan.

Jan. 21

bentures

stockholder.

Hooker Electrochemical Co.

:

working capital, etc. Underwriter—Weber-Millican Co.,
New York.

share).

chester, Mich. Underwriter—None.

ceeds—To

repay bank loans and for working capital.
Office—1602 Wagner Avenue, Erie, Pa. Underwriter—
None. Smith & Root, Erie, Pa., will act as distributor.

per

Hemisphere Western Oil Co.
(letter of notification) 1,196,000 shares of common
stock (par one cent).
Prices—25 cents per share. Pro¬
ceeds—To acquire working interest in oil wells. Office
—Qrayeris Bldg., Qklahoma City, Okla. Underwriter—
Winner & Meyers, Lock Raven, Pa.

ing

bank loans and for new
construction. Underwriters — The First Boston Corp.;
Kidder, Peabody & Co.; Merrill Lynch, Pierce, Fenner
and Beane, and White, Weld &
Co., all of New York.

($100

,

(-2/11)

amendment. Proceeds—To repay

par

Underwriter—None.

^ Higbie Manufacturing Co., Rochester, Mich.
Jan. 15 (letter of notification) 4,000 shares of common
stock (par $1). Price—At market (approximately $7.50
per share),
proceeds—To Carlton Higbie, Jr., the selL

filed

100,000 shares of cumulative convertible
preferred stock (par $100). Price—To be supplied by

Los

Dec. 3

Proceeds—For acquisition of additional proper¬
leases.
Underwriter—J. A. Hogle & Co., Salt

Equitable Gas Cq., Pittsburgh, Pa.

Co.,

;

Lake City, Utah.

Jan.

price—At

tire notes.

•

share).

Underwriter—Akin-Lambert

★ Harrisonville Telephone Co., Waterloo, III.
16 (letter of notification) 1,260 shares of common

stock,

stopk (par one cent). Price—$3 per share. Proceeds—
To.acquire leases and drill wells. Underwriter—Hopper,
.

connection with

Jan.

common

English pil Co., Salt Lake City, Utah (2/($)
;
Jan. 5 filed 3,435,583 shares of common stock, of which
750,000 shares are to be offered publicly, 250,000 shares
arg to be reserved for officers and key employees and
options, and 2,435,583 shares in exchange for oil and gas
properties and interests therein. Price—At par ($1 per

dividend.

shares in

Angeles* Calif.

Ekco Oil

Soliday & Co., Philadelphia, Pa.

Un¬

Management Corp., Denver, Colo.

entitled to receive fractional

17 State St.,
New York. Underwriter—James T. Dewitt & Co., Inc.,
Washington, D. C.
'
—

Co., Philadelphia, Pa.
Deo. 4 (letter of notification) 99,0,00 shares of

Proceeds—For investment.

★ Hancock Oil Co., Long Beach, Calif.
Jan. 16 (letter of notification) 216 shares of class A
common
capital stock (par $1).
Price — At market
(approximately $26 per share). Proceeds—To holders

Econo Products

Co.

for subscription

York.

H-DA, and $22,500,000 of periodic

investment certificates.

Electric

200,000 snares of common stock (no par) to
by common stockholders of
record Jan. 29 at rate of one new share for each seven

Jan. 26 filed 1,500,000 shares of Series H-C 7 and 1,800,000 shares of Series

Jan. 22

Minn.

Louisville Gas &

Jan. 8 filed

Phoenix, Ariz.

13, 111.

N.,Y«»

^Keystone Custodian Funds, Inc., Boston, Mass.
Jan. 26 filed 25,000 shares of Series B-l; 25,000 shaves
of Series B-2; 75,000 shares of Series K-2; 100,000 shares
of Series S-2; and 25,000 shares of Series S-3. Proceeds
—For investment.
Underwriter—Keystone Co. of Boston, Boston, Mass.

be offered

Jan. 22

55

(515)

Proceeds—For working capital.

bonds

is

also

planned.

^ Niagara Mohawk Power Co. (2/16)
Jan. 23 filed 1,000,000 shares of common stock (no par).
Proceeds—To retire part of bank loans and for new
construction. Underwriters—To be determined by com¬
petitive bidding.

Probable bidders: Morgan Stanley &
(jointly); Merrill Lynch,

Co. and The First Boston Corp.

Pierce,

Fenner

& Beane, Kidder,

Peabody & Co. and

White, Weld & Co. (jointly). Bids—Tentatively
pected to be received on Feb. 16.

^Niagara Mohawk Power Co.
Jan.

23 filed $25,000,000

ex¬

(2/18)

of general mortgage bonds due

February, 1983. Proceeds—To repay, in part, $40,000,000
Underwriters—

of bank loans and for new construction.

Probable
&
Co.; Kuhn, Loeb & Co.; Kidder, Peabody & Co.; The
First Boston Corp. Bids—Tentatively scheduled to fee re¬
To

determined

be

bidders:

ceived

by

competitive

bidding.

Halsey, Stuart & Co. Inc.; Morgan Stanley

on

Feb.

18.

Nielco Chemicals, Inc., Detroit,
Nov. 19 (letter of notification) 34,800

Mich.

shares of common
share). Proceeds—To liqui¬
date notes. Office—8129 Lyndon Ave., Detroit 21, Mich.
Underwriter—Smith, Hague & Co., Detroit, Mich.
stock. Price—At par ($5 per

•

Northland Oils Ltd.,

Canada

(2/3)

1,000,000 shares of capital stock (par 20
cents—Canadian) and subscription warrants for 600,000
chares, of which the stock and subscription warrants for
400,000 shares are tp be offered in units of 10Q shares
of stock and subscription warrants for 40 shares. Price—
Nov. 21

filed

Continued

on

page

56

.

M

(516)

The Commercial and Financial Chronicle

1

Continued

on

page

unit. Proceeds—For drilling of additional wells
and to purchase producing wells.
Underwriter—M. S.
$52

per

Gerber, Inc., New York.
Nyal Co., Detroit, Mich.
28 (letter of notification) 200,000 shares of common
etock (par 10 cents). Price—$1.25 per share. Proceeds—
To repay loans and for working capital. Underwriter—
Gearhart & Otis, Inc., New York.

•if Paley Manufacturing Corp., Brooklyn, N. Y.
Jan. 16 (letter of notification) 99,000 shares of common
stock (par 25 cents). Price—$3 per share. Proceeds—
For expansion and working capital. Underwriter—G. K.
Shields & Co., New York.
•

Pan American

Sulphur Co. (2/2-3)
capital stock (par 70 cents)
to be offered for subscription by stockholders at rate of
one new share for each
shares held. Price—$7 per
.share.
Proceeds—For new construction and working

Dec. 24 filed 499.325 shares of

Underwriters—Kuhn, Loeb & Co. and Carl M.
Loeb, Rhoades & Co., both of New York.
capital.

Paradise Valley Oil Co., Reno, Nev.
Aug. 20 filed 3,000,000 shares of capital stock. Price—
At par (10 cents per share). Proceeds—To drill six wells
subleased land and for other corporate purposes.

on

Underwriter—Alex. Brown & Sons, Bal¬

Lancaster, Pa.
timore, Ma.

55

i

Un¬

derwriter—None, with sales to be made on a commission
basis (selling commission is two cents per share). Of¬

Boston, Mass.

^ Sonoma Acceptance Co., Santa Rosa, Calif.
16 (letter of notification) 2,500 shares of preferred
stock, series A. Price — At par ($10 per share). Pro¬
ceeds—To repay loans. Office—310 Hinton Ave., Santa

Jan.

Rosa, Calif. Underwriter—None.

^ South Carolina Electric & Gas Co. (2/18)
Jan. 28 filed 358,045 shares of common stock (par $4.50)
to be offered to common stockholders on or about Feb.
18 at rate of one new share for each seven shares held,
with additional subscription privileges (including sub¬
scription privileges for holders of less than seven shares
of outstanding common stocki subject to allotment. Price
—To be filed by amendment.
Proceeds—For construc¬

Underwriter

program.

—

Kidder, Peabody & Co.,

New York.

(2/3)
filed 293,462 shares of common stock

Southwestern Public Service Co.

•

Jan.

13

(par $1)

subscription by common stockholders
of record Feb. 2 at the rate of one new share for each
for

be offered

to

oversubscription privilege);
17. Price—To be supplied by
Un¬
derwriter—Dillon, Read & Co. Inc., New York.
held

shares

12

(with

an

fice—c/o Nevada Agency & Trust Co., Inc., Cheney Bldg.

rights to expire on Feb.

139

amendment.

N.

Virginia St., Reno, Nev.

Peruvian Oil Concessions Co., Inc.,

Dover, Del.
(par $1).
Price—$1.10 per share. Proceeds—For general corporate
purposes. Business—Plans to produce and sell petroleum
«utd its products from lands to be held under concession
Jan. 16 filed 9,000,000 shares of common stock

from the Peruvian

Government.

Underwriter—None.

★ Phoenix-Campbell Corp., New York
Jan.

filed

26

and

warrants

shares

40,000

40,000

reserved

for

and five

cents

of capital stock (par $1)
Price—-$10 per share for stock

the

Proceeds—To

warrants.

in oil and gas

business.
Co., New York.
•

purchase

stock

shares

issuance.
for

of common

engage

Underwriter—Morris Cohon &

Manufacturing Co.
Sept. 25 filed 250,000 shares of common stock (par $1),
<later amended to 400,000 shares). Price—$2 per share.
Proceeds—For machinery and equipment and new con¬
Business—Production

of

transmission

heavy duty power
etc. Office—Long-

chain, sprockets, gears,
view, Tex. Underwriter—Dallas Rupe & Sons, Dallas,
Texas; and Straus, Blosser & McDowell, Chicago, 111.

if Premo Pharmaceutical Laboratories, Inc.
Jan. 23 (letter of notification) 11,000 shares of common
stock (par $5). Price —$16 per share. Proceeds —For
working capital. Business — Manufacturers and sells
drugs. Office — Leuning St., South Hackensack, N. J.
Underwriter—None.

—

production

new

a

1040 North Las

Palmas

"Black

Harvest."

Office—

Ave.,/ Hollywood 38, Calif. Un¬

derwriter—None.

if Producers Life Insurance Co., Mesa, Ariz.
Jan. 20 (letter of notification)
37,500 shares of capital
stock.
Price—$2 per share. Proceeds—To form an old
line

legal

life

reserve

insurance

P. O. Box 30, Mesa, Ariz.

Ramie Corp.,
Jan. 23

company.

Address—

Underwriter—None.

Philadelphia, Pa.

(2/2)
common

^tock. Price — At par ($1 per share). Proceeds — For
working capital, etc. Business «— T<? process vegetable

Underwriter—Grayson-Eigles Co., New York.

Offering—Now being made.

-Regent Manufacturing Co., Inc., Downey, Calif.
(:Atter of notification) $150,000 of first mortgage
bonds, of which 13Q ynits will be issued at $1,020 each

Dec. 3i
and

40

units

at

$510 each. Proceeds—For building and
equipment. Office—11905 Regent'dew Avenue, Downey,
Calif.

Underwriter

—

shares of cumulative preferred stock
Price—To be supplied by amendment. Pro¬
ceeds—To repay bank loans and for expansion program.
Underwriter—Dillon, Read & Co. Inc., New York.

Hopkins,

Hart?cii &

-

Co.,

Los

—

working capital. Address—43 Sierra St. (P. O. Box 1249),
Reno, Nev. Underwriter—None.

Paper Co.

Dec. 5 filed $1,000,000 of memberships in the
company's
Stock Purchase Plan for 1953 and 23,529 shares of com¬
mon

stock

None.

purchasable under the

^ Stanzona Petroleum Corp., Phoenix, Ariz.
Jan. 23 (letter of notification) 3,698 shares of common
stock to be reoffered for subscription by stockholders
under offer of rescission.
Price—$1 per share. Under¬

Statement

effective

Jan.

234 East Colorado

filed 1,000,000

initially

to

persent and

policyholders of

future

and to certain specified officers and directors

company

Canada

Sweet Grass Oils, Ltd., Toronto,

July 29 filed 375,000 shares of common stock (no par)
Price—To be related to quotation on the Toronto Stock
Exchange at time of offering.

Proceeds

operating capital. Office—362 Commercial

Sylvania Electric Products, Inc. (2/9)
$20,000,000 of sinking fund debentures due
be supplied by amendment. Proceeds—

1978. Price—To

expansion

Jackson

Underwriters—Paine, Webber,
both

program.

Curtis and

&

Halsey, Stuart & Co. Inc.,

Sylvania Electric Products, Inc.

(2/9)

(par $7.50).
amendment. Proceeds—For
working capital. Un¬

Jan. 19 filed 550,000 shares of common stock
be

Price—To
reduction

supplied

by

of bank loans

Seymour Water Co., Seymour, Ind.
Jan. 12 (letter of notification)
5,000 shares of 6% cumu¬
lative preferred stock
(par $25).
Price —$26.50 per
Proceeds—For

improvements.
Underwriters—
Co., Smart, Clowes & Oswald, Inc., and

Wagner, Reid & Ebinger, Inc., all of Louisville, Ky.

Express Corp.

(Det.)

Jan. 8 (letter of notification) 20.000 shares of
6%
lative preferred stock. Price—At

Proceeds—For working capital.




cumu¬

par ($10 per share).
Office—Manheim Pike,

Underwriter—None.

(letter of notification) 150,000 shares of class A
voting stock and 150,00 shares of 4% class B non-voting
stock.
Price—$1 per share.
Proceeds—To purchase oil
and gas

(letter of notification) 75,000 shares of class A
common stock (par $1) and 2,500 participating units to
be sold in units of 30 shares and one participating unit.
2

Price—$120'

and for

share. Proceeds — For construction. Office — 15
St., Providence, R. I. Underwriter—None.

Chestnut

(2/9)

Jan. 16 filed $30,000,000 first mortgage pipeline bonds
due
1973. Proceeds—To repay bank loans. Un¬
derwriters—T<J be determined by competitive bidding.

JTa!:SY, Stuart & Co. Inc.; Stone &

Webster

Securities

Corp.,

White,

Weld

&

Co.

(jointly). Bids—Tentatively schedule t9 be received up
to 11:30 a.m. (EST) on Feb. 9, at office of
Gordon,
Zachry & Reindel, 63 Wall St., New York 5, N. Y. ^
_

TexSoDak Oil Co., Sioux Falls, S. D.

(letter of notification) 1,000 shares of class A
stock (par $25) to be offered for subscription
by stockholders; 6,226^ shares of class A common stock
in
exchange for leases and beneficial interest; and
2,679^ shares of class A common stock and 13,750 share*
as

stock

(par $1) to be issued to G. L
the promoter. Price—Of class A stock, at par
common

Proceeds—To drill and equip

wells.

Hawthorne Ave., Sioux Falls, S. D.

Office—1213 South
Underwriter—None

Texas Oil
Dec.
mon

5

Exploration Co., Ft. Worth, Tex. (2/16)
(letter of notification) 1,200,000 shares of com¬

stock (par 10 cents). Price—25 cents per share. Pro¬

ceeds—To drill oil and gas

Underwriter

if Vanadium Corp. of America (N. Y.)
Jan. 23
(letter of notification) 309 shares of common
stock (no par) to be issued upon exercise of stock op¬
tion held by George C. Floyd, Vice-President.
Price—
$34.56 per share. Proceeds—For general corporate pur¬
poses. Underwriter—None.
Vermont

Industries, Inc., Granville, Vt.

(letter of notification) 60,000 shares of common
stock (par $1). Price — $5 per share. Proceeds — For
13

Jan.

acquisition

assets of Vermont Forestry Co., Inc.,
Mfg Co. and the assets held under con¬

of

Thurston Valley

tract by Harry

Ginsberg. Underwriter—George

F. Breen,

New York.

if Vitro Manufacturing Co.,
Jan. 22

Pittsburgh, Pa.

(letter of notification) 3,000 shares

of common

(par 50 cents). Price—At market (about $8 per
share). Proceeds—To Wildey C. Rickerson, the selling stockholder. Undewriter^-Franeis I. du Pont & Co. and
stock

Tucker

Anthony & Co., both of New York.

if Vitro Manufacturing Co., Pittsburgh, Pa.
/
Jan. 26 (letter of notification) 3,000 shares of common
stock (par. 50 cents). Price—At market (about $8 per
share.). Proceeds — To Wenman A. Hicks, the selling
stockholder. Underwriter — None, sales to be handled
through stockholder's brokers.

v

if Walburt Oils, Inc.
/
Jan. 20 (letter of notification) $275,000 preincorporation
certificates ($100 each). Price—At par. Proceeds—To be
used to subscribe to capital stock of this corporation to
be

in New York

incorporated

for the purpose

of en¬

gaging and participating in oil exploration in Canada,
Office—c/o Sidney S. Walcott, 41 St. Catherine Court,

Pipe Line Co., Dallas, Tex.

$29,000,000 12-year 6% debentures due Dec.

Nov. 20 filed

15, 1964, and 580,000 shares of common stock (par 50
to be offered in units of one $50 debenture and
one share of stock.
Price—To be supplied by amend¬
ment.
Proceeds—From sale of units and 1.125,000 addi¬
tional shares of common stock and private sale of $55,cents)

used to build a 1,030Underwriters—White, Weld
Co. and Union Securities Corp., both of New York. Of¬
fering—Expected in the Spring of 1953.
^

000,000 first mortgage bonds, to be
crude

mile

oil pipeline.

Co., Dallas, Tex.
\
1,125,000 shares of common .stock (par 50
cents). Price—To be supplied by amendment. Proceeds
—Together with other funds, to be used to build pipe¬
line.
Underwriters—White, Weld & Co. and Union Se¬
West Coast Pipe Line

Nov.

20 filed

both of New York.

curities Corp.,
the

Offering—Expected in

Spring of 1853.

i

if West Palm Beach Indians, Inc.
Jan. 15 (letter of notification) 2,000 shares of capital
stock. Price
$25 per share. Proceeds — To purchase
franchise of the West Palm Beach Baseball team in the
—

Florida International Baseball League.

•

Field, West Palm Beach, Fla.

Address—Connie

Underwriter—None,

West Penn Electric Co.

stock (no par)
subscription by common stockholders
on a l-for-15 basis; rights to expire on
Feb.
9.
Price—$34 per share.
Proceeds—To purchase
about $5,000,000 additional common stock of Mononga19 filed

264,000 shares of common

being offered for
of record Jan. 22,

hela

Power

Co.

and

general

for

corporate

purposes,

Underwriters—Carl M.'Loeb, Rhoades & Co. won

award

of this issue on Jan. 21.

A

Empire Oil Co., Denver, Colo.
Jan. 6 (letter of notification) 35,520 shares of common
stock. Price—At par (10 cents per share), l'roeeeds—To
Western

pay

for options.

Colo.

Office

—

222 Patterson Bldg., Denver,

Underwriter—None.

^

Wftstshore Hospital, Inc., Tampa, Fla* '
Dec. 3 u<ter of notification) 30,000 shares of common
stock (of whicfi ! 25Q shares will be issued to Dr. Samuel
G. Hibbs and John R. Ujlmes for services rendered).
Price—At par
and

($10 per

equipment expenses.

Fla. Underwriter—Louis

stock (par $10).
commor

Stock (par 10 cents). Price—50 cents per share.

Proceed*

Fla.

—

Jan.

Co., Houston, Tex.
Nov. 12 (letter of notification) 100,000 shares of

Office—3-^ Plant Ave., Tampa,
C. McClure & Co., Tapipa,

Hughes & Co., Denver, Colo.

•

Western Oil

share). .Proceeds—For property

Wyoming National Oil Co., Inc., Denver, Colo.
Nov. 17 (letter of notification) 500,000 shares of common
stock (par five cents). Price—25 cents per share. Pro¬
ceeds
For oil and gas leases. Underwriter — R. I*

wells and for acquisition ol
properties. Underwriter—Peter W. Spiess Co., New York
Texas

Proceeds—To increase capital and

~

24

of class B

unit.

per

surplus. Office—7 Weldon, Phoenix, Ariz.
—Life Underwriters, Inc., Phoenix, Ariz.

Dec.

bidders:

Phoenix, Ariz.

United Security Life,
Dec.

^ Television Associates of Rhode Island, Inc.
Jan. 22 (letter of notification) 300,000 shares of common
stock.
Price—At estimated minimum price of 85 cents

Probable

Office—222 Main Street, Bismarck, N. D.
Minneapolis, Minn.

leases.

Underwriter—John G. Kinnard & Co.,

Mack

per

Corp., Bismarck, N. D.

United Petroleum & Mining
Nov. 17

derwriter—Paine, Webber, Jackson & Curtis, New York.

Clifton

Motor

For working

—

capital. Underwriter—F. W. MacDonald & Co., Inc., New
York. Offering—Expected at any time.

For

if Towne Industrial Equipment Co., Inc.,
Dallas, Tex.
Jan. 14 (letter of notification) 2,292 shares of common
stock. Price—$15 per share. Proceeds—For purchase of
equipment. Office—1410 South Akard St., Dallas Tex.

West Coast

shares of capital stock (par $1).
Price—$1.50 per share. Proceeds—To qualify to do busi¬
ness
in Arizona.
Underwriter—None.
Offering to be
made

—

Offering—Expected in about two weeks.

Buffalo, N. Y. Underwriter—None.

St., Pasadena 1, Calif.

Insurance Co., Phoenix, Ariz.

Sun Fire

1953.,

Thursday, January 29,

.

common

St., Astoria, Ore. Underwriter—None.

Shirks

'

if Stuart Co., Pasadena, Calif.
Jan. 20 (letter of notification) 10,000 shares of common
stock (par $1) to be issued, together with $20,000 in cash,
in consideration of the sale, transfer and assignment by
Crest Laboratories of all of its assets to The Stuart Co.,
which will assume certain liabilities of Crest. Office—

Nov.

6.

Jan. 15 filed $25,000 of unsecured debentures. Price—At
amount (in denominations of $1,000 each)

Bankers Bond

V 1

New York Nov. 7 filed 1,250,000 shares of common stock (par 10
cents). Price—-$1 per share. Proceeds—For construction
of plant and purchase of new equipment and for working,
capital. Underwriters—Gearhart & Otis, Inc., and F. L.
Rossmann & Co., both of New York.

Underwriter—

principal

share.

*•'

writer—None.

•

plan.

ifSeaccast Finance Co., Astoria, Ore.

Proceeds—For

20,000

(par $100).

Tennessee Gas Transmission Co.

Rim Wheel Drive, Inc., Reno, Nev.
Jan. 20 (letter of notification) 100,000 shares of common
stock. Price
At par ($1 per share). Proceeds — For

Scott

and

1978

Angeles, Calif.

*

of first

of New York.

if Regal Plastic Co., Kansas City, Mo.
Jan. 15 (letter of notification) 149,500 shares of common
stock (par 25 cents). Price—$2 per share. Proceeds—For
working capital. Underwriter—S. D. Fuller & Co., New
York.

(2/3)
mortgage bonds due

Public Service Co.

$12,000,000

filed

Jan. 19 filed

(lettei Pf notification) 300,000 shares of

fibres.

13

Dec. 22

•if Producers Film Group, Inc., Hollywood, Calif.
Jan. 20 (letter of notification) 130,000 shares of common
stock. Price
At par ($1 per share). Proceeds — To
produce

Southwestern
Jan.

Standard Sulphur Co.,

Powers

struction.

Proceeds—For construction program.

•

working capital. Office—1 Main St., Houston, Tex.
Scott, Khoury & Co., Inc., New York.

Underwriter

if Simonds Saw & Steel Co., Fitchburg, Mass.
Jan. 15 (letter of notification) 1,000 shares of common
stock (no par). Price—At market (approximately $40.50
per share). Proceeds — To Daniel Simonds, the selling
stockholder. Underwriter—Townsend, Dabney & Tyson,

tion

—For

•

.

York-Hoover Corp., York,
16

(letter of notification)

t

Pa.

12,490 shares of common

Price—$8 per share. Proceeds—To nine
selling stockholders. Underwriters—Butcher & Sherrenl
and Stroud & Co., Inc., both of Philadelphia, Pa.

Volume 177

Number 5190

.

The Commercial and Financial Chronicle

..

(517)
fund

Prospective Offerings

be

and

Aluminium Ltd.
Oct.

15 directors expected that additional financing will
be undertaken in 1953 to meet the major part of the in¬
First

acted

estimated cost of the

expansion program.

Boston

Corp., and A. E. Ames & Co., Ltd.,
dealer-managers in stock offering to stockhold¬

as

27

it

Service Co.

reported the company in February plans
$14,500,000 of first mortgage bonds and in March

to

sell

to

issue

was

and

sell

378,000 additional

shares

of

common

stock

(par $5). Proceeds—To finance 1953 construction
Underwriters—For common, The First Boston
Corp. and Blyth & Co., Inc. (jointly). The bonds may
Jbe placed privately.
program.

Arkansas
Dec.

it

15

Power & Light Co.

reported

was

company

issue

may

and

sell,

^probably in June, 1953, about $15,000,000 of first mort¬
bonds.
Proceeds—To repay bank loans and for

gage

construction.

mew

Underwriters—To

be

determined by

•competitive bidding.

Probable bidders: Halsey, Stuart &
Inc.; Lehman Brothers and Stone & Webster Secu¬
rities Corp. (jointly); The First Boston
Corp.; White,
«Co.

"Weld & Co. and Merrill Lynch,
t

Pierce, Fenner & Beane
Securities Corp. and Central Re¬

(jointly);

Equitable
public Co. (jointly).
Jan.

12

.-about
t

it

was

$800,000

writers—May

Proceeds—For working capital.

Under¬

be Riter & Co.; Hemphill, Noyes &

Co.,

r<both of New York.

Baltimore

& Ohio

RR.

(2/9)
will be received up to noon
(EST) on Feb. 9 at
company's office, 2 Wall St., New York City, for the
^purchase from it of $3,000,000 equipment trust certifi¬
cates, series FF, to be dated Dec. 1, 1952 and due in 15
!Bids

.installments

of $200,000 each on Dec. 1, from 1953 to
1967, inclusive. Probable bidders: Halsey, Stuart & Co.
line.; Salomon Bros. & Hutzler.

Bank of the Manhattan
Company (1/30)
^Jan.
23
stockholders
approved issuance and

sale to
.'stockholders of 250,000 additional shares of
capital stock
(par $10) at rate of one new share for each 10 shares

Iheld, on or about Jan. 30. Price—To be 10% under ex¬
isting market (around $31.50 per share). Proceeds—To
i increase
capital and surplus.
Underwriter—The First
-Boston Corp., New York.

Big Horn-Powder River Corp., Denver, Colo.
13 directors authorized an
offering of 565,220 ad¬
ditional shares of capital stock first to stockholders

.Jan.

basis

ton

of

Price—To
penses.

one

be

share

new

named

later.

for

each

nine

shares

Proceeds—For

held.

drilling

ex¬

Underwriter—None.

California
Oct. 7 it

Electric

was

Power Co.

announced company

intends to sell early
In 1953 approximately
$10,000,000 of additional new setcurities, viz: $8,000,000 of first mortgage bonds and
*about $2,000,000 of common or
preferred stock. Proceeds
vU-For new construction and
repayment of bank loans.
♦^Underwriters—May be determined by competitive bid¬
ding. Probable bidders: (1) For bonds only—Halsey,
tStuart & Co. Inc.; Salomon Bros. & Hutzler.
(2) For
•

♦bonds

and

IBeane

and

stocks:
Dean

Merrill

Witter

Lynch,

&

Co.

Pierce,

Fenner

&

(jointly); Kidder, Pea¬

body & Co.; Blyth & Co., Inc.
6

Clinton

v4he

F.

and

trusts

approximately

"fourth of their

one-

holdingk of 71% of 1,500,000 outstanding
CarborundurrnCo. stock. Offering—Expected
"during first quarter of this year. Underwriter—The First
I Boston

of

Corp., New York.

Registration

Expected in

—

^beginning of February.
Central Maine Power Co.
3 Dec.
27, William F. Wyman, President, announced com¬

pany early in 1953 intends to issue and sell $10,000,000
••of first

and

Beane

additional

common

and

stock.

Nov. 18, it was reported that
company plans to offer and
sell 900,000 additional shares of common
stock (no par).
Price—To be named later (around
$1.70
per

general mortgage bonds.

Proceeds—To

re-

shares;

balance

to

Some people look at

only

from

the

printing

standpoint

quality; others think
have

to

compromise

they're faced with
At

your

As

a

of

they
when

rush job.

Sorg, quality is consistently

maintained

while

meeting

deadline.

offered
end of

corporate

in

financial,

and legal printing,

handle

design, printing
(both letterpress and offset),

binding, mailing.
Our service is

Canada.

January

or

Offering

—

early Febru¬

ary.

Chicago Great Western Ry.
Deramus, 3rd, President, stated that

Jan. 9 William N.
the company is

planning issuance and sale of $6,000,000
to be secured by
$9,000,000 first
mortgage bonds held in the treasury. Proceeds—To pay
collateral trust

bonds

off $3,000,000 of

notes and for working capital. Under¬
writers
To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart &
Co., Inc.; Kidder,
Peabody & Co.; The First Boston Corp.; Merrill Lynch,
—

Pierce, Fenner & Beane.

complete.

8tl SOUTH ST., NflV YORK 58, N.V.

ShinteM

be first

for

offered

subscription by common stockholders on the basis of
about one-third share for
each common share
held; th«a
to holders of 5%

preferred stock (par $100) and of 5%
(par $20); thereafter to holders of 5%
preferred stock, series A, (par
$10); and any unsub¬
scribed shares to public.
Proceeds—To redeem $10
par
5% preferred stock (61,881 shares
preferred stock

outstanding at"Nov.
30, 1952) and for working capital.
Price—$11 per share.
Underwriter—G. H. Walker &
Co., St. Louis, Mo.

General Public Utilities
Corp.
Nov. 15, A. F.
Tegen, President, announced that its do¬
subsidiaries may spend around
$80,000,000 for
new construction in
1953.
Of this
total, $15,000,000 will
be provided
internally leaving about $65,000,000 to be
financed by the sale of
securities. Subsidiaries expect
to sell around
$49,000,000 of bonds, debentures and pre¬
ferred stocks and GPU will furnish
about $16,000,000 to
them. GPU expects to obtain the funds
from
mestic

bank

the

sale

of

debentures, the sale of

combination
well

into

of

these.

next year,

If

present

common

loans,

stock'

conditions

or

expect to offer addi¬
shares to stockholders rather than
resort to borw

tional

rowing. Merrill Lynch, Pierce, Fenner & Beane acted
clearing agent in last stock offen
Gulf

Productions Corp.

a

continue

GPU would

States

Utilities

as

Co.

Jan.

den, Stone & Co., New York.

construction program, expected to cost
between $26,000,000 and $28,000,000 this
year. The exact amount of the
bond offering has not yet been
determined.
Unde**
writers-—For common stock to be
determined by compet¬
itive bidding. Probable bidders:
Merrill Lynch, Pierce,
Fenner & Beane and Lehman
Brothers

was

Columbia Gas System, Inc., N. Y.
Oct. 10 it was announced company plans to issue and sell
common
stock and additional debentures
early in the
Spring of 1953. Proceeds—To repay bank loans and for
construction program. Company has
sought SEC author¬

ity to borrow from banks

aggregate of $25,000,000.
Underwriters—To be determined by competitive
bidding.
Probable bidders: For stock, Merrill Lynch. Pierce, Fen¬
ner & Beane,
White, Weld & Co. and R. W. Presspricb
& Co. (jointly); Morgan Stanley & Co. For
debentures,
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.
an

offer to stockholders

on

company proposes to
about Jan. 26, 1953, a total of

or

23,640 additional shares of

common

stock

on

a

share-for-

share

basis; rights to expire Feb. 9. Price—At par ($2
share). Proceeds—For investment. Office—105 West

per

Madison

it

was

determined

by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Salomon Bros. &
Hutzler;
The First Boston Corp.; Lehman
Brothers; Kidder, Pea¬
body & Co.; Equitable Securities Corp.; Union Securities
Corp.; Harriman Ripley & Co., Inc._ Registration—Ex¬
pected

Feb.

ceived

16.

Bids—Tentatively scheduled to be

March 24.

on

it

26

was

announced

.

/

re¬

...

each six

shares held

Price—$30

per

an

additional

on

a

bisis of

given the

100,000 shares
one

new

of

share for

Jan.

13; rights to expire Jan. 30.
share. Proceeds—To increase capital and

* Fitchburg Gas & Electric Co.
23

sell

23,698

it

was

Feb.

25.

announced

additional

stockholders

on a

plans to issue and
capital stock to its

company

shares

l-for-5

of

basis, subject to their approval

Proceeds—To repay short-term borrowings.

Light Co.

(4/7)
Jan. 7 it was reported company plans to issue and sell
$15,000,000 of first mortgage bonds due 1983., Proceeds
—To pay bank loans and for new construction. Under¬
writers

To

be

determined -by competitive bidding.
Halsey, Stuart & Co. Inc.; Kuhn, Loeb
& Co., Inc.; Lehman Brothers;
Merrill Lynch, Pierce, Fenner
& Beane; Shields & Co.; White, Weld & Co.
Bids —
Expected April 7. Registration—Tentatively planned for
—

Probable bidders:

& Co.; Harriman Ripley
The First Boston Corp.;

March

2.

Corp.
16, M. A. Follansbee, President, said the company
plans additional equity financing, totaling about $4,500,000.
This may be done through a rights offering to
stockholders. Proceeds—Together with funds from pro¬
posed $29,500,000 RFC loan, would be used for expansion
program. Underwriters—May include Cohu & Co., New
York. Offering—Expected in February.
Freightlines,

(2/3)
has applied to ICC
authority to issue and sell $1,100,000 6% convertible
debentures due 1967. Price—At par. Proceeds—To retire
outstanding debentures and preferred stock and for new
equipment and working capital. Underwriter—Allen &
Co., New York; Peters, Writer & Christensen, Denver,
Colo.; and Edward D. Jones & Co., St. Louis> Mo.
for

17

it

due

Co.

was

announced

Inc.

company

~

'

r

1983.

Proceeds—For

construction

program.

(jointly); Equitable Securities Corp.

Dec. 15 it

"

was

reported company plans to issue and selF

$9,000,000 of first mortgage bonds

due 1983.^ Underwrit¬
ers—To be determined
by competitive bidding. Probable

bidders:

Halsey, Stuart & Co. Inc.; White, Weld & Co.
(jointly); Equitable Securities Corp.;
The First Boston
Corp.; Salomon Bros & Hutzler; Glore^,
Forgan & Co.; Kidder, Peabody &
and Shields & Co.

&

Co.; Harriman Ripley

Co., Inc.

Offering—Probably in April, 1953.

»

>

Long Island Lighting Co.
Dec.

15

it

was

credit

1,

announced

in

the

amount

company has established
of $40,300,000

&

extending to;

1953, to be refinanced by the issuance of

Underwriters—(1) For

new

common

stock, prob¬
Co., Inc. and The First Boston Corpu
(jointly). (2) For preferred stock, may be W. C.
Langley & Co. (3) For bonds, to be determined by
competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Cot
Inc.; Blyth & Co., Inc. and The First Boston
Corp.
(jointly); W. C. Langley & Co.; Smith, Barney & Co.
ably

Blyth

Dec.

&

15

it

*wc

was

announced company
may issue and sell
mid-year about $10,000,000 of first
mortgage bond*.
Underwriters—To be determined by
competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Kuhn, Loeb

in

& Co. and Lehman Brothers

(jointly); Blyth & Co., Inc.;
and Shields & Co.
(jointly); Salo¬
Hutzler; W. C. Langley & Co., The Firs*
Boston Corp., and
Glore, Forgan & Co. (jointly); Merrill
Lynch, Pierce, Fentter & Beane and Kidder,
Peabody &
Co. (jointly); Harriman
Ripley & Co., Inc.
White, Weld & Co.
mon

Bros.

&

Maine Central
Jan.

it

8

RR.

was

reported company may
$17,000,000 of bonds. Proceeds—For
writers

Probable

sell

an

issue oi

refunding.

To

—

be

determined

bidders:, Halsey,

by

Under¬

competitive

Stuart

Co.

&

bidding.
Inc.; Kidder,

Peabody & Co.; W. C. Langley & Co.; The First Boston
Corp.; Merrill Lynch, Pierce, Fenner &
Beane; Blyth &
Co., Inc.; Glore, Forgan & Co. Bids—Expected
possibly
some time in
February.
,

,

Maryland Casualty Co., Baltimore, Md.
Jan. 8 it

going

first

include

(2/25)

announced the company plans to issue
and

was

sell about 400,000

(probably

Dec.

Garrett

Corp.

Louisiana Power &
Light Co.
were

Underwriters—Equitable Securities Corp.; Rob¬
inson Humphreys Co. 4

Jan.

Proceeds—For

Underwriters—To be determined by
competitive bidding;
bidders: Halsey, Stuart '& Co.
Inc.; Blyth &
Co., Inc.; Union Securities Corp.; W. C.
Langley & Co.,
White, Weld & Co. and Shields & Co.
(jointly); Lehman
Brothers, Goldman, Sachs & Co. and The First Boston
Corp. (jointly); Hemphill, Noyes & Co. and Drexel &

Atlanta, Ga.

surplus.

on

bonds

securities.

company

stockholders of record that date

right to subscribe for
capital stock (par $10)

certain amount

year.

ic Indianapolis Power & Light Co.
Jan. 22 company sought
authority of Indiana P. S. Com¬
mission to issue and sell
$10,000,000 of first mortgage

Dec.

plans to issue and
sell $6,800,000 of first mortgage collateral trust bonds
due 1983.
Proceeds—To repay loans. Underwriter—To
be determined by competitive bidding.
Probable bid¬
ders: Halsey, Stuart & Co. Inc,; The First Boston
Corp.;
Smith, Barney & Co.; Blyth & Co., Inc.

Jan. 13

planning to sell
a

(jointly); Stone'

& Webster Securities

bank

•

+ Fall River Electric Light Co.
Jan.

mortgage bonds later in the

Jersey Central Power & Light Co.

Light Co. (3/24)
reported company may issue and sell in
March, 1953, about $9,000,000 of first mortgage bonds.
Proceeds—For construction program. Underwriters—To
be

of first

Street, Chicago, 111. Underwriter—None.

Dallas Power &

Dec. 15

16, it was announced company is
$6,000,000 in common stock in June and

Probable

Culver Corp., Chicago, III.
Nov. 22 it was announced that

•

PRINTING CO., Inc.

General Contract
Corp.
14 stockholders voted to
approve a new issue o£
500,000 shares of authorized 6% cumulative
convertible
preferred stock (par $10). These are to

Jan.

reported company plans issuance and sale
of about 500,000 shares of common stock. Price—Ex¬
pected to be around $10 per share. Underwriter—Hay-

Oct.

&m€mcial, yieyal,

in

Follansbee Steel

specialists

we




be

Not expected until the

Florida Power &

No matter how you look at it..

share).

Proceeds—For expansion program.
Underwriters—Leh¬
man Brothers and
Bear, Stearns & Co. for about 800,000

First National Bank of

Robinson, President, announced that

Mellon family, and various foundations
•established by them, plan to sell
.-shares

&

White, Weld & Co.
(jointly); Harriman Ripley & Co., Inc.; Salomon Bros.
& Hutzler. The
company has no present plans to issue

Carborundum Co.
»Jan.

Boston

Fenner

Cinerama

reported company late in 1953 may sell
to $1,000,000 convertible preferred or

stock.

common

Co.

Inc.; Coffin & Burr, Inc.
Corp. (jointly); Blyth & Co.,
Peabody & Co. (jointly); Merrill Lynch,

First

Jan. 9 it

Baker-Raulang Co.
•

Pierce,

&

Charter Oil Co., Ltd.

Arizona Public

Jan.

The

Inc. and Kidder,

in Oct. 1951.

ers

•

the

in

crease

The

outstanding short-term notes. ' Underwriters—To
by competitive bidding. Probable bid¬

determined

ders—Halsey, Stuart

57

to

shares

common

on

common

stock

stockholders

one-for-two basis).

a

Merrill

(par $1), rights

of

record

Feb.

21

Underwriters—May-

Lynch, Pierce, Fenner & Beane; Thee
Corp.; Lehman Brothers; and Paine, Web¬
ber, Jackson & Curtis. Offering—Expected to be mado
about Feb. 25 or 26; with
rights expiring about March
First Boston

12.

Registration—Scheduled for Feb. 5.

Merritt-Chapman & Scott Corp. (3/27)
Jan. 7, Ralph E. DeSimone,
President, announced that
primary rights would be issued to common stockholders
of record March 27,
1953, to subscribe to additional
stock

common

shares held

on

(with

basis of
an

one

new

share for each five

oversubscription privilege); rights'
There are presently outstanding

will expire on April 14.

550,282

($12.50

reserved

for

par)

scrip.

Underwriter—None.

common

Proceeds

shares,
—

For

including
working

shares
capital..

.

,

./?•''

.

.

.

.'■

Continued

on page

5&

The Commercial and Financial Chronicle
58

57

Underwriters—To be

and sell

1983
determined by competitive bidding.

about $9,000,000 of

in May

reported company plans early
tion of about 400,000 shares of common stock.

first mortgage bonds due

Inc.; Kuhn, Loeb
(jointly); White,
Weld & Co.; The First Boston Corp.; Kidder, Peabody
& Co. and Drexel & Co. (jointly); Harriman Ripley &
Co., Inc. and Union Securities Corp. (jointly).
Mississippi Power & Light Co. (3/17)
Dec. 15 it was reported company may issue and sell Id
March about $12,000,000 of first mortgage bonds due

Probable bidders:
&

Halsey, Stuart & Co.
Bros. & Hutzler

Salomon

and

Co.

by competitive

Underwriters—To be determined

1983.

bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
White, Weld & Co. and Kidder, Peabody & Co. (jointly);
Merrill Lynch, Pierce, Fenner & Beane; Union Securities
Corp.; The First Boston

Langley & Co
expected on March 17.

Monongahela Power Co.
11 it was announced company plans issuance and
sale near the middle of 1953 of $10,000,000 first mortgage
bonds. Underwriters—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
W. C. Langley & Co. and the First Boston Corp. (joint¬

ly); Kuhn, Loeb & Co.; Kidder, Peabody & Co.; Glore,
Forgan & Co.; Lehman Brothers; Equitable Securities
Corp.; Union Securities Corp. and Salomon Bros. &
Hutzler
(jointly); Merrill Lynch, Pierce, Fenner &
Beane; Harriman

~

Ripley & Co., Inc.

Narragansett Electric Co.
Dec. 26 it was reported company has applied to Rhode
Island P. U. Commission for authority to issue and sell
$10,000,000 first mortgage bonds, series D. Proceeds—
To repay bank loans and for new construction. Under¬
writers — To be determined
by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb

(jointly); Salomon Bros.
Kidder, Peabody & Co. and Stone & Web¬
ster Securities Corp.
(jointly); Lehman Brothers and
Goldman, Sachs & Co. (jointly); Union Securities Corp..
The First Boston Corp.; White, Weld & Co.; Blyth & Co..
Inc., and Harriman Ripley & Co. Inc. (jointly). Offer¬
& Co. and Glore,

ing—Expected early in 1953.
National Ceramic Co.

(N. J.) (1/29)
and including Jan. 29 at the

Bids will be received up to

Surrogate Court House, Trenton, N. J., for the purchase
from the Estate Bayard L. Dunkle, deceased; of 1,551
shares of the common stock of National Ceramic Co.

majority interest in said corpo¬
— The Broad Street National
Trenton, 147 East State St., Trenton, N. J.

These shares represent a

Trustee of Estate

Bank of

Cleveland

National City Bank of
13

Jan.

stockholders of record Jan.

2, 1953 were giveL

125,000'additional shares of
capital stock (par $16) at the rate of one new share for
each six shares held; rights to expire on Feb. 2. Price—
$36 per share. Proceeds—To increase capital and surplus.
Underwriter—Merrill, Turben & Co., Cleveland, Ohio.
right to subscribe for

the

ic New England Electric System
Jan. 22 it was announced stockholders on Feb. 24 will
vote on increasing authorized common stock from 8,500,t
000 to 11,500,000 shares and on a provision'to provide "
in connection with preemptive offerings to stockholders
that cash or full share rights may be issued in lieu of
rights to fractional shares.
New Jersey Power &
Dec. 15 it

Light Co.

announced company plans issue and sale

was

$4,000,000 first mortgage bonds due 1983. Un¬
derwriters—To be determined by competitive bidding.

of about

.

Thursday, January 29, 1953

.

bidders: Halsey, Stuart & Co. Inc.; SalomoD
Hutzler; Kidder, Peabody & Co. and White.
Weld & Co. (jointly); Smith, Barney & Co.; Union Se¬
curities Corp.; Carl M. Loeb, Rhoades & Co. Offering—
Probably in May.
&

New Orleans
Dec.

it

15

Public Service Inc.

reported

was

$10,000,000

of

ceeds—For

new

first

company

mortgage

bonds

to sell about

due

1983.

Pro¬

construction.. Underwriters—To be de¬

by competitive bidding.
Probable bidden
Halsey, Stuart & Co. Inc.; Lehman Brothers; Kiddex
Peabody & Co. and Stone & Webster Securities Corp
(jointly); Equitable Securities Corp.; Union Securities
Corp.
Bids — Tentatively scheduled to be received
on April 14.
New
22

York, Chicago & St. Louis RR. (2/10)
company announced it plans to issue and sell

$10,000,000 of refunding mortgage bonds. Proceeds—To
retire $2,250,000 of short-term debt and for working
capital. Underwriters—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co
Inc.; Morgan Stanley & Co.; Smith, Barney & Co.;
White, Weld & Co.; Kuhn, Loeb & Co.; Union Securitiei
Corp. Bids—To be received on Feb. 10.
Northern Indiana Public Service Co.
Jan; 7 it
sell

an

near

was

announced that company

additional

fiiture

preferred

$23,000,000

of

new

plans to issue and:
securities irt

the

(in addition to 80,000 shares of cumulative

stock

recently

offered.

Proceeds—For

new

construction.

Oklahoma Gas & Electric Co.
Nov. 13 it
sell

was

additional

announced company plans to issue and
common
stock at about a one-for-ten

basis

(2,411,945 shares of common stock outstanding).
new construction.
Underwriters—May be
determined by competitive bidding. Probable bidders:
Lehman Brothers; The First Boston Corp.; Smith; Bar¬
ney & Co. and Harriman Ripley & Co., Inc.
Proceeds—For




Pipeline Corp.

announced

was

additional

Pacific Northwest

preferred

(Alexander); Inc.
it

16

Jan.

stock

common

>

company

its

to

to

proposes

offer

stockholders.

common

Stockholders will vote April 15 on plan.

applicatloi

Aug. 29 company filed a second substitute
with the FPC proposing to construct a 1,384-mile

Undervvri'ers—

May be Morgan Stanley & Co. and Dominick & Domi-

trans¬
nick, both of New York.
mission line extending from the San Juan Basin in New
Southern Ry.
'
"
Mexico and Colorado to, market areas in the Paciffc
Dec. 23 it was announced company plans to issue and
Northwest. Estimated overall capital cost of the projeci
sell ; $16,000,000 of
St. Louis-Louisville division first
is $179,000,000. Financing is 'expected to consist of firsi
mortgage bonds. Proceeds—For refunding. Underwriters
mortgage pipe line bonds and preferred and common
—To be determined by competitive bidding. Probable
stocks, and is expected to be completed by April, 105* t
bidders: Halsey, Stuart & Co. Inc.; Kidder, Peabody &
Underwriters—White, Weld & Co. and Kidder, Peabod?/
Co. and White, Weld & .Co. .(jointly); Morgan Stanley
& Co.,* both of New York, and Dominion Securities Corp. \
& Co.; Kuhn, Loeb & Co.
Bids-^-Had been tentatively
Ltd., Toronto, Canada.
1
'
.

scheduled

& Telegraph Co.
Sullivan, President, announced

Pacific Telephone

Mark

17

Dec.

banks to

R.

1953 will borrow some $125,000,000 from
be refinanced later in year, probably by offer¬
in

Jan.

will

Bids

•

(1/29)
70 Pine St.,. New York, up

received at

be

(EST)

noon

to

Jan. 29, for the purchase from the com¬

on

of $3,6*00,000 equipment trust certificates, series TT,
in 30 equal semi- annual instalments. Prob¬
Halsey, Stuart & Co. Inc.; Salomon Bros.

pany

mature

to

bidders:

able

Kidder, Peabody & Co.

& Hutzler;

-State Bank of Albany, N.

shares.

deferred

,22, but offering has been

conditions."

Southern Railway

additional common stock. Probable
Halsey, Stuart & Co. Inc.; Morgan.
Stanley & Co.; White, Weld & Co.; Lehman Brothers and
Union Securities Corp. (jointly).
Stock would be of¬
fered to stockholders, without underwriting.
American
Telephone & Telegraph Co., parent, owns 91.25%; oi
Pacific common

for

market

due-to

thai

ing of bonds and
bidders for bonds:

Y.

15, Frederick McDonald, President, announced that
company plans to offer (following approval on Jan. 27
of increase in capitalization) 101,725 additional shares

Dec.

+ Peninsular Telephone Co.
27 it was announced company plans to

Jan.

offer for

subscription by its common stockholders one additional
share for each five shares held (including the shares to
issued

be

capital stock (par $10) on the basis of one new share
Jan. 29; rights to expire Feb.
20.
Price
To be determined by directors (probably

of

for each three shares held

payment to common stockholders of
20% stock dividend). Price—To be
Proceeds—For new construction and ad¬

upon

—

9 of a

record

Feb.

named

later.

around $25
and

Underwriters — May be Morgan
Stanley & Co., Coggeshall & Hicks and G. H. Walker

ditions

property.

to

share). Proceeds — To increase capital
Underwriter — Salomon Bros. & Hutzler,

per

surplus.

New York.

*

'

'

»

,

15 it

Dec.

Pennsylvania Electric Co.

-

was

•

.

.

' <

.

•

-

.1

•

(4/13)

Electric Service Co.

Texas

& Co.

-

reported company plans to issue and sell

first mortgage bonds due 1983 and 80,000
preferred stock (par $100). Proceeds—For new
construction. Underwriters—To be determined by com¬

15 it was

reported company plans to issue and seli

$9,000,000

in June about

$9,250,000 first mortgage bonds due 198*.

shares of

Dec.

and

like amount later on.

a

Proceeds—For constructor

petitive bidding. Probable bidders: (i) For stock, Kid~
der, Peabody & Co. and Merrill Lynch, Pierce, Fenner
& Beane (jointly); Kuhn, Loeb & Co.; Union Securities

program. Underwriters—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart
Co. .

Inc.; Kuhn, Loeb & Co.;

Corp.; Equitable

Boston

Kidder, Peabody Co.; The Firsi
Securities Cdrp.

& Light Co.O,
' Jan. 23, Charles E. Oakes, President,., announced ;that
new
financing this year will require the sale of from
$20,000,000 to $25,000,000 of first mortgage bonds/ With
total financing for the four-year period "running about
$65,000,000. If sold competitively, probable bidders may
include: Halsey, Stuart & Co. Inc.; The First Boston
Corp.; Equitable Securities Corp.; White, Weld & Co.';
Smith, Barney & Co.
•
/•
-> •
i ;
i

Hutzler." (2) For bonds, to" be
competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co9 Lehman
Brothers and Blyth & Co., Inc. (jointly); Saldmon Bros.
& Hutzler; Union Securities Corp.; The First Boston
Corp.; Kidder, Peabody & Co. and Merrill Lynch/Pierce,
Fenner & Beane (jointly); Hemphill, Noyes & Co. hnd
Drexel & Co. (jointly).
Bids — Expected^on-April' 13.
Registration—Tentatively scheduled for March 5.
Corp.; Salomon Bros. &

determined

* Pennsylvania Power

,

Pennsylvania RR.
Bids

be received

will

up

to

(EST) on Feb. 3 at

1811, Suburban Station Bldg., Philadelphia 4, Pa..*
for the purchase from the company of $4,800,000 equip-'•
ment trust certificates, series AA, to be dated March L

Probable bidders: Halsey,. Stuart &
Blyth & Co.y^nc., Kidder,
Peabody & Co. and Merrill Lynch,, Pierce, Fenner &
Beane (jointly); The First Boston Corp.; Union Secu¬
rities Corp.; Hemphill, Noyes & Co. and Drexel &-Co.
(jointly); White,'Weld & Co.; Lehman Brothers.vOffer-

Hutzler; Kidder, Peabody & Co

Dec.

tion.

Oct. 3 it was

H. Blake, President, announced that as a

in raising funds to carry forward the company's
program
(to involve approximately $90,-

1953)

stock during the

Public Service Co. of New Hampshire
3

it

was

announced company plans to issue and

sell approximately

$5,000,000 of bonds in May or June,

1953, and in the latter part of 1953 to issue1 sufficient
shares to raise about $4,000,000/ Proceeds—To
repay bank loans and for
new construction. Under¬
writers—To- be
determined
by competitive bidding.
Probable bidders: jFor bonds, Halsey# Stuart & Co. Inc.;
The First Boston Corp. and Coffin & Burr, Inc. (jointly);
Kidder, Peabody & Co.; White, Weld & Co.
For stock,
Kidder* Peabody & Co. and Blyth & Co., Inc. (jointly);
Harriman Ripley & Co. Inc.
n,

'

★ Ravenna Metal Products Co., Seattle, Wash^
it was reported company plans to issue andvsell
20,000 shares of class A stock.
Price—415 per, share."
Proceeds—For expansion and working capital.

Jan. 27

.

*..>>

•

Diego Gas & Electric Co.
Dec. 29 it was reported that the company plans

Under¬

writer—Blyth & Co., Inc.vNew York and San Francisco.

(EST)

on

Feb. 4 for

purchase from the company at 44 Wall St., New
N. Y., of $4,350,000 equipment trust certificates,
dated Feb. 1, 1953, and to mature $290,000
annually from Feb. 1,' 1954 to 1968, inclusive. Probable
bidders:
Halsey," Stuart & Co. Inc.;' Salomon Bros. &
Hutzler.
~
•
"...: ;
/■' '

the

York,

series C, to be

v

Wisconsin Public Service Corp.

Nov, 26 it was announced that company plans permanent
financing prior to June 1, 1953, Hvhich may include the
issuance

and sale of between

of bonds and from

stock may be

number of shares of common

offered late in 1953 or early in 1954. Stock

financing, if negotiated, may
Boston Corp.

ders

for

Boston

$7,0^)0,000 and $8,000,000

$2,000,000 to $3,000,000 of preferred

stock- An indeterminate

&
some

-

Virginian Ry. (2/4)
be received up" to noon

.

San

stock financing in the hear future.

&

Bids Will

common

new common

..

Forgan & Co.

it contemplates selling 750,000 shares
latter part of March, 1953.
Underwriters—Last public stock financing in 1952»was
handled by Morgan Stanley & Co., Drexel & Co. and
Glore, Forgan & Co. (jointly).
•.

NoV.

;

Co.; The First Boston Corp. and Glore,
(jointly); Union Securities Corp.;;Smith,
Barney & Co.; White, .Weld & Co. and Merrill Lynch,
Pierce^Fenner & Beane (jointly); Lehman Brothers.
Offering—Probably early in 1953. •

Peabody

construction

in

''

reported company plans issue and sale of

$7,500,000 first mortgage bonds. Proceeds—For construc¬
tion, program. Underwriters—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart 8c' Co.
Inc.; Equitable Securities Corp. and Salomon Bros. &
HUtzler (jointly); Carl M. Loeb, Rhoades & Co.;Kidder,

Public Service Electric & Gas Co.

common

to

Toledo Edison Co.

Boston Corp.

of

completion of

.

plans issuance and sale

Probable bidders: Halsey, Stuart & Co. Inc.;
Kuhn, Loeb & Co/and Lehman Brothers (jointly); Mor¬
gan Stanley & Co. and Drexel & Co. (jointly); The First-

000,000

that following

See) the parent plans to offer additional
stockholders.
Underwriters^Union
Securities Corp., New York.'
*
'
: ♦. ;i
stock

common

repay

Jan. 20, George

reported

was

sidiaries (which

Glore, Forgan & Co.; Kuhn, Loeb & Co.

bank loans and for new construc¬
Underwriters—To be determined by competitive.:,

first step

it:

15

t

,

proposed financing by Dallas Power & Light Co., Tbxas
Electric Service Co. and Texas Power & Light Co., sub¬

of $50,000,000 of first refunding mortgage bonds

Proceeds—To

Utilities Co.

Texas

Public Service Electric & Gas Co.
in May

bidding.

ing—Tentatively expected in May.

Peoples Gas Light & Coke Co.
Oct. 24 it was announced that company and each of its
subsidiaries will issue mortgage bonds or other debt
securities. Proceeds—To finance construction programs.
Underwriters—To be determined by competitive bidders.
Probable bidders: Halsey, Stuart & Co. Inc.; The First

Jan. 12 it was reported company

~i

may

Inc.; Kuhn, Loeb & Co.,

Co.

1953, and to mature in 15 annual instalments of $320,000
March 1, 1954, to March 1, 1968, both inclusive.
Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon:

Boston Corp.;

it was reported .company

petitive

from

Bros. &

\

sell- about $11,000,000 of first mortgage-, bonds. . Proceeds—For hew
construction. Underwriters—To be. determined-by com¬
15

Dec.

,

noon

by

Power & Light Co.

.Texas

„

(2/3)

Room

termined

Dec.

ir Smith

Stone

Los Angeles, Calif.
a
proposal to increase
stock to 500,000 from 400,000

approved

Underwriter—The First Boston Corp., New York.

shares.

Underwriters—Emanuel, Deetjen A
& Co. (with latter handling

stockholders

22

authorized

the

Proceed*

be used to purchase ad¬

bidding.

(4/14)

plans

Seaboard Finance Co.,

Jan.

registra- :

books).

Probable
Bros.

Hayden,

and

Co.

Forgan & Co.

& Hutzler;

ration.

ditional equipment.

company

Dec.

was

—Together with other funds, to

Corp. and W. C.

(jointly). Bids — Tentatively
Registration—Expected Feb. 11.

it

19

Dec.

Metropolitan Edison Co.
Dec. 15 it was reported company plans to issue

•

Inc.

Pacific Northern Airlines,

Continued from page

\
J

.

(518)

be handled by The First

and Robert Wk Baird & Co.

bonds:

Halsey,

Corp/, Union Securities

Co.; Shields & Co.;

Corp.; Kidder, Peabody

Merrill Lynch, Pierce, Fenner &

BeaneiHarris, Hall & Co. (Inc.);
&

Co.; Salomon Bros.

Probable bid¬

Stuart & Co. Inc.; The First

& Hutzler.

Carl M. Loeb, Rhoades

Number 5190

Volume 177

.

The Commercial and Financial Chronicle

.

.

(519)

turing

certificates

three

maturities

five-

Our

choice

a

of

one-year

—

Continued

or

Observations...

Now, of course, interest quite
naturally centers in the major de¬
tail which will be

be

Report

grandchildren with

forthcoming to¬

shares in her

fixed for the prof erred

new

issues.

February Looks Better
While

The
underwriting industry,
judging by the comment of some
of those identified with it, is be¬
ginning to show signs of restless¬
after

ness

several

dullness

tive

weeks

in

the

speaking,

there

paper"

"is

lots

of

ten¬

by

business
the

reaching

on

fail¬

the

Meanwhile

the

mar¬

dissolution
of

standing

freeing

and

the

issues involved

rather

Illinois

effect

of

loosening

ring competitive interest in
issues

Take

as

up

the

of

case

such

for bids.

go up

debentures

lowing the sale
day,
of

Now With

this week.

were

and

attract

a

consequently

bound

to

number of bids.

$8,000,000 of 30-year,
first mortgage bonds brought out
total

a

of nine separate

of'them
about

identical,

bids, two

and

penny

per

a

roughly 10 cents

LOS
L.

with

Co.,

634

South

our

with

100.439 for the

Observers
that

the

dividend.

due

out

much

Canadian

belief

offering,

today, should provide

needed

test

the

of

a

position

of the general market.

of

public

of

-negotiated

the

NewYork3,N. Y.

The

190th

Common

ax

t,,

Dividend and

few

had

anticipated any at¬
tempt by the Treasury, at this
time, to fund its maturing shortterm debts on a
really long-term
basis.
That is
something which
doubtless will develop later when
the
new
incumbents have had
time to take stock

of their prob¬

Street,

Board

when

holders of

H.

Dollar

($1.00)

declared upon

the

cash

March

on

2,

share have

per

Common Stock

American Tobacco

23,

Love

etta

in

its

the

affairs.

are

therefore

claims

for

Marietta,
'

•

State

)

of

hereby

payment

to

of the

ii

the

to

Company, payable in

Metuchen

Metuchen,
its

Association

located

Slock

thirty-seven

-

share

per

on

Thomas D. Ainsiie
Louis H. Meade

January 20,

1953.




The Board of Directors has authorized

1953

and

the payment of

a quarterly dividend of
fifty cents ($.50) per share payable
March 6, 1953, tp holders of Common
Stock of record February 20,
1953, who
on
that date hold regularly issued Com¬
mon Stock ($1.00
par) of this Company..
CHAS. F. BRADLEY, Secretary
One Broadway, New York 4, N. Y,

DIVIDEND NOTICE

Secretary.

dividend

The

Board

of

Directors

cents

lias declared the

■i I

cents

Gonv.

$1.76

share

per

Preferred

cents

Common

its

on

Stock

per

($30

share

on

Preferred

Company

of

per

share

Stock

($30

par)

its

011

($1.5

par)

its

Stock

par)
1953, to

The United Gas

stockholders of record February 13, 1953.

cents

the Common capital
issued and outstand¬

EDWARD
J-uiuarv

29,

L.

SHUTTS,

'9W

Improvement

,

President.

Company
DIVIDEND

W. J.

ROSE, Secretary.

quarterly dividend of 43c per
share on the Common Stock, par
value $13.50 per share, has been
declared payable March 31,1953

SOCONY-VACUUM
OIL COMPANY
•

INCORPORATED

to

Cents'^($.60)

Dividend

mon

&

on

DIVIDEND

An

March 10, 1953 to stockhold¬

A,pn

February 13, 1953.

C.%ING,

W.

172

per

to

Secretary

share has been declared

{stockholders of record

of business

January 27, 1953.

50^

at

4imited

pany,

1953,

to

the close

1953

PAPERS

.

of

business

GIFT

at

the

February 6,

W. D. Bickham,

Treasurer

,

Hopkins, Treasurer

1953.

NOETZEL

L.

Johns

Philadelphia, January 27, 1953

payable March 10, 1953,

stockholders of record

close

February 9, 1953.
E.

per

of Directors today
quarterly dividend of
share on the outstand'
a

ing capital stock of this Com'

the capital stock of The Borden

Company, payable March 2,

Board

declared

of sixty cents

dividend

interim

(60<Q

of record at the close of

business

27,1953

The

Dye Corporation, payable

ers

No.

Southern

Secretary

WRAPPINGS

Company

DIVIDEND NOTICES

NOTICE

DIVIDEND

Debenture; The regular quarterly
dividend of $2.00 per share

DIVIDEND

January 21,
of

1953,

fifty, cents

U. S. currency was
par

value

a

declared

on

the

per

no

business

Februqry 2, I 953.

record

at

the

close

of

share

on

A. B. Newhall, Treasurer

j

eMail u|Wt
Framingham

Montreal

JAMES

A.

DULLEA

January 21, 1953

Secretary

of 30 cents

the "A" Common and

record Feb. 9, 1953.

shares of this Company

of

THE TEXAS COMPANY

tkj

d-O.j

Dividends
the

aggregating

Preferred

Company

202ml

able

as

$3.75

of

Stock

have

today

on

The

transfer books will

Mar.
June

1.25

Sept.

Fob.

15, 1953

15, 1953

'

13, 1953

May

14. 1953

1.25

15, 1953

Aug. 14, 1953

A dividend of One dollar and twenty-fivn
cents

of

($1.25)

Common

Southern

February 6,1953.

per

share

Stock

on

1,298,200 phases

without

par

value

of

Railway Company has today been

declared out of the surplus of net profits of

the Company for

re¬

main open.

cember

.

Robert Fisiier
January 23, 1953

of Business on:

Payment

$1.25

the close

of business

Mass.

pay¬

To Stockholders <rf

regular quarterly dividend of
seventy-five cents (75$0 per share
on
the Capital Stock of the Com¬
pany has been declared this day,
payable on March 10, 1953, to

stock

oa

Railway

Record at theCtos©

Date of

at

share

declared,

follows:

Amount

A

stockholders of record

per

Southern

been

Consecutive Dividend

Voting Common:

VotingCommon Stocks will be paid
Mar. 3, 1953, to stockholders of

payable March 5, .1953, to share¬
holders

the

New York, January 27,1953-

Feb. 9, 1953.

share in

per

on

Debenture Stock will be paid Mar.
3, 1953, to stockholders of record

quarterly

Feb¬

quarterly dividend of $1.06J£
per share on the
% Preferred
Stock has been declared payable
April 1, 1953 to stockholders o£
record February 27, 1953..

the Com¬

Stock of Allied Chemical

record

27, 1953.

A

January

No. 168

/3(jrde4vS

share

per

of

stockholders

ruary

Quarterly dividend No. 128 of

NOTICE

A

January 28, 1953.

Liquidating Committee
Dated:

stock

February 13, 1953.

therefore

Phil T. Ruegger
r

Common

ing in the hands of the public has been
declared payable March 10, 1953, to the
holders of record at the close of business

On

N. J.

open.

Company

new

10,

one-half

A quarterly dividend

hereby notified
undersigned, at 85

remain

Foundry Compact

and

.

declared
the

IHvuIcihI

and

"A" Common and

at

Pipe

Company,

4II dividends payable March 1,

at

NOTICE

books will

JOHN W. BRENNAN, Secretary & Treasurer

DIVIDEND

30

quarterly

\

(37He)

present

State of New
Jersey, is
affairs.
All "creditors
of
the

Metuchen,

r

the

33%

A regular
f

closing

the

are

transfer

United States

Y.

BALGOOYEN,

€0111111011
I

NOTICE

'to present claims to
the
Rector Street,

N.

6,

//

Harry L. IIilyard, Treasurer

aluminium

undersigned,

Bank,

The

an

exigencies

the legalities; and that the nasty

i

stock of the

dividend
in

of

President

February 10,

G. C.
McMAKIN,
Liquidating Agent.

National

from

apart

Defense

midst

IOWA SOUTHERN

AMKKKAN «AS "
AMI KLKCTIKIC COMPANY

1953

Oklahoma.

"

the

Y., January 22,19S3

Directors

this day declared a
quarterly dividend of seventy-five' cents (75f)
share on the outstanding Common Storit of
the
Company, payable March 20, 1953, to
stockholders of record on February 27, 1953*.

Mari¬

at

Is

hope

established

wholly

4%%

Association

notified

LIQUIDATION

.closing

Bank

Oklahoma

All creditors

strongly

quickly

of

per

industrialists to lead

our

Foundry Compaq

New York, N.

Board

been

1953,

January 27,

NOTICE

Green, Secretary

DIVIDEND

Treasury offered
the $8.9 billion of ma->

County National

on

The

CREPED

The

of

1953

United States Pipe and

designation of Mr. Wilson

following regular quarterly dividends:

1953, to stockholders of

record at the close of business

W.

Vice

January

been

of

the

LIQUIDATION

January 27,

UTILITIES COMPANY

York

Diiectors

lems.
So

stockholders

to

E.

seems

:!*•

must

INC.

New

STOCK

of

Extra Dividend

regular dividend of Seventy-five Cents
(75<J) per share and an extra dividend of

has been declared

informed

ltcctor

A

Sixty

Blanketing the Field

people

or

1953

harry

legal

a

integrity,

February 10, 1953.

rate

this type.

say,

high

16,

all three counts during the

on

FOREIGN POWER

a
meeting held January 23,
1953,
dividend of 15 cents per share on
Common
Stock for
payment
March
to the stockholders of record

bidding.

should,
at the
same
time, mirror quite
accurately just what investors are
disposed to look for in issues of

to

of

man

.

atmosphere,

a

the price and consequent
yield set for this offering should
riot only give a good
insight into
the ideas of
bankers, but

<

crisis

at

rather

coupon

March

record, March 2, 1953.

my

NOTICES

COMPANY

apd

i Needless

a

becomes

to have

prove

DIVIDEND

1953. Checks will be mailed.

sale

competitive

-Accordingly,

and

relations, politics,

COMMON

the
Province- of,
$50,000,000 undertaking January 27,
is being handled
through the me¬
via

with

only an isolated incident in the
General's ultimately successful consummation of his
crusade.

NOTICES

111 Fifth Avenue

Fortunately,

dium

of

out

ethical

problem will

J^nWUjzam, (Jutfriejeo^om.

Ontario's

than

do

30

this

day
a quarterly dividend of
fifty
(504) per share, payable oa

cents

The

directorate

AMERICAN &

One

the

of

were

big

politics,

who pinned our faith

us

unblemished

Street,

successful

same

should

No.

has

declared

of his

I

DIVIDEND

of Directors

United States Lines
DIVIDEND

or

Real Test for Market

.1,

,

think

iNconrofu reo

the

Transfer

COLE,

Street, New York 17, N. Y.

The Board

just

$100,

group paying 100.5399 for a $4.36
dividend
rate.
The
second
bid
was

you

$1,000 piece,

per

Similarly there were seven bids
for the 60,000 shares of new
pre¬
stock,

do

42nd

COMMON

hearings.

government

Department

with Morgan

Spring

1953.

closed..

CORPORATION

stockholding in
capitalization, and asking

total

weeks interval between the

seven

Those of

Morgan Co.

now

be

not

WEST INDIES SUGAR

of

manner

ineptness, Attorney General Brownell,

of

and the Senate

Two

ferred

"What

similar

master

a

entire

Exchange.

101.7799.

was

citing the smallness

unaccountably to have been asleep

$30,000,000

members of the Los Angeles Stock

separating the winning bid of
101.79 from that of the runner-up
which

light,

ANGELES, Calif A-Donald

Arbogast is

&

the

But

the

Johnson

With

(Special to The Financial Chronicle)

early

a

of

Chairman of The Board

money?"; and really seemed to believe that the public would rest
easy on his directives
regarding designees Stevens and Talbott.

Tennessee Gas Transmission Corp.

Gas & Electric Co. and its offering

small

as

corporation's

to

*

of bonds and preferred stock

issues

of

will

compensated for by the market

He persisted with all

irrelevancies, such

preceding

through bids,

declared

stockholders

to his legatees through

proportion

10th, fol¬

the

has

dividend of 20 cents
the common stock payable

SYLVAN

60 E.

(i!

the

on

of Directors

on

during the past year (it sold at
besides, its permanent cost will be

regarding the basic proprieties.

20-year pipeline bonds by the

Iowa-Illinois

True both

for

set

books

SHOPS

4G

quarterly

28th, 1953 to
February
20th,

record

studying Mr. Wilson's testimony, this writer does not note
arrogance widely attributed to
him; but rather singular ineptness

May Department Stores has a
$25,000,000 issue of sinking fund
-

NO.

February

In

Senator

Co.

the

of

hitherto "frozen" capital and spur¬
new

Power

Board
share

per

inheritance tax thereon.

preferred stock
and
250,000 shares of no par commori
of

of

long

to have had

seems

a

involving

t

■several | syndicates

usual

deal

cumulative

keting stage.

the

underway with

The

regular

the shrinkage in
be subject to inheritance tax.
On
being given to his children and grandchildren the
gift tax is substantially less than would have been the
overhanging

Corp., on the 3rd.
This will be followed, on the
5th, by 150,000 shares of $50 par
-

materialize

get

negotiated

by the saving

SHIRT

DELAWARE, INC.

his ultimate estate which will
the stock now

cial Credit

of such prospective business to

ure

better

will

sizable

reduced

promis¬
things.
The
as

NOTICES

DIVIDEND

name.

and,

looking

are

Besides, his wife retains 10,000

advance in General Motors stock
50 on Feb. 21,
1952),

$25,000,000 of bonds of Commer¬

the

and then lament

much

month

dency at the moment, is to remark
that

bankers

to

current
business

new

February

ing

field.

Generally

the

of

investment

issue

new

volume

forward

rela¬

of

bewailing

limited

own

NATIONAL
OF

8,000 shares.

On the sale of his stock—the nub of his
complaint—he will have to pay a capital gains tax
(an unfair tax
for everybody)
amounting to $500,000. Such contribution to pave
the way for serving his
country at this time of crisis will still
leave himself and his wife with
$4% million of assets. Incidentally,
the entire amount of tax has been

namely, the interest rates

morrow,
o

5

page

DIVIDEND

six-year paper—it came
pretty well up to expectations.

Reporter's

from

or

59

-f

31,

the fiscal, year ended De¬

1932,

poyable

March 14.
.

J. J.

Treasurer

on

1953, to stockholders of record at the cl-ss
of business on February 13, 1953.
MAHER,

Secreta.f-

The Commercial and

ffl

Financial Chronicle

Thursday, January 29, 1953

.

..

(520)
On the other hand, if he

bonds.

BUSINESS BUZZ

would

in

them

deposited
be

bank,

a

suspected

he
the

since

Comptroller of the Currency, an
officer

•

•

lates

the

As

Behind-the-Skene Interpretations
from the Nation's

they
or

that feverish ques¬
tion, "What is Eisenhower go¬
ing to do?" keep your shirt on,
liave patience, and figure on a
pretty long wait before you get
to

respect

details

the

for

answer,

your

probably are going to be slow
in coming, beyond what is re¬
vealed in the new President's
first message to

febrile

Every¬
to know
Even the

state, to put it mildly.
body in business wants

specific answers.
Congressional com¬
mittees are in the dark, wonder¬

the

Chairmen of

ing what in blazes Eisenhower
wants so they can get going.

the
case
of the
Senate
Banking
Committee.
Senator Capehart,
Chairman and maestro of that
There

instance,

for

is,

legislative symphony, has come
wrmed with all the sheet music
ever written, so to speak, so he

what is to

the signs
relatively
meager—indicate that Mr. Eisen*
hower isn't going to work that
the other hand,

give-away

the possi¬
comprehen¬

program,

bility of enacting a
sive scheme of war damage in¬

and the necessity for
•developing a housing program.

without

word

as

to what the Eisenhower

going

is

Administration

do

to

about keeping the easy money
program going for ever
volumes of construction,

larger
is al¬

ternately hoping and going into
the despond, some of its leaders
even hinting that the "bankers
In the Eisenhower Administra¬
tion are in control" and will

promote deflation in building.

pecting something like those
feverish first three or four

-.^/months of Congress in 1933 un^

der

FDR.

During

three
so, there

those

months, every week or
came down
from the White
House this or that broad new
**must" reform,

all written and
Teady for Congress to pass with¬
out having to cross a "t" or add
a comma.

that
President
Eisenhower has got a couple of
It

be

may

bright boys around, 1953 coun¬

terparts of Tommy the Cork or
Benjamin Cohen, who from
some

Georgetown

Congress

Mr.

program is to see daylight
the statute books.

Go Slow Seen in

the Eisenhower revolution, This

can't

correspondent
Isn't

so,

because

few

correspondents have
tablished
one

vantage

this

say

as

if

any

yet

points

es¬

from

of Mr. Eisenhower's knees,

a.'!

threatened

*

(2) It should balance the
Budget first.

on

bordering

States was going to
of spending with¬

military-

preparation.
Eisenhower's speech is

at least

points where he serves a
warning that he wants results
from the Western allies.
Every

diplomat takes a sentence apart
and considers what is the oppo¬
site of the proposition, and the
opposite of the proposition was
a clear inference that the Amer¬

government are
only going to play with those
governments which give forth

ican people and

results.

Presi¬

therefore,

dent Eisenhower

appears

to be

the stage for an entire

setting

re-appraisal of military and eco¬
nomic aid and foreign policy.
He has made no thunderous an¬

will do

nicely
that

not been

dropped but how much will be
of

made

particular stage-manage¬
that Mr. Eisen¬
is proceeding slowly to

This

suggests

ment
hower

calling
prodigies

is

He

policy.

develop

ghosts or
of Georgetown,
harmonica or piano players
no

upon

from the garrets

his program.

to shape

If he

is

proceeding carefully

foreign policy framing —
which is so fundamental to all
on

domestic

programs

well—he

as

be proceeding carefully in

other fields

as

well.

May Be More Orderly
If

slowness

this

in revealing

outlines irritates
many eager to know what gives,
it may produce a more orderly

the important

result.

is

There

unlikely

it,

within limits,

pends on them.

precede

the

de¬

It was timed to

tour

which State

Secretary Dulles is commencing
to European

capitals to talk the

wrhole thing over.

be

to

a

repetition of some of the hectic
incidents Of the early New Deal,
of which this correspondent rec¬
ollects two in particular.

commit¬

returning from
the White House with the draft
tee

of

chairmen,

a new

and broad fundamental

enactment, sat down wearily in
the Capitol restaurant

for a cup

of coffee.

He pulled the

bill

of

out

his

things

do

Bears on Whole Picture

"must"

pocket

and

this

like

to

j

t

time when

is

undertaking

an

Congressional Joint

Joe Byrns,

late

on

j

for

Internal

Committee

Revenue

been'

has

|

preparing for months.)

The gold standard is an

(6)

objective

which should be

brought about after the Budget!

would be
O. K. with the President to let
the House that day vote on such
and such a particular amend¬
ment to the Agricultural Ad¬
if

Roosevelt

Mr.

whole, wit& '

which the technical staff of the-'

there was the

Democratic
leader,
called up the White
house in the presence of this
newsman to ask the late Marvin
Mclntyre, Secretary to the Pres¬
ident,. whether he would ask

the

study of the Fed* '

view to its being overhauled,

(This

us," he

wailed.
Or

a

eral tax system as a
a

One of the important

appeared

speech

tion will be

psychiatrist—I understand it's an
emergency call!"

boss'

the

"He's

may

four

The

long period.

One of the earliest jobs
which the Treasury will under* j

or

read carefully, there are

than the country can

(5)

Mr. Eisen¬
the country,
and also the gallant allies, that
On the other hand.

If Mr.

The nation's taxes aremore

bear for any

nouncement of what he

hower had to assure

concrete results in

|

(4)

.

much

specifically and has not asked
Congress for X-teen billions to
continue collective security.

out

'

mo*

ment.

balanced
neatly two problems he had in
foreign relations.
On the one
hand he had to assure the jittery
European politicians
that the
United States was not suddenly
going to end all collective secu¬
rity, as many of them had actu¬
ally come to believe.
Mr. Eisenhower

no more

earliest practicable

the

at

Obviously,

pitched al¬
most entirely at the foreign cus¬
tomers of U. S.
military and
economic support, insofar as it
address was

anywhere near
the concrete.

j

(3) Tax reduction should come

take under the new Administra* !

angels fear to tread.

came

|

currency.

Inaugural

gural address was a further sign
that the new President eschews
the idea of rushing in where
This

.

The Administration's firsl:!
job is to retard, then stop, the
depreciation in the value of the ;
(1)

Eisenhower's Inau¬

President

the-'

fol*l

lows:

Speech

collective security has

down

which

basic policies he favors, as

from

sitting

are

if

Committe

arose

Mr. Humphrey laid down

Eisenhower
reputedly has agreed to consult
with Congress in framing his
programs before they are an¬
nounced.
That is the commit¬
ment reliable Congressmen be¬
lieve they have obtained from
the new President. Congress is
to be consulted in advance be¬
fore the Administration's neck
is stuck out on broad legislative
proposals, for it is the slender
conservative majority whose en¬
thusiastic support will be vital,
if Mr. Eisenhower's legislative
that

is

timed to tell the Europeans

writing hastily the blueprints of

with the Fi* j
any
issue .

retary to consult

signs of deliber¬

One of those

retreat In

fashionable

agree* ,
Treasury Sec* j

Will Check With

have

Unconsciously people are ex¬

informal

an

ment of the new

nance

was

case

affecting companies in.!
which Humphrey was interested* |

the United

Harkens Back to FDR Days

by

his

decision

surance,

The housing industry,

j
in

ever

pull out and practice on the
Eisenhower wants
when he hears what Ike wants.
ing Committee is getting itself
empowered to make high-pow¬
ered investigations of economic
stabilization and mobilization,
the need for encouraging pri¬
vate investment to replace the

pointed!

Humphrey

Mr.

way.

number Mr.

Bank¬

attempted to own any¬

settled

far—and they are

van

Under his leadership the

literally interpreted,

The dilemma

On

so

if

Secretary,

out.

come.

ation

Congress.

This town is now in a

which to hear

from

go,

be

amounted to anything

ever

ever

thing,

"WASHINGTON, D. C. —With

the

Treasury

of the

were

who

to

relating

could

one

no

regu¬

j

rules

Secretary

And You

Capital

Treasury,

the

of

banks.

it

is

balanced, and "under appro*

j

priate circumstances."
(7) Maintain the independence

of the Federal Reserve System, !

justment Act.
(This column is intended to re¬
flect the "behind the scene" inter*
pretation from the nation's Capita8:
and may or may not coincide
the "Chronicle's" own views.)

Humphrey Passes Test

Humphrey more
the test of approval
by the Finance Committee for
M.

George

than passed

confirmation of his

nomination

Secretary of the Treasury.

as

questioned him closely
about his stock interest in the
M. A. Hanna Co. The rules re¬

seldom contracts
scale to buy the products
manufacturing company.

of the Treasury
on

any

of any
The

Treasury

said that he

taining his own stock
of

about 5%, in M.

Under

the

the

was

re¬

ownership,
A. Hanna. ;

regulating his ;

rules

Secretary
of the
not for his per¬

the

office,

Treasury

of

Secretary

new

may

sonal account buy or sell a gov¬
ernment

bond.

So

Mr.

Hum¬

phrey pointed out that if he

j

(Special to The Financial Chronicle)

LOS

which

garding business connections of
the Secretary of the Treasury
are
even more restrictive than
the rules relating to business
interests
of the
Secretary of
Defense, although the Secretary

}

Floyd Allen Adds

Humphrey obviously impress¬
the Finance Committee,

ed

ANGELES, Calif.

Leonard E. Wolstein is now

-»

withi.

Floyd A. Allen Co., Inc., 650 Souilt
Grand Avenue.

t

Joins Hutton Staff

f|

(Special to The Financial Chronicle)

LOS ANGELES,
Didricksen
&

is

Company,

j

Calif.—Karl B».
F.

Hutton

South

Spring-

with E.

623

Street.

^

With Merrill Lynch

<|

(Special to The Financial Chronicle)

LOS

sell his stock, he

could not in¬

"Say, why do they

vest the proceeds

E. Brown has

Merrill

joined the staff of'

Lynch, Pierce, Fenner &

Beane, 523 West Sixth Street.

in government

respondent.

sr;>?•; ax*

••

v

TRADING MARKETS
O. Ames & Co.

^ t y:

Boston Sand

& Gravel Co.

A. & G. J. Caldwell Co.

Caribe Stores

Washington Representative
Business consultant and economist, over 20 years in

Washington,

commercial

and financial reporting,

experience.

Interested in

banking

Farrington Mfg. Co.
FIRM TRADING MARKETS

FOREIGN

George E. Keith Pfds.
National Co. Common

SECURITIES

Polaroid Co. Pfds.

insurance firms for the following of Washington

or

part

analysis.

Wide foreign

time representation of business,

Riverside

Cement

Southeastern Public

r.ARL MARKS & r.o. INC.

United Cape

Service

Cod Cranberry

FOREIGN SECURITIES SPECIALISTS

developments affecting their interests.
etc.

No

•St

Surveys, special reports,

lobbying. Box B 129, Commercial and Financial Chron¬

50 BROAD STREET...NEW YORK 4,

N. Y.

10 Post Office Square, Boston 9, Mask

icle, 25 Park Place, New York 7, N. Y«




LERNER & CO.
Investment Securities

TEL HANOVER 2-0050...TELETYPE: NY 1-971

Telephone
HUbbard 2-1990

WPS!
t-A'

«■

-

agSaiaiaMMs

\

ANGELES, Calif.—Lucille

did

showed it gloomily to this cor¬

j

Teletype
BS 69