Full text of Commercial and Financial Chronicle : January 31, 1952, Vol. 175, No. 5086

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z,

ESTABLISHED JS39

FEB i
ADMINISTRATION

BUSINESS

LIBRARY

1ke Commercial

Financial

an

Chronicle

Reg. U. S. Pat. Office

Volume

175

Number 5086

New

EDITORIAL

As
We

York, N. Y., Thursday, January 31, 1952

Our Foreign and Military
Policies Are Unrealistic

See It

Continued deadlock in the Korean
which have for

dering

some

negotiations,
apparently bor¬
far as reaching any

deal

of

attention

recent

more

—

these

are

but

few

a

be

can

of

ferment

shall

gious faiths.
One

pose

major

in this

under

areas

or

European

countries

in

or

war

or

that

as

Well,

a

foreign and mil¬
were

risk,"

sup¬

which

world
;

demands

of '.risk

;

;risks

are

our

experience

the

Congress

so

of

the

pinch her

should

,

now

I

do

not

propose

on

again

how

review

we

been

the "free peoples" have for

a

good while

To

suffering from it, notably Great Britain and

France.

Certainly

it

has

long

been

gross

will

a

short

appraisal

evident

of

the

of risks,

situations

on

page

MORE

tax

began

rate

the

a

gain

on

page

hope
Board

bankers'

and

*Text of address by Mr. Hoover
vision

BUSINESS

opinions

over

a

nationwide radio and

tele¬

network, New York City, January 27, 1952.

FORECASTS

IN

THIS

ISSUE—Starting

page

3

to

shown

has

so

The Federal
by

outlandish.

commendable

leadership

associations

in

of

ing

we

preparation

the

Continued

v

on

and

dis-

page

34

address

Jan. 21,

on

not be

may

24
♦An

28

along

came

away.

•

Continued

earn¬

improve

to

enlisting the cooperation of other supervisory agencies

I

the

in

enough in this country, which, strangely enough,
Continued

higher

Reserve

indicate the necessity for recalculation
make

once

Such

from where we are now.

among

place she bulges out

Wm. A. Lyon
If last year
could produce the miracle of an un¬
pegged government securities market, this year may
show that it can perform a miracle of its own by seeing
that something is done about bank taxes.

Herbert Hoover

to

one

ings:
the

this Occasion

It has been

So it is with bank

got into these dangerous cold and hot wars, but to start

included

free

the

of

in another.

take

year,

recalculate.

more

March

The Fed¬

said of human nature that when you

V

past

industry

the

still too

itself

thing else has happened.

great that, with

over

interest rates,

restraining hand
of the Treasury. Gross earnings have
improved noticeably, but now some¬

recon¬

'

of

reasons are
have gone

wrenched

Reserve

last

constant

and:

sideration of alternatives.

The

risk

level

for

are

rates

Interest

in the last 12 months.

up

repeatedly

meant

low

wages

earnings

bank

different.

economic degeneration. With
a basis of national
policies, a

changing

Several of

ordinarily

-•

eral
we

living

dow^ relatively, but the
in

engaged

we

on our

time

recalculation

peoples still live

primitive conditions, in poverty

less constant danger of starvation.

the

culated

place to search out

in lands where

ago

the

of indig¬
too low.

credit being used.

told that United States policies were
based upon what was called "a cal¬

We

It would be foolish to

causes.

that

At

almost everywhere.

year

in

found

indicated that neither the Treasury nor

paying

was

itary policies.

that the virus is at work only in so-called

colonial

or

work

at

' *

reli-

our

I

cause

I

and

;

great debate

doubt, indeed it is perfectly
live in an era when some sort

undertake

not

all the

is

The

peace. Unfortunately on this Sabbath Day,
full goodwill to mankind, peace rests upon
from Communist aggression.

And that includes defense of

calling attention to low earnings

A year ago I said, with more than a trace
nation and asperity, that bank earnings were

r

no

we

higher taxation.

our

defense

called the international front.
There

of bank capital,
"banks
continue to be worth more dead than alive."
Deplores
bank mergers which arise out of efforts to profit by gap
between liquidation-value and market-value of bank
shares.
May ask Legislature for authority to pass on
certain acquisitions of sizable blocks of bank stock.

problems of

despite

State

N. Y. State Banking Superintendent points out

The Sabbath Day is an appropriate day to discuss our

developments in what is sometimes

obvious, that

In

and naval power, so as to reduce our economic risks
and assure our economic strength, thus avoiding dangers

the

of

By WILLIAM A. LYON*

Superintendent of Banks, New York

Former President, reviving great debate over our arms
policy abroad, reiterates his proposals of year ago, advo¬
cates withdrawal of American troops from
Europe and
concentrating on defense of Western Hemisphere. Urges
military support to Western Europe be limited to air

of socialism and

Copy

"Windfall Profit" Mergers

Ex-President of the United States

the hopeless so
real truce is concerned; further extension of the
troubles in Egypt, with definite threat of a very
considerable spread of armed conflict there; con¬
tinued danger of Communist-dominated uprisings
in Iran despite what appears on the surface to
be almost a surrender on the part of the United
States in the matter of aid granted; dramatic de¬
mand by Governor Dewey for a Pacific pact on
the order of the North Atlantic arrangement;
extended discussion of related problems by such
men in
public life as President Truman, Senator
Lehman and the Secretary of State, during the
latter part of the week in New York City, where
so-called Point Four matters came in for a good

a

Bank Earnings, Book Values,

By HON. HERBERT HOOVER*

time been

on

Price 40 Cents

by Supt. Lyon before the Annual Mid-Winter Meet¬
the New York State Bankers Association, New York City,
1952.

present some

the outlook for Trade, Finance and Industry which could not be
accommodated in our ANNUAL REVIEW and OUTLOOK ISSUE of Jan. 17.

more

DEALERS

on

State and

in

U. S. Government,
Stale and

Municipal

Securities
telephone:

R. H. Johnson & Co.

STATE

MUNICIPAL

of INDIA, LIMITED

BONDS

IIAnover 2-3700

Head

SECURITIES

Office:

26, Bishopsgate,
London, E. C.

Branches in India,

Colony,

Kericho,
and

BANK & TRUST

COMPANY

Street, New York 5

BOND

DEPARTMENT

Harrisburg

BOSTON

Allentown

Hawaiian Securities

Prospectus from authorized dealers or
vance, sanders A CO.
Ill

Devonshire Street

-

Dept. Teletype: NY 1-708

SECURITIES

New York

Chicago
Los

Angeles




Mmd JUpmrimtmi

£4,000,000

Capital

CHASE

THE

£2,000,000

Fund

£2,500,000

conducts

every

description of

exchange business

Trusteeships and Executorships
also

CANADIAN

,

BANK

NATIONAL

onm art or new yowc

undertaken

CANADIAN

Tucson Electric

BONDS & STOCKS

Light & Power Co.
COMMON

Direct

Private Wires

Dean Witter & Co.
14 Wall Street,

New York, N. Y.

Members of Principal

Commodity

San Franciseo • Los
Boston

♦

Angeles

•

Honolulu

Chicago

Analysis

DEPARTMENT

Goodbody

&

Co.

ESTABLISHED 1891

Doxruox Securities
Grporatkki '
40

115 broadway

105 w. adams st,

new york

chicago

Exchange Place, New York 5. N. Y.
WHItehall 4-8161

request

York Stock Exchange
Principal Exchanges

Members New
and

111

other

Broadway, N. Y. •

WOrth 4-6000

Teletype NY 1-702-3

upon

IRA HAUPT & CO.

MEMBERS NEW YORK STOCK EXCH.

and Security Exchanges

BOSTON
I

Bank

banking and

Bond

CANADIAN
t

The

Williamsport

Pacific Coast &

OF

OF NEW YORK

Scranton

U—

Wilkes-Barre

Washington, D. C.

Bond Fund

Paid-up
Reserve

Troy

30 BROAD ST., N. Y.

THE NATIONAL CITY BANK

Albany

Burma, Ceylon, Kenya
Kenya, and Aden

Zanzibar

Subscribed Capital

PHILADELPHIA

BOSTON

Bonds

Kenya Colony and Uganda

Chemical
64 Waif

Municipal

NATIONAL BANK

Bankers to the Government in

Established 1927

INVESTMENT

and

Boston

Teletype NY 1-2708

Telephone: Enterprise 1820

Chronicle

The Commercial and, Financial
2

Thursday, January 31, 1952

...

(470)

The

Leading Banks and
Trust Companies
of New York
Comparison
Available

on

they to he regarded,

are

New York Hanseatic

New York

Consolidated

stock
which sells
around $1.50 a share is frowned
upon
by conservative investors
and
advisory services as being
highly specuUsually

Specialists in

1

a

t i

and

v e

something

reason

most

stocki

ing

that

either

York

stock

120

Exchange
Exchange

Stock
Curb

2-7815

and

or

com¬

Allen J.

and have the

500%

Camp Manufacturing

or

perhaps

Dan River Mills

STRADER,TftYLOR&CO.,lnc
Lynchburg, Va.

;

small outlay of cash.

a

of

low-priced

a

opinion is
those ap¬
preciation
possibilities,
which
every investor is looking for, is

stock,

which

sound

and

in

my

have

may

Consolidated

Co.

Products

Rock

currently

common,

TWX LY 77

39

and thereby make
nice profit on

real

a

choice

My

of Va.

price increase 100 to

more,

for himself

Commonwealth Natural Gas

LD

a

stock,

Industries

Life Insurance Co.

some

to

on

investor
day he
low-priced

every

that

which will afford him an
opportunity to buy a lot of shares

American Furniture
Basset! Furniture

$1.45

quoted

bid and offered at $1.55 over-the-

Consolidated Rock Products Co.

leading

a

of

producer

sand,

gravel and crushed rock in South¬

Texas

California,

ern

Engineering

in

used

are

&

Manufacturing

well

Information

and

BUTLER, CANDEE & MOSER
York 5, N. Y.
9-0040

NY 1-1862

reclamations

mixed * concr ete and
merchandising of build¬

ready

ing materials has become an im¬
part

portant

of

„■

Operations
cover

a

of

of

California

Barbara

from

area

County

south and east

extensive

material

Internal
Securities
for

our

for

the

on

in

company

Study

with
owns

capacity of 38,000
additional

York Stock Exchange

Street,

over

and

tures

of

sites

the

IN

Private
to

New

Telephone

period

totaled

of

Capital

1950, Consoli¬

$6,675,592, providing a book value
$2.09.

for the common stock of

annual

The
not

report

available,

yet

pany's

is

1951

the figures
in the accom¬

tabulation

earnings

for

so

shown for that year

panying

the

of

record

com¬

only

are

estimated and may be more or less
than shown.

Consolidated

Since
ucts

and

is

located

in

seems

fitting

some

statistics

Rock Prod¬

California,

herewith
that

recite

to

it

strate¬
oper¬

and five

tons

1950,

was

population

10,586,233,

April

on

gain of

a

3,678,836 or 53.3% in 10 years
against the national increase of
14.5%
in population.
California
ranked

second

1950,

up

the

among

for

bunkers

and

Civilian

from

fifth

in

place

workers

from

increased

Total income of California peo¬

1950

8.4%
was

$18.5 billion in
against $5.6 billion in 1940.

aggregated

excess

of 450 mil¬

nation's

transacted

service

in

the

of

about 2,600. acres—total estimated
are

for

of

in

1950

addition, company owns and
a 4,717-foot conveyor belt

California
nation's

New

of

retail

1876

8.6 billion bar¬

over

from

rels of crude oil have flowed

of

•

exhaustion.

brought
1950.
California

were

and

8.1%

of

is

bined

a

atonbcn Nat'l Assn. of Securities Dealers Ino.

SI Milk St., Boston 9, Mass.
Tele. BS. 142
Enterprise 2904
Enterprise 6800
Kmd Phone to New York Canal 6-141$

1948

1947__

motor

1946

sales.

capital

invested

new

plants

ects

totaled

and

expansion

the

in

industry

by

of increased

because

Rock

factories,

building of new homes,
and

roads

article

the common

20.

Feb.

of
I

Rock

5V2%

situation

in
to

share

Bosch

Conv. Pfd.

Ref.

'

4's—1959

*Prospectus

request

on

Gersteh & Frenkel
Members

150
Tel.

Y.

N.

Security

Dealers

Assn.

New York 7

Broadway
DIgby 9-1550

Tel. NY 1-1932

Bank and

Insurance Stocks

on

as

Bought—Sold—Quoted
Consolidated
a
growth
a
territory that is
set
further records

the years
The

—

Rights

that

is

Co.

Products

NOTE

&

Wisconsin Central

,

believe

destined
over

,

stock, payable March

ahead.

<s4llen & Company
30 Broad St., New

contained

information

California, was taken from
Amer¬
(Basic
California
Facts
About
The
Market
Served by Bank of America.)

a

Phone

HA

2-2600

—

York, N. Y.

.

Tel. NY 1-1017

booklet prepared by the Bank of
under date of Oct". 22, 1951.

ica

DONALD

L. MOFFAT

Assistant Vice

Placer Development,'

President,

Net Income

1962/59

Treasury 2V4S of June 15,

LEAD—ZINC

High

issue which

1.05

0.20

1.20

0.75

1.45

i .00

..

ing reasoning:
Anybody's
choice of

a

1,258,352

676,867

0.22

1.85

1.00

!

842,477

392,517

0.12

2.45

1.00

417,490

76,592

0.02

2.75

0.65

fa¬

security

n e c e

ssarily

must

reflect

past
free

has
to

great
of¬
ficial policy
with
respect
in

mar¬

ELtot

105

3040

n. q. b.
OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX
12-Year Performance of
,

35 Industrial Stocks
BOOKLET

ON

REQUEST

-

reflect

present

and

pros¬

economic

Continued

on page

43

I
i

place during the
That market now is

conditions,
which, in the absence of authori/

SE

taken

year.

pective

SEATTLE
Teletype

the

to the Government securities

ket

1006 SECOND AVENUE

in

very

change
Moffat

John R. Lewis, Inc.

times and

choice is made.

L.

Analysis available on request

invest¬

ment

the

Donald

i

the follow¬

on

A

1.75

is

based

hedged,

Low

*0.25

TUNGSTEN-OIL-GOLD

that provides
an
investor with consolation for
whatever the Government
mar¬
ket
falls
heir
to, I
prefer the
To choose an issue

which

Per Share

Limited

Chicago

C. F. Childs & Co., Inc.,

Stock

0.24

"Estimated.

Common

being pre¬

was

to holders of record

1952.

Light

Rights

Prod¬

Rock

dividend of .05 cents per

15,

&

West Penn Electric

pared word was received that the
directors had declared an initial

Price Range
Earned

758,179

5,913,806

Common

equipped to supply.

ucts is well

this

2M

products

the

need

Consolidated

which

As

other undertak¬

many

which

ings

BS

state

during the past ten years should
mean
more business for Consoli¬

RECORD

14,258,172 r 1,367,456

1945

Kansas City Power &

population of the territory served
by Consolidated Rock Products
Co. and the outstanding develop¬
ments

Teletype

:

Telephone WOrth 4-5000

^

growth in the

tremendous

The

the

0.60

•

Y.

"^American

proj¬

$1,555,000,000 in

1.10

9,449,707

N.

by 945,528.

Cali¬

by

0.08

-

request

on

St., Boston 9, Mass.

7-0425

leading New York

fornia in 1950,

vorite

station

263,993

12,619,441

_

State
CA.

There were 4,557,893
vehicles registered in Cali¬

the

643,453

't

148
Tel.

industry.

mate¬
and 9.2% of

904,773

,11,587,792

Information

production

minerals com¬
billion-dollar-a-year

and

1,365.203

15,060.744

1949

THERMO KINS RY.

no

of

classes

all

of

;

,

MAINE CENTRAL R. R.

sign
8,277 new wells
in between 1946
with

California oil wells,

building

hardware

*$15,500,000 *$1,500,000 *$763,000

1950__—

I. B. Maguire & Co., Inc.

Amortization

V.

greater than the total number of
dwelling units existing in any one
of 38 other states.

trade

California

produced

sales

and

in

Net Before

Net Sales

branch offices

J

greater than the combined increase
of
New
York
and
Texas
and

>

1951

our

every

conditions
EARNINGS

Direct wires to

units between 1940
1,268,271. This was

was

fornia manufacturing industries in

.

NY 1-1557

La.-Birmingham, Ala.
Mobile, Ala.

million

$92

construction

new

dwelling

and

York 4, N. Y.

HAnover 2-0700

cluding $1,620,500,000 of new resi¬
dential building. The net increase

states

1940, and from 21st place in 1900,

ple

Curb Exchange

herein, about

The state's

in

Stock Exchange

York

$3,995 million in 1947.

since 1941. The state's total
1950
was
$2,847,000,000, in¬

year

regarding

state.

1,

New

manufacture in

from

grew

to

California has led the nation in
value

totaled

surplus

and

state
1899

dated

:

$2,541,712, including cash
of $818,410 against current liabili¬
ties of $1,679,848.

operates

CAnal 6-1613




and

o n

assets of

building

23

York

Pertlaad, Me.
Hartford, Conn.

1 et i

e p

Rock Products had current

dated

Dcpr., Depl. &

J«L HUbbard 2-5500

$1,400,000.

As of the end

rials

In

UTILITY STOCKS
Direct

about

$4,144,151.

owns about 2,250
sand, .gravel and rock
deposits and controls under lease

reserves

MARKETS

a
cash gain
these expendi¬

leaving
above

seven-year

about

of

lion tons.

TRADING

$2,944,000

$6,175,000,
was
through earnings
of approximately

Depreciation* d

Company also

acres

WHitehall 4-0418

ACTIVE

from

5%

property amortization charges for

storage yards.

New York 4, N. Y.

in

Since

bearing

ates eight sand and gravel pro¬
2,574,000
to
4,351,000
between
ducing plants with a combined
April, 1940 and April, 1951.
hourly capacity of 2,500 tons, 14

OPPENHEIMER & CO.
25 Broad

ac¬

items, amounting to

years

$7,655,751,

Southern

complete

service,

reduced

these

for

provides the most

facilities

1944 to Dec. 31,

debt

Funded

approximately
made
possible

distributing bunkers with storage

Members New

Dec. .31,

for these two

gically located branch yards.
The

Ask

*

California

{

reduced

The total amount of money used

San Bernadino.

to

Consolidated

\

purposes.

were

(estimated) at the end
bearing 3M>% interest.
(2) Expended for rehabilitation,
replacements and improvements a
total' of approximately $4,175,847.

north to San Diego County on the

german

corporate

bonds

,,

the
company
substantial part of the

Southern
Santa

business

the

the company.

BOwling Green

Teletype

as

projects.
also sells cement

company

since 1949

other

3-5%

is

1951,

of

and

high¬

buildings,

and

irrigation,

as

The

44 Will St., New

railroads,

and flood control

Request

on

products

construction

of

streets

ways,

whose

the

maintenance

50%

and

to $900,000

counter.

is

are

loan

the

old

interest

hope of

latch

net

ci

$100,000
of

terms
earn ngs
%.r
«*'
to be applied

1951, Consolidated Rock has
complished the following:

McNeal

(1)

speculator

can

Under the

for

the

Since

fold up.

Trading Interest In

the
and

Co.

perhaps

It is the

1951

with cash

$1,250,000, late in 1950, no dividends
could be paid on the common stock. Thus
1951
was
the first year in wiiich divi¬
dends could have been paid on the com¬
mon
stock of Consolidated Rock Products

about ready to

or

the

to

to

panies that are
in bad
shape
financially

BROADWAY, NEW YORK 5
Tel. REctor

of

3Vj>%.

50%

of

reduction

Until

New York

New Orleans,

Value added by

&
31,

reduced

1st,

retired

was

at

loan

available

new

promotions

Members

York

this

to

this figure are

New

interest

of

selling around

McpONNELL&rO.

Dec.

•

for this

is

May

con¬

tixed

of

been

had

on

1944

3-5s
As

1960.

five-year bank loan of $1,000,000 bear¬

minimum

Since 1917

Hew

and

balance

entire

real

idea

31,

Mortgage

due

bonds

these

$1,055,500

to

a

The

bonds

Dec.

on

First

ot

Members
Members

(1945-1950) cover¬

postwar years

ing 8,624 projects.

debt

"Funded
sisted

Steiner, Rouse & Col
25 Broad St., New

3,196,091 shs.

tEstimatcd.

income

(Page 2)

t$900,000

3,196,091 shs.

par)

1950

avoid.

Rights & Scrip

($1

&

Childs

C. F.

Inc., Chicago.

Co.,

'"SI

*Y1

Assistant

Moffat,

stk.

Common

a

L.

Vice-President,

TlPf»

'di

New York City.

Bought—Sold—Quoted

—Donald

"Funded debt $2,944,000

York 5

Teletype NY 1-583

BArclay 7-5660

Co.

Products

Rock

T1

Louisiana Securities

Treasury 2J4s of June 15, 1962/59

CAPITALIZATION
rw

Established. 1920

120 Broadway, New

City, N. Y.

•

Price,

(Page 2)

self-dumping type.

Partner, Price, McNeal & Co.,

Corporation

& Co.,

McNeal

automatic

and 200 motor trucks of

ALLEN J. McNEAL

'S

Allen J. McNeal, Partner,

intended to he, nor
offer to sell the securities discussed.)

as an

Selections

Consolidated Rock Products Co.—

particular security.

(The articles contained in this forum are not

request

Alabau" •' A

and

Participants

Their

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

participate and give their reasons for favoring a

Quarterly

Consecutive

79th

Forum

A continuous forum in which, each
in the investment

Week's

This

Security I Like Best

National Quotation Bureau
Inconmrated

46 Front Street

New Yerk 4, N. V,

Volume 175

Number 5086

.

'. The Commercial and Financial

.

Chronicle

(471)

The Outlook Foi

INDEX

Electric Utilities in 1952

Our

~

>

factors in utility situation and predicts heavy

vv/.-'v

.^electric companies.

V

The Outlook for Electric Utilities in 1952—Theron W. Locke__

3

Distilled

4

Waters—Ira

U.

Cobleigh

I../....:....:

What Our Monetary Policy

Should Be—Carrol M. Shanks

The

the

his

Street

Wall

99

to

He'll

letes.

>

walk

Business

Outlook

for

Months

v.

Zelomek

Securities

WALL STREET,

99

9

W.

1952—A.

Telephone:

10

The Banker Looks at Business—F.

11

Dept.

NEW

YORK

WHitehall 4-6551

Raymond Peterson

NATIONAL
Investments in

obso-

10

Marriages—Roger W. Babson____-_____^_

Life Insurance

his

7

Ahead

—Martin R. Gainsbrugh_
The Outlook for

sell

to

thisaway counting

cash!

Obsolete

/•-/.''•

'■

"CALLAWAY INI THATAWAY"
Cover

Hoover

financing by,

new

;

Cover

Foreign and Military Policies Are Unrealistic

—Herbert

electric utility industry, Mr. Locke lists
as
factors affecting their operations and market securities:
(1) regulation; (2) money rates, and (3) dilution of common
stock earnings through new financing. Holds utility earnings
in current year, assuming no increase in taxes, will be good,
with average increase in gross of 10% and part of this raising
available net income. Looks for some utility rate increases
in 1952, and rising market value of their shares, but warns
of competitive threat of public power expansion.
Foresees
higher interest rates and higher operating costs as adverse

;

Page

..—William A. Lyon___

Company

In viewing outlook for

j

'

AND COMPANY

Members, New York Stock Exchange

•

Articles and News

Bank Earnings, Book Values and "Windfall Profit" Mergers

By THERON W. LOCKE*
Public Utility Analyst, Goodbody &

-1

licHitnsTfin

>■*
*

3

1951—James J.

12

0'Lear,y_

ALFALFA

.

Dangers Inherent in Government Ownership of Reserve Banks

.yj^Fojfr 1D52/; I expect;to :see gains; operating .companies,_
10% to 2Q% on the average in exemption provision was. a'TUfe-^i-yJphn J. Rovve
...
___________________
13

f of

'

Continental Sulphur

Policy Permitting Common Stock Investment
'Chester J.

14

Dodge

•sythai-were'evi-factor

that has developed since the |/:;^|f Ou^Depositors Only Knew"—Orval W. Adams.
.•.fdent .aJ eOuple 'Korean: invasion,$ rand. iwas >^the ;r
1
/•';-.•••
//j ■/•

14
•;

•

/A/:' 'v

Gold

|

yito:

give;: you

V

** oiassen__

Korean crisis,you,,will recallthat

-stocrk^

J■■A'am/y ialsd i^eaf

i

_

______

Standard

u

__A-j_-_-__________________r:.____

L^of1 undue -pp- decline/' All. others did, too, :but
:.y ;
_
.
.. ,o.- ''hiAsSoiwi• the utilities rwere .unduly hit/bev,
TKfc Economic Paradox—G. Rowland Collins.__•
.timism,
^u t,, ^use mogt people jumped t0 the
-'
'
.:
;.fhn t h e- other conciusionwe would have an ex--"^11 in Inflation—How Long?—Jules Backman___;
s

[;■

unduly

•.being
Theron W. Locke
-

r

;

in could

justified

.

^Ral^riW^

-

a n

have reduced

Ve had U
earnings.very

the

*

\T

*..

-

all-out

.•-/

Sulphur

Wyoming Gulf Sulphur

- -,:

19
21

J. F. Reilly & Co.

*

•

:E. Makes No Change in Trading Hours.

f"Continued. Decline in Business Pace Revealed in Survey

..Incorporated

Broadway, New York 6

61

Teletype NY 1-3370

BO 9-5133

v. Bairing-va n tax on
utilities in, 1941-42 'was
the outlook for the very severe.
I don't remember
Business and Finance Speaks After the Turn of the Year (More
.electric utility industry this year the figures,*, but
I think about V ,
Statements From Business Executives on 1952 Prospects)..
i& dependent on
eight out of
\y0uld Clarify Rights of Savings and Loan Associations to
factors: (1) Regulation, (2/Money had common stock in the hands of <•'
Rranch Offices
19
frates, and (3) Dilution of common the public in 1941 cut their com-,.
,
____
-earnings -through new financing. m0n divMerid vvithin two. yeafs'j;:' Truman's Blunders Created Russian Menace, Says Sen. Taft__ 21
There are, however, a number of Th4t s0. many companies ,had,lo;,.A
strange Mixture!'(Boxed).....:
1
22
other factors that are to be con- cut
dividends was
due
to
the :/.,.,.
>•.
sidered. I made a list of favorable severity of the excess profits tax
and
unfavorable factors so that and the low EPT base shown by,,
Regular Features

v/,i> v

Pan American

18

;_______

/ ""<***'«on Treasury Bonds!_Aubrey G. Lanston.I......

substantially^ .■,/]%Y/S.
+

16

_

Forces Shaping the Business Future—Elliott V. Bell_________ 17

S one0" the* 1^'^'a#ff

Sulphur

15

Golden weiser.

•Harold E. Stassen

Mexican Gulf

'•v-

<■•••

Direct Wires

war,

Philadelphia

and

Los Angeles

<.upMej':;^ich

.

.

•

....

.

ASSOCIATED

•"

t

consider both sides.

^we could

m0st utilities, and it was

-

with that/

Ae We

See It

(Editorial).-.

DEVELOPMENT

Cover

7; 'Among the favorable factors— experience in mind that:holders ;
Bank and Insurance Stocks_____^.
those that are going to aid utilities of utility stocks did some quick ;
this year-—the most important is figuring after the Korean invasion
Business Man's Book Shelf
that taxes
may
have' reached a and decided that if that sort of a
Canadian
Securities
plateauand may not again be tax were applied again we would
increased sharply this year.
Jn have some very disastrous result^;.,. Coming Events in Investment Field
:
the past two or three years this earmngswise
and marketwise.
- Dealer-Broker Investment Recommendations..country has had extremely sharp Therefore, utility stocks went
■-•tax
increases :and
most
of * the down precipitously.
Several
Einzig—"No U. S. Gold for Britain"_______v__
weakness in the market prices of months
of uncertainty followed
From Washington Ahead of the News^—Carlisle Bargeron
utility stocks has been due to fears before Congress granted the EPT >~
-cthat the increases in taxes would relief provision in December, 1950^.' Indications of Current Business Activity
i
be so great that dividends might But since then utility stocks have
Mutual Funds
have to be cut.
It is only by had a very considerable recovery,
News About Banks and Bankers/.
virtue, of the great work done by and this year most people are
this
industry
in explaining
to convinced that Congress will not
NSTA Notes
Congress the importance of utility raise taxes, and if they don't,
Observations—A.
Wilfred May
earnings being maintained and utility earnings are liable to be
utility
dividends
being
main- pretty good because this will be,
Our Reporter's Report..
____^

29

and

RESEARCH

22

CORPORATION

43
8

•

23

14

Singer, Bean

37

the /first year in at least three
years that the utilities have been
profits tax law allowing electric able to carry any reasonable perand gas operating utility compa- centage of the increase in gross
inies to earn 6% on their capitali- revenues through to the common,
that

was

the

special

included

_/ 31

5

excess

Our

Reporter

8
35

Governments

on

Air Products

•

zation.
The

:

"

<

'.My estimate is that gross rev-

telephone companies were

given

an

special

pipelines

of

exemption

provision

which

was

7%
made

added

had

and
for
new

| capacity, or increased the capacity
;

of their lines.

But from the stand-

| pointy of the electric and the gas
*An

address

Mr. Locke at

by

a

meet¬

rise 10% on the average this year.
Some companies
will do better than that, particularly where aided by rate in-

enues may

creases, but most

be able to show a

gross

of them should

10% increase in

* In 1950 and 1951, the in¬
in

creases

gross

revenues

Prospective

Security

Public Utility
Railroad

27

25

Corner...

2

I Like Best..'.

The State of Trade and

Industry

—

Continued,

on

offerings of

Hoving Corp.
Twice

U.

S.

1

Weekly

CHRONICLE
Patent

Drapers'

land,

and

COMMERCIAL

Reg.

c/o

WILLIAM

B.

DANA

1952 by William
Company

Copyright

Office

COMPANY,

preferred STOCKS

Place,

WILLIAM

Spencer Trask & Co.
York

Stock

25 Broad Street,
HAnover

Exchange

New York 4

Members New

Hubbard
Teletype—NY 1-5

Albany

-

Chicago

-




York Curb Exchange

50 Congress Street, Boston 8

2-4300

Glens Palls

-

second-class

Stromberg-Carlson

Dana

matter

Febru¬

Whitin Machine

post office at New
the Act of March 8,

the

at

Y.,

B.

Eng¬

under

Works

1879.

Subscription

Possessions,

SEIBERT, President

1952y

Rates

Thursday I general news and advertlsing issue)
and every Monday (com¬

Issue — market quotation
corporation news, bank clearings,
and city news, etc.).
statistical

Pan-American

tJnion,

Canada,,

Other

Offices:

Chicago 3,

111.

135

South

La

Salle

St.,

(Telephone: STate 2-0613);

of

Other

,

Bank

$30.00

records,

Worcester

Territories

Countries,

and
per

•

rate

$45.00

$52.00

per

$48.00
per

year;

per

Quotation

of

of

the

—

Monthly,

made

in

New

York

funds.

i

'

"Tfj;

\

;

THEODORE YOUNG &
40

In

exchange, remittances for for¬

eign subscriptions and advertisements must
be

'

.

fluctuations

■

Bought—Sold—Quoted

in

year.

year.

Record

■-

of

Publication#

account

■

8.

year..(Foreign postage extra.)

Note—On

the

States,
U.
and Members

United

in

Dominion
Other

Every

state
,,

DANA

Subscriptions

Editor & Publisher

Thursday, January 31,

plete

2-8200

',

Schenectady

as

1942,

N.

C.,

,

HERBERT D. SEIBERT,

New

25,

York,

New York 7, N. Y.
REclor 2-9570 to 9576

Park

25

Members

ary

Publishers

E.

Gardens, London,
Edwards & Smith.

Reentered

High Grade Public Utility and Industrial

44

*

26

FINANCIAL

»

Di-Noc

34

were

page

Dictograph

5

— -.

(Walter Whyte Says).—;

Tomorrow's Markets

Collins Radio

38

Securities Now in Registration...-.

The Security

Baker-Raulang

24

Salesman's

Securities

The

interested in

40

—.__a

Securities

Published

are

Offerings.,

Securities

Washington and You—

of
the
Association
cf Customer's
Brokers, New York City, Jan. 22, 1952.

ing

We

PL, N. Y. 5

Teletype NY 1-1825 & NY 1-1826

exemp-

the

in

40 Exchange

HA-2-0270

20

___.

tained,

MACKIE, Inc.

&

30

—

;

! tion

■'

44

Exchange Place, New-York

WHitehall 4-2250

CO.

5,1I«YS

Teletype NY 1-3231

4

The Commercial and Financial Chronicle

(472)

balance

Distilled Waters
f

»,

.

**Expanding Your Income"

Opportunity is here given to drink in some current facts about
liquor stocks,, and bonded inventories.

This

of

custom

order

their plants to the alback cohol requirements of the military,

imbibing

alco-

devoting

hol-laden potions stems way
to the dawn of recorded history.
the

In

Stone

Age,

lack

we

any

of preference

brings us up to the post-

period when the liquor shares
the Stock Exchange were mai-

tion that Peter

war

Piltdown guz¬

on

zled

trading feverishly,
and reaching price levels 20% to
SO/o
above
today s
quotations.

rye

the

"rocks",

but
k

ket

on

do

we

Came

that

n o w

and

Noah managed
to

get himself,

as

well

well
O

we

too

indolent
build

settled

1934

to

still,

a

for

Irs

a

wine,
right drinking partner.
lllvUfiu
Racing
briskly
through
the
aeons,
b,i to our own
time*
one of the, earliest
wments of

to

Dartmouth

College, is; I

recorded in
recoiaeajn

song as
as
song

about

1919-1933
i»oo
there
uicrc
was
w
an

ficial

lull,

fire-water

(and

scene

noses)1

occasionally

on

distilling"

in-

dvnamic

a
a

ahead"

ance

to

industry

1936.

No-

that fast
(19ci6 consumption was about 70
million gallons) and, since the aim
was
to develop a stock of aged
whisky, by the 1936 year-end, 370
millions of giggle water were on
hand; and the industry was ready
to, and did, enter its first price
it

drink

could

war, in 1937.
influence on

This had

production rate

down,
had

and

some

hand.
more

point

by
500

The

a

sobering

of

-were

consumption

than

hilt

last Novemoer,

a

retail

—

T

it

more

out more

rise

of 25

for

cents

a

more

such

brands

/

"

field

have

and

pros¬

surely

enterprise

an

SH

current

dividend

Jfal"eoC°f $31.03
ea?h ef the
8,769,350- shares outstanding. Long^rm dekt was about $126 million.
Th? record shows for 14 years
uninterrupted dividend declarations, handsomely covered each
year by net earnings; and an imPfessive plow-back of revenue so

day

reasonably
there are, in

and

sistently

effective

the

u

1951.

victims

now

have

eon-

held

the

not

ine company is

re¬

this

I.

W.

Harper,

Coronet

.

of

this

.

,

to

Here

back.

we

see

a

Earnings

1951

market

down; and there
logic in suggesting
taxes will go

The total

revenue

from this

government

to

This

by

amendment

as

sit back in

you

your easy

lost

In

G.

Keith

the

S
all

or

the

majority shares

in sound So.Calif.firms

wanted
Myron

Harry and
west

eighth

LOS ANGELES

Kunim

st«eet

14,CALIFORNIA

•

New

SENECA OIL COMPANY
CLASS "A"
A

York

Stock

Exchange,

at its monthly policy meet¬
ing Jan. 24 decided to make no

solid bal-

Board

over

For

the

% Yield

the past year.

SECURITIES CO.
Powers

V

Teletype

:

1

BO

:

^

87

■•/

eight months of each year,
open for trading

from

10:00

6.8

the first five working days of each

Schenley Industries

5.10

2.00

31

6.2

week,

Hiram

7.23

4.00

49

8.1

from

*3.20

2.00

32

6.1

with
10:00

the

p.m.

Saturday

a

until

a.m.

four

3:00

to

a.m.

Since 1932

Specialists in

session

12:00

vacation

for

noon.

months

VIRGINIA—WEST VIRGINIA

of

NORTH and SOUTH

June,

July, August and Septem¬
ber, however, there is NO trading
on Saturdays.

Trading Market

Bldg., Rochester 14, N. Y.

Telephone LO 3190

Exchange is

About

In

on request

GENESEE VALLEY

or Satur¬

operations.
The question, a
many-faceted one, has been the
subject of intensive study by the

paying growth
in Crude Oil

Information

ernors,

change in trading hours

dividend

opportunity

Funston, President of

announced that the Board of Gov¬

CAROLINA
MUNICIPAL BONDS

■F. W.-

said, "pointed out that the

Stock Exchange is a national serv¬

ice

that it should af¬

institution;
access

to

convenient

most

CRAIGIE&CO,

its facilities to the

maximum number of people at the

%

The amendment

by 700 to 571. One ballot was

403

Change
Trading Hours

ford

.

9,

blank.

ing to the present schedule," Mr.

-»v.

-

dis¬

NYSE Makes No

Funston

.

July

1,272

"Governors who advocated hold¬

Columbia

rejected

on

that

25

Ictive

was

membership

the

liquid savings!

■"Estimated.

J:

was necessary

deter¬

specific
because of
a

unusual circumstances.

source

Price

National Distillers

on

inflation.

$1.70

Walker

Saturday

Governors

opening

recorded.

$4.93

Seagram

of

that

—were

the

as

water shares, at
today's prices, may be a not un¬
worthy or unrewarding outlet for,
you'll pardon the expression, your

mar-

if public
alcoholic

,

Board

tax limit has been overshot.

ance sheet with some $3(50 million
jn current assets, and fine treatment of stockholders via both
Dividends

pro¬

votes—the most ever
the Exchange membership

day

again

the

mined

country—all because the practical

Brandy,

earnings
lighter

to

vide that the Exchange NOT open
for business on Saturdays unless

1951;

falling; and hundreds of stills
have
cropped up all over the

Cresta Blanca and Roma wines,
some lines of gin and Blatz beer,
Also imports Dewar's Scotch. It's
well diversified, and better
eJ^PPed
mop distillers to
continue
veers

membership for

amendment

cast by

of

selected distilled
a

the

to
an

market

is

fare.«

Companies

enough
..

Distillers

pro¬

distiller too!

ket performer when in the mood,
selling as high as 80 in 1946. Almost as large as Distillers-Seagram, it offers to the arid palates
of America1, Schenley Reserve,
Three Feathers, Golden Wedding,

1951 Fiscal Year

duction; the principal, distilleries

a

good

COMPANY—

far

for

Schenley has been quite

submit

balloting

practically

range

Federal liquor

So

news

Late last May a petition signed
by 329 members of the Exchange

them

higher.

this enterprise as a leader in its
fl<rld> and lts. common shares as
and

of

good

seems

recommend

yield-Wise,

stock

only.

Quite possibly the bad news about
high taxes and slipping sales may

,.c?

nnoSibiiitiPc fnr significant

April

on

tobaccos; and no competent ana¬
lysts would contend that they are

no

..

did

narrow

as

opinion,

to

they

most

or Dismieis beagram recommena
attractive

the

in

split
Governors decided,

required the Board of Governors

Traditionally volatile as a
have oscillated in al¬

lark,

merchandising that

Distillers-Seagram

that they

nothing

^stature.

£ brands and
name _9ra"as' ana

is

all

on
•

this

of

as

on

is

common

llons

warding;

1950—

>

-

view

in

closing

as

Schenley Industries should ex¬
pand its earnings from so lush a

f

non-member

practice of closing on Saturdays
during the four summer months

this

The

of

company

fabulously

field.

favor

Saturdays.
the

of

business

the

smartly managed

Crown, Seagrams 5 Crown, Calvert^ Carstairs, Four Roses and
Lorc}
Calvert.
Total
productive
capacity per day is roughly 290,00{)

a

in

voted

members—who

651

42%

12, 1951, to make no change in the

stressed,

in

pered

Seagrams

as

as

in

Others

widely

7

taste

g ouna- J-jets sel aown to issues.
The leading companies have fine

significant from the stand¬
of

acjVertised

at: the new altitude of tax- 1(?ng ieini p"1*

Well

slowed
Harbor we
gallons on

years

November

last

Leading

was

Pearl
million

war

effects

attractive.

industry-wide inventory program.
The

lhp

thing is to make the price

overly ambitious

an

a

fifth of rye; a nickel a drink was
tacked on at a lot of bars. Customers have gotten a bit rebellious. Some buy pints instead of
fifths, others have switched to
wine or beer. The result—another
price war, another clash for cash,
with 12% to 15% slashes not uncommon. With a 900 million galIon inventory and sales lagging,
something had to be done; and in
our market economy that some-

paced by a

was

about 240 million in

body

including

SH

while

only;

produced
commission

of spirits

recent years become an
important producer of penicillin,
streptomycin and other drugs.

produces
leading

policy of closing on Saturdays
the four summer months

during

purveyor

Federal tax rise from $9 to $10.50 f-anacuan oils, inats good news chair making like a man of
a gallon last November resulted
*alJf?ads'J??**}™1?}}1 be good tinction, you may well reflect

financially
the

whiskies

been

has,

of

Thursday, January 31, 1952

..

In

breadth

producer and

a g r a m s,

many

the

While

the

impeUe<Lprices. For example the

and many eager new
viewed

space

of

importantly to consumer resist-

powerful units,
entries who
as a "natural"
for
king-size
expansion,
Whisky production of about 100
million gallons for 1934 surged

few

on

beauty last October; and we

aneact

in

start

new

as

the

long-term debt.

Before

importantly, due first to "buying

dustry.
The

.

are still reeling ine eiiecis or it.
Liquor sales, both of the1 bar and

ou?busincSS? Sand SLnf

noses

bite

tax

fpp.inc

tion, which some of you may recall' Then there blossomed again,
cial

total

the

....

ofpioduc-

From

on

meek

a

this, there are now many areas

was a

lum ,
read

r rum

in

was

was

'Rebellion." package variety, have fallen off

"Whisky

the

In

preceded by $150 million in

mon

own

has

merchandises

an(j

^h^Of
thesea new
taxspiee.
h«ere
was usually
Duymg
ineie

believe,

has

bov

school

tax

It

single gallon reaches $12

"five
live hundred

New. England

of

everv

the Federal

Where

early*

gallons

dividends.

stock

■As of July 1, 1951, total balance picture, many separate horizons
sheet assets were $447 million, for interesting growth.
Perhaps the controlling reason
with a beautiful net working capifrom reaching that
of $290 million; and a J3?? for my dealing in distilleries to¬

$4 in 1942,
$6 in 1943 and on Nov. 1, 1951,
became $10.50. Adding state taxes

and the

and

and,

delineation

some

Distillers C o r p.-S e
through
subsidiaries,

of the leading

some

$1.10 per gallon.

Cobleigh

U.

of

jug

of leveling out,
almost 20 years

kept them
elegant plane is continuous bedevilment by taxes. Way back in

Tlentmaker,

perhaps

view

can

has

the

r;

years

after

and

companies'
shares
as
having almost attained an investment status.
The one thing that

loaded!
a

m

five

now,

distilling

the

as

pretty

Ark,

darlings,

m,y

will be projected,

.

That

in

given

favorable features of the first two

R,

documenta-

is

list

allows,
The

cash

pretty
solid
have been

a

June,
1944, common was split,
generous in dividend distribution. 3-for-2; in August, 1945, 4-for-3;
Salient figures for the top four in March, 1946, 10-for-7, and in
are
shown in the accompanying August, 1950, 5-for-4.
Right now
there are 4,361,976 shares of com¬
tabulation. \

By IRA U. COBLEIGH
Author of

sheets,

record of earnings, and

.

RICHMOND, VIRGINIA

and that
the present schedule meets public
requirements better than others at

Machinery & Engineering
"

this

»

Bell System Teletype: RH"83~4c 84

hours,

Telephone 3-9137"

time.

"One

of
the
problems again
brought to the attention of the
Exchange was the hardship which
a

■

:

3:30

closing

afternoon

Common Stock

would

exert

necessitate

*

The

.

■

.

of
.

or

JACOB RUPPERT

their

question

less

for

about

decade.

a

W. R. GRACE CO.

It

DREWRYS, U. S. A., LTD:
GENERAL CRUDE OIL

became acute last year.

y

Kobb^ &

uV.'-U*

.W 'f/'AY.

On

Company

BARCLAY 7-2663




A. T. & T. Teletype

Liberty Street, New York 5, N. Y,

a

committee

appointed to set a date .for
the membership on the
question of year-round Saturday

Umbers Rational Association of Securities Dealers, Inc.

55

1951,

polling

-

TELEPHONE

15,

was

INCORPORATED
.

Feb.

(Pfd.)

HAILE MINES

*

♦

Saturday

and

request

<

of trading hours
closing has been
before the Stock Exchange more

Report on Request

on

possibly

curtailment

stock tables."

GOBEL, INC.

Circular

•

on

publishing final

papers

prices and which would
r

ADOLPH

New

York

1-277

closings.
were:

Of

The results of that poll
the 1,098 members who

voted, 447—who produced 58% of
,;non.-member commission business,

during

1950—favored

continuing

StuyvesantF. Morris ir.&C»,
Members Nat'I Ass'n of

40

Security Dealers,
tors,

InJ.

Exchange Place, Mew York 5

^^/Telephone: WHiteball 4-7290
•;

----

Teletype:

NY f-341 fr

"

'Volume-175

Number 5086

.

.

The Commercial and Financial Chronicle

.

(473)

5

Continued Decline
Steel

The

..

.

:

Production

Electric Output

.

In Business Pace

,'

Carloadings
Retail

State of Trade

Revealed in Survey

Commodity Price Index
Food

and

Trade

Auto

Industry

Index

Price

Business

Production

Business

Failures

practically no change in total industrial production
compared with that of the previous period. How¬

A composite

large measure to the defense effort, layoffs continued to
some
sections as material scarcities and inadequate

Association

to

2,077,040 tons for the week, or 108,537,670 tons
Steel inventories

are

C.

a year. -

growing rapidly, "The Iron Age," national

W i

trade.

permitted inventory limits, while others are still in very short
supply. The result is that very few consumers have well-balanced

dustrial activ¬
no

question that

consumers are

A few months ago

that

notes

cold-rolled

sheets

strip,

and

chrome

first indication of

hot-topped quality steels are still very tight.

movement,

Another

strength noted in previous months.
Inventories are lower, and becom¬

sign

of

a

more

market, this trade paper

balanced

producers

auto

brushes

having

are

This results from

second

quarter, "The Iron Age" declares.

with

regions
are
slow to move into defense
boom areas.
Buying policy for
industrial purchasing is pointing
to
the
mid-range of "hand-to-

unexpected cutbacks announced for the

Profitwise, lower production volume of auto

and appliance

companies is being at least partly offset by lower steel costs.
Formerly it was necessary to resort to expensive conversion deals
to get a large part of their cold-rolled sheets.
Now they can
usually buy all they are permitted to use close to home. In some
cases the saving amounts to $75 a ton or more.
However, con¬
cludes "The Iron Age," for many manufacturers, copper and
aluminum are greater limiting factors than steel.
Realizing this,
steel consumers are no longer reflecting the procurement urgency
of recent months.
;
t' !'■

mouth" to 90 days.

strike, troubles of getting into production on 1952 models
plant closing took their toll.- -"Ward's" said auto
,* makers are producing at an annual rate of 3,250,000 cars, while

Steel Output

•«. > >

.

<
v

note

caution

is

evident

in

new

below the
civilian
Much of

and will not hit

production lines for several
Many other defense or¬
ders ard for small quantities, with
extended delivery schedules. Un¬
less there is a worsening in the
international situation, purchasing

months.

,

i;

New

steel
some

markets

as

products,

signs

hot-wartime production victory contained
"Chronicles of America" volumes distributed

last six new

in the

Yale, is written by an economic historian who served in
Washington as mobilization specialist for "Time" and "Fortune."
Despite its foreboding sub-title, "A Chronicle of Economic Mobil¬
by

ization in World War

light flat-rolled items and specialties, according to "Steel,"

the

weekly magazine of metalworking.

Buying is less frenzied

at both mill and warehouse levels and distributors' stocks of some

Continued

>

,

from

on page

36

ality.
Exciting

a matter of record only,
shares have been sold.

all of these

as
*

Outstandingly able to write an "economics inside" story, Mr.
the Washington bureaucrats' feud¬
ing and squabbling; turning his searchlight pitilessly and sophiscatedly on the aims, maneuverings, and personal foibles of Roose¬
velt, Hopkins, MacArthur, Marshall, Stimson, Nelson, Knudsen,
Baruch, Henderson,'Frankfurter, Douglas, Wallace, Byrnes, Stettinious, Pritchard, Nathan, et al.
In the face of the backstage
political shenanigans played by all from ; Roosevelt down, . our
eventual production achievements seem all the more miraculous.
sagely says: "James Forrestal was a
in Roosevelt's eyes made him safe.
Forrestal had been born a Catholic but had left the Church. This
on
both counts insured the risk.
On the other hand, he was a
Of Forrestal the author

Wall

Street

generation Dutchess County Democrat,

second
seem

Value

Ten

Roosevelt Paradoxes

a

order

backlogs

his

Roosevelt was vindictive,
on

With
man

the

lovers

he

agrees

with Lincolnesque

Wc

are

a

are

items.

chasing

Share)

share

few

than

obtained

from

the undersigned

Street, Netv York 5, N. Y.

Telephone DIgby 9-3430

keen

;

Stw Ytrk Stuk Kxcha.n[i

and Ntw Ytrk Curb Exthan^t

as a

GEORGE R. COOKSEY, JR.

immediate
has retired

a* a

general partner of this firm

in the next

they

estimate

flation

has—temporarily, at least

—been

spent.

John E. Miller & Co.
*' '♦

.

p•

'

MEMBERS)

''

P •'«»»!*) z' I
Stock

25 BROAD STREET

'•

Niiv

j

i

•

'
York
Sew York Curb

—■

sharply
month.
Many

this
Continued

again

on

Exchange
Excha

NEW YORK 4, NEW

Inventories

page

YORK

V

HAno ver 2-6543

Inventories are reported
down

that

many
Some materials

increases

and

announce

General Partner of this firm

In the opinion of pur¬
agents, there are more
pointing to price de¬

months;

PETER MORGAN & CO.




Continued

has been admitted

break¬
a

pleased to

Memhtr •/

to

•

31 Nassau

politician of on page 12

stature, the most effective

Mr. Victor Verace

that much of the force behind in¬
be

welcher

the world's worst administrator:
rthat the late President .was a great
:

shipment.

STOCK

Cents

high

price concessions for

clines

may

he was devious, untruthful, a

promises, and that he was

supply position are open

in easier
to

and

creating
market
for

points

competitive"

Corporation

Price $1.00 per

Copies of the Prospectus

»-

paradoxical reaction to FDR, Mr Janeway seems to
reveal his own personality as even more widely split than was
his hero's.
With the Roosevelt haters Mr.- Janeway .agrees that
In

through, and there have
few
rollbacks.
Falling

been

elements
j

which made him
. >
J

Forrestal, on his part, was intrigued.

intriguing.

men¬

continue

adjustments

fabricated

(Par

This

banker.

Amendment

Capehart

tained.

even

400,000 Shares

(

COMMON

Story

Janeway makes truly exciting

main¬

tioned then is barely being

■,

-

"Economics Inside"

;

.

,

An

material

strength

The

December.

trickle

This advertisement appears as

Gulf Sulphur

confusion over Mr. Roosevelt's person¬

and

absorption

obvious

,

,

Yesterday" appeal

who has lived at adult age through those days; partly
the liberal admixture of politics; and oartlv from the author's

for anyone

prices in January, according to the
survey, is a
continuation of the
sidewise
movement reported
in

price

NEW ISSUE

II," the book makes truly exciting reading.

partly from the overall "Only

This stems

Commodity Prices.

.

The trend of industrial

notably

the

.

$5.).

University Press.

Yale

Ifaven.

This history of our

,

agents do not look for a reversal
of the over-all industrial down¬

<

melange's back-drop, namely
the nation's economic mobilization during the Second World War,
can
be both intriguing and constructive, particularly from the
perspective of the intervening decade. And it has been made so
in a new volume from the capable and authoritative pen of Eliot
Janeway ("The Struggle for Survival," by Eliot Janeway, 382 pp«

trend in the next few months.

the

multiply of easing supply conditions in

...»=•

Wilfred May

A.

Re-examination of this economic

•

defense business is still in

the paper stage,

Scheduled to Show Further Fractional Gain

of

the over-all produc¬

placed, but they are far
offsetting
dropoff
of
orders and production.
the

This Week
A

according to
still does not

picture. More military pro¬
duction is recorded for the month
and more new orders have been

A

the yearly rate at this time last year was 6,500,000.

survey,

tion

declined 6%
51% under the like 195} period, according to "Ward's Automotive
Reports."
v
-:jX
V.S.
-f'V • •'.<•. •. -V:
Packard's

NAPA

bulk large in

States produc¬
below the previous week and close to '.

cars

business,

Defense

the

In the automotive industry last week United

tion of

out of work in some

men

inventory

CMP

Skilled

plants.

production

vilian

of the softest areas in the market and almost without excep¬

tion,

limits.

but lack some of the

ing better balanced. Employment
is sharply off, with overtime and
work weeks being reduced in ci¬

Detroit, historically an area of tightest steel supply, is today
one

,

closing the gap

reported the past four months.
Prices
continue
in
a
sidewise

states, is that consumers are able to place second quarter orders
to home, eleminating long and costly freight hauls, thus
easing the strain on railroad transportation facilities,
i :
*- '\ f

.

surveyed

members

the

The lag between de¬
clining order bookings and cur¬
tailment of production shows the

closer

and

of

production.

Among these,
light plates and structurals show signs of easing first.

:

Swanton

report further reductions in order
backlogs. 24%, the largest num¬
ber since August, show declining

stainless, mechanical tubing, silicon sheets, carbon tool steel, and
some wire products are fairly easy, while plates, bars, structurals
and

C.

Robert

purchasing

but also

straight

.

executives.

35%

iiMMM

And

picture, there is the usual rampant complaint
over "incredible bureaucratic bungling."

by January
reports of

inability to get second quarter orders booked.
By that time
supply is expected to be in pretty good balance with permitted
use—provided restrictions on use are not relaxed. But increasing

flow.

ment

been holding up the arma¬
completing our crazy-quilt

have

shortages

confirmed

is

tonnage from mills.
Some consumers aren't using all Controlled
Materials Plan tickets alloted them and little talk is heard of

It.

of

11 in¬

in December

"Inventory adjustment" is being used more frequently as the
reason for cancellation of orders, or for refusal of offers of extra

availability of steel varies not only among products,
among sizes, according to this trade paper.
;

Despite this, and a
of metals sufficient for military pro¬
duction
and
something over, machine tool

supply

reported

ity

paying more attention

the tendency was to be

secretive; today actual inventory position is fairly freely acknowl¬
edged, states this trade weekly.

-

past three to four years.

Haven,

lation.
There is

.

New

o v e r-a

the

Engaged in the

vast production program in history, we
enjoying 100% increases in steel and alu¬
minum and 40% in electric power over the
are

slowdown

by

pursued

most

Chester

Repeating
Arms
Co.,
indicates the

to their inventories.

earnestly

being

Defense Production Authority.

It is not uncommon to find a production line
slowed for lack of a particular steel item, while incoming ship¬
ments of other items threaten to place the firm in inventory vio¬

inventories, it notes.

.

n

is

industry

of

Purchases,

metalworking weekly, discloses in its current summary of the steel
On some products consumers' stocks are pushing against

1

Swanton,

Director

for

materials, including those going into Defense
"inventory." Tightrope-like balancing of the
military needs against the disastrous effects of
further curtailment of employment in civilian

of

is Robert

man

new

the international

on

despite the authorities'

rigid screening of the Pentagon's demands

Purchasing
Committee, whose chair¬

Agents'
past week steel ingot production rose
capacity rating, being equivalent

In the steel industry the

fractionally to 99.4% of the

as

Truce," the American businessman
military taking 50% of all available

and aluminum

copper

opinion of purchas¬

ing agents who comprise the Na¬
tional

well

as

Already, in what may be only the early stage of many years
finds the

in

the Economic Front

on

scene

of "Uneasy

and inventories.

demand reduced some work schedules.
»

the home economic

political fronts, there's a Cold War situation that is as hybrid as
it is unique.

and further decline in production

it continued to be slightly higher than that of a year ago, but
about 10% below the all-time high attained during World War II.
ever,

mount

Hot and Cold War
On

Swanton, finds in January there
were reductions in order backlogs

last week when

Due in

By A. wilfred MAY

of

ing Agents, headed by Robt. C.

J
was

Committee

National Association of Purchas¬

V
There

Survey

January 25, 1952

36
A

The Commercial and Financial Chronicle

6

Thursday, January 31, 1952

.

(474)

Speaks After, the Yarn of; the Year

Business and finance
The

ions

following

year

are some more

of the opin¬

which, for various reasons, could not REVIEW
OUTLOOK ISSUE of Thursday, Jan. 17.

and

myself viewing the advent of 1952 with some¬
same mixed emotions one has on viewing the

what the

domestic oil

fort,

as

has

entered

our

into

oning;

phase, Like the government, we can
longer consider our problems on

need

no

a
purely domestic level, but must
try to foresee foreign trends if we
are
to correctly answer our prob¬

lems

here

home.

at

be

We

that

we

may

be

which

and
have

we

to

at

are

the

cross¬

principles from
strength, independence and
*
■ '•
v'V
X

our

personal initiative.

sacrifice

basic

the

resume

have derived

whatever

make

to

courage

entailed

we

.

"
,

Frankly,

with

1952

view

I

con¬

CHAS. E. BECKER

siderable caution for several reasons.
The oil industry, while

operating at
the greatest levels in history, is also
operating with inventories that could
prove burdensome. One cannot over¬
the

look

that

fact

commodity

a

oil

suffers

the

extremes

and

demand

to

coming

therefore,
in price when
show any sig¬
Robert 0. Anderson

tunities

it mov¬
detrimental
pffect on our domestic operations. All in all, I find it
difficult to view, 1952 with the expectation that it will
be as profitable as 1951, although in terms of volume
and gross sales it should easily exceed last year's figures.
In

the

East

Middle

have

may

pose

most

a

serious threat to

First

idential
ous

domestic

our

review

Canadian

and

oil

1952

will

one

And this

inexpensive

means

be

pointed out that

deal of the capital expenditures made on
ties during the past few

competition
vestment.

As

even ,more

Some

they

and

octanes

continue to

homes

these

All in

must

be

faced

may

eventually

not

and

in

occur

maybe

these
a

v

■

the

in its

V

ance
an

BRUCE

New

Year

opens

Have
that

of

can

ing—that
ernment
care—

basic

we

may

optimism—high

greatest

country in
yield our own

yet

precept
our

recognized

the

and

success

been

thrift

and

can

honor,

has

companies

and

The

last

personal

liberties

government that would take




care

have

provide

of what

the

experienced

has just completed the greatest

in

year

increased

burden

tax

reduction of net profit.

a

•
.

The year of 1952 should be another
good year in sales volume. Merchan-

G.

BRUCE, JR.

restrictions.

or

some

increased
acute

taxes

at

during the

will

accelerated

an

limited

be

because

H.

of its most important func¬

exercise of good judg¬
pricing of its products.
Uncertainty as to what future moves
of the government
may be
makes
price ceilings into price floors ir
manyv cases.
Under present price
control regulations, profits could be
tions

—

ment

in

the

the

severely and quickly reduced by fur¬
increases in the cost- of- labor,

ther

services.

materials and
The

for

rising cost of wages and

ever*
over

the last decade has created

serious dilemma.
increase, profits are
seriously reduced. But if prices in¬
crease
beyond a certain point, the
consumer
rebels, volume lowers and
management a

Unless

prices

•'
Bruce

Baird

us

to

all

a

paternal

by confisca-

throughout
other

,

manufacture

Of

are
are

ways

and

there is something government can do to
picture. Waste and. unnecessarily high taxes
twin threats to our economy.
Unless these

course,

help.the

on

serious

eliminated, we shall continue to discourage initiative
risk capital will become increasingly timid.
National

Biscuit

sums

plant modernization,

on

personnel

Company

training.

continue

we

While

we

in

1952.

H.

For

several

Con¬

duction

P.

as

will

reduce

will

the

Ihe

years

the

units

excepting

steel

building

now

completed,

are

acute.

the

maximum

The

refractories

record sales year.

the

amount

of

of

short

should be in

steel

bal¬

operations

tak¬

the

with

higher

industry

volume,

increased

E.
.

„

L.

Bruce.

Jr.

.

metal-required, and

is

unless

costs

of

price

denied.

Much of the industry

allowances
in

tax

forward

to

.

a

which

rates.

relief

commensurate

labor, materials and services is

pletion
•increase

looking

Operating profits should benefit from

many

ma-

needs

this

However, by mid¬

ing into account their projected expansion.

new

building

of these

the

of

EELLS, JR.

supply condition will remain

supply

use

products and

conscious

are

for brief periods, the
industry for refractory materials
have exceeded the supply. In 1952, until additional pro¬
of

demands

products will

year,

A wider

new

President, Basic Refractories, Inc.

housing

ample

to spend
the extension of

on

dangers to the economy inherent in present policies, we
are
moderately optimistic about the future.

occur

unduly ham¬

products used in

industry.
terials

the

George H. Coppers

profits with it.
to improve techniques of
distribution, to reduce costs and keep
prices at attractive levels.
Of course, this necessity
is nothing new. It is an important function of manage¬
ment at any time, but it is doubly important today..

Management must find

with

lumber

of

controls take from manage¬

one

the supply-demand relationship

and

restrictions

of

levels

record

ance

available

become

COPPERS

year

Lumber

will

rate

year.

cept for copper, to support

been

Burrus ;

"generally speaking should be
available in ample supply.
The help situation will be
dependent on the military needs and the amount of em¬

large

,

industry spokes¬

a

B.

dise

and

in 1952.

L.

the

have expressed the opinion that
there will be sufficient supplies, ex¬

be

yielded
of

will

excess

pered by the lack of-these materials.

will enjoy percentage de¬

will

Unless

tend

the

to

latter

offset
are

the. 1951

further

the
.

our

regulations

housing has not

apparently

complac¬

see

whole

a

equal to 1951.
Up to
present time the construction of

chance to make a decision.
to be content with this artificial
stimulation and
at the same time
accept the gradual diminution of our
vitality as a great nation? If so, we must with
ency

ME

which

in

even

program

expect true

Hence, if

we.

incalculably

an

men

New

our

offers

market

a

as

greater gain

trary to this,

forsaken.

Are

this

history with over $200 million gain in our insur¬
portfolio. I see no reason why we should not show

even

in

the

we are to approach this
Year.,, realistically,
we' must
surely realize that we have reached
^

And

(steel, copper, aluminum) and that
building will necessarily be sharp¬
ly curtailed regardless of any change

adopted by
only by hard

we

new

companies

these will have on housing construction in
Some authorities predict a serious bottleneck will
in
the
available supply of metals

and

forefathers, that

work

world

initiative.

million

that

paternal
as

our

Many conflicting statements have been made about
prospective shortages of critical materials and the effect

the gov¬

and

survive

4

million

4

.

President, E. L. Bruce Co.

with the usual

look to

can

to

research activities and the creation of

by the theory

support

we

nearly
.

being lived in by the
large percentage of these

very

of prospects

E.

get something for noth¬

for

that

a

constitute

crop

Company,

fundamentals.

been deluded

we

we

our

added

were

of

resulted in

At

Trust

tiopes for new fields of success and progress.
But we
must give cognizance to the trends
that have developed
in recent years—to what extent we have
enjoyed a false
prosperity—how much have we sacxiiiced

.

insured savings plans for

Washington, D. C.
This

that

year

and

owned

now

Our company

BAIRD

President, National Savings and

are

should

bumper

1951.

1952, yet
is

means

prosperously em¬
ployed workers, juvenile and college plans for babies,
mortgage plans for home owners and home pruchasers;

become

this

year.

t

all

insurance

problems

this

large market for mortgage programs.

evident.

of

anticipated

mortgaged.

are

Stores, Inc.

high during the
the year; however,
these have been brought in line with
the previous year.
;
>
The cost of doing business has in¬
creased
during
theyear,
which
part

ment

^

a sense

born

be

Nevertheless

owners.

Drug

significant

no

Inventories

early

taxes

refining facili¬

rise this will

:

Home ownership is increasing. It is estimated that 50%

years have been dictated by
by the financial return of the in¬

not

were

ernment
;

plans sufficiently modem and attrac¬
tive to appeal to the parents of these babies.

great

a

Charles E. Becker

of

year

and field men have

race

abatement* other than
In this connection it should

be^

prospects for juvenile insurance plans, if

continues without sign
present restrictions on lead.

•of

There

BURRUS

B.

Peoples

income in the country likely to continue
throughout the year 1952, the baking
industry should enjoy high sales volume, which may
surpass any previous sales performance.
However, the
outlook for profits is uncertain. Gov¬

these are perilous times
point of view) there will continue

is

it

will

of all homes

and

mount

With personal

many new Tiomes, and many mil¬
babies to be insured. According to census

reports,

.

refining, the octane

GEORGE
President,

at

high level of production and employ¬

a

world-wide

babies

new

would

should offset the loss in domestic usage.

GEORGE

large increase in marriages and births. This

V bureau

crude oil. The costs to date are good food for
thought,,
particularly when coupled with present prices and the
geographic problem of location.
yf

As to

to

a

new

demands

President, National Biscuit Company

military expenditures. /

Third, because in
a

would change the outlook

war

military

ease

my

prosper¬

are

years

(from
to be

of

reserve

this

in

Expansion

the establishment of

activity of 1951 without wondering
how long the domestic producers can continue to
replace
oil that is obviously costing more to replace than the
present market price.
Canada, in spite of- its great
an

but

Presidential

a

And to the best of

ment.

the

promise, has not yet proved

is

1952

continue

tremendous

All-out

would not suffer.

building material and the lack of available cash.

buying public.

Any administration which
remain in power will do

to

lions'of

reserves,

1952 of 20%, there is a possibility that a
approaching 1951, or 1,000,000 units, may again
Should this occur the lumber industry

put in place.

more

everything possible to maintain a
high level • of prosperity. Secondly,

ably represent surplus oil in world' markets.
to

be

the

suffi¬

a

and intelli¬
wares
in an

his

the

election

ones.

hopes

Iranian oil has already been largely replaced and if
production is resumed in the near future, it will prob¬

i\s

insurance

with

energy

to

all

election year.

an

reduction in hous¬

ing starts ia
record

knowledge it is traditional that Pres¬

mestic industry.

cannot

of

life

alert

present
way

in

a

ployment in the defense effort.
The cost of doing business will continue to climb. The'
necessity for increasing the cash balance in order to pay

it.

endowed

election year.

do¬

our

the

is

to

gence

effective

courageously

And I believe
1952 offers vast oppor¬

cient amount of

the oil industry today shows the
earmarks of mid-year 1948 which led to the depressed
earnings of 1949. These factors were essentially over¬
production due to an influx of cheaper foreign crude
and residuals. Petroleum markets are highly competi¬
tive and foreign products or crude can readily capture
important segments of the markets by shading prevail¬
ing prices. If it were not for the present world-wide
shortage of tanker bottoms, I believe foreign crude and *
products would

who

grasp

for

.who

man

a

.respects

some

and

that the year

greater factor during 1952 and pressure to keep

of

out

go

those

perennial and incurable

am a

that the future

believe

I

to

I

holds for us.

year

belongs

change.

out

no

optimist.

Foreign oil is going to be a much

ing

psychic powers, nor am I gifted with ability
look into a crystal ball, but I doubt that such powers
abilities are necessary in a prediction of what the

or

essentially

is

and

item,

supply
nificant

President, The Franklin Life Insurance Company
I have

predictions forecast

classifications.

and

continue government spending and deficit

we can

or

be,

most

the

decision

hard

a

can

financing without interrupting our course along the rosy
inflationary road, thus putting off the day of final reck¬

of the past decades

industry

international

an

will

It

roads.

The parallel is too close for com¬

world situation today.

While

turn to the. right, facing hardships, if
economic dislocation but demonstrating

provided for us the most whole¬
living conditions the world has ever known.

some

be made to assist this industry

will

changes in the drug store
industry during the year of 1951.
Sales throughout the
year showed a steady increase due mostly to the large
outlay of cash for the defense effort. Merchandise in
most
categories remained
in good
supply.
Salaries and
prices were frozen
during the early part of the year.
There has been a shortage of help,
particularly in the lower paid job

procedures that have

President, Maleo Refineries, Inc.
find

I

doctor.

political party has charge of our destinies, but what poli¬
cies are to be pursued by either political party.
Are we
content to journey to a completely socialized state or
can we not demand the resumption of those indispensable

ANDERSON

O.

ROBERT

are

disclaims any political implications. We
must approach this critical moment in our economic life
with calm thoughtfulness.
It is not a matter of what

will be

Remaining unpublished statements

our own

do

us

We

This message

given in next week's issue.—Editor.

>

like to pick out

old fashioned we even

so

Most of

what we can and can not do.

not like to be told

be accommodated in our ANNUAL

of free Americans.

the standpoint

from

the present

the business outlook for

on

tory taxes, with galling regulations and restrictions. The
pattern is familiar to us all, as we have seen it in opera¬
tion in other countries, with conspicuous lack of success

BUSINESS FORECASTS

MORE

in¬

building industry has demonstrated in the past its
resourcefulness in making the best use of the available

creased, the 1952 prospects for the;'refractories industry

products.

appear

The need for additional

stantial and it is reasonable

housing is still sub¬

to expect

that every effort

promising.
X

;

.

r

-

v

V

'

Continued

on

page

32

Volume 175

Number 5U86

.

.

The Commercial and Financial Chronicle

.

may

What Our Monetary

Policy Should Be
life

insurance

executive

the

is more interested in
the maintenance of a stable and
group

in the United

prosperous economy

States than
c o m

the life

are

insurance

ies

p a n

protection

this,

as

but

which

it

else,

lars

con¬

power.

that

level

business

a

lect

be

Carrol

Fundamentally,

Shanks

M.

exists

life insurance

a

to

provide pro¬
tection to its policyholders.
The
company is used as a pooling de¬
insured

an

can

pro¬

vide for old age or for the support

beneficiaries

death.

in

the

of

event

The income thus provided

delivery must be in the

form of dollars.

The policyholder,
however, is thinking not so much

of-dollars

as

he is of the goods and
those dollars will

services

which

provide

for

beneficiaries

himself

or

in

years.

later

his

for

The

dollar protection can be translated

into the intended goods and serv¬
ices only if the purchasing power
the

of

flation

dollar
robs

is

maintained.

the

insurance

life

large

The

In¬

beneficiaries

policies,

robs all others who

push their income

just

are

of

it

as

ic'function

of

a

„

a

of

means

saving

to

would

would

be

not

though taxes
are

apt to

time.

sufficient

Conference

Mr.
o*

Shanks

the

Board,

before

Nat'onal

New

York

City,

be

obviously
Never¬

of great and even
They should con¬

used

matter what

no
must

management
one

nor

be

taken

policies.

in

Our

political.
in

interested

are

think

we

them in our life-^
apart • from

will

the

an

We
de¬

effect¬

most

of small

the

from

amounts

As

small

the

a

matter

of

is

not

or

disassociate

possible

goals

what

the

as

their

Nevertheless,

their

prosperous

that

it

probably
separate

these

are

(it

its

has

Easy

group

inflationists? These are. some
identifying characteristics-:
they continually advocate low in¬
terest rates—or

are

interest

no

rates

concerned
the..,government
debt—they argue that we owe it
to ourselves anyway; they are not
identical with, but draw support
from, the silver interests.
They
they

not

are

about'the size of

are

wheel"

"balance

the

for

spending,
provided the balance is taken off
theory
and

government

of

the

is

wheel

always

the

on

spending side. They in effect ad¬
vocate perpetual inflation, feeling
that
the
tragedy
andinjustice
which rising prices bring to many
groups in our society are not im¬
portant. They hold that there is
never-

when

occasion

an

the

public welfare demands a tightmoney
policy,
stating,
in the
words of one of their representa¬

This announcement is under

..."sell

or

as

The

a

no

people

o:at

subject of interest rates is a

remarkable

they

interest

the

can

holding

Keynesians,
that

When

one.

their purposes

suits

it

be ardent

him

with

rate

occupies

a

strategic role among the factors
responsible for the level of busi¬
ness activity.
But at other times,
they become just as ardent antl-

Keynesians, and argue that inter¬
est rates have nothing to do witb.
the level of business activity.
It
is

line

their

that

significant

oir

reasoning shifts so that their con¬
clusion

invariably to be

appears

always

that low interest rates are

To them there is nevro
occasion when the public in¬

necessary.
an

for

calls

terest

quantitative
supply.

a

the group which.
can find little
which in common sense supports
With respect to

I have

their
I

described, I

position. That does not meao-.
of the contributions

am unaware

of the

monetary heretics

(a term,

Keynes himself) to ovaeconomic thinking. Through theJr
used

by

questioning of long-accepted mon¬
etary principles, they have stimu¬
lated discussion and
new ideaik
These have resulted in great im¬

provement in our understanding
of money and its relationship to
the
economic system.
Unforttvnately,
on

people have seized,

many

these contributions to econoirv.

thought and, applying them to
totally different frojp>.
those
under
which
they were

ic

situations

or

have

conceived,

originally
verted

excuses

per¬

to justifications for9

them

for, inflexible and up-

thinking policies.

Almost unfail-

Continued

construed

circumstances to he

solicitation of

an

on

page

22

'

NEW ISSUE

offer &£»

as an

offer to buy any of these shares.

offering is made only by the Offering

Circular.

■

150,000 Shares

Republic National Bank of Dallas

in

elsewhere)
served by

a

Capital Stock

>

Money

in this country

(Par Value $20 Per Share)

Great
which

feels that the best interests of the
economy

easy-

say,

all;

The position of these

the

of

counterpart

..and

modern

policy advocates—that is to

of their

at

arc;

always desirable."

limitation of the money

questions.

economy.

a

is

money

easy

policy.

fully

fact,
to

Advocates

Britain

panies invest funds so that they

easily

as

cure-all.

agency

that

the two

'•■•V/.. Perpetual

com¬

con¬

tives, that "low interest rates

of

Nevertheless, let's talk first about
what monetary policy has the best
chance of promoting a stable and

V> There is

grows. '•

man

life r insurance

twin

administer

millions

policyholders and savers"

Obviously,

;

the

prosperity.^ we must

second,

and,

best

can

•

to

these modern inflationists

can

dismissed

icy is most likely to promote these

we

capital,

toward

goals

Jan.

i&o*..

a

decide, first, what monetary pol¬

the

Industrial

of

policy.

whole job.

measures

stability and

even

lower than

were

see

The

look to
by

stantly

sible

say

The tendency and the necessity to

talk

value.

which

give

Clearly
pany, if it
*A

application

on

velopment and the effective ap¬
plication of that monetary policy

its policy¬

small

life insurance com¬
can, will want to take

States

are

crucial

simply

that insur¬
mobility to
capital.
High taxation has de¬
stroyed the possibility that capital
coming from the well-to-do be
sufficient to supply our advaneed
industrial machine.
In my opin¬
ion,
capital: from
that
source
companies

ance

be

-

unable to

a

economic

United

measures

the

emotional

plowed back earnings, must in the;
faster than* main be collected in individually

up

and the

ively promote the stability and
holders, but also that of combin¬
prosperity of our economy.
"
ing small payments into sizable,
If
we
are
to
use
amounts of capital and directing
monetary
as
pos¬
them to their most productive use. measures as effectively
Economists

Nor

Who

approach to this problem is not

company, therefore, is not solely
that of providing protection and

propensity

the marginal efficiency of
capital, and the mature economy.

money

stable

stable purchas¬

the

monetary

theless, they

debt

to

and

The econom¬
life
insurance

Of

money.

sume,

mone¬

addition, as, for example, the fol¬
lowing of sound fiscal and public

aid the government.

more

through

Today, they talk in

the

of

believe
a

important degree

Monetaiy

ment, the purchase of farms, the
building
of
homes,
highways,

facilities,

a

of

prosperous

in
an

continuous

other

we

of the dollar,

fs»p"ot d">

equip¬

the dollar goes down.

328th

the

the

companies

because

and of

power

sound

to-;

predecessors.

proposition:

maintenance

depend to

life

brings

plant and

transportation

policy
the

conditions

principal

a

erosion

escape

insurance

sustaining of

col¬

policyholders

vitally concerned with

ing

payments

borrower, for

of

life

policyholders for

company

construction

econ-

for future

the

and

omy not only
be prosperous but that it be stable.

vice in which

companies

their

of

their

economy

purchasing

of

problems

simply

protection

that

dollars

solved

predecessors.

tary

con¬

repaid in dol-,

protection.

vi¬

of

The

makes them available to the small

we

company

of

why

are

urging

course, the
modern easy-money
advocates are not so naive as their

terms

understand

among

groups,

economic

our

issuance

the

advocates,

other

be

we
and

practical recommendations always
seem to end up with the same old

are

principal,

small

policy¬

companies

savings
through inflation.

gether these small payments and

concerned

that the

insurance

countless

insurance

other

groups,

be

the

of

the

all

States,

Greenbackers

stability in our economy,
because only in that way can the

and

policy¬

the

commensurate

method

than

most

lends

of

that

whom life insurance is

even

more

safety

from millions of

maintained.
But

of

Life

of
ac-

i t y

the

In connection with

concerned

that

shrinks.

to

easy

partially

extent

power

the

tally concerned with the mainte¬

long-range investor, the

a

with

is

we

cerned

its

the

insurance

nance

insurance company seeks not

everyone

high

which

is

program

to

dollar

is

It

life

maintain

to

for

holders strive.

sistent

with

are

steps

only the highest interest rate

lions
of
pol¬
icyholders. In
common

effective

life

and their mil¬

of

could

part

the
silver

free

that

the

on

United

the

countless

attention

protection

monetary

a

the

investment

purchasing

have

spite of

and

holder and

holder's

should

in

But

case,

This

is not new; it has appeared
reappeared in each genera¬

the part of the policy¬
careful and profitable

on

nation

No

are

the

defeated

policy.

v

had

policy we need is neither a perpetually easy-money policy nor a
perpetually tight-money policy, nor a "hands off" policy. Says

policy that is flexible and
objectively administered, keeping in view injustices and pitfalls
of inflation as well as dangers
underlying deflation. Upholds
independent Federal Reserve as agency to administer monetary

t i

In

have

be

policy.

easy-money

tion.

substantially lower net cost for
protection than would other¬

of the life insurance company,

monetary

ually

or

sacrifice

contends

them for

upon

group

wise

President, The Prudential Insurance Co. of America

Prominent

interest

earn

the benefit of their policyholders.
This benefit shows up in the form
the

By CARROL M. SHANKS*

1

(475)

subscribe for these shares h;?v;€<
Capital Stock, which
P.M., C.S.T.,.February 6, 1952.
•

Subscription warrants evidencing rights to

perpet-

been issued
j

by the Bank to holders of its
expire at 2

warrants

.

Subscription Price to Warrant

.

Holders

$40 Per Share
Capital Stock may be offered by

Bank Stocks
Our

of

writers

analysis of the 1951 year-end reports of

outstanding banks is completed and
A copy

will be sent free

now

a group

buy

Circular

the

registered dealers in securities in

undersigned

or

are

as

may

upon request.

Walker, Austin & Waggener
Company

Dallas Union Securities Co.

Rauscher, Pierce & Co.

small blocks at net prices.

:

Dallas Rupe & SoiQ

'

Merrill Lynch, Pierce, Fenner & Beaua

Sanders&Newsom Dewar, Robertson & PancoasS

Russ & Company, Inc*

Elliott & Eubank

Schneider, Bernet & Hickman

Blyth & Co., Inc.
New York
Boston

■

Louisville

•

Sa\t Francisco

Springfield
•

Detroit

Sacramento




•

•

•

Chicago

Philadelphia
•

Pittsburgh

•

Minneapolis

Fresno

•

San

Los Angeles

•

•

Jose

•

Spokane
•

•

Binford, Dunlap & Reed

Seattle

Cleveland
•

ASA I
Pasadena

such of

this State.

available.

in .bank shares and are prepared to

sell in large

or

be obtained only from

Copies of the Offering

First Southwest

JFe deal actively

the Under¬
Circular.

set forth in the Offering

as

•

Oakland
•

R. A. Underwood & Co., Inc.

Dittmar & Company

Henry-Seay & Co,

Judson S. James & Co.

Frank Miller & Ccv

Portland

•

Indianapolis
•

Eureka

San Diego

Hudson, Stayart & Co.
JANUARY 18, 1952

'

Chronicle

The Commercial and Financial

8

Thursday, January 31, 1952

..

.

(476)

announced last night that the

was

issue

the books closed.

and

Dealer-Broker Investment

debentures

The

aside

tractions

Recommendations and Literature
understood that the firms mentioned will be

It is

send interested parties

to

which
than

more

pleased

prior

these

price,
is

at¬

how¬

sinking

a

designed

retire

to

forecast—John H. Lewis

Co., 63 Wall Street, New York 5, N. Y.
Stocks—Analysis of 1951 year-end reports—Blyth &

Bank

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

Y.

parative tabulation—Parker and Weissenborn,
24 Commerce Street, Newark 2, N. J.
Consistent

Profits

in

examination
Offset

period

Securities—Study—Oppenheimer

Government

Co.,

&

25

Bissell &
Also available is

Portfolios—Breakdown—Laird,

Bond

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

This
went

breakdown of the Sources of Gross Income.

a

Co., Mississippi Valley Trust Building, St. Louis 1, Mo.

of

New

York

comparison and an¬
alysis of 17 issues—Laird, Bissell & Meeds, 120 Broadway,

New York

5, N. Y.

<--'

Inc.,

Bureau,

46

Front

Street,

New

Pont

I. du

&

available is
r

a

over

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

Also

discussion of Bank Stocks, a list of Industrials

5, N. Y.

Natural Gas and

Bros.

Also available

&

are

bulletins

on

which

tory

7''

seen

tration statement effective, a pre¬

to

a

many

ef-

lower

at

could

a

be

obtained

vate

priplace¬

ment

with

through

Jas.

Coggeshall, Jr.

few

a

funds,

SEC

and Alcoa,

statements could contain

It ion,

would

listed

and

Nihonbashi, Chuo-ku, Tokyo, Japan.
Security Market—Analysis—Aubrey G.
Co., Inc., 15 Broad Street, New York 5, N. Y.

Under writings—'Tabulations

Lanston

Memorandum

—

Securities

Aetna

Co.—Analysis—Loewi & Co., 225 East Mason Street,
Wis. Also available is an analysis of American

Optical Co.
Dome

&

Heller

Ltd.—Analysis—Stanley

(Western)

Exploration

Co., 30 Pine Street, New York 5, N. Y.
Inc.—Discussion—Faroll

Gamble-Skogmo,
La Salle

Co.,

&

South

209

Also available is a discussion

Street, Chicago 4, 111.

Niagara Mohawk Power Corp.

Co., 10 Post
Square, Boston 9, Mass.
Also available are writeNational Company, Riverside Cement "B," and Seneca
Machine—Write-up—Lerner

Grinding

Office
ups on

&

Falls Machine.

ability

William

&

Houston

Allis-Chalmers Manufacturing Co.—Bulletin—Paul H. Davis &

Co., 10 South La Salle Street, Chicago 3, 111. Also available
data on Burroughs Adding Machine
Co., Cluett, Peabody
& Co., Inc., Cutler-Hammer, Inc., General Cable
Corp., and

Co.—Bulletin—Gartley

&

*

Power

&

Associates,

68

Co.,

15

Co.—Data—Estabrook

&

Maine

Arnhold
York

and

S.

Coast Line
Railroad—Analysis—Eastman, Dillon &
Co., 15 Broad Street, New York 5, N. Y.
Also available are
some suggestions for a balanced investment
program.

T

Atok-Big Wedge
man

is

a

&

Mining Co. Inc.—Analysis—Bruns, NordeCo., 321 Broadway, New York 7, N. Y. Also available

bulletin

on

Street, New Haven

memorandum

Central

on

sound

Conn.

10,

Railroad—Information—Raymond

State Street, Boston 9, Mass.
Thermo King Railway.

Midwest

set

1951.

Write for free

ture.

You will

Also

&

148

Co.,

Also available is information

Main

Corp.—Memorandum—Smith,

Commerce
Pathe

Tri-State

TRADING

A

trading method composed of (4)

(a)

74

Y.

Reaction

Motors—Analysis—Amott,
Broadway, New York 38, N. Y,

Stone

&

Co.,

25

Baker

&

Co.,

Inc.,

(b)

HA

Security Dealers Association

2-2400.

Teletype

Private

Cleveland-Denver-Detroit-Los




wires

NY

Co.,

—

Bulletin

—

L.

H.

&

Co.,

52

Wall

Engineering

1-376;

377;

Co.—Memorandum—

Co., 39 South La Salle Street, Chicago 3, 111.

Electric

Light

&

Power

Angeles-Phlladelphia-Pittsburgh-Bt.

Louis

Zonolite

7

Memorandum—Republic Investment
South La Salle Street, Chicago 4, 111.
—

his

he'fol¬

"The Taylor Automatic Tape
Reader," this amazing mechan¬
ical form, points out the REAL
TRENDS of short term price
The interpretation
this

"tape

reader"

and use of
for active

traders—who trade day to day
movements or for making 1 or
2

trades

a

week—in

commod¬

ities, grain futures and stocks.*
(d)

basic method

The

for buying

and selling—semi-investor

and
trading in stocks. > Ap¬
plicable to 50 or 50,000 shares.
The
greater
the
line,
the
greater the need to know this
swing

-use

service

THIS

rule

and

how

to

it.

complete, not

an

advisory

or charting system. LEARN
METHOD—WIN ON BAL¬

These

are
offered at
in the T AYLOR
TECHNIQUE (not sold
separately).

components

LILLY PUBLISHING CO.
P. O. Box 7265

Ry.

Co.

for

can

TRADING

Woolworth—Analysis—Newborg & Co., 25 Broad Street, New
York 4, N. Y.
Also available is an analysis of Norfolk &
Western

then

$25.00, combined

7

to

A-B-C's of

reasons

ANCE.

Co.—Analysis—Ira Haupt &

Co., Ill Broadway, New York 6, N. Y.

378

manip¬

trend 7

a

Method is

Manufacturing

&

all

knowledge
speculator

a

know the
or

How

fundamental

Rothchild

in

changes.
(c)

150

Waggener, Republic Bank Building, Dallas 1, Texas.

not

trend is the

a

without
action

trading
losses.
low

Street, New York 5, N. Y.

Tucson

movement

does
*

Broadway, New York 6, N. Y.

Texas

making of

this

of

>•

Teleprompter

Jrinity Place, New York 6, N. Y.

Telephone:

The

Building, Cleveland 14, Ohio.
Inc.—Circular—Hayden,

the cardinal
time

on

principles
of
speculation,
tested, through use.

14

Pennsylvania RR.—Analysis—Vilas & Hickey, 49 Wall Street,
New York 5, N. Y.

61

based

components

Street, New York 4, N. Y.

Leason &

N.

817-C

TECHNRtll

:

Southwestern Natural Gas—Memorandum—J. F. Reilly &

VMembers:

Co-

Offset

THE TAYLOR

Inc.—Analysis—Gottron, Russell & Co., Union

Industries,

Broad

Co.,

Barney &

Seneca Oil Company—Analysis—Genesee Valley Securities Co.,
Powers Building, Rochester 14, N. Y.

Truster, Singer & Co.

never

St., Cincinnati 2, Ohio.

basic

Street, New York 5, N. Y.

Austin &

Primary Markets

follow

descriptive litera¬
regret it. Book
may he bought with 5 day examination
period with full refund if not satisfied.

Republic National Bank of Dallas—Offering circular—Walker,

American Optical

to

a

dozens of different stocks from 1935 to

ulations;

Oil

Pathe Industries,

American and Foreign Power Co.

Bausch & Lomb

determination

a

of rules is

procedure that
will produce
consistent -worth-while
profits in the stock market year after
year.
Curtis6 Dahl in his new hook,
"Consistent Profits in the Stock Mar•
ketpresents the results of extensive
research to develop a simple procedure
to
insure one being in on all major
stock price moves whether up or down.
The first half of the hook explains and
illustrates the procedure. The second
half gives the records of profits on
a

&

Suburban Propane Gas Co.

Co.,

231,

42

BULL OR BEAR MARKET

on

4, N. Y.

Atlantic

a

Bodell

Co.—Memorandum—Barnes,

Goodwin, 257 Church

Wall

Power—Analysis of reorganization plan—
Bleichroeder, Inc., 30 Broad Street, New

Utilities

available is

American & Foreign

i

page

Street, New York 5, N. Y.

Lighting

Kentucky

are

Loew's Incorporated.

on

PROFITS—WHETHER

Southern California Edison Co. and Toledo Edison Co.

Inc.—Bulletin—Stuyvesant F. Morris, Jr., & Co.,
Exchange Place, New York 5, N. Y.

information

complete

Continued

Street, Boston 9, Mass.
Also available in the same
bulletin are brief analyses of New England Electric System,
Northern States Power Co., Potomac Electric Power Co.,

placements made during 1951
by Central Republic Co.—Central Republic Co., 209 South La
Salle Street, Chicago 90, 111.

40

ex¬

State

of

Adolf Gobel,

national securities

a

of

Write

Chemical

Harshaw

Treasury

—

on

Patience and

Milwaukee 2,

on

"reader"

Corp.

clause

change to insure the future avail¬

&

Corp., Ill Broadway, New York 6, N. Y. Also available is a
memorandum on Sapphire Petroleums, Ltd.

Gear

of this

Electric

Mont

a

providing for the securities being

ventured the opin¬
have had to pay at

he

Engineering

&

better by

or

two of the three

institutions.

Corp.—Special report—
Co., Inc., 55 Liberty Street, New York 5, N. Y.

Machinery

Kobbe &

of all securities

case

rated Baa

are

large

Co., 407 North Eighth Street, St. Louis 1, Mo.
Columbia

the

in

which

nationally recog¬
interes't nized securities rating agencies.
abbreviated /registration
than Such

rate

pension

cases

be

fected

proved satisfac¬
host of institutional

chiefly

flotation

could

3Vs% rate and priced

a

a

basic

use

period involved in pre¬

the 45-day

paring, filing and waiting for the
Commission to make their regis¬
requisite

Bearing Co. of America—Memorandum—Dempsey-Tegeler

Tokyo Market—Quotations on major stocks tabulated by in¬
dustries—Nomura
Securities
Co., Ltd.,
1-1
Kabuto-cho,

.

to

selling—$25.00—Lilly Publishing Co.,
P. O. Box 7265, Station G, Los Angeles 37, Calif.

Reader," interpretation and
method for buying and

i

went

Chain Belt

Taylor Trading Technique—Trading method composed of four
components: the making of a trend; "Taylor Automatic Tape

,

be

private debt securities by altering
its
registration requirements so
strate
that that an issuer corporation could
make
a
public offering within 24
wide distribu¬
after
filing
a
one-page
tion of prime hours
registration
statement with the
securities
in

evidently

buyers,

Arkansas

Charts—Sample page showing six of 1,001 stock charts
with description of a graphic service and list of 200 companies paying dividends for over 25 years.—F. W. Stephens
Co., 15 William Street, New York 5, N. Y.

>

to

this

100, the issue offered purchas¬
ers an indicated return of 3.125%,

Stock

.

that

would demon¬

at

Co., 120 Broadway,

Republic of Costa Rica.

se¬

press

the offering price.

Du

Stocks—Discussion—Sutro

were

Coggeshall also stressed the
to avail of the obvious

Mr.

fact

\

"Behind the Market" Stocks.
New York

a

when the
premium

surprise

no

Carrying

which appear "cheap" on plowed-back earnings, and a list of

Steel

f;

At

ago.

savings and commercial banks.

Quotation

"Security" in Dividends—List of issues which appear in posi¬
tion to maintain last 12 months' payments this year—Francis

J

weeks

National

4, New York.

its

because
widely

company

the

Registration

Ease

up

smaller insurance companies,

York

via

Requirement

undertaking
forecast by

parison between the listed industrial stocks used in the Dowover-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
yield and market performance over a 13-year period—

Jones Averages and the 35

;

been

three

debentures
^

City Bank Stocks—Year-end

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

SEC

Urges

interest

building

occasioned

leading banks and trust companies of New York—

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

the

curities

foregone con¬

was a

Scope of demand was regarded as
little
short
of
fantastic
and
it

New York Bank Stocks—79th consecutive quarterly—compari¬
son

had

as

registration

Street, New York 5, N. Y.

New York Hanseatic

capital

which had
steadily since
the financing went definitely into
been

Market—Analysis of situation—Walston, Hoffman & Goodwin,
35 Wall

enormous

off

preliminary

Stocks—Analysis and list of several issues—White &

Insurance

to

now to making a public
conference held pre¬ offering. The SEC could, without
America's $125,000,000 of 12-year liminary to the public offering of any change in the law, Mr. Cog¬
debentures
are
more
convinced the debentures, James Coggeshall, geshall said, eliminate such a risk
than ever of the wisdom of proper Jr., President of The First Boston and thereby properly encourage
the
wide
public distribution of
pricing of a given issue.
Corp.,
said

4, N. Y.

Broad Street, New York

this sav¬

to

ing, he pointed to the advantages

credit

country's

just how severe this action may be.

banking group which handled the
marketing of Aluminum Co. of

book may be purchased with 5-day
with refund if not satisfied—Tri-State
or

Co., 817-C Main Street, Cincinnati 2, Ohio.
Internal

German

In addition

method.

Again
it
a quarter

remains

It

clusion.

nationwide

in the

Participants

Dahl—free

the

sought

has

subscriptions

pertaining to prime
debt offerings.

ments

Incorporated,

Market—Curtiss

Stock

the

descriptive literature

registration require¬

ease

New Jersey—Com¬

Companies of Northern

Trust

and

Banks

Coggeshall of First

Boston advocates SEC

Co.,

of

best

risks,

James

current

advantage. inherent in selling its
debentures*
through
investment
sale of securities to the public.
banking channels Alcoa, because
of SEC's present registration re¬
That it will be necessary to
scale down
allotments
against quirements, was obliged to gamble
on interest rates not rising during
the

&

on

financing had they
resorted to the private placement
their

marked the first time in

century that this company, one of
Air Transport Industry—Review and

318%

of

instead

3xk%

least

placed90% of the total debt throughout the country, and the
value of the attendant publicity.
is

maturity.

to

other

had

from

Among

ever.

fund

the following literatures

heavily oversubscribed

was

Station G. Los

Angeles 37, Calif.

!

Volume 175

Number 5086

.

.

The Commercial and Financial Chronicle

.

(477)

The Business Outlook
For the Months Ahead
Economist, National Industrial

Conference

percentage saved.

could

are

the

By MARTIN R. GAINSBRUGH *
Chief

narily high level of personal sav¬
ing as "a precarious situation and
any day the combination of events

It

maintain

and

Mr.

further cost increases

any

panied by price
cutbacks

goods

dominate

to

tations of
Business in

the

sharp rise in

opening weeks

of 1952 still remains at dead

ter.

The

labeled

cen¬

in' inflation"—first

"lull

temporary

as

transient,

or

but

now

al¬

.

most^,

a
year
old—still cor^

r

11 y

e c

i b

s c f

clines

in

spots

the

civilian

actually

now

de¬

1950.

in

'

part

taking

factors.

Ad¬

machinery

ordnance,

activi¬

offset by declines in the

Output in lumber,
and paperboard ran behind
year-ago
levels
throughout the
the

new

year.

Factory employment showed little

change in aggregate, although the
shift to defense employment con¬
While farm prices staged

the

of

tied

manufacturing

closely

to

Retailers'

consumer

profits

have

fourth

the

make

orders

business

and

likewise show

slowly

inventories

new

inventories

marked changes.

no

Retail inventories
down

both

on

cost

sions

at levels

are

had

flattened

went

come

down

somewhat

in

(2)

Whether or not taxes are
being passed into prices, a

now

profitable
below

now

areas—but

is

the

since

and

business

prices

Consumer
in 1951, al¬

by 4%.
though wholesale prices have been
consistently
below
their early1951 peak for the past six months.
Two factors appear to have kept
retail prices high.
In part, rising
wage costs have offset declines in
of

raw

expenses

spread

no

were

over

units—or

ci¬

longer

the

even

nine

first

the

being

greater number of

a

number

same

industries—as

some

in

once

sector, as it did early in
higher indirect costs and

1951,

in

Also,

rising in the

stopped

output
vilian

materials.

they

months

were

after

As

current

retail

finished

and

price

level

(as

well

finished
now

as

semi¬

to

be

fairly well established. It seems
unlikely that there will be a fur¬
ther
significant
decline in the
level

of

prices at the expense of
earnings, as in the last
half of 1951. Aggregate operating
business

profits
rations

cline

of manufacturing corpo¬
have shown a sharp de¬

since
talk

*A

by

the
Mr.

first

quarter

of

Gainsbrugh at Dean's

Day Home-Coming for Commerce Alumni,
New
York University
School of Com¬
merce,

Jan.

Accounts, Finance, New

26,

1952.




York City,

up

East

sharply, at least in

very

the opening months of 1952.

Fourth

formerly

be¬

Oswald

Mr.

St.

Clair

with

relatively

stable

price

lines

has

markets

for

Joins Smart,

(Special to The Financial' Chronicle)>,-•

COLUMBUS,
James

has

joined

Westheimer

present" level,«. at least forthe
months ahead.! Barring any more

East

international scares, our own Eco¬

and

Broad

C.

Ohio—Russell

of

the' staff

Street.

He

was

Ohio —John R.

CINCINNATI,
Perkins

30

Company,

Clowes

(Special to The Financial Chronicle)

for¬

has

joined

the

staff

St.

merly with Merrill, Turben & Co.,

others, looks and the Ohio Company.

♦

Paul

Building.

He

was

Securities.

offer to sell

an

'

The offer is made

nor a

The
«v?

,

solicitation of

.

.

1

1

■

■'

r?

offer to buy any of these

an

only by the applicable Prospectus.

Dayton Power and Light Company
:

■

■

,
.

-

■

,

$15,000,000 First Mortgage Bonds, 3'/4% Series Due
Dated

Due February 1, 1982

February 1, 1952

"■■■.*

^.

...

•

,

Interest

payable semi-annually February 1 and August 1 in New York City

\ Price 102*4% and Accrued Interest

256,007 Shares Common Stock
•

($7 Par Value)

ap¬

Rights,

The lull in

warrants, to subscribe for these
Company to its common stockholders,
Standard Time on
more fully set forth in the Prospectus.

subscription

shares have been issued by the

which rights will expire at 3 o'clock P.M. Eastern

featured

and was particularly
spicuous at Christmas.

evidenced by

February 15, 1952,

as

a

con¬

Subscription Price $32

a

Share

buying has not stem¬

med from lack of

mass purchasing
The mammoth saving rate
the Department of Commerce has

The several underwriters may offer shares of Common

Stock at prices
Subscription Price set forth above less, in the case of
sales to dealers, the concession allowed to dealers, and not greater than

power.

reported for the last
ters

suggests that

elected

to

chases

to

for

of

most

rather

save

compelled

three

contract

lack

1951

of

with

side

him

of

as

either the last

have

than

their

pur¬

income.

For

sale

or

current offering

Exchange, whichever is greater,plus

been

an

price

the New York Stock

on

amount equal to the commission

of the Stock Exchange.

;

the

picture of the
unhappy and con¬
servative spender has run side by

consumer

not less than the

quar¬

consumers

an

Copies of the applicable Prospectus may be obtained from only such of the undersigned

contradictory picture

a

as

well-fixed

a

f

as may

legally offer these Securities in compliance with the
securities laws

saver.

of the respective States.

When the rate of personal savings
first rose to 9% of income in the

quarter of 1951, that
be

buying
late

the

in

summer

it

sumers,

reaction to

a

first

quarter.

would

early fall, con¬
felt, would again

stuffing

soon

The

con¬

have his fill of

mattresses

and

tractably to

the market place

send

trade

production)
Even

now

nomic
stresses
a

"normal"

major

fact

Council

5%

of

among

that

a

THE FIRST BOSTON CORPORATION

,

BLYTH & CO., INC.

.

GOLDMAN, SACHS & CO.

WHITE, WELD & CO.

others,

return

threat

KIDDER, PEABODY & CO.

to

STONE & WEBSTER SECURITIES CORPORATION

Eco¬

savings rate is

inflationary

HARRIMAN RIPLEY & CO.
Incorporated

(and civilian
back to boom levels.
the

Advisers,
the

SMITH, BARNEY & CO.

defying

economists and would then return
retail

W. E. HVTTON & CO.

MORGAN STANLEY & CO.

By

or

was

prefer goods to savings.
sumer

was

over¬

UNION SECURITIES CORPORATION

DREXEL & CO.

to
.

a

ahead.

President Truman in his Economic

Report referred to the extraordi¬

January 29, 1952.

for¬

merly with John E. Joseph & Co.

'

,

This announcement is neither

of

Smart, Clowes and Phillips, Inc.,

yet

about

&

With Westheimer Co.

:

its

at

1950

have

was

Hall

S.

Company.

event, the saving
being viewed increas¬

Strong price resistance and
to
trade
down
to

wholesale)

appears

start

sav¬

rather

Phillips,

are

as

quarter of

expenditures

assumed to

result, the cost basis of the

a

Oswald has been made Vice-Presi¬
dent of Smart, Clowes &

Inc., and will be in the Cincinnati
will office, 807 St. Paul Building, 111

spending

consumer

Oswald

F.

has. cut the value

tendency

second

Korea.

George

CINCINNATI, Ohio—George F.

And relative stabil¬

.

non-

year,

pattern.

rose

that

ly

savings

parently advanced sluggishly and
reluctantly with rises in living

lower

Profits

yet conformed with this gen¬

cost

indication

no

second

personal

consumer

eral

prices

ceiling in most of the

There

a

by consumers have

sector.

that the unanticipated upsurge in

costs.

not

is

Factors Behind High Savings

rose.

Price Trends

sumer

clefense sectors.

November, and possibly again in
December, even as personal taxes

Prices paid

lays, this suggests relative stabil¬
ity of total output. in the con¬

continue

savings has lost its impetus. Ever

Against this background it is
surprising that personal in¬

not

civilian

that make it almost im¬

be reflected in prices. *

out.

stable.

the

Despite rising defense out¬

now

perative that any further cost
rises, particularly wage increases,

manufacturing

Manufacturers' backlogs were also

studies

therefore pertinent:

are

(1) Profits after taxes

still going

were

and

dominate

may

sector.

now

quarter,

figures

depres¬

the

inescapable point
selling prices
uncomfortably close to
of production.
Two conclu¬

are

were

latest

that for

the

that manufacturers'

in
industrial would compel many sectors of in¬
extraordinarily stable dustry to seek higher prices. Price
from October into January.
And ceilings may restrain the more
the

prices

ables

any

now

as

1952

sive influence of cutbacks in dur¬

rather than
through saturation of his current
wants.; In

the possibility

Profits figures for recent months

further hike in business taxes

less steady recovery

past

added

the first half of

the

reasons—more

inflation

his

holds

permanent

transient

will

future. To these should

near

savings by ity of employment, and hence of
Who income, in turn makes it less like¬

consumer

nomic Forum, among

subsiding physical volume.

thus

coal

or

than

of

for

more

third, the

consumer

groups?
Who

these

find the

And

sector

radically alter his savings rate

in the

such

of

debt

assets?

As

may

earn¬

also been hard hit by rising costs
and

bit in

a

after

other defense-related

more

the

cause

After taxes the decline in

civilian sector.

a

in

'

markets.

vances

tinued.

experienced

we

and

civilian

likelihood that the

savings.
compulsory, re¬

distribution

holds

ing

anything

industries."

declined

into

same

quarter of

the

below

sector

Production

of

savings

income

debts?

fense-related

seasonal

and

second

is

ingly

of

quarter

the

in

as

mar¬

rate is

account

were

are

profit
at about the

average,

that

quarter,

ties

be

composition

Smart, Clowes Co.

fact

generally below ceilings, and
that are now at ceilings may

in the

have to be raised.

in

the

Second,

now
some

my

and

fense

and

high

prices.

prices

not

this

Oswald V.-P. of

quarter, and perhaps well

that

explanation is being
sought from consumer overbuy¬
ing to the study of the structure

nounced, with the profit tobog¬
gan shooting down the most in

fourth

and

On

-

ings and margins in the manufac¬
the
turing sector is much more pro¬

in the civilian

the

the

steady upward
climb * of' de¬

Martin R. Gainsbrugh

sector

by

1950; in some industries—textiles,
apparel, automobiles — they are

s e c-

offset

mind,
which

Is

continue

tors
to

Korea.

gins

soft

or

expec¬

this

for

progressed, in
shifting
the area

even on a

level

De¬

scene.

Belittles

yet

as

We have

the

then, three factors
moderating the outlook for the

selling

pretax basis. De¬ flecting the drain on consumer
spite the rise in the price level income of repayment of debt?
since Korea, unit profit margins How much of the savings described
as a "residual"
by the Department
(before taxes) of manufacturing
corporation are no longer much of Commerce is actually available
above levels prevailing just before to consumers in liquid form? What
1951,

the

business

output,

spending.

consumer

de-

e s

expects

consumer

counteracting effect of rising defense outlays.

explanation

in

First, the current and prospec¬
tive pressure of costs and taxes on

generally accepted

no

decline

summary

current

perfect the policies
effectively curb such

is

slow

a

into 1952.

we

inflationary outburst."

rate.

accom¬

During first half of 1952

rises.

durable

in

tax hikes be

or

recent
that

only

In

reverse

of

essential

is

will

There

Gainsbrugh, describing current business activity as "at
dead center," asserts profits after taxes are at levels necessi¬

attitude

present

which

Board

to

consumers

months.

an

tating that

cause

for

9

I

10

The Commercial and Financial Chronicle

(478)

.

Thursday; January 31,1952

.

.

difficult

days for the carpet and
industry are over. There is
going to be a period of time for

The Outlook For 1952

rug

it

By A. W. ZELOMEK*

problem

will be slowest of year,
and, stimulated by foreign developments, business will pick up
during subsequent months. Belittles possibilities of a runaway
inflation, maintaining year's cost of living rise will be limited
to 4%.
the economic fac¬

among

t(.ie

1952 will be

in

general

level

economy—the
employ¬

of

will

1952

By ROGER W. BABSON

.

be

Mr. Babson, in pointing out fluctuations in the marriage and
birih rates in recent years, calls attention to influences of such

than 1951.
from the

changes

business.

on

marriages for next five

decline has been greater than most

Says

20%

prospective

years can

adversely affect

decline

in

our economy.

people have realized. There is no
Each
generation, in countless glass,* cement, gypsum, paper and
problem in 1952 whatsoever. Our ways, helps determine the fortune
electrical equipment.
The newly
productive capacity in some of of the
generation which follows it. married
couple
buys
furniture,
automobile inventories by the end these industries is so huge that it Thus, the economic course
of the rugs, and
household accessories.
will be sufficient to halt any sharp
of this year.
fifties wasThere is also additional demand
As regards disposable
income trends in prices.
largely
for electricity, water and gas and
for 1952, we will spend $231 bil¬
charted in the
No Runaway Inflation
usually a bank mortgage! As ba¬
lion, as compared with $222.8 bil¬
thirties; what
bies are born, demand is created
We cannot have a runaway in¬
lion for 1951.
Disposable income
we
do
today
for milk, baby foods and clothing,
in the last quarter of 1951 will be flation in this country for some
will
be
felt
baby carriages, toys and a variety
We are going to
$227.8 billion; in the first quarter time to come.
most strongly
of ot'rer items.
Thus, marriage is
of 1952, $229.4 billion; in the sec¬ have an advance in living costs
in the seven¬
most help'ul to business and is an
ond quarter, $231 billion; the third in 1952, although the increase by
ties.
In
view
important reason for today's pros¬
quarter, $231.3 billion, and in the the end of 1952 will be no more
of this fact, let
perity.
than 3 to 4% from the beginning
fourth quarter, $232.4 billion.
us
pick
out
of 1952, assuming no shooting war
Consider then the far-reaching
Government
spending
is
the
one
of
the
effect of a 20% decline in mar¬
number one factor.
Last quarter takes place between Russia and most
signifi¬
the United States.
riages for the next five years. This
of 1951, defense spending was at

influencing the distribution of

Pome furnishings

in

There is no
standpoint of
supply of raw material.
In the
soft goods phase of textiles, the

higher

Economist predicts first quarter activity

First

recover.
;

President, International Statistical Bureau

tors

to

Production

•

ment, produc¬
tion,
income,
ond sales.

General eco¬

nomic

trends

I expect to

be

favorable.

Contrary

to

the opinion

of

observ¬

some

cant events of

who ex¬
pect a sharp

$41 billion; in.
Savings in 1951 were at an allof 1952, it will be time high, and I assume in 1952
$47 billion; the second quarter,. there will be some slight improve¬
$52 billion; the third quarter, $54 ment. Savings in the first quarter
billion, and the fourth quarter, of 1951, on an annual basis, was

ers,

secession

in

I

year,

that

believe

the first quar¬

pe¬

riod and that trends and averages
will be

stimulating

be

that devel¬

the

to

business

this

trend

These will not reach

There

year.

in

late

the

Distribution

of

we

goods,

including
but

ing,

not

only

automobiles

SUpply

of

depend entirely

levels
ceed

of

the

of

rate

of

existing

Jan.

The
11,

Merchandise

Mart,

believe

in

1952.

20%

below the

high

in

position

a

industry,

of

year

tion!

of

The television

the

and

durables

will

be

less

anyway,

relation to the total.

wash¬

the

same

the

as

1951.

in

1952

Furniture

decline

was

the

greatest

in

above
the

industry
1930-31.

of

that

was

the

But, in

fabric

in

lowest

my

that

since

opinion, the

twenties.

That's
—

good

a

suggestion

time

any

especially when it's hard

find

to

unlisted

in
the

buyers

securities
or

sellers

of

but

the

the

will

five

An

this

Dean

Witter

&

Co.,

publicly offered a
200,000
shares
of
Grocers

5y2%

101

offices

thousands
.

issues

or

have

Corp.

new

65,000

of

customers

quotes you want.

What's more, we're
we

can

help, just

miles

of

coast-to-coast

and
-

.

.

private
.

can

dealers
-

.

wire

contact

for

the

that

link

literally
particular

;

marriages.

business will

the subject of birth control. (

on

Vincent M.

to

do it.

So,

during

This implies

group

The

proceeds

be

our

value

used

at

wholesale

a

age.

The

than

120

aU-time

high

females

place in 1946.

age

(including

over

This

broad

over-the-counter
for

the

that

moving

quarters

at

on

to

Feb.
new

years)

war

was

than

only

did

this

brackets.

time

you

think

J.

with

Williston

R.

Call Merrill

Lynch

of

and

secu¬

the

'40s

under 35

70 PINE STREET

ing

the

least

Graves &

the low

ness

in Miami.

Offices in 97 Cities

Now
LONG

Partnership

BEACH, Calif.—Halbert,

mar¬

fewer

lower

girls

in 1940!

marriages

five

next

today

single

had

we

expect

20%

have

we

years

than

to

the

Ralph
Both

W.

were

Murray

partners.

as

formerly officers of the

firm.

7'!7'v

I,

dur¬

be at
Established

recent

-Broadway, New average of 1.7 million—a loss of
City.
They also announce about 350.000 marriages each year!
that the teletype number will be
..Never before in our history have
changed to NY 1-3184 and the new we faced such a dismal
9-5577.

Importance

Everyone is
importance

Barclay Investment .Co.

5, N. Y.

>

1856

52

marriage,

Chronicle)

H. Hentz & Co,

of

Marriage

Members

to
/

aware

of

the

but

its

of the social

institution

influence

a

man

and

woman

of

New

business

in

Chicago.

must

York

a

Exchange

Curb

Exchange

Cotton

Exchange

Exchange,

Board

Orleans

new

Stock

-

of

Cotton

other

■?-'

Inc.
Trade

r

Exchange"

r

Exchanges

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

4

own

York

Chicago

on

Barclay Investment Co.,. 39 1 housing is needed. This largely
Mr Carley accounts for today's
shortage of
formerly with Link, Gorman, houses to rent, and why so many
Peck & Co!, and Webber, Simpson newhouses are
being built.
In
& Co.
In the past he conducted ibuilding the
house, the contractor
his

New

Commodity '

South La Salle Street.

was

York

And

marry,

j family, unit is created.

with

New

New

business is often overlooked. When

CHICAGO, 111. — Williafh M. ;
Carley
has
become
dissociated

NEW YORK

411

York

(Special To The Financial

Merrill Lynch, Pierce, Fenner & Beanb

Co.,

connected
with
Gordon
Co., and John L. Ahbe-

merly

;

high marriages

that

than

therefore,

4, 1952, they
and larger

is

2,500.000

over

trading
stocks/ an¬

William Carley Joins

Trading Department

&

Mr. Doherty was for¬

71st Street.

of

accelerated

Business

99-

Fla.—Vincent

BEACH,

The result of low births

of the '30s. and the

in

dollar

than

was more

MIAMI

M. Doherty has become associated

riage rate of the '30s, but it also Hargrove & Co., 115 Pine Avenue,,
depleted our normal reserve of is now doing business as a part¬
single girls in the "above 19 age"
nership with John B. Halbert and!

New Quarters
in

1,000

15—took

during the boom
the '20s. .7; ,7//"'•
Not

and * specialists

Vincent M. Doherty

(Special -to The Financial Chronicle)

& Company.
In the past he con¬
during the decade of the '40s ducted his own investment busi¬

higher

Stanley Pelz Co. in
dealers

more

—

double the 56 marriages per thou¬
sand in 1932. Moreover, the aver¬

to

products.

Stanley Pelz & Co., brokers

mar¬

marriages for each

unmarried

The company manufactures and
of

Future Marriages

on

riages which took place during the
prosperous
'40s.
Especially
did
of
couples then marry at a younger

ing capital.
distributes

businessman

future is the great number of

preferred stock

will

factor. Think what
every

prospect.

any

Doherty

Joins J. R. Williston Co*

telephone will be Bowling Green

happy

I might add that the

be affected in the long run by the
recent Roman Catholic emphasis;

25

issue

par

to

-




in

important influence on
marriage rate for the near

Consolidated

$50

cumulative

Jan.

on

one

means

Effect

through 1961) at $49
share and accrued dividends.

per

are

from

the

Another

(convertible

nounce
we

things we can do to
coming big slump

are

reading this column.

underwriting syndicate

markets

Why?

in

girls

marry

years.

this age

in

due to this

headed by Kuhn, Loeb & Co: and
A. C. Allyn & Co., Inc., and in¬

rities

you want.

Because

These

remarkable

a

rate compensate for

Lyncli"

severe

nearly 150,000 marriages annually

line

Call Merrill

There

counteract

of the

rate

repetition of the

a

depression of the '30s is necessary.

alone, our
in marriage potential during t^e next
five years has been reduced by

years.
We have had a major retire 21,307 shares of 5%
pre¬
depression in the woolen industry. ferred stock and to increase work¬

Production

is

group

next

that

20

Chicago,

This

Two-thirds

.

cluding Bear, Stearns & Co. and

production

great

as

figure is just
1951.

as

believe

at¬

I do not

fact.

sorry

increased

was

fense

1952.

ft

was

little

new draft ruling
regarding child¬
During 1933, the de¬ less
couples could also be a help¬
pression - low,
one-third
fewer ful
factor.
It will be interesting;
babies were born than during the
to watch how much

The

production

average

standpoint of supply, even in a de¬
economy.
The carpet and
rug industry has declined in 1951;

ex¬

talk
by Mr. Zelomek before the
International Merchandise Market meetig,

11 don't

radios, and 5,500,000 television

will be

*A

*

public.,, The

selves

cutbacks

sales will be greater than in 1951.
There
is no
problem from the

disappear¬

appliance

nickel.

Furniture

production,

practical

a

per

population.

too

pay

twenties:

unless it wakes up, will find them-.

Preferred Slock Offered

will

prospective

on

232.

will produce over 2,500.000

sets.

the policies of

income, is likely to
1952

leading to
ance

based

be

Consolidated Grocers

about

the Government.

Demand,

material

be

average

may

5,300,000; 3,300,000 in 1951, and
3,000,000 in 1952. I doubt if we.

000

hous¬

items

such
on

1952

machines; 2,000,000 vacuum
cleaners; 2,500,000 toasters; 7,500,-

appli¬

and

rate.

only 17.4
This

at

We

tention to the birth rates.

was

birth

in

ing

duction of many types of durable
ances

production

refrigerators

1949-50

the pro¬

on

will

dollars

will produce more than 3,000,-

000

ings, however, will be influenced
in a more important manner by
special considerations.
Chief of
these is the limitation

billion

and

and

furnish¬

home

about

competition for that dollar. Even
supply of steel, copper, alu¬ without the
seeming shortages in
The three most
1952, my own opinion is that the
critical items are copper, alumi¬
percentage
spent
on
consumer
num

This

year*

low

averaged

thousand

minum and nickel.

year,
or early
expansion will
more than offset any minor weak¬
ness in other areas, including pri¬
vately financed capital goods.

quite

mext

Births

in the

peak until

a

1951

220,

was

for material and labor arfe the key

five

of

The

payments

defense

the thirties

abnormally

an

standards.

One of the most important

dise, customers have been back¬ few
1933 babies are today's 18-19
ing
away,
but
on
promotional
year old youths.
Because of, the
the annual rate between the last
goods they will come in.1
low
birth
rate
of
the
thirties,
quarter
of
1952
and
the
last
The amount of dollars spent for
there are one million fewer fe¬
quarter of 1951, which will be home
furnishings since the end of males in the 14-19
age group today
offset by an increase in the annual
the war has been abnormal / in
than there were in 1940, despite
rate
of
$16 billion in defense relation to the total
spent by the a
14%
increase
in
total popula¬
spending.
American

oped in 1950. If this possibility is
actually realized, then all esti¬
mates of next year's averages, in¬
cluding my own, will be too low.

Expanding

Roger W. Babson

few

next-

characteristics of

You have a

lion, and $24 billion.

decline

1952, although probably not to the

speculative extremes

ef¬

during the

years.

goods expenditures, for plants,
The last quarter sales for 1951
machinery and equipment. were better than the stores had
The last quarter of 1951 was $29
expected. The Christmas business
billion; the first quarter of 1952 in units was greater than 1950.
will be $30 billion. Then there will The reason for it is
because of
be a decline to $28 billion, $26 bil¬ low
prices. On regular merchan¬

business in

to

can
make
business
slump
and
keep it down. We are too com¬
placent with our present high pro¬
duction
and
high
consumption

ago

new

However, the general business
pattern can be, and quite possibly
will be, influenced by new foreign
developments.
Foreign develop¬
ments are more likely than not
to

analyze its

the

tal

favorable thereafter.

more

years

and

probable

billion; the second quarter
was $20 billion; the third quarter,
Decline in Capital Goods Outlays
$22 billion, and the fourth quarter
There will be a decline in capi¬ was $21.3 billion.

W. Zelomek

A.

20

fect

$8.5

$57 billion.

ter will be the

slowest

of

rate

the first quarter

the second half

of the

annual

an

buy plumbing, lumber, steel,:

i

CHICAGO
—

DETROIT

PITTSBURGH

GENEVA, SWITZERLAND

Number 5086

yolume 175

d

.

Th*

.

commercial arid Financial Chronicle

(479)

of

and

/

Commenting on business outlook, former ABA President points
out:
(1) rearmament program and large corporate capital

the

does

How

look

banker

business today? First, let me
it

that

clear

of the

because

at

make
pre¬

vailing uncertainties it is impos¬
sible

to

make

definite

pre¬

dictions.

Who

i

smart

s

enough to

say

what

the

in-

t

ational

e r n

not
on

cause

their

Capital

F.

the

expendi¬

Raymond Peterson

'

character.

in

demand for

They,

but until

too,

materials

raw

factory is

a

line

be?

But

already be

can

Briefly,
business as

seen.

the banker looks upon

(1)

So long

as

the rearmament

and so long as capital
expenditure by corporations are
as
large as envisaged at present,
business activity is bound to be at

program

high

a

The

level.

present

year,

therefore, should be marked by
level

a

The
bring

(2)

rearmament

in

its

program

disloca¬

wake

will

tions.

Some

find it

exceedingly difficult to ob¬

tain

manufacturers

certain

of

types

defense

will

ness

able to

are

orders, their busi¬

suffer.

certain

In

tions

of

ment

will prevail.

the

mate¬

raw

rials, and unless they
obtain

sec¬

unemploy¬

country,

There

will be no shortage
the soft goods industries. The

(3)
in

productive
goods

Wages

Y-

high

are

,

and

v.;

are

in wages

and

these

Now

acter.

others

three'

could

capacity

soft

the

of

has

industries

the

on

increased

can

be

ing

1951

forces,

able

to

the

only

whole

portion

small

a

The

output.

soft

goods industries, therefore, should
in

remain

buyer's market, and
competition is bound to be keen.
(4)

The demand for credit will

be

business

of

high

cost of

and

partly

activity

will

because

doing business is

so

the

much

greater today than it was ten years
ago. The banks of the country are
strong, their assets

liquid, and
if
not all of them, will be in a posi¬
I

dare

tion

to

are

that most of them,

say

meet

tion.

and

to

inventories

the

of

the

legitimate

(5) Money will not be
obtain

about

this

as

nine

the

is

was

the

months
result

market

re¬

of

as

case

easy

only

ago.

Partly,

the

flexible

1951, and partly it is the result of
the sharp increase in the demand
for credit by industry and trade.

(6)
will

The

problem

continue

There

to

of

remain

inflation
with

us.

this fact.

Dur¬

cases

the

people

defense

were

but
last

devoted

than

effort

is

to the

envisaged

frightened. They rushed in to buy

at

present, the standard of living

everything in sight with the result

of

the

to

remains

that

have

we

to

watch

natural

developments from day to day and
stand

ready to change

ions.

Nobody

in

these

opin¬
uncertain

tive

that the busi¬

say

we

have learned

few years.

If

a

lot

are

we

This advertisement is neither

■'<v

ought to

the present

overcome

for

solid future.

a

American

Four With Bache & Co.
(Special

although we are
The inven¬

resources

genius of
and

operating,

America is still
products are

new

to The

Chronicle)

Financial

MIAMI, Fla.—Estelle Alexander,
Milton

D.

Bernstein, Alfred Val-

and James B. Williams have

zone,

'

.

an

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

offer to sell,

The

any

of these securities.

*A

"

!

the

at

$125,000,000

end

The

billion.

$70

at

January 30, 1952

NEW ISSUE

substantial

built-up

is

still

increasing.

American in¬

genuity is great, and our system
of private.enterprise can meet al¬
most any reasonable demand for
goods and services.
(b) Taxes are high,
in this

the

in

be

•

see any

decline

the

imme¬

in

Dated

Due

February 1, 1952

February 1, 1964

On the contrary, we

if

lucky

credit

no

further

in¬

in

is

have increased.
banks in the country

the

position to meet the legi¬

a

of

demands

timate

trade,

industry

and

would-be-borrowers

many

will not be able to obtain the
commodations

they

is invariably

money

Price 100% and accrued interest

tighter

becoming

rates

money

While
are

cor¬

As I have already stated be¬

(c)
and

to

in taxes takes place.

crease

fore,

of America

Sinking Fund Debentures ^

and all of

and

us

burden

tax

diate future.

will

to

I do not

porations.

Aluminum Company

know what the tax

room

means

ac¬

Tight

seek.

anfj-infla-

an

Copies of the Prospectus may be obtained from any of the several underwriters,
including the undersigned, only in States in which such underwriters are qualified to
act as dealers in securities and in which the Prospectus may legally be distributed.

tionary force.
Which

of

prevail?

these

Will
be

pressures

two

the

forces will

inflationary

to express an
as

forecaster.

merely
comes
can

total

on

from his

over

see,

these

or

neither.

a

desk

his desk.

as

I

banker who looks

a

business

economist

am

As far

increased

a

Blyth & Co., Inc.

Eastman, Dillon & Co.

Glore, Forgan & Co.

Goldman, Sachs & Co.

Harriman

upon

and what
as

I

great deal will depend
not

Kuhn, Loeb & Co.

a

am

military expenditures.

are

Corporation

were

opinion, I would be

an

I

If I

The First Boston

the

than

stronger

anti-inflationary forces?

If

Ripley & Co.

Incorporated

Kidder, Peabody & Co.
Merrill

Lehman Brothers

Lazard Freres & Co.

Lynch, Pierce, Fenner & Bcane

Smith, Barney & Co.

very

both

Stone & Webster Securities

Corporation

Union Securities Corporation

White, Weld & Co.

deflationary

the

*An address by Mr. Peterson before
general
assembly
of
the Dean's
Day
Home-Comin? for Commerce Alumni of
New York University,
N. Y. C., Jan.

26, 1952.




in the

Willing

difficulties and lay the foundation

short in certain items.

our

can

apply the lessons to the future,

we

people will still
that prices rose.
Whether or not be higher than that of any other
another unforeseen event will oc¬ country in the world.
cur, I do not know.
But the fact
(2) We have an abundance of

was

inflationary and sharply, then commodity prices
forces operating in should level off. To be sure, biereconomy.
Which, of the two tain increases are bound to 'take
will prevail in the immediate fu¬
place. This conclusion is based on
are

both

the standard

should have to be

one

not

point

cycle has ceased to operate,

ness

the

estimated

year

classified

policy, adopted

by
the Reserve authorities in March,
open

living of the
high, and even if
again after the Chinese Com¬ ductive capacity

where

and

people is very
more of the pro¬
of the country

In any event,

of

the Korean War.

guns

do

the

productive capacity of the country

quirements of industry and trade.
to

butter.

the

more

less guns and more

I

an

increasing de¬
mands for rearmament, huge de¬
mands from the civilian popula¬

a

continue to be strong, because the
volume

In

have
or

millenium.
have reached

we

economy

American industry
meet

rapidly during the last few
burden
years,
and the national defense

of

We have

after

mentioned

be

from

seen

very

absorb

people.

happen

out¬
break of the Korean War in 1950,
seen

should

we

less butter

psy¬

the

think

days can be positive about any¬
daily being developed.
become associated with Bache &
inflationary thing. It is possible that the inter¬
(3) We have an abundance of Co., First National Bank Building.
of the national political situation in 1952
skilled
labor,
although
certain Mr. Bernstein and Mr.
country. There are, however, also may become more serious than in
yalzone
shortages in one and the other
deflationary forces which should 1951. .But, as we and our Allies
were formerly with J. A.
Ray vis
industry have developed.
be considered. They are:
gather strength, it may lead to a
Co., Inc.; Mr. Williams was with
(4) Th'e financial position of our
change in the poliey. of the Soviet
A. M. Kidder & Co.
Deflationary Forces
:
*
dictators, and the international large corporations is strong, and
(a) The great productive capa¬

exercise

will

pressure

us

will

chology of the
this

change the

can

reach

business

of

substantial volume of retail trade.

will

unforeseen event will take

munists entered

"Y: Y;Y;d

city of the country which is stead¬
activity,
ily increasing. How great the pro¬
practically
full
employment,
a
ductive capacity of this country is
large
disposable income and a
high

no

place which

and

too,

follows:

that

commodity prices will quantities of civilian goods. For
higher than the present us it is not so much a question of
Of course, all this assumes guns or butter, but rather whether

completed nothing is available for

matter

no

that
go

sale. ;

(c)

these uncertainties are,

not

level.

expenditures
in
are also infla¬

tionary
a

lieve

steadily increasing. If the increase
is accompanied by a cor¬
the business man and the banker responding increase in productiv¬
must have at least an idea where ity, it is not inflationary in char¬
we are going.
This idea, to be sure, acter. If, however, an increase in
merely
leads
to
more
may be vague in character—we wages
may not know a great many de¬ money chasing fewer goods, it is
tails—but I believe the broad out¬ definitely
inflationary
in char¬
will

election

a

produced
automobiles,

large deficit

a

create

Presidential

how great

Either

ease.

have

we

stages

and .labor,

tell

what the out¬
of

rearmament

lead to

their initial

sleeves, or

come

the
may

(b)

the
have

can

easy

of the Federal Government.

year? Who can

who

to

a large number of as a practical banker,
these are and foremost at the welfare of the
washing
machines, the conclusions I would draw:
country and less" to considerations
Inflationary Forces
television sets, radios and all kinds
of their selfish interests. If all of
(1) Our productive capacity is
us act in-unison, if we
(a) The rearmament program, of other things.
fully real¬
great and is steadily increasing.
partly because it creates a great
.(4) There is a buyer's resistance We have a technical know-how ize the great dangers that confront
demand for raw materials and la¬ as is best evidenced
the
free
world,
if
we
place
patri¬
by the fact unrivalled and unmatched in the
bor without at the same time cre¬ that savings are
increasing. When¬ world. We have the capacity to otism above selfish interests, then
ating commodities which enter the ever savings are increasing, it is produce large quantities of de¬ we will overcome the present dif¬
consumer market, and
partly be¬ an indication that the people be¬ fense articles as well as huge ficulties. To be sure, we will not

tures

coming

up

may

bound

in of it all I believe that business diate task is to maintain the in¬
large; and if we are activity will be on a high level, tegrity of the dollar to prevent
good weather, we that employment will be plenti¬ further
inflation.
This
can
be
ought to have good crops in 1952. ful, and that the year 1952 on the achieved partly by economy on
whole
(3) The supply of hard goods
ought to be a good one. It the part of the government and
in the hands of the people is con¬ is impossible to look beyond 1952.
partly by economy on the part of
siderable.
To a large extent the The human vision is always nar¬ the entire
population. It means
pent-up demand created during row, and the economic visibility, that all individual groups in the
the war has already been met. We to say the least, is very low. How¬
country—labor, business, bankers
built a large number of homes;, ever, again looking at the picture and farmers—have to look first

to state and will
the magnitude of the
inflationary
forces prevailing at present are:

the

what

is

with

blessed

defense program. The

tion will be in

Russians

tensioh

.

political situa¬

tell

items

and not

will be

1952

still quite strong.

depend

soft goods

as

tain that the acreage cultivated

cullays if kept up, will keep activity at high level; (2) rearma¬
ment will bring dislocations and some shortages, and
(3)
demand for credit will be strong and money rates higher.

ture is

a

considered

By F. RAYMOND PETERSON*

Sees inflationary forces

other

event the banking structure is thorough¬
far-reaching ly sound. Looked at from the
effect on business psychology and purely economic
utilizing scarce materials.
point of view,
-(2). There is no shortgage of on the psychology of the ultimate there is no need for pessimism nor
food.
Crops during 1951 on the consumer. In looking toward the is there any need to be frightened
whole were good, although not as future, therefore, I can see.a great by what our enemies
may say or
large as hoped for. It is quite cer¬ many uncertainties, but in spite do. As I see it, our most imme¬

The Banker Looks at Easiness
Chairman, First National Bank and Trust Co., Paterson, N. J.

of

number

11

the

following considerations:

.

(1) As I said before, the supply
of
no

soft

goods is large. There is
shortage of textiles, of shoes,

Drexel & Co.

Salomon Bros: & Hutzler

Hemphill, Noycs, Graham, Parsons & Co.
Wertheim & Co.

Wood, Struthers & Co.

/

12

The Commercial and Financial Chronicle

(480)

months of 1951, together with the
figures for the comparable period

Life Insurance Investments in 1951

of

of

Investment

Research

classifies legal

holdings and approximately $1 billion of

bonds, offset in part by decline V
holdings of utility and railroad issues. Mortgage loans show
$700 million increase in first nine months of 1951, but contrary
to

expectation, holdings of stocks declined $164 million.
of

United

all

States

Many of these ratios have
changed sharply from the pro¬
portions that prevailed at the end

1951.

of

tute

pre¬

United

war.

States

Gov¬

Insurance and

for

the

miscellaneous bonds for only 4%.
The 1951 statistics are based on

Life

In¬

Asso-

surance

ci ation

i

America
dicate

10

about

billion
end

of

the
com-

pared

with

the

than

less

forth

in

the net

segregation

in

and

in¬

1950.

Assets increased

by almost $4.5

1951 but this was not
sufficient to provide all the funds

United

all

of

insurance

bills and notes

were

doubt

up

build

to

outstanding

a

companies

required

by

home

buyers

and

no

reservoir

of

secutive

year.

additional

billion, of which preferred stocks
account

for $1.5 billion

and

from

com¬

The necessary

funds

the

stocks for $900 million. Real
estate is estimated at $1.6 billion.

obtained

were

liquidation

States Government

of

United

securities.

mon

investment

-Table

I

shows

distribution

the

while

assets

United

States

ments,

Gov¬

now

bonds which

account for 17% of assets and

change for

public utility bonds for 16%. Pre¬
ferred

and

stocks

common

computed jointly by the

Public

were

obtained in

Acquisitions of real estate mort¬
amounted

there

in

was

to

conventional

loans,

Next

in

volume

of

industrial and

Total
U.

the vol¬

life

volume fell

miscellaneous
the

below

All

Amount

that

nine months of 1950.

bonds

of

Public

first nine

U.

v

Outstanding

S.

Government

State,
J

county and

"Canadian
"Other

Total

871,442,000

1.6

1,446,877,000
20,198,000

2.6

municipal.

government.—

government.-"

t

Railroad

v

Public utility

?,

30.2

Government

foreign

:

Industrial

and

34.4

3,002,433,000
8,740,986,000

5.4

Real

a

year

15.7

7,150,546,000

Stocks:

acquired

Another

Public

the

Total
U.

bonds
mort¬

amount

is

of

-

...0

outlet

entire

for

in

the

life

in¬

life

which

.Farm
—

Total
___

Outstanding:

Total

200,000,000

1.8

1,503,000,000

2.2

24,065,000

.0

22,000,000

.0

29.8

$16,065,607,000

25.1

$13,775,000,000

20.1

5.1

3,186,964,000

5.0

4.8

16.4

10,587,188.000

16.5

3,275,000,000
11,200,000,000

16.4

.14.6.-j .9,525,869,000

14.9

11,500,000,000

16.8

61.5

$39,750,000,000

58.1

$11,050,000,000

85,514,000

345,829,000

83,925,000

4,117,659,000

4,390,145,000

4,480,314,000

III

Investments—1950

1951

and

(000's Omitted)

1,585,000

bonds

__

were

of

—517,000

1,194,000

Net

Change

2,172,000

978, ooa

470,U00

367,000

203.000

—164,000

3,318,COO

4.022,000

704,000

—13,000

256.000

179,000

166,000

518,000

391,000

414,000

■23,000

9,833.000

6.945,000

7,902,000

957,000

2,019.000

1,085,000

♦6,313,000

366,000

296,000

318,000

2,385,000

1,381,000

6,631,000

12,218,000

8,326,000

14,533,000

___

billion

—$54,000

711.000

4.898.000

notes.

bonds

$2.9

1951
$214,000

1,228,000 *

*

1,795,000

______

1950

$268,000

♦5,228,000
/

.

22,000

5,250,000
'

6,207,000

2%%

Treasury Investment Series B bonds of 1975-1980
acquired in exchange for 2\:z'h Treasury bonds of
June and December,
,

Observations..

.

In his closing
paragraphs Mx. Janeway says: "This book has
attempted to explain the how of Roosevelt's greatness by telling
the story of Roosevelt at his
greatest—as War President and

defies

ness

over

America's homefront.

The how of his great¬

comparison

as it will ever
defy duplication.
Great
following in his wake, and their advisors, will never tire of
speculating upon his motives, his strategems, his
assumptions, his

luck and his faith."

But

neither has the author made
up his mind
fully about the proper weighting of his motives and strategems—
nor even whether he was
wholly great. Rather is Mr. Janeway's
appraisal a tribute to an interesting and glamorous
personality, v

Important Conclusions
In

event, Mr. Janeway's conclusions in other
directions,
both stated and implied, are more
important and constructive.
That, in the first place, no matter how confusing may our current
any

bureaucratic bungling be, we are nevertheless far
better off than
we were on the eve of World War II.
That

the

That

industry did
(At

called for

one

nation's
a

.2

128,211,000

.2

125,000,000

.2

.9

671,589,000

1.1

956,840,000

1.7

750,000,000

1.1

1,101,176,000

1.8

1,303,259,000

,2.0

1,475,000,000

2.1

2.6

$1,717,634,000

2.9

$2,103,059,000

3.3

$2,350,000,000

3.4

1,137,559,000
11,768,342,000

1.9

1,327,428,000

2.0

1,525,000,000

2.2

people

through

came

staggering amount of

guns,

by its contract.)

the

most

to be embodied

bay]

producing

tanks, and planes.

miraculous job against-all odds and in
every
point General Motors produced 100 times the guns

That

an

inflationary free-for-all for.

the entire community was a
major factor in
But

in

a

significant

in

his

message

from

our

success.

Mr.

...

Janeway

seems

closing lines: "[to keep Soviet imperialism

we shall have to be more total than
any other totalitari¬
We shall need to invoke those drives of
the human spirit

anism.

which totalitarianism strait-jackets.
ization will have to

512,455,000

Washing-;

despite the

madhouse,

16.1

-104,003,000

1.8

$10,833,310,000

19.5

Policy loans and premium notes
J.

'

admitted

assets—.—

Total admitted assets,
"Includes

•i

Total

.,7

17.7

____

if

Outstanding

-\2

989,904,000

estate

Other

% of

99,651,000

9,843,406,000

___

,

Cash

—2,290,607,000

millions behind
Will

we

be driven

whose momentum Roosevelt
followed."

be

abiding by the true implications of

The outcome of

a

bearing

answer.

on

the

Our achievements of
organ¬

by the anonymous energies of the

this

certain event Nov. 4 next will have
.

..

an

finding?

important
-

•

^

Other

Real

—1,747,225,000

his generation, the successful pragmatist and
improviser who used
a real method in his
bungling.

at

Mortgages:

118,604,000

—1,272,064,000

Continued jrom page 5

—Est. Dec. 31,1951—
Amount

,$39,365,628,000

of

acquisitions

1967-1972.

<0

371,967.000

$1,428,458,000

—

_

through hard work

1

839,274.332,000

misc.

bonds

govt,

Total

insur¬

% of

.

—2.409,211,000

83,944,000

__

few

Amount

.

—1,831.169,000

183,935,000

bonds.

govt,

♦Includes

can

1.8

,

—1.455,999,000

that

a

2.3

2.4

and

loans

Govt.

pinch.

.J.8

186,670,000

6,686,996,000

private

Total

common

small

so

21.0

65.9

___

Total

20,017,000

.

S.

Other

im¬

on

of

$13,459,211,000
1,151,452,000
1,430,879,000

12.9

utility

Other

25.6

173,681,000
5,791,541.000

estate

declined

both

volume

The

—December 31, 1950—

Total

$37,978,866,000 ..i68.4

Railroad

;

!

Outstanding
$15,290,380,000
1,052,336,000
1,450,099,000

bonds_

probably

stocks

205,414,000

$311,000

men

year.

3,372,992,000

197,807.000

assets

presiding genius

reflects

3,196.107,000

192,167,000

182,745,000

assets

cline in the acquisition of both
preferreds and common stock

.

bonds

Policy loans and premium

ton

$17,812,832,000
3,016,604,000
9,764,502,000
8,680.394,000

miscellaneous.

Total

.0

$19,084,896,000
-i

_____

Total

$1(5,746,379.000

in

utility

Industrial

corresponding period
of last year.
It should be noted
that companies include stock ac¬
quired on conversion of deben¬

heavy

246,941,600

2.072.591,000

bonds

Mortgage

the

the

1,974,131.000

385.425,000

Stocks

somewhat from last year.
In respect to preferred

during

612,812,000

843.475,000

$88,036,000

First Nine Months

Acquisitions

also

(Estimated)

United States Legal Reserve Life Insurance
Companies

Railroad

financing undertaken by the
insurance companies during the

ex¬

—December 31, 1949—
Amount
% of

% of

to

822,686.000

Year 1950

$1.2

railroad

,1950

portfolios

Legal Reserve Life Insurance Companies

•—December 31,1948—

was

rental

289.176,000

TABLE

$711 million as compared
billion during the first

—

other

Acquisitions

Investments, by Classes, 1918-1951

Bonds:

first

5,304,209,000

insurance

$11.6 billion, up from $8.3 billion
aggregates for the
during the comparable period of surance business.

States

the
year

corre¬

TABLE I

United

during

1.529,843,000

bonds...

government
and

Increase

.

bonds

government

acquisitions

decided difference

All

purchased

1.023,516,000

-

private

Total

companies,
as cgmpared with $1.2 billion dur¬
ing the first nine months of 1950.
Large amounts of public utility
bonds also were acquired but the

of

bonds

—

Government

Other

gage

a

Statistics for the

estate

quarters of this
intended for lease or

—!

into

moved

the

with

S.

About $2.2 billion of these

bonds
of

misc.

estate

VA

and

ume
acquired during the
sponding period of 1950.

were

bonds

and

_

Cash

-

1950.

constructed

sources

sizable propor¬

a

real

$170,360,000

Policy loans and premium notes

considerable increase

a

spring. Even after deducting these changes in the
policies of
bined comprise about 3% of assets
bonds, however, acquisitions for medium
sized
companies
&nd real estate only a little over the first
nine months amounted to make a
,

the

billion

$4.0

loans more«than doubled

com¬

;!, {*Part of report by Mr. O'Leary to the
membership of the Life Insurance Asso¬
ciation of America, Dec. 11, 1951.

its sta¬

in

$14,166,000

—

Mortgage loans

gages

and

like amount of longTreasury 2V2% bonds last

term

year.

bonds

utility

Stocks
Real

proved yields obtainable

America, will include $2.9 billion
of
Treasury
Investment
23A%

only 16%. In¬
miscellaneous bonds

and

as

Institute of Life Insurance and the
Life
Insurance
Association
of

ernments comprise

dustrial

This year acquisitions of invest¬

-

three

Industrial

commit¬

tures in their reports to the Asso¬
ciation and the Institute. The de¬

Acquisitions of Investments

5

pf .assets for the years 1948
through 1951.
As can be seen,
mortgages
compromise 28%
of

of

or

through Sep¬
(Investment
is the principal com¬

estate

attempt

that

appears

1949

$144 million

in all assets.

crease

it

tion

of

last

not

financing, but from other

the $153 mil¬

acquisitions

Railroad

generation ago. business
enterprises in the form
stocks,
Public utility bonds total $11.2 of
mortgages, bonds and stocks. approximately $94 million were
billion, an all-time record for Holdings of real estate
mortgages acquired, an amount considerably
investments in this sector of the
increased by $3.4 billion," indus¬ below the
$223 million recorded
economy. The bonds of industrial trial and
miscellaneous bonds by for the first nine months of 1950.
and miscellaneous enterprises rose
$2.0
billion, and public utility Despite the passage of enabling
sharply to $11.5 billion, and now bonds by $613 million. Increases
legislation in New York State
comprise the largest bond hold¬ also appeared in all the other as¬
during the year, only $109 million
ings of the companies.
On the set
segregations
except
United of common stocks moved into the
other hand, United States Gov¬
States
Government
obligations. portfolios of the insurance com¬
ernment bonds, estimated at $11.0
All told, increases totaled
$6.9 bil¬ panies during the first three quar¬
billion, declined for the fifth con¬ lion, $2.4 billion more than the in¬
ters as compared with
a

"':y Stock holdings approximate $2.4

short of

does

tistical reporting to assemble data
on so-called "purchase-leaseback"

1951

acquired,

ments.

ago

■r-

assets

life

States

distribu¬

corresponding

1949

tion

such

as

bonds.

compares

each

the

billion, and now exceed billion in

total

the

in

in

creases

O'Leary

estimated

$19.5

of

Dr. James J.

States

occurred

set

are

II, which
with

United

which
in the

year

assets

increase
1951

are

of

Table

Mortgages
at

for

records

companies.

changes

during the

1950.

of all

reserve

tion

of

end

and

companies,

assets

The

billion

$64.0
at

legal

the

as

actual

130

of the

$68.5

at

months'

industrial

and

which at
the end of 1950 accounted for 96%

-

total

assets of

year

of
n

15%

of

real

during the first three quarters of
the year.
Some decline occurred
for 46% of assets at the end of
in the acquisitions of FHA's, but
1945 whereas mortgages accounted
only

10%

tember

ernments, for example, accounted

Life

of

the

about

funds with which to accommodate

2%.

legal reserve life insurance com¬
panies reached a new high in

Preliminary estimates
pared
jointly
by the Insti¬

of

compared with $1.1 bil¬ ponent of the real estate figures business corporations at the time
during the same period of shown in Table III.) The Associa¬ of acquisition.
1950.
Virtually all of these 1951
■vtable ii
acquisitions consisted of securities
Net Increase in Investments, 1949-1951
having a maturity of less than one
year.
The available data indicate
All United States Legal Reserve Life Insurance
Companies
that
large amounts of Treasury

in

assets

of investment

Acquisitions

lion

industrial and miscellaneous

The

de¬

during the first nine months, lion

billion

portant changes in assets and in acquisitions during 1950 and
1951. These changes indicate over $5 billion increase in U. S.

Government bond

securities

of the year, acquisitions
(exclu¬
sive of the exchange) totaled $3.4

life insurance holdings and reveals im¬

reserve

Government

clined

statistician

years,

estate.

last year

States

Life Insurance Association of America

In tracing life insurance investments in recent

funds consists

real

and for the full year, real estate amounted to only $138
million
1950, are shown in Table III.
during the first nine
Although
holdings
of
United months of this year, thus falling

By JAMES J. O'LEARY*
Director
/

ance

Thursday, January 31, 1952

all

political

1,054,012,000

1.9

2,056,904.000

3.7

909,778,000

1.6

i

1,249,954,000

2.3

$55,511,882,000

100.0

,

19.7

14,774,580,000

23.1

17,950,000,000

26.2

$12,905,901,000
1,246,779,000
2,239,649,000

21.6

$16,102,008,000

25.1

$19,475,000,000

28.4

2:2

2.4

907,740,000

1.5

1,337.506,000

*2.2

1,585,933,000

2.5

1,650,000,COO
2,600,000,000
1,025,000,000
1,650,000,000

$59,629,541,0001100.0

$64,019,686,000

100.0

2.1
3.8

:

1,444,586,000
2,413,330,000
1,005,142,000

.

3.8
1.6

$63,500,000,000

Minneapolis-Moline Is
Distributing Calendar

3.8
1.5

^

2.4

;

One

lated
now

100.0

of

the

calendars

in

servation

Copies

widely circu¬
the

manufactured by the company

and includes features
and
may

on

soil con¬

safety.
be

obtained

from

Minneapolis-Moline Company, Box
being distributed by Minnea- 1050, Minneapolis, on request.

polis-Moline

subdivisions.

most

ery

_

dealers

world

and

is

—

distri-.

s ?

;
.

;

*,The al?ove ,dat* represent statement

elation of America-from the following
>.

1918,

1949,

19o0—Compiled

from

values

compiled

by the Institute of Life

The

Spectator

estimates

total




based

admitted

on

actual

assets

records

of. all

the

Insurance Year Book—Life Editions—and from
......

1961—-Preliminary

and

sources:

sub-classifications estimated.
held about OO -of. the

Insurance

to

United

Oct.

,v.

31

Life

Insurance

of

ibout

130

companies

companies.

reports with
...

which,

Ifcr cSd^lr^ With H.
foreign

company

,

Staiea legal reserve

As.sc-

at
\

the

*>

end

—

of

1950,

countries

Minneapolis-Moline

as

well.

The

W. Freeman & Co.

(Special to the financial

CHaorncxE)

calendar,- ilFT. MYERS, Fla. — Janet " ML
lustrated in color, serves also as Freeman is associated with
H. W.
a catalog of modern farm machinFreeman & Co., 823'First 5treet.
-

Volume 175

Number 5086

.

.

The Commercial and Financial Chronicle

.

(481)

were

Dangers Inherent in Government
Ownership oi Reserve Banks
Discussing fundamental
was
founded, Mr. Rowe
regional Reserve Banks

asserts

Co., Cincinnati, Ohio

Patman

Committee

Ques¬

lowing

question,

their

"What do you consider
d

a

v

and

ownership

of

the

stock

of

the

Federal

by

Bill.

member
Do

believe
owner-

ship

by

United

John

previ-

L.

Rowe

experience
the

ous

nine questions, it is clear that
general discussion of the Federal

that

be

required-to

specified

elasses

of

has

ably

mar¬

and

under their influ¬

been

constantly
be

fearful

obliged to yield

The fact

that it has not

conditio^ which prob¬

a

be

cannot

long

very

this

tained.

All

present

position

raised

of

main¬

that

means

the

the

Federal

inseparably
the

present

Regional

owned

each

this

to

of

Banks,

should

become
Central

a

Bank—owned by the Government.

of the Federal Reserve Act)

:be

used

tarian

as

method

a

control

agement of the

(and

its

for

will

In

the

or

■

in

subject
to

has

not used,

was

-whole conception

was

Reserve

example,

the

statement

their

run
an

more

power

that

free

private

;

-

rather

to

is

be,

natural

thoroughly

The

stock

1929

Government's fiscal policies made
interest rates low during the past

been again a

was

seems

to me
very

market

believed

was

satisfactory.

market

collapse

in

clearly to have
bad case of an

tially,
corporation
heavily borrowed

a very gen¬

made to sell Gov¬

bonds

theory

that

shares

were

either

on

.

at

or on margin through
brokers, .who in turn borrowed at

to

the

the

public

on

bonds

more

banks

and the

versal

desire

to

interest"
on

time

Similarly, interest
was lowered—

era.

deposits

roughly from 4%, in many cases,
1%, and in many money cen¬

to

ters, the amount and size of a
savings account for interest bear¬

ing purposes

was

limited.

We then entered

with

interest

an

that

was

very

World
rate

War II

structure

indeed,

low

following

mediately

World War
technique
in offering Treasury .Bills, Treas¬
The

I.

Government's

Following the end of the year
money
rates.
This 1929, people and companies
borrowing
to
buy. Government strained every nerve to, reduce
bonds produced what the Invest¬
their
debt,
Shortly
thereafter,
ment fraternity would
call "in¬ banks rather
generally, Towered
digestion."
In other words, the interest rates in
order; to assist

the egg,
when it becomes per¬
fectly apparent that bank balances

the 4th 414s sold in the low

eigh¬

loans

ties.

mar¬

are a

tool of

business

business, and as their
they need more

grows,

com¬

In other

words,

the

as

payment of principal.
In addition to

this,

as

a

and

governments

Continued

meas¬

on

on

present."
This announcement is not

be

can

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

an

The

affairs,

own

more

$50,000,000

the ground
enterprise has

on

'

•

'

''

w''

•

-

•oration

.

up

and

very,

First Mortgage

5

to the Aldrich

the

very

V

*

.

•

and Collateral Trust'Bonds,

3/2% Series due 1972-

finally evolved the original Fed¬
eral Reserve Act,
as

Dated

roughly, is about

FDue February 1,1972

February 1, 1952

follows:

The National Bank Act in Civil

This

War

days provided for the

Price 102.17% and accrued interest

crea¬

tion of National banks with pow¬
ers to issue
currency, secured by
with

States

Government

bonds

a

The Prospectus may be obtained in any State in which this announcement is circulated from only such
;">/v of the undersigned and other, dealers as may lawfully offer these securities in such State.

its

amendments, public demand for currency from
conception of the banks quite suddenly exhausted
resulting in the 'original the supply of available currency.passage of the Act and thet later Practically all "of : the available
very

amendments

to

.

it,

have

been

Government

a

.battle between thbsO who" believed
in copying the Central; Bank ideas

bonds

had

\

'pledged, and the volume of cur¬
rency proved to have no elasticity

rirhpbrted from the European- Con- whatsoever. In many cities, banks
tinent,. and those, taking the op- had, to resort to-the issuance of
-pbsite position that this 65untrv Clearing House, certificates, or
did not-want, a Central

Bank, did

nbt'Waht to copy socialistic
;

money secured by the
pledge of other assets with the
Clearing House Association.

emergency

td-

or

local

talhgjrian policies imported from
Europe,

being

completely

vinced that what"
an

we

idly, but the imperative need for

was

revision in the currency

independent .group of Regional

currency,

elasticity

of

credit

for a Cen¬
policy, patterned after
the European Continent, and on

arose

tral
t

*An

address

National

by

Industrial

Mr.

Rowe

before

Conference

New York-City, Jan. 23, 1952.




;..

the

Board,

;

V
*.

;

HALSEY; STUART A CO. INC.
L. F. ROTHSCHILD A CO.

SALOMON BROS. Au HUTZLER

?

HALLGARTEN A CO.

SCHOELLKOPF, HUTTON A POMEROY, INC.
T AMERICAN

•—

MERLE-SMITH

DICK A

SECURITIES CORPORATION

GREGORY A SON

FRANCIS I. duPONT A CO.

STROUD £ COMPANY

INCORPORATED

INCORPORATED

HIRSCH A CO.

:

THE

SWISS AMERICAN CORPORATION

MILWAUKEE COMPANY

'

AUCHINCLOSS, PARKER A REDPATH

supply of

the country had been clearly dem¬
onstrated.
At
that
point there

Reserve Banks to insure elasticity
of

PX'/

The storm blew over quite rap¬

con¬

wanted

t 'r

'

.

•

•

been

BEAR, STEARNS A. CO.

many proponents

WM. E. POLLOCK

STERN

BROTHERS A CO.

KEANrTAYLORA, CO.

THE ILLINOIS COMPANY

PRESCOTT, SHEPARD A CO., INC.

A CO., INC.

VAN ALSTYNE NOEL CORPORATION

Bank

the other side of the

fence

there

January 31, 1952.

_

.

»

,

.

...

;

i

.•

their

page

.studies
'■

com¬

pared to the era during and im¬

get out of

little in the general

a

long debates and discussions which

twelve prac¬

Board.

on

has

bank, and as the word "panic" im¬
plies a sudden and almost uni¬

of

margin consisting of gold
abundantly /clear, that; the deposited with the Federal Treas¬
hole subject of the Federal Re-' ury.
In the panic of 1907, the
the

interest

of

of

:

.,

Commission

United

and

deposits

loss

and

"all-wise" Govern¬

and

t

European Style Central Bank

.from

believe,

events, became what

constantly made that the Federal

It is.

Act

true

shrinkage.

■

:serve.

low

the

;* An extremely simple statement
of the financial conditions in this

•original plot was much more in
keeping with the then conception
:Of States' rights,:
No

demand

side

in the

Origin of Federal Reserve

tically independent banks, tied to¬
gether through the creation of the
Federal

elimination

The

substantial de¬

a

profit

made by

first passed, the phrase "Cen-

<trsil Bank'*

influence
been

interest

opinion, * the
been whether

people

,^. When.?the ^Federal Reserve--Act country, leading
was

crease

corrected.

of

amount

expense

by political

that at

humble

whether

failed.

/

..

a

ment should take unto itself

,Government agencies,;while con¬
tracting neededcredit*-"by'-Indus■

arrangement, it

an

American

trusted

business, in competition with pri¬
vate
enterprise — Encouragement
.'to narrow margin loans

such

possible to obtain

my

whole

of

Endless credit for government

be

considerations

man¬

Government debt

deficits), and
private enterprise
.through interference with legiti¬
mate private needs for credit—

;try.

the

discussion

whether

be far less influenced

constant

restriction

of

position of the Board which shall

could

Totali¬

credit,

over

is

to

verse

Government, ownership,
(far from the concept

Bank

a

been

the

Federal Reserve

by the member banks

District,

Under

had

There followed

there

Federal

unbelievable

an

tools, namely, a bank balance in
due
proportion to their annual
Act, whereby the securities had not found their final the borrower, and as an incentive volume of business, and people
bankers themselves would
have investment resting place, and
I toward faster debt reduction. In
keep bank accounts Tn amounts
been given a partial representa¬ have a strong conviction that this cases of loans which were deemed
according to their needs.
tion on the Board, may not have indigestion
of
the
Government almost
uncollectible, interest, in
Naturally, as banks built up
to be introduced, or whether if bond market had a great deal to
many
cases, was completely
both sides of their balance sheets,
public opinion should continue ad¬ do with the price decline when waived in order to stimulate the

is

system

Reserve

finally and completely

such

and

causes

overlooked

something like
the plan at first proposed in the

.

'

now

be

took

inordinately long time expense off of
to improve at a of
the
banks'
rapid pace after the indi¬ sheets.

ury
Notes, and Bonds of both
short
and
long maturities pro¬
debt, duced a pattern for Government
banks owned, "the greater infla¬
produced a vanishing market, and
financing very different indeed
tionary effect it would have. This because of
the magnitude of it,
from that of World War I, and as
led to substantial borrowing
by caused
pandemonium.
the
total
volume
of
business
individuals and companies in or¬
mounted
year
after
der to play their part "to win the
year,
the
Causes of Low Interest Rates in
banks
steadily accumulated more
war" and, because of the
World War II
pressure
and more government obligations,
put upon them by the various
When trying to analyse what
Liberty Bond Committees and en¬ forces and causes were behind the very largely of shorter maturities,
and correspondingly bank depos¬
thusiasts there was, of course, a
extremely low interest rate struc¬ its
rose, I believe, in proportion
very real and general distribution ture
during and for many years to the total dollar volume of busi¬
to the public, but the facts were
after World War II, a comment
ness
in
the
country.
Roughly
that the bond issues, at advancing
on the sequence of events
leading "speaking, corporations
keep about
interest rates, were to a substan¬
up to that event may be relevant
10% of their annual dollar volume
tial degree bought on margin by
—The
old adage of
"the burnt of business in their bank
account,
borrowing at bank in many cases. child dreads the fire"
certainly and it is rather idle to
argue
In my opinion, this fact has been holds good.
which came first—the chicken or

support of Government bond Reserve Board is not one which
issues, is the immediate field for can be regarded as permanent if
this panel discussion today under our banking system is to function
the heading "What Monetary Pol¬ in safety. The question seriously

of

the Debt"

rates have

the

ket

twelve

not

money

ernment

has

politicians,

not

it would

represents

United

securities, the general sub¬

whether

whether

should

eral effort

yielded in the matter of appoint¬
ments is greatly to its credit, but

hold

ject of Federal Reserve Bank

when

them.

to

be invested

to

reserves

Linked

Treas¬

Bonds Declined

present

of

a

icy?"

only

the

ure to
help rebuild the impaired
capital of the banks, the payment
of
interest on
demand deposits
was
stopped.
This act in itself

.

that

constantly under the

ence

-

Reserve System, the bank exami¬
nation objectives, the suggestion

-

not
or

During World War I

Reserve
System",
1923, commented as

supervision
even

States

in

It has fallen

••

in

is

Banks and

Why World War I Government

method of constituting the Federal
Reserve Board is unsatisfactory.

desir¬

•additional

Federal

"Undoubtedly

be

banks

to

bank direct

demonstrated

several

that

continuously
the original

follows:

States

the

of

of

passage

published

able?"
In

the

"The

Government

•more

as

Dr. H. Parker Willis, in his book

the

-would

market

the

gestion

For

naturally became

been debated almost

since

you

neces¬

authority over the
undigested market—in the same
Regional Federal Reserve Banks, many years. I would like to high- sense in which I have just used
spot Monetary and Financial facts
and eligibility and
requirements
it, namely, instead of Government
from World War I to date.
for membership on the Board have
bonds being borrowed on substan¬

Reserve banks

!that

an

for

rather

Reserve

age

to its degree of

the

of

point

ten

and

outstanding Federal been stressed very little, if at all,
domination, but the extent to- debt over several years, and the by those trying to analyse the
Treasury efforts to "Man¬ Government market through, I forces which produced the "low

continuous matter for debate

a

or

away

which

The Federal Reserve Board and

its membership

antages?

banks?

•

10:

the

disadvan¬

tages

•

No.
to be

five

a

melted

not take

al

should

and, fundamentally, sound bank¬
ing.

tionnaire for Banks asks the fol¬

declined,

whole discussion about the Feder¬

ury

only in keeping member
banks sound, but in keeping Federal finances within bounds.
The

ket

margin

the rather
fantastically
low
prices,
fraught with evidenced by the fact that it did

One of the fundamentals of this

assist not

can

Central

a

dangers.

grave

independent system of 12

an

of

field of banking was

for which Federal Reserve

purposes

idea

ment of the Government
upon

*

Trust

the

Bank, realizing that the enroach- sitous selling drove the market

By JOHN J. ROWE*

President, The Fifth Third Union

people who intensely

many

disliked

13

'

28

f

14

The Commercial and Financial Chronicle

(482)

under the 65% rule if the

New

Fiduciaiy Policy Peimitting

When

Mr.

Surrogate's Court, New York County

that the life tenant

orthodox trustee investment lost
in terms of

the

most

of

estates

fective July 1,
the

to

21

became

1950. I

ef-

referring

am

reen-

Section

of the Per¬

sonal

Property
Law, under
which

ments may

made in

ferred
Let

the

be

stocks.

estates

isted,

ing

for¬

wife,

same

J.

produced

The

fund

same

yielded

return

a

other words, 40%

addition,

with

making

crimi-

has

The mere

The

'

made, according to

"legal"

are

tional income.

had

to

this

state

another

Depositors Only Knew"
ORVAL W. ADAMS*

By
Executive

Western

the

1932

level, the fund would

have

now

to

banker, in

approximate nearly

cold-war casualty.

Aviation
A_s
ciation

Responsible

surprise

•£

depOSitors had only known

our

back

in

the New York

State Bankers' As-

that:

There

sociation

most

may

was

having

the

to

law

no

return

additional

income

funds,

remainderman
chance

to

In

^

principal,

I

stands

the

to

rather

refer

than

preservation

to

the fund from

its

con-

attempts
deteri-

oration through protection of both

principal

value

and

purchasing

m a

be

creased

i

n

t

a

i

preserved

income

may

d

n e

so

As

>

to

the

law

new

that

come

beneficiary, particularly
tionary trends continue.

fund

a

,

if

in-

to the

infla-

which

be-

t

your

is threatening the economic security of our nation.
you

than
this

that

know

long

so

spend more
takes from you in taxes

it

dangerous trend

tensified, and of

will

in-

be

immediate

con-

a

1

weaKenea.
uernaia

-

_r

wills

estates

The

whether

Prudent

n

It has

fixed

with

those

from govern-

come

ment-managed' economies;

from
government favoritism to certain
°reSEUre groups in disregard of
L.p

*i

nafi

wrached

all the

era

more

are

enormous,

that is

to avoid need-

reason

"

'

,

Y°U

^ "y government

wUh

incomes and wages has not been
tbe
result
of
do-nothing ' economics

war-

inflation

couniry
to

this

prudent

and

Man

1950.

,

You have a n£ht to know that
y°"r money is spent wisely. You
have a nSht to be heard by your
representatives in Congress. Re-

member that those in whose in¬

teJesf inflationary policies are
adopted will be heard with em-

talk

simply to

supply the

"Institute

Man"

of

Theirs has been
•:

a

with

soldier

would

p^cf receipted

as

would be

man

using

made

return

and

by

diligence
a

rea-

preservation

Mr.

Dodge

before

one

pay

billion

Just

equals

all

of

the

taxes collected by all of the
States for all State and local
•'

poses.

You

and

Remember the government is

48

pur-

yours;

the

money

y0Urs;

the

debts

have t

where
4.

^

—-

"Ac¬

Day Home-Coming for Commerce Alumni,
York
University, School
of Com¬
Accounts,
Finance,
New
York
1952.




t

You

*One

of

'

spent an untiring four years before committees of Con¬
trying to sell them on what a splendid thing the "Institute of
at Natick, Mass., would be.
Ah, ooh, lah lah, he kept re¬
peating, the American soldier must be the best clothed and the
best fed in all the world if we are to preserve the Democratic
Free World, and the "Institute of Man" was about the best way to
accomplish this. Here in the shadow of and with the scientists of
Man"

scientific

experimentation, the

clothing with which

Saltonstall
in

through

best food

and

could survive in the heat of the

man

demonstration of

a

pile of artificial

a

V

with

snow

soldier lying comfortably

a

the

politically naive Senator

induced

temperature of

degrees below zero and the Senator said: "Aren't
will harm that

afraid

you

65

you

youngster?" and Dr. Doriot enthusiastically replied:

I'm glad

"Senator,

show the state

himself."

you

asked

that;

me

in

tropical

a

of his health and

Next, the Senator

instruments

have

we

comfort better than

to

shown

was

heat with not

bead

a

he knov/s

soldier riding

a

of perspiration

it

bicycle

a

flowing from

his brow.
The

Senator

before

peared

what

of

he

impressed and

was

the

had

and

seen

it

endorse

to

to pass that he

came

Doriot's

Dr.

it

it

by

spends

incurs

will

_nd

yQur

you

y y
have

is

not

yet

y

lost

ap¬

committees to tell

Congressional

appropriate

It

dream.

so

happened that the "Institute of Man" is to be located in the Sen¬

The

.•■■■•

combined

other

finally

New

Boston

authorize
P.

Robert

his

Patterson,

However,

aid of

,'v

the fair

McCormick,

1950.

disapproved

new

of Natick

who hails

is

a

suburb,

The former

Secretary of War,

the

over

project

period

be¬

checking

the

a

construction.

the

came

settlement

agencies,

like Saltonstall and,

men

Majority Leader John

project in

it involved

cause

with the

which

of

scientific

industrial and

England

Congress,

got

importantly,

more

from

....

General, who happens to be associated with Harvard and

crisis,

Korean

all

hope

of

growth and spending of the military was over, and he relented.
Once

again the brass

to have golf courses and planes at their

was

because, after just

a

brief

There

pause,

was

stopping of it

no

the Free World

again

was

endangered and only the brass could save us.
it

So

about, since the political

came

was

necessary

to curtail

in

1951

The

$4,800,000,COO

of a

out

name

fact

now

food and

on

high¬

as

needs get their

construction fund.

pork barrel bill

as

was

this,

General Doriot and

finally got the original appropriation for their

of Man."

"Institute
The

a

naval

of patriotism, and in that bill,

his QMC colleagues

ments

and

army

country has never seen such

all in the

that

the old pork barrel stuff of

rivers and harbors, the members of Congress must

pork

was

purely domestic items, such

on

and schools and particularly on

ways

cry

unlimited expenditures to save the Free World, it

account of the

is, of

course,

that the QMC has six other establish¬

around the country

clothing with which

the

the

numerable commercial and

tropics

that

this

where that very work of devising

man can

"best survive in the heat of

the cold of the Arctic" is going on.

or

•+

it

right

to

scries

of

4.

comes

messages

yourself .at

express

money
out

the ballot box.
T

.,

„

prepared

Use these rights,
,

,

There

are

in--

any

pre-

number of government laboratories, including the Bureau of

Standards, too.
But

serve your future and insure your

none

out of the

City

who

station.

-

ing

a

postwar, cold

war

university laboratories doing the same,

,

only hope to

Uve^rbT Mn Adams6 ov'af'rSaULa^ hard"ea™ed savings frOITl beCOITlradio

of them.

most

gress

the right to petition Congress, nor

In them lies the

New

City, Jan. 26,

be

children.

counting and Taxation" seminar at Dean's

merce,

of

to such imagination.

.

know
irom

clothing., etc. An

and

war, a

now

and spent

billion dollars).

almost

:

■

Frenchman by the name of General
Doriot joined up with them as a reserve officer, now retired, and
in that "ooh lah lah" and "merci beaucoup" enthusiasm, if I am
recalling my boulevard French correctly, he has sought to inspire
the Corps with the same lilting marching spirit as if it shouldered
guns and stepped, dance-like, off to war...
However, in the last

Congressmen

try and are demandin§ that an

the excess over the taxes you are

to

comes

by

over

nearly two

Bargeron

Carlisle

creation

the

be

not

food

drab lot, not conducive

disposal; servants galore and yachts.

your
Senators, and

The Federal budget for the com- these men, your representatives,
year, proposed by the Presi- are entitled to assurance that you
derd> 3s ln excess of $85 billion. stand back of 'them in opposing
That is a tremendous amount of such policies, that you are awake
money; it is fifteen thousand mil- to what is happening to this coun-

r.r,rw0c.

*A

"

phasis. They will "pressure"

.

lected

Statute

intelligence in seeking

sonable

all, the members of the Corps over all these
years have felt like outsiders; they are nonno "Halls of Montezuma" or the
"Caissons Go Rolling Along" have been written around them.
Throughout our increasing
•number and years of wars their job has been
combatants,

to

Vd195°: " ah 4res; if L eSty-rre^LT end be put to deficit financing, an
ri?/os°Ctrusts sand.,million dollars more than end be put to policies adopted^to
=pS spent^My y^rpTorfo 19H f3V°r 0ne gr°UP at 016 eXP™Se
created prior to
(P hen for
firstPtime it col_ of the whole people.

ThocfoWenrntu
e
.
.
The
statute provides for
invest-

ments such
a

this little sum with a view to
their morale if nothing else? After

boosting

just demands

in

less waste and to get the most out

,

The

says

iniury

the

inter

subsequent to July 1,

or

mitted to spend

ator's state.

that

government

Statesman

Orval W. Adams

Party

power,

Granted
0f

ruch

Cratic

chasing

■

Also'

shouldn't

gov-

as

continues to

ernment

has

policies

For the life tenant to be

should

your

by ern to you, the savings of bank
their depositors, of all of the millions

e r n m e n

a

the

to

its

servation;
protect

of

that inflation has
standard of living,
future security and

taxes;

lowered
hazarded

to re- 0f them in all of the banks of
sist
injury America, will continue to suffer a
through
gov- corresponding
decrease in
pur-

principal; :gUch

speaking

like

preservation

properly

forces,

South Pacific and the cold of the Arctic.

power

be

may

law; the

new

also

have

increased.

power.

spending other billions on the
why in the name of goodness
the Quartermaster Corps
be per¬

and

armed

year

year

want the

that

.

the

their

knowledge,
and

merely look at his key
for his security.
The
fiduciary may no longer rest with
bonds
simply because they are
legal. He shall have greater re¬
sponsibilities toward the life ten-

available under

act

not

upon

box

.ant, who will certainly

did

or

this

know

not

box, and
the

higher

But, they did

purchase legal investments, bonds,
place the bonds in a safe deposit
to

as

government

making invest¬

the estate

take

can

thing

money.

considering the safety of principal.
The day is gone forever when a
trustee

such

re¬

man's

reasonable

a

is

enacted.
been

prudent

means

with

1933, when it all started,

instrumental

new

the

as

law, which
ments

you

enactment has

new

ferred

and

....Europe

the best

lt could never have haPPened of y°ur pockets in high prices and

is that

in

be around $40 to

Well sir, one day he took kindly and

R mkiMV
Bankers

The

million but for which the final bill will
$50 million. Just a small item
inasmuch as we are giving away billions to

of $11

developed through

T

$350,000,

What

for

Harvard, MIT and other higher institutions of learning, could be

is spent wisely, and urges them to
hard-earned savings from becoming a

money

ballot box to insure

use

Bank,

City, Utah

to depositors, declares they have

message

right to know their

of living of the widow maintained

National

First

Utah

Vice-President,
Salt Lake

way:

to build an "Institute of

He

"If Our

In

as

is going

an

•

if one wished to have the standard

at

reply to

a

an example of the way your money
is the plan of the Quartermaster Corps
Man" at Natick, Mass.,
which they have an original appropriation

thing

earn-

investment

average

in his history, a Federal

government debt of some $265 billion and a proposed deficit on
next fiscal year's expenditures of $14 billion.
Such a little

15% to the 35% permitted under
law.

to the taxpayer

things that are comprehensible

the

marketa*

ings (stability); (4) dividend record (continuity); (5) debts and
preferred stock ahead of the common; (6) the industry; and (7)
the growth possibilities.
These
represent but a few of the factors
to be considered prior to investing,
In a recent report of the New
York State Bankers Association
it is shown that the purchase of
common stocks has ranged from

—

increased income taxes, and
the purchasing value of the dollar
decreased steadily over that pe¬
To

(1)

1949
in

tenant

as

It is the little

he faces these days the highest taxes

as

sense.

investment, at

an

into

of the News

By CARLISLE BARGERON

in

else

common

—

inquire

pay

riod.

something

the

in

of $2,900.
less dollars!

life

the

in such investments

income of

an

similar securities

or

Dodge

A trust fund of $100,-

000 in 1932

$5,000.

Chester

the

life tenant..

conection

inquiry of the New York State
cate
Bankers Association, showed that
the stock at any time exceeds 35%
between 20% and 25% of the
of the fund, the fiduciary is not funds were invested in common
required to liquidate.
However, stocks under the prudent man
should
liquidation
take
place, rule, Needless to say that the life
then the fiduciary would be re- tenants of these various trusts are
quired to reinvest the proceeds grateful with receipt of the addi-

ex¬

gotten woman,
the

invested

registration does not indian approval.
If the value of

involv¬
the

which

nal and civil sanctions.

as

they have

indicate

this

Washington

Ahead

common

funds

fact of

situation

in

It should, of course,

statute

closure

pre¬

look at

us

bonds if the same are fully
ligted an(j registered upon an ex_
change registered with the SEC as
a national exchange.
Stocks of insurance companies and banks are
and

be
emphasized that registration with
the SEC is compliance with a dis-

com¬

and

mon

in

the

bility; (2) management; (3)

Thirty-five percent
of the fund may be invested in
common
stocks, preferred stocks,
of the capital.

proviso.

invest

behalf of the estates and

also

least

exempt from the exchange listing

invest¬

/■/"

generally substantial amounts
The letters "c" and "s"

Before

stock investing.

common

progressive

changes to be made in the administration

legatee under

or

three-fourths of its value

over

From

.

of money.

living standard since 1932. Offers "common sense"
precepts for

of

acted

are

Stocks"
you

on

fiduciaries,

Dodge hails the salutary effects of recent Prudent Man

Law changes, pointing out

One

stocks

per¬

X

Common

Sense for

Thursday, January 31, 1952

.

.

"legals"

stated

''''r:,"

^

"Common

By CHESTER J. DODGE, B.C.S., LL.B., C.P.A.*

the

than

centage..

Common Stock Investment
Chief Auditor of Accounts,

less

are

.

casualty!

of them is called

imaginative mind of

might design

a

an

a

"Institute of Man."

That phrase,

creative Frenchman, such

as one

woman's dress, is going to be expensive.

Volume 175

Number 5086 ,1

The Commercial and Financial Chronicle

.

(483)

What Monetary

of such a policy in recent
years cord provided
.has been fear of interfering with on short-term

Policy?

the

By E. A. GOLDENWEISER*

Formerly

Economic

Adviser

Federal

well

Federal

Board

the

been

a

subject

-

of

one

side.

controversy,
and

it

ises

tinue
ohe

In

prom-

to

to

for

is

be

As
no

those

who

minimize

money

of

as

in

phasize

the

For

in

of

A.

This

school

was

was

of

money

influence,

no

but this does not
has

that in certain

or

circumstances this
not

be

even

periods when

are

factor

in

in

generally

now

the

period from

credit

force

belief

a

securities

that

,

all

kinds

of

of

the

growth

thus

of

bank

moderated

inflationary

present

is

the

likewise

time

a

the

dominant

Neither will any one deny that
fiscal policy has a powerful effect

As

a

with

little

them

may

tary

business activity.

considerations

have

been

because
to

be

avoided

it

takes

placed

means,

mone¬

Government deficits

reasons.

until

time

and

recently

for

orders

operations

to

there had
the fear of these
dangers
they were almost certainly

been

in

(and

unduly-

magnified), the situation
more

it

is

better

has

time

not

in¬

war

peak;

and

more

distributed

firmly held.
this

debt

far from the

so

now

clearly defined than

Public

ever.

creased

has

would

not

run

only result in greater caution by
lenders, arresting or slowing down
credit

and a
act

and

money

expansion,

strong influence to

inflationary

counter¬

Realization of these
changes and
accumulated experience led to the

working

out

between

ury

and

the

Federal

the

now

famous

the

Treas¬

Reserve

accord

of

of

last

March. In carrying out this accord
the market was cleared of a

part

of

an

overhanging

2VZ%

bonds,
exchangeable

basis of

non-monetary considera¬

tions.

What the

spend

is decided

and social

will

government

by

views

of

the
the

palitical
Adminis¬

tration

and the Congress, or by
overriding considerations as

such

the

need

to

large-scale

finance

war

a

defense

or

effort.

a

What

is raised in taxes and how
depends
on

a

complex of political and

so¬

cial

considerations,

of

monetary nature in the tech¬

a

nical

the

few

of

them

will not be
in

this

increased, at least not

election

dentally

(This inci¬

year.

illustrates

so

far been

to

the

informed—

are

the

which
for

a

large
issue of

were

made

non-market¬

an

exercise

adequate deterrent
of

this

option.

sensitive market, indeed.

The

A

need

to

word,

increase

ac¬

of

how
as

but

for

fiscal
an

policv

be

can

foreseeable

best

future

is little hooe of fiscal ma¬
chinery and practice
being adapted
to
current cyclical requirements
the

country.

keep

the

while

price

tion

at

able

even

point

this time
from

of

a

would

view.

incentives
cannot be

be desir¬

strictly economic
Preservation

of

rather

tion; tvey
rective

structure

than

are

of

causes

intact

infla¬

also administratively

forces

in

the

cor¬

economy.

They create inequities and malad¬

justments; and result in
demands
fields

of

for

wider

activitv

control.

At

even

on

spell

basis,

mocracy.

powerful

a

to

constant

and

be

times

whether effective

direct

doubts

controls,

temporary breathingare feasible in a de¬

There
presure

are

too

groups

many

and

too

argu¬

why the other fellow is the

talk

National

January

wider

put under

one

politically convincing

many

ments
*A

be

doubt it

no

securities

for sale

orderly conditions in the market.
The, accord has worked very

ized, and probably it should.

Still

others

Sys^-

tem's

want

to

powers

increase

matter,
run

to

though in the long
help to prevent a fur¬
prices. So. if we are

even

it may

ther rise
have

in

restraint,

be monetary

bank

over

maelstrom

thorities

will

make

full

of

use

are

money

such

the

inflation¬

Must Pay

use of existing powers anil
existing machinery. Their imper¬
fections are no greater than thofie

Current Money

of

Cost

indicate,

that

the

life, depends to
tent

our

no worse, than the
of their administrators.

It is somewhat
one

economic

economic

needs

and

in

that

public,
must

of

current

behold.

in

of

No

change in

our

machinery is

tion.

Many

suggestions—good, bad, and indif¬
ferent—for its improvement have
been

made.

salvation
of

ment

though

Some

lies
the

in

the

gold

what

think

our

reestablish-

coin

positive

that

But

we

must

standard,
this

It is

more

likely than not to

the

why

totalitarian

Stdtes,

have

considerable

powers

to

pose

straight-line

action,

invari¬

ably

fail:

but go

result

wrong

direction.

they move
the wrong way.

usual

in

the

to

would

give
our

our

have

our

gold

now,

and

structure

their power,

directly,

to

than
access

availability

a^d in interest rates.

buy

23,

also

factors

in

bringing

Having thus been reconciled to-

in¬

and

to

contribute

recting

directly

or

in¬

with

weapons

the

what

we

general

no

circumstances

to

be construed

solicitation of any offer to buy

greater

sensitivitv

Rather

minor

have

of

changes

substantial

a

the

any

Through 1961

in

influence

plus accrued dividends from date of issue
i

the capital value of government
securities in the hands of
large in¬

vestors, including insurance com¬
panies and banks.
They are re¬

Copies of the Prospectus may be obtained in any State only from such
of the several underwriters named in the Prospectus and others as may
lawfully offer these securities in such State.

luctant to take capital losses
by
selling cheaper than they bought
and
are
less
likely to transfer
their

funds

private

from

loans

in

government
response

quests from business.
There

to

to

pol¬

icy of credit tightness is the

cor¬

one

to

pursue

A. C.

Allyn and Company
Incorporated

a

rect

Kuhn, Loeb & Co.

re¬

"

is little doubt that

■

on

Bear, Stearns & Co.

at the present

time, and has been nearly contin¬
uously since 1946 (except in 1949).

1952.

What has




-

rates

Dr. Goldenweiser
before
Industrial Conference Board,

by

OFFERING PRICE $49.00 PER SHARE

market.

prevented the adoption

January 25, 1952

can

to

di¬

movement,
slow as it may be, toward
gradual
progress to the common goal.
.

Par Value $50

about

straight—

muddling, provided only we mud¬
dle through, it behooves all of usr

as, an offer of these
of such securities.
offering is made only by the Prospectus.

or a

Convertible

The

im¬

to

5*4% Cumulative Preferred Stock

of

which,

to

thereby to weaken

financial

crease

other

enemies easier

(A Maryland Corporation)

moderate

That's,

*

Consolidated Grocers Corporation

more sen¬

be consoled,

be in

200,000 Shares

to

monetary-

onstrated that human beings, par¬
ticularly en masse, are not capable
of well-designed
straight-line ac¬

the

market.

necessary for this purpose.

counsel of per¬

a
sound
device for substituting'
muddling for straight-line actionExperience and history have dem¬

debt

cost

it is determined

as

a

clean-cut

by the thought that democracy i&

all,

private,

quality

mechanism, logically sound and
modern, would be a pleasure to

country,

interest
as

the

pay

money

the

well

as

the

of

A

ex¬

the Federal Reserve adapt¬

on

and.

discouraging that

cannot offer

fection.

substantial

a

institutions

ter, and

principle

be widely understood and accepted
that the fate of the dollar, which
is the cornerstone of

human

most

their performance will be no bet¬

It is essential, logic and experi-.
ence

com¬

make

ary pressure..

Debt

confusion and

cussion, will turn out to be in the
wrong
direction. Far better to

budgetary and demand situa¬

tion which exert heavy

of

NEW ISSUE

to make

as

machinery

than

changes

have

reserves

promise which is certain to rage
if monetary reform is under dis¬

their power to prevent or moder¬
ate the inflation
notwithstanding

restraint.

Conditions

sitive

it will

the

well

This

for
productive effort
ignored if income taxes

to go up; and the immediate
effect of a sales tax on those whose
were

improved*

Others believe

can.

that the Board should be reorgan¬

maintain

to

necessary

as

more

difficult and tend to weaken

the

might

This advertisement is not, and is under

lasting methods of large pubh'c debt and its distribu¬
regulatmg inflationary forces are tion, which, as will be pointed
being nut in operation. But not out presently, have been obstacles
only do direct controls attack ef¬ to vigorous monetary policy, are
fects

gradually relaxed and ultimately
discontinued, except in so far as

question whether additional taxa¬

the financial

Direct controls may at times be
desirable way temporarily to

a

be

namely,

there

of

bonds

fiscal policy as an economic
regulator.) There is even some

decrease

or

anti-cyclical influence,

the

tion of powers within the Federal

Reserve System can be

of

of

the

used

level, and

support

weakness

budgets
have
already
suffered
through inflation, makes indirect
money supply.
It is well for taxation, with its regressive char¬
scholars to work on the problem acteristics, an
extremely ticklish
the

of

sense

to fight us, is difficult to
Some think that the distribu¬

see.

ing its regulation of the avail¬
ability and cost of money to the

pressures.

The Treasury-Reserve Accord

able

Taxation—we

which

would

of

any

not related to the

pressures

country's monetary requirements,
but it is formulated,
largely on the

rates

that

Firm credit policy at

2% % bond;, This bond, to be
get under way. But in the coming
however, of counteracting defla¬
was
year and in following years actual sure,
exchangeable at the
tion, and particularly inflation,
spending may be expected to be holder's option into a Vk% mar¬
fiscal policy is not a
dependable on
ketable note.
Such an exchange,
a vast scale.
instrument.
Not only is it slow,
however, involved a loss of reve¬
clumsy,
and
often
swayed
by
nue for the
No Early Tax Increase
investor, and this has

many

that

.

of

pressures.

when monetary
policy can be a
powerful influence in either di¬

world

not

were

equipment, a tighter the real or fancied dangers of
policy
would
have earlier postwar years.
It would

and

The

for

possibility of moderating
factor substantially for domestic

influence

in the economy.

on

conse¬

rection, either for economic sta¬
is slow to exert bility or for boom and bust. Gov¬
ernment
spending is bound to be
one would deny,
heavy and to be determined by
mean that money

influence

no

no

goods and services and

dampened

of

adherents,

many

adequate but re¬
slow. That there are
circumstances under which abun¬
an

and

further

governments would

be allowed to find their

up to the present time. Gov¬
or
to change the method of im¬
firmly held. There was fear that ernment securities have
declined, posing them, or to alter their com¬
vigorous credit action might lead but not
alarmingly; there was no position, or to make them ap¬
to an avalanche of
selling, which wave of selling.
Interest rates, plicable to all banks that accept,
not only would be
serious for the both
long and short, have gradu¬ demand deposits.
Treasury, but might lead to a col¬ ally advanced, and credit
expan¬
In the long run some of these*
lapse of the entire capital market sion has
markedly slowed down.
and
a
profound, if not a catas¬ During the past nine months the things might be adopted to advan¬
tage. But no legislation needs tt»
trophic, disruption of the coun¬ record of
monetary
policy has be
pressed at present. If reforms
try's financial operations.
been the best since the end of the
are to be considered
now, the pos¬
war
These fears and
(and probably for some time
hesitations, to¬
sibility of legislation will be both,
gether
with
human
inertia
in before). It is to be hoped that the
disturbing and delaying. Also there
changing
established
lines
of dearly won independence of mon¬ is
always the possibility that such
thought and action, have accounted etary action will continue in ef¬
changes as will emerge from the
for
Federal
Reserve
timidity. fect, and that the monetary au¬

become

demand

capital

Goldenweiser

later years of the depres¬
of the '30s when the supply

dance

of

decisive

that

monetary

gained

money

is

through 1950, with extremely

for
E.

with

controls.

covery

the

consumer

the

sion

it

example, it is

active

policy

thought

be

can

1946

tiveness of fis¬

direct

when

admitted

effec¬

coupled

It

a

em¬

cal

flexible.

the economy.

eco¬

nomic life

greater

times

it

-

factor

and

and

policy

be

quence and there

the

importance

feasible

was a war-

time-consuming ad hoc legislation.
to its
effectiveness, there are Whatever justice

11 y

n e r a

monetary

promptly formulated, vig¬
orously pursued, and requires no

speaking,

e

fiscal policy

to

controls,

both

can

many

years to come.

G

contrast

direct

con¬

Treasury

government

who needs to be controlled on
the upside while the arguer needs
of the special consideration on the down¬

workings

has

restraint, but they
obligation toward

legislation. Opposes return to gold coin standard, alleging this
would indirectly give our enemies
weapons to use against us.

economy

re¬

authorities have

have been timid. There
born feeling of

as

For many,
many years the ex¬
tent of the influence of the amount
of money on the

Reserve

made efforts at

private debt should pay current
money costs, Dr. Goldenweiser urges use of Federal Reserve's
existing powers and machinery, in lieu of initiating amending
as

task of

funding and distributing its debt.

Reserve

Formerly Member, Institute for Advanced Study

Asserting public

Treasury's difficult

15

Dean Witter & Co.

1#

The Commercial and Financial Chronicle

(484)

and the
best anchor for ship it into America and upset our
centuries has been a gold steady money. Neither would we
want any country or combination
anchor.
*
The reason gold is the best an¬ of countries to be able to sudden¬
chor is this. Paper money can be ly buy up and take out a lot of
easily printed and the paper it is American gold, as this too would
printed on is practically worth¬ cause an upset.
We would also need some limits
less.
But gold is itself valuable.
The supply is limited.
It takes on gold holdings by citizens to
hard work to mine it.
It can be prevent hoarding, and some re¬

solid,

A Solid Dollai Undei

Modem Gold Standard
By HAROLD E. STASSEN*

President, University of Pennsylvania

Ascribing climbing prices to

and wasteful policies of

wrong

our

volves

the

threat

of

There
that

and

the danger

Wmmy

Wtfwwm

t

means

M '• 4

America.

HI

i:

I

will

ful

pre¬

.

to

sent

•

*you'

their

problem

•

main

or

clothing,

for

reason

will

I

the",

explain

The

be

must

of

cause

America

coins

gold

back

to

climbing

government is corrupt and

a

Therefore, I present to you, as
of the four principal planks
my
platform for ; the Presi¬
dency, the establishment of a solid
one

in

in

trouble

good

a

dishonest, or if a; government
bungles into large unemployment,
or if a government loses the con¬
fidence of the people, then that
government
.cannot
keep
its
money on a gold standard.

or

dollar

American

is, and has been, six
bad financial manage¬

of

years

the

if

or

.

and

gold coins,

of a country re¬
standard for the
government of the country.
If the government is wasteful,

construc¬

taken.

that

money

quires

is wrong and waste¬

first

and
attention will
be
to
establish
the
right
government needed
become practi¬ weight and size of the gold coin
be

can

bill

or

purchased with

The Modern Gold
Within
the

$10

a

$20 bill.

a

about

Standard

two

beginning of

from
administra¬

years

our

gold

Max

Barysh

Barysh,

Ernst

money,

the

for

reasons

prices can be ruled out because in
tive
steps the past six years we have not
had
which- I
am
any serious, lasting shortages.
convinced can We live in a land of plenty.
the

Study

they thereby make tion, after these and other nec¬
their paper essary steps are taken, and after
the people have confidence that
money in sound shape.
have an honest, efficient,
In other words a gold standard they
paper

as

policies of the government.

;The

change

him in gold.

pay

a

money to

paper

and

can cause

The other

re¬

Therefore, if the people insist
that they should have the right,
whenever they want to, to change

materials.

o

And

it

strictions against insistence by one
citizen that another citizen must

But paper money

printing press can
cally worthless.

Climbing Prices
two

are

worthless;
to

only

purposes

Therefore gold

A Hole-in-One

their government keep

shortages of food,

'this

that

-

hitched

climbing prices and
trouble of this sort for the people
of a country.
One
is shortages of supply —

cheapened
money

for

Reasons

becomes

tains its value.

President.

your

country needs a change
in the national capital. It in-

why

about the

would do

I

Tonight I will talk over with
you one of the important reasons

other than money.
never

of

hundreds

for

used

for Republican Presidential nomination
lists increases in paper money supply by Truman Administration as having produced inflation. Says inflation can be curbed
by anchoring dollar to something solid, and best anchor is
gold. Lists as steps to "modern gold standard": (1) spend
less money in Washington; (2) prevent future unemployment
by providing worthwhile work; (3) strict supervision of gold
shipments in and out of country, and (4) control over gold
holdings.
government, aspirant

*

Max Barysh Makes

many

a

Thursday, January 31, 1952

...

standard.

with

This

modern

a

will

be

an

good

administration in Washing¬
the modern gold standard

ton,

would

be

put

into

Administration.
America

on

dollar.

much

effect

From

would

by

that

have

my

time
solid

a

Max

bers

ers,

up the troubles of
Cleve¬
couple, the Kentucky teach¬
the New York insurance pol¬

icy

holder,

made

York

hole

a

in

120

mem¬

Stock

Ex¬
re¬

one

cently at the Fenway Golf Club,
White

Plains, New York,

yard seventh
He

course.

he

hole

used

120-

on

the winter

on

No.

a

If

iron.

7

call him, he will tell you how

you

clear

of the New

change,

This solid dollar would do
to

Co.,

&

Broadway, New York City,

it.

did

the Milwaukee mother, the
land

the

and

American people.
In other words,

rest

if

you can

Morgan Stanley-Button

the

of

Group Offer Dayton

take

$10 bill and get a gold coin of

a

the

Pow. & Lt. Go. Bonds

size
and
weight one
the next year, or five years
Stock Offer Underwritten
later, and if the Federal budget
is kept balanced and employment
Morgan Stanley & Co. and W.
is- full,
then the prospects are E. Hutton & Co. headed an under¬
very good that the $10 bill will writing group .comprising 43 in¬
also buy at least as much or vestment firms which offered for
more of the necessities and
good public sale on Jan. 29 a new, issue
things of life that year, and next of $15,000,000 of the Dayton Power
same

year,

.

Harold E. Stassen

in

proposal

platform

my

which I would carry out as your

government—six long
years of waste
and bungling in
Washington.
■
K

President.
Let

As

tell

me

about it this

you

tfray.
A young mother in
Milwaukee,
tfrith a troubled frown, asked me
ah important question last week.
Srie

said

feifhd

that

has

raises
Wad

in

although her hus-

received

the

past

harder

a

three

wage

six years,

time

she

making ends

nteet

now than she had in
1945.
With prices of almost
everything

afWays climbing beyond the

wage

raises, her family budget is get¬
ting desperate. She asked me why
was
happening and
what
be

done

.

this

faced

are

rected?

let

another

you

ex¬

ample.

iyfote that the husband
on

month.
was

pension

a

When

first

company it
gdod

the

$100

effect

pension.

But

plan

in

considered

was

per

pension

into

put

retired in

of

a

now,

his

very

every

yOar, that $100 buys less and less.
They are using up their small sav¬

ings

and

future

worried

are

when

they

be happy and
set years.

oh

than

who

Three

Kentucky
had

hoped

in their

are

to

sun¬

in

not

the

that

they

in

have

in

salary
for seven years and it is
very hard
to get along on their
salaries.
another

brought to

my

week when

a

complained

that

policies he
of the
care.

example
was
attention again lust

young man spoke to
the train to New York and

me on

war

of

planned.

took

the
out

would not

insurance
at

as

he could

I

will

try

not af¬

so

much

by taxes.

to

answer

these questions and tell
you what
*An
lican

of

by

Eastern

Mr. Stassen
under
Connecticut Repub¬

Committee, Wiliimantic, Conn., Jan.

26, 1952.




government.

It will

be

not

to achieve.

easy

But for the good of America and
for the future well-being and hap¬

I

in

am

it must be

home
.'.1*

your

:V;:W
confident, from expert ad¬

vice and long study, that it can
arrangements get be done, and I pledge that as your
And every time President, with the cooperation of

is

wasteful

and

Congress, it would be done.
This

is

the

it-would

way

be

of

paper money, or of bonds, or brought about:
1
V
puffs up the credit, it makes the
First of all, I would spend less
dollars which you earn, or which
money
in 'Washington.
I would
you have saved, worth less than
cut out the waste, weed out the
they were before; v
loafers, throw out the dishonest

The

Administration

than

from

$260

" now

billion

of

has

debts.

increase of $25 billion
time it took office in

an

the

people,

streamline

the

depart¬

ments and end the

duplication and
triplication.
I would bring into
the government young, upright,

April, 1945.
It now has nearly efficient men and women
who
$27 billion worth of paper money would see to it that Uncle Sam
in circulation,
which is an in¬ got a dollar's worth for his dol¬
of

crease

billion and

a

half from

a

Other

ex¬

pansion of credit and speeding
dollar

movements

place at the
These
what

same

value

It is

of

flected

in

together

technically

lars
and

in¬

get

most

men,

of

we

experienced
Party, so that

regardless
have
wise policies of government.

are

as

And I would talk with
advice from the ablest,

I know from

ing

over

would

experience in tak¬

and straightening

out

a

it

is

re¬

tion in

the

state

government in

1939,

higher and higher that billions can
be
saved
in
prices of the things the people
Washington with better service
must buy.
It results in a "loose to the
people and a stronger de¬
dollar."

what

a

No one can be certain
"loose dollar" will
buy in
We do know that it

buys only 68c worth of what
it bought just six years
ago, when
President Truman took his oath
of office.
now

inflation

Second:

is

not

only

clear

I

that

would

the

ministration

make

policy of

would

be

it

very

our

ad¬

to prevent

future unemployment which
might otherwise
arise
when
a
heavy defense program is no long¬
any

needed. This would be done by
seeing to it that there was always
Americans, but if it continues and plenty of worthwhile work to be

troublesome

gets

it

worse

to

now

can

millions

er

of

be

very, very done building America and de¬
Many great countries in veloping its resources. I will ex¬
history have gone through terrible plain this in detail in future
serious.

times because of bad inflation and

prices.

I have personally
extreme inflation in Greece

seen

and

Hungary and Italy in recent
and

years,
and

know

I

the

suffering

misery and tragedy which the

people

experience.

What

Solid

a

Experience
there

is

a

Dollar

has

Means

shown

reliable

that

method

government

from

cheapening

their

inflating and
money.

That

method is for the
people to insist
a

"solid

dollar."

In

other

the

money

government

anchored

to

dom

for

necessary

standard

barometer to test the wis¬

and

of your

soundness

ernment's

gov¬

policies; it becomes

a

a

and

modern

for

gold

successful

a

With.the

Let

of the world

that

into

or

This

would not upset our

we

would

have

strict

shipments of gold
out of our country.

is

interest

due

1982. The

bonds

to

yield ;■ approximately

3.13% to maturity.

additional
make it clear that

me

standard

does

gold
automatically

not

a

correct the evils of inflation.

But

rate "of

stock

common

share

one

for

shares held of record
of

business

nine

the close

at

Jan. 28,

on

the

at

each

1952. The

gold standard cannot be main¬ subscription offer will expire at
unless
the
government 3 p.m. (EST), on Feb. 15, 1952.
keeps its financial and credit pol¬ Morgan Stanley & Co. and W. E.
a

tained

icies sound and wise.
extra

an

value to the

check upon
Other

Thus it has

Hutton & Co. and 50 associated in¬

people

vestment

as

a

the

Platform

keting the bonds, will underwrite
the company's offering of com¬

Planks

Along with the solid dollar the
of my platform will

be these three:

Greater

harmony

for

between

mon

corporations

with

group

mar¬

stock.

Proceeds

from

bonds

common
a

the

of

the

and

sale

the

of

the

additional

stock will be used to pay

part of the cost of the company's

of

construction program and to repay

the

$12,000,000 of bank loans used for

sharing the profits

American

members

new

groups in America with voluntary

plans

firms, including most of

their government.

other planks

construction.

employees;

The

has

company

honest, upright administra¬ projected a new construction pro¬
tion in Washington to serve all the gram over the next five years,
based upon increased customer re¬
people;
quirements. Expenditures for the
A
new
up-to-date
American
three years through 1953 are esti¬
foreign policy, keen and alert and
mated to be $58,400,000, of which
strong, guarding the security and
the freedom and the happiness of $20,400,000 was spent through Dec.
31. 1951.
the American people, under God.
The company's business is the
A policy which will help other
production, transmission and sale
peoples to make progress and be¬
An

come

friends

our

in

a

peaceful

world.
These

three

planks

together

with my proposal for a solid dol¬

lar,

can

be

carried

out

support of the people.

that

the

help of Congress,
them out.

as

your

with

the

I pledge to

you

President, with
I

would

carry

Joins

of Con¬
administration would

supervision

series

priced at 102^4 % plus accrued

.

money.

help

gress,
my
take steps to insure that the un¬
certain conditions in other parts

mean

are

Concurrently the company is
of a sound, solid money
policy and it becomes a strong offering to the holders of its com¬
promise against the danger to you mon stock rights to subscribe at
of bad inflation and
cheapened $32 per share to 256,007 shares of

Harris, Upham
Chrontcle)

PETERSBURG, Fla.—Ray¬
Hansbury has become as¬
with Harris,
Upham &

because

and

the

pur¬

covers
24
adjacent counties
in
Ohio and the principal cities served
are
Dayton, Sidney, Troy, Piqua,
Xenia, Grenville, Fairborn, Wilm¬
ington, Urbana and Washington

Court

House.

Operating

amounted

which

revenues

12 months ended

67.5%

to
was

Dec. 31,

$48,963,442, of
derived

from

sales of

electricity, 28.9% from gas
and the remainder from steam and
water

sociated

calendar year gross income before

Co.

interest deductions

In

with

the past he was connected

Hunnewell

& Co.

business.

For

was

the

1951

$8,593,789.

of Boston.

With Merrill Turben

With Waddell & Reed

we

would not want to make it possi¬
ble for the Communists to mine

energy

mond S.

over

important

electric

1951

(Special to The Financial

ST.

of

chase, distribution and sale of na¬
tural
gas.
Its service
territory

for the

America.
Third:

Light Co. first mortgage bonds,

3V4%

symbol

(Special

to The Financial

Chronicle)

TAMPA, Fla.—George B. Stalls
large quantities of gold with their and Arthur W. Winne have bekeep the cruel and ghastly control over come affiliated with Waddell &
something slave labor, and then suddenly Reed, Inc.

words, the people should insist
that

speeches.
Confidence in future
jobs and future business is very

by gold standard at home. This would

which the people of a
country can
prevent the politicians
in their

comes a

be¬

,

fense result.

future years.

&

year, and five years later.
The modern gold standard

spent.

cheapening of the corrupt and wasteful administra¬

a

dollar and

the

up
taken

have

time.

changes

is known

flation.

upon
address

honest

an

'

many,

end

longer take

ford another policy with
of his income now taken

Tonight

the

his
family as he had
He asked what could be

done about it

auspices

up.

government

runaway

Still

on

indebtedness and

credit

puffed

This

pay

diffi¬

teachers

increase

one

worse

had

serious

school

wrote

only

even

mother.

have

also

are

culty.

the

People like this couple
the young

Those
raises

had

secure

fixed income

a

Off

about

national

then issues another billion dollars

of

elderly couple in Cleveland

1945

the

very

issued

and

of

the time it took office.

give

me

An

bohds

many

s a m e

probably have
iii your home.
Why should this be
true?
And how can it be cor¬
Let

dollars

paper

This is

problem.
You
this same trouble

dollar based

what has happened. The govern¬ piness
ment has printed a lot of extra done.

more

about it.

Millions of Americans
With

result of these' wrong ^ac¬
in the government, this is

a

tions

this

could

honest

ment in the

(Special to The Financial

Chronicle)

CLEVELAND, Ohio—Samuel C.

Mitchell

is

now
with
Merrill,
Co., Union Commerce
Building, members of the Midwest

Turben

&

Stock Exchange.

Volume 175

Number 5086

.

The Commercial and Financial Chronicle

.

.

(485)

due and the

Foices

Shaping the

ing in

might happen in the second half
of the year when the government
will again be running a deficit and
defense work will be aproaching

Business Future
Editor

its

ELLIOTT V. BELL*

By

have said

major economic forces during

as

com¬

(1) Government spending for national security, in
both military and economic fields; (2) Business spending for
plant and equipment; and (3) Consumer Spending. Predicts
1952 will see full employment, high industrial activity, produc¬
ing

year:

cussed

for

individual

on

the

even

to now

up

businessmen
is

this

at

say

Over longer-term,

get to¬

Presidential

the
some

strong views

that, but I will leave them to
question period if anyone is

interested in

nevertheless be "a terrible year"

businesses.

much

factor

election. I have

predicts
huge spending will not suffice to keep boom afloat.

some

when

gether—that

tion, national income, debt, and taxes; with continued fall in
value of dollar. Asserts it may

nothing

them.

point:

vhor

Suffice

1952

mppoiv

The
much

forecasting is always
think

I

hazardous

but

right

speak with more than

now,

ordinary assurance fo

one

can,

economic

at-

fairs

the

for

twelve

next

months

so.

or

Basically they
the

are

very

forces

same

that have been

conditioning
our

economic

climate
the

since
since

outbreak

of

Korea

18

ago.

They are:

(1) Government

deal is committed.

,

-make
be

certain

it

mav

be

terrible

a

that the cold

assume

will

war

continue with various fluctuations

temperature but without ever

in

becoming
least

at

stop
out

full-fledged hot war,
in
1952.
Fighting may
a

in Korea; but it may break
somewhere else. In any event
military

our

is

program

that

committed

it

will

far

so

continue

through 1952, even in the face of

powerful peace offensive than the Kremlin has yet
a

much

shown

more

signs of mounting.

has

Congress

authorized

over

,$130 billion for national security
jprograms since Korea.
Thus far
only about a third of that amount
has actually been spent.
The big
impact
of
defense
money
lies
ahead.
are

Orders for military goods

pushed

being

out

and

at

an

scheduled

celerated

rate

peak of about $6 billion
by the middle of the

a

month

are

Deliveries of weapons are
rising. From a current rate
of about $1.5 billion a month they

for some

the charts of business activity.

0n

The third main

factor, consumer
cnonrUno
vxnii
rWirio,
inct
hnw
spending, will decide just how
g00d business will be in 1952.

During most of the past year,
experienced the
economic

we

paradox

of

within

recession

a

Employment has been run-

ning at

over 60 million, gross naproduct at a $328 billion

clip

and

taxes at

consumer

after

income

annual rate of $225 bil-

an

are

in

is

inflation,

whopping big figwhopping big

In spite of these powerful stimuli wholesale prices have

to around
twice that level in July and continue
increasing in volume
to

speed

a year

up

The

which

While

arms, we are

to

per annum.

Committed

ers

and

That

buying

to

High

for

ages

should

plant

and

equipment,

of the manufacturing
our
country is less

general economic

growing

There is

not

that

is that effective anti-inflation pol¬
icies would be unpopular.
Faced with this

with

doesn't

1952

will

of

mean,

course,

necessarily

case,

taxes will take

out of profits.

a

We

be

a

bite

savage

are

capital goods.

may

expanded,

learning

that it is possible .to work hard

are

We would like

the toothache to stop, but we don't
to

want

to

go

where

world

the

the

save

I very much fear it will be

same

way

courage

intelligence to deal with it until

taxes on

begin¬

is

judgment.

simply

out

of

the

More

tend

the

on

to

be

basis

of sound

business considerations, but in the
light of existing tax problems.
The

amount

of
corporation
being drained away
by taxes will place severe penal¬

profits
ties

now

on

growing enter-;,
to- deaden

younger

prises,

and

will

tend

corporate enterprise, just as ex¬
cessive individual taxes tend to
individual

deaden

enterprise.

business and

on'the

industrious

other

more

talented

members

to

levels

countries

have

the

of

in

which

effectively

destroyed incentive and promoted
socialism.

production

ment,

as

we

to

over
are

doing, and still remain
dynamic country

govern¬

in

now
a

members

of

ried

with two

man

earned

he

society.

$10,000 in

fortably
Uncle

our

well

Sam

had

1940

off.

$440

enough

A mar¬

children who
was

excessive

tax

burden

that

has been placed on American bus¬
iness under the mendacious
of

ban¬

fight against inflation has
become almost as serious a threat
ner

our

a

future

economic

strength

The two forces

inflation itself.

—depreciation of the value of the

left

keep

to

fortable little belch.

on

an

the

offer to sell

would have to make not less than

$22,850 to be equally well off.
The

man

who earned $20,000 in

1940 has to make

$57,000 be¬

over

fore taxes to stay even

the

top

executive who

today, and
was paid

one

Continued

on

page

nor a

solicitation of an offerto 'buy

any

of these securities.

offering is made only by the Prospectus.

Development Company

Class A Common Stock
($5 Par Value)

4

-

■

~- J

♦Of which 100,000 shares are
in the United States

The economy

of

getting

its

a

slow giant burp

system.

resume

Now

the

who

'handles

decides

to

'

big

being offered elsewhere than

by Dominion Securities Corpn. Limited.

'

.

,

it

up

and

'*■

;

Price

,,/yA

This

year

be cut down

depending

or

upon

by

Mr.

Bell

Management

before




per

Share

Copies of the Prospeclutmay be obtained in any statefrom such of the
including the undersigned, as may lauffully offer the securities in

Underwriters,
such state.

start

again.

A. G. Becker & Co*
Shortages and
Stimulate

Rising Prices Will

Incorporated

Consumption

White, Weld <Sc Co.

My guess is that the consumer
will become a more active buyer
when, as and if developing short-

Hemphill, Noyes, Graham, Parsons &l Co.

W. E. Hutton & Co.

bring a resumption of rising
prices and renewed concern about
what inflation is likely to do to

ages

the

Conference, American Management
Association, Los Angeles, Calif., Jan. 14,1952.
/
*

$10

-Hi-i

the American purse

open

'

.

Are consumers going
spending or will they

This is less likely to
..

happen in

January 30,1952

,„ufln

x.

heavy

income

tax

Kidder, Peabody & Co.
*

Ladenburg, Thalmann & Co.

the first < part of the year ^yhen
payments are

i

a

home, educate his children,
put something aside for the
future.
Today
that
individual
and

hand and de¬
structive and inequitable taxes on
money

Amurex Oil

-y

com¬

After paying
of income tax,

500,000 Shares

a:

effect

growing,

nice

The

The

velopment. Without it we m gh
have had a much bigger pain late .

No

country can continue over a long
period of time to turn a third of

NEW ISSUE

dp

and

made,

things become really desperate.
The high taxes and inflation of
Meanwhile^ we compound the dan¬
the past ten years have worked a
ger by continuing a phoney war
against inflation, which consists revolutionary change in the status
of
the
abler
and
higher paid
principally of ^raising taxes on

recent

undoubtedly^ been a healthy de-

over

serious effect upon

decisions

more

its

with inflation.

shall not have the

We
or

detist. - In a
boys ruled, I
would ever go to a

until too late to

dentist

tooth.

the

small

suppose no one

V

•

.

the dollar.
a<ddress

we

problem of in¬
like a small boy

toothache.

a

community

The Savage Tax Bite
That

great trick to, it—cer¬
secret—but the big hitch

no

no

corporate

revenue.

The incidence of these

business

to

up

provide

a

tainly

runs

both

now

Federal

ning to have

and

consuming Public H

spending

availability of materials, difficulties of financing or
changes in
*An

indi-

total

stopped cold, almost overnight, by
the adoption of stringent credit
policies and wiser fiscal policies.

business spent $25 bil¬

figure that

General

judge

of

managers

rdrlndorma"rMizen

t0

industry

may spend another $22 to $23 billion for capital expansion. That's

even

I

personal,

has been

™e shortages did not materialize

th,e early indications are business

a

any

half of 1950 and early in 1951 re¬

question is:

than six years old.

lion

large,

cator.

flected exaggerated fears of short¬

going up this year. It could be a
pretty big year if the little woman

1951

and

Congress.

tax

taxes,

and

II,

On top of that

profits

excess

80%

adult people.

War

to 52%.

corporation

This advertisement is neither

Both employment and wages are

In

S

kind will be voted

the last

in

the end of the war Ameri-

of

any

i^crease^

no

^ d ?T?

eltcvAon-nunuea

ail

business after Korea.
scare

business has put $110 billion

facilities

af¬

World
up

tax,
than

more

two bjg waves of scare buying indulged in by both consum-

Since

new

lfkS?hood

in

Income

our

economic

our

the

income

reached

t0

ingly

into

all

40%

corporation
never

This was the reaction

continue in 1952 as they did in
most of 1951 to sock away virtually all of their increased income?

and

Today 40%

manage

fairs like

flation,

+w

pretty plain, ers, particularly those with detheir incomes, fense orders, have more business
have been holding off. than they can handle. But in any

is comto another year of amazhigh capital investment,

can

^n

By

has reached the remarkable level of over $22 billion

has. been

1953.

Capital Investment

mitted

SgS

1952 is calculated to be a rather
undistinguished year economically-.
will certainly not see the
solution of our problems; neither
will it, I think, bring any great
climax in the growing tragedy
t«at encircles our civilization. But
fr w1^ be a good year measured

country

busily preparing

destruction by our utter fail¬

own

as

tbe

talk

we

pro¬

corporate taxes.

cies, has thus far shown no ca¬
pacity to deal with this problem.

consumers

out

Business

for

fmtavL fnrnmi

^

taxes of

of individual savings in

other

democra¬

to

The rate

the

have

increase in individ¬

taxes, mainly falling
upon the politically impotent tax
brackets, and a 60% increase in

industry busy with -was overstuffed early last year. It

defense orders well into

Business

oppose

been

has

like

States,

instead of spending

All of you who have children
have seen the mother, after a
Overall
defense
spending
in feeding, sling the baby over her
1952 may total $55 billion and, no shoulder and pat it on the back
matter what happens in Korea, until it fetched up a nice cornsufficient commitments have been

to

•

nomenon

an

face the bleak-fact that the United

30%

a

They

income

82%.

textiles and appliances, 'sales have year of large or widesoread profbeen slack. Retail stores have re- its for business.i. In all likelihood
sorted to price wars in order to there will be considerable variareduce inventories.
*
tions with some lines finding the
The explanation
of this phe- going prettv difficult while oth-

through the balance of the year,

made to keep

nothing

a

hav^

soft or falling since early
spring and in many lines, such as

also

due

inflation*

on

been

living in

are

ual

bomb and call feverishly for more

pro-

u,y

We

universal inflation, and we

age of

duced

have had three

we

laws.

tax

new

to

^ealmm^fo/hieh^far^^rk'^1
^ere^ill L self-rishtSus
SX wwfi. Z trl
Si JLaf
h,ti mZ™

ple

the

basic overall

one

revolt against these

soon a

Since Korea

As for

economic appraisal

any

arms

system unless

our

shortsighted policies.

The threat of inflation could be

^

this

country.

year.

are

a

b00m

ac¬

to reach

a

b

in

the two

advise; they will squeeze the

strength out of
there is

View

1952.

of

an

heaw^ovemment'sD^^ne Noth7

but it will score pretty high

was,

These

(3) Consumer spending.

year

individual businesses, just as 1951

even

goods—plant and equipment,

will

high

ures

,

(2) Business spending for capi-

1952

year

lion.

for

that

of full employment and
level industrial activity. It

a

economic.

I

Even if every-

spending for defense and business
spending for plant and equipment

tional

tal

good

a

These two factors—government

national security including atomic energy
and foreign aid, both military and
spending

But

bearish next month, 1952

one turns

fighting

in

months
Bell

sentiment.

Usti^foe is goingto bea^r of large capi-

that will shape

Eliiott v.

business

Long

for

longer view, the
factor

ure

Economic

profit—after taxes.

the other—are like

jacked

"t^methens

the prognosis that it will be

to

pay

excitedly about
Russia's development of the atomic

it

being

take-home

to be very active but not show

ness

shaping busi¬
ness conditions this
year that will,
I am sure, be most
frequently dis¬
one

much

show for it, and possible for busi¬

So

about the

Mr. Bell cites following

without

peak.

I

Publisher, "Business Week"

and

Treasury will be tak¬
than it pays out. It

more

17

Salomon Bros. & Hutzler

18

The Commercial and Financial
13

certainly,

•Now,

Continued from page

17

Forces Shaping

the

The Economic Paradox

Thursday, January 31, 1952

**

School of Commerce,

Dean,

$435,000

light of this savage and

the

In

today.

year

a

inequitable tax program and the
abject failure to take any really
effective steps to deal with in¬

intervening

The

Lave

been

13

than

years

government has

It

continue,

can

doubt,

no

sometime to keep the boom

If,
sod.

will

this

not

for

afloat

suffice.

beginning

such

in

in

entire

the

on

the

system.
With
profit¬
able enterprise and venture cap¬
off

choked

of

lack

for

pro¬

Of

a

and

ger¬

capacity,

will

all

solve

earnings

In

the over-all, our cor-'
will have less money

which!,

with

Will

in

necessarily

or

economic

immedi¬

ate and the.long-term future.

Obviously,

_

I should,
but just
very strong

Right here, if I may,
like
to
digress briefly
-

of social
Collins

Rowland

G.

in

make

to"

enough

a

calendar

investment, are hedges
possible inevitability.
Stepped up a bit and tnese devices

against

comment.

we

will

ity

and

the

That comment is this: Corporate

swing into
capacities.

is

that

economy

and

the

next

effective

.

current
at least,

And

dly-winks

opening the flood gates of in-

use

ston, Hoffman & Goodwin, 265
Montgomery Street, members of
the New York Stock Exchange,
other

contradiction economy,

of Edmund G.
as

fice

of
in

Blackb

di¬

Edmund G. Blackburn

the

southern

firm's

division, with headquarters in Los
Angeles.
Before

Coast Mr.
ated

with

Blackburn

was

..

"West
associ¬

Securities Invest¬

Department of the Mutual
Company of New

ment

Life

.

the

to

coming
the

Insurance

York, where he had charge of

the

million in¬
the company's
$2 billion investment portfolio.
Previously,
he
was
associated
staff supervising $300
dustrial segment of

and
Co. as
senior
During
the war, he served as senior econ¬
omist of the aircraft section of the
Hornblower •.&

with

Weeks,

Webber &
security analyst.

with

Paine,

Progress Division of the War Pro¬
duction Board, and as a Captain
in the Army

expand productive ca-;

'

mainly

to

a

or

factors

of course,- is

entirely true!
contributing

are

continuing downturn in .coi>

profits

porate

of

for

statements:

'

Three

urn

manager

do is to

either

formerly

research

busi-

spoken.

Neither statement,

Mr.

visions.

;

American

plain

short

two

pacity.

and

northwest

in

can

their

for

.

(1) The country, is going to hell
on a raft, and
(2) what we need
to do and the only thing business

of¬

northern

was

line

San

Francisco

the
is

man

CU
(,l)

after
of
of

is
is,

There

taxes

the

Bright Staff

(Special to The Financial

lahan,

Jr.

has
H.

become

Bright & Co., 84

Elmer

State

Street, members of the New

York and Boston Stock

Exchanges.




the

tries,

time of
fense
tion

look

long

ahead

easement in

some

needs already

in

building up

ditional

-

shift

to

expansion
when

emphasis from

our

to

re

is

of

"social

wage

in

labor

that

boosts

-

about

concern

mounting

and

outstrip

in¬

productivity,

our

continu¬

costs

the

Inflation

r

replaced at higher with debt.
wholesale price level
Now, however, the

top-heavy '

The

levels.

has shown little net change since

Commodity Prlces aye

early 1951.

tending to weaken rather than to
nse-

'

profits

has

about
squeeze

complicated

on

and • re-

stricted the process of providing
an(j managing
retained earnings.".
And there are significant signs of

Wage and other operating change. Only a bit over a month
costs are definitely pressing up- ago we learned, for example, that
ward. And with the development the Westinghouse Electric Corpoof a stubborn consumer resistance ration
had arranged to borrow
(3)

to

higher

prices

as

well

control

of. muddle

museum

these

pass

on

our

existing

mounting
consumer

markets.

million on a 3%% 30-year
debenture and that Union Carbide and Carbon had also arranged to borrow $300 million- on
3..%%.,. 100-year promissory notes,

the $250

as

impact of price controls, however
weak. and Vacillating our'.pricemay

Obviously, the squeeze

From
seems

oresent
clear

trends

that

our

...

♦An

the

address

general

by

Dean

ple,

assembly

of

Jan. 26,

1952.

is

refuse

to

'

'

proclaim

boldly

Suppose

we

its

sure

results.

put

wages;

salaries, insurance

too

it

to

*

-long-term

that fact is especially so in

corporate" those.'industries
that are
involved
expanding1
before

Dean's

Day
of

Alumni

York

City,

debt.

•

in

strongly
defense

production.- Obviously, tOO, equity

financing," the other alternative, is
£nAn{iAfAa

^

facilitated ,by- present

rates.

4.*^

jt8X

all

escalator

would

be

disaster.
matic

basis.

That would

inflationary
a

invitation

an" open

be

an

to

auto¬

accelerator.

moderate inflation the in¬

it,

com¬

typical

said:

exam¬

YThat

In

purpose

place,

calls

mental

such

upon

the
us

rearma¬

an

objective, I
is part of the primary
of
this
Home-Coming

Program.

,

Without

constant

attention

to

mental

rearmament, how can we
take positive or negative positions
public

on

questions

connected

with

tal

rearmament,

individual

not

our'

business interests?

directly

specialized

Without

how

can

constituent

men¬

we

as

voters

'

rather
a

than

business

as

or

tutionalized

losing its value when people ex¬

tives

by

representatives

enterprise, of

association,
our

If people

a

the

Once, for

constant

with

pect it to remain stable.

than

second

Live

And

money

start expecting prices to rise, then

of

the

We

for

take

sliding scale

That certainly

on

commonly

In

ment."

contracts, and

bond payments on a
or

gone
some

has

World

ac¬

did

''

.

complete self-reliance, to

and, in

"In

less "allergic

to

of

we

(2)

cept the inevitability of inflation,

its and resulting declines in reflationary fraud works bty
buyers' tained earnings is making business,

f

the

prof--

man

*

,

highest approbation. Now, we say:'
"That fellow is clever; he knows'
all the angles."
" * :
v

fight

business

to

getting

integrity and self-fell-^
ance," and thus we expressed our

political

a

we

more

on

There is perhaps no surer sign

man

Question

the weakness of

to

-

phrasings of the past and of the

inflation, either in
Britain or the United States, ob¬
viously, the proper course for the

to

costs

Collins

Home-Loming for Commerce
New York University,
New

on

will

so

and

efforts

our

current moment.

Whatever you and I may think

that have to be

of

And

responsibility

tempted 'more

parison

'

structures

of

sense

them¬

sense

responsibility."

of wnat has

favorabie

capital

who

their

lost

something for nothing.
,

financing

through the sale of low-cost goods 0f

have

center

we

the decisions

upon

self-reliance weakens and

are

-

and

we

of self-reli¬

bureaucrats

own

and

must
not
lose sight of the fact that
there is in our long-look situation

creases

more

social

selves

the'rates
that have s0 long Prevailed., inspite
tne

bourse
course

and

more

old plants by new
will reduce unit
production costs.;
our

decay

moral

way

personal welfare depends less

equipment that
In

for

us

some

and less upon our own efforts and

equipment in

ally

upon

In

the

and of personal

that

pure

mechanization,

-

physical

citizenship, both in its leader¬
ship and in its followship.
As
Big Government shrinks individ¬
ual initiative, we find, one and all,

will need to replace old

we

the

military defense.

out of the character of our Ameri¬

cau¬

time

The

Live

can

and ad¬

new

capacities.

a
de¬

not too far off when we will need

.

is

the

read

integrity. As
authority of Big Government
increased, something has gone

has

to

dictates

inflation

you

beyond

It calls
halt

ance

the

our

de¬

In!
Yes,
philosophically
all for two things,

us

and

(1)

civilian indus¬

our

upon

must

out of business earnings.

affiliated

with

Certainly, in

that

rearmament.

output per man hour.

crease

We

world

necessities of

production in the civilian in¬
dustries
and could
actually de¬

-

flood-tide

wherever

World

a

above

hamper effi¬

to

sure

seem

rary,

is

calls

im¬

any

A

same

The
it

ings.
••
As-you know, for a long time at least some margin of safety.
now, -our industrial corporations "Capital expenditures to modern¬
have shown a strong distaste for ize and re-mechanize our probond
financing, for incurring duction equipment could probably
'.long-term debt, in spite of the tat- increase our efficiency in the ci¬
tractiveness of the low interest vilian industries by 20%. And

Chronicle)

BOSTON, Mass.—John H. Hou-

to

and
sup¬

record, whether it be the story of
the mark, the franc, the kronen,
the continental, or the mulberry
tree money money of Kubla Kahn.

cient

Since V-J Day we have poured
billions of retained earnings into
plant and equipment. To put it
onother way, corporate savings
rather than personal savings have
largely provided us with the necessary funds for the expansion of
plant and equipment. We have
built our present plant by providing and managing retained earn-;

that is being taken

and-more difficult for business to

Joins Elmer

Retained Earnings

forward

dollar

necessitate

ever-downward

an

presses.

of rising wage rates, such
tax status,,i of'C
an
increase could be reflected to
They have avoide(j travelling along the primrose •important extent in lower prices
when defense spending subsides.
(2) Business is no -longer real- path that has led the railroads— 1
izing
large
inventory
profits through the years—to the creation
mere

larger tax .bite

continue to be, it is growing more

Air;Forees.

Corporate Expansion Through

troubled

a
-

great

many

He
gives with straight answers. And
today, when he is questioned, he
is quite likely to lay it on the

appointment

their

such

Typically,
ness

the

research

so

* spirit?"

-

commod¬

manager

upon

in

ventures

ity exchanges,

Blackburn

out

set

ever

look

can

we

would

porting

the

,

a

essen¬

playing tid¬

mean

with

is

For

valuation by starting the printing

portant increases in productivity.
Shortages, even though tempo¬

The responsibility of corporate
directorates and top managements
is as much one Of properly:manparadox of Fear and of Hope has aging earnings as it is one of maknever been so sharp and
striking ,n£ earnings. Indeed, insofar as the
as
it is today.
As the magazine perpetuation of dynamic growth
"Fortune" so well puts it in its is- may be the goal, one can almost
sue of November
last: "When, in say tnat the chief directing and
all history, has any company of managing task is one of providing
builders, or traders, or voyagers anc* managing retained earnings,

SAN FRANCISCO, Calif.—Wal-

announce

the

and

expanding

of the moment, of
Business Gloom i and
Business Expansionism.
This

Of Walsfon, Hoffman

and

an

is

course,

Mgr. for North Div.

stock

of

paradox

or

Blackburn Research

leading

firm

individual

perpetuation

The chief business

and

namic

it

soon

torrent.

flood-tide

nowhere.

tially it would

this

And

such

any

more

swift until it be¬

more

overwhelming

an

short-cut to

ings for distribution to stockholdatomic warfare, it does not seem
ers. And certainly, this particular to wear, to live in, or that are
possible that 1952 can be anything
tegrity in the growing bureauc- responsibility, if overstressed in the means to the production of
except another year of high in¬
racy of big government.
terms of annual fiscal periods, can other economically useful con¬
dustrial
activity, high national
(4) The problem of how to at- obscure the true essence of direct- sumer goods.
production, high national income,
In civilian or consumers-goods
tempt to reach our objectives ing and managerial responsibility,
higher debt, higher taxes and a
without bankrupting the economy namely, the perpetuation of a dyindustries, I do not believe that
continued fall in the value of the
flation.

the

to

of.', inevit¬

They could make inflation

of new
increased
production will be, in the main,
military "hardware." It will not
be in things that are good to eat,
an

surrenders

accep,ance

certain and

get increased productiv¬
increased production in
defense
industries
as
they

accumulation of directorates and top managements
aggressive incidents in the world's can and sometimes do overstress
varied nooks and crannies.
their responsibility to make earri-

and

become

could

complete
ability.

during

year

of their funds

more

or

stocks, tnus modifying
reversing the accepted rules of

Productivity?

(3) The problem of how shall
we attempt to develop-greater in-,

dollar.

some

common

prudent

Increased

Have

We

by

either

productive

capacities.

new

in¬

the

well,

as

loan associations, and
Teachers'
Annuity

and

ings
even

came

readiness

-

not

degree,

a

Trustees, to be permitted to invests

domestic

our

veritable "atom bomb" of

a

creasing ctemanas by life com¬
panies, mutual savings banks, sav¬

bound

seem

to meet the needs of the

defensive

get

increased

fortnight, in Sweden, it has
a
reality and is being

inflationary finance.

expansionism

by itself,
of

terms

still

is

instrument

a

become

called

governmental operation.

wun

dividends and

from .internal sources

an

and

even

net profits after taxesr

in

porations

car¬

internal

nearly

reserves, on

at¬

to

history.

And while in
any such

economy

subject of controversy
economic ivory towers, within

merely

the govern¬

later,

move

our.savings

interest tied to

living.

borrowing

be

economic

threatened by an

not

the outbreak of full-scale

as

to

external

a

maturity.

reach

to
is

end

will

ment

or

re¬

could

alternative

this

of

domestic

is the

variable

a

for

interest

cost

our

to- ills.
Moreover,
as
I
have
in¬
decrease sharply. While the drop,
ferred, it is-not going to be easy
in retained earnings may be off-, to
finance
for
long
the
rapid
set in part by larger depreciation;
present pace of expenditures for

degree
we

gram

yet. Barring
^unforeseen and calamitous events,
the

and

betterment

Already there are. signs
that the boom phase of the cycle
cycle.

But

decline
retained

forward

ry

be a
business

the

in

of

tempt

1953 might possibly prove to

point

sooner

breaking payments.- in

maintained

With

allies.

shall

a

turning

armament

how

be the last year of very
scale
capital
investment,

-

re¬

what

proves to

targe

the

The
problem of

good many economists
business experts believe, 1952
as

nance

record

1950's

(2)

by such spending, but after a time
tven

and

our

dollars.

spent over 550 billions of

.

of

that

eventual

the

And

sult

inflation.

business

our

held

Dividends

to
fi¬

rearm

in"

idends

shall we

gree

attempt

In this 13-year period,

record.

on

toe United States

more

the

It is directorates and top managements; minating seed corn, the voluntary
with de- are reluctant to reduce dividend, system would soon have no more
fiant and stubborn problems;
payments.
In
1951, common fight or growth left in1 it—which
(1) The problem of how fast and stocks listed on the Big Board* fact, of- course, could be seized
paid
the
second
highest cash div-, upon as proof of the necessity for
to
what
de¬

That is
previous boom

any

invitation to

debt.

term

provide

bonds, a rate of

implement expansion is to borrow
and become top heavy with long-

such

degree

a

to

of

rate

will

that

alternative

other

the

wish to equalize its

To

proposal

In!

Live

We

World

The

terrupted expansion.

longer

effects.

world that presents us

a

of almost unin¬

years

Accounts and Finance, N. Y. U.

as open

to

need

we

war,

corporate seed corn.
With
large-scale equity financing lim¬
ited in possibility to say the least,

ital

flation, it is inevitable that sooner
cr later our long continued boom
will break.
Actually a collapse
i;3 long past due. We have not had
a
serious business setback since
1938.

escalator debt contracts

or

flation, who

all-out

an

there are those

accept the inevitability of in¬

of

plant

business situa¬
tion, wherein business expansion is accompanied by business
gloom, lists as factors in downturn of corporate profits: (1)
large tax bite; (2) no more inventory profits; (3) upward
pressure of wage and other operating costs.
Foresees more
corporate financing through bond issues. Decries sliding scale

$75,000 in 1940 has fallen behind
if he does not get
more
than

domestic economy,

we

as

who

pointing out paradox in current

Dean Collins, in

long

so

live, work, and do business short

ROWLAND COLLINS*

By G.

Business Future

is

Chronicler:

(486)

a

of

trade

of any other insti¬
communicate

group,

legislative

letter,

representa¬

wire,

phone,

or

personal interview to express ef¬
fective convictions

on

public pol¬

(inflationary)
fraud
must icy? And yet we know that this
by prices rising faster than is the effective way of influence,
they expect. That is galloping in-! the kind of poll that is listened to
the

work

flation."
'

'

as

compared

with

the

method¬

Unfortunately, here in our own ology of the organized lobby. '

Volume 175

-Number 5086

.The Commercial and Financial Chronicle

.

.

<

(487)

No

Lull in Inflation—How

Long?

-

By DR. JULES BACKMAN*

we

are

experiencing

reflecting subdued

1952,

lull in inflationary

a

following post-Korea

scare buying, tax increases, and credit
Declares a major national problem before us is to
prevent outbreak of new inflation. Barring a breach in wage
stabilization, expects price changes to be moderate in 1952.

v

f\

.

controls.

|

the
have

Federal

past

there will have been

get

deficit,

provided

and a half has clined in the first several months
interesting demon- and have moved sideways since

an

forces

which

complexity of the

contribute

infla-

to

tion

the

and

the

at

August

lower

ing the period of budget surplus,

significant

we

differences

during

which

deficits, we had

de-

can

velop between

thinking

and long-term

these

of

de-

velopments
a

side

A

prerequisite
to any attempt

budgetary

of

lull in inflation,

a

this subject is all

on

Does

it

revise

must

up-

that

mean

their

terpretation of the nature of
flation?

is

necessary

period

down?

economists

review

ta rief

had inflationary pressures and

the

phatic

The

What

no.

is

answer

we

would

ance

from

range

$300

to

On

necessary, for

in-

Korea.

have

wit-

nessed here is that the short-term

.

Bank

bonds

to

in

the

development

government

a

ar-

of

a

new

of

area

price agitation,

government's

i

«

ii

m

if

.

q

vvhSIKC IISSVi

<

.

.

loans

the other hand, the wage
are recouped
by price
rises, and this is largely unavoidable where various types of cost
plus or cost plus fixed fee contracts are in effect, the net result
would be an increase in government expenditures.
The deficit
If,

on

Of Seattle-First Nat'l

increases

would

be

increased

accordingly,

/.

the government to
the banks since

Total holdings of

increase

an

basic'budget deficit.

the

„

mament program has not made it
sell

em-

net bud-

no

is

the expanded

balance,

in-

an

attending

conflict,
I would
expect
price
changes to be moderate in 1952.
The present lull in inflation should
not give way to a new period of

bookkeep-

have increased and this has been
reflected in an increase in total
demand deposits which have risen
from $85 billion in June, 1950, to
$95 billion in October, 1951. There
has also been the increase in bank
debits to which I have referred
earlier.
'
v.

Does this indicate that the basic

short-term

pressures.

levels atThus, dur-

in that month.

tained

which
.

inflation.

of

source

year

stration of the

combined

a

'

The

Government

$600 million. The actual loss of
ing deficit of only $4.5 billioh and revenues would be smaller than
an
actual cash surplus of - about indicated, because not every one
$3.5 billion. In other words, dur- would obtain the wage increase
ing this first two-year period of indicated. The net effect of the
the
present armament program, wage increase, however, would be

and business buying

consumer

flation

;One other point should be noted,

will

pressures,

in wage increases. To state it dif-

ferently, for every cent increase budgetary deficit. Nevertheless,
During the first two years after in wages for the entire economy, in the absence of a breach of the
Korea, that is, up through June 30, the loss in tax revenues on bal- wage stabilization program or, the

Professor of Economics, New York University

Dr. Backman asserts

Net Budget Deficit

19

In addition, increases in wages
add
to
consumer
purchasing
and hence would increase

power,

the

pressure

for

price

rises

be¬

this

expanding purchasing
by the commercial power will take place at a time
banks actually have declined by when the total volume of goods,
$5 billion since June, 1950; the ..available for civilians cannot be
govern-

cause

bonds

ment

relationships which may be influ- holdings of the Federal Reserve
enced by other factors, such as Bank have increased by $5 billion,

increased
curtailed.

and

probably will be
To state it differently,

Wesley G. Schelke

Wash.—At Seattle-

SEATTLE,

aVcTu nhn business and consumer psychology -While on balance there has been significant
whfphV0" may either aggravate or: offset no net change in bank holdtoesof
increases in wages can
....
-Juk#Backm..
vH posedwfor temporarily
the basic inflationary government securities thA *h?ft to spiral
^ and
off.become
anothera new
wage-price
been
pressures
created by ani unbal- the Federal Reserve' Banirc
force in Schelke, Manager of the MuniciI<?
ennrlifinn
w u*e' . I.nfla^10n anced Federal budget. It was the added to the" inflation '
Picture in the months
tL
Whlch e*lsts/when rush ^ consumers to buy before At the Dresent ti^P ^n ,!1,' ahead*
spending
fhVa
i
f°f shortages developed and the build- Price level is some 10% to
the Possible
time available
it has
avail hip
? Va
°f ing UP of inventories by business higher than it was in
notIn been
to discuss all
S/S«anRd servic^ at for the same reason, which ex! However] the price rise hS been °f the factors which influence in& too much
TnTelzL^hin ?lain-d th? reIatively sharp rise due primarily to anticipation jf flation in an ornament economy.i
to goo?s prkes rise
Bill Would Clarify
This condf
thr°Ugh March 0f 1951' shortages and fears of
LvhlVhfn W6
cover only
tion develops because
nf
accomPanying wide- rather than to an actual inflation
in ter.ms
of today's
the current nrndnpfinn i
+ a spread fears of inflation, even resulting
from government fi condlbons, the picture may be
Rights of Savs. &

First National Bank, Wesley G.
pal
Department
recentlyBondelected
Assistant-wasVice-

:

nSlnli

a

iaflatl0n

V

woi

monev

goods,

and

(b)

the

government

have
the

inAtrif-o K1

on

In part

business

l

during the first

extent of $14 billion in the fiscal

/-vf

Korean War loans rose by almost $10 billion
In that
f)ar^>three
tbis from June, i950 to March 1951

inr

large

tax

fact

The

have reduced

increases

and

nsumers

81
in

to. spend.

TJ

business

Kncf

-mH

k

°f

Post-Korean

have Si"
abated largely
tuskessmen'have
*¥
businessmen

Budgetary Policy

which

developed

was

by Federal budgetary
deficits. Thus, immediately after
the Korean War started, a splurge
of buying developed with the conThis increase

February

increase in prices
reached

and

its peak in

March

Paradoxically,

during

of

1951.

this

first

consumers'

nine

hand,

months

of

Government
moie
more

than
tnan

during

had
Had

$9.1

taken

ter neriod

fin'ri

a

wa&

savings

.

j_

accumuLttT b? business

last

sonal

savings

annual

---ill

increases are
granted in the steel industry, the

TJas

the introduction

with

taken

.c

-

—

i!..— J-

T-

—

1

II—

1

—

J1

Tr

"'

Thesavings
new bill
would
placeatifederal
and
loan
associ
ons
on
a
parity
with
state-chartered
savings and loan associations, and
would
applythethevarious
restrictions
force under
state lawsin
iecourse.
bank
However,
the
psychological
factor
to
federal
and
state-chartered
unavoidable It has to be considered in this con- institutions alike. The ^biU, S.

Korean ends
confIici 'Even if inthisthe conflict
lmmedjately, I am convinced that
ries F F L r u 2
u- ?u" we Wl11' and that we should, conFederal deficit S of fhcA™
'mue
spend thedefense
projected
sums
vkinrmri
? ,
on ourto national
program,
hnrrrm/iAJ mG

rate

increased

of

$10

Per-

from

billion

in

an

the

,

.

,

rnon^bs
Busiinventories have shown only

nme

2517, was introduced in the Senate by Sen. Burnet R.-Maybank,
Chairman of the Senate Banking
and Currency Committee.

t"
be made" ,Thel'? ' The third paragraph of the bUI
?? pressure to get restricts federal savings and loan
{"eady no^* More emphasistW
would f-?!
associations with respect to estabT7

o? uiafSrt'woulK"

pro!

restricted

In effect,
bill that
vides the same
tvne ofthe
oaritv
2 larger ^^ology which "was
now
beUveen State
Ttto
Federally-chartered
It
the latter connection nant a year aS°mu
, i
• banks.
w
,,
that
3t the
the current
current steel
steel wage
wage case
case
Hot War and Psychology
. Tbe Proposed legislation would
}s important. Past experience has
Conversely, it also follows that fart"ei^
no
indicated that a general increase should the hot war emerge on any
a- ™eral savings
in steel wages soon spreads rapid- new front, psychological factors assop^atlC)n
}y throughout the economy. An will contribute to a prompt re- dUbS1do
in
increase of ,one cent an hour in sumption of the inflationary pres^
su
wages for the economy would add sures. Because of the simultaneous Sltuated$1 billion to business costs. These increase in the government defi- The Provisions of the
wage
increases will not
be incur- cit, suchthan
pressures
couldright
be more
therecommendations
Home
red
by all companies
at- the same serious
they were
after amendment
Loan Act ofto1933
are in accordthe start of the Korean War. In aPce with the
--^
time.
Nor
will
all
workers
neces- the start of the Korean War. In
VVi"1
AiTipripfln
sarily participate fully in any in- this connection, it must be kept made by the Savings and Mortis granted. Never- in mind that a major contributing ga#e Division of the
Americar
crease which is*
t
an effort
cuhstantial increase in fac
theless, a substantial increaseThis
in factor
to the lull in inflation has Bankers Association, in an effort
been the lull in consumer buying, to clear up confusion resulting

SeSSfVW^"prke'o'r
3" ettfHve
barrier
to the
in cos,^ due to price or ^
emergence
of the type
of inflation
.

predom?

^
budget dlficT
deficit.
^u"
•
is

•
in

ih

.

Provide that andbranch
loan
shall be established
of the state which the
association is
proposed
Owners'

u-

'

11

—

LS

rnQtc

Ind

exlts

..

.

wnniH

COnilCC'UUIlj

It

II1USU

UC

nlarp.

takp

-

-J

U,r

~

IVCjJL

CoTTi'n

+V.Q

£——

cfc

Q

TVTort-

nrI

4La

lYitrioiAn

would take place. This been the lull in consumer buying.
would affect the Federal budget Savings have been at a record rate.
i" two ways. If wage increases are Any development wh.ch encourgranted and cannot be recovered ages consumers! to spend ™"eand associations
wage costs

oY'thT

—A

Hrtmo

Home

T.nnn

LoaS

^
°^e Board has per^tn^dB^deral savings and f0an

result will
revenues
government. The

period, to *n price increases, the
a rate of about $22 billion in the be a
}* ™ in
...

nection. One effect of the termination of hostilities probably
w°old be to extend the period
during which our armament ex-

«<>» may make it difficult to spend

June 1950-March 1951

Thic
This

received by the
C0rp0rate income tax ranges from

icpc,

P

'

,

After the Korean War started,
the anticipation of shortages and

t0 establish

branches

which in many states are contrary
to restrictions placed on statefinancial

pharfArpfi
..

.

institutions,
,

.,,

,

■

52 t0 82%, depending upon the inflationary finance, led to sharp including building ana.ioan assuThese level of earnings, whereas the price rises. During 1952, we will ciations. Joseph Earl Perry»
0ffset the f*rst tw0 brackets for wage
earnhave the V>realization
of
thetVlP
short- president of the Newton Savings
OO O/^
4a
rd
CTAaHc
OTlrl
ers
^
approximately 22%
to ages for hard goods and the in- Banj() Newton, Mass., is President

ness
minor changes since May.
haye

nave

helped to

u'p

«w> n

mnf, large budgetary deficit which de'

York
University School of Commerce, Accounts, and Finance, New York
City, January 26, 1952.




was

guuus

bu"sidnudi increase

-i

factorg
latLuia

New

goods

„

On

thaf nrWc an
prices ae-

Horac-^ComIngDme^ce

uuictuie

•

Yet, during this lat-

wp

^

a" j fn\° ^winlPupTtaventofv

is the situation which is basically

inflationary.

tott wTthinn

clear tnat wit

the volume of personal

billion
in
in.

not develop

flected in
substantial increase
-a^Sntial'?ncrea^

-Fe i?

1951, the Federal

spent

it

the

uic

psychology has been

getary surplus of $5.1 billion and
other

t-iiai.

pomPietely
suspended. This change
in consumer

nine months after Korea, the Fed.
eral Government reported a budcash surplus of $7.7 billion.

that the

tb.o Present projected plans, there
continue to be a considerable
Production of many civilian produ.c*s' sucb as outomobiles, televiS1?n se*s' radios, household apPim/mes, etc. This is in contrast
the w°rld War II situation,
when the Production
of many
durable

caused

sequent sharp

the
i"c
hope

of
ux

jnt°
anba^1
" has become

after

the start of the Korean War

result
iwuii

a

Korean War would

Divergence Between

interesting to note that the

inflation

,

.

,evels —>g a ^

earlier

"iflationary

"eW

Inflation and

f.

to^revent In ,D,u""g the period since March.
as

the

1

the turnover nf

ZZi

SyTLUS1 ~

not

To the extent

wage

e

? contlols bank debits, which reflect checks it may be decreased if a nearpf../
down con- bank
(ji-awn an(j hence the turnover of settlement is reachpH in Fnro
deposits, increased some 20% The TefSt'cantlecr^6 t

to

/ace at this time is

It is

4-U*.

the

**

hiKlSl
nrnient^nf^ hfi
c°urse, that
blQlslc1?essm^n a
I
1Un " year and
subiprt
ufsua
be
,ey* Thg Hirit !!
n?odlflcati°n.
to tempo of'he w«
hotter

arirf

consumers

crease

Govern-

other
sumer

0f

also

ability of

the need of the Federal
ment to borrow and the

imoosed

step

clarification of the
t^hts ~0f"federal"sav£ngs and loan
that sigas|ociations to establish branches
t0

nearer

the year

as

year

iltiAM

J «<hO/f K

T"6 Set,,?ff rowing from the banks. Such bank

5 a
eaJi,v.m
u
reflects the

lull

a

nificant

waxL bHy g wblcb followed inventories in large part by bor-

u

the"

moves on.

evident

WASHINGTON, D. C.—A

Vei nT"6"* program' and bY increasing consumer cred- b™ borro v ng "fro" d "
rati ofhaS IefIeCted '"5 U by $1-7 billion Businessmen ll On baiancT theri havl"
buvlni wh'^Tn a"1 nanced their greater holdings of demotions of SI 7 hilHon th»

after the

^

probable that they will

more

ernment will berin the red to the

th

subdued
thp

we

mma/Ih/iI

Utr

seems

President's become

Loan to Branches

is difficult to pinpoint.

pressures
It

the

to

ss wssfssrsa

budget message, the Federal Gov-

their

nine months after the Korean War

been experiencing a lull in
inflationary pressures which

«i

examined.

According

two

^iH
S. 2517, in the Senate,
l'
'*•
4.U/.
llrtrino
ending June 30, 1953. On the pressures will be aggravated and'.
amend section' 5 of the Home
started by cashing in their Series basis
of
the experience in the the timing will move forward. In
owners'
Loan
Act of 1933, as
E Bonds to the extent of $763 past year and a half, it is difficult part, the exact timing of new inamended
million, by drawing down postal to be very hopeful that the gov- flation pressures will depend upon

Present Lull

months

be

^e

in-

financed,

Consumers

of

Through

Cashing

creased purchases

number

a

Financing

E-Bond

excess.

The

For

must

"ion

^dr 01

—u

Consumers'

(c) people and corporations fail

to save the

«-—s»

ssm

fails to tax away all of the excess,
or

President*
Se-attle-First inPrior1947,to-joining,
Mr.
Schel
ke
was with R. W. Pressprich & Cot/
in New York for 15 years.

Jim! ifl\n'

a

yeloped

during

the

past

nine

+a!

i

r

25%. Thus, the government would
lose in revenues from 30 to
60

,

mOnins.

cents Out of

every

dollar granted

a

rtnc?

discU8sion
Juieg

1T1

O

of

these

Backman, Economics of
Inflation, Rinehart &
o.,

factors

—-

see

Armament

,

0f the

1

n

ir

1

-

Savings and Mortgage

vision of the ABA.

Di-

20

The Commercial and Financial Chronicle

(488)

Thomas

H.

President
Bank

News About Banks

tive

BRANCHES

REVISED

This

George A.

man,

Kittrick

dent,

R.

appointments are incident to a
revamping
of
the
out-of-town
business of the bank which will

McGinley, Vice-Presi¬

has

in charge

placed

been

of all Trust Department activities
of

The

Midland

Marine

Company

o

New York

cording

Trust

vision

f

made

town

22

P

is

for

active

been

Chamber
years

many

positions,

such

Chairman

and

Adviser.

Mr.

Sloan.

by

as

of

ident

the

of

tion

Bank

Settlements

Administration

his

back¬

was

Pres¬

Grieb,
West; John W. Gates, Jr.,
West; Minor L. Wheaton,

Central

Middle

Man-

Acting

Chief

and

the

of
'

#

#

of

C,

Award
Service.

Southwest and

Company,

Far

L i

also

Match

o n

thony

Company, and
F.
R.
Tripler
&

Company,

Inc.

At the

W.

•

time, Mr. Blaine
of Roland

same

Mahood

The

Sec¬

Assistant

an

as

in

officer

vestment

With

building
if

if

Ji:

;'r:t of

\

.

Anthony

Assistant

Treas¬

Manhattan

the

of

months of

and basement of. the

the northeast

on

Fifth

first

to the

alterations

three floors

Trust Department.
;■

Bank

extensive

Personal

the

Assistant
G.

an

Company, after seven

Mr. Mahood is a trust in¬

retary.

as

and

an

as

was.

/

urer.

the election

announced

Grace

Froehlich

Ophuls,;

election of An¬

the

Vice-President

R.. McGinley

John

of

F.

C.

Ernest

Announcement,

West.
made

corner

Avenue, and 44th Street,

regret Robert T. Stevens,' officially opened its new midtown
headquarters on Jan. 29.

Chairman of the Board of the New
Federal

York

nounced
the

Reserve

Jan.

on

Bank,

the

23

%

an¬
on

Francis

19.50.

of

day

who was for¬
merly (during 1945 to 1947) Sec¬
of

War,

S.

of Excelsior Savings Bank of New

York,

serving

after

;'

•_

-

$

•.

Gerrish

Ridley
to the

tile

H.

;

°

.

V;

B i 11 h

as-

New

/

have

" V'-

been

of

Bank

it

announced

was

Mr.

Milliken

is

tion

Vice-President

and

of

sales,

and

is

Mercantile

Savings Bank,
he

Stores

Co.,

Inc.

Mr.

of Spartan Mills, Inc.

-

He is Vice-

Counsel

Hospital,

look
and

Hospital
a

trustee of Over¬

a

in

Summit,

N.

J.,

director of Colonial Life In¬

surance

Sons Co.

Co.
.

C.

and

'

B.

Cottrell

;>

Trust Co.

Vice-Presidents, have been elected
Vice-Presidents
the

Manhattan

York,
ment

of

according to
on

Jan.

the

25

an

will

be

of

of

New

announce¬

by Lawrence C.

Marshall, President.
Jr.

Bank

Company

located

Mr.
at

the

Baker,
bank's

the

first

the

of

years

of

service.

mains

as

a

He

Mr. Smith re¬
Trustee of the bank.
his

started

with
and

the

bank

later

held

business

the

Secretary,

troller, and
Comptroller.

offices

Chase
York

and

*

,

'■

.

Clarke, Richard E. Foehl,

Robert

U.

Halteman,

Vice-President
Bank

William

C.

Schmidt

Second Vice-President, it was an¬
nounced

W.

on

Aldrich,

Jan.

28

by Winthrop

Chairman

Board of Directors.
and Mr. Schmidt

Brokers Loan department.

are

of

the

Mr. Bowman

and

other

the
New

in the bank's

cember, 1913, became Comptroller

urer

Assistant Treas¬
to Assistant Vice-President,

in 1917, Treasurer

and

E.

Assistant

Presidents.

Mr.

been

with

Manufacturers

since

1922.

ciation

J

•

-j

Club.

us

is

the

Trust
of

elected

of

member

a

Esquire

in

Robert

is

He

bank

Morris

1

Asso¬

Financial Management Asso¬
ciation.
It has likewise been announced

by President Flanigan that How¬
ard

F.

tant

Sunshine,

formerly Assis-"

Vice-President

Estate

in

Department,

named

the

Real.

has

Vice-President

in

been

charge

of that

Department. Mr. Sunshine
has been with the bank since 1933
and

made

was

President

Corp.
nue

in

of

515

well

as

Corp.

Assistant Vice-

an

1949.

At

the

bank's
and

the

vanced

to

Tropp
with
and

the

Avenue

Ave-;:

it

same

was

also

Vice-President.

v1' '■■■ *

ad¬
Mr.

banking

career

1918

Trust

in 1924.

Following the
President
turers

announcement

Flanigan

Trust

that

of

by

Manufac¬

Lloyd

Speed

Stone of the bank's 149
Broadway
office has been named an Assis¬
tant Secretary, it has since been
further made known
by President

Flanigan
John

that

G.

Carl

and

Beutel, both of the Se¬
Department, have been
*

The

Oelkers

Board

National

Secretaries.
*

=

of

companies, particularly the underwriting

•5t *'

i

>

trust

of

capital securities of such

institutions.

'• **>?
4

meet

of

u




13 to vote

Feb.

on

Brooklyn
on

will

a

pro¬

posal to increase the capital Stock
of
the
bank from $1,100,000
to

$1,250,000 by authorizing the sale
of an additional 7,500 shares of
$20

value

par

stock

at

$40

per

share, it was announced on Jan. 21
by Walter Jeffreys Carlin, Pres¬
ident.

.

v-.'.-'w■•••■

'•^*
"

The

"Quarter Century Club" of
The Dime Savings Bank of Brook¬

of

held its

Y.,

N.

lyn,

dinner

20

Jan.

third

at

including

women,

and

men

pensioned

14

who have 25 years

employees

or

of service with "The Dime,"

comprise the membership.
with

came

1926

were

bers

at

Robinson,
in

bank

Seven

Dime"

"The

accepted

the

new

as

meeting.

in

mem¬

Edward

P.

who
came
with the
1923, presided as Pres¬

ident

of

Jamestown, at Jamestown, N. Y.,
a

of

member

State

Reserve

the

Federal

System, and The National

Chautauqua

Bank * of

County

Jamestown, consolidated, effective

The

City Bank of New York

and

Bank

Chautauqua

title,

new

Trust Company

&

of Jamestown.

In connection with

director of the

office of Union Trust

bank

the

well

as

of

ated

by Union Trust Company at

consolidation the former main

the

Westfield

A11 y n

,

a

branches

d i

o

to

stitution.

r e

ct

r'

At

the
Cash

a

23

Stanley C. Allyn

The

adopted

resolution

a

ac¬

now

operated

as

in¬

Register

of

is
the

Co.;

&

Western

St.

if

Officer,

of

Marvin

/.!■;.

if

of

of

the

f;

Central

The

Richmond,. Va.,

election

L.

Jan.

on

Presson,

16

Execu¬

as

tive
Vice-President;
Hilton
J.
Herrmann, Vice-President; Rich¬

I.

ard

Schwarzschild,

ident,

and

Cashier.

'■V'"-'

Vice-Pres¬

Harvey C.

.

Higgerson,

f

'/V'

*

The directors of The Charleston
National

Bank

of

Charleston,

Va., announced

on

Jan. 8 the elec¬

tion

Crickard

of

ident.

Mason

Mr.

fore

Crickard

been

W.

Pres¬

as

had

Executive

hereto¬

Vice-Pres¬

ident. ■'

.V '

'

Raymond J. Spaeth, Vice-Pres¬
ident

and

Institute
elected

State
Mr.

Treasurer

of

director

a

Spaeth

the

of

Illinois

Technology, has been

Savings

of

the

Beverly

of

Bank

Chicago.

graduated

was

from

American

University, Wash¬
ington, D. C., in 1930.
He ob¬
tained a master's degree in busi¬
administration

ness

f

the

r o m

Harvard Graduate School in

serving

American

Assistnat

as

Manager

and

bursar

University,

1932*

Busi¬
the

at

he

joined

the Illinois Tech staff in 1940.
named Treasurer in

was

Executive

Secretary

in 1945.

urer

He

He

1942

and

was

Vice-President in
;■

■

v

At

the

and

Treas¬

promoted to

October, 1950.

directors

if

.

if

annual

meeting

of

Northern

The

Company of Chicago held

the

of

Trust

Jan.

on

15, the following changes in offi¬
cial

positions

Banking

made:

were

Department

Hinchliff

In

the

James

D,

promoted

was

from

Assistant Cashier to Second VicePresident

and Wesley W. Gratz,
A., Heinsen and Albert O.

Henry

Mantuffel

v

annual

the

Jan.

organizational

was

14, F. Raymond Peter¬
re-elected

board;

Chairman

of

President

director,

and
Cash

National

McCall

Louis

Allegheny

RR.

C.

re-elected

was

Walter

elected

were

President

and

Senior

Albert

J.

ViceBaisch

Assistant

also

Walter

re-elected.

S.

Grau-

lich, who has been with First Na¬
tional
in

the

Bank

since

Personal

Co.,

and

sumer

Credit

RR. Co.;

and

elected

Assistant

October,

Loan

and

Department,
Cashier.

1946,

From

Carl

T.

to

Lam-

to

Second

Vicewas

Secretary; in the

Legal Department David S. Sampwas

in the

A.

promoted from Attorney

Vice-President

Mattmiller

Pekie

in

and

Attorney;

Operating Department John
was

Vice-President

Con¬ ier;
was

promoted

promoted from Assis¬

Manager

elected Assistant

to

were

was

was

Vice-President

President, and Hume S. Dice

to their offices of Executive Vice-

officers

Madigan

President;

-

tant

sell

Other

J.

Second

brecht

and Peter Cimmino were returned

President.

regret.

Allyn

1

directors

announce

Vice

ter

for

cepting his resignation with deep

cago

are

by the consolidated

Wesley
Bensen,
Vice-Chairman, and Benjamin P.
Rial, President.
Andrew De Rit-

the

than

Russell,

Investment

if

held
son

y ears.

Trust

The

from

the

director

S.

F.

Stewart, Assistant

Rudolph H. Weber, Assistant

meeting of the directors of First
National Bank of Paterson, N. J.,

Register

as

Norman

Cashiers; in the Trust Department

Company, has

Mr.

as

him.

of

Board

Company

the branch formerly oper¬

Stanley C.
a s

Jr.,

Personnel Officer.

County

Chautauqua

National Bank

election

and

the charter of The

on Jan.
29 the retire¬
ment of Col, Edward A. Deeds as
a

and

sistant

ness

Company

Trust

Union

Mc-

Treasurers; John J. Leigh and
Matthew Mankus, Assistant Secre¬
taries; Thomas E. r Longden,, As¬

After

•..."'.;>■•
if

«.•

if

The

K.

McTaggart,

on

Forty-three

Brooklyn.

annual

F. -Figgs,

Montgomery, Francis E.

O'Rourke,

the afternoon
the Hotel Granada,

meeting

National

Corp.; Pittsburgh, Cincinnati, Chi¬
January 29, 1952

of

Otis

Harold

John

National Bank

Lafayette

the

Assistant

to

New officers

Rudolph A. Biborosch,

were

W.

E.

'

announced

director

LEHMAN BROTHERS

Bank

National

Dec. 31, under

*

Directors

to

*

of

who

Manufacturers

*

.

Shareholders

more

his

Columbia Bank in

joined

was

Irving Tropp of
at Eighth Ave¬

Street

began

di¬

a

Lexington

office

34th

is

Madison
as

made known that

nue

He

prior

and

years

the

Alan

present election has served as
Assistant Comptroller.

hattan Club and New York Credit

more

charge of relationships with banks and

Mortgages

Cluskey,

David

of

Real Estate Officer.

his

a

and

27

for

with

been

has

Cuddebank

Credit

1931.

Comptroller of The Bronx
Mr.

Savings Bank of New York.

ciates, Esquire Credit Club, Man¬

served

and will be in

of the

title

Trust

to

changed from Man¬

was

of

ager

.

Wilford W. Cuddeback has been

Trust

Mr. Hill began with Manu¬

facturers

bank

has become associated with

'i*

•••

regular meeting

At the

from

Stewart,
Officer

Trust

The

Officer.

Witham

Cunningham has

He

and

National

MR. BARNARD TOWNSEND

Richard

Assistant

Manager in 1931, and President in

appointed Assistant Cashiers.

the New York Credit Men's Asso-?

man

to announce that

General

and

April, 1940.

Col. Deeds,

pleased

Vice-President

Vice-

who is Chair-

are

in 1926, Execu¬

Jr. and John H.

formerly

S.

Theodore

and

from

advanced to Vice-Presidents. Both

succeed

We

Frey

Mason,

been

of

of

in De¬

A.

named Assistant

has

an

James

were

E.~

George

were

Bodine,

curities

j:

Bowman

National

and
^

^

Midtown Office at Fifth Ave¬
The

Sec¬

Vice-President

B.

and

As¬

Comp¬

new

Street.

of

Secretary,

v'. .'v.<

appointed

career-

stenographer

a

as

Vice-President

Francis

after 48

year

nue

44th

The

Board

F.

troller, Mr. Everett Smith, retired Co.
on

ond

Jr., Theodore
N. Calhoun,
John W. Gates, Jr.. and Minor L.
Wheaton, formerly Assistant

Guarantee &

former Vice-President and Comp¬

sistant

J. Stewart Baker,
W. Brooks, Patrick

Billhardt

P.

and
for

Title

the
John

President of the Beekman Down¬
town

Vice-

w a s

President

Deering,

Watts is Executive Vice-President

the

Excelsior,

on

charge of Orion
also a director of

with

the

by

Katzenbach, from Assistant VicePresident
to
Vice-President;
J.

James

rector

&

Milliken & Co. in

prior

to his associa¬

director

a

formerly

dent and

Jan, 28, by Harold H. Helm, Pres¬
ident.

Billhardt

Vice -Presi¬

.

Company at 320 Broadway,
York,

a s

and

was

elected

Chemical

dt

c e-

Mr.

and

Jr.

a r

First Vi
President

Comptroller..

Advisory Board of the Tex¬

Office

Trust

",C

It

Milliken,

Watts

Board

meeting of stockholders.
promotions
approved

named

elected John P.,'

Secretary of War, died in
an,, airplane
crash at Elizabeth,
N. J., on Jan. 22.
J"

the

that

announces

Trustees have
■

.

annual

Executive

board of directors of the National

-

of

Ur.der

•

President

Bancroft,

'

Mr. Patterson,

retary

of

of the bank following the

York, has announced that John J.{, City Bank of New York, held on
Cunningham, of the bank's office? Jan.
22,
James
T.
Fitzgerald,
at Fifth Avenue and 18th Street,
Harry W. Flath, Albert F. Frey,
and William H. Hill, Jr., of the
John
F.
McNeely,
Howard
L.
Union Square Office, have been Nixon and Frederick A. Pina were

member

*

Co.

Jan. 21 by di¬

on

rectors

National Cash Register Co.

President!"

Trust

was

Philadelphia

of

Melber

.

death

Robert P.
Patterson, a Class C Director of
the Reserve Bank since April 21,
previous

'

«

Manufacturers

Allyn

Pennsylvania

The

honorary LL.D. by the

•

Flanigan,

Mr.

of

Chairman

Company for Banking and Trusts

University in 1946. He joined the

tive;

ECA

:

Distinguished

for

Navy's

„

ufactu ring

Com¬

in numerous

positions

Public

_

Horace
of

the

of

Trustees

holds

awarded

Mission to the United Kingdom,
&

Corp., except for service in
S. Air Force covering a

U.

of

graduated from the University of
Wisconsin
in
1913,
and
was

Interna-

London,

with Household Fi¬

was

and director

organizations. He holds the U. S.

Basle;

in

Board

and

Chief
Payments Divi¬

and

Department

President

mittee for Economic Development,

the

Affairs

for

in

S.

U.

merce,

other economic and philanthropic

ground, Mr. McKittrick

of the Trade

the

a

Com¬

of

part

nance

of

is

He

in various
Committee

Monetary

As

Mc¬

in

Graulich

of

Co.

1946, Mr.

June, 1939, to October,

Com¬ period of almost three years.
if
if
sit
of
Community Chests and Councils
William Fulton Kurtz was re¬
of America, Inc., Member of the elected
President
and
Board

.Vice-Presi¬ sion, Office of the Special Repre¬
in New' sentative, Economic Cooperation

houn, Southeast; Lester F.

rector of DuffNorton

in number

seven

has

International
merce

Walter
P.
Andrews,,
also
Middle Atlantic; Patrick N'. Cal-;

di¬

a

to

will

divisions

geographical

England;

McGin¬

Mr.

ley

made

was

In¬

member

the

Commerce.

dents Theodore W. Brooks

id ent.

res

The out-of-

Janson.

L.

H.

Driver, Jr.

R.

and will be headed by

by James
Blaine,

G.

William

increased

be

Jan.

on

J.

and

an

Leslie

Vice-Presidents

of

Coleman,

announcement

the general super¬

under

be

now

ac¬

to

United
Interna-

the
of

announcement

the

Life

Thursday, January 31, 1952

.

Business Advisory Council

surance

the Execu¬
the

of
of

Chamber

York,

New

of

Mutual

Northwestern

the United States Council's Chair¬

CAPITALIZATIONS

John

City

Council

national

Bankers

and

NEW OFFICERS, ETC.

the

Committee

States

CONSOLIDATIONS
NEW

of

National

Chase

has been appointed to

member of the Board of Trustees,

Vice-

McKittrick,
the

of

..

was

elected

and

E.

elected Assistant Cash¬

the Comptroller's Depart¬

ment Maurice E. Graves

moted

Second

Arthur

from

Second

was

pro¬

Vice-Pres-

Volume 175

ident to

Number 5086

Vice-President.

.

.

The Commercial and Financial Chronicle

.

Thomas

F.

Duffy was elected Assistant
Manager of the Investment Re¬
search

„

President

new

tional

Bank

of

Bank of Atlanta and

Assistant

*

Murray

of

as

First

Na¬

Minneapolis

was

Chief Examiner.

of

Mr.

Vice-President

American

National

was

Bank

officer

1

a

announced

s o

Promoted

staff.

President,

Vice-

S.

Harry

has been associated with the bank

since 1936; Clarence A. Berg, pro¬
moted

Vice-President

to

bank's

stock¬

ington,

at

and

Green,

Jr.,

of

Edgar

F.

Zelle,

•

followingthe
annual

meet-

holders

of'the

Jan. 25. Mr.

of

years

becomes

a

Gordon

94-year

Murray

of

has been
unfilled since the death of Arthur
First National. The post

September. Also an¬
Jan. 25 was the elec¬
other directors, Victor

H. Quay last

nounced

on

tion of two

members

new

Directors,

U.

Rotering,' Senior Vice-Presiden of the bank, and G.
Allan

S.

time.
the

Navy
Two

title

R.

win

has had the full authorized

num¬

directors and it is also

the

first time that

four; officers of the
simultaneously been

have

bank

elected to the board."

withdrawal

Bagnall

and

A.

H.

tial decline in

to

bond

Offi¬

Trust

Assistant

Smock

and

be

at

at; the

designated Pro Man¬

at the Anacortes Branch and

ager

Otto

Krueger

Manager,

the

at

Canadian National

the

Railways. In 1944, he became Gen¬
eral

Traffic

Line

1948

was

Canadian

of

Vice-President
Pacific.

of the Soo
selected

Manager

in

and

Soo

the

to

returned

He

1950.
director of

Line as President in January,

Mr.

is

MacNamara

a

Minneapolis Chamber of Com¬
merce. The new directors fill posts
the

resulting from the action of stock
holders in increasing the size of
the board from 23 to 25. Also filled
was

a

board

the

from

to the resig¬
of Alfred

due

vacancy

nation

E. Wilson who has retired and will

Mr.,

California.

in

home

his

make

Murray, the newly elected
of the vFirst
National

Bank,
his

will

25th

bank.

Ohio

next

observe
the

summer

with

anniversary

lican £lub,

.

mistakes

says

He

joined First National's
staff in September, 1927, and ad¬
vanced through various positions,
having been elected as Assistant
Cashier in 1938, Assistant Vice-

made due to

were

and attempts to justify past
At the conclusion of his address

before the Women's National

Re¬

publican Club in New York City
Jan. 26, Senator Robert A. Taft,

on

Ohio, aspir-

of

|

ant for the Re¬

publican

nom¬

ination

for

President;
failure

U.

d

S.

Western

000

due

was

President

to

Truman's

of

rors

er¬

to

Europe—

successful in

one-fourth

one-third

of

1951, Stalin directs 800,000,000

Unless

it

ten

tion, "What is
the
record?"

^

\7

1945, when Mr, Truman be¬
came President, the Soviet Union
was exhausted.
Much of its indus¬
"In

empire
our

conducted

doubt."

stated:

sure

In

ing the ques¬

Robert A. Taft

ruled
not

was

Or

than

Taft

180,000,that
would survive.

1941, Stalin
his

has

years,

foreign policy
competently

more

been

the last

during

very

our

in

Murray is

1943

Vice-Pres¬

and

member of the Min¬

a

neapolis Grain Exchange, Treas¬
urer
of the Northwest Crop Im¬
provement Association and of the
Christian Rural Overseas Program
Of Minnesota, trustee of Nortnrop

School,

Collegiate
member

of

council,

Boy

He

is

the

Minnesota

Chapter

The

•

and

national

Planters

Trust

or¬

of

as

Jan.

15

National

Planters

Vance J.

National

Company

Memphis, Tenn., has

phis.

the

of

of, Robert

Bank

Union

Bank

name

America.

Credit Men,
was a national di¬
of the organization.

ganization of
and formerly
rector

of

President

Associates

Morris

board

a

Minneapolis area

Scouts

Past

a

and

of

changed its

to

Bank

the

Union

of

Mem¬

Alexander,

Pres¬

ident, announces that "this change
made solely in the interest of

-„was

brevity

amendment

any

deeds
our

does

and

or

not

trust

other documents in which

name

appears."
*

%

was

hold

on

China
nese

into

destroyed.

It

Eastern Europe was

shaky,

ally and the Chi¬
Communists were hemmed

a

survival is in
/

:.7":'\7V

Kenneth Osborne Joins

Gruttenden & Go.
7 CHICAGO, 111.—Kenneth W. Os¬

our

of

as

held

such

Street,

York

Exchanges,

Stock

to

1947

Midwest

Comptroller.

as

Mr.

members

and

Osborne

was

Vice-President of Portis Style In¬

had ever held dustries,

man

no

Salle

New

the

Prior

Truman

"President

La

South

small area.

Inc.,

term of 30-35 years,

well be ^V\%.

Such

a

cou¬

rate would permit the Treas¬

ury

to

compete successfully with
the

cause

interest

would

rate

be

adequately above the average in¬
stitutional
investment
require¬
ment

importantly, be¬
dominating marginal

and, more
the

cause

impact of such

ing

a

Treasury offer¬

would increase the pref¬
for
Treasury bonds and

(a)

erence

(b) deter

some

demand.

periph§ral private
'7:- '*■'7

■,'v;77V-7

.

of
the staff

Comptroller

securities become eligible in

ury

May and Jun'e.
With large-scale
deficit financing in the offing, it
would
seem
cJesirable- for
debt

of these
One

curities.

to-be-eligible

this would be to offer
marketable
out

test

bond

long-term

a

(1) for cash, to

invisible demand

the

se¬

of achieving

means

for

properly priced Treasury securi¬
ties, and (2) simultaneously in
exchange, " to insure a large total
subscription. Under the latter the
Treasury might permit holders of
the
to-be-eligible securities; to
in, at some fixed price
close to the then-prevailing mar¬
turn these

quotation, in exchange for the

ket
new

issue at par.

Obviously,

7

what

will

steps
take

cash

of

<

we, do
the
debt

to

financing

maximum

not .know

the

meet

and

managers

problems
to

induce

non-bank

R.

Parten,

Chairman

of Directors of the




of

the

promise

7/

system.

the

in

&

com¬

bankings

the

of

loans

about

bring

to

increase

substantial

?

NY Garb Ticker
Service le Canada:
Exchange stock*

quotations will shortly

and; bond

trading,

be carried direct from the

of

Curb

ticker

in

T.

network to investors-

Laidlaw & Co.
the first

exchange.

of

the

of

New

will ibe

York

firm

member

Curb

the

over

,

it was announced by
McCormick, President

Canada,

Edward

exchange

the

floor

provide

to

for its Canadian cus¬
through the Curb-operated

quotations
tomers

which has grown by
during the la;jt

ticker system

27%

than

more

months

fifteen
close

800

to

now

covers

im-r.uji

of Columbia.

the4 District

7 Laidlaw
Toronto

&

Montreal

Market.

.

r;:

'l

■

Toronto

that the

are

Curb

.

announced

Stock Exchange

for

arrangements

completing
installation

the

%

„

McCormick also

Mr.

and

Montreal

the

of

and

*

offices m

has

Co.

and

members

is

and

installations

States cities, 32 states

United

of

Ex¬

Curb

a

change ticker on its trading floor
keep its members more closely
touch with transactions on the

to

in

market.

Toronto

A

New

York

Stock

Exchange ticker is now op-,

erating

Exchange

Curb

of

announcement

"This

•

the

on

7:i7:7 '■/"7:777

floor.

first Canadian

'

1.
our

installation closely,

year-end statement
wherein it was pointed out that
the Curb's fifteen year high total
follows

of 44

our"

new

stock approvals totaling

60 million shares in 1951 included.
12

issues

totaling over 34 million

from

shares

Canadian

corporate

.

•

guaranteed the speedy de¬
nation that might
dare
to
risk war with us. We
could
have seized and held
the
initiative for the creation of a
and

free

leaders

world.

peaceful

did

not

know

where to lead.

how

Our
or

7.

"Today Stalin has atomic bombs
and
of

long-range
He

has

capable
the United
Soviet divi¬

bombers

delivering them

on

175

stock

demand.

which

struction of any

sions, and 60 satellite divisions in

Federal

tax payments and

.

and

NASD District No. 13

Potential

Avalanche of Private
Funds

;7;v773iMs Officials
District No.

The

13

Committee

'National. Association of
Securities
Dealers
h a s. elected

.of

H.

the

Wilson, Union Securi¬

Warren

ties Corp.,

Elected
serve

Chairman for 1952,
to

the

committee

January,

between

to

now

and

then

Europe and
army

a

Chinese Communist

of about

,

on

further

excha*

our

of

spread

cm;r

Canadian

"I look toward future

the

ol

neighbors."
Canao

m

certifi¬ development with the utmost hcpi)
Ainstrument that is pref¬ and confidence," he added,

Treasury offered a savings
cate

(an

erable to

a

savings bond) that can

kept adjusted to open-market
rates and to changing economic
be

avalanche of nonfunds would tumble into the

conditions,

1955, were
K. Bassett, W. E. Hutton &
until

If

listings

the

ticker network into the offices
our

bank

I

fully expect that she faces mu
prospects for coming

nificent
nancial

population, growth."

and

an

D. A. Lomasney

Treasury's coffers.

Earl
The
potential volume of the
Co.; Paul A. Gammons, Bradley, funds that can be induced to ac¬
3,000,000 in Asia.
Gammons
& Co.;
Edward S. cept Treasury securities is so vast
Reserve
Bank
of
has some 50,000 tanks
Dallas,
an¬ He
and
Hinckley, Adams & Hinckley, and that
properly
priced
securities
nounced that, at a meeting held more than 15,000 tactical aircraft.
G. H. Walker, Jr., G. H. Walker could be sold in such an amount
Jan. 16, all officers of the bank His Indo-Chinese accomplices are
& Co.
that, by the Autumn of 1952, com¬
and its branches were re-elected draining the strength of the French
District No. 13 includes the mercial-bank holdings of Treas¬
for the year 1952.
He also an¬ Army. His guerrillas are with¬
nounced that N. B. Harwell was standing
the British
Army in States of New York, New Jersey ury securities might be reduced.
At the moment, the prospects are
elected
an
officer
of
the
bank Malaya.
He has riveted an iron and Connecticut.
J.

Board

Mills '

from

pressures

recently reduced corporate liqui-7

management to reduce the availa¬

bility

that

likely

purchases.
issuing agencies," said Mr. Mhbefore. Our Air Force was incom¬ Stanley Wessel & Co., on
We believe,
however, that if a
Cormick.
"It is becoming more,
parably superior to any other. of Ernst & Ernst, and for about long-term
marketable
Treasury
Our Navy was more powerful than
15 years was associated with A. G. issue were to be offered in the generally known that the New
York Curb Exchange is the lo¬
the combined navies of the rest Becker & Co.
«
late
Spring or mid-summer of
tion's leading market for foreign
of the world.
Our Army was a
During most of 1947 Mr. Os¬ 1952, at a yield commensurate
securities and I fully expect bert
superb fighting force at the peak borne was chief financial analyst with the supply-demand relation¬
economic growth of
of efficiency. Our industrial plant, of the economic and scientific sec¬ ships then existent, the rate set the recent
Canada and especially its develop¬
by far the greatest in the world, tion of the Army of Occupation in would mark the point at which
ment of natural resources will
was intact.
Tokyo, Japan.
He is a certified the Treasury market would be
reflected in additional Canadi'.m
stabilized
by a
broadening
"We alone had the atomic bomb public accountant.

States.
if

<

was

power

necessitate

wills,

to

try

a

if

$7.4 billion of ineligible treas¬

he

is

pol¬

Senator

so

and

subjects and

people.

judg¬

ment and

"In"

•

Treasury

pon

the Italians vote Communist.'

foreign

policy

225

end of 1952.
psychological

that

Europe
French

the

of

in

the
Soviet
by

—

warfare has been

of

"

Stalin's
scheduled

are

divisions

30

Moreover,

that

t

the

ourselves

the

such securities,

on

.

and

private credit demand, partly be¬

face

To

rate

if,

rates or

the next few weeks, it seems

debt,-' mercial

stage

the

granted

are

wage

New York Curb

The

could

judgment

poor

over

offer new is¬
marketable
long-term

they carried

Eastern Europe,; China

ally.

perhaps

as-

s e r

e

v,

in

increase

an

successfully
of

workers

the .steel

if

bonds.

had no borne, formerly Treasurer of B/G
atomic bomb, no long-range bomb¬
ident
in January,
Foods, Inc., for the past 41/2 years,
1947.
Active
ing planes, no serious navy.
Its has joined Cruttenden & Co., 209
in business and civic affairs, Mr.

President

the

which

upon

sues

divisions the Western democracies
and

ex¬

Such

appropriate,

advance would be

an

cf

rates

discount

the

the Federal Reserve Banks.

dity,

G. Lanston

might

in

advance

inevitable

pansion in the

mistakes.

on

his

have

*

7

control
is

a

Treasury

accept

Plan corporate

public

Senator, in speech before the Women's National Repub-

icies, Answer¬

President

during

to

period
just
prior
to
an

and would set

Russian Menace: Taft

entered

with

1913

private

Seattle

West

Truman's Blunders Created

Bankers. Mr. Mac¬
railroading
in

City

Reserve
Namara

in

made : Pro

was

retard

-

expansion

debt

base

First Henne¬

President of

is

healthy. It

the

Broad branch.* Robert

was

•

may

deficit
financing with a
resultant in¬
crease in the money supply.
.One of the preludes to what we
envision, a final and substantial.,
downward adjustment in Treas¬
ury security prices, might be an

would

ture,

Trout

Robert

Manager

prices,
junc¬

this

at

Ed¬

Assistant Manager

Hoquiam branch

1951.

substan¬

banks

commercial

the

have

its

since the
support
in

A

Soo

pin State Bank, a First National
affiliate. Last year he .was VicePresident of the Association
of

par

branch.

1908, Mr. Rotering since 1949 has
been a Senior Vice-President. He
also

rally

of

provide

National in

ing career with First

completed

March

Aubrey

his bank¬

Line Railroad. Starting

about

technical

third

F.

MacNamara, President of the

has

witn

elected

were

that

believe the Treasury security

:T

market

would

the

Dexter and

board

T.

named

was

Barclay

our

men

Mackay.

time in

ber of

been

Assistant

of

ing, Paul L. Danforth, Vice-Pres¬
ident, noted that "it is the first
that

the

in

years

has

and

cer—Walter

regarding the meet¬

years

ments.

Peoples National Bank since that

viz.:

Sound Freight Lines

some

Mr. Rogers served

three-and-one-half

Carlander, President

In his advices

President in

history

H.

Trust Officer.

Joshua

announced

Inc.; E. L. Blaine, Jr.; O. H. Has¬
kell; Mr. Cecil E. Jenks; Howard
H. Hansen, the last four named
being Vice-Presidents of the bank.

director, is the
eleventh
the

of

urges a 37i% rate on
bond, as competing with private credit demand and 7
leading to reduction of commercial bank holdings of govern¬

30-35 year

r

Wash.,

President,

of the .Puget

age,

also

who

"V

Seattle,

Board

Clarence

44

Murray,

'

.

the election of five

held

directors
on

'

'

'

President, Aubrey G. Lanston & Co., Inc.

Treasury security market authority

from

ings of the

by

Chairman

the board,

-

Assistant

Vice-President, has been
1949.
'/■/.. 7 'v; ;' . .
.
..
■/ with the bank since 1941, serving
SjC
$
7,
as
officer in charge of the Real
Following the annual stockhold¬ Estate
Department;
Harold
A.
ers' meeting on Jan.
15 of the Rogers was elected Trust Officer,
Peoples National Bank of Wash¬ having held the title of Assistant

announced

Treasury Bonds!

on

By AUBREY G. LANSTON

Goodfellow

and

Company,4 Chattanooga,
Tenn., before coming with the Re¬
serve Bank of Dallas in February,

Trust

Hike Rate

Vice-

to

Assistant

from

21

a

promotions among the

President

an

the

of

Green

number of

previously served as

examiner for the Federal Re¬

an

serve

Election of Gordon

the

the title

Mr. Harwell

Department.'
*

.

with

(489)

Co.

Admits J. T. Cashmaa
J. T. Cashman has been admitte d

partnership in D. A. Lomasney
Co., 39 Broadway, New York
6, N. Y. Mr. Cashman has been

to
&

with

the firm for some

Ellen
drawn
in the

F.

Lomasney

from

firm.

general

time.^
has

with¬

partnership

22

'(490)

The Commercial and Financial Chronicle

'

Thursday, January 31, 1952

...

r

Canadian Securities

scene

reviews

of

Canadian

the

during 1951 and the accom¬
forecasts
of
economic

panying

conditions

current

year,

the .whole

on

not

are

the

for

optimistic,
altogether sanguine as to

though

the final

turn

tinue

spending

sumer

stated

in

Review"

the

the

Montreal,
1951

recent

of

"Busi¬

Bank

of

developments

in

and
attempts to appraise the outlook
for 1952 are further complicated,
"stumped

experts"

the

not

only by the unpredictable in¬
ternational situation, but also by
the uncertainties of consumer be¬

havior.

Commenting
another

situation,

this

on

bank

Canadian

publica¬

credit

consumer

some

prices declined, it was found that
inventories in a number of lines
excessive

were

the

for

1951

is

of further

one

the

at

ture

deal

expansion, the pic¬
year-end is a good

1950.

industries

Today,

and

a

number of

mostly in
the sphere of consumer goods, are
less than fully occupied, and un¬
employment so far this winter has:
trades,

been

their

goal.

taxation, and the in¬
of deferred deprecia¬

in

troduction

been

is

often

exaggerated.

"A third and more fundamental
reason

for the change in

business

attitudes is the fact that many
the

demands

deferred

lated

of

.accumu¬

This

the war and early
postwar years have- been
met.
After the splurge of buying in the
during

seems

pressed

by

the

people

slackness

mand for certain

im¬ sumer goods industries
in de- - reduced."

were

are

products and by

much

; '

All

to

us

own

If

from

7

be

v

al

controls,

•

in

impersonal

if prices of government se¬
are not permitted to seek
their
own
level, within reason,
case,

curities

then the disastrous effects of such
a

policy create

a

for imposi¬

cry

tion of

rigid restrictions, such as
restraining the investor from sell¬
ing his governments. Not only
such rigid

structive
but
-

the

of

they

are

we

such

as

free

economy,

quantitative

for

the

time

The fact is that

being

expansion of Canadian productive
capacity," the review states. "For

rough bal¬ not
only are there the large added
between,
requirements of the Canadian de-,
the expansive and contracting in¬
fense program but there are also
fluences in the economy, and opin¬
the heavy demands for such com¬
ions differ as to the trend in the
modities as iron ore, aluminum
ance

new

has

been

a

reached

year.

and nickel from the United States

"There are several reasons for
this radical change in the business

and

atmosphere.

development has quickened mark¬

The first, and-prob-

ably most important, is the natu¬
ral

reaction

from the remarkable

intensive

and

splurge

of

buying

that followed the outberak of

war

•

other

allied countries.

"The pace

of Canadian

funds

away

Much

uses.

from

non-

be

done

can

also, and is being done, throughv
voluntary programs among lend-"

WhatOurMonetaiy
Policy Should Be

edly in the past
of

ence

The influ¬

year.

Alberta

oil

and

gas

in

particular has been spreading ever
more
widely.: Many new wells
,

in
on

Korea.
a

The

scale

buying

which

wave

could

not

was
con-

CANADIAN BONDS
Government
Provincial
Municipal

Corporation

have been brought into production

with

and

the

pipeline

tenance

of

prosperity for a short
Nevertheless, continued

period.

money, low ^interest
and : the
accompanying
easy

prices

will

justices

to

economy.

strife

as

rates,
rising
seriotis in¬

produce

large

groups

in

to

Further, they stimulate
people strive frantically

ing institutions,: such as the Vol¬
untary Credit Restraint Program."
*

When Deflationary Forces Are
Needed
Let

consider

us

however,
in

our

in

the

/

for a moment,;
deflationary forces

the

and

economy,

in

which

the

claim

easy-

to

be

so

I

Although in all

common

sense

Lake
ally easy-money proponents, I am
Superior in operation output of
also opposed to those people —
crude petroleum in 1951 ran about
and we still have many of them
two-thirds higher than in 1950.
with us—who feel that nothing
Large-scale exploration work has
can
be
done
through monetary
spread into Saskatchewan and re¬
measures to promote
stability and
fining capacity is being steadily
prosperity. It is true that mone¬
expanded. The recent approval of
tary controls; if used with less
an-application to build an $80 than the
highest skill,-may work
million pipeline across the Rockies
to the disadvantage' of the econ¬
to Vancouver gives additional im¬
omy. It is entirely possible that
petus to the whole development.
they may introduce distortions
The
question of exporting gas which
increase, rather than les¬
from Alberta remains unsettled
sen,
the difficulty of economic
but availability of natural gas is
adjustments.
The history of the
already attracting large-scale in¬ last few decades shows
clearly
dustrial development, particularly
that they may be employed at the
in chemicals.
-* ■''
wrong time, or too suddenly, or
"As a result of the great surge too timidly.
The effect of their
of expansion in
and
as

incorporated

New York 5, N. Y.
d

WORTH

4-2400

NY

1-1045

making generating tur¬

and

dynamos,

Boston O, Mass.




pipe,

products have been kept operating
or

close
time

same

to

capacity.

the

added

the economy as
ulated

a

ment,
source

first
new

a

At

the

activity of

whole has stim¬

high rate of operations at

plants turning

Fifty Congress Street

steel

various machine tools and foundry

at

Two Wall Street

power

metals, such heavy industries

those

bines

A.E. Ames&Co.

oil, electric

and

uui railway equip¬

some

projects
important

of

are

the

new

re¬

at

use

times

special

may

groups

be

rather

construction

of

benefit

than

the

whole economy. But these cannot
be
criticisms
of
monetary con¬
trols.
poor
am

They
use

very

are

criticisms

of the

of monetary controls.

that
distant
with the

assume

sort

of

then is best calculated to achieve

twin

goals

prosperity?

In

of

stability and
period such as

a

present, when we are faced
with strong inflationary forces in
the
coming year, - even though
are

forces

some

which may tend toward

the

maintenance

qualitatively.
credit

example,

open

General

credit

personal

in

controls

consistent

with

of political

have

made

can

are

be

more

preservation

democracy.
all

are

that

Treasury

1

familar

Federal
open

government

with

Reserve

the
and

market purchases
securities have in

easy-money

work
ever

out

insurance

com-;

our

destiny with what¬
arise in
an
objective

of interest may

rate

connection

with

designed to stabilize our
It is the permanent low

policy

economy.

interest

rate, held there by ma¬
nipulation, which is anathema to
us
and a robbery of our policy¬

interests! of

in

which

policies

There

is

varying factors which
considered, and many
to

be

not

an

countless

are

must" be

different
reconciled

mediate

wellbeing,

in, which

factor

mar¬

ket

policy can be agreed upon. It
should be obvious, however, that
period ahead

to

continue

we

cannot af¬

adding

billions

man,

monetary

controls

achieve

stable

a

tendency to criticize

the

inflationary period

ing at
posed

large investor who during this
sold

govern¬

a

they
if they

to

obtain¬
am

as

the

which

the

future,
and

laxes controls

a

departures from

prospect

it

as

best

so

applies

to tend

as

a

tightmone¬

objectively

economic

discerned,

op¬

easy-

I would be

policy. I advocate

considers

ous

to,
adapted to,

perpetually

policy

tary

are

perpetually
a

to

adapted

are

policy, just

that

prosperous

conditions

a

life

a

help

can

given time.. I

to

opposed

as

believe

and

if

any

money

for

I

im¬

reasonable

a

short,

insurance

can
or

be
re¬

to offset

stable, prosper¬

level.

If,

by governmental agencies.
There is

may

our

important

an

is

rate of interest. In

money

open

to advocate

occasion

on

to be contrary to

economic

supply

money

one.

with

that we, are prepared

the

govern¬

to

the

policyholders so
these goals,

our

tied

closely

only

of

and their relation

belief in

ultimate happy end¬

life

no

fears to face that possibility.
We all, I believe, are willing to

America

problem

inflationists is not prompted by a
an

believe

pany

and

The

mistakes in our handling of mone¬ of dollars to bank
reserves, as we
tary matters in the past, we are not have done in the past two years
justified in concluding that noth¬ through open market purchases

ing should be done in the future.

I

prices.

ment securities

ford

a

the

earnings on our, funds invested
the. benefit of policyholders.:

greatly to the
money supply, thus making more
difficult the task of holding down

in the

in

as

.

recent years added

easy

decline

a

for

appear

You

of

the

im¬

are

their' effect,

effective, and certainly

fact

'Obviously,

in

It calls for general
holders and all thrifty people.
such as, for oneThe goals of stability and pros¬
market operations.
perity are so important, and the

appropriate

we

policy.
result

controls

an

because

deflation,

stabilty and
prosperity calls for a monetary
policy designed to curb the flow
of money both quantitatively and

before

am

present

of

humble about that state¬
I

policy

monetary

faced

are

and, speaking
insurance
man,
reduce

life

What

view

aware that hindsight is a
lot clearer than foresight. Never¬

we

so

interest rates

Needed

of

acutely
theless,

Controls

points

ment, however, because

future,

not

or

prospect of deflation. To be con¬
sistent, we must
then
change
from a tight-money policy to an
this would

Qualitative

and

I

leading to the My opposition to the

railway lines in many years."

to

more
-

Credit

there

I must be opposed to the perpetu¬

and

more

future,

easy-money

the

advocates
interested.

of

.

Quantitative

end to the destruction of the very

money

out

money.

the

prosperity

be achieved through a blind

pouring

inflation, and
almost inevitably will lead in the

.

CANADIAN STOCKS

will

our

to offset the effect of

resource

con¬

need qualitative controls,
Regulations X and W, to

defense

„

active.

„

generally ineffective.:

In addition to

trols,

are

restrictions fatally de¬

•

more

their

are

should

;

.

foregoing

not used when they
be,
specifically
in this

effect,

strange admixture of

a

I think the

exemplifies this: If proper gener¬

this, the "Monthly Review"
the size of inventories in a num¬
notes, does not indicate -that in¬
ingly, the end product of their ing. if only we leave things alone.
ber of lines and look forward into
flationary pressures are more than
recommendations
is chronic" in¬ Much can be done through mone¬
1952 with misgiving/ Others re¬
temporarily checked.
•
*y/
flation.
....' '■
'
tary measures to promote a stable
main impressed with the strength :
"The drive toward preparedness
and
prosperous t America.
But
of inflationary forces, and in many
Obviously, inflationary policies
has given additional. impetus to
neither stability nor prosperity
lines, of course, business has never
may on occasion aid in the main¬
been

govern¬

way

any

governments
at artificially
was contrary to pub¬

ing

'•/.

page

of

sale

the
in

was

channel

Continued

not made available for

were

lic interest.

the

mean

afraid.

are

severe

private

more

contrary
public interest, then the Fed¬
eral Reserve's policy of support¬

of realism and fantasy, of ideas
and mere phrase making.
;
On balance it adds up to ineffectiveness or worse,
-we

often

was

to

truth and nonsense,

tion—by the expectation of higherj remained, and there is little doubt
prices and strong markets and by that the backlogs of demand for
the fear of shortages. Today there »' housing and for improvement of
is no uniformity of opinion about" plant and equipment in many con¬

to

because

ments

breaking
many old barriers.
It will
mean
breaking the shackles of unjust land tenure
which now retard production and keep millions of
people impoverished. It will mean breaking the
bond of illiteracy so that men and women all over
the world can have the opportunity of education
and can lift their heads high in the dignity of human
worth."—Harry S. Truman.

mand for durable consumer goods

criticism

housing.

of

effective

quite

there

high levels

"This will

President Truman

These measures have on the

whole

vision and their

own

ernments

funds

can

the sale of gov¬

Even with

field.

be

can

that other people

so

monetary and credit restraint, the

somewhat
greater than a
earlier though not quite so? autumn and winter of 1950-51, it
questionablewhether
great as two winters ago.
The is highly
contrast in
the business atmos¬ any important backlog of demand
for
such
things
as
automobiles
phere is even more striking. A
year ago, it was ruled by infla~- and household equipment still

Some

help them

atmosphere is of course the delib¬
erate measures taken to combat

increases

direct

Our task is

inflation, including the policies of

year

the outlook.

We must

icyholders.
The alternative was
government lending, which
was
so
evident in the housing

cannot

we

be,done and how it

done,

■

end of

people;

higher interest rates, this also was
directly in the interest of the pol¬

and

must

grasp it in terms of their own
needs and desires, and make it

varied than that at the

more

with

We

others, dispose of

among

government securities to aid in
meeting the .demand. Because of

hold out the vision of what

can

frequently

and

required that life insurance com¬

panies,

venture

our ways

others.

help themselves.

to

cost. The second reason
change in the economic

in

high

though their influence in the de¬
cline which has occured in the de¬

of

to

this

in

impose

on

boss them.

basic commodity

issue states:

record

customs

work

supply of savings, and to my mind

'*

succeed

cannot

we

tied

tion.

the

'

..

"To

ing. This in turn called for capital
in excess, of the available

funds

if

if

'•

When sales began to slack¬

off and

en

'

marked

a

tion, the "Montly Review," of the
Bank of Nova Scotia, in its latest

"Though

if.
J'V-

significant part of future in¬

up a

the

in

increase

never

dispropor¬

rose

tionately to incomes and

comes.

As
ness

in

part on expectations of shortages
which did not materialize.
Con¬

events.

of

based

long and was

for

calling strongly for expansion of
industrial capacity and of hous¬

forget that the only war we seek
is/the war against poverty, disease, hunger and
illiteracy. Unless we win this struggle, we cannot
win the cold war or prevent the hot war either.

WILLIAM J. McKAY

By
The

ing this period public policy was

Strange Mixture!

"We must

will recall that dur¬

You

ments.

A

as

I believe,

an

administered

monetary

policy with
constant
adjustments to prevailing eco¬

nomic

then

conditions
we

have

is

called

largely

for,

answered

Volume 175

Number 5086

.

.

The Commercial and Financial Chronicle

.

(491)
the second question, "What agency
best

can

administer

effectuate

or

that policy?"
Both the Treasury and the Fed¬
eral

exert

can

great pressure

monetary

our

supply of

Accompanying rect

lavishly, seemingly without there

more

effective check

any

by the citi¬

the

price
the

and

exer¬

can

the bank¬

Executive Branch of

toward

easy

Reserve

quirements, margin requirements,

from

and

the

consumer

credit,
regulations

other

many

which it

these

and

enforces with

banks.

and

the

have

great

Both

also

influence
and

agencies.

monetary

Treasury

Reserve

indirect

the banking system

lending

respect to

the

Federal

on

other

on

Obviously,

istered by either agency. It should
be observed, however, that if ad¬

by

the

Treasury,

the

policy would in effect be set
directly by the Executive Branch
of

the

Federal

carried

through

and

all

probability
Federal Reserve Board

a

subservient

other

Government

in

out

the

to

Treasury. The

alternative

is

administra¬

tion by a Federal Reserve free of
domination by the Treasury and

relatively free from direct politi¬
by the Administration.

cal control

,

jmdffd

my

.Federal

of

is

even

much

better

These

the

now

able

to

view

the

take

of the

broad

point

of

economic welfare

of

do

not

During 1945-51, Britain

of

the

Had she

indicate

impartial agency is impos-

an

should

make

pendence
and

of

the

an

it

They

its

of

agency

nection that the Federal Reserve

dent

the

of

Executive

the members of the Board

are

ap¬

and

pointed by the President, with the
advice and consent of the Senate,
their tenure of office and the

Fiscal

which

or¬

on

the

close

we

all

published

of

the

February,

which

Administra¬

them.

members

can

in this

bring

neither

a

ally

policy

we

promote

a

stable and

perpetually

a

as

conscious of the

injustices and pitfalls of inflation
it is of the dangers of deflation.;

likely to give

to

Reserve- is

handle

that the Fed¬

say

me

better

equipped

monetary policy.

any

aid the Board in

of

trial

learning.

Its

familiar

with

and

error

members

goal.

practices and
of lending agencies. It
developed an excellent re¬

search

organization

its

to

supply

monetary policy. Certainly, a
.agency would make
many

new

mistakes which
avoid.

These

it has

things

learned

to

to

which

I

.have

referred, however, I must
in time could be developed by

say

to

depend too much

nation

can

Second,

the vision of the Fed¬

Reserve

eral

biased

by

the

ity for the
faced

that

by

severe

clouded

or

direct responsibil¬

many

fiscal problems

debt
for

concern

to

the

ance.

not
as

inflation .because

of

rate-on

pon

securities.

new

of

refunding,

of

and

the

prospect that the government

may

have to go to the market for still

funds,

more

Treasury in

jectively

does
a

not

the

monetary

in the country.

to

the

the

situation

This in itself dis¬

qualifies the Treasury
suited

leave

position to view ob¬

as an agency

determination

of

Dr. Paul

Einzig

would

forced financial assistance
ment

under

and
a

the

financial aid; is

sections of British opinion
prospects are viewed with growing
many

It

it

would

•

be

„

■

,

j
\
j

[
{

>

;/
.

.

have to be

on

so

drastic that they

would

Britain under the Socialist Govern¬

Conservative Government.-

unlimited

amounts

of

Charles Waldmann, Jr.

Horace L. Michener

To Be Partner in Firm

Opens in Philadelphia

-

is feared that,

American

Between 1945 and 1951 almost

money

were

Charles J.

acquire
7

time

as

arose

solely

There

crisis which
result of Britain's effort to do her share in Atlan¬

willingness to assist in overcoming

as a

and

on

L.

PHILADELPHIA, Pa. —Horace
Michener is opening offices in
Savings Fund Build¬

the Western

will

be

admitted

to part¬

ciated with Hess & Co., Inc.

municipal bond trader.

a

more

weeks Chancellor Butler will announce the

and

more

to

centralize, and

more

and

more

to

become bureaucratic

aiming at checking the gold drain.
be unpopular.
They will involve heavy sacrifices.

Within

a

few

government's measures
These measures are bound to

It would be

i

•

>

M. J. Ruter Opens

S. & M. Oil & Gas

BROOKLYN', N. Y.—M. J. RuSAXONBURG, Pa.—The S. &
is engaging in
M. Oil & Gas, Inc. is engaging in ter
a
securities
a

is, however, another side to this picture.

&

„

Britain for the purpose of building up and bolstering up the
welfare state far beyond the country's own means. In 1952 there
no

Exchange,

the New

'?

ing to act as dealer in railroad,
nership in Kean, Taylor & Co., 14 public utility, industrial, invest¬
Wall Street, New York City, Ex¬ ment company stocks and bonds
change members.
Mr. Waldmann and bank and insurance shares.
has been with the firm for some Mr. Michener was formerly asso¬

Feb.

upon

or

membership in

Stock

York

Waldmann, Jr., will

lavishly showered

ment over the past decades




'

not

incomparably less liberal attitude towards Britain

tic rearmament.

We

of American

greatly strengthen left-wing tendencies in British politics. Many
British Conservative quarters are very bitter about the striking
difference between the way in which the United States virtually

jpart of the Executive Branch.

the tendency of govern¬

}

In the circuminfinitely preferable to solve it at least in
large part through American aid. Such aid is needed, not for the
sake of more "feather-bedding," but in, order to cope with the situation created by rearmament. While it is right and proper that
the government should make an effort to do away with over-full
employment and to cut down over-expanded public expenditure^
it would be deplorable if the magnitude of the effort were such
as
to' endanger political stability and sacrifice long-range economic prospects.
'
"
stances

At the present
drain, Britain would exhaust

in the absence of
American aid, the measures that will have to
be adopted in order to check the gold drain

concern.

is little

seen

by

where the

monetary policy. Over and beyond
this, however, the Treasury is a
have

absence

shared

the Treasury. The management
the- public debt, the constant

problem

[

new

-

government

•

,

sible, but it would involve very heavy sacrifices.

drop in the ocean.

a mere

rate of the gold

[

of Britain's balance of payments

aus-

-her gold stock before the end of this year. :
; Mr. Churchill's
display of equanimity about

government

spending of the past decade, and
the
resulting large government
debt, have placed great pressure
on

;It is

cou¬

export, will curtail purchasing

£

Taking everything into consideration it seems that the solution
problem is by no means impos-

wise in

.pices of the North Atlantic Treaty Organiza¬

the

"; The tremendous

was

tion—about half the amount granted to France.

of

f

drastic

modem- j
plant while British industries will be handicapped by obsolete *
plant. All this will not help export trade in the' long run.
j

financial assistance,

$300 million granted under the

some

reduction of capital

a

that Britain's industrial rivals will have the advantage of

election year. So as far as is known, Ameri¬
can financial assistance will consist of the aid

;

se¬

'

'

secure

by

■

ized

American opinion does not appear to favor

of

concern'to

the

expenditure.

steel, not gold. He

attempting to

*

■

machinery and equipment is discouraged and the machin- f
ery and equipment thus saved is exported, it will assist the imme- ;
diate balance of payments. Taking a long view, however, it means
j

an

•

maintenance

fceep down fractionally

in

more

any such assistance, and the Administration
could ill afford to disregard public opinion in

it would-advocate the support at

i

Last, but

In his speech before Congress he declared that what Britain

overwhelm

high Revels of government
curity prices during a period

Foresees

pro-

necessity, the government will have to

and will release productive capacity for rearmament and
export industries. The other side of the picture is represented by
the consequences of nonrenewal of industrial plant. If investment

without such aid,

even

•

power

came

produc¬
drastic credit restriction and

more

wanted from the United States was

stable economy. I doubt that

a

salvation.

will reduce purchasing power.

no means least,investment will release goods for

LONDON, Eng.—Mr. Churchill is returning from Washington
without having secured for Britain any American financial assist-,

the

government

,

along with

would permit preoccupation
the interest burden on the

with

its

not

dollar aid, and
own

reductions in government

Treasury. I doubt
independent Federal Re¬

an

serve

of

is

on

work out its

tion for export,

another agency.
•

under the pressure of

Mr. Churchill's return from U. S.

on

the

manpower and it

ceed with the cuts and take the consequences.
•

without financial assistance, holds during 1945-51 Britain

some

utility scheme and the discouragement of [
instalment buying, it would inevitably antagonize wide sections of
\
the public.
Any cuts in education expenditure/ for instance, i» .
bound to cause resentment among millions of people. However,
j

By PAUL EINZIG

Dr. Einzig, commenting

rise in the cost of productions t

government expenditure will also'
con-'j
restoration of sounder conditions.
It will f

to the termination of the

No U. S. Cold Foi Britain

it

which to base

on

towards

release

more

the

with information

.'tribute

its
■

^problems
-has

pursue

though the narrowing down of the domestic t

.'•V Drastic reductions in

of

and

are

objectively to
~
:
•'/

even

market is apt to be accompanied by a

Congress give it the independence
it needs

many

years

export trade,

clearer statement of its respon¬
sibilities in this field- and that

It has had, now many years of country as whole, there have been
times in the past when the Exec¬
wrestling with the difficult prob¬
utive has attempted to bring di¬
lems of monetary control,

enabling people to spend far beyond their X

mobile

a

w.

j

Such restrictions

Instalment buying plays a very important part in the auto{
industry and in the radio and television industry. Both. \
these industries could be kept fully
occupied by rearmament or— t
ders.
A discouragement of domestic demand would
also help^

ther

considering, not provide the Federal Reserve with

the interests of any special group,
but the economic welfare of the

f

in which domestic consumption is likely to be v
through restrictions on selling against deferred

to stimulate demand by

a
policy. I believe the welfare of
the. nation requires that Congress

*

,

First, let
eral

£

: means.

such'

us

k

£

are familiar to the American publics
(
in'Britain. The system of deferred payments had:
j,
its economic justification during the depression of the 'twenties^ >
and 'thirties, because, by
enabling people to spend their earnings- ;
in advance, it created additional
demand and employment. But j
during the prevailing state of over-full employment it is absurd ;

as

agency most

I

but are unknown

'

-

;

rate reduce, the system of producing standardized low-grade

payments.

changing

I think the Federal Reserve is

[

re-

j

Another way
will be

destroy their objectiv¬ and
objectively administered—one;
which will be

thus

manpower

It is expected that the government will bring to an
end, or at

curtailed

prosperous

and

The

1

firms will have to

ity goods.. The resulting decline of home consumption would go a
long way, however, towards safeguarding supplies for export trade/

policy, nor a
policy. The monetary
need is one which will

economy—flexible

their production.

many

whom could not afford to pay the high prices charged for nonutil- I

tight-money

sense

judicial offices.

result

quality of British
manufactures, and that this tends to handicap exports. Such a
change would be a severe blow to domestic consumers most of'

1950,

"hands off"

In order to remove considerations

which may

is

restrict

or

a

restriction, because their credit requirements will enjoy a priority,

easy-money policy nor a perpetu¬

The terms of

are

some

need

we

the

outside interests

or

down

As

"utility" goods. The argument for the termination of the system
is that it has resulted in a deterioration of the

Senate Document 129, the so-called
expiration of their terms of
Douglas Report.
office are so arranged as to mini¬
In closing, the monetary policy
mize the immediate
and
direct
pressure

The first step to that end will be further

f

any

Re¬

der of

tion

[.

leased will become available for rearmament and
exporting industries. These industries will be ihimune from the effects of credit

v

Joint

Economic

exportable.

are

general credit, restrictions.

Monetary Credit

Policies

Committee

port,

on

practical possibility.

'

:

essence

Although Subcommittee

j

serving export trade, and to prevent the consumption of goods

of

goal

groups in our economy. This is in
the recommendation of the

of

Branch

'

.

desired

prosperity and stability can
Board is intentionally so consti¬
of
tuted as to make it semi-indepen¬ truly serve the interests
the Federal Government.

f

!

monetary policy. As I have ex¬
plained,- such a statement shouldi
point out that only through both

con¬

'

where 50 million people
produce, there 50 million people should be
able to live. The problem is to divert
production into directions

defi¬

quent interruption.

the

of

further

a more

gress

to

of raising the standard of living.

;t

salvation.

the part of Con¬

indicate

political life is not subject to fre¬

as

ways

own

After all, production is in full swing, and

that there is need for
on

out her

Will Mr. Butler be able to work out Britain's salvation
without
American aid in 1952?
If the government is prepared to risk its
political existence the solution is certainly not beyond the realm

inde¬

the Federal Reserve
that

came to depend too much on dollar aid.
rejected the American loan of 1945 she would have had to

work

There can be little doubt that she
would have succeeded, even though it would have meant the
postponement of the adoption of various social services and other

'

They indicate

clearer

reassure

supplprt.

adapted ^to, .and much more likely
ity, their terms are Tor 14 years
to i devise
and
effectuate; that and
they may not be reappointed
monetary policy which, will tend
after having served a full 14-year
to produce both stable and con¬
term. I am not sure, however, that
tinuing prosperous economic con- this
last is a wise provision. r;
-ditions in the'United States. That,
I think, iis a most conservative
Despite all of these carefully
constituted provisions designed to
statement.- s" ; "
:

Reserve

determined effort to solve its difficulties without external aid.

ob¬

nite statement

in this

ment of Mr.

Butler's measures. It may create a "Dunkirk" atmos¬
phere in which the British public would realize that it has to make

an

country, and the long
point of view of an agency whose

mgiht be noted

a

a

departures from
view on the part

instead that if Congress wishes
objective monetary policy,

whole

It

entertained that the "gap" will be filled
by American aid. Th&
that Mr. Churchill has returned
empty-handed—apart from
raw material agreement
exchanging steel for aluminum and tin
—goes a long way towards preparing the ground for the announce¬
are

fact

making be¬

own

sible of attainment.

Federal

hap¬
that it is

to be in power so

pens

the

that

administration

whatever

like those of

undominated

an

Reserve

the

occasion, followed

on

semi-independence.

and the

sufficiently removed
the direct political pressure

Board

Reserve

To

gov¬

is

to bear upon

Advocates Undominated Federal

; {'

Third,

,

policy could be admin¬

ministered

has,

providing of easy funds for gov¬ jective
spending. What the result Federal

banks; and the Federal Reserve
through control of reserve re¬
estate

a

difficult, if not impossible, for the British Government to ensue*
the acceptance of these measures
by the country so long as hope»

it feared that the Executive

cause

perpetual

a

money

would be is obvious.

commercial

such

ernment would mean
bias

its

real

Board

might have sufficient control over
Congress to ask for an end to its

on

the

to

little -doubt that

seems

by the Treasury as a part of the

Each

ernment

in

the -Board

on

can

on

ing system—the Treasury through
deposits

pressure

change its monetary policies. And

ever

operations,

Each

money.

:

tendency to spend

policies not of its

of government securities

cise direct influence

this is the

zenry of the country. I submit that
administration of monetary policy

system.

engage in open market
thus influencing both

and authoritarian.

2»

securities

on

Main

business from

Street.

Officers

W. Moore,

offices
are

H.

business from offices at 1776 Six¬

ty-eighth

President; C. H. Moore,
Vice-President; and H. Shearer,

name

Qfir-vptorv-Trpaciirpr

Co.

Street,

of M.

formerly
and

under the firm

J. Ruter Co.

with

Graham,

I. J. Schenin

&

He

was

Ross
Co.

&

Chronicle

The Commercial and Financial

24

.

Thursday, January 31, 1952

.

.

(492)

Continued from

spiracies

first page

*

within

from

boring

of

have failed to secure more

than

a

.minor percentage of men's minds ,
in the western world. - Its left-/

Our Foreign and Military
Policies Are Unrealistic

activities

arm

raised

there

have

implacable walls to such ideologi¬
cal victories.

'

/

-

They said the opportuni- •

Sixth:

'

Erie Railroad

'

„

continues

mon

puzzle

to

two

past

$0./5

of

extras

years

segment of that part of the financommunity that follows railIt has been a dis-

Qn the whole Erie may be con-

cial

sidered

road securities.

than most of the other large East-

stable

more

a

operation for oyer a year. Up to
time, despite huge subsidies
and sacrifices by the American

property

But they
cured.

Pact had been .in

Atlantic

North

people, the

the American

dressed

large have been paid.

a

statesmen are the potent Socialist

on

a

with" Baltimore

nar

&

for the failure of Erie common to
attract

a

enthusiatstic

more

mar-

"T

—-»

i

*°

,.

.

a,

.

+1

nations are contributing less
than
the total military ex-

pean

6

Another
nPan

of Western Euro

Th .
That

is

its

ed the

is

in

public

fanned

nature

(purely financial) are readily corrected by
capital readjustments such as the
one

through

some

years ago.

the

basic

which
They

traffic

weaknesses

that

Erie went
not like

cruited.

companies. It is
strange, then, and obviously un->

that

history

past

Horning

feeling

the

toward

not for

such

what it

up

time the stock should

a

sonably

sell

in

much

alarm as has been
in the United States.

an

inquiry from

as

to why they

will

have

they

can

holders
to

find

what

return.

be

stockholders

in

the

matter

C

of

G.

Walker

&

of

r s

inasmuch

mon

outstanding represents

now

the

as

com-

the claims o£ old bondholders.

It; might

be

In

mentioned

tinnX 3 whprpXnnh nSL
not

hoon

takon

no<?t

new

aeements^
on

a

dend

hv

ri^

Erie

regular

basis.

maintained
tras

corinnfiv

reoreaniyntion

$1 00

This

annual

rate

divi

has

been

consistently, with

distributed

when

1948 and in

Ch

the

each

r m

S.

Bert H.

an,

Horning

Louis,

*

c

O

A

T

1

*

<&

V@lSv6

r

be

part

a

That they have not done

the

npnieri

Virlorv

United Nations.

so

■

1

n

v\

TY

rf

-

rt V. W-\

1

'-r■;.r

I

Art

4

A

rtAt TA

.

over.

it would

60-division
years

is two

army

away.

"A Calculated

This

they

United

cannot
States

inwith

P°ssk:)ly trouble us with bombs,
Therefore, they said the Russians
have n0 taste for a war where
tbey cannot effectively destroy
their enemy.-

be difficult

battle-worthy divisions
European army
And it would appear that

the

know

the

.

*

Yet in this negotiation we have

Dunquerque"

proposed 60-division

unity

and

original purindependence

for Korea to an appeasement idea
of a division of Korea about where

Third:
They ''stated that the
Kremlin realizes: that invasion of
Western
Europe
would
add
a

it was before. Finally, during
these negotiations the Chinese
have built up a great air force,
What the outcome may be, we do
n°t know. But I will presently
suggest some, lessons, we now

nationalities to the centrif-

ought to learn from this expen-

dozen

ugal forces ands?oppositions which

army

of

the

from

retreated

armies, however much they might pose

,

Western

three

have been wounded and nearly
5,000 have been killed since -the
negotiations began,

munists hesitate to stir up a war

vade

begun six
cease-fire. The

was
a

American v people welcomed its
promise to stop the loss of blood
and lives of their sons. But three
things have come of it. Far from
cease-fire, over 20,000 Americans

Second* Thev said that the Com-

,

negotiation

A

months ago for

seems

proof to these observers that the
Kremlin realizes several difficulties in making a Red world out of
the West.

of

10

...

.

were

tdfld

armies

Verace

New

York

1948

and

since

member

a

Stock
of

1939,

the

was

of

the

;-that

the

^comprised

Communist

300

ness

divisions,

v„.

ence-

Yugoslavia-

ready

X%TU

inflation and confiscatory taxes.

.

r

culated Dunquerque.

Exchange since

I may

American

a

member of the

jn

the

at

say

once

people

growth

from

of

blight

the

In a War Economy

Fourth:

.

We are actually in a war econ-

except for world-wide shootWe are diverting more and
more civilian production to war

omy

ing.

materials.

We

are

placing

a

blockaded by the Americans or greater portion of oummanpower
that all the British, and Russian transport into under arms. All this creates scarc.

interested

are

unity

of

suffer

What Can -Russia Gain?

20,000 planes and 30,000 tanks. No
one contended that 60 European

Curb, Exchange

in

conti-

Europe»were paralyzed by bomb- ity in civilian goods and increased
Jng'Eu^pe^wtmid be 30% short m spending power both of whic

Lne srowtn or unity ,m conti- fuel> 25% shorWin food and with- fan the flames of inflation.
of Lehmann & nental
Europe and their prepara- out
non-ferrqu&,: and hardening
We
are
constantly
told
that
Verace until last year when the tion of
adequate ground armies metals.
They ^stated that under measures are being taken by the
'
stment. firm
,

firm

•

.

was

dissolved

*

,

_

following Mr.

Mr
Mr.

Vpropn'o
Verace
s

.,

admission

to

the

Telephone BOwling Green 9-6400
Members Nafc'l Assn. Securities Dealers, Inc.




the

or

•

In John E. Miller Co.

0

New York 4, N. Y.

«

*

already troubtesfcfaem from the 30The oustanding phenomenon in
odd races theydtfominate.
They the United States is the dangerous
said the proof of- these oppositions overstraining of our economy by
was the fact tba^ the Communists our gigantic expenditures,
have sent 15^000,000 politically
The American people have ^ot
objectionable persons to slave yet felt the full impact'of the
camps. In add-on, nationalism is gigantic increase in, government
3lIli6r'-"In tha^ debate a year ago, we n°t dead in those nations, as wit- spending and taxes. Yet we al-

Lehmann's death.
25 Broad Street

not

.

sent

J*

A.

wlfeiOl

•

j

will

on

They- said the Kremlin
Street, New York City, members divisions, even if created, could knows that th^-Undustrial po'tenof the New York Stock Exchange, do more than temporarily halt an tial they
woul^secure by invadhave announced that Victor Ve- invasion. Our side in that debate ing Western Europe is mostly an
race has been admitted as a
gen- replied that this was not a calcu- illusion.
The Reason they gave is
eral partner.
lated risk but that it was a cal- that
if
Western
Europe
were

Selected Situations at all Times

Middle

the

and

Louis; Irwin R. Harris, Shreck, compares with over 200 equipped
Eichter Co., St. Louis; George A. divisions which these same WestNewton> G- H- Walker & Co., St. ern European nations placed in
Louis; and Paul B* J°nes' Paul B' the field within 60 days after the
Jones & Co-'Little Rock> Arkoutbreak of each World War. And
"
\
productlvlty
IISaIah Uahaa* DamiIm®ami
greater today.

Mr.

£.%mmm

have

today.

John E. Miller & Co., 25 Broad

SECURITIES

TJ

CK

Russians

even

St.

of the

RAILROAD

South Asia

In

East we are witnessing vast readjustments of political power.
Behind the slogan, "Asia for the
Asiatics," lie two centuries of the
white man s exploitation. These
forces have lighted a prairie fire
of revolution against the West,
They are removing, the "white
mans burden,

i

armies during the two years past
have been the American divisions

in

Mo.;
Christophel, Reinholdt
&
Gardner, St. Louis; Mel M.
Taylor, Semple, Jacobs & Co., St.
Arthur

was

Specialists in

alternatives,

do it during several years to come.

announced

divisions

friend, but would not marry
Europe. That is a form of in-

to find

Co.

♦

1

Aside from American and Brit-

Newhard,
&

be-

public

in the West because they can see
no final military victory. That the

we

Vice-i

a

Cook

warranted

by earnings.,' The first extra
$0,50. in

ex¬

have

four

ish divisions

Mills,

was^little

there

In sum, the only substantial addition to Western European ground

ittee

o m m

that

'

_

dependence.

mem-

.■■.'Andrew

of

dividends

ill

British

their

a

Mr.

;;,

that it owed special consideration

—

be

are:

to

own

West-

ation of Secu¬

Other

Ever since Erie was reorganized
the management, has recognized

'

»

rities

Co., St. Louis.

in their greater income

*

the European army, but that they
"will cooperate." Britannia would

H.

comfort

1-

_

continent

Na¬

Associ¬

Newton

presumably

TVT

The

that

7

Dealers,
Inc., succeed¬
ing George A.

re¬

lationship to the stocks of com¬
peting carriers that have been far
more
adversely affected by the
rising costs of the- postwar years.

Meanwhile,

our

risks and reconsider the possible J

—-

for

the

of

&

moe

rea¬

better

United States recalculate
no

contribute

to

no^
sla§e*

thT'DiSt^Com-

of

e e

tional

At

was.

event, this whole Eurosituation requires that the.

any

12' divisions has
First:
They said that the Rus- mg the Chinese air sanctuary in
beyond the paper sian ground aihmies could have Manchuria and the employment of
No battle-worthy German overrun WesterfFEurope in a two- Chiang Kai-shek's armies to save
divisions are in sight
certainly months'campaign any time in the American lives. Accordingly, we
not before 1953Past five years "and can no doubt denied ourselves victory.

is

H

Nicolaus

-

Tr»i,ic

District No.

is,

now

once

i 11

m

new,
reorganized,
Presumably Erie eventually

will be taken for what it

St'ifel

of

pnrnriQn^

the

of

Erie.

and

Bert

Chairman

speculative
stock

NASD District No. 7

new

reasonable,

In

lief that there vfas risk of a RusDuring the past year in Korea,,
ern Germany is to be given a cersian invasion irir the near future, the Government vetoed General
tain degree of .independence and Their reasons fdf- this belief were*.' MacArthur's policies of destroy-'

Horning Chairman of

of the other railroad reor¬
ganizations I and
remained
to

4

The settlement by which

or

many

plague the

to

erally fel1
as a result of the they contemplated only 10 divi- calculate this risk of invasion as
America had no part in the excontinued rise in costs. Share si0ns for the European army, of so much less than does Wash- ploitation. Yet too often we find
earnin2s of $4-68 matched the which none was complete and ington.
">
.
>
that many of these nations vote
fyglf of them were only 50% reThe
sum
of this inquiry was against the United States in the
year-earlier performance,

are

operating
brought on so

as

invasion

today

Europe

.

this

attitude

do not propagandize war fears or
war psychosis such as we get out
of Washington. Not one European
country conducts .such* exercises
in protection from bombs as we
have had in New; York,
r

in urging that we send our
divisions, General Eisenhower
ag0,

payment of dividends even

of

assumptions are correct or not.
But they do contribute to Western

The rearming of Western Europe None of those nations has dejs mainiy dependent upon the clared emergencies or taken measFrench and the Germans. A year ures comparable- with ours.
They

in the lush days of

Ills

0,70n

Europe Not Alarmed

There

prevent-

excesses

'
,,

Eigntn^; rinaiiy, tney sa a tne
Lommunists know that, it in y,
invade Western Europe, their o n
)var potential wil be d s
y
anul ,ml,? ^ar
:a blockado from the s ,
^
succeed on laid.
.
I cannot say whether these eight

pean

bound for all three, with Erie's stated to the Congress that the
pre-fund net at $4.67 a share. French promised 15 battle-worthy
the middle and What
has proven particularly divisions by the end of 1952 and
late 1920s and were directly re- gratifying in the Erie picture is presumably more by the end of
sponsible for the road's eventual that it was able to hold its own 1953
A few days ago, the French
' I recently made
bankruptcy.
- last year when rail earnings genDefense
Minister indicated that European sources
These financial

Eurone

Eu™Pe's lack of hysterics and
their calculation of low risk and
attitude is
nrofoundlv
dif- therefore, their lack of hurry to
attitude
is profoundly
dif-

Wrtia

<

such

in

and

states

.,

fer!nt from the attitude °£ Wash"

we already had theie.
What has happened?

following is that it is still la- on the common amounted to only
boring under the cloud of the $1.60 a share, before sinking and
reputation of the predecessor com- other reserve funds. In that year
pany.
The early days of the old Pennsylvania reported less than
Erie were marked by some of the $1-00 a share and the New York
most flagrant financial
excesses Central about $1.50.
The followto be found in railroad history, mg year witnessed a sharp
re-

pause

Commu^st

Erie was naturally quite hard
We were told four more Amerihit in 1949 by the coal and steel can divisions were to be shipped
strikes and in that year earnings to Europe in addition to the two

ket

North Atlantic

penditures of the
pact nations.

*

a

"
P
llblttohandl°e.
mf** '
y

urging arfc for the purpose of

using Europe for American cann0n fodder. Yet the Western Euro-

with

confu-•

economic

of

TTnitPri

tup

;n

wpstern

parties also have widely spread
the belief that our subsidies and
0ur

progress

_:on

These

parties.

Communist

an(j

th

ha„ ;

otalin

Thpv

.

bbfStS

Among forces which obstruct
progressive
Western
European

that

.

Ohifcommo^on which no divS
^^he^^o^t^log^l^ explanation

not yet

obviously

are

ties for the Kremlin are in Asia
and that its face is turned east.
>

,

appointing market performer vir- ern carriers. By its very nature people, the nations of Europe, extually since the reorganization ^ is, of course, quite sensitive cept Britain, had done little in
was
consummated and the new
level of plant activity in mutual defense.
And in this adstock was first issued.
From the the
highly industrialized territory dress, unless otherwise stated, I
point of view of efficiency it has iying between New York and Chi- do not include Britain in the term
fared considerably
better in the cag0
As an added factor it is in "Western Europe."
postwar era than have most of the a p0sjtion to offer high speed
other
large
Eastern
roads.
Its freight service from the Western
Promise and Performance
earnings
record has
been more gateWay to the Eastern seaboard.
During the course of the debate
favorable. It pays better dividends Thus it
gets a substantial volume a year ago we were told that a
than either New York Central or 0f
through agricultural and ani- European defense army; of upPennsylvania yet it sells in the mal pr0ducts tonnage.
This not ward of 40 ground divisions would
same
general price range
and only injects a certain element of be created under General Eisengenerally slightly lower. It sells stability in traffic but, also, being hower by the end of 1952, with
nhmit

.

,

,

discords and dissensions.

A year ago, when I ad- age-old

world.

*

The market action of Erie com-

rm

the

was

previously

"Chronicle"

of

reported

Jan.

17.

in

m

for

their

defense

We

earnestly

suck a bloc^ad#. Western Euro- government to

hope that General Eisenhower will
.

succeed

There

during

.

.

in

.

x

,

his difficult task.

has

been

the past

some

year

in

progress

allaying

diminisn
fail.

Fifth:

rapidly and
-

They

*1,

said

ultimately

tion'
we
ary

.

the

"prevent"

Thisthign°r^, thef
are in the middle of

infla-

inflation-

operations at this very minute.

Kremlin Ever since the end of the Second

had at last learned that its

con-

World War the purchasing power

Number 5086

Volume 175

The Commercial and Financial Chronicle

.

.

of our money, measured in whole¬
sale prices, has decreased 40%;-

Controls

imposed

the

of

type

not in the

long

have

we

and prices can¬

on wages

prevent infla¬
of six great

run

The experience

tion.

commercial

nations

two

in

has proved that they

retarding device.

a

Under the demands of

Washing¬
prob¬
able Federal deficit of $30 billion
ton we are conf ronted with a

to

immediate re¬
armament. We already have gov¬
ernment obligations and currency
of $280 billion. And private credit
is dangerously over-expanded. In
billion

$40

brief

the
it

The

bonds

will

notes,

or

be

must

is

and

the war,
billion.

by $130

need to
part of its deficit by selling

which
That

since

period

government

cover

its

for

swelled

has

direct

inflation

results in"

in

currency

the

to

banks.

credit

of

addition

an

the

the

to

of

form

of

part

some

sold

In

view

believe

I

menace

and

the

at

pressures

Last

expanding credit, or paper
the irresistible forces
of inflation. They are already be¬
ing expressed in gray markets and
a
sporadic spiral of high wages
and then higher prices.,.,
Our standard of living will be
in

reduced
Life-time

from

millions

savings

millions

Rising prices
the

vading

be

other

taken

families.

coming through

while

taxes

homes

our

families.

will

of

are

kitchen

of

in¬

are

through

the

;

As

als

point of diminishing return. That
indicated by the fact that the

which

of

supported

That

income

allowance

expense

States Senator

of

United

a

confiscated, it

were

That

Second:

Europe

avoid
real

which

we

nothing,

which they

is

the

the

pays

family

taxes

of

hidden.

corporation
the

or

who
in¬

both

them

Among

These

taxes.

ultimately passed
tomers

will not do.

average

bulk

and

come
are

tax¬

would continue to work for

payers

It

these

their

on to

are

to

extend

navies up to

The

Communists

striking

a

their

military

started

$900

per

The

year.

of inflation and

by

the

$3,000

annual

net

must

ago

years

income

And
not

a

ten

earn

now

$6,000 to maintain the
ard of living.
•

with

family

a

same

over

stand¬

military

great

our

forces

assembled, they must continue

are

to be

paid for. Due to constant

inventions

in

and

new

the

weapons,

new

well

as

Western

as

original

decisions

to

armies may

rience

A man may

pounds
will

the.

across

break

load of 300

carry a

his

but

room,

back

if he

he

carries

it around the block.
Communism is

evil

thing. It
is contrary to the spiritual, moral
and

material

an

aspirations of

man.

These

very reasons give rise to
conviction that it will decay

my
and

die

of

that

may

and,

in

its

There

these

cialize
That
if

it

are

is

these

the

the

If

long journey.
who

welcome

tax

pressures

and

drive

forces

income

of

our

inevitable
not

were

pose.

a

men

inflation

because

But

be many years away
the meantime, we must

be prepared for
*

poisons.

own

this

the

to

end,

avowed

form

of

so¬

people.
even

pur¬

creeping

We

sion,
most

tive

our

the

income.

erosion

capital

and

of

the

Along this
produc¬

our

destruction




bases outside

our

essential

air

of

European NATO

ground

has

upon

have

avoided
of

20,000

boys and the

postponement

or

could apply real brakes

drift

to

the

inflation;

is

war"

"cold

initiative

the

hold

can

not

a

but

in

scatter

to

concentrate

to

this
our

all around
the
Communist bor¬

ground
armies
25,000 miles of
ders

we

way

such

on

highly mobile striking force by
and

air

sea.

plunge

It

has

might stop
socialism,
we

we

into

been

But

said

that

can

these

in

be preserved

is

That

strength.

re¬

of strength of the free world
in the North American con¬

serve

lies

tinent.

Nothing must be permit¬
weaken

to

this

recalculate

bastion.

We

risks.

our

of

one

meyer,

and

sea

a

munitions

such

we

should furnish

as

we

who

nations

other

will

termined

show

defend

to

de¬

a

them¬

third

a

World

neither necessary nor

And

in

this

position and
used

is

War

inevitable.

of our
prospects I have

summary

our

only facts and the terms of

sober

But because I have

reason.

eco¬

the
United
States and to prevent its social¬
ization does not permit our build¬

nomic

ing

strength

great

up

of

armies

ground

in

air and
of muni¬

addition to overwhelming

and' supply

forces

sea

not

If

our econ¬

should collapse, Stalin's vic¬

We can¬

Sixth: That true friendship with
Western

nations

European

re¬

quires they be Told certain things
in no uncertain terms. They should
realize the limitsof our economic
this

is

air

deterrent

and munitions.
tected by this shield,
them

on

formance
now

the

in

with
us,

armies

we

the

aid

Europe's
should

per¬

and

wars,

munitions

of

realize

sea

pro¬

expect

their

of

previous

to

are

iWe

lem.

basis

and

That,

power

from

this

that
own

ground
prob¬

that

state

we

them to provide ground
protection for our airfields within
expect

their boundaries.
that not only

I

in

will

will

we

rapidly

their

they
delays

extent

of

my

the
the

future
world.

of

my

But

on

Day that anxiety

have

confidence

my

that

I

and

am

They

challenge

over

tional life.

us

should
leave

be

told

our

250,000

before

attitude

salesman's

right. The opening "point
interest"
must
be
something

discard

and

those

which

If

are

out in advance of the

will

be

call, results
I do not

disappointing.

believe

should

salesman

good

a

waste his time

running down pos¬
prospects. His firm should

sible

that

do

him.

for

The

profit

op¬

portunities in spending money in¬
telligently upon a sound mail cam¬

paign that develops leads for sales¬
men, are much greater than using
a

salesman's valuable time to

down

customers

in

hit

a

run

miss

or

Some salesmen have the

my

prospecting.

of

menacing

have met every
170 years of na¬

And God bless you all.

With Lehman Brothers

5%

respect—not

of the

Townsend, former

and

of

Trust

the

Company,

York,

New

associated

become

Guarantee

Title

with Leh¬

New
York City,
o

f

Ex¬

change. He
will

in

be

charge of the

is

rela¬

The

and

door

par¬

Barnard Townsend

se¬

v

institutions.

Before his

sociation with Title Guarantee,

is

man

in

Troy,

list is the

as¬

he

an

using

a

you

Some

best

react favor¬

will

ably to a,man who is sincere and
who knows his business. Building
a

foundation first, and

sound

ac¬

the customer's in¬
ahead of your own desire

tually placing
terest

to make

sale, will convert many

a

prospects into clients.

new

*

*

*

Clever Advertising Idea

Eisle

&

King, Libaire, Stout &

Co., whose main office is at 50
Broadway, New York 4, N. Y.,
have issued a folder showing a
series of correct methods of play¬

ing

winning golf.

illustrates the

with

seven

method

Byron Nelson

attractive brochure

pictures of the correct

playing

of

particular

a

A list of stocks in which the

Thomas S. Pierce With

good

a

hit¬

are

of

source

mailing

Do this

piece

by

that pro¬
listings.

an

appoint¬

Thomas S.

Pierce

Thomas

S. Pierce has become as¬

stock in which the prospect is

sociated

with the Florida

in¬

Ohio

joined

the

—

should

the past

try to inform and be liked.
build confidence.
His

should

'possible he should offer other

along he should procure a list of
the prospect's holdings.
This list
he can put in his own files for the

providing

of

purpose

information

to

additional

the prospect

as

it

along.
Attitude of

A good

fident of

Salesman

Bank

fundamentals of in¬
should go into his

He

staff

of

Gunn, Carey and Company, Union

Building,
Stock

members of
Exchange.

basis

same

with

a

lenger.

He

as a

it

must

be

he conducted his own
Florida.

in¬

National Analysts to
Convene
SAN

his

Annual

Fifth

on

Coast

Calif.—The
Convention of the

FRANCISCO,

National

Federation of

Financial

Analysts Societies will be held in
San Francisco and Los Angeles

The
San

group

will convene in San
May 4-8, at the
and in Los An¬

Francisco,

Fairmont

Hotel

geles, May 9-10 at the

Ambassador

Hotel.

champion prize

but willing, chal¬
should feel out his

find

all security

of the munic¬

vestment business in

E. E. Morgan

young,

and

manager

ipal department for the St. Peters¬
burg office of Goodbody & Co. In

May 4th through 10th.

-

salesman should be con¬
his knowledge of securi¬
the

and

Securi¬

Company,

to leave his prospect

good feeling toward him.

a

ties

—

Florida National
Building. Mr. Pierce was

formerly

he

fighter enters the opening rounds

Cabe

PETERSBURG, Fla.

ST.

is going to obtain
many interviews. He should never
go in to see a prospect with the
purpose of coming out of the first
interview with an order.
He

man

Midwest

china egg.

by telephone, and dignifies
his call by insisting that he has
valuableinformation
about
the

the

to The Financial Chronicle)

CLEVELAND,

the

a

people

Florida Securities

first interview with a prospect, on

Commerce

on

Most

securities if you give

opportunity.

vestment.

Joins Gunn, Carey

has

time

people will an¬

salesman makes

a

ties
of the State of New York.

Sanders

is

vides space for additional

Committee

Savings Banks Association

(Special

This

any

them

Chair¬

and

N Y.,

of the Investment

of the

salesmen.

a

free—some

President of the Troy Savings

Bank

foolish

of inves¬
been caused by

offer of information that
are sincerely inter¬
ested in keeping posted on their
holdings — others will
tell you
swer

comes
was

tors than has ever

where

and

the part

on

unscrupulous

services, and if he gets far enough

the
underwriting
of

stubborn

to

procedures

vital spot. A good stock¬

a

holder's

If

ticularly

curities

is that

opener,

ting at

with

compa¬

such

due

ure

to

prove

that offerings of in¬

reason

banks

capital

even¬

be disastrous to
them in the long run. There has
probably been more financial fail¬
tually

club.

formation to stockholders is

first step is

of

continue

that will

Interest Your Prospect

.

He

nies, and

course

a

much less costly me¬

a

tionships with
trust

door-bell

can

security buyers. Mail campaigns
and advertising in trade and other
papers,

terested,

the New York

Stock

will

people

Many

ap¬

and rea¬

and glory in
firm
is
specializing is also in¬
the
business, the
cluded.
For those interested
in
canvassing business, or practically
anything else that people use over golf, it is an attractive mailing
a large section of the country.
But piece that no doubt will be read
carefully from cover to cover.
you must smoke out your possible

If

Street,

members

sense

and

ment

William

1

You

way to fame
life insurance

your

Brothers,

man

peculiar
is a

everyone

people in this country

securities.

own

about other

Barnard
President

However,

the securities business is
in this

resist all

make the decision not to waste his

the foregoing steps
planned, and carried

any of
not well

are

son.

common

welfare.

obstinate

will

cases

to

own

most

good salesman will either
find a way to lead and persuade
such a prospect into the proper
not channels of investment, or he will

promising.

firm
belief

Barnard Townsend Is

of

that

established

The

prospects.

send no more

relieve

well

be

call.

must be

informed American people

an

and will solve their

can

stubborn

dium than using shoe leather.

one year ago.

despair;

no

is

We should state

tries.

And

the

greater than

even

ground troops, but that we expect
they

for
and

Sabbath

firm's

take that risk.

aid

convey

country

has

selves.

the

security buyer. In fact, only about

afford

can

must

belief

striking force of

power.

That

proper

knack

that

the

of

to follow

get there, in most in¬
glad to see you. The
pre-approach preparation

you

stances he is

that we shall have peace
and preservation of our American
way of life.
I hold firmly to the

our

upon

Fourth:

to

greatest mili¬

our

stated we should
ground armies
the world and should put our

dissipate

over

air

General Wede-

In

their

protect

Some

when

^manner.

.

I pray

problems.

Three weeks ago

believe it to be.

men

to

peals

upon'this

could avoid increase in taxes.

anxiety

That, the only

trying task

fact, if you have something of
special interest to tell the prospect

of

a

sands of young men to their shops,
their farms, and their colleges. We

not

devastating.

and

of

injury of
avoided words appropriate to
a
80,000 others.
The long-run in¬
deep emotion, this statement may
jury to the South Koreans would
less

is

prospects

new

difficult

reduc¬
that will appeal to the prospect.
30% in
our
Federal
civil
expenditures, From there on, it is up to the
to
we
could
assure
our
economic salesman
qualify the likely
strength. We could return thou¬ prospects for future cultivation

tion

ted

year

sacrifice

the

of

our

countries, together with

punish that aggres¬

could

American

and

protect

to

necessary

But the center and final

continues, we may be that burden except to protect our
permitted to hold the paper title airfields outside the NATO coun¬
to
property,
while
bureaucracy
road

force

true.

socialism

spends

stricting our ground armies and
ultimately reducing them to the

it could

that we
air and

relied

to

greatly
By re¬

would

through

demonstrated

have

lines

economic risks.

our

only

our expe¬

forces

policies

our

they

have been,
during the past

certainly

of

the

upon

that some

if

use

tory would be complete.

lions.

these

reduce

should

omy

bil¬

more

along

however correct the

Korea,

not

U. S. Risks

evil times peace

Europe.

the old.

cost

Calling

destroy

countries

non-Communist

tions to other nations.

.

re¬

The Approach to New Accounts

domestic

our

laws.

that such

could

devices must continuously replace

That will

our

Fifth: That to maintain the

this spending and taxes is
quickie program soon over.

When

deterrent

know

invasion

an

other

taxes is indicated

that

fact

double effect

War.

punish any such aggression. And
this applies to aggression against

emphasis

of over

is

World

potential

in

average

to

By JOHN DUTTON

courts

already made decisions that

above all, we could better halt the
strong air
spread of Communist imperialism.
striking force.

a

force

not

an

Our

government.

our

already

our

and

tary strategists,

taxes

way

within

can,

; Families with incomes of from
$3,000 to $4,000 a year will pay
total

only

destruction

effective

quickly go bankrupt.
,

the

contribute to that end is
cooperation with the British

in

cus¬

corporation would

Western

sources,

Third:

that

the

Third

and

have been

assumes

is

from

the

annually tc the Federal Treasury,
that

national

first

Hemisphere.

would bring only about $2 billion
and

the

freedom—that

of

can

remaining untaxed

many

authori¬

the defense of this final Gibraltar

taxes

all

re¬

ago

of this republic must be

purpose

various
If

by

economic

and

First:

incomes

above that level of the salary and

of

homeland

sea

top bracket
possibly exceed 100%.

may

year

ties:

should

the

sovereignty

Reduce

a

Securities Salesman's Corner

It must not be allowed to

Proposals

test, I

made

us

were

military

is

on

run

lessen

the

to

dominate the internal

have

25

ex¬

Recalculation of Policies Would

Year's

basis for

a

some

In

straining our economy. Moreover,
they have probably reached the

to

relations

the charter overrides

long

peat the essentials of the propos¬

front door.

These huge" taxes are also over¬

the

time

Our

Recalculation

and

money—are

Seventh:

most

a

United Nations charter should be

again revised.

methods

are

in

same

Reiterates

to

scarcities

—

pres¬

domestic dangers.

our

The

[The 'two

rising

there

munist

European garrison in
posed position.

past year's ex¬

these

effective to check the Com¬

more

save

Inflationary Elements

the

of

and

prog¬

-i-

,

sures, the Congress should
re-examine our situation.

bank

check money.

economic

to

inevitable.

are

perience,

wars

at best,

are,

incentives

of

ress

(493)

interests.

Not

buyers, unfortunately

admitted,

are

minded and well-enough

open-

informed

Opens

(Special to The Financial

Ohio

Morgan is
ties

Chronicle)

Edwin E.
engaging in the securi¬
business from offices at 23

OXFORD,

West High

Street.

—

26

The Commercial and Financial Chronicle

(494)

Continued from page

affairs

of

3

right

what

and

Administration

of public power.
If we
could eliminate future tax exemp¬

fallacy

The Outlook For Electric

tion

Utilities in 1952

if we are
to eliminate future tax

going

much

very

but if we
it is close to 2,000 per year for
joined together and presented a
residential customers, and stead¬ united front we could do a great
ily rising.
Likewise, commercial deal to slow down the further
users—stores, offices, office build¬ expansion of public power.
One
exemption right away,

used Up

in higher wages and taxes
and most companies were not able
to do as well in 1951 as they did
in

1949

1950.

or

that on

a

I

not

am

sure

share basis we are

per

going to get back to the 1949-1950
level right away, but I am con¬
vinced that the
electric utility

ings and so forth, and small fac¬
tories—have
found
many
new
have

Their rates

electricity.

for

uses

sharply

down just as

gone

much.

real

is for

it can be slowed down
investors to fight Congres¬

sional

power

way

appropriations for
expansion of any agency

of the
and particularly the Interior
Department.

industry is going to be much bet¬
ter oi'f than it was in the year

and their use up just as

1951.

The investor should take heed
practically no electricity 20 years
ago, today is
a very large user of this expansion of public power
of electricity.
He uses at least which is going on day and night
three
times
what
the
average relentlessly, never stopping, never

At

present,

have the highest

we

level of employment in this coun¬

try in its history.
Coupled with
that, we have a crop of youngsters
under ten years

ten

than

of age, 40% larger
That is not

ago.

years

That means

generally understood.

appliances are going to be
a great deal and to the extent

that
used

who

farmer

The

to

used

U. S.,

use

and those com¬

householder uses,

ceasing.
If one objective seems
panies with a large farm load are difficult they just shift around to
very well situated as to demand. another one, but they go right on.
Twenty-five years ago only 4% And they don't have the same
or 5%
of the nation's farms had problem of getting money as the
electricity, whereas today about business managed, investor-owned
90% have electric power.
companies do. They don't have to
Another reason why the utili¬ go out and sell common stocks in
ties may do well this year mar- a competitive market, on earnings
ketwise is that this is an election cut down by a 52% Federal in¬

can
get appliances
going to buy a 1 great
many
more
of
them, such as
clothes dryers, washing machines,
and all sorts of appliances to help year, and if by chance a Repub¬
run the
household, because it is lican were elected we could have
getting harder and harder to get quite a market boom in utility
I am not sure that such
domestic help, and this help is stocks.
getting more and more expensive. a market boom would follow, but

that

people

they

are

So

most housewives are insisting

on

having

help, electrically

more

Since

in

increase

the

the

use

the
development of. new appliances
are
the secret of the growth of
the electric industry, one
must
keep in mind that there are on
existing

appliances

horizon

the

and

appliances

numerous

to

seems

would

it

me

the

at

factor

interpret

the

news.

fa¬

the spread of Federal and

vored

public power of one type or an¬

utilities

electric

Well,

one

this

year.

important factor

very

is money rates.

Money rates can
important influence on

an

increase in

12 months in the cost

of money.

the

How much lower will

yields

utility

on

common

other, much of it competing with stocks go? How much lower will
private utilities.
This spread of they go if preferred stocks are
brought to public attention. I call public power has seemed to me going to yield 4V2% to 5% and
to
be
a
growing
cancer
in the high-grade bonds 31/2% to 4%?
your attention, for example, to the
heat pump which has been talked electric utility industry.
It has Thus far the utility market would
about for several years, but thus been eating and eating its way. seem to have ignored this rise in
far, not developed to the point Twenty-five, years ago probably yields
and
the
rising
cost
of
that

have

and

been

never

exploited,

not even have been

some may

where it is

ready for wide general
price, even though
the price has been brought down
at

use

low

a

not

than

more

5%

of the power

because the yields on the

money

of

stock

common

ally or locally controlled.

utilities continue to decline while

it is

Today
or

yields

on

bonds

operated by municipalities, REA's

stocks

of

electric

beyond

or

doubt.

a

A great deal of

has been done and General

work

Electric

unit

offers

now

of

heat

a

packaged

a

which

pump

can

be installed in your home to cool
it in the

use

and heat it in the

summer

winter with
an

furnace.

no

of

average

It would

2,500 to

3,500

kilowatt-hours per year (depend¬

ing

locality) which is well in

on

dential
or

the U. S. average

of

excess

today

use

about

of

So that the heat

2,000.

alone in universal

load.
it

to

couple
cient

of

in

extent

more

but

years,

the

next

suffi¬

once

excess

generating capacity
many electric compa¬

is available
nies may

it"as

push

a

load builder.

The heat pump is a good example
of the possibilities of expansion in
this

industry and

we

have only
surface in

barely scratched the
possible uses for electricity
labor

saver

and

greater

wellbeing
standard of living.
Another

1952

will

electric
creases

to

due

the

reason

be

and

utilities

that

is

better

part of many

companies.

The

are

tory.
are

the

of

in¬

electric utilities

1937—only 14

years

their his¬

electric

below what

they

Today

cents

ago!

the

kilowatt

high
generating system and
of them a competing

a

out

use

That

investors.

of

sort

private

of

thing

is

going

per

Back in

nati

fense expansion.

you

for

de¬

Some part of it

the extent to which it is

realized

going
To
one

needs

have been slowed down, but
would be surprised if you

in

on

some areas.

mind, public
type or another is

real

my

threat

the

power

of

the

pays

Growth

can

what

that

means.

Every

utility company in the country is
growing, more or less, but when
you run up
of tax-free

against the stone wall

competition, where a
particular
group
of supposedly
public-spirited people can form
an

REA

or

other

some

similar

utilities

than

expect the private company to be
as

successful

as

that

tax

-

free

supply

years

by side and

power

toward

ential

just

as

cheaply side

a

the

U.

5%

basis yet, but we

of that

as

well, it is

go

an

much

however,

inflation

more

likely

seems

in

increases
in

set

was

never

as

industry

when you

and

year,

conditions

have

whole

the

for

one

any

have

we

had

them, with taxes and costs rising
the

they have,

way

in

large

a

the companies, all

percentage of
at

have the

we

need for rate increases

once.

The

now.

only way the utilities can

that

large-scale -equity financing will
be necessary this year.
On the
average the electric utility indus¬

commissions,
many
with their
staffs handicapped by not having
had the money to spend for more

adverse

to

twice

it

as

much

as

averaged
The

the

pro¬

almost

help,

years

of

average

month for

per

$18

against

as

million

per

and

-

the

had

having

not

present huge demand for rate in¬
creases in past years, haven't built

the staffs they would need to¬

up

day, and
You

great handicap.

a

isn't

regulation

see,

going

doing the best they

are

with

can

financing which could

three

next

an

in the

require

to

per

years

construction

$35 million

average

stock

month

per

is going

gram

continuous

selling

three

next

five.

last

is

of

common

the

for

month

problem

be

may

utilities

some

the

faces

try

that

factor

,

to handle rate

up

get rate increases is to go to their
commission and ask for them. The

third

The

just,

and saying, "Joe, I
rate increase," and Joe

down

want

a

"Let's

says,

statement,"'

your

see

ending and takes a look and says, "I guess;
with October 1951.
That is just you need it;
we
will issue an»
about a doubling of the amount order." That would be fine. That
of common stock.
might possibly happen if a com¬
month

the

in

Ordinarily

five

years

might

you

that

say

the industry never can do all this

had built

pany

up

commission

the

record with,

a

the

over

last

15

probable current earning; hasn't been before its commission
and probable dividends of in a formal rate case in years. Ins
lot of industrials and railroads many
cases
what
regulating,
the

at

power
a

and have

isn't

quite

begun to think utilities

look

pretty good defensively and
they have been buying them. I
think they are going to buy a lot
utilities

when

year-end

of investment

on

are

a

other

partial

has

been

but

it

done

been

basis

informal

temporary

or

an

on

has

been

make¬

or

shift in character.
■

of

reports

itless

prosperity, with Uncle Sam uniform practice among the elec¬
first, for his lion's share of tric companies to cut rates.
In
earnings. So quite a few in¬ fact, that practice didn't stop until
vestors in industrial stocks may 1946.
It
continued through
the
there
the

not feel

too

divi¬

about full

sure

dend

maintenance.

won't

get

they

Maybe

quite as good a yield
in electric utility stocks, but it
is a lot better to get a 5V2 to 6%
and

figure you are pretty
getting it than to have a

of

sure

stock

that

to $3

because when that happens

is

paying

$5 drop

you

the market will also go down pro¬

portionately.
a

lower

a

You

only have

not

income, but

you may

That

war.
are

how

And

still

and

is

they be that low
earnings for

can

have

any

common?

the

electric rates

why

low.

so

Well,

as

matter

a

of

fact, gross revenues doubled in
the 15-year period 1935 to 195Q>
and yet the balance for gross in¬
little change—gross

showed

come

income

being

after

balance

the

operating expenses, taxes and de¬

have

preciation—the balance availablewhy utili¬ for fixed charges. It was the great
are
going increase in the efficiency through,
continue in demand; and addi¬
the
use
of
new
machines that

loss

ties
to

well.

as

tionally,

I mentioned, the pen¬
is increasing

as

fund

sion

the

all

That is

in demand and

are

demand

time.

It

is

the

greatest

to
the
utility market
is, and I think it is going to
continue to grow and I think utili¬

made

the

possible

ira

reduction

rates, but the public got that ben¬
efit and not the stockholder.

bulwark

Now, after all those periods of

there

ties will

be

the No.

favorite

of

the

funds in

1952!

I

happen

work
funds.

to

,

have

done

number

a

And

some

these

of

they

phi¬

I have expressed

as

they

you,

factor

pension

think I know their

I

cause

investment

1

growing

to

with

losophy.

comparative yields

has

Remember that in the thirties;
they see the
electric
various in¬ the
industry
started
dustrial - companies and railroads making rate cuts and it got to b&
because I am afraid these reports a practice, so that if you didn't
are going to look rather poor.
do it somebody on the commission
A good many companies in the
said, "Well, how much are youi
industrial field are going to have going to cut this year?
Isn't it
a year of great activity and lower
about time?"
And for a period
profits in 1952—a relatively prof¬ of 10 or 12 years it was an almost

more

it

like

utilities

stability

want

be¬

of

in¬

rate

the

cuts,

finds

industry suddenly
help from the-

for

need

a

commissions, and the commissions,
are so crowded and hard pressed
that it is a slow process.
Here¬

mer

of

pointed
cision

will

you

article last

an

sum¬

and

utilities

York

New

on

some

of

York—some

New

in

recall I wrote

you

may

have seen it.

out

that

the July 9

I
de¬

in

the

the

of

commission

It is true that

they are not Rochester
Gas
case
marked
a
going to fill their whole portfolio
with
the great institutional de¬
turning point in commission phi¬
up with utilities. They realize that
mand
for
losophy toward a much more co¬
utility securities the
from the inflation angle the utili¬
operative and favorable atmos¬
problem of yield becomes para¬

that

must1, be

mount,
stocks

yielding

going
or

I

break

think
and

to

7%

six

a

are

basis

that

all

going

to

basis.

As

these

stocks

the

may

yield
begin
other

investments having a
on

price claim
earnings—preferred stocks, for

example.

utility
very

While

common

low

yields

on

stocks

because

cline

on

their

the yield

poorly protected and

very

were

to keep

another ten years as it has gone
for the last ten, your dollar may
be

down

to

20

cents

of $10 would

dend

and

a

divi¬

be worth just

much less in

purchasing power.
dividend of $2 won't buy
nearly as much as a
dividend
of
$2 would buy ten

so

Today

a

anywhere
years

ago.

That is

try,

will de¬

stocks.

of

of the fundamental

regulated indus¬

a

particularly

nal cost concept

with

the

limiting the

origi¬
earn¬

ing power.
The
very

is

phere

adverse

regulation.

to

which

some

may

be

companies

Our regulatory ma¬

Sincein

companies

New

York State have obtained rate in¬

Others, I think, will, and

creases.

I

sure

am

the

you

will all agree that
the
New York

of

attitude

Commission is much

more

ative and liberal than
eral

years

That

same

it

is

happening
obviously

sev¬

same

in

other

at the
two states;

not

speed because no

have the

cooper¬

was

ago.

but

regulatory philoso¬

phy. Therefore, one of the most
important
things
you
have
t©
•watch

next factor

regulation.

in

several

then

states,
one

weaknesses

influence the

common

are

that if this inflation

go

unusual

growth prospects, those companies
with only average growth pros¬
pects may find the yields on their
may

ties

some

may

of

come.

on

are

not

into competition from

run

those

sure

five

a

because

stocks

am

utility

I

6V2

down

to go

less,

good

watched

while

and

a

unfair state

S.,

type.

long way preferred stocks
absorbing the tax differ¬ extent to which
even

recently

$2,

pays

Cleveland Electric

creases, such as Texas Utilities,"
Houston Lighting & Power, and

declines

taxation

already

relatively low yield, not to speak
that are selling high
because of possible dividend in¬

to

less

We

utility stocks
5%.
Cincin¬

of that group

and

with

and higher

be serious unless

a

and

operate

is.
of

know

quite a number of electric
utility - stocks that are returning

acquire

property

don't

have

and

electric

I

than

E.

in

to

agency and then can go out
sell tax-free revenue bonds
an

less
&.

in¬

will

$2.60, sells at about 52. Con
of Baltimore, one of the best

only
industry stocks

electric

tax-free

aver¬

Today

point

number

G.

an

investor

stocks.

the
a

down

The




what
have

Gas

government's

money

the declining yields

stop

utility

on

the

in those
year.

to

on.
It hasn't been stopped
by Korea; it hasn't been halted by

the private company alongside of
in them, how in the world can one

three to four hundred

hours

tend

sold above 40.

funds

some¬

of

cost

the

for

yielding

the

point

a

the

built

with

have

going

are

Those,

we

prices than

still

wages

costs.

not likely to

can¬

do not have

we

we

are

to

clauses like fuel
if

even

higher

material

return

be

where

vestment

on

stock?

must

system which may be in the heart
of a private electric utility system

kilowatt-hour. organization? While figures show
average is 2.88 cents that some private companies can

residential

used to be

small

per

for residential service.
age

together the
cooperatives
with

which
electric
tension

rates

were

1920, electric utilities used to get
seven

co-op,

joins

may

keep

accept

you

the alternative choice of

practically everything but
competition.
Stop and

the electric

lowest in

super

ex¬

But

State Commis¬

Residential

50%

of the

the

have

now

forms

a particularly favorable basis
asking rate increases.
Their

rates

or

We

over¬

have
for

where

business.

today.

hard to get,
understanding on

sions of the needs

common

There

come

may not be too
a

its

a

of

for the
rate

present
foster

further expansion of this type of

think

year

the

of

is still to

faces

better

a

intent

the

Administration

ample

utilities

ity, what yield will

a

why I think that

good

a

as

promoter

a

ently,

preferred

and

Appar¬

utilities.

owned

-

lines and

not

large

a

power

vestor

Federally controlled

agencies, but not private rising, but if you can get 4V2% on
by business-managed in¬ the preferred stock of a good util¬

makes

going to be used all
the country right away, nor
likely to be used anywhere

over

is

is

It

state

resi¬
pump

could

use

22%»

1,900

than double the present residential

electric

most

output of the country was Feder¬

great deal and the principle of
the heat pump has been proved

a

to have

adverse factors in the outlook

for

have

which

So

increase

likely

are

tax-free financing—that there are too many years and had kept it up to datebonds and investors buy them for things against it. - What's the sav¬ and the commissioners knew at.
the end of every six months just,
tax exemption,
if for no other ing factor? The institutional de¬
mand.
Pension
reason.
funds,
mutual what its situation was. But that,
funds, investment trusts and all hasn't been the case in many
Now let us consider what are
sorts of funds, have been looking companies.
Many*
a
company
the

say

for years now we
eral
administrations

be offset by

tax

a

chinery in this country is pretty
much behind the times because it

These costs

continue to rise.
not

the

in

sell

They

tax.

come

that, is that yields, if these rates keep rising.
have had Fed¬ Thus far we have had quite an

I

reason

a

but I don't think

it I don't know,

it would go down on

The

be

least.

very

market would

the

How

aided, through appliances.
of

it

bullish

materials

of

costs

Thursday, January 31^1952

..

and the

factor

adverse

1952 outlook is that wages

it overnight. clauses.

stop

could

we

doubt

I

Another

need

we

change it is an
that realizes the

away-to

.

in

What is

commission

in

each

your

investments

the attitude
toward

state?

What

of the
the

is:

state

utilities

chance

has

Volume 175

Number 5086

.

The-.Commercial and FinancialChroMicfe***#^

.

.

(495)

a

of getting

company

to

how

and

crease

get one?

there

long will it take

some very serious shortages
still; certain
areas
which
wouid

And I must admit that
states that

some

are

in-, Mr. Morehouse's report, the pres-- You cannobbe half slave and half
ent schedules may lead in 1953 to free.
You can't be half public

rate

a

are

in power
re-

and

that

some

and

business

quire curtailments and brownouts.
tell our customers to stay away
What does that mean to you and
trom.
i am not going to enumer- to me?
Well, it means that those
ate
the
philosophy
of all the companies that do not get the
states here, but needless to say, allocations
for new piants will
Texas is the best state by far to soon be using all available generbackward

very

I

There

half

private investor,

is

Public

companies,

managed

-

Laughlin

By OWEN ELY

scription of the break-uo of Puget
Sound Power & Light Co., where
utilities

cannot

Tampa Electric Company

economi-

operate

cally in the face of public

power

ating capacity and be unaoie to competition.
people don't mind earn any more because unless they
j want to take a moment or two
having a utility make money, and keep aadmg new capacity tnere to discuss
wfth y0u a bit further
two companies down there in the is a limit to what
they can earn what I think will happen in 1952
last year have obtained 10% in- once they run tneir plants at mil
fr0m the standpoint of yields in
creases with very little trouble— capacity.
The only other way certain classes of
Southwestern

Public

Texas Utilities
state

which to

in

a

electric

u*ey

good to

very

earn

can

get

any

more

utility

in-

effect

the

people

are

low-rate type customer to

change

a

either st0cks

is

increases

rate

have

because

vestments

and

Service

It is

from

load

in

to

or

a

to

.

York State and
Wisconsin

a

number of others

and

others—they

use

quite

few

a

Coupled

that

at

the depreciation reserve.

run

differences

wide

are

the

is

companies

cm

in

plants and

were

f

beginning to show

st<^ks
*

economies.
Now they
deal of difference where are losing
those economies by
company is located as to what having to use these old "tea ketchance there is for its earnings to ties" again, which
they have to
increase.-For example, during the do and may have to do even more.

past

the

despite

year

taxes

increased

were

have

asked

from

cuts

rate

two

These

of them
are

the

of

law

provides

And

original cost,

certainly it would

fair value could
of

to

return

6%

zation.

to

rate

a

Now,

long

as

in

some

of the

mav

be

Television

small

a

this

The

investor

has to decide for himself whether

ties. f/?ere *s no question as to
the continuation of annual growth
1° domestic revenues, but °ver-

television

expansion

electric

of

power

^pfnns^ ^

as ir? the 30s>

see

the

turn

in the

will

stocks

continue

to

trading center,

a

County are the largest known pebble phosphate depos¬
world, and power is supplied by the company for mining
and processing this rock.
New mining locations are constantly
being opened and developments in the recovery of phosphate have
increased the estimated life of the area to more than 100 years.
its in the

In

1950

approximately 8 million long tons of pebble rock were
having a value of over $44 million, for which
company supplied about two-thirds of the electric energy
"requirements for mining and processing. Electric furnaces for the

leveJ °tf 0r lim?t

production of phosphorus from phosphate rock are being operated
and more are contemplated for the immediate future.
Explorations
are being made for the
recovery of uranium contained in the phos¬
phate matrix, and at least two plants are on the drawing boards.
Tampa originally considered itself as a commercial, jobbing
wholesaling center for the West Coast and left to the other
cities of the Gulf Coast and Central Florida the
development of

and

facilities for the attraction of tourists.

settling of tourists for the season,

However, of late
well

years

the

those in transit, has
grown to be an increasingly large addition to the economy of the
city and its suburbs. The expansion of pension systems by North¬

ern

to

as

as

industries has made it possible for
many pensioners to come

Florida, and hundreds have settled in the
Tampa's

about

stock

common

record

the

in

area.

past

decade

has

been

follows:

as

be favor-

philosophy. That is for you to de- ites among investors because the
.cide; I am merely pointing out electric companies are in a very

Year Ended

mlinteined

a n

■

Earnings

1951-_.__.___

thlt

d

Jetton iTcooperatlve and
,

Dividends

Dec. 31

e a. g°°d

„

can

Tampa is also

be revived.

stlJf.l important to watch financial

are

Illinois and hope every- practically limitless at the present
thing will work out all right*-or time.
,
- , go info a
state like New York
My feeling is that electric utility
he

of electricity.

consumers

with nearly one million people within a 100-mile radius. As a
port
it ranks 16th, and at one time had a
shipbuilding industry, which

you

to stay in

where

heavy

this

reaching

The

Tampa industries include cigar making, citrus concen¬
packing houses, shrimp fishing, etc., obviously not very

mined in Florida,

still

that the possibilities of the

can see

k

needs and sold too many secun-

will be developed and

companies in that state surely

>+

thl

domestic

use

of its potential

country.

don't see

„

nf

Other

trates,

In Polk

a

T

half.

to

kJoS
great deal

vpar

In 1950 revenues were 40%
residential, 28% commercial, 22%
industrial and 10% municipal and miscellaneous. Of the moderate
industrial revenues the phosphate business contributed well over

may

107

°

the

the

attitude

that

hampered

is

area

fo?

ortunities

pump

on

heat

The

double

'

.

™

bright.
But there must come a
bay when our defense spending

Illinois load is an important one. Add to
that the many new appliances that

the'

as

takes

could

load.

capitali- only

on

\

Commission

electricity.

that alone

seem

extend

above

of

6%

a

slows down, when our business
activity slows down, and only
then will we know whether this
industry has overexpanded temporarily—whether we have built
too much plant for immediate

value and scratched the surface

fair

for

restricted

not

worried

the future of the industry,
as.I have pointed out, it is very

factors

that state because pro and con on the outlook for
they were paying an excess profits this industry, but on balance the
tax.
Therefore, they were ap- plus factors outweigh the adverse
parently earning too much, even factors.
The electric industry is
though I am told that the Illinois highly dynamic.
We have only
is

have'been

that

y s

in

companies

the

even

those

w

still be used.

can

some

and

will

f—ir

the plants, they just shut tnem down,
so many

basis,

„,ui be
There will

o

that They haven't dismantled those old

fact

sharply

-

5%%

a

population of 125,000—and adjacent
Up to 1921 the company's transit operations
somewhat larger than the electric, but the service was
gradu¬
ally abandoned. The company's growth has been characteristic of
the South, 1951 revenues being about triple those of
1941; during
1951 the gain was nearly 18%.
in four counties.

areas

were

and

basis

finanHnS thN
*
® J, ^ appWp^uLn,,cf

great

a

Illinois Commission is reported to

Corporation). With annual revenues of $13 million (about
99% electric and 1% ice) the company serves the
city of Tampa—
third largest in Florida, with a

basis and maybe through it

regulatory practices, and it makes substantial

a

6%

or

property since

Power

number

will probably get to

ab0ut

^

as

a

the past three

Tampa is the third largest of the four major electric utilities
(the first two being Florida Power & Light and Florida

al-

large

between

companies,

people

base load

plants

5%

a

some

many were starting to use
mat old equipment less and just
new

quite

over

Stone & Webster have managed the

in Florida

4 90%

a

next-to-the-best

is

'on

selling

good

their

utility

there

are

a

its organization.

Edison,

considerable

a

weaker

run their old equipment
high cost, wnereas in 1949 a

a

The

somewhere

and

;V
fact

four decades.

companies many of which have

been

now

are-

some

which

includes
of

original cost less having to

straight-line depreciation.
And
in Missouri they use gross plant
value and then charge interest on
There

that

with

many

basis

gr0up,

re-

use

to somewhere around
5%

by

tinuously available to the investing public

and Cleve-

to

originally incorporated in 1899
holding company; the stock is
operating electric utility issues which were con¬
was

been controlled

never

of about ten

one

will probably

type

go

readyi

it is just a case of how you sell
production cost less observed de- it, and if you are not allowed'to
preciation. They cannot use any- put in new generators you could
thing
else.
They
must
use soon run inio a ceiling on earnreproduction cost.
But in - New ings.
commission

Gas of Baltimore

land Electric

rate customer or get a higher load
factor by getting more 24-hour
Probably the next best state is load.
You can only get so much
Ohio because there the statute re- electricity out of a generator and
quires the

commonwealth

Con

high-

a

liberal and they don't mind having
the
utility
make
some
money,

—

and has

I think top grade utilities

—Gf

Tampa Electric Company

,

the

and

Utility Securities

point, as Frank Mcpointed out in his de-

a

be in because there is no commission

27

real-

'

Approximate

Paid

Price Range

$2.92

$2.40

1950—

3.48

2.40

1949

3.01

2.00

34-26

1948

2.02

2.00

32-25

1947

2.32

1.80

34-29

194-3

2.74

1.60

37-29
36-27

"

40-34
36-31

„

the problem.

strong

-

financial

condition

David

and

Haley Joins

Goldman, Sachs Go.

have good earning power. They
have had a very thorough finanmal house cleaning over the last
10 or 15 years, and so many safe1952 the * allocations
are
pretty guards have been set -up that 'thevi^^fg
well settled.
The generators had industry todayis_in an.almostim-jj
been ordered probably two years pregnable financial condition, and
ago, the foundation is put in, and 11s growth seems likely to conthe machines in many cases are tinue for many years.
Another

question

problem in 1952 is the

allocations of materials' for expansion? This is going
to become more important.
For

-

of

being

delivered

so

and

installed

-or

far. along-that they couldn't

The only factor that you cannot
through growth is tax-

question

recent

report

Power

Advisory

can

of

read

the

the

Electric

Committee

headed by E. W. Morehouse, VicePresident of General Public Utili-

me.

etc.

We have got to sell the people of
this country on the idea that pub-

lie

doesn't

power

that

them

save

that

this

about

the

feeling
where

fense

Committee

is

disturbed, advantage

problem of allocations,

that
the

some

of

the

arrangements

areas

for

de-

other.
more

an

at

But

the

expense

investors

must

of

think

about it because every time

have already been by a public power agency invesmade are not getting allocations tors lose the opportunity to invest
for an adequate amount of elec- in that
company forever.
So little
trie capacity to take care of these by little your
opportunities for
"new plants, whereas other areas investment are whittled down and
without

so

much

defense

work

each

time

REA

joins together
will, under present plans, be able with some other to form a super
to build up considerable reserve co-op.
the opportunities for the
capacity.
private
company
to
eventually
How far the

government should

in
definitely
limiting
building of a power plant by
company and allowing it by
go

*

the
one

an

take over that REA

are

lessened.

an-

not

nor

from

the

David

(Special

to

The

A.

Haley




angle

27-18

1942—

1.77

1.70

20-16

1941—...

1.89

'1.80

25-17

will

$15.2

at

be

continued

a

recent

Society of Security Analysts estimated
and share earnings at over $3.

million

at

their

current

levels.

And

this

for

the

only hopefully pray." '

can

growth prospects remain excellent,

Financial

Chronicle)

David A.
Haley has become associated with
BOSTON,

Mass.

with.

as

indicated by the

All electricity is generated with fuel oil

delivered
wifh rising oil prices and possible future diffi¬
an adequate supply, it may prove necessary

from tankers, and
*

—

Goldman, Sachs & Co., 75 Federal
Mr. Haley for many years

has been associated with Paine,
Webber, Jackson & Curtis as manager of the municipal department,

culties

in

obtaining

for the company to

change to coal.

Francis I. du Pont Co.
(Special

to

The

Financial CiixonicleI

MIAMI, Fla.—Joseph A. Rayvis
has become associated with Fran-

recently
mond

(It

seems

unlikely that natural

be brought to this area.) Another problem is the fact that
some transmission lines may have to be moved from highways to
private rights of way.
B'
gas can

Another

complicated
courts.
local

difficulty

is

the

rate

by the Florida Power

Florida has

situation,

which

is

currently

Corp. litigation in the

State

state commission

replacing some of the
utility boards, but the commission does not have adequate
a

new

funds with which to operate.

Joseph A. Rayvis Joins

was connected with Ray& Co. of Boston. Prior
present defense emergency if we it is from the social angle, and I thereto he was President of J. A.
are going to build these war plants
think we must., all give a great Rayvis Company, Inc., and in,the
we have
got to have electric ca-* deal more thought to this angle if past was in the investment busipacity for them, and according to the industry is going to survive, ness in Philadelphia.

engineering

is it from the finance angle—

1.60

revenues

contend

So, from the standpoint of the cis I. du Pont & Co., 121 Southelectric indiistry, the problem is east Second Avenue. Mr. Rayvis

other I don't know, but under our

1.92

forecast for 1952, the company has one or two future problems to

electric property is taken over * Street.

plants

28-23

1943

While

a

an-

1.60

deponent

they

aren't getting
anything free from it, they don't
ties, on the question of allocation get anything out of it that they
of scarce materials for new elec- don't pay for.
It merely means
trie facilities, and you will find that one group, of people gets an
penny,

1.60

"However," he added, "in making these estimates of the financial
results of operations it must be borne in mind that they are made
on the basis of present conditions—that
wages, oil price, tax rates,

up

"

into, this

1.99

2.14

before the New York

1952

overcome

ehariged- 'to-' some; other' pliace'-^free competition, and that is
-"But those of you- Who want to look to you to settle—to you and

1945
1944

Regarding the future outlook, President Gannon in
talk

.

,

.

I'

The bill providing this new regula¬

tion set up a

"prudent investment" basis for rate-making, but did

not

any

prescribe

tial rate is 2.820,
The company

rate of return.

average

residen¬

is hopeful that when the Florida Power Corp. litiga¬

tion is settled that this will pave
clauses in

The company's

which is about in line with the national average.

the

way

for obtaining commodity

its rate structure, to safeguard against the fluctuations

in oil prices.

Tampa has

a

sound capital structure with about $22 million

debt and $18 million common

stock equity. The construction budget

for 1952 is about $6.8 million,

partly financed through bank loans;

market conditions will determine the type

of permanent financing.

The Commercial and Fitiancial Chronicle

#3

breeders now between*
satellites on the
one hand, and most of the remainder of the world on the
other.
But the nature of the problem is now somewhat
different. The Kremlin has seen to that. It has developed
in

first

^Continued from

page

j "has set itself up as physician ordinary
j Tiary?) to the remainder of the world.

(or is it extraordi-

Some Improvement?

J
I

is

There

some

real sense, they can

a

reason

to hope that the rigor

of the

1 disease is subsiding somewhat in some of the older coun] tries. It would be difficult at this distance to determine

tainly this Tory has ideas, notions and plans which do
not conform to traditional British conservatism, but we

'

!

-can

rebels in

systematic way that has
earth and everything on it.

the

a

| the thinking of the great rank and file in this country
j -after the election next November.
Attention at this moment is centered in

i

backward

the so-called

countries, most of which have been

colonial

j .areas, if
j :in years

not in the political at least in a financial sense
past.- Here it is that the pot threatens most immediately to boil over. Were it not for the fact that in

a regime which specializes in fishing in
j -troubled waters, which is past master at turning disconi tent to its
advantage, and which operates under a system

J Moscow sits

j*o£

philosophy which holds as one of its basic tenets the
i notion that it must go forth to the uttermost parts of the
] -earth and bring all men under its banner in one way or
j. another—were it not for the fact that this regime exists
and is frantically active, the people of the United States
could look with much less concern upon

what is taking

eliminate them

to

H interests.
-attracted
terests in

veloped by American enterprise. In recent years, even
recent decades, many and serious difficulties have

presented themselves. But without the instigation, aid
a^d support of the troublemakers from the Kremlin, we,
doubtless, should be able to find a profitable way to pro¬
ceed, and in any event it is doubtful if matters have grown
very much worse within the past few years.
The most
serious threat in the underdeveloped world is in Asia and
it is from the Kremlin, whose purpose is not simply, not
even
chiefly, to gain access to materials and economic
opportunity, but to deny them to the non-Communist

J world and turn hundreds of millions of human beings
into enemies of

peoples outside its orbit.

•;V; .rv;; V.;.' v:*. - v

Undue Alarmists?

I:

'

Precisely how immediate and dangerous this threat
! is, it would not be easy to say. Certainly, it seems to us
! that
^ talk

some

of

about

our

leaders

defense

are

undue alarmists—those who

line being

thrown back to San
Francisco, for example. After all, the Pacific is wide, and
I we hold almost innumerable bases far away from our
our

i

shores, and

we

have alone

a navy

far more powerful than

all the remainder of the- world put

together — and our
) chief potential enemy has no navy at all to speak of except
i submarines. We fought all of World War II, or nearly all

) of it, without

access to many of the regions and
for which South and Southeast Asia ate noted.

materials

•

when

I

the

it- all as yet, and
well be that they will develop much

not masticated and swallowed

they do it

same type

may

of indigestion that has been troubling the

remainder of the world in its

ward

relationship to these back-

Decades, possibly much longer than that,

areas.

j would be required to make great changes in conditions in
j Indo China, in Burma, in Indonesia and the other regions
^ibout which
«

hear

great deal now. After all Russia
itself is still primitive over much, if not most, of its area.
we

a

\ To place China itself upon any sort of solid economic basis,
j to say nothing of industrialization, is a Herculean task
] hardly yet begun.

j
f

Still Trouble Spots
'

own

But the fact remains that these backward

j still trouble spots. They used to breed

l^great colonial

powers.




In

a

areas

are

wars among the
different sense, perhaps, but

of

from

page

13

reformers and "do

factor
in

and

deposits

Function

their

on

Bank

of

Examiners

States
held

are

so

approxi¬

is

Government
This
small

against
price of

safety

market

-

to

seem

to justify the payment of $23

Treasury

Federal Reserve

on

opinion,

my

it

interest
and, in

as

notes

shows

undue

an

deference to Treasury Department
that

over

Banks.

of

the Federal

With

$36 Mil¬

a

income, mainly from interest

Government

on

Dangers Inherent in Government
Ownership oi Reserve Banks

of

the

Million to the

Million

Treasury

side

United

Account

decline

a net
deposits.

or

total

of

margin

"

DepositJ

a

securities owned does not

$23

asset

of

3.8% of its
holdings.

welfare

.

,

5.4%

Capital

lion

Continued

against

$2,204,000,000

Reserve

securities, to pay
it back to the

of

in

means,

Governments

which

is

than

1%

about

%.%)

ings.

This does not

to be fair

on

income,

(actually

Government hold-„
to

seem

bargaining between

different sides

on

their

on

interest

as

less

that

effect,

they got $13 Million net

of

me

men

table.

a

their profits ran
Advocating that bank examiners
As evidence of the original and
extraordinary even exercise skill and judgment in
keel, because with it we have all counseling bank managements in¬ progressive thinking of the Treas¬
seen income on the profit side of stead of
merely performing audit¬ ury Department to have the Gov¬
the bank ledger rising in propor¬ ing
functions has been claimed ernment obtain dominance over
side,

liability
along

tion

at

an

the

to

rise in expenses.

be

to

There then entered into the pic¬

ian

plea for more authoritar¬
The point should be

a

controls.

Federal

the

original

Reserve

paper

the

Banks,

-issued

money

in

Federal clearly understood that this is one 1914 was called a Federal Reserve
taxes, and it is my own conviction more reason for non-government Note, and had a very large size
that as these Federal taxes became control of examiners/ If they are, seal on it, indicating which of the
recognized as a super-imposed ex¬ to use only simple arithmetic, and Federal Reserve Banks originated
pense item on banks, and as sal¬ are
to assume
that an inflated the Note, the Notes themselves
ture

mounting

steadily

aries'and

have

wages

with those in industry,

mounted

it

the
that broke the camel's back,

straw

and is

was

bringing about the present

substantial

quotation for
the

is
of

a

make

one

hundred shares

signed

by

control

United

States

value

true

the

of

large company, it does not
a
great deal of difference

interest who controls the bank examiners.
words, as I sum If, however, the examination func¬
I want to ask the question tion of the Federal Reserve Sys¬

this up,

change

in

other

In

rates.

the

whether

natural

of

course

is

tem

counselor

a

as

bank

of

which I have outlined has

managements, to keep an inde¬
pendent banking system sound,
whether the Fed¬ it is vitally important the system
eral Reserve re-discount policy, be
independent, and that the ex¬
reserve policy, etc. played the pre¬
aminer not be the minion of po¬
easy money, or
v

dominant role.

tentially
Cannot Control

Banks

Reserve

Money
I
we
we

am

inclined

are

fooling

Rates
to

believe

ourselves

aged

to

really

any

great

degree

twelve Federal Reserve
Banks through their power in the
open market committee, or through
by

the

largest borrower, the

our

United States Government. Should
not

the

of

financial

that banks
when

think that money can be man¬

ideal

soundness

by

themselves

of

agency

and not the

tical

the maintenance

be

or

the
the

How

social aims?
can

Bank

Federal

der

the

Treasurer
the

and

the Treasury.

of

the

At

Reserve

Federal

signed

time,

same

Federal

the

the

the various

Banks

Reserve

by

of

Secretary,
"
issued

Bank

Notes

Cashier and

Gov¬

each

of

Bank, and bearing
the name in
large type of the
respective Federal Reserve Bank

ernor

as

the

with the notation
the deposit of United

issuer,

"Secured by

States Government

certificates

indebtedness."

These

ceeded in

by the

size

1929

notes,

phrase

but

were

small

new

the

significantly

"Federal

of

suc¬

Bank

Reserve

through
Note" ;was
eliminated, although
their own examiners, they were still signed by the., ofpromotion of any poli¬ ficers of each Bank.

.

Examiners,

Government

un¬

control,

In 1934, another issue appeared,,
eliminating the signatures of the

officers

the

of

respective Banks,
them signed by the
more long-term Government bonds
Secretary of the Treasury and the
have short Government securities
than is prudent?
Prudent, from Treasurer of the United States,
with which to balance their re¬
the point of view of market risk? but the name "Federal Reserve
serve position.
Obviously, marketable securities Note" appeared again at the top
Going back to the creation of
owned must appear on bank bal¬ of the note, and a symbol denot¬
the Federal Reserve Act, the cry
ance sheets at the immediate re¬
ing the respective Federal Re¬
was
for
elasticity of currency,
alizable value on the market, or serve Banks appeared on the notes
followed shortly by a further cry
else the net worth figures of a in, however, reduced size of the
for elasticity of credit. The desire
bank are ynrealistic. Do the Fed¬ original form of Federal Reserve
clearly seems to me to have been
eral Reserve Bank figures carry Notes./
^V-/!;S ■•:./'*/
that the Federal Reserve System
their
Government
securities
at
Finally, in 1950, there appeared
was
meant to be the means for
cost
or
market,
whichever
is a new issue, similar to the 1934
avoiding money panics and credit
lower?
Are they above the rules issue, but further
reducing the
shortages, and that the examining
for sound banking? Our forebears symbol
denoting the particular
power vested in the Federal Re¬
fought to get rid of the European Federal Reserve Bank of issue. It
serve Banks was the other side of
idea that "The King can do no therefore appears clear that the
the picture, namely, the crew of
progressive intent is to minimize
,
skilled examiners who could keep wrong!"
re-discount

rates,

when

banks

act to restrain banks from owning

and

having

the

existence

^

All of this leads

the banks in sound condition.

My
bank
and

own

deep conviction is that

examination

should

for

be

was

intended

that sole pur¬

and that the examining

pose,

thorities

Moreover, Moscow, yes and Red China, have bitten
off great mouthfuls in the past few years. They certainly

j have

;

our

worth

me

gooders" would do well to remember at all times.

:ln.

i

-

been the cause of -the past era of

of these areas we have substantial property
Minerals, especially oil, in many of them have
American capital on a large scale. Other in¬
substantial amounts have been acquired or de¬

In many

'

which

—

figures,

shows
in

$84' Million

securities

poverty and misery will remain. They will re¬
until the sufferers are willing to do what is necessary

main

of

liability of $1% Billion,

mately

But

events

.place in the backward regions of the earth.

.

equal. It promises

no

round

its

similar tendency exists in a

1 number of other countries regardless of superficial polit} ical appearances.
It is, perhaps, most observable in the
] trend of financial and credit policies, which seem to reflect
1 an awakening to the fact that the magic which once was
1 thought to reside in deficits and fiat credit is a snare and
1 a delusion. It may be that we shall know more about

■

a

worth

net

a

Government securities

technique by which it turns local unrest not only to the
disadvantage of its rivals but for the time being at least
to its own advantage. It professes great concern, as do we,
for the welfare of the natives. It operates through native

mark a certain
of the British people. It would appear at

1 this distance at least that

4

Thursday, January 31, 1952*

.

.

Cleveland for the year 1951

only hope that his return to power may

) sobering down

i

war

a

I

precisely what long run significance in this connection is
1 to be attached to the return of Churchill in Britain. Cer-

be

of the older colonial powers and its

one

We See It

As

1

.

(496)

were

au¬

sadly remiss in the

clusion that
free

we

me

need

a

to the

con¬

completely

market for Government

sec¬

ing

leading

up

inordinate

should

have

to the 1929 col¬

risks—also,'

they

branches of the Federal Treasury

in

other

would be—

the Bank's net worth makes pru¬
dent. V
>1
.

can

what would be the equivalent of
a fifth mortgage when
lending on
the common stock of a highly pyr¬
amided
I

holding

have

,

considered

Banks

serve

Federal

twelve

Re¬

merely

Department.
K

•

•

•

The Macmillan

The

Macmillan

England,

among

Ernest

Reginald

others,

/

•

,

i.

Study

Committee

whose

in

members

Bevin, J. M. Keynes,

McKenna

invited

and

several

distinguished

a

American

ever

Securities owned, including

is lower.

between

net

worth,

seen any analysis loans and deposits should not have
panic losses by banks, too great variances.
but I have a strong feeling that
Example of Treasury Control
a complete study of it would dem¬
As an example of the steadily
onstrate that poor bank exami¬
nation, and the lack of sound increasing power of the Treasury
banking advice from the examin¬ Department over the Federal Re¬
ing authorities had a great deal serve System, the Annual Report
to do with the severity of it.
of the. Federal Reserve Bank of
:
never

of the 1929

all

Economist, Dr. W. W.
Stewart, to appear to give testi¬
Government obligations, must be mony on the topic "Monetary Pol¬
carried at market or cost, which¬ icy and Economic Prosperity" in
(2)

(3) Ratios

company.

have

were

only lend under the law
on first
mortgages on real estate,
and
that they were lending
on

banks

em¬

and more the intent

for their investment requirements;

(1) No greater market risk than

out

more

separate

to

that

pointed

phasize

twelve

Banks, and

urities, that the Federal Reserve
Banks should
own
governments

words, they should ob¬
serve the same prudent investment
lapse, by not pointing out to the
banks who were lending on highly rules which they must ask their
member banks to observe as they
pyramided equities at almost full
market values that they were tak¬ examine them. Among these rules
years

of

Federal Reserve

Jul.y, 1930, and a full report of his
testimony and the questions and
remarks

offered

members

American

was

by

the

published

Enterprise

Inc. of New York.

British
by

the

Association,

This record of

the

Testimony is in many respects
just as pertinent to the subject we
are

discussing here

sible to

be, and I

as

urge

it is pos¬
all inter¬

ested in this -vital topic to, obtain

•

STolume 175

Number 5086

In

closing, I submit

tions and

The Commercial and Financial Chronicle,

.

v'

McKenna:

I

not

am

quite

If you had an increase of money
fully proportioned to the increase
of production the
not

historian, looking back to
period, will give less weight
the problems of currency re¬

this
to

adjustment,

that I understand your point.

sure

fall, would

price level would

it?

the

Dr." Stewart:

keenness

be

may

on

My

difficulty in

mon¬

applying it

dwell

competition,
that

last

the

*

Mr.

*

is

*

McKenna:

I will

give

you

the evidence of experience. When¬

the

quantity of money has
been increased by inflation prices
have definitely risen. I have never
ever

indicated

B

companies in the industry.

assist not

known

inflation where

of

case

a

prices have not risen;

;

few?

•

deposits

in. the

XJnited

is

attribute

of

accurate

Paper

weight

money can

ise with

with

only be

the restraint

on

Govern¬

of

was

believed to

are

be

somewhat

repre¬

general, the trends prevailing during the year resulted in
modest statutory underwriting profit for the fire companies and

a
a

substantial

underwriting loss in the casualty field.
two principal fire companies in the group,

The

Continental
Fidelity-Phenix Fire Insurance Co., experi¬
enced a gain in premium volume. Although
premiums earned were
also higher, increased losses and expenses absorbed this
gain with
the result that statutory earnings were
slightly lower.
Insurance

Co.

and

Investment income showed

proftis taxes

excess

a

small

lower primarily
The final result was

were

statutory earnings.

net income for the year.

Fire Ins,

below.

;

Co.

on

as a
a

Continental

Co.

Ins.

"'

'

and

result of the lower

small overall

gain in

and

v-'V?:.'£■? 1951

'-'X '''

-

Continental Insurance

1950

i

'

The

prices

but

volume

of

have

bank

deposits

Gulf

in

this country is
same

approximately the
1920, but prices are

in

as

60% lower and

*

*

,•

Dr.

Stewart:

vv'

*

- *

Sulphur Stock

-

The

400,000

shares of

common

opinion stock (par 10 cents), publicly of¬
is that those who have emphasized fered last month
by Peter Morgan
My

own

the extent to which money rates,

&

either short

been

in

long,

or

^influencing

are

decisive

Co.

at

premium
Premiums
Losses

per share, have all
according to an an¬

activity nouncement made this week.
The net proceeds from the sale
largely upon
the coincidence that "following a of these shares are to be used to
period of relatively low money provide funds required for the
But

there

is

business revival.

a

other things happen,
during the period of relatively low
so

many

money rates, which are important
to that revival. Trade depressions

reserve

earned

__

incurred
__

drilling, to

pay for advances

already made for drilling, to

pay

American Sulphur Co., S. A., $100,usually accompanied by the 000, and the balance will be used
liquidation of insolvent concerns, for working capital.
Gulf Sulphur Corp. was form¬
changes in management, the im¬
provement of
operating
condi¬ ed to acquire all the stock, except
tions, even the installation of new directors' qualifying shares, of a

equipment, the gradual restoration Mexican corporation,
Compania
of confidence, and the healing that De Azufre Veracruz, S. A., which
comes -only
with time.
So the has recently been organized to
purely artificial reduction: of carry out certain contracts re¬
money rates is not, I think, nec¬ lating
to the Mexican
Govern¬
essarily decisive in bringing about ment. If sulphur in-commercial
revival.

Dr.

,i-

-.L :'C:

Stewart:

within

the

.

.

If

.

it

of

power

■,

were

Central

quantities

trade

activity

restore
be

market

money

to

even

and

501,658

2,584,407

63,933,527 62,062,207
33,790,515 32,825,529
26,507,679 24,994,798

1,003,657

52,846,888 51,552,993
28,600,275 27,880,721

21,326,942 20,848,089

there

Other

profit

items

2,919,670

2,824,183

loss

or

other

no

through such

29,663*1,686

Underwriting gain

3,605,670

_

27,616*

4,243,567

2,892,054

Max H.

broker, passed

as

and

rents

pleasure trip.

many years was a member of the

Central

Banks

should

accept

responsibility before public opin¬
something over which they
have very limited control.

ion for

❖

■

*

85

.

.

,

8,662,221
166,411

8.563,918
197,049

6,976,395
134,459

6,885,062

can

increase

an

while

en

Cincinnati
was

away

route to Hawaii

Mr.

Stock

on

a

Exchange

an

econo¬

Bache Adds
(Special

to

The

MINNEAPOLIS, Minn.—Harold

decrease in

it.

Fenske,

Jr.

has

become

8,495,810

8,366,868

6,841,936

6,723,804

12,101,480 12,610,435

9,733,990

9,547,902

2,142,899

2,041,969

161,258

Dr. Stewart:

With J. A. Lynch Co.

"My feeling is that the monetary
(Special to The Financial Chronicle)
theorist is not sufficiently famil¬
ST. CLOUD, Minn.—Conrad M.
iar with
industrial
development Olerud is with J. A.
Lynch Com¬
to put it in its proper perspective
pany,
Inc.,
1616
St.
Germain
as
part of the general economic
Street.
'.
'■
•
and

Net

Murphy
acquired some

Income

of

eastern

..result of lack

2,887,232

3,480,928

9,214,248

7,591,091

9,129,507

On
crease

deduction.

or

7,505,933

"

y-;',

lished

has

of

Mansfield Mills Opens

familiarity with
Industry

is

highly complicated and diffi¬
cult process which takes place un¬
der the direction of specialists—
the chemists,
the engineers, the

(Special to The

a

electricians, and
on

Mills

JOLLA, Calif.
is

engaging in

Chronicle)

—

Mansfield

a

securities

business from offices at 8010 Jenner

Street.

per

usual

statistical

work

out

methods, operating results for last

This goes

advances

Those

with

bank

deposits

Adjusted

Investment

/
f

income

1951

1950

$

S

1.44

1.70

1950

$

S

1.45

1.41

.62

.08

.52

.21

2.06

1.78

1.97

1.62

res.

underwriting

Fidelity-Phenix Ins.

3.40

3.35

3.42

3.36

Net gain before taxes

5.46

5.13

5.39

4.98

Federal

1.16

1.39

1.07

1.02

taxes

undergoes little change.
engaged in the indus¬

not

trial process can

hardly appreciate

-importance or the
change of its technique.

rate

of

The in¬




Stephenson, Leydeckerf
■

-(Special

to

The

Net

income

4.30

—

Edward C.

Ronsenteele has been added to the
staff of

Stephenson, Leydecker &

Co., 1404 Franklin Street.

a

in

estaio-

Calgary, also-,,

leasing program in Canada
initiated.

<

;

With Boettcher & Co.

•

—
Joseph ML
joined the staff of
and
Company,
13 5-

111.

Frankovic has
Boettcher
La

Salle

Street.

He

was

previously with F. S. Moseley &

Central Republic Adds
(Special to The Financial Chronicle)

,

CHICAGO,

111.

has

Central

Salle

Street, mem¬

Midwest

the

of

P-

affiliated?

Republic Company;

South La

bers

Frank

—

become

Ex¬

Stock

change.

With Merrill Lynch Firm
(Special to The Financial Chronicle)

LOUISIVILLE, Ky.—Lincoln H.
Lewis

has become affiliated

Merrill

with,

Pierce, Fenner &

Lynch,

Beane, 231 South Fifth Street.

Joins Smart,

Clowes

3.74

4.32

3.96

LOUISVILLE, Ky.—Kenneth G.
has been added to the

Brandon

While the above
those

of

the

operating results for 1951

previous

year,

a

compare

favorably

different showing would be

if compared on a consolidated

of the three

subsidiary companies
a

were

The

the

by

major

reason

casualty

included, the results

on a

Losses in

of

insurance had

the

ualty operations. The statutory underwriting loss for the

$12,497,442

was

This loss

compared

as

with

a

loss

$371,249

of

than offset the earnings of the

more

With Waddell & Reed
(Special to

The

Financial Chronicle)

Mich.

—

Edgar R. Radesky is with Waddell:
& Reed, Inc.

automobile liability,

workmen's compensation classes

particularly unfavorable effect upon the

a

Smart, Clowes & Phillips*
Inc., Washington Building.

BENTON HARBOR,

decline.

for this is the operating results experienced

subsidiary.

staff of

In other words, if

basis.

share of each company in the operating results

year-to-year basis would show

(Special

1951

year

for

Waddell & Reed Add

cas¬

1950.

to

The

Financial Chronicle)

BRAINERD, Minn.—'Wilber G.
Jones is with Waddell & Reed, Inc.

other two fire sub¬

sidiaries.
same

Breakdown

general forces will be reflected in other insurance

reports to be issued in the coming weeks.

Fire companies

pected to show statutory results close to those of 1950.
ment income should

of funds

ume

are

ex¬

Net invest¬

be moderately higher reflecting a larger vol¬

tax

at work

and

improved yields

on

results

be

near

those

of

the

previous

lower
year

so

Breakdown

or

be

sent

even

casualty end of the business, underwriting results, par¬

ticularly in the automobile liability and property damage lines,
expected to dominate the reports with comparisons unfavor¬
with

those of last year.

request

New York Stock

Members New

Telephone:
Bell

York Curb

Exchange
Exchange

NEW YORK 5, N. Y.
BArclay 7-3500

Teletype—NY

(L.A. Glbbs,

able

on

Laird, Bissell & Meeds
Members

120 BROADWAY,

are

of:

Sources of Gross Income

that

mium reserve.
In the

L

security holdings.

liability for most companies will be
may

of:

Govt. Bond Portfolios

Will

Federal

Financial Chronicle)

OAKLAND, Calif.

area

which

(Special to The Financial Chronicle)

slightly higher when adjusted for the equity in the unearned pre¬

and

in

Montana

would

year

follows.

as

Statutory underwriting
Equity in unearned prem.

final

while the financial mechanism

dealing

the

so on.

LA

Financial

many

Corporation has
670,000 acres of

office

an

been

209

share basis, and allowing for the equity in the in¬
in the unearned premium reserve in accordance with the
a

These

the industrial conditions.

explora¬

for

35% interest is being transferred

with
*Loss

asso¬

Teases in the Williston Basin

Thometz

his

dwelling upon
monetary factors is frequently the

in oil

development

.

situation

active

been
and

Interests

Murphy Corporation

years.

Fed¬

Taxes

automobile property damage and

final quotation, I offer this

with

Co.

con¬

Co., Minne¬
apolis Grain. Exchange.
by

for

Income

the proportionate

Chronicle)

Financial

have

;

and

Staff

to

that all the

nected with Bache &

statement

eral

with

A.

a

Provision

associated with Breed & Har¬

the volume of Central Bank cred¬

As

_

eral Taxes

Thurnauer for

rison, Inc.

be cured sim¬
or

income

•

As

believe

ills of business

ply by

61

integrated copiindustry, active
in the Ohio Val¬

Southwest.

the

2,824,098

Net gain before Fed¬

obtained

Dr. Stewart:
mist I cannot

❖

for many years

South
Net invest,

at the age of

the

should

an

oil

CHICAGO,

.....

Continental Ins.

responsibility which
regard as of equal im¬
portance. But I am unwilling that

I

is

the

(Special to The Financial Chronicle)

Expenses incurred

investment

an

in

and

Ltd.

Corp.

*

Ashland

"

Thurnauer, well known

Cincinnati

Securities

pany

dividends

Interest,

the

Of

shares are

associates.

Investment:

Max H. Thurnauer
in

Co.

100,000

yffered in Canada by Dom¬

inion

and a

(net)

development thereof.

out

would

being

&

Becker

offering,

to Amurex. The latter has

4,241,881

1951

to stimulate and

or

employment

found

exploration,
the
contract
also
gives the right to the exploitation

Banks through a manipulation of
either the short-term or the longterm

is

G.

A.

total

tion

3,868,214

_

3,635,333

purchase of machinery and equip¬
ment
necessary
for exploration
and

55,431,294 52,556,650

are

a

of

ciated

67,801,741 62,563,866

_

Expenses incurred

base their conclusion

rates

written

$1

sold,

business

;;

«

Increase in unearned

Offering Completed

still declining.

arc

Premiums

beings

is

offering

group of some 60 un¬
derwriters under the management

in

Underwriting:

V

declined.

The

States.

made by a

ley, and with crude oil producing;
properties in that area and alse

1950

States have gone up by more than

40%,

business

inces of Canada and in the United

'

Fidelity-Phenix Ins.
1951

company

the

prospecting for, acquiring and
developing oil and natural gas
properties in the Western Prov¬

Fidelity-

parent company basis are summarized

a

v v'

y

Federal income and

in

engage

of

•

Operating results of the
Phenix

gain.

to

The

stock.

common

plans

In

Freedom.

our

the

''

extravagance vanishes,

it

report

a prom¬

fulfilment contract spe¬

a

or

fineness.

and

approximately in line with previous expectations.

One

Gov^

ernment—Coinage of gold or sil¬
thereby guaranteeing the

May I; mention a
cified,
During the last eight years ment

demand

insolvency

ver, and

Stewart:

Dr.

,

insolvency

Dictatorship!
The right of "coinage" has been
an

of

stock

common

sentative of other

Banks,
respective

can

chaos—Federal

as

A

class

Amurex Developments.

panies the results

me

•

share of 500,000 shares

per

Reserve

Directors,

accepted

of

The first of the insurance
company annual reports far the year
are now available and
operating results as indicated in these
statements are
1951

gives

bounds—Bank

i

$10

their

Regional

within

run."

long

at

first of the major organizations to issue their
the America Fire Insurance Group. As this group is
engaged in both the fire and casualty fields through its five com¬

promptly."

statement

administered' by
Boards of

Sh.

CHICAGO, 111. — Public offer¬
ing was made yesterday (Jan. 30)

JOHNSON

E.

\

The com¬
pany
was
organized under the
joint sponsorship of Ashland Oil
& Refining Co., Murphy Corp; of
El Dorado, Ark., and A. G. Becker
& Co. Inc., who own all the class

so

a

"In

Slock at $10 per

This Week—Insurance Stocks

cur¬

support in making the assertion
that an independent System of
twelve

By H.

he

and
the

particular case is that it pro¬ only in keeping the member banks
but aid them in serving
tects its logic by first saying, "All sound,
their
other
depositors,
and
assist in
things
remaining
equal,"
and in the second place by saying, keeping the Federal finances
to

Amurex Oil Class A

Bank and Insurance Stocks

upon

disorder following the War

overcome

This

a

ory—the quantity theory of
ey.

of

astonished

You

are touching,
theory which is
very widely held, for the logic of
which I have great respect: I think
it is a thoroughly consistent the¬

course,

will

expansion in world
production, the great increase in
per
capita output, the extreme

rency

.

but

enormous

was

of

m

(497)

dustrial

few ques¬

a

from that 1930

answers

Testimony:
Mr.

,

re-read it.

copy and'read and

a

,

Manager

1-1248-49

Trading Dept.)

Specialists in Bank Stocks

30'

The Commercial and Financial Chronicle

(498)

.

Thursday, January 31, 1952

.

.

I
i

NET ASSETS

National

,

S

Investment

Mutual Funds

Program

By ROBERT R. RICH

Open

DEVELOPMENT OF Financial

Account

leadership capable of managing
the increasingly complex opera¬
tions of both industry and gov-

Details and

request

upon

is

ernment

Prospectus

NATIONAL SECURITIES

&

*;

RESEARCH CORPORATION

1925

FOUNDED

in

Inc.

executive

liaison

investment

Diversified

Investors

The

Univer¬

between

American

the

Finance

11%,

22%, and

preferred

SELECTED

ciation.

students of business
and finance, have as vital a stake
in helping to shape and guide the
future economic productivity, sta¬
bility and security of the country
"You,

as

sciences

the

of

students

as

engineering

and

agriculture,".

d

an

Faville declared.
He

emphasized
that
current
of college-trained men

shortages
in
Announces

a

remedied if industry

ment expect

for Purchasing its Shares
Prospectus

investment dealers

The
200

to meet

or

govern¬

to have the trained
will be needed

growing fiscal and money

management pro b 1 e m

Corporation

Parker

in the

s

future.

Boston, Mass.

Berkeley St.

and

which

manpower

be obtained

may

economic

and

financial

fields, as well as in the scientific
and engineering fields, must be

INVESTMENT PROGRAM

from

the

new

SYSTEMATIC

The

job of modern investment
management,
Faville said, de¬
mands an ever-broadening study

SECURITIES COMPANY, INC.

a

the

of

Mutual Investment Fund

financial

future

nation's

leaders should be

thorough

a

un¬

derstanding of the part which
invested capital must play in in¬
dustrial

development

nomic growth, it was

AMERICAN

free prospectus

your

write

investment dealer

provided

worth

and

eco¬

share

per

Asset

$13.57

to

rose

from $12.72 at Dec.

31, 1950.

increase

a

after

was

cents

in

and

CALVIN BULLOCK

by

at

Fundamental
the

between

are

Inves¬

the relation¬
of

cost

living

the asset value of the fund.

The

indicate

charts

that

realized

cost

New York

and

of

living, sometimes leading
lagging. However,

sometimes

there is
For

over-all correlation.

an

*

results:
PERCENT

INCREASE

COST-OF-LIVING

IN

ASSET

AND

VALUE,

INVESTMENT

P.

Edward

Rubin,

President,

eystone

Custodian Funds
in

in

(Series K.1-K.2)
•

.

'

.

...I

••

,

/

COMMON STOCKS
(Series S1-S2-S3-S4)

the

most

out¬

I

program

stepped

defense

d

n crease

likely

seems

significantly.

up

should result in

Company

prospectuses

general business activity.
Some
shortages may develop despite the

Name

.

der

year. Un¬
circumstances it would

such

be possible for corporate earnings
and dividends, on average, to re¬
main rather near the good levels
of

1951."
:

.■

-

[

'

'

(

:

i

.

•

,

.

;

.

-j.,

Investment

Company's year-end report shows
net assets

Dec.

on

31,1951, reached
high of $42,493,826. This is
gain
of
approximately
63%

a

new

a

Jan.
1, 1951. Asset value
share increased from $6.41 to

per

$6.84, and outstanding shares in¬
4,050,106 to 6.212,732.

creased from

Shareholders made

a

to

year

67% increase

Hundreds

tho

of

d

u s a n

of

s

heard Milton Fox-Martin,
general manager of Kidder, Peabody's mutual fund department,
mutual

station

funds

WOR last

radio

over

Thursday, Jan¬

3.2%

is

preferred

invested

in

in

detail

not

the

and

in

only

the

importance

financial

were

Peabody's
most
in

clients,

radio

the

women

pleasant.

the

life

of
of

wisely remarked that

corporate

stock holdings are

common

in oil, public utilities
(electric),
chemical and drug industries.

TOTAL

NET

assets

of

United's

three funds—United Income

end of 1950.

position could have been.

what

the

value

of

the

dollar

Mr. Washburn,

previously with Eastman Dillon &

Co., joined Kidder, Peabody sev¬

elected
bocker

most

but,

women

were

asked

accumulating shares

now

its

der

chartered

which

un¬

dividend- reinvestment

was

Mit¬
joining
Knickerbocker
a
year
ago.
A
graduate of
McGill University,
prior

REGISTRATIONS
FINANCIAL

filed

Securities

&

Exchange Com¬
Financial Man¬

stock.

common

agement Corp., Seattle, Wash., is
underwriter.

HAMILTON'

Fund, Inc.,

filed

ver,

with

$15,000,000

The plan,
begun in March of last

provides for Reinvestment of

dividends at net asset value.

of first

HAMILTON

Funds, Inc., Denver,

open-end investment company,
a registration statement with

an

filed

the

Securities

mission

on

&

shares

of

series

Grade Common

1,000,000
Grade

Exchange

The

of

assets

Securities

shares

of

are now

Axe-Houghton Fund A

free of Pennsylvania Per¬

sonal Property Tax.
ago

it

ton

Fund

increased

United
from

shares

3,660,032
is

Stock

shares

of

Common

reported Axe-Hough¬
had .qualified as a
corporation in Pennsyl¬
B

and

was

also

free

steel

Fund"

H-DA

and

"High

Fund"

Stock

to

Included

York

in

by

.

filed

a

Fund,

the;^ section

Jan.

21

the. Securities & Exchange - Com¬
mission

covering 832,582 shares of

capital stock.

were

York,

No underwriter,
Funds,

Inc.,

Jan. 24 filed

on

■

New

registra¬

a

tion statement -with the Securities
&

Exchange Commission covering

1,500,000 shares of Special Stock.
No

underwriter.

"

MANAGED Funds, Inc., St.
on

Jam

25

companies,

statement

Exchange

investment

dent of Franklin Cole

others..

on

registration statement with

Rudolph L. Weissman, Vice-Presi¬

of

Investors

Boston,

Sylvia

Porter,
the
"Post's" financial columnist, John
M. Sheffey of the National Asso¬
ciation

Second

DIVERSIFIED

issue.

articles

MASSACHUSETTS

the

of

Pennsylvania tax.

&

Co., and

v'pftftftft1

#
.m

Income

This

from

2,500,000

filed

with

a

the

Securities

Commission
shares

of

Louis,

registration
&

covering

capital

stock.

Underwriter is Slay ton 3c Co., Inc.

Fundamental Investors, Inc.

ffe; Manhattan Bond Fund, Inc.
-••?<

;

-1..

••

.

19,000 share¬
average invest¬

holders,

with

approximately $2,800.

of

Assets
on

Dec.

of

ago.

an

United

*.

Science

-

■

: ft

fund

by about

ment

/

vfi'■

ft; ft Diversified Preferred Stock Fund

Fund

31,

The

1951, was $11,523,708
with $4,552,692 a year
number

creased from

was

in

"High

$40,892,032

increased

4,382,691.

to

owned

including

16.5%

H-C7

be offered at the market through
Hamilton Management Corp., in¬

A few weeks

was

foreign
vania

that

announces

•

Fund

tal

about

Com¬

Jan. 21 covering 1,000,-

348, compared with 4,802,678.

that National Specu¬
lative Series has 29% of its assets
in rails and 39% in durable

goods,

In¬

Ham¬

vestment underwriter and adviser.
Axe

The total shares outstanding in
the three Funds aggregated
6,877,-

compared
an¬

&

ilton Management Corp. is under¬
writer and adviser,

industries

prefaced

"Periodic

vestment Plan" certificates.

durable

comment

Securities

the

i&fft

This

unit-

a

type investment company in Den¬

|fe£ Diversified Investment Fund

& Research

22

covering 25,000 shares of

standing

Corporation.

ft

Jan.

on

"registration statement with

a

mission
its

Fund

of

ex¬

an

ation (London)...

SECURITIES

are

and

Accountants

Associate at the Institute of Tax¬

year-end of 1950 to $53,324,645
at
year-end 1951, and the out¬

goods

to

Associate at the Institute

an

at

and

a

Marwick,

Peat,

Co.

&

will be five, ten and fifteen years
from today.
railroads

is

Morris

Mr.

English accountant and

with

was

chell

000

plan, the fund reports.
year,

Shares.

Knicker¬

of

Treasurer

Kidder, Exchange Commission on Jan. 21
also the a registration statement covering

holders of Mutual Fund of Boston
are

H. MORRIS has been

DESMOND

of

Interested

audience

stocks.

bonds, and 6.9% is uninvested. The
largest

funds department.

the

24 th.

uary

"Post," a daily
Commonwealth's
portfolio
is
newspaper,
devoted
a
made up of 320 individual securi¬ evening
ties with 64.0% in common stocks, special section entirely to mutual
funds in its Jan. 21
in

PEABODY Sc CO. has
the
appointment
of
George Washburn as uptown sales
manager of its New York mutual

announced

of. Chartered

women

The New

23.5%

N. Y.

PERSONAL PROGRESS

he is

Mutual Fund Notes

25,000.

over

Trusteed

KIDDER,

.

$72,266,012 on Dec. 31, 1951, as
compared with $48,397,326 at the

of

shares

•ftft" Diversified Common Stock Fund

in¬

872,944 to 1,879,001.

United Accumulative Fund's to¬

issues.

PROSPECTUSES

net

assets

$7,417,659

on

Dec.

31,

compared

AVAILABLE

ON

THESE

MUTUAL

FUNDS

1951,
with

......

$2,952,602 at the end of 1950.

During
Cry
J-

in

increased

their

records

three

nouncement

Funds.

Address

common

in cash.

production cautious and successful

further rise in

a

Accumulative Fund—amounted to

the

of National Securities

describing

Organization and the shares of your

your
ten

me

.

.

periods in order to give investors
a
comprehensive idea of what

chose

sion of armament
production now
projected through 1954, according
to Henry J.
Simonson, President

50 Congress Street, Boston 9, Mass.

Please send

to

.

in

performance

field,

pected to benefit from the expan¬

The Keystone

bonds and about 4%

America. He

be

time

of

PREFERRED STOCKS
.

stock

common

a

of

one

81%
157%

record will be duplicated in the
future, there is also no guarantee

(Series B1-B2-B5-B4)

'

with

68%

59%
138%

Fundamental notes that, although
there' is no guarantee that this

BONDS

•

in

on

in preferred, 24%

defense

Fund,
United Science Fund, and United

the

FUNDS

92%

Fundamental,
fund

Years

207%

16% >

income

Last 15

Years

33%

Living____

standing

their capital

Years

Net asset value.
Cost of

Investment

;>•/

Last 10

Last 5

Fundamental's

investing

portfolio

58%

was

14%

women

bonds, 2.4% in U. S. Government

INCOME

INVESTMENT

31

commented: "In 1952 the national

and

Participation

$1.07. The

women, discussed mutual funds

during the

investor who

an

purchased
Fundamental's shares five, ten and
fifteen years ago, here are the

Certificates of

capital gains distri¬

a

1951,

since

stock

prices do not move parallel to the

Established 1894

K

of

This discuss

distribution

share from

a

profits

after

making
Mr.
Fox-Martin, appearing on
total capital improvement $1.60 a
Barbara Wells' half-hour program
share or 12.6% during the year.
for

ft.

stated.

staring

tor's newest study on

or

ship

One Wall Street

securities.

were $2,034,520 on
31, 1951, equal to $14.84 per

Dec.

stocks,

Shares

035,503 at the end of 1950.

75

government

Available : from
Funds,
527

1952.

Fifth Avenue, New York 17,

.ft.'

re¬

dated

eral years ago.

Dec.

REPORTS

COMMONWEALTH
FIGURES
a

and

bution

.

For

cash

8,

has

Fund

prospectus

TOTAL NET assets of the Mutual

stocks

$22,472,260, the highest for
any
year-end in the company's
history. This compares with $19,-

security

shares

stocks and 21% was in

common

were

of

191,506

on

Approximately 79% of net assets
of Dec. 31, 1951, was invested

reports net assets at Dec. 31, 1951,

value

with

compared

productive capacity of to write for more information, on
American
industry.
Commodity mutual funds.
and practical knowledge of "eco¬
prices may rise again, influenced
^.. Appearing
with" Mr. Fox-Mar¬
nomics, world politics, industrial
by further wage increases and ex¬ tin
on
the program was Nancy
arid agricultural operations, in¬
pected budgetary deficits.
Olsen, movie actress.
ternational trade, geography, and
There is a good possibility that
even psychology."
income tax rates will not again
Sixteen percent of the stock¬
The basis for practical training
be revised upward this

Nation-Wide
=

as

in

share

stocks 67%.

common

OPEN-END

Asso¬

share

a

238,012 out¬

on

shares,

outstanding at the end of 1950.

bonds

sity of Minnesota student chapter
of

share

a

Fund of Boston
balance

current

cash

and

$13.27

during

types of securities held is:

Services,

before the

talk

a

of

holdings

Products.

pressed by Ralph J. Faville, sales-

York 5, N- X*

120 Broadway, New

responsibility as important as the
training of skilled scientists in
other technological fields.
That
was
the
viewpoint ex¬

in

Decreases

December, 1951, included the fol¬
lowing
stocks:
Associated
Dry
Goods,
Bucyrus - Erie,
Chicago
Pneumatic
Tool, Hecla Mining,
Republic
Steel
and
Universal

educational

an

Dec. 31, last, were equal

on

$12.25

Net

increase of 34J/2%.

an

Trust

new

a

American

standing

Copper, Ward Baking and
United Stores $4.20 2nd preferred.

Lexington
leased

1951, amounted to $3,158,894 com¬

to

Miami

31,

pared with $2,346,167 on Dec. 31,

1950,

Investment

Dec.

on

Jan.

assets

An

Street In¬

Wall

of

Corporation

vesting

State




....

D 29

tions to
were

December, 1951, addi¬
the following stock issues

made:

Bliss

&

Laughlin,

Borg-Warner, Granite City Steel,

outstanding
totaled
a

year

shares

615,656
earlier.

as

of

this

The

fund

against 269,702

48 Wall Street

Hugh w. Long

New York 5

and

Company

Incorporated.
,vNew York

Chicago

Los Angeles

Volume 175

Number 5086

.

.

.

The Commercial and Financial Chronicle

(499)

virtues

The

—

they may have, are prospect will understand just
decidedly hard to read! Other what you can do for him.

firms

MUTUAL FUND
RETAILER

readable

use a

These

typeface,

but clutter up the area around
the letterhead with other in¬

cause

formation

are

a

By BENTON G. CARR

that it presents
confused first appearance.

doubt have

In the matter of

terheads.

so

readable

a

Last

week

you

formulated

we

working rule
phases of

one

flects
or

which aoplies to all

d i

legibility,

er."

Make

gins,

your letter
by using ample
short paragraphs

short

sentences.

to

read

easy

name

white

and

Make

your

two

.

let¬

dealer

firm verb.

with sufficient "air"

in

space

that

action

or

between the

the

firm

Verbs

action and

mean

interest.

arouses

ought to include the
"you." The basic direc¬

word

out.

tion

of

all

advertising—and

Remember that your pros¬
presentation logical and sim¬
your letterhead is a form of
ple to understand. Make it pect is going to glance at your advertising—is an appeal to
easy for the prospect to reply letterhead for a split-second, the reader's self-interest. And
to

by giving him a post¬ and in that moment your firm
paid pre-addressed business name must be so legible, your
reply envelope and a request letterhead so carefully de¬
card or slip which clearly in¬
signed that his mind will
dicates what he is to do and
grasp your name and retain it.

vices.

what he

You

you

is

receive.

to

The

letterhead,

sales-work,

saving

'

/

our

be

can

labor-

little

less

or

little

a

more

11994450676—.

those

the

are

legend

your
want

offer

to

elements

slogan.
that you

or

say

impartial advice

formation

.

de¬

mutual

or

or

in¬

counselling

on

funds, that it is with¬

many

firms

in

It's

New

York

don't

it all in ten words

terhead

little

a

seeing

you.

be

make your

work
easier, then labor to
can

saved

in spending
planning a good

'

hours

tion, there should be for your
mutual funds'

And if you are to see thou¬
sands of people, and your let¬

*

your

self-interest

out obligation; you want to
surprising how use a verb and the word
of the large retailing "you"; and you want to say

your

a

.

.

number.

in

device.

hesitant about

;

of

of

a

legend explaining briefly
function

tailer,
your

few
is

neither,

in
or

other.
-

.

Some

firms

"mustiness"

less.

or

classic

sign attempt to give a con¬
servative impression by using
an
"Old
English" or script
typeface, which, despite the

Total 103

Funds*

$1,591,515

$942,087

$596,027

$3,129,629

727.679

581,187

2,530,563

489,663

1,973.547

701,223

389,238

415,301

1,505,762

652,772
617,220

RECTOR

NEW

Prospectus

YORK

may

the above

or

STREET

6,

N.

Y.

be obtained from
local dealer.




care

of by the Committee.

Joseph R. Dorsey, Merrill Lynch, Pierce, Fenner & Beane,
Chairman; James G. Mundy, Stroud & Company, Inc., Co-Chairpy
man; Charles J. Brennan, Blyth & Co., Inc., head table; John R.
Hunt, Stroud & Company, Inc., member tickets; John E. Knob,
Drexel & Co., guest tickets; Samuel M. Kenney, Yarnall & Co.,
table reservations; Charles L. Wallingford, H. M. Byllesby & Co.,
Inc., hotel reservations; George J. Muller, Janney & Co., prizes;
J.
Gentry Daggy, H. M. Byllesby & Co., publicity; William
Doerr, Blair, Rollins & Co., Inc., attendance; Rubin Hardy, The
First Boston Corp., Robert N. Green, J. Arthur Warner & Co., Inc.,
Lester C. Brown, Charles A. Taggart & Co., and Joseph Cummings,
Brooks

&

Co., door.

Members

of the Reception Committee are Thomas J. Love,
George E. Snyder & Co.; Albert Fenstermacher, M. M. Freeman
& Co., and Wallace H. Runyan, Hemphill, Noyes, Graham, Parsons

& Co.

'

,

*

if.

All members of the ITA who

1

■

*

*

can

bowl

are

reminded that the

Security Traders Association of New York has invited ITA to send
four teams (20 men) as their guests in a tournament Thursday,
April 17, the eve of the annual STANY dinner. . Call Charles L.

Wallingford, H. M. Byllesby & Co., Inc.
SEATTLE SECURITY TRADERS ASSOCIATION

—a,

^

,

m
Paul

G. Johnson

H.

Clyde

Berryman

William

Sidney J. Sanders

Oper

following officers will serve the Seattle
the current year, 1952:

Security Traders

Association for
26 Bond &

Total 103

Funds

Specialty Funds

Funds*

344,961

273,778

1,110,432

388,188

282,850

267,613

938,651

President—Paul

Johnson, Blyth & Co.

Vice-President—H.

Clyde

Berryman, Merrill

Lynch, Pierce,

Fenner & Beane.

842,198

Secretary—William Oper, Walston, Hoffman &

722,118

Treasurer—Sidney Sanders, Foster &

672,543

Dec. 31, 1946—

237,106

142,661

Dec. 31, 1945

213,913

121,638

*

200,454

580,221

162,324

497,875

32 Balanced

26 Bond &

Funds

Specialty Funds

$320,615

$223,436

$130,559

216,753

181.222

120,836

168.049

129,046

88,431

109,247

83,269

76,271

273,787

87,415

81,484

98,025

266,924

—

—

:

_

(000's omitted)

45 Common

,

Total 103
,,

S674.610

*
-y'

—

—

518,811

385.526

83,591

186.082

370,353

66,786

5.3,137

'166,436

292,359

$53,368

$128,061

$321,550

111,494

47,012

122,222

280.728

35,569

22.518

49,500

36,239

19,467

71.465

107,587
127,171

24,674

14,688

49.370

88.732

44,243

19,123

35,299

14,958

80,241
59,721

109,978

143,612

'1

—

degree,

estimates

funds

however,

$182,494

$168,068

$2,498

$353,060

233.083
277.939

105,259

1134,210

—1,886

182,480

106.528

38,931

73,003

68,302

4.806

Points

.

Krassowich, Manson_
Bean
(Capt.), Lax, H. Frankel, Werkmeister, Reid
Goodman (Capt.), Weissman, Farrell, Valentine, Smith
Mewing (Capt.), G. Montanye, M. Meyer, LaPato, Klein___
Donadio (Capt.), Rappa, O'Connor, Whiting, Demaye—
Krisam
(Capt.), Gavin, Gannon, Jacobs, Murphy.—
Leone (Capt.), Tisch, O'Marra, Nieman, Bradley
Serlen
(Capt.), Gold Krumholz, Young, Gersten.
Hunter (Capt.), Craig, Fredericks, Weseman, Lytle
Burian (Capt.), Siepser, Gronick, Growney, Kaiser.
—
H. Meyer (Capt.), Swenson, A. Frankel, Wechsler, MurphyGreenherg (Capt.), Siegel, Cohen, Strauss, Voccoli.
—

Krisam

Lytle
CITY

__221

...

204

200

62,741

66.796

48,655

56,437

54.463

105,841

226.741

TWIN

31,487

44.179

106,715

182,381

City Security Traders Association announces that
its annual winter party will be held at the Normandy Hotel, Min¬
neapolis, on Thursday, Feb. 14. Cocktails will be served at 4.30
p.m. to be followed by dinner at 6:30 p.m.
Tickets are $a per

included
the

may

figures

for

vary

from

different

year

dates

to
are

Except
comparable.

year.

to

approximate, exact totals having been available in some cases,
figures of other than year-end dates being used in other * cases.

National

Walt
Vin

48
45 y2
4o
4o
49y2
38
36

Julie Bean

232

Growney

50

5 Point Club

Club

Swenson

Mike

64
55
52
52

146,616
178,192

are

or

SOURCE:

of

OF NEW YORK

Traders

(Capt.), Ghegan, R. Montanye,

200

number

minor

tFigures

TEAM
Kumm

Carl

Sales

1951

*The

Security

Funds*

100,680

$138,121

Goodwin.

Marshall.

Association of New York (STANY)
Bowling League standing as of Jan. 17, 1952 are as follows:

Stock Funds

1946—

a

SECURITY TRADERS ASSOCIATION
The

1945

19

Tipping will be taken

244,610

i.

and

paid for prior to Feb. 11.

1,284,185

491,693

PURCHASES

at

room.

unless arranged

240,671

1947

LTD.

guaranteed

272,262

1943

HARE'S

be

170,495

1S49

by

not

can

195,569

Net

Dittributed

confine this activity to this

tables

231,328

1948

,

Reserved

338,608

AND

served

Gaming facilities will be available in the Betsy Ross Room.
We request you

257,438

1950——

Funds)

purchased during the dinner and

285,878

1951—.

of

be

may

1.311.108

1

Repurchases

and Bond Group
Shares

Drinks

use

close

table.

Dec. 31, 1949-

1945

.

in the Betsy Ross Room for the

of members and guests.
This bar will open at 5:30, p.m.,
during dinner and re-open after dinner to closing.

Dec. 31, 1947

r

Ltd.

1,409.165

409,701

380,436

1

32 Balanced

Stock Funds

1943

Shares,

427,158

284,187

SHAREHOLDERSf

____

1952;

p.m.

Dec. 31, 1948—

1947—

Institutional

329,235

245,368

-

45 Common

fine floor show.

21,

sharp. The Committee has
Price for members $8.50; price for

The hotel will place a bar

The
OF

7:30

!
26 Bond &

658,381

at

1945-1951

540,932

1949

Investment

FUNDS,

942,952

1950

(Mutual

MUTUAL

Specialty Funds

Dec. 31, 1946--!

a

Thursday, Feb.

Dinner, to be held

served

Propo¬

Funds

1951

Stock

Your

1,221,697

Sales

Shares

work—"What's

(000's omitted)

Dec. 31, 1945

arranged

be

sition?"

•

SALES

Insurance Group

direct-mail

-

Dec. 31, 1950

Bank Group Shares

of

VI Balanced

Dec. 31, 1951-

Aviation Group Shares

most

aspect

Dec. 31, 1949

NUMBER

de¬

the

cult

45 Common

31, 1948—___

will

diffi¬

discuss

Stock Funds

Dec. 31, 1947——_—_

*

re¬

ON

Mid-Winter

dinner

next column for you,

our

we'll

Dec. 31, 1950

Dec.

confuse

who

with

STATISTICS

NET ASSETS

Dec. 31, 1951

good -taste, or
one without the

In

your

mutual fund

a

Annual

stance.

a

so that, by looking at
letterhead alone, your

TOTALS

First, there are the matters
of legibility and good taste.
A letterhead can be both legand

as

VITAL

one

quite apparent.

ible

letters

sales

As¬

sociation of Philadelphia announces with pleasure, the reservation
of the ballroom of the Benjamin Franklin Hotel for the 28th

Members of the Mid-Winter Dinner Committee are:

So
for

"you" is the most

During the
bother to list their telephone
The
total effect you
course
of a year, thousands
are
Applying the rule, striving for, after planning
of people will see it and sub¬ number.
"Make it easy," it's quite ap¬ the details with
your printer,
consciously form an impres¬
sion of your company from it parent that you ought to give is a legible, crisp firm name,
prospect
a
telephone surrounded by, but apart
alone—since it will be about your
all they will have to go by. number to call; it isn't easier from, necessary information
for him to look for it in the and the
Their opinion won't be a very
legend, all designed
to
give
an
impression
of
strong one, one way or the telephone book.
In addition to this informa¬ worth,
reliability and sub¬
other, but they will either be
a

\

basic purpose

word

obvious

dis¬ letterhead is, of course, to pro¬
cussion on mechanical details, vide information
your
let's apply this simple rule to firm's
name,
address,' tele¬
phone
number,
city,
zone
your letterhead.
Now, in finishing

;

The

the

OF PHILADELPHIA

The Arrangements Committee of the Investment Traders

guests $13.50.

It also

name

THE INVESTMENT TRADERS ASSOCIATION

all

for

To
give
your
legend
"punch," it ought to have a

infor¬

Notes;

.

like.

necessary
around
your

stands

on

"impartial ad¬
mutual funds," or

.

NSTA

no

prestige leading mutual funds" and the

the

so

You

them

seen

all

on

write.

"authorized

The second consideration is

mar¬

to

easy

vice

re¬

substance.

mail

ct

r e

typeface which

element of

an

work— placing
"Make it easy for your read¬ mation

your

legends are hard to
by; don't suppose be¬
they are short that they

come

then, the first consideration is

L

for

31

Association

of

Investment Companies.

The

person;

SECURITY

TRADERS ASSOCIATION

Twin

guests

are

Reservations

welcome.
be made

may

Williams Company, or J.

with

Kermit

Ries Bambenek, J. M.

Sorum, AllisonDain & Company.

32

The Commercial and Financial Chronicle

(500)

from

HARPER

JOHN

business in

Industry the outlook for

In the Petroleum

bright. Expansion of all branches continues to
meet the steady increase in both civilian and military
demand. Shortages of steel for new wells, pipe lines and
refineries have been the main con¬

1952

cern
on

is

about

have brought

in

increase

a

entail

distillates, than is developing for any
other major petroleum product.
With modern technique, the refiner
can adjust his manufacturing process

give

few months

distillates from the barrel of

crude.

But

same

in

of crude,

order

to

realize

distribution, but

Engineering Corporation

John

American business doing all the work and getting out
production in spite of being tbld at every turn what we

Harper

.

costs and to seek

can't do—the government will skim
off 70% of the profits.

Indications

seem

to

point to

out considerable financial loss.

steel, which in turn will lead to
higher
prices
for the
consumer.
Apparently the working man is not
ready to learn that higher wages
without a corresponding increase in
production efficiency per man can
only lead to constantly increasing
living costs.
Our government is leading us down
the road to
Socialism, aided and

The supply and pricing of petroleum products are so
interrelated that government control by separate agen¬
cies tends to eliminate the inherent flexibility of the

industry.
The widespread gasoline price war during the past 12
months, when reviewed in conjunction with the present
frenzied appeals for light fuel oil price increases along
the upper Atlantic Coast, are an indication that under a
free economy there might be a solution without either
gouging the public or subsidizing the oil companies.
In common with most industries, the oil business is
also facing the inflationary spiral. As the cost of living
index goes up, wages climb automatically.
Labor and
management are both disgusted at the decline in value

versal

of

this

everybody in industry expects to be
fixed allowance

before

cycle is the direst

today.

5

.

he

need

A

dies.

of the

on
re¬

country

work

While government regulation will

undoubtedly handi¬

the petroleum industry this year and may even result
shortages of product, the large inte¬
grated companies are in a healthy condition and are able
cap

occasional spot

$25—or

we

of

terms

choice—do

problems that may arise within the
The prospects are indeed good for a profitable

,

EUGENE HOLLAND

From

The hardboard

wide-spread

use

a

fathers

Hardboards will continue in 1952 to be an important
factor in the many industries using them as a basic
material.

we

If

we

L.

D.

industry, due to the varied and
of its products, can be expected to con¬
tinue its growth. Economists predict
another year of "good business" in
most fields.
F. W. Dodge Corpora¬
tion anticipates a decline of 17% in
overall building. This cutback will

craft

months

we must get back to a
Deal, Socialized Medicine,

use,

fought for? •
a purely business standpoint, our industry
(air¬
would appear to have a busy year
Backlogs have been increasing steadily for 18
and

are

still

going higher.

As tooling is com¬

pleted, production is finally on the increase also.
We have a definite shortage of skilled and semi-skilled
workers in Southern California in categories such as
machinists, tool and die makers, and sheet metal workers.
Although many aircraft companies have instituted train¬
ing courses, the shortage is not expected to be relieved
during 1952.
■,,7.;,'7.
\ .a.:\
.

have

little

effect

on

the

hardboard

industry which is so geared that its
products can be channeled into the
industries most

summation—I

see

flation and

more

1952

as

another year of spend

elect, tax and tax, with more in¬

government controls. In the background

requiring them.
Defense requirements for military
and
industrial housing, so far as
Masonite Corporation is concerned,
are
expected to continue at their
present or higher levels as the arma¬

the Russian Bear licks his chops and wonders how long
it will be before our house of cards collapses completely.

ment program moves

This part of the Mohawk Valley is practically dom¬
inated by the carpet and rug industry. We have the

forward at

ac¬

celerated speed. This should be true
also of die stock, a product we devel¬

Eugene Holland

oped to meet the demand for a light
ecc
weight, durable and economical
panel material for use
in fabricating sheet metal.
High levels of farm income will encourage farmers to
invest in permanent farm structures that
at moderate cost.

In

and spend, elect and

can

and
high
grade merchandise. For the last half
of 1951 this business has been only
fairly good. Due to the high cost of

off in

reason.

sales.

Now substitutes

are

about greater usage of our hardboards in the furniture

With the tremendous housing indus¬

While cutbacks have been indicated in

the

try going

automobile

industiy, a large user; the trailer industry,
from all indications, will-absorb more and more hardboards for interior finish of mobile-Jiving quarters, the
demand for which has risen sharply.With

curtailment in new building, construction, the
hardboard industry can anticipate channeling more feet
of its products into remodeling projects, both commer¬
a

cial and residential.

The market potential

in unfinished

attics, for example, is tremendous. .The marked

trend
toward flush panel doors and dry wall construction in
is another factor which promises to
keep oiir

homes

manufacturing facilities operating at capacity.
Versatility pf Masonite hardboards has made them
important in scores of industries. Among them are the
following: Toys and novelties, railroad freight and pas¬
senger cars, busses, office and household furniture, radio
<


•}''


*

for

better

on

present regulatory acts, a few of
forms will have been made.
The

in

tragic if

we

It wouldhad to have less than the best in rail

transportaion simply because the railroads have been*
kept from earning enough to attract the money needed to •
provide the tools to do the job.
.

no

shut-downs

among

are

Fortunately

there

Schenectady and there
the General Electric Co; and the American Locomo¬

„

.

R. T. KEARNEY

Sacramento
With

;;

;

Northern

Railway

the continued increase

in armament production
we believe that many of the railroads will enjoy high
gross revenues in 1952.
7
v
.

„

Should the armistice in Korea become a reality, there
will no doubt be a decrease in military shipments to the
West Coast ports,

thus reducing earnings of those roads
handling^ war materials.
; -V

which have been

...

If the railroads, around which our peacetime economy
and national security are built, are to continue to serve
the public efficiently

a&d^adequktely, they,

a

sustained

earning

must have

*

sufficient, to restore investor 7

power

confidence in the railway industfk. This is necessary in
order that there will be; a continuous supply of* capital
for

the

purchase of the Imost,efficient

devices.;,..
*

equipment and

,

,

;

'

'

*

-

'

•*

t*

° • •

'•

-

*'? !

.*

" V

';

t,'1

* ,4

v

'

W. C.

President and: General Manager, MinneapoIis-MoHne Co.
The demand for

farmjma.chioeryrI think is going to be ^

good for some time yet, at least up until sometime this fall:
There are several important .economic.factors;"inv01ved:

(1)

The population

o4:i^^y<^147is.--''increasing:' .at"

>"

a

very fast' pace^-in the United States
alone at the- rate of some 3 -million
a
:

*

year.

.

This

additional; population

....

must be^-fed ;
^hd. clothed.A? thereJ
has been no;icommensurate iricrease
7
in arabie land, the only way to cvercome

-

this

-

situation

is. to

produce

more

pepvd^f^^ through intensified*
farming;■■ Methods and to continue.
[; with

all over thb country the

these."

•

President and General Manager,

1952.

and teril^cloth
for the government so that employ¬
ment has been fairly good, but' the
pay envelpe has not been quite "as
full as in former years.
"
The Amsterdam Savings Bank has
Charles E. French
done well and there is a feeling that
1952 will be a better year. The mer¬
chants report discriminating buying but this follows
along with pay envelopes. There are a number of small
industries who anticipate a better year.
There, jhave

re¬

for the nation's industry and its armed forces.
be

expected this Will
business

the badly needed

industry can be depended on in these
times to perform the basic transportation job

tion pmgpams,' ;.
u

been- making blankets

have been few labor troubles.
To the east,of us 15. miles is

:

„

will

railroad

troubled

future looks good; These plants have

been

~

gent study of the whole field of regulation can result in
the correction of the many inequities now existing in the

to

be used and it is
make

.

Commission

Commerce

earnings and sound credit in order to as¬
jobs for its members, and if a serious and. intelli¬

wool, prices of carpets and rugs went
up and there was naturally a falling

Technological developments, promising improved fur¬
niture at no increase in cost may be expected to bring
industry.

sure

.

Mohawk Carpet Co. and the Bigelow-Sanford Co.
there are none better in the country in turning out

be built

immediately ahead.V,

Interstate

CHARLES E. FRENCH

President, Amsterdam Savings Bank, Amsterdam, N. Y.

Masonite hardboards should continue

to be attractive to the farni market for this

the

......

/a*

•;

have adequate

components)

ahead.

E. S. French

must increase also by at least a comparable

Corrupt Political Government, or do we
America—the kind of America our fore¬

free

rec¬

truth

mine the amount and timing of increases in rate levels,
if labor will come to the realization that railroads must

Fedderman

steps and get back on the
Regardless of what flowery

want the Fair

simple

permit
the judgment of the managers of the railroads to deter¬

our

sense.

choose to

may

Bureaucracy,
want

President, Masonite Corporation

economic

the

tion for the years

destroy the very class it

retrace

can

common

industry.

and successful year.

Failure to

ognize

amount, if the credit of the industry is to command any
respect at all, has brought us to a year of decision that
will chart the course of private enterprise in transporta¬

1952 is a year of vital decision to the Amer¬
people. We have arrived at the crossroads—where
do we go from here? We can continue on into oblivion
—where a loaf of bread costs $5 and a pound of butter
road

large extent, denied
by extremely unwise

a

regulatory policies.

The year

to meet most of the

to

are,

ice is sold

ican

.

be imperative, but the
accomplish these necessary

if costs of producing service
increase, the prices at which a serv-

voted it out.

and have

will

devices

that

claims to
help. The one ray of hope is the fact that apparently
enough people in Australia, New Zealand and England
have found from bitter experience that Socialism doesn't
Socialism will

production of more transporta¬
less plant and the
introduction of more labor saving

to the railroads

abetted by millions of perfectly good
Americans who are blind to the fact

that

The

tion service with

ends

an¬

a
break-through in the steel indus¬
try. This will mean higher prices for

a

portion of this gross into net.
The need for continually increased

funds to

other round of wage increases led by

then in poor supply. For patriotic
motives these orders were complied with, but not with¬
particular product,

as

basic difficulty of the industry—the
inability to convert an adequate pro¬

labor and materials continue to climb.

ernment

level of competitive markets.
.
During World War II, on many occasions, the govern¬
ment ordered refiners to run for maximum yield of some

dollar,

evidence that there will be any real

efficiency of the entire railroad plant

FEDDERMAN

D.

The year 1952 looks to me like another period of gov¬
controls and government interference.
With

the

he must revise the schedule

kind of

At this point, however, there is not much
improvement in the

roads in 1952.

will be intensified in 1952 as costs of

new

some

do not feel

'

President, Interstate

of prices of some of his products to
take care of the resultant change in his

of the

we

volume of traffic, record-breaking in some
with high gross revenues is in sight for the rail¬

large

expenditures in order to increase the
L.

profit from the barrel

overall

diversion of

some

away.

E.S.FRENCH

A

that this is probable.

somewhat greater yield of

a

middle

in

a

areas,

Briefly I would say that for the year 1952 there is
slight prospect for any reduction in gasoline consumption
regardless of any economic changes during the period.
Any change in the military situation might of course

greater current
for middle

to make
election

urally, these are uncerthin times and it is hard
predictions with the war and the Presidential

President, Boston and Maine Railroad,
Maine Central Railroad

President, Spur Distributing Co., Inc.

demand

the

about 2,000

people employed at good-wages, which is a help to the
people of Montgomery County. From all I can learn
there will be plenty of business for them in 1952. Nat¬

J. M. HOUGHLAND

impair normal indus¬

Thursday, January 31, 1952

From this section there are

tive Co. plants.

the demand.

but from now
government regula¬

try growth more and more.
'
As an example, domestic heating,
diesel
locomotives, and jet planes

a

displays, kitchen

in the past year,

the impact of

tion is going to

to

television cabinets, display and

of-sale

President, Harper Oil Co., Inc.
>!

traffic signs, pointcabinets, concrete forms, air¬
planes, and various places in the building industry.
As industries go, hardboard manufacturing is rela¬
tively new. Product acceptance by the public has grown
year after year.
On this solid foundation of approval,
the industry in 1952 can be expected to continue its
program of service to countless fabricators and build¬
ers, with consequent high levels of production to meet

and

6

page

.

.

After the Turn of the Year

Business and Finance Speaks
Continued

.

-

(2 )

arm^

...

Bpth defense plants sand": the4 *-**
forces> are rapidly draining..
,

farm$;7'Thpse
If who ^rejleft iotill the land will h^ve
to use/every iaboHsaying'.c^vjcepbsmanFK)Ayer; fn>m

W. C. Mac Farlane

to indicate that

our

sible,,.justi as is^done^in the: manu-. *
factoring business.
(3) Reports.: .thdt,;\ve%*eceivp:s§en$«.•
customers are in Excellent financial"

Economically andiinancially ,they. are no doubt
as well off today, if not better off. than any other groupt
of people in the world, 'atfd..are creating- fqpliiemselves
an excellent quality of farmfmanagement and .living,.
(4) Scarcity of critical materials; will permit us to
build only between .70 and^^Q^o^l^t^ear'^.
volume; on
position.

*

our

%

Volume 175

Number 5086

.

.

The Commercial and Financial Chronicle

.

33

(501)

basis and enable us to complete machines
inventories—which, together with several million
dollars of defense-business, should balance out our pro¬
a

tonnage

in

our

duction.

There

numerous statements out to the effect

are

that steel will become

finding

that to be

asked for 15%
materials

The Department of

so.

we

not

are

Agriculture

farm machinery this year than last

more

-—but the NPA in

plentiful shortTyrHBut

Washington cut back

allocation of

our

scrambling for farm imple¬
we may have to do some
"selling" to get the business. However, the need for
up-to-date labor-saving equipment exists, as does the
money to buy it with. Therefore, depending on the ma¬
terial situation and weather conditions, I believe the
there has been and

as

outlook for

business this year is relatively favorable.

our

to

remains

healthy.

elliott

expect to
also

good year unless the economy as a whole

We
throughout 1952.
increase in gross national product and
rise in price levels in the second half of

see

an

slight

a

the

year.-.There

be shortages in certain consumer
hard goods lines, but on the
whole, manufacturers will

to

ways

to turn out

may

still

slump

in

the

1947 is
the pro¬

affecting it seriously. For several years
declined, but iiqw seems to be levelling off and
are
looking for an increase from now on.
sold

we

87

large numbers in 1946 and early 1947
were
largely two-passenger planes
with limited range and

speed, which
little utility except
training planes. The planes which
are now
being made are largely four-

gave

them

very

planes,

passenger

important

years.

be obvious

commerce

potentials

and

reaily healthy

never

recovery

on

the basis of any conceivable spend¬
ing by the United States for rearma¬
ment

and .economic

Still,

there

are

worthy of comment at this time.
the

new

year

a

relief purposes.

bright

few

spots

The Latin American

with larger

holdings of

exchange and a favorable balance of trade reflect¬

ing in part both a strong demand and higher prices for
coffee, cotton, and other important export commodities.
Thus, they continue to represent an active major foreign
market.

OV*
East, Japan is regaining customers rapidly
its low cost production and an expanding merchant

In the Far

Further aided

by United States military expen¬
ditures, it is building up ample dollar reserves with
which to finance an increased flow of goods from our
country.
;
\
\ • The Philippines, now benefiting from new Marshall
Plan assistance and severe self-imposed import controls,

beginning to get on their feet again financially after
a long and trying period of post-war rehabilitation.
In
addition, the likely continuation of the present large
demand for copra and sugar will eventually place the
Philippines in a position to support a renewal of their
former heavy buying of a wide variety of merchandise

fly

which

carry

higher

at

the

United

Our economic

States.

cost

a

in

no

and,

so

close that

the contiued mutual exchange of commodities and serv¬
ices

on an ascending scale is to be anticipated.
Finally, trade with other countries continues to vary

widely, but, generally speaking, most of them are placing
emphasis on exports and are making every effort to hold
imports to a minimum particularly from the United
States.

-;

;•

%

,

Federal

and

after

Federal

1950 levels.

continue

will

into

have

managers

encroachment
taxes

short

a

somewhat

tax

reduced

from

1952.

Corporate

as

the
of

Government

must

be

of the airplane will
automobile, this is a
cannot successfully manu¬
use

the

has

allocated

to

the

small

into

will

effect

result.

lessen

to

the

pinch

of

higher costs on profits. Employee
suggestion systems and Work Sim¬

plification programs
of

the

courses

many

-

are

only

a

few

employee training
a major help in

that ...can be

products. This will have a favorable effect on sales in
1952, as it'did in the closing months of 1951.
\
One problem the industry faces at the moment is the
possibility of a material limitation order from NPA.
It is proposed, for example, that photographic manufac¬
turers in the third quarter of 1952 be limited to 35%
of the aluminum they consumed in the first half of 3950.
Such an order, if issued, would cause a marked drop in
total production. Many companies would find it difficult
to Till this gap with military production.
For this and other reasons, Bell & Howell has aggres¬
sively, sought government military business. Our present
government backlog (as of Jan. 1) of $14,000,000 will
enable us to considerably expand output in 1952.

Naturally,

the v photographic




industry

earn

Telephone System added 96,000 telephones
additions to their
1

gross

enough to enable them tb

General

subsidiaries,

which

Corp.

and

coast

program

to

the

is

expected

cannot

look

So

mine, there is

their

in
far

as

can

neces¬

deter¬

no

un-

Our

industry, in common with
others, is now confronted with
*the problem of a "squeeze" produced
by increases in manufacturing costs, expenses and taxes
against price ceilings, which for the most part are fixed.
This presents a serious challenge to management.
It
i

many

results from the impact of the armament program on the
civilian economy and therefore cannot be isolated from

the greater problems confronting our country
caused by the unsettled world conditions.

m.

j.

spiegel, jr.

President, Spiegel, Inc.
At

Spiegel, Inc.,

factory
It is

volume

sales

\

planning for 1952 has been based

our

the belief that the year can—and

on

in

the

will—produce satis¬

mail

order-chain

providing

our

aggressive policies
opinion that retail trade
of

which are

are

store

applied-

slow start

a

the year,

and that

-

]

below those in

sponding period

the

corre¬

of 1951, when there

sporadic "scare buying."
" ;
Beginning with the second quarter,
however, it should be possible to
match last year's sales since all indi¬
cations
point to full employment
during the year, and there will be
more disposable income.
An even more important factor will
was

the

M. J. Spiegel, Jr.

v■
restored' by

\

the

confidence

the

relatively stable price levels that have been main¬

the

of

consumer

has

the

been

Y'{y

other

this means aggressive

Donald

C.

been

narrowed

in

many

lines.

This

means

that

efficient, economical operations, sound management and

Power

cost control methods will be
necessary to maintain satis¬

which started im¬

factory profits during 1952.

roy

e.

tilles

President, Gotham Hosiery Company, Inc.
The
at

hosiery picture for 1952 looks good.

both

manufacturing and retail levels

Inventories

are

now

down

close to operating minimums.
and this factor alone should

000, and gross construction amounting to over $66,000,000
is budgeted for 1952.
"■■/A
A substantial part of the construction program since
1945 represents the conversion of manual exchanges to
dial operation. At the end of 1945 about 48% of the
System's telephones were dial operated and at Dec, 31,
1951,- about 65% of the System was on dial.. Further
conversions, involving approximately 50,000 telephones,
are scheduled for completion in 1952.
'
\
In view of the steady rise in wages and other costs,
including increased taxes, during and after the war, it

Prices will remain static, and may show some increases.
These upward revisions will
probably develop with the
improvement of business expected by the industry.

was

-

.

be

became obvious that rates for service would have to

increased

if the System's earnings

were

to be high

eral market.

generally clean,
materially bolster the gen- f
are

..Vv:/

Production schedules will

"■

!

,y""'

demand, picking up rapidly
v

Stocks

undoubtedly keep
as

pace with
1952 gets under way.

National brands will continue to feature fashion

as

a

selling attraction.
Stores

accomplish satisfactory results in 1952 and
increase their hosiery sales by
concentrating on better
selling methods, and by promotion of national brand*.
They will thus emphasize the traditional markup and
can

turnover results that

can

be expected of a good

hosiery

operation.

additional capital necessary for
the large expansion program ahead. The various System
companies therefore mapped out a program to obtain
higher rales and since 1946 they have received increases

The potential consumption of
nylons should show in¬
creases for 1952.
Marked increases in population over

totaling $21,910,000 on an annual basis. Of this amount,
$8,836,000 was obtained in 1951, and $556,000 to date in
1952. Other applications are now pending and still oth¬

for

enough

ers

to

attract the

will be filed as the need arises.

>

Charles F. Robbins

increased from $111,635,000 at Dec. '31, 1945,
to an estimated $316,900,000 at Dec. 31, 1951. Today the
System's total assets are stated at more than $370,000,-

soon

*

production

we

excessive or
wieldy inventory accumulation.

have

a

lower

were

hand, goods should be plentiful, and
merchandising will be required to
move them, since
competition will be lively.
During the price adjustment period, profit margins

operate

continua¬

revisions

sary

schedules.

On

to

was a

1950

manufacturers have made .the

tained in recent months.

its

in 18
coast, comprise
the largest independent (non-Bell)
telephone organization in the United
from

states

that those of

mood of the buying public,
psychologically, this should be a
"buying" mood. Price adjustments
have taken place in many
lines, and

1951.

Telephone

dealers

larger at the
1950, it should be

and

by the parent company and its
in

both

purchases to existing inventories and

be

ex¬

profits. In all, a total of
in new securities was

pand out of

of

were

Dealers generally have adjusted their

ably fall

Corporation

plant in excess of $63,000,000. This
required large amounts of new capi¬
tal, since telephone companies, like
other utilities, are not permitted to

plant

reducing controllable costs.
The
photographic
industry has
C. H. Percy
made a united drive against high
taxes.
During 1951, we received a
..v •= -V-"; •*=
long -awaited reduction in excise taxes on photographic

.

President, General Telephone

Although the telephone industry is now over 75 years
old, it is still suffering from growing pains.
During the year just ended, telephone subsidiaries in
made

inventories

sales for the first quarter will prob¬

c. power

availability of materials, manpower and capital,
to continue unabated through 1952. Since
V-J Day, the operating companies of the System' have
added 710,000 telephones through internal growth and
acquisition, an increase of 103%. To do this telephone

and growth po¬
Many, internal
:.cost saving programs have been put
tential

donald

goods

same or

1951.

than they should have been in rela¬
tion to the current volume of salesr

after the first

mediately following World War II and which, subject

.economic strength

While

in general will be off to

General

of the athletic

and manufacturers

the airplane is best fitted.

tion of

stopped

exceed that of

industry,

Expansion in 1951

serious impairment of our

volume of sales

industry should be about the

approximately equal to bus
great saving of time and effort. Many

States.

recognized that the
of
higher costs and

profits

on

or

income

It is expected that the favorable sales trend

participation in sports in 1952 will

profitable business for the next year. In the meanwhile,
we are making the shift from the
"training era" to the
"transportation era," which is the one thing for which

subsidiaries

r-;President, Bell & Howell Company

belief that

our

in money

The combined business has caused them to increase their
number of employees and Is
going to furnish them a

and

robbins

If this proves to be the'case,
ultimate consumption of athletic goods will equal or ex¬
ceed that of the past year.
Consequently, the physical

plane industry material to build 3,500 airplanes. In addi¬
tion, all of the companies are doing sub-contracting for
the larger companies, which produce the
military planes.

sold

"Photographic manufacturers during 1951 enjoyed a
year of peak sales, but found their earnings both before

It is

for other trips.

healthy situation. A company
airplanes in too small a volume and when a
Aarge number of companies are trying to share this busi¬
ness, none of them can be especially healthy.
The

f.

be fully as great as in 1951.

more

facture

$61,030,000

c. h. percy

charles

end of 1951 than in

use

wa^

President, A. G. Spalding & Bros., Inc.

noted

inasmuch

stock

common

One kind of transportation is best
for certain trips and another one is

rival the

way

the

almosT*evexy installation is accompanied by a new
application, and that the telephone industry will con¬
tinue to suffer
growing pains for some years to come.

cross¬

fares, but with a
such trips are being made every day and our
job is to
educate the pubilc to use airplanes for such
trips.
The number of companies making light airplanes has
shrunk

for

the average number of shares

on

outstanding during the period compared with $2.60 per
share for the preceding 12 months.
System companies currently have about 75,000 unfilled
applications for service, a decrease of only 6,000 since

hours, and return home in time for
dinner at

the

relationship with Canada is

share

speeds.

are

from

available

per

The small per¬
airplane excells in round trips
from 150 to 300 miles. A party of four
can
start out in the morning, go to
their destination, spend five or six

W. T. Piper

in inter¬

can

income

equal to $3.05

sonal

national channels remains far below

existing
stage a

solidated

country trips.

best

longer term development.

The volume of

and

shares out-,

common

For the 12 months ended Nov. 30, 1951, con¬

as

everyone

for its

increase in the number of

standing.

in such

This gives them real value for

over

stantial

duction

that
political unrest
throughout a large part of the world
continues
to
govern
the trend of
foreign trade and to inhibit efforts

marine.

industry of

The planes which

an

rates for service have resulted in improved
share earnings despite increased taxes and a sub¬

that

gasoline

to

with

aircraft

in which The Bank of California has

At the outset it should

start

light

Higher
per

Jhe end of 1950 despite the installation of 96,000 telephoney during this period. It would seem, therefore,

specialized and played

part for

dollar

*•••.

President, Piper Aircraft Corporation
The

confining my observations on business
prospects to the field of foreign trade. This seems partic¬
ularly appropriate in view of the constantly increasing
interest in the subject and its far-reaching effect on our
internal economy. Also, it is a field

countries

consumer

w. t. piper

Francisco, California

McAllister

continue

•

This year I am

Elliott

will

and

enough product to meet the*bulk of

President, The Bank of California
San

scafce-metals

conserve

demand.

we

McAllister

a

There is every indication that business in
general will
continue at
satisfactory levels

iind

by 20 to 25%!

There may not be as much

ments

forward

the past 15 years are now
taking effect on
tion rate of nylons, together with the

sheer

15-denier

the consump¬
important demand
stockings, which continues to in¬

crease.

All in all, 1952 looks as though it will be a really
well-balanced year for the nylon hosiery industry.

Financial Chronicle

The Commercial and

34

.

Thursday, January 31, 1952

.

.

(502)

ity

quite likely that both Continued jrorn jirst page
will manage to make
new
highs, a condition that
will be properly exploited by
market forecasters, if, as and
It is

tomorrow s

Markets

when

Walter

will

bring in more buyers and
"new

prosperity"
easily start all over again.

can

a

By WALTER WHYTE =

The

continuing

up move

But

though I

the fore¬

see

prices is slowly ac¬ going as not unlikely, I can¬
not help
but also note less
complishing a changeover in
cheerful things, that for the
the majority thinking to the
time being, have been pushed
point that a continuation of
market

an

uptrend is now being re¬
unanimity.

ceived almost with

Such

public

in

switch

a

the fact that I

of

aware

are

advised

❖

«

*

Readers of this column

aside.

buying

few weeks

a

general temper

ago when the
of the market

pointed to any¬

psychology is always gratify¬
thing but optimism. Now that
ing to see. It makes commis¬
they're up, it is time to start
sion houses more cheerful and
thinking of grabbing some
puts smiles
on
customers'
profits. Of course taxes will
faces.
I
hate
to
throw
a

have to be considered. But if
damper on such good spirits.
you can see your way clear,
The fact is, however, that

or
at
least agree mentally,
everybody agrees that that
you will shortly see a set¬
the green lights are up perma¬
back and be prepared for it,
nently that's the time to start
you'll be that much happier.
peering around the bend for
if
if
if
the inevitable red light;
or
The foregoing doesn't mean
maybe just a yellow one.

when

being pecked out,

As this is

the Dow Industrials have pen¬

and are
From the

etrated their old tops
at

now

highs.

new

they look at this writing
they will probably close at a
new high.
On the other hand,
the rails are still some three

around

stocks will turn

that

if

*

*

prices

They seldom
hazard an opinion that
will continue to ad¬

vance

for another week or so

just like that.
I'll

do.

there's

before

way

if

oils

you've

some

nice paper

hold

you

Coast Exchanges

Rj Cr\

Established

V^U*

OC

York

Stock

Curb

Exchange

to

Principal

Francisco—Santa

San

Joins Waddell & Reed

has

&

Waddell

Per

Hooker

-(Special

Rosa

187.50

......@90

Mar. 29

575.00

Sperry Corp.., @32
Jun. 2
Cities Service@1091/s Mar. 29

137.50
387.50

Illinois

175.00

Gulf

187.50

Co..@81

Apr. 21

Radio..@69

Feb. 23

Steel...@50%Mar. 13

100.00

Chrysler
@67% Jun. 23
U. S. Steel...@40%Feb. 23

287.50
87.50

Mons. Chem..

350.00

.@99% Apr. 21

Explanatory

was

glad to

is that I come out

upshot

by a different route at the same
point at which I emerged last year.
That

is

to

banking is a less
for
employing

say,

field

attractive

capital than it should be. Public
utilities are somewhat better, in¬
When I

dustrials much better.

marked

ings

year ago

a

low,

too

were

that bank

re¬

earn¬
one

some

asked: "What is the proper return
for

Riskless?

riskless business?"

a

If it is

Surely the observer jests.
riskless

as

visors

all that what super¬

as

about capital-deposit
risk asset ratios can be

say

ratios and

nothing more than
cantation.

I

kind of in¬
believe that.

a

not

do

that

Yet it does seem to me

visors

emphasis

Along with

much.

too

the

concentrating

be

may

super¬

capital, might not emphasis with
equal reason be placed on earning
power?
Where there is earning

follows. With
low earning power, finding ade¬
quate capital, as we have good
the

power

to

reason

capital

know,, oftentimes offers

it

If

possible to 'restore

proves

to

Calls Brokers & Dealers
Inc.

Broadway, N, Y. 4. Tel. BQ 9-8470

again.
is

tim

decides

sometimes is

accept

the

influence

in

the

at

I

beginning."
"
unfortunately unable to

am

while the holder of

a

say

217

The Financial

remedly entirely that condition
which I spoke to you last
year.
In other words, banks con¬
tinued

than

worth

be

to

alive.

We

dead

more

count

cannot

the series of liquidations of

that

took

those

voluntary liquidations was
permit speculators to reap the

ket

and

and

market

interest

oblique

Actually,

mergers.

in

merger

to

value
of

tims.

Occasionally

inhere

in

stocks

book

vic¬

their

of

voluntary

the

deter

didn't

That

the speculators.
in

the

problem

But there

State.

York

in

is

New

point

a

similarity in the two situations
the

that

ture

Question of Mergers

of

character

banking

our

and

struc¬

system

are

that extent by
speculative forces.
It is

shaped

purely

terest.

to me that it

occurs

useful

if

should

I

might be

make

few

a

The

actions

the holder of the special block

often

stock

leave

no

other

of

of

banks

Marion

the

Banking

the

continuing

to The Financial Chronicle)

FRANCISCO, Calif.—Carl
the staff of

519

-

Cali¬

recently

been with Mason Brothers.

reduction

number of banks.

banks

in

the

Liquidation of

decades

two

attitude in

our

Department toward

ago

was

usu¬

ally involuntary because the value
the

too,

voluntary.

tions'
a

of

to

but

they

They
the
sell

disappeared.

liquidations

are

take

out

strictly

are

decision

place
of

their

of
be¬

institu¬

better.

Merger

or

is hardly

appropriate word for

some

of

these voluntary liquidations.
But
whatever they are called they are
and

changing

the

structure

of

but

times

that

to

when

merge.

mergers,

There are
arising out

purely banking considerations,
have logic and public advantage
behind them.
It is the most lim¬
ited
kind
of
interpretation
of

in

public

advantage,

however,

to

thing

a

speculator

is

sometimes

able to accomplish in bank stocks.
Banks

create

were

not

chartered

opportunities for

to

windfall

Any one who applied for
charter for a bank that was to

profits.
a

be

used

for

such

a -

speculative

could be summarily dealt
with throughdenial of his appli¬
cation.
We
shall have to
give
purpose

the advisability of

banking.

We in the Banking De¬

closer study to

partment

acknowledge

asking the Legislature for author¬

our

con-

28

to

national

information

decade

was

on

a

similar

undertaken.

This

survey

ago

completed
action by

was

1943, just prior to
Legislature granting

the

stantial

increase

allowed

mentary

personal

sub¬

a

the

in

and

trustees.

fees

testa¬

The

survey

showed that personal trusts oper¬
ations were not contributing

sig¬

nificantly to the earnings
in

and
of

many

cases

of banks

were

a

It

was

appreciable loss.

indicated

cause

also

that the segment of the

business where fees are controlled

by statute had
with

a great deal to do
unsatisfactory
results.

the

With the increase

Legislature
personal

it

trust

conducted

granted by the

in

A

couple

partment

operations,
sufficient

old

of years

began

ailment

where

volume,

ings

found

of

some

opinion among trust people

whether
far

of

While the Department

what

on

the

earn¬

being felt in the

operations

the banks.

that

insufficient

again

was

fiduciary

profit¬

the De¬

ago

hear

to

of

that

expected

was

would become moderately
able.

should

be

done

or

anything should be done

from

ahead

unanimous,

with

went

we

exploratory in-,
quiry and obtained operating fig¬
ures
from several large institu¬
tions

in

an

New

considerable

from

data

upstate.

here

the

received

we

questions

a

we

more

included

in->

the

as

only

make

detailed

1941,

and

well

as

could

was

inquiry,

banks

was

Department

a

appeared

Hence,

as many

in

the

and

related

banks

conclusion

for

of

them.

answer

that

City

other

raise

to

York
amount

Unfortunately,

formation

as were

necessary

reach-

to

a.

position where it could express an
informed opinion about the effect
trust company

on

earnings of the

present scale of fees.
You

can

be

that

sure

some

'people will ask why the adequacy
of
trusteed' fees is being ques¬
tioned

the

in

so

soon

the

after

sizable increase.

a

been

several

granting

h'ave

There

major influences

on

earnings of trust departments
the last decade.

side

1943

than

the

On

good

have, of course, the in¬

you

in commissions effective in

and

adjusted

in

also know that many
ments
are
yielding

they did ten

We

1948.

trust invest¬
today

more

years ago,

thus

making income commissions high-'
er

find that it flows from the sort of

questionnaire

a

full

a

way

of

stock¬

assets at full book value

little

the

had

stock

there

out

trust

to

come

requesting

crease

observations about

I

the earnings of their trust depart¬
ments.
You may also remember

of

involved.

to

Fees

trust companies and two

to

only

tions

addressed

bringing in
facilities is not

Loss of banking

involved

My remarks on this subject are
not directed toward the institu¬

holders

has

value

G.

Rejoins Hannaford Talbot

Street., He

market-book

the

ex¬

spread.

Building.

Talbot,

the

higher

the

and

value

low mar¬

coincidence if that sort of
ploit the profit possibilities that thing operates in the public in¬
continue untiringly to

cause

&

Nevertheless, the

efforts

banks,

Hannaford

The whole purpose of

years ago.

maintained

between

banks

several states

in

place

in the Middle West ten and fifteen

difference between the

become affiliated with Waddell &

fornia

of these hold¬

some

banking's strength as being fully
until
a
better level
is

Now

has rejoined

Depart¬

from, but still reminiscent of,

natural

The Financial Chronicle)
—

What

ment.

Banking

ent

of

Maib

spe¬

anywhere near large enough

parity between market price and
book value keeps alive the un¬

Chronicle)

Mo.—William

Neb.

the

to

concern

to

Bohlen, Lillie A. Lash, Albert W.

SAN

the

have done is somewhat differ¬

Pierce, and Ruby E. Riggert have

(Special

Once

ers

was

anything else.

Barkley

much

communities.

Four With Waddell Reed

Inc.,

get

tageous basis.

1012 Bal¬

Landreth Building.

Reed,

to

price for his shares.

liquidations meant the loss of the
only banking facilities in some

Scherck, Richter Com¬

to

him

merger

a

that the improvement in this ratio

It

(Special

market
promote

to

allows

larger

unwilling to
and uses his

by sale of new stock on an advan¬

C.—William

Co.,

LINCOLN,

The

sell.

to

holder

South

pany,

is repeated.

The ordinary holder of bank stocks
is required to
be content with
market value for his shares when

which

that

earlier

might be called the prob¬
lem of the special block of stock.

which

appear

Some of you may be aware
the Banking Department has

The search for a new vic¬
immediately started

often

with

pursuing the subject of

earnings,

fees.

survey

This

he

■

way

by retention of earnings, but also

Street.

with

its

on

and the whole process

being

LOUIS,

is

profiting,

quickly

to results and leave out of account

ated

T.

ing about is the kind the swoops
oh its prey, strikes and,

down

in

to

The

capital.

welcome

speculative capital that I am talk¬

F.

Chronicle)

Thf. Financial

&

This

turn which the shares afford.

always

re¬

cial block has no connection with
a more equitable
Indeed, he may not
basis, the full force of the higher the bank.
have accumulated his stock until
money rates may then be felt by
he
knows
the
merger
seeds he
bank
earnings.
The possibility
that bank earnings may be higher himself has planted have begun to
helped to improve the market po¬ take root.
sition of bank stocks slightly in
Tlie activities of the holders of
1951. Quotations were higher, but, the special blocks of bank stocks
more
importantly, the ratio of —by a play on words you might
market price to book value was call them the pressure blocs—are
higher at the end of the year than becoming a matter of increasing

It should be noted that the dis¬

N.

accept the dividend

ready to
is

or

year

a

in the meantime in quite

two and

Further

few points appreciation .bank

a

several months or

over

behind

would

pressure

Trust

do not mean the kind

ing for

Banking

have been strong.

By speculative capital I
that is look¬

capital.

the

scrutinize

application

their

speculative

investment capital, but

good part of

a

case,

will

be¬
values,

gap

the role played by the
blocks before
acting on

special

not

is

shares

bank

to

of

care

any

point

that better

book

and

hope
prove

care

any

however,. when the capital that is

better

great difficulty.

great

capital flows into bank stocks.
is an entirely different story,

new

attracted

In

Department

pleased when

is my

It

ac¬

charter

closing the

by

would take

be

not
new

a

step will not
I need hardly

a

market

this.

at heart can only be

It

effort.

The

tween

Any one with banking's interest

were

involved.

such

earnings,

pick off

value spread.

however,

Association,




ing

The

or

THOMAS, HAAB & BOTTS
Members Put &

Super¬

associate itself with this fact-find¬

Thornborough, Jr. is now associ¬

price change
pamphlet on request

to prior sale

visors of State Banks

of

to

actuality to con¬
or identities

would

the obvious moral

out

somebody's

of

amounting

purposes

buyers

was

tnat

the profit ob¬
tainable in the market value-book
efforts

activity slackened during
1951, if we confine our discussion

ST.

137.50
137.50

.@82% May 5 575.00
Sunray Oil...@21
Mar. 31
87.50
M.Kan.Tex.pfd.@52%Mar. 10 250.00
So. Pacific.. .@63% Mar.
1 175.00

Subject

Reed, Inc.,

if the

tr.e

that

of

disappearances

banks that result from

Hayes is now associated with

(Special

Atl. Cst. Lines

Beth.

Association

acquisitions

on

in

or

ceptable if it

with

Mo.—Ray

Scherck, Richter Adds

100 Shares

Central@57% Mar. *24
Oil
@54% Apr. 7

faring under the provision of
Revenue
Act of
1951.
The

the

National

the

over

cern

of

Church

Mar. 11

Aluminum

CITY,

become affiliated

OPTIONS

St. Lo.-S. Fran.@24

Zenith

Chronicle)

Financial

CHARLOTTE,

Airlines@31% lar. 10 $175.00
Elec.. .@60% Vlar. 22 250.00

duPont

banks

commercial

the

how

permitting the capital
position to be bettered not solely

'

Goodbody

United

questionnaire which
bring out the facts

book value,

With Goodbody & Co.

Barbara

PUT

about

timore Avenue.

N.

SPECIAL

The

to

KANSAS
White

Offices

Monterey—Oakland—Sacramento
Fresno—Santa

to

revived

Teletype NY 1-928

7-4150
Wires

Private

Exchange

New York 5, N. Y.

Street

14 Wall

COrtlandt

Trade,

of

Cotton

Yoik

(Associate)
Exchange

Stock

Board

Chicago

They are presented as

Exchange

New

New

at any
of the

those

of the author only.]

(Special

York

Francisco

necessarily
with

this

in

1919

Members

San

not

Chronicle.

INVESTMENT SECURITIES

New

do

coincide

those

expressed

views

article
time

L/LllWdUa>L'ilCI

a

is intended

about

Orders Executed on

|The

trol,
of

bank taxation to

if

if

if

Incidentally,

probably seen
profits. Don't
points away from their old stay with them too long figur¬
highs. Latter is across 90; ing it's a one way street. If
present figure is about 88.50. you can adjust your thinking
to holding on for yields that
will be something else. Paper
profits, however, have a dis¬
Pacific Coast
concerting habit of fading
away.
So guide yourself ac¬
Securities
cordingly.
Pacific

tribution of

softening.

any

pass

effect

necessary.

are

in

in

Bank Earnings, Book Values,
"Windfall Profit" Mergers

This in turn

occurs.

the talk of

Says—
=

it

to

sizable blocks of stock,

averages

even

without the rate increase.-

Principal values generally should
be higher.
For the last year and
a

half

restricted

stocks.

greater

While

trusts
all

duciary, it
larger fees.

may

t h i

responsibility

s

eventually

hold

places
the

fi¬

leads

to*

on

On the

operating side there are
gigns that certain phases of trustwork

may now be handled more
efficiently and economically than
Probably some of the less

before.

essential

services

have

been

re-

Number 5086

Volume 175

duoed

of

.

The Commercial and

.

trusts

but its validity does not depend Board to give thought to restoring
its ability to win a popularity a larger degree of rate discretion
contest.
in this State, I wish to take this
„
.
opportunity to remind you that by
Higher Rate Decision Imminent acting up to your highest standWhile the Bankipg Department ards now you will be indicating
has been studying the deposit rate that the severer forms of rate
problem for the last several weeks regimentation may not be needed
a good many bankers have said in this State.""**
,
to me that they believed the ceilthe last year not a few "Up—
ing should be left squarely alone ^vard adjustments have been made
and the same kind of rough jus- in thrift rates around the State
tice that we now have on a Some of th^m appear to have

being administered through comtrust funds, none of which
existence

in

Since

last

ten

years

amounts

year,

$100,000 may be placed
funds, with the result

ago.

to

up

people

you

as

on

the

banking side well know, deposits
resulting from fiduciary operations
can
be put to work more

have the familiar and
inflation and taxaIn
1943, when trust fees
foein§ increased for the first

the bad you

potent evils of
were

twenty years, inflationary
forces were already at work to
increase
the
cost
of
rendering

time in

the

will

What

The

be?

reaction

I

leaders in

tone

to

position

a

the staff and of

present the expense of

Our

say.

Banks here

stockholders.

inquiry is intended to provide an
answer
to
this question and to

and

asked

be

of

about the return

us

the capital employed

on

Interest
We

that

like

should

I

the

.ea^/n^s„onr^se^, 2t
institution. The ot er

to

is

take

to

the

rate

ove

There has been

active

as

of

the

determine

assets is

its

ating in the highest

There is

^

creditors,

depositors,

no

and

reason

stockholder

stockholders,

to believe that

to

intended

was

weakened in the earlier pe-

then

then,

follows,

It

riod.

that

by

sorting out of memories
that if rate increases are avoided
kind

of

banks will remain strong.

our

now

itis not quite as simple
as
all that.
Losses are the great
leveler.
In a period when losses
However,

traditions of

Of AEnntinum Go. Debs.
The
29

of

public offering "on Jan.
$125,000,000 Aluminum Co.

the

of

same

The

institutions

of

tvnes

bank-

ing holiday and the influences that
rise to the low and uniform
ceilings on dividend and interest
rates on deposits are now in the

gagve

elements
direction of the

0( the

one

is with a good many
productive source
of

ioan accounts,

banks

a

If t0 these factors

thrift deposits

that is
fair to the depositor and at the
same time does not strain the abiljty of the bank to pay, experience
shows
that
a
substantial and
profitable thrift business-can be
.

added

divisions between

the

j

t

earnings make
institutions built
kind and between
If

insignificant,

are

R

a

rate 0f interest

up.

•

ate

th

j

^

*

in

ceihng

ceinng^i

Which is offering the debentures
a* 100% to yield 3.125%.
Proceeds from the sale of the
debentures, from $100,000,000 ref ""y borrowed from banks and
'rom the company s other cash
resources, will finance a 55% increase in capacity or 410,000,000
P®""/?8 of aluminum per year—in
addition to expanding alumina
Produc.ing
bauxite mining
operations. The entire $330,000,-

past.

naUonStop^of°2 % ^ wfwill be 000 e,xfa],sion Is exPectfd
be
^oTnVto^lkerl in thi7 State eomPleted
19531951,
early 1954. by
Asthe
of end of31,
Dec.

iargef degree of prudence, of

discreti0n

in

handing

ahout S66

oWoWhadf already

been

their

lx-

the Bank- jble to moderate these competitive
been com- tensions by adjusting the rate
piling much evidence and think- ceiling according to ability to pay.
For some weeks now

Department

ing

the
m

IS

^bou w,b

•'!

a.

old

ceiling is applicable
Various possibili-

rate

haeveh!on\mdeeinton^erotstle
looked
into
the
question
have

whether
raise

it

the

would

ceiling

be
on

possible

to

what might

to

ability to
tions.

pay

as

measuredy

by

by types of instituof the hard facts of

earn

One

life

is

that

there




isr.a

retire

„inki_ff

90%

ofg

f„nd

the

will

which

issue

practically everything that is being offered. As has been the case,
the buyers of the short-term issues are widespread, embodying

is

emergency

tions

over

means

and legislated
depositor pays

peace

the

moderation-

.

.

return on his
r

.

Present Ceiling Sixteen Years
New

of

athemselves?
minority °f For
lnstitUthat

from

kind of hard

S'

as a

York

State

has

kept

still

is

erence

likely

most

corporations. The liquidity pref¬
there is a tendency

strong as ever even though

as

to be hesitant in making purchases because of the
in yields.
If there should be a shake-out, it would

some

among

important

be very

not

Thin Market for Long

^

the riskless buyers

because

"right back in there picking up thbse issues.

Bonds
trading range, with

long-market is moving in a narrow

The

quotations being susceptible to rather easy movements in both
Buyers have been mainly the state funds, with the

directions.

savings banks supplying the bonds, that is the restricted obliga¬
It is reported that the state funds of Pennsylvania, New

tions.

the principal ones in
- ( *■
Pension funds, it is indicated have made no important change
in policy as far as the higher income issues of governments are
concerned. Scale and some spot buying is still in order, and in not
too sizable amounts, even though a few more of the restricted
obligations are reportedly being bought now by these accounts
than was the case not too long ago. There are, however, no indica¬
tions that prices are being chased up in order to acquire these
bonds.

<ciaoooooo

comDanv

creage

{he

in

bas

the

thp

option

the

sinking

-^gnv'^Tbv
exceeding

of

eaeh

fund

an

vears

to

amount

required

in-

payment

be

.

sides to the trade worked out before a

two

transaction takes

because there are no^heroes around at this stage of the
game that are willing to go*1'out and position the obligations in
anticipation of trades. Nonetheless, there has been some rather
important placements worked out this way. This has resulted in
the bonds being well placed in strong hands.
place,

Restricteds in Demand

age
t

not

life of 7.6 years. The debenare

■

also

callabie

switching is being noted

Considerable
ligations with

the earliest eli¬

to have
the
from the first

The June 1959/62's and the 1962/67's appear

gible bonds.

acquired

in the restricted ob¬

the trend recently veering toward

friends

more

three maturities of the

a

result of this movement into

restricted bonds into the two longest

Charitable organizations appear to be

in this group.
these swtiches.

Savings

as

There is, however, some swaps

bonds.

shorter tap

v

bonds -<r

the leaders in

>

banks, it is believed, will continue to

liquidate the

orderly fashion so as not to be too much
depressant on the market. Not only will these funds be put
the tax exempts, but they will also be put to work in cor¬

longest maturities in an
of

a

into

obligations that are attractively priced.

porate

out-of-town ones,
making modest
commitments in the longest eligible obligation. The 1956 ma¬
turities and the partially exempts seem to have appeal for certain
of these institutions,
with those in the Southwestern and Far
Commercial

which

banks, especially the smaller

heavy

are

Western areas

savings deposits have been

in

doing the bulk of this buying,

Hamilton Managem't

at

com-

.

pany option at prices ranging
T02 to par.

trom

Adds

(Special to The Financial Chronicle)

according to reports.

With Renyx, Field
(Special to The Financial Chronicle)

DENVER, Colo. — Kenneth H.
Sullivan is now connected with
Corporation, Renyx, Field & Company, Inc.,
2239 East Colfax.

DENVER, Colo.—Rebecca Dresback has joined
ilton

the staff of Ham-

Management

445 Grant Street.

sinking

fund for that >'ear- The regular
Old sinking fund results in an averits

v

.

Despite the thinness of the long market, there has been how¬
ever a minor expansion in activity, but it still continues to
be an
"order market" in every sense of the expression.
There has to

prior t0

Must we
then continue a re^~ maturity,
amounts to $30,000,000
low ceiling long after the
] 957, $32,500,000 in
1958, !nd

rate ceiling lower than the rest
difference in earning power be--of the country for sixteen years,
tween different, types of inslitu^This would seem to be-a period
tions and hence «.a variation = in long > e n o u g h ■ for' institutional
banking

'

Th

tiveiy

heavily in loss of
ability

mansion

has

these times.

'^J

to have been taken too seriously so far by the short-term
buyers as a whole, because they continue to wade in and take

appear

or

the

Now we are at
stock-taking.
We

might do
not

obligations is not too evident yet, and does

the near-term

.

al- aDOU}
nad of
already
oeen
spent. ^bo,uuu.uuu
Certificates
necessity
fairs.
It
is
obvious that
that covering $285,000,000 of these ad¬
time
of
are action would come at a time when
ditional facilities have been re¬
faced with the decision whether the competitive tensions are at a
ceived permitting five year amor¬
the
rate uniformity at
the low higher pitch now than in a good tization of
$230,000,000 of the cost
level once found suitable near the
many years.
Because of the tie- cf the program. No further borpit of the great depression is ap- ,
between our regulation and the ^wTnV*are*m7Jdei^d'n2^v
propriate in our present situation. Federal reglllationSi it is not feas- 1° comnlete^ the prolected
dim

about by

York, California and Oklahoma have been
the market recently.

Group
Offers $125,GOO,GOO

not oper-

banking
that determined the

ening of short-term rates and this might be brought
the monetary authorities. What this feeling of caution
to

to quite

They believe there could be a tight¬

professionals.

in

of

to

of America 3*4%, 12 year sinking
f"nd debentures marked the comterest now would be most unwise f.
f fbr:ft apnosits
rv,riven- P'etion of the largest financing
because
competing for deposits
gtm
"most' important step of Alcoa's present $330,000,through jacking up rates was one factor
Goodwill
built
up
in 000 expansion program. The First
of the main reasons why banks
'h,,cinpcc relationship *uch Boston Corporation heads a nationfirst
became
overstrained
and
tLough demand deposit and wide group of 172 underwriters
this form: to pay more in-

takes

of

number

a

interests

shareholders

mention that led to many of the banking
deposits difficulties of the 1920s.
Any
hearing of those who have institution that lets its deposit rate

vivid recollection of

obligations have

protect th(j public jnterest and thfi

you

the course
of events in'banking in the late
1920s and early 1930s.
The usual
association of ideas in that case

a

to attract1 buyers in

signs of buoyancy and weakness appearing now and then. The
market for these obligations is still as thin as ever, which results

s

rising rates of interest on
in

Vulnerable

market continues

short

the

very substantial amounts, yields of some of these
declined to levels that are becoming a source of concern

;
',*} bankin| 0reanizaBusiness ot 11 bankmg oiganiza
™>ns! shaF p .,"

First Boston

whenever

issues, in order to maintain earn¬

Short-Term Yields Seen
Although

b

t"** most
°"tn
£ be the least of these.
Thinking has been what some other institution is
described as manipulation of mem- paying, and then to begin a search
ories.
Ycu can find some support for aSsets that will support such
for
that
definition from
what a rate
It is this latter approach
happens

higher income

ings.

downtrend
n+- Mow

deposits.

on

the

would be

starting

a

in

banks, insurance companies and

manner

minor pur¬

Out-of-town commercial banks have been making
chases

Zells

stock

bank

the bulk

Savings banks, it is reported, have supplied

of these securities.

strength for banking
,wiar^

acquisition of the highest income issues,
the quotations of

the

in

recently

these bonds.

the

flow

readv

important change in the composition of the

no

which has tended to have a favorable effect upon

your

of
VJ.

turn-down in the yields of the

because of the sharp

buyers of the longer-term obligations save for the periodic appear¬
ance
in the market of state funds.
These accounts have been

the lot of

A

into

eapital

there is no substitute
the thrift ra

deriving

to the last of the

now

come

matters

im

Department in such

for

Deposits

on

to

stockholders

demand deposits.

The fact is,

operations.

their trust

met

earnings rate on those assets that
are considered as standing behind

institutions from the

by our banking

claims

obligations and this is in spite of some cau¬
developing among certain buyers of these

shorts.

Itrff'^n^ 'deDOslto^ have"^ been

there try to convince themselves
show how much of the benefits that they can pay a higher rate on
expected to flow from the last fee thrift deposits so long as they segincrease
have been lost to
the negate savings bank type assets,
banks through contrary develop- for accounting purposes, in suffiments.
With such information we cient amounts to cover the thrift
can
then
respond, as a public deposits. Such a segregation usubody, to any questions that may ally has the effect of lowering the
realized

within

lies

the
^

after

power

to be

seems

securities,

pos'i-

whatever

that

tion

market, with

big demand, while the longs, with a better

expanded volume.

still in the near-term

the bank earnings out-

do

Governments

showing signs of strength within a limited area on
The largest volume and activity is

even

are

somewhat

business, to help

your

on

pattern is in vogue in the government

same

the shorts continuing in

practically all services, with the am glad to have this opportunity in restoring a true sense of proresult that long before 1952 preto speak a word about that.
The portion.
1
'
war
prices and salaries had lost worst thing that could possibly
Thus we come affain in thp end
nearly a" their
happen to
to this question of
earnings. Now
tion not only has added to costs, look is for a change in the deposit that the ouaUt
0( assets is hi her
but has increased the complica- rate ceiling to be made the occa- than
^
.
..
°
ever
before, a better
return
tions of handling trusts and es- sion for beginning a stiff compe- on capital is all that stands in the
tates.
tition for deposits based on way
of banking in New York
How much one set of influences interest paid.
That would amount
attaining"! matchless
has offset the other we are not in (to
over-rewarding depositors at tion of strength. I urge that you

Significance^ Taxa-

35

By JOHN T. CHIPPENDALE, JR.

national scale continued in New been made less with an eye on
York State, though on a lowei earnings position than on what
level. You may wish to take into
e G^er fen0w was doing.
If
your thinking the possibility that self-restraint fails here and there
New York State may in two and a
keeping institutions from going
half woeks restore to all banks of ^qq
J'jq their competitive drives
deposit a larger degree of discre- jn paying interest, we must count
tion in dealing with deposit rates,
the cooler heads on the real

profitably now than ten years ago.
So much for the good side.
On

tion.

Reporter

.

in these
that we

probably have witnessed only part,
of the aevelopment of this useful,
means
of
trust
administration,
Finally,

Our

on

mon
was

unpaiaiable

is

now

are

(503)

Financial Ghronicle

This is a fact that prudence to become a fixed habit,
to some bankers, As the time nears for the Banking

ability to pay.

A consider-

eliminated,

or

number

able

.

Joins Inv.
(Special

to

Service

The Financial Chronicle)

Barham & Cleveland
(Special to The Financial

Add

Chronicle)

R. Moore
CORAL GABLES, Fla.—Carl M.
with In- Copelin has been added to the
vestment Service Corporation, 444 staff of Barham an^ Clev^
*d,
Sherman Street.
2207 Ponce de Leon Boulevard.
DENVER,

Colo.—J.

and Arthur K. Urton are

e?'

86

The Commercial and Financial Chronicle

(504)

.

Thursday, January 31, 1952

.

.

•*

'

*

Continued

'

Wholesale Food Index Turns

from page 5

Moderately Higher

Continued

from

5

page

After

-The State oi Trade and

Industry

'

Consumers are
mills aie having
difficulty moving seconds and rejects. All these may point to an
easier supply much sooner than had been predicted or expected.

products are reported accumulating, it declares.
shying away from premium-priced material. The

4

supply, it

immediately.. There's still an excess of demand over

<' asserts.

.

,

of 31

that

mills

On the other side, galvanized sheets
producers are weeks behind on
commitments.
Even here, an eastern mill believes it will have
more galvanized sheets
by March as result of an expected im¬
provement in zinc supply, states this trade weekly.
Demand for
\ large carbon bars is extremely heavy and there are no signs of
-easing. New ammunition programs will require greater tonnages
of cold finished bars.
Heavy plates are acutely tight, but supplies
*
of light plates are steadily improving as more tonnage is made
ease

in supply.

continue in tight supply

and

many

4

4

available from continuous sheet mills.

;
'

k

ship program now

new

likely will add up to plate supply difficulties over
coming months. Structural steel continues tight, but some authoriiies think supply conditions in this product will be noticeably
up

under
demand
►being experienced for some products. This is borne out by rising
unemployment in the automotive centers where steel supply con¬
ditions are noticeably easier because of the cutbacks in auto
production.
Substantial part of the easing in supply is due to
curtailments

manufacturing

goods

durable

^government fiat account for much of the slackening in

government restrictions

How-

manufacture of civilian goods.

on

one can be certain how wide the gap between supply
sand demand would be at°this stage were restrictions lifted, this
no

fever,

weekly points out. In any case, steel supply, in the majority
of instances, is not the controlling factor restricting manufacturing
so
much as are limited supplies of the complementary metals,
•trade

copper

and aluminum.

Controlled Materials Plan.

tickets

Fewer CMP

being

are

issued, assuring recipients of having their authorizations honored
By the mills, "Steel" magazine concludes.
.

The

tfeat

American Iron and

operating

the

rate

the

for

of

Steel Institute

steel

beginning

week

having

above

point

last

week's

week

93% of the
100.1% of
to

industry will be

Jan.

28,

1952,

'2079,000 tons of ingots and steel for castings,
a

this

announced

companies

for the entire

«ieel-making capacity

capacity

production

99.4% of rated capacity which recently
A month ago output stood at 98.2%,

an

equivalent

increase of 0.7

2,065,000

of

tons,

or

revised upward.
2,039,000 tons. A year

was
or

production stood at 101.3%, or 2,025,000 tons.

»go

v

..

-

■

1

r

■

.;

The amount of electric energy

distributed by the electric light
and power industry for the week ended Jan. 26, 1952, was esti¬
mated at 7,616,421,000 kwh., according to the Edison Electric In¬
stitute.

Price

Index

Shows

Slight

Gain

76,542,000 kwh.

was

than that of the

more

preceding week.

It was 646,855,000 kwh., or 9.3% above the total
output for the week ended Jan. 27, 1951, and 1,644,759,000 kwh.
in excess of the output reported for the corresponding period two

years ago.

materials,

1

Loadings

of

revenue

freight for the week ending

Jan.

19,

1952, totaled 747,662

;

cars, according to the Association of Amerrepresenting an increase of 4,905 cars, or 0.7%

'<

.lean

I

^above the preceding week.

Railroads,
The

| 4.1%
1

I
<■

week's

total

represented

a

below the corresponding week

128,499

cars, or

when loadings

decrease

a

year

of

32,088

ago,

but

20.8% above the comparable period two
were

cars,

a

or

earlier and with 323.65

customers, and

Leading
Price

grain

trends

the comparative date

markets

depressed

were

with

irregular

were

sessions aviping out most of

the

of

most

upward

an

year

a

ago.

the

in

spurt

week.

in the

early part of the week.

volume.

Sharp advances

scored

following the issuance of
bu'dget message on Monday of last week.
Early weakness in corn reflected greatly increased marketings.
the

were

Administration's

Arrivals

at principal markets the past week exjranded sharply
approximately 13,200,000 bushels, the largest of any week in

about

14 months.

A large percentage of

be of low grade with high moisture
eligible for price support. Oats prices

the arrivals was said to
content and therefore in¬
down slightly, largely

were

influenced by heavy supplies.
Flour

prices

generally

were

Activity in domestic markets

was

throughout the week.
confined to very limited book¬
steady

ings of hard wheat bakery flours.

A slight pick-up was noted in
flours, due mostly to depleted stocks. Reflecting firm¬
producing countries, cocoa turned higher and closed with
a
rise of more than three cents a pound for the Accra grade.
Sharp gains in late trading resulted from short covering, hedge
lifting and dealer buying following indications of a further down¬

fields.

Auto Output in U. S. Declines 6% From Week
Ago

51% Below 1951 Week

j

Motor vehicle production in the United States the past week,
according to "Ward's Automotive Reports," dropped to 87,621 units,

} compared with the previous
,

and the outlook for

held

firm

were

somewhat

in

a

decline in world

moderately

active

West African cocoa crop

production.

trading.

Coffee prices
coffee prices

Roasted

firmer, reflecting recent gains in the

green

market.

Refined sugar prices were lowered 10 points last week, reflect¬

ing the drop in

raw

prices

the past few weeks.

over

Live

hog prices moved lower in the Chicago market as re¬
ceipts failed to clear. Sheen and Jamb prices also trended down¬
ward

the result of

as

liberal receipts.

more

(

Passenger

car

a year ago.

production in the United States declined- last

week to 6% below the previous week, and

to about 51%

below

the like week of 1951.

]

Total output for the current
and

week

was

made up of 63,135 cars

24,486 trucks built in the United States, against 67,220 cars and
cars and 30,586 trucks in the

■; 24,720 trucks last week and 127,733
comparable period a year ago.

Canadian output last week fell to
3,497 cars and 3,005
4
„

against 3,488
8.869

J
i

^

cars

cars and 3,241 trucks in the preceding week and
and 2,725 trucks in the similar period of a year ago.

Business Failures Continue Moderately Lower
Commercial and industrial failures declined

.

and reports of further curtailment in mill activity.
Reported sales
in the ten spot markets increased over a week ago and the corre¬

Domestic mill consumption during De¬
cember averaged 35,400 bales per working day, as compared to a
daily rate of 37^500 bales during November, and 41,300 bales in
December, 1950.

s.

week, according

Bradstreet, Inc.

year ago

Casualties were somewhat lower than
when 193 occurred and were down

} the 1950 total

sharply, 39%, from

of 232 and off 63% from the

prewar

In

year.

the

period

ended

Previous Week's

at

Wednesday

of

High Level

week

last

shoppers
spent about as much money in retail stores as they did in the
preceding week. However, as during recent weeks, the total dollar
volume of retail sales did not match the
unusually high level of a
on

earlier when fear of scarcities boosted buying, states Dun &
Bradstreet, Inc., in its current summary of trade.
Reduced-price
promotions were well under way in most sections of the nation
with consumer response not especially spirited.
Retail

merchants sold

about

much

apparel

during the
prior week and somewhat less than a year ago. Among the items
in increased demand were women's
budget dresses, lingerie and
as

\
j

.

Liabilities of $5,000

Total retail dollar volume in the period ended on Wednesday
was estimated to be from 2% to 6% below a year ago.

of last week

Regional estimates -varied from the levels of

failures.

week

J place
.

J

tThey

Casualties of this size dipped from 138 in the
previous
and 143 last year. An increase, on the other

hand, took
under $5,000.

among small failures, those with liabilities
to 27 from 20, but did not equal the 50 which

rose

« year ago.




New

England

+2

Pacific

to —2;

a

year

ago

by the

occurred

and

in Janu¬

materials

or

inven¬

heavy finished goods

tories

given

are *

Several

causes.

the

as
areas

major
cur¬

are

rently' hard
hit.
Other
spots,
heavy with defense business, are
having
difficulty
in
obtaining
skilled! workers.

Unemployment

insurance,

taxes,'

high

moving
seniority rights and home
ownership are holding back
worker migration.
costs,

Buying Policy'

Coast —3

to

—6;

East

Midwest —4

Southwest

and

—1

to

to —8;

Northwest

to —4

0

purchasing commit¬
ment range is again within a 90day policy. 87 %, the same number
for the past three months, report
holding to this conservative view
of the markets.

short-term
of

recent

avoided long-term commitments and concentrated
dwindled stocks.

markets, support

months,
on

replenishing

a

on

a

countrywide basis,

Reserve Board's index for

the

week

as

taken from

ended Jan.

a

very

19,

cau¬

tious buying attitude.
'

•

■

•

■

*

.

.

1"0

-

Halsey, Stuart Group
Offers United Gas Bds.
Halsey,

Stuart

associates

are

Co.

&

Inc.

and

offering $50,000,000

mortgage and collateral trust

bonds,

3V2%

United

Gas Corp. at

accrued

bonds

series

interest.

was

bid

of

due

Award

and
the

of

group

Tuesday

on

of

1972

102.17%

by the

won

competitive sale

on

at

its

101.52999%.

Proceeds from the sale of these
bonds will be used by the corpo¬
ration

principally
the

part

program.

to

1951-1952

finance

United

In the early part of 1951

Gas

adopted
which

in

construction

the corporation and its

Pipe

was

Line

subsidiary,
Company

construction

a

program

then estimated to cost

approximately
program, as

$170,000,000. This
supplemented by ad¬

appurtenant

estimated

projects,

the

to

sum

is

cost

ap¬

Of

this

of

$162,-

500,000 relates to projects of the
Pipe Line and the sum of $11,900,000 to projects of the
corporation.

General
the

redemption

bonds

104.67%

prices

of

downward from

range

and

special redemption
prices start at 102.17%.
United

year ago.

Department store sales

number

a

proximately $174,400,000.

buyers

price

and

and

Many trade exhibits reported buyer attendance

larger than

backlogs,

spots appearing in

presently

slightly higher

distinct

a

the

top side of
this bracket into "hand-to-mouth,"
30- and 60-day buying.
Govern¬
ment and self-imposed inventory
restrictions,
easier
availability,

estimated total

during

as

There is

from

movement

—5;

to —7.

dollar volume of wholesale orders continued to be
that that of a year earlier^
As

/

Industrial

ditional

—2

Stimulated by trade shows in many parts of the nation, whole¬
sale buyers placed an increased volume of orders in the week.
With the help of
many commitments for defense needs, the total

Gas

ducing Co.
Line

Co.

Corp.,

and

Union

United

constitute

a

Pro¬

Gas

Pipe

system

en¬

gaged

1952, declined 14% from the like period of last year.
In the pre¬
ceding week a decrease of 13% was registered below the like
period a year ago.
For the four weeks ended Jan. 19, 1952, sales

principally in the produc¬
tion, purchase, gathering, trans¬
portation, distribution and sale of

declined

natural gas. The system
serves
parts of Texas, Louisiana and Mis¬

tered

an

10%.

For the

year

1951, department store sales regis¬

advance of 3% above the

preceding

year.

Retail trade in New York the past week showed little
change
that of the week before, being characterized

over
ers

by trade observ¬

as

"normal."

Estimates placed sales at about

1951 week when "scare"
buying

15% under the

prevailed.

According to Federal Reserve
sales in New York

or more were involved in 115 of the week's

Lack of orders

ary.

as

coats.

level of 385 in

j the comparable week of 1939.

than sched¬

sooner

arations, elimination of overtime,

first

slightly to 142 in

the week ended Jan. 24 from 158 in the preceding
to Dun &

i

trucks,

by

orders

and reduced work week

commodities in the wake of the President's budget message.
Early
weakness stemmed from continued slowness in the goods market

the Federal

,

many

soft

Although depressed most of the week, spot cotton prices ad¬
vanced sharply at the close in sympathy with the rise in other

South

week's total of 91,940 (revised) units,

and 158,319 units in the like week

s

defense

to

of

highest number (29%) in
months report payroll sep¬

in

ness

and

!

them

holdup

soft wheat

following percentages:
•

allot¬

Employment
The

Wheat exports continued in good

in

uled deliveries.

losses.

early

cutbacks

attribute

operations,

closing

Increased marketings of wheat, coupled with a lack of aggres¬
sive demand was largely responsible for the easiness in that cereal

rise of

years ago,

reduced by restricted operations in the coal

and

creases

on

better

all indicate further stock
Those reporting in¬
liquidation.

street, Inc., rose sharply to finish with a slight net gain for the
The Jan. 22 figure at 309.16 compared with 308.39 a week

week.

in

reduced

production
schedules, shortages of controlled
ments,

year

Carload ings'Show Further Increase in Latest Week

j

The

Survey

them

report

dropping to the lowest level since early November, the
daily wholesale commodity price index, compiled by Dun & Brad¬

Trade Volume Sustained

The current total

Revealed in
members

After

sponding week last

,.

Electric Output Improves in Latest Week
-

of

balance.

Commodity

ward revision of estimates of the British

Viewing the steel supply picture broadly, it appears easier
conditions are directly attributable to more efficient functioning
of the

in general use,

Wholesale

to

Improved in the next 90 days, this magazine adds.
Civilian

«

A

In Business Pace

the

price per pound
and its chief function is to show the
total

sum

general trend of food prices at the wholesale level.

<

; shaping

foods

represents the

in Latest Week

anticipate full bookings for
the second quarter, but the rate at which they fill will be slower
than in 1951.
Cold-rolled sheets, strip and certain specialties

^ continue to

*

index

...

it states

Continuing,

Continued Decline

.

The

demand

balance in overall steel supply and

But don't look for a

'

declining for two weeks, the wholesale food price
index, compiled by Dun & Bradstreet, Inc., rose moderately last
week to stand at $6.60 on Jan. 22, from the 14-month low of $6.57
a week
ago.
It compared with $7.08 on the corresponding 1951
date or a drop of 6.8%.
-

Board's index, department store

City for the weekly period ended Jan. 19, 1952,

decreased 15% below the like
period of last year.

In the preced¬

ing week a decrease of 19% was recorded below the similar week
of 1951, while for the four
weeks ended Jan. 19, 1952, a decrease
of 14%

1951
year.

was

registered below the level of

volume advanced 4%
•

a
year ago.
For the year
above the like period of the preceding

■

•

sissippi and also extends to Mo¬
bile, Alabama, Pensacola, Florida,
and to the International
Boundary
at
Laredo, Texas.

Ins. Ass'n Div. Bureau
BOSTON, Mass.—Beatrice
bins

is

engaging

in

a

Rob-

securities

business

under the firm name of
Insured Association Dividend Bu¬
reau
from > offices
at
53
State

Street. -*

\

-

!

yolume 175

Number 5086

.

The following

Indications of Current
-fewseji

m

latest week

steel

Indicated

week

*

STEEL INSTITUTE:

,

of capacity)

operations (percent

statistical tabulations

Equivalent to—
Bteel ingots and castings (net tons)—!

Feb.'

3

Feb.

3

'

or

month ended

Previous

Month

Year

Week

Week

Ago

Ago

-1

100 1

99.4

2,079,000

2,065,000

that date,

on

Latest

BUSINESS

101.3

98.2

UNITED

Crude

INSTITUTE:

PETROLEUM

oil

condensate

and

output

daily

average

(bbls.

42

of

Jan.
Jan.
Jan.
Jan.

Crude

to

runs

(bbls.)

stills—daily average

!

Gasoline output (bbls.)
Kerosene output (bbls.)
fuel

oil

output (bbls,)

116,639,000

6,625,000

6,545.000

6,505,000

22,056.000
2,872.000
9,606,000
9,121,000

22,113,000

21,773,000

20.724,000

131,310,000
21,864,000
69,783,000

.

.

3,045.000

2,664.000

2,926.000

9,891,000

10,150,000

9,366,000

9,585,000

9,017,000

9,637,000

unfinished

and

Kerosene

(bbls.)

Residual

Jan. 19
Jan. 19

at

at

oil (bbls.)

Distillate fu«l

(bbls.)

gasoline

128,333,000

117,618,000

123,782,000

Jan. 19

at

Wholesale

fu<||oil (bbls.) at

39,716,000

Jan. 19

INC.—Month

17,177,000
61,147,000

Manufacturing

40,109,000

Wholesale
Retail

-

CONSTRUCTION

ENGINEERING

—

Retail

construction

construction

Public
State

and

municipal

Jan. 24

$309,273,000

$249,214,000

$173,495,000

$305,269,000

Jan. 24

242,207,000

166,473,000

235,369,000

Jan. 24
Jan. 24

67,066,000

82,741,000

106,654,000
66,841,000

50.000.000

58.677,000

61,137,000

48,380,000

17,066,000

24,064,000

5,704,000

21,520,000

Bituminous

S. BUREAU OF MINES):
and lignite (tons)

(tons)

Pennsylvania anthracite
coke

Beehive

:

(tons)

11,760,000

10,695.000

11,175,000

944,000

950,000

924,000

956,000

148,000

*151,900

152,300

162,400

Jan. 19

11,330,000

Jan. 19
Jan. 19

RESERVE SYS¬

INDEX—FEDERAL

SALES

INSTITUTE:

ELECTRIC

Electric

Jan. 26

(in 000 kwb.)

output

7,616,421

7,539,879

liabilities

INDUSTRIAL)—DUN

AND

6,921,625

Jan. 24

STREET, INC.

Running bales

•

-Pig

(per

iron

Scrap steel

(E.

Jan. 22
Jan. 22

ton)

gross

(per gross ton)

KETAL PRICES

Jan. 22

-

M. J.

&

,

193

Straits tin

(DEPT.

Lead
Lead

Zinc

(New York) at
(St. Louis ) at
(East St. Louis)

!

at

MOODY'S BOND PRICES DAILY AVERAGES:
U. S. Government Bonds

1-

.

A

*

—

Group

Public Utilities

$52.72

$52.72

$52.72

$52.69

$42.00

$42.00

$42.00

$46.08

Group

—

Industrials Group

;

Matured

27.425c

24.425c

Disability

121.500c

103.000c

103.000c

178.000c

19.000c

19.000c

19.000c

17.000c

18.800c

18.800c

16.800c

19.500c

'19.560c

17.500c

96.53

96.42

96.36

101.34

Aa

109.42

108.88

108.16

116.02

114.08

113.70

112.37

120.02

112.75

112.19

111.62

118.80

107.80

107.44

107.09

115.43

103.30

102.63

101.97

110.15

Jan. 29
Jan. 29
Jan. 29

105.34

104.66

103.64

112.75

109.42

108.88

108.34

116.02

113.50

113.12

112.75

119.20

Industrials Group

Jan.29

2.73

2.74

Jan. 29

3.20

3.23

2.75

2.40

3.27

2.85

Jan.29

2.95

2.97

3.04

2.65

.Jan. 29

3.02

3.05

3.08

2.71

Jan.29

3.29

3.31

3.33

2.88

Jan.29

3.55

3.59

3.63

3.16

Jan. 29

3.43

3.47

3.53

3.02

Jan.29

3.20

3.23

3.26

2.85

.Jan.29

2.98

3.00

3.02

2.69

Jan. 29

529.2

458.0

456.6

456.7

.Jan. 29

14,508,132

29

N.

Y.
of

OF

ASSOCIATION:

Production

Jan.
Jan.
Jan.
Jan.

1

,

(tons)

Percentage of activity

(tons) at end of period

Unfilled orders

19
19
19
19

193,052

195,092

153,591

204,021

210,349

203,923

218,278
244,416

85

86

86

104

\

PAINT

DRUG

AND
=

REPORTER

INDEX

PRICE

192G-3G

—

152.

147.2

LIFE

SPECIALISTS

AND

DEALERS

LOT

EXCHANGE—SECURITIES
Odd-lot sales

EXCHANGE

by dealers (customers'

COMMISSION:

of shares

Number

.

Dollar value

-

51,396

26,929

27,695

40,248
1,122.380

756,017

774,374

1,553,886

$54,174,482

$35,709,466

$34,369,715

$65,981,391

Jan.12

27,5*2

18,712

24,487

47,785

Jan. 12

225

120

122

18,592

24.365

~

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales
-

.

Customers'
•

sales

short
other

Customers'

.

sales

Number of shares—Total

'

f

—;

sales

Jan.12

27,317

Jan.12

770.803

511.331

•

I

1,377,606

18,543

Customers'

short

sales

Jan. 12

7,701

4,222

Customers'

other

sales

Jan.12

763,102

507.109

674.034

1,359.063

$53,607,787

365,040

*

Dollar'value

_!

.

Jan.12

$32,714,977

$21,071,800

$27,959,465

PURCHASES

Number of

Jan.12

>;

182,340

133,850

212,650

dealers—

shares—Total sales

=.,

—.—

*
-

Short

sales

Other

sales

Round-lot

—

Jan.12

—__:—

purchases by dealers—
-Jan.12

of shares

Number

537,570

133,850

350,770

212.650

■298,940

1926

=

OF

Month

PRICES,

NEW

Farm

Grains

—;——:

—

——

Livestock

1

Meats

All commodities
Textile

other

than

farm

_

and

products

Fuel and

—i

foods

Total

$136,412,000
40,493,003
8,381,000

24,109,000

22,601,000

21,253,000

53,220,000

58,909,000

55,930,003

50,458,000

50,097,000

$315,371,000

$327,648,000

$305,847,000

$1,547,000
453,000

$1,549,000

$1,356,003

481,000

455,003

446,000

253,000

881,000

$2,446,000

$2,283,000

$22,057
19,405

*$21,772

*19,581

16,601

$41,462

*$41,354

$32,249

22,592

*22,592

20,52%

$257.5

$236.%

Building materials

_

Lumber

Chemicals

and allied

products,,.

Sales

————

—

—

+Not

available!

.

^Includes




429,000

barrels

175.9

176.5

177.3

181

188.9

192.0

195.1

197

196.4

194.0

196.7

186

_x.Jan. 22

228.7

232.8

237.6

257

186.2

187.5

189.2

182

Jan. 22

264.3

265.2

265.1

263

165.1

165.2

165.5

171

Jan. 22

158.2

158.6

160.0

182

138.9

138.8

138.8

136

191.5

190.8

190.9

187

223.6

224.6

227

22

223.7

Jan. 22

346.1

346.1

347.9

$

133.5

137.5

137.6

145

Jan. 22

of, foreign crude runs.

.«

$2,692,000

:

$15,64%

UNITED STATES
COMMERCE)—Month

PERSONAL INCOME IN THE

OF

(in billions):

$256.7
170.4
^-Z4,0
75.0
46.0

Total

personal income———
and salary receipts, total
Total employer disbursements
Commodity producing industries
Distributing industries—
industries

Service

—.—

3.9

—

and rental

49.1

income-—.
and dividends—

payments

nonagricultural

income—

69.9

*46.1

43.2

*20.4

19.5

31.5

24.7

235.1

.—-

1

3.1

3.8

3.7

*50.5

47.a

19.5

20.8

'20.7
12-6

interest income

transfer

154.2
157.3

*75.1

3.6

——:
income

labor

Proprietors

*12.9

11.8

234.5

215.5

BY FARMERS — INDEX
DEPT. OF AGRICUL¬

RECEIVED

NUMBER —U.

S.

TURE—August,
of

for. social
*-

contributions

employee

*169.5

*173.1

-

20.5
32.5

— i.———————

Government

J

1)09-July,

1911=100—AS

November 15:

Unadjusted—
All farm products.,

-

'

301
267
——-——„249
hay.—,
224,
—2

Crops

——-————

Food

grain
grain

Feed

and

Tobacco

.

———-—------

—

1

Fruit

Truck

424
34d

—

-Cotton

I'

---

crops

—:

crops

and

Livestock

367

—-

_.

products———^
387

animals

Dairy products
Poultry and eggs

365
249

—.

-

296

,270

247

250

239

224

219

19a

445

428

304

346

188

19% >

171

188

296

351

340

299

410

357

294

267

247

209

$75,724,640

$134,459 ,629

'

I

Commission)

operating income

Income

deductions from income

available

fixed

after

Income

146.144,128

income

Miscellaneous

Net

Commerce

October:

of

income

Total

Other

ITEMS OF U. S. CLASS

(Interstate

railway

Other

deductions
income

Depreciation
Amortization
Federal

—.——

(way & structures &
of
defense projects

equip.)—

taxes—.—

:

4,214.377
135,929,751

3,600,767
Z'2o

37,729,060

5,306,080
71,238,939

appropriations:

On

common

On

preferred
of

fixed charges.—.—_
charges-.)——4—r—2—
—2
—

for

—

income

Dividend

Ratio

.•Revised.

43,378,000

551,430

Jan. 22
Jan. 22
Jan. 22

22
22
22

"

&

——

—Month

Jan.
Jan.
Jan.
Jan.

2

lighting materials

Metals and metal products

:

8,603,000

—

Nondurable

Net

1

■

40,377,000

———

Durable

365,040

SERIES —U. S. DEPT. OF LABOR—

products

>•-

SALES,
SERIES—
(millions of dollars):

November

of

SELECTED INCOME

100:

All commodities

•

Inventories:

RYS.

WHOLESALE

:

8,311,000

—

INVENTORIES
COMMERCE) NEW

Meat

18~2~340

119

42,448.000

Group

.Jan. 12

—

,

.

115

—

———

,

Oil-bearing
Round-lot sales by

10%

115

omitted):

Industrial

514

4,316

105

132

$147,059,000

1

(OOO's

47,27

678,350

■

133

106

INSTITUTE
INSURANCE —Month ot
Nov.

LIFE

OF

PRICES

Jan. 12
Jan. 12
Jan. 12

181

131

104

"

————

—

Ordinary

Total

purchases)—

orders

Number of

128

179

103

•

_

—

INSURANCE

Personal

ACCOUNT OF ODDON THE N. Y. STOCK

523.3

$136,825,000

values

dividends

Policy

Total

STOCK TRANSACTIONS FOR THE ODD-LOT

464.1

175

.

Annuity payments

Less

146.6

145.9

Jan. 25

100

9,376,003

438.7

—

insurance

AVERAGE

20,730.003

8,486,000

November:

of

payments

Other

OIL,

23,149,009

20,519,000

December:

endowments

-Surrender

705,371

333,224

405,521

392,482

23,124,000

1047-1949

—

Wage
NATIONAL PAPERBOARD
Orders received (tons)

23,152,000

20,264,000
7,823.000

FEDERAL

DISTRICT,

100—Month

(DEPARTMENT

COMMODITY INDEX

315.1

SALES—SECOND FED¬

BANK
=

of November

MOODY'S

*335.8

—,——

place on Dec.

in

MANUFACTURERS'

—

A

326.4

(DEPT. OF COMMERCE):

Total

\

$21,044,000

benefits

24.200c

DAILY AVERAGES:

YIELD

BOND

$17,567,000

PAYMENTS TO
POLICYHOLDERS —INSTITUTE OF LIFE

(DEPT.

MOODY'S

3,205,000

$19,403,000

INSURANCE—BENEFIT

LIFE

27.425c

'

4,748,000

952,000

COMMERCE

OF

unadjusted
——
seasonally adjusted

Stocks,
Stocks,

24.200C

Jan. 29
Jan. 29
Jan. 29

i

Railroad

4.131c

27.425c

Jan. 29

,

Aaa
i

4.131c

18.800c

5,479,000

1,874,000

(average

24.200c

"

Aa

4.131c

Jan. 29

.

Average corporate

4.131c

'19.500c*

2,260,000

•

(1935-

INC.

ol' Jan. 16

as

RESERVE

24.200c

Jan. 23
Jan. 23
Jan. 23
._Jan. 23

$5,352,000

3.740,000

December———

INSURANCE--Month

at

(New York)

$6,158,000

monthly), unadjusted
(average daily), unadjusted
(average daily), seasonally adjusted—

Sales

Death

Jan. 23
Jan. 23

6T

679

COMMODITIES

OF

of

STORE

DEPARTMENT

QUOTATIONS):

Electrolytic copper—
Domestic refinery at
Export refinery at

48

587

2,251.000

active 011 Dec. 29—
—
spindle hours, (QOO's omitted) Dec.—
spindle hrs. per spindle in place Dec.

Sales

COMPOSITE PRICES:

Finished steel (per lb.)

48

612

4,369,000

Spinning spindles
Active

Sales

IRON AGE

n

330

68

2,348,000

•_

BRADSTREET,

&

GINNING

COTTON

6,969,566

163

158

58

307

5,177,000

liabilities,—

service

AVERAGE
142

149

3,586,000
—.

PURCHASES

ERAL

BRAD-

&

106

.

$6,515,000

—

—

liabilities

RESERVE

(COMMERCIAL

FAILURES

$58,95%

—

-

,

liabilities

CONSUMER

Active

EDISON

$70,008

296

liabilities

Total

301

657

*265

259

Jan. 19

17,70%

$69,880

71

number

liabilities

Spinning spindles
STORE

TEM— 1935-39 AVERAGE =5 100

$32,249
9,003

18,545

131

:

COTTON SPINNING

DEPARTMENT

*10,109

18,408

66

service

Commercial

69,900,000

(U.

coal

*$41,354

10,010

of December:

1939=100)—Month
OUTPUT

$41,462

number

—DUN

COAL

6,256)

number

Construction

RECORD:

Private

...

number

Manufacturing

ENGINEERING NEWS-

Total U. S. construction

6,812

number

Wholesale

CTVIL

6,28&

Nov.

number

Total

731,540

599,893

648,220

Ago

779,750

671,622

742,757

747,662
676,675

Yeat

Month

BUSINESS FAILURES—DUN & BRADSTREET,

26,892,000

87,847,000

Commercial

Jan. 19
Jan. 19

of

Total

ASSOCIATION OF.AMERICAN RAILROADS:

freight loaded (number of cars)
Revenue freight received from connections (number of cars)

Month

—

''I

Construction

Revenue

Previous

Month

COM¬

OF

___

22,628.000

43,307,000

DEPT.

Retail

75,586,000
40,944,000

of that date:;

BRAD ST RE ET,

November—

SERIES

NEW

are as

Latest

THE

IN

Manufacturing

Stocks at refineries, at bulk terminals, in transit and in pipe lines—•
Finished

either for tfcgj

are

(millions of dollars):

6,051,350

6,205.800

6,178,400

6,196,500

19
Jan. 19
Jan. 19

Distillate fuel oil output (bbls.)
Residual

19
19
19

(NEW)

&

INVENTORIES,

MERCE

—

gallons each)

of quotations,

cases

STATES—DUN

INC.—Month .of

2,025,000

2,039,000

in

or,

INCORPORATION

BUSINESS

AMERICAN

the?*

production and other figures for

cover

Dates shown in first column

month available.

or

37

u

u

Business-Activity
AMERICAN IRON AND

(505)

The Commercial and Financial Chronicle

.

.

stock;.—

income

J'fWoen

——

stock
to .fixed charges..

'
— -

2

3.87

15,356,194

17,794, 309

91,080,834
4,653,008

152,253 ,938
4,036 ,865

86,427,826

53,3.$4:711
3,109,724

148,217, ,078
111,031, ,77G
3,272 ,3290

50,254,987

107,759, 447

40.5)00,933

36,470 ,703>

4,386,012
52,551,476

86,904, ,3QJ

-11,386,349

14,065,088

1,580,832

12,232,312

2.61

3.99

*

1,279 ,513

38

Chronicle

The Commercial and Financial

(5C6)

.

.

Thursday, January 31, 1952

.

ADDITIONS

* INDICATES

Now

Securities

1

penses.

Registration

'

Orlando, Fla.
Dec. 19 (letter of notification) 11,100 shares of common
stock (par $10). Price — $27 per share. Underwriter —
Guardian
Credit Corp., Orlando, Fla.
Proceed — For
purchase of securities.
Office — American Building,
Fire & Casualty Co.,

Orlando, Fla.

ic American Tractor Corp., Churubusco, Ind.
Jan. 25 (letter of notification) 60,000 shares of common
stock (par $2). Price—$5 per share Proceeds—For work¬
ing capital. Underwriter—None.

1952

January 31,

(par $5). Price — At market (approximately $27
share). Proceeds—To G. J. Mueller, the selling stock¬
Underwriter—Carl H. Pforzheimer & Co., New

•

Common

Common

Common

Monsanto Chemical Co

Texas

&

Weeks;

Common

—

Common

'

of

Oil

Pierce & Co.)

New

Common

Corp

Common

Corp.

Basic

(Carl

for each five shares held.

writer—None.

(Bids

per share.
Under¬
Eells, Jr., President,

H. P.

11

Bonds

to

Manufacturing Co., Burlingame, Calif.
notification) 85,000 shares of capital
stock (par $1), of which 10,000 shares are to be offered
first to stockholders and 75,000 shares offered publicly.
Price—$3 per share. Underwriter—None, but Da vies &
Co., San Francisco, Calif., acts as agent. Proceeds—To
retire debt and for working capital. Office—1285 Rollins
Road, Burlingame, Calif.
(letter of

Brooks &

&

Inc.;

and

Cinerama, Inc.

St., Detroit 16, Mich.

(3)

convertible pre¬
be
supplied by

Underwriter—Kidder, Peabody & Co., New
additions

and

Offering date

772,240 shares of

common

improvements

to

postponed.

(par 10 cents),
plan of recapital-

^5^nation)
for presently outstanding stocks
each
bond,

one

of

7%

preferred

stock

as follows: For
One $100 5%

held,

share of 5% preferred stock and

one

share of

10-cent par common
stock; and for each share of $5
par common stock held, 50 cents of the new stock.
Un¬
derwriter—None.

★ Calhoun City Telephone Co., Inc.,
Calhoun City, Miss.
(letter of notification) 6,000 shares of common
(par $10), of which 2,500 shares will be offered
to the public at par and
3,500 shares will be offered

for all of the presently outstanding stock

*

City Telephone Co. Inc. Proceeds—To meet
of

REA

loan.

' ;

Underwriter—none.

17

f

Common

Jan. 24

"

rights

?"■>

Crusader

t

Jan. 16

,

Delaware Power & Light Co

Preferred
EST)

Preferred

^

Higginson Corp.;

W., Brooks

P.

& Co.)

(Bids

to

March

1, 1952
United States National Bank,
Portland, Ore.

Common

(Probably Blyth & Co., Inc.; Merrill Lynch, Pierce,
Fenner

&

Underwriters

E. Hutton & Co. Pro¬
for construction pro-

gram.

ir Dayton Rubber Co., Dayton,
30

O. (2/19)

85,000 shares of common stock (par 50£).
be supplied by amendment.
Proceeds—For

filed

Price—To

Underwriter—Lehman Bros.. New York.

stock
Proceeds—For new construction and to repay
Underwriters—To be determined by com¬
petitive bidding. Probable bidders: Lehman Brothers;
W. C. bSftgley & Co.; White, Weld & Co. and Shields &
Co. (jointly); Morgan Stanley & Co.; Blyth & Co., Inc.
Bids—Tentatively expected to be received up to noon
"/v-4
(EST) on Feb. 26.
Diesel-Power Corp., Pittsburgh, Pa.
Jan. 10 filed 475,000 shares of common stock to be of¬
fered first to holders of preferential rights for a limited
time. Price —At par
($1 per share). Underwriter —
Graham _& Co., Pittsburgh, Pa. Proceeds—For develop¬
(par $100).

loans.

bank

invited)

be

Feb. 15. Price—$32 per share.

ic Delaware Power & Light Co. (2/26)
Jan. 29 filed 50,000 shares of cumulative preferred

Equip. Trust Ctfs.

j

on

Working capital.

Chicago, Milwaukee, St. Paul &
Pacific RR.

/

Jan.

Erie Forge & Steel Corp
(Lee

expire

—Morgan Stanley & Co. and W.
ceeds—To repay bank loans and

Bonds

CST)

stock (par $71

being offered to common stockholders of record Jan. 28
on basis of one share for
each nine shares held; rights

*

Central Illinois Electric & Gas Co

.

^ ;■

Dayton Power & Light CO.
Jan. 8 filed 256,007 shares of common

invited)

noon

Colo.

•

to

(Bids

Denver,

Colorado.

Corp.)

a.m.

Corp.,

(letter of notification) 2,000,000 shares of capital
cents per share.
Underwriters J. .W>

& Co., Denver Colo.
Proceeds—For drilling/jaiwfc
development: Office—1717 East Colfax Ave.. Denver 6,

February 26, 1952
10:30

Feb.

Hicks

.Common
'/

------

(Eids

on

Price—15

stock.

February 20, 1952
Equip. Trust Ctfs.
to be

expire

to

.

..Common

(Bids

N. Y.
4,751 shares of capital

25/ Price—$3.75 per share.
Proceedsr^-For .working
capital.
Office—305 East 45th St., New York 17, N. Y.

;

Otis^d#v

Koppers Co., Inc...

Southern Ry.

Inc.,

of notification)

Underwriter—None.
Zt-

Brothers)

Boston

(letter

(par $1),'to be offered to stockholders of- record
at rate of 1 new share for each 20 shares held;/

stock

:—

(First

Laboratories,

Crookes

.

February 19, 1952
(Lehman

Underwriter—None.

poses.

Beane;

il l ^ -Debentures

Dayton Rubber Co

stock

conditions

/.

February 28, 1952

Jan. 25

of Calhoun

19$2t

-r._

new

1

Fenner &

& Co.)

February 18,

stock

all to be offered in exchange (under a

share

Davis

H.

(Gearhart, Kinnard &

* Bush Terminal Buildings Co., N. Y.
Jan. 25 filed (1) $5,527,800 of 5% general mortgage 30year income bonds due 1982; (2) 55,278 shares of 5%
cumulative convertible prior preferred stock
(par $50);
and

Pierce,

Lynch,

Webber, Jackson & Curtis)

(Paul

Burlington Mills Corp.

equipment.

Co.)

Underwriter—Tellier & Co., New York.

financing

.Jan.

1950 West Fort

Proceeds—For

Merrill

Paine,

Keller Tool Co

and

&

(par 7V2 cents).

construction of an agricultural nitrogen
be constructed and operated through a
subsidiary, The Cooperative Farm Chemical Association,
and the remaining $4,000,000 to be added to general
funds of the Association and used for all corporate pur¬

Common

Co.,

(letter of notification) 25,511 shares of common
(par $1). Price—$4.25 per share. Underwriter—
Watling, Lerchen & Co., Detroit, Mich. Proceeds — To
construct and equip a magnesium
rolling mill. Office—

plant

Allen

Corp.;

Oliver Corp.

stock

York.

Securities

Webster

stock

fixation plant to

February 13, 1952
(Blyth

r

*

(letter of notification)

22

mon

in

/

Common

February 14, 1952

Jan. 2

amendment.

1952

February 8,

Perkins, Inc., Detroit, Mich.

March 5, 1951, filed 300,000 shares of
ferred
stock
(par $100).
Price—To

Common
& Co.,;

& Co.; Lazard Freres
White, Weld & Co.)

Sachs

Central Illinois Electric & Gas Co.__
&

1,359

ic Consumers Cooperative Association,
Kansas City, Mo.
Jan. 24 filed $3,000,000 of 10-year 4V2% certificates of
indebtedness and $5,000,000 of 20-year 5V2% certificates
of indebtedness. Proceeds—$4,000,000 to be used, to aid

1952

February 7,

Owens-Corning Fiberglas Corp.

(Stone

-

shares of common stock (no par}
$12.75 per share). Underwrites
Proceeds—To certain selling stockholders.

filed

Jan.

Utah.

stockholders)

common

Benbow
7

.

357,000 shares of com¬
Price — 42 cents per share;
-Proceeds—To pay outstanding production notes and for
working canital. Office—522 Felt Bldg., Salt Lake City,

Common
Preferred

(Goldman,

.

York

Consolidated Uranium Mines, Inc.

Alstync Noel Corp.)

(Van

who is the selling stockholder.

—None.

EST)

a.m.

Servomechanisms, Inc.

Price—$10

Proceeds—To

Preferred

Pennsylvania Power Co

(Offer

New York, N. Y.

Pictures Corp., New

Loeb, Rhoades & Co.)

M.

Spear & Co

Refractories, Inc., Cleveland, Ohio

$200,000 of debentures
and $1,000 each). Price—
Underwriter—Israel & Co.
working capital.
Office—

Price—At market (about

Merritt-Chapman & Scott Corp.-—

Jan. 2 filed 63,585 shares of common stock (par $1) to
be offered to common stockholders at rate of one share

Dec.

26

Dec.

Higginson Corp.)

(Lee

Co., Inc., Napa, Calif.
Jan. 10 (letter of notification) 12,000 shares of common
stock (par $1). Price—$8.25 per share.
Underwriter—
Dean Witter & Co., San Francisco, Calif. Proceeds—To
A. G. Streblow, the selling stockholder. Office—Eighth
and River Sts., Napa, Calif.

Corp.

Proceeds—For

Columbia

pic¬
Inc.,

of notification)

principal amount.

York.

f

Basalt Rock

Commercial

(letter

1440 Broadway,

Bonds

10:30 a.m. CST)

(Bids

of

New

CST)

noon

Louisville Gas & Electric Co

Marathon

capital.

80%

Equip. Trust Ctfs.

Illinois Central RR.___
(Bids

10

denominations of $300

(in

1952

February 5,

York, on a

Jan.

r
■

Underwriter

Coastal

(Aigeltinger & Co.)

recording and projecting motion
— Gearhart,
Kinnard & Otis,
"best-efforts basis."

photographic

tures.

Debentures

(Rauscher,

debentures due
Proceeds—For

production and exhibition equipment. Business—Exploi¬
tation of the so-called "Cinerama Process," a new method

& Co.)

Industries, Inc
Canadian

1957.

Webber, Jackson & Curtis)

Paine,

(2/18-19)

Inc., New York

$1,000,000 of 5% convertible
Price—100% of principal amount.

Jan. 29 filed

Raytheon Manufacturing Co.,
(Hornblower

bank

Co. Inc.;

ic Cinerama,

& Co.)

Lines, Inc

Proceeds—For

loans. Underwriter—To be determined by
bidding. Probable bidders: Halsey, Stuart
The First Boston Corp., Central Republic Co
(Inc.) 'and Harris, Hall' & Co. (Inc.) (jointly); Smith
Barney & Co.; Harriman Ripley & Co., Inc. Bids—Ex¬
pected up to 10:30 a.m. (CST) on Feb. 26.

Peabody & Co.)

Fenner & Beane; Kidder,

Barney

1982.

Co. (2 26)

$4,000,000 of first mortgage bonds, series
construction program and to

filed

23

due

repay

Maine Public Service Co

(Smith,

Illinois Electric & Gas

Central

Jan.

&

Kansas-Nebraska Natural Gas Co., Inc
Common
(Cruttenden & Co.; First Trust Co. of Lincoln, Neb.)

(Merrill Lynch, Pierce,

construction

competitive

February 4, 1952

United

Arizona Mining Corp. (Del.)
"Dec. 28 (letter of notification) 294,000 shares of class A
capital stock, of which 194,000 shares will be sold by
company and 100,000 shares by New Jersey Loan Co.
Price—At
par
($1 per share).
Underwriter—W. C.
Doehler Co., Jersey City, N. J. Proceeds—For new mill,
tunneling and core-drilling expenses and working

..Preferred

William N. Pope, Inc.)

Read & Co.)

(Dillon,

about Feb. 21
Dealer—Man¬
and Allen &

Co., both of New York. Proceeds—For new
and to repay bank loans.

Southwestern Public Service Co

holder.
York.

,

February 1, 1952
Federal Loan Co. of Pittsfield, Inc..

stock
per

Eq. Trust Ctfs.

(Bids noon CST)

(Cruttenden

3,000 shares of common

(letter of notification)

oversubscription privilege; rights to expire
Price—To
be supplied
by amendment.
agers—Stone & Webster Securities Corp.

*

Chicago & Eastern Illinois RR

i( Argo Oil Corp., Denver, Colo.
21

(2 8)

Co.

Electric & Gas

shares of common stock (par $15) to
be offered to common stockholders of record about Feb
8 at rate of one share for each 10 shares held with an

NEW ISSUE CALENDER

Pioneer Air

Jan.

ISSUE

PREVIOUS

ITEMS REVISED

Jan. 18 filed 64,000

iSimon, Strauss & Himme and

American

Illinois

Central

Jlec. 28 filed 850,000 shares of common stock (par 10c)..
Company will offer stockholders who purchased 10,327
shares under an earlier registration statement at $3.50
per share who desire to rescind the transaction, to cancel
the transaction and refund $3.50 per share, or to refund$1.50 per share to those desiring to retain the stock.
Price—$2 per share. Underwriter—None. Proceeds—To
repay loans and other liabilities and for exploration ex¬

"

in

Ltd., N. Y.

Uranium Co.,

American-Canadian

SINCE
•

Beane)

.

March

Central Power

4, 1952
Light Co

&

(Bids

to be

~

Bonds

invited)

March 18, 1952
Interstate

Power Co..-_
(Bids

Bonds

to

Metropolitan Edison Co
(Bids

(Bids

»

Philadelphia

Pittsburgh

San Francisco

Chicago

Cleveland

West

Penn

invited)

1952

Co...

(Bids

Private IVires




to

all

offices

to

Bonds
be

invited)

and working capital.

Jan.

24 tiled

York

1,500,000 shares of special stocks 23 series.
Proceeds—For investment. Under¬

market.

writer—Hugh W. Long & Co.,
Bonds

to be

col-its

'Price—At

1952

April 1,
Power

ment

Diversified Funds, Inc., New

Bonds & Preferred

March 25,

Boston

Common

EST)

noon

Southern California Gas Co

New York.

&

invited)

be

Inc., New York.

Corp., Erie, Pa. (2 26-27)
Jan. 28 filed (by amendment) 200,000 shares of 3% con¬
vertible preferred stock (par $10). Price—To be supplied
•

Erie

Forge & Steel

by amendment.

Underwriters—Lee Higginson Corp. and

Co., Inc."/ both of New York. Proceeds—
retire- outstanding 5% first preferred stock at par

P. W. Brooks &

To

($100

per

share) and for general corporate purposes.

Volume 175

Number 5086

i

.

.

The Commercial and Financial Chronicle

.

★ Federal Loan Co. of Pittsfield, Inc. {Z/Xy^.K\
21.'(letter of notification) a maximum of- 14,814

Jan.

shares
be

of

$1.20

offered

cumulative

stockholders

to

negotiable

stock

■

<

will

be

of

stock

record

(no

Jan.

Unsubscribed

warrants.

publicly offered
fered

preferred

.Jan. 22, rights to expire on Feb. 6.
Price—$26.50 per
share. Underwriters—The First Boston Corp. and Blyth
&

par) to
through

28

shares

to

aggregate

so

price

will

★

be

■

and

2,003,792

2,003,792

(for

•stockholders at 75 cents per share
a

basis of

one

new

(par $1)

(Canadian funds)

share for each two shares held.

funds)

per

'003,792 shares.
the

★

on

warrants.

Sub¬

Unsubscribed shares will be offered by

price and carrying the
drilling program.

same

Proceeds—To

finance

Un¬

Corp., Miami, Fla.

.For

use in small loan subsidiary branches.
Biscayne Blvd., Miami, Fla.

Office—440

convertible preferred stock, series A.
Price—At
($10 per share).
Underwriter—First Investment
Co., Los Angeles, Calif. Proceeds—For working capital.
Office—3301 Fruitland Road, Los Angeles 58, Calif.

($1

New

York.

shares of

share).

per

exploratory oil and

share for each

10 class A

24

★

common

of

rate

shares

1

held, with

*

'

-

Proceeds

Walnut

—

St.,

To

Salle St.,

to

share).

per

Proceeds—To

Mrs. M. K. Pollard, the
Underwriter—Thomson & McKin-

New York.

non,

.

17

Corp.

of notification) 7,600 shares of class A
stock, 20,000 shares of class B common stock

and

20.000 shares of preferred stock.
Price—At par
($5 per share). Underwriter—None. Proceeds—For ex¬
pansion and working capital.
Office—1621 Nostrand
Ave., Brooklyn, N. Y.
■
vt

★ Hull
Jan.

(A. E.)

23

Price

—

Pottery Co., Crooksville, Ohio
(letter of notification) $250,000 of debentures.
At par (in denominations of $100 each.
Pro¬

ceeds—To
bentures

retire
and

some

of

purchase

the

some

presently outstanding de¬
of the outstanding stock.

Underwriter—None.

'".h?

c/p- Lee Crouch, 424 11th Street, Rockford,

Ill^Under-

writer—None.
★

Independent Exploration Co., Bakersfield, Calif.
Jan. 17 (letter of notification) $38,000
aggregate-amount
of shares of common stock
(par 33'% cents).
It had
previous been erroneously reported that 114,000 shares
been

per

share).

filed.

Price—At market (approximately $14
Proceeds—To L. W. Saunders and L. R. Sea-

selling stockholders.

two

^man,
»

Ave., Bakersfield, Calif.
Kansas
Jan.

3

filed

Office—531

California

Underwriter—None.

317,792

one

stock
or

(par $10)

about Feb.

4,

—

To repay

bank loans and for

new

construction.

★ Managed Funds, Inc., St. Louis, Mo.
Jan. 25 filed 2,500,000 shares of capital stock.

shares

of

common

At

share for each six




common

(no par),

stockholders

shares held

on

Proceeds—For production of films for

53rd

television

20

—

Street, New York, N. Y.

& Co., Inc., St. Paul, Minn.

(A. A.)

(letter of notification) 5,000 shares of 5V2%

prior

Proceeds—For

market.

Marathon

Price—To

Price—

Underwriter—

investment.

Corp., Rothschild, Wis. (2/5)
shares of common stock (par $6.25).

be

Piper, Jaffray & Hopwood, Minneapolis, Minn.
•

Britain Machine Co.

New

Jan.

filed

2

supplied

by

Underwriter—

amendment.

70,000

shares of

common

*

on Feb. 29. Price—$20 per share.
Underwriter—
Proceeds—For working capital. Business—Manu¬

expire
None.

oft multiple

facture

spindle automatic
21.

Mohawk

Niagara

Corp.

Power

shares of class A stock (no paty?
Price—At current market prices on the New York Stock
filed

17

Jan.

20,196.1

Underwriter

Exchange.

—

None.

III.

Price—To be supplied
by amendment. Underwriters—Glore, Forgan & Co. and1
Lee Higginson Corp., New York.
Proceeds—To retire
bank loans.
Offering—Indefinitely postponed.
stock

(par $100).

McKay Machine Co., Youngstown, Ohio
14 (letter of notification) 6,399 shares of-common
stock (no par), to be offered to common stockholders of
record Jan. 31 at rate of one share for each ten shares
held; rights to expire on March 17.
Any unsubscribed
shares will be offered to employees.
Price—$25 per
share.
Underwriter—None.
Proceeds—To pay for plant

Office—767 West Fed¬

by amendment.
Proceeds — To reduce shortbank loans from $17,500,000 to $12,500,000. Business

supplied
term

equipment.
Underwriters—Blyth & Co.,
Lynch, Pierce, Fenner & Beane and Paine,

—Farm

Dec.

17

Petroleum Co.,

Fiberglas Corp. (2/7)
shares of common stock (par $5), of
which 450,000 shares to be issued by the company and
180,000 shares are to be sold in equal amounts by OwensIllinois Glass Co. and Corning Glass Works. Price—To
Owens-Corning

supplied by amendment.
Underwriters — Goldman,
& Co,;. Lazard Freres & Cp-L 3dd White, Weld &

be

Sachs

L£o. Proceeds—For working capital,
other

vand
•

corporate

(letter of notification) 4,000 shares of common

(par $1).

Price

—

Merritt-Chapman & Scott Corp. (2/5)
15 filed 100,000 shares of cumulative convertible

Jan.

preferred

stock

amendment.
New York.

(par $50).. Price—To

be supplied

by

Underwriter—Carl M. Loeb, Rhoades & Co.,
Proceeds—For expansion program.

Metals & Chemicals

Beer

capital expenditures
"

purposes.

**;'•

-

Pacific Gas & Electric Co.

redeemable first pre¬
being offered to em¬
ployees. Price—$24.50 per share, of which $23.50 per
share is to be paid through payroll deductions under the
Employees' Stock Purchase Plan. Underwriter—None.
Proceeds—For new construction.
Statement effective
Dec. 26 filed

ferred

163,986 shares of 5%

stock,

series A

(par $25)

Jan. 22.

•

*

.

Peabody Coal Co.
March 26 filed 160,000 shares

-

-

of 5Y2% prior preferred

(par $25).
Price —To be supplied by amendment
Underwriter—A. C. Allyn & Co., Inc., Chicago, 111. Pro¬

stock

Offering—Indefinitely

r

Pennsylvania Power Co. (2/5)
■
4 filed $6,000,000 of first mortgage bonds Feb;-!,
1982. Underwriters—To be determined by competitive

•

Jan.

bidding.

Probable bidders: Halsey,

Stuart & Co. Inc.;

M. Loeb, Rhoades & Co. and

Kidder, Peabody & Co.; Carl

(jointly); Salomon Bros. & Hutzand R. W. Pressprich &
(jointly); Stroud & Co., Inc. and Drexel & Co. (joint¬
ly); Merrill Lynch, Pierce, Fenner & Beane. Proceeds—
From sale of bonds, and from sale to parent, Ohio Edi¬
son Co., of 80,000 shares of common stock for $2,400,000,
to be used for Pennsylvania's construction program. Bids
—To be received up to 11 a.m. (EST) on Feb. 5 at office
of Commonwealth
Services. Inc., 20 Pine St., New
York 5, N. Y. Statement effective Jan. 25.

Blair, Rollins Co., Inc.

Peoples Finance Corp., Montgomery, Ala. ,
19 (letter of notification) 15,000 shares of common

Dec.

stock

ness.

•

(par$l). Price—$3 per share. Underwriter—Carl¬
Birmingham, Ala. Proceeds—To expand busi¬
Office—5 South Court St., Montgomery, Ala.

& Co.,

son

29

filed

(2/4-9)

Lines, Inc., Dallas, Tex.

Pioneer Air

Nov.

120,000 shares of common stock

(par $1).

Underwriter—Cruttenden & Co.,
111. Proceeds—To purchase new equipment. Of¬

Price—$12 per share.

fering—Expected week of Feb. 4.

Inc.

At market (approximately 65
cents per share). Underwriter—Akin-Lambert & Co., Los
Angeles, Calif. Proceeds—To R. Wayne Hudelson, the
selling stockholder. Office—639 So. Spring Street, Los
Angeles 14, Calif.
stock

Inc.,
Web¬

Jan. 18 filed 630,000

Chicago,

St., Youngstown, Ohio.

Merchants

Price—To be

held; rights to expire on Feb. 27.

shares

★

Jan.

expansion and new equipment.

To United

• Oliver Corp., Chicago, III. (2/13)
171,090 shares of common stock (par $1) to
be offered for subscription by common stockholders of
record Feb. 13 on basis of one new share for each five

Co.

Co., Chicago,

—

Jan. 24 filed

ler; Equitable Securities Corp.

Higginson Corp., New York. Proceeds—To be added
general funds to be used for expansion. Business—
Manufacturer of paper and paper machines.
&

Proceeds

Corp., the selling stockholder.

to

Field

machines,

screw

Statement effective Jan.

etc.

Lee

Marshall

(no par)

sthock

being offered to common stockholders of record Jan. 18
at rate of one share for each two shares held; rights

oostponed.

Slayton & Co., Inc., St. Louis, Mo.

stock
stock

common

None.

presentation and general working capital. .Office

ceeds—For construction program.

Corp., Dallas, Tex.
notification) 100,000 shares of common
(par 10 cents). Price—$3 per share. Underwriter—
& Co. and Binford, Dunlap & Reed, both of Dallas,

Nov. 26 (letter of

City Power & Light Co.

being offered for subscription by
.at rate of

on

oversubscription privileges; rights to expire about
Feb. 25.t Price—To be supplied by amendment. Underwriters
Merrill Lynch, Pierce, Fenner & Beane, and
Kidder, Peabody & Co., both of New York. Proceeds—

eral

★ Income Indemnity Insurance Co., Rockford: III.
Jan. 22 (letter of notification) 100,000 shares of
capital
stock (par $1).
Price—$3 per share. Proceeds—for or¬
ganizational expenses and working capital. Address—

had

share for each five shares held

ible preferred

(letter

common

(2/4)

common

Dec. 19 filed 150,000 shares of 4Vz% cumulative convert¬

Herbert Helmus-Hardware
Jan.

Co.

Jan. 15 filed 400,000

.

$18

Service

35,000 shares of

with

•

Mining Co., Wallace, Ida.
I Jan. 17 (letter of notification) 3,000 shares of capital
stock (par 25 cents). Price—At market (approximately
selling stockholder.

Public

filed

Statement effective Jan. 25.

bg; offered first to common stockholders at rate of

one

Hecla

.

15

5

selling stockholders.
Office —1017
Des Moines 9, la.
Offering—Temporarily
\

Chicago 4, 111.

Maine
Jan.

six

delayed.

filed

9

Inc.; Lehman Brothers and Blyth &
Co., Inc.
(jointly); The First Boston Corp. Proceeds—For prop¬
erty additions.
Bids—Expected to be received up to
10:30 a.m. (CST) on Feb. 5 at Room 1100, 231 So. La

•

stock.

ber, Jackson & Curtis.

Co.

Hawkeye-Security Insurance Co.
Nov. 5 (letter of notification) 2,000 shares of 5% cumulative preferred stock (par $50). Price—At market (currently $50 per share).
Underwriter—Quail
& Co..
Davenport, la., and Becker & Cownie, Des Moines, la

*

& Hoverson Co.

Electric Co.
(Ky.) (2/5)
$12,000,000 of first mortgage bonds due
1, 1982. Underwriters—To be determined by com•petitive bidding. Probable^bidders: Halsey, Stuart &

an

oversubscription privilege; rights expire on Feb. 4.
Price—At par ($5 per share).
Underwriter—Company
and Jackson & Co., Inc., Boston, Mass.
Proceeds—To
finance military contracts and for working capital.

(A. J.)

be

Feb.

preferred

Y.

N.

Inc.,

Television,

(letter of notification) 299,000 shares of common
Price—At par ($1 per share).
Underwriter—

Merrill

Louisville Gas &

Jan.

share for each 34 shares

at

by amendment. Proceeds—For
Underwriter—The
First
Boston

program.

112,500 shares of common stock (par $1).
supplied by amendment. Underwriter—
Sills, Fairman & Harris, Inc., Chicago, 111. Proceeds—
To eight selling stockholders.
Offering—Date indefinite.

Gyrodyne Co. of America, Inc., New York
17 (letter of notification) 25,680 shares of
6$, con¬
vertible preferred stock, to be offered first to commonJan.

Keystone

supplied

Lindemann

.Jan.

record

be

Price—To

derwriter—None.

of

Underwriter—The

Nov. 28 filed

held; unsubscribed shares to be offered publicly. Price
—$45 per share.
Proceeds — For capital and surplus
„funds.
Address—P. O. Box 1771, Dallas, Texas.
Un¬

stockholders

investment.

Corp., New York.

★ Gulf Insurance Co., Dallas, Tex.
21 (letter of notification) 5,000 shares of common
stock (par $10) to be offered for subscription
by comone

Funds, Inc., Boston, Mass.
filed 100.000 shares, series B-l; 25,000 shares,
S-3; 50,000 shares, series S-2; 25,000 shares, series
and 50,000 shares, series B-2. Price—At market.

28

expansion

for

stockholders at rate of

equipment, and the balance for working
Underwriter—Paul H. Davis & Co., Chicago, 111.

Price—To

Jan.

;mon

gas

Jan. 29

Proceeds—To liquidate indebted¬
expansion. Address—P. O. Box 1568, Al¬
buquerque. N. M. Underwriter—None.

-

common

share). Proceeds—to drill
well. Office—218 East First

per

★ Koppers Co., Inc., Pittsburgh, Pa. (2/19)
filed 250,000 shares of common stock (par $10).

drilling expenses, repaymeni
working capital. Offering—Date not

Price—At par.

and

($1

Co. of Boston.

Price-

★ Great Western Mining Co., Albuquerque, N. M.
23 (letter of notification) 25,000 shares of common
"stock (par $5) and 1,250 shares of preferred stock
(par
ness

Price—At par

Proceeds—For

stock.

common

International

Moore
Dec. 5

porarily postponed.

K-2;

Jan.

$100).

Trecker, the selling stockholder.
Ave., West Allis 14, Wis. Tem¬

added

general funds to be used for expansion of plant facil¬
ities.
Offering—Expected early in February.

to

preferred stock, 1947 series.
Price—At par ($50 per
share). Proceeds —To pay bank loans. Underwriter —

series

Underwriter—George F. Breen

Smith, Barney & Co., New York. Proceeds—To be

Jan. 23

Jan.

Proceeds—For

of advances and

J.

★ Keystone Custodian

Golconda Mines Ltd., Montreal, Canada

Price—To

• Murphy

Francis

(2/4)

Louis, Mo.

400,000 shares of common stock (par $3?.
be supplied by amendment.
Underwriter—

16 filed

Office—6784 W. National

property and

lative

Monsanto Chemical Co., St.

ceeds—To

capital.

cumu¬

•

Jan.

East

$14 per share). Proceeds—To reimburse the company in
the amount of $574,825 for expenditures made for plant,

Manufacturing Co., Los Angeles, Calif.

(letter of notification) 30,000 shares of 6%

par

construction and to retire bank loans.

Jan.

■par

At

new

★ Keller Tool Co., Grand Haven, Mich. (2/14)
25 filed 86,750 shares of common stock (par $5).
Price—To be supplied by amendment (expected around

>

-April 9 filed 750,000

&

St., Long Beach 2, Calif. Underwriter—None.

(letter of notification) 75,000 shares of common
stock (par $1).
Price — $4 per share. Underwriter—
.George R. Holland Associates, Miami, Fla. Proceeds—

,

4

(par $3). Price—$17 per share.
Underwriters—
Blyth & Co., Inc., and Robert W. Baird & Co., Inc. Pro¬

stock.

.Dec. 29

Given

Feb.

Kearney & Trecker Corp., West Allis, Wis.
(letter of notification) 5,800 shares of common

an

Jan. 7

(par $5) to

about

★ Keck Oil Co., Long Beach, Calif.
Jan. 24 (letter of notification) 185,000 shares of

same

derwriter—None.

General Credit

stockholders

common

mining equipment and working capi¬

tal., Offering—Originally scheduled for Dec. 5, but de¬
ferred temporarily.
Corporation is considering increas¬

(2/4)

stock

one

at the

company

to

install mill and for

39

ing its financing and is now preparing a full registration
statement which is expected to be filed about March 14.

Co., Inc.

Dec. 26

for each share subscribed, a war¬
additional share at $1.25 (Canadian
share until June 1, 1953, or an additional 2,-

purchase

Gas

14-da,y standby) at rate of one share for each 10
held.
Price—$20 per share.
Underwriters—

a

Proceeds—For

scribers will receive,
rant to

Natural

Co., Chicago, 111.; The First Trust Co. of
.Lincoln, Neb.; Harold E. Wood & Co., St. Paul, Minn.;
Beecroft, Cole & Co., Topeka, Kan.; Rauscher, Pierce &
Co., Dallas, Texas, and United Trust Co., Abilene, Kan.

to

are

first

Cruttenden

stock purchase warrants of which
be offered to present common

common

shares

stock

common

offered

shares

★ Fenimore Iron Mines Ltd., Toronto, Canada
4,007,584 shares of

Kansas-Nebraska

be

expire Feb. 20. Price—To stock¬
holders, S20.25 per share; and to public, $21 per share.
Proceeds—To expand
buisness.
Underwriters—Simon,
Strauss & Himme, New York; and William N. Pope, Inc.,
Syracuse, N. Y.

25 filed

Proceeds—To repay bank loans

Jan. 14 filed 77,355 shares of common stock

less

than $300,000); rights to

Jan.

Co., Inc., New York.

and for construction.

be

(in which event number of shares of¬

reduced

(507)

Tex.; Carlson & Co., Birmingham, Ala., and Stuart Wyeth
& Co. of Philadelphia, Pa. Proceeds—To purchase and

Co., Blair, Neb.
notification) $80,000 of 4V2% first
mortgage bonds, series A, due Feb. 1, 1972 (in denomi¬
nations of $1,000 each).
Price—At 102%. Proceeds—
Public Telephone
18- (letter

Jan.

of

construction and corporate purposes,.

For

•

Underwriter—

Neb.

Wachob-Bender Corp., Omaha,

Raytheon Manufacturing Co. (2/4)
17 filed 434,189 shares of common stock

Jan.
to

be

offered

first

Feb. 4 on a basis

of

to

(par $5)

stockholders of record
share for each four shares

common

one new

held; rights will expire on Feb. 18. Price—To be sup¬
plied by amendment. Underwriters — Hornblower &
Weeks and Paine, Webber, Jackson & Curtis.
Proceeds
—To be added to working capital and used for general
corporate purposes. Business—Manufacture
electronic tubes and equipment.
,

Continued

and sale of
on

page

40

x

40

The Commercial and Financial Chronicle

(508)

Continued from page

•

39

Rhode Island Insurance Co.,

-

common, $10 per share, and of preferred, $100 per share.
Proceeds—For
new
equipment and working capital.

Underwriter—Hugh P. Wasson.

Co., Los Angeles, Calif.
shares of capital stock to be offered
on a
pro rata basis to stockholders of record Nov. 23,
1951 (approximately 33 in number) for a 30-day period,
with an oversubscription privilege. Unsubscribed shares
be sold

(J. W.)

•

United Canadian Oil Corp.

York (by amendment Jan. 8, 1952). Proceeds—For com¬
pletion of well, for acquisitions, for drilling expenses,
etc. and working capital. Statement effective Oct. 8.

privately to individuals selected by company.
share). Underwriter—None. Pro¬
capital. Business — Department

•

Van Norman

Co.;

Viking Plywood & Lumber Corp., Seattle, Wash.

new

a

the

of the shares.

to

be

received

jtock of Snellstrom Lumber Co.

it

Power

was

&

stated

company

tive bidding. Probable bidders:

or

Bids—Expected

week

second

March

of

record

per

Paper Co.

in

memberships in the company's Em¬
ployees' Stock Purchase Plan for 1952 togetner with
25,263 shares of common stock (no par) to be purchased
under the plan. Statement effective Jan. 21.

/Dec. 28 filed 6,000

of

$100 each).

13

11

retire bank

share for each

Soya Corp. of America
(letter of notification) 60,000 shares of common
stock (par 1 cent). Price—At market. Underwriter—
None.
Proceeds—To
recondition
factory equipment.
Office—30 Rockefeller Plaza, New York 20, N. Y,

Spear & Co., New York (a/5)
9,026 shares of $5 cumulative convertible
second preferred stock, (no par), of which 7,526 shares
offered

at rate

to

common

stockholders

of

common

of 1

are

stock

to be sold to

.Proceeds—To

a

A.

held

Business—Furniture

store

pany

chain.

investment.

stock.

Price—At

Underwriter—In¬

Charlotte, N. C,

£ Superior Separator Co., Hopkins, Minn.
Jan. 24 (letter of notification) 13,950 shares of 6%
ferred stock, 1952 series (par $20).

pre¬

Price—$21.50

share.

per

John

M.

selling stockholder.
Ave., New York 17, N. Y.
:

Texas

Shasheen,

President,

Office—420

Lexington

Industries, Inc., Dallas, Texas

• British Columbia (Province of)

(2/4-9)

filed $1,000,000 of 15-year 6% convertible de¬
due Jan. 15, 1967. Price—To be
supplied by
amendment.
Underwriter—Rauscher, Pierce & Co

Jan. 21 it

was reported early registration is expected of
$30,000,000 bonds (in U. S. funds). Underwriters—The
First Boston Corp. and A. E. Ames & Co. Offering—Ex¬
pected mid-February.

bentures

Dallas, Tex.

Proceeds—To be added to general funds.

business—Produces and sells lightweight expanded clay
«r shale aggregate under the trade name
"Haydite" and
..manufactures jartd sells lightweight concrete masonry
units, etc. Offering—Expected week of Feb. 4.
;

if Case (J. I.) Co.

t

if Trangulf Corp., Houston, Tex.
Jan, 25

(letter of notification) 25,000 shares of capital
stock (par 10 cents). Price—$1
per share. Proceeds—For
working capital. Office—l Main St., Houston* Tex. Uniterwriter—Arthur I. Korn & Co., New-York.




Bros. & Hutzler.

omon

;

»

Chicago, Milw., St. Paul & Pacific RR. (2/28)
Jan. 16 it was reported company plans sale of $2,400)000 ph'
equipment trust certificates, series 00 to matureAseml-^;-,
annually over a period of 15 years. Probable bidders: ""'
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.
Bids—Expected to be received on Feb, 28.
Chicago & Western Indiana RR.
»
23 company sought ICC permission to issue $52,-

Jan.

500,000 of first and refunding mortgage bonds without
competitive bidding. The bonds will be dated not earlier
than March 1, 1952 and mature not later than Sept. 1,
1962.
Proceeds—To pay at maturity $49,988,000 of 4%
non-callable consolidated first mortgage bonds due July
1,

1952, and the remainder used for capital improve¬

ments.

;

★ City National
Jan.

8

(Tex.)

Bank of Houston

stockholders approved an

,

increase in authorized

from $5,000,000 to $7,500,000 to
20% stock dividend and the sale of 75,000

capital stock (par $20)
provide for

a

shares of additional stock to stockholders on a one-for-

four

increase

basis. Price—$40 per share. Proceeds—To

capital and surplus.

★ City National Bank & Trust Co. of Chicago
Jan.

12

it

was

announced stockholders will vote Feb. 8

approving a proposal to change presently outstanding
capital stock from 50,000 shares, par $100, to 200,000
shares, par $25, in order to effect a four-for-one stock
split-up. Following split-up, it is planned to offer for
subscription by stockholders 40,000 additional new $25
par shares. The proposed financing has been objected to
by certain stockholders. Price—$40 per share. Proceeds—
To increase capital and surplus. Underwriters—Merrill
on

Lynch, Pierce, Fenner & Beane and Central Republic
Co. Inc.

•;

★ Colorado Central Power Co.
Jan. 21 it

was

rights to its
common

Jan.
.

18

April 17

it

was

on

increasing the authorized

announced that

.; ,/

.

.

may offer later this year . j
stockholders to purchase additional »•*■•
(sufficient to" raise $300,000 of less) Pro- * J

reported company

common

stock

.

ceeds—To retire bank loans
Underwriter—None.

'

-

stockholders
common

Dec. 26 SEC approved a
and

:: ;/'•

and for

new

"-r

construction.

]

■

'.

<
.

its holding company

will

vote

stock from

«}:>,200,000 shares, par $25, to 4,000,000 shares, par $12.50,
and on issuance of two neTr shares in exchange for each
share presently held. Following split-up, it is planned to
set aside 100,000 of the new shares for sale to employees
under stock purchase options, and to offer to common
stockholders one new share for each five shares held.

;

plan filed by Mission Oil Co,

subsidiary, Southwestern. De¬

velopment Co. designed to effectuate; compliance with
the Holding Company Act. This development is expected.
to result in early registration of Colorado. Interstate Gas
Co. common stock, with Union Securities Corp. ai prob- able underwriter.

Columbia Gas System, Inc. V
was announced that it is the present intention
of the company to sell securities in 1952 for the?purpose

Nov. 26 it
of

refunding the $20,000,000 of. 2}fa% bank notes due

June 15, 1952. The type or aggregate * amount of securi¬
ties which may be sold during 1952 cannot be determined
at this time.

construction
program for next three years calls for the expenditure
of $247,000,000 of which about $81,700,000 will be spent
in 1952. Underwriters—FOr bonds to be decided by com¬
petitive bidding. Probable bidder?; Halsey, Stuart & Co.
Inc.; Kuhn, Loeb & Co. and Lazard Freres & Co. (joint¬
ly); Morgan Stanley & Co.; White, Weld & Co. and
Union Securities Corp. (jointly); The First Boston Corp.

Tele-Trip Policy Co., Inc.
16 (letter of
notification) 7,000 shares of capital
(par 10 cents). Price—$2.75 per share. Under¬
writer—None, but certain NASD members will act as
Proceeds—To

.

stock.

Bell Telephone-Co. of Pennsylvania
2 it was announced that company's

Jan.

is the

common

Jan.

Stock

Brokers.

the

struction program.

Proceeds—For

working capital. Offering—Ex¬
pected early in February. Underwriter—J. M. Dain &
Co., Minneapolis, Minn.

who

on

bonds, to be determined by competitive
Probable bidders: Halsey, Stuart & Co. Inc.;
First Boston Corp. and Drexel & Co. (jointly);
Union
Securities Corp.
and Smith,
Barney & Co.
(jointly); Lehman Brothers; White, Weld & Co. and
Shields & Co, (jointly).
Previous preferred stock fi¬
nancing was done privately through Union Securities
Corp. and Smith, Barney & Co. Proceeds—For con¬

The

terstate Securities Corp.,

to whether these funds would be

writers—For

bidding.

Proceeds—For

as

expects to issue and sell $5,000,000 of first mort¬

★r Sterling Investment Fund, Inc., Charlotte, N. C.
market.

announced company has under considera¬
plans of financing to raise approximately

gage bonds, during the first half of 1952, and $4,000,000
of preferred stock in the last half of the year. Under-

Jan. 25 filed

common

•;

<

Chicago & Eastern Illinois RR. (1/31)
-A
be received up to noon (CST) on Jan. 31 at ;
company's office in Chicago, 111., for the purchase V
from the company of $2,100,000 equipment trust certi¬
ficates, series I, to be dated Feb. 1, 1952 and due $70,000 +
semi-annually from Aug. 1, 1952 to Feb. 1, 1967, inclu- ;
sive. Probable bidders: Halsey, Stuart & Co. Inc.; Sal-, A

Colorado Interstate Gas Co.
-

—

500,000 shares of

was

Atlantic City Electric Co.
Jan. 21, B.- L. England, President, stated that the com¬

selected group. Price—$105 per share,
Kahn and A. J. Kaminsky, two

.selling stockholders.
/.'Underwriter—-None.

various

109% stock dividend

M.

-

9, it

tion

raised through borrowing or equity financing. Probable
Underwriters—Morgan Stanley & Co., Clark, Dodge &
Co. and F. S. Moseley & Co. Stockholders on April 29
will vote on approving a four-for-one split-up of the
preferred and common stocks which in effect will be a

record

preferred share for each 12 shares
(other than holders of present
second preferred stock owning common stock); rights to
expire Feb. 29. The other 1,500 second preferred shares

of

Jan.

tion has been made

•

tt> be

common

$50,000,000 of new money to provide in part the funds
required for the proposed expansion of" its plant facili¬
ties, and for additional working capital. No determina¬

Dec. 31 filed

Feb. 5

18,

American Can Co.

loans.

Dec. 29

are

A'

Irvington, N. J.
Nov. 9, Nathan Chirelstein, Chairman, said it is probable
that the company within a short time will register with
the SEC an issue of long-term convertible debentures,
part of which will be offered in exchange for any out¬
standing three-year convertible notes dated Nov. 1, 1951.
Underwriter—Hill, Thompson & Co., Inc., New York.

rights to expire Feb. 14. Price—$17.50
per share.
Underwriter—Dillon, Read & Co. Inc., New
York. Proceeds—From sale of stock, together with funds
from private sale of $10,000,000 new 3%% first mort¬
gage bonds due 1982, to be used to pay for property
to

■

Allied Electric Products, Inc.,

shares held;

additions and

.

stockholders will vote on in¬
stock to 1,000,000 from
750,000 shares, and on issuance of 37,500 shares as a
5% stock dividend. Underwriter—Watling Lerchen &
Co., Detroit Mich.
Proceeds—For additional working
capital.,'-' '""V - /'/•;.
r. • .

(2/1)

one

't

financing. On Feb.
creasing authorized

filed 251,540 shares of common stock (par $1)
be first offered for subscription by common stock¬

to

Proceeds—To retire indebtedness. Ad¬
657, Olympia, Wash. Underwriter—

Box

Aeroquip Corp.
Jan. 4, Don T. McKone, Chairman, announced that con¬
sideration was being given to the possibility! of equity

112,000 shares of 6% cumulative convertible
preferred stock. Price—At par ($25 per share). Under¬
writer—The First California Co., Inc., San Francisco,
Calif. Proceeds—To purchase outstanding stock of Culberton & Irwin, Inc., independent oil producer, and for
working capital. Offering—Expected momentarily.

holders of record Jan. 30 at rate of

O.

Prospective Offerings

program

Dec. 28 filed

Jan.

(letter of notification) $270,000 of class A con¬
debentures.
Price—At par (in denominations

dress—P.

Petroleum Corp.

Southwestern Public Service Co.

14

None.

and

•

Statement ef¬

Metalcraft, Inc., Olympia, Wash.

Western

vertible

Servomechanisms, Inc. (2/5)
26 filed 350,000 shares of common stock (par 20
cents), of which 250,000 shares are for the account of the
company and
100,000 shares for selling stockholders.
Price—To be
supplied by amendment (expected at
around $5 per share). Underwriter—Van Alstyne Noel

Southern California

stocks of three subsidiaries.

common

Jan.

•

•

Proceeds—To be invested

Sachs & Co. (jointly).

fective Jan. 22.

Dec.

expansion

Jan.

held; rights to expire on Feb. 18.
Price—$28.75
share.
Underwriters—Lehman Brothers and Gold¬

man,

'

Corp., New York. Proceeds—For
working capital.

440,000 shares of common stock (no par)
subscription by common stockholders
31 at rate of one share for each eight

offered for

be

of

v

.

Bids will

shares

by

Office of Alien Property, 120 Broadway, New York, N. Y.
G Scott

28 filed

to

,

the

West Penn Electric Co.
Dec.

General of the U. S., the
Business—Manufactures and sells

first

in

Price—$20 per share.
Under¬
purchase 50% of capital

unit.

Proceeds—To

writer—None.

Attorney

'pharmaceutical and cosmetic products.

;

10

construction.

owner

-

Light Co. (3/4),/
plans issuance and sale
of $10,000,000 first mortgage
bonds, series D, about
March 4. Underwriters—To be determined by Competi¬
Central

Jan.

of 125 shares per

&

Proceeds—To

*

★ Central Louisiana Electric Coi, Inc.
Jan. 21 it was reported that company planned to issue >
iand sell $4,000,000 first mortgage bonds. Underwriters—
If competitive, bidders may include: Halsey, Stuart & Co,v .
Inc.; The First Boston Corp.; Blair, Rollins & Co. Inc.,
Lee Higginson Corp., W. C. Langley & Co; and* Carl M."
Loeb, Rhoades & Co. (jointly). Previous bond financing
was done privately.

Oct. 19 filed 22,500 shares of common stock (no par) to
be offered to employee-stockholders in minimum units-

Inc.; F. S. Moseley & Co.; Riter & Co.; The First
Boston Corp.; Goldman, Sachs & Co.; Estabrook & Co.

-

Unden^lters-^-Probably
Dod^e-&^Cb:V- v':v" /'•'*

Morgan Stanley & Co. and Clark,

Ladenburg, Thalmann & Co. (jointly); Merrill
Lynch, Pierce, Fenner & Beane, Kidder, Peabody & Co.
and Drexel & Co. (jointly); F. Eberstadt & Co. Inc.;

Underwriter—Paine, Webber, Jackson & Curtis,
Proceeds—For machinery and working
Withdrawal—Statement withdrawn Jan. 21..

Mass.

Boston,

Co.

-

Price—To be determined later;

capital.

Interest.

company to be formed by United
States & International Securities Corp.; Dillon, Read &

-

^Thursday, January 31, 1952

Attorney General of the U. S. as an entirety. Probable
bidders: A. G. Becker & Co. Inc., Union Securities Corp.

Schering Corp., Bloomfield, N. J.
„
18 filed 440,000 shares of common stock (no par).
Underwriter—None.
Entire issue to be offered by the

debehtures due Dec.

Allen

.

.

Halsey, Stuart & Co. Inc.;
Kuhn, Loeb & Co., A. C. Allyn & Co., Inc. and Bear,
Stearns & Co. (jointly); Blyth & Co., Inc., Harriman
Ripley & Co., Inc. and Stone & Webster. Securities Corp.
(jointly); Kidder, Peabody & Co.; The First Boston
Corp.; Carl M. Loeb, Rhoades & Co.; Lehman Brothers
and
Glore, Forgan & Co. (jointly); Merrill Lynch,
Pierce, Fenner & Beane and Salomon Bros. & Hutzler
(jointly); Union Securities Corp. Proceeds—For "newJ

Nov. 21 filed

and

;

Co., Springfield, Mass.
$2,400,000 of 4%% convertible sinking fund
1, 1969. Price—100% and accrued

store.

Jan.

,

(2/4)

July 31 filed 1,000,000 shares of common stock (par $1).
Price—At par.
Underwriter—Aigeltinger & Co., New

Price—At par ($10 per
ceeds — For working

,

(no par)

20,000 shares of common stock

2,000 shares of 5% cumulative preferred stock (par
$100) (common stock to be sold only on basis of ten
shares for each preferred share purchased).
Price—Of

Jan. 4 filed 100,000

to

filed

21

and

Providence, R. I.

(letter of notification) 92,942 shares of common
stock (par $1). Price—19 cents per share. Underwriter—
Siegel & Co., New York. Proceeds—To selling stock¬
holders.
Jan. 11

Robinson

Telecasting Corp., Chattanooga, Tenn.

Tri-State

Jan.

.

"

.v'"*

'

Consolidated Edison Co. of New

York, Inc.
Jan. 2 company announced its plans, to spend about
$105,000,000 for new construction during 1952, of which
it is proposed to raise $65,000,000 from/new Hnancing.
It is presently borrowing $31,000,000 from banks. Under¬
writers—For bonds, to be determined . by competitive
bidding. Probable bidders: Halsey, Stuart
Co. Inc.;
Morgan Stanley & Co.; The.First Boston Corp;
Consolidated Gas, Electric
Baltimore

Light & Power Co. of
*

r r

plans to Issue and sell
both stocks and bonds during* 1952 to art amount suffi¬
cient to raise approximately $22,000,000. Underwriters—
For bonds to be determined, .by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; White, Weld
& Co. and The First Boston Corp. (jointly); Harriman
Dec. 24 it

was

stated that company

Ripley & Co.,L Inc. and Alex. Brown & Sons (jointly).
& Sons and John C.

The First Boston Corp.* Alex. Brown

Legg & Co (jointly) handled, latest common stock fi¬
nancing,-while White, Weld & Co. handled last preferred
stock sale.

Proceeds—For

new

Expected in March or April.

construction.. Offering—
;

■

Volume 175

Number 5086

The Commercial and Financial Chronicle

•.

(509)

"if Consumers Power Co.

Lynch,
an¬

&

Co.

nounced that the magnitude of the company's expansion

Pierce, Fenner & Beane and Kidder, Peabody
(jointly)'; Smith, Barney & Co.; Harriman Ripley

&

Co.

Inc.

Jan.

29, Justin R. Whitin,

Chairman of the Board,

program, which will involve record construction expen¬

istration—Expected

ditures

received

of

$53,000,0001 in
financing this year.

if Dallas
Jan.

23

Power &

company

and sale

of

1952,

will

entail

additional

Light Co.

$6,000,000 first mortgage bonds, with regis¬

for bidding in April. Proceeds

—For construction program. Underwriters-^To be deter¬

mined by competitive bidding. Probable bidders:
Halsey,
Stuart & Co. Inc.; The First Boston Corp.; Hariman Rip¬

ley & Co., Inc.; Equitable Securities Corp.; Lehman
Brothers; Union Securities Corp.; Kidder, Peabody & Co.;
Blyth & Co., Inc.; Merrill Lynch, Pierce, Fenner &
Beane.

Detroit

Jan. 21 Max J.

com¬

plans to issue and sell 600,000 shares of new con¬
preferred stock (par $25) and $25,000,000 of
mortgage bonds.
Price—To be determined later.

pany

18.

Bids—Scheduled to be

and

City Power & Light Co.

mortgage bonds (this is in addition to present preferred
common stock
financing. Underwriters—To be de¬
termined by competitive
bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Glore, Forgan & Co.; Blyth
& Co., Inc. and Lazard Freres & Co.
(jointly); The First
Boston Corp.; White, Weld & Co. and Shields & Co.
(jointly); Smith, Barney & Co.; Kuhn, Loeb & Co., Sal¬
Bros.

omon

&

Hutzler

and

Union

Securities

Corp.

(jointly); Equitable Securities Corp.; Lehman Brothers
Bear, Stearns & Co. (jointly); Harriman Ripley &
Co., Inc. Proceeds—^For new construction.

Kentucky Utilities Co.
Dec. 10 it

first

in April or May $12,000,000 20-year first mortgage bonds,
series D. Underwriters—To be determined by competi¬

preferred stock, Van Alstyne, Noel
& Co.; and for bonds,
Halsey, Stuart & Co. Inc. and Van
Alstyne, Noel & Co.
Proceeds—To retire $13,950,000
presently outstanding first mortgage bonds and for ex¬

pansion program.
19 on the

Meeting—Stockholders will vote Feb.

financing proposals.

if First National Bank of Portland
Jan.

23

•

it

announced

was

stockholders

200,000

(par $12.50)

at rate of

(Ore.)

one

shares

share for each five shares

held; Price—$30 per share. Underwriter—None.

Florida Power Corp;l ':

,

Jan. 11 it

120

to

complete

was reported that the Office of Alien
Property,
Broadway, New York, N. Y., plans to sell late in

March all of the outstanding capital stock of this com¬

announced that additional

was

necessary

Jan. 21 it

which

distributed

Leica

in

cameras

the

United

States. Probable bidders may include: Allen & Co.

financing will
company's construction
; program and it is contemplated that the balance of new
capital needed will be obtained from the sale of common
be

bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Kidder, Peabody & Co. and White, Weld & Co.
(jointly); Lehman Brothers and Salomon Bros. & Hutzler
(jointly); Blyth & Co., Inc.; Union Securities Corp. and
Merrill Lynch, Pierce, Fenner & Beane (jointly).

pany,

^
the

stock and first mortgage bonds,

Company has borrowed

$4,000,000 under a bank credit recently arranged which
provides for short-term bank borrowings of not more
than $10,000,000.
Previous bond financing was done
privately. Common stock may be offered to common
stockholders, * with Kidder, Peabody & Co. and Merrill

Lynch, Pierce, Fenner & Beane acting

as

agents.

Lincoln
Jan.

Telephone & Telegraph Co.

it

22

announced

was

vote

on

debt

by $3,500,000.

funds

proposal

a

needed.

are

stockholders

on

Feb.

5

will

to increase authorized long-term
If approved, bonds will be sold as
Previous debt financing was done

privately.
Martin
Jan.

10

(Glenn

L.)

Co.

announced

plan to sell
$6,000,000 of convertible debentures to a
company

an

estimated

group

vate investors and additional common stock to

of pri¬

common

Underwriter—Smith, Barney & Co., New
sale of debentures to help meet
production programs, and from sale of stock to retire

York. Proceeds—From

it

24

Metropolitan

announced

was

issue

of

common

stock

to

stockholders

in

April,

1951.

Stockholders will meet Feb. 21.

>,if Hammermill Paper Co.
Jan. 22 it

,

was

announced company

of additional

common

stock

two-for-one

split-up

of

shares

be

to

voted

Underwriter—A.

G.

plans public offering
(par $5) following proposed

presently outstanding 287,020
by stockholders on Feb. 25.
for expansion program. Traditional

upon

Proceeds—To be used

Becker

&

Co.

Inc., Chicago, 111.

Idaho Power Co.
18, T. E. Roach, President, announced that .the
company's present plans consist of the sale this year of
^

Jan.

about

225,000

additional shares of common stock (par
preferred stock. Underwriters—Latest com¬
mon
stock financing in April, 1949, was handled by
Blyth & Co., Inc.; Lazard 'Freres & Co.; and Wegener
& Daly Corp.
Proceeds—To repay bank loans and for

$20), but
,

no

construction

Illinois

program.

Central

equipment trust'cer¬

HH, to be dated Feb. 1, 1952 and to
equal semi-annual instalments to and in¬

series

mature in

30

.

sold to

mined

bonds—Halsey, Stuart & Co. Inc.; Salomon Bros. &
Hutzler; Union Securities Corp.; Drexel & Co.; The
First Boston Corp.; White, Weld & Co. and Equitable
Securities Corp. (jointly); Kidder, Peabody & Co.; Carl
M. Loeb, Rhoades & Co.
Probable bidders for preferred
—Kidder, Peabody & Co.; Smith, Barney & Co. and
Goldman, Sachs & Co. (jointly); Carl M. Loeb, Rhoades
& Co.; Drexel & Co.; Harriman Ripley & Co. Inc. and
Union Securities Corp. (jointly); Salomon Bros. & Hutz¬
ler; The First Boston Corp. Bids—Tentatively scheduled
for noon (EST) March 18.
Registration—Expected any
date.

•

if Illinois Power Co.
reported that the company was understood
to be planning the issuance and sale of about
$15,000,000
was

of first mortgage bonds.
andtto

repay

Proceeds—For

bank loans.

new

construction

Underwriters—To

be

deter¬

mined by competitive bidding. Probable bidders:
Halsey,
Stuart & Co. Inc.; White, Weld & Co. and Merrill
Lynch,

-Pierce,

Fenner & Beane (jointly); Union Securities
Corp.; The First Boston Corp.; Harriman Ripley & Co.,
Inc. and Glore, Forgan & Co. (jointly); Kuhn, Loeb & Co.

"•■

Interstate

UjJan.

18

it

Power

Co.

Mississippi Power & Light Co.

disclosed

(3/18)

summated

that

Feb. 29,

1952. To finance the purchase Mis¬
proposes to issue $7,700,000 of first mort¬
(probably privately) and $5 par common
price to net the company not less than $3,800,on

a

7

it

writers

—

To




Lehman

Brothers;

common

Merrill

company

contemplates that

determined

be

by

competitive bidding.

if National Fuel Gas Co., N. Y.
Jan. 29 company applied to SEC for authority to issue
and sell $18,000,000 of sinking fund debentures due 1977.
Proceeds—To repay $11,000,000 bank loans and to loan
$7,000,000 to subsidiaries. Underwriters—To be deter¬
mined by competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; Blyth & Co., Inc.; The First Boston
Corp.; White, Weld & Co.; Harriman Ripley & Co., Inc.

(jointly).

New

England Telephone & Telegraph Co.
Dec. 20, F. A.
Cosgrove, Vice-President, said a perma¬
nent financing program will
have to be undertaken in
1952 to repay about

$43,000,000 short-term bank borrow¬
Underwriters—For bonds may be determined
by
competitive bidding. Probable bidders:
Halsey, Stuart &
Co. Inc.; Morgan
Stanley & Co. In case of common stock
financing there will be no
underwriting.
^
ings.

Northern States
Jan. 16, B. F.

National

21

it

Research Corp.,

was

announced

to

a

1,100,000 shares) the latter issued first

stockholders

will vote

March

increasing authorized capital stock from 125,000
600,000 shares, to provide, in part, for payment
200% stock dividend. It is also planned to make
when

a

market

1946

Proceeds would

portion of the proposed authorized
conditions

was

be

made

added

to

com¬

(about

to

common

holders.

stock¬

Underwriters—To be determined by
competi¬
tive bidding.
Probable bidders for stock and bonds:
Smith Barney &
Co.; The First Boston Corp.; Glore,
Forgan & Co.; Lehman Brothers and Riter &
Co.

(jointly); Equitable Securities Corp.; Union Securities
Corp.; Merrill Lynch, Pierce, Fenner &
Beane; Kidder,
Peabody & Co. and White, Weld & Co. (jointly). Prob¬

able bidder

bonds only: Halsey, Stuart & Co.
Inc.

on

Northwest

Natural

Gas

Co.

7 company filed amended

application with FPC in
plan to build a natural gas trans¬
system in the Pacific Northwest to
transport
gas from Canada to markets in
its

mission

Oregon, with
in British

a

Idaho, Washington and
portion to be returned to Canada for use
The estimated overall cost of the

Columbia.

'project

is approximately $92,000,000.
UnderwriterMorgan Stanley & Co., New York. Financing—Not ex¬

pected until after Provincial elections in
April.
Oklahoma Gas & Electric Co.
Jan. 21 it

was

reported that the company expects to be
a
$12,000,000 bond issue, probably in
March. Underwriters—To be determined
by competitive
bidding. Probable bidders: Halsey, Stuart & Co.
in the market with

Merrill

& Co.

Inc.;
Lynch, Pierce, Fenner & Beane and White, Weld
(jointly); The First Boston Corp.; Equitable Se¬

curities

Corp.; Lehman Brothers and Blyth & Co., Inc.
(jointly); Harriman Ripley & Co., Inc. and Union Se¬

curities Corp.

(jointly). Proceeds—For construction pro¬
Registration—Expected by the end of January.

gram.

Pacific

Northwest Pipeline

Corp.

Jan. 7 the company applied to the FPC for
authority to
build a 2,175-mile natural gas pipeline from
southern
Texas to the Pacific Northwest at an estimated
cost
of

$174,186,602. The line is sponsored by Fish Engineer¬
ing Corp. of Houston, Tex.
Probable underwriters:
White, Weld & Co. and Kidder, Peabody & Co., New
York.
(See also accompanying item on "Spokane Gas &
Co.")

Penn
Jan.

11

Controls,
it

Inc.

reported company may file in
February
financing proposal with SEC. The previous
proposal to issue 100,000 shares of common stock (par
was

revised

a

$2.50)
Dec.

through F: S. Moseley & Co.

was

withdrawn

on

21.

Pennsylvania
Jan.

5

it

was

Electric

announced

Co.

that

company plans to spend
$26,000,000 for expansion in 1952, to be financed,
part, by the sale of about $9,000,000 first mortgage
bonds, $4,500,000 of preferred stock and $4,500,000 of
common stock (the latter igsue to
parent, General Public
Utilities Corp). Underwriters—For bonds and
preferred
stock to be determined

by competitive bidding. Probable
(1) for bonds—Halsey, Stuart & Co. Inc.; Kid¬
der, Peabody & Co.; Union Securities Corp. and White,
bidders:
Weld

& Co. (jointly); Kuhn, Loeb &
Co.; A. C. AUjx
&'Co., Inc.; Equitable Securities Corp.; Shields &
and R. W. Pressprich & Co. (jointly).
(2) for preferred—
Smith, Barney & Co. and Kidder, Peabody & Co.

(jointly); W. C. Langley & Co. and Glore, Forgan & Co.
(jointly); Kuhn, Loeb ,& Co.; Lehman Brothers and
Bros. & Hutzler (jointly); Harriman
Ripley &
Co., Inc. Offering—Expected in mid-year.
Salomon

Pennsylvania RR.

.

Jan. 7 it

was

are

favorable.

Latest

common stockholders.
working capital. Under¬

to

stated that company may be in the market

with substantial equipment

trust certificate offer¬

ings. Probable bidders: Halsey, Stuart1 <& -Co. Inc.; Salo¬
mon

on

public offering of

^

(Minn.)

raise

between $30,000,000 and
$32,500,000 this year to finance its construction
program.
About two-thirds of the amount
needed will be in the
form of debt issues and the
balance common stock

soon

Cambridge, Mass.

shares to
a

Power Co.

Braheney, President, announced that

will have

,

financing in

Probable bidders for

Inc.;

Hutzler

in

Halsey, Stuart & Co. Inc.; Harriman
Ripley & Co., Inc.; Salomon Bros. & Hutzler; Kidder,
Peabody &
Co.; The First Boston Corp.; Lehman
Brothers; White, Weld & Co.

Salomon Bros. & Hutzler.

Co.,

announced

was

shares

&

Halsey,

Brothers; Blyth & Co., Inc.;
Equitable Securities Corp. and
Blair, Rollins & Co. Inc.
(jointly); Merrill Lynch, Pierce, Fenner &
Beane; Harri¬
man
Ripley & Co., Inc.; The First Boston
Corp.; Kuhn,
Loeb & Co., Union Securities
Corp. and Salomon Bros. &

about

Probable bidders:

of

Blyth

Underwriter—Equi¬

Nashville, Tenn.

$7,500,000 of note indebteness will be permanently fi¬
nanced with bonds in or about March, 1952. Under¬

competitive bidding. Probable bidders for bonds:
Halsey, Stuart & Co. Inc.; -White, Weld & Co.; Merrill
Lynch, Pierce, Fenner & Beane; Smith, Barney & Co.:
stock:

con¬

Narragansett Electric Co.
Jan.

; by

-v

was

000. Price—To be determined later.

Jan. 21

company

Proceeds—For ex¬

plant to be constructed

—

Fuel

properties of
authorized by SEC,

bonds

stock at

•

>

a new

Stuart & Co. Inc.; Lehman

gas

subject to approval of FPC. The transaction is to be

plans to issue
•,/and sell $2 000,000 of first mortgage bonds and 350,000
Shares of common stock. Underwriters—To be decided

was

Corp.,

Mississippi Valley Gas Co.
v
this company of

table Securities Corp.,

—

Jan. 21 it

Industries

N. Y.
Oct. 31 it was announced company plans to expand its
capitalization in the near future and to register its
securities with the SEC preliminary to a large public
offering, the funds to be used to build new industrial
projects in Israel.

Room 301, 135 East 11th Place, Chicago 5, 111.,
up to noon (CST) on Feb. 5.
Probable bidders: Halsey,
Stuart & Co.' Inc.; Salomon Bros. & Hutzler.

Nov> 16, the directors authorized, pending a favorable
market, the issue and sale of up to $25,000,000 of consoli¬
dated mortgage bonds. Underwriters — May be deter¬
mined bjr competitive bidding. Probable bidders: Halsey,
i
Stuart & Co. Inc.; Kuhn, Loeb & Co.; Morgan Stanley &
Co. Proceeds
To retire debt maturing in next four
-years and to replace depleted working capital.

*>

East

gage

Illinois Central RR.

from loans.

or

common
stock to parent
(New England Electric
System) and first mortgage bonds
early in 1952. Underwriters
For bonds, to be deter¬
mined by competitive
bidding. Probable bidders:

-

Middle

r

V

parent, General Public Utilities Corp.). Under¬
bonds and preferred stock to be deter¬
by competitive bidding.
Probable bidders for

writers—For

sissippi Valley

.

(3/18)

14 company filed an application with the SEC for
authority to issue and sell $7,800,000 of first mortgage
bonds, 40,000 shares of preferred stock (par $100) and
40,000 shares of common stock (the latter issue to be

cluding Feb. 1, 1967, will be received at the office of the
company,

.

Co.

Jan. 24 acquisition by

(2/5)

Bids for the purchase of $4,110,000

tificates,

>'

*

RR.

Edison

Jan.
company plans to
from 300,000 shares

increase
(259,422
shares outstanding) to 500,000 shares of $2.50 par value.
The company states that "there is no present plan of
capital financing either of an equity type or loan." The
directors, however, "are studying several plant expan¬
sion programs which may eventually require more capi¬
tal." A group headed by Estabrook & Co. underwrote an
stock

common

Meinken, President, announced com¬
than $5,000,000 of "new
money"

more

New England Power Co.
Jan. 11 company received from
SEC authority to increase
authorized bank borrowings from
$12,000,000 to $16,-'
000,000. A major portion of this indebtedness
may be
financed through issuance of

connection with

Foote Mineral Co.
Dec.

Union Radio Corp.

Philadelphia.

Jan.

debentures within six months.

writer—A. C. Allyn & Co., Inc., Chicago, 111.

authorized

Curtis

Underwriter—Probably Collin, Norton
Co., Toledo, O. Registration—Expected in two months.

pany

stockholders.

Foote Bros. Gear & Machine Corp.
Oct. 25 it was reported that company may offer addi¬
tional common stock
early in 1952. Probable under¬

&

&

Offering—Expected in May.

tive

if Leitz>(E.), Inc., New York

plans to offer to
of capital stock

company

additional

reported company plans to issue and sell

was

Corp.

pansion program, involving
in

and

vertible

Underwriters—For

National

Nov. 29, Kenneth C.

through sale of stock

4
company
announced
that' it plans to issue
sell in 1952 about $12,000,000 principal amount first

and

Steel

Corp., Detroit, Mich.
Zivian, President, announced that

Feb.

on

writers—Probably Paine, Webber, Jackson
and The First Boston

Reg¬

program.

pany plans to raise

Jan.

reported to be planning issuance

was

construction

March 18.

on

Kansas

tration expected in March

v

Proceeds—For

41

'

Bros. & Hutzler.

Portland

General

nmTM'

Electric

Co.

Jan. 22, it was disclosed the company

'

will

soon announce

plans for sale of new common stock, or bonds, or botli.
Traditional Underwriter—Blyth & Co., Inc. Proceeds—

Continued

on

page

41

42

The Commercial and Financial Chronicle

(510)

Continued from page

Kuhn, Loeb & Co.; Salomon Bros. & Hutzler;^ United States National Bank, Portland, Ore.
(3/1)
Lynch, Pierce, Fenner & Beane and Union Se¬
Jan. 8 it was announced company plans to offer to stock*- •
(jointly); Lehman Brothers; White, Weld
& Co.; Harriman Ripley & Co., Inc.; The First Boston
holders the right to subscribe for an additional 100,000
shares of capital stock (par $20) on basis of one new
Corp. Proceeds—For 1952 construction program. Bids—
share for each six shares held. Price—$50 per share.
Expected in March.
Merrill

refinance, all or in part;
which mature May 1, 1952.

curities Corp.

$9,000,000 of bank loans

Service Electric & Gas Co.

Public

J&n. 17 stockholders approved a proposal to increase the
authorized preferred
stock from 500,000 to 1.000,000
snares and to
increase the limit of unsecured indebt¬

Proceeds—To

present plans for addi¬
November, the company sold

In

financing.

it

in April

1952, vote on a proposal to increase the authorized com¬
stock from 250,000 shares (all outstanding) to 1,-

000,000 shares in order to make additional stock available
for such corporate purposes as acquisition of new proper¬

Texas-Ohio

Oct.

,

mated

held.

in

share.r

surplus. Underwriter

•

of about

18 it was

(3/25)

of

Lehman
Brothers; Merrill Lynch, Pierce, Fenner & Beane and
Harris, Hall & Co. Inc. (jointly); White, Weld & Co.;
Blyth & Co., Inc. Proceeds—For construction program.
Registration—Expected late in February. Bids—Tenta¬
tively scheduled to be received on March 25.
bidders:

Southern Ry.

Halsey,

Inc.;

Co.

&

&

18 it

sell

and

Gas &

Electric

Preliminary

8
a

respecting
The

issuing

the

SEC should

company.

also permit

as

prospectus,

a

Mr.

that
in

shares

13

stockholders

it

would

Price—At

19

it

tenden

&

Coggeshall

;

Bids

pay
rate.

all

the

3^% coupon rate.

wepje/relatively

runners-up

The

scheduled

as

close

offering
offering to
Monday
interest stand.

reoffer

group
the

was

bonds

reported

priced

at

common

102.17

-indicated yield of 3.35%.




for

an

stock.

while

company

convertible preferred stock (the latter to be offered
common stockholders on a l-for-10 basis, with

by competitive bidding in April. Probable bidders: Hal¬
sey, Stuart & Co. Inc.; White, Weld & Co. and Kidde;*;
Bros. &

bonds

30-year first

next

two

should reach market
Tuesday as things now

or

*

plans to build
in Marathon

County, Wis. Method of permanent financ¬
If bonds, probable
may include;
Halsey, Stuart & Co. Inc.; The
-First Boston Corp.; Harris, Hall & Co. (Inc.); Kidder.
Peabody & Co.; Carl M. Loeb, Rhoades & Co.; Salomon
Bros. & Hutzler; Union Securities Corp.; Merrill Lynch,

ing* has not yet been determined.

considering

stock (par $10v
Underwriter—Crut-

up

for

tenders,

&

Electric

Gas

$12,000,000

mortgage

bonds.

The overall program,

lated,
around

Co. has

expansion

$125,000,000.

offering

of

$6,000,000

of

Co.

has

new

an.

issue

30-year

of

Assistant

customer

first

Box

Financial

New York

initial

The

400,000

shares

some

of

time in

Thereafter,
sidiaries
with

several

will

be

in

of

its

the

small

bond
issues, Texas
Light being scheduled
to finance in April, Texas Electric
Power

&

Service about

Dallas

'

June.

.

month

a

Power

&

*

later, and

Light

early

.

H

131,

Chronicle,
7.

•

••

has

'

*

established

an

publishing house with good following

opening for

a

salesman in both New York and

.

Chicago territories.

acquaintanceship
Positions entail

Office

Man¬
some

Excellent refer¬

Commercial
Park

t

Long

relations,

25

Salesmen Wanted

cap¬

and

some

Commission.

Knowledge of securities business

among

or

dealer-broker firms helpful.

traveling with

expenses

paid. Salary

Good future for: right man.

and full particulars in confidence.

State

age

Box S 124 Commercial

&

Place,

sub¬

market

the

28, Vet's draft-proof-status, B.A.

accounting and Law.

Power

of

plans for
over

which promise to*
firm into the money

Swarthmore,

ences.

outlay

years

Administrative Assistant

and

it is calcu¬

involve

will

step in raising this money will he
an

~

ager

C. E. Kohlepp, President, announced company
a $12,000,000 steam turbine power planl

Sept. 4

Pierce. Fenner & Beane: Shields & Co.

Louisville

Utilities

(jointly);

.bidders

be

may

(jointly); Kuhn; Lbeb & Co.; Salomon
Hutzler; Equitable Securities Corp.; Smith, Bar¬

Wisconsin Public Service Corp.

;

common

$200,000.

Co. will open bids for
of

This

following day two utilities
due to open bids.
Pennsyl¬

vania

'

; ■>'.
reported company is planning issuance and

was

-

Smith, Barney & Co.,; New York, and Robert W. Baird &
Co., Inc., Milwaukee, • Wis., probably acting as dealer-

Co., Chicago, 111.

activity is
issue market large-scale

The
are

today

$5 par

~

/

managers). Underwriters—For bonds, to be determined

Lines, Los Angeles, Calif.

was

Texas

corporate
new

-*• r

.

first to

authorized

Texas Utilities Plan

same

successful
to

to

keeping with the rapid in¬ the company's stock
dustrial growth of the Southwest, March.

bankers, 400,000 shares additional
of its

101.199 for the

Jan. 23 it

on

interludes
in
the
forthcoming bring that
groups
bid for United
week.
Only a few offerings are market for substantial new
Corp.'s offering of $50,000,000
on schedule and of these the ma¬
ital.
of new first mortgage and col¬
jority are small.
lateral trust
bonds, due in 20
Monsanto Chemical Co. is slated
years, with the winning syndicate
SITUATION WANTED
to
market,
through
investment
paying the- company a price of

with

in

investors

faces another of those rather dull

Corp. 3V£s

par.

indicated mortgage

Light Week Ahead
far

capital and surplus. Underwriter

Ladd, Dayton, O.

.sale of $8,000,000 of first mortgage bonds and $2,000,000

In

So

share for each four shares

one

Ar Wisconsin Power & Light Co. •'

basis of one share
rights to expire on
Underwriting—None involved.

which will involve about

to

move

increase

ney

increase

approved

issuance and sale of additional

inquiry

basis of

on

—Greene &

$46,500,000 for expansion in 1952

Three

a-

expects

company

Gas

,101.52999 for

held

of

reported that the

was

brief period.

a

concerned, the
Gas

15

the

said.
United

each

for

$20)

Proceeds—To

if Trade Bank & Trust Co., New York

undertaking was not tapped
"sell-out," it was indicated

a

abbreviated statements to be used
as

it

fairly lively demand, and while

the

Report

(par

held; rights to expire on Feb. 7. Price—$28 per share.

& Co. and Robert W. Baird & Co., Inc.
Equitable Securities Corp.

Nov.

bonds. Underwriters—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart

Our Reporter's

-

Peabody & Co.

Co.

mortgage

page

20

Transcon

reported company is .planning to issue
$5,000,000 to $6,000,000 of new 30-year first

from

share

new

April 1.

was

Continued

"

Corp., Trenton, N. J.
an offering to stockholder#
23,539 shares of capital stock (par $1) on bash

by stockholders of record Feb. 29
for each four shares held;
with

reported company is expected to do some

Southwestern

,

:

capital stock (par $10) from $2,000,000 to $2,500,000, the
additional 50,000 shares to be offered for subscription

(jointly).

equity financing before June 30, 1952. Traditional under£4,writer: Blair, Rollins & Co.
Jan.

conNl.-^.

by competitive

Lynch, Pierce, Fenner & Beane; W. C. Langley
& Co.;
Lehman Brothers and Smith, Barney & Co
(jointly).

Jan.

Hutzler; Harriman Ripley & Co. Inc. and

was

jin-part,'the;,company's

*'i '■*fa:

•

Merrill

Southern Union Gas Co.
Dec. 19 it

i-.

1955, and it has been stated that no further financing
is contemplated before late 1952, when about 400,000
shares of common stock is anticipated.
Probable bidders

$6,000,000 equipment trust certificates to

Lehman Brothers

:<•;.fa:

.*4;

n

was

spend approximately

sive. Probable bidders: Halsey, Stuart & Co. Inc.; Salo¬
Bros.

i.,£> .</rto'

.

to

be dqted March 15,1952 and due in 30 equal semi-annual
installments from Sept. 15, 1952 to March 15, 1967, inclu¬
mon

proj^sed/ ;^;

of

care

_

Water

Toledo Edison Co.

Feb. 20 for the purchase from

on

i

bapk Ioah§ And othef 'furVdS'to take

16 directors authorized

one

Nov.

(2/20)

Bids will be received
the company of

Stuart

v

Corpi and Johnstoh.Lembn & Co. habtUed the offer-,
ing lcfet year ta stdckhofde^
$6,()00#00>

(with ar
oversubscription privilege). Price—$9 per share. Under¬
writer—Probably J. G. White & Co., Inc., New York
Proceeds—For expansion and working capital.

reported that company plans to issue and

sell $30,000,000 first mortgage bonds, series A._Undeit
writers—To
be
determined
by competitive bidding.
Probable

toTtsstockhOldersfthe^

standing 734,400 shares ). Underwriters—The First Bosr/y
ton

Thiokol
Nov.

Southern California Gas Co.

stock

r

reported
February for sale
company

—Blyth & Co., Inc., and associates, who have agreed to
buy any unsubscribed shares.
Jan.

mon

Brothers; Blyth & Co., Inc.;; Smith;? I/v West .Penh; Power Co^ ; (<f
-V : •'28^fe:#as;.announced
company plans to offer $12,^
v
000,000 of first mortgage bonds early in 1952, probably
if Texas Utilities Co.
in March., Underwriters—To be determined by competi¬
Jan. 23 it was reported company plans issuance and sale
tive bidding.. Probable bidders: Halsey,-Stuart & Co. Inc.;
of 400,000 additional shares of common stock early in
Kidder, Peabody & Co.; Lehman Brothers; Blyth & Co.;
March.
Groups: The First Boston Corp., Blyth & Co.,
Inc.; W. G. Langley & Co.; The First Boston Corp. Pro¬
Inc., First Southwest Co., Rauscher, Pierce & Co., Inc.
ceeds—For construction program. Registration—Tenta¬
and Dallas Union Trust Co. (jointly); Lehman Brothers
tively scheduled for Feb. 28.
Bids—Expected to be
and Bear, Stearns & Co. (jointly); Kidder, Peabody &
opened April 1.. / '""'i' V
Co. and Merrill Lynch, Pierce, Fenner & Beane (jointly);
if Winters national Bank Ac Trust Co., Dayton* O
Union Securities Corp.; Goldman, Sachs & Co. and Har¬
Jan. 8 stockholders of record that date were offered for
riman Ripley & Co. Inc. (jointly).f
subscription 50,000 additional shares of capital stock

Proceeds—For expan¬

Price—$50 per

Washington: Gas. Light Co.
^
12 reported that cpmpany is considering. plans to.
raise about $4,500,008 from the
sal^ of additional com-'

Underwriter—KiddeiV^^jp^ppah^r applied lirtb£ £^C&orv£rti&

Barney & Co.

right to subscribe on or before Feb. 20 for 100,000 ad¬
ditional shares of capital stock (par $20) on basis of one
shares

tion

about

Jan.

Weld & Co.; Lehman

the

six

23

determined

if Seattle-First National Bank, Seattle, Wash.
Jan. 15 stockholders of record of that date were offered

each

Jan.

expects to spend •
construction in 1952, of'

new

Halsey, Stuart & Co. Inc

sion program.

for

$184,989,683.

for

first mortgage bonds and $5
ceeds—For construction

ding. Probable bidders: Halsey, Stuart & Co. Inc.; Blytb
& Co., Inc.; Merrill Lynch, Pierce, Fenner & Beane; The
First Boston Corp.; White, Weld & Co. and Shields &

share

cost

more

$30,000,000 may be raised through new
The company is said to be considering a stock
spring and a bond sale in the fall. Under¬
writers—rFor stock, probably Stone & Webster Securities
Corp. For bonds, to be determined by competitive bid¬
ding, with the following probable bidders: Halsey, Stuart
& Co. Inc.; Union Securities
Corp.; Salomon Bros. At
Hutzler; Stone & Webster Securities Corp.; White/ Weld
& Co.; Kuhn, Loeb & Co. and Wertheim & Co.
(jointly!

Gas

body & Co., New York.

Diego Gas & Electric Co.
July 19, L. M. Klauber, Chairman, announced that the
company plans to sell $10,000,000 of bonds early in 1952
Underwriters—To be determined by competitive bid¬

Proceeds—To increase capital and

to

or

issue next

company

if Texas Power & Light Co.

San

(jointly); Lehman Brothers.

17

announced that company

was

financing.

planning issuance
mortgage bonds and

was

Co., 'Houston,;Tex;'/ •
applied to FPC for authority to con¬
struct a 1,350-mile natural gas transmission line extend^
ing from Texas into West Virginia. The prpjeitivi#^

declaration oi

A Rochester Gas & Electric Corp.
>Jan. 16, it was stated that the company plans to issue
and sell $6,000,000 of preferred stock in March and an
equal amount of general mortgage bonds in September.
An issue of about
$8,000,000 common stock is also
planned, probably for the Spring of 1953. Underwriter—
For preferred issue may be The First Boston Corp., New
York. Previous first mortgage bond financing was done
privately. Proceeds—To pay for new construction.

Co.

$40,000,000

Underwriters—To be deteritfined by com¬
bidding.
Probable bidders: Halsey, Stuart &
Co. Inc.; Kuhn,
Loeb & Co., Lehman Brothers and
Blyth & Co., Inc. (jointly); Salomon Bros. & Hutzler;
Harriman Ripley & Co., Inc.; Union Securities Corp.;
Hemphill, Noyes, Graham, Parsons & Co. and Drexel &
Co. (jointly); Kidder, Peabody & Co. and Merrill Lynch,
Pierce, Fenner & Beane (jointly); The/First Boston
Corp.; Carl M. Loeb, Rhoades & Co.
;

mon

ties, to provide additional capital funds or
stock dividends.

Underwriter—Goldman, Sachs & Co., New York.

Virginia Electric & Power Co.

petitive

Southwest Co.; Dallas

announced

Dec. 12 it

program.

and surplus. Underwriters—

Co., Pittsburgh, Pa.
stockholders will

(H. H.)

was

derwriters—Blyth & Co., Inc., and Merrill Lynch, Pierce,
Beane, New York.

Fenner &

expects to enter the new money
market
this
year
to finance its
1952 requirements.
Latest bond financing was done privately.
Traditional

$5,000,000 of debentures, with registration expected in
April for bidding in May.
Proceeds—For construction

Kupe & Son; and others.

16

spend

which

share for each six shares
held; rights to expire Feb. 6. Price—$40 per share. Pro¬

Robertson

to

construction and improvements in

new

Jan. 23

(par $20)' at the rate of one

Nov.

plans

company

if Texas Electric Service Co.
it was reported company
and sale of $8,000,000
of first

Republic National Bank of Dallas (Tex.)
Jan. 18 the Bank offered to its stockholders of record as
of that date an issue of 150,000 shares of capital stock

4

Walker, Austin & Waggener; First

announced

was

$52,000,000 for

Forgan & Co. an issue of 249,942 shares of 4.70%
cumulative preferred stock (par $100), thus exhausting
the amount of presently authorized preferred stock.

ceeds—To increase capital

it

24

the next five years and

Drexel & Co. and Glore,

through Morgan Stanley & Co.,
.

increase capital and surplus. OfferingExpected around March 1 to run for about 30 days. Un¬

if Tampa Electric Co.
Jan.

There are, however, no

edness.

tional

Thursday, January 31, 1952

& Co. Inc.;

41

To

*

...

and Financial Chronicle, 25 Park Place, New York 7, N.-Y.

in

'

Volume 175 ' Number 5086

(511)

Financial Chronicle

The Commercial and

...

Feb. 11,

Continued from page

2

ciation
the

The

Security I Like Best
are

less than one-sixteenth smaller.

which way the
inflation-deflation
balance
will
be

to

all sure

at

is restricted

during the next twelve months,
will dictate the
level of interest rates a year from

tilt

but it is this which

but within

It

months will become

5

sociation
the

annual

The

Annual
Midat the Benjamin

Dinner

Winter

vestment account.

Franklin

Hotel.

The

terly
on

it

the close

conditions.

yielding about 2.60%,
months and
is callable in 7 years 5 months.
It is thus short enough to provide
10 years 5

of

EVENTS

earnings

Governors

Winter

Meeting

New

Association

Board

of

the

at

Edgewatei

and

Dividend

dividend

interim

(60^)

W.

No.

cents

share

per

Birmingham, Alabama

its

on

cents

EDWARD

cents

share has been declared

per

stockholders of record

at

business February 9,

.

E.

L.

1,

1952,

the close

ord

March

the close of business

NOETZEL

CREPED

Secretary

January 25, 1952

PAPERS

•

GIFT WRAPPINGS

Treasurer

•

DIVIDEND NOTICES

,

Debenture: The regular quarterly

•NCO»eonA*«t»

dividend of $2.00 per share on

the

divi¬

today declared a

per share on the
the Company payable

of

.

.

#

authorized the distribution of
March 18, 1952 to the
holders of record at the close of business on
March 11, 1952 of American shares issued
under the terms of the Deposit Agreement
dated June 24,1946. The dividend will amount
to
approximately $1.66 per share, subject,
however, to any change winch may occur in
the rate of exchange for South Africa funds
prior to March 7, 1952. Union of South
Africa non-resident shareholders tax at the
rate of 7%c/c will be deducted.
By Order of the Board of Directors,
H. E. DODGE, Secretary.

3, 1952, to stockholders of

186th

Common Dividend and.

Common Stock

(75tf)

per

cash

on the Common Stock of
Corporation.

1952

record at the close of business
1952. Checks will

Walter A. Peterson, Treasurer

3,

holders of record

February 15,1952.

1952.

•

A

of

quarterly di¬

regular

vidend of

/ ]QQfU

Framingham
1

Treasurer

/

Mass.

March 20,

able

INCORPORATED

share

Stock

Dividend

Jan. 29,

No. 164

1952

declared, pay¬

has been

_

per

Common

the

on

year

of Directors today
quarterly dividend of
50^ per share on the outstand'
ing capital stock of this Com'
pany, payable March 1(), 1952,
to stockholders of record at the

1952 to

The

stockholders of record

*

"A

the

of business

close

not

dividend

of

cents

fifty

K50c) per share was declared
on
the
Common
Stock
of
the

payable

Corporation,

March 31, 1952, to Common
stockholders of record at the
close of business on March

1952.,

1,

The
one

declared a dividend of
three-eights
cents

also

Board

and

nine

dollar

the $4,375 Cumula¬
the Corporation,
payable March 15, 1952. to Preferred stock¬
holders of record at the close of business
($1.09375)
tive

on

share on

per

Preferred

March

I,

Stock

The

declared
15 cents

Stock

share

Jr.

McCASKEY,

on

the Common

of

record

Secretary

Cumulative

$4.25

CONSECUTIVE
R. S. Pruitt,

Ml

|||

ON COMMON STOCK
.

ThcBoard of Directors declared
a

regular quarterly dividend on

the Common Stock of 40 cents
per

share, payable March 2,

1952, to stockholders of record

1

26,

Preferred

close

the

Board

per

a

share

on

of business
.

■

tion-wide subsidiaries

of Cities Service Company

Directors

has

dollar ($1.00)

stock, payable
of record as of the close

its $10 par value Common

10, 1952, to stockholders

March

y-

of

regular quarterly dividend of one

February 15, 1952.

'




.

•

-

»

W. ALTON

JONES, President

of

Stock

1952

23,

Fifty

na¬

—principally^

1952

Company

declared
Cents

Stock,

I]

Ohio Finance Company
General Public Loan

New York, January

Dividends aggregating

i:

on

have today been

29, 1952.

$3.75 per share on the
Railway Company

January

of record as of the

business February 4,

1952.

WILCOX. 2nd
Secretary

declared, payable as follows:
To Stockholders

Hooker

quarterly dividend
per share on its
payable February 27,

ANSLEY

Loan Service Corporation

ml

of

a

Public Loan Corporation

l

NOTICE

DIVIDEND

Amount

$1.25

($.50)

to stockholders

close of

Dividend

Directors

of

Beard

The

Common

Financing the Consumer through

Company
t

Preferred Stock of Southern

of

declared

of record as of
business March 3, 1952.

Electrochemical

Dividend Notice

quarterly dividend
$4.25 Cumu¬
Stock, payable March
a

1952 to stockholders

Common

2Wff

January 28,1952

Hooker
January

m

D. L. BARNES, JR.
•//•A

of
on

$1.0625 per share on its

of

February 15,1952.

COMPANY

Railway

Company,

declared

1952

23,

lative

1

Preferred Stock

Directors

of

Board

The

Electrochemical

January 25, 1952

Southern

Dividend

DIVIDEND

Lexington Ave.

/

Hooker Electrochemical Company

UF ILLINOIS

February

Secretary

The

W. D. Bickham, Secretary

INVESTMENT COMPANY

29, 1952.

CITIES SERVICE

7,

January 24,1952.

payable March 20, 1952, to

stockholders

420

February

quarterly dividend of

a
a

business

^

Board of Directors of Avco

Manufacturing Corporation has

New York 17, N.Y.
A.

of

a

1952.

H. STEFFLER
Secretary & Treasurer

WALTER

of

1952.
S.

be closed.

close

meeting of the Board of Directors of
Allegheny. Ludlurn - Steel
Corporation
heid today, January
sa

books will

transfer

The

Family of .

Board

declared

"

At a

the

stock¬

to

OIL COMPANY

STOCK

COMMON

at

Penna.

1952

SOCONY-VACUUM

March 10, 1952.

Pittsburgh,

share

3,

Greensburg, Pa.

A. B. Newhall, Treasurer

January 29. 1952

Allegheny Ludlutn Steel Corporation

DECLARED.

25* per

Payable March

1952, to stockholders of

record Feb. 11,

.

Harry L. Hilyard,

January 26,1952.

K0BERTS1IAW-FULTON
CONTROLS COMPANY

February 8,

be mailed.

—

R. GOULD MOREHEAD,

of 30 cents

Company, payable in

March 3, 1952, to stockholders

on

24

NO.

Common Stock

1952.

N. Y., January-23,

share on the "A" Common and
VotingCommonStockswill be paid
Mar.

the Common Stock of The

American Tobacco

DIVIDEND

.?

QUARTERLY

Treasurer

per

share and an extra dividend of
(§1.00) per share have been

declared upon

share has been declared, payable

March 21. 1952, to holders of record
at the close of business on February

.Cents

Dollar

One

*

.

REGULAR

January 29, 1952

A quarterly dividend

regular dividend of Seventy-five

A

'

:

"A" Common and Voting Common:

Dividend

Extka

an

Dividend No. 41

GAS CORPORATION

record

Feb. 11, 1952.

York 5,N.Y.

SUBURBAN PROPANE

said dividend on

New York,

Debenture Stock will be paid Mar.

New York 3,N. Y.

111 Fifth Avenue

-

•

shillings

twelve

The Directors

the

on

of

Ordinary Shares
March 7, 1952.

February 7, 1952.
Declared

Secretary.
Dated: January 25, 1952:

Dividend No. 21

payable
shareholders

H. C. STUESSY,

H. D. McHENRY,

~

O'okiep Copper Company
Limited
/

dend

at

at

February 29, 1952.

on

The Board of Directors

of record

13,

of rec¬
the close of business

1952 to stockholders

Manufacturing

to

March

payable

pany,

117

1952.

January 29. 1952

regular quarterly dividend of 40(*

Southern Natural Gas Com¬

President.

issued and outstanding,

4, 1952,

of

Stock

Common

the

on

SHUTTS,

L.

1952

28,

share has been declared

per

payable March 1, 1952, to
15, 1952.

dividends

62)^ cents

A dividend of

per

stockholders of record February

COMPANY

Dividend No. 52

Common Stock

Preferred Stock ($30 par)

$1.76 Conv.

1952

all

MANUFACTURING

EATON

dm&/u£>cvri t/otfaezo-^OTryati/ruf
^
(f

27,

44

.

share on its
Common Stock ($15 par)

January 30. 1952

Atlas

COMPANY

regular quarterly dividends:
35% cents per share on its
4%% Preferred Stock ($30 par)

following

.

GAS

NATURAL

declared the

of Directors has

The Board

Company has declared a dividend
of Fifty Cents (5(K) per share on
the 1,792,520 $2.00 par value
common shares of the Company

168

of sixty

Company, payable March
to

W. J. ROSE, Secretary.

per

SOUTHERN

Secretary

COX,

DIVIDEND NO.

the capital stock of The Borden

on

\

A

Company

JOHN W. BRENNAN, Secretory

The Board of Directors

A regular quarterly dividend of

on

The transfer books will remain open.

DIVIDEND NOTICE

year

New York, January 30,

York,

NOTICES

DIVIDEND

An

33 Pine Street, New

1952

this day declared a

Directors

de¬

January

DIVIDEND

Atlas Corporation

Board of

UTILITIES COMPANY

Cleveland 10, Ohio

~~

seventy-five cents (75c) per share
on the Common capital stock of the Com¬
pany issued and outstanding in the hands
of the public has been declared payable
March 10, 1952, to the holders of record.
at the close of business February 11,1952.

York, N, Y., January 24,

United States Pipe and Foundry

of

Hotel.

Beach

//

/

and Foundry Company

United States Pipe
New

IOWA SOUTHERN

of Investment Bankers

AMERICAN iiAS

Slock

Secretary.

ALEXANDER,

quarterly dividend of seventy.five cents (754)
share on the outstanding Common Stock of
Company, payable March 20, 1952, to stock¬
holders of record on February 29, 1952.

30

AMI ELECTRIC COMPANY

Common

H.

1952.

the

1951, payable at Room
No. 3400, No. 20 Exchange Place, New York 5,
New York, on and after February 21, 1952.
The
dividend on the stock will
be paid to stock¬
holders
of
record
at
the
close
of business
February 7, 1952.
the

for

of Eaton

9

of

28,

per

$5.00

past

DIVIDIND NOTICES

Philadelphia, Pa.

1952

The

to b; payable on tne capital stock,,
$10.00 to be the amount payable on Class
"B"
Deb:ntures (Payment No. 35). out of net

(Chicago, 111.)

8-9, 1952

ing of yield rates. Because of the
major alteration in market yield

patterns developed during the

fixed

has

D.rectors

of

W.

share to a substantial
degree in the profits which would
result from a reversal of recent

marked lower¬

JOHNS HOPKINS, Treasurer

January 22, 1952

and

Field

Investment

In

Feb.

trends leading to a

Board

COMING

price loss in the event of a further
rise in basic interest rates; it is long
to

quar¬

of

14,

D.

$50.00 the amount payable on Class "A"
Debentures
(Payment No. 56), and a dividend

protection against a major market

enough

a

clared

This issue,

matures in

THE UNITED GAS IMPROVEMENT CO.
•

declared

has

COMPANY

The

1962/59 will provide best average
results under today's

t<Lr

sixty cents per share payable
to stockholders of record at
business on February 21, 1952.

dividend

March

Directors

of

goes

15,

Treasury 2t4% bonds of June

Singer Manufacturing

Board

January

without
now.
April 17, 1952 (New York City)
In these circumstances one must saying, is of the highest grade and
widest marketability.
For an in¬
Security Traders Association of
hedge.
The choice of a short¬
vestment officer with funds avail¬ New York-Investment Traders As¬
-term Treasury bill, for instance,
able
for
commitment
requiring sociation of Philadelphia bowling
would
implicitly forecast higher
of principal, possi¬ tournament.
rates within three months; selec¬ yield, safety
tion of the nearly 21-year Victory bility of profit and limited scope
of
loss, I think Treasury 2Va%
2V2% bonds v/ould forecast lower
DIVIDEND NOTICES
bonds, June 15, 1962/59, will fill
rates and rising prices. I therefore
the bill.
believe as I did last year, that
GREEN BAY & WESTERN RAILROAD
security,

record

of

stockholders

to

Company

Association

Traders

par

February 29, 1952.

(Philadelphia, Pa.)

Philadelphia

eligible for commercial banks' in¬
The

UJ

Normandy Hotel.

Investment

on
the Capital
value $13.30 per
share,
has
been declared,
payable March 31, 1952.

share

per

Stock,

NOTICES

DIVIDEND

Traders As¬
winter party at

dividend of 33c

A quarterly

Waldorf Astoria.

(Minneapolis, Minn.)

Feb. 21, 1952

of

annual dinner at the

New York

at

Twin City Security

to ownership now,

as

Winter" dinner

annual

DIVIDEND NOTICES

Security Traders Association of

Copley Plaza Hotel.

Feb. 14, 1952

the determi¬ year, this relatively short-term se¬
nants of money rates. The outlook, curity, little less than one-half as
as
most economists agree, is by long as the longest Government
bond available, provides a yield
no means clear.
It is not possible
control,

tarian

April 18, 1952 (New York City)

1952 (Boston, Mass.)

Boston Securities Traders Asso-

of

Date of

Record at the Close

Payment

of Business on:

Mar. 15, 1952

Feb. 15, 1952

14, 1952

May 15, 1952

Sept. 15, 1952

Aug. 15, 1952

1.25

June

1.25

A dividend of One

Dollar ($1.00} per share

1,298,200 shares of Common Stock with¬
out par value of Southern Railway Company
bos today been declared out of the surples
of not profits of the Company for the fiscal
on

year

ondod December 31, 1951, payable ea
1952, to stockholders of record ot
February 15, 1952.

March 15,

the dose of business on

Corporation
,

J. J. MAHER, Secretary.

The Commercial and Financial Chronicle

44

Thursday, January 31, 1952

..

.

(512)

BUSINESS BUZZ

Business

Washington...
Behind-the-Scene Interpretations
from the Nation's

in the budget
by President Truman,
"holes"

many

submitted

informed

the

betting

are

in

influence

local

reducing

the

below

the

expenditures

of

$85 billion projected by the Presi¬
dent.

budget,
in¬
that it is tricky as usual.

Close

of this

analysis

like most of its predecessors,
dicates

instance,
after
giving an
over-simple table showing a cut

"non-security"

in

billion

$2

expenditures

with

compared

as

1950, the President

the fiscal year

Interest

on

expenditures for

indicates,

grail other (i.

e.,

the following

non-security) pro¬

Education

and

research"''

gen.

1,478

Market—Curtiss

1,074

1,450

1,003
775

1,479
31

scriptive

-——202

243
1,484

Transportation & eommunic.
Finance, commerce & indust.
Labor

507

government"

"General

the

of

tion

budget

the

way

lion,

the enormous

even

Budget," said the Presi¬

analysis

the

eration,

official

the

as

he

two

up

the

years

ago

compare

Presi¬
budget

the
the

In

two

of

message

to

to

with

assertion.

ago

years

the

"non-security" payments, to show
bow the President arrived at this

purpose

control

projects

figure.

from rivers and harbors

work, but

obtained by
digging tip older budgets. Against
a
proudly announced $2 billion
cut in total "non-security" expen¬
ditures, it is found that expendiiiitres
for veterans actually
de¬
creased by $2,448 million. For this
the President obviously could not
take credit. Veterans' entitlement
to jobless payments has run out,
add their entitlement to free edu¬
cation
is running
out.
This is
simply inevitable under the GI
statue
which
sets
termination

lumped the two together.

This could only be

dates for these

go

benefits.

using

the pres¬
but for the

Mr. Truman's figures of
and

ent

past

years,

stautory dropping off

iniliion.

this is only part of
the story.
In his text of budget
discussion, the President uses the
'"'functional" budget, a practice
which
has drawn
much praise

outside Washington
who haven't spent hours of pains¬
taking care in comparative budget
from persons

The beautiful use of a
"functional"
budget
from
Mr.
Truman's viewpoint is that regu¬
lar
and
recurring expenditures
can
be shifted about almost at
analysis.

to

and

projects
in
the
1953
budget, plus a proposed start on

purpose

Lawrence seaway of only

St.

$15 million, plus TVA, plus other
and
public
power

reclamation

projects,

total

carried

as

in

the

1953

tables, aggregates $1,111
As near as a comparable

message

be obtained to the

can

1951

give the budget a better

facade.

Expenditures

"functional

stance,

constantly

are

within these

categories."

For

in¬

programs"

"international

Includes the entire expense of the

personnel

of

the

State

Depart¬

and "defense" blankets in

ment,

the enormous civilian bureaucracy
of the defense agencies.

virtually

Without

of

exhaustive

a

the

sonal

appropriations.

plus Truman's small per¬
following; plus a wing of
Republicans who will stress ne¬
cessity of "no let-down" in the
country's
military and
foreign
commitments.
the

or so

comparative

re¬

search, it is impossible accurately
to

analyze

the

meaning

of

the

following figures, which list most
actual? outpayments

for

"non-security"!expenditures

for

Of

the

fiscal
as

'50

versus

projected totals

listed by Mr. Truman for 1953,

but they do tend to indicate any¬




end

probably

Congress

appropriations

cut

to

seem

below

Truman's

maybe

even

requests

by

something approach¬

that

show

«

These

*

#

to some
that despite the President's claim
for
economy
in
"non-security"
expenditures, there is room for
economy.
Nevertheless, the out¬
dim

is

look

suggest

figures

greatest

for

cause

The

economy.

for pessimism on

this score is that influential House

elements who

in the past HAVE

economize, even if with¬
out notable success, have given up

tried to

fight

the

effect

in

and

served

notice in advance that they won't
do

than

more

appear

to

cut the

In the past several years,
been these elements
have
initially
sought

budget.

it usually has
who

few

years

the idea of

on

division

the

ago

abandoning

charging
the

inspection

the

the packers.

appro¬

it

cost

to

A 1906 law prohibits

interstate

unless

is

shipment

only $700

of

reduction

million in Mr. Tru¬

of

meat

a

inspection

itures

This

the

in

sion

is

for

because

current

year.

"cuts"

the

part

large
of

the

were

a

postponements

merely

appropriations for military and

other

statutorily-authorized
"social

and

progress"

sufficient."

pro¬

given

#

Until

unless

and

the

special

SEC

the

chairmanship
Heller

Louis

B.

cruits

itself

the

subcommittee

investigating

under

of

Y.)

N.

(I).,

Rep.

something of

a

re¬

staff,

SEC investigation is unlikely,

unless

the

week per

And

pied

entirely

lief

personal
that

is

a

will

too

short session to

close

members

the

be

give

a

staff

fore

do

consisting

lot of spade

a

the committee

much

of

idea

an

can

what

of

even

it

division of
Department of Agriculture is
striking for something which is
fond

an

dream

of

any

$120

—paper

Operating

bureauc¬

Results

of

Depart¬

ment and Specialty Store Branches

—Milton

P.

Research,

Brown—Division

Harvard

of

Business

School, Soldiers Field, Boston 63,
Mass.—paper—$2.50
Silver

Market,

1951—36th

An¬

Review—Handy & Harman,
Street, New York 38,
Y.—paper

82

Fulton

N.

Taylor
Trading
Technique —
Trading method composed of four
components:
the
making
of
a

trend; "Taylor Automatic
Reader," interpretation and
this
for

"reader"

and

basic

Tape
use

of

method

buying and selling—$25—Lilly

Publishing
Station

Co.,

P.

O.

Box

7265,

G, Los Angeles 37, Calif.

per

For

Large

Appreciation
WE

however,

will

Potential

(Special

RIVERSIDE CEMENT CO.
re¬

CLASS B
A

in

and

Claude

—

John

E.

leading

(common) STOCK
producer

fast-growing

Analysis- of

this

Company and

review

the

Cement Indus¬

of

on

Co.,

1717

Slothower

East

request.

Available around

12

LERNER & CO.
Investment

&

cement

Southern

P.

have become affiliated with J. W.

Hicks

of

California.

try available

to The Financial Chronicle)

Colo.

SUGGEST

shortly

end to this little game.

Macon

The meat inspection

the

the

pay

Two With J. W. Hicks

should

State of New York,

Broadway, New York 6, N. Y.

a

#

*

only, that

concerns

arid may or may not coincide with
the "Chronicle's" own views.)

get

Kline

H.

Pearson—Insurance

inspector, their inspect¬

DENVER,
*

packers,

work be¬

investigate.
i.

meat

flect the "behind the scene" inter¬
pretation from the nation's Capital

The be¬

accountants, analysts, and lawyers
must

has

(This column is intended to

the

real study

attention.

"in¬

occu¬

in

much

of

O.

then they couldn't sell meat.

put

thing,

285

advises

packers

its

will be taken away from them.

ors

For

one

if

be

to

to

to

year

division

the

and

mostly the big

it is reported, to amount to much.

subcommittee

last

on

divi¬

the

packers

firing notices

Congress,

the

nick

So

inspectors,

*

meat

ride

free

appropriations proved

wel¬

Con¬

the

However,

Congress
to

deal

repealed

division's

got
it

of this

year

packers.

allow

Uninsured

the

nual

quickly

man's estimate for actual expend¬

of

Department,

of

health.

After
gress

$1.50

—

P'ederally-inspected.

public

shows up, however, in a

paper

—

The—George

Carl

and

unalert Congress

an

The theory was the protection

This $4 billion cut

*

million for the current fiscal year.

A

actually sold

ing the $4 billion cut made in 1952

grams.

projects for 1953 will
separately amount to expenditures
of $562 million for '53, versus $503

11, N. Y.

Motorist,

6'1

appropriations.

was

1953, the President
categories. These
flood control multi¬

racy, or

priations for meat inspection, and

same

Colfax

Securities

10 Post Office

Square, Boston 9, Mass.

Telephone

Teletype

HUbbard 2-1990

Avenue.

53 69

economy.

the

In
will

be

mizers.

Senate, of course, there
determined

some

The

stacked

week

mili¬

and

For 1952 and

used

Specimen

(lower prices in quantity)

level;

■

being shifted to and

Mutual Aid

tary expenditures at the Truman

fare

budget message, the total
$1,112 million two year ago.

a

what amounts to a taxing
system of its own, freeing it of
dependence upon
Congressional

reclamation
con¬

York

gentlemen, since we have finally
unanimous vote, we stancLadjourned!"
now,

Problem

who favor

In

The total of flood control multi¬

the

reached

will

utterly

separately,
fusing the picture.
projects

and

generation,

purpose

However,

will

transmission,

On the
budgets

both

in

he

hand,

other

listed additional power

of veterans'

benefits, "non-security" expendi¬
tures would have increased $448

did not separate multi¬

flood

million.

the face of it, even

on

President

Tax

Partnership, Fiduciary,

—

Hall, Inc., 70 Fifth Avenue, New

possible

it

figures

dent's

the

Corporation—Completely worked
out for filing in 1952—Prentice-

budget

comparable

set

make

actual

member

of

use

of

Income

Federal
Returns

or

nowhere

President

the

basis
to

the

for

Geneva, Switzerland—paper.

Presi¬

table itself discloses.

President

of

sentence

the

projects,

multi-purpose

But

ill

Europe

Economic
Commission for Europe and the
press) with supplement of Tables
—Research and Planning Division,

talking about combina¬

was

tion

that

fact

figures

break-down

and

dent

of

Economic Commission for Europe,

this

thing,

one

gives

give comparative figures back to,
and
including
the fiscal
year
1950, which would make possible
en

For

Survey

(Provisional Edition cir¬

—

governments

Budget of 2 years

as my

unabridged

for '53 did the

budget

Economic
1951

1953:

culated

At no point

$2 billion.

or

Ohio.

dent, "contains funds for only half
as
many
general flood control

projects
ago."

de¬

book may

or

—

is

for flood control AND power gen¬

$22.3
billion in fiscal 1950 to $20.3 bil¬
from

was

literature

purchased with 5-day exam¬
period with refund if not
satisfied
Tri-State
Offset
Co.,
817-C Main Street, Cincinnati 2,

Presi¬

the

from

statement

this

Stock

the

be

"jiggled" is afforded by analyzing
dent's message for

in

Dahl—Free

ination

curious and striking illustra¬

A

been rising."

reduction

Profits

Consistent

024

123

2,783

Natural

omitted

The

—$2.00.

Agriculture
resources

MacMillan

City—cloth

Company, New York

339

262

have declined 9% since the
fiscal year 1950. The decline has
occurred during the period when
the costs of goods and services
which the Government buys has
grams

f

1953

debt—~— $5,817 $0,258
2,214
2,082

public
Social Security
Housing, etc.
on

of Study Group on

Business Income—The

Fiscal Year
1950

Concepts of Business

Changing

Income: Report

Millions of S

"This

the table

page

a clear case of reduction
"non-security" expenses.
„

observed:
"As

Bookshelf

thing but
of

For

of

JL 1/ LA

that

Congress i§ unlikely to take any
action which will have any ma¬
terial

Man's

%/r\|i

g~A

-ms%

jljL I HAL

Capital

D. C.—Despite

WASHINGTON,
the

/■

against

it.

The

Trading Markets in

econo¬

however,

votes,

are

FIRM

TRADING MARKETS

word

passed is that even if economy in
military expenditures is possible
without
harming military effi¬

FOREIGN

ciency, "a cut in military expendi¬
tures would be misinterpreted by

f.ARL MARKS

our

European friends."

One bloc of Republicans in

the
handful of
conservative
Democrats,
will
make a determined fight for econ¬
Senate,

omy.

aided

a

will be opposed by
majority of Southerners

They

perhaps a

by

FOREIGN

SECURITIES

QO. INC.

Allied Electric Products

Kingwood Oil
Standard Cable

SECURITIES SPECIALISTS

50 BROAD STREET...NEW YORK 4, N. Y.

TEL. HANOVER 20050...TELETYPE: NY 1-971

Hiil, Thompson & Co., Inc.
Trading Department

70 WALL
Tel.

STREET, N. Y. S

WHitehal!

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