Full text of Commercial and Financial Chronicle : January 6, 1955, Vol. 181, No. 5392

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ESTABLISHED 1S39
OF

MICHiGAN

Commercial
Chronicle
7

1955

an

e

uSS$sru

UDKAXT

Reg. U. 8. Pat. Office

Volume

Number 5392

181

New York 7,

Cents

40

Price

N. Y., Thursday, January 6, 1955

a

Copy

EDITORIAL

1955—The Consumer

We See It

As
In his

*

nor

Is Back in the Driver's Seat

inaugural address last Saturday, Gover¬

By

,it is unorthodox,

and

no

Industrial
Federal

approach because

answer

merely because

Dr.

requires a radical revision of present machin¬
ery or prevailing prejudices."
In thus promising a "bold adventurous ad¬
ministration," the Governor appears to be imi¬

tating Franklin D. Roosevelt, who in 1933 seemed
to

popularize the notion that whatever is is wrong
misquote the poet—and to lead the unthink¬
ing into the supposition that anything new and
untried offered a good prospect of being construc¬
tive and helpful.
—to

Governor

be

1954
it

It

the

will show

best

of

works

that

1954

what

than

before,

ever

business

made

so

and
good

money.

shelf

as

of at

in
that's

a

Continued

on

29

County

of

Bankers

a

talk

by Dr. Alderfer
Paoli, Pa.

at

a

page

instead

of

the

ease

that

minds

those

of

—

who

tampering with lessons al¬
learned, let it first be said
have

there

been

no

material

changes in the tax law with respect
to tax-exempt bonds. The municipal
bond buyer can continue to follow
the old

With

"after-tax"

respect

changes which

to

As

William

Seidman

pointed

vantageous

the

bonds,

law makes

new

modify the previous rule of thumb

out,

to

yield.

taxable

all bonds, notes, and the

35

L.

maxims, confident in the fact that he is achieving

the maximum

it

for

like issued after Dec. 31, 1954.

has

been

buy taxable

rule

the

bonds

at

a

it

that

is

ad¬

discount rather

meeting of the Chester

Continued

Association,

SECURITIES NOW IN REGISTRATION

par

discount.

a

ready

it

big operator, is the biggest single

on

discount

a

a

dislike

Businessmen, who buy a lot of
things and services from each other,
were just a little cautious last year.
They were very cost-conscious, held
Alderfer
onto
the
reins tighter,
had to be
convinced
before
they spent
any
They bought hand-to-mouth and sold off-themuch as they could.
always

candlestick

and

premium, while there is an
advantage
in
buying
tax-exempt
bonds at par or at a premium instead

was.

Evan B.

at

at

To

as

baker,

buyer.

bonds
or

and

votes

butcher,

tax law has its particular effect on the

—

times; but

and

every

new

"after-tax"

The steak-eating,
car-buying
consumer.

who

a

The old rules for obtaining a maximum
yield on bonds (see Commercial and Finan¬
cial Chronicle
Oct. 22, 1953) will
have to be revised in light of the
provisions of the new law. The old
rules may be summarized as follows:
All other things being equal, there
is an advantage in buying taxable

book¬

ruled by no one but his wife.
Consumers spent more money

"Substance

page

show.

not

too little that is new

on

the

consumer.

man

with

Along

walks the family dog. The man who
rules in our democracy and is over¬

Uncle Sam,

Continued

discount
while there is an advan¬
tage in buying tax-exempt bonds at par or above. Says
there have been no material changes in the tax law
affecting tax-exempt bonds, but ether classes of issues
are subject to new rules.
Finds two "loopholes" closed
for reducing taxes on bond interest income.

second best—and who made it

The

The

have

along lines which

before

tax law it

new

advantage to buy taxable bonds at

an

maker, the
old

tax-paying,

us.

At any rate, there is all
in any proposal to proceed

was

was

so?

ings of experience be sought out and followed.
To this point, so it seems to us, the New Deal,
the Fair Deal, and all too much of the actual pro¬

brought

months

under the

\

City

instead of par or at a premium,

outlays.

record will

sisted that in both word and deed the best teach¬

the Eisenhower Administration

Mr. Seidman points out that
is

in

keepers can give a final tally on 1954.
But it isn't
really necessary to wait until the final returns from all
economic precincts are in; 'we know about what the

:

of

increase

several

if

Certified Public Accountants, New York

Philadelphia

bond

will

1955

we assume,

1

gram

of

consumer

will

construction

ment

hopes to place
himself at the head of the political cult which
seems
to hold an inextinguishable faith in the
doctrine that the rank and file of the people are
inow so in revolt against the past that anyone
who despises experience and makes a boast of it
must attract a large following. We shall not make
any predictions about the success of the distin¬
guished gentleman in Albany, but we may re¬
mark rather wryly that the Governor of New
York has the dog biting the man; a really "bold!'
proposal today—a story which has the man bit¬
ing the dog—would seem to be one which in¬
Harriman,

Alderfer, foretasting

dential

*

Seidman

Seidman &

Economist,

Bank

Reserve

Buyer

By L. TV. SEIDMAN

spending and resi¬
1955, estimates
consumer
spending will rise $2 billion, thus insuring a
continued demand for non-durable goods, as well as
greater spending applicable to durable items. Says heav¬
ier spending may also be expected for services. Looks,
however, for a declining trend in capital outlays, but
maintains decline in Federal expenditure will be more
than offset by increases in state and local govern¬

it

;

Affects the Bond

EVAN B. ALDERFER*

Harriman of New York had this to say:

"I propose that we reject no

;

How the New Tax Law

Underwriters,

dealers

and

investors

in

on

page

22

cor¬

securities are afforded a complete picture of issues now registered with the SEC
potential undertakings in our "Securities in Registration" Section, starting 011 page 41.

porate

DEALERS

and

State and

m

Established

U. S. Government,
State and

Municipal

U.
l

CHEMICAL

S.

Government

—

Preferred

and

Municipal,

Common

BANK
BOND

DEPARTMENT

ST., N.Y.

Chicago
New

& CO.

Bell

System

ir

★

RE 2-2820

N. V. 6

Teletype
★

NY
★

OF NEW YORK

9 9

WALL

122 Years of Service

NEW YORK

Miami

Dept. Teletype: NY 1-708

Active

To

Dealers,

Banks

and

Refined

—

T.L. Watson &Co.
Liquid

Stock Exchange

Exports—Imports—Futures
50 BROADWAY, N. Y.
DIgby 4-2727




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Executed

On

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CANADIAN

Light & Power Co.

DIRECT

Goodbody
NEW

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WIRES TO MONTREAL AND

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Members N. Y. Stock Exchange
American

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Canadian

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Geneva,

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Beach

Maintained

Markets

CANADIAN
Commission

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Trade

Canadian Bank of

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5, N. Y.

Chicago

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to

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YORK 4,

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1-2152
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LAMB0RN & CO., Inc.

of

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NEW

Members N. Y. and Araer. Stock Exchs.

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Members New York Stock Exchange
and

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ST.

upon

Boston

Exchanges

N. Y. 6

Teletype NY 1-2708

Telephone:

Enterprise

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2

(58)

For

The Commercial and Financial Chronicle

The

Banks, Brokers, Dealers

The Bank of the Manhattan Co.

Security I Like Best

This
Forum

Chase National Bank

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

Central Indiana Gas

participate and give their

they to be regarded,

are

Collins Radio
Cross

New York

Gulf Coast Leaseholds

It is

only

security
people have

favorites.

Corporation
Associate
American

WOrth 4-2300
BOSTON

Teletype NY 1-40

OFFICE:

PHILADELPHIA
Lincoln

Direct

State

84

Liberty
Private

Street

OFFICE:

mini¬

a

Hartford, Houston, Philadelphia,
Portland, Me., Providence, San Francisco

two

dessert?

Rights & Scrip

are

who

appetizer
a

or

great many

favor

less

active
op¬

portunity of this type is City In¬
the

on

New

York

Exchange at about $17

owners

per

in

Exchange

Stock

American

Stock

entertainment,

Exchange

share-

its

stake in real

a

ccunt.

Members

York

New

Investing gives

estate

both

at

and

dis¬

a

Botli with competent own¬

ership-management.

share cash. 20c

1

BROADWAY, NEW YORK 8
TEL.

REctor

2-7815

vesting
L.

in

No

individ¬

Gas

outstanding

Company

Company

almost

one-quarter

common

directors

shares.

also

are

sub¬

stockholders.

Real

estate

is generally one

age

with

man

He

feels

it

safe

pass

his

cn

morning

invest.

buy

to

Scott, Horner &
Mason, Inc.

there.
is

a

some¬

business.

The

33

are

.one

he

work

can

every

it's

sure

actually,

complex and

operators

LD

feel

However,

very

estate have

Lynchburg, Va.

to

way

and

aver¬

to

money

is

of

still

realty

hazardous

big fortunes in real

been made

who

what

they

about and not tyros who make
or two
transactions in a life¬

time.

for

natural

unique 27-square mile tract of
17,000 acres less than 30 miles from
a

Thruway.

Oregon Power

the

to

The

here

is

Bridge
York

New

company's

plan¬

thorough

very

and

includes surveys to chart the lo¬
cation and future growth of areas
best
suited
for
residential,
re¬

laboratory, commercial and

other appropriate
the

uses

well

as

The

resources.

cost

this

of

lions

in

to

capital

headway

has

gains

the

over

Encouraging

come.

been

made

new

the

in

exploitation of its non-real estate
the

entertainment

field

the

company is interested in several
theatres in New York City and in
the
production
pictures.

of

three

motion

and excursion vessels in live east¬

instead

of

stocks

and

bonds.

The latest

actual

value

of

Citv

In-

Line

ports.

for
not

book

be

estimated

at

Light

Pacific Coast Securities

—

The

been

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

wise is

$15.

at

The
is

policy of the management
primarily at security

directed

gain

1954,

were

lion

of

with

net

Bayer
Farben

City
at

what

Tele, NY 1-3222




the

Manhat¬

excessive

and

and

apparently
over-building of

hotels and apartments

in the

1929

Investing
real

a

are

bought

price has
the

but

line

is

about

City Investing has been cash¬
ing in its profits from this type of
unrealized
will

capital

in

be

these

realized

*Mr. G. M. Loeb

is

for

"do-it-yourself"

in

ifs

Investment

profits
8th

in

the

printing.

gain

and

taken

Survival,"
book

stock

are

mortgages

the author of

Battle

selling
make

marketas

its

on

"The

best-

how

market,

to

now

need lor instant, frequent, ac¬

a

departments, buildings, etc.
Telescriber

Messages
stylus
sender

reproduced

it

sees

of

role

a

At

paper.

to

inac¬

sender.

Business

used

the telescriber.

on

have

over

they

through

TelAutograph
which

ing their
of

business

being made possible
the control afforded by

are

systems

way

America's

plants,

communications

are

into

steadily find¬

more

most

and

more

important

warehouses,

institutions

and offices.

stations.

TelAutograph's telescriber is
communication
the
from

sender's
one

instrument

transmits
own

industrial

by

and

commer¬

point

to

remotely

located

distances

of

12

employment in

one

miles.
any

in

handwriting,
or

stations,

more

up

They

unusual
with

appeal

vision—

with

knowledge
Japanese potential.
Call

or

write

Yamaichi
Securities Co., Ltd.
Established
Home

Office

Brokers

111

&

1897

Tokyo—70 Branches
Investment

Bankers

Broadway,N.Y.S COrtlandt 7-5680

induced by the

phenomenon

increasing size and complexity of
modern

trial

plants and offices. Indus¬

applications

TelAuto¬

for

graph equipment include produc¬
tion control, materials handling,
control, maintenance, job
accounting, transporta¬

quality
cost

tion

control,

A

Continuing Interest in

Southern Advance Bag & Paper

and

central

filing,

in
progress
control.
In short, TelAutt graph has come of age and
order,

announcing

almost

every

accounting

controlled
whole

work

may

Parchment

communications

Keyes Fibre Co.

be

coordinated

and

in

in part by TelAutograph

or

Corp.

Kalamazoo Vegetable

phase of production

related

and

and

Grinnell

sales

systems.

The recent experience of North-

Aircraft

rup

illustrates

possibilities

of

the

BOENNING

& CO.

to

find

operation ir-

Philadelphia 3, Pa.

great

TelAutograph

in

industrial applications.
not

too

long

Northrup,
installed Tel¬

ago,

Autograph Sending and receiving
stations
its

37

at

outlying

John

in

areas

Calif.,
plant to
eight receivers at a

to

central

control

believes,,

that

point. Northrup
instantaneous

the

hand-written

messages will speed
reporting of machine breakdowns,
material shortages and other oc¬

delays.

that result in production

The

ice

in

telephone

reporting

problems.

elimi¬

system

new

nates the need for

serv¬

delay-causing

All information is sent

directly
to
the central
control
point where it is transferred to
master

records,

medial

steps

after

which

then

can

be

B.

Stetson

Pfd.

Public Service Coordinated

4s, 1990

Hawthorne,

Pocono Hotels Units

Leeds & Lippincott Units
Walnut Apts. Common
Pratt Read Co. Common

Samuel K. Phillips & Co.
Members Phila.-Balt.

Stock Exchange

Pennsylvania Bidg., Philadelphia
Teletype

N. Y. Phone

PH 375

COrtlandt 7-6814

re¬

taken.

Northrup estimates telescriber
coordination
of up to

will produce savings

$175,000

is

Raytheon

a year.

another

new

telescriber
Radio

relatively
In

user.

division

in

incoming

six

on

in

plant.

flick of the
are

able

in

timates

go

into

problem

that

$35,000

of

action
at

one

a

a

this

on

a

time.

improve¬

Raytheon

simple

es¬

installa¬

produce savings of

over

year.

the

telescriber

utility

the

to

delivers

a

owes

fact

device,

message

being

written.

simile

device

It

and

its

that

is

Continued

OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX
35 Industrial Stocks

unique
it

alone

while
not

does

N. Q. B.

14-Year Performance of

communications

a

the

than

more

efficiency,

tion will

re¬

units

parts

little

to

single

receiving

In addition to the great
ment

used
a

wrist, six departments

to

particular

TV

material

various

With

its

Chicago,

a

which

messages

em¬

cial enterprises is a relatively re¬

As

instantly

of

For

were

by banks,
and radroad
Their large scale accept¬

located

cherished

have

investors

tracks

race

offices

use.

principally

hotels,

ports

Streamlining operations, avoid¬
ing delays, cutting costs — these
other

in

been

half century.

a

that time,

ployed

cent

to

investors

/

well

most of

ance

may

avail¬

required.
Telescribers

branch

our

SECURITIES

communica¬

instant

to

JAPANESE

specific business forms is

on

operation

Security Analyst, New York City

goals

Mobile, Ala.
wires

a

be

may

is

N. Y.

NY 1-1557

Orleans, La. - Birmingham, Ala.

Direct

The "In-

telescriber

where

able

tion

forms

Eventing*

Exchange

in¬

the message is identically
reproduced at receiving stations
selected
for
reception
by
the

equipment is
automatically record in

STRICK

TelAutograph Corporation

and

on

same

telescriber

LOUIS

HAnover2-0700

stant,

and

prefer relatively
tive special situations.

the

Stock
Stock

19 Rector St., New York 6,
New

written
with
a
metal plate.
The

York

American

operation is simple.

are

on

New

Members

between

contact

v/ritten

curate

'

appreciation

Something like $10 mil¬

represented
and

stock

"sleeper" and,

recognized, should show

era.

Exchange

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

Phone; HA 2-9786

seems

levels

resembling

lion

Stock

sale

buildings formerly owned
Investing.
With
office

boomtime

holding.

Oppmheime/i & fyp.

been

public

the

Wil¬

charter

those who

assets.

acquired mostly through the
of office

tan

Liquid.

York

as

building construction in

Badische Anilin

has

of

above-average

something like $20 mil¬

mortgages held

These mortgages represent in the
main, purchase money mortgages

by

City
merits

operating
ircome relatively incidental.
In¬
cluded in its portfolio on
April 30,

Hoechster Farben

the

of

$1,800,000.

capital

Trading Markets in

City Invest¬

purchase

made

volue

possibly
twice the current market
price.
The book value, like the market

substantially understated

Members

is

currences

on

operates

This

cash.

vesting's holdings is not published
can

which

value, is

Pacific Power &

news

ing is the acquisition

ern

The

City.

transmit

assets.

In

Bought—Sold—Qpvterd

New

as

property was about $50 per acre
and
potentially can return mil¬
years

Louisiana Securities

Steiner, Rous

possible development of min¬

eral

but

Portland General Electric

New

Washington

son

Portland Gas & Coke

Members

resources.

tainment

Trading Markets in

Active

years

Buying City Investing, in
way, is like buying a good se¬
curity investment trust, only the
emphasis is on realty and enter¬

Active

—

many

The company's most interesting
new investment is Sterling Forest,

a

California

In¬

Mr.

by

the development of
(chiefly uranium)
and

lands

other

by the big

know

Analyst,
(Page 2)

respective of size, wherever there

for

in¬

an

Corp. Knickerbocker has acquired
holdings of certain west¬

ern

search

thing down the street that

Dan River Mills

62

is

busi¬

the first investments of the

Commonwealth Natural Gas

Tele. LY

the

managed

This

Alabama-Tennessee Natural

22

extensive

ning

stantial

of

of their direc¬

one

formerly for

adjacent

ness.

American Furniture Company

changes,

Executive Vice-President of Atlas

and

Several

high, adjusted

a

organized

Boyd Hatch,

tors arid

George

of

of the

Trading Markets

100

each

Knickerbocker

Corp.,

the

stockholder

and

for

1946.
Recently it has sold at
following gradual improvement

founded

120

share

a

stock div¬

common

capitalization

City Investing
owns as many shares as the
300,000 owned by the Dowlings who

ual

Security

stan-Forrn"

mineral

City

August to¬

May and

a

of

vestment

good

share.

MCDonnell

in

about the $10 level.
City Investing has made

M. Loeb

special situations.. An unusual

Stock

split
for

were

1946 six

from
G.

vesting, traded

Since 1917

How¬

in

share

in

There

investors

and

one,

The stock made

course,
about a

what

small.

been

a

'7

main

Cash

During 1954 dividends were

for

the

Strick,

when

shares.

If New York

Specialists in

sources

earned.

was

in 1944 the stocks
for

taling 10c

gain pros¬

is

capi¬

1952

was

in stock and

pects.
Central

year

idend

capi¬

M.

Corporation—Louis

TelAutograph

have

its

share

a

declared

six

for

months'
tal

highest

ever,

o v e r-

y

regular

on

for

dividends have

as

G.

—

years,

over

profits. On the
basis of the present capitalization

one.

best,

than

gain

$3.57

I

they

as

earnings
the

widely

Company

P

at

Loeb, Partner, E. F. Hutton &
Co., New York City. (Page 2)

York

Investing

income

New

choice

to

Boston, Chicago, Cleveland, Dalian,

tal

of

wrote

stock

account

pany that depends more on

the

whelming

Building
Wires

toward

many

Central

like
m

best.

too

lead¬

I

the

as

lean

likes

far

In Decem-

York

Exchange

I

market
ers.

Broadway, New York 5

he

who has

favor

about

Member

Stock

and

ber

1920

income

Alabama

Selections

would be expected from a com¬

as

number

mum

New York Hanseatic

City

unusual person

an

one

Most

Penobscot Chemical

the

fSrjj

Week's

Investing

City

nor

be refinanced.

can

City Investing Company

be,

to

Thursday, January €

Participants and

Their

sell the securities discussed.)

to

into

City

particular security.

a

intended

not

are

fluctuated

Long-Bell Lumber of Mo.
New Britain Machine

for favoring

offer

Partner, E. P. Hutton & Co.,

Empire State Oil

120

as an

G. M. LOEB *

Company

Established

reasons

(The articles contained in this forum

Central Public Utilities

...

it
a

not

FOLDER

fac¬
com-

page

REQUEST

National Quotation Bureau
Incorporated

46 Front Street
cn

ON

is

28

NewYork4,N.Y.

|

(
Number 5392

Volume 131

A Year-End Review and Forecast
Secretary of

I N D £ X

accelerated

residential constructions Adds to these the

growth and

a

new

to

crease

greater

of

year

tunities

and

in

advance

related

peace."
tem¬

perate

opti¬
The

after

as

the

strong
why

in

Weeks

I

the reasons
shall have a

among

believe

moderate

we

upswing in business

ac-/

all

employment and

a

rise in the

promising
after an
record
prosperity,
the
had
started
to
slip.

all-time
economy

is

more

Then,

ago.

year

Anxiety spread.

Total

litt'e

of

•

in

than

that

be

to

use

s

*

as

McCormick

1

greater

and

the

a

City

The

No

who

one

pauses

review

to

and

The

and

material

Our free

ab]e to absorb large
a

wide swing in the

income of the public.
The

1954 opened with the
in activity from the
1953 highs still in progress* this
movement had originated with the
cutback in defense 'spending and
;

year

contraction

in

investment in

inventories.

-The downward movement came
a

halt in the opening

1954.

in

months of

During the second and third

quarters
the

there

was

aggregate

little
as

change

The

17

...

18

As We See It

Business

security

pur¬

Chesapeake Industries

I

(Editorial)

national

in

24

permitted

ing

Federal

in
a

Investment

Current Business Activity^.

of

Indications

Mutual Funds

NSTA Note

spend¬

billion

of

36




&

in

1954,

the

than

eeding

only

$1

billion

Public Utility

to

Another

business

was

and

the

de¬

consumer

Securities

Continued

on

page

TELETYPE N. Y. 1-5

Chicago

•

*

Glens Falls

•

Schenectady

•

Worcester

Chicago

to

,.

Los Angelas

American

28
—

Electronics

Common
\

Chesapeake Industries

41

Common
*

Prospective

46

Offerings

Security

Lithium Corp.
■*"

Securities

T

The Market

Corner

Salesman's

28

....

.

.

.

and You—By Wallace Streete

T

Official Films

16,

Common
The

2

Security I Like Best.::.

Reeves-Ely Lab. Inc.
5

The State of Trade and Industry—

Preferred & Common

for

16

48

Washington and You

Twice

1

Weekly

Drapers'

land,

c/o

Gardens, London,
Edwards & Smith.

Reentered

Patent Office

Reg. U. S.

ary
B.

Park

New

Place,

2-9570

HERBERT D. SEIBERT,
WILLIAM

Every

records,

Chicago

city

news,

Offices:

3,

111.

at

135

Pan-American

Union,

Dominion

Canada,

Other

1955

oi

at

New

Rates

news and ad¬
Monday (com¬
market quotation
news, bank clearings,

etc ).

Other
Bank

St.,

2-0613);

and

per

Common "A"

W» V. FRANKEL & CO.
INCORPORATED

39 BROADWAY,

per

$51.00

year;

per

S.
of
in

year.

Note—On

rate

of

NEW YORK 6

WHitehall 3-3960

Teletype NY
Direct

1-4040 & 4041
Wire

to

year.

& COMPANY, INC.

Publications

Record

Quotation

$33.00 per year.

the

Salle

$48.00

$55.00

Countries,

Petroleum

Corp.

PLEDGER

—

(Telephone STate

office

in
United States, U.
Territories and Members

Possessions,

Arrow

B. Dana

Subscriptions

President

La

post

Subscription

9576

South

the

Eng¬

matter Febru¬

second-class

as

1942,

Y.

every

issue

corporation

and

Other

N.

25,

C.

Twin

York, N. Y., under the Act of March 8, 1879.

(general

and

issue)

statistical

to

7,

Editor & Publisher

January 6,

Thursday

vertising

York

SEIBERT,

DANA

Thursday,

Publishers

COMPANY,

DANA

E.

1954 by William
Company

CHRONICLE

FINANCIAL

NEW YORK 4, N. Y.
•

26

:

...

Registration

in

Now

.

47

Securities

consumer

demand

Exchange PL, N. Y.

22

*.

Railroad Securities

of

purchases of durable goods.;Counter-balancing these were steady
in

Philadelphia.

liquidation of business

inventories.

gains

5

*_

however, substan¬

the sharp switch from accum¬

in

May

Report

Our Reporter's

private buying which had consid¬
erable effect on the economy. One
ulation

Wilfred

Our Reporter on Governments

:

were,

40

20

Bankers

peak volume of the proc¬

tial changes in the composition

was

MACKIE, Inc.

HA 2-0270

Direct Wires

less-

year.

There

8

Observations—A.

governments) aggregated $279 bil¬
lion

securities

Singer, Bean

39

•

...

(excluding

services

trading markets in more

over-the-counter

250

a

was an

goods and

maintain

Teletype NY 1-1825 & NY 1-1£:3

important in¬
fluence
in supporting
consumer
and business demand.
Purchases
which

York Stock Exchange

Nashville

We

10

...

News About Banks and

state

•

25

Washington Ahead of the News—Carlisle Bargeron

From

plete

Boston

8

Recommendations

than

reduction in tax

amounting to %llk

rates

TELEPHONE HAnover 24300
*

Liberty Products

8

secu¬

Spencer Trask & Co.

Manchester, N. H.

Hycon Mfg. Co.

48

Einzig: "A British View of World Economy in 1955"

REctor

Albany

Elco Corp.

Cover

Bookshelf

Man's

Dealer-Broker

roughly $2 billion in
nonsecurity operations.

lllLrLllllLU 0 I U 01\0

ST.,

&

City

23

Coming Events in the Investment Field..

25

BROAD

Philadelphia

Lake

oc¬

WILLIAM

25

Salt.

Regular Features

DDCrCDDCn QTHPKQ

New

to

Halsey, Stuart & Co. Discusses Outlook for the Bond Market._ 24

the
almost

Copyright

Members

Teletype: NY 1-4643

wires

in,

Published

specialized in

Broadway, New York 4

DIgby 4-4970
Direct

Mortgage Holdings at $26 Billion.

The COMMERCIAL and

have

42

contraction

year

shrinkage

the

cutback

divergent

For many years we

J. F. REILLY & CO.

17

...

able goods.

cline
to

Bust

a

contraction

year,

resources.

adjustments in the pattern of de¬
mand without

the

same

rity expenditures was largely con-centrated in military hard goods
and had an important impact upon
thedndustries manufacturing dur¬

national

1953 peak.

was

since

national

and

the cost of

relatively stable business ac¬

economy

Contends Stock Prices Are in Favorable

pri¬

for

about the

was

of

in

curred

tivity, although the aggregate fell
the

15

Bank and Insurance Stocks

$50

chases

past year was one of high

short of

15

T___

Deficit Financing, Says National

Development Bank for Puerto Rico..

purchases in 1954 to¬
billion compared with

billion

$8

great volume of this na¬
tion's production and its vast hu¬
man

and

Boom

$60 billion in 1953; pDoroximatcly

fail to be impressed

can

Magnolia Park Raceway

T. O. Yntema Holds Economy Is More Resistant to

be¬

cut of about oneFederal
purchases
of

in

taled

the

by

production

by

Federal

to

r

on

Relationship to Earnings and Dividends.^

Market

national' product was

The

of-our

achievements

economy

19

...

"Letter"

Bank

Harold E. Aul

1954,

in

year

Private

previous

progress

Situation

Economic

the

Security

Action

Protest

Stability Not Dependent

gocds ar.d services below the 1953

to peace

Year-End Review of the

1954

Holly Corp.

above 1952.
for

1953,
the

sixth

a success¬

blessings

cur

in

matched

years directly ahead.
Year's resolution

still

for

18

*

produced,

billion

than

less

markets

total

our

individual, wellbeing*

in

*

Federal Reserve Raises Margin Requirements: Funston and

which

Product,

$356

to

2%

from

material and spiritual re¬

sources

*

NAM Reports on Retirement

-

was

1953.

services

Aggregate
vate

New

count

our

General Beverages

17

Level: Federal Purchases Lower

gathering steam for steady
our

14

L

"Stability Is Good Enough!"—Leo Cherne

•amount.

made

ful adjustment from war

Let

Mather

A.

—W.

Horizons in Canada

Finding Fortunes—Roger W. Babson

>

pr

,

Cinerama Productions

the market value of all

and

Production

by the policies and ac¬

growth in -the

if '•

13

Thore...

Life Company

the Congress—has

is

Chesapeake Industries

Expanded Financing Activities Planned by Government

tions of President Eisenhower and

and

12

cr- :..••>

in

in 1954

production

fore, but 3%

competitive enterprise economy—
stimulated

M.

;—Eugene

New and Challenging Transport

Li

reduction

the

reduction

National

about

is true,

demonstrates

1

STREET, NEW YORK

Social Welfare and the Trend Toward Government Paternalism

%

reco:

on

buying and the

lower

amounted

The
economy
is moving forward and
expectations are bright.
The experience of the past 12
months

•

expenditures.

measures

Some voices pre¬

reverse

'

11

Round-Up of Credit Conditions—Edward F. Gee

A

dicted depression.

1 Today the

'

'../

9

Tibbits

1955—George C; Astarita

pre¬

high rate of private fix

goods

living.

The prospect

than

a

YOU!

investment.

Gross

tivity to be reflected in high over¬
standard of

Stock Market Forecast for

and

personal

of

highest

the

consumer

tained

public
are

FOR

"*

99 WALL

G

was

Sinclair

*

Telephone: WHitehall 4-6551
The Outlook in the Durable Goods Industry—K. W.

Throughout the year, confider 3
manifested by the steadv T&J

lead¬

ership by gov¬

confidence

the

income taxes that

with

ernment

pro¬

and

YELLOWED

CASH

Obsolete Securities Dept.,

4

Cobleigh__

Progress and Prospect in Tax Policy—J. Cameron Thomson..

moving up

was

payment

result

a

cicled

outlook,

ernment

the

personal

foreseeable

gressive

'

'

j,

year

taxes—was' the

the *

sound,

—Ira U.

of, peak activity. Disincome — that remaining

nosabm

mism.

economy,

Canadian Uranium: Prospects and Production for 195&

the final
the durable

that in

equaled

ceding

of

OBSOLETES
MEAN

3

Weeks

'

automobile

the

industries,

1954

in

Known facts

state

Cover

popu¬

again, and" total production and
employment improved.
Personal income at $286 billion

to

advance

justify

RED

goods industries, paced by a sharp

oppor¬

in¬

pros¬

perity

ARE

VIOLETS ARE BLUE

A Year-End Review and Forecast—Hon. Sinclair

In

in

output

quarter,

ROSES

Cover

.

Consumer Is Back in the Driver's Seat

—Evan B. Alderfer

various industries were

offsetting.

largely

people than 1954—

American

the

in

trends

1955

better year for

even

an

Seidman

W.

—L.

1955: The

record high of disposable personal income.

is very good.

The outlook
should ba

a

Page

IIow the New Tax Law Affects the Bond Buyer

developments in
favorable out¬
look for the current year: (1) advancing industrial produc¬
tion; (2) rising employment; (3) a combined high rate of
outlays for plant and equipment; and (4) a rising scale of
Secretary Weeks, after reviewing economic

lation

AND COMPANY

Articles and News

Commerce

1954, points to following items as indicating a

-

licHTtnsTfin

"

WEEKS

By HON. SINCLAIR

3

(59)

Chronicle

.The Commercial and Financial

..

—

Monthly,

(Foreign postage extra.)

account

of

exchange,

the

fluctuations in

remittances for for¬

eign, subscriptions and advertisements must
be made in New York funds.

LOS ANGELES

ARTHUR L. WRIGHT

,

& C0H INC.

PHILADELPHIA

1
4

(60)

The Commercial and Financial Chronicle...

timated

Canadian Uranium—Prospects
And Production for 1955

has

1,250
be

funds

of certain companies North of the Border, that aie
moving out of the promotion or exploration stage, and gaining

half

of

all

the

underwritten

States

in

1954

in

stock

is¬

uranium

were

shares; and the percentage would,
doubt,

no

equally
in

run

high

Canada.

This

is

bit

a

them

bite

of

the

year

or

blessed
brains,
big and
solid
financial
backing, and really large scale
bodies, will

proven ore

fine

from

on

production,

profits,

prospects

and

to

prestige.

startling, par¬ Among such enterprises today are
ticularly since .Gunnar and Pronto. We'll talk
so

of

many

about them for

moment.

a

o

p

Gunnar Mines Ltd.

fferings

Gunnar

penny

romotiona

life

studiously

Gunnar

eschewed,

March

viewed

or

with

alarm

by,

in

most cases,
ira u. cobleigh

larger

the

started

back

way

Gold

10,

its

corporate

Oct.

on

Mines

1954,

shortened

7,

1933

Ltd., but

as

the

name

Mines

property, under the aegis of

Mr.

Gilbert

has

pro¬

writing houses and Exchange
members.

and

older

theme

Our

today,

however, is
praise this
and highly specula¬

neither to condemn

spate of
tive

new

long

ing, in
taking

financing follow¬
instances at breath

after

pace,

we

or

now

have

whose

been

whose

some

well

so

hopeful

spfficiently

has

of

uranium

Oct.

concentrates

Government

uranium

Obviously

tained

such

away

dian

rants

000

more

than

a

few

claims

sumably radioactive
a

wheelbarrow

entities,

on

pre¬

plus

overcapitalized

der-managed, I

say,

will

Well

little

acreage

two

or

these

—

and

un¬

many

of

5%

sell in

at¬

on

$19,due

purchase

shares,

(to

set

war¬

which

forth

which

you

may

in

pros¬

are

re¬

complete details).

what

about

this

ing

ture, the first big one of a strickuranium property? It has, as

security,

Beaverlodge
corner

of

ore reserves in
area

U.

increasing
and

Gunnar

The

now

glean

call

at. $10

which

shares

is

5s

Gunnar

on

selling

in To¬

Established

income

and

WALL

Pronto
Our

es-

Mines

example of

gaining

pany

to

Uranium

second

sufficient

warrant the

securities,

is

Ltd.

pleasure in announcing that

Henry T. Mortimer

solidity

issuance of senior

Pronto

Uranium

have this

day become members of

shepherded to impressive magni¬
tude by Mr. Joseph H. Hirshhorn.
The

lion

bond

of

issue

5s,

here

(after

12%'%

$6 mil¬

by

protected

estimated

serves

is

at

ore

$63

dilution

clude

Clark, Dodge & Co.
January /, 1955

re¬

million

and

10%

1, 1956 to Dec. 31, 1960.
here would in¬

report

the

575-foot

current

shaft,

sinking

and

of

WE

ANNOUNCE

diture

of

$350,000).

shaft

and

Both

expected

are

ASSOCIATION

THE

mr.

leon

OF

US

dorfman

b.

mill

to

be

WHO

WILL TRADE

PREFERRED

STOCKS

ready for production by Septem¬
AND

ber of this year.

Interest

quire

but

cated

this issue would

on

$300,000

available

1957.

against

re¬

mr.

indi¬

for

revenues

$4 million

over

Pronto

sell

5s

james

a.

traviss

1956
WHO

$2,500,000; and

for

at

WILL

TRADE CANADIAN

SECURITIES

109,

and carry a call on common at

$5

through 1956.
It has for decades been fashion¬

able

among

analysts

to

merits

of

Goldman, Sachs 8c Co.

compare

relative

the

railway,

such

now

procedure has

have

been

that the

30

Pine

Street,

New

York,

N. Y.

Un¬
BOSTON

CHICAGO

been

bonds

no

Pronto

to

PHILADELPHIA

ALBANY

january 3.

BUFFALO

ST. LOUIS

DETROIT

1955

bonds are,

income, and mill

Further, there
that

long

is

range

Algom

and

Blind

is)

a

River

We

(where

are

pleased to

than

Beaver¬

LESLIE

Equally

Interesting

Following along the theme of
major financing, Algom, even

GORDON F.

larger at Blind River than Pronto
(but under the same successful

management), is re¬
contemplating a new se¬
curity issue; and Algom, too, will
be swinging into large scale
pro¬
duction

this

here
purchase
of
around

East

11

Your

year.

entry

have this

be

may

Algom

by

Dome

Mine

*

day been admitted

equity
direct

our

to

firm

WILBUR G. HOYE

common

retired

purchase of Preston

or

JOHNSON

general partnership in

Ltd.

shares

as

a

became

around
6, since Preston has in
portfolio 40% of the Algom com¬

&reene<miCompcmu

SWAN

JOHN M. FLANAGAN

ported

enlarged iftmrlers

B.

STEPHEN G. McKEON

Hirshhorn

We invite ynu

that

announce

promising

more

area

January 1, 1955

capac¬

those who

are

lodge.

-

BLOCKS OF STOCKS

General Partner and
a

Limited Partner

mon.

The

been

and

burden
to

nium




PLEASURE

WITH

dollar, somewhat more
solidly buttressed by ore reserves,

0VE11 THE COUNTER SECURITIES

37 Wall st. new York

WITH

a

the

building
of a mill with
1,000 tons daily
capacity (to be increased to 1,500
tons later, by additional expen¬

Pronto

Members Nat'l Assn. of Securities Dealers

firm

tailings loss); and a contract for
delivery of uranium concentrates
totaling $55 million for the pe¬

feel

Members New York Security Dealers Assn.

our

dollar for

fr/trria lists in

*

"

CARNOT W. EVANS

.

Ltd., one of the distin¬
guished mining enterprises being

ity.

1930

-

com¬

a

Mines

contract

established

1845

STREET, NEW YORK

a

We take

of

show

companies
attained

this

that

piece

certain

have

many

has
ura¬

matured

elements

Chas. W Scranton

investment status; and their bonds
offer a more sheltered

approach

to

nuclear

investment.

Continental
For

those

of

and
you

still

entry into uranium at

avid for

an

earlier

Co.

Members New York Stock Exchange
209 CHURCH STREET
waterbury

Stancan

&

Established 1891

of

new london

in¬

board of direc-

Clark, Dodge & Co.
61

wide

interesting land

a

now

5s look attractive.

nar

sons,

our

most

a

spread and has

were

If, however, you go back
to the above paragraphs you
may
reach the opinion, by compari¬

mil-1955

a

some

compare.

/I Ijuitrkr Hen turf

to visit

be

Stock

does offer

Uranium

For those wishing

interest

there

of

to

ones

American

in

114 reflect¬

at

impossible among uranium com¬
panies for the simple reason that

Underwrilrrs

uranium

the

and

hansomely covered

healthy cut at capital gains, Gun¬

til

..

S.

on

Stancan

1957

utility and industrial bonds.

y-

listed

checker-board

nearby,

adjoining, proven ore
acreage of Pronto, Algom, Con¬
solidated, Denison, Buckles and
others.
Further, Stancan, while
still
in
the
development stage,

Exchange.

ronto at $11.50.

the

(Northwest

Saskatchewan)

the

common

of

deben¬

ly

basic

first

the market

riod Jan.

bankers,

stock

merit.

ment

Progress

debentures

conditions

certificate

represented

that

most

Canadian

a

acres). Stancan

stances

share

1958.

for

appear

pros¬

has

area

pro¬

around

—

bondholders a holding
possessed of considerable invest¬

be subscribed to under the terms
and

pectus

equity

it

actual

an

(pure estimate

$4

claims

give

now

the

attached pertaining to 780,-

ferred for

porate

fact

stature

common

Many of the

bright promises, in
form, where the cor¬

in

has

from

investment

ful.

it, 1955 will be the

for

July
19,
1954
it floated throught
a
distinguished syndicate of Cana¬
500,000 of
1960, with

see

official

agency

Gunnar

have

financing has
been
not
only possible but highly success¬
we

the

Canada).

bodies

year to separate the sheep from
the goats in the uranium field.

is

buyer

stage;

is

(El¬

by the Canadian

and

ore

pector

that

between

1, 1955 and Oct. 1, 1960

dorado is owned

com¬

potential

Eldo¬

Mining and Refining, Ltd.
delivery of $76,950,000 worth

it;

calculable,

with

rado

for

far

senior

As

contract

a

moved

delineated, and

production

it

com¬

made

ore

or

gressed

No, today

salute to the

a

that

panies
now

on

optimistic

counters

pasture.

moose

propose

panies

the

geiger

of

scintillometers
mesa

nor

shot

many

clacking

under¬

would
and

is

Plateau, its
underwriting was
successful, and its shares the

pay¬

600

properties

interest of $975,000
on
this
5%
issue

annum

(over

claim is around 50

Uranium.

recent

and

per

I sug¬

may

your prospectus perusal of
Continental Uranium and Stancan

interest

for

1956,

million

largest land, claim
coverage in fabulous Blind River

gest

Continental

be

this basis,

Ltd.

This

LaBine

$8

regions,

the prospec¬

tus include the

ducer in the Colorado

would

for

in radioactive

projection of

a

Gunnar

On

was

Gunnar

to

for

underwritten last month, and the
features revealed in

in companies graced by
financial backing, manage¬
rial competence and realty claims

on

from being just another
gold mine, to one of the leading
uranium
producers
in
Canada;

and

for

phase,

good

to avoid the pitfalls of great spec¬
ulative risk, and at the same time

the individual

were

mining

pit.

open

course)

to

this

dust

Others, how¬
by better technical

ever,

move

con¬

capacity of

pit

open

earnings,

million

survival.

merge for

spreads of

of

day (expected to
October, 1955);

available

ment

and investment prestige.

United

the

initial

per

as

About

a survey

Over

$125 million. It

progress

before

plans

well

as

Enterprise Economist

sues

tons

ready

and

in

with

first two years; then underground

By IRA U. COBLEIGII

in corporate stature

above

at

mill

a

struction

Thursday, January 6, 1955

NEW HAVEN 7, CONN.
danbury

bridgeport

Number 5392

Volume 181

tors

eminence

unusual

of

prestige,

The Commercial and Financial Chronicle

...

including

Dr.

(61)

and

John

man

Dr.

Observations

atomic

and renowned

authority,

director and Chair¬
of the Executive Committee;
Nelson
Steenland,
famous
as

geophysicist of Houston
also

dent., Directors

Joseph

W.

Frazer,

as

Mr.

Mr.

Richard

••

Mr.

John

"THE"

There

RECORD BULL MARKET

be

doubt

coming from overseas,
big production on our

need

tinent.

Some

mentioned

of

today

big production,
vistas of

the
are

and

on

page

Above

1946-1953

High

With a major part of our vital ore
still

Within the next few weeks the ingot rate may exceed
Continued

year.

no

pretty

j

Advance

that

big uranium

a

•

,

quarter.

QUIZZICAL LOOK

H.

be

can

will

which most people considered

year

a

Steelmaking operations this week are scheduled at about 81.0%
rated capacity, a gain of 3.5 points from last week.
A sharp
rise in production after the holidays had been anticipated.
Production is expected to rise still higher during the first

Parker, dis¬
tinguished Houston industrialists.
1955

with a

year

of

A.

A

1954,

in

good.

By A. WILFRED MAY

Roosevelt and Mr. V. V. Jacomini
and

produced
•

Presi¬

include

new

bang and it seems likely that 1955 production will rise to about
100 to 105 million tons of ingots, compared with 88.3 million tons

Dunning (Dean of Engineering at

Columbia)

The industry is starting the

working weekly.

R.

1946-1953

we

Low

con¬

Dow-Jones Industrial Average

companies

High

1954

1954

at

Close

Close

160

294

404

38%

Composite of 450 Stocks 111

S. & P.'s

199

273

37%

We

pleased to

are

that

announce

heading for
enlarged

profitability.

PERCENT

Jonas C. Andersen

U'tciiiie or

Advance

N. Y. Inst, of Finance

Some Issues Paired

New

York

Institute

will be admitted

1954

Close

at 1954 Close

37 Wall Street, New York
has
announced
that
its
spring term will begin Feb. 7.

General Partner of

as a

our

firm

'46-53 High

American Smelting and Refining
American Metal Products Co

Fi¬

of

from

High
1946-1953

Spring Courses 1955
The

According
Industry

to

45

53

on

January 1, 1955

down 15%

29

46

up

235

227

down

4

40

54

up

35

down 17

58

nance,

Amerada

City,

Courses
will

in

be

Brokerage

given

Petroleum

Socony-Vacuum

__

Kuhn, Loeb & Co.

procedure

with

John

American

H.

Cyanamid

65

Schenley Industries, Inc
Walker

55

144

2 CO

80

Rohm & Haas Co

Schwieger, New Yofk Stock Ex¬
change, A.. P. Morris, Estabrook
& Co., George W.
Elwell, Francis

24

___

(Hiram) G. & W

85

up

down 70

56

72

up

80

38

down 53

198

362

45

31

down 32

25

48

up

51

28

down 45

48

56

up

60

41

down 31

29

39

up

Pennsylvania Railroad Co

47

24

down 47

Union Pacific Railroad Co

121

153

26

17

19

27

up

18

14

down 23

34

39

up

Blaw-Knox Company
Bethlehem Steel Corporation

30
60

26

109

Boericke,

Glen

Coal

25

12

down 52

Walter

Pittsburgh Consolidation Coal

62

75

up

26

down 58

I. du Pont &

Co., Irwin A. Brodsky, J. & W. Seligman & Co., Paul
C. Fitzgerald, Hirsch &
Co., as

Underwood

International

instructors.
Basic

business

will

courses

Corporation

be

Machines

Business

Kresge (S. S.) Co

conducted by Melvin G. Ott, Rob¬
ert
Winthrop & Co., Franc M.

__

Food Fair

Iticciardi, American Management
Association, and Irwin A. Brodsky, J. & W. Seligman & Co.

Hecht Co.

Investment analysis courses will
be conducted by Albert P.
Squier,
director of the institute, Nicholas

Cluett, Peabody & Co
Phillips Jones Corporation.

Federated

Louis

v

,

A

Emerson

Whitehead,
Cosgrove,
Miller
&
Whitehead, Pierre R.
Bretey,
Hayden,
Stone
&
Co.,
Herbert
F.
Wyeth,
Shearson,
&

Co.,

William

Philco

Mr. John W. Harriman

17

Corporation

(M.) & Sons

Radio

&

Phonograph__

Corporation

34

Alden

the

board

of

ery

Street,

down 20

115

83

up

New

37

Both

60

up

Chrysler Corporation

98

71

General

69

98

up

Motors

Corporation

the

to

Auto

and

Industry

Administration, has become
115

members of the
as

York

Co.,
City,

New

York

Stock

consultant

in

the

a

Of Gen. Am. Investors
Howard

has

Vice-President

eral American Investors

Inc.,

44

Wall

Street,

of

a

whole in the period ended

Compared

with

the

more

on

week

in

1953

it

York

Mr.

Howard, who retains the
position of Secretary, has
been
with the Company
seven
years,

We

claims for unemployment insurance benefits

Some states reported a rise in

sult

work, but other
of

recalls to

areas

work

and

claims in the week ended

ceding week and 10%

are

also

pleased to

announce

that

were

encouraging.
Continued claims in the week ended Dec. 11 were
unchanged from the previous week, although 17% above a year
ago.
This yearly increase was much less than during most of 1954.
unemployment due to curtailed out¬

Mr. Raymond R. Wilson

is

now

associated with

lis

reported less unemployment, as a re¬
extra

Dec.

18

Initial

hiring for retail trade.
were

3% lower than in

below the comparable period

increased

their

noted, however, that the increase
rise

as

Manager of

our

the pre¬

of last year.

installment

purchasing

registered

in

November,

was

1953

Reserve

Municipal Bond Department

by $62,Board.
It

far less than the $141.000 000

and

the

$350,000,000

boost

in

the similar month of 1952.
Reserve" Board
in

officials

November "somewhat

sales of

new

predicted

labeled

the

surprising" in

comparatively

small

view of reported

rise

healthy

Editor of "Journal of Commerce."

a

They conceded November rright have
register the impact of increased car buying, and
"substantial" boost in instalment credit figures for

Robust health of the steel market is apparent this week from
a

check

of

Van Alstyne, Noel & Co.
Members

Neiv York Stock

Exchange

American Stock Exchange

automobiles.

December.
The board's report noted automobile instalment paper
outstanding actually decreased by $44,000,000 durm^ November.

formerly Financial News




February 1, 1955

was

been too early to

was

effective

Wednesday of last

than 3%.

Gen¬

Citv.

and

on

corresponding

been

Company,

New

to

Partnership

slight decrease in total industrial production for

Consumers

F.

firm

Failures

General

000,000 during November reports the Federal

a

our

layoffs in food processing and the manufacture of textiles
and apparel accounted for the decline.

L,F.
Leonard

associated with

and will be admitted

Production

Business

now

Fewer

firm's research department.

elected

is

J

door

New

Broadway,

Exchange,

asso¬

Williston &

that

announce

Index

was

Reports

J. R.

Price

the country as

Professor

pleased to

Trade

Commodity Price Index
Food

week.

at New York Univer¬

are

■"

Mr. F. Donald Arrowsmitii

with

sity's Graduate School of Business
with

1953

43

Production

Retail

State of Trade

For J. R.

ciated

S,

61

Electric Output

10 years.

Harriman,

Telephone

Barclay 7-7500

Carloadings

San

been

Steel

The

higher by slightly

W.

EXCHANGES

CETERA

—

Harriman Consultant
John

EXCHANGE

COMMODITY

York City

i

There

of Finance

AND

down 38

of Brush,
1 Montgom¬

have

STOCK

STOCK

YORK

'

directors

the firm for the past

NEW

Broadway

JANUARY

21

58

Francisco Stock Exchange. Edwin
Callan has been promoted to sales
manager.

OTHER

We

Calif.

of

1889

ESTABLISHED

MEMBERS

15

e

members

DEPARTMENT

RESEARCH

January 3, 1955

Brush has been elected

Slocumb & Co., Inc.,

AS

J. R. Williston & Co.

42

Celanese Corporation of America

Web¬

Appointments
Gerald

OUR

US

26

up

Brush, Slocumb Go.
FRANCISCO,

IN

CONSULTANT

WITH

down 34

Rayonier, Inc.

ET

SAN

ASSOCIATED

BECOME

F.

Hayden, Stone & Co.,
Gutman, Goodbody &
Co., S. Logan Stirling, Eastman,
Dillon & Co., W. Sturgis Macomber, Reynolds & Co., Malcolm D.
Brown, R. W. Pressprich & Co.,
and

Mills

:__

PLEASED TO ANNOUNCE THAT

ARE

WE

92

AND

K.

Victor L. Lea,
Paine,
ber, Jackson & Curtis.

Burlington
Lowenstein

H.

Hammill

83

up

HAS

E.

Crane, Dean Witter & Co., J.
M.
Galanis, R. L. Day &
Co.,
Charles McGolrick, J. J. Harris
& Co., Jerome B.
Skalka, Carl M.
Loeb, Rhoades & Co., Stephen M.
Jaquith, Model, Roland & Stone,

Department Stores

28

producing mills by "The Iron

Age,"

national

metal-

52 WALL STREET,

NEW YORK 5

Philadelphia Office
Room 831, Western Saving Fund Building,

Broad & Chestnut Sts.

40

6

The Commercial and Financial

(62)

What

Progress and Prospect
In Tax Policy

When

we

high," do

is

ernment

when

Chairman, Fiscal, Monetary,

operate

growfh. Outlines tax program of the Committee for
Development and discusses advances made in creat-

Economic

feasible?

Do

larger deficit

a

we

or

on

projected $2 billion def¬
-the
Federal
cash
budget
a

1955, and in the absence
serious
recession,
I don't

of

;

think

;

today raising too much in taxes to

l'

a

we

can

is

government

say

for the spending in which

pay

is engaged.

it

'

•-

■

1

■

■

"

■

' /

■

•

....

It

is

start

novelty not to have to
about
taxes by

a

i)

In

the

rev

takes

Secretary

Hum-

likely to believe, that the

is

Internal

wondering
when
something
is
going to
be done about tnem.

than

more

any

speech

a

Revenue

Cod<?

of

the

of

out

taxes

19o4

area

of

thing has been

pressing problems. We have, after
a
generation of waiting, begun to
make progress.
Let us hope that

done

about

we

taxes.

A

has been made

generation before registering any
further
improvements
in
these

in

problems!

year,

past

some¬

start

reforming

a n

d

about

"

1

in

make

up

our

form

30

J. C.

$7.4

billion

on

annual

an

think,
We

t

u

has

it

has

the

in

nomic
s

been

been

made;
a

Development

changes

in

and

for

Eco¬

nitions

policies
You

than 10 years now.

for

bit

pects

in

farsighted

a

jectives

which

tax
of

many
now

to

the

Seventh

or>onsored

sociation,

Mr.

or

National

Credit

see

want

to

com¬

look

what the pros¬

1956.

too

are

services
worth

for them.
little
st

because ihe
government
aren't

we

the

and

pay

spent

might be

from his dollar than

is in

that

better

American

to

more

lot

a

if

the

60

had

taxpayers

about what they did

say

with their money and the govern¬

had

ment

the

less

the

be

the 60
ers.

believe

I

say.

redressed

million

in

favor

individual

we

I

wonder

look

can

diate

to

in

cuts

in

these

days if
large and imme¬

government

expen¬

ditures to bring us substantial tax
r^hef.
Almost two-thirds of the
Federal

in

up

budget

national

our

this

matters

is

year

directly

defense.

tied

affecting

On

top
fixed

of

higher tax brackets
directly

most

with

demands of economic growth.

the higher

brackets, taxes ab¬
and

investment

made
in

avail¬

new

pro¬

ductive

enterprises. If growth is
objective,
new
productive

our

are

tinuing need.

jobs,

new

New ventures

ideas,

new

ucts, new and
petition.
not

number-one

our

that taxes on the

means

should be minimized.

poor

very

Only the most reckless of peo¬
ple

dogmatic when comparing
stimulate economic

are

tax reforms to

with

growth

com¬

often

than

uneasiness

the tax system wnicn collide
of economic

tax

duce

the

of

riskv

compared

effects.

CED

exaggerate these

does

maintain

not

continuation of the tax

rates

recent

past

had

the

in

would bring economic progress to
a

halt.

niable
rates

risk

But

that

to

us

of

It

seems

continuation

involes,

reasons:

loose

dangers

back and
us

as

a

of

unde¬

these

minimum,

(2) The nation has already gone
a

long

very

in

way

reducing in¬

equality in the distribution of in¬
come, in large part as a result of
the growth of the progressive in¬
come

tax.

We

majority
much

believe

the

of

to

more

that

$15.

billion

this

in

gain

living
standards
from
rapid
growth in productivity than from
any feasible shifting in tax bur¬
dens.

Economic

depend

in

will

growth
large

measure

retarding the
rate of economic growth.
This is
particularly true if we are to
grow without the evil stimulant

character of
ways

in

tax

our

obstacles

to

which

it

ily

influenced

we

by

effort.

and

When business decisions

are

the

in

the

We take

future.

near

competitive
fighting for priority

is

public

policy alongside hun¬
other important policy

of

considerations.
to

be

what

wc

are

talk

Therefore,

very

explicit

we

about

after and

Conference
we

a

about

why when
changes in tax

policy.

,

I

for

wage
in

believe

one

and

to

page

32

'

Continued

ex¬

on

pleasure in announcing that

will

be

substantial

this

17.

1954,

safely

I

can

the

point

we

can

budget

where

Carl M.

Loeb, Rhoades

we

further major tax cuts
follow a responsible fis¬

Co.

&

January 1, 1955

policy.

Are
of

Federal

general partnership in our firm

say

Dec.

make

and sDh
cal

think

the

to

pe¬

of

as

don't

slash

quickly,

a

more to

But

has been admitted to

re¬

perhaps

aver

I'll have

later.

nun

relief,

relief

Mr. Kenrick S. Gillespie

spending

I be^eye

tax

tax

riod of time.
about

should

aga'nst

unnecessary

government.

ward

we

war

unrelenting

an

waste

then, just complaining

we,

ill

our

luck

at

having lived at

the mid-point in the 20th

Century

when

we
say
"Taxes
are
too
high?" I think not. We mean that

have definite

we

ideas

to

and what

we

want to reduce

why
first,

when and

as

changes become

pos¬

sible
As

in

the

bankers

total
and

naturally feel

a

as

level

of

20

re¬

sponsibility for the health of our
private economy. More and more,
have

we

days

are

cisions
tions

found

of

that

cluttered
colored

are

thinking

our

about

^eoe infer 2/sf, 40.

working

and

up

our

de¬

fir take

by considera¬

When

taxes.

*

we

good deal of

0ine f/treet
*j\ew if/orft

taxes.

businessmen,

we

where

-

start

this.will

all lead to, we v*>rv often cry out,
"Taxes are too high!"

/ifeaMire in anncunriny /fat

-

r

i/r.

-

Jf. S/f jffojj/

j

nor/feu

Taxes and Economic Growth

When
about
.

a

Wc

arc

second

in

our

new

twenty-five
and

offices
years

to

begin

of buying

sciiing securities.-

The number is 1101 in the Union

Commerce
you

Building. We hope
will make it a point to visit us
in

our new

home.

we

we

affect

economic

don't

need

the

importance

to

oim

not

UNION

COMMERCE




BUILDING

•

CLEVELAND 14, OHIO

belabor

you

of

I
about

economic

security and to

Growth is the
continuing source of nor
great strength and of our high
standard of living.
enables

taxes more easily.

we

can

increase

our

us

to

Gross

Na¬

tional Product bv $40 billion over

our

manayer

of our

present tax

with lower tax rates.

//if icifi a/
/1

ffSond ♦ Qjofiajdment

/a.i if is
a

day Seen admit/erf

yeneraf /lartner in

our

as

firm.

Obviou^y,

four years—-that's not a very sen¬
sational target—we will be able
to raise

many year4

our

national wellbeing.

course,

for

growth?"

main

if

Co., Inc.

as

...

growth to

if4

ask

ourselves, "How will the prolong¬
weight of the present tax bur¬

den

Growth, of

&

invariably

ed

pay

Wm. J. Mericka

associated mit/i

in CED start thinking

taxes,

revenues

heav¬

desire

re¬

spending

the

affects invest¬

innovation,

ment,

year's

substantial

any

in „government

duction

always
on

system—the

formidable

are

has

improved

in

budget falls into this category. All
these expenditures

vast

the

population

a

seriously

that, we have a lot of
or
of inflation.
nearly fixed,expenditures, such as
I don't mean to say that
interest
on
the
debt,
veterans'
should judge our tax system
benefits, and social security bene¬
that

the

in

make rapid growth
American productivity essential
a
reserve for
possible mobili¬
today

(3)

safer investments.

I don't want to

changes

in proposing tax

The

CED

stimulating

with

attractiveness
as

the war,

of

zation.

with

brackets,
coupled
with
limited
deductib.l.ty tf losses, tend to re¬

the end

three basic

world

as

higher

This is no
choice. We want
The question is one
groups.

emphasized

growth
for

of

of

growth.

the

in

rates

investments

Since

our

features

those

on

emphasis.

has

of

ventures,
reenforces

fact

over

demands

of

(1)
more

riskier

This

course.

vigorous

more

ventures

mean

mean

of both.

some

to re¬
the lower and

reforms

tax

all-or-nothing

con¬

prod¬

new

taxes

should be related to ability to pay.

middle income

been saved
for

limits

within

that

have
able

that

.

But

course,

means

Fairness

the

collides

we've
-

our

and, of vital importance,
fairness.
Fairness

plicity;
of

lieve the burden

of

taxpay¬

reform in

some

a

sorb income that would otherwise

balance in tax policy

present

should

to

in

persua¬

growth. There are many
other standards: directness; -sim¬

thinK the present tax sys¬

we

Present
feel

so, we

are

very

a

system.

It

the

he is getting now.
I'd

make

a

taxpayer spent

little more, each of us
more

tax

In

to

plea for

sive

New

to

have

now

If government

less

getting

Maybe

high

of

what

position

is

business

economic

fits. The Budget Bureau estimated

way—is

that

idea

in

believe,

by the American Bankers As¬
Chicago, III., Dec. 17, 1954.

taxes

is

government

doing too much spending.

reducing the tax burden—
of arranging the burden in a

different

been

before

I

my

the

because mis

banking and

to

clusively by how it contributes

aim of

study,
ob¬

Thomson

for

want to go

I

have
by

using

pressing for reforms in our-itax
system. It isn't just that we don't
like paying
taxes, although no¬
body enjoys paving taxes.
The

dreds

address

am

point out what it is that keeps

achieved."
This isn't to say that we

accepted

for making more prog¬

But first

the

have

a

are

in fiscal

ress

can

"As long ago as 1947, the Com¬
mittee
for
Economic
Develop¬
recommended

guide

a

ahead

been

have

as

Finally,

Post" article where he said:

*An

to

have made
how much
go to meet

generally

our

ments.)

recommending
tax

our

I
start.

imagine how pleased we were to
read Secretary Humphrey's words
ia
a
recent
"Saturday Evening

ment,

have

we

and

CED's recommendations and defi¬

and,

good

Committee

d y i n g

more

we

year

management policies, I

start

start

timately involved in CED's work
on
fiscal,
monetary,
and
debt

basis.
A

we

objectives. (Since I have been in¬

Thomson

reduced

some

progress

past
of

some

and taxes have
been

the

further

Yes,

do

to the problem?"
explore with you to¬

up

the

in

"Where

here?" instead of

"When

of

of

terms

want to

day

re¬

in

years.

terms

I

Code, the first

major tax

in

from

go

facing

Tax

Federal

we

maybe

million

taxes

do

that

laws

wait' another

to

have

it's good to be able to talk

Still

equaliz¬

ing the tangle
of

ccn't

But

1

....

in

in

ventures

,

'

•

way

greatly affected by the
which the tax burden is

distributed,

tem

j»

Calls attention to tax studies now
under way at the Treasury Department, and concludes responsible solution of tax problems rests ultimately on an alert
and informed public.

is

should

for: fiscal

better tax structure.

a

expen¬

reduction

surplus?

a

With

debt

government

on

icit, in

ing

is

too

are

The rate of growth in the econ¬
omy

that the gov¬
too much tax

projected

for

the

less of

economic

its

that

explaining ihe meaning of the slogan, "Taxes are too high,"
rMr. Thomson points out the detrimental effects of taxes on
in

"Taxes

raising

and

High?"

Too

mean

for

revenue

We

When

Mean

say,

we

mean

Bancorporation, Minneapolis, Minn.
and Debt Committee, C. E. D.

Northwest

President,

We

"Taxes Are

ditures

CAMERON THOMSON *

By J.

Do

Say:
•

6, 1955

Chronicle... Thursday, January

"flood, [Jfnd/en

Volume 181

V;

\

;

7

(63)

Number 5392 ....The Commercial and Financial Chronicle

'

'

■

.

,

■

.

,

^

^

'
»

New Issue

of California
5%, 2% and %%
FARM AND HOME LOANS

PROVIDING FUNDS FOR

Veterans' Bonds, Act of 1954, Series F

Dated

Due

February 1, 1955

AMOUNTS, RATES, MATURITIES,

February 1, 1957-76, ihcl.

YIELDS AND PRICES
(Accrued Interest

the office of the Treasurer of the State of

fornia,
agent

office of

duly authorized

any

opinion of counsel, interest payable by the State upon its
exempt from all present Federal and State of California

personal income taxes under existing statutes, regulations and

City. Coupon bonds in denomination of Si,000
only

as

to

court

We believe these bonds will meet the
ments

requirements

as

the

option of the State,

prior thereto) and
amount

as

on any

thereof and accrued interest thereon to date of

.75%

1958

1.00%

5

1959

1.15%

5

1960

1.25%

5

1961

1.30%

1.40%

*

These

bonds,

of counsel will be

redemption. Publi¬

1963

1.50%

2

1964

1.60%

2

1965

1.65%

2

1966

1.80%

3,000,000

general obligations of the State of California

2

3,000,000

be issued for Veterans' purposes, in the opinion

to

1962

2,800,000

as

2

2,800,000

security for deposits of public
in California.

eligible

moneys

to

2,800,000

3,000,000

redemption at
a whole or in part, on February 1, 1971 (but not
interest payment date thereafter, at the principal
subject

1957

5

2,800,000

legal invest¬

for sdidngs banks and trust funds in New York, California
for savings banks in Massachusetts qnd

Connecticut and will be
are

5%

2,600,000

registerable

both principal and interest.

and after February 1, 1972

or

Price)

Due

2,600,000

$2,600,000

decisions.

and certain owertkties and

Bonds maturing on

Yield

Rate

2,600,000

of the State Treasurer, including the agent of the State Treasurer

in New York

be Added)

to

Coupon
Amount

bonds is

California in Sacramento, Cali¬

the option of the holder at the

or at

In the

payable at

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

VETERANS

TO CALIFORNIA

2

1967

1.90%

'

cation of notice of
than 30

each

days

redemption shall be

nor more

of the Cities of San

order, the

inverse numerical

maturing in

so

called

any one

1968

2

1969

100

3,200,000

2

1970

100

3,200,000

2

1971

2.05%

pledged for the punctual payment of both

are

principal and interest. The bonds are authorized for the purpose
assisting California war veterans to acquire farms and homes,
the cost of which must be repaid to the State on an amortized

less than all the bonds

not

2

3,200,000

State of California

should be redeemed, they shall be called
part

3,000,000

faith and credit of the

of the General Fund of the State. The full

Cali¬

Francisco, Sacramento and Los Angeles,

fornia. If less than all the bonds
in

payable in accordance with the Veterans' Bond Act of 1954 out

week for two weeks not less

once a

than 90 days prior to said date of redemption, in

3,200,000

2

1972*

2.10%

3,400,000

of

year,

2

1973*

2.15%

3,400,000

2

1974*

3,400,000

purchase basis.

2

1975*

are

offered when,

as

Edmund G. Brown, Attorney

and if issued and received by us and subject to approval of legality by the Honorable
General of the State of California, and by Messrs. Orrick, Dahlquist, Herrington
6 Sutcliffe, Attorneys, San Francisco, California.

Bank of America N. T. & S. A.
American Trust

Giore, Forgan & Co.

Company

of Los

A. C.

Allyn and Company

William R. Staats & Co.

California Bank

Dean Witter & Co.

Equitable Securities Corporation

Security-First National Bank

Coffin & Burr

B. J. Van Ingen & Co. Inc.

call at par, plus
described above.

Harris Trust and Savings Bank

R. H. Moulton & Company

Weeden & Co.

The First National Bank
of Portland, Oregon

Incorporated

Reynolds & Co.

J. Barth & Co.

F. S. Smithers & Co.

Bacon, Whipple & Co.

Incorporated

Shearson, Hammill & Co.

Brown Brothers Harriman & Co.

Trust Company of Georgia

Clark, Dodge & Co.

A. G. Becker & Co.

Hayden, Stone & Co.

Barr Brothers & Co.

Heller. Bruce & Co.

Incorporated

Andrews & Wells, Inc.

to

Bachc&Co.

Wertheim & Co.

I«s Angeles

Angeles

Incorporated

Roosevelt & Cross

1972-76, subject

accrued interest, February 1, 1971, as

San Francisco

Seattle-First National Bank

Re-offering

maturity.

Merrill Lynch, Pierce, Fenner & Beane

Union Securities Corporation

Goldman, Sachs & Co.

C. J. Devine & Co.

to

"Bonds maturing

Harriman Ripley & Co.
Incorporated

The First Boston Corporation

Blyth & Co., Inc.

The Chase National Bank

The National City Bank of New York

tYield

2.20%

2.20%
No

1976*

74

3,400,000

These bonds

1.95%

,

G. H. Walker & Co.

Ira Haupt & Co.

Wood, Struthers & Co.

E. F. Hutton & Company

Incorporated

New York Hanseatic Corporation

A. M. Kidder & Co.

Fidelity Union Trust Company

The Ohio Company

-

The Robinson-Humphrey Company, Inc.

Lawson, Levy & Williams

1 Talmage & Co..

Burns, Corbett & Pickard, Inc.

Northwestern National Bank

Davis, Skaggs & Co.

of

Fulton, Reid & Co.

A. G. Edwards & Sons

Wachovia Bank and Trust Company

Hayden, Miller & Co.

National ol Seattle Commerce
Bank of

The Milwaukee Company

Dwinnell, Harkness & Hill

Isphording, Inc.

January 6, 1955




The National City Bank

Fairman, Harris & Company, Inc.

William Blair & Company
'

of Cleveland

Crutfenden & Co.

Hooker & Fay

Ginther, Johnston & Co.

Foster & Marshall

H. V. Sattley & Co., Inc.

Wurts, Dulles & Co.

Scott, Horner & Mason, Inc.

Kenower, MacArthur & Co.

McCormick & Co.

Field, Richards & Co.

Blunt Ellis & Simmons
Lucas, Eisen & Waeckerle
Incorporated

Thornton, Mohr & Farish

Boettcher and Company

Stein Bros. & Boyce

Janney & Co.

The Peoples National Bank

The Continental Bank and Trust Company

Charlottesville, Va.

Rockland-Atlas National Bank

Salt Lake City, Utah

of Boston

.

J. B. Hanauer & Co.
Walter Stokes & Company

Ferris & Company
Fred D. Blake & Co.

J. C. Wheat & Co.

Seasongood & Mayer

Stern, Frank, Meyer & Fox

Stubbs, Smith & Lombardo, Inc.

Arthur L. Wright & Co., Inc.

Magnus & Company

Ill
r
.

Bosworth, Sullivan & Company, Inc.

Shuman, Agnew & Co.
Courts & Co.

Julien Collins & Company

Bartow Leeds & Co.

Wm. E. Pollock & Co., Inc.

*

Prescott&Co.

Incorporated

Brush, Slocumb & Co. Inc.

R. D. White & Company

Irving Lundborg & Co.

Stone & Youngberg

Mullaney, Wells & Company

Kaiser & Co.

H. M. Byllesby and Company
(Incorporated)

Folger, Nolan-W. B. Iiibbs & Co. Inc.

H. E. Work & Co.

Kalman & Company, Inc.

Robert Winthrop & Co.

Minneapolis

Anderson & Strudwick

Doll &

Incorporated

ol Memphis

Schaffer, Neckcr & Co.

Branch Banking & Trust Company

Gregory & Son

The First National Bank

Newark

Wagenseller & Durst, Inc.

The Weil, Roth & Irving Co.

Walter, Woody and Heimcrdinger

C. N. White & Co.

:

1'

8

The Commercial and Financial Chronicle

(64)

New

Electric System — Memorandum—Auchincloss,
Redpath, 52 Wall Street, New York 5, N. Y.
Nuclear Instrument & Chemical
Corporation—Report—Loewi
& Co., 225 East Mason Street, Milwaukee
2, Wis. Also avail¬

Dealer-Broker Investment

able is
Pubco

Map

Saco

Inc.—Memorandum—Hodgdon

ton

7, D. C.

10

In

Jan.

Shops—Memorandum—May & Gannon, Inc., 161
Street, Boston 10, Mass.

Chemical & Materials'
Corp.—Analysis—Kalb,
Co., 25 Broad Street, New York 4, N. Y.

Jan.

United Biscuit Co.—Memorandum—Herzfeld & Stern, 30 Broad

Domestic Airline

American

to

ence

Airlines,

Capital

and

Inc.

Airlines,

of

the

Jan.

Starlight Roof, Waldorf-

17, 1955

Notes

Jan.

24, 1955

N. W.

annual

—

Fifty
&

I

du

Growth

Tabulation

in

Co., Ltd.,
Japan.

4,

Street, New York 5, N. Y.
1950's—Bulletin—T. Rowe Price

the

Through

weekly

Stock

Japanese

GEORGIA

SECURITY

The Georgia

lowing

new

DEALERS

ASSOCIATION

Jan.

Security Dealers Association has elected the fol¬

officers for

1955:

Chiyoda-ku,

Marunouchi,

Co..

Ltd.,

Inflation—Lesson

Irredeemable

of

Broadway, New York 7, N.

Ill

Chips—The

Blue

of

Cur¬

at

New

York

City

the

the National Quotation

13-year

a

period

Street,

Front

Directory—Gives name of company, capitalization,
incorporated, and in what state—$10.00 per copy—
Claudia
H.
Smith, Public Stenographer, c/o Hotel Utah,
Salt Lake City, Utah.

when

*

Anglo Canadian

«t

Stuart

&

Co.

Inc.,

35

*

Oil

Company Ltd.—Analysis—Nesbitt, Thom¬
Company, Ltd., 355 St. James St., W., Montreal, Cariada.
Beatrice Food Co.
Memorandum
J." A.* Hogle & Co., 50
Broadway, New York 4, N. Y.
Bowater Paper Corp. Ltd.—Memorandum—Hirsch &
Co., 25
son

&

—

Broad
British

—

Street, New York 4, N. Y.
Petroleum

Company,

Ltd.—Analysis—American

Se¬

curities

Corporation, 25 Broad Street, New York 4, N. Y.
Carpenter & Company Inc.—Analysis—Boenning & Co.,

E.

1529 Walnut

Street, Philadelphia 3, Pa.
Consolidated
Freightways, Inc.
Analysis — First California
Company, Inc., 300 Montgomery Street, San Francisco 20,
California.
Also available is an analysis of Southern Cali¬
—

fornia Water Company.
Delhi Oil Corp.—Memorandum—Fewel &

Street,

Los

Delta Air

Angeles

13,

Co., 453 South Spring

Calif.

Lines Inc.—Review—John

H.

Lewis

&

Co., 63 Wall

Street, New York 5, N. Y.—$2.00.
Products, Inc.—Bulletin—Bwnbaum & Co., 60 Broad
Street, N°w York 4, N. Y. Also available is a bulletin on

Doeskin

Citizens

Utilities

Foremost Dairies
15 Broad

Co.

Inc.—Memorandum—Hemphill, Noyes & Co.,

Street, New York 5, N. Y.

Four Comers Uranium
115

New

York

Co'-p.—Analysis—Reynolds & Co., 120 Broadway,
&

—

Street,

New

York

Federation

of

Finan¬

Analysts

Societies
Commodore.
I

the

at

18-21,

1955

(White

Sulphur

Spring

meeting

of

Board

of

Governors.

11-14, 1955 (Mackinac Is¬
land, Mich.)
National Security Traders Asso¬

Left to right: Roy W. Hancock, President; Justus C.
Martin,
Jr., Secretary-Treasurer; and James B. Dean, Vice-President.

&

to

the Executive Committee.

Nov.

27-Dec. 2, 1955

(Hollywood,

Florida)
Investment Bankers Association
annual

'

,

meeting of Board of Gov¬

ernors.

Wayne Martin, Clement A. Evans & Co., Jackson P. Dick,
Jr., Beer & Co., Barnard Murphy, Jr., Norris & Hirshberg, Inc.,
and Robert M.
Bray, Jr., Trust Company of Georgia, were named

Convention

wood

Carl

M.

.

at

Holly¬

Beach Hotel.

SECURITY TRADERS ASSOCIATION OF NEW YORK

Security Traders Association of New York Inc. (STANY)
Bowling League standing as of Dec. 30, 1954 is as follows:
Team:

'

Leone (Capt.),

Fitzpatrick

Carl M. Loeb

Points

Nieman, O'Mara, Forbes, Greenberg, Murphy
Donadio (Capt.), Hunter, Fredericks,
Demaye, Sarjas, Kelly/
Bean (Capt.), Meyer,
Bies, Pollack, Leinhardt, Weiler
Mewing (Capt.), Define, Gavin, Montanye, Bradley, Huff
Barker (Capt.), Brown,
Corby, Weseman, Whiting, * -

of

39

39
39

!

38V2

Kullman,

•O'Connor

Krisam

many

AN

Rappa, Farreil, Voccolli, Strauss,

Point

Club

Serlen

5
211
211

Point

Charlie

for

AUTHENTIC

10-PAGE

Currency"
Price,
One

18

50

prepaid,

Copy,

Kaiser

in

U.

25c;

10

Copies, $7.50;

Club

Address

Chapel

St.,

&

Canada:

$2.00;

100 Copies, $10.00
Orders

FREDERICK
2009

S.

Copies,

G.

New

to

SHULL
Haven

15,

Conn.

Barker

DEPENDABLE MARKETS

Co., Ltd.
Member

well known

Lesson of Irredeemable

28Vi

Roy Klein
Jack

Aomuva securities

Cohen

was

philanthropic activities.

'Trench Revolution Inflation-

19Vi

___

Joe Donadio

Electronic

Mr. Loeb

PAMPHLET, ENTITLED

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

(Capt.)

Highlights No. 29

79.

28

,

partner

M.

his

33

Serlen (Capt.), Rogers, Krumholz, Wechsler,
Gersten, Gold
Meyer (Capt.), Murphy, Frankel, Swenson, Dawson Smith,

-

senior

37
36

Craig

Loeb,

Loeb, Rhoades & Co.
passed away Jan. 3 at the age of

McGovan,

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

Klein

Carl

37 V2

Manson (Capt.), Jacobs, Siegel, Topol,
Frankel, Tisch
Kaiser (Capt.), Hunt, Werkmeister,

5, N. Y.

Going to Press—

Fall

& Co.,
Vice-President; and Justus C. Martin, Jr., Rob¬
inson-Humphrey & Co., Secretary-Treasurer. -

11

Co., 30

16-17 (Chicago, 111.)
Investment Bankers Association

Tindall

Hank

Heller

ciation annual convention.

Sept.

Roy W. Hancock, Hancock, Blackstock & Co., Atlanta, Presi¬
dent, succeeding J. W. Means, Courts & Co.; James B. Dean, J. W.

200

McKinnon,

Wall

Pine

.

5, N. Y.

Harvester—Report—Thomson
Street, New York 5, N. Y.
Masonite Corporation
Analysis — Stanley

meeting

Springs)

McCloud

International

spring

Investment Bankers Association

Kuehner

Corp.—Memorandum—Goodbody & Co.,

Broadway, New York 6, N. Y.

Harnisc' f«ger

Y.)

Sept.

Uranium

Survey—For 1954—Halsey,
Street, New York 5, N. Y.

York, N.

(Houston, Tex.)

Association

Hotel

Hickey, 49 Wall

Street, New York 5. N. Y.

Year-End

(New

Security Dealers As¬

New

5, N. Y.
&

Association

Biltmore Hotel.

National

May

York

1955

24-27, 1955

cial

—

Bank

for 1955—Bulletin—Vilas

Traders

May 8-10, 1955 (New York City)

N. Y.

Co., Inc.. 70 Pino Street, New

Wall

(Philadelphia, Pa.)

at the Shamrock Hotel.

Bureau Averages, both as to

market performance over
Quotation
Bureau, Inc., 46

Outlook

Baltimore

Texas Group Investment Bank¬

Stocks—Comparison of 11 largest Phila¬
delphia Banks—Stroud & Company, Incorporated, 123 South
Broad Street, Philadelphia 9, Pa.
Public Utility Common Slocks—Tabulation—G. A. Saxton &
Railroad

1955

11,

April

Jones Averages and the 35 over-the-counter industrial stocks

Philadelphia

Lord

Stocks—

Index—Folder showing an up-to-date com¬
parison between the listed industrial stocks used in the Dow-

York 4.

the

sociation 29th Annual Dinner at

Y.

Bank

Over-the-Counter

National

the

at

(Baltimore, Md.)

at

New York

Secu¬

ers

and

Chicago

Philadelphia annual dinner
the Benjamin Franklin Hotel.

Mar,

poration.

yield

28, 1955

Feb. 25,

Bulletin, Laird, Bissell & Meeds, 120 Broadway, New York
5, N. Y. Also available is an analysis of National Steel Cor¬

used in

of

dinner

Hotel.

Tokyo,

Investment Opportunities in Japan—Circular—Yamaichi
rities

Club

winter

Dinner

Market—

rency—one copy, 25c;
10 copies, $2.00; 50 copies, $7.50; 100
copies, $10.00—Frederick G. Shull, 2009 Chapel Street, New
Haven 15, Conn.

Neglected

(Chicago, III.)

Traders

Investment

Revolution

of

Room

Baltimore Security Traders As¬
sociation
annual
Mid - Winter

Md.

2,

of

bulletin—The Nikko Securities

stock

1-chome,

Baltimore

Building,

the

Club

anniversary

Furniture Club.

Wall

1

Mathieson

Inc.,

Investment

French

Co.,

Stocks for

Associates,

Foreign

&

Pont

25th

in the Mirage
Barclay Hotel.

the

Bond

Francis

Women's

dinner

NSTA

Inc.

Washington, D. C.
Facts and Figures in Review—Comparisons of research yard¬
sticks 1954 vs. 1953
in current issue of "Gleanings" —

(Philadelphia, Pa.)

Philadelphia

—$20 per copy—Henry Beecken & Associates, 1333 G Street,

L.

officers.

Investment

Nihonbashi,

Industry—Financial study, with special refer¬

Pa.)

14, 1955 (New York, N. Y.)

at

"Monthly Stock Di¬

1-chome,

Ltd.,

gest'—Nomura Securities Co.,
Tori. Chuo-ku, Tokyo, Japan.

(Philadelphia,

Astoria.

36, N. Y.
Fertilizer Industry—Analysis in

1955

Bond Club of New York dinner

.

Market—Newling & Co., 21 West 44th Street, New York

ties

Chemical

14,

tion

Voorhis

Letter—Fortnightly review of the Canadian Securi¬

Canadian

Field

Philadelphia Securities Associa¬
tion annual meeting and elec¬

Street, New York 4, N. Y.

s

Investment

Light & Power Co.—Analysis—Ira Haupt & Co., Ill

Lowell

&

1033 Thirtieth Street, N. W., Washing¬

Securities Company,

Co.,

&

Street, Boston 9, Mass.

Devonshire

Development

Glossary—Literature—Atomic

and

EVENTS

the Oilgear Company.

on

Union

Atomic

COMING

Broadway, New York 6, N. Y.

mentioned will he pleased
interested parties the following literature:

send

to

report

a

Rockland

the firtns

understood that

is

&

Development

State

Recommendations & Literature

Thursday, January 6, 1955

England

Parker

It

...

GABRIEL

SECURITIES

N.A.S.D

3420

BERGENLINE

UNION

Ilroker and Dealer

AVENUE

CITY, NEW JERSEY
UNion 4-7404

Dollars and Sense

Material and Consultation
on

Troster. Singer & Co.
HA

2-

2400

Members:

74

N.

Y.

°Security

Dealers

Association

Trinity Place, New York 6, N. Y.




ORIGINATORS

Japanese Stocks and Bonds
without
NY

1-

376

61

Broadway, New
Tel.:

BOwling
Head

AND

obligation

Green

Office

9-0187

Tokyo

UNDERWRITERS

CORPORATE

York 6, N. Y.

DEMPSEY-TEGELER & CO.

PUBLIC

AND

FINANCING

>z>zzzsBzzzzmz!ZfflzzMzmztm!m2m

I

Volume 181

Number 5392

..The Commercial and Financial Chronicle

.

(65)

the

when

The Outlook in the

Finally,

Durable Goods Industry
and trends

in the various

disadvantage, and

a

industries leads to the
viction
more

that in

tempt

high. It

ous

ated

of

loans
In

segments

lem of

K-w.Tibbitts

mergers

have

in

occurred

in¬

dustry have been prompted by the
aim

of the manufacturer to place
himself in a stronger competitive

position. To attract the better dis¬

tributors,

it is

to offer
ances.

a

be

in

position

a

complete line of appli¬

Increased

vertising

for the

necessary

iranufacturer to

selling and ad¬
cannot be

expenses

sup-

One

the

address

Seventh

by

Mr.

National

Tibbitts

Credit

before

the American Bankers As¬
sociation, Chicago, 111., Dec. 16, 1954.

year,

of

automatic

machinery
Again, the

integrated plants.

of

this circum¬
of the larger

have

developed
the prob¬

overcome

into

several

standing
retailer

of

the

anteed

lending his credit
the distributor and

to

by

entering

for

into

guar¬

repurchase agreements in

order to establish

repossessed

a

or

ready market
inven¬

excess

In other instances, notes

tory.
trade

acceptances

taken

are

or

for

instances,

the

facturer has established

whose

ary

A year ago, as a

the

ad¬

function

a

is

manu¬

subsidi¬

to

make

floor-plan loans to the distributor

of

been

of

with

the

excep¬

air-conditioning

units.

of

out

the

old

merchandise

abled the

manufacturers

out

models,

new

mechanically
styled.

gains

bring

priced,

even

savings

cost

the

of

use

stem¬

adopting

are

antiquated.

believe
is

in

aware

some

tivity is

essential

ries

to

are

that

cases

in

increase

an

if

regain

portant-of
reduced

to

electric

prices have
stalment

facto¬

within

op¬

the

and

popular eight-cubic-foot-re¬

very

frigerator.
A

realistic

more

adopted

being

structure.

toward

that

it

price

agreements

nance

the

Realistically,

admitted

ing

attitude

tive

market.

a

im¬

to

With empha¬
costs, the manufacturers of

automobile

parts

it essential

to

duction

prices

of

are

COUNSEL

.

featuring
CROWTH

its

the

plants
This

evident

been

has

BUILDING

BALTIMORE

2,

of

new

which
or

placing

be

en¬

establish

resenting

a

unit.

Sales

for

the

past

year

par¬

1955

the

to

manufacturer, the dol-

Ccntinued

on

ter

PLEASURE

ADMITTED
OF

his

price.

own

IN

ANNOUNCING THAT

AS

PARTNER

A GENERAL

OUR

FIRM

Many

Bonner 8c Gregory
MEMBERS

the market,

adjusting their oper¬
ating expenses to enable them to
compete with the discount houses.
may

for

create

YORK

STOCK

EXCHANGE

NEW

distributor,

it

problem for the fi¬

a

institution

the

of

Some

comtemplating
January 1, 1955

appliances,
particularly
automatic
washers
and dryers, require a great deal
more servicing than others. Again
the advantage is with the larger
new

for

the

for

YORK 4, N. Y.

the pric¬

ease

the

NEW

30 PINE STREET

floor-plan transaction.

it

is

to

are

pleased to

announce

have become members

that

of the

NEW YORK STOCK EXCHANGE

much

factory

big

We
ice

set

authorized service stations.
there

1954,

produced

were

1.600,000

Amott, Baker & Co.

window-'

air-conditioning

type

the

of

cause

units; Be¬
season, about

poor

Incorporated
150 BROADWAY

remained unso'd. During
the year, there were close to 95
concerns
assemblying such units,
as compared with about 75 a year
earlier. It is probable that a con¬
number

the

market

MD.

NEW YORK 38,

1955.

the

of

have

Philadelphia Office

Harry R.

1420 Walnut Street

•

Amott, President

John H. Hawkins, Vice Pres. & Sedy.

Wilbur J. Janssen, Treasurer

William

Allan H. Levian, Ass't Sedy.

J. Baroni, Jr., Vice Pres.

automobile

new

been

N. Y.

Telephone: BArclay 7-4880

withdraw

will

during

Automobiles

for

they

introduce!. No

eloquently

speak

for

Although factoryprices in most instances
lower, discounts 'already

quoted
are

no

are

being

the

A

new

offered

dealers

Style

lines.

by

and

We

are

phased to

announce

that

on
en¬

ALDEN'L. ODT

gineering changes.,,are so exten¬
an increase in prcduction is

sive,
prosperous

out

we

will

what,

in

be the most
and

New

Year

continue

during
to

point

opinion,

our

may

promising investment

looked

likeli
will

63 WAIL STREET

WHitshall <-3435




•

NEW YORK 5,

N. Y.

is

much

coming

the

restore

JOSEPH SONDHEIMER

more

months

traditional

have been admitted to

com¬

will

purchaser

benefit

in

interest

is

of

the

manufacturers.

The

more

in

independent
outlook
more

is

STEIN ROE

wide¬

it

did

lack

from

as

much from

of good designs as

the

the

cars

made

135

South La Salle Street
Chicago

rivalry

between
the two largest producers which
led to lower net prices.
Most of

by the independents

&

FARNHAM

Investment Counsel

spread admission that their unfor¬
tunate
position in the last 18
own

Jinn

through

exore^sed

hopeful. There is

months has resulted
their

our

allowances.

trade-in

future

partnership

the t'"ree

largest producers. The automobile

Much

COMPANY

the

petitive balance among

the

d'AVIGDOR

There

for.

ood

better

growth equities.

page

Mr. William H. Gregory, III
HAS BEEN

January 1, 1955

re¬

will top 6 million units, and
should compare favorably.

per

themselves.

which

are

transformers, rep¬
savings of $7 or $3

comment about them is necessaiy,

Dkai.kr Frii:ni)s

separate

are

department stores and bet¬
grade dealers are reentering

models

ourt

heretofore

four

rectifiers

january i, 1955

some

of

One

power

be¬

of the

All

To

tubes

variety.

mainte¬

cannot

the

on

type

work

small stamped parts.

WE TAKE

re¬

costs.

lowing the distributor and dealer

from

MATHIESON

are

three

con¬

respect

sets

Selenium

For

in

re¬

part

production

the

tubes.

required

the

being

prices in

required

right

prepared to

reduced

multipurpose

does

possibility of fabricating

own

ticularly

the

dependable

at

now

one.

is

discontinuing
the practice of publishing and ad¬
vertising suggested list prices, al¬

siderable

STOCKS

are

savings in

velopment

pro¬

not available, the auto¬

mobile maker is

sider the

If

parts

level

a

Con¬
of the older and

many

sets

to

every

market, made possible by the de¬

also finding

are

improve their

methods.

suDpIies

in

fail

will

The

400,000

AND

of

Fourteen-tube

margin

demand

The lower

placed.

competition

appreciably.

on

that

been

price
is

Accordingly,

manufacturers

approximately

RESEARCH

reach

flect

sis

have

brought monthly- in¬

dealer's
prove

of

Most im¬

forced successfully in so competi¬

In

INVESTMENT

prices

payments

sequently,

busi¬

possibility

point

a

sight, due to the resurgence of
Chrysler, it is not improbable the

clothes components.

ranges,

the

all,

to

smaller
intense

marginal

discontinued

has been restimulated.

erations.
more

over¬

Inventories

ago.

Most of the

reducing

ness,

labor

profitable

year

have

further distress selling.

produc¬

these

a

accounts

which

reason

of

normal.

are

in

better

those

There is

in

Time

Television Receivers—The
that

production

management
and
methods to replace

segments

industry.

a

all condition is much sounder than

knowledge that the combined
are

Industry

many

review only of the more
important divisions.

common

encouragement

more

bet¬

and

upright freezers,

dryers,

up

T. ROWE PRICE & ASSOCIATES, INC.

lower

en¬

Items showing the best

are

easier

request

to

improved,

manufacturer,
upon

of

has

Buying in all lines turned sharoly
upward in September.
Clearing

nancial

available

type

every

condition

overcome,

tion

a

LIST

heavy

That

ing factor

REVISED

over¬

were

almost

may

FIFTY GROWTH STOCKS FOR THE 1950's

resuH of

there

appliance.

stocks

to

rediscount.

other

is

With

production,

These

patterns.

consists

essence

from

are

tumultuous

permits

in

Although this

Bulletin

expendi¬

larger manufacturer has

ter

manufacturer's

Conference

sponsored by

the

adequate financing.

in

In
*An

busi¬

intended to assist their

fall

plans

this

of

of

repayment

number

a

distributors to

A number of

the

recognition

programs

respond.

which

the

difficult.

more

manufacturers

to

all

seasonal

stance,

are

volume

throughout

making

vari¬

likely

are

supplement

steadier

a

ness

consider

of business

frequently

to

own working capital.
variety of products has cre¬

The

remarks

the

bor¬

distributor's

a

The

purpose

facilities

insufficient

Normal

this

taken

tooling and the combining of serv¬
ice and parts functions. But there

vantage.

receivables.

in

rowing

re¬

hastened

•

and

h asing

fine year.

how

items.

larger investment in merchandise

should be

to

three

or

advantage.

But the thinner profit

have

for

tures

to

ever

His

power

is

two

distinct

a

margins

line comprising only

a

ming

organizations

leveled off.

the

before

these

ported by

availability of such financ¬

Prices in the past year have de¬

Because of the growing list of
appliances, the distributor in turn
is* finding it necessary to have a

consumer.

mains

con¬
will be

merchandise than

new

pure

strong

there

1955

goods

which have

important in .that they

are

the

and

of the durable

review

The mergers

place

organizations,

clined, though recently they have

them fall short of the mark.
A

manufac¬

one

Electronic

There

will make possible stronger dealer

have

efforts to aid

government

some

least

prospective purchaser.

Clearly, the larger manufacturers

goods industry. Among the fields cov¬
ered are:
(1) household appliances; (2) automobiles; (3)
electronics, and (4) airplanes. Finds as trends in the durable
goods industries: 0) automatic machinery; (2) plant disper- ;
sion, and (3) mergers. Holds small producers of durable goods
at

at

The

simply not attractive to the

were

ing plans is a strong selling point
in attracting the distributor.

sectors of the durable

are

all

a subsidiary that
purchase preferred stock of
the wholesaler, to be retired from
future earnings.

The

the situation

utilized

turer has formed

Vice-President, National Credit Office, Inc.
reviev/s

has

will

By K. W. TIBBITTS*

Mr. Tibbitts

latter

other methods of borrowing avail¬
able to it.

9

60 Broadway

New York

26

10

The Commercial and Financial Chronicle

(66)

NAM Reports on

North Kansas City, Mp."
H.
E.
Blagden, Second

President

Department of the National Association
of Manufacturers contends that, if nation's economy continues

that

contends

if

'ie nation's economy continues to

:>:pand

Americans may

most

be

provide for themselves in
neir later years and that the need
le to

r
government - provided social
•purity 'and
public
assistance

■

that

high

em-

earnings, .improved
-portunities for savings and in'stment, and more job openings
»r
older people
should enable
'■ost. Americans to be financially
oyment and

their
retirement

throughout

in

and

lives

bo.

The forecast

continuing

in

was

report

a

on

ccurity with special emphasis on
ic
Federal social security pro¬
gram.
A committee of industrial•

ts made the study with the help

specialists

•>:

related technical

on

-oblems.
In

its

ent

54-page report,

Security in

the vadity of views that older people
less

re

as

fewer

self-supportresult of increasing in-

jportunities
-jg

have

and

secure

a

to be

astrialization.

indications
?at the reverse may be true, the
ammittee reported.
It cited re'nt
findings that, although the
••oportion of older people in the
there

Actually,

ovulation

Vjyment
i'

reused

is

are

increasing, the

em-

older

of
at

workers has
even
more
rapid

an

and noted that wider home
nership. the spread of private
f usion plans, and increased sav»bs in other forms have given

••be,
v

financial security

aeater

umbers

of

Americans.

On the fundamental

\?aether

to vast

Americans

will

be

a

proletariat

living

*Youth existence
\

or

a

self-reliant

ent,

hand-to-

healthy, solpeople,"
the

a

committee concluded:
"Given

the

right economic cli¬

mate, most Americans will be bet< ?c able to take

care

of themselves

i'i the future than thev

ever

have

1

change,

differences

in

eligibility,

personal

and that

be

the

of

Because

tion,

the

its

sive

burden

on

the

producers

in

the economy.

for

dealing
may

was

inflation

which

which

headed

would

made

by

Research

James

the

H.

Director

of

Armstrong Cork Co., Lancas¬
ter, Pa., as Associate Chairman.
members

were

Stuart

F.

Arnold, Assistant Manager, Indus¬
trial Relations, Union Carbide &
Carbon Corp., New York; H. H.
Bunchman, Treasurer, Crane Co.,

Chicago; William G. Caples, VicePresident, Inland Steel Co., Chi¬
cago;
A.
C.
Conde,
Executive
Vice-President, Indiana Manufac¬
turers
Association, Indianapolis;
C. Manton Eddy, Vice-President
and Secretary, Connecticut Gen¬
eral Life Insurance Co., Hartford.
Also E. B. Gardner, Vice-Presi¬

dent,

Bank, New
York;
Arthur L.
Grede, VicePresident, Grede Foundries, Inc.,
A.

C.

Harragin,

Comptroller, Lone Star Cement
Corp., New York; A. D. Marshall,
Vice-President, General Dynamics
Corporation, New York; H. M.
Melonev,
wich,

Secretary,
Institute, Green¬
A. Moore,
Moore Dry Dock

Joseph

has

is

Adlai
for

easy

Democratic

the

historical

an

a

bag.

It

Presi¬

is

this

about

winning

fact, with exceptions,
winning the off-year.

party

recent

exception

reelected

in

+v,e
This

F.

Arrowsmith

L).

the

Senate

nothing

proves

n.ow.i

u.

after

and

Presidential election in
Arrowsmith
with

ted

the
to

Feb.

firm

1,

1955.

of

as

also

an¬

R. Wilson
it

municipal

as

man¬

bond

de¬

partment.
Mr. Arrowsmith began his busi¬
ness

career

the

ed

he

to

manager

he join¬

of

department

Trust

later

years

1919 when

in

bond

Bankers

Company.
resigned as

the

Ten
sales

Wertheim

join

&

Company

as
manager
of
that
investment department. In

firm's
1935

he

formed

rowsmith
cialized

&

the

firm

Company

in

of

Four

name

was

later

years

changed

Ar¬

and

investment

work.

spe¬

counsel

the

firm

Arrow-

to

smith, Post & Welch which was
merged in 1949 with J. R. Williston

Co.

&

continue
ment

Mr.

Arrowsmith

specializing

counsel

in

work

will

invest¬

in

his

new

trader with

curities
1946

was

municipal bond

Stone

&

Webster Se¬

later

ing.

Corporation

to

manage

firm's municipal

He

the

bond trad¬

elected

was

Secu¬

assistant

worthwhile

any

because

the

Republicans

had

Bargeron

1948

away.

bag until Dewey threw it

the

The

the

members

of

Congress

think

that

case.

place, the outcome of the 1954 Congressional elec¬
tions was freakish.
Neither side won.
Oh, it so happens that
the Democratic elected enough members in. the House to take
over the Committee Chairmanships and the
Speaker and majority
leadership but not by any substantial margin, not by any margin
to

show

the

prefers

country

Democrats

to

Republicans.

:

In

the

Senate, the

fact is that if one Senator had just been known by
his constituency, if he had just taken the trouble to
get around'
his state occasionally, the Republicans would still control.
The

fact

that

the

Demociats are thus slenderly in control
something to the politicians but little, if
anything, to the people of the country. To the extent that it does
mean anything it is
likely to be good for the country in that very
probably thee will be a stalemate on new legislation or new
of

both

houses

innovations.

the late

As

dency,

was

in

matter

the

means

faced
of

with

William

Howard

opposition

an

laws

new

is

often

Taft

Congress,

who, in his Presi¬
said, a stalemate

desirable.

The people have
opportunity to digest the old ones that are on the books.
One gets a kick out of the noble professions of Democratic
leaders that they will work in a spirit of cooperation with Presi¬
the

Eisenhower,

that

and

support his when
than that.
But

their

they

him

oppose

Well,

when

he

can't ask

you

is

wrong

better

any

future for the Democrats is to elect

of

one

the

to

own

will

he is right.

the only, real

Presidency in 1956. They can do this only, and
they know it, and
privately admit it, through the political
destruction of Eisenhower.
They can rave and rant about the

division

in

the

Republican

their candidates

vice-president in 1950.

Democratic

so.

In the first

Corporation from 1932 to

when he joined Union

rities

if

of touay, tnis would be

dent

connection.
Mr. Wilson

Carlisle

Now, however, we are confronted with the picture of the
Republicans having lost both houses of Congress in 1954, and
according to tradition, they will lose the Presidency in 1956. Few

firm

Raymond

the

of

ager

had

1946.

be admit¬

will

partnership

The

that

was

Republicans

associated

associated with

now

hence. A

Truman

in

the

victory in

years

evidence is mountain high that this is

now

and

general

nounces

is

is

to

on

two

when

was

1948

House

goes

elections

Presidential

be able to

run

party

all

for the Senate and

on

they

want.

members of

the

in

But

House

1956
won't

the

proposition that they supported the Repub¬
lican President more than certain Republican members of
Congress
did, as many of them campaigned in 1954.
They will have a

Frederick L. Karson

Presidential candidate

Forms Own Firm

Ira

Mosher, President, Ira
Associates,
Inc.,
New

So

that

if

job

in

and

the

Some

destroy

of

to

to

tear

down

the

this is their job

prosperity prevails in
ideas

1956

Republican

and they know

which

with,

are

the

they won't have

a

Democrats

hope to politically
downright silly. One is that the
maligned a lot of Government

has

firings and its claim to have got rid of

some

subversives.

early

own.

is

know

Administration

employees by
get

their
now

world.
the

Eisenhower

Eisenhower

of

of

from

The Democrats

peace

chance

Harvey

L.
Spaunberg,
President,
Veeder - Root,
Inc.,
Hartford, Conn.; Harry G. Waltner, Jr., Assistant Manager, Insur¬
ance
and Social Security Depart¬
ment, Standard Oil Co. (N. J.),
New York; and Jack P.
Whitaker,

their

President,

Apparently two Congressional Committees

work

on

this.

One

Committee

lot

a

are

to

is

designed to show
whom we are told are utterly essential
to the smooth
functioning of our foreign and domestic affairs,
have been shamefully dismissed and their
reputations damaged.
tha+

verv

The

other

ph1^

rid

Trading Markets

of.

ro,\

rr.pi

Committee

exaggerated

Active

the

in

illusions

no

political

a

the

President,
Co., Oakland, Calif.;
Also

rest

the

that

Executive
Forms

Conn.;

all

gazers,

to

Presidency in 1956/ We

has

Congressional elections,

Chase National

Milwaukee;

is

is, their

bat

committee

the

Other

he

nomination

It

the

Robins, President of the American
Pulley
Co.,
Philadelphia,
as
Chairman, with Dudley M. Mason,
Personnel

ball

do

That

of

many

Presidency in 1956.

a

greatly reduce the value of bene¬
fit payments.
study

to

that

he

won

group

crystal

has

believe

must

writer's information he thinks this is true

a

the danger that an old
security program, involving
many
billions of dollars, could

The

we

ii

capture the

told

dential

with

have

factor,"

the

report

an

political

Stevenson

are

funds with

stressed

to

tutui'c,

puiiticai

time and

no

age

lead

appear

at heart, most dubious about the future.

are,

the

the state of the country's wellCongress assembles, that although
to be riding on a high wave of prosperity,
on

as tne new

stay out of the limelight for fear of
wearing himself out and return- at the proper

group said.
In

Democrats

bearing

no

is,

tne iact

while,

program

prospect

for

measures

York;

working and saving,

Ex¬

Donald

F.

the

or

that

old-age dependency
"high
obsolescence

Mosher

viduals from

Stock

that

for older members of the popula¬

jeopardized

drained off capital needed for in¬
dustrial growth, or put an exces¬

City,

York

York

52

"continuing and potentially revo¬
lutionary change for the better"

creation of the proper climate for
economic
expansion
could
be

by a social security
program which discouraged indi¬

New

they

little

being, but

Co.,

&

New

announce

Noel

earnings,

the

OASI

of

Jr.,
that

Noel

By CARLISLE BARGERON
It has

general funds of government.

tion rather than the rule."
warned

reflect

self-sustaining with

intermixture

Business

committee

should

1!

that there should be clear rules of

een before.
That is, destitute old
/umericans .stand to be the excep¬

The

Street,

members

question of

'

Wall

Alstyne,

terms and said that benefits

"Retirem¬

committee questioned

je

Van'

contributions

Free Society,"

a

cautioned

easy

of retirement

study

also

With Van Alslyne,

and

••

orking

Washington
Ahead
of the News

as

Arrowsmifh, Wilson

against "cutting more groups in"
on the social security program on

siiou.d

decrease.
The NAM said

pay

'{If-sufficient

committee

The

of

Association

National

The

From

no

population.

Manufacturers

Vice-

Actuary

America, Newark, N. J., served
a Consultant in the study.

can provide for themselves in old
government-provided social security
or
public assistance. Holds employment of older workers
'has increased at higher rate than proportion of aged in the

and therefore need

Associate

and

of the Prudential Insurance Co. of

expaivd, most Americans

age,

Thursday, January 6, 1955

President, Whitaker Cable Corp.,

Retirement Security

Industrial Relations

to

...

in

hopes to show that the Administration

the number

of

subversives

it

claims

to

Apparently the aim of this latter Committee

show that the dismissals

were

just drunks

or

have

will

be

has

got
to

homosexuals rather

than intentional subversives.
I

Maintained in all

Frederick

L.

PHILADELPHIA

Harson

Harson

has

Co.

&

F.

formed

with

seriously

prosperity, will
public. The fact is,

Harson

PROVIDENCE, R. I.—Frederick
L.

doubt

and

offices

L.

in

that

make

either
for

Committee, in time of peace
than passing interest to the

more

I believe, that for the next two years you
are
going to see a lot of frothing and political excitement in
Washington without anything being fundamentally changed.

the

Hospital Trust Building to engage
in

BANK STOCKS

securities

the

Harson,

who

vestment

Send for comj*arison of 11

largest Philadelphia Banks

business.

has been

business

for many years was

in

Mr.

in¬

in the

Providence

formerly with

Eraser, Phelps & Co.

NOW AVAILABLE..

i The NEWLING CANADIAN LETTER
A

I

fortnishtly revieiv of the Canadian Securities Markets

FREE COPY UPON

Bonner, Gregory Admit

STROUD & COMPANY
Incorporated
PHILADELPHIA
New York

•

Pittsburgh




•

Allentowa

Wm. H.
New

New

9

York
York

nounce
•

Lancaster

•,

Atlantic City

H.

the

NEWLING & CO.

Gregory, 30 Pine St.,

City, members of the
Stock

Exchange,

admission

of

Members of the Toronto Stock

Exchange

an¬

21

William

Gregory, -III to partnership

"of Jam/ 1.—

REQUEST

MUrray Hill 2-4545

Gregory III

Bonner &

.

as

V.

West 44th
Direct

Street, New York 36, N. Y.
Private

Wires

to

Canada

(67)

Number 5392...The Commercial and Financial Chronicle

Volume 131

Company; Kaiser

National Securities

in

& Co.;'WmvE.
Leeds.

The

aopointment
as

Co.; Tne Ohio Company; The
Robinson-Kumpnrey
Company ,-

Philip

of

C.

in

co-manager

the

Series

Securities

of

Rcbcrt

vestment

in

funds

the

metropolitan

rf,New

was

area

•

..

York

nounced

J.

an¬

by H.

Simonson,

President

Jr.,

National

f

o

Securities

\

&c

Research Cor¬

poration,
120
Broadway,
New

York

City,

man¬

and
of

agers
Philip

C.

sponsors

JiUi.il

formerly

the

was

of

firm

law

associated with
Satterlee, War-

five years.
He attended Williams College and
Stephens

&

Fordham
his

In

law

his

received

for

from

degree

University.
capacity, Mr. Smith
with Waiter

new

associated

becomes

J. J. Smith

(no relation).

Cruttenden.

I

many

"bluue chips"

counted the future

believe

after

Reid & Co.-; H/

1955* will

that

business

better

Company; Burns, Co' bett & Pick-

Inc.; Fulton,

highs.

some

business)

prove

than

year

1954,

n

oney

and other

will
new

Irving Lunr borg & Co.;Shuman,
Agnew
&
Co.; Field,

highs, but will

even-

keel.

spend most of

and

-

Richards

1955

should furnish

berg;

Blunt

Co.;

Ellis

&

National

Northwestern

Davis, Skaggs & Co.; A. G. Ed¬
&

past

pany;

Sons;

Sullivan

Waeckerle

&

Anderson

technological
the

an

*

fuel for

a

American

j

than

faster

the

the

national

gross

increase

product

clude

than

slightly

and individual

profits,

debt

is

expanding faster than liquid
holeings. Most of this debt is of
tie short-term variety and,

1954,
and

sharp

no

.

Placed

the Market

cn

underwriting

An

group

man¬

aged by Bank of America N.T. &
S.A.

awarded

were

issue of $60

Jan.

on

5

an

million State of Cali¬

We

fornia

5%, 2% and 14% Veter¬
ans' Bonds, Act of 1954, series F,

maturing Feb. 1, 1957 to 1976, in¬
clusive, on a bid of 100.2191.
On
reoffering, the bonds were priced
to yield from .75% to 2.20% for
the

1957

1975

to

1976 maturities

The

maturities.
not

are

being

offered.
bonds

The

be

Other

the

to

State

purchase

members

on

an

basis.
the

of

offering

The Chase National

New York;

Bank; Blyth & Co., Inc.; The First
Boston

Harriman

Corporation;

Trust and
Savings Bank; R. H. Moulton &
Company; American Trust Com¬
Ripley

Co.;

&

Harris

San Francisco; Glore, ForT

pany,

Co.; C. J. Devine & Co.;
Goldman, Sachs. & Co.; Union Se¬
curities
Corporation;
Merrill
Lynch, Pierce, Fenner & Beane;
Weeden & Co. Incorporated; The
First National Bank of Portland",
&

gan

Oregon;
Bank.

,

\

;

.

-

7

.

Security-First National Bank of
Los Angeles; Equitable Securities
Corporation; Dean Witter & Co.;
California
Bank, ;Los
Angeles;
William R. Staats & Co.;

Reynolds
Co.;" J. Barth & Co.; Bache &

&

Co.; Wertheim & Co.; A. C. Allyn
and
Van

Company - Incorporated;
Ingen

Burr

&

&

B. J,
Coffin- &

Inc.;

Co.

Incorporated; Heller, Bruce

Co.; Barr Brothers & Co.; Hay-

den.
&

Stone

Co.

&

D.

Lombardo. Inc.: WagensePer &

&

ru-st. Inc.; The

Weil, Roth & Irv¬

Meyer &
Fox; Arthur L. Wright & Co.,
Fc.: Magnus 8* Comoany: Walter,
Woo^y a^d Heimerdinger; C. N.
ing

Frank,

Stern.

Co.:

&

Co:;

G.

A.

Becker

Incorporated; Clark, Dodge

Incorporated:

Andrews

&

Wells,

Georgia: Brown Brothers Har¬

riman
&

Co.;

Wood,

&

Wood, Slrulhers Go.

years,

either
a

been

and

a

walking

recommended.

iiefz Heads
Far W. 0.

of

a

as

to preclude

depression.
cited

and
as

the economy
Then, too, the

presumably

climate

spending
are

to

security prices.

such

constitute

would

direction

political

Struthers

Dietz

with

associated

W.

has

C.

&

Company;

Co.;

A.

M.

Broadway, New York
members of the New York.

Co.,

115

City,
Stock

Exchange,

firm's

the

as

manager

investment

Mr. Dietz was for¬
merly with F. P. Ristine & Cc. .

department.

to

been

1954.

and

narrowed,
has

blue chips appear to

discounted

future

the

&

Ohio —Wm.
Inc:

Co.,

is

1101

to

time

Union

Commerce

Union

partnership.
has

medieu

First

National

Gregory

Equipment Trust, Series PP

with

municipal bond

the

of

ager

L'Hom-

Mr.

associated

been

partment.

'

,

de¬

•

2%% Equipment Trust

W; '

•

,

To be dated

C. R.

December 1, 1954.

Yoingdahl With

Aubrey G. Lanston Co.

C.

elected

been

of

vice-president

Youngdahl

Mr.

director

assistant
of

a

firm.

the

Research
of

Board

eral

Bank

of

formerly

was

of

the Division-

Statistics

and

Governors

of

of

the

the

maturities and yields
1955

1.50%

1960

2.60%

1965

2.85%

1956

1.85

1961

2.63

1966

2.875

2.05

1962

2.70

1967

2.90

1958

2.25

1963

2.75

1968

2.90

1959

2.45

1964

2.80

1969

2.90

Fed¬
These certificates are

Reserve System.

received

by

us,

offered subject to prior sale,

as and if issued and
Commerce Commission.

when,

subject to approval of the Interstate

R, S. Dickson Places
Salomon Bros. & Hutzler

Bowman Debentures
An

7ssue

of

$500,000

fund debentures due
of

A.

Smith

with

sinking

Nov. 1,

Bowman

and

1C-39

Drexel & Co.

a

group

of

This

financing

was

Union Securities Corporation

Sons

Stroud & Company

institu¬

negotiated

through R. S. Dickson & Co. In¬

porated; Branch Banking & Trust corporated.




Philadelphia Plan with

1957

Municipal
that

December 1 from 1955 to 1969.

25% rash equity

corporated, 15 Broad Street, New
York City, specialists in United
States
Government,
State
and
Obligations, announce
Richard Youngdahl has

Certificates

To mature $594,000 each

Issued under the

v

In¬

& Co.

Lanston

G.

Aubrey

.

Incorporated

January 6. 1955.

& Son Incor¬

Company

for many years as man¬

the firm

tional investors.

Company, Newark.

Build¬

ing.

18,910,000

Southern Pacific

¬

its

have

some

7

celebrat

25th anniversary and ar-»
nounces the removal of its officer
ing

investment confi¬
reached a high level.

and

dence

against

Mericka

c.ividend payments has

Many

insurance

CLEVELAND,

The spread between interest

rates

is

Cn Hew Location

while busi¬
declining during

heights,

new

has

ness

medieu has been admitted to gen¬
eral

o;

advisory

The market has enjoyed a large
rise

safeguards

built-in

York City, members
of the New York Stock Exchange,
announce
that Henry K. L'Hom-

vately

Fidelity

becomo

Langiey £<-,

tive economy.

the possibility
Compensatory

Incorporated has been placed pri¬

Corporation;

The

Langiey Co,

F.

Kenneth

Street, New

tic

Memphis;

narrow

Dept.

war

severe' threat

ard

a

and peace for
step off that path in

between

Pine

Wood, Struthers & Co., 20

¬

Lumber,
Bronze, and Snyder Tool
and Engineering.
The list is no';
all-inclusive, but rather indicates
the type of investment approach
Mill and

i

Kidder & Co.; New York Hansea-

Trust

exceptional growth, in

Chicago

NEW ISSUE

Idntils L'Komntedieu

Co.; Shearson, Hammill

E. F. Hutton &

Spe¬

1

Ira

Inc.; Bacon, Whipple & Co.; F. S.
Smithers & Co.; Trust Com par#
of

Gas,

White & Co.

Haunt & Co.; G. H.
Walker & Co.; Roosevelt & Cross
Co.;

have

path

National

Seattle-First

*

'7

Fred

Company;

The National City Bank

group are:
of

Blake &
Co.; Doll & Isphording, Inc.; Seasongood & Maver; Stubbs, Smith
&

Beech-Nu;
Coca-

Telephone,

the cost of which must

repaid

amortized

for

assisting California
to
acquire farms

Veterans

and homes,

authorized

are

the purpose of
War

re-

-

Wheat & Co.; Walter Stokes

J. C

that

General

was

depressed

Ginther, Johnston & Co.;
Foster & Marshall; Wurts, Dulles
&
Co.; Kenower, MacArthur &
Co.;
Eoettcher
and
Company;

year

eq,ual

to

Columbia

writer for

that

and

hope

cial situations which appeal to the

the

in

This

Cola, and R. J. Reynolds B.

that debt expansion is rising

ever,

during

Co.;

not

average

an-

77%.

but

corporate debt is increasing faster

only

Prescott

recorded

It should he remembered, how-1 Packing,

Be¬

12 months, these

recommends • among'
defensive 'type
securities;

still1 the

.

Veterans' Bond Issue

does

record,

•

,

$60,0£O,GCO California

Dur¬

stocks

he

there¬
fore, the possibility
exists that
George C. Astarita
wholesale liquidation at some fu¬
compensating
u p t h ru st
ture date could take effect. Mere-.
is
anticipated.
Mild industrial im-. ly a slowing down in the rate of
Slein
Bros.
&
Boyce; Thornton, provement, rather than a boom,_ debt expansion will bring about
Mohr & Farish; Dwinnell, Harkwould seem to be in Lie cards.
some
degree of business reces-.
ness & Hill Incorporated; Hooker
sion.
Residential
building
has
Despite
the
rather
favorable
& Fay; The Continental Bank and
been proceeding at a pace exceed¬
outlook prevailing at the moment, "
Trust Company, Salt Lake City.
ing the rate of family formation
there exist any
number of im¬
Utah; Brush, Slocumb & Co, Inc.;*
and, therefore, this segment of the
ponderables, whic.i could upsetFerris & Company; J. B. Hanauer
economy carries with it a degree
the applecart.
Reference is made
& Co.: Janney & Co.; The Peop^s
of risk for all business. Labor de¬
to su.h theories as the one having
National
mands will make themselves felt
Bank,
Charlottesville,
to do with'coexistence, meaning
Va.
"in the
atmosphere of optimism
that
we
can
continue to spend
which now pervades the nation.
Rock'and-Atlas National
Bank
huge sums for armaments and yet
Profit margins may> be squeezed
o'' Eoston;
H. V. Sattley & Co., not run the risk of all-out war.
as the
result of a more competi¬
Inc.; Scott. Horner & Mason, Inc.;"

&

Steel

Ward,

maximum gain of

.

in

population
development

U. ,S.

business

Incorporated;

Strudwick;

&

Growth

six

sup¬

on

larger amount of business.

sixteen

cause

economy

purchase of American
Carborundum, Filtrol,

ing the ensuing

_

writer✓ rec¬

Westinghouse Electric.

and

springboard of

Inc.; Lucas,

& Company,

Eisen

.

the
the

months.

Ka^an & Com¬
Inc.; Julien Collins & Com¬
Mullaney, Weils & Com¬
Courts & Co.; Bosworth,

pany,

consoli¬

dating
gains of

Mineapolis.

public works, will

posedly keep the

1954, the

Montgomery
*

annual

conjunction with his

Airlines,

of

Control

rates and plans form huge

make

of

In

securities- markets,, road- -building program, together
needed technical cor-, witn large expenditures for schools

some

to--

potential.

the

L.at

securities,

situations

forecast for

recessions.1

rection,

Simmons;

policy of buying high-

defensive

gether with a sprinkling of special
holciing forth a largo

Notes that

time in advance."

EvWork & Co.; Stone & Young-?

&

grade

to have dis- /

appear

future, but rather leans

ommended

and

ard.

new

equities for any fur¬
market rise within

general
near

toward the

number of imponderables which could upset.

Says

applecart.
.

McCormick & Co.; The Milwaukee

pany;

field

the

Hayden,

(Incorporated);

pany

leading

ther

belter business year than 1954,
securities markets, after some needed

holds

Astarita

there exist any

of

Commerce

of

*

writer,ithere-

~

prove a

technical correction, will make modest

.

& Co.; William Blair & Company;.* a

National Securities for two years.
He

Mr,

Miller & Co.;
Folger, Nolan-W. B. Hibbs & Co.
Inc.; H. M. Byilesby and Co.n-.

wards

prom-sxiaring

Bank

Seattle;

and institu¬
tional department, has been with
the

Predicting 1955 will

Levy & Williams; Talmage & Co.;-"
National

-

D.

Fairman, Har-.
Inc.; The NationalCity Bank of Cleve and; Lawson,ris & Company,

Smith, previously manager

Mr.

of

R.

Co.;

&

;

'

t..e

White & Company;

Bank

funds.

the

Winthrop

Members, New York Stock Exchange

The

indicated.

be

of

Eoettcher and Company, Colorado Springs, Colorado'"' '

chovia Bank and Trust Company;

in-

mutual

a

fore, does not favor the purchase

Inc.; Schaffer, Necker & Co.;-Wa¬

wholesale distribution of National

reasons,

corrective reaction would seem tn

By GEORGE C. ASTARITA

&

Smith

these

For

Stock Maiket Forecast for 1955

Poilock & Co., Inc.; Bartow

Promotes P. G. Smith

advance.

11

-ma

12

The Commercial and Financial Chronicle

(38)

inefficient

A

Round-Up of Credit Conditions
By EDWARD F. GEE*

President, Robert Morris Associates
Vice-President, State-Planters Bank & Trust Co., Richmond, Va.

strength

Says most

a year ago.

The

1954

year

been

as

preva¬

satisfactory one for bor¬
rowing businesses.
The first and
a

second

quarters
in

nesses

op¬

tions—in

ly;

term
rent

tex¬

i

ital

metal

and

financing, more liquid cur¬
balanced

better

lower tax

metal

n

New

positions. The East sees lower

and

general¬

inventories,

liabilities, working

overall

at

all time

an

cap¬

high.

in
the east; in
canning
and

The Middle South finds inventor¬

food

process-

in g

in

manufactur-

slowing evident in
receivables
generally, reflecting
here,
as
in
other
agricultural
areas,
the drag of a three-year
drought.
In Central States, the
Midwest, and Southwest, inven¬

i

tories and debts have shown signs

products

ies

unchanged or up a little, in
textiles and particularly in hos¬

the

middle west;
in other scat¬
tered

n

of

lines

and in

g;

wholesale

with

iery,

Faward

and

F.

Gee

a

of

declining, with both better bal¬
anced,
and
with liquidity im¬
proved generally, offset here again

retail
trade,
particularly in the west and south¬
west.
By the third quarter, there
were spotty signs of improvement.

receivables.

For the fourth

whole,

quarter, not

sin¬

a

nominally

of

tions for

greater

business generally.

Esti¬

mates ranged from

satisfactory, to
highly satisfactory, to excellent, in
every section of the country.
As the year ends, the consensusis that the relative credit strength
of

borrowing customers generally,

in comparison

with that of

a

year

has

improved, or, at least,
has shown no weakening worthy
ago,

of

comment.

Improved
credit
is estimated for finance

strength

companies generally, for utilities,

tion

tax

the

of

and

debts

noncurrent

deep southeast.

and

Only mining

East, textiles in .the-South,
metal
products and

certain

other
west

manufacturers
were

to

strength
year
In

the

Mid¬

notable among borrow¬

ing lines which, it
failed

in

maintain
on

a

par

felt, had

was

their

with

credit

that of

a

Current

use

capital

only
of
or

with

show, the

respect

business, within spotted areas
sections, to maintain or increase

sales volume.

pattern is not
of

steadily
as

ing
and

a

sheets,
what

fiscal-year

changes,

gross

of

in¬

result of tax relief

Most Prevalent

a

tendency

*An address

National

by Mr. Gee

Credit

at the Seventh

Conference

sponsored

American

Bankers
Association,
111., Dec. 16, 1954.

by
Chi¬

these loan

They can be reduced
a
single phrase —

individual in¬

among

dustries within the economy as
whole.
As

against which bank
must

loan

as

a

the

officers,

opinion

are

of

not to be

of unwise credit extensions,

matter

placement of these securities with
was

ricultural
other

the

of

areas

sections.

Of

Small

and

remain

marginal

com¬

panies

everywhere
become
creasingly vulnerable under

increasingly competitive
coal

industry,

in¬
an

economy.

hides

and

these

by

industries

textiles, hosiery,
dealers, retail
television, some

heavy equipment dealers, special¬
ty shops and other small retealers
listed among units and indus¬

are

tries

that

with

loan

months

Loan

the

of

loan

experience,
trends

volume,

in

loan

the

collec¬

losses,

year

and
end¬

now

Outstanding loans and dis¬

counts

these

in

comparison

40

banks

with

a

today,

year

ago,

equally balanced with respect

are

to the number and nature of

all

over¬

changes—half report increased

served

1955, with that view par¬
applicable to the first

single bank of

a

as

ex¬

The East gen¬

erally and the Far West are sec¬
tions prominent in predicting in¬
creased loan outstandings.
Others
feel

that

duction
ent

loans

No

own.

will

bank

of

hold

a

in

consequence

overall

their

anticipates

re¬

pres¬

outstandings.

Within the loan

portfolio, mort¬
loans, direct personal loans,

other

credit

consumer

those

up

creased

elements

in

head

which

outstandings

in¬

antici¬

are

South

down;

banks

Seasonal

up.

loans

to

finance

companies,
down
In

the

Middle-

predominantly
commercial loans,

are

and

and

small

term

loan

loans

are

generally the country over.
section, homb mortgage

of record only. Private

institutional investors

negotiated by the undersigned.

may

No

bank

of

pru¬

recommends

reducing,

a

dis¬

even

creetly,
property
improvement
loans, consumer credit,, or sea¬
sonal

commercial

loans

of

any

general type.
In

other

categories,
notably
sales finance, small loan compa¬
nies, term loans, appliance paper,
and

secured

business

are

scattered

that

some

loans, there

sectional

discreet

be in order to make
way

profitable

more

tive

loan

participations

positive

attrac¬

Only in loan

with

the

Small

failure

to

is

there

mention

a

approach—the

is

what

for other

more

Administration

unanimous

and

or

elements.

Business

feelings

.

reduction may

viewpoint
that
beyond

prevalent

these

will

banks

are

continue to

lending

to

footing

may

small

be

doing

now

do

in

direct

business,

the

financially if not

economically unsound.
Overall, with respect

bank

to

loans

as
a
whole, the opinion is
they may be sought aggres¬
sively or accepted prudently, with
no emphasis on
reduction, so long
as lenders
employ good judgment

that

and

skill

and

remain

ever

con¬

scious of the dangers that
may be

increasingly

pated. Pick-ups are also expected,
less widely as to sections, in sea¬
sonal commercial
loans; in loans

the

in

selective

tive

to

found

finance

and

panies; and, to
term

small

predictions
ings.
Banks

of

fabric of

that

loans.

selective

indus¬

overall

an

economy

sound.

Only in
noteworthy

there

are

com¬

and

tries, under increasingly competi¬
economic conditions, within

lesser extent, in

a

business

loans

loan

companies

reduced

outstand¬

these

This,

then,

painted
a

bankers

is

with

the

to

be

picture-

broad

a

broad

very

feel

brush

on

canvas.

unanimous in feeling
collection ex¬

are

that, overall, loan
perience

in

that

worse

1955

than

should

in

1954.

types,

only

paper,

primarily, and, to

purchased

be

no

By loan
consumer

lesser

a

S. F. Street Club

direct

personal

Elects Zimmerman

bad

debts

Bank

in

199

SAN

are

are anticipated
by
banks, principally in the

scattered

East and Southwest.

from

loans

FRANCISCO, Calif.
Zimmerman
&

Co.,

President

has

the

of

—

been

Street

J.

Dean

of

elected
Club

of

losses

are

ex¬

pected, with almost equal unanim¬
ity, to show no appreciable change
from those this year.

every

loans

direct

indirect
held

Secured'business

up.'

are

loans,

own

credit

either

increased

or

in

instances and sections

many more

than those in

Appreciable
Loan

Loan

will

applies

Only
and

in

direct

other

per¬

consumer

credit, primarily in the East and
Southwest, were there instances
collection
than

worse

effort

every

section

counts

experience

that for the year

these

In

collection

fields,

was

greater
required in

current.

debt

particularly to mis¬

scattered predictions in scat¬

tered

which

feel,

rate, and least emphatically to the
mortgage loan rate.
There are
some

loans

majority

commercial and indi¬
vidual loan rates, less to the
prime

everywhere has been satisfactory,
with no significant overall
change
sonal

the

appreciable change.

no

Collections

collection

1953.

in

cellaneous

experience

from

rates,

show

This

Change

Rates

which the contrary

reported.

was

No

lbans, and

personal

consumer

their

Bad

NEW T.ccf TE

of

the
need not be

be accepted

dently.
policy

here

poorer.

volume, it follows, is

secured

tion

ing?

screen

in

care

ahead.

What

in

must

men

exceptional

as

exactly half
have a slightly
outlook as they

pected to increase.

and

and

mentioned

this group classes business operat¬

gage

automobile

to

months. Not

livestock,
appliances

and

banks,

operating

ticularly

public
transportation,
farm equipment, farming,
poultry,
some

40

believed

better

leather,

some

New

South

114

lines of business

or

ing prospects

officers

particularly

now

alert.

The

a

result, there are unit weak¬
and
industry weaknesses

a

nesses

before.

appears

of

areas

England, the East, the Central
States, and Far West, and is only
slightly less optimistic in the ag¬

six

was

announcement

opinion predominates

industrial

industry and

in

This

This

the

entered

Loan

found in business receivables, be¬
cause

1954.

in

strong and increasing competition
among individual units within an

Loan

The most prevalent credit weak¬

in

good year,
year equal to if not better than

were

to

that,

a

costs down.

Credit

Weaknesses

today,

be

is

to

loans

runs,

dominantly

result

a

pay out in dividends a greater
proportion of the profits shown.

nesses

opinion

overall, 1955 will
a

business

majority feeling

declining

to

or

weight of

major borrowers in sections

succinctly

fu¬

Witter

To this must be added

in¬

or

trends,

that

Loans

sought but

The

William

devices; of
pre-tax earnings; and of
or
improved
final
net
as

of

ture?

lection troubles

cost-savings

earnings

What

panies, secured

categories in which increased col¬

through improved systems

steady

future.

retailers.

various types, and term loans,

New York and Chicago, the East¬
ern
and Central States are pre¬

the whole, the

to control heavy or increas¬
overhead and operating ex¬

smaller

future.

of reduced sales

competition; of the strug¬
gle, with varying degrees of suc¬

penses

gross

the

and

extent,

creased

cess,

the

of

must be collected

now

salers

sales finance and small loan com¬

loans; half report decreased loans.

On
one

unit

a

experience

profit margins in the fight to keep
sales up; high or increasing over¬
head expenses in the fight to
keep

of

remarkably uni¬
Variations exist
to the ability

country over, a
form
pattern.

viewing current business bal¬

terim,

the

lower

statements,

interim,

or

primarily those of

are

rate

operating

fiscal-year

whole. Weaknesses of moment

a

in

in fixed

ago.

ance

cago,

a

toward

of

sources

but

in the

as

funds and financing.

profit margins

the

slower

through

increased

and

per

wholesalers, and manufacturers in
widely scattered areas, and for the
citrus fruit and cigar industries of

to

states,

trend

liquidity

for

electronics, for paper and pa¬
products, for the construction
industry, for selective retailers,

trend

a

Western

have been conscious, too,
the improved inventory situa¬

in any section reported
unsatisfactory
operating
condi¬

gle bank

by

over-expansion

operating nature—declining
the

England mentions reduced inven¬
tories,
more
comfortable
debt
structures through shifts to longer

weak¬

some

as

today

caught

of these 40 loan men?

eyes

condi¬

erating
tiles

saw

gross

have

developments

has

whole

a

of

tunities, excessive dividends or
withdrawals, or in an unfavorable
operating outlook for the economy

profit
margins accompanying the fight to keep sales up. Finds loan
collection experience has been satisfactory during 1954, and
foresees no appreciable change in loan rates.
the declining

m

able

Loans made

inventories, because of ex¬
quantities, improper bal¬
ance, obsolescence, or price losses;
not in business
capitalization, be¬
assets, inadequate working capi¬
tal, or topheavy debts; not in in¬
adequate or declining sales oppor¬

ends, the consensus is that the relative
of baak-borrowing customers generally has

improved compared v,ilh that of
lent credit weakness today lies

ness

cessive

cause

Mr. Gee holds, as year
credit

collection
procedures, the past only to the extent that it
general conditions; not in busi-. may serve as a guide to the prob¬

or

Thursday, January 6, 1955

...

to

keep

loan

ac¬

losses

that

areas

other

rates

What

of

banks to

will

prime

ability

of

these

comfortably for

any

loan increases that
may material¬
ize? Of these 40
banks, there are a

few

in

the

East,

the

South,

the

Central

States,
and
Far
West
mentioning increased
which
say
they
could
comfortably increase average loan
outstandings by 25% or more. The
(with

J.

W.

Zimmerman

and

downward.

San

Francisco.

elected

the

care

the

move

some

capital)

for

Other

officers

the

coming year are
Walter J. Vicino of Blyth & Co.,
Vice-President; John MacKenzie
of

North

American

Investment

Co.,

Secretary; and Allen Mitchum
of
Mitchum,
Jones
&
Templeton, Treasurer. New mem¬
bers

of the

addition

Board

to

the

Robert

are:

of

Directors in

elected

P.

Mann

officers
of

Davis

Skaggs & Co., Frank B. Nombalais

A. Smith Bowman and Sons
Incorporated

greater number,

other

£500,000

by banks for
the year will be relatively nom¬
inal the country over. Only
in
the
Philadelphia
area,
and
in

in
the
Middle-South a group of young men in the in¬
other areas, would prefer¬ vestment business, shortly after
ably limit the increase to 10%. World War II.
Present
active
The remaining
quarter, notably in membership is maintained at 75.

scattered

instances

the

in

Midwest,

Southwest, and Moun¬
States, are they expected to
exceed slightly the nominal losses

tain

that

most

banks

experienced

in

1953.

Sinking Fund Debentures

in most sections,
particularly in the Central States,

of

mention expansion preferences of
from 10 to 25%.
About a

Co.

the Southwest among other
areas,
feel
they are now

due November 1, 1969

The year brought some slight
softening in loan rates for the first

loan

years.

With

the

prime rate adjustment last March

proved
graded

im¬

need

or

With this

loan

par¬

bank

reports any
reduce

to

pres¬

present

outstandings.

eral

setion of the country,
ticularly where credits had

R. S. Dickson & Company

No

sure

from 3*4 to 3%, other commercial
loan
rates
eased
nominally
in
every

loan

volume

and

men

ahead?

background, what gen¬
policy, with respect to
loan

types, do

January 5, 1955




INCORPORATED

The Street Club

descending

loans

mained
some

the

to

re¬

relatively stable although

reductions

Eastern and

Loan

individuals

men

are

were

reported in

Central States.
concerned

with

was

and

H.
&

formed by

Regular business luncheon
ings

other

consumer

credit.

emphasis,

With

they

tion seasonal commercial

manufacturers,
home
sonal

mortgage

appliance

loans,

meet¬

held throughout the year.

are

Objective
to

of

the

organization

is

promote the social and educa¬

tional
men

welfare

of the

of

the

investment

Bay Area.

Joins A. G. Edwards Staff

aggressively
property
improve¬
ment loans, automobile
loans, and

other

.

Jamieson

these

recommend for the year
Half or more say seek

could reasonably be up¬
within the group above
the prime. Rates on mortgage and
or

Co.,

notably

time

20

&
of

Jamieson

among

comfortably

over

Louis

quarter,

full.

in

Schwabacher

men¬

ioans

to

paper,

and

sea¬

commercial loans to whole¬

(Special

ST.

to

The

LOUIS,

Financial

Chronicle)

Mo.—Raymond

J.

Kalinowski has joined the staff of
A.

G. Edwards &
Sons, 409 North

Eighth

Street,

members

of

the

New York and Midwest
Stock Ex¬

changes.

Volume 181

Number 5392

,:The Commercial and Financial Chronicle

.

Social Security Legislation —1954

Social Welfare and the Trend

This trend
the

Toward Government Paternalism
'

By EUGENE M. THORE*

;

(69)

the

of

throughout
greater
for

the

welfare

citizens,
to

the

It

the

The

on

the

of

trend

ciety
the

doctrine

that

that

government
Eugene M. Thore

have been ad¬

equately analyzed by students of
political science and economics.
the

be

that

consensus

historical precedents and the eco¬
law

the

condemn

individual

shifting

responsibility

to

government. Despite warnings of
economic

disaster, care of the
through involuntary

governed

government systems which under¬
take

to

supply certain individual
seems
to be generally ac¬

needs

cepted,

politically

proper

function

Differences

least,

at

as

spect to the degree of government

is

argued

extensive

systems

depends

are

of

counterpart

which

economy

that

welfare

essential

an

an

con¬

on

spending to maintain high
productivity and full employment.
the

other

able

better

an

individuals

most

economy

it is con¬
expanding

hand,

under

that

tended

achieve

to

are

their

own

security without government help
and

government

consequently
limit

should

its

activities

to

as¬

sisting only those actually in need.
Between these extremes is

that

view
sure

which

incentive

curity
this

of

to

protection

will

not

to

all

at

destroy the

additional

build

to

as¬

need,

of

regardless

citizens,
levels

third

a

government should

floor

a

minimum loss of freedom. We

are

struggle between the

a

advocates

of

these

competing

philosophies.

In

the

toward

in

Welfare

United

States

the

trend

legislation
continues. Opposition to this trend
to

neither

tively
which
not

fare

be

declining.

individual

of

area

In

the

security,

major political party
the direction

ac¬

in

opposes
we

seem

going.

are

to think

means

we

that

are

People
more

do

wel¬

They
believe
enterprise, but when it
security

in

comes

attitude?

important

to

to

seem

a

This

question

busines

such

gap

system is one of its prod¬

Lately,

however,

the

doc¬

minds of

million

more

made

were

on

persons

eligible

At

basis.

this

a

Social

that

should

an

9 out

eligible for

has been
Security

It

coverage.

on

time

of 10 civilian jobs are

view

our

coverage

universal. The changes

be

this year represented a large step
in

The

liberalization

A
of

method

lowest

in

computing

law

new

not far

of

line with

out of

theory.

protection




the floor

We

con¬

the

that

the

at

$3,090 in 1926 end
increase in

subsequent

than supported an in¬

wages more

in the base to $4,200.

crease

On

other

the

hand,

we

con¬

should
not exceed the average wage in
the country which is in the neigh¬
borhood of $3,600 per year.
Ty¬
ing the wage base to the average
wage would
provide a criterion
for fixing the base in the future,
and would avoid providing bene¬
that the wage base

tended

fits for earnings above average
violation

tion

the

of

substantial

had

in

protec¬

this

While

principle.

tion

of

floor

posi¬
in

support

Ways and Means Committee,

the

chiefly by Republicans, it did not

tion adopted by.

a
change by adopting a more
liberal view of what constitutes a

prevail. The action taken by Con¬
gress was motivated, I believe, by
the feeling that the base had not
kept up with wage increases. The
change was viewed by many as
a
compromise.
Labor had long
insisted that the wage base should

floor

be

Congress in 1952
was adequate, in the absence of an
increase in living costs, benefits
should not be raised again in 1954.
But it is possible to rationalize
such

of

The

protective benefits.
Congress could

action

of

mean

that

provides

the

years

periods of unemployment and tem¬
porary illness and seems to be a
and equitable change in the

cisely defined,
some

there is bound to
latitude in fixing benefit
Undoubtedly,

Change

the

in

Congress

there was
a base as
high as $4,800. A base as high as
$6,000 would, of course, convert
social security to a national pen¬
$6,000

base

in¬

and

support for

sion system.
The adoption of
in

the $4,200 base,

opinion, veers away from
the traditional concept that social
our

should provide
of protection

security
basic

wage

year

a

substantial

the

floor

base

new

only a
because

private business is feeling the
of extended government
activity. Our dedication to prog¬

impact

which has been the moving
in
developing
our
com¬

ress,

force

and

merce

industry now
political policy.

fluencing
There

another

is

planation

this

of

is

trend

quarters it is looked

ex¬

upon

as

an

favor. Recent de¬

curry

earn

before

more

fundamental

consid¬

the

exceeds

aver¬

the

in

wage

age

to $1,200

up

year

a

is made in
The

reduction

any

their social security benefits.

change removed one of the argu¬

complete elimination of

ments for

the

clause.

work

It

The
Act

sions

changes
the

by

adopted

offer to sell

nor a

s'ol'e>tqtmn officers fo buy any of these securities.

mude only oy the Prospectus.

in

the

NEW

January 6. 1955

I SPUE

with conclu¬

conflict

in

an

The offering is

Vve

test.

principle!

following

were

This advertisement is neither

represented

improvement in the

supported it in

toward
some

to

sons

an

possible

government paternalism. In
to

in¬

volved

fair

life

insur¬

some

associations after a
careful study and re-appraisal of
the Social Security system.

Unquestionably, there is

The change in the tax and
benefit formula base from $3,600

velopments

doubt
whether the trend actually results
from the demands of the people.
nized

which

systems

will

security

happened

Nothing

far,

so

citi¬

protect

destitution.

from

recog¬

a

social

for

need

zens

has

raise

however,

ance

company

403,082 Shares

(1)

to

$4,200

was

opposed for the fol¬

lowing reasons:
(a)

of

Marine Midland

the basic
protection principle
from

departed

It

which demonstrates that the

floor

American

which

had

cepted

Corporation

eh
4% Cumulative Preferred Stoe

from the inception of
Under this principle,

people

actively

are

urging government to assume in¬

responsibility
for
the
the average citizen.
is the moving force

creasing

not

behind the recent increases in

so¬

cial security benefits? Are benefit
recommended

increases

tion

by

years

political

those

approval,

elec¬

in

who
are

they

.

should

It

be

clear

crystal

that

compulsory
legislation
interferes

fare

individual

freedom.

other.

Those

assistance
to

who

the

if

on

advocate

supplying

to

needless

individual

attention

divert

basis,

from

try

this

as¬

pect of the problem by emphasiz¬

freedom from insecurity as
goal. But this is a miscon¬
ception of freedom. Government
cannot
provide freedom—it can
ing

the

power

When

regulate.
these

powers

freedom.

defined

as

action

tax

we

to

uses

has

been

provide security

compulsory

we

and

it necessarily limits
Freedom

government

necessarily

molest

all

submit to the compul¬

is

who

must

sion.

Unfortunately, the interven¬

tionist
dom

in

is

willing to

exchange

promises of

more

barter

for

free¬

legislative

security.-

the

in favor
wage

average

the

unessential to

was

sound

financing

of

offered the
the

that the
level of benefits under existing
law
were
adequate and consist¬

posed

because

principle.

the

There

living

on

purchase"any unsubscribed

new

preserve

subscription period, may
Prospectus,

lem

of

we

provision designed to

forth in the

Prospectus may be
including the

Copies of the
which such

securities

and

obtained from any of the
nil

lersigu.' t. only in S! it'S

underwriters are qualified to act as

in

which the Prospectus may legally be

Je.lrs in
tltStr.cuUd.

persons

was

opposed

thought that the prob¬

disabled

care

of in

persons

could be

more

practical

a

without the necess ty
setting up state and Federal

way,

adjudicate

chinery

to

claims.

Once

such

for
ma¬

disability

system is
established, as it will be under
the new law, there will be pres¬

The Tirst Boston

Corporaton

l'n:on Securities Corporation

a

for the adoption of a pro

of cash

agreed, subject to certain conditions,

the benefit expectancies

disabled

taken

will expire at
January 24, 1955.

shares and, both daring and following
ofter shares ol Preferred Stock as set

several underwriters.

because

•

January 5, 1955. Subscription Warrants

P.M., Eastern Standard Time, on

in

of

;

increase

1952.

(3) A

,

had

been
since
last adjustment in benefits in
of

cost

no

-

right to subscribe at $50 per share for the above shares at
one share for each eighteen shares of Common Stock held

The several Underwriters have

the

sf /

Company's outstanding Common Stock are being

the basic floor of protec¬

ent with
tion

felt

we

of

of record

to

(2) Increases in retirement and
survivorship benefits were op¬

rate

3:30

the

Any

non-molestation among

people. When

through

to

government

against

system.

welfare system must

compulsory

through January 15, 1965

•

benefits.

above

(c) The change

their

only help preserve freedom.

Convertible

Holders of the

earnen

Over-expan¬

that

on

the

of

sion of welfare systems should be
condemned

(Par Value $50 Per Share)

the act should

wage earner

average

to

wel¬
with

ac¬

more

discriminated

(b) It

adopted to satisfy public demand?

everyone

provide

floor of social

seek

or

widely

than a floor
of compulsory security. Work¬
ers
ape expected voluntarily
to build their security on the

then

What

under

benefits

of

security

been

the Act.

sure

address

I believe,

Congressional support of
the Social Security program.
Congress felt that the raising of
Social Security benefit levels was

after further
consideration,
they thought the levels established
in 1952 did not represent a fair
benefits. application of the floor principle.
that the Since this principle cannot be pre¬

direction.

that

(2)

that

as

by Mr. Thore before the
Annual Meeting of the American Asso¬
ciation of University Teachers of Insur¬
ance^. Detroit,
Mich., Dec. 28, 1954.
;*An

This illustrates,

general

raise

to

country.
It
should be
noted, however, that
erations. The wage base which af¬
some has also
become a political
benefit formula.
fects
both revenue
and
benefit wage statistics, such as the aver¬
philosophy. Its application in the
(3) Improvements in the retire¬ levels has never been tied to any age wage in certain industries,
political field is responsible in a ment test. There were
inequities fixed
principle.
However,
the support a base higher than $3,600.
measure
for the1 steady
growth in the old retirement
test, par¬ level of the wage base affects Consequently, had Congress ac¬
and
expansion
of
our
Federal
average
wage
ap¬
ticularly in the case of wage earn¬ benefits
and
consequently
the cepted the
Government.
This expansion has
ers.
The new law permits both
floor of protection principle must proach, it might have justified its
now
reached
such
proportions
Continued, on page 30
employed or self-employed per¬ be taken into account. In reach¬

our

many

Willing to amend in varying de¬
grees
the traditional concept of
individual responsibility. What is
the explanation of this trend in
public

the

and what

so¬

free

unani¬
and the

took this broad view.

utilize

becoming

cialistic.

individual

almost

puting benefits. This takes care of

closing

government

General

social

more

appears

Senate.

by

the House

levels.

none

Social

sons

se¬

through voluntary action,
be accomplished
with a

witnessing

base, but all three changes

be

sumer

On

it is con¬

economy,

in

conclusion

its

established

was

vote

the Ways and Means Committee in
the case of the increase
in the

years) will be eliminated in com¬

effort

intervention.
It

busi¬

There

opposition

be¬

a

of government.
mainly with re¬

arise

compulsory

were

our

extension of coverage

The

6.3

in

vital force in de¬

a

trine of progress in the

intervention

of

means

achieved. Tnis doc¬

are

our

the

is

substantial

ought to

ucts.

nomic

related

improvements

tween what is

of

to

1954

vigorously

was

of earnings or no
earnings (not to exceed five such

These

seems

the

in

dis¬

ing

base, Congress was influenced by
the fact that the wage base was

tended that if the floor of protec¬

(1)

as
a
people are
improvement — the

with

surance

It

is

provision

presented to Congress.
a

the

new

and the

benefit formula

ability

of

liberalization

base,

wage

be. Our unparalleled voluntary in¬

as

aspects

not

ness:

progress—the

novelty

society

cerned

United

States.

of

which

veloping

so¬

such

Security Act in

generally supported by

we

trine has been

have in

we

welfare

future

free

a

has

changes

following

Social

suggested that this

social

through
our

this

been

in

idea

influence

of

has

belief

nor

legislation

trend

elective

dedicated to

evaluate

the

sys¬

-

.

adopted

that

illustrate

to

changed under the new Adminis¬
tration of our government.

voluntary basis.

a

"

under

security

Opposition to the change in the

votes of

on

dividuals

to

their

However,

compulsory basis. 3.8 million per*

trend

secu¬

of

rity

here.

insurance, which is concerned
with
providing security for in¬
on

tem.

mous

in

life

assume

re-

sponsibility

not

matter of right

were

to

nations

is

to review this

course,

detail

in

legisla¬

It

a

wage

,

compelled
the world to

shows

as

government-run

a

social security

serve

once

have

record

enacted.

was

few comments

a

started, will get out of hand, and,
though voluntary insurance is caught between the forces of
idealism and realism,, it will survive.

which

vided

legislation adopted in 1954 should

health insurance and Federal regulation of insurance in
general. Concludes, there is the usual risk that a Government

in

was

little opposition to

was

that

record

Says trend toward liberality in field of
social benefits is amply demonstrated in the Social
Security
legislation in 1954. Reviews programs for government aid to

is not my purpose to
explore
detail
the
underlying forces

legislative

possible of

voluntary insurance.

It

benefits

most of the social welfare

Mr. Thore discusses the various
phases of social welfare legis¬
lation, which he describes as trends toward government pater¬
nalism to the detriment of
private enterprise in the field of

.

social

during the
last session of Congress. A review

tion

insurance program,

liberality in

demonstrated

that there

General Counsel, Life Insurance Association of America

.f

of

field

amply

toward

13

disability benefits.

ram

It has

long been our view that cash dis¬

ability benefits should not be pro¬

Schoellkopf, Hutton & Pomeroy, Inc.

Grancery, MaracLe & Co.

24

The Commercial and Financial Chronicle...

(70)

that challenge is at once posi-

to

iNew and

tlve and dynamic.

Challenging Transport

longer has

that

such

been

understood

who

phrase

a

the

St.

transsense

have? absolutely

would

The

Law¬

/I tion

rence, nor yet
in the sense

envisaged
the

:

by

■

i

the

me

of

less

to

exis¬

today

than it

in

was

William

A.

Mather

the days when
,

the

..

.

foundations of Canada's
system

way

lantic to

laid

were

rail-

from

At-

British

North

opening

up

Prairie

America

"heartland"

our

prosperity

the

that

of

age

was-

which

upon

and

progress

the

so

however, to

achievements

the

may look: witn

railroad

of

foi

the

uture.
am

No

one

are

in

railroads and

and

indeed

face

a

the

hallenge,

5 ?

I

suggest,

...

rst, there

...

the

is

is
,

challenge of
which

progress

the

railways are playing, and art
destined to nlav. in the onenim/
play, in the opening
of northern

areas.

Third, there is the challenge of
competition.

well

briefly

conscious
each

to

upon
rvs
As

of

the

vite

a

the

which

no

fail

to

one

A

i.

of

to

As

serve

a

'duty

of

recognize

of
Pa-

to in-

matters

of

as

para-

...

,

;n? and

.

,

people

lu

cherish

S °-{

of faith, the prosperity and
security of the nation. Prosperity,

y.y

progress

and

i.ot

upon our economic hen-

only

i

e ?

make

security all

also upon the*

f

?iD

4

1

depend

.^ontn^utlon we

Transportation, I venture
a

part cf

to

as-

significant and growing

Canada's

economic

heri-

a^e>
h

"One of the best tests of whether
people can see, in the economic

dense,

beyond

known

its

i

da, Dec.

nose,"

says

the

jou^ah'VheEconomis't"

;:«Xan'

.

13,

1954.

far cry from the steam
some

of

runs

159

miles.

is

locomo-

ago, limited

years

about

to horizons
the

in

to

In flex--

dreamt of

never

earlier

science

of

rail-

In

country.

in

thought

the

in

the

are

as

realm

of

trans-

,poi*^tiorV.
'Si !S?ri ng paradox, however that while recognizing the
blessiilgs oi competition-blessings'
.

British

Alberta, in Ontario
the railroad, build-

'irppt;
^

^ 5'

'

,

only belatedly tne fact tnat

"

petition

,

,

,

Only the most ardent pessirmst
that

assume

factor

of

has

jn

resource-de-

truth

that

is

b

come

those

com-

dominant

a

of

segments

the

economy

where heretofore its im-

pact

Canada has reached

in

/The

peak.

discovery

slight

the

was

jess
0f

spectacular

are

the host

technological achievements
matters,

Sucn

to

mention

in

but

a

fevv^ as control of train movement
by
automatic
signal
indication,
0f radio in yard and train

use

evidence

transport is

no

than

that

in

O. D.

that

rail

petition

as

less essential today

looming

on

period

history described
Skelton

in

Canada's

by the late

is

at

once

one

cars,

mechanization

of

maintenance, and the contribution to-railroading of innovations in the mechanical, electrical and electronic fields. ' In

arcj

treight

service,

industry of Canada
to

take second

the

railroad

may fairly be
place to none.

Such

developments

afford

am-

ture railway equipment lack nothing in their determination to bring
the
benefits
of
progressive' and

depend.

progress

I

said

a

r

,,

moment

ago,
.

C

a n a

d a's

Ieaves J11' warehouse untih it
llas ?2en dellvered- Yet ™Proveeconomy of rail freight service,
reflects constant and untiring ap-

plication of engineering skill and
technological research to servicing
better the shipper's needs.
It refiects, also, the confidence of rail
backed

by

private

of hundreds

of millions of dollars in new
equipment, that the application of
such skill and research will result

in

more

efficient, economical

transportation

In
new

the

for

all

Canadians.

technological

horizons

in

tion

export trace

of

its

national

upon

in

part
cost

field,

the

railroading

are

™''e d"e !°the ingenuity

response

those

industries

tonight that the

of the railroad

mar-

of

in

transportation

afford

to

to

meet

new

well

as

as

transportation needs.
,

lsib

ar.d

e

industry

Nest pass rates, as

"have

Chief

finding t.at Crow's
they
in

contributed

known,

are

great

meas¬

the economic-stability" of

ure,

to

the

nation

by moving Lie wheat
of Canada to world markets

crop
at

competitive prices and will,
doubt, in the future, continue

do

to

V.

so."

It

no

their

is

segments
which

effects

of

Lie

Chief

other

upon

with

economy

Justice

Sloan,

and
matter, every other
thoughtful Canadian, needs to be
that

for

In the words of the award,

effects,

direct and

become

*

now

"The

those

im ir^ct,

have

critical."

railways,"

and

—

I

quote

the arbitrator

s

in

being pricea out of

of

danger

t

words —"are

own

most lucrative f

e

.r.ns

of

freight

traffic. The high-rated commodity
groups,

selling

market

and

in

competitive

a

contributing so
large a share to Railway over¬
head (a cost to them'which affects
the' end price of 'their products)
now

seeking other forms cf com¬
petitive
transportation
and
are

are

finding the trucking industry, free
from
any
trammeling controls,
willing and able to supply it."

Again quoting from the award:

of

response

as

railways

challenge of opening

is

thus

nahonal

-

access

as

well

up

the

an

ex-

that the

?ow

tification

for

reeulation.
rails

in

le

defense needs

d

0f

fvt

certain
jus_

are

forms

of

to

meetsthe

restrictive

ehal.

s; ould

b3

regulation,

particu]ar to t°at typ3
regulation designed

in

restri-'tive

,

Such

regulation of t' e railway
^industry manifests itself most

.4

.

Challenge of Competition

The greatest challenge in trans-i markedly

in

the

pricing of railtoday lies in' way services.
Since
the
major
the fact that competiticn has come
regulatory unction of competition
of age. No longer can it be said, also manifests itself in the
pricing

as

in

the

of the

Canada

days before the

advent

of

pipeline, that the railways

services,

the

not

infrequent
conflict between regu^t'on ui 'er

highway truck, the aircraft

and the

;

law

and

regulation

under

com-

enjoy

a monopoly in
transporta- rpctition poses p .ob-ems of the utToday the task of moving - most gravity for tve railways,
people and goods from place to >
Where does t is conflict cf regplace within Canada is a highly ulatory
forces
manifest
itself?
competitive enterprise. It is fair. How c oes it a"fact the railwivs?

tion.

assume

that

these

as-

our

several

country

forms

of

.

Chief

Justice

Columbia,

in

Sloan

his

transportation will grow too, with
competition playing an ever-increasing role as a governing fac-

ment of Canada

tor in

of

capacity

Eritish
as

ar-

his award:

transportation development,

There

is

fort

finally:

in

the

by t.

form

otherwise)
of

nothing

(contributed in large

sums

measure

investments

the

in

is

such-like,
meet

ana

to

com¬

fields.

many

struggle

unequal

an

and

modernization

and

overhead

petition in
"It

people of Canada

e

of

equipment

reduce

Railways

by

are,

mysterious

bitrator appointed by the Governarbitration

powerful

with

in

reason

in

the recent rail

pioceedings,

states in

"A major factor contributing to

hand

oue

antagonists

tied

bemud

his

backr
How
to

equality of opportunity
be accorde.. to rail¬
without doing-violence to
can

compete

the

principle

portation
vital

so

tion

low

trans¬

co3t

co.nmodites

expert

national prosperity
grain products?

to

Allow

of

for

grain and

suggesting that t'"e

competitioni

f

re£er

trans-

In

order
f

f

certain

e

.

in

sen¬

truck

railways," says Chief Jus¬
"are making every ef¬
by the expenditure of large

ways

have

railways

finds

primarily to meet monopoly conremembered, confers its blessings ditions in transportation which no
indirectly as well as directly.
-longer prevail.

portation

from

tice Sloan,

which

f

of

obligation^ which"

public

re-

in

industry

itself to-,ay
; am not unmindful

the,

portation in particular—it must be

The

free

not

goods

are

"The

which the

situation

"Uway

to the needs of industry?

rail

th

-s

to

mate

Transportation—and

,

bulk

gravel

oi

abie

the north-

income.

to

rated

and

competition."

capital

fronted with coiditions already so
changeci a3
barely recogniz-

,u

by rail to strategic

essential
as

and

And

period

,

the

is

to

people in terms of

pandtng

is

Pr2Srcss have wrought,

der, stop to think of the contribuwhich

transportation

sitive

lower

sand

as

.

.

sitive

the

in

exists.

"Even

such

transtition and of the shackling effect of a na¬
adaptation, doubtless necessary tional policy, in much the same
existing and desirable, is none the less one position as a man facing formi¬
°f £fave cTficuRy for t ose con- dable and

...

^

p

longer

no

Thoughtful students ol human
affairs have more tnan once reo^rked^on tne ponderous majesty
Law, Slow to c ange, it
nevertheless sooner or later m-:.ey-taWy reflects the cnangea con^^ions which time and human

in-

remain

Monopoly
dead.

different to those prob'ems which
affect the railroads in their ability

grows,

the challenge con¬
unwavering.
It is in

of

com-

price- measured

a

terms

cannot

stant

initiative

their

for

petitive advantage in world
kets

ex-

which

G1j^°ns' still prevails,

na-

from

income

dependent

ports

unending and

and

whicn

upon

prosperity depends. A country which derives more t an 20%

to

and

the

of

quarrel -with

Justice Sloan's

.

agriculture the distincoff forming the backbone of

sources

sees
his consignment from the moment

as

the- dead hand of the past,
*in
e form oi regulatory devices
aPProPriate only to monopoly con-

industries

resource

share with

ma"y °f ,house benefits are moi
re
and pethaps not immediately
Perceived. The shipper of freigut ready

management,

>

many
consider the vital importance to our nahonal security of

£y rail- .for examP'e. seldom

just

situation

The railway is still an indispensable transportation tool.

nadian

,

indirect

effects

consequential

.

Sd'a
as

as

railways, acknowledged
indispensable to trans-

pro.ucts of Canadian indus- ,regulatory
devices
designed
to
upon
which prosperity and meet t .e problems of a monopoly

tion

Yet,

but

those

fne
01. Progressive and
imaginative engineering to bear

■transportat,on needa of

Yet the

much

.U1

fP evl.''e"ce.that th®. railways and
}hose !,nd"stries which manufac-

regard

.

for

tional

track

something
the horizon, but ratner

it realistically as moving rapidly towards the zenith.

Dr.

reason

longer

no

tion is that the railways still pro-

the

of

the freignt rate struc¬

0..

ture due-to tue direct and

of

activity in rail construe- ,portation in Canada today as they
ever were, are subject not
only to
vide the cl eapest and most effithe
regulation
of
competition,
cient means of transportation for which
they welcome, but to other

so

operations, push button control of
and brakes in yard han-

to

"The Age of the

as

Railway Builders." The

switches

dling

balance

rail

is the Distortion and im¬

revenues

concerned.

non-existent,

or

.Competition

mineral

new

compelling

try

roading.

cirub" Mhoe„Pb.arcln! rePres€nted




inspection

use we and public investment

to, that heritage.

fiert, is

and

be-

ment in the speed, quality and

importance.

thoughtful

'

railroads

t

these

who stops to ponder

tuount national

attention

ibility, economy and operational
efficiency the deisel points the

railroader, I am
i

it my

sense

to

each

me

importance

consideration

can

allow

industry which it is

privilege

nadian, I

will

you

three puims.
tjice
points.

a

without

.is

revolutionizing rail transport
Second, there is the role that

Perhaps

the

with

e latest and best in
rolling stock, both for passenger

■

..

technological

of economic

rail

no ei^' are ?°n"
ers are
busy driving new lines to ^ire<^
indirectly and manifest
serve industries which are arising
emselves in terms of price ana
from new discoveries and devel1 y 0 seiv|ce
there i* neveropment of mineral and other rd thfes* a. tendency
recognize

its

^challenge
0 earlier adopting t'

rrin^
,

,

tonight,

transportation

+

country

davsSS

the

present

industries,

ire

lor

or

opening up—-new hori-

-ii-Li1" 5
lied

«

re-

indifferent to tne

is

horizons
v/.ich

without

present

certain,

familiar

are

servicing

builders

complacency upon

achievements

gard

us

operation

way

folly,

VA$y be regarded as a fait accom■■
i ll of histoiy and that
Canadians
taese

the

of

velopment

Advance

diesel locomotive, capable of more
than
5,009 miles
of continuous

and> tive of

to settlement the vast

much depend.
It would be
suppose

Canada's

to

"

Columbia,

ap-*

briefly to dwell.

of

Pacific, linking together- yond

far-flung colonies of what

t.ien

en-

the present, serious decline in

up

push northward of the end

allow"- would

now

our

Competition, in

wealth ^he most
promising and, at the
likely to be a commonplace for same
fact that spectacular technological
time, one of the most p^ryears
to come.
And with each.,
achievements are taking place in
piexing
manifestations
on
the
new
discovery, other modes of
the realm of rail transport.
transportation horizon of today,
It is,;
I think, fair to say that dieselizatransport notwithstanding, the;
one stops to consider the irnneed for furt er extending Cantion of motive power reflects as
pacj. C£ ^ highway truck, the
ada's rail network wUi continue to
;aircraft
and
the
dramatic' and significant a tech¬
pipeline upon
manifest itself in new building.
moc ern
Canadian transportation,
nological advance as any on t..e
New
railway
construction
is it would be best to describe commodern
industrial
scene.
The

no

vital

tence

tny

will

you

loss system of

economy.

is

the

is

national

c

trust

very

All

physical

sense

u.p

I

Technological

trans¬

term,

'

confident,-be

am

track

and in Quebec

parent in each of the points upon
which

port a tion, in

en

pertinence of this observa- ;

Fathers of

Yet

of

The

to

its

opening

of steel is not confined to any one

economic
benefits in-

essential

will, I

Confederation.

the

miles

its attitude to

in

"is

London,

of

and

horizons in

new

also

are

network.

transport, for transport, although

the pioneers; progress, confers
directly."

by

settled
shores of

the

a

the

in

profit and

terprise

the

recognized

,

part
problem

i-

in

as

In most fields

is

the regulator of L.e

as

a
society, is the only known Crow's Nest Pass Rutes covering
\
principle which, when iairly ap- grain and grain products."
in tne Canadian North. Pioneering plied, directs our productive reFreight rates on grain and grain
the hinterland, despite the advent sources, both human and material,
products, as you know, are set by
of the aircraft and modern highinto those channels where they statute at a level no higher today
way development, is still the rail-- W*A1 combine
to produce in the than in 1899. Generally speaking,
roader's
task.
Railway
building most
efficient and
economical more than one-quarter of the total
projects
recently
completed
or
manner the goods and services volume of rail freight traffic' in
now
under way,
representing a wiheh people want or need. - - • Canada moves under t .ese abnor¬
capital investment of more than
Competition is as mucn part of mally depresses rates.
$275 million, will add nearly 1,200 the Canadian heritage in the realm
None will

Presenting* as a tiireefold challenge to Canadian transporta¬
(1) revolutionary technological progress; (2) the open¬
ing up of northern areas; and (3) competition, leading Cana"dian rail executive says Canadian railways are hampered by
thfe dead hand of the past in the form of regulatory devices.
Decries some recent Canadian regulations and wage rate
advances, and concludes the most promising horizon is grow¬
ing awareness that Canada's railways cannot indefinitely continue to serve two masters, be.* regulation, and competition.
no

well

as

sense,

railroading

tion:

Canada

iiteral

the

figurative

By W. A. MATHER*

.

Rails Push North

The

In

President, Canadian Pacific Railway Company

portation

of endeavor it
welcomed

Horizons in Canada

-V

about competition.

"

Thursday, January 6, 1955

to

me

as

this ques¬

answer

by directing your attention to

that passage

in the

where

award

the arbitrator states:.

"It. is
my
respectful ooinion,
however, that the effect of these
rates

bctn

wherein

direct -and

their

shouldered in
t.

National

e

some

to

be

results

should be

fair

Treasury,

continue

now

indirect,

application

in loss of rail revenues,

degree by
ana not

borne

by

as

a

segment of the National economy."
How
to be

such

a

recommendation

implemented is

propriate

to

the

a

is

matter ap¬

realm

Oi.

public

policy rather than to the rah ways.
Recognition of the urgercy of
the problem and of its national im¬
portance
nence

by

a

jurist

not

only

For

a

sug¬

ution

so

is

possible

but necessary.
the award itself, which places

upon

the

railways

an

ad

payroll cost of the order of
million

dollars annually,

moving

any

be

emi¬

Lie

of

of Chie" Justice Sloan

gests, however, that

itional
seven

thus

re¬

disparity which might

ti.oug-t to have.existed

as

be-

.Volume 181

Number 3392 i'J. The Commercial and Financial Chronicle
'

\

-tween

the
benefits
enjoyed by
railway employees and employees
in ot" er industries, cieary states:

gard

Public

sentiment, I am confi¬
cognizes the railway as a
transportation tool wmc
if
given equality of opportunity to
a«?surp

^

,

deep-rooted

a

effectiveness

of an eeonony

and

faith

the

desirability

.

,

ians,

than most,

more

fail

to

to

accord

re~

be worked out in
without

-ner

cannot indefinitely continue
two

serve

masters—the master

re_ulation

the -master

and

of

ccmpetition—without gravely impairing t e in ustry's ability to

can

public

th°

nublic

efficient.y

and

On

Jan

states, provides

in

work

10

an

large

out

Margin Requirement

a

influences

depression
do

the

minimum

quirements

on

an

in

increase

cash

margin
re
stock market trans

the

on

with

in

date; it compares
billion outstanding

same

the

$29

credit.

"Another

important figure
is
relationship between the vol¬
of

ume

of

trading

and

shares listed

For all

of

shares

income

of

the

stabilizers

tion.

ences,
rose

sa

ion

policy^ decisions

si

or legislain-

u"pmploymcd,
cushion

perhaps,

is

T

Reserve

actions
tive

credit

for

Keiui
New

comoen-

the initial effects

about

excessive

the

use

that

ation

business

re¬

concerns

generally,

ability of

consumers

Exchange,

Board's

Reserve

ground

that

ac¬

it inter-

amount
to

read

the

further

which

credit

of

Board's

Reserve

restrict

to

may

be

purchase securities comes

industry is seeking
funds to
build new plants
equipment — at a time, in

other

chanee^
eral

Tripp & Go. In
&

Tripp

Co.,

Itreet, New York

Inc.,

40

Wall

City, announce

financial that Richard D. Stainbrook, formroad Analyst for Thp
American Petroleum

the

explain

and business

Institute, ij

associated with the firm.

now

-

THE

a

CHRONICLE

Will Be Published January

20th

Statement

Presi¬

McCormick,

commenting

Stock

Ex-

the Fed¬

on

of

the

The

economy.

our

increase,

of

course,

-will be to inhibit the proper func-

.tioning of Ihe market and the free
interplay of the basic law of

sup-

ply and demand.
"It is the proper

function of the

Federal Reseive Beard to prevent
the excessive use of credit in the
securib'es

markets.

credit

of

being

u~ed
when

relatively small
measured by any reasonable yard¬

today

is

stick.
"The
rowed

margin

to
—

debit

billion

at

latest

represents
market

bor¬

money

purchase

known

securities
as

the

end

less

value

of

of

all

S2 2

November,

available.

than

on

customers'

balances—totaled

figures

Federal

-raising

* The 1955 issue of

will

our

"ANNUAL REVIEW & OUTLOOK" number

the opinions and forecasts of the nation's banking and
financial leaders on the outlook for business in their respective fields.
present

Re¬

margin

in

credit

the

the

is

market

that

securities
now

of the

That

1.4%

imrgin^t'on be
unhealthy."

stocks




business perspective

on

this year's pocsibilit'es from the
manage the country's industries.

to

the

are

basic

the course of business

factors underlying

).![•

in 1955?

of

market.

2—What

uned in

the

are

major problems that your

line of activity faces

II.i
'!!

in 1955?

I

3—What do you think will happen to prices

considered

in

'

4—What impact will the Administration's and Congress' foreign poli¬
cies and business program have on business conditions in 1955?

loans bv ho'h

ctock

1955?

and values of securities

by banks, and annly

brokers and

to purchases an^

to s^ort s^ec

You will find the

T1""3 F°^erai P^serve raised the

amending
its
prgip^trmQ T and IT. ^hcon-

The

Chronicle

of the

t.r"1 t^e sto°k ryed't act1 vibes of
brokers and banks, respectively,
★

Erei:snan Joins

answers

to these questions

others in the "Annual Review

by

remrroments

the

many

opinions

and

.

forecasts

country's foremost Management Executives.

Do not miss the

opportunity to advertise

Bank in this composite
ness

featuring

and

& Outlook" number of

and financial

your

Firm, Corporation

or

cross-section of America's most competent busi¬

opinion which will

appear

in the January 20th issue.

IV. E, Skl'cn Go. Stf ft
E.

Street.

Button

New

&

Yrrk

Co.,

14

Regular advertising rates will prevail

Wall

for space

City, members

in this number

of the New York Stock Exchange,
announce
man

has

the firm

that Rudolph
become
as

a

alytical staff.

of the

listed

1—What

The higher margin renumem'mt

P.

your

'!•

re-

cannot bv any stretch

and

govern

Get

banking and corporation leaders who

matter of poblic

a

record

or

A

It has always been

The amount of credit,

W.
of

amount

in

We

believe,
however, that the evidence shows
amount

the

of

understanding

"will

vitality of

action

Beard

such
ouirements
were
designed
prevent
t^e
unheaHhy
use

the

the

With

industry and

American

requirements

hmh

net

to

rate

Reserve's

the

words, when an active and
liquid stock market is essential to

the

T.

the

of

my

time when

effect

nation's

McCormick's

serve

statement

Federal

"The

decision

land

to the

of

follows:

new

ficial

Edward

R, D. Slaimbrook Now

Number of

be most bene-"

the

Funston's

Mr.

a

credit

where it vr?H

dent

1954.

"ANNUAL REVIEW & OUTLOOK

credit being used

the

return

power

in

Stock

market

at

'today;
as tNe

action, issued the
prooer function'
g^f0ii0wing statement;
Exchange as a free
"I am indeed surori^ed to Icrn
reflecting the forces of

w'th

used

to

d^sion

lQvel

in

supply and demand.
as

fR

in-

The 1955

fn^ay i« excessive.
b^ard will soon see

tve

icky decisions on investment,
ventories, and buying policies,

COMIX*.

p-n-irot

hone

on

*he

O"

the

I

enlightened managelikely to make pan-

Federal

it, it is hard to underthey pocsjbV could

concluded

the

in

the

its.responsibility,

efpnd

have

sure

am

sees

ancj

js less

19%,'

to individual investors."

Stock

Fedexal

feres

increase

the maig.n in¬
expressed disapproval of

crease,

tion

Tne

day.

board

the

and

ment

average

Funston, President of the

York

commenting
the

effec¬

60%,

specu

endanger
covery."

McCorinicb

the

of

purpose

might

of

to

following

to "prevent the

was

of

50%

from

the

avowed

T.

E

record

available and

last

Board's

reflects
Funston

spending

consumer
to
a
new

individuals
~

?"% -for the pist 55 years.
"While

formecj

new

large holdings of liquid assets by

comparison cf the'
with the average

a

to

levels despite marked declines in
sales and Pre-tax earnings. These
hi§h incomes, together with the

1954 ratio cf 19%

of

In-

rates.

rose

now

on how tb put
information to work. An in¬

g'eater knowledge

strength and liquidity of business erly toll

the automatic stabilizers
as

tax

Profits after taxes of large corpo¬
rations
remained
close to
1953

oper-

By helping to maintain

developments

pre-tax

in

ratio turnover

was

the

for

rnent
come,
such

decline

"Largely because cf these influ-

the
demand,
long-run

automatically, and will do

'

^

and

'built-in

the

rapid
technological progress
promise long-run growth.
"Finally, credit for the year'3
showing must also go to the more
extensive information on business

part because of re-

taxes-

economy,

in

m

Federal

in

helped

time

consumer

and

stimulated home

credit legislation

building to near-record rates. r A t
bottom, confidence rests on faitri
that an increasing population an 1

exchange.

with the

compares

16%

this

the

of the

because

eight years.
During
the
eight-vear
period,
however, themumber of shares on
the Stock Exchange list more than
doubled. Even more illumi: ating

Keith

Tax reform meas¬
encouraged capital invest¬
ment,.
and
liberalized * housing
distress prices.

Personal
in part

total.

dropped,

personal

ures

result,

1953

and

number

the

the

on

1954 the

of

listed

to

which

G.

to-

nearly two-thirds
Agricultural price
helped sustain in¬

liabilities

tax

under similar circumstances
again.
Others were created by govern-

consumer

the

in
of

which

a

the

equaled

spending.

again—the

so

confidence

"Some

also

ample credit for worth¬

needs, and helped keep the mar¬
kets free of forced liquidation at

personal in¬
before taxes in 1954 nearly

It
better insight into1 duction

three

ate

offset

drop.
As

come

demon-

trend.

exchanges.

4, the Federal Reserve

a

a

deficit

also supplies

and

the

come.

readjustment
manner,
without

orderly

scale

character

on
stock purchases from 50% to
protested by Prcsid nt; oc New York's leading

announced

salaries

and

wages

benefits
of

stration to the ability of the economy

In^eas^s ir.nimum margin

Board

1954,

supports

avert

economically. \

Federal Receive

securiiies

orderly manscale deficit

"The record of 1954," the "Bank

stabilizers'

Mova

an

large

mig it

serve

recognition to the fact that trans-

ej%

of

helped keep busi¬ i

business

while

taled about $3 billion less than in

fiat Canada's rail-

awareness

of

set

right.
Cana

downturn, although by them -

a

t

likely to be the most

one

ways

to

ill-affori

of

selves they cannot stop or reverse
-a decline.
In the first 10 months

t otw'

when

be

current

spending.

jn recognizing the need far action
to

the

to
buy,
the will r
A general state .of con¬ *
ability

with

going. Monetary authorities,
following a .policy of 'active ease,'

0f New York, points out that the

in

oubuc-policy no less

J?

of

in¬
in 1954.

even

ness

situation, the January issue of the "Monthly Bank Letter"
issued by the National City Bank

.

,

discussion

a

do so.

to

assured

business

ing

just partially, competitive.
Nor is public sentiment laggard

needs

In

e

in trans-

warding in terms o" national wellbeing and prosperity, is the grow-

which is fully, and

wrong

pros¬

security—t

competition

portation, the most promising, and

in

not

a

re¬

*

fidence also has

to work out orderly read;us'.ment without large scale
deficit spending.

economy

and

their expenditures

build and invest must go

rsue

surely than they are now recog- avoidance of a depression in 1954, the corresponding months of 1953,
railroad industry it- a depression that had been widely but the rise in
government payseif'
predicted, is an indication that ments for unemployment insurOf all the new horizons in trans- adjustments in the
economy can ance, social security, and veterans'

Public sentiment, no less surely,

.

progress,

national

cf

proper

portation must be recognized

transportation

depend.

embraces
the

and

for

if

.

much
*

had

.

+^at

and

omy

be

rrud

,

which the prosperous econhigh living standard so

upon

transportaassured—and as¬

be

to

ev

realities

-

ahne

can

low-cost

economical

is

perity

r

fine

compr+e.

t

crease

of "Monthly Bank Letter" of National City Bank
cf New York paints to "built-in stabilizers" which permits the

If those b~n~fits,- in the form of

sured

maintain

to

men

Deficit Financing

on

"Along

January

low-cost,
tion are
"

of remedying the existing disparity."

efficient,

Stability Not dependent

rectly.

Railways are not now financiaVy able to meet the cost,
from net operating rail revenue,

15

(71)

■

port, although absolutely essential^
to economic progress," confers its
benefits indirectly as well as ci-

"Ths

dent,

"

with
Co.,

L. Weiss-

associated

THE

COMMERCIAL AND FINANCIAL CHRONICLE

with

member of the

an-

25 Park Place,

New York City 7, N. Y.

Mr. Weissman was

Franklin, Cole

I.

&

Inc.
>

i.*

i

16

(72)

The Commercial and Financial Chronicle

the

THE MARKET.... AND YOU

v

'•*

Western

STREETE

By WALLACE

better-gaining

of

issues

last year with a round three
dozen point improvement.

added

*♦*

Union, which also

around

dozen

three

Continued

from

3

page

A Year-End Review and Forecast
non-durable

goods

and

services,

trie unbroken advance in pri-

and

vate construction.

Some

wild

General

by pillar Tractor, good progress

gymnastics

Motors and DuPont,

*

if

which holds about 22% of the
GM stock,
plus the nominal

points last year, for almost a
100%'

improvement,

reason

the rule.

was

to rest and it

to

sort of frenzied

the

as

new

manner.

Right

dawned the

year

issues put on spurts that were

truly sensational, GM soaring
better
few

Pont

than

nine

points in

trading hours
only a point

and
or

a

Du¬
be¬

so

hind.
-

;

❖

.

Much

of

stemmed

a

stock divi¬

such

believers
before

that

the

un¬

half convinced

were

the

strength

even

fh'**rv

rUoH

out.

wh'ch

ments

of the
couple of records

the

impact of

these

so

their

is

One
than

industrial

wont.

span

The

frequent

more

appearers

highest since
to

too,

average,

uut

able

1950. The

way

of features.
if

outstanding

4,400.000 peak

if

Allied

Chemical

continued

in any one

the first two

corporation.

if

if

if

*

The initial reaction

days this
if

year.

around.
if

if

also

Oils

if

a year ago

desultory, although Standard
generally regarded as at
Oil of Jersey was able to start
the end of the road, only to
i
pset the? entire market for a
off with an unusually wide
pell. At worst, GM gave up forge out among the best actirfg groups of the 1954 mar¬ gain and hold it through sub¬
rrarly all of its improvement
sequent selling elsewhere.
be "ore it found
enough sup- ket, have yet to show any Texas Gulf
Producing and
definite convictions. Douglas,
i^rt to put on a better mien.
Houston Oil on occasion were
'Pont followed
along duti- probably because it had done on the other side of the fence
so well last
J' lly for the most, in a
year, was a par¬
quiet¬
with
some
multi-point de¬
ticular
er : nd narrower
target when selling
path.
clines before support bobbed
was
around and some of its
(

f acute

idisappointment that

were

'

declines
Caution

The

entire

affair

caution

more

it

Prompted
to

the

added

rather

the market students the crack

ominous, such as those
past that have signaled

wide; but while

up.

after the initial shock

was

an

indication

of

Kodak

sessions.

General

in

Electric

willingly

and

al¬

underlying stability only
ready is in the records with

slightly dented by
a
couple of issues.
'

❖

sje

excesses in

1955

new

had

a

high after it, too,

been

rather

a

undistin¬

guished member of the blue

Whichever v;ew

ultimately chips for weeks. That its
prevails, the general list strength came out when sell¬
showed all the earmarks of
ing was rampant was that
the
in

bit

cautious
the
on

Feme

air

routine

the

ot

and

issues

nervous

the

sure

also

trading
was

side.

much

more

in its favor.

❖

a

For

Steels

ran

$

into

elsewhere

on

that

price in 12 months.
fThe
article

views

come

of

1954.

Consumer
purchases
of
nondurable goods aggregated $120 billion, or about 1% more t.ian in
1953.

Personal

services

expenditures

maintained

growth trend.

their

for

steady

With prices slightly

higher

—
especially for services,
notably rent—the aggregate

and

physical

quantities

services

in

of

bought

1953.

As

and

goous

by

consumers

approximately

were

the

same

as

population continued

marked

expansion,
the per
somewhat lower,

capita figure

was

The nation continued in 1954 to

in 1953, while the in^
proprietors of other types

of

unincorporated enterprises

well

maintained

income

of

advance.

the

was

rental

continued

persons

In

,

and

addition,

to

aggregate

net interest payments received

by

individuals expanded appreciably,
The fiow of corporate dividends
also
rose
despite a pronounced
reduction in corporate profits before tax, as the elimination of the

profits taxes cushioned the

excess

impact

after-tax profits.

on

the increases in
come

compensated

Since

forms of in-

some

for

the

de-

creases, the total flow of personal
income
remained
unchanged at

add to its stock of productive capital. Private fixed investment was

$286 billion.

virtually unchanged from the

effective in 1954, personal tax and

ord

1953

The
of

by

up

the

to

latter

centered

in

than

equipment

Year

for

Construction
new

allowing for rising construecosts,
construction
put
in
1954

the highest

was

on

record.
construction

active

was

with

espe-

mo«^hanahalfnofr'fh 'total
than half of the total.

New

dwelling units started during the
year numbered 1.2 million, second
1950.

to

Private

non-resi¬

dential construction also increased

public construction

^narJ11w^thbi«nn4' him^' ?S
compared
witn
$11.4
billion
in

Construction of public edu¬

buildings

were

compared with

as

disposable income

higher than in the
before by the amount of the

year

tax

was

reduction,
G♦

4l,„

v

-

A

Toward the year's end, production

and

employment

again

were

rising.

Heavy motor vehicle production, accompanying the early
introduction
been

of

central

a

models,

new

has

the

ex-

factor

in

pansion.
The position of the economy and
the general tendencies at year end

illustrated

the

by

following

items:

/1N"

r

advanced.
f

Including

December,

and

estimate

an

allowing

for

;?

was

,he usual seasonal increase

about 4% higher in the final quarter of the year than in the July-

September period. Renewed place¬

strongly from 1953.
The value of

Personal

1954

residential

more

1953.

1953.
in

are

Private

cially

rates

Situation at the Year-End

expenditures lor all

place in

tax

nontax payments were lowered by

about

were

lower

about $3 billion

1953..

in

construction, both public and private, rose from $35.3 billion in
1953 to $37 billion in 1954.
Even

only

Because

^

Notable
Total

in

purchases

durable

which, at $22 billion,
less

amount

an

reduction

equipment investment,

producers'

10%

rec-

volume, with residential

plant and

and

of

ment of defense contracts has

tributed

to

advance

an

con¬

of

new

manufacturers in recent
months

(2)

high-

do

not

those

of

with
are

author

the

this

necessarily at

They

■

in

those

any

of

the

presented

as

bit

of

on

Employment

has

increased

*n recent months.

only.]

the roads.
Off

More

Than

Final

Demand.
Production

final demand

were

reduced.

tion
and

in

was

in

lower

was

than

1954

inventories

as

Most of the reduc-

manufactured

industrial output in

goods,

1954

off 7% Irom the 1953 volume. The

Diminished

of

rate

productive

operations lowered labor requirements somewhat

that manufac-

employment averaged

turing
and

so

less

1954

in

than

IV4

in

non-agricultural
ployment was 3% lower. In

ufacturing,

the

1954

week in

almost

hour

an

the 40.5 hour average of

Dec.

23

issue

listed

fi¬

a

of the domestic air¬
line industry
as
being available
through Henry Beecken and As¬
sociates, aviation consultants, 1333
G
Street, N.W.,
Washington
5,

-

-

-

a

growth

time

when

contracting
in

crease

ported

in

the

labor

employment

resulted

in

the

was

some

unemployment.

by

force

Bureau

As

about

Gf

of

force,

(4)

or

3.3 million

persons

Personal

Income

The flow of

maintained at

Maintained

personal income
the

1953

level

withstanding the retarded

is

the basis of

on

applications
get away to

a

this

industry

strong start in

Finally,

I
wish to
emphasize
simple but important busi-

certain
ness

factg.

Qur people

numbers.

In

continue
the

2.8 million persons

households

new

the

to

population

United States.
of

164

minion
With

come

We

added

were

continental

of
are

now

a

million, living in

na-

over

households,

disposable

now

to grow in

just ended,
and half a mil

year

running

personal
at

a

in-

record

rate, our people in their capacity
as
consumers
have the opportunjty to improve their high stand-

0f

arcj

gate

living.

demands,

Consumers' aggre-

bolstered

by

the

sustained high volume

was

not-

pace

construction

1955

the

dur-

of invest-

high rate of starts and mort-

will

tion

months of the year dropped below
this average.

Residential

gage

47

ing the past year, but in the later

type

rising steadily and
the

in-

unemployment averaged
5%
of the civilian labor

this

throughout 1954 is expected
early months
the coming year,

to be extended in the

re-

Census,

in

ment

lion

The
at

downdrift

work-

average

was

emman-

contin-

high rate of outlays for plant
and
equipment.
However,
the

1953

total

a

ued

was

1953.

Correction

(3) Businessmen have indicated

•

that 1955 will start with
Production

less than

nancial study

a

particularly strong be-

was

million

expressed

coincide

Chronicle.

The

if

was

recently popular stormy weather after
they
rails where
present earnings had not
only closed out 1954
aren't the basic factor in their
by taking over leadership on D. C. It would appear from this
listing that this report is available
runups, mild retreats were in
strength but had contributed without
cost, which is in error.
order, notably in New York
valiantly to the surge that got
The survey is a comprehensive
Central. In a couple of issues the
new
year off to a good study
of
the
domestic
airline
where stock split
hopes came start. Republic Steel was a bit group and includes detailed finan¬
cial studies of American Airlines
true, notably Cleveland Elec¬
reactionary which was entire¬ and
Capital Airlines. The cost of
tric
Illuminating and Cater¬ ly logical since it was among
the-survey is $20 per copy.
;




Income of farm proprietors was

tons in 1953 to 88 million in

in

enabled it to toy with its best

time

if

Furthermore, the

unemployed workers
partly offset by higher unemployment compensation
benefits;

was

lower than

vehicles

was

Electronics Revive

joined

upward.

lost by

pay

Seasonally adcause of the urgent need for new
3usted employment in all nonStores Act Better
classrooms to keep up with popu- agricultural establishments was a
Store
stocks
were
better lation
growth and for new high- third of a million higher in the
jousting with its 1954 acting and showed signs of a ways to take care of the marked closing months of the year than
^ast summer's low point,
still-mild, but new popularity. expansion of the number of
:js
if
if

better-than-average form and
the
was able to post a brand new
an
Electronic issues, without
1955 high for itself. The longapproaching end to a bull too much
specific to propel
swing.
them, managed to come to life depressed textiles showed
*
if
to,a degree which is a new stirrings on the strength side,
To the
optimistic element,
note, since they have been including good strength in
the way the list
American Woolen when pres¬
regained its
sluggards for many trading
balance
waves

busi-

goods,

ingot production from 112 million

ways

Eastman

in

and

curable

explanation of the decline in steel

cational

❖

:!c

managed to show good re¬
covery
when ./the pressure
lifted, it h£s yet to do any

large stock of the commodity serious
already around. To some bf high.
was

were

for

the

as

ventory demand, converged largeupon them.
This is the chief

tion

somewhat

were

shifts

of

ly

after

if

Aircrafts, which

was one

formances

brunt

and the contraction in business in-

equivalent

rung

the

consumer

construction

if

was

nudge

a

in

demand

ness

the

on

its all-time
to lag somewhat in the chemi¬
higher. The
by another
broadest one-day's list in his¬ cal section which, apart from
shares—$325,000,000 worth—
DuPont, wasn't offering much
through a rights offering to tory was posted when 1,279
for the limelight. Allied put
holders. It would boost GM issues appeared on the tape.
Volume last year crossed the two losing sessions together
shares to
nearly 93,000,000
to start off the year, which
shares, far and away the larg¬ 4,000,000 mark twice; it
isn't among the better per¬
est number of shares around equalled that performance in
dilution of the

a

stock

justed

able

was

steam

high-priced end, U. S.
far a
already been broken. Gypsum, Rohm & Haas and
International
Business Ma¬
day's volume of more
4 Vz million shares was chines, provided little in the

vear so

have

ing

uiv-u~nu,

brief

the

the

a

activity

shrinkage

felt

its

For

But from the directors' meet¬
came, iiui

Volume

Record

offing for
split its shares

1950. The market

was

marked

the

contin-

rates

wage

ued to advance in most lines, so
that the reduction in total
payrohs

decline in military purchases, the

industries

far in the
were in
favor and responded
normally inactive and highwell. Coast Line also had mo¬
priced issues, with such infre¬
ments of demand. The most
quent traders as Mahoning
.mpressive action on the part
Coal, New York & Harlem,
of the carriers generally was
Superior Oil—even the Cuban
the way they ignored the see¬
American Sugar preferred
sawing of the industrials and which hadn't traded all last
particularly their immunity
year — already on the tape.
to the selling drives.
Some
of
these,
naturally,
if
if
if
posted some erratic move¬

the

GM which last
in

interest

wildfire

a

new

in

was

*

the

from

that

rumor

dend

❖

and Southern Pacific at times

up

worked,

were

was
moderate.
Average hourly
earnings in manufacturing industries advanced about
2%; pay rates
in other industries were also ad-

ing

and
Rails, anticipating a rather carve out some wide
gains
hike in margin
requirements poor crop of annual reports,
right in the middle of selling.
ushered in a
new
*
*
if
year
of were inclined to hug the side¬
stock trading this week in a lines. Kansas City Southern
There
has
been a rather
keep

Tne durable goods manufactur-

no

saw

Thursday, January 6, 1955

...

of

of business

investment, will offer

opportuniprofit to

ties

for

expansion

producers and merchandisers a'ert

industrial production and employ-

to

ment.

market affords.

Although fewer manhours

and

the

potentials which

our

vast

Number 5392

Volume 181

...

The Commercial and Financial Chronicle

Economist Sees Stock Prices in Favorable

Aul, Vice-President of Calvin Bullock,

whether it is declared "valueless"

Summarizing the negative and that the present environment of
positive factors in the market out- common stock investment cant-be*?
look, Harold E. Aul, in charge of regarded as favorable. Despite the
for

investments

mutual

funds

assets

with

the

exceeding
million,
points to the

$300

level

market

not to sell

future, common stock
whole continue to bear

broker

The

jess.

Dow-Jones

industrials

are

principal
negative
factor.

well

less"

D

o

w-J

earnings.
ratios

the

1937

and

This

buys,

49

ones

but-one-is-worth

still

above

in

bear

stock

prices
currently

are

C e

is

ciation
and

Vice-President of Calvin Bui-

a

the

of

prices

dollar

selling at prices which liberally
future
prospects
con-

are

stock market at this time

strong investment charThe market continues

acteristics.

be largely on a cash basis and
they are jjs strength reveals the heavy
selling at a high multiple of cur- fiow 0f savings through the chanrent earnings and that these e<*yn~ nels of institutional investment. •
ings derive from a relatively high
„The business outi0ok over the

the

level ol

fact

economic

that

activity

year is distinctIy favorabie
is
uresent todoiv clesr

coming

high

Of

e^idenS^

the

Moreover

foundations

arfifirial

oprtuin
certain

present

in-

artificial lounaations in

I Itrong

of'

recov

y

from the minor recession of early

of 1954 xhe present outlook for the
private debt and heavy expend!- heavy
industries, particularly
tures for security which presently
construction,
automobiles
and
constitute about 15% of the Gross gteel is favorable consumer buyNational Product. Total
private ing is in a rising trend> and in_
debt has risen by 40% since 1950 verdGFy
liquidation
appears
to
and is now about two and a half have about run its course. It now
times the level of 1945. However, seems
probable that the Gross
total private debt, at 11% of cur- National Product in 1955 will aprent national income,, is still far
proximate $365 billion, which was
below that of 1929 and well below the an_time record established in
eluding the current high level

.

these
uic&e

"Despite
Despite
the
me

considerations
^usiutia

factors
fdhiu ia

nositive
positive

continue
w

But,

I

do

nothing
stock

what

urge

you

to

even

if

a

your

father or brother says it is "valueless and just cluttering up his
desk or safe deposit box." Please
do not send

me

YT

rer-

for the coming year

forgotten

holders

the

after

stock-

were

mnnpr

found! As

a

value

in

one

Charge of Finance of Ford

Yntema, Vice-President in

week

to T. O. Yntema,
in Charge of Fi-

According

Motor Company,
the American

Ford

nance,

Dearborn," Mich.,
much

than

bust"

25

was

ago.

it

per

share

really worth

.

Dr.

as

operate

well

The

Dr.
at¬

resilience
T.

tributed the

O.

Yntema

years

since

the

of

lce

has

ations

>n the

.

who

hope

to

20

or

less

even

courge

y

.

5

'

are

of

hotels

the
t

sold

rh

in

for

•

the
i]t

.

(amous Sheraton Chain weie built
*he

ln

were

nineties.
$1,000

they defaulted and

The

bonds

each.

Then

kicked about

^'ha^ *2°°
faith

in

bought

the

up

hotel

business

the

partners,

present

Howard

K.

National Association of Securities

Dealers, Inc.

Gillespie Partner in
Kenrick

in

the

and

S.
to

Gillespie
general

the

of

the

economy

in

chiefly to

of
Carl
M.
Loeb,
Co., 42 Wall Street,
New York City, members of the
New York Stock Exchange.
Mr.
Gillespie is Manager of the firm's

&

investment

advisory department.

With Lee Higginson
(Special

to

The Financial

Chronicle)

CHICAGO, III—Gordon A. Neal

these bonds. They have

is now associated with Lee Hig¬
ginson Corporation, 231 South La

paid off at

Salle

par.

Street.

Corporation

Common Stock

1953-54.
"In 1953-54," he said, "dispos¬

in incomes is
cushioned through
reduced tax revenues and through
additional
payments for unemnloyment compensation and farm

able personal income actually in-

the American economy
the

following factors:

al

A

decline

automatically

tax

sumer

Spendable income ca

further

reception

models

has

supported by reduction of

rates when

necessary.

(3) The debt structure is m
sounder.

Price $2.00 per

Share

mained at high levels, and con-

mice suimorts
puce supports.

(2)

(Far Value $.25 per Share)

creased. Durable goods production
held up far better than in earlier
declines Construction moved to
new highs Passenger car sales re-

-

been

business

ex^anding
stated
on

a

that

the
the

sounder

of

the

1955

activity

Fprd
for

is nowlong-run

The money, and banking expansion than in earlier postsystem is not subject to collapse. war years. It is no longer dependMany business firms are
gearing their capital expenditures
to the longer run market than to




be obtained from the underwriters.

excculfve

economy

base

may

aeain

(4)

(5)

Copies of the Offering Brochure

excellent."

ent on an abnormal backlog of
demand for goods or an expanding defense program.

S. D. Fuller & Co.
39

Broadway

JSew York 0, A. V.

been

firm

the

1949, and particularly
to decline in

resistance

has

partnership

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

Elco

oper¬

industry,

Halligan,
Oliver D. Appleton, Alexander B.
Johnson and Jeremy C. Jenks.
The stock brokerage organiza¬
tion also holds memberships in the*
American Stock Exchange and the

Rhoades

Sh

securities

Homer J. Vilas, Theodore

Carlson,

admitted

to $1,000.
Some

D.

value

in

of 90 years of

Garl M. Loeb Rhoades

m

'

31.

the

in

including

^

these bonds returned

f

Ex¬

the firm has had only 22 partners,

gtock
,

stockholders

dropped

But

Stock

Dec.

on

In the span

paying divi-

o£

,.

The

;

versary

gradually decline, but no one gets
Panicky.

Court,

firm

stock stops

?

New York

149,500 Shares

This

on

observed the 90th anni¬
of the founding of the

de¬

expansion.

and

reaction in
for

change,

NEW ISSUE

period is notable for the snuffing
out of inflation in 1948, for the

in

a

the

bers of

to

as

:

Com¬

Treasury Department.

This advertisement is neither

use

factors,
out,

nine

prosperity

As¬

When

since been

,uuu a snare>

war," Dr. Yntema said, "we have
had
an
unparalleled period
of

American

stability

these

pointed

the

"In

Credit Con¬

Yntema

are

pression.

ference of the

Chicago,

willingness to

inflation

check

the

sociation

of

Yntema

National

Bankers

stabilizing measures

greater

Most

years

at

and

such measures.

In an ad¬

dress

$10.00

they

York

generation. We now
better understanding of

a

a

.

*

for

of the New

last

the

and

found

stockholders

of

Cyrus J. Lawrence & Sons, 115
Broadway, New York City, mem¬

certificates was one
Boston s most couiageous
"valueless,"
the family financiers, Ernest Henderson, had

them

sold

Important advances in eco-

Dmic know how have been made

the effects of

to

and

"boom

(6)

has

committee

Celebrates 90 Years

these

while today

nomic
have

more

resistant

mand.

in

is

economy

cle-

in

fluctuations

company

list of the old

marked

short-term

old

containing

the American economy.

Vice-President

a

the

$10%7aTharrAVfh"^

underlying the stability of

Company, gives six factors

Motor

hers

executive

■

Never Sell Defaulted Bonds

result; the land could

in

of

Gyrus Lawrence Sons

treble m value,

nr

acre! Some old-timer who remem-

Dr. T. 0.

Common,

,

from $5.00 per acre to $50,000 per

Boom and Bust

Stores

,

increase

Economy Held More Resistant to

which

in

...vlofl G1. mese wortniess cer
resiimntion
of
dividends
tificates in your attic or desk
* h^ev?r a bond defaults
drawers are of old mining comaV/'eig^bond ^molt
panies. They may never have been fspeclally
'
any good, or are of mines which bondholders think this is the end.
have completely "petered out." The price of the bond then sudThe company did not have the derdy drops from around par to
money to dissolve legally
but
dollar
Dis
some rancher has paid the taxes ou
cenis on ine aoiiar. uisfor the Privilege of using the land couraged bondholders have rushed
*°r Pasture. Hence, the company to sell their bonds and the price
was

the

and the

J"If.s\ock coldd easily double or

%

"worthless"

past

a

Committee

has very lar§e hold"

(United

den<Js {he

lIranlum Is Recovering Values
these

depart¬

is

the Tax Court of the United States

,

,

.

tax

He

the United States Supreme

...

suctl stockholders who cannot

your

regular banker, if you wish.

the

he located. Perhaps you are one of
v^Se stockholders. There proba^y are hundreds of other com£,u"ieSi.
Ke United Stores,

&ny certificates to

look at, but show them to

the

its

mittee of Brokers and Dealers

sellinS on the American Stock
Exchange for $3 to $4) has nearly

do

throw

and

.

°ne of tlie companies

ings

to

of

1944.

of

chairman

ad-

"dead."
.

m y
me

you

^

o

which looks like

away

certificate

marks

my family

„

.

....

since

say

"unknown"

marked

company

if

to advise them

Roger W. Babson

or

I believe expectation

compelling and

appear

to

back

un-

t

r

has

Ligon

organization
for
the
past
eight years.
He is also a former

"value-

a

Mr.

that

nri_

noin

new

look at

ever

Stock

it is not Taxation.
WOrth a 3-cent postage stamp and
Mr. Ligon was graduated from
the time required for writing such the Law School of
George Wash¬
a
letter. After too many changes ington University in 1935 and has
0f address, your envelope comes been admitted to practice before

told it was no good.
crease in corporate income of apThe land is <=iiVPr useless for
still
r
trpttinp1
eoid
proximately 10% is a reasonable ge"lng gold °} Sllver> copper or
r
lead; but uranium may have been
1953. On this basis an overall in-

1940.

dress. Don't

unnr

of your

stock

be

readers for

recov^y

slronS

a

.

i

a

rtf

ctonlr

anv

any

head

been

on

.

hnir)

hold

York
York

the appoint¬

Bapking Institutions on Taxation,
New York City, and has served

house

one

&

S. Ligon as an as¬

manager.

chairman

an®the' and especially from
°n%
anot e1>
suule
write the company in which you

or

pnnrsp

would
f

from

move

vou

announces

of
Co.,
City,

firm

been with the firm since 1943 and

wnen you move irQm one nouse

+

complications.

there

level of economic activity rests on

When

outstanding

1929

discount

sidering

or

obligations

1937^ but the vast expansion
that period ac-

p0ssesses

order

consolidate

cur¬

since

sistant

New

the New

of

David

ment of

Away

*

banking

Street,

members

has

P a a y less" certificate and

dissolve

to

j^e economy in

common

m

some

needs in

lock, said in a year-end statement, companies by a market and ex"On this basis the market must be
panding increase in the earnings
said to have entered a speculative Q£
major corporations. As conzone where careful and informed
trasted with previous periods, the
selection carry a higher premium
than
ever
before.
Many stocks

a

.

0

c

rently reflect not only the depre¬

peaks
previously attained," Mr. Aul, who
any

be

t 1 t icate

1

,

wlthoutv any

stock

"Common

fs

which

-

Harold £. Aul

above

well

Th

wou;?J,.Deia

relation¬

reasonable

a

rates.

a

oerhans

would

ship, historically, to long-term in¬
terest

Wall

Exchange,

Stockholders Too Often Move

worth-

Tl OOO

<v

and,

400, common

which

now

are

is

reached

to

defaulted bonds.*

50 "worth-

certificates

stock

indeed, the
average ratios of the late 1930's.
Common stock yields, moreover,

industrial
average

below

1929

"With the

1954

'

'■

currently seUing at about 14 times
estimated

Calls attention

not.

59

ment

i
I hear that for every

historically favorable relationship to earnings and dividends,

the

as

long

an

the

of

to be liberally discounting

prices as a

or

private

Brothers Harriman

Brown

old shares of abandoned mines which may have some value
because of uses made of the land. Says uranium may be
found on v location of abandoned properties.
Urges public

fact that certain individual stocks
appear

The

Babson, pointing out "worthless" stock may become
valuable, advises against throwing away any stock certificate

negative factors, business will show gain in 1955.

Ligon Appointed

By Brown Bros. Go.

By ROGER W. BABSON

Mr.

despite

says

David

Finding Fortunes

Relationship to Earnings and Dividends
Harold E.

17

(73)

J. B. Boucher & Co.
39 Broadway

New 1 ork 6, A.

Y.

L

(74)

will

"Stability ls< Good Enough"!
By
Executive

LEO

sharp seasonal swings, hot com¬
petition, regional .differences and
unexpected veerings.
1

of America

Institute

the 1955 danger is not depression, but
rather a possible loss of confidence as v/e hug the line between
recession and full employment.
Contends the distance bestability and

unprecedented boom is

even an

of the vast amount of liquid

in-view

small

a

existed.

During past fiscal

could turn> the
of stability into
of unequaled performance.
we
economists
predict a

aggressive

year

year

a

one

When

savings.

growth, we

economic

modest

The Government
pursue

annual

although its nature saying that the performance of
'ze
uo
the mathematical proba- and outcome are completely spec- American business by and large
iJlities. According to those mathe- uiative.
A.nd it is equally clear will be a lazy one.
Matical probabilities, 1955 will be that stability between the Western
<
"
a
year of staWorld and the Soviet bloc is not Siein Roe
i
/
^
bility, of very in the cards. There has been an
modest growth
excessive .though understandab'e
Admit
in
national preoccupation
with France and
CHICAGO, 111. —Sydney Stein,
performance, Germany's passing the Paris oacts.

riguez.

the Kremlin

do is to

can

this coming

providing

in

year

report 'or the past fiscal

year, just issued, Guillermo Rod¬
President, states that exoanded lending activity covering

fields of term linancing is

various

contemplated.

Dollarwise, the report shows the amount of loans disbursed for
industrial

& Farnham

-

~

po'icy

funds l'or the deve-onmert of Puerto Rico's economy. In the Bank's

are

The best economists

1940/'

since

economy

Development Bank for Puerto Rico p'ans to

aggressive loan

an

approved for various

vere

Commonwealtli's
depicted.

sales

anticipated

.

77 loans

year

Trends in

projects.

imaginatiorv'and

Energy,

January 6, 1955

Expanded: Financing Activities Planned by Government Development Bank for Puerto Rico

Yet, the country offers the most
exceptional market which has ever

Mr. Cherne points out

tween

warn

of

CIIERNE*

Research

Director,

better. I

somewhat

be

picture

overall

the

though

,even

•

Chronicle...ThursdaV,

The Commercial and Financial

18

the

s

in the 1953-54 fiscal

purposes

me

that fcr the

as

year

previous period.

approximately
c isbursed

was

Of 58 loans

.

,

,

-

,

of

The

continuing

begin after passage.

unemploy¬

neither

ment,
boom

to

Jr.,

volume of

un¬

fied

liquid
savings in the

i

consumers

to

s

distance

The

between

recorded

ravings,
1953,

$201
an

of

rate

•ihmilies

personal

alone

Mated at $20

for

The

One

an¬

.

4 million

sales

digressive

•

turn

a

When

modest growth,"

very

ing

we

don't^expect

jfcGptional/ the

that

of

iricustry by and large

will

lazy

I'as

a

been

of

asured

one,

difficulty

no

it
ahead
as

despite increased comnetition,
r.tred

"-ofit

j

.;

as-

by and large of substantial
and consumption.

Preoccupation with co-existence

will diminish

in the White House,

) 'C is clear there

is

ment

level of unemploy-

ranges

to
to

go

between 3 and

tak'e

wrong

much

a

in-

to

from

At 6 million

btgins to have

trouble

wiLhin

.

f

ue

Pork

the

,,

Sales

'

,

Ex^-Xe

•

*0™New

ciub

fi.

cial

ai

4

to

unemploy¬
real

the

of

and

Joseph

m™e

Mr.

in the
tive
0.

that

announced

Gvps

execu-

.

Bark lor Fuerio

Odt, who has been serving
capacity of account execu¬
well

as

e

^

^

,

analysis

rrunicip 1 securities; $3 860,720 Instrumentali¬

Company

the

following

the

data

economic

or

ainecl

con

,

corporated,

joined

1937.

to

Prior

with

ciated
Bank

Mr.

of

the

that

The

he

•

firm

was

on

% Incr.

in

Fiscal Year Ended June 30

1.940

National

First

Life

Chicago.

Sondheimer

has been

of

leading

stock

expectancy

Death
a

rate

Gross

re-.

search analyst since he became
associated with Stein Roe & Farn-

members

years

Product

income

per

Net

income

from

Net

income

Estimated

_

of

Chile

of

Chile 6% External

of

Chile 6% External

agi

of

Chile

of

value

building

750

1.186

328.1

612

970.7

325 .i

122

289

435

256.5

70.5

$ millions

iculture

277

228

26.4

39.6

362.0

391.1

318.7

211.7

355.9

386.8

Bank

S millions

issued

Eank

loans

Value

of

shipments

mainland

U.

Sh pmen.s

273.6

300.6

160.0

212.8

17.4

50.2

70.9

£1.1

124.8

194.6

191.4

522.0

8"1.0

S

:

s.

318.5

135.1

132.9

ex-

Inccme

of

public

89.171

139.4-0

437.4

26.4

33.5

4,422.7

286,113
2,394

377,319
3,147

M

20,847

40,157

101.2

451.2

853.2

429.3

31,189

40,215

87,531

180.7

$ millions

311,803

402,153

875,313

180.7

of

millions lnvh.
margin

of

property

Division

Economic

Finance;

Board;

Department

of

Public

June
093

Fuller

D.

]ioiv

Chile External Loan

8, 1915

of

Chile Guaranteed

of

Chile Guaranteed

Sinking Fund 63A% Bonds of 1926, dated June 30, 1926

Chile Guaranteed

Sinking Fund 6% Bonds of 1928, dated April 30, 1928

at-$2

vaiue)

Of the

Sinking Fund 6V^% Bonds, dated June 30, 1925

Mortgage Bank

a

Co.

&

Co.

&

149 500

common-

Sinking Fund 6% Bonds, dated May 1, 1930

Mortgage Bank

Share

are

B.

offering pub(25

cents

par

proceeds of the sale, the

will

company

approximately

use

$125,000 for additional equipment
and

of

Chile Guaranteed

Sinking Fund 6% Bonds of 1929, dated May 1, 1929

Mortgage Bank

of

Chile Guaranteed

Sinking Fund 6% Agricultural Notes of 1926, dated Decem¬

working capital.

1926

The

Santiago, Chile, Twenty-One-Year 7% External Sinking Fund Bonds, dated January 2, 1928
Sinking Fund Bonds of 1930, dated May 1, 1930

Treasury Decree No. 10234 of the Republic of Chile, dated December 10, 1954,

hereby given that the Offer of the Republic of Chile, dated December 7, 1948, to holders of
until December 31, 1957.

Holders of dollar bonds who desire to accept the Offer should deliver their bonds
together with form
letters of acceptance and transmittal to the Fiscal
Agent of the Republic, Schroder Trust Company,

Broadway, New York 15, New York. Copies ofthe Offer and of forms of letters of acceptance and
may be obtained from said Fiscal Ag. nt.

transmittal

Rkpublic of Chile
By Caja Autonoma de Amortizacion




tooling

for

company

line

complete

sub-miniature

A, dated September 1, 1929

de

la Deuda Publica.

sole

binding
its

posts

in

plant

nsw

manufactures

a

of miniature and
sockets,
shields,
and

connectors

Philadelphia.
in
in

at

These

electronic
turn, are

electronic calculators and

in

"brains," radar, television, micro¬
wave

relay

controls

sys'ems,

and

customers

cf

.

industrial
Its
all

guided missiles.
include practically

the

leading concerns
electronics industry.
For

the fiscal

Kuhn, Loeb Partner
C.

Jonas
been
&

who

Andersen,
with

associated

has

Kuhn, Loeb

William Street, New
members of the New
Exchange, for a num¬
ber of years as Manager of the
Municipal Department has been'
Co., 52
City,

York

York Stock

products are used
components which,
used

Jonas Andersen Is

share.

per

Mortgage Bank

Thirty-One-Year 7% External Sinking Fund Bonds, Series

capitalization
of the
consist of 373,750 out¬
standing shares of common stock.
sue,

Corn,

F1^

cU-~es
stock

J.

and

products,
with the remainder being used for

Dated: Decerr.ber 31, 1954.

30, 1949 net sales were $89,net income was $7,422.

and

company

S.

Boucher

57

Works.

Giving effect to the current is¬

Offered ct $2

of

notice is

the Budget; StatFt'eii Year¬
Annual
Report,
Secretary of

Statistics; Bureau of
Administration;

of

Development

Punning

Eko Oor moii Stock

Republic

dollar bonds of the loans listed above, will remain
open for acceptance

76.6
08.2
235.7

Government--- S milpons

incurring

value

4,025
90,115

505,151

Census.

6% Bonds, dated September 1, 1928

Santiago 7% External

985.5

2.2

schools.

generated:

debt

6% Bonds, dated March 1, 1929

of

561,805

25,952

!icerscs___-,

♦Decennial

:

525.7

kilometers

in

ds

10.

vehie'es

ed

307.5

S millions

I

col ections

tax

r

120.2

253,728

sugar

passenger

Enrrl'rTiert

External Loan Sinking Fund

In accordance with

58.0

51,755

&
mola ses $ millions
traffic-Revenue and receipts of the C mmorxvealth
Govt. (excl. grants) f millions
Ex.ernal

332.5
*

from

and

to

76.4
49.2

# millions

govt.)

de^osus.

su,«.igs

i

293.4

$ millions

$ mi.lions

bank

$ mi.Eons
,S mi lions

(incl.

deposits

Private

External Loan Sinking Fund

City

621.8

56.3

7.8

73.1

Chile

of

A-

93.4

Chile

City

442.4

nt^-

$ millions

of

ber 31,

138.3

143.2

8 millions

of

Chilean Consolidated Municipal Loan

168.0

78.0

debits

Republic

of

150.0
'

assets

mits

Republic

Mortgage Bank

,

Bank

Railway Refunding Sinking Fund 6% External Bonds, dated January 1, 1928

Valparaiso 6% Bonds, Guaranteed Loan of 1915, dated December

32.6
—57.8

7.6

dollars
S m llions

manufacture

from

Paved

Twenty-year 7% External Loan Sinking Fund Bonds, dated November 1; 1922

19.2

*61

Bank

Sinking Fund B:nds, dated February 1, 1927

Republic

12

Sinking Fund Bonds, dated October 1, 1926

Republic

57

18

$ millions

_

capita___

SOURCES:

Republic

4(i

inhabitants)

During
1940-54

2.239

.

S millions

income

Net

Chile

Republic

2.151

-

1,001)

(per

Net

their firm.

the-following Loans

*1.878

1954

1918

millions

.cl

Population

book.

of

is

report

the Economy of the

asso¬

Asses

Water Company

the

in

ris in the period 1940-1954:

ire.

Commonwealth of Puerto Rico

C'crmm.mvealth

Holders of Dollar Eonds of

and $2,493,515 cash.

Sigirficant Facts

Legal

of

including

lu r.o Rice Industrial - Development
bz-tr.ks on the Island and the Mainland.

rw-j

There actually will be sharper changes, announce that Thomas
filiations within the economy Fisher, Jr. is now associated with

Republic

Bank

&te.n Roe & Farnham Fund In-

'

sands into the labor market.

The

economy.-

the

The

of

treasurer

Rico's

Puerto

Government! securities; $3,642,261 Commonwealth

and commercial

^am *n 1946. Alter g^kduation
Tho dsngGt* is not d^Gpr^ssion^from thG Hctrysrd Business School
Tha* is out 6i the picture entirely in 1942 he served briefly as a eon*or
The danger is possible sultant with the Office of Civilian
Joss of confidence as we. hug the Defense before entering the
'*ne between recession and lull Army,
employment apparently unable to
get oil, while productivity and
I arnall, rSldche Acds
population increase continue to
PHILADELPHIA. Pa.—Yarnall
pump additional hundreds of thcu- Biddle & Co., 1528 Walnut Street,'
*<' \

of

aspects

1951 shows tOial resources of 549,812,601

Government;

Electricity

to

is fiscal agent for the

Rice

t At minisua io.: which is an agency cf the Commonwealth

•~op:re,

An.ong

^l!lner'u on, Jar!: *'

as

.

two

Alden L. Odt
Sondheimer,
were

firm,

Met

Notice

industry,

Bank coordinates its activities with the Economic Devel-

The

com-

this year than there were in 1954,

City, Jan. 4, 1955.

-

private

to

strong financial position.-The statement of condition

a

0 821 U. S.

bontiiic-imer

.s.-p.i

'

—r-

loans

of

source

a

ties cf the Ccmm or wealth;
0J£

L.

l.U-JI

Las

jouncing effect and to seriously
threaten industrial confluence it-

but

pcrformsncG

motor

provides leadership in the expansion and development

so

a

e*

of June 30,

as

we are say¬

American
be

a

unemployment

6 million.

Vcr firms arid industries which gre
c

crease

that kind cf

saying

We are

energy.

a

"A

say:

bfirg

-of Puerto Rieo and

can

despite high profit, boom

uneXpected

performance.

economists

we

We

industry cannot be

Uon is this_It aoesn>t

promotion

ol stability into

year

of unequaled

pear

ti

maintains

amount

enormous

erate increase in national produc-

imagination,

and

'

"...

•

to

,

in the securities markets and mod-

billion.)

Dynamism, energy

can

reason

ment which

estL

/a

.

It
of

f27.3

-

opportunity.'

content with

savings by
is

have-an

unused

V

competition for all industry.

billion
all-time

1954

*

an

Rico.

Puerto

expect very pronounced additional

(Individuals,

at

close to

were

j-cak at the end of 1954.
nual

We

one

ravings which exist.
j.h

stability,

unprecedented boom is. of
in view of the liquid

even

small

electrical

Common wt a.th, and for various authorities ana municipalities of

for

even

great deal of woe.

'

<•

\

auuiticn

Deve oprrent

or ent

industries whichare
in high gear.
Stability is an
average.
The averages include a

all-time peak.

an

industrial buildings,

as.

products,

*

considerable
dif'kulties for individual indus¬
tries and fluctuations within the:

This is
ir measure of industry's inability
t'» motivate consumption.

ibid

by electronic memory compu¬
and automation.

year

f^nse

projects such

of, plastic

especially to companies which require loans of too long a term to
be suitable for the portfolios ol con mercial banks, the Govern¬

The averages mask

American
Leo M. Cherne

$4,470,500.
in

tation

of

hands

manufacturers

garments, ana furniture and accessories to the total amount

ucts,

.of

dynamic drive which on the tech¬
Yet
at
the, nical side of industry is producingsame time the. an industrial revolution, exempli¬
spent

in' the

44

-products, construction materials, medicinal and ophthalmic prod¬

ham, 135 South La Salle Street,

neor

-stability.

received

which ended June 30, 1954. 77 loans

year

for various

approved

hotels,

capitalized ventures

68% of nl1 disbursements.

nr

During the fiscal
were

investment

Chicago

the

of

Iccally

year,

f

sum /

counsel firm of Stein Pioe & Farn-

3

Selling and promotion nowhere
match the inventiveness and

bust,

nor

likely

is

difficulty

real

the

during

Odt, Sondheimer

,

vear

in

ended

30, 1954 sales of Elco Corp.
$1,863,030 and net income

the
June
were
was

.$54,977. For the.fiscal year ended

admitted

the firm

to

as

general

a

partner.
PoWer of
any

other

Attorney (jointly with
authorized individual)

has

been

granted

Michel

Stanley
after

N.

almost

tion with

to

Edgar

H. Spottswood

and

Hess

50

B.
White.

has

retired

of

associa¬

years

Kuhn, Loeb & Co.

Edward P. Fitch
NASHUA,

N.

Opens

H. —Edward

P.

Fitch is conducting an investment
business. from
man

Street.

•.

offices

at

9

Sher¬
;

Volume 131

Number 5392

(75)

The Commercial and Financial Chronicle

...

V **

j>. •■:■•••■. ■•%•..:>• ^.vaX

7

/' V*

''i-

j

.

'■

.

•

*

:

.

r-

t': Ny-J:

.......

THE bulging fin Lockheed the back of
that rides Super Con¬
huge

stellation
dimension

radar

new-

supplies
to

patrols

S.

U.
—

important missing

an

Air Force airborne

the ability to spot the

altitude of enemy

planes at

a

reports

Department of Defense, this "piggy¬

back" radar
intruder

pinpoints the position of the

and

feeds

its

plane's control center.




findings

to

the

lem

radarseone developed by

ments

and relays it to fighter planes to

Night

or

clay, rain

or

It
the

shine, ivinter or

with
est

a

also

Television

genius of this new Philco airborne

another

of

any

the latest-

develop¬

striking example of

Air

...

so many
.

.

.

industries—Radio

Refrig¬

Freezers...

Conditioners

.

.

.

4

high bower

and

Electric

Ranges.

sharply defined imap-e at the long¬

range

is

electronic

unique integration of Research with

position in

a finger.

radar lies in its combination of

Forces

Philco

in

for national defense.

is

eration

The

Armed

the

Application that gives Philco its dominant

the process is as swift and exact

pointing

for

milestone

guide them directly to their target.

as

engineers in close teamwork with

a

officer correlates the data with other radar

summer,

Developed by Philco scientists and elec¬

the

on

Philco, the Combat Information Control

distance of

hundreds of miles.

tronics

s-xv&s.V-t

•

far-sighted sentry in history !
There,

the

*

'<

w

The most

s

..

And the end is

radar of this type ever

in sight!

developed. And the solution of this prob¬

'•"Cd

not

...

13

20

The Commercial and Financial Chronicle

(76)

__The
New

the

News About Banks

National

Chase

Presidents

BRANCHES

OFFICERS, ETC.

Bankers

and

REVISED

At

the

Board

Vice-

Second

as

Charles H. Bantg,

were

regular

meeting of

the

Directors

Trust

of

City

Company

Bank

of

New

CAPITALIZATIONS

Department;

Guaranty

Trust

the appoint¬

Haas

and

Kimpel as a
foreign
depart-

of

ment

H. Adler, Hans G. De
Dimitry V. Lehovich

Erving

of

Company

have

been

announces

Ralph
Vice-President,

E.

Vice-Presidents
Trust

C.

Mr. Alder

after

1941

to

Division

still

Central

European
Secretary of the

is

Committee

Creditors

of

De Haas sutdied

joining

experience
He is as¬

banks.

the

and

American

are

Stand¬

for

Germany.

the

bank

the

Foreign Credit Divi¬

He

1940.

is

head

Ralph

as

of Herbert P. McCabe

Vice-President

a

utilities

division

department.
the

in

the

the

of

Other

promotions
are

Herbert P. McCabc

is.<iups.-*

ment, and

new

public

banking
Guaranty

January

4

following:

Ferdinand H.

Brewer, Theodore
H.
Mengel,
Jr.,
and
Stephen
Valentine,
Jr.,
Second
VicePresidents; Richard F. Dundore,
Assistant Treasurer, and Philip J.
Engel and Knud H. Trudso, As¬
sistant Secretaries.

OF

the

bank

Lehovich

Cash
from

U.

S.

Loans

U.

dlscts.

1,369,320,780

1,253,012,769

100,598,028

101,464,703

Advancement of Dale E. Sharp,
with

become

to

General

Guaranty

asso¬

Management
Company

Trust

January

by

has

has

ViceE.

,

Virginia, Ohio, Illinois, Michigan,
Indiana,
Minnesota,
Wisconsin,
and Iowa.
*

*

*

members have been

new

to

it

was

announced

on

30

by N. Baxter Jack¬
Chairman. Walter L. Schaffer,
partner
&

of

Lybrand,

Montgomery,

Ross

has

been

to the board of the bank's

Street

at

Madison

Avenue

Office; Paul J. Timbal, President
of

French

American

Corporation,

has

been

Banking

elected

to

the bank's Rockefeller Center Of¬

fice

at

11

West

51st

Street,

and

Oliver S. Swensen, Vice-President
of

been

elected

Trust
of

S.

Govt,

Loans

&

Undivid.

OF

ness

BANK

NEW

announced:
Francis

M.

Cash

and

due

Bunnell
sistant

139,627,000

3

Assistant

and

—.

Applegate,

S.

Cunningham, Eu¬
Dixon, and Charles E.

D.

Rogers

Assistant

named

were

Biebers, Jr.,
L.
Carlisle,
Henry
C.
Richard W. Goslin, Jr.,
A.
Moller, Joseph W.
and
Joseph
W.
Welsh

elected Assistant Secretaries.

NATIONAL

contact

officer

Empire

at

State

Mr.

the

Branch

Cuningham came to
in 1953 after bank¬

customer

contact

officer

Branch

Office. Charles E. Rogers
been
associated
for
many

with

years

the

Company's inter-,
national banking activities and he

financing of

basic commodities in international
trade.
Carl Beibers, Jr. and
Joseph W.
Welsh, both with years of experi¬
ence in the international
field, are
members

national
liam

of

the

Irving's

Banking

L.

Carlisle

Goslin, Jr.

are

Irving's

Wil¬

Richard

to

Deposits
Cash

and

from
U.

S.

Trust

1,435,026,215

*

P.

*

MORGAN

fi-

NEW
•-,

•

v

Total

•.

S.

a

member of

Branch

Office Staff. William A. Moller is

Street

Branch
TRUST

BANK

817,270,678

Oct. 15, 1954
S

Dec.

2,901,737,163 2,900,369.499

reSources-

11,371,228

Cash

and

from

647,566,436

730,304,475

se¬

holdgs.

828,967.349

847.909.131

discts.

975,580,137

938.882.934

profits

19,059,617

17,697,685




U.

S.

*

COMPANY,

•

BANK

J.

N.

June 30, '54

it

U.

S.

31,475,679

32,536,883

discts.

36.716,665

curity
Loans

&

Undivid.

378,584,245

discts.

620,086,248

556,419,582

profits

19,779,393

FIRST

OF

resources

Cash

TRUST

N.

COMPANY,

banks

\

U.

—

NEW

$60,892,837

June 30, '54

due

:

^

Govt,

53,323,840

profits-

Cash

*

*

,

NEW

*

discts.

620.263,230

610.466,222

profits

19,224,787

18,918,833^

COMPANY

YORK

Sept. 30,'54
$

143,162.206

141,800,281

103,931,936

27,596,547

holdings
profits—

&

*

<

YORK

TRUST

STERLING

58,215,848

—

—

849,175,767

Sept. 30,'54
$

840,827,033

751,495,215 746,875,405

TRUST

47,166,111

COMPANY

OF

BANK

NEW

&

Sept. 30/54

Loans & Discounts.

profits—

316,507,009 307,056,667

16,512,489-

16,203,912

11,900,195

9,471,806

58.615,238

58,949.365

14,854,889

8,356,504

2,509,382

3,656,772

—

Govt, security

holdings
Loans

.

—

& discounts-

undi¬

and

vided

profits

Cash

Sept. 30/54

$35,428,120

$34,233,093

32,898,225

and

U. S.

due

31,765,610

from

8,967,151

w

Govt, security

and

vided

9,049,345

/
12.577,510

13,714.401

11,262,674

8,528,253

1,177,G40

_______

Loans & discounts.

Surplus

due from

39,407,617

NEW YORK

Dec. 31/54
resources—

holdings

133,150.007

:£

CLINTON TRUST COMPANY,

$

121,668,867

70,934,385

from

due

banks

155,009.172
:

——

and

1,157,542

undi¬

profits

31,467,212

*

U. S. Govt, security
42.534.238

58,127.987

1,536,220

discounts-

1,505,162

profits—
*

HENRY

NEW

corner

22nd

YORK

for

Savings

in

New

the

opening of a
entrance and lobby at

Sept. 30/54

Street.

planned

by

The

alteration

Arthur

H.

was

Fuller

of

131,112,733

99,647,222

LaPierre, Litchfield & Partners,
Architects,
to
provide
modern

94,178,315

67,708,691

and

17,868,359

7,450,303

59.843,861

41,817,670

22,777,254

23,940,078

4,754,838

4,659,608

$
resources

Deposits

S.

new

Bank

announces

its main office at 4th Avenue and
BANKING

Dec. 31,'54

U.

York

*

SCHRODER

CORPORATION,

Cash

The

38,294,537

68,280,572

holdings
Loans &

Undivided

and

$

due from

discounts-

Surplus

and

undi¬

profits

a

functional entrance while

taining

the

directors

£

1894.
of

pointed
level

meeting held

in

DeCoursey Fales, President
135-year old institution,

part

tomers. A

common

stock

of

safer

the

plan will
access

new

entrance

extensive

an

holders

,

that

out

corner

of

tion

its

re¬

attrac¬

the

New York Jan. 4, the Marine Mid¬
land
Corporation voted to offer

of

architectural

tiveness of the building erected in

Govt, security

holdings
Loans &

At
259,569,835 250,110,569

and

Sent. 30 '54

79,233,404

_

banks

YORK

143,609,933

resources-

Deposits

COMPANY,

$86,436,897 $77,838,479

resources

Deposits

Total

228,908,231 237,904,636

holdings

TRUST

14,385,284

Dec. 31/54

vided

from

banks

50,866,604

*

NATIONAL

banks
Dec. 31,'54

977,296,696

52,550,850

Deposits

Total

COMPANY,

1,029,841,535

NEW YORK

U. S.

$

14,405,284

12,614,112

*

536,287,968

discts.

profits

&

SCHRODER

227,506.244

52,480,480

surplus-

5,278,473

12,037,611

499,559,659

*

50,807,085

*

84.377,355

4,658.999

494,076,822

se¬

holdgs.

*

discounts

&

J.

NEW YORK

due

Loans

Cash

58,940,180

26,799,340

85.045.118

resources

curity

31/54 Sept. 30/54

55,196,899

from

-

583,707,070

due

banks

Govt,

Surplus

holdings

Cash

105,075,462

—

Deposits

Undivided

CO.

&

207,241,010 199,249,154

banks

NEW

S.

1,917,817,720

U. S. Govt, security

Total

$

banks

and

from

$

2,028,542,721

*

$

Dec. 31,'54

due

Sept. 30,'54

Dec. 31/54

HARRIMAN

*

441,185,214

COMPANY, NEW YOfeK

2,279,456,084 2,156,370,338

resources-

Deposits

194,535,581

from

1,024,031

resources

com¬

company.

TRUST

152,139,101

239,616,364
—

due

and

Loans

it

Sloan

S.

Dec. 31,'54

U.

11,542,607

882,213

U. S. Govt, security

445,395.005

the

of

BANKERS

703,429,265

$

14.677.288

13,630,044

BANK FARMERS TRUST

and

York

by

Mr. Pelley is assigned to the

221,774,529 210.224,084
13,225,026
13,266,903

BROTHERS

resources.

THE

12,817,762

profits—

Undivided

New

Petroleum
Group at the
office, 16 Wall Street. Mr.
Sedgwick is with the Fifth Avenue

Cash

$

142,001,478

Dec.

security

Deposits

holdgs.

of

announced

President of the trust

Undivid.

11,061,806

discounts

&

and

Colt,

Sept. 30/54

204,427,735

discounts-

BROWN

Capital

holdings

Cash

THE

from
:

Undivided

$62,991,077

10,770,686

—

$

377,117,802

OF

YORK

713,252,770

banks

from

.

se¬

Company,

been

S. Govt, security

Loans &

Y.

51,381,519

1,390,358,758

BANK

556,493,645 550,839,629

and

*

S:

COUNTY

banks—

Total

has

Total

NATIONAL

$•

Total

Deposits

1,540,961,733

Pelley and Theodore

have been named As¬
sistant Vice-Presidents of Bankers

19,180,696

3,799,643

Undivided

William E.

branch

35,078,162

4,159,821

and due

#

Sedgwick

52,724,086

Dec. 31, '54

Cash

7,200,905

*

442,163,724

NEW YORK

58,400.235

Total, resources

Total

*

Total

BROOKLYN,

1,574,204.661

373,921,397

441,568,353

472,962,387

se¬

Deposits

CITY

210,246,731

7,568,700

profits

main

*

*

Loans

106,282,313

219,473.871

discounts-

&

pany.

holdgs.

se¬

*

U. S.

Loans

112,714,284

bank's

holdings

profits

KINGS

Cash

147,006,763

fiom

holdings

1,328,984,375

Dec. 31,'54

8

192,785,402

holdgs.

&

and due

1,493,883,378

banks

due

Govt,

Undivid.
.

■

209,262,145

banks—

curity
Loans

.

196,959,434

and

$

476,268,796
435,050,587

Govt, security

$

1,479,558,213

&

THE

TRUST

AND

214,030,369

resources.

from

Sept. 30/54

443,503,700

—

banks

Sept 30, 1954

#

PATERSON,

Deposits
Cash

COMPANY

YORK

16,042,276

Dec. 31, '54

Total

Cash

1,668,200,344

Deposits
NATIONAL

YORK

due

banks—

Govt,

MANHATTAN

due

Govt,

Total
♦

1,406,781,695

Deposits

THE

292,171,645

31, 1954 Sept 30, 1954
$

Total

20,721,437

242,523,346

360,841,485

profits

FIRST

YORK

142,444,319

Deposits

557,224,619
638,175,943

CITY

177,226,641

discts.

Undivid.

NEW

486,742,39.9

resources

459,692,529

23,623,004

se¬

holdgs.

&

OF

$

Office.
NEW

435,439,110
585,783,352

Undivid.

173,037,741

*

COMPANY,

S.

Loans

728,468,419

banks—

curity

1,574,689,125

642,404.803

and

from

>,

TRUST

Dec. 31/54

Dec. 31, 1954

U.

areas.

MIDLAND

se¬

resources-

Cash

MARINE

COMPANY

U. S.

discts.

curity

188,883,571

communities and

1,761,720.977

profits

OF

so that they can fully
growing needs of their

the

serve

Trust

$

744,600,064

of its banks

$

Sept. 30, '54

will be invested
capital
stock
of

due

Govt,

Loans

YORK

holdgs.

&

BANK

YORK

839,595,862

announced,
additional

Undivided

*

«g

is

ing with the corporation's policy
of maintaining the capital funds

31, 1954 Sept 30, 1954

64,679,889

Dec. 31, '54

——

and

from
U.

*

.

4 ■-

resources.

Cash

NEW

1,382,838,871

INCORPORATED,

CO.,

it

S

1,590,583,753

Deposits
J.

dividends

accrued

24, 1955. A considerable
part of the proceeds of the issue

ap¬

$

banks

Govt,

Total

THE

EXCHANGE

were

due

2,256,656,570 2,134,914,827
47,264,940

ing price plus
from Jan.

Secretaries.

BANK,

NEW

Division.

Woolworth

S.

curity

1,279,235,787

profits

Marache & Co. has agreed to pur¬
chase
from
the corporation
the
unsubscribed stock at the offer¬

and

1,786,600,818

:

and

Undivid.

1,445,717,409

discts.

<fc

Undivid.

:

se¬

holdgs.

curity

Loans

poration; Union Securities Corpo¬
ration;
Schoellkopf,
Hutton
&
Pomeroy,
Inc.
and
Granbery,

THE

Hume

due

banks—
Govt,

the

Assistant Trust

Elliott

Mittwoch

resources-

Loans

5,072,422,489

is associated with the Irving's 39th

at

from

to Assistant
Michael
F.
Ball

an

S.

HANOVER

from

U.

5,378,938,699

Corn

Street

Vice-Presi¬

Robertson

Secretary

B.

Cash

Sept. 30, '54

Loans & discounts.

34th

E.

appointed

Total

5,573,758,743

Branch Office. Joseph W. Walker

Chemical

As¬

Assistant

to

Assistant

James

and

YORK

5,908,131.518

resources-

W.

the staff of the

Henry C. Farrand is
the

Officer;

from

$

$

share

each

in

Dec.

THE

Dec. 31, '54

Total

*

and

on

Irving's Personal

Inter¬

Division.

NEW

OF

for

common

ferred

Total

11,113,984

$

at

is at the Irving's 46th Street

has

OF

BANK

time up to and including
15, 1965, at the rate of 2.75

several constituent banks in keep¬

*

*

*

Deposits

Irving's 39th Street Branch
Eugene D. Dixon, also a
loaning and customer contact offi¬
cer,

B.

Assistant

109,302,278

11,274,205

stock

fellow, Jr., Glen K. Green and
Philip J. Orsi from Assistant Trust

THE

profits—

the

Vice-

Assistant

seven

Secretaries. Charles M.

gene

Jr.,

Homer

Trust

Falconer

pointed Assistant

from

also

were

and

to

Secretary

Arthur

515,560,727

The

Jacoby,

formerly

T.

Officer

458,450,175

on

stock

common

Vice-President; Charles C. Good-

was

$

564,344,125

—

Pitt

Officers

Vice-President.

YORK

Section.

Paul

Williamson,
Trust

Officer

Sept. 30,'54

Rulon-

Mr.

following appointments

AND

507,490,150

resources

Deposits

and

Development

dent;

$

New

of

Jan.

on

four

Alexander

due

banks

COMPANY

has

2,624,475,494 2,642,439,903

curity

TRUST

States

to

CORN

resources.

and

Division

Rulon-Miller

Miller is associated with the Busi¬

U. S. Govt, security

$

from

B.

were

Cashiers,

NATIONAL

located at the Irving's 46th Street

Dec 31, 1954

Cash

PUBLIC

CITY

Company

announced

election

IRVING

U.

Office

appointed Assistant

CIIASE

Fifth Avenue Office.

Deposits

John

and

Main

Assurance

Bank's

CHEMICAL

Office,

the

of

United

of The

Exchange

Total

Street

Life

.Equitable

Society

24th

Nelson

*

has specialized in the

advisory
boards
of
Chemical Corn Exchange Bank, of

46th

Assistant

35,759,785

Office.

Sharp

1942, in
charge of the Company's banking
relationships in the States of West

elected

Assistant

Mack Godsick of that office, Leon
Glackman of the Broadway and

38,823,757

the
Dale

since

Bros.

Office,
formerly
Cashier, was appointed
Vice-President,
and

profits

York

and

President

senior

Ave.

John

79,102,361

Irving's

since

December

J.
St.

39th

Ohmes

284,856,965

customer

Com-

York

the

of

86,145,905

the
Irving
ing experience in New York and
Pennsylvania.
He
is
a
loaning

son,

7th

holdings

Guaranty

New

and

Rodman

Undivided

Office.

elected

York

follow¬

Loans & discounts. 299,274,599

Applegate, who joined the
Company in 1939, is a loaning and

asso¬

Three

the

845,093,173

ciated with the

a

Harold

Total

Mr.

the Board. Mr.

been

3

ing promotional appointments:

se¬

Irving

were

land,

and

New

of

Jan.

on

944,826,937

William

Chairman of

1931

Company

985,651,523

Walker

Luther

pany

Trust

announced

830,056,311

Farrand,

on

Trust

Trust

#

discts.

&

William

was

Sharp

*

Dec. 31,'54

Vice-Presidents. Carl

New

announced

been

:-f

E. Chester Gersten, President of
The
Public
National
Bank
and

COMPANY,

$

*

910,721,574

eve

Counsel in

Staff

Legal Department.

Time,

preferred

into

end of 10 years. The pre¬
is
redeemable
at
prices
ranging from $52 V2 per share if
and John Rulon-Miller were
ap¬ called on or prior to Jan.
15; 1957
pointed
Vice-Presidents.
Both and thereafter at
prices scaling to
were
formerly Trust Officers. Mr. $50 per share after Jan.
15, 1965.
Ohmes
is
associated
with
the An
underwriting group headed
Technical Section of the Personal
jointly by the First Boston Cor¬
W.

Deposits

Vice-President,

C 1

Assistant

4%

any

at

Fred

U. S. Govt, security

Undivid.

990,949,762

5

L.

Eugene

847,343,976

Presidents

J.

Man¬

Department,
Parker, Jr. was

holdgs.

2,613,811,701

profits

of

and

named

se¬

York,

F.

883,150,007

Govt,

S.

Charles

and

made Assistant

were

ap¬

Officers;

in the Foreign

banks

banks—

curity

holdgs.

ciated

Sauer
agers

due

745,287,051

&

Heesch

were

Trust

18

of preferred equivalent to a price
of approximately $18.18 per com¬
mon share. A
purchase fund starts

Assistant

2,801,859,811 2,755,226,656

and

Loans

547,650,052

Undivid.

of

STRUST

$

due

Govt,

Government

3,052,678.274 3.002,165.624

resources-

$

banks

curity

Peter

the

Witt

R.

Personal

Dec.31, 1954 Sept 30,1954

2,600.445,256

and

Warren

pointed

each

stock held. The

Standard

The

shares of

George F. Burt, Ralph K. Pulis
and

NEW YORK

3,071,966,441

Deposits

II,

at

Dis¬

in the Out-of-Town
Organization.

Young
trict

24.

convertible

Jan.

A.

Harold

and

Small

K.

economic warfare.

MANUFACTURERS

Cash

Sept 30,1954

War

Assistant

as

a

Alden

THE

3,094,206.063

resources-

served

Company,

agency of

$

Total

World

Finance Officer for the U. S. Com¬
mercial

from
Dec. 31, 1954

during

Deposits

COMPANY

YORK

1928 and is in

charge of the Foreign Trade De¬
velopment Division. He is also an
area executive, his territory being
the Near East and a portion of
Europe. On leave of absence from

Total

TRUST

NEW

Mr. Lehovich has been with

the company since

Mr.

announced

GUARANTY

of

sion.

Jan.

Depart¬

Pell, Petroleum

Mr.

in Europe before

in

A.

for

share

one

common

Eastern

p.m.,

is

ment, and Rembrandt P. Lane, Jr.,

President,

to Manufacturers

European

signed

York,

foreign department.

came

in

Trust

with

New

Jan. 3 All three

on

bank's

the

of

Flanigan,

announced
in

Manufacturers

of

Company,

Horace

Assistant

appointed

John

the

of

subscription offer expires at 3:30

Assistant Cashiers were

Named

aggregate

an

shares

shares of

partment.

New York

chase

the rate of

Charles A.
Manning, Trust Department, and
Donald Scott, Jr., Petroleum De¬
Foreign

record Jan.

5, 1955, rights to pur¬
of
403,082
corporation's 4%
held Jan. .4, Fred W. Ohmes cumulative
preferred
stock, $50
par value. The new stock may be
subscribed for at $50 per share at
of

Farmers

York

cial staff:

CONSOLIDATIONS
NEW

week

following changes in the offi¬

Appointed
NEW

of

Bank
this

announced

York

.Thursday, January 6, 1955

..

street

which

is

moderniza¬

provide easier and

for

the

number of

bank's

cus¬

modern

in-

Number 5392

Volume 181

novations have
in

the

The Commercial and Financial Chronicle

...

been incorporated

alterations.

completed

the installation of

Foremost is

an

automatic safety door designed by
W.

Dolson

Rauscher,

Bank in collaboration

dent of the

Miller

Walter

with

of

engineers

Kunzel,

Vice-Presi¬
Ronan

&

Marshall,

of

Michigan.

at

sale price

a

each,

$32
to

be

the

holders'

the

The

share¬

in

set,

proportion

CITY

NEW

OF

Dec.

YORK

Cash

5,639,188,360 5,487,027,966

...

and

due

banks.,. 1,311,011,894 1,363,720,685
Govt, se-'

from

U.

S.

1,842,996,802 1,746,997,034
2,337,065,556 2,105,408,823

holdgs.

curity
Loans

discts.

&

Undivid.

♦

*

*

Van

Pelt

MacMillen,

Jr.,

Andrew
C.

bank

$7,462,000

by

the

issuance

ing

April

11,

in

William

and

have

been

dividend

the

mon

stock

of

the

bank

on

to

Office

Bank

scheduled

was

9:30

p.m.,

capacity

as

new

banking

but

in

874,950,364 911,557,932

and due

crowds

toured

facilities.

Park,

Homestead

residential

that

first

date.

16.,

elected directors of Colonial Trust

full
.

..

area,

The

the main street

of

to

a

surburban

opened

for

its

day of business on Dec.
.

.

On

a

Company. Resources of

Trust

and

*

,

Company are in excess
$300,000,000 and capital funds
more
than
$15,000,000. The
lending limit of the consolidated

12,558,946

13,684,806

profits—

of

*

are

stock¬

the

14

the

ratified

Chicago, 111.

bank

dividend

of Oct

will

be

Elmer W.
the

21, page 1608.
t

than

of

doubled.

the

the

American

Stout

is

Board.

I

an

MacMillen

is

Mr. Van
Alleghany

Inc.

director

a

Chesa¬

President of

is

Industries,

peake
Pelt

of

Corporation.
*

ton

Trust
Jan.

on

:i:

the annual

At

asked

*

meeting of Clin¬

Company of New York
authorize

to

will

stockholders

19,

increase

an

He's

be
in

Dialing

the bank's capital stock from 110,-

shares

000

of

$10

120,000 shares.
have

tors

of

dend

for

each

shares held of record Jan. 7.

Superintendent

of

dividend

be

Distant

City

ac¬

the

DIRECT

the

Banks,

will

a

11

Sub¬

ject to favorable stockholder
tion and to the approval of
stock

to

divi¬

stock

a

share

one

value

par

The bank's direc¬

declared

paid

Feb.

1955.

10,

♦

John

W.

*.

Lincoln

The

Brooklyn,

x

Hooper,

President

Savings

N.

has

Y.,

Bank

of
of

announced

One of the many

the following promotions: Edmorrd
G.

signs of

progress

in the

telephone business is the development of

Murphy to Vice-President and
Comptroller; August H. Wenzel to
Vice-President, Preston B. O'Sul-

Direct Distance

Dialing.

livan, Stanley T. Jahoda and John

Distance

F.

Vogel to Assistant Vice-Presi¬
three additional adminis¬
trative officers: John L. Corvaia,
dents;

Advertising

Murphy,

Manager,

Personnel

James

Officer,

M.

•

*

*

Kings County

31

at

Lewis

of

as

members of

Trustees.

of

office

Fuhr

Mr.

the

started

❖

N.

Y.

announced

that

27

December

now

Y.

holders

of

business
entitled

and

to

record

Dec.

on

28,

notice

to

vote

1*6

a

of

will

the

So we're

program

in¬

per

share

and number of shares
outstanding common
from
$10
and
666 500.

respectively

to

$5 and
effective

resoectively,
of

stock

issuance
dend

of

a

payable

record

on

the

Jan.

bank

service and
more

increase

of

1955;

(c)

of

the

DIRECT DISTANCE DIALING is easy
three

sale

of

133,300

additional-

shares, of the par value of $5 each,




more

A

common

stock of the bank to $7,393,000 by
the

and

BELL

the

divi¬

towns

further

to another improve¬

a

greater use of the telephone by

more

people.

11,

to shareholders
11,

way

telephone service. As Direct Distance

com¬

by

$61,500 stock

Jan.

our

from coast to coast.

1.333,000

1955; (b) An increase of the
mon

on

areas

Dialing becomes available in more and more

of the bank's

stock

in these places "can

places, along with it will come even faster

value

par

users

Long Distance calls direct

14 million other telephones in

as

metropolitan

ment in

meeting

volving:
(a) A change in the

own

be

1954

of

upon

close

the

at

dial their

to as
many

Hempstead Turnpike,
Square, Nassau County,
on
Jan.
11.
Only share¬
315

Franklin
N.

is in the

%

Many telephone

on

meeting of the shareholders of the
bank will be held at its banking
house,

operating and account¬

Michigan.

r

annual

the

as new

Columbia, New Jersey, Pennsylvania,

Ohio and

Roth, President of the

Square,

requires co-ordination all along

well

Massachusetts, Maryland, Virginia, Dis¬

trict of

Franklin National Bank of Frank¬
lin

all

practical operation in more than twenty towns
in

staff in 1939.
£

Long

come

planning stage for most places, it is now in

as

on

X-

for it

While Direct Distance Dialing

Palmer,

Arthur T.

faster outown

Board

April 1. 1901 and
who
became
a
Trustee in 1933, joined the bank's
boy

Mr.

even

by dialing their

ing equipment.

Office and Alfred
Paull
Palmer, Secretary of the
bank since August, 1939. Both will
Broadway

remain

once

the line, as

Fuhr, Vice-President in charge of
the

enjoy

users to

Distance calls direct. This will not

Savings Bank,

Dec.

on

telephone

of-town service

of.Brooklyn, N. Y. announced the
retirement

objective is to make it possible for

*

Charles D. Behrens, President of
The

straight through to the distant tele¬

Our
all

Junger to Assistant Cashier.
;

50% of all Long Distance

more

phones.

Hoeberlein
and
Henry Pieron to Assistant
Comptrollers; Rudolph J. Wittine
to Assistant Treasurer; August W.
Howard

time. Last year, operators

than

calls

retary; Edward J. Puttre to Deputy

Auditor;

some

dialed

and
Sec¬

Peter M. Sweeney, Assistant

dialing by operators has been in¬

creasing for

P.

areas

can

digits than
reach

as

a

local call,

many as

from coast to coast.

many

and faster. Just by dialing

telephone

users

in certain

14 million telephones in 16 metropolitan

TELEPHONE.

The

consolidated

Na-r

Office, which is 45 North
Pennsylvania Street, Indianapolis.
The enlarged bank has 17 offices
throughout Indianapolis.

referred to in our

■i

more

tional

$10,000,000.

of

office

bank

pro¬

is

main

$90,000,000 to $100,000,000 by

The plans were

Trust

announcement made
Dec. 30 by that institution. Mr.

on

named

American Fletcher National Bank

Company, of New York City, ac¬

cording to

is

and

December

stock

bank

Fletcher National Bank

316,147,770 312,089,564

posal to increase the banks capital
from

consolidated

American

holders of the First National Bank
of

Indianapolis

251,344,464 260,679,501

holdings

issue

...

The
280,986,004

264,869,725

Loans & discounts-

beyond

National Bank of

under the latters National charter.

from
-

Undivided

consolidated with the Ameri¬

was
can

from

ran

on

$

998,727,245

U. S. Govt, security

house held Wednes¬

office, located

respective holdings of com¬

proportion

Cash

*

1955, will be entitled to share in
such

dur¬

Mellon

Munhall,

Effective at the close of business
December 31, the Fletcher Trust
Company of Indianapolis, Indiana

Trust

Pa.

which officially opened the

that

on

and

of

new

$69,000 stock dividend. The share¬

record

Bank

office

gram,

6:30

of

(Pa.)

of Pittsburgh,

open

an

BANK,

$

965,847,447

resources

21

June 30,'54

Dec 31, '54

residents visited

area

National

NATIONAL

PHILADELPHIA, PA.

this meeting.

day night, December 15. The pro¬

a

holders,

PHILADELPHIA

THE

banks

the

of

di¬

will

JJ;

Munhall

Company

bank. to

the

of

stock

common

new

Mellon

that

on

their

59,143,447

52,662,613

profits

the

sji

of

year

Deposits

the

$

6,323,104,786 6,016.340,492

resources.

Deposits

of

date; (d) A further increase of

$
Total

stock

BANK

31,1954 Sept 30, 1954

Some 2500

respective holdings of com¬

mon

*

V

board

a

ensuing

Total

to

their
*

NATIONAL

THE

of

jJ;

accorded

price

the

for

also be voted upon at

share¬

Jan. 11, 1955

on

election

rectors

rights to pur¬
those additional shares, at

be

chase

the

at

meeting.

holders of record
will

The

of between $30 and
definite sale price

determined

(77)

SYSTEM

Chairman of

£2

The Commercial and Financial Chronicle

(76)

indicated that it should be

Our

be.ieve

Reporter oil Governments

wide

a
range even though there is a modest downtrend evi¬
these price movements. The defensive atlitude which is

authorities

due

mainly

threw

into

the, confusion

to

the

market when

money

'

they

of

interest

inuebtedness in registered form or

with

it

seems

the^e

though

as

V,hat "active ease"

known.

*now,

economic pattern develops will

will

be

change

no

whether

and the way in which the
inc.icale whether monetary policy

though it will take

as

place.

It is becoming

known

oe

about

the

evident that much

more

future

trend

changes in monetary policy.
factor in this situation.

a

Government
The money

Market

on

a

than

as

it

absence of interest in government securities because of

has today,

tainty
It

tions
in

and especially

is also evident that
not

are

these

going

issues,

to

count

really

any

the

change

is

nothing

new

changed

or

in

method

mine

whether

a

sudden

cause

will

be

may

of

course

economic

conditions-will

have

to

create

a

larger demand for

so

ten-ye^r 3%

this does not

stateu

amount of discount, the
redemption price at ma¬

to

turity

is

for

up

52%

value.

Each

purchasing

by

2.9%

for

The

taxoayer.

have

is

has

R

the

hmo

In

vides that

terest

by

ircome

buys
and

issue

hoids

discount

in¬

individ¬

an

at,

such

of $50

price of

a

i^ue for

maturity,

to

:years

dis¬

a<?

$1,090 face value bond

a

the

will

ten

none

is

be treated

sale

upon

or

as

re¬

More tech¬

of this interest in-

taxable

actually

until

sold,

ple sold

in

it

the

does

bond

iwould

be

$5

•year

end

of

potential
sale

on

interest

is

held

purchase

to

at

maiurity.

t.he

$25

If the

and

sad

en^

If
the

of

crued

231 So. LaSalle Street

CHICAGO 4
STate 2-9490
New York,

January 3, 1955




15 Broad Street

NEW

YORK

5

WHitehall 3-1230

45 Milk Street

BOSTON 9

IIAncock 6-6463

ordinary income at
cf the

before

b^d

is made

maturity

at

a

price greater than the amount of
discount

Municipal Obligations

at par.

as

which

have

wou'd

interest p

bond's life,

rata

o

i.e., $5 per

ac¬

ever

year,

the

such

additional amount would be capi¬
tal gain.
Accordingly, in the ex¬

ample just given,
holder of the
the
he

end

of

would

bond

five

have

be

may

bond with

a

a

discount

the

would

capital

as

gain

ultimate

upon

redemption

Note, however, that if the

issuance

price

exceeds

then

allowable,
will

discount

pgr

the

treated

be

entire
in¬

as

terest.

able

if

the

original

had sold

years

$25

for

of

to

write

of

t;

the

inary

or

eating it

the

to

premium.

off

premium

income, instead
part of his cost.

as

it

at

$1,000,

ordinary

provisions allowing

losses,

the

technical

provisiohs of the

statute appear to leave ope "loop¬

hole.'?

This has to do with the

"bonds"

spe¬

banks

to

bond

r

still

mu.t

be

in

registered form or have cou¬
pons attached.
In all ca es, the
indebtedness

corporation
Two

The

issuea

be

must

by

a

government.

or

"Loopholes"
law

tax

new

"loophole"

Closed
also provides

closers.

First,

it

puts an end to the practice of de¬

taching
bonds

ii terest

for

t

e

took the form of

years'

coupons

the bond

at

of obtain¬

The transaction

detaching several
and
then selling

discount.

a

from

coupons

purpose

ing capital gains.

The

pur¬

chaser held the bond until the pe¬
riod for which the coupons had
been

detached

had

and

expired

then resold t" e bond without dis¬

in

count;

effect,

income

interest

his

converting

into

capital gain.

the seller retained

course,

the

interest coupons and realized ordi¬

The practice is

income.

nary

effective

provic.es that
riod

beyond

it

law

any

coupons

bond purchased

income

the

to

a

pe¬

from

year

purchase, will

equal

new

detached for
one

ordinary

sale

in¬

the

that

now

with

date of

The

carry

the

with

eventual

on

difference

be¬

re^

tween the purchase price and the
bond beforie its date- fair market value of the bond at
of maturity.
The wording of the the time of purchase with the in¬
statute is that the only amount of terest
crupons attached.
discount which will be cqnsiuered
The other loophole closing pro¬
as ordinary income upon-- redemp¬
vision deals with the tax treat¬
tion is the proportionate amount
ment of bonds with an eariy call
for the period for which ithe bond
date. In this case, Congress' plug
has been issued.
Thus, on a ten- is
already showing a substantial
year $1,000
bond issued at $950 leak.
Th^ tax advantage under
and redeemed at par at tb~ end of the old law
was derived fro n the
c

.

em'ption of

a

.

five

years,

only

have

would

to

$25
be

income

ordinary

be

would
filled

be

of

the

picked

gain

up

as

the

other

capital

gain.

and
a

future

by

,'statutory

amendment is yet to be seen.

Importance

of

New

Bond

To

Tax

taxpayer's privilege of writing off
over

period

a

within 30

could

all

ducted

Rules

Buyer

be

days, the premiums
written, off

within

to

par

for

sold

mium

price,

tween

the

buyer is obvious.

The wjay things

basis would

the

of

bonds witn jthe same
selling at the sa^ne price,
widely different tax

two

stand,
terms,

have

may

and

period.

de¬

This

and if held for six months

then

tfiese new
conscipus bond

to

that

reduced t.e tax basis of the bond

tax

importance

rules

the

date, any bond pre¬
purchased. If the call date

mium
was

with

ending

call

nearest

and

The

the

the

premium
be

same

difference
the

ana

pre¬

be¬
tax

capital gain.

The

effect of -the transaction is to

con¬

vert

orainary income into capital

gain.

significance depending on whether

Congress chose to close this gap
issued at a dis¬ by providing that such write-off
count. On each purchase of a bond of
bord
premium
is
allowable
issued
after
Dec.
31, 1954, the only if the early call date is more
bu er must truck down its orig¬ than three
years after the d-te of
inal
issue
price
to
determine issue. Such restriction, however,
whet' er
any - of
the- discount is to apply only to bonds issued
01*

time

applies

so

words, the investor who

against

C/f

holder's

year

to

original

an

is

treated

the

Imaturity.
anv

State

be

date

discount
on

V4

discount
than 5%? could be ignored.
life,

-

foRows

interest if

ben"1

such
Thus,

result

the

purchaser

INCORPORATED

United States Government,-

The

than.

issuance

fron

year

less

is

be

redemption;

or

the

to

new

jU-e

Secondly, it' the original

Whether this apparent "hole" will

"taint"

that

so

igain and

in

as

$25

$25,

or

•fifth year were at $950. the pur•chaser
would
have
$25
capital

Specialists,

bond¬

any

$975,

rat $nr"5 wiH realise $25

Aubrey G. Lanston & Co.

provision.

new

that

is

the difference

ordinary income. Each
the original disccunt

interest

tbond

exam¬

of

^realized
iThe

bond

a

the

at

bond
accrue

nrevious

our

the

each

original

exchange of property which is
a capital asset.
Under the old

While

no

cf less

than" cmital

if

purchase.

purchases corporate mortgages or
notes at a premium wLl now be

the

avoid

purchased a bond
may
ignore the
matter w. at the original

discount.

2C-year

pro¬

ue

cmsi "er<~d

rather

its original

$950

row

"origira1 is

be

five years for $975,
ibetween
$950 and

relationships.

face

premium

a

ignored.

Interes* Income

For examnle.

becomes

customer

at

clear

maturity,

any

a

the

know

to

of the definition

to amortize the

other

In

two

this

holder who l

limited

the statute

shall

pnrchpser

trading activities and

transactions

Certain

tax¬

after-tax

month by month so that if

our

"bonds"

of

election

price of the bona to know his tax

of

Through Discount

effect,

count"

.is

duties in connection with

than

purchaser will

dig out the original issue

out

same

an

somewhat

Considered

icome

with general

bo. d

restriction

law.

new

Gain

|

Vice President of this firm

rather

used

One

ap¬

.law it, of course, would ha\ * been

a

the

50%

a

•capital gain.

has been elected

ing

discount

a

not

Bpard of Governors of the Federal Reserve System

In find¬

redemption value.

discount

or

of Research and Statistics of tJie

of

it

act ermine

from

this

ute, it would be gain from the sale

formerly Assistant Director

effect

This extension

that

so

to

order

take ordinary deductions f

nically, in the words of the stat¬

of the Division

in

cial

of the redemption'price for

a^

Mr. C. Richard Youngdahl

the

involved,

issue

Key

to announce that

are

force,

discount

dctern ine the amount of cdscount

run

demption of the bond.

pleased

issues

piivate

Where

sold.

were

in

However, with respect to the

(to yield 5%)

ordinary income

are

substantial amount

a

bonds

cf 1%

ual

We

pmce

sueu

iincome into capital pain continues

mean

Accordingly, unless there is something in the business or eco¬
nomic picture in 1955, such as run-away
conditions, there may be
no change in
monetary policy, even though the authorities have

is?ue price is the initial
price
te the pabhc, at

rules

gain.

Barometer the

w.Ac.,,
of

securi¬

discount for re-gistere^.

ties, the
of.ering

:yield of only 2 5% it a 5% bond
were purchased at ra'\
WhFe thioppor'unity to convert ordinary

the future trend of interest rates.

Business

capital loss would be incurred.
In tracing down the original is¬
sue

respect to original issue
are

important

tax

six

for

capital, asset. Here,
rules previously cov¬

such

the

the

owns

indebtedness

be

unchanged and a $25

long-term

The tax

and

bond at

would

payer

hardening of interest- rates.
money,

thep the

$. 23,

in

holder

c

a

the

iscount

status.

taxes

after

be

The supply of goods is ample
that the inflation fear is not expected to be a factor in

for

t

will

If

$25 of capital gain.

were

d rdes are

have to

a

that interest rates will have to go up.

enough

which

individuals

Buyer

pur¬

price paia by the first bay~r will

fact,

"in¬
rates, with

gain

sale

yield

rates, is net going to undergo important changes all of
the opinion of certain money market specialists, be¬

future

result

o

ered with

mort¬

like

the

iscou it and redeemed

a

as

again,
c

common
as

a

in

is,

income and

the
o

corporations, is clear. This is il¬
lustrated by the fact that the net

Even though the trend of business is expected to be good, and
may

rate

in

the

known before there is likely to be any
this

It

caoital

rates

bracket

charge in monetary policy.
policy, which greatly influences the trend

interest

receiving

proximately

a

months.

ceiling instead of at ordi¬

for

91%

Big Question

there

not

or

Federal Reserve credit
of interest

of

of, say, 13%

answered, since the trend of economic conditions is going to deter¬

bond

six

money.

at

25%

nary

of

The big question in the money market now is when will there
be evidence of the clanged policy?. This appears to be a question
which is not going to be answered immediately and may never be

the

of receiving interest.

terest"
a

doing things.
The

is

if

than

coupon

advantage

in

in

there

for

rale

the money market, but this is due to the an¬
change in monetary policy, and not due to any
specific action which has been taken by the powers that be in
putting the new policy into operation. So far, the "open mouth
operation" is the only thing which has been used by the monetary

but

long-

the bond and the going interest

on

longer-term

nouncement of the

authorities,

gain

more

the

tween

monetary policy, there is
nothing yet in the way of tangible evidence as to what, when and
how this will be accomplished.
To be sure, a defensive a'titiue
has been created

lor

way

ancunced

the dis¬
as

place, discount gen¬
erally represents the' variation be¬

the monetary authorities.

Despite

maturity

Jn the market

important commitments

particularly in the intermediate and

the

increase from

capital

held

uncer¬

until something is known about the "flexible ease" policy of

one,,

collect

price wi 1 be taxed

,term

when it is due almost entirely to

The

premium.

at

or

to

.value, the

prospective buyers of Treasury obliga¬

make

par

is that when the time ro^s

.around

what might happen to the future trend of interest rales.

over

at

;reason

lines. It
professional set-up

an

Lawg

months

Affects the Eoid

year

market to have

and

will

par,

such

indebtedness

notes,

at

How the New Tax

in the Government market pretty much on the side

tors

page '

attached.

coupon

mean

of

evidence

Time is very

ties is going to be like. It is this lack of understanding of the indi¬
cated new policy of the Federal Reserve Board which has opera¬
is not too good for the money

from first

Defensive

new

interest

1

will

capital gai.i i

with a feeling of
caution, because it is not possible to predict with any degree of
certainty what the "flexible ease" po'icy of the monetary authori¬
market is entering the

not in registered form

forms

before

conditions

there will be important

definitely

will have to

more

economic

of

Continued

by

upon
or

chased at

time before it will actually take

some

wit

or

This

not.

or

issued

treatment will
be
their redemption

gain

available

in

This wi .1 take some time yet,

changed

evi¬

other

or

-

indebtedness

gages,

is

debentures,

corporations after Jan. 1, 1955, the

Despite the pub'icly announced change in monetary policy, it
seems

of

attached.

coupons

certificates,

notes,
dences

monetary po icy until the future course of the business picture is

was being superceded by "flexible ease."
Up to
however, nothing tangible has happened as far as the new
-policy is concerned to give evidence of how it will be. carried out.

interest

interest-be ming

For

capital

Therefore,

announced

of

to eviuences

1L1 itcd

was

par,

by the

that, would most likely be put into operation

capital gam when redeemed at

as

rates

authorities.

the -monetary

which

than

ease

*being witnessed in the middle and longer maturities -of Treasury
obligations is

tightening

material

a

the Federal Reserve authorities.
On the contrary, should the business upturn show signs of
tapering off during the Spring, and especially if there should be
evidence of a n.w cownturn, a monetary policy to help the busi¬
ness pattern return
to normal levels would be expected. Accord¬
ingly, the reesk b ishment of the "active ease," or even greater

By JOHN T. CHIPPENDALE, JR.

-too

having oiscount on bonds

wou'd be the policy of

The Government market continues to back and fill within not

dent in

then

dangerous,

of
treated

possibility

the

Previously,

On the other hand, if indusr

expected.

reach levels which the monetary authorities

tiial activity should

Thursday, January 6, 1955

...

not

they

earned

will

upon

be

were

eventual replemntion,. after Jan.

treated

as

ordinary

in¬

come.

As

"Other

changes made by t' e In¬
ternal Revei ue Code of 19 A with

respect to the
be noted.

after Jan.

bond

buyer should

to

1951

22,

and

acquired

1954.

22,

bonds

issued

before

Jan.

22, 1951, or bought before Jan. 22,

1954, the coor

was

example,

in ividual

bond

at

an

115,

!eft

callable

ooen.
-

For

buys

a

in 30. days

Volume 181

Number 5392

•

The premium could, there¬

at 102.

off within 30 days.

fore, be written

result

wou'd

This

in

a

Life

deduction

"The

and

subsequently

for

the

same

premium at which it is

cur¬

sold

rently selling, the taxpayer would
have a capital gain of $13. If we
can assume the taxpayer is in the
70%
tax
bracket, his deduction
him

gave

benefit of $9.10,

tax

a

which, after deducting the capital
gain tax of $3.25,
net gain of $5.85.

him

leaves

a

As in all transactions where tax

the

World

of

billion^since Hose

$19

W^r II and

30.6%

eff

now

life

total

comprise
insurance

assets.
An
now

from

estimated

of

to

S.

life

U.

panies,
lion

loan

on

billion

property
of

is

owners

insurance

increase

an

com¬

bil¬

$2.4

year ago, the Institute
Life Insurance reports.
over

life

.past

a

During 1954 the life companies
saving is involved, the Internal,
of this country extended new real
Revenue
Service
is
scrutinizing
estate mortgage financing in the
these
transactions
very
thor¬
amount
of $5.1
billion.
This
oughly.
amount was exceeded only once
To'

summarize,

Code

throws

at the

his

the

forecasts

construction

boom

as

surprise,

a

the start of

at

as

the

had

mortgage money
loaned by the life companies in
the year just c'osed was nearly
new

$800 million more than in the pre¬
vious year. This parallels the sur¬

of

billion

$19

today

billion,

more

the

outstanding at the close

was

World

The

II.

War

housing

FHA

represented by 'this financing has
given new homes or newly pur¬

the

chased

the

sons

homes

of

1954

per¬

the country.

over

An

millions

to

were

mortgages
istration

and

of

At

The
ance

investment

dollars

in

life

of

real

mort¬

first

9%

the

VA

mortgages,

written

time

over

U.

since

ar-i

1930

the previous

year.

insurance

life

S.

the

at

pared

with

fore

War

boom in

under

under

totaled $4.45

end

of

29.7%

14.8%

and

World

the GI Bill of Rights,

mortgage holdings of the
topped $2 billion

companies
the

assets

before.

insur¬

estate

holdings at
were
$6.15

and
year

panies represented 30.6%

growth of housing starts year-end, the conventional urban
last year, when the estimated 1,mortgages held by the life com¬
150,000
starts
were
the second
panies totaled $13,125 billion, up
largest in history."
$1.3 billion or 11% from the year
Since War

the

Aggregate mortgage investments

Admin¬

leading.

prising

Up $19 Billion

of

Farm

life

conventional

Veterans

mortgages

II,

at

1954,

the
the

just

com¬

of total
coir—

be¬

year

close

housing construction got

way.

new

pitches:
(1) In purchasing taxable bonds
at

discount,

a

count

original issue

recovered

will

demption

on

be

sale

dis¬

or

ff ^

re¬

as

treated

or¬

..*».• ...v.

-.......

.y.y.

^

r:S

dinary income rather than capital

gain

bonds issued after Dec. 31,

on

1954.

(2) Firrbase of bonds with

C V A

of New York

cou¬

detached will ro longer re¬
capiial gain becru-e of the

pons

sult in

discount

such

for

detached

&

cou¬

MAIN OFFICE, 140 Broadway

pons.

TTTMle

(3)

the

the

to

respect

is

premiums

of

bond

no^siHe

still

&

with

advantage

write-eff

with

MADISON AYE. OFFICE

ROCKEFELLER CENTER OFFICE

Madison Ave. at 60th St.

AYR. OFFICE

FIFTH

40 Rockefeller Plaza

I ifth Ave. at 44th St.

respect to certain bon^s, there are

other bom's which wFl no
longer eualify for the tax b'eak

£

many

'he premium

due to

(4)

write-off.

.32 Lombard

of indebted¬

4 Place de la Concorde

St., E. C. 3

Push House, Aldwych, W.

BRUSSELS OFFICE
27 Avenue dea Arte

C. 2

issued by corporations in 1955

ness

will

later

or

evidences

AU

PARIS OFFICE

LONDON OFFICES

be

in

treated

a

like

whether or not they are
in registered fovm
or with
cou¬
pons attached, tl us
entitling the

manner,

purchaser
ment

to

the

on

caoital gain
redemption.

treat¬

J.IUTHER CLEVELAND
Chairman of the Board

WILLIAM L. KLEITZ
President

Chas. WriSsranion Go.
Admits Four Partners
NEW

P.JERMAN
Vice-President

THOMAS

HAVEN, Conn.—Leslie B.

M. Flanagan and

have

all

Gordon E. John¬

been

admitted

r IR ECTORS

Cash

Hand, in Federal Reserve Bank, and Due from

on

Banks and Bankers

Chairman
oj the hoard, Duke Power Company

CLORGE G. ALLEN

J. LUTHER CLEVELAND Chairman
oj the Board

CONWAY

W. PALEN

WINTHROP M. CRANE, JR.
Chairman oj the Board,
Crane & Co., Inc., Dalton, Mass.

.

„

.

.

,

•

.

0

.

.

.

.

*

0

.

.......

.

M. CROCKER'

'

.

.

Stock of Federal Reserve Bank
Other Securities and
on

.

58,024,405.87
.

44,949,205.50

•

Accrued Interest and Accounts
Receivable

12,597,053.23

Real Estate Bonds and

Mortgages

.

•

McKeon

178,120,831.42

1,002,070.43

8,164,636.56

.............

Chairman

oj the Board,

JOHN W.DAVIS
of Davis Polk
Wardwell Sunderland & Kiendl
G.

Stephen

jWua

1,369,320,780.12

9,000,000.00

.

Total Resources

.........

0

.

The Columbia Gas System, Inc.

L ess

547,650,052.99
990,949,761.82

52,548,095.39

Obligations

Acceptances

$

o

.

.

.

Bank Premises
STUART

.

.

Public Securities

Credits Granted

P. COOPER
President,
The Presbyterian Hospital
in the City of New York

CHARLES

...

Obligations

Loans and Bills Purchased.-

to
■

of Condition, December 31, 1954

RESOURCES

U. S. Government

Swan, Stephen G. McKeon, John
son

Condensed Statement

$3,094,206,062.91

LIABILITIES

President,

CHARLES E. DUNLAP

The Lerwind-Wbite Coal Mining

Company
WALTER S.FRANKLIN

President',

Island Rail Road Company

I be Long

Capital (5,000,000 shares
Surplus Fund

.

.

oj

.

$100,000,000.00

.

,

200,000,000.00

.
.....
.
.

10.0,598,028.39

.

JONES

CORNELIUS

F. KELLEY
Chairman
of the Board,

Anaconda Copper Mining Company
WILLIAM

.

.

.

.

Undivided Profits
Chairman
the hoard, Cities Service Company

W. ALTON

,

$20 par)

,

Total

Deposits

Capital Funds

.

.

.

.

o

.

...

.

Foreign Funds Borrowed

.

o

<

.

975,000.00

Air Reduction

of the Board,
Company, Inc.

$

Acceptances
Less: Own

61,745,719.79

$

Chairman

CHARLES S. MUNSON

400,598,028.39

2,600,445,255.94

,

President

L. KLEITZ

$

47,407,754.86

Acceptances Held for

Investment

14,3;'7,964.93

.......

WILLIAM C. POTTER
GEORGE E. ROOSEVELT
John

.»i.

i

oj Roosevelt & Son

idiiuga.

partnership in Chas. W. Scranton
& Co., 209 Church Street, mem-'
hers

of the

New

York

Stock

Ex¬

change, the firm announced. Wil¬
bur G. Hoye will retire as a gen¬
eral

partner

limited

and

announcement
The

who

present
of

Paul

W.

become
the

firm,

a

the

added.

general

continue

will

direct;on
are

of

partner

the

the

firm's

partners

general
business

Redfield, William J.

Falsey,

Frank

Edward

A.

M.

Johnson

and

Burgess of New Hav¬

Bertram B. Bailey of Waterbury and Paul L. Sampsell of
en,

New London.




CARROL M. SHANKS
President,
The Prudential Insurance Company
oj America
EUGENE W. STETSON

Chairman,

Executive Committee,
Illinois Central Railroad Company

KENNETH C. TO WE
President,
American Cyan am id Company

TEIOMAS J. WATSON
Chairman
of the Loard, International
Business Machines Corporation
CHARLES E. WII SON
Trustee,
The Ford Foundation
ROITRT W. WOODRUFF
«
Chairman, Executive Committee,
The Coca-Cola Company

Dividend

Payable January 17, 195 5:

Regular

.........

Extra

•

.

•

.

«

Items in Transit with
Reserve for

.

..

.

Foreign Branches

Expenses and Taxes

Other Liabilities

o

;

.

.......

Total Liabilities

4,000,000.00
2,500,000.00

2,505,880.09

26,784,672.16
8,989,471.47

.....

.

92,187,778.58

$3,094,206,062.91
i

Securities carried

fiduciary

at

$141,235,190.74 in the above

powers, to secure

public

moneys as

statement are

pledged

to

qualify for

required by law, and for other

Member Federal Deposit Insurance Corporation

purposes.

o£

the

before

Revenue

following

J Iti

billion, up only 2% from 1953.

the

with

24% 'In

in smaller volume than,

before

year

end

for

year,

or

acquired

mortgages

were

shift in type of
mortgage making up the port¬
folio additions developed during
important

past

$900 million

up

year.

He must keep

the

on

came

is

gages

number of curves'

a

bond buyer.

eye

the

new

indicated a decline in
such financing," the Institute said.

.year

Summary

before, in

of

extended by
companies this

insurance

year

most

total

financing

"Instead, the

$25.75

less

by

than

near-record

lortgage

Uo

then

and

tlpan 1%.

of

$13 and a reduction of the base
to
the call price of 102.
If the
bond were held for six months

1951,

of

year

Company Mtge.

23

(79)

The Commercial and Financial Chronicle

...

I

24

Outlook for the Bond Market

Greene & Company

Bank and Insurance Stocks

Marks 25ih Year

In

year-end bond survey, Halsey, Stuart & Co. Inc.
continued high volume of tax-exempt state and

a.nnual

predicts

Irving A. Greene, Senior Part¬
ner
of Greene and Company, 37

By II. E. JOHNSON

a

municipal bond issues, along with

Wall

This

Week

in

Street, New York City, an¬
nounces that this week marks the

Stocks

Insurance

—

Insurance stocks turned

Halsey, Stuart & Co. Inc. in the ing was down from $240 million
$174 million, Halsey, Stuart
year-end bond sur¬ to
vey
predicted a continued high said. The lower volume of equip¬

firm's annual

quarter cen¬

a

The trend of share prices was unward

performance during 1954.

tury since the

the entire period.
Casualty companies made the more
spectacular gains but even. despite the losses sustained by the
fire
companies, in the fall hurricanes,
share prices for this

for almost

volume of tax-exempt state and
municipal bond issues in 1955 on

establishment

their

of

over-

group ended the year substantially higher than at the beginning.
The main reason for the excellent showing of the casualty

the

securities

more

underwriters

business

in

experienced in the auto
liability and property damage insurance lines.
Also, as with
fire companies, the rise in the stock market and the recovery in
bond

the

was

improvement

prices added substantial amounts to the equity

values

the

of

insurance

Another
has been
and

factor

rise

the

increases in cash distribution

stock

dividends

in

well

as

this

is

by

the

of cash

payment

these

In

the increased number of shares.
where such action is anticipated,

on

instances

the
particularly favorable.
presents the bid prices for 25 of the
leading fire and casualty insurance companies as of December 31,
1.954 and 1953.
In addition, the point change and the price range
for the year are shown.
All figures have been adjusted for stock
splits and stock dividends to put present prices on a comparable
action

market

The

the

of

tabulation

or

shares has

been

below

basis.
195*

Market Bid Price

December HI

1954

Aetna

Insurance

Agricultural

+18%

High

Low

80
37

25%

+

Insurance

34%

26
26

+

77

60
60

8%
+17

40%

33

+

7V2

43%

33%

96%

48

+ 48%

101%

48%

102

72

Continental

Casualty

Continental

Insurance

Firemen's

Falls

American

+ 31

28

+ 12%

40%

62y*

+ 12%

76

62%

32%

+ 10%

43%

32%

71%

Hartford
Home

Hampshire

Pacific

America

Fire

+

82+4

+ 24%

44-

45

+

9%

1

•

Fire

,96

Marine____

&

76

51%

Security Insurance

+ 18

44

36%

+

+ 31%

47%

38%

+

30

25%

+

States

Fire

Guaranty

Westchester Fire
be

in

seen

the

above

than

more

adjustment

is

a

A

others

Of

of

course

at

index

322.44, the

index

was

index.

As

trial

show

high

9%

At

average.

against

in

the

many

year.

This

end

52

37%

4%

30

25

during

of

the

U.

does

S.

between

are

At

was

for

the

Fidelity &

40%.

of

1954

this

and

all

dicated.

280

at

of

about

of

1954,
in

63%

stocks

charge

Dietrich

M.

has been

Market

Money

of

was

around

index

year

have

obscures certain

not

made

Nevertheless, the

have done very

well

over

so

point

large
is

the

or

of 43%'

gairi

a

changes in stock prices
a

gain

made

that

might

as

insurance

be

in¬

stocks

the past year.

NATIONAL BANK
Bankers

INSURANCE

to

the

Government

STOCKS

Office:

26,

End

(London)

Laird, Bissell & Meeds
Members New York Stock

Exchange

Members American

Exchange

120

BROADWAY,
Telephone:
Bell

Stock

NEW YORK

BArclay

5,

N. Y.

7-8500

Branch:

Teletype—NY

1-1248-49

Manager Trading Dept.)

SpeeialiMt* in Bank Stockm




and

opera¬

Bank

Ftind

banking

and

exchange

Trusteeships and

business.

been

formed

with

offices

and

Executorships

also undertaken

the

coming

financing

year

the

by

be
by

liberalization

■

code," it said.

revenue

utility

to

debt

of

.

financing,

from $2.7

billion

in

the

corporated,
Building.

to

Officers

BEACH, Fla.

of

over

said

Halsey,

communications

converting

vanced

&

porated

aTe-

Presi¬
dent; John H.
Hawkins,
Amott,

Vice

,

Bank

»

-

Sec-

dent and

retary;
liam

J.

Baro-

Jr.,

>

W i 1Vice-

ni,

President

and

member of the

R- Amott

Harry

York'

Exchange; Wilbur J. Jans-

sen,

Security Dealers

Association and has served
District
ness

Committee

13

on

and

Committee

Conduct

National Association

the

Busi¬
of

the

of Securities

Dealers Inc.

El Salvador Bond

Offer Extended

Stuart.
field, it

Holders

vador,

of

Republic of El Sal¬

Customs

demands

to

the

gas

First

Lien

8%

for

Series C, dated July
1,
1923, due July 1, 1957; and Certif¬
of

demand

icates

far

The

service

facilities

ad¬

and

new

equipment.

natural

for

Certificates)

issued

with

Bonds

Series

C,

ex¬

providing

to

Deferred Interest

in

vertible

fied that the time for

years

are

contemplated.

for

3%

Con¬
Ex¬

Sinking Fund Dollar Bonds,
due Jan. 1, 1976, are being noti¬
the above

dor

exchanging

bonds and appurtenant

coupons

1953

vand
its

another

estimated

Public

1954, is expected to

Sinking Fund
Jan.

in

in

1955,"

offerings
of
railroad
increased from $56 million
1953 to $267.5 million in 1954,

bonds

for-Republic of El Salva¬
4%, 3%%, and 3% External

rise

the
survey said. As in the past several
years, the bulk of this will be for
housing, it added.

,

Certificates

(Scrip
respect

and

ternal

"Real estate mortgage debt,
which increased about $10 billion

their Miami Beach office, 631 71st
-

;

Presi¬

-

three

the

of J. R. Williston & Co.,
Registered Representative in

.

R.

Harry

expansion expenditures of close
to $1 billion a year for the next

George has joined the organi¬

^

f

it and additional construction and

Willis

—

o

Baker
Co., Incor¬

Bonds,

of

& Robbins, In¬
National

York'Stoik

New

1.

Amott,

in

S.

U.

the
ef¬

fective Jan.

Sinking Fund Gold Bonds, Series
A, dated July 1, 1923, due July 1,
1948;
7%
Sinking
Fund
Gold

zation

..

Exchange,

1955

an

money

continue

a

for

1954, and
ample supply
issues as well as

be

$12 billion in

as

in

bership

financial outlays in their program

fSpocial to The Financial Chronicle)

added

,

service, and the telephone compa¬
nies are continuing to make huge

Campbell Robbins

been

increase

tremendous

ated

ceeds

has

projections

companies

continued,
increased
population
and community growth have cre¬

Carlson,
Jr., President; E. S. Hydinger,
Vice-President, and K. P. Long,
Secretary and Treasurer.

With

an

should

new

In

Robert H.

are

sales

and

electrical

refundings,"

Life Insurance Stock Fund, Inc.
Officers

Amott, Baker & Co., Incorpor¬

ated, 150 Broadway, New York
City, has been admitted to mem¬

New

may

extent

some

rose

of

at

distributors

NYSE Member Firm

Stock

call for

of

MIAMI

of

re¬

busi¬
needs, said

$3.2 billion in 1954. "Pro¬

the

as

D.

£3,104,687

conducts every description

in. 1954,

publicly offered and privately

there

2023 First Avenue North to act

£4,562,500

Reserve

arise.

of the New York

both

With J. R. Williston

£2,851,562

Capital
Capital

In

to

Total

BIRMINGHAM, Ala.—The Life
Management Co., Inc.,

has

Protectorate.

Authorized

will

war

may

Treasurer, and Allan H. Levian, Assistant Secretary.
Mr. Amott has been president

in

Insurance

Somali-

Paid-Up
The

(L. A. Gibbs,

Zanzibar,

land

we

the 1954

ap¬

PORTLAND, Ore.—Thomas W.

13, St. James's Square, S. W. 1.
in
India, Pakistan, Ceylon,
Burma, Aden, Kenya, Tanganyika,

Uganda,

so,

Amott, Baker Co.

in¬

dustry

Go. Formed in Soulh

staff of Campbell

Branches

billion

de¬

billion in

placed,

Brinton

Bishopsgate,

London, E. C. 2.
West

of

expect a con¬
tinuation of huge government ex¬
penditures for defense prepara¬

the
funds generated within in¬

added

Life Ins. Management

in

Kenya Colony and Uganda
Head

financing

1953

of INDIA. LIMITED

and

Even

certain depreciation allowances in

for

BANK

bond

survey.

"industrial

tions.

the

400

to staibilty

Expansion

fluenced

Assistant ' Treasurer

mon¬

and their yields."

about $2.2

$1.6

arid

ness

has been ap¬
pointed Assistant to the President,
W.

materially

from

to

1953

McConnell, Jr.,

and

the

on

...

govern¬

flecting, the leveling off of

It. is.further announced that J.

pointed

\

of

policy

prices

Industrial

this

Dow-Jones Indus¬

average

beginning of the

,

bond

clined

the

underwriters

the

course

the

contribute

duction

example closed 1954*

beginning

gain

a

threat

direct

for longer-term

effect

markets is expected to remain

of

Secre¬
from
that
time,
appointed a Vice-

was

the

these

year

way

all,

pos¬

helpful rather than harmful.,Con¬
tinuation of this program should

Director and

of

a

not be pressing,

may

ment financial

was

held

has

There does exist

refunding.><

<fIn

at their highs.

now

The

of

reasonably

are

opening the

ey

Limited,

Aird

Mr.

requirements

the

government

-

.

ap¬

President of the firm.

M.
year

and

looked for."

are

at

borrowers

requirements

appointed Secre¬

Company,

and in 1930

some

past

30%

&

tary-Treasurer

the Average.
Of

been

positions

Employers Group.

standard of companies there is the

as

formed.

'

selling considerably above the price

are

the

198.

son

60

split.

as

of insurance stocks

of

around
a

stock

increases

of the year and

"Barron's"

the

for

46%

92%

Continental Casualty for

price

gain of close to 50%

practically all

at the start

in

doubled

made

Guaranty has
number

has

62

8%

figures the gains made by

of the companies are quite spectacular.

when

•

Ewart has been

government

anticipated,

are

sibility that later in the

A. J.

35%

61

has

D,

until

satisfied.

bitt, Thomson dates back to 1912
whQn, jn partnership with the late
Nesbitt, and also with P. A.
Thomson, now Chairman of the
Board, the firm of Nesbitt, Thom¬

72%

351/4

49+4

&

example

least
other

tary of the company.

84%

52%

92%

Fidelity

can

firm.

issues

pointed Treasurer, and Howard S.

52

9

58

As

bond

and Director

Dunn

•

+

U.

United

the

Donald

No long-term

cation.

Limited,

Vice-President

a

of

40%

,

number of rail¬

obligations, still

term bonds to avoid market dislo¬

Nesbitt, Thomson and Com¬

of

38%

+ 15

Cpringfield Fire & Marine,_
S.

Revenue

Secretary-Treasur¬

and

83

99%

+ 20

',£35

•

103

.

a

probably can refund
higher cost debt, and additional
refundings of preferred stock also

indeed. tion as well as extensive loans and
gaining
gifts to other governments, includ¬
in
popularity,
will continue * to
ing substantial assistance to Ger¬
represent a sizable percentage of
many."
the over-all
supply of taxHalsey, Stuart expressed opti¬
exempts."
mism about general economic con¬
In addition, they have recently
Corporate financing will con¬ ditions in 1955. "In all," the sur¬
enlarged their Trading Depart¬ tinue to provide a large volume
vey said, "1954 was a period of
ment and announce that Liborio
of new money offerings, "although
healthy adjustment to a slower
L. Palermo, formerly with W. C.
the total may not exceed that of and steadier economic
pace than
Pitfield
&
Co.,
Inc. and prior
1954," the survey said. Refund- that of the hectic war and im¬
thereto with the Eastern Securi¬
ings of higher coupon bonds will mediate postwar years. The ad¬
ties Company, has become associ¬
add to the volume, it noted.
justment continues, but the pace is
ated with them.
"Government
activity
in
the expected to continue strong and
credit markets
will continue
to with high level business activity
have a strong influence on inter¬ during 1955. General business, in
est rates and bond prices," Halsey, fact, could show improvement in
Stuart
pointed
out.
"However, the coming year."
little change is expected in the
MONTREAL, Canada—It is an¬ Treasury Department's pattern of
short
and
intermediate
nounced
that J.
S. Aird, Vice- issuing

•>.

49%

♦

that

tax-exempts will be high

355
St. James
Street West, has resigned as Sec¬
retary-Treasurer. of the company,
a
position he has held for the
past 42 years.
He will continue

136%

•

by the

Departments as well as their
Research Department.
.Other partners of the firm are
Julius Golden and Robert Topol.

139

48%

107

quarters to make

Wholesale and Re¬

Mr. Aird's association with Nes¬

102% : 84 %

Insurance

Paul

39

107

Fire

Phoenix
St.

of North

48

their

pany,

7-3

198

+

139%

48%

.

7%

+ 58%

48%

198

Insurance

Insur. Co.

New

45%

Fire

are

which

tail

as

Fire

Hanover

Greene

for their

room

er

42%

110%

voting public, in¬
the
1955
output of

proved
dicates

A.

Irving

recently

President

27%

43%

Insurance______

+ 251/8

77%

75

(Newark)

46%

40%

__

+ 25

71%
108%

Employers Group
Fidelity-Phenix

75%

have

volume of these issues already ap¬

They

enlarged

still

"there

Official Changes

57%

100%

stock, both

wholesale and
retail.

con¬

to

Nesbitt, Thomson Co.

30

34%
77

7%

56%

29%

Insurance

Insurance

Great

56%

Surety

American

Glens

Price Range

Change

37

American

Boston

Point

1953

75

—.

of

number

a

primary determinant of dividend policies, many
companies have seen fit to increase their payment to stockholders.
Frequently this has been accomplished by capitalizing a portion
of surplus through a stock dividend and maintaining the same
rate

tributes blocks

the stock splits

as

of institutions. Such
actions have been inspired by gains in investment earnings and
the rise in surplus of the various concerns.
The larger volume
of invested funds combined with an improved return on these
funds have resulted in a further gain in investment income.
As
made

market

ex¬

change materially in
1955, said the survey, adding that

roads

tax-exempt

is not

certificates

trust

ment

pected

company pointed out that
its projections were made "on the
municipal, school, sewer and other
assumption that the world situa¬
types of improvement seemingly
tion
will
remain quiet
and no
is endless.
This, and the record

dis¬

and

sues

marketed

billion

large volumes of
financing without difficulty," the
review points out. "The need for

is¬

new

$6%

tinues to absorb

under¬

also

stocks

insurance

than

1954.
"The

writes

for

in

firm

The

shares.

accounting

the heels of the all-time record of

1930.

liquidating

or

counter

-

large volume of corporate

a

issues.

of

completion

exceptionally favorable market

an

1955

Thursday, January 6,

The Commercial and Financial Chronicle...

(80)

1,

cates of

1976

Dollar

and

to

Bonds,
pay

cue

Certifi¬

Deferred Interest at 15%

their

face amount, under the
exchange offer of April 26, 1946

of

has

been

extended

from

Jan.

1,

1, 1956. /The New
York fiscal agent is the National
1955

to -Jan.

but public equipment trust finane-.; City Bank of New

York.

Volume 181

Number 5392

(81)

Chronicle

The Commercial and Financial

...

and

A British View of

Rearmament

prosperity.

Merrill Lynch

ex-

penditure in the tree countries—
with

nntnhlp

tho

:

Adds

.

Two With R. S. Dickson
M

(Special to The Financial Ciironic£e)

rvf

pvr-pntinn

25

(Special to The Financial Chronicle)

peak, and a further increase
of productivity is liable to raise
the standard of living.
This im-

CHICAGO, 111. — Morgan F.
CHARLOTTE, N. C. - Charles
McDonnell is now affiliated with p. Acker and Plato P. Pearson,
Merrill Lynch, Pierce, Fenner & Jr. have joined the staff of R. S.
Beane, Board of Trade Building. Dickson
&
Co.,
Inc.,
Wilder

provement will not be confined to

Mr.

Germany

World Economy in

1955

By PAUL EINZIG

the

Einzig holds prospects for world economy in 1955 are
distinctly brighter than a year ago, and the menace of an
international
slump through an American depression no
longer prevails. Sees, in absence of any economic or political
great liberation

a

of foreign trade, but forecasts

likelihood of sterling

LONDON, Eng.

There

—

little doubt that international
nomic

prospects

months

the

for

be

can

next

12

about

tnan

er

did

is

12 months

by

the

end

the

-w a s

d

n

world.

free

I d-

1953
w o r

u

of

cloud

the

of

business

this

in

the

United

States,

slight

that

Dr. Paul

Einzig

been,

tional

prophets

bold

were

commit themselves

forecast of stability

ity

during

enough

and

most

hope

that the United

thorities

experts

West

would

depression

longer hanging

over

our

to

have

ments

increase

jde-

will

be

business

made

the balances of payments
countries, and the trend
basic commodity prices.

It

is

gratifying

during the past
recession

ican

than

most

experts

The

fears

of

sions

Britain

Business

and

in

the United

gold

balance

of

cause

business trend

the American

has turned the

world

Pr°sPfrous

United States

recession,

remain stable

to

while the

even

was

experiencing

seems

it

reasonable

a

to

expect that its stability and pros¬

perity will be further reinforced
through tee improvement of busi¬
conditions

ness

United

the

in

States.
It

of

probable that the trend

seems

international

will be upward, in

level

price

spite of the in-

creasing trend of production. Bad

in

crops

unsold

1954

grain

reduced

have

surpluses

months ago constituted one

the

on

nomic

horizon.

demand

American

maintain
least

at

raw

their

^continuous

tivity in
i.

more

is

expansion

industry is

than

likely

material

present

offset

by

prices

of

.

The

It

prices

change

ther before
There

in.

12 months. More¬




of Stock Ex¬
proceed fur-

*

.

*

.

.-

•

*

.

.

.

•

.
.

73.968.157.26

.
,>

2,256,656,569.70';

<

Accrued Interest Receivable.

14,623,963.13

...

Customers'

Acceptance Liability

.

.

65,610,289-67

.

Banking Houses

32.253.939.27 '

Other Assets

10,080,586.98
$5,908,131,517.51

LIABILITIES

$5,378,938,698.88

Deposits

2,819,688.91

Foreign Funds Borrowed
Reserves—Taxes and Expenses.

33,694,813.50

Other Liabilities

24,097,963.22

may

no

antici¬

to

reason

as

disastrous

a

1929.

be

there

But

temporary

are

as

bound

after

setbacks
we

was

31,17 0,917-71

Portfolio

on

Capital Funds:
Capital Stock.

$111,000,000.00

.

(7,400,000 Shares—$15 Par)

to
pe¬

Surplus.

.

.

239,000,000.00

.

witnessed

in 19.54 and are likely to continue
to witness also in 1955.
The trenct

Less: In

slump

remain much sounder than it
in

102,486,330.98

Acceptances Outstanding

marked reaction sets

a
is

in 1955,
the basic situation is likely to

pate

the bullion

Undivided Profits

.

47,264,939.73

397,264,939.73

mar-

$5,908,131,517.51

will

largely depend on the
attitude of the Soviet Government,

kets

^ js

impossible to form

whether

or

1955

sales

its

doubt

the equally

.

.

.

.

con-

most unlikely
could ma-

seems

rising trend

at

likelyjgto be

Loans

v,

election.

on

The
produc¬

Mortgages

574,194,387.39

Securities

con-

convertibility would be politically risky bdfore the general

to

level.
of

no

not

it

an

will

opinion

resume

in

eco¬

increase

An

12

of the

international

clouds

the

which

be

increased

riods of rise such

the

State, Municipal and Other

1,435,026,215.27'

.

.

over,

If the free

corner.

able

was

Obligations

0f

can

has

reserve

terialize within

being so, there is ground
optimism about conditions now

that

U. S. Government

$1,445,717,408.84

....

that such improvement

ties. This
for

there

payments.

difficul¬

payments

Cash and Due from Banks

improvement of the balance of

an

recurrence

a

the rules determin-

siderably, not through borrowing
on
the 1946 pattern but through

in
Their internal

States.

booms failed to

RESOURCES

vertibility until the Sterling Area

in

setback

slight

DECEMBER 31, W4

STATEMENT OF CONDITION,

indicating his willing¬

appiication

case,

any

many

the

spite of

of

expected,

other countries
reasonably prosperous

remained

NEW YORK

before removing the existing restrictions on dollar transfers. In

$rmer

conditions

res¬

a

convertibility

the Buy
America Act, Britain will expect
a much more definite liberalization of American foreign trade

sympathetic Jreces1954 failed to jma-

during

terialize.

had

moderate

a

gesture towards the close

a

the

ing

the Amer-

much

was

at

full

the

to relax

ness

recall that
the resistance

of the world economy to

of

limits

unofficial

likelihood of

no

of

of the year,

to

year

OF

CITY

THE

OF

of

though President Eisenhower

many

of

BANK

NATIONAL

Pos¬

sterling and other inconvertible
currencies during
1955.
Even

world,
of

cago.

purchasing

the

a

of

large scale.
that

it

is

gold

and

There
in

a

silver

United States Government
to secure

be

no

position

and other securities carried at $399,770,124.00 were

public and trust deposits and for other purposes as
Member Federal

do

so.

Generally
1955 is

speaking,

likely to be

one

the

year

of progress

pledged

required or permitted by law.

to

can

Exchanges-.

the First National Bank of Cb>-

CHASE

THE

are

of

free

the

Mr- Tsolainos is a partner

in Delafield & Delafield.

Tnf,

intra-

with

and $2.82,
remaining

There is

spending

in

trends

'been

major adjust¬
during 1955.

within

downs

toration

importance liable to affect favor¬
ably

Stock

expected

are

rates

of major

factor

a

ski-

Midwest

1Vianoney>

discount.

of Ameri¬

national income and

power

has

M„tenpv

Sterling is likely to have its ups

ican observers are inclined to be¬

can

changed to Alden &

membership in the

budgetary con¬

other

No

power.

In¬

Sa.Oe

and

Andrews,

a

likely to

are

domestic

reduced

its

cidedly favorable, and non-Amer¬
lieve that the

Europe

further

Co.,

La

Street, members of the New York

acquire

international value of the franc to

no

States

turned

South

wjjj

ditions, France may carry out the
long-overdue adjustment of the

$2.78

judged

120

re¬

consolidation

the

after

and

are

associated
&

in-

a

the whole.

on

her economic and

htod^.

United

Western

increase

Symptoms

the

corporated,

Becker

convertibility, the O.E.E.C.
of

in 1955 will be distinctly upward.

in

G.

A.

Robert A.

by

to

In the absence of

to

sibly

business ftfend

that the

with

—

become

acute

any

likely

Foreign exchanges

At the turn of the year it seems

probable

Partners

City.

has

The removal of

also

is

remain stable

This

■

Wall

Pearson

will be Theodore P. Tsolainos who

Y.

re¬

is

be

The firm
Mahoney &

N.

Eu/opean trade.

hope proved to be justified during
the
past year, and the menace
of an international slump through
American

of

likely

au¬

the

14

at

(Special to The Financial Chronicle)

CHICAGO, 111.

up¬

moderated

be

countries

the

States

cession to proceed very far.

an

trade

turn to

a

prosper¬

allow

not

offices

with

Street, New York

Mahoney

will

Exchange,

Joins A. G. Becker Staff

or

the trend.

to

expressed

^

Tqo_

As of ^an' 17,, Iheodore iso
members of the New

formed

crease

though oi^ bal¬

1954,

ance

Theodore

17

T

tinue, and tariff walls are likely
to
be lowered somewhat.
East-

economic

definitely to

,

.

on

in volume, unless renewed
interna-, diplomatic tension should reverse

Few

payments.

concen-

discrimination is expected to con¬

wide depression and upsetting the

of

;

To Form Tsolainos Co.

SfSatS Exchai*e and Tomasz f ^ew- Mr. Pearson was previously wnh
n

of

an

Mi li¬

it

of

policies

the

of

Exchange.

foreign trade is likely to make

carried the

balance

*

members

Stock

west

trend of the output.

further progress.

it

poss bility of a
deflationary spiral causing world-

precarious

in

Building,

political crises the
world trend towards liberalization

may

have

of

McKinncm.

prices, even though

absence

economic

However

recession

the

In

name

previously

was

&

spending and more

liable to

is

the upward

r e-

cession

effect

combined

ward trend of

to

economic

MINEOLA,

ambitious capital
all over the

is bound to be

investment

the

.er

The

Peiping

Now Alden &

by

State

programs

consumer

more

and

developcountries. Its effect

of

progress

investment

Towards

share

willingness

through military strength.

become "accentuated

to

will

development instead of lamos & Co.,
at world domination York
Stock

aiming
consum-

Thomson

Communist-con-

peaceful

spirals

wages

likely

their

trate

McDonnell

wjth

brought

Welfare

ment in many

they

ago.

by

further

to

appear

the

and

Whether

countries.

in

on

Moscow

power

purchasing

Japan-has passed

countries

depends

convertibility in 1955.

ers'

be distinctly bright-

now

peoples

trolled

no

continuous expansion of

eco-

advanced

the

Dr.

ciisis,

and

its

Deposit Insurance Corporation

26

(82)

The Commercial and Financial Chronicle.. .Thursday, January

1

Electric residential

business.
enues

about

Public

gained

1953

Electric

Gas

Light

&

number
three in the list of most rapidly
ranks

The

investor-owned

growing

electric

^enues^
age
Federal

data.

Commission

is its neighbor,

one

Arizona Public Service.) The Tuc¬

famous

son

area,

has

enjoyed

its

climate,
of

since 1950.

38%

over

for

population gain

a

Tucson

about

north to south.

to

gas

Tucson is

health
of

50

areas,

from

miles

Electricity is served
of about 173.000

147.000.

the

and

center

is

area

The

city

of

important tourist and

an

Arizona

University

located

is

light

in

there.

The

manufacturing,

the principal activities being farm¬

ing and commercial trade.
The

company's

revenues

are

about 65% electric and 35% natu¬
ral

Electric

gas.

about

38%

irrigation,

Electric

revenues

residential,

and

3%

from

17%

miscellaneous.

have

rates

8%

are

commercial,

34%

industrial

the

little

due

to

erating
1953

unit

and

started

The

running
aver-

in

added

June,

Years—

units

should

less

dependent

on

which

dropower,

the

for

0.75

1.07

0.70

1.17

0.63

1948

favorable

appears

growth.

reactivated

was

1.17

0.55

0.94

0.50

1.07

0.63

0.64

0.50

_

1945_

v$l.04

about

months

>\'l

One manufacturer of color picture

recently announced a new
price of $175, a reduction of $100

30,

atter

-

increase.

electronics

manufacturing
centers in the country." Population in the City of Tucson gained
substantially in 1953.

j^cerif

It

is

in

gas

interesting

residential

stnadily

since

gain,

25%

The

stock

a year ago
the revitalization of interest

note_ tha^ in

the black-and-white set; the
_manufactur§r& are not over-exthat the plritjng cc^or. It is being permit-

and

consistently-ted to develop in

years.

The divi-

derlv

is

\u

45%;

"

,

to

•

the

.

,.

23

or

doing

are

well,

for

they

bave been able to preserve nrofit
margins quite satisfactorily. Their

■

.,

A.

f

linnnrfpH

hv

th«

1ar0A

iaancnises, supported dv tne large

,

for

all

electric

stocks.

programs of the manufacturer, and bulwarked by real-

utility

istic .price protection policv, lend

I

aitttjffg

these

DIRECTORS

J. P. MORGAN & CO.

a

mimh

has

IN CO IIP ORA TED

been

GEORGE

NEW

WillTKEY

YORK

not

selling

narrower

is

1n

fortunate.

as

leave

profit. This
responsive for

kusiness

embarrass-

Electronic Enrts

Condensed Statement of Condition December 31, 1051

ALEXANDER

ARTHUR

remains

I.

R.

C.

AT NIX

C.

CABOT

President

of Morgan
;V'

Grenfell

8"

Co.

1,800,000.00

Limited

chinery
10,547.756.79

S.

CARTER

S.

3,000,000.00

Liability of Customers

CUES TON

\

•

L.

JOHN

Chairman

t-

R.

J) EUR REE.

Chairman
The Procter

a1

Oamule

CHARLES

D.

DICKEY

D.

N.

Chairman

DEVEItEUX

C.

JOSEPHS

$ 27,433,563.33

All Other

nsurance

S.

Company

Official Checks Outstanding„
Accounts

/28,568,368,47

11.

C.

L.

McCOLLUM

Capital—300,000 Shares

Government securities carried at
in the above'statement are
pledged to qualify for

public monies

fiduciary

as

JAMES

L.

THOMSON

from

required by law, and for other purposes.

a

CIE.

INCORPORATED

——-the

14, Place Vendome, Paris, France

ZINSSER




GRENFELL

8'

CO.

LIMITED

a

is

receiver.

has

This

fact

is

re¬

fpr lihe solid demand
been demonstrated to

do-it-ydursel"

to

—

with

field

The

radio

and

have

entered

excellent

results.

remains

outlook

excellent,
improvement in design stead¬
ily makes obsolete existing equip¬
ment.

Industrial Electronics—Tt would

be impossible to define t
this

of

the

buv

ad Met

separat-

speaker?with

its

more

a

n-e-

u-its.

enclosure,

wide c':oice

units. The latter

attractive

as

a

ber
in

of

prominent

num¬

manufacturers

other industries

who

aUy-

are

ing themselves with t'ms activity.
Prominent

the

in

names

business

machine, automotive parts, an 1
machinery trades are establishing
electronic divisions.
Many have
it

found

more

basic

to ac¬
by buying

companies that have a
of
engineers.
Tv<re

staff

been

for

fe^jb'e

purpose

lack

no

o!!

prospects

such

acquisition since many
organisations have co,Tie into
being,
generally
to
provide: a

new

to

trend

tinue.

expected

ideas.

to

con¬

Dis¬

pitfalls.

are

must

be

op¬

e

observed-'to

acquiring

an
organization
have been devoting ;.its

may

mercial

development C of

the

have

little

com¬

promise.

Electronic

Instruments

"automation"

word

No

news.

lfe

t

their

exploit
is

There

crimination

the

with

of engineers

grouo

portunity
This

ntm

ino

is

what

matter

mauer

T'

—

much

wnax

e

:in

the

iae

application

wit' out

They

instruments.

electronic

in

essential

are

tNe

devel¬

opment of the equipment initially,
in

its

trol

into

manufacture,, and

to

con¬

the equipment when it is put
operation.
The demand for
...

*yPes

new

instruments

has

fmturers to create them. A
significant number of new entcrn-am

prises have been established, and

many of them are operating successfully and
pect

enjoy

fine

a

growth

continued

pros-

and

for

prosperity.

The

as-

financial

are

have not been able to attract capi-

t

financing.

cf

basis

'jk1*-

types? 'of

e ramiIts im¬

group.

portance is signified by the

ru^a^ed. t'e ab'hty of t'e oMnr

amplifier, fecord player, and

sembled
^..

of

more

1

.^consumer

28, Great Winchester Street, London E. C. 2, England

commer¬

of. automation . may
to 15.000 be- ^ wou'd be an impossibility
speaker

|han can be obtained

*.

MORGAN

yokes,

jes(^natine up
Jfeecdbd. Eauioment

of self-contained
*

Vice-Chairman

receivers

high-fidehV

with

Jor others, there is

-

use¬

com¬

private

of

producers

the

magnetic-pick¬

--—exist

the

8'

of

programs-'delivered through

radio

---which

Deposit Insurance Corporation

Hartford Fire Insurance Co.

Merck & Co., Inc.

per

The

MORGAN

of

sponsible

Member Federal Reserve
System

Finance Committee

JOHN S.

the

television

avoid

as

eighth^atts;

satisfaction

SLOAN, JR.

Chairman

quAli#.

To

powers,

MORGAN

General Motors Corporation

coils,

—thaprchnracter^prcvides far

fers
P.

in

which

caoalole

Vice-President

ALFRED

some

—capable of,an 'output of not less

$44,083,126.47

ba

number of very pros¬

a

products

cycles
States.

of

re¬

eauthment^;|H^ svstem mu«t ba

$839,595,862.00

to secure

are

i^cd e s amphf'ers
tan^^ 'f'c orders, record

f-arr

ac¬

manufacturers specializing
this type of equipment. Some

that

s^ak^s,

_//jy/ 228.27

de¬

opened
of

military,

—

professional, and

to

ups.

30.000.000.00

.UndIvided Profits

Uiiited

cial,

enemies

30,000,000.00

Surplus

Member Federal
S.

well

as

the ^creation

in

^toners,

15,483,428.78

President

JUNIUS

done

category

Continental Oil Company
GUSTAV METZMAN

manufacturet

rot

attractive.to newcomers,

~

LEFFING WELL

F.

have

% vV v
.

has

field

every

High-FideMtm Equipment—•rr' is

-

8,141,141.42

LAM ON T

Vice-Chairman

In

munication

has

antennas,
h are-illustrations.

$744,600,063.53

Payable, Reserve for Taxes, etc

Senior Vice-Presideitt

.

fac-

areas.

television

688,598,131.73

'

THOMAS

com¬

overcapacity,; -$#anufar4urers

v

Chairman
NezuYork Life 1

th°se

branch

of- items ro",ctv"c+'>r'

complex

sulting
Deposits: U. S. Government

Credit Issued.

Morgan & Cie. Incorporated

in¬

a^d

processes.

of

manv

estabUsh

new

less

been

LIABILITIES

Acceptances Outstanding and Letters of

JAY

man¬

comparatively,^ These fields have,

Company

Chairman Executive Committee

led

to

methods

*

Senior Vice-President

RICHARD

by

the

the way for a much broader
fulness.

existing

has

Producers

$839,595,862.00

Company

DAVISON

P.

This

complish this

45,238.057.42

'

■

equipment'

anH

tor'es in

of Credit and Acceptances
'

those

are

continuous-flow

panies

Letters

COLLYER

The B. F. Goodrich

II.

on

in

thought to

were

bor

4,148.900.57

Banking House

Morgan & Cic. Incorporated
CHARLES

time

one

unobtainable.

The search for additional supplies
of electricity and semi-skilled la¬

360,841,485.31

Accrued Interest, Accounts Receivable, etc..

President

volve

at

fications
ex¬

ufacturers of componentsw' ich reouire a large investment in ma¬

and

Loans and Bills Purchased
BERNARD

'io and

receivers, from the

-vices. Outstanding

(including Shares

frequencies.

advances

complished, making it possible to
utilize higher frequencies, which

volume

ra

irrdTrstrm.l and eommunir-ation da-

77,909,450.17

Morgan $• Cie. Incorporated)

StateStreet I nvestmentCorporation

of

replacement part* mar¬
ket, and from:the grow'ng list of

177,226.610.79

Municipal Bonds and Notes

Other Bonds and Securities

their

panding

$188,883,570.92

Stock of the Federal Reserve Bank

Bcchtel Corporation

PAUL

Hand and Due from Banks.

State and

B ECIITEL

President

!

on

United States Government Securities.

Vice-President
STEPHEN D.

derive

the assemblers

television
Cash

broadcast

be

sufficient

a

man¬

-

Vice-Chairman

-

.

from

ASSETS

T^e outl~ok

—

excellent, for these

ufacturers

ANDERSON

M.

of

com¬

would

for

mgnts.

President

of

Spectacular

of

prices

Chairman

HENRY C.

restricted by lack
number

that

types of

equipment

re-

gross

mainly

nv,4c;e

munication

ago

years

various

perous

The retailer is
unit

Equipment—It

few

a

of

use

There

distributors

markably low..
fcuwer

felt

the

The""turnover the demancl is developing steadily.

stability,

great

'

Communication
was

sign of equipment have been

fashions

makes

yield

price-earnings
,

more

Distributors of the better know

selling

currently

around

much

a

ratl° ol 142 1S below the Seneral advertising

in

although usage is lower than commercial, and 22% in industrial

1947

has been

over-counter

was

with

year,

to

dend payout remains conservative.

about

revenues

the prfe& quoted

over

dividend payments have increased

.

:

..

particularly rapid last

method of distribution effectively,

.

With

rrw^rd in recent

20%

_

rate,

toward making Tucson

a

_

Sept.

price trend

~

M

ended

consumption.
The com¬
pany's 1953 report states that this
"may be a, tremendous stimulus
major

_

present

ieaited

for
the
U.
S.
Army, which should add to future

of the

space

the capital required to main-*;

nor

_

ground

one

now

"~-e-tubes

Feb.

electHc

Most

-

Fort Hua-

important electronics

as an

proving

1.20

1946—.

outlook

1, 1954,

0.80

1947

continued

chuca

0.83

1.22

1949

droughts.
The

1.40

1950

by

•'•$1.62

1951

company

affected

receivers.

fabricate a diversified line of tain the large variety of equipPrice Range
products, including nonconsumer ment necessary for demonstration
23_}g
items on which profit margins are purposes. Distributors have
18-15 ' better.
shunned carrying these lines be15
13
Progress is being made in re- cause of the added investment
13
to,, spect to color television.
Almost and the specialized selling meth12
10 ^the largest cities are now
ods required.
Manufacturers
11
-q—connected
transmission facili- quite generallv are finding it *mc9_
7
ties capable o| carrying color pro- essary to sell directly to retailers.
9
7
grams so th^Pthere is more incen- Not all of the manufacturers are
9
7
tive for thejpfcospective purchaser, large enough to accomplish this

nivs.

learnings

pre;

purchased hyis

the walls, bookshelves, or closets
of the home.
Tj e major unsolved problem
confronting this industry is the
method of distribution. The typi-

exclusively to the production of cal retailer has neither the
television

1953___„

efficient steam

make

reflected

as

1954____

eration

and

Industry

Approximate

40,000 kw. unit, which

modern

lar volume is off considerably, the
result of the ..much lower prices,
Earnings are down proportionately.
But
there
remain
few
manufacturers who are devoted

follows;

as

immedaitely

was

Durable Goods

thus

leverage.

growth record

20,000 kw. gen¬

was

is

and lee¬

jn the common stock figures has
jjeen

expected to be placed in op¬
in
1954.
Completion of

was

earnings

improve

one-third of its

a

work

on a

ratio

S. average,

equity ratio to decline this would

generated

company

over

However,

Growth

been

slightly below the national
age,

cies.

population

a

and

the

serves

City of Tucson and adjacent

to

1953
a

these

G.E.L.&P.

extending

possibly

figure

S.

af,en-

Power

(Number

jn

The Outlook in the

debt, 13%

is provided for further debt
financing, if necessary.
Should
the company decide to permit the

competition,

only

9

page

way

durl £ower purchased fiom oublic agen¬
requirements, the balance
beina purchased from public
being

ing the wartime period, according
to

the U.

equity

above the U.

Light & Power

gas

about 47%

was

slock.

Company

from

industrial

and

preferred stock, and 40% common

f

Tucson

18%

The capital structure at the end
of

By OWEN ELY

Power

Continued

16%.

Utility Securities

Tucson Gas Electric

rev-

6,-1955

equipment

Many

of

them

need

Some

who

#

assistance.

al-tered considerably in form after

tal

acquisition by|the consumer, and

being purchased by, organizations

frerjcrently

incorporated

in

in. seeking

the

needed

amount

diversification.

are

This in-

\

Volume-181

dustry

is

Number 53S2

producing

now

The Commercial and

...

more

than $1,000,000,000 per yegr!

-

*

..,

lurgy, and
a

Distributors
Ti

of

Electronic

Parts

approximate 1,300 distribu¬

e

tors

are

benefiting

from

the

growth outlined in the previous
paragraphs in the various manu-

facturing

divisions..

Every

elec¬

.

creates

that is put into
additional demand

an

for service parts.

experiencing
which

creases

eral

to

ranged

sev¬

from

15%.

Earnings in many
have been phenomenal.
But

such

in¬

past

expansion

$500
.

6%

cases

-A:, number

growth

opening
to

stores

it

perking

the

branches.

imperative

into /localities

ude^uMe

and

Subur¬

required

additional

finding

move

-

has

of

are

illustrations

mand for the

tain itself at

full

-

the

*

de¬

trends

scribed in this paper have distinct

implications for
Automatic

where

facilities

which

in

sus¬

level necessary for

a

the production

of

use

product did not

de¬

been able to increase

mand the needed

equip¬

But

there

metal

-

working
As

come

more

increase steadily.
such

conveying
installations be¬

is

the

ma¬

have lower resale
important, careful
required.
Factories

with

automatic

well

achieve

installatidns

substantial

ence

prudence

in

in¬

those

to

may

capacity, but at the same time
raise the break-even point. There

in

available.

Working

is

there

erage.

tributors
The

form el

attract

the

facility.

new

and

Long

which

appraisals of tne company's

range

future

essential.

are

It

is

urged

that such communities employ

the

of the

to

experience and skill of their banks
in

Mergers—Many of the consoli¬
have
accomplished con¬
structive objectives.
Diversifica¬
resulted

in

in¬

some

Many organizations whose

expansion

limited by lack of

was

adequate financial

resourc

1

have

the

market

of the New York Stock

value

have announced that

It is difficult

1955

curities

Business—In
as

find

units

in¬

several

will

explained, the smaller
themselves

in

a

short

of

the

of

them

fall

mark.

A

At

the

Paul
Dick

somewhat

Arbon
&

agement

is

of

well

not

av¬

various

accounting procedures.
ruently,
tve
management
failed

to

the

rrcoenwe

Irving Trust

man¬

trained

in

Fre-

has
for

need

NEW YORK

unusuallv c^ose inventory control.
Looseness

has

siderable

resulted
of

amount

some

instances,

tories

are

the

rmt

frequently
values and
ment

been

too

to

other

situations

distributor

inclustrv.

thus

DIRECTORS

.

do^s

not

credit

with

f

qualifv

risk

F.II.A.

cre¬

Mortgages

1

RICHARD

22,142,509

.....

HARRY E.

.

.

.

.

19^4

output will

approximately
increase

an

1933.

A

is

amount

5%

exoected

First

<-->—0

during

Mortgages

on

1,971,333

Real Estate

Vice

most

Customers'
for

Some of the air fra^o fac¬
have

tories

considered

reducing

Liability

of

items

heretofore

producing

of

^o'^e

purchased

L.

r

'.-

-v.£

•

Pulp and Paper Company

23,658,670

Acceptances Outstanding

Other .Assets-w

LUKE. JR.

President, West Virginia

thqir subcontracting programs, in
favor

President,

DAVID

several

consequences:

(1)

Company

HATCH

Dcering Milliken & Co., Inc.

17,284,192

Banking Houses

are

HAROLD A.

1955.

the buiH-up program insti¬
tuted four years ago has boon a1-

There

HARVEY, JR.

President,

620,263,230

The Flintkote

Thus

realized.

BRISTOL

over

about

of

Loans

I*.

Chairman, Rristol-Mycrs Company

3,150,000

I. J.

b° valued

about

of

gain

Slock in Federal Reserve Bank

$6,533 ^00 003,

WARD

60,621,574

.

HENRY

The
at

WEST

It.

Honorary Chairman

°

Other Securities

Airolanes

of

ENSTROM

of the Board

U. S. Government Insured

for

be

can

445,395,005

.

ance.

Mamiraeture'"s

N.

President

e

financial guid¬

proper

WILLIAM

373,921,397

$

.

U. S. Government Securities

There

whmh

in

loan today, hut in which a more

ated

ASSISTS

Cash and Due from Banks

oop^rturrties

loans

are

attractivp

'

■

unrealistic

Chairman

many

for

a

being

earnings.

are

DECEMBER 31, 1954

inven¬

e

result

sub-enuent disillusion¬

to

as

There

The

has

STATEMENT OF CONDITION,

inven¬

perwd'onU.v,
nrofit

gross

valuation.

con¬

pilferage. In

employed to estabhsh t'
tory

a

physical

taken

estimated

in

HIRAM

MATHEWS

A.

Senior Vice President

5,796,751

•

DON G. MITCHELL

the

$1,574,204,661

Chairman,

out¬

Sylvania Electric Products Inc.

side.
ROY

(2)'

Red'^tion of the tax rates

has resuked in much

for

ings

largely
est

the

procurement
can

formance.

a

insist

the,

better

the

two

their

on

Undivided Profits

LeROY

Total

explanation

Deposits

Some manufacturers have

torious

past
have

performance.

few

dollars

in

facturers.
new

three
a

weeks,

of

been

shared

.

124,224,787

..

1,406,781,695

Capital Accounts/.
.......

Taxes and Other

Dividend

rela¬

v

.

equally
Since

Expenses

.

.

11,271,196

.

2,000,000

Payable January 3, 1955

years'

may

Reiss

Manufacturing Corporation

HERBERT E. SMITH

Acceptances: Less Amount

Former Chairman

and

25,158,192

in Portfolio

of the Board
Chief Fxeculivc Officer,
Company

bv

4,768,791

Other Liabilities

rot

were

ah

United Stales Rubber

completion
involve

of

United Stales Government Securities

by'the

Oj these, $67,791,626

ability today to keep
with engineering progress.

Design a^d engineering changes
coming more and more rap¬

are

Products

New

from

years

-

Corporation

WILLIAM

of

determin d

E. STEWART

President, National Dairy

$1,574,204,661

a

time, the position
several

E.

manu¬

concern's
pace

;

to

be

monies and

are

are

pledged to

stated

secure

at

amortized cost.

deposits of public

J.

WARDALL

York, N. Y.

FRANCIS L.

WIIITMARSII

President,
Francis II.

Leggett & Company

fur other purposes required by law.

*

idly.

To keep abreast of these de¬
velopments, the air frame marufacturers have had to expand their

engineering
brace

departments

electronics,

Company

JACOB L. REISS
President,

orders

They

up

may

PETERSON

President,

the

billion

aircraft

new

design

Wit' in

President, Otis Elevator Company
J. WHITNEY

4

meri¬

more

several

piaced.

company

now

of

Pennsylvania Co.

PETERSEN

A.

United States Tobacco

sched¬

production

ication

New York &

19,224,787

.

...

tively higher backlogs than others,
direct in

Company

PETER S. PAINE

manu¬

ules.

a

The American News

President,

per¬

being t^ey had fallen too far be¬
hind

55,000,000

part of thoir or¬

publicized

Honorary Chairman,

50,000,000

Surplus

cmcellutioos

received

substantial

ders,

MICHAEL A. MORRISSKY

Capital StOck(5,000,000 shares—$10par) $

program,

on

Recently,

facturers
of

_

profits rates.

Dry Ginger Ale, Inc.

■...

.

Since there is less urgency

services

Canada

IIAKVIATIILS

which

industry,

W. MOORE

President,

earn¬

subjected to the high¬

was

excess

(3)
in

this

higher

physics,

to

IS-

EMBER-FEDERAL

DEPOSIT

INSURANCE

CORPORATION

em¬

metal¬




department

"N

maintain

time

it

Walter
were

of

offices

was

an¬

Nestel

and

admitted

Merle-Smith

these

tyoical

to

same

that

c^mons^d

oarts

hinds and sizes. The

Exchange,
of Jan. 1,
the se¬

Street, New York City.

partners.

must

way

continue

nounced

and without the government,
provide business aids and coun¬
Some

custodian

at 48 Wall

more

position. Much is
being done by organizations with¬
to

as

have acquired

Roosevelt & Son. Roosevelt & Son

disadvantageous

sel.

they

justification for such

any

dustries,

in
stances.

find

Small

dations

has

exceed

capital stock.

be"

Dick & Merle-Smith,
48 Wall
Street, New York City, members

maneuvers.

making those appraisals.

tion

have
been
purchased
discontinued, for the purpose
paying liquidating dividends

week.

is

ef-'

can

'.

dis¬

which

carry

of

an

rrw

each

inventory

thousands

on

two

are

wholesalers
of

that,

more

aids

Acquires Dept.

which

businesses

of

situations

these

Dick & Merle-Smith

acquisitions of another kind that
must be deplored. This has refer¬

viting new industries where some
form of local subsidy is being used

savings

at

many

Dispersion—A community

how

The

demand

planning

and

specialized,

may
More

27

used,
...

too

exercise

Plant

should

Machinery—Re-

cutting installations seems to as¬
sure a continued high demand for

been

fectively

com-

financing.

have

be found to demonstrate

with

re-

ouirements

here today.

employment

by
identifying themselves
organizations better able to

are

capital

us

equipment of factories with cost-

va'u2.

Many

of

equipment.

under¬

required.

are

pror-

been

ment.

Summitry

problems.

Larger

that

••

'

chinery

ban

million ton

gram..

standably has not been devoid of
warehouses

year^i.sr spending

current# fiscal

about

are

sales

the

over

have

years

The jobbers

annual

The government in. its

reality.

have

losses have increased because

to

tronic mecl anism
use

host of-other applied

a

Guided missiles are now

sciences.

(83)

Ffpj^cial Chronicle

as

to

general

\

28

(84)

The Commercial and Financial

28%,

also rather disappoint¬

were

ing.

AH

able

three

degree

movement

to

are

Continued

consider¬

a

dependent

from

Chronicle...Thursday, January 6, 1955

2

page

the

on

of coal.

The

Security I Like Best

Dorsey, Payne Join
Rail Stocks Acted

happy

12

1954.

practically

months

Traffic

the

entire

levels

and earnings
off almost as con¬

were

compared

as

erties

with

1953

and

tremely well through rigid control
of expenses.

postwar
and

on

road

Huge

years

on

paid

off

were

railroads

some

in

the

hand,
whose

of

lower grade

There

1954, from

usual,

94.03

the

individual

varied widely.
road

ferred

Of

stocks

York

list of 61

listed

the

on

Maine

New

was

the

year.

ered,

there

formed
There

Of

were

the

and

36

stocks

and

14

of

of

showing

that

25

issues

a

Among

scored

be

the

or

The

un¬

R.

Dorsey and that Robert W. Payne
has

become

associated

firm in that

with

the

department.

Pierce,

Beane.

He

is

Fenner

this

Other

category

semi-

com¬

were

St.

Francisco, up 21%, and
&
Southern, up 23%.
stocks that might

common

classified

tutional

member

of

the

the

Security

suitable for insti¬

as

Mr. Payne was

Burnham

of

ager

and

the

Financial

Reading,
25'
Delaware
&
Hudson,
27%, and Norfolk & Western,
purposes,

up
up
up

results

50%

1950.

over

share

per

to

was

$1.50
of

and

at¬

14,

at

as

Club

nine

12%

ahead

period.
90

cents.

earnings

December 31,1954'

ASSETS

State and

Municipal Securities

$10,770,685.51
12,817,762.23
12,276,813.29
7,907,628.22

,

Other Securities

;

Stocks

V.............

...:

Bonds and

818,602.20

Mortgages

1,627,373.20

Loans and Discounts
Rank

13,630,044.37

;

!

Building

565.000.00

;

Other Assets
__

478.977.76

$60,892,886.78

;

On

Presi¬
of "New

$ 2,000,000.00
-6.000,000.00

Undivided Profits

882,213.10s1
510,93728

Reserve

Unearned Discount
Reserv

es

15.225.54

for Taxes and

Deposits

Expenses

102.992.22

;..

51.381.518.64

$60,892,886.78

on

Friday,

Waldorf-Astoria

Brothers

Co. observed

of

&

31, 1954, the

110th anniversary of the
ing of their Boston office
31, 1844, by Thomas B.

grandfather

found¬
on

Dec.

Curtis,
Curtis, the

Louis

present Boston partner. The firm
had been established in Philadel¬

phia in 1818 and in New York in
1825.

.

.

.

Most
to

investment

do

than

servicing
counts.
the

will

their

NOTE: This is after charge of $284,985.92 for

ducing
the

on

announced
and

re¬

established

part of investors, and the
general public toward stocks and
an

new

65th

have

the

KINGS COUNTY

TRUST COMPANY
fstabliihed I$89

In the Heart of
Member federal

members

.

W.

of

the

tniv'ant*

Blair

&

Co.

Incorporated

to

investor,

that

while

I

this

too

whole, from a
cents
viewpoint it
profitable to spend

economy

dollars

as

and
be

not

much

time

effort

and

the

on

cerned. My reasons for coming to
this conclusion were:
small

bought

securities
other

because

and

This

investors

in

funds

the

created

against

a

have

have

they

kept
in¬

of

did

and

no.t

cons

of

to

The

an¬

vice-president

in

Shelley Co.

Financial

DENVER,
Dolsby has
staff

of

Ernest

E.

Colo.
been
I.

—

Le

Shelley

Some

telescribing

great potential
In

the

will

will

day, too,
with its

be

a
reality.
future,. telescribers

near.

probably

be

in

common

Usage

iri

looked

instrumentality for reduc¬

offices.

As

-

an

over¬

ing costs and streamlining opera¬
tions, TelAutograph's unique com¬
municating
equipment
deserves
to be classed with the
and

computing

At

32,

New

its

York

mirror

With

appreci¬

machines

and

production

machinery.
price, on the

recent

Stock

Autograph
to

glam¬

more

widely

more

automatic

Exchange, Tel¬
is

common

the

beginning

company's promise.

prospects

never

brighter,

however, the stock commends it¬
self, despite its recent rise, to the
patient investor, for steadily in¬
creasing income and extremely
worthwhile

long-term

apprecia¬

tion.

DUTTON

Roy
to

believe

In

understanding

substantial

order

prejudice,

any

barrier

action

favor¬

to

while

to

educational

barriers

When
enters

the

effort

campaign
that

securities

this

is

are

should

salesman

the

picture — the unit of
small, the profit in the
account
likewise, and the time
needed
to
develop this type of
business
is
often
considerably
such

can

V.

Company,
& Cranmer Building.

establish

the

part

the

in

worth¬

department

and

it

make

a

reason

for

attitude

changing

of

time

be

a

investors

new

the

ment

on

general

public

toward stocks

and

bonds

on

the

part
of the
public can be
channeled into sound investment

type, income producing securities,
speculative tendencies can be

and

held in check, we could be passing
an era where the fear of al¬

most

everything

in the timy of
dollars will be

investment except
ended.
The

When

Timing

people

telling

their

kept their

earnings
have

are

friends

who

have

frozen in dollar

money

about

assets

Right

Is

talking about
market; when they are

the stock

the

larger dividend
capital gains they

and

achieved, then I believe we
a situation where the
right

in

are

type of advertising and sales cam¬
paign designed to draw all types
of
investors
toward
your
firm
might well be worth the effort.
When the tide is moving with you
ride
along with it — and the

of

to

seems

direction

headed

be

of those

selling

time in

gin

in

the

securities

many,

for

many

in

the

business

the

first

years.

Changed Viewpoint

Although the foregoing conclu¬
sions may still be valid, I now

series

a

of

articles

that

will

contain

suggestions for attracting
different
categories of investors
through advertising and sales pro¬

motion

that

campaigns.

this

after

take

be

may
new

care

books,
some

we

If

business,

of

that

hope

value to

you

they

to

well

as

now

agree

time

good

a

as

on

may

your

be

of

you.

Aim, Kane, Rogers Adds
(Special

to The

Financial Chkonicle)

CHICAGO, 111.—Victor E. Per¬
son

a

first

might

toward securities. The cycle at last
is turning. If the present move¬

afford to devote

activities.

Reasons for

the

it

profitable venture. The

go

sale is too

than he

for

years

Next week this column will be¬

overcome

not. be underestimated.

to

the

that

many

able toward securities.

more

Chronicle)

added

wave

tide

investments.
of

taking

who

forms

pros

bond

lack

substantial

.charge of their Wilmington, Dela¬
ware
office, Delaware Trust Bldg.

With E. I.

systems.

short

a

small, uninitiated investor. This is
certainly true as far as the major¬
ity. of investment firms is con¬

that Richard G. Lowe has

elected

of

commer¬

from

The time and expense of a satis¬

(Special

Corporation

efforts

novice

factory educational

of COURT SQUARE

Borough HaH, Brooklyn

that

accounts

past

the

believed

would

Mortimer

Lowe, Blair V.-P.
been

corner

opportunity for

required.

nounce




Exchange,
Carnot

T.

day,

enterprises may be coordi¬
by telescriber communica¬

tions

might be a laudable adventure
from the aspects of its effect upon

certain bond investments,

Anniversary.

FULTON STREET at the

of

Regarding;
cultivate

stock

the books of the Bank the book value of,

our

ac¬

I believe that
favorable psychology

understand

firm.

of

bration of

that

Henry

become

building rehabilitation, additional equip¬
ment/capital stock split and dividend, and in cele¬
cost

more

permit, just

However,

vestment

Clark, Dodge & Co., 61 Wall
Street, New York City, members

have

and premiums paid, on

have

men

time

present

their

Evans & Mortimer
of the New York Stock

and

Opening New Accounts

the

not

Clark, Dodge Admits

have

Some

majority

factories

nated

this" is

bonds, presents

Harriman

Dec.

on

cial

for

.

.

Mas 110th Anniversary

Evans

*

all

long-term

enormous.

overwhelming

American

first time in many years business
is good in the investment field.

on

Bankers' Boston Office
Brown

TelAutograph's
the

ject ofjlnding wavs and means of
obtaining more customers. For the

Most

.

General

For

will' approach

By JOHN

LIABILITIES

Capital
Surplus

the

were

has not existed for many years.

STATEMENT OF CONDITION

U. S. Gov't Securities

of

Earnings

the creation

Gash and Due from Banks

In

be increased

may

1955.

man¬

dinner of

a

Hotel, Starlight Roof..

At The Close of Business

cents

In these days it may seem a bit
out of focus to
bring up the sub¬

Macdonald,

the

82

gross

trading de¬

honor and speaker at
the Club to be held

in

dividends, currently 25

quarterly

Securities Salesman's Corner

of

York, announced that C. Douglas
Dillon, United States Ambassador
to France, will
be the guest of

Jan.

up

the

against

1954,

were

from

previously with

The'Bond

share and
cents

Earnings next
$2.50
per

exceed

Traders

Institute

unlisted

H.

beginning

Sept. 30, 1954,

running
1953

York

Company

future.

should

orous

1953

$1.30.

months ended

like

To Hear G. D. Dillon
of

may

Earnings in that

advanced

&

Band Club of

dent

wave

are

at the end of

enues

partment.

Ranald

short

which

to reflect the accelerating
accept¬
ance of TelAutograph.
Gross rev¬

member

former

a

in

communications.

period

Mr.
Dorsey has been in the
business since 1936, recently with
Merrill Lynch,

is

systems

the

year

ated

written

their over-the-counter
trading de¬

partment has been expanded
der
the
direction of Joseph

poorest

common stocks

12%.

up

in

Colorado

outper¬

preferred

speculative

among

Louis-San

cov¬

were

nature.

only

was

preferreds.

were

that

stocks

that of Western Pacific which

mons

Averages.

that

nine

these

speculative

gains of less than 50% during the
year, of which 22 were common
stocks

six

long

Banking.

were

was

Dow-Jones

were

gain of 82%.

registered gains of less than 25%

advance

stocks

Payne

no

Atlantic Coast Line with

There

that of Bos¬

61

W.

ity exchanges, has announced that

American

gain of only 7%

the

Robert

tended

a

only by a sharp
the closing days of

during

Dorsey

promising

day permit instantaneous
distance
transmission
of

some

R.

months

instrument• specially de¬
office use will be in¬

telescriber
Joseph

instru¬

new

few

very

Prospects favor continuing
gains for 1955 and well

promise is

for

One

into

vague

is develop¬

and
next

line of research

of New

was

the

troduced.

that

made possible

jump

com¬

In

signed

Association

modest

a

that

even

Aroostook

models

new

a, new

only one stock in the 80%90% price appreciation range and

preferred stock which
was
up
only 5%.
Northwestern
preferred also put in a poor per¬
formance with

Bangor &

was

(up

ton & Maine

and

in

the

responsibility.

research program

ous

dividend, was and first vice-president of the In¬
up 98%; Minneapolis, St. Paul & vestment
Traders Association of
S. S. Marie was up 97%; ,and Chi¬
Philadelphia and a former mem¬
of
cago Great Western, also paying ber
the
Philadelphia Junior
no
dividend, was up 93%. There Chamber of Commerce. He is a

apparently largely if not
entirely based on aggressive buy¬
ing for control purposes); and the
was

was

category

Grande Western;

which pays

mon,

159%,

poorest showing

group

caliber

last

and the last one named
94 %. In the speculative cate¬

gory,

rail¬

common

100%

98%

up

As

Exchange, the best
percentage showing was made by
&

Half of this

institutional

up

Stock

Boston

and

Railway,
and
Kansas
City Southern; the first two being

performances
a

six stocks with gains

90%

Southern

and speculative pre¬

common

were

Unlike

which is leased, not
The company supplies busi¬
forms where needed. A vigor¬

ness

a

possible merger.

—Denver & Rio

55%

145.86.

to

a

between

year.

by the Dow-Jones

Averages the rails advanced
in

of

operations be¬

equipment
sold.

Monon
ru¬

It

instrument

TelAutograph Corporation man¬
ufactures, installs and services its

and

recurring

instantaneous.

message.

and it fixes

program.

by

sender,, it is

telephone message, it is not

ing

retirement

gain scored

its

as

is

many

written

ments.

reflected to

of

stocks.

As measured

wide

mors

the

of

some

were,

recapitalization

debt

the

the

it

it replaces the spoken with

cause

Missouri
Katy and

"B" stock probably

developed, resulting in wide

percentage gains for

com¬

considerable degree

speculative

more

a

communication

choice in

of course,

preferred.

by

The

special situations but late

year

old

affected

buying
v/as
concentrated
largely on investment grade is¬

tone

Maine

and

common;

Pacific

the

and

the

of

Dept.

&

York

reorganization hopes, while B. &
O. was influenced by acceleration

earnings literally collapsed. Even
in such
instances, however, tlie
stockholders generally fared well
market wise.. For most of the
year

sues

is

New

accurate

as

stocks

Missouri

handsomely

for these roads. On the other

there

Pacific

equipment

modernization of the rail¬

plant

Ohio

&

spent in

sums

new

four

were

showing
gains of better than 100% during
1954 were, in order of their per¬
formances, Chicago, Indianapolis
& Louisville "B" stock; MissouriKansas-Texas common; Baltimore

of the better situated prop¬
maintained
earnings
ex¬

many

the

mon,

A few roads were able
report increases in earnings for

1954

top of the list, there

Aside from Boston &

sistently.
to

sizable

and

Bache

At the

consistently below

ran

year-earlier

naturally

in

year

throughout

is

silent

Co., 36 Wall Street,
City, members of the
five stocks basically speculative in
New York
Stock
Exchange and
character but mostly falling into
other leading stock and commodthe
"special situation" category.

Bailroad stockholders enjoyed a
very

$2.00.

Bache & Go.

Well in 1954

pete with facsimile equipment. It

and

joined

Clarence

the

staff

Rogers & Co., 39
Street.-

R.

of

Kinder have

Aim,

Kane,

South La Salle

Number 5392

Volume 181

Continued from

...

The Commercial

only by reason of war conditions) have been very moder¬
ately modified, but nothing more can be said. Now, these
and other similar measures are now responsible for con¬

first page

As We See It

i

the basis of any

(85)

ynd Financial Chronicle

and
the

New

Governor

York

—

prefers

the

these things which

label

to

"prevailing

comparisons with the 1929 debacle which gave
New Deal such a good start in life.
Where

leader be found who is not

a

can

Impetus From Washington

Mr.

Harriman

Dorfman & Traviss

Lawrence M.
—

Mutual

Ripley &

have

in

headquarters

Boston

and

-

corporation

were

Gustave J.

Leroy and

Traviss

now

are

with

associated

ST.

Mr. Dorfman

with

the

of

formerly with

was

to

The

•

)

.

has

,

Mo. — James J.
become ,connected

Stock

Olive

&

Cook
Streets,

York

New

Chronicle)

Financial

Newhard,

Fourth

& Co.

Asiel

offices.

■

LOUIS,

O'Brien

securities traders.

as

.■

(Special

Sachs & Co., 30 Pine
Street, New York City, members
of the New York Stock Exchange,

will

'

,

With Newhard, Cook

Goldman,

firm's

the

New York

;

.

Vice-Presi¬

Assistant
the

V.

;

Leon B. Dorfman and James A.

appointed
Kirk

Mr.

pre¬

Schlosser.

Kirk, Sales Manager

Funds.

was

Vice-President

department

of

Charles

Appoints L. M. Kirk With Goldman, Sachs
York/City, have

Union

Manager of the organization's

dents

Ripley Go.

Weed

Assistant

Elected

econ¬

again take on a dynamic and expanding nature" and
is of the opinion that "most of the impetus must come
from Washington." President Eisenhower seems to agree
with him. The New York Governor may well presently

viously
and

of

Corporation, 65 Broad¬
New York City, has been

syndicate

New

Governor Harriman finds it desirable that "our

Vice-President

a

announced.

prejudices"? He is not in plain sight at this
moment, and the country needs him as it needs little else.

Co., Incorporated, 63 Wall Street,

omy

as

way,

slave to

a

"current

Directors of Harriman

;•

Weed,

Securities

taint.

same

The election of Walter H.
Jr.

Governor Dewey's record is certainly not-

prejudices."
free of the

thought

Elects Three Officials

stimulated

or

American

traditional

Union Securities
.

ditions in the securities markets of this nation which have

appraisal of the past should be
excluded at the outset. Although President Eisenhower
has for the most part preferred to boast of "moderation,"
"the middle way," or some other such account of his pro¬
grams, the fact remains that practically all of his positive
measures run quite contrary to the lessons of experience
study

29

and

&
Co.,
members
Midwest

Exchanges.

draw up a

bill of particulars with which the president will
sharply disagree, but the fact remains that the present
Administration in Washington has heartily endorsed the
so-called

full

employment

philosophy

of

the

Truman

Head

regime.
To date there has been

employment"

—

business

threat to "full
since President

means

Such fears

—

of

be

as

did arise

over

degree rather than of principle, and the same is to
such pronouncements as have come from the

White House

during the past two

The truth of the matter

is, of

To the New Dealer and
of the President's
party, for that matter—"prevailing prejudices" may mean
simply the lessons that have been learned through the
centuries

American

of looking at life, its problems and its
opportunities. Actually, the "prevailing prejudices" of the
day, at least in political circles, appear to be dislike and
scorn of
experience.. And—with deep regret be it said—
these "prevailing prejudices" appear to be quite safe from
harm at the hands of politicians whether in Washington,
Albany or virtually any of the other state capitals.

warranted,
New

introduce

Banks

U. S. Government Obligations
_

_

Obligations

ances and

federal.

and

Municipal Securities

.....

and

Customers' Liability

Securities

Reserves

in

with

Expenses-,

CAmA|>

Branches

,

38,100,729

.

5,500,000

.

.

$6,323,104,786

'

.

?200,000,000

.

.

.

(10,000,000 Shares—$20 Par)

300,000,000

Surplus

Total.

.

552,662,613

52,662,613

Undivided Profits

3 625,188

.

etc

Dividend

7,000,000

....

Other Assets
Total.

22,472,680

Unearned Income

27,177,771

Transit

for:

Interest, Taxes, Other Accrued

15,000,000

.

Bank Premises

Items

r

Unearned Discount and Other

International

of

18,492,300

.

■>.

4,978,328
43 819,480

Banking Corporation

46,348,564

29,344,669

Foreign Central Banks.

(In Foreign Currencies)

,

for

Federal Reserve Bank

Ownership

T0

2,337,065,556

.

Acceptances
in

$75,69J,2J.)

.

Portfolio

in

ances

Due

60,581,083

Discounts

and

Stock

'

596,283,109

.

Other Securities

Real Estate Loans

Bills.

_

I ess-Own Accept-

35,464,846

Agencies
State

$5 639,188,380

Liability on Accept-

1,842,996,802

.

„

Other

of

.

Deposits

.$1,311,011,894

way

If these appear to be harsh and
disheartening words,
let the record be examined to determine whether they are
The

from

many

embodied in American traditions, and the

and

Duf.

and

course,

accept and observe them.

the Fair Dealer—and to all too

•

i

LIABILITIES

ASSETS

Cash, Gold

Loans

years.

that the only
Washington of "prevailing prejudices" has

notice taken in

r,

57 Branches Overseas

York

of Condition as of December 31, 1954

Statement

the

said of

been to

in Greater New

outlook

brought rather drastic action by the
monetary authorities of the nation, and some other pro¬
posals put forward in part as anti-deflationary measures
were not sent to the books
merely by reason of unwilling¬
ness on the
part of Congress to do*#ie President's bidding.
By and ldrge steps taken at Washington and programs
proposed have been less extreme than some of those of the
New Deal and the Fair Deal, but the difference has been
one

Office: 5 5 Wall Street, New York

very grave

whatever that

Eisenhower took office.

Branches

71
no

YORK

THE NATIONAL CITY BANK OF NEW

$6.323,104,786

.

.

'

*

''

—

-

1

—

•

7—*

Figures of Overseas Branches are as

-

•

r

.

.

of December 2D

$40(f,3f>l ,095 of United States Government Obligations and $19,012,200 of other assets are pledged
to secure Public and Trust Deposits and for other purposes required or permitted by law.
(member federal deposit insurance

Chairman

corporation)

1'ice-Chairman of the Boatd
Richard S. Perkins

President

of the Board

James S. Rockefeller

Howard C. Sheperd

indeed, if they can safely be left unsaid.

or,

Deal, for example,

popularized if it did not

the notion that economic ills

can be cured
(or
remedied) by tinkering with what is now popularly known

as the
"money supply." Some of the most dramatic of the
early Roosevelt steps — measures which were certainly
among the "boldest" and the most startling in their disre¬
gard for "prevailing prejudices"—were those which abol¬
ished the gold standard and virtually all the canons of
sound management of the currency and related matters.
What changes in these New Deal
programs have the years
wrought? What has the Eisenhower Administration done
to change them? To ask the question is to answer it.

Securities Markets in
"

♦

Another

■

was

rities markets of the nation in shackles.

where it

was

today? Of

even

prejudices"

on

the subject

tendencies of the

day

throughout history
as

—

are

They

are

Cash

—

Through the

years

course,

it is precisely

very

He

much

"Prevailing

be too strong. The political

and they usually have been

to cater to "prevailing prejudices"
now

of Condition

as

Due

and

Banks

from

.

Obligations of

$ 27,596,547

.

85,045,1

and

getting ready to do, his

notwithstanding.

Municipal Securities

Loans

and

.

.

(Includes Reserve for Dividend

Loans

and

Securities

Federal Reserve Bank

Bank Premises

16,895,250
1,423 280

provisions of the New Deal and the Fair

(which could be foisted upon the American people




10,000,000

Capita i

.

........

1

Surplus

....

10,000,000

600,000

2,514,505

Other Assets

.

.

$143,162,206

12,037,611

32,037,611

3,134,037

Total

Undivided Profits

.

Total.

$1P,4°1.04I of United States Government
Public Deposits and for other purposes

early went to work to "soak the rich."
Some of the most extreme

$500,852)

4,658,999

Advances

Real Estate

6,049,133

Reserves

1,294,469

Other Securities

$105,075,462.

Deposits

Chairman of the

Board

Howard C. Sheperd

Pice-Chairman

.

.

.

.

$143,162,206

Ob' ga ions .-.re pledged to secure
requ-ed or permitted by law.

(member federal deposit insurance

still being soaked.

of December 31, 1954

lk

Other Federal

Agencies
State

York

for separate

LIABILITIES

U. S. Government Obligations.

Stock in

may

Governor Harriman is

of the extreme

Deal

to put the secu¬

disposed to try.

smooth words to the contrary
The New Deal

Statement

ASSETS

when President Eisenhower took office.

if he had been

Office: 22 William Street, New

.

well have been unable to do anything

may

about it

just

0

again and again and again been tight¬

ened. What is the situation

Head

Affiliate of The National City Bank of New York
administration of trust functions

Shackles
*

early New Deal action

these shackles have

CITY BANK FARMERS TRUST COMPANY

corporation)

of the Board

Lindsay Bradford

President
Richard S. Perkins

■

<

'i

r
30

The Commercial and Financial Chronicle...

(86)

Continued from page

things to stabilize the

13

inuiviauai.

tne

humanitarian

Soc'al Welfare and the Tiend

Toward Government Paternalism
pointing

by

levels

dustries

as

to

wiin.n

While

did

insurance

the

persuading

in

succeed

not

great

ing

it

base,

that

said

be

cannot

the

with

line

the

wage

average

con¬

The demanc.s xor a mucn
higher tax base, the idea that a
change should be made to recog¬
cept.

nize

the

increase in

great

wages

influenced the final dec sion.
the

reasons

concluded

P or

given, it should not be
h.at the disposition of

be

the

limit.
In

appraising
these
develop¬
ments, it is difficult to resist the
that Social Security in

conclusion

its

Most

think

to

is widely ac¬
Americans appear

form

present

cepted.
system

the

benefit

with free

levels

enterprise,

destruc¬

nor

tive of indiv.dual incentive.
editorial

and

this

the

of

incompatible

neither

are

comments

Press

support

MofeaVviy
it
a funda¬
mental
chan ,e
in our national
thinking is taking p ace.
This

inescapable ihat

to

un¬

of

magnitude

the

commitments,

future

system's

break
with the basic floor of protection
lead

could

to

complete

a

rule. Gradually a

believe

to

reason

national pension

emerge. But there
that the era

might

system

ingratiating intervention in tne

OASI

field

close.

More

be drawing to

may

and

social

about

the

more,

security

a

facts

becom¬

are

ing known. The idea of mortgag¬
ing the future is frightening to
many

mean,
cease

This does not
however, that welfare will
to occupy Congressional at¬
legislators.

The

tention.

trend

too

is

to hope for that, .but there are

other

to

areas,

on

pressure

•

The

attractive

most

for

political

is in the field of health. We

witness

in

the

next

might

years

that voluntary insurance as
important part of our enter¬
prise system has a greater re¬

struggle between the major politi¬

an

cal

sponsibility than

the

size

the

risks

empha¬

to

ever

of

over-expanded

^ocial programs and the import¬
of

ance

voluntary insurance in

Economic

our

system.

In

meeting this responsibility it
hoped that recent failures to

is

defeat

increases

in

Old

to

Age

and

will"

Survivorsv benefits

nob

lead

feeling of futility, or the
adoption of a hostile or unreal¬
a

parties to dominate and claim
for welfare
legislation in

credit

health

field.

This

contest

OASI.

overshadow

could

Conse¬

quently, there pre indications that
the
upward movement of • OAS!
benefits
may
have
come
to
a
grinding stop/this year and in
absence

the

this

iife

inflation

of

stabilize

may

But

current levels.

near

does

benef ts

not

that

mean

the

insurance business should

lax

its

efforts

euueaung

re¬

#

uie

A

under

the

OASI

system have not

greatly over-expanded. Al¬
though the benefits moved sharply
upward during this 15-year
riod, the liberalizations bear a
lationship to
changes that
curred in

War

pe¬
re¬

oc¬

the American economy.

and

sulted in

inflation

postwar

great increase

a

sumers'

prices.

earnings

more

re¬

future
of

generations. Teachers

tribution

con¬

Typical employee

in

over-

In

20

with

could

staggering

a

Under the basic floor of protec¬

benefits

has governed

structure, the

is

bound

flect

long-range

trends.

The

to

re-

inflationary

insurance

business

years

form of

insurance
8

million

increased

almost

100

million. During this

period bene¬

fits

and

have

expanded

have

so

hospital and medical costs.

Tnose

who

legis¬

favor

lation

to

Federal

help

welfare

individuals

meet

the economic impact of death, old

benefit
in¬ age and unemployment are now
higher living stressing the economic ravages of
iss _e is—have poor health and the cost of medi¬

opposed

to adjust for

creases

The

central

social

security benefits outs.ripped
living costs?
The
answer is
"yes, but not much."
the increase in

Social

.

security

benefits

have

two to two and one-half
times since 1939; living costs have
gone up

cal

care.

Whether

we

should have

compulsory health program
still an issue in this country. *
a

is

less

evaluating

confusion

three

will

we

the

cost

meaicai

of

have

capacity

developments

in

the

field of health

arid

Senate

insurance

Benefits have not gone up as fast
as

wages,

the

last

which
15

have

years.

tripled

Consequently,

steeper today than it was 15 years
ago. This is as it should be. Social
security benefits should be geared
to

(c)

eral

unfavorable.

Tnere

level

alarm.
ance

of

itself

The

concern,

for

cause

efforts

business

and

of

but

is

extreme

the

others




it

insur¬
in

op¬

reinsurance

to

stimulate

adoption and expansion of
voluntary h e a 11 h^insurance
plans.

terest

matter

in

investigated practices in

All

this

activity at the Federal

demonstrates
in

health

the

keen

insurance.

It

in¬
is

obviously a major political issue.
Congress' interest is another illus¬
tration of the trend toward doing

reiiect

state

Congressional
Act.'"This

levicw of tne Mc^arran

tne- approacn

tion*.

tnat

company

on

supervision,
but
rather
would!
tend to strengthen Sa_h
supervi¬
sion by avoiding conflicts which

enact-

rem ate"

vol-

buc.f positive

is

/

,

now

under cunsidera-

1

mio a s^a e

licensed

The

le-

or

Federal

Reinsurance

Bill

exists

in

t..e

advertising.

field

It

tions Jike the Blue Cross.

Act.

risk

with

t

q^aii y
for
reinsurance,- t :e
plans would be required to meet
ceitain
the

of

co.ld

could

Such

ther

subordinate

the

would

stimulate

medical insurance.
proposal is consis

business

pow-

Advocates

measure

of voluntary health in¬

and

of

ment

the

the

on

recent

coverage

to

protect

against

serious

and

the

great

prolonged

On the oiher hand tnere

sions,
The

practices,

ox

fur¬

of

Ti.ey claim
th t

enc w

helping
the

serve

immediately
range

mittee

-

business >

CONDENSED STATEMENT

long

a

OF CONDITION

to overcome these

program

criticisms.

provi¬

advertising.

undertook

•

COMPANY

Office, 37 Broad Street

crit¬

was

health

and

/

^

-

"

■;/

;

A

joint industry com¬
organized to conduct

was

December 31; 1954

.

n

:

y

studies and to make recommenda¬
tion

improvements.

for

Also

I

on

positive side the two principal

ac'cident and health

tions

trade associa-*

adopted advertising codes. '•

Federal

Commission

Trade

I

Investigation

,

...

During
F.

T.

has

this

of

most

C.

been

g

State and

doing

any

The

asked

A.

each

H.

&

companies

readily

with this request.

Commission

17

.

.

.

.

.

insurers

complied

complaints
al

Customers'

Mortgages

Liability for Acceptances

Stock of the Federal Reserve Bank

.

2,612,485.96

Banking Houses

.

.

.

.

will

be

future.

.

783,385.86
381,580.72

.

$564,344,125.01

advertising. in

business
of the

LIABILITIES

Capital

32,500,000.00

was

the

responsiole

A.

&

H.

Undivided Profits

for.som,e.v

relating to A.
JT
(2) that the' compiatn-p'

procedure would

more
effectively
bring loathe attention of

business, and the public AbAv
for immediate actioPlPtbfs

the basic

the

Commission's
the

legal question

as

jurisdiction

questionable
insurance

11,274,204.81

$43,774,204.81

January 3, 1955:

Regular

$435,000.00

Extra"')

217,500.00

.

Unearned Discount

652,500.00

——i-

2,146,076.69

lor Interest,Taxes,
Reservedfor Interest, Taxes, Contingencies

-Juceeptarfces

5,711,191.90

$6,155,029.22

Less: Own in Portfolio

Underlying these"consliferations'
was

....

Dividends Payable

received

regulate

17,275,000.00

the

complaints the Commission^

policies;

$15,225,000.00
.

The issuance

was probably dVctatecTby
Commission's, conclusion (1)

that

2,237,670.23

Other Assets

Surplus.

additional"
filed wifnln

plaints
the

975,000.00

.

.

.

...

segment of the individmaPaccident and health bus.ne.s.
We

plaints

3,354,058.77

.

Group accident

tial

near

299,274,599.11

Accrued Interest Receivable

...

that

2,479,870.55
.

.

advertising' hasl ndt2challenged.

advised

26,472,569.12

~

The 17 complaints issued by the *
Commission involved a substan¬

are

86,145,905.12

.

.

*

.

.

f.

.

health

been

in

-t

.

In October the

issued

Commission Act.
and

.

.

F. H. A. Insured Loans and

cOmplaily

bus hessr 'TTo

..~

Loans and Discounts

its advertising lor review.

send in

.

Municipal Securities

Other Securities

the

investigating
sing. The

health insurance advert

Commission

$139,626,999.57

U. S. Government Securities

•■

year,

RESOURCES

Cash an<LD*e from Banks

2,269,866.76

.

To¬

3,885,162.46

other Liabilities

684,838.90

to
to

Deposits

507,490,150.25

.

advertisin

busi

$564,344,125.01

know

thgt this legal que^tfpp
carefully -briefed and
F. T. C. lawyers
elusion that the
the

power

states where

to

"

ft'

reached

regulate

United States Government Securities carried at

______

Commission
in

has

those

advertising practices
adequately regulated by
state law. They also claim
juris¬
diction inrthe
sending
ad
are

not

**$22,147,854.59

are

pledged to

and for other purposes as
MEMBER: N.Y.

ices

public and trust deposits,
required or permitted by law.

secure

CLEARING

FEDERAL

FEDERAL

HOUSE

RESERVE

ASSOCIATION

SYSTEM

DEPOSIT INSURANCE

le

private
public need.

of NEW YORK

cost

illness.

policy

and

coverages

accident

AND TRUST

develop¬

medical

major

of

icism

rapid

of

believe
the

expansion
of
voluntary
insurance, particularly ma¬

philoscpny

course

a

it

heal th

re¬

standards.

reinsurance

blot

yf F.rsT. C. com¬ jor
.tlr aQkd ng a 1- the

publicity.
not

n

In order

to

The Public National Bank

was

comment

Commis¬

the

is

a

Trade

tne

not

de¬

and

field, of. advertising.

generally.

Federal

insurance advertising.
Congress considered and re¬
jected a bill to establish Fed¬

living costs, not to wages. All
in all, what has happened to date
not

health

health

in

the step down from earned
wages
to
social
security
benefits
is

The
sion

investigated

would

wouid

picmosed

any

of the

be

can

expansion

(b)

Congress

in

uinaiy procedure,
action

adverse interpretation of

the

would

favorable

partly

as

partly

benefits in relationship to the cost
of living has not been substantial.

con¬

an

verse

need

Everything

over-expansion

any

not

McCarran

duce

of

favorable

H.

the

the

Insurance

ve^>vi0ai,.ons oy Committees

House

(a)

doubled.

avoid

of

Investigation

Health

Commissioners

The results of Congressional in-

of

about

is

now

plaints

that challenge the
voluntary insurance system.

sidered,

of

care.

Congressional

Insurance

prooabij sair

to

aovertning

it

insurance

voluntary insurance to spread the

has

Within the past year there have
been

which

advertising of i.idiMdlial p5x~k
icies violated the.-Federal:.Traded

voluntary

has
to

problem

their

the number of per¬

some

impaired

insurance

b., stifcii^uxeri ng stale regPresnn.ao y trie s ate

participate

standards
Meeting it; T. C.
through voluntary procedures has
been 6cllf,aoe^4r^
suggested';and could serve
to
dispose
of.
^the uncer.a nty

problem oi

the

and

an

the

against

with

from

tion concept, which
the social security

costs.

levels

Health Insurance

health

have bean

may

expanded.

never

by

burden.

cial

of

benefit

them

saddle

sons

has

is not

in

con¬

program

than kept pace with

rising cost of living.
These
changes should not be ignored in
appraising the extent to which so¬

security

a

already im¬

Tne

which

will'

power

na.npsred

F. T. C. juris¬

gaily, present, t&veral Cumpames
This bill would have permitted
charged by the J. T. C. have ai->- the government to
reinsure, preready contestedvthe Commission s paid Health plans issued by.in¬
jurisdiction.
#
surance
companies and associa¬

can,

valuable

a

such

to

explaining to the oncoming gen¬
erations that their future earnings
must bear a heavy tax charge to
pay
for the benefits now being
provided and that additional in¬
creases

in

make

course,

the

level

indigent

lives

security

been

in

and the quicker this is understood

the

in

American people in the dangers
15-year review of
of an over-expanded System and
legislation
will
the tremendous cost of the exist¬
demonstrate that nolvviths.and.ng
this year's reverses,. the benefits ing system which will fall on

istic attitude.

social

the

C.

advertising

buy

~01ve

assistance.

direct

T.

the

sends sucn

to

(2)

should

the

en-

Tne

uialory ia\v.

aao^ted

car

oe

not

oust

of^ sucn regulatory statutes,' might result in a"
F.

for

problem wnich gov-

present a

ernment

a

means

the

paired. inese groups of individu¬
als

legartilejs

in

Act

of

But

ciaim

be¬

is

Practices

would
to

nut

coaiu

jurisdiction.

c.

x.

exio-t

its

diction

act

an

passed, the F. T. C.

it.

(1)

and

health

their

cause

suen

so

of

uninsurable

are

Trade

system

afford

wnere

been

F.

delegated in
because vol¬

as

Act,

compliance

aUa-ness

in

states

Mcuarran

ment

blame

coverage

Practices

of

Fair

disposition
tnd

a

Trade

states that have not

,

to

ia.£j

the

course, empxias.zcs tne
importance of exacting tne model

ade¬

be

to

insurance,

those-who

surance

10

of

health

any

This,

recent

/

is

cannot

;

welfare development

new

V';"'

msuiance

who

those

scribed
.

likely

quarters

absence

in¬

thus relieving the
the
OASI
benefit

structure.

area

some

voluntary

shift

a

least

are

untary

will probaoly ciaiin junsanction.

insurance

nealtn

neeu

^ihat the F. T. C.

Fair

states

has not

by pointing to the met that

moreover, tnere

the

in

mace

advances

quately insured.
in

provide

the

the

is

the

of

willing¬

of

ers

recognize that

believed

model

le¬

or

k

sufiicient to oust F. <T. C.
jurisdiction, but in at least some

there
has
minimize the

to

fTbt licensed

are

eventually

Act

protection,

tendency

tiiose- Vvno

strong

dications that there will be

conclusion.

seems

public

the

of

the

derstand

of

from

a

happen. Political pres¬
for more and more benefits,

failure

and

a

years

in the futures-

over-expanded

sures

octii

most

....

.

could

basic lloor or
protection
concept,
it
appears,
however,
t h a t
Congress
has
stretched the principle to its very
parture

was

:

It

is

question

narrow

a

Will the Social Security system

complete de¬

this

to

range.

Congress to keep the $3,6u0 wage

change to $4,200 is seriously out of

over-expansion

Because

to

is

state

dealing with

in

indiviuuais

record, objective opposition
has been quite successful in limit¬

business

terion.

will

capacity and

txie

oi

complete

the

It

suojeei is warranted.

posing over-expansion of benefits
has not been in vain. As I view

cri¬

suitable

more

a

average

basic in¬

certain

in

great

patience

appeal,

they

gally present,

voiuinaxy insurance must expand
ness

action

doing

nas

sick

uiiue*Standing

aiiu

tne

wage

the

lor

someuung

where

of

economy

Because

Thursday, January 6, 1955

CORPORATION

Located Throughout Greater New York

.-r

Tbey

' at

meuicine

bank

there

is

rn

government insurance of
deposits.
Opponents
feel

gages or

would

and the

'plan

mignt

lead

social

to

med¬
•,

difficult

is

'-It

establish

to

failure.

the absence of

reinsurance

into

.converted

might

program

.

be

medicine

social

a

\plan, the inability of .he sponsors
demonstrate

to

legislation—all

had

bearing on
plan

a

liberal .enough

not

tne

ror

The fact that the

the result.
was

ne_d

the

credit

of

to satisfy

that

measure.

is

plan

not

issue

again in the next session of
Possibly it will be in¬
in

troduced

form that will

a

meet

of the object'ons to the orig¬

some

inal

be

The

bill.

wdl

business

insurance

called upon to

take

a

po¬

sition.

possible

bill

but

insurers

Several

plan,

further

suggested

the

oppose

study.

endorsed

the

openly

others

opposed
Now is the time to ca* ry out
recommendation for f

our

rther study.

there other approaches to

Are

considered?

Will

able

be

we

be
to

industry position if
bill is introduced?
facing a chnice—somelike the reinsurance plan,

develop

an

improved

an

Are
;

it.

we

thing
or

result in

would

in

petition

that

government

the

Is this

field?

armroa^h

direct

more

a

health

another

com¬

insurance

example of

ingratiating intervention?
"

If

in

think

we

is
-

of

terms

toward

the

field

is

the

this

welfare

ceed?

These

are

Or

which

will

not

a

suc¬

difficult de¬

very

make.

to

that

the health

in

area

program

cisions

legislation,

in

indicated?

is

one

trend

conclude

to

some'Federal action

insurance

questions

over-ad

welfare

more

reasonable

it

these

of

They

are

very

decisions.
The future
voluntary health insurance is

important
of

of

laws.

ifriow

or

Federal

the

discussed

ulate

Federal

lation

is not direct regu¬

power

of

insurance.
There are,
other situations which

however,

conceivable

the

Unlike

raise

could

Federal

of

This exercise of

advertising.

State

vs.

F.

C.

T.

the

issue

regulation.

devel

pinent

these other challenges resu.t
criticisms

activit.es

of

utilize

who

others

of

services.

insurance

Federal

With

from

welfare

systems

dustry.

Another

regulation

eral

level could

tary

insurance

compulsory

Fed¬

hobble volun¬

so

services that the
would have
This must

es.

Every threat of Fed¬

regulation must be carefully

eral

appraised.

of

an

1954, as

an

accident and health insurance, the
Senate
der

the

Judiciary Committee, un¬
Chairmanship of Senator

Langer,
credit

initiated

tigation

interested

became

insurance.

this

with

The

phase of
a

its

ing

this,
sent

ance

a

second

to some 5^

companies.

inves¬

questionnaire

the State Commissioners.

was

in

Committee

to

Follow¬

questionnaire
or

60 insur¬

Hearings




were

life

in that capacity, As of Nov.

pate

dental

death

claims,

Metropolitan

Civil

Life

Insurance
selected
by the

was

Service

Commission

as

and

had

The1

dismemberment

paid

been

Joint

Committee

Continued

the

in

on

is

Qjc'tcc/vlb
PERCY

in

CHEMICAL

Il?il954. He recom¬
that Congress conduct a

of Jan.

sage

mended

legislation

and

millions

of

werkirg

initiate^ its investigation
circularizingt a questionna're
insurance

concerning

practices

with

benefits.

The

ROBERT

165 Broadway,

R. WILLIAMS

Ichabod T. Williams & Sons

jespect to isured
subcommittee also

ROOSEVELT

K.

JOHN

%<)}({{<><j/ cC<jitf{fV('ori

Roosevelt 6* Son

k-

At the close of business

;

Partner,

December 31, 1954

.

R. McWILLIAM

JOHN

harold

ASSETS

Cash and Due from Banks
U. S. Government

effort

an

made

was

,.

.

.

$

to

647,566,435.54

cason

insurance

of-

It

President,

Associated Dry Goods Corporation

com¬

Loans

£75,580,137.24

.

...

bracken

stanley

Chairman of the

Taft-

under

commission

of

Banking He

argued that regula¬

was

Customers' Liability on

the

at

being

9,106,511.70
5,644,376.38

problem.
say
now

outset of

faced

be

with

either

State

Capital Stock

.

.

Surplus,

the

Undivided Profits
Reserve for

.

J 9,059,616.78

Contingencies

/

.

.

.

Reserves for Taxes,

Expenses, etc.

Dividend Payable January

l\ 1955

.

be

ing to

.

.

.

government

itself

the

encourage

of voluntary

institutions

2,147,000.00

hillman, jr.
ndustrialist, Pittsburgh

clarence c. stole
Pennsylvania Research Corporation

€4,591,372.65
4,080,072.01

g.

holloway

Chairman, W. R.Grace & Co.

frederick e.
Chairitian,

$2,£01,737,163.48

Chairman,

Lykes Bros. Steamship Co. Inc.

Securities

carried

at

$144,651,000.00

deposited to secure public funds and for

in the foregoing

r.

lowry
First Vice President,

statement are

Ingersoll-Laad Company

other purposes required by law.

william

to

p

worthington

President, Home Life I usur a nee Co.

utilization

insuiance in one in¬
in

another.

I

98 Convenient Offices Throughout Greater New

am

York

speaking of tile insuring of Fed¬
eral

en

life

insu

untary

Program

companies
ance

Home

basis

a

group

Charter Member Sew York Clearing House

the Vol¬

Credit
lending
assure. the

Member Federal Reserve

Mortgage

through

institutions

on

and

Every Banking and Trust Service at Home and Abroad

private

through

ployees

insurance

hope

which
to

hasler
Haylian American

joseph t. lykes

donald

1954 the
steps

h.

Sugar Company, S. A.

the services of savings

stance and

j.

services
through

took

further

Trustee

10,146,601.17

2.624,475,493.86

Deposits

Voluntary Action

tnat during

note

stevens allen

frederic

7,237,007.01

william
.

Despite the tendency to look to
may

ts/c/ueliciy r(oOPHtniMee

189,059,616.78

Director,

Other Liabilities

various
provided

$

I

most serious consideration.

lor

kigcins

U. Bull Steamship Co.

A.

1

•

.

government

a.

President,

127,060,000.00

Acceptances Outstanding (Net)

vs.

willard

$ 42,940,000:00

regulation
are
far-reaching
in
their implications and deserve the

Intervention

President,

.

Federal

or

black

james b.

Pacific Gas and Electric Company

The
problems posed by the considera¬
of

goelet

g.

Real Estate

extent.

what

to

so,

Liggett b" Myers Tobacco Co.

LIABILITIES

>•

necessity of taking a position on
the
question of whether union
welfare funds should be regulated
if

e. few
President,

tainly, however, the life insurance
will

Commercial Solvents CorporalioH

robert

than there was at the
the investigations. * Cer¬

business

York

President,

$2,£01,737,163.48

that there is more confusion
as
to the praper legislative

approach

'New

woods

j. albert

benjamin

likely solution to the
It is probably correct to

the

C.ravath, Swaine 6* Moore

james bruce

Other Assets

legislat'on has
Federal level as

of

type

one

emerged

t. moore

maurice

'

Receivable

Board,
Inc.

Western Electric Company,

61,428,777.03

Acceptances

Accrued Interest and Accounts

in order to control abuses in

No

9,029,572.87

Owned

uses

neces¬

was

Far,trier

j. McKIM

panies for their, commission pracv
tices.

jr.

j. callaway

robert

8,760,030.85

Other Bonds aid Investments

humphreys,

Chairman and President,'

emphasis

criticism

e.

United States Rubber Company

355,653,973.25

State, Municipal and Public Securities

from general
welfare fund trustee responsibility

helm

ii.

Chairman of the Board,
Aetna Insurance Group

828,967,348.62

Obligations

President

McCain

ross

w.

h.

Philadelphia. Also during a
conference held by the
O.

-V'

-

Vice Chairman

recent

the

Uphamb'Cq.

Harris,

hearings

I.

HARRIS

HENRY UPHAM

mmittee has not yet
but has conducted
studies in San Francisco, Chicago

to

BOWER

Chairman. Trust Committee
THOMAS

lic Welfare Co

shift

Real Estate

JACKSON Chairman

JOSEPH A.

New York

.

tee of the Senate Labor and Pub¬

C.

Corporation

GOELET

N. BAXTER

headings ir^JLos Angeles and
recently openecl^further hearings
in Washington.^The Subcommit¬

and

York

Nichr's Engineering

6* Research

BANK

neid

held

SHERIiR

B.

Chairman,

company

,

Drysdale &* Company

C. WALTER NICHOLS

Welfare

by

DRYSDALF.

New

the

the House
and Public

subcommittee of
on
|,abor

Hoartl

.

A.

DUNHAM

and

men

Committee

.1

CORN EXCHANGE

who are-the beneficiaries.

women

A

for

funds

these

conseive

HOUSTON

Honorary Chairman of the

Partner

protect

to

JOHNSTON

K,

ROBERT

study toward the end of enacting
necessary

H.

Chairman, Executive Committee
FRANK

.

System

Association

Member Federal Deposit Insurance Corporation

con-

page

funds became evi¬

by-^President Eisen¬
his Taft-Hartley mes¬

an

$3,198,412.

for

private enterpr.se, it is encourag¬

Insurance

outgrowth
investigation of mail order

Early in

group

desire to partici¬

active subject in

very

focus

into

which

Credit
.

standard

•

163

reinsurers,

as
a

29, 446 claims, including 38 acci¬

amount of
r;

March of this year, was to pro-

systems

the decided advanta
be avoided.

at the

the

pattern.

during 195d'and was brought

dent

tion

state

preserve

■

follows

plan

eligible to act
haVe indicated

Welfare Funds

in these

terest

regulation.

to

program

The

$70
million.
There are
approximately 1,750,000 employ¬
ees
covered,
of
285
companies
mately

Washington toaafy is that of union
welfare funds.
Congressional in¬

and

est

the

law.

companies.

■ ■

Union

competing directly with voluntary
insurers it is in the pubiic inter¬
Excessive

into

enacted

was

einizacion of the Federal Gcvern-

administering welfare funds.

I

"thfe "first conference,

smaller

in Other areas of in¬

abuses

the subject of health in¬

surance

than five months after

the

regulation of insurance can result

sary

Trade Commission's efforts to reg¬

more

of

The. amount of insurance cur¬
rently in force is $7 billion with
an
annual premium of approxi¬

This is

demand

Regulation of Insurance

Under

Aug. 17,

on

favor

require

to

Hartley welfare plans
Federal

As
1954, just a

give effect to the proposal.
result,

eligible to partici¬

are

reinsurers according to a
formula based upon group life in¬
surance
in force but weighted in
as

"strccessful enforce¬

insurance

exampie

tion

stake.

at

long and diligently

companies
pate

need to re¬

15

Law

states to have

hower

did not

committee

.

"

This year we

to

co^piracy" "between ment s personnel system. One part
and lending of this program, announced in Company

Public

an

Congress.

gratifying

ALC-LIAA

joint

little

Federal Employee Group
Insurance

develop¬

a

most

was

concerned.

mittee worked

.

of

question
write

which

appointed to give technical
advice and consultation; that com¬

•:

,

of

principal insurer and is adminis¬
tering the program through the
"Office of Federal Guoup Life In¬
surance" in New York City. Other

hearii|| had ra.sed tne

the

from

reinsurance

u,

this program,

up

ail
A

a

J

cooperation

was

companies and Other sav-

companies

an

Undoubtedly, it will be

to

the

life-insurance business in set¬

ment

jn&s institutions proved thuir abillly
w01^
a dhficult prob*em through cooperative effort,

a

A tiMe journal, stated

ment'

This

the

with'

loans,

agencies.

the
the

dead.

the

insuiance

tne

some

in

re-

of

and

insurance

small

"gigantic

a

of

whv

explains

liberals

abuses

"tie-in"

any

surance

legeu that credit life insurance is

Congress joined
conservatives
in
defeating

labor'

possible

in-

been

the

ting

resenting a finance company at\ The present Administration has
the Raleigh hearing reportedly al- as one of its objectives jthe-mod-

the

that

has

interest in correclegislation, one witness rep-

tive

Insurance

health

Association

Medical

similar hearing

a

corresponding

plans, the concern of the Ameri¬
can

in

of

appeared,

Raleigh, N. C.

from

making

specific prescribed

for

standards

also

Committee

sulting
sale

the

for the bill s
The newness of the idea,

responsible

reasons

held in

terested

icine.
i.

lecenciy,

The

indisatisiied

bo.h

received

and

couraging.. signs. They demonstiate an awareness on the part of
government that it should not
undertake any service whicn can
be provided on a voluntary basis,
Of equal significance, the life in-

companies

companies,

dissatisfied

-

was

put tne government in the

health insurance business

finance

borrowers,,

More

widely Used, tnat it

of tne
intervention of government. private enterprise wherever pos¬
Representatives These two developments are ea¬ sible, the Administration sought

as

insurance

vxd.ai

Health Reinsurance, that the plan-* and
would not be

well

as

numerous

and

Federal

for

need

no

Auorney

with

employees

insurance.
Following
its announced policy of fostering
life

group

-small; communities, ^remote areas
General and for minority groups, without

Insurance- Commissioner

Kansas

government insured mort¬

to

n

the

by

Federal

vide

availability of mortgage credit juv

Topeka, Kam, on Sept.; 20

in

business,-but something*;.- and

ot

vasion

.

inch Tune 'appearances -were

vv

ma^e

plan is not an in¬

L*e reniaciuin-e

ak

< held

opposition to socialand contend tnat

express

izfed

31

(87)

Number 5392 ...The Commercial and Financial Chronicle

Volume 181
i

32

(88)

The Commercial and Financial Chronicle...

V

their

cated

iContinued from page 31

willingness to partici¬

type

Military

Social Welfare and the Trend
ti.;uing to study the feasibility of The Housing Act of 1954, as first
providing a comparable program considered by Congress, contained
cA health
insurance for
Federal provisions for rechartering a new

sarily

beyond the life insur¬

goes

life

in¬

there is some doubt that

surance,

such

a

jolan

up

set

Unlike

companies.

ance

much more
and neces¬

"on

/btT satisfactorily

can

national

a

uniform

basis. Several alternatives

are

be¬

ing discussed and this matter will
doubtless

continue

be

to

active

during the forthcoming session.

There is also under considera¬
tion

the;

of ,insurance or in¬
to
provide

use

mechanisms

surance

health coverage for dependents of

military

personnel.

Presently de¬
pendents of servicemen living on

military

establishments
receive hospital and medical care
near

or

a*

the installation

Tie

Defense

terested

benefits
icemen

in

Department

a

for

without charge.

system

of

dependents

who

do

of

live

not

in¬

is

insured
serv¬

near

;r.ulitary installation and who

a

are

and expanded FNMA for the pur¬

of

pose

market

loans

providing
well

"special
As

secondary

a

facility for VA and

as

assistance"

functions.

sion, the life insurance companies,
through
the
ALC-LIAA
Joint
Committee

proposed

Economic

on

nority
well
and

by

ers.

As

into

o: a

by

the

adoption

Home

of

Mortgage

the

The

been

So

However,

was

the

to

limit

the

reduce

it will by that much

activities of FNMA

the

need

for

further

action.

ernment

The program

increase

the

We

surers.

time

and

various

in

effort

aspects

Appearances

much

devoted
the

past

to

problem.
made in con¬
this

of

were

overall

credit

from

but

supply

of

is aimed

at

Program.

insurance

system

tory

benefits

of

would

contribu¬

new

a

for

sur¬

of servicemen.

vivors

Personnel

Federal
be

to

known

As

Committee.

has

Kaplan

likely

more

This

assisting
eligible areas

ment

experience,
the

life

relationships

to

should

neither

adopt

by adopting

the

tion

for

first

$100 of gross

in

institutions.
companies

108
have

life
indi¬

beneficiaries

of

80%

the balance,
(3) participation
military personnel in the so¬
security
program
on
the
regular taxable basis. Under this

proposal the free indemnity bene¬
fit of $10,000
would be discon¬
time that the

Committee

report

studying

basis.

Kap¬

was

Benefits

the

aimed

problem
on

as

a

piece-meal

a

Historically, this has been

survivor

benefit

come

four

have

program

jurisdictions of at
standing House Com¬

mittees.
This

Se'ect

concluded
but

ed

joint

Committee has just

hearings which includ¬
not

were

limited

ALC-LIAA

filed during the
cific
proposals
certain

to

overall

there

statement

made

but

were

principles

benefit

them,

should

were

that

the

should

level

reasonable

incentive for

not

limits;

remain

an

that

area

of

serviceman to pro¬

a

vide

supplemental protection for
his dependents through a personal
insurance

and

savings

program.

In conclusion

said

about

we

are

attitude

of

is stronger than the in¬

is obvious from

problems

I

attitude

our

with

when

legislative
area.

the nature of

have
in

discussed

given

any

It

the

that

situa¬

tion must take into account all of
the other problems we face at the
Federal
level.
The

long-range

trends

which

concern

is

also

view

our

of

are

particular

to the life insurance busi¬

must

ness

be

considered.

that

business

a

It
so

vitally affected by Federal legis¬
should not adopt a com¬
pletely inflexible attitude in any
given
that
of

PATERSON

area.

we

This

does

effort

follow

a

to

forestall

practice
issues in
dras¬

more

intervention, although in

situations

The

alternatives

approach

years

has been

study.

helping

that

taxes

some

are

high.

A

to

being nar¬
voluntary ac¬
great hope for so¬
by

There is

tary insurance is caught between
It

will

survive

be¬

idealistic, realistic

and

offers security
fice of liberty.

one

some

must

be

have consist¬
of cooperative

be described
in

government
some

its

Better

Tax

without any sacri¬

of the prob¬

resulting from the demands
society, yet reserving the right

to oppose solutions
that

the public interest.

are

of

these

riod. Last
reduced

in

made

we

year?

to

tax

legislation

How far do

this
have

we

go?

not

in

Through this

$1
billion; mosfc
10%—liquor, gasoline,

tobacco, and automobiles excepted
-^were reduced to 10% or in one

in

sticks

to

policy,
on

CED

have

measure

and
of

some

I

in tax

progress

would

like

them to

Individual

call

to

illustrate

our

Income

the

ual

income tax

reduction

a

in any future

tax

We said that

program.

income

brackets

should

ranging

90%.

That

net

means

incomes of

1,

half

individual

income

by

1954,

The

11%

tax

that

rise
Act

of

good,

1951.

This

is

all

but

hardly reason
for complacency. The task of re¬
dressing the imbalance in the rate
structure of the individual income
tax

still

must

be put in the cate¬

gory of unfinished business.
it

is

possible

When

to

talk

about

again,

reductions

this

should

tax

be

given high priority.

corporation

April—from

excise

eliminating

taxes.

of excises

on

With

the

selective
exception

liquor, gasoline, and

tobacco, which,

we

regard

as

spe¬

cial cases, CED feels that the Fed¬

Government

should

possible meet its

revenue

ments

if

consumption

without

sales

or

way

because

excise taxes.

these

require¬
or

We feel this

permit

taxes

on

distinctions

to

be

do

not

mad-e

the basis of the taxpayers' in¬

come

and

CED

family status.

recommended

this

to

to

to

tax

down

come

52%

allow

47%.

a

is

this

This

post¬

was

other

reductions

Congress and the Adminis¬

tration

considered

more

impor¬

tant.

CED

has

strongly

in

urged

statements

many

the

de-emphasis

of the corporation income tax. Too

ry business decisions today are
inated by a desire to avoid
excessive

poration

damage
income

from

tax.

the

new, productive ventures
fers accordingly.

Just

as

strongly,

bill.
not

that

who
We

we

we

that

little

so

foots

this

sumer

the

tax

is

cor¬

It is paid by individuals

—consumers,
earners.

to
the

on

ultimately paid by the

poration.

suf¬

object

know

ultimately

know

cor¬

Investment

in

stockholders,

wage

How much does the

con¬

in

the form cf higher
prices? How much is paid
by the
stockholder in reduced
pay

dividends?

corporate
How much is paid
by-

wage earners in the form of lower

wages?
Few taxes have less
just fication

either

on

in regard
year

in

Tax

income

through last April,

about
in

tax

inherent

reduction, originally scheduled to

grounds

government has also made

start

sales

a

is

the corporation income tax

Excise Taxes
The

selective

excises.

also scheduled

provided for in the

Revenue

of

that

Corporation
The

which

was

the

lesser evil than the dis¬

a

selective

poned

the Korean War—

all

universality

the

in

for

crimination

dis¬

we

the rise

four

outstanding except those
liquor, tobacco, and gasoline.

makes it

go

Jan.

about

the

to

range.

occasioned

to

40%

say,

in

feasible

a

Federal sales tax at the

a

level

share

couples in t.e $25,000 to

Effective

carded

from,

r.ot

this proves to be
true,
have recommended the substi¬

reduction; but major emphasis

now

excises

is

years

If

excises

should be placed on reducing rates

the

selective

five

win¬

reduction

revenue

taxes.

It may be that the goal of elim¬

inating
to

we

to ask high priority
of the individ¬

us

for

in

scheduled

raising about $.9 billion in

tution of

economic

billion

this

if

proves
possible, how¬
ever, the government will still be

one.

last

for

concern

growth led

in

involving the loss

Even

reduction

on

all

reduced,

and

scheduled

are

perhaps another $1

revenue.

This

automobiles

parts

of*

the

Tax

statement

10%,

liquor, gasoline,

be

retail

tax

our

ter,

below

on

to

yard¬

many

to these questions.

answers

In

to

cases

"2s6bp1, excises

via selective excise

We

if conditions

about

rates above

automotive

past

taxes,

four-to-five-year pe¬
April, excise taxes were
a

tobacco, and

Structure?

as

search

lems
of

tion

permit, in

tit two

point of view of stim¬
ulating economic growth — and
from the point of view of fairness
—just how much progress have

eral

we

This may

for solutions to
*

the

From the

mean

ently followed during the last five

Jersey

risky,
is

How Far Have We Moved Toward

a

should

compromising major

an

tic

not

carefully weighed.

Borough of Totowa

in new,
ventures—then

saying

too

lation

/ NATIONAL BANK
fAND

invest

productive

be

toward

particularly

dealing

proposals in the welfare




objectives

time to reexamine the tax
system.
Then there is a prima facie case

$200,000

word should

a

our

government,

COlPOtAflQM

tion.

it is

to

married

Conclusion

INIU8kfif 1

so¬

cial progress.
But there is also
tension between the ideal and the
real. Freedom is
being sacrificed
for government
security. Volun¬

forces.

influence

was

spe¬

among

exceed

0t»OSlT

no

very close

actual behavior of

mainly

these

con¬

hearings. No

general

outlined,

PtCtftJl

sug¬

such

live in is

we

cause

avoid oppressive taxes—when this

centive

sideration of the Kaplan report. A

Ml*?!2

rowed,

come

the

the world

appears to be best suited

under the

least

i

Our

ever

ideals and

re¬

difficult to do because of the fact
that the various portions of the

*

years

living in

Notwitnstanding,

com¬

long-range

recent
are

Progress and Prospect

Select Commit¬

a

Survivor

on

whole rather than

New

era.

of

we

of

of

at

•

that

of

tee

Pompton Lakes

intervention
gests

20%

and

pay

cial

tives established

•

times, leaders have be^n too nag¬
ging about it. The ingratiating

Continued from page 6

(1)
a six-month death gratuity with a
$1,200
minimum
and
a
$3,000
maximum, (2) service compensa¬

lan

Clifton

has dealt with this gap
in various ways. At times
people
have tried to ignore it. At other

sim¬

a

leased, the House of Representa¬

•

policy of

a

compromise.

business.

our

mankind

over¬

for

Paterson

its

government

with its risks and

that the

al¬
But

in

program,

lapping programs administered by
separate executive agencies,

improved

business

nor

The

will

convinced that

we are

hostility

four

be

govern¬

is present in

insurance

probably exists in everyone's
Down
through
history,

mind.

closing the gap. But never, for
very long, have efforts to close
it been given up. At this
point in
history, the gap between social

a

be minimized. Based upon our

can

be

be¬

what is and what ought to

ciety has

political venture.

every

tween

social

gap

govern¬

started

once

in

political

if the cooperative study
approach
is consistently pursued these risks

Services Retirement System.
Committee recommended

func¬

considering trends
legislation the

welfare

an

chance that

program

to

present system, consisting of

its

certain

get out of hand
most

plexities,

of

government-i nsured

OF

restrict

relationship with

port was made on the Uniformed

Around the

COMPANY

to

re¬

study and

a

neces¬

the

of

part

one

Committee's work

which

the

as

govern¬

be

tions to basic need.

The

legislation which

that
may

then, by virtue of our co¬
operative attitude, government is

risks.

have established

private

sary

1951 and during
the 81st and 82nd Congresses we

tinued.

TRUST

concede

involves

ap¬

use

by

guaranteed loans from private

financing

to

ment

opposed

maximum

When

participation

nection with the Servicemen's In¬

Act of

the

to

feasible.

forced
ment

utilizing private in¬

have

used

In

a

plified program consisting of:

is not designed to

credit,

obtaining
and

and
gov¬

in

are

business cannot provide an essen¬
tial
social
service
and
we
are

govern¬

by

be

extent

benefits

far these

provided

ment without

corne

FNMA

new

authorized.

is successful,

Voluntary

Credit

have

was

Congress

extent that the voluntary program

plicants

free enterprise effort came in

what levels?

for

proposal

both

making the most effective

heartening acceptance

Policy,

other institutional lend¬
a
result, it was enacted

law.

also

The

groups.

received

available

Another

A perennial question is that of
military survivor benefits; how
should they be provided and at

voluntary program to
The Civil Service Act Amend¬
assure
the general availability of
ments
of
1952
established
the
mortgage credit in small commu¬
Committee on Retirement Policy
nities, remote areas, and for mi¬

Voluntary

Mortgage Credit

Benefits

a

mortgage

Program

Survivor

demnity

alternative to this provi¬

an

being discriminated against under
the existing program.
Home

FHA

exercising certain

as

we

position to demonstrate to
government that private facilities
should

Toward Government Paternalism
employees. This is a
co nplicated
program

of cooperation

better

pate.

Thursday, January 6, 1955

grounds
to

of

fairness

their effect

on

or

eco¬

nomic

growth.
But the ra'e has
step-by-step reduction in selective -become so high that it wouM take
excises, looking towards elimina¬ much more drastic revision of
our

Number 5392

Volume 131

..The Commercial and Financial Chronicle

.

(89)

tax

than we have ever
substantially reduce our

system

had

to

dependence

rev¬

What

may

like this year, it will prove
postpone agam attaching

wise

to

this

proolem, in favor of- attack¬
ing otner tax problems Where the
will

effect

be

budget

about?

Lo

questions
policy,

How

1954

tax

bill

in

advance

greatest

the'

I'm

tion

lest

rates

plant

replacing

equipment.
We sug¬
hiat business men be al¬

lowed

service

in fixing the

freedom

more

life

their

of

equipment;

they be allowed to write-off

twice

as

given

year

lowed

much

its

of

its

a

all

laws

these

of

glad

am

to

have

matter

preferred

handled

in

violates

lo

that

say

should

talk

dated

if

stock¬

permitted to treat

a

far

gesture.

a

always

is

But

their

on

Furthermore,

tne

granted

ac¬
can¬

than

more

tax

a

svstem

improved

by recogniz¬
ing sound principles; and, if con¬
ditions

permit,

perhaps

regard this year's effort
the

first

of

this

by

as

a

relief

The accent
it

where

good

very

for tax progress.
on

these

the

social

tended

to

growth. The
fairness was -recog¬

revisions

many

old law.

''y-

•

of

tax

our

depreciation
than

allowances,
start has

a

against

those

facets

system

which

most

the

trouble

all

the

to

the

cash

the

government makes to
As

it

such,

impact

of

Federal

on

the

finance
better

tax

crucial point
not touched

on

I

in

to

incentive

these

answer

and

initiative,

from

1954.

made

tax

The
cuts

be the

year won t

shall

may

of

this

to

tax

n e w

increase

cuts.

the

If

depends

ficult question

become

level

of

What

further

may

how two dif¬

on

answered:

are

taxes?

reform

of

to

answer

will

istration

prospect

the

tax

for

struc¬

is

turn

may

necessary

However,

■v-

it.

has in¬

that

out

to

course

reduction

if

base1

we

come

makes

the

when

first

ques¬

the Admin¬

clear the

can

all

agree

that

budget

we




1956

tax

problems

others

There
under

They

this
take.

be

are

in

six

THIS

IOIK

December

taxed?

Continued

fiscal

SINCE

CONDITION

OF

ASSETS

want

441,568.353.22

$

Cash and Due from Banks and Bankers

Direct and Guaranteed .
Insured F.H.A. Construction Mortgages

U. S. Government

.

Public and Other Securities

.

472,962,387.44

.

*

ful,

deflationary be¬

more

to define

have

you

ditions

which

under

bring it about.
consolidated

We

the

con¬

want to

you

the cash-

say

budget
yield

or

—

should

be

moderate

a

-

.....

_

Other Real Estate Mortgages
.

.

Customers' Liability for

have

Above this

believe that

should

we

surplus and retire Federal

a

debt.

Acceptances

.

.

.

Bills Sold Endorsed

.

.

.

.

3,459,556.65

Other Assets

Liability of Others

on

.

.

.

.

definition

of

is dictated

policy

by

budget
desire to

our

a

promote stability in the economy.
If

set out to balance the

we

et

every

situation,

have

would

cession, for
tax

would

the yield

Such

^

$27,500,000.00
50,000,000.00

(Par $10.00)

Surplus

.

.

;.

Undivided Profits

.

ductions

in

the
for

would,

of

Other Liabilities, Reserve

........

32,179,271.60
$1.668,200.344.28

Of the above assets $171,024,020.56 are

pledged to

secure

public

deposits and for other purposes; and certain ol the deposits are
preferred as provided by law. Assets are shown at hook value, and
where reserves have been set up, after deducting such reserves.
U.S. Government Oh igations carried at $38,705,339.79 are loaned

budget
re¬

to custoriiers

action

intensify

course,

for Taxes, etc.

Bills Sold with Our Endorsement

re¬

a

tax

an

—

1,306.250.00

1,479,558,212.94
39,311,693.46
18,565,523.10

re¬

a

in

97,279,393.18

$

Acceptances Outstanding

of course,
recession.

the

inflation

the

19.779,393.18

.

3, 1955

Deposits

of existing

action,

Similarly, balancing
annually would call
that

Capital

rates
in

decline

aggravate

of

tax

be raised

to

would

rates

cession.

regardless

year

economic

budg¬

32,179,271.60
$1.668,200.3 44.2

•

•

LIABILITIES

Dividend Payable January

This

6,545,280.39
10,056.896.72
38,145,294.34

............

Banking Houses Owned

measured by the Census

we

-^'^9-324.29
620,086,247.62

ing when 96% of the civilian labor
as

28,377,822.01
^

Loans and Discounts

employment. For this purpose, we
high employment as exist¬
force,

I7»«

31, 1954

.

or

against collateral.
Member Federal

Member Federal Reserve System

Deposit Insurance Corporation

the inflation.
Our

policy aims at maintaining
tax
rates that
will
yield
surpluses in inflation and deficits
in depression. In other words, we
hold to a stabilizing budget policy.
stable

What

this

are

policy

the

implications

for

1956? We have

a

in

taxes

DIRECTORS

of

fiscal

committee work¬

J.

STEWAKT BAKER
Chairman

this very question right
now,
so
what I have to say is
strictly my own opinion—in no
on

way

anticipating

CED's

NEA1. DOW

billion

deficit

ELLIOTT V. BELL

the

cash

budget for fiscal 1955. Since June,
Census

Bureau

index

of

civilian

CED defines it for
budget policy purposes.
If we
had been operating at high em¬
ployment this fiscal year, I think
ployment

it

is

as

fair to

assume

that

the

gov¬

t

Committee,

McGraw-Hill

Publishing Co., Inc.

CAESAR

A.

Trustee, Emigrant

Imluslrial

Savings Hank

GRAHAM B. BLAINE
Vice-Chairman

JOHN C. BORDEN
President, Borden Mills, Inc.

HI ARY

President, Dollar Savings
Bank

of the City of New York

ABBOT GOODHUE
Trustee

WILLI AM

GEORGE
,

L. MORRISON

President,
General

Baking Company

\\ II.1.1 AM

J.

MURRAY.

JR.

(.hut man,

Rabbins, Inc.

GR IFFIN

Chairman, Brady Security <t

Rrolty Corporation
JOHN E.

Stales Marine

Corporation

Mi Kisson it

V.

MARSHALL

I).. MERGER

(. hair man,

II

CATHARINE

ROBERT M.

C.

President

BURPEE

W.

Coverdale & Colpitis

F.

WALTER H. BENNETT

L AAA HENCE

Whitney & Co.

//. A. Caesar & Co.

conclu¬

has forecast

in

J. H.

GEORGE

HENRY

Corporation

Chairman, Executive

The Administration

$2

BECKER

Chairman, Inter type

JAMES F. BROWNLKE

FRANK

F.

RUSSELL

Chairman, Cerro de Pasco

Corporation

HE A KE, JR.

President, Brooklyn
L n.'on (,a*

Company

capital

:

gains

.

cash-consolidated
succes¬

now.

1
should

How

;

(2) Should consolidated returns

HI SINISS

STATEMENT

CONDENSED

are
,

Treasury

YORK, NT Y.

NATION'S

Treasury

major tax studies

at

way

.

in

found

government

Bank of the

HANKING

be

the

are:

(1)

all tax

our

possible shifts

can

currently. studying.

do not have enough

we

information yet to rule out

lead

chances

the

the

economy
administrative

employment has averaged 95.2%;
in
other
words, we have been
operating at just below high em¬

policy it intends to follow.
We

that

conclude

afford

to

Administration

the

.

a

the

is

Budget Policy

tion

to

sions.

ture?

The

me

■'

calculations

It

year.

econ¬

v,

rough

that

U. S. Government Obligations,

(1) What is the prospect for the
(2)

-

These

the

able

are

recent announcement

total

Government

Federal finance has not
appreciably more infla¬

tionary

ing

quarters, the winds
against us.

total

omy-

in

they

the

will opose any tax reduction next

losses will be canceled out by

growth

and

A

fiscal

public.

the

budget is balanced in two

But

some

It all

find

A clue to

code.

nue

In

dicated

I think both of these reve¬

yearly

not .be

Administration will want to grant
this amcunt of relief even if they

increased tax yields from the nor¬
mal

may

the

sive years,

next year.

same;

happen

likelihood

conditions

possible

same

the

be

may

things

I

and

ent

shift

of

ques¬

impatient.
is bound to be differ¬

1955

that

the

system?

enough

sure

a

be concerned

Some

tax

the

were

we,
new

resounding "yesi" So
so much of the weight of
system is thrown against

tax

But

progress

to work

tions with

the

more

start

spots

as

cor¬

profits

private

the

than

budget.

the

measures

point,

eco¬

Can

fu.ure

long

nue

affecting the total tax lqvel, there
is always a chance to shift ta.:
burdens within the present reve¬

the
forms in which Congress and the

tax payments has
run
its course; this may cost the
government as much as $1.4 mil¬
lion in revenue this year:'. How¬
ever,

these

,

go

to

taxes

Studies

government

payments

Bureau, is employed.

the

year?

wish

I

up

excise

given

Whatever the ultimate decisions

I must emphasize, how¬

that

ever,

time, the

same

speeding

selected

through.

have

and

tax

budget

reflects all the cash payments tne

made

coming

perhaps,

in

been

of

was

look for

we

the

in

in

revenue

NEW

cash-consolidated

are

during this year's deliberations.
Can

At the
for

in

Revenue

reductions

income

and

are

know

expen¬

enough

or

schecu.ed

we

study.

Unlike the administrative budg¬

et,

hardly

inhibit

The

growth.

of excessive rates

in

Plan

Mills

million

billion,

^3

corporate

trust accounts.

our

with

continuing need for economic
growth.
With the exception of

on

fiscal 1956.

1, 1954;
government

the

cost

$600

some

Jan.

to

as

tne

define

there

us

system

reconciled

reasonably

the

of
'

■

to go yet before the

way

demands

■

-

yardsticks tell

our

nomic

will

Jhis

the

plans
some

life

surplus—under conditions of high

in

more

retroactive

al.ow

them

be down

may

enough until

Administration

secu¬

veterans'

balanced

long

were

much

to

in

al¬

's tax law

only all the

of

a

as

depreciation

comprehen¬

not

objective

is

liberalized

lowances under this year

diture

down.

is

expenditures

spending level

the

two

economic

But

new,

The

what

gov¬

the

stimulate

nized

The

won't know

government spend¬

Furthermore, we believe that to
make budget balancing meaning¬

al¬

yardsticks,

our

down

goes

tax

Go From Here?

Measured

was

can

as

iniquitous

Where Do

year

ernment

1955

in

in

know the trend in

e

tween the two years.

removing
together.

1954

we

merely
steps toward

several

fiscal

developments.

revenue

tax

two

Vv

ing.

accounts, and other

and

thus

in

from

on
balancing
the
casiF^
budget at high employment. We

you

balancing

the

accounts,

public makes

relief

billion

reductions

lose, I figure, some $2

1956 policy

fiscal

talk

you

budget,

more

but also

budget,

tax

not be considered to be

will

We

in

accounts in the administrative

portion of the corporation profits

tual

v

reductions

tax

about equal to the chances for

are

1955 instead of a $2 billion def.cit.

the cash-consoli¬

includes

insurance

equitable

dividends.

the

about

budget is

sive—it

rity

way.

corporation

is

the

see

withholding levy

for

iiscai

m

cash-consolidated

more

a

when

balancing

We

another

as

budget

of

between

would have been

were

pros¬

terms

that

We feel it

holders

tax

in

budgets

fairness.

of

the

at

1956

difference

the

also glad that

dividends

principles

look

to

would be projecting

casn

budget, not the
administrative budget.
The chief

belated recognition has been given
to the fact that double taxation

corpoiate

date

among

provisions
were

earliest

of

are

governing depreciation.

CED

guess

now

balanced

a

this policy.
We

I

the

at

for fiscal

about

desirable

would

like

the

the

the

I'd

pects

of

life.

to

practicable. We in CED have de¬
veloped a budget policy over the
years of which we are very proud.

90%

two-thirds

try

to

and

budget

al¬

that

on

cash

be

over

going

becre.aiy Hum¬
phrey will adopt, but we know
they have in mind balancing the

they

service

We in

in

we

budget policy President

that

or

say

new

value

not

write-off

lo

value of the item
of

busi¬

obsolete

and

gested

that

inhibit

seriously

from

nesses

deprecia¬

inadequate

any

ernment

porate

Eisenhower

winter

in

lot about wnat

us a

what

last

concerned

budget

our

changing the total level

icies.

was,

was

these

of taxes.

I think, the
liberalization of depreciation pol¬
CED

of

sorts

answer

I9o6—or

fiscal

in

in

year—tne budget policy we

do in

can

balance

all

we

lo

pol.cy.
talking

we

determines

adopt tells
Depreciation Allowances
The

tax

aie

under

year

every

balance

mauequaie
on

want

Vve

conditions?

other

greater.

is

gu.de

a

as

to

revenue

bu., Li any given year,

agieemem

reduction this April;
well be that next

some

it

year,

such
seive

permit
but

this form of

on

tax

budget,

hope that conditions will

1

enue.

enough
the

33

i

.

FREDERICK SHEFFIELD
II ebster

Sheffield it Chrystie

on

page

34

34

The Commercial and Financial Chronicle... Thursday*

(93)

Continued

from

overall, in

33

page

reduction of unnec-

a

us

to shoulder each

year

Progress and Prospect
In Tax Policy
be penalized?

Should intercorpo¬

rate dividends be taxed?

Should the present allow¬
for depletion be changed?

(3)
ances

How should

(4)

farm coopera¬

tives and other mutual institutions
,

be taxed?

further

of

savings

the

have

we

for

retire¬
be

taxed?

deci¬

process.

study is

gress

proce¬

tried

devise

to

assist.ng the Con¬

the Administration to
comparisons and judg¬

and

make

study of

a

have

We

procedures for

self-employed

the

major

some

the

ments which we feel are necessary

Outside

of

the

Treasury,

the

for

wise control

a

of government

Right now, for
one
thing, Congress approaches ex¬
governmental Relations, under the
direction of my good friend and penditure decisions without tak¬
colleague in CED, Meyer Kestn- ing into account the fact that the
various government activities are
baum, is, among other things, look¬
ing into the knotty tax relations competing with one another for
President's Commission

between
and

the Federal

state

is

It

local

and

Government

governments.

impossible

whether any of

Inter¬

on

to

predict

these studies will

lead to action this year.
It is encouraging, at least, that
such a pertinent list of problems
v*

is under consideration.

these

of

some

solved,

Obviously,

problems,

would

yield

if

re¬

increases

in

spending.

Federal
from

deciding,

whether

the

age

in order to avoid

ing

each

parts of the tax laws which would

considered

tions

on

For

of these questions

many

better

in

the past and is

of

thern

studying

many

While the
1956

couraging
bullish

Long Run

it

aspects,

kind

of

that

regret

I

see.

en¬

isn't

prospect

I would like to

with

without its

not

the
and

you

predict

can

will still

we

be

worrying about the effects of the

,

tax

burden

next year,

many

Over

the

'

of

source

from

tax

wiser

a

ment

that.
am

most

relief
control

expenditures.

is

of

come

govern¬

The

expenditures

relatively
I

ence.

am

system
fined

of

sure

ways

convinced

am

in

of

art

gov¬

each

year

our
our

that

experi¬

that

such

refine¬

ments and improvements can
y eld
us

substantial savings in the long

run

by

allowing us to reach
judgments about how

sounder

much
and

government

about

what

ment should

This

spend

govern¬

perform.

of

art

should

services

expenditures

budgeting

Federal

any

cost.

are

It

worth less

than

they
continually

involves

checking the effects of total
ernment

spending

These explorations

econorjiy.
vital

gov¬

the private

on

which

ones

all

of

are

us

as

citiziens, including our elected rep¬
resentatives, should pursue relent¬

lessly.
Those

wisdom

who
of

would

explore

government

the

expendi¬

tures will find the Federal
budget
document of unique importance.
It
of

is
the

the

one

place

government

grams are set down

where

most

spending pro¬
together; the

reaching decisions
should

how much it should
spend

as

do
on

tion

each

Early in the new year, CED
will, publish a study on the control
n m e n t

aware

of the need for much

economic

er

this,

say

that the govraise enough taxes,

mean

we

ernment must

relative

to

greatWhen we

stability.

expenditures,

our

to

avoid long-run inflationary or de-

flationary
budget is
of

plunges.
The Federal
of the main sources

one

stability

in

instability

or

our

Executive.
I believe
today is pretty well

We need

Finally, history has assigned to
us
in this mid-point of the 20th
Century
tremendous
challenges

terest

and

and

projects

the kind

of public in¬
that

concern

will

"Congressmen

courage

ered

to

en¬

on

Jan. 13.

Weinress & Company

'an

member

Exchange

retired as
firm Dec.
'

23.

Douglas E. C. Moore withdrew
from partnership in Lester, Ryons
Co. Nov. 30.

&

•

James S. Wilson withdrew from

partnership
Dec.

in Josephthal

taxes

the

special Federal or State
in their own backyards.
public inter¬

We need the kind of

If

Orval D. Penn retired
ant

vice-president of T.

derson

&

new

>'
CONDENSED

■

STATEMENT OF CONDITION, DECEMBER 31, 1954
V*-

growth, surely this is

glaring weakness in the art of

Federal

budgeting

as

ASSETS

%

prac¬

now

cm

'Jt'

There

are

with

the

ment

other angles to

many

business.

this

We

aren't

to

uses

efficiency,
concrete

some

make

this

about

information

The

and

trolling government expenditures

only

FRANCIS S. BAER

relating spending pro¬
policy objectives, but
many-headed genius could

a

on

presented
take

information

him

to

document

in

the

least

at

...

State and

JOHN M. BUDINGER
ELLSWORTH

would

many-headed genius to
base sound expenditure decisions

American

Procedures,

and

the

to

be

course,

are

no

an

Executive.

helpful
and

public

But

procedures

if they bring out
in the budget
thereby
stimulate

interest

in

the

control

expenditures.

government

of

As

I

said

before, this art of Federal
budgeting is new; there are many
unexplored avenues for improve¬

ment.

It

this

Accrued

because

is

that

art

Interest, Accounts Receivable,

B. GIVEN

Liability

penditure

one,

lead

lower

to

about

this

in

quality of

decisions

taxes.

By
of

national

to

less,

items. But I

on some

that

adoption

of

spend

we

going

shall

more,

JOHN W. HANES

e

Shoe Company

Acceptances

.

.

37,616,352.08

.

sS2,279,456,084.33

% *

Chairman,

'
Finance

H:

Committer,

Olin Mathieson Chemical Corporation

I'M
ORIE R.

KELLY

Vice President

LIABILITIES
Vice President and Director,
(trace Line, Inc.

Capital (par

WARD MELVILLE

valut»$fo

per

share)

$ 30,512,000.00

.

President, Melville Shoe Corporation

Surplus

.

GEORGE G. MONTGOMERY

.£|

.

.

.105,000,000.00

.

.

.

President and Director,

Undivided Promts

Kern County Land Com^mny

PAUL MOORE

Sem Jersey

52,550,849.80

Dividend
THOMAS A. MORGAN

New

Paya^e January

Deposits

.

York

15, 1955

.

.

1,830,720.00

JOHN M. OLIN
Chairman of the Board,

2,028,542,720.63

.

19,333,266.04

Olin Mathieson Chemical CorjHjration

Reserve for
DANIEL E. POMEROY

Sew Jersey

I

Acceptances Outstanding

B. EARL PUCKETT

Less

WILLIAM T. TAYLOR

Other

decisions

will

2,940,349.21

39,480,148.30

■£,.

Liabilities

2,206,379.56

.

Vice President

s$2,279,456,084.33

Senior Vice President

THOMAS J. WATSON. JR.
President,
International Business Machines Corporation

JUSTIN ft- WHITING
Chairman

Assets carried at

of the Board,

Consumers *Power Com jstny

$9*MJ92,356.26
s:

on

December 31, 1954,

were

pledged

for other purposes.

for

not
that

ex¬

result,

•

$42,420,497.51

Amountth Portfolio
...

Chairman, (teneral Electric Company

B. A. TOMPKINS

Taxfes, Accrued Expenses, etc.

which

Congress to make better

188,062,849.80

.

.

make it possible for the Executive
and

$

V

am .con¬

find

procedures

to

Federal

interest

government
vinced

ex¬

is ,bound

business

the

on

Chairman.

American lira I.

PHILIP D. REED

for

7,997,388.79

etc..

*

of the newness of

I,

14,434,838.94

if.

Customers'

Chairman of the. Board,
Allied Stores Corporation

look in
this direction for progress in tax
policy in the long run. I believe

is

President

issues involved

clearly

21,936,291.46

....

•

.

Banking Premises

National Keil Cross

Cullman Bros.Inr.

WILLIAM

84,362,948.66

.....

LEWIS A. LAPHAM

enlightened
making
its
views
a
receptive Congress

citizenry's
known

of

for

1,029,841,535.46

*

President,

HOWARD S. CULLMAN

Executive

substitute

499,559,658.59

J. .f;

MunjuSpal Securities

a

this information.

can

.

Vice President

BUNKER

S. SLOAN COLT

now

budget

it

.

Other Securitiie^and Investments

to

do that with the

583,707,070.35

Senior Vice President

the

in

budget document now is both in¬

grams

.

JAMES C. BRADY
President,
Brady Security <t Really Corporation.

adequate and highly confusing in
detail.
The very essence of con¬
depends

$

It-

.

we

problem.
out

ALEX H. ARDREY
Executive Vice President

Loans

suggestions

set

......

U. S. Government Securities

govern¬

encourage

have

Cash and Due from Banks

DIRECTORS

satisfied

the

procedures

now

operational
to

it

yoRK
A

ts

■

high in terms

too

are

now

of economic

C.

assist¬

Hen¬

Co., Inc., Jan. 4.

Bankers Trust company

that

feel

as

U

private

we

Co.^

hi

decisions

revenue

now.

&

31.

turn

down the

of

and

expenditures, penditure




public
to

accept the importance of economic growth is~%asy; to do what
is necessary to stltnulate economic
growth is much "harder.

economy.

responsibilities. These chal¬
lenges and responsibilities require

the

attuned

the need to give "high priority to
considerations of economic growth,
But that is only the beginning. To

insuring that
consider
expenditure

occurs

to

and

of its activities.

of g o v e r

..

■

up

budgeting more efficiently—more
scientifically—we may find that

in

<

to

ecutive Branch and considered
by
Congress is of strategic impor¬

government

■

govern¬

that improving the

what

tax

We say continued

need

we

place where the benefits of
these programs can be considered
in light of their costs.
How this
document is prepared in the Ex¬
one

tance

grass-roots

No such joint considera¬

together.

exploring

each and every service of
govern¬
ment and deciding whether

services

system.

annual

our

reduction production of goods and services,
Obviously, we all stand to lose if
•
>"
rapid growth of our economy is this tremendous; wealth is spent zon.
imperative ,as the source of both unwisely and inefficiently.
The
i)
national
security and improved very size "of this budget should
•oJ
New York Stork Exchange
living standards. We say that sue- create in the country a sense of
■jli
cess in achieving this growth will
urgency to promote efficiency and Weekly Firm Changes
in
depend in large measure on* the economy in government,
The New York Stock Exchange
character of our tax system and
Because tax policy involves all
has announced the following firm
the ways it affects investment, inthese high policy matters, re¬
novation,.,and incentive/'
sponsible solutions rest ultimate- changes:
Transfer of the Exchange memAfter a decade of depressions ly on an alert aflft informed pubfollowed by a decade of inflation;
lie, willing to "%iake its views .bership of Samuel M. Beattie tp
we are, at the same time, acutely
known* to the Congress and the Gayer D. Bellamy will be consid¬
for

prospects

and tax reform.

to pay for
In part, this means

way

a

Congress

on

involves

of

ram

Congress

with

give

we

decisions

present

budgeting can be re¬
improved in innumer¬
in the years ahead. I

and

able

new

one-sixth

about

con¬

budgeting $70 billion odd in
ernment

and

these services.

fruitful

will

Without
this kind of
support,
our
objec¬
tives in tax policy are certain to
remain somewhere over the hori-

Federal Government today spends

ticed.

I

run,

the

set out to assess

is the

as

thing,

services

finding

a

long

that

growth

afier, and for

year

after

years

vinced,

economic

on

the

we

con¬

first and

But

hav¬

pro

isolation,

the benefits of

product

prospect for taxes in

is

in

Executive

the

ment

fiscal

big national problems become

reduction.

tax

procedures for encouraging

compare

now.

In The

expenditure

another

recommenda¬

made

of

of

tendency now.

cost the government revenue.

has

or

*

many

leaders to
growth

economic

this •political
expediency
last when
Overriding priority is not a license and as it becomes possible to re-r
for waste and
inefficiency. The duce taxes and reform our tax

.ations

\"

*

how

surprising

elected

our

sider

expenditure should be increased
at the expense of the other. Com¬
plicated as these comparisons are,
we
must
encourage Congress
to

make possible the reform of other

CED

spend

we

development
should
whether one

missile

them

This in turn would

example,

for

the same,

face

tax revenues.

escape

highway construction

left

be

cannot

amounts

guided

on

and

We

funds.

is

involved when

suggestions to make for improving

dures.

"

Should

(-6)

and

Our

income?

expenditure

quality of

investment

be granted for foreign

ment

the

sions

relief

tax

our,

guess,

my

possible.
*

It

will give you a lot of food for
thought. We think there is room
for substantial
improvements in

the

Should

(5)

if I don't miss

which,

taxes

er

that will encour¬

est and concern

huge

a

expenditure and waste ip. national* security* budget which
government. This will make low¬ must have priority over consider-

essary

January 6, 19513,

MEMBER

OF

THE

FEDERAL

DEPOSIT

INSURANCE

CORPORATION

to secure

deposits and

Volume 181

Number 5392

Continued

jrcm first

The Commercial and

...

Financial Chronicle

(91)

thipgs innumerable for which Pop - .1 The 12-Cent item for durables compared

page

must reach into his pocket whenever
tha
the

1955—The Consumer Is

of

that

customer

bills

gcst
and

that
.

,

really

Business

On

-

ies

the

con-

just looking."

But he didn't overlook
any
bargains,
and
sure
enough there was so much that he
needed and wanted that he bought
than

\

ever.

ness

was the fact that businessmen also
made slight cutbacks in their outr
,

,

.

.

ernization of equipment.
the

.

referred to
cession.' • <•«

as

Government

minds

is,

what

in

many

doctor

cation-

1955?

about

We

have consulted many businessmen

bankers,

—

manufactur-

farmers,

merchants—and the pre-

and

ers.

dominant opinion is that 1955 will

be" better than

will

the

treading
Uncle

If so, where

1954.

business

Businessmen

from?

come

themselves

still

are

cautiously
and
so
Consequently,

is

Sam.

business
levels

is

it

rise

to

must

spending by

if

current

from

come

state and

and

ernment

above

more

local gov¬

spending

more

by

Most of the "more" is

consumers.

We

Are

We

we

avoided

to get upsyPerhaps thi;

with the

aid

try's

of

t

over-simpli'ied
c'^ar
to portray all business

designed
activity. The bars show the
total

output

of

coun¬

goods

anc

made

debut,

early

an

television for

the

promised

Christmas,

stock

by

market

still

are

cotton,

and

peanuts,

other

one

what may

Two

picture

the right !mi<"~t<-

happen next year. Don't
seasonality;
the

about

worry

in

the

of

democracy

a

write

can
no

to

it.

read

that.

making

it

seems

forecast

a

strange that total business activity
shouM be represented by blocks
of "expenditures, remember that in

depends

a

merce

there

are

so

the

At

that

are

the

on

and

of them.

many

Com¬

is

a

population clock that ticks off

a

eruals

a

total

spending.
Moreover
fs easier to analyse the situation

in

terms

of expenditures.

How much business activity de¬
clined since the peak of last year
is'indicated by the difference in

the height of the bars.
+he

or

production

services

of

and

is

4%

drop of $14

a

recession.

It

The

in

the

Differences
blocks

show

spending

1929-1933

in

the

more

lent

major

by

ernmental bodies.

last

year,

cutback in

of

—

and

of
the

gov¬

made

no

their total money out¬
CH the con+rary, ex¬

penditures in both
The

4%

and

in

government

The

on

pliances

yeai1

is

for

and

better

ago or even a

chart

The

of

Michigan.

Continued

million this year

—

expendi¬

share of
it

is

all

66%

of war,

the

that

plainly
is

spending.

of

the

lion's

In

times

Banking Houses

between
no

know it, the
65

consumer

to

4.511.700.00

830,056,311.02

Acceptances

17,097,825.66
16,328,171.66

.

.

.

14,593,093.23

.

.

.

7.227.087.01

$3,052,678,274.47
1.1 A III 1.1 T I K S

$20; par) \

Capital (2,519,500' shares

$ 50,390,000.00

.

Reserves for Taxes*

Dividend

.'

.

.

.

.

100,000,000.00

.

.

.

.

38,823,757.44

Unearned Discount, Interest, etc.

Payable January 15, 1955

Outstanding Acceptances,
Liability

.

.

Surplus

as

Endorser

on

...

.

.

...

.

.

.

189,213,757.44

23,173,063.97

.

«

2,015,600.00
15,348,211.02

-

Acceptances and foreign Rills

.

19,795,965.56

,

Deposits

.

.

1,271,865.43
.

.

•

•'

"

,•

2,801,859,811.05

•

;

.

"

$3,052,673,274.47

Other Securities carried at $127,486,098.60 are pledged to
deposits and for other purposes as required or permitted by law.

United States Government and

public funds and trust

III IK KIT OIKS

knows
his

at

First,

how
we

recent

let's

C. R. PALMER

JOHN GCMMKI.L," JR.

HALA BAN

Director, Cluett Peahody & Co., Inc.

Clyde Cstates

Corporutiun
CKOUOE J.

PAOi.iNO GEIU.I
EDWIN J.

BKINLCki:,

.

.

.

JOHN

L.

0

II. Plaid;, Jr. Corporation

BRUSH

Chairman,

Simpson

L, JOHNSTON

..

HAROLD (:.

Thacher & Bartlett

York

/Yen

American Home

KENNETH K. M

I'ruduels Corporation

u

l.LI.L AN

RICHARD

City

-

President, United Biscuit
R. CKANDALL

RARE

Chairman
Trust Committee

OSW ALD
ALVIN

WILLIAM G.

JOHNSTON

Director, Phillips Petroleum Company

CLINTON K. BLACK. JR.

PATTERSON

President, Scraiiioii & Lehigh Coal Co.

Gerli A Co., Inc.

v •*- president.

Chairman, The Sperry it Hutchinson Co.

HAROLD V. SMITH

Chairman, IIorne' Insurance Co.

Compan) of America

President, George A. Fuller Company

behave, all

look

.

.

.

Other Liabilities

LOU

70%.

and

one

will

consumer

is

169,413,998.71

......

Other Resources

proportion of total spending hov¬
Since

83,600,091.08

.

.

.

...........

Interest and

Accrued

President, C

In

peace as we

ers

.

Mortgages

*.

At present

total.

in 1944, it goes as low
times of peace, or

as

52%.

as

shows

the
can

pry

JOHN T
CHARLES A. DANA
Chairman

into

consumer's spending
habits.
Currently, the consumer dollar is
the

nondurables. 3-3 cents for services,
and 12 cents for durable goods,

FLAMCAN

CEO ROE

V.

MuLAUGIII.IN

A.

VAN

Chairman,

BOMEL

National Dairy

Products Corporation

HENRY C

VON ELM

Honorary Chairman

President, John /'. Maguire & Co., Inc.

JOHN M. FRANKLIN
President, United States

1

Industrial

Suvtllgs Bank
JOHN I'. MACUIRE

President

Lines

L.

MADDEN

President, Emigrant

Dana Corporation

be¬
HORACE C.

of

$5 billion

ter.

In

the

year or a

a

latest

In

little bet-

quarter

they
inventories
to the tune of about $5 billion a
year.
Thus the shift from accumwere

drawing

down




Fortunately

biggest
It

category

consists

smokes,

for

gas

of

business,

is

nondurables.

food,

for? the

the

clothing,

family

car,

medicine from tire drug store, and

About

page

41,048,465 89

President,' Paramount

spring of 1953, businessmen were
laying up inventories to the tune

inventories.

on

on

December 31, 1951

expanding.

spending

a

Research Center at the

University

COMPANY

Loans, Bills Purchased and Bankers'

Pictures

ap¬

was

year ago,

883,150,007.49

secure

auto¬

according to the latest, report of
the Survey

„GEORGE G. WALKER

I ice Chairman

President

triboruugli Bridge and Tunnel Authority

Company

Electric Bond and Share Co.

'

being spent like this: 52 cents for

was

half

it

Dela-

the

tures

than

935,651,522.72

Consumer Spending

consumer

pre-

in bet-

sales of

H USO IJIICKS

That is the basic force that

keeps business

intentions.

businessmen

the hardest

cut down

the

on

havior and seize upon every avail¬
able shred of evidence as to his

spending

spending.

where

place

Philadelohia

Wilmington®

increased

business

are

will

originated

recession

primarily

there

do

areas

for

cars

passenger

seconds.

another

of

ware.

lays: nor did residential construc¬
tion, decline.

enough

ci^u

major household

.......

or

Since the peal

consumers

individual

one

year

whether

offerings to buy all

.......

BARNEY

the

rates

grouos

businessmen

consumers

of

in

is

So by Decem¬
be 2,628,000
people around—the equiva¬

five

period

sizes

changes

gain

every 12
ber 1955

ripple in comparison with the 46%
recession

net

mere

a

there

seconds, tolls out
seconds, registers
the arrival of an immigrant every
two
minutes, and the departure
of an emigrant every 21 minutes.

you

billion,

was

Washington

birth every eight
death every 21

from

way

at it—declined

seasonally adjusted annual rate
$370 billion to $356
billion.

That
a

goods

whichever

—

want to look
a

Spending,

of

big

a

say
excited
CA,_Jtcu

Due from Banks

Undivided "Profits

of

Department

in

so much

consumer

money economy like ours prac¬
tically everything is pro'-'u^ed fov
sale.
Therefore total production

it

r§ach 5.3

'"may

of

Two

to

If

spending

"anyone

Properly doctored

of

new

outlook

mobiles and

business forecast, and

a

has

one

that

are

sketch has been
care

of

The

-

Domestic reg¬

Customers'sLiability for Acceptances

pleasures of living

the things that discourage Us from

take

istrations

Mortgages

the increase.

on

Where Do We Go From Here?

quarter of 1953; the

on

new

some¬

Manu¬

that the industry is

cars

Other Securities

I

business at its all-time peak

and the

geared for

are
aic

pared to offer. Dealers

reflected main¬

automobiles.

new

Stock of Federal Reserve Bank

Fed¬

still

latest

the

ly by fluctuations in purchases of

U. S. Government Insured F. H. A.

the decline, and the pile of butter,

the left pre¬

the

about the

$30

factory

some

total

in

Stale, Municipal and Public Securities

on

The bar

is

out

usual*

IJ. S. Government Securities

and the
happy."

"ticker

is

inventories

Business

services.

bar

over

..

durable goods are

(

erally supported farm products is

middle

than

«.•

■

Cash and

is

Government

in the second

the

at

off

lay

Statement of Condition

color

market

mass

including

sents

is

with a national
.62
million

are,

services,

on

consumers

and by the fourth

year,

a

are

spend- but it is too early to

In the spring
shade

a

was

wofk and
workers.
Changes

employing

cars

be

billion

it

brought

were

earlier

facturers

menf expenditures.

statistics,
can

which

pre¬

spending.

for durables.

1953

of

TRUST

Wage rates are high, profits good,
prices steadv.
Brand-new
1955

somewhat

their

least

are

de¬

a

reader, wandering
through the wilderness of business
is likely
dizziness.

consumers

MANUFACTURERS

producing at the rate of
$356 billion of things and services.

casu&l

downsy

and to

workers

There

Got

The

How

spring.

what

year

Spending

$11 billion for all govern-

So here

and

i-io+iriiHkeKl'51'i

result is

net

'

a bit in late
1954^ picked up in
To help themselves,

lure the consumer, manu¬
facturers made substantial changes
in the design of their 1955
models,

running at an annual rate of over
$3 billion above the spring of 1953

economy*

Where

hirfi through college.
f01*^«Prvinpe rurrentlv

penditures by state and local governments, however, are currently
The

,

,lagging

and-; baby' sitting.
The record' quarter of 1953 it had dropped ter shape—their stock of old cars
sHows that consumers are con- to a $28 billion rate. The decline is only about half of what it was
stantly spending more fof serv- was one of the reasons why man- when new cars were introduced
ides—it takes a lot of dough to ufacturers had to reduce hours of last year.

security have been reduced somewhat in excess of $2 billion. iL'x-

to the consumer.

up

bills, entertainment, edulaundering, ; TV
repairs,

stantially.
r
grows on the double-creep.
defense,
purchases of goods and services on
national security account haye
heen reduced by $12 billion since
the sPrin§ of 1953- Expenditures
frr PurP°ses other than national

cline of

were

1953

the

1

•

jvhich

the

with

car

Currently, cwsumere^are

anl

outlays.

motor

..rliinVi

But

on

horsepower;

dictable- in

receded since the 1953 peak-^pt
umIOn a year
state and local government dx- xW~ oi
bl 10n a ye » *
penditures, for they continued to spending for services has. a tengrow,
but Federal Government--den.qy to grow larger at a rate
outlays have been trimmed sub- sftghtly faster than creeping.
It
enneniT

frosting

the

"Dn-f

hundred.

a

where

iigjjt aricj water, permanent waves,

spendingalso'"has

Tln/=»

V>nn^l vrsA

o

to

the

the TV with a
screen; the self-winding
wrist .watch;
the self-defrosting
refrigerator.
This is the area

"inventory re-^gtraighten junior's teeth, to send

an

is

is

It

+r>

out

It

cake.

f

rvi,

come

Services are such things as rent,' ing at the rate of $29-billion a

•

Most of

with- 5.7 million last
veaiyand. a record'6.3, million in
1950. Automobile purchases

statistic,

24-inch

currently

are

lone little

a

onmo

so.

200

For nondur¬

higher

^change, however, was caused^'

[.+nn4!nll,r

The question uppermost

not

spending at the rate of $121 bil¬
lion a year.
It doesn't fluctuate
$10 billion drag on busir- much and it has an almost in
activity.
A minor element Avitahie tendency to crpen ever

econ-

carefully, and to many an eager
salesman approaching him hopefuMy for an order he said, "I'm

more

nto 1
total

oc

was a

,

A,..

money

some

continuous.

like

good only as a filler to make the

rivontnri
inventories
1

are

able®,- consumers

-by the complete turnabout in ifi-r-.
in the pur--ventory policv*
In-fact, the situachase of hard goods.
He scrutin- tion isi similar to1 what happened
lzed products and their price tags m 1948-1949, which is commonly

he also aid
ormzing, particularly
trary,

knocks at

man

WrmcolinlH
Household

such things

mand is

that the- lays for plant expansion and mod-

his

out

spendthrift.

a

it.

A,.

,

dished

delivery

door.

He,, ulation to, liquidation of inventor-

clamped

felt

not to be assumed

is

consumer

like

he

hard.

.-

T.

It

has.

for national defense,

are

on

doton

business

economy-minded. His big-

was

the
flnnr

looks

usually small,
replacement is frequent, and de¬

Back in the Driver's Seat
too,

35

Head Office: 55 Broad Street, New York
MOIIK THAN

IOO RANKING OFUCKS I.N'
Member Federal

City

lillKATKII NEW YOItK

Deposit Insurance Corporation

37

36

'

(92)

The Commercial and Financial Chronicle

Putnam

7 MUTUAL INVESTMENT FUNDS

NATIONAL

Mutual Funds

SECURITIES

=

SERIES

Fund Economist

Reports

Record Year
The

George

Boston

By ROBERT R. RICH

Putnam

reports

a

Fund

record

of

year

of

Sees No

1954, with total net as¬
sets at a
new high
of over $100
million
compared with $67 mil¬

Mutual Funds with

varying

Bank

investment

Fiduciary Fund To Start May 1st.

objectives,currently in¬
vested in

350

over

For

porations.

Incorporation of the first mutual

seeu-

rit'.es of American

trust

cor¬

FREE

prospectus,clip this ad
your name

State

and address.

RESEARCH

CORPORATION

Established 1930

120 Broadway, New York

5, New York

Of

be known

Fund,

of

According to Charles W. Buck.,
Chairman, Bank Fiduciary Fund
New

York

Trust

State

Fund's

assets

on

were

stocks,

of

in¬

follows:

as

$24,731,300,; or

Canada

notes,

additions

stock

Fund's

the

to

portfolio

since

the

com¬

initial

re¬

ciation, and Vice-President, United port on Oct. 15, 1954 included 6,000 shares
Hudson Bay Mining & Smelting Co. Ltd.;
States
Trust
Company of New 1.500 shares Canada Cement Co. Ltd.;
York,
this
action
culminates ■X000 shares Interprovincial Pipe: Line Co.;

II

5,000

three years of study and coordina¬
tion

by the Bankers Association,
the
State
Banking Department,
leading Surrogates' Associations

shares

■jo";

tand other interested agencies.
The

Bank

Fiduciary Fund will
legal investment medium
trusts, estates, and guardian¬
ships administered by banks in

provide

a

for

IMKSidfiS
jr.'

the State of New York. In
A

mutual

fund

diversified

willi

bank

of

portfolio
selected

securities

notifying

a

"We

TIIE
200

that

or

form

of

efforts

investment

years

achieved

now

to

held
by
the
fiduciaries of

moneys

place

in

permit

their

Custodian Funds

the community

will

and

D-loj

at

directors

meeting

a

Under

new

of¬

and

scheduled for Jan.
provisions of the

the

of

the

of the

will

State.

new

be

The

board

select

to

of

first

direc¬
bank

one

trust company-to-serve-as-cus¬

or

todian and investment advisor for
the

It

company.

the

is

pated

that

operations May 1,

The Bank

antici¬

now

mence

Fund

will

com¬

1955.

Fiduciary Fund is

ouerate

Whai

on

a

non-profit basis and

without

loading charges. The
will
be
valued
quarterly

Fund
and

3

in

many

semble

a

respects

common

it

will

^\T^Fuiid?
investment

stocks of corpora¬

on the' basis of
possible
participation in Canada's growth.

free

a

your copy,

ask

Bank

are con¬

booklet-prospectus. For

ties

investment dealer

Pfs-asa s?nd

me a

more

Bankers
taken

in

trust fund

than

203

BULLOCK
.New York

of

f.eg booklat prospectus

of the




the

stock

bonds

of

Gov¬

due

$700,000

1956-

principal

Canada

leaving

of

Hiram

Ltd.

stock

Co.,

Canada

$1,700,000

3 «.»'/

$300,000

of

shares

of

portfolio.
disposed of 1,450

common

and
of

Walker-Good-

7,100

shares

Dominion

Tar

of

substantial

gains

in

both

of

rose

shareholders

to

$83,221,913,

in-

an

assets

states

have

a

the

Trust

as¬

$33,109,727 on Nov. 30,1953,
gain of $14,748,070.

The report shows net assets
per
share of $8.37 as compared with

share

sharp

rise

than

'amounted

eian
tt. S.

to

to

dollars),

Nov.

$31,916,401
equal

to

Fund of

33,

1954

((Cim-

£32.92

in

dollars- per

share, recording
seirMnneal reoort
stockholders.
This dp- stare

tse

Fund's

en

in-

c—

amounted

per

On

year,

Johnston, who heads Com¬
investment analysis

Mr.

department, stated in part:

number

to

rose

28,900

as

there

"Because

sion

to

excesses

few

are

correct,

reces¬

sharp

a

in general economic ac¬
tivity is not anticipated. Rather,
upsurge

ago.

year

a

shareholders

to

in

the economy should move

gradually with

the

in

stock

market

tion.

The

cau¬

continue

trustees

to

The

however,

feel,

justifies

that

the

abatement

the

ed

for

the

a

year

gain

of $29,394,315,

of

121%

over

the

preceding year.
Since its inception in late Feb¬

ruary

of 1954, The Capital Growth

Fund,
has

Group

a

shown

an

value

Securities

per

asset

increase

share

$9.87, representing
assets
to

net

$6.52

51% gain.
31,

1954

$4,344,718.

NET

Selective

in

from
a

Dec.

on

fund,

assets

Fund

"The
riod

last

of

Investors

of

ended Nov. 30,

year

of

crease

in¬

an

$7,631,235 for the

PERSONAL

supports

CROSBY

general

year.

PROGRESS

Fund

that Frank

has

ident.

been

His

be at 111

of

Fidelity

Fund, an¬
J. Holcombe,

elected

Vice-Pres¬

Office will

continue

to

Broadway, New York.
a
graduate of
University and formerly

Holcombe,

Rutgers
a

Puritan

and

Mr.

CORPORATION,

distributor

partner

has

been

the

of Banks
the

in

past

25

&

status

of

consumer

money

private

construction,

Holcombe,

security business
years.
He has

Meanwhile, beneficial ad¬
justments have occurred in vul¬
nerable

areas

ventories and

as

in the

of in¬

case

consumer

credit.

cents
36

the past few months

excesses.

In

business

conditions
a

have

been

state of healthy equilib¬

rium."

Fidelity Fund, whose assets at
beginning of 1954 were $91
million, has gained approximate¬
ly $68 million during the past
the

Puritan

fund,

has

Fund, an income
from less than

grown

$1 million to more than $4 million

during 1954.
DIRECTORS

THE

Custodian
the

election of

frey
of

as

of

Keystone
announce

Mr.

Wilfred

Vice-President

Operations,

Roehl

of

Inc.

Funds,

and

Mr.

Ora

Supervision.
Mr.

Godfrey has been associated
Custodian Funds,

The Crosby Corpora¬

has

capacity

Director of the company.

Keystone
been

both

some

Treasurer

second

half

of

the

year

We

pleased to

are

announce

that

were

$400,000 Tennessee Gas Transmis¬
Co.

414%

debentures

du2

Alvin II. Hermit

Bert 11. Jones

Gerald M. Goodman

Daniel C. Kennedy, Jr.

Alexander H. Johnston

Wilbur J. Strauss

1974;

15,000 shares of Pacific Gas
&
E'ectric
Co. 4V2%
preferred;
18,000
shares
Robert
Gair
Co.;
shares U. S. Steel Corp.

Securities sold by the fund during
the
same
period included

7,500

shares Seaboard Finance Co. $2.12

preferred;

11,000

Co.;

shares

shares

6,000

Air

shares

Corp.;
36,000
Corp.; 17,000

Stores

National

Corp.;
Tea

have been admitted

Re¬

Bendix

and

in

shares

Largest
stocks

of January 1,

1955

7,000

of

Lord, Abbiott & Co.

assets.

Invert-merit

Managers

holdings

were

dustry

29.7%

as

Co.

holdings

to

firm

Partners

shm^s

As of Nov. 30, 1954, cash, bonds
and preferred stock
amounted

our

as

in

(6.2"%

among common
the oil and gas in¬

of assets),

63 Wall

Street, New York 5, N. Y.

building

supply

industry (9.6% of assets),
industry (6.2% of assets)

and in

the paper and

oaper

prod¬

industry (6.1% of assets).'

CHICAGO

LOS ANGELES

a

He will

per

to

years

and

cents

added

C.

Vice-President in charge

as

to represent

the East.

God¬

in charge

Inc. since 1944 and for

during the

In

short, the recession has been ac¬
complished without the necessity
for drastic liquidation of earlier

funds since 1948 and wiircontinue

m

lower

and

taxes.

with

this

ex¬

disposable

been active in wholesaling mutual

in

pe¬

income,
supply, commodity prices,

year.

THE

a

during which strong
became evident in the

to $20,-

723,845 at the close of the fund's
fiscal

has been

year

test

reaching

58%

rose

in

underlying strength of the

penditures,

55%. Sales for the year totaled

or

$20,577,727,

decline

economy.

favorable
crease

the

of

early 1954, however, soon reveal¬

outlook

strong position in good
quality common stocks."
a

an

influenced

pay¬

38

Among the securities

ucts

1954.

organization.

tion

Fund

dividends

with

the fund's investments

operations

14,

to

compared

summarizes
his

share distributed in 1953.

steel

June

regular

paid by the l'und during the
totalling $2,084,803.
These

0f 9.73over the S30
per
share with whteb the F r»-*
begirt
on

on

shareholders

Investment

the

Greyhound

on

14,000

in* Diversified

as

The

1953.

increase

need lor careful selection and

for

tion of 36 cents per share made

share

the

were

during the year has increased the

30,

Nov. 26.

McCrory
Ltd.

Nov.

on

1953,
an
increase of 34% after
adjust¬
ment for the capital
gain distribu¬

Aviation

Canada

ended

of

year

This compares with net

by M'\ Buck with

Mr, Orrin Judd

10th

30,

duction

Counsel.

its

Nov.

in

Company,

forward
attitude of con¬
by a mutually
1954
totaled $3,045,300 from
in¬
satisfactory government - business
vestment
income
and
$2,544,600
relationship, a rising population
from realized capital gains.
As of
the
year-end
total
unrealized trend, and a continually advanc¬
ing technology.
profits exceeded $27 million.
"Considered in retrospect, little
George Putnam, chairman of the
trustees, said the fund ended 1954 more than a year ago business ac¬
with approximately 69% of its re¬ tivity was in the first stages of a
sources
recession, possibly one of men¬
invested
in
common
stocks, compared with 63% a year acing proportions in view of the
high level of activity which had
ago.
Mr.
Futnam
noted
that "The prevailed in the first half of 1953.

TOTAL

Increase 34%

shared

vestment

the results of studies made by

fidence

amounted

UTI. F. Shares

R.
Johnston, " ViceCommonwealth In¬

Douglas
of

share in

an

with 25,300

Payments

Total

More

shares

new

over

compared

to

per

of

recovery

President

record totaling approx¬

of

assets

during the calendar year
ended Dec. 31, 1954, Herbert R.
Anderson, President, reported.

$6.51

founded
upon a basically strong economic
condition."
This, in the opinion
progressive

monwealth's

30%

and sales

1954.

capital

cents per

&

single industry classes, registered

Net

high

end, ad¬
gains dis¬

Ltd.

GROUP SECURITIES, sponsors of
general mutual funds and 16

and 4,003

State.

other

net asset value represented
fiame

in¬

1954

of

time

of

for

"The outlook for business is
a

the

Worts

Division, New York
State Bankers A-~o"iatio:i, headed

tan;£.a<i ;und.

A'ddrsss

facili¬
of

keen interest in this proj¬
ect drafted by a snecial cDinirhttee

to
on

common

NET ASSETS of Sender

Established ltiOi

■\>ik' \\ all Street

the

3Vi %

were

Telephone
in

be¬

30.

Nov.

and

1974-1976,

Fund

Chemical

sion

or

mail the coupon below to

CALVIN

to

smaller banks

as

any

Bell

common

for the

Fiduciary Fund is intended

to offer

diversified, managed

tions selected

tained in

sold

due

The

1953

Canada

bonds

erham

and

Government

re¬

trust fund. This

resemblance is deliberate,

this mutual fund

of

amount

the

due

Also

ments
an

open-end mutual fund which will

on

1960.

these

1954

reported

one director will be chosen
each
of
the
nine
banking

tors

Tne facts

bonds

ernment

Mr.

ficers of the Fund will be elected

action

State.

common

3%

15,

$1,700,000

the

of

Jr.,

from

investment in

1959-

due

interval

all
year

imately $15.6 million,

a

districts

mutual

bonds

weeks

the

of 60

on

nounces

plan

Name....

a

3%
six

Sales

largest

sets of

24.

Address..

offering

Oct.

cluded

the

beginning

December.

holders covering
operation which

Permanent

describing
Organization And the shares of your

company

tween

during

for

the
new

a

at

tribution

share increased

per

at

to

year

$24.17

ton, which recently gave the
company its final clearance.

prospectuses

a

Canada

of $47,857,797 were
by Diversified Invest¬
ses¬
the New York State Legis¬ ment Fund, Inc., a balanced fund
Since that date the project for income, in its report to share¬

Enabling legislation, said
Buck, was passed in the 1954

Street, Boston 9, Mass.

is

Sales

ago.

$18.01

has been under study by the Fed¬
eral Reserve Board in Washing¬

Keystone Company

Ft>-,d

of

1962.

lic."

lature.

COMMON STOCK FUNDS

Canadian

ernment

effective service to the pub¬

sion of

BOND, PREFERRED AND

•

5,000 shares Ontario Steel Products Co. Ltd,
Fund also purchased $1,000,000 Gov¬

The

valuable

a

corporate
fiduciaries to
better diversification and

bring

of

believe

Deoartment

will fill

Co,

shares

8,200

Power

Assets
the

in

that this Fund

more

City

the

included

five

that

corporate

have

"We

Keystone

Funds.

for

Ltd.

& Paper Co.
Ltd. "B";
Philips
Incandescent
Lamp
Works Ltd.; 10,000 shares Argus
Corp. Ltd.;

fruition.

t

:cn

its

Superin¬

as

State, which began three

ago,

/our

at

...

happy

fund

a

trust

the

me

Banks."

are

smaller

Please send

Board

approval

my

tendent of

Berkeley St., Boston, Mass.

50 Congress

Banking

you

Bloede!

&

British American Oil

shares

bonds

pleased to inform

the

"We

The

action,
Superin¬
Banks,
William
A.

of

are

fixed

COrporAIION

PARKER

the

meeting today approved the cer¬
tificate of incorporation of Bank
Fiduciary Fund, and I have af¬

he obtained

from investment dealers

of

Lyon said:

capital and income
may

letter

a

Association

board's

tendent

for

long-term growth of

Prospectus

the

items

Bathhurst
300

IM'dlll'lllltTHI

MacMillan

4,000 shares

Limited.
New

year

justed

total; Government
securities, $3,882,95-3,

12.2%; other bonds and

mon

the
of

the

Principal

Asso¬

a

Asset value

Nov.

$2,763,688, or 8.6%; and preferred
stocks, $377,000, or 1.2%.

Division,

Bankers

lion

net

increase

an

99.5%,

or

securities

in

77.5%

or

the

the

common

sociation.

share

per

$34.09,

from

vested

was

s-pdiiSored by the Trust Division of
the New York State Bankers As¬

of

the

was

30, $31,754,944,

company, to
Bank Fiduciary

Committee

1954,

13%.

of

Board.

new

the

as

28,

asset value

was

Banking

The

&

SECURITIES

NATIONAL

Dee.

in

company

accomplished at a
special meeting of the New York

information folder and

^rvi mail with

investment

America

Sharp

Business Advance

growth in

7

Thursday, January 6, 1955

ATLANTA

Volume 181

continue

in

Number 5392...The Commercial and Financial Chronicle

hold

to

addition

these

his

to

positions

Lord, Abbett & Co. Admits Six Partners

duties.

new

(93)

37

3£

Continued from, page

Mr. Roehl has been active in the

Research and Supervisory Division
of Keystone

since

1946

1955—The Consumer Is

Custodian Funds, Inc.
and

has

been

General

Manager of this important division
for some

Bach in the Driver's Seat

years.

The Keystone Company of Bos¬

national

ton,

Keystone

distributor

Custodian
the

announced

dent.

Mr.

the

he

eight out of nine of the families
interviewed in October expected

Mr.

that

with

since" 1949: ~

THE

chases

APPOINTMENT

of

Alvin

Warren

H.

Berndt

A.

R.

Johnston

The

lyst for the $24 million Delaware
ton

sumer

by W. Lin¬

with

Casey

number

a

houses

cial

has

delphia

of

associated

Boston

and

similar work

Phila¬

with

has

with

served

the

U.

Senior

as

Public

Utilities

Insurance

Corporation

Bert

recently, he has held the

£7/e

R.

C.

D.

Jones

Kennedy, Jr.

Wilbur

J.

Strauss

to

go

they get

That may

of

Philadelphia
York

Stock
&

Amer. Business Shares

Mr.

is

Casey

board

of

Products

member of

a

directors

II

he

as

fiscal

1953

with the Army Service Forces.

He

is

graduate of Boston Latin
he

ceived

his

Cadwell

wholesale

Group Securities, inc.

of

announced by W. Linton Nel¬

son,

Chairman of the Board of
distributing company.
Mr.

Cadwell first joined
as

an

the Delaware
December, 1952,
sales manager.
In his

new

area

he

post

ware

will

supervise

shares

Fund

in

the

of

Dela¬

New

York

distribution

wholesale

State, Central Pennsylvania, Wash¬
a

prospectus
from your

on

request

ington, D. C., and the South.

investment dealer

Mr.

Cadwell

Distributors Group, Incorporated

among

63 Wall

the country.

Street, New York 5, N. Y.

At one time he was
Value Line In¬

with

vestment Survey

and Lowry's In¬

City,

Reports,

and

with

of

the

the

net

rate

of

assets

at

Dec.

on

record

of 45

York

New

stocks

the

of

Nov.

30,

on

cents per

represented

Company's

light

tobacco

and

anteed

"We

in

were

preferred

remaining

elec¬

and

guar¬

primarily
able

report

"that

of time

our

balance

over a long period
policy of changing the

of

our

investments

be¬

bonds and preferred

tween

common

stocks,
stocks, and our pol¬

changing

individual
securities within these two major
of

categories

as

the

economic conditions

for

dependent

Therefore

it

cessions—in

The

and

1949

in

influence of

disposable in¬
spending produces its full
effect only after a period of time.
come on

This

lag

that

next

year's
spending is partly determined by

cent

means

earnings.

stronger

ment,

Thus

trends
and

wages,

some

the

in

re¬

employ¬

hours

seem

to

strengthening of

In addition to

income, consumer
holdings
influence

liquid-asset

spending.

consumer

of

savings
causes

hesitancy.
cult

to

A large store

generates confidence
people to buy with less
It is of course diffi¬
the

measure

liquid savings.

adequacy of

Such questions

unanswered.

holdings

But

and

suggests that consumers
tle

better

straight

a

liquid-asset
disposable income

fortified.

are

At

lit¬

a

the

be¬

ginning of 1954 the stock of liquid
of
consumers
approxi¬

savings

continue

mated

for

Cambridge

our

Net

produce the good

results

which

in¬

seek

shareholders."
assets

Associates, investment counselling

were

organization of Boston, Mass.

$35,507,940

on

$33,821,000
a

year

Nov.

liquid

into

step

1955

valued at 86%

other

the

gations

hand,

obli¬

spending

influence

Total

debt

also.

contractual

payments

on

through

insurance
and

We

MUTUAL FUND.

are

pleased

to announce

that

tal

consumption.

these

of

ably

FRANK

J.

HOLCOMBE,

JR.

be

some

at the

was

has been elected

Vice President

a

ATOMIC DEVELOPMENT

MUTUAL

is
a

FUND,

our

organization

On

a

THE CROSBY CORPORATION

case

FIDELITY FUND, INC.

;

:

PURITAN FUND, INC.

BOSTON

MASSACHUSETTS

January 3, 1955

NEW YORK OFFICE
111

Broadway

Teh WOrth 4-1585

THIRTIETH

be




continue

offset

the

to

con¬

increase

of

1954,

was

at

an

third

quarter

annual rate
billion above

of

1953.

spending at this rate

expecting too much, but

In¬
may
some

is expected.

Money
is

really

spent
a

for

new

special form

housing
of con¬

plentiful

a

money

tight

was

1954.

But the

of money rates generally
and the reduced pressure for busi¬
and instalment loans all went

ness

to

produce

flood

a

of

mortgage

money.

What about the year ahead? The
number

of marriages and conse¬
quently the rate of household for¬

mation
'

is still declining.
In addition, the stimulus given by the

abundance of mortgage
than

more

a

have

we

houses

about'

the

over

for

year

7

past

These factors would
cate that 1955

money is
Then, too,

old.

year

built

million

six

years.

to indi¬

seem

might not be

residential

good

a

construction.

But

housing starts in 1955 are
generally expected to exceed 1954
approach,

record

in

set

The main
who

if

not

equal,

the;

'

■■'

1950.

cited by those!

reasons

this prediction

make

the1

are

Housing Act, high income lev-1
els, and the growth and movement'

new

of

population.
The Housing Act;
1954, effective Aug'. 2, liberal-!

of

ized

down-payment requirements
cutting them by percentages

ranging

from

20

52%.

to

This;

permits people to buy homes who!
not

were

able

payment
house—he
the

gets

Construction

in

will
be

do

down:

lets a!
bigger
house for

also

to

a

more

of

housing at

new

throughout

conservative

a

should

people

the

payment.

current rate
take

to

It

move

down

same

the

raise

to

before.

homeowner

be

1955,
of

point

good.

very

But

industry say they
better.
They might

the

even

right.

'

.

'

<

Inventories and Investments
Now

come

we

He

man.

is

for

the

business¬

the

of

his

and

inventories

ments in

to

one

own

plant

third

tier

are

new

an

blocks

of

in

the

have de¬

annual rate of $44

quarter

second

the

in

invest¬

represented by

chart. Such expenditures

billion

best

Business expenditures

customers.

of

in the third
quarter of 1954, Inventory liqui¬
dation, as already mentioned, has
1953

to

the

billion

$31

one

of

decline

the

in

chief

business

causes

of

activity.

Inventories

Inventory changes exert a pow¬
erful influence on business, and
inventories

of

ing

are

always

changing.

the total stock-in-trade
business.
Some
are
in the

They

are

warehouse

Residential Housing

that

entered

we

clined from

foregoing
there is a

In
the
third
total consumer

billion—$4

further expansion

STREET, N. W.

WASHINGTON 7, D. C.

evidence,

Mortgage

as

been

creased

(IGtilC DEVELOPMENT SECURITIES 00.
1033

This factor

the

of

spending.

$235

the

CFT THE FACTS AND FREF PROSPECTUS

basis

will

spending
of

resulting

from Atomic Science.

1954.

partly

pretty good probability that
sumers

quarter
in activities

in

least

the

their

General Distributor of

variety of

companies participating

burden¬

beginning of 1955 than

analysis and

designed to provide

in

at

more

prob¬

higher level of liquid assets.
of

Inc.

managed investment

the

will

will

payments

somewhat

The to¬

and probably
they overlooked

wrong,

housing seemed to be shrink¬

ing

policies, property taxes,
to pinch spending

current

on

(i

de-KT

a

easing

tend

rent

built.

forma¬

presaged

the influence

for

mortgage and instalment debt, life

ATOMIC SCIENCE

household

drop

were

view,

disposable income.
On

1940

in much of 1953, and the demand

disposable income.

assets

1954

with

ago.

of

will

of

30,

compared

in

82%

Consumers
with

we

of

rate

have.

as

between

to

were

supply of mortgage money would

—

comparison

the

over

1931

in housing starts, they said.

who holds what type of asset must
go

fact,

This

and

demand.

consumer

the

was

is sig¬

1954.

in
from

the biggest factor

least

that
in
the
post-war
period disposable income has been
well maintained through two re¬

starts;

decade

They

to

dispos¬

on

starts.
always thus.
just 93,000 new

had

crease

manu¬

is at

housing

been

not

we

tion.

Spending

spending

income.

and market conditions dictate will
to

in

nificant

and

44.52%.

confident," states H. I.
II,
President, in
the

are

Prankard

icy

Consumer

power,

stocks, and cash accounted

the

for

The Wherewithal!

every

outset
of
1954, analysts
busy pointing out the decline

were

products
the privi¬

distributors

housing

means

the

At

flourish¬

leading

a

now ap¬

exceed

just 2% million houses

estimate,

are

electrical

foreshadow

banking,
telephone stocks.

and

Bonds,

assets

1954.

Largest holdings
tric

vestment

vestment

invest

entire

of

today's

55.48%
on

and

widely-known

security dealers throughout

associated

1

is

at the

1

Common

in

organization

in

shareholders

to

Dec.

in

Dela¬

was

the

a

13%.

or

31

of

Inc., sponsors
million Delaware Fund,

of the $25

30,

cents

will be distributed

Distributors,

ware

of

52

which

Samuel

Vice-President

as

Nov.

on

of

share.

of

distribution

-

$3.97

the fiscal year end was $3,356,898
of
net
realized
security profits,

de¬

School

Graduate

APPOINTMENT

THE
S.

B. A.

Administration.

Business

STOCK FUND

his

He subsequently re¬
M. B. A. degree from

Harvard

the

THE COMMON

received

$4.49

with

Included

in 1934.

gree

of

increase

an

share,

School and of Harvard University
where

to

30, 1954
$33,821,000,
per
share,

said

has

1933

housing

care.

better

or

it

In

setting their own retail
prices for the company's products.

Nov.

assets

compared

cer

a

ended

net

equivalent

Offi¬

report of American

Shares, Inc. for its 22nd

year

shows

World

Fiscal

annual

Business

automotive

During

served

the

Standard

world's larg¬

of

channels.

window
War

of

Company,

manufacturer

est

Street, Boston

million

accord¬

are

will

1954

It

new

except 1950., This

But

retail trade.

generous

a

houses

of

his

lege

all

of

Recently,

gave

Co.

be

discount

houses,

1953.

the
United States
economy has turned
in its sixth consecutive
year of a

places where

report,

press

facturer

Reports 13% Share Gain
The

FUND

a

doing 18%

ing.

Analyst in the
office of the New
Exchange firm
of

Security

Hecker

50 State

be

those

that

in

starts
year

shopping around.

Discount

ing to

Kennedy, Jr., Wilbur J. Strauss.

post

Putnam Fund Distributors, Inc

medical

housing.

certain

peal's

discount for cash-and-

a

carry.

Seorye

of ^/jodton

and

are

of

one

Lord, Abbett & Co., 63 Wall Street, New York City, invest¬
ment managers, announce that the following were admitted to
general partnership in the firm on Jan. 1, 1955: Alvin H. Berndt,
Gerald M. Goodman, Alexander R. Johnston, Bert R.
Jones, Daniel

but

PUTNAM

of residential

air
conditioners, household
equipment, automobile tires, and
other such durables, many of them

C.

Most

con¬

For

as

principal Security Liquidation
Analyst.

rent

Consumers

Analyst and with the Federal De¬
posit

all-commodity index of
prices that portrays

items like

category
$12

annual rate of

Perhaps the biggest surprise of
was
the
extremely strong
showing made in the construction

transportation are large¬
ly nullified by increases in other

S.

this
an

in the spring of

1954

food and

Securities and Exchange Commis¬
sion

prices."

sumer—but only with great stub¬
bornness. Decreases in the cost of

and
gov¬

ernmental agencies.

He

lower

billion

months, it has yielded a few deci¬
mal points: in favor of the con¬

leading finan¬

Security Analyst,

as

has done

in

been

of

in

amounted to

cost of

Nelson, President.

Mr.

because

spending

the
living shows practically no
change l'or over a year. In recent

*

announced

was

bet¬

or

Living Below the Index

A. Casey as Senior Security Ana¬

Fund

well

as

spending.
It is investment
spending and is shown by the sec¬
ond layer of blocks in the chart.
Though it looks like a little slice,

financially in 1955 than in
1954, and a larger number than
in'previous surveys felt that "this
was
a
good time to make pur¬

associated

been

they would be

sumer

ter off

General

company

has

also

of

Vice-Presi¬

as

Cate has been

Manager of
which

the

Funds,

election

Henry F. Cate, Jr.

of

*

as

scouring;

bags of wool await¬
some

Continued

are
on

on

the

page

38

38

The Commercial and Financial Chronicle...
Thursday, January 6, 1955

(94)

Continued from page

equipment

37

was

the

on

are

some

the

of

tables

cutting

planning

the needle

to

upon

gaze

and

customer says,

the

Then

it."

goods

consumer

able

business climate.

to

be

Index

inventory, but there are

The money

tied

in inventor¬

up

ies is tremendous. Inventories are

influenced by
every
cision.

purchase, by

every

sale, by every business de¬
The business indicator la¬

"inventory changes" is one
of the twitchiest instruments on
the
business
dashboard.
Such
beled

changes

also

are

the

hardest

to

during the
last quarter of 1954 are 9% below
the year-ago level and about 3%

"purchased

of

that

sign

favorable

in

growing backlog of new orders in
the steel industry, together with

ing on longer than most people
expected
it would.
.£ ince the
process of liquidation slowed be¬

tion.

tween
ters

the first and

of

last

year,

second

it

quar¬

thought

was

almost in

sight.

that the

end

But

enough the third-quarter

sure

was

report showed an accelerated rate

liquidation, only to
confound the experts. Now what?
Here again we must go groping

of

inventory

for

light.

big

a

September

survey

of

rebound

no

indication

from

of

liquidation

slowdown
or cessation of inventory liquida¬
tion would have a favorable ef¬
fect

on

business.

Cessation of in¬

at the third
about $5 billion
would indeed have a salutary ef¬
ventory

liquidation

quarter

rate

of

fect, and it is entirely in the realm

cap¬

expenditures, we asked manu¬
facturers in the Philadelphia met¬
area

is

to accumulation, a mere

ital

ropolitan

there

this question: "Ex¬

cept for seasonal changes, do you

Faitn

Investment

Capital
pansion

outlays
and

already
a

result

and

for

all

in

tinged
of

drooping fore¬
expenditures

with

the

suspicion

recent

upturn

is
as

in

orders, inquiries, production,
Seers with extra-long

sales.

vision

now

think

they foresee

a

the

at

annual

As such

SEASONALLY

it

ditures

early
ion

is

as

by

1956

expen¬

possibly

and

as

This opin¬

late in 1955.

supported by the editors of

"Fortune" in their

report on pros¬

pective capital expenditures.
On the basis of known facts and

prospects,

total

spend¬

ing by businessmen ought to give
business

ex¬

outlays

of

a

for

lift

in

1955.

plant and

ANNUAL

the

on

Between

[fffffffn
i

i I i I I

exert

shares

large

a

influ¬

f

second

•

$11

18

billion but it is unlikely that

will, continue

the Federal Government

amount,

and- 'their

should

considered

be

Federal

tures in

$48

to

Since

$42

for "national

w-as

cessation of

the

expenditures

Korea,

expendi¬
rate

of

fighting in
nitioral

the decline.
outlays
have

security have been
National

1954

billicn of
security.

for

on

security

of

shares

agreed
the

o'firing

The

4%

and the

maintenance and

costs

cence

national

While

thp fringe of
the

of

security

peace,

obsoles¬

machinery
are

of

enormous.

outlays for national

cor¬

plus

Jan.

accrued

24.

j

con¬

stock at any

common

including Jan. 15,
1965, at the rate of 2.75 shares of
for

common

ferred.

A

called
and

10

of

$52.50

thereafter

15,

pre¬

starts

The pre¬

years.

at

prices

share

per

if

prior to Jan. 15, 1957

or

to

of

fund

redeemable

from

on

down

share

each

purchase

is

on

at

time up to and

ranging

living

expires

Jan, 24, 1955.

preferred stock is

vertible into

ferred

still

offer
on

price

dividends from

re¬

We

each
held.

to purchase from the

are

made.

share

per

stock

poration the unsubscribed stock at

is

be

stock may- be

$50

share for

Union
Securifies Corp.; Schoellkopf, Hutton & Pomeroy, Inc. and
Granbery, Marache
&
Co. lias

end

can

4%

$-'50

An underwriting group headed
jointly by The First Boston Corp.;

at the

unlikely that further large

>403,082

stock,

common

(EST),

$12 billion since
the second quarter of 1953, but it
ductions

atone

subscription

separately.

annual

an

and

billion,

for

the rate of

p.m.

two

the third quarter of

amounted

that

the

Government

new

3:30

differ in

subdivisions,

The

subscribed

ex¬

offering

of

prei'ered*

value.

Ihe

and trend from
by state gO vcin ,.cnis

assets

is

corporation's

by

purpose,

those made

the

this

at

Because." expenditures

•

total

aggregate

of

cumulative

at

$50

at

prices scaling
share after Jan.

per

1965.

Of

the

proceeds

Smaller

equipment

the

fi¬

still on the decline, it is
believed
that
tliey cennot drop

nancing. ii is anticipated that

ap¬

invested

ity

■

GOVERNMENT
BUSINESS

secur¬

are

Secretary
tial

In this

connection,

Defense

of

Wilson

ncT further

that

revealed

in

reduction

has

substan¬

defense

spend¬

the

1956.

State and

loDhl government

running
$28 billion

just

penditures,
short

of

the

1954. were in

ex¬

billiOri higher than

$3

of

the

year

The

of

1953*
upward.V

part

the

long-run
state

of

outlays

government

category

and little or

ip the rising trend of

categories.
Despite all
construction of school facili¬
in

ties

the

po|$-war period,

crowding is stilTwith ushave

over¬

We now

great many more children

a

school

of

age,^between

six

and

17, and a good |hany more will be
crowding into tb-is age group be¬
•

the| high post-war birth
Overclouding on the high¬
almosflas

is

ways

schools and

caj$

has Increased
to

48

you

The nunm-

'

to

The

reach' 60

Then where will

f&v

L

Prospective government spend¬
ing in 1955, th^efore. looks like
declMfe in Federal out¬

some

lays and furtberJticreases bv state
and

ZOO

in¬

recently in connection with

purchase

Trust

be

and

for

Bank

Y.

The

availalde

investment

banks

First

Utica, N.

will

further

The

of
of

Co.

in

for

constituent

other

corporate

purposes.

The

two

group

largest
The

are

Western

of

banks

Marine

New

the

in

Trust

Co.

and

The

York

York.
Total

banks
Dec.

deposits

31,

Sept.

plus

1944

30,
on

to

1954.
Capital and sur¬
the same dates increased
to

of

$107,853,000.
the

giving effect to

shares of

ferred

the

403,082

4% cumulative pre¬

new

stock

corpora¬

the present

financing, consists of

of

on

$1,533,529,000; on

Capitalization

tion,

member

$965,931,000

$64,123,000

from

the

of

from

rose

7,255,479 shares

and

stock.

common

local

creases

gove^jment. with, in¬
the

of

decreases of

I Southern Pacific Go.i

j Equipments Offered i

28 million, in j/'A -group

expfcted

park?

this:

will

the

the highways

on

ffilm

1960J

million by

in

as

Imipon today.

is

number

bad

hospitals.

ber of motor.

1946

banks

million

of

cause

rate.

constituent
$4

be

the

of

Manne Midland Trust Co. of New

and

these

the

will

stocks

to pay off bank loans

balance

comes

education

of

transportation,

decrease

no

a

&

expenditures in the second

substantial

under

little

a

in

third quarter of
cess

ex¬

capital

additional

an

used

for fiscal

of

300

be

from

million

$14

in

corporation's
and

ing from current levels is planned

expenditures |s ,in sight in either

400

proximately

curred

and

CONSUMER

ah

oi

owning

common
^'tock of
1955, rights to pur¬

Jan. 5,

the

trend

its

of

record

course

Corp.,

billion,

chase

quarter of
1953:and the third quarter of
1954,

rate.

$1.6

holders

serv¬

government expenc ilures declined
the

combined

ceeding

par

A

ii I

with

largest
of iotal

therefor, that
purchases of goods

government

ence

local

HOUSING

billion

the second

was

and 'services

trend is

RATES

RESIDENTIAL

$7

Midland

the aggregate 98% of the stock
of 10 banks in
New York State

It is apparent,

quarter

$
ADJUSTED

of

rate

block, accounting for 21%

rate of

BILLIONS

Marine
in

much further.

possible upturn of capital

Spending

plant

the

capital

appraised

modernization

last

Marine Midland Corp.

Offering Underwritten

'

spending in the
third quarter oh 1954 was
running

been cut back by

of

casts

possibility before long.

Business

by

1955
made

investments

1955.

new

While

of
In our

activity in steel produc¬

increased

in

will

and all industries are plan¬
ning T) reduce capital outlays 5%

the

is

Another

survey

indicates

concerns

expenditures

below

aver¬

year,

mate¬

Inventory liquidation naturally
has a depressing effect on busi¬
ness and the process has been go¬

October

in

manufacturing

reduce

7%

1954

McGraw-Hill

conducted

about reached bottom.

predict.

estimated

The

age.

of the National
Association of Purchasing Agents,
inventories

equipment

the

below

survey

rials" have

and

plant

is

recent

Com¬

mission, business expenditures on

that inventory deple¬
braking to a halt and that
some
producers are beginning to
re-stock.
Moreover, according to
a

(Exchange

Board's

the opinion
tion

and

Production is

Industrial

of

picking up.
Increased orders for
major industries during October
and November helped to confirm

records of consumer inventory.

no

Securities

Reserve

Federal

The

become

and

plan to spend just about as
much
as
they did during 1954.

ever,

Subsequently,
notice¬ According to estimates of the De¬
the better in the partment of Commerce and the

change for

Government Expendilures

area,

however, there has been a

"I'll take

cease

inventories

business

to

metropoli¬

reported in our Novem¬
ber "Business Review," definitely
shows a declining trend.
Utilities
and railroads in this area, how¬

too good.

look any

by the railroads and truckers fire
somebody's inventory and remain
so
in one form or another until
the final

three

creases

manufactur¬

in the Philadelphia

for

All government

ices.

tan

planning
in¬
one,
it doesn't

numbered- "those

approxi¬

y,

Our survey among

decreases.
Since the
planning decreases out¬

number

be

outlays

expenditures for goods and

ers

about .16%,

per¬

Minerals dug out
of the earth, fruit and fiber4 har¬
vested on the farm, thiogs hauled
chance to buy.

will

it

peak

a

than count¬

more

by larger

1955.

they were

planned increases and

Nearly 5%

1954

erbalanced

twice—in
Investment

slightly over $28 billion in 1953,
for

likely to be

are

inventories.

mately $26.5 billion.
It is rather
generally expected that such outlavs will continue to diminish in

maintain inventories
then
prevailing.

to

only

year.

plant and equipment hit

and

levels

the

at

trades; -and some are in the show
window as finished suits for the
consumer

About 79% said

ture?"

on

are

some

,

last

of

plan to increase, maintain, or de¬
crease inventories in the near fu¬

yarn;

in process

loom

cloth;

becoming

of

becoming

and

in

Back in the Driver's Seat
frames

interrupted

1949

1955—The Consumer Is
spinning

running

been

have

very heavy ever since the end of
World War II.
This rising trend

letter

greater than

th^former.

headed

by Salomon
offering $8,910,000 Southern Pacific Co. series

Bros.

PP

2%% equipment trust certifi¬

maturing

cates,
1955

to

The

yield

annually

inclusive.

1969,

certificates

from

to

1,

--

priced

are

t1.50%

Dec.

.

2.90%,

to
ac¬

cording to maturity.
Issuance of
the certificates is subject to the
authorization
Commerce

j

is

Hutzler

&

of

the

Interstate

Commission.

The

Courage

of the

each

ing

lead

business
ratelv

100

With

an#

Analysis

Caution

examination

ma|or areas of spend¬
tl^e conclusion that

to'

should' expand

moder-

beyond current levels- The

$365 billion

wi%

question mark

a

issue is to be secured by
standard-gauge railroad
equipment estimated-to cost not
new

of

than

less

group

$11,880,000.

members of

Other

Drexel

are:

the

&

the

hit

that

the

idea

that

What

I

to
we

mean

R. James Foster to

by

Be Rand Go. Partner

moderate.,^It! igjbased on the ex¬
pectation of increased consumer
spending,

continued

construction
some

PEAK

CURRENT

(2ND. QTR/53)

*NET

FOREIGN

SOURCE:

INVESTMENT

DEPARTMENT




OF

NOT

(3RD. QTR. '54)
SHOWN

COMMERCE

PROSPECTIVE
CI955)

^at

residential

present i> levels,

expansion, in business spend¬

ing, and a slight"over-all increase
in government spending.
An ex¬
pansion
fronv the third-quarter
level

jof-.spen#ing

would

be

y.

,

soending

mark jfeut

reader

will
conVey to

Union

Securities Corp., and Stroud & Co.
Inc.

is placed on thejichart not to con¬
vey

offering

Co.;

to $365 billion

a-tittle short of 3%.

Rand & Co.,

York
and

City,

nounce

be

1 Wall Street, New
in corporate,

dealers

municipal
that

admitted

R.

to

securities,
James Foster

general

an¬

will;

partner¬

ship in the firm effective Jan. 1,
1955.
the

Mr.

firm

Foster

for

a

has

been

.number

of

with
years.

i

5

Volume 181*'

Number 5392:.. The Commercial andlFinancial Chronicle ;

(95)

The following statistical tabulations

Indications of Current

Business Activity

latest week
week

<
Latest

AMERICAN

IRON

Indicated

steel

AND

STEEL

operations

!£Pf'

INSTITUTE:

(percent

of capacity)

Jan.

'

month available.

month ended

Previous

Month

Week

Ago

that date,

or»

ingots

AMERICAN

Crude
42

and

and

castings

82.1

(net tons)

_Jan.

BANKERS'

to

runs

output

(bbls.

average

Dec. 24

Kerosene

output (bbls.)
fuel oil output

(bbls.)_

average

Dec. 24

-jCfcc.

(bbls.)—

oil

—

"Sic!

:

—

Finished

and

unlinished

(bbls,)
fuei

Residual

fuel

6,375,300

OF

(bbls.)

at

FEDERAL

YORK

at

RESERVE

As

—

oi

November

30:

24,478,000

24,130,000

24,663,030

2,513,000

2,3.8,000

2,782,000

2,500,000
11,587,000

8,042,000

7,818,000

Based

on

154,922,000

31,,;36,000

113,317,000

D#e.

stored

and

shipped

149,191,000

151.778,000
.

s!'

192,959.000

47,417,000

71,829,000

49,032,000

11,912,000

between

countries

'

8,702,000

<

118,082,000

:

goods

loreign

9,68 AO JO

7,661,000

exchange

139,188.003

11,575,000

235,361,000
42,197,000
16,281.000

55,317,000

40,739.000

17,804,000

Total

BsSc, 24

_

10,888,000

Dollar

..

$245,812,000

148,286.000

12,056,003
credits

$207,236,000

164.294,000
warehouse

24,767,000

Ago

$247,615, <300

Domestic

7,0ii,Ja0

Year

Month

BANK

shipments

6,974,000

Prevloui

OUT.

■_•'

Domestic

.7,226,000

Dec. 24

(bbls.)

at

NEW

ACCEPTANCES

6,233,700

6,270,100

H7,288,000

30,521,000

gasoline

ibbls.)

oil

6,400,950

12,179,000
24

at—

oil

1,798,000

S*

Stocks at refineries, bulk terminals, in transit, In pipe lines

Disunate

24

Dec. 24

—

(bbls.)
(bbls.)

output

Kerosene

1,958,000

*1,850,000

—

Imports

output—dally

stills—daily

Residual fuel

DOLLAR

Exports

—

Gasoline
Distillate

§1,943,000

of

gallons each)

Crude

9

of that date:

are as

Month

75.4

INSTITUTE:

condensate

of quotations,

cases

Ago

*77.6

580.5

STANDING

PETROLEUM

oil

lii

or,

either for the

are

Latest

Equivalent to—
Steel

production and other figures for the

cover

Dates shown in first column

Year

Week

9

or

or

$687,252,000

$534,100,000

9,852

7,269

153,953,003

36,244,000

BUSINESS

29,865,000

134,916,000

117.028,001

24

51,072,000

52,265,000

55,513,000

Dec. 25

551.079

611,871

583,515

480,978

of cars)__E$tc. 25

570,565

612,748

583,048

INCORPORATION

(NEW)

UNITElr~STATfcS—DUN
INC.—Month, of

4;,810,000

&

IN

THE

BRADSTREET,

518,935

i

November

9,735.
>

ASSOCIATION

AMERICAN

OF

Revenue

freight

Revenue

freight received

loaded

RAILROADS:

(number

from

CONSUMER

of cars)

connections

(no.

Month
All

CIVIL

ENGINEERING

CONSTRUCTION

^

ENGINEERING

-

NEWS-RECORD:
U.

■i&gf '

30

construction

Public

...

$324,479,000

198,439,000

191,561,000

and

£fe;c.

__

municipal

Federal

...

COAL

OUTPUT

(U.

coal

BUREAU

S.
and

lignite

147.708.000

129,ai'8,000

106,^74,(301

128,118.000

!8,596,000

81,517,000

OF MINES);

19,590,0000

31,322,000

(tons)

Dei:. 25

STORE

SALES

SYSTEM—1947-4!)
EDISON

ELECTRIC

Electric

605,000

F.u.ts

11,917,000

*8,820,000

7,350,000
500,000

514,000

189

240

133

1

f9,425,COO

*9,431,000

BRADSTREET,
AGE

AND

INDUSTRIAL)

DUN

—

Finished

steel

(per

Pig

(per

gross

iron

Scrap steel
METAL

iper

152

213

221

150

PRICES

Electrolytic

(E.

;

ton)

Dec. 28

—

4.797c

4.797c

4.797c

4.634c

$56.59

$56.59

$56.59

$56.59

$32.83

$32.83

$32.33

$30.17

M.

_____

J.

Export
Lead

refinery

tin

(New

Lead

(St.

Zinc

York)

(East

U.

S.

Louis)
St.

29.700c

29.700c

29.675c

31.050c

31.750c

31.075c

29.050c

87.500c

86.500c

90.625c

84.500c

In

consuming

15.000c

15.000c

15.000c

13.500c

In

public

Dec. 29

-14.800c

14.800c

14.800c

13.300c

29

at

11.500c

11.500c

11.500c

10.000c

at

PRICES

DAILY

J^n.

98.47

99.18

98.83
110.52

110.70

130.7

125.7

122.8

113.5

113.2

106.5

108.6

120.1

120.1

119.7

107.0
-

125.7

92.3

Stocks

114.66

115.24

Aa

Cotton

111.07

DEPT.

BALES:

!

November.,

establishments

storage

COM¬

OF

of

as

as

Oct.

month

of

703.697

Nov. 27

30
October

spindles

active

of

Oct.

1,586,938
11,225,654

117,379

30——

116,517

110,217

2,025,145

1,291,656

19,348,000

—____

as

684,976

1,338,270
12,756,658

1.464.489

___

30_____—

Oct.

706,603

1,557,036
13,822,213

of

19,295,000

19,980,000

106.21

114.85

of

month

Linters—Consumed

96.73

"3110.52
Jan-

corporate

Aaa

_____—Jap.

112.19

112.37

112.56

Jari.

110.52

110.34

110.70

J-sfn.

105.00

105.00

105.00

100.16

JsfP•
__-J<Ui.

^108.70

104.14

Jim.

,111.81

GINNING

(DEPT. OF

COMMERCE)—

108.04

Baa

COTTON

108.1Q

A

Railroad
Public

Group

Utilities

Industrials
MOODY'S
U.

S.

Aaa

:

.

Group

Group

■

i

__

.___

YIELD

BOND

DAILY

„___.

_

108.70

109.06

111.07

111.25

106.74

111.81

.111.25.

112.00

To

Dec.

107.98

Active

spindle

Active
2.61

HE.

corporate

.

v-.

tip-

—

*ar:

2 53

2.56

2.73

3.14';'*#?

3.14

3.13

2.92

2.8)

Aa

Jam-

J$i.

4

3.14

3.15

3.13

spindle

Jafo.

4

3.45

3.45

3.45

3.74

Public

Group

Utilities

Industrials
MOODY'S

qan.

Group

jfn.

INDEX

PAPERBOARD

received

Jan.

:

COMMODITY

NATIONAL
Orders

J<Sn.

;

Group

Production

6fec.

(tons)

Percentage

of

Unfilled

(tops)

OIL, PAINT AND DRUG
1949

AVERAGE

=

end

Final

3.24

3.24

3.22

3.50

3.10

3.11

3.10

3.35

100

4

3.07

LOT
•

DEALERS

EXCHANGE

—

FOR ODD-LOT

3.06

3.07

3.28

4

416.2

413.4

407.3

410.8

Odd-lot sales by dealers

ON

Y.

N.

EXCHANGE

25

182,895

208,891

199,444

145,118

239,060

252,701

244,798

200,597

90

92

88

349,727

343,160

106.56

106.78

106.78

Sorghum

Customers'

short

sales

1,370,675

750,883

$58,180,965

$67,972,730

$65,204,683

$31,713,691

1,283,826

1,492,485

1,536,591

846,235

18

Dec. 18

,

10,131

8,040

10,684
'

Dec. 18

value

Round-lot

Dec. 18

sales

Number

Short sales
Other

1,275,786

$58,223,698'

1,482,354
$65,742,603

''

1,525,907

$69,204,683

4,9x5
'<

•

sales

Dec. 18

J

Alfalfa

841,320

Red

$3Q,885,477

Dec. 18

448,729

468,123

526,220

304,640

448,729

468,123

526,220

804~640

Beans,

Number

TOTAL

of

Peas,

shares

STOCK

ROUND-LOT

Dec. 18

——

SALES

ON

THE

N.

STOCK

Y.

387,730

346,039

361,320

216,600

Peanuts

^

f'r

picked

16,465

105,787

105,530

10,874

11,943

6,191

5,912
6,748

135,570

(pounds)

85,455

55,724

—

12,057

8,101

—_______

37,810

(pounds)——

(pounds)
(pounds)
(bags)—

rnwt)»as

13,206

156,738

____

(pounds)

(bags/—

dry

109,353

5,568

•

81,265

—_—__—

w

34,341

—

70,517

^

28,150

31,465

seed

dry

322,128
163,354

10,184

—_____—.—.____—

seed

Lespedeza

Timothy

Round-lot purchases by. dealers—

52,607

104,380

——

.

seed

53,534

13,569

——

seed

36,668

6,431

—.____

Xpounds)

seed

3,193

-

39,989

6,890

(tons)

clover

18,163

;

204,087

:

(tons)

(tons)

clover

Al.sike

Dec. 18

1

wild

268,528

221,945

(tonsi

Sweetclover seed

7

sales

all

Hay*

242,544

23,290

58,853

—

(tons)

Cottonseed

367,092

23,688

2,719'

(bales)__

lint

Cotton,

by dealers—

shares—total

oi

silage

274,909

1,209,458

41,534

.....

forage

Hay,

i

sales

other

1,412,931

12,967

175,395

1,506,213

342,795

(pounds)
grain
(bushels)

Popcorn

Dec. 18

Customers'

Dollar

(bags)

(so, .'.num

fJec.

287,876

7,963

370,126

-

—;

(bushels)

Sorghum

:

881,608

183,358

173,487

;

(bushelsi

beans

for

Flaxseed

(customers' sales)—

Number of shares—Total sales

1,169,484

775.900

1,499,579

(bushels)

spring

Rye

107.38

1,173,065

(bushels)—

Barley (bushelsi
(bushels)
Buckwheat
(bushels)

313,963

*

Dollar value

3,192,491

959,258

179,044

—

—

(bushels)

Soybeans

77

292,891

Dec. 18

Odd-lot purchases by dealers

2,938,713

AGRICULTURE—

OF

thousands):

(in

(bushels)

Other

STOCK

(customers' purchases)) —

spring

Oats

COMMISSION:

Number of shares

447.1

REPORTING

CROP

—

(bu hels)

Durum

ACCOUNT OF ODD- *

SPECIALISTS

AND

SECURITIES

8,719,000

457.8

969,781

i

(bushelsU-——

all

Winter

R'm

STOCK TRANSACTIONS

19,990,000

place

in

(bu::he!s

r.ll

All

Dec. 31

22,930,000

9,042,000

2,964,639

27

19,295,000

8,768,000
449.6

Nov.

22,601,000

19,348,000

790,737

spindle

per

DEPT.

S.

report

Wheat,

INDEX—

PRICE

22,535,000

5,557

hours
.'

U.

LOARD

4
4

Dec. 25

of period-

REPORTER

3.27

Dec. 25

:___

at

3.03

Coin,

Dec. 25

activity

orders

3.04

3.05

,W '

ASSOCIATION:

(tons).

15,164,851

13,038,895

.J—-—
COMMERCE):

OF

(000's omitted)

PRODUCTION

( ROP

3.39

Baa
Railroad

hours

November

3.11

A

4

bales).

(DEFT.

3.38

2.91

(running

Spinning spindles in place on Nov. 27—
bpinn.ng spindles active on Nov. 27—_

AVERAGES:

Jan-

13

SPINNING

COTTON

^.ij0B-

Bonds'--

Government

Average

'

Consumed

AVERAGES:

Government Bonds

Average

126.4

106.9

—

MERCE—RUNNING

29.700c

Dec. 29

i.

Louis)

BOND

LINTERS

Dec. 29

______

\

MOODY'S

ANI)

BNsc. 29

_______

at

115.8

90.9

113.4

care

100.8

116.5

125.0

Reading and recreation,
Other goods and services

107.6

99.0

91.1
:

105.5

106.4

99.6

:

116.6

104.3

106.4

girls'

108.1

117.1

125.9

and

106 0

117.6

care

COTTON

:

at_

126.8

107.9
122.4

105.6

__,

boys'_

Dec. 29

at
York)

(New

118.7

128.8

123.8

oilr

apparel

Personal

'

Domestic refinery at

Straits

117.4

119.5

^

QUOTATIONS):

copper—

116.0

108.5

fuel

operation

and

Medical

Dec. 28

___

ton)

&

115.7

116.7

and

Transportation

Dec. 28

lb.)___.

110.1
107.7

104.6

Other

PRICES:

gross

home—

at

Footwear

Dec. 30

111.1

110.5
~

electricity

iueis

Men's

8,198,000

&^

INC

COMPOSITE

111.1

v

129.0

Household

"jr

IRON

foods

Housefurnisliings

163

9,612,000

105.8.

119.5

and

Gas

^

Jan.

kwh.)

(COMMERCIAL

vegetables

!

Ren.

Women's

FAILURES

..nd

Other

6,673,000

688,000

'

120.4

106.7
'

,087,000

Apparel

INSTITUTE:

000

22,157,000

Dairy products

113.3

122.6

103.9

.__

113.6

111.6

106.7

and

115.4

112.4

122.7 '

fish

pu'u.try

114.7

111.8
110.9

—

.

products—

Solid

ETCc. 25

100

=

101,004,000

RESERVE./

INDEX—FEDERAL

AVERAGE

(in

output

—

114.5
I

Housing
7,310,000

D^jp. 25

—

(tons)

October:

iiuine_____
Cereals and bakery

52,193,000
8.

f. K

Feed «t

$153,197,000

**
"

Pennsylvania anthracite
DEPARTMENT

196,088.000-

30

tec. 30

Bituminous

$302,762,000

30

construction

State

$346,147,000

1947-49.-=100—

—

Mea^s,

,

Dec. 30

construction

S.

Private

of

INDEX

items

Food
.

Total

PRICE

18,899
—

——

•

(bushels)———
and threshed
(pounds)——

peas

——_

18,375

3,484

3,868

18,171

3,350
1,785

1,359

1,043,560

"

1,071,415

1,588,415

'

EXCHANGE AND ROUND-LOT
FOR

ACCOUNT

OF

STOCK

MEMBERS

Velvetbeans

TRANSACTIONS

(SHARES):

I

—

—

——

Total sales
ROUND-LOT

TRANSACTIONS

FOR

ACCOUNT

OF

666,980

15,992,880

"7,0 jo,iy J

Sorgo

16,741,940

7.321,750

Sugarcane

MEM¬

of

specialists

in

stocks

In

which

Dec. 11

Short sales
Other

376,020

438,110

1,708,920

1,490,980

Dec. 11

2.204,770

2,084,940

1,929,090

620,540

611,650

585,120

199,230

40,600

26,100

37,500

6,700

568,760

593,950

4'.'2,310

157,590

Dec. 11

609,360

620,050

529,810

164,2,0

Other

Dec. 11

sales

743,238

656,625

680,649

sales

off the

i.

Short sales
Other

Dec. 11

Total round-lot
Total

transactions for account

Commodity
All

NEW

SERIES

—

U.

S,

DEPT.

of

Jan.

181,9 83

3,131,067

3,028.632

2,561,871

942,470

3,511,662

3,135,651

1,124,450

3,715,187

Walnuts

109.4

109.5

110.4

91.7

*90.7

91.8

1,

farm

and

foods

103.3

103.0

103.5

105.8

84.3

83.8

85.0

114.8

114.7

114.5

not




reported

since

introduction

WINTER

114.5

rInc!udes 618,000 barrels of fore'gn crude runs.
§Based on new annual capacity
1955.' is against the Jan. 1, 195-4 b*i"is of 124,, j„0,41p tons.
:?Preliminary figure.
orders

For

91.4

Dec. 28

figure.
of

93,307

61.252

64,473

30,327

29,081

2,607

2,705

2,700

192

224

145

160

243

Calif,

92

149
81

(tons)__
—.

45
52

:

141,475

,

■■_

i~—

-

'

28

130,930
48,370

46,120

f-

33

.»——

»

16,130

14,600
1,012

1,203

92,502

96,600

211,660

—.—

39

44

(tons)

(tons)

974

74
—

__

59

-

40

(tons)

120

10,175

10,256

5,953

6,581

679,137,000

790,737,000

85

73

96.2

Dec. 28

foods-:

109.6

Dec. 28
—Dec. 28

tNumber

Almonds,

OF

Dec. 28

than

dried

—————————

(pounds)

Pecans

41,803

103,716

58

(tons)

nuts (tons)
Commer. vegetables for fresh markets
1

other

than

(tons)

Grapefruit
(boxes)
Lemons,
Calif, (boxes'—
Crapberries
(barrels)
t

1,250,670

573,780

31

43,488

103,773

187

(tonsi

(boxes) '

Oranges

Group—

commodities

•Revised
as

3,157,929

483,030

126

1,254

——-

—

—

other

Calif,

5,575

12,084

78

dried

Prunes,

Olives,

:———

.;

Tung

Meats
All

3,344,605

584,120

13,782

197

—

(tons)

Avocados

(1947-49= 100):

products

Processed

3,580,618

•

30,077

:

(tons)

Prunes,

267,560

Dec. 11

commodities

Farm

676,751

Dec. 11

PRICES,

—

806,672

7,619

_

60,794

;

(tons)

PiUins

211,510

90i ,057

2,739

4,795

43,491

—

(bushels)

(bushels)

Apricots

53,059

573,581

Dec. 11

Total sales

LABOR

98,170

725,762

Dec. 11

f

sales

WHOLESALE

80,910

755,057

2,055,370

6,883

27

(to™*)

of members—

purchases

Short sales
Other

146,000

Dec. II
,

2,156,034

2,699

6,940

1,730

(bushels)

Grapes

300,969

Dec. 11

sales

Total sales

2,200,134

—

(tons)

corn

Peaches

floor—

purchases

34.276

168

(pounds)
Apples, commercial crop

'

Total

380,075

29,285

14,027

Hops

Pears

*

transactions initiated

,239

573,370

'

floor—

—~

346,943

29,880

"

Broom

692,600

Dec. 11

.Dec. 11

the

Short sales

Total

11

397,520

1,807,250

—

on

purchases

Maple

750,450

1,892,160

-Dec. 11

.

Total sales

Other

2,076,330

Dec. 11

.___

Other transactions initiated
Total

2,216,840

..Dec. 11

sales

—

—

(tons)
sugar
(pounds)
sirup
(gallons)

Maple

registered-

purchases

i

Sugar beets

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Total

(tons)——

pounds)

263,540

16,828,770
17,495,750

796,230

130-

355,0J9

—

—,— —~

Sirup (gallons)
for sugar & seed
Sugarcane sirup (gallons)

Tobacco

749,060

18,464,010

19,260,240

-

Transactions

)

(bushels)

68

^

—

—

Djc. 11

Dec. 11

sales

UU.Vi

;

—

__Dec. 11

sales

Other

1,

>

Sweetpotatoes

Total Round-lot sales—

Short

ULciiywtJ

(tons)

-

of

Monthly Investment

Plan.

of 125.828,310

ING
i

processing
RYE

(tonsi

CONDITION—CROP REPORT¬
U. S. DEPT. OF AGRICUL-

BOARD

TURE—As

of

Dec.

1

WHEAT PKODUCTION——CROP K -PORTING BOARD U. S. DEPT. Or agkiCULTURE—As of Dec. 1 (bushels)

WINTER

tons
i

40

The Commercial and Financial Chronicle...

(96)

capacity of the entire industry will be at

of

Thursday, January 6, 1955

5

The State oi Trade and

Industry

80.5% of

by moderate trade price-fixing for

capacity for the week beginning Jan. 3, 1955, equivalent to 1,943,-

domestic and foreign account and

000

Continued from page

v

short covering which encountered

tons

cf

is

the quarter

the average rate for

capacity and

rated

expected to be near that figure.
First

The

on
flat-rolled products such as hot
galvanized sheets is already virtual.y
spurt in tinplate business is also expected soon.

sold out and

a

sheets

and

Tightening of the market for flat-rolled steel of course re¬
production schedules of auio producers. They are ex¬
pected to exert even greater pressure right up to the end of May
when present wage contracts of General Motors and Ford expire.
There is no doubt that those responsible for setting production
schedules will be mindful of the labor situation, states this trade

week

a

average

compared

as

with

77.6%

ago.

light offerings.

industry's ingot production rate for the weeks in IS54
annual

on

For the

capacity

like

124,330,410

of

month

tons

Jan.

of

as

1954.

1,

The

week

a

1,958,000 tons.

117,547,413 tons

1953

based

are

annual

on

of

capacity

journal.
flat-relied products isn't

due entirely to
demand from the auto companies. Appliance makers have recently
raised their sights as 1955 promises to be a better year for them.
Many manufacturers of miscellaneous consumer goods are also
shopping around looking for opportunities to squeeze in soot
orders for reasonably quick delivery, this trade authority asserts.
The

hot

One
steel

market

the

of

market

most

convincing

This is important because bars are
used in a great many diversified manufactured articles and firm
improvement in bars reflects a brighter outlook for manufacturing
generally.
finished

alloy bars are also making a solid
Structural steel is seasonally weaker and oil country

comeback.

bars

constituted a decrease of 6,000,000 kwh.
previous week, when the actual output stood at
9,431,000,000 kwh., but an increase of 1,227,000,000 kwh., or 15.0%
over
the comparable 1953 week and 1,712,000,000 kwh. over the

and

industries

' lion and oil

The steel scrap

the

price

motive

the

according to "Ward's Auto¬

year,

Reports."

''Ward's,"
509,200

in

year-end

a

and

cars

1,024,700

estimated 1954 output at 5,with the combined total of

recap,

trucks,

preceding

It

cars

The statistical agency

produced in 1954

befbre

put

tributed.

said that 1,312,102 or 23.8%, of the cars
1955 models, a record lor new model out¬
the total, General Motors Corp. con¬

were

Dec.

31.

Of

40,379

cars

•

netted 86,431 units.

ago

schedules for January to a

five-day level.

and

car

truck

completions

against

built

735,200

in

U.

S.

The

550,000 units,

which

is 35%

new

sales at approximately

car

November and

over

second

in

1954

only to the 560,000 sold during June.
General

Motors Corp.

30.6%

in

1S53, but its fourth-quarter

for

its

Steel Output
Third

1955

new

share

1954

19.1%, with December alone showing 21.4%
demand

States car

up

from

20.3%

pushed its share of United

to 52.1% from 45.6% in 1953, with Ford rising
25.2%.
Chrysler Corp. dipped to 13.2%in 1954

output in 1954

was

destiny

cf

steel

net

tons.

cor

ingots

for

It may

castings

and

should

be

around

5.000,000 tons above or below
automotive strike, a threat of war

vary

that

out

amount

100.000,000

in

1954,

United

tons.

but

on

the

basis

States did
of what it

not
did

produce and the amount of finished steel used out of inventory,
the total requirement of ingots was abcut 100,000.000 tons.
Of
that amount, 88,000,000
The sfeel

of

the

mro

of the

juidi

from

them

piuvxc.ea

that

used

was

part

oi

1C53

1954

and

1953

end

a

totaled

1954, and

199f600,000 tons,

or

Add the output cf

year.

the

Production

an

no

total is 358.000,000 tons or an

the

inventories.

consume—and

ruto

little

better

more

than

ingots.
tons

for

and

have

We'll

that's around

100 000,000.

than that.

1954.

Only
1953

average

it

least

as

are

much

100,000.000 tons of ingots.
don't

strikes

occur,

may
we

be for
may

If
a

need

1955 may be 5%
right, we'll need 105 million tons of

have been

111.600,000 tons.

was

at

There

Business analysts think

two years

1954 is that

If

If they're

with

produce

to

by strikes, the need

irdustry is plagued

little less than
a

need is 100,000.000 tons of ingots.

our average

excess

we

as

or

of

one

of

better:
Most

1951
that

with
can

105,200,000

be

said

now

the best eight years for ingot pro¬

duction.
The American rron and Steel Institute announcei

era'.ing rate of steei companies having




that the cp-

95.1% of the steelmaking

the

week

Withdrawals
in

the

of

latest

loan

ended

of

of

Last-minute

"Ward's."

states

In

the

of

week

the

there

reported

agency

17,986

were

in

the

Sharply

Previous Week

gift

buying

purchases

and

of

re¬

at

were

the

Wednesday of last week than
corresponding week of 1953.

on

the

greatly,

peak

the

of

Recently improved business

an

1953

trucks

a

period ended

in the

from
prior week.

assembled

like

16,983

stock

merchandise

couraged

Reports,"

3.

cotton

1,543,006 bales.

after-Christmas
duced

bales

totalled

net

a

far

so

Dec.

1954-crop

week

bales, leaving
CCC

high

a

of about 204,000

season

during

Total retail sales declined

Further Declines in

Automotive

week

en¬

retailers to expect

some

higher

a

volume

of

sales

in

the
first half of the coming year than
in the same period of 1954.
The total dollar volume of retail
in the week was estimated

trade

by Dun & Bradstreet, Inc., to be
unchanged to 4% above the level
a

Regional estimates

year ago.

varied

from

fic Cost 0 to

as

against 18,683

(revised)

in the previous

19,300 in the like 1953 week.

and 1,090 trucks in the comparable

cars

1953

levels

4-4; East and South¬
4-1 to 4-5.

west

Shoppers
Are
Commercial

many

Holiday Week But

Slightly Above Year Ago
industrial

and

failures

to

the

in

152

of

higher
week

similar

week

of

slightly above the

and

exceeded

the

toll

128

1939.

Failures
in

the

when

in

150

of

which

However, mortality continued 20% below the

190 in

ago

1953

the

occurred

in

level

pre-war

previous
130

week

this

of

and

size

were

or more

less

fell to 127 from

numerous

recorded.

were

than

decline

A

a

year

took

also

place among small casualties, those with liabilities under $5,000,
bringing their toll down to 25 from 41, but they exceeded their
1953

level

of

of $100,000

20.

or

Eleven

more,

the

of

failing

had

concerns

liabilities

unchanged from last week.

3 cents

up

the

over

food

year

price index
stand

to

mod¬

rose

$6.78

at

Dec.

on

previous week at $6.75.

Oct. 19.

quoted higher

last week included flour, wheat,
corn, rye, oats, bellies,
butter, cottonseed oil, cocoa, eggs, steers
and lambs.
On the down side were barley, lard, sugar and
hogs.
The index represents the sum total of the
price per pound of
31

raw foodstuffs and meats in general use and its chief function
is to shew the general trend of food
prices at the wholesale level.

Wholesale

Commodity Price Index Establishes
High for Year In Latest Week

The
8c

279.82

This
277.21

Inc.. continued its upward

week

a

a

high

new

The 1954 low

past

the

was

270.72 recorded

movements

were

year,

and

week

the like date

on

to

June 30.

a

year

ago.7

irregular last week.

New-croo

rose to new seasonal highs
during the week on
buying influenced by fears of possible damage to tve Winter wheat
crop c ue to prolonged dry weather.
Over the week-end, however,
the drought appeared to be broken as the result cf +he
unexcno^l

Winter
at

in

the

wheat

form

belt,

rain

of

causing

and

a

snow

sharp

wide

over

reaction

areas

i'u.ures

in

of

the

prices

the close.
The

sovbeans

decreased

moisture
due

to

had

the

a

beneficial

belief

that

effect

inclement

were

easier

but

recovered

seasonally.

ing in most lines
lower

than

in

Buy¬
significantly

was

previous week

above

a

for furniture

year

but

ago;

or¬

and

appliances
relatively greater than those
for textiles, apparel and food.
Department
store
sales
on
a
country-wide basis

as

taken from

the Federal Reserve Board's index
for the week ended Dec. 25,* 1954
advanced 16% from the like pe¬
riod last year.
In the preceding

Dec.

of 3%

was

the

four

1954,

1954,

weeks

increase

an

ended

increase

an

corded.

18.

registered from that of
period in 1953; and for

the similar

For

the

of

Dec.

5%

period

25,
re¬

was

Jan.

to

1

Dec.

25, 1954, a loss of 1 % was
registered from that of the 1953
trade

volume

City last week

able

to

year

ago,

that

the

of

in

was

like

New

compare

period

a

according to merchants'

estimates.

the

to

Board's

serve

Federal

index

Re¬

detriment

store

sales in New York City for
weekly period ended Dec. 25,*
1954,
registered
an
inrr^ase
of

17%

above the like period of last

In the preceding *T'°ek. Dec.

year.

18, 1954,

ported

in

week

decrease of 1%

a

from

that

of

the

was

Dec.

4%

25, 195*

four

in¬

an

renorte-i.

was

re¬

similar

while fc t*~e

1953,

weeks ended

of

For

the
on

pr'^s

weather

for

corn

would

and

hinder

toward

the

finish

in

sym¬

pathy with corn.
Trading in grain and soybean futures on the
Chicago Board of Trade declined two weeks ago to a daily aver¬
42,200,000 bushels, from 52 500 000 the week previous.
Cotton prices were
generally firmer two weeks ago, aided

age of

on

week

crease

the movement of these grains off the farms.

Oats

ended

the

wheat deliveries

moisture

than

activity in the period
Wednesday of the past

Retail

with

comparrl

cn

men's

year.

According

for

earlier, and with 273.55

Grain price

the

for

heavier

was

of

suits.

Wholesale

York

Dec. 28.

on

marked

trend

and

period.

New

daily wholesale commodity price index, compiled by Dun

Brae street.

buying

coats

demand

clothes

this

week,

Commodities

comparable

heavy

was

reduced

seasonal

usual

the

1953.

There

formal

moderately

in

were

However, it feil
below the year-ago level for the first time since
rrid-September,
comparing with $6.81 last year, for a drop of 0.4%.
"The 1954
high was $7.46 on May 25, and the low point of $6.59 was reached
on

in

women's

ders

In Final 1954 Week
Bradstreet wholesale

&

were

than

somewhat

Wholesale Food Price Index Rises Moderately
Dun

Purchases

The

(

involving liabilities of $5,000

to

of

year.

nevertheless
of

by

other household linens

traditionally featured at this time

declined

ualties

were

attracted

promotions

were

|Stores

sheets and

ho'iday week ended Dec. 30 from 213 in the preceding week, Dun
Bradstreet, Inc., reports. At the lowest level in 11 weeks, cas¬

1952 to that

cf 93.500,000 tons.

So,

an

1953 week.

of about

average

1951 and

the

preceding week and 5,772

1955 would about equal the

last four years.

for

"Ward's" estimated Canadian plants turned out 4,910 cars and
924 trucks last week,
against 4,902 cars and 979 trucks in the

year.

supply >or

ine

total

preceding week and
this

of

week and

stand at

last two years or the

100,000,000 tons
cf

derived

steel

stoi«ge.

100,000,000 ingot ton output in

average
in

finished

consumption.
A

American

turned out.

this country,

irdustry made 111,600,000 tons of ingots in 1953, but not

went

e

1954

units,

were

1954 and 12 000,000 in 1953.

made in

were

The

off with

market

open

the
corresponding
by the following per¬
centages: Midwest —3 to -f 1;
Northwest —2 to 4-2; New
Eng¬
land —1 to -f3; South and Paci¬

28.

sumption continues at the 19o4 pace, we'll need an

of around

ingot output

Con

of

1953

erately in the final week of the

depending upon an
widespread decision to rebuild inventories.

If steel

all

981

week,

made in

The

says

1hat figure,

turn

Association

industry for the latest week, ended Dec. 31,
"Ward's

to

because' of booming

Schedule to Advance to 80.5% This Week

1955's

Output

a

cars,

Output Registers

automotive

output of

models.

largest steel production

be

to

CO,000,000

or

561,079

corresponding

Auto

according

to

up

year in history,
That's pretty
"Steel," the weekly magazine of
meta'working, the current week.
Plan with that in mind.

1

or

86',431 units

172

"Ward's" estimated December

sure

the

to

estimated 124,570 cars, compared with 124,854 (revised) in the pre¬
vious week.
The past week's production total of cars and trucks
amounted to 142,556 units, a decrease below the preceding week's

De¬

cember.

in

however,

1952.

Despite two fewer working days, January is programmed for

x

according

&

Working only four days on final assembly last week were
Dodge and Chrysler, with the latter division said to be holding its

from

the

plants again scheduled half-

day Friday operations the past week, holding United States out¬
go! to 142,556 cars and trucks against 143,537 in the prior week.

to

week,

Business Failures Fall In

stated that automobile

advance

17, as reported by the
CCC, fell to 128,520 bales, com¬
pared with 159,136 bales in the

52.1%, Ford Motor Co. 23.8%, Chrysler Corp. 20.2% and

"Ward's"

742,500

freight for the week ended Dec. 25, 1954,
80,792 cars or 12.6% below

increase of 80,101 cars
week, and an increase
7.8% above the corresponding week in 1952.

above

the Independents 3.9%.

A year

revenue

Loadings totaled

Last

and 1,055,000 trucks
projected for 1955 gives a combined 6,855,000 total that is third
highest, topped only by 1950 and 1953.
added, however, that the 5,800,000

1955.

ernment loan have fallen

higher level in

16.7%

1954,

for

Entries of cotton into the Gov¬

from Level

Railroads.

€,533,900 vehicles the fourth highest volume in history.
1

: ■: %

■

■;

Curtailed Work Week

"The Iron Age"
ton to $34.17 per gross ton.

a

■'

■

included Christmas/ decreased

records.

new

producers ended 1954 with assembly

passenger car

their 5,500,000th unit of

cf

$1.34

rose

'

allotments

acreage

Holdings Decline 12.6% Below Preceding Week

Loadings of
which

market is stronger this week.

steel scrap composite

Domestic

pointed toward

are

outnut

1952.

the
out¬

export

Trade Volume Declines

Car

gocds is still undergoing a belated inventory correction. But these
i'ems are headed for another outstanding year because construc\

week's

like week in

bar

is coming along strongly now.

Cold

This

below that of the

the flat-rolled market, but it

slower to improve than

was

distributed by the electric light
industry for the week ended Saturday, Jan, 1, 1955,
estimated at 9,425,000.000 kwh. (preliminary figure), accord¬
ing to the Edison Electric Institute.
power

was

the

recovery in
carbon bars. The

solid

signs of

in hot-rolled

the turnabout

is

market

for

recently,

ended Dec.

The amount of electric energy

and

sales

favorable

look, and the prospect for reduced

prices.

Declines Further In Holiday Week

influences'

improvement in do¬

textile

continued

the

flects high

Electric Output

mestic

the

ago

of Jan. 1, 1953.

as

constructive

included

ago

A year

percentage figures for

Other

was

the rate was 82.1% and pro¬
the actual weekly production
wa.5 placed at 1,798,001) tons or 75.4%.
The operating rate is not
comparable because capacity was lower than capacity in 1951.
duction

capacity

quarter

cold-rolled

and

ingots and steel for castings

(revised) and 1,850,000 tons

based

85%

of

an

period ended Jan. 1 to Dec. 25,
1954, the index advanced 1% from

that of the
*The
week
year

1953

large

reflect

period.

increases
in-wart

Christmas

fell

on

shown

the -fact

for

this

that

this

Saturday and

week

therefore

heavy

pre-Christmas shopD:n*r as
with
four
d|HSt
y^ar

rared

Christmas

feil

included

on

Friday,

Fve

days

the

dt

com-

when

Volume 181

Number 5392

The Commercial and Financial Chronicle

...

if INDICATES

Securities

Now

if Affiliated Fund, Inc., New York
Dec. 28 filed
stock.

(by amendment) 3,000,000 shares of capital

Price—At

market.

Proceeds—For

investment.

if Afbutah
Dec.

Mining Corp., Albuquerque, N. Mex.
(letter of notification) 20,000 shares of common

27

stock.

Price—At

($10

par

share).

per

Proceeds—For

mining expenses, etc. Office—515 First National Bank
Bldg., Albuquerque, N. Mex. Underwriter—None.
•

Aluminium

Dec.

Ltd.

(1/10)

16

filed a maximum of 921,923 shares of
capital
(no par) to be offered for subscription by stock¬
holders of record Jan. 7, 1955 at rate of one new share
stock

for each 10 shares held; rights to expire on Jan. 31. Price

—$47.60
For

share

per

expansion

(United

States

funds).
Proceeds—
Dealer-Managers — The First

program.

Boston

Corp.; A. E. Ames & Co., Ltd.; Morgan Stanley
& Co.; and White, Weld & Co.

Amalgamated Uranium Corp., Salt Lake City, Utah
(letter of notification) 2,500,000 shares of com¬

Sept. 1
mon

stock

(par three cents).

Price—10 cents per share.

NEW

ISSUE

f

in

January 6

(Thursday)

RR
EST)

noon

Trust

(Alex.

$6,810,000

Brown

&

Sons)

January 10

100,000

Corp., Briarcliff, N. Y.
Dec. 6 (letter of notification) 7,500 shares of 6%
par¬
ticipating preferred stock.
Price — At par ($10 per
share). Proceeds—For working capital. Business—Dis¬
tributor of prefabricated concrete wall panels and
resses made of steel reinforced dense
concrete, etc.

American
Dec.
mon

Duchess

Corp.;

E.

Ames

&

White,

Co.,

We:d

Ltd.;
&

Diesel

(Van

Co.)

Noel

by

Morgan

par

filed

($10

195,000 shares of

&

The

First

per

Proceeds

Co.;

noon

First

Boston

Edison

(The

First

(Bids

Common

$642,428

(Bids

British

Western

Income

Fund

and

and

For oil and gas activities.
Office—505 Barrow St., An¬
chorage, Alaska. Underwriter—Grace C. Tucker, 2711
Mayfair St., Seattle, Wash.

Inc., San Francisco, Calif.
notification) 2,970,000 shares of class A
capital stock. Price—At par (10 cents per share). Pro¬
ceeds—For exploration and development expenses.
Of¬
fice—995 Market St., San Francisco, Calif. Underwriter
—Coombs & Co., of Los Angeles, Inc., Los Angeles, Calif.

to

(Bids

CSTi

Ltd.;

ments,

Co.

Ine.)

bv

Bear,

Fuller

Corp.,

Uranium,

&

170,000

Debentures

Co.,

Co.;

&

Forgan

&

shares

Inc.)

Gas

$298,800

Co

Drexel

Co.)

<fc

D.

v

(G.

H.

&

Otis, Inc.)

and

Glore

13

(Bids

(City

&

Dillon

&

be

(Offering

•

(Wednesday)

-

debentures
be

to

invited)

$35,000,000

Co.)

Co.)

&

$9,200,000

(Thursday)
.Common
by

97,481 shares

~_T

Co.)

Feb.

Glore

Common

125,000

14. :

Price—To

&

King,

Stout

&

Co.)

City

more

...Debentures

_

(Bids

to

be

invited)

public

and

January 14

February

(Friday)

of Los Angeles
(Offering to stockholders—underwritten
Co.,

Inc.)

General

Common
by

Blytli

$25,000,000

&

(Oliering

Corp.___

&

&

Co.)

January 17
(Baruch

(Monday)

Sheraton

&

Co.,

Sanders

&

Co.)

Blosser

shares

&

Duquesne

Light
(Bias

Hycon Mfg.

Inc.)

Co.,

Fairman,

R.I.

Graff

&

Investing

Power

(Bids

11

Co.)

a.m.

Electric

Service

(Bids

11:30

interest.

1, 1970.

Proceeds—To

debentures

Price

redeem

—

6%

100% aril

convertible

due

Providence, R. I.

—For

Price—At

mining

Lake

par

(three cents per share). Proceed!
Office—510 Newhouse Building.

expenses.

City,

Underwriter

Utah.

Phillips Building,

same

—

Call-Smoot

Ccn

city.

$5,000,000

Continued

on

page

Corp.__Common
Bonds

$16,000,000

(Wadnesday)

Co

Bonds

a.m.

EST)

$625,000

15

March

(Tuesday)

ESTi

(Bids

(Tuesday)

Bonds

Kansas Gas &

$25,000,000

$17,000,000

Mart, Inc.
.(Shearson, Hammill & Co.)




to

be

'

•

$6,000,000

be

Union

New York

Securities

Common
Corp.)

384,861

Boston

Philadelphia

(Friday)

Westpan Hydrocarbon Co
(May

Bonds

:
$10,000,000

..Preferred

invited)

April 15
Common

180,000 shares

invited)

Electric Co

(Bids

(Wednesday)

be

to

of

$600,000 5%% 15-year sinking fund subor¬

Common

Corp.)

'

.

invited)

February 23
Texas

$1,200,000

Co

January 19
Food

be

manufacture

$750,003

Kansas Gas & Electric Co.__

January 18
England

Debentures

Co.)

to

underwriter.

to

Inc., Providence,

debentures due Jan.

G. H. Walker & Co.,

Salt

$7,000,000

Curtis)

N

(1/13)

Dec. 23 filed

dinated

stock.

City Power & Light Co

(EST) 450.000 shares

Mid-Continent Uranium Corp

New

&

issued

(Tuesday)

Morgan

(Bids to

Preferred

(General

Jackson

be

to

Proceeds—For

Common

Co

(Townsend,

Webber,

(Peter

Kansas

Harris

$2,500,000

Co..
noon

EST)

Chesapeake & Colorado Uranium

Debentures
and

a.m.

the

Big Bend Uranium Co., Salt Lake City, Utah
Aug. 6 (letter of notification) 7,000,000 shares of common

-Debentures

America

of

before

Morgan

(Monday)

February 15

Common

1.990,000

McDowell

&

11

share.

$292,000

Colonial Acceptance Corp
(Straus,

Corp.

(Paine,

Common
Inc.)

Canada General Fund (1954) Ltd
(Vance,

by

$325,000,000

approx.

Dallas Power & Light Co

Metals, Inc

Brothers

Co.)

February 14

Common

$300,000

(Bids

Arizona Golconda

Common

stockholders—underwritten

to

Stanley

shortly

Sept.
1,
1967 presently
outstanding and for expansion program. Underwriter—

(Tuesday)

8

per

Beacon Associates,

accrued

$6,600,000

Green Mountain Uranium Corp
(Tellier

Motors

shares

80,000

Price—$3.75

subordinated

Citizens National Trust & Savings Bank

determined

Automatic Remote Systems, Inc., Baltimore
Aug. 4 filed 620,000 shares of common stock (par
cents), of which 540,000 shares are to be offered

$830,000

Chesapeake & Potomac Telephone Co. of Balti¬

shaies

be

offer.

ing capital. Underwriter—Mitchell Securities, Inc., Bal¬
timore, Md.

(Tuesday)

Libaire,

the

*

Telebet units and Teleac systems and additions to work¬

'

Burroughs (J. P.) & Son, Inc.__Debens. & Common
(Eisele

(1/27)

97,481 shares of

Proceeds—Together' with; other
funds, to purchase 262,500 shares of common stock cl
The Rowe Corp.
Underwriter — Glore, Forgan & Co.,

$3,900,000

Casualty Co
&

February 1

$600,000

Equip. Trust Ctfs.

invited)

proceeds—Fer

New York.

.Stock

■*.

Forgan & Co.)

Debentures
&

share,

common stock (par $5) to
subscription by stockholders of record c i
or about Jan. 27, 1955 on the basis of one new share for
each six shares held; rights to subscribe on or about

Debentures

stockholders—underwritten

to

per

be offered for

First

$25,000,000

Co.)

Automatic Canteen Co. of America

Bonds

Inc

Kidder

The

Corp.) 37,500 shares

January 27

(Offering to stockholders—underwritten by
M.

by

filed

Dec. 28

Common

of)

(Bids

Price—$1

Automatic Canteen Co. of America

$1,500,000

Co., Inc.) $3,000,000

Walker

to

Co.)

Northeastern Steel Corp

(Thursday)

Golcortda Metals, Inc.
(1/17-18)
(letter of notification) 292,000 shares of common

making' of

$150,000

RR._jL

Missouri Pacific

&

January 26
Montreal

$25,000,000

Underwriter—Arizona Life Insurance Co.

Arizona

Common

Fuller

(Eastman,

of

general corporate purposes.
Office — Kingman, Ariz.
Underwriter—Baruch Brothers & Co., Inc., New York.

$30,000,000

Common

Benkert &

Associates,

Bonds
EST)

a.m.

Corp., New York.

stock (par 10 cents).

Co.

11

Securities

(letter

Dec. 7

$1,100,000

stockholders—underwritten

to

Preferred

Co.;

•

United Stales Plywood Corp

American Steel & Pump Corp
K.

shares

Preferred & Common

(Estabrook

January

Bradley

..Common

(Tuesday)
Corp.)

Ltd.

"D")

Co., Phoenix, Ariz.
notification) 300,000 shares of common
stock, series A, to be offered for subscription by hold¬
ers of life insurance policies of Arizona Life InsuranceCo. Price—At par ($1 per share). Proceeds—For work¬
ing capital, etc. Office — 427 Security Bldg., Phoenix,

Dec.

Invest¬

and

Chesler;

H.

Rockland-Atlas National Bank
(Oliering

Major Corp
(Gearhart

Allan

Circuit, Inc
400,121

Mines

Arizona Development

Common
A.

Uranium

(Regulation

Gaetano

Common
$8,060,000

by

28

1,500,000 shares of common
stock (no par value). Price—20 cents per share. Proceeds
—For general corporate purposes.
Office — 411 Chiles
Bldg., Winnipeg, Manitoba, Canada.
Underwriter—De

Common

General Homes, Inc

Common

Blauner

Stanley

Arctic

$298,400'

Louis

Securities

Power

(S.

Ltd._

Public Service Electric &

(par 10 cents). Price—$1.50 per share. Proceeds—
selling stockholder.. Office—Appell Bldg., Alice, Tex.

Underwriter—R. V. Klein & Co., New York.

$2,472,000

Co., Inc

Consumers

.Common
(Offering to stockholders—no underwriting) 218.737 shares

D,

To

$8,000,000

Co.)

common

stock

Inc

Co.)

Boston

(Milton

Appell Oil & Gas Corp., Alice, Texas
1
(letter of notification) 8,000 shares of

Dec.

Co.).

(Monday)

Ltd.;

Theatre

(Aetna

i

Imperial Minerals,

$10,000,000

&

Corp.

&

Boston,

(Bids

January 12 (Wednesday)
Co

Norton

Preferred
EST)

a.m.

January 25

$36,000,000

EST)

p.m.

Collin,

(Thursday)

Streit)

$4,500,000

Common

3:45

Co.)

shares

America
D.

Alator

Bowl-Mor

Corp

(Bids

&

Ariz.

$50,000,000

Allyn

EST)

noon

and

stockholders—underwritten

Bonds

stockholders—underwritten
C.

Ctfs.

(Tuesday)

a.m.

A.

Norton

Nipissing Mines Co., Ltd.____

Debentures

common

A.

if Anc'ioiage Gas & Oil Development, Inc.
27
(letter of notification) 133,333 shares of com¬
stock (par $1). Price—$1.50 per share. Proceeds—

Dec.

Common
Corp.

11

of

United Artists

Co

Co.

Fire

with

Oct.

(Offering

York, Chicago & St. Louis RR

State

construction

Co

Boston

White & Co.; and McCoy & Willard)

10:30

Collin,

and

(Hayden, Stone <fc Co.)

Common

National Can

Beacon

59

(par

working capital. Underwriter—None.

Preferred

(Allen

(A.

For

—

Duquesne Light Co

EST) $40,000,000

January 11

Universal

tures

$1,350,000

EST)

noon

Corp.

(S.

Corp.

(Morgan

stock

issuable upon exercise of warrants which will
upon redemption of $635,000 10-year 6% deben¬
at par. Price—$1.50 per share. Proceeds—Together
other funds, to redeem 6% debentures and for

Anticline

January 24

..Common

Commonwealth Edison Co

„

notes

cents),
expire

and

250,000 shaves

.

income

if Ampex Corp., Redwood City, Calif.
29 filed 99,800 shares of common

Price—At

.Equip. Trust

(Bias

Boston

Bonds

(Gearhart & Otis, Inc.;

Duke Power

collateral

Dec.

CALENDAR

$1,400,000

(Quincy Cass Associates)

Gas

6%

of

mon

share).

shares

Corp
Co.)

&

Seven-Up Bottling Co. of Los Angeles

United

Un¬

Co.

stock.

common

$55,000

liabilities

American-Israel Paul Ehrlich Medical Institute,
Inc., New York
9

pay

$100,000 demand notes; to pay Federal income tax
and for working capital, etc.
Underwriter—
A. K. Benkert & Co., Inc., New York.

but-

uranium and oil activities.
Office—Judge
Bldg., Salt Lake City, Utah. Underwriter—Northern Se¬
curities, Inc., Seattle, Wash.

Dec.

Pump Corp., N.

$3,000,uOO of 4%

1, 1994.

To

—

&

and

Proceeds—For

January 20

Co
(Bids

New

ceeds

Statement effective Dec. 28.

Y. (1/13-14)
income bonds, series A,
Price—$618.75 per $1,000 bond. Pro¬

Steel

filed

24

Dec.

due

(letter of notification) 1,500,000 shares of com¬
stock (par five cents).
Price—20 cents per share.

400,000

Stanley

921,923

Electric

Alstyne,

Power

to

Nov.

9

shares

....Common

stockholders—underwritten

&

Uranium & Oil

Cily, is President.

American

derwriter—None.

(Monday)

to

Stearns

city.

same

Amcrete

Toledo

Common

(Oliering

(Offering

ISSUE

York

Co.. the

Toledo Edison Co

Aluminium, Ltd.

Stylon

REVISED

equipment of hospital and medical center at Ramat Gar.\,
Israel.
Underwriter—None.
Haim Margalith, of New

J. Bowman

Ctfs.

(Friday)

Union Trust Co. of Maryland

Duke

ITEMS

Med

(The

January 7

Consolidated

•

PREVIOUS

Proceeds—For exploration and development costs. Office
—218 Atlas Bldg., Salt Lake City, Utah. Underwriter—

Reading Co.____

Equip.

(Bids

A.

Registration

ADDITIONS

SINCE

Oct. 28 (letter of

Pennsylvania

•

41

(97)

shares

Pittsburgh

San Francisco
Private I Fires to all

offices

Chicago

Cleveland

42

42

The Commercial and Financial Chronicle

'

(98)

Continued

Chesapeake

jrom page 41

Oct.

Big Indian Uranium Corp., Provo, Utah
July 15 (letter of notification) 500,000 shares of commor
gtock (par 10 cents). Price—25 cents per share. Proceed*
—For mining operations. Address—Box 77, Provo, Utar»
Underwriter—Weber Investment Co., 242 N. Universit?

stock

fice

National

Bank

Bldg.,

Blue

Colonial

the

first

13

29

Blue

Air

stock

Elko, Nev.

Jay Uranium Corp.,

15

of

,

Industries,

299,000 shares of

com¬

Price—$1 per share.

Pro¬

machinery

and equipment and working
Name Change—Company was formerly known

Manufacturing
Brooklyn, N. Y.

Co., Philadelphia,

Corp.
Office—244 Herkimer
Underwriter—Allen E. Beers

Pa.

(letter of notification)

debentures

and

42,000 shares of common

chafed by underwriter.

Price—$1,400 per unit; and $2

Proceeds—To

share.

per fcommon
of

buy

stock

common

Office—
Underwriter

Budget and Mutual and for working capital.

815

Fidelity Union Life Bldg., Dallas, Tex.

—Securities Management Corp., same address.--

...

\ Demars Engineering & Manufacturing Corp.
Dec.. 9 (letter of notification) 40,005 shares of 6% non40,000

participating preferred stock (par SI) and
representing rights to purchase 4,000

warrants

addf£ional shares of prefened stock (each warrant atlowgk'or the purchase of one-tenth of a preferred share).

Pri^e—$1

per

onellvarrant.

unit consisting of one preferred share and
Proceds — For additional machinery and

$2,500,000 of 6% junior subordinated sink¬
ing fund debentures, series B, due Dec. 1, 1968, of which

to pay current liabilities and for working
Office — 360 Merrimac St., Lawrence, Mass.

capital.

Underwriter—Jackson & Co., Boston, Mass.
C|esert Uranium Co., Salt Lake City, Utah

OctJf-18 (letter of notification) 2,000,000 shares of
mon

com¬

stock Price—At par (15 cents per share)/ Proceeds

—F<\x

exploration and develooment expe'^oc
Ot'firp—
fAtlas Bldg., Salt Lake City, Utah.
Undcrwriter-

524

(1/17-18)

Acceptance Corp.

Dec. 20 filed

stock. Price—25 cents

Dallas, Tex.
$150,OJO of 4%

(letter of notification)

22

equipment,

Inc.

Paley

as

St., Chillicothe, Ohio.
'r'f~

.Thursday, January 6, 1955

10-year
stock (par 10
cents) to be oxtered in units of $1,0.0 of debentures and
200-shares of stock; remaining 12,000 shaies to he pur-*
Dec.

cum'ulative

Maine

East

(par five cents).

Colonial

Oct.

stock

The offer

to

Office—58

ceeds— For

Reed Co., Reno, Nev.

mon

the

of

above.

4,775 shares of common

(letter of notification)

Street,

Colo.

80%

Co.

Underwriter—None.

tinental Bank Bldg., Salt Lake

Grand Junction,

than

be offered for subscription by stock¬
Price—$50 per share.
Proceeds—For property

capital.

City, Utah, and 618 RoodT
Underwriter — James E.

less

not

(letter of notification)

additions.

(par one cent). Price—Five cents per share.
Proceeds—For mining activities.
Offices — 1003 Con¬

Ave.,

Foreign Securities Corp. and Oils

companies mentioned

(no par)

mon

(letter of notification) 6,000,000 shares of com¬

and

three

Circle

stock

mon

stock (par

common

Chillicothe Telephone
Dec.

Nov.

Inc.

Uranium,

Canyon

(par $1)

will expire on Jan. 27.

Cole

Denver,

Underwriter—I. J. Schenin Co., New York.

Nov. 29

of

Loan Co.,

Continental

stock

common

shares of common stock of
Holdings, Ltd. and Intercoast Petroleum
Corp. and capital stock of Colonial Trust Co. The offer
is subject to deposit of not less than 90% of the stock

holders.

com¬

one

First

705

—

Industries, Inc.,

stock

cent). Price—10 cents per share
Proceeds—For exploration and development costs.
Of¬
(par

Inc.
ol

Intercontinental

Bikini Uranium

Corp., Denver, Colo.
15 (letter of notification) 3,000,000 shares of

shares of Home &

mon

&

Big Red Uranium Co., Oklahoma City, Okla.
Deb. 6 (letter of notification) 2,940,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.
Proceeds—For mining expenses.
Office—917 First Na¬
tional Bank Bldg., Oklahoma City, Okla. Underwriter—
Honnold & Co., inc., same city.
Oct.

Industries,

996,304 shares

being oflered in exchange for preierred and com¬

$10)

Ave,, Provo, Utah.

mon

hied

15

and 33,818 shares of $4 cumulative preierred

..

VangBlerkom & Co., same city.
D^vil Canyon Uranium Corp., Moab, Utah

1,000,000 shares of com¬
pdr share. Proceeds—For ex¬
ploration and development costs. Office—402 Henderson

$1,529,550 principal amount will be offered in exchange

nioil,stocK

lor

Bank Bldg., Elko, Nev.
Underwriter—Security Uranium
Service, Inc., Moab and Provo, Utah.

Proceeds—For exploration and development costs.

$550 of

•

Bowl-Mor Co.,

Inc., Everett, Mass.

(1/25)

Nov. 26 filed 200,000 shares of preferred
and 200,000 shares

stock (par $1)
of common stock (par 10 cents) to be

offered in units of

one

—$5.50

Proceeds—To carry machine leases and
finance manufacturing operations.
Business—Manufac¬
distributes

and

tures

setting machine.
New

lease and

by

sale,

a bowling-pin
Securities Corp.,

Underwriter-^Aetna

York.

British

Jan. 3

America

Western

Uranium

Corp.

25

^ Burroug
Dec.

s

shares

(J. P.)
of

—For

& Son, Inc.

(2/1)

debentures

and

Eisele &

Office

Flint,

—

Price—At

market

16 filed

1, 2004.

per-

Underwriter

1.500 shares of

Co.;

—

in units of

unit

common

at

$25 per share).
Office—825 Imperial

Inc. of its undivided interest in 17

tuna clippers,
subject
liabilities; for construction of four tuna clip¬

for

working capital and general
Underwriter
Barrett Herric-k &
—

Co., Inc., New York.
(1954)

At

(1/17)
1,990,000 shares of

27 filed

market.

Proceeds—For

Canadian

Dec.

20

& Research

Co.,

Price—

Underwriter—

same

Adviser

1,751,428

filed

20

of

non-cumulative

par¬

ticipating preferred stock (par $10—Canadian) to be
offered in exchange for shares of
capital stock of Calvan
Consolidated Oil & Gas Co., Ltd. at the rate of six
pre¬
ferred shares for each 17 Calvan
shares. The offer is
contingent to acceptance by not less than 51%
outstanding Calvan stock. Underwriter—None.
Carnotite Development
Corp.
Oct. 26 (letter of

of

notification) 16,000,000 shares of

mon

stock.

Price—At par (one cent per
share).
exploration and development expenses.
317 Main St., Grand

—For

the

com¬

Proceeds
Office—

Junction, Colo.

Underwriter—West¬
ern Securities
Corp., Salt Lake City, Utah.
Century Controls Corp.
Dec. 17 (letter of
notification) 100,000 shares of
stock

(par $1).
working capital.
and

Price—$1.25
Business

components for

per

share.

common

Proceeds—For

Accessory control systems
aircraft interest, etc. Office—Alien
—

Boulevard, Farmingdale, L. I., N. Y. Underwriter—None.
•

Chesapeake & Colorado

Dec.

7

filed

750,000

shares of

Uranium
common

Corp.

(2/15)

stock

(par five
share.. Proceeds—For
exploration
and development
program. Office
Washington D C

cents).

Price

$1

per

—

Underwriter—Peter Morgan &
Co., New York.




common

stock to be sold

Price—$l,0u0

warrant.

one

per

bank

loan.

N.

repay

Underwriter—J.

Diesel

350,000

C.

Office

Electric

shares

of

—

Corp.

share.)

221 Vfe

C.

West
Wheat

(1/19-14)
stock

(par 10
Proceeds—To selling stock¬
Business—Designs, engineers and produces spe¬
common

Price—$4 per share.

servicing and testing equipment
generating equipment. Office—Stamford,

electrical

Underwriter

—

Van

Alstyne, Noel

&

Co.,

New

Of-

Under¬

Schroeder, 501 Kittredge Bldg., Den¬

(1/12/55)
common

Sfiered for subscription by
Jan.

record

12,

1955

rights to expire Jan. 28.

—T|

repay

stock (no par), to
stockholders

common

the basis of

on

eacl|-20 shares held (with

one

o

share for

new

an oversubscription privilege);
Price—$40 per share. Proceed

bank loans and

for

new

Un¬

construction.

derwriter—None.

'

'

bonds

due

1975.

writer—To be determined by competitive
bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.;

Morgan Stanley
Co.; The First Boston Corp. Offering—Originally set
for May 11, but has been postponed because of
market

&

conditions.

No

new

stock.

Price—At

par

(one

ceeds

cent

—Te

be

b:dders:

Dec.

21

Underwriter

capital,

etc.

9th

—

and

Water

Sts.,

Underwriter—None.

Consumers Power Co.

(1/25)

Co.^Stone & Webster Securities Corp.; The First Bosto
Corf.

Bids—Expected to be rechwed up to noon
Jan. 10 at 48 Wall St., New York 5, N. Y.

expansion and improvement program. Underwriter—To
be determined by competitive
bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co., Union Se¬
curities Corp. and A. C. Allyn & Co. Inc.
(jointly);
White, Weld & Co. and Shields & Co. (jointly); Morgan

Stanley & Co.; Harriman Ripley & Co. Inc. and The First
Corp. (jointly). Bids—To be opened at 11 a.m.

Boston

on

Jan.

25

at

office

of

Commonwealth

Services

Inc., 20 Pine St., New York, N. Y.
Contact

Dec.

7

mon

stock

Daquesne Light Co.

Uranium, Mines, Inc., N. Y.
of notification) 500,000 shares of
one

cent).

Price—10

Proceeds—For mining expenses.

St., New York.
York.

(1/17)

Dec^21 filed 450,000 shares of
Proceeds—To

repay

tiomj Underwriter
bidding. Probable

bank

common

stock (par $10)

loans and for

construe

new

To be determined by competitiv

—

bidders: Kidder, Peabody & Co. an
White, Weld & Co. (jointly); Blyth & Co.,'Inc. and Mer
rill Uynch,
Pierce, Fenner & Beane (jointly); Union Se
curities Corp.; Kuhn, Loeb & Co.'and Smith, Barney *
Co.'/(jointly); Stone & Webster Securities Corp.; Th
Firs£ Boston Corp. and Lehman Brothers (jointly); Car
M. Boeb, Rhoades & Co.

and Wertheim &

Bids-=r-Expected to be received

up to noon

Co. (jointly)
(EST) on Jan

17, 4L955.

Duquesne Light Co. (1/20)
Pe$f21 filed 160,000 shares of preferred stock (par $50)
repay
—

bank loans and for new construe
To be determined by competitiv

bidding. Probable bidders: The First Boston Corp.;'Leh
mab-v/Broihers; Blyth & Co., Inc.: Kuhn, T.oeb & Co. an

Smi|h, Barney & Co. (iointly): Kidder,

nn

Merrill Lynch, Pierce, Fenner & Beane and White, Wei
& Cb. (jointly). Bids — Expected to be received
up t
11 a.m. (EST) on Jan. 20, 1955.

,-East Tennessee Water Corp.

De^.x20 (letter of notification) $160,000 of first mortgag
6%Vbonds dated Dec. 1, 1954. Price — At par (in de¬

St., Johnson City, Tenn.

Underwrite

—Qt; T. McKee Investment Co., Box 904, Bristol, Va.
^ Eastern
Dec/28

Stainless

Steei

Corp.,

(letter of notification)

2,UUU

Baltimore,
snares

cents

per

market (estimated at $24.12^

it El Morocco Enterprises,

bonils

Under¬

Inc., Las Vegas, Nev.

due

July!, 1967, and 1,950,000 shares of common
stock" (par 10 cents), each purchaser of bonds to have
the fight to purchase common stock at
par at rate of
$100 of bonds

up

to $9,900 of deben¬

ture

ifeonds purchased, with amount of shares increasing
in proportion to amount of bonds
purchased. Price100% of principal amount for bonds. Proceeds—To pay
balance

capital

of

purchase

stock,

price

construction

of
of

Las

Vegas

ma'.n

Hotel,-

hotel

Inc.

budding*

pavilions, swimming pool, furnishings, etc. Underwriter
—Company may sell debenture bonds and common stock
to dealers through brokers.
'

Electronics
Dec.

14

Investment Corp., San Diego, Calif.

filed 2,000,000

Eula

Belle

Oct.

18

share.

mon

stock

Office—100 West 42nd

^

Dec^29 filed $6,000,000 of 8% sinking fund debenture

com¬

Underwriter—Justin Steppler, Inc., New

Md.

common

oi

Proceeds—To selling stockholder.
writer—Hornblower & Weeks, Boston, Mass.

Price—$5 per share.

(letter

(par

(EST)

'

-r'

10 shares for each

Dec. 28 filed $30,000,000 of first mortgage bonds to ma¬
ture Feb. 1, 1990.
Price—Expected to be not less favor¬
able to the company than a 3%% basis.
Proceeds—For

(EST)

by competitive bidding.
Probabl
Stuart & Co. Inc.; Morgan Stanley

sto^k (no par). Price—At

Supply Co.

Office

oJ

Underwrite

per-share).
Ice &

$300,090 of 6% 12-year
registered debentures. Price—At par (in denominations
of $100, $500 and $1,000).
Proceeds — For equipment,

working

$35 000,000

determined

Halsey,

fice?—306 E. Main
com¬

share). Pro¬
development expenses.

(letter of notification)

Lebanon, Pa.

redeem
program.

per

—
For exploration
and
Office—206 Mercantile Bldg.,
Denver, Colo.
—Petroleum Finance Corp:, Oklahoma

Consumers

To

—

nominations of $1,000 each). Proceeds—For purchase o
reafrestate, capital improvements and contingencies. Of¬

set.

Uranium

Corp., Denver, Colo.
(letter of notification) 1,000,000 shares of

11

mon

date

Proceeds

3%% bonds and for construction

lionf Underwriter
Inc.

(1/10)

Decj 3 filed $40,000,000 of first and refunding mortgage

Proceeds—To
Edison Co. of New York,

Steam Corp. first mortgage bonds and
$25,000,000 West¬
chester Lighting Co. general mortgage bonds. Under¬

.

shares

11.

City, Okla.

city.

Petrofina, Ltd.

filed

Jan.

on

April 7, 1954, filed $50 000,000 first and refunding mort¬
gage bonds, series K. due May 1, 1984. Proceeds—To be
applied towards cost of redeeming $27,982,000 New York

Oct.
stock.

Vance,, Sanders & Co., Boston, Mass. Investment
—Boston Management

To

Constellation

common

investment.

—

Consolidated

Ltd.

Toronto, Canada
Dec.

$1,000 note and

a

Consol.

1966

General Fund

(CST)

York.

and 160,000 shares of common stock (par five
cents) to be offered in units of a $500 debenture and 2C
shares of stock. Price—To be supplied
by amendment.
Proceeds—For purchase from National Marine
Terminal,

Canada

a.m.

cialized lines of aircraft

California Tuna Fleet, Inc., San
Diego, Calif.
Sept. 29 filed $4,000,000 of 6% sinking fund debentures

•

F.

com-

share.

per

|iColo.

duke Power Co.

on

20 shares of

•

holders.

—

corporate purposes.

West Adams Street, Chi¬

before 10:30

St., Charlotte,
Co., Richmond, Va.

cents).

and

the balance

or

&

Conn.

and

on

Trade

Dec.

equipment and working capital.
Office
3808 22nd St., East Del Paso
Heights, Calif.
Underwriter—United Capital Co., Reno, Nev.

pers;

by competitive bidding.
Halsey, Stuart & Co. Inc.; Glore, ForFirst Boston Corp.
Bids—To be re¬

(each warrant is exercisable at $10

Proceeds

ditions

to certain

ver,

cents

St., Petersen Bldg., Maob, Utah.

Duke Power Co.

determined

to purchase

rants

and

due

Main

3,000,000 shares of

Price—10

cent).

one

writer—Mel vin

(1/11)

Corp., Charlotte, N. C.
Oct. 25 (letter of notification) $100,000 of 20-year 6%
subordinate sinking fund notes and 100 ten-vear war¬

California Modular Homes, Inc.
Dec. 9 (letter of notification) 196,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For ad¬

plant

Co.

Consolidated Credit

per

Proceeds—To selling stockholder.
Ave., San Diego 12, Calif. Underwriter—C. L. Wells &
Co., Pasadena, Calif.

to

be

The

90, 111.,

cago

$4.12%

Distributing Co.

(estimated

&

Edison

$50,000,000 of sinking fund debentures due
Proceeds—For construct-on program. Un¬

ceived at oli'ice of company, 72

King, Libaire, Stout & Co., New York.

California Cold Storage &
Dec. 14 (letter of notification)
stock.

Mich.

fice£-21

be

Office — 824 Equitable Bldg.,
2, Colo. IJnderwriter—John L. Donahue, 430 16'th
St., Denver, Colo.

gan

of 6% convertible debentures and
common stock
(par $1). Price—100%
for

Co.

mining activities.

Oct.

advances, for payment of income tax obligations, longterm notes and equipment contracts, to reduce accounts
payable, increase inventories, purchase equipment and
construction.

of

Denver

Probable bidders:

share for stock. Proceeds—To repay bank loans and cash

for

basis

(letter of notification) 1,900,000 shares of common
(par one cent). Price—-15 cents per share. Proceeds

stock

derwriter—To

Co., New York/

interest

accrued

and

Dec. 1

Uranium

Plateau

Commonwealth

30 filed $500,000

80,000

the

(par

Decf/3 filed 218,737 shares of
Colorado

Dec.

cents).

—S. D. Fuller &

on

(letter of notification)

(1/24)

298,400 shares of common
Price—$1 per share. Proceeds—
For exploration and development expenses. Underwriter
(par

1958

due

Price—At par. Proceeds—To retire junior subordinated
sinking fund debentures which mature Dec. 1, 1958.
Underwriters—Straus, Blosser & McDowell and Fairman, Harris & Co., Inc., both of Chicago, 111.

(letter of notification)

stock

debentures

oi

debentures for each $500 of debentures held.

new

share of each class of stock. Price

unit.

per

$1,390,500

No\f 8

(par

Proceeds—For

(par $1).

Uranium, Inc.

(letter of notification)

Office—506

Utah.

shares of capital stock

Proceeds—For investment.

5,000,000 shares of

Price—Five cents
exploration and development
one

cent).

per

com¬

share.

expenses.

First

Security Bank Bldg., Salt Lake City*,
Underwriter—Utah Securities Co., same city.

,,

olume 181

Number 5392

The Commercial and Financial Chronicle

...

Exhibitors

Film Financial Group, Inc., New York
100,OUO shares of capital stock. Price—At
r
($100 per share). Proceeds—For general corporate
rposes. Lnderuriier—None. Samuel Pinanski, of Boslu

ec.

it Great Western Utanium Co., Reno, Nev.
Dec. 28 (letter of notification) $125,000 of 6% five-year
production notes and 250,000 shares of common stock

Mass., President of American Theatres Corp., will be

n,

of

resident

Fallon
ct.

Reno,

Corp., Denver, Colo.

40

of

Colo-Kan

Fuel

incident

expenses

Corp.

to

G.

Spencer,

11805

ock.

*

Bldg.,

Securities

Corp.,

Gulf

& Gas

Co., Anchorage, Alaska
' *
(letter of notification) 300,000 shares of capital

29

ec.

& Cranmer

—

Nortn Oil

(and

Price—At par ($1

id gas

share).

per

Fa:m

&

Ranch

At par.

—

Office

214

—

Royal Palm Way,

Credit

Corp., New

recteived

eds—For
in

&

working

York

cumulative sinking
($2 per share). Pro.
Underwriter—E. J. Foun-

capital.

Gulf

May

(par $2),

which

27

preferred
stock

mmon

of

are

stock

r*ce-—$50

(par

(par $1)

preferred

"

unit.

per

$40)

to

and

be

10

and

*

shares

in

of

units

of

materials

and for working
capital. Office—1435
ldg., Buffalo 3, N. Y. Underwriter—None.

ug.
on

16

raw

Rand

Corp., Grand Junction, Colo.

Hilton

—

At

market.

Proceeds

—

For

Co., Inc.
vertible

in-

Manufacturing & Supply Co.

5

eneral

corporate

the basis of

on

Louisville,

—

Uranium & Oil

$1).

Inc.,

Huntington

Station,

L.

I.

stock

common

(par $1).

Insurance Co.

shares

50,000

per

of

share.

class

A

,

common

Proceeds—For

^Office—Washington, D. C.

purposes.

General

stock

Hill

Globe

ion

18

same

it Great

one

cent).

27

mon

stock,

(letter

public

of
and

of

3,000,000 shares of

Price—1%

cents per

j-

com-

share,

share. Proceeds—
Underwriter—Milton D. Blauner

stock

(letter of notification) 2,900,000 shares of com¬
(par one cent).
Price—10 cents per share*

Proceeds

—

150 000
and

150 000

gas

300.000

shares

shares

Bldg., Carson City, Nev.

filed

per

Inc.

(1/24-28)

investment.

Kirchner &

tion,

'

(no

par).

,

Priced—For preferred, $20

Securities,

are

issued

Price—At

shares

in

to

be

o'fered

exchange

Underwriter—None.




com¬

for

(SI per share).
Oflice—Truckee

par

operations.

of

per

com¬

share,

Proceeds—For working
San Antonio, Tex. Un¬

Inc., San Antonio, Tex.

Canadian Fund Ltd., Winnipeg,

1$

Canada

stock

(par

stock (par $1).
Proceeds—For

principally in-stocks of Canadian industries.
Organized-Lin November -1954 by Investors Diversified
Services, Inc., as a special type of mutual investment
&

cents

per

v

share.

Proceeds—For

mining operations.
Office—402 Darling
Bldg., Salt Lake City, Utah.
Underwriter — Uranium
Mart, Inc., 146 S. Main St., Salt Lake City, Utah.
Life

Insurance

Investors,

Inc., N. Y.

1,000,000 shares of

common

stock (par $1).

Price—To be supplied by amendment. Proceeds—For in¬
vestment.
Business—A diversified management invest¬
ment company.

Underwriters—White, Weld & Co., New
York, and J. C. Bradford & Co., Nashville, Tenn. Offer¬
ing—Expected latter part of January.
Lincoln Uranium Corp.,

Reno, Nev.
(letter of notification) 5,500,000 shares of common
(par one cent). Price—Five cents per share. Pro¬
ceeds—For exploration and development expenses. Of¬
Nov. 5
stock

fice—206

N.
Virginia St., Reno,
McCoy & Willard, Boston, Mass.

Nev.

Underwriter—

it Lista,

Inc., Reno, Nev.
(letter of notification) 6,000.000 shares of capi¬
stock (par one cent).
Price—Five cents per share.
Proceeds—To expenses incident to uranium mining op¬

Dec.

28

tal

erations.

Office—139 N. Virginia St., Reno, Nev. Under¬

writer—None.

it Longstreet-Abbott & Co., Clayton, Mo.
22 (letter of notification)
not to exceed $300,000
of contracts of participation
in the commodity syndi¬
cate. Proceeds
For expenses incident to trading in
agricultural commodities. Office — 7 No. Brentwood

Dec.

Blvd., Clayton 5, Mo.
it Longstreet-Abbott & Co., Clayton, Mo.
Dec. 28
(letter of notification) contracts of participa¬
tion in the Commodity Trading Fund.
Price—Aggre¬
gate amount not to exceed $300,000.
Proceeds — For
trading in commodity futures and spot commodities.
Office—7

No.

Brentwood

Blvd., Clayton 5, Mo.

Under¬

writer—None.

Lucky-Custer Mining Corp.
7 (letter of notification) 50,967 shares of

Dec.

Price—At

Yates

incident

to

Boise,

Bldg.,

($1

par

share).

per

mining
Ida.

common

Proceeds—For

operations.

Office—329

Underwriter—Ernest

Leroy

Bevis, 1414 Arthur St., Caldwell, Ida.
Mac Fos Uranium, Inc., Salt Lake City, Utah
Sept. 16 (letter of notification) 4,000,000 shares of com¬
mon stock (par one cent).
Price—Three cents per share.

exploration and development costs. Office
Bldg., Salt Lake City, Utah.
Underwriter—

Utah Securities

Co.,

city.

same

Magic Metals Uranium Corp.
Sept. 14 (letter of notification) 2,995,000 shares of
stock

(par

one

cent).

Price

—

10 cents

per

com¬

share.

exploration and development expenses.
South, Salt Lake City, Utah. Under¬
Securities, Inc., the same city.

Office—65 East 4th

writer—Mid-Coninent

Magic Uranium Co., Inc., Salt Lake City, Utah *
15 (letter of notification) 3,000,000 shares of com¬
stock (par one cent).
Price—10 cents per share.
Proceeds—For development and exploration costs.
Of¬
fice—529 Newhouse Bldg., Salt Lake City, Utah.
Un¬
derwriter—I. J. Schenin Co., New York.
•

Marine

stock

Midland Corp.,

filed

9

Dec.

Buffalo, N. Y.
cumulative preferred''

403,082 shares of 4%

being offered for subscription by common

holders of

record Jan.

share

ferred

for

each

5.

1955,

18

shares

on

the basis of

of

common

stock- *

one

stock

pre¬

held.

Rights will expire on Jan. 24. Price—At par ($50 per
Proceeds—For investment in additional capital
stock

of

subsidiary bank, to repay bank loans and for
Underwriters—The First Bos¬

ton

&

Corp.; Union Securities Corp.; Schoellkopf, Hutton
Pomeroy, Inc.; and Granbery, Marache & Co.

Marion

River Uranium

Co.

June 14 (letter of notification)

300,000 shares of common

(par 10 cents). Price—SI per share. Proceeds—
For development expenses. Underwriter—Crerie & Co.,

.

Houston, Tex.

-

30

(letter of notification) 6,500 shares of common
(par $5). Price—$9.50 per share.
Proceeds—For
of

Office—4600

Clement

household

St.,

chemical

Oakland

specialty
1,

Calif.

items.

Under¬

McCluskey Wire Co., Inc., New Haven, Conn.
June 21 (letter of notification) $95,000 of 5% debentures,
series A, due
series B,

writer—None.

and

Justheim Petroleum Co., Salt Lake City,
9 (letter of notification) 2,650,000 shares

Dec.
mon

Price—Three

stock

./Underwriter—None.
s-A%
'
it Jones-Hamilton Co., Oakland, Calif.

company.

Dec.

cent)/

one

other corporate purposes.

investment

-

city.

same

share).

Group

Dec. 13 filed 3,000,000
shades of common
Price—To' be supplied by amendment.

~

Jaquith, Inc.,

mon

proceeds—For land, construc¬
etc® Underwriter—None.

common, $2 per $hare.
capital.—3603 Broadway,

Investors

Office —250
Underwriter — Carroll,

Oct.

of America
(letter of notification) 3,799 shares of cumula-

derwriter—Interior

mining activities.

Liberty Uranium Corp., Salt Lake City, Utah
July 1 (letter of notification) 3,000,000 shares of common

Proceeds—For

share,

worjjKmg capital,

Aug. 30

and

Underwriter—

Spa, Inc., Reno, Nev.
12,000 shares of common stock

per

oil

For

Equitable Bldg., Denver, Colo.

mon

Boston,

manufacture

Co.

notification)

which

oil

23

stock

certain oil and gas leases.

Proceeds—For

common

stock tno par).

city.

Northern Oil

Dec.

of

and for

mining purposes.
Office—336 IndependBldg., Colorado Springs, Colo.
Underwriter—ALJ.

ohnson,

of

cents

shares

mon

roceeds—For
nce

Price—36

830,000

Under-

Mining Co., Colorado Springs, Colo,

(par

19

mon

—239 Ness

general

of

(letter of notification)

stock

par

(1/12)

preferred stock (no $ar) and 3,799 shares of

Corp., Salt Lake City, Utah f
notification) 1.200,000 shares of comn
stock.
Price—At par (25 cents per share).
Proeeds—For development and
exploration expenses. Ofice—404 Boston Building, Salt Lake
City, Utah. Under¬
writer—P. G. Christopulos &
Co., same city.

ov.

"D")

Proceeds—For

Price—$500

Bldg.,- Minneapolis,

Proceeds—For

(Canada)

tive

Uranium

27 Jletter

Fund

shfe).

Nov.

;

riter—None.

ct.

Price—At

Investment Corp.

Services Life

Price—$10

orporate

stock.

International

300,000 shares of

filed

preferred

Hay$en, Stone & Co., New York.

per share. Proceeds—For plant expansion, new
quipment, inventory and working capital.
Underwriter
D. Fuller &
Co., New York.
j

14

•

mining activities.
Co.', Jrvp., New York.
Income

Federal

Pro¬

working capital.

Underwriter—

,2i|iled 800,000 shares of common stock (par $1).
Price—Tfi 4?e supplied by amendment (expected at $10

'rice—$5

$1).

Proceeds—To pre¬

Dec.

(1/25)

ept.

held.

Proceeds/^For general

j23 $ Regulation

•

Northwestern

and

Liberty Oil & Uranium Co., Denver, Colo.
Nov.

expenses

&

loans

it Lerner Markets, Inc. (Pa.)
29 (letter of notification) 50,000 shares of class A
common stock
(par $1). Price—$6 per share. Proceeds—
For expansion, etc.
Office — Hatboro, Pa. Business—
Operates food markets. Underwriter—Philadelphia Se¬
curities Co., Philadelphia, Pa.

per

share).

bank

Dec.

non-participating

per

Homes,

reduce

Underwriter—Daniels & Smith.

stock.

For

properties.
Office — 414 Judge Bldg., Salt Lake
ity, Utah. Underwriter—Utah Uranium Brokers, same

par

non-

share

]§

•/

stock

Co., Salt Lake City, Utah

ity.

General

common

princip^amount.

Nov*

ium

filed

foi$ each

•

9

15

amount of con¬

$4$ principal amount of

York#-^ Minerals, ;Ltd.
;
f
Imperial

(letter of notification) 11,000,000 shares of capital
tock (par one cent). Price—Two cents
per share.
Proeeds—For exploration and development of oil and ura-

ec.

$$|) principal

Statler

sell#sp$eial and general purpose electronic test equip¬
ment, etcit/jQnderwriter—Townsend, Graff & Co., New

—

Y.

Hotels

of

©orporate pur¬
poses, including capitaLim'#ovements and working cap¬
ital. JSq#i#ess —
Designsgdevelops, manufactures and

and development costs.
Office
100 Adelaide St
"est, Toronto, Canada. Underwriter—McCoy & Willard
oston, Mass.

N.

Minn.

ible

Ky

(Canada)

ion

General

for

Hycorvjyifg. Co., Pasajfera, Calif. (1/17-21)
Dec. 17 filed 120,000
sharesjf 5 V2 % cumulative convert¬

(Regulation "D") 300,000 shares of common stock
par
($1 per share).
Proceeds—For explora-

'

stock

•

'rice—At

Gem

»

Price—At par.

ceeds—To

($10

Office

purposes.

Gatineau Uranium Mines Ltd.

ec.

and

debentures

None/-

nderwriter—None.

ug. 10

corimion

bank'-loan"-and for wolking capital.

pay

filed 199,907 shares of common stock to be sold
o customers.
Price—At par ($100 per share). Proceeds
—For capital expenditures and
working capital and other
ov.

of

debentures

convertible^

due five years from date of issue.

—

holders

Price—At 100% of

Directors

Inc.,

Hotels

former

and

estment.

Funeral

expenses.

Wyo. Under¬
Henning Hotel

Corp., C&fcago, III.
Dec. 23 filed $7,978,900 ofM5-year convertible deben¬
tures, due Jan. 1, 1970, and 121,915,600 of 15-year deben¬
tures due Jan. 1, 1970, to
J|$ .dffered to certain holders

Funds,, Inc. New York
(amendment) covering additional shares in
Price

Co.,

—

Custodian

funds.

exploration and development

Bldg., Casper, Wyo.

—

30 filed

For

—

Office—208 Turner-Cottman Bldg., Casper,
writer
Casper Brokerage

—

five

Corp.; Kuhn,
and A. C. Allyn & Co., Inc. (jointly); Lee
Higginson Corp. and Carl - M. Loeb, Rhoades & Co.
(jointly); Stone & 'Wqhster Securities Corp. Bids—Had
tentatively-been expected to be received up to 11 a.m.

Proceeds

xploratory and development expenses.
Office
618
ood
Avenue, Grand Junction, Colo.
Underwriter
oe Rosenthal,
1669 Broadway. Denver, Colo.
ec.

Bros. & Hutzler and Union Securities

:

of notification) 300.000 shares of cornPrice—At par ($1 per share). Proceeds—For

Franklin

Underwriter—To be determined by com¬
Probable bidders: Halsey, Stuart &

bidding.

Dec.

(letter

stock.

$24,000,000 of first mortgage bonds due
Proceeds—To redeem $10,000,000 of 3%%

Highland Uranium, Inc., Casper, Wyo.
13 (letter of notification) 6,000,000 shares of com¬
mon stock (par two cents).
Price—Five cents per share.

•

stock.

common

Proceeds—For equipment and

Four Stai.es Uranium

of

one

stock

Co., Minneapolis, Minn.
(letter of notification) 13,000 snares of preferred
(par $10) and $170,000 of 8% subordinate notes

Dec. 17 filed

Utilities Co.

(EDT) on June 15 at The Hanover Bank, 70 Broadway,
Ntew«.York, N. Y4 but offering has been postponed.

cuibu-

40,000" shares

offered

a.m.

Loeb & Co.

Co., New York.

Inc., Buffalo, N. Y.
(letter of notification) 4,000 shares of 6%

filed

14

mon

Foramino,
tive

11:30

States

petitive

bordinated income debentures and to
purchase capital,
of Del Norte Frozen
Foods, Inc. Underwriter—'

ec.

Securities

Co. Inc.; Lehman Brothers; Merrill Lynch, Pierce, Fenaer
& Beane and White, Weld & Co. (jointly); Salo¬

ock

&

to

up

rate purposes.

50,000 shares are to be offered by company
130,000 shares by selling stockholders. Price—To be
PPlied by amendment (auoui $10-$11 per share). Proeds—-Together with other funds, to be used to. redeem

nd

hearson, Hammill

Webster

June 1, 1984.
first mortgage bonds due 1981 and $10,000,000 of 3%%
first mortgage bonds due 1983, and for general corpo¬

Co., Inc., New York.

Food Mart, Inc., El
Paso, Tex. (1/19)
ec. 21
filed 180,000 shares of common stock

&

(EDT) on June 15 at The
Hanover Bank, 70
Broadway, New York, N. Y., but of¬
fering has been postponed.

29 filed 250,000 shares of
7%
nd preferred stock. Price—At
par

an.

Stone

Corp.;
Lehman
Brothers and Equitable Securities
Corp. (jointly); Kuhn,
Loeb & Co.; Glore,
Forgan & Co. and W. C. Langley &
Co. (jointly). Bids—Had tentatively been expected to be

Inc.,

—

Financial

ders:

Palm

each, Fla. Underwriter
Anderson Cook Co.,
hie city.
O fenng—Temporarily withdrawn.

Utilities Co.

—

Proceeds—For oil

Management Corp.
ec. 13
(letter of notification) $150,000 of series A cattle
ebentures; $56,250 of series B debentures; $82,500 of
ries C; and 385 shares of common stock
(par $10).
rice

States

May 14 filed 160,000 shares of preferred stock (par $100).
Proceeds
To redeem 50,000 shares of $4.50 dividend
preferred stock, 60,000 shares of $4.40 dividend preferred
stock, 1949 series, and 50,000 shares of $4.44 dividend
preferred stock at the prevailing redemption prices of
$105, $105, and $105.75, respectively.
Underwriter—To
be determined by
competitive bidding. Probable bid¬

operations. "Office—236 Tenth Ave., Anchorage,
Underwriter—None.

laska.

30

Under¬

Lee Finance

Office—305

(1/14)
(letter of notification) 2,000,000 shares of com¬
mon
stock (par one cent).
Price—15 cents per share.
Proceeds—For mining activities. Office—618 Rood Ave.,
Grand Junction, Colo. Underwriter—Tellier & Co., Jer-T
sey City, N. J.
Nov.

a

activities

gas

ssibly uranium). Office—527 Ernest
Colo.
Underwriter
First
hiladelphia, Pa.
enver,

Far

for

period
Price—5V2 cents per share,

days; then to public.

roceeds—For

to

Harold

—

N. E. Brazee St., Portland, Ore.
(letter of notification) 5,400,000 shares of comstock (par five cents) to be offered for
Green Mountain Uranium Corp.
subscription;V

stockholders

s

Underwriter

Nev.

20

on

f

Nov. 3

and

Exhibitors.

Gas

Phillips Petroleum Bldg., Salt Lake City, Utah.
writer—Hunter Securities Corp., New York.

(par 25 cents) to be offered in units of one $500 note
1,000 shares of stock. Price—$500 per unit. Pro¬
ceeds— For mining operations.'- Office — 761 West St.,

iiied

43

(99)

stock

Proceeds

Utah

of com¬
(par five cents). Price—10 cents per share.
For oil and mining expenses.
Office—318

—

July 1, 1962, and $95,000 of 6% debentures,
Proceeds—To acquire assets
& Sons, Inc. Office

due July 1, 1970.

business of H. & T. McCluskey

—527 Grand

Avenue, New Haven, Conn.

Underwriter— '

Barnes, Bodell & Goodwin, Inc., New Haven, Conn.

Continued

on

page

44

44

The Commercial and Financial Chronicle

(100)

Continued from page

&

of 6-year 6%
purchase war¬
rants).
Price—At par (in denominations of $100 each),
one warrant to be issued with each debenture purchased.
Proceeds—For working capital. Business—To carry out
general theatrical purposes and objects. Office—90 State
St., Albany, N. Y. Underwriter—None.
of

shares

3,018,567

filed

(par

stock

common

exchange for outstanding stock
Shipbuilding Corp., Devoe & Raynolds
Co., Inc., Newport Steel Corp., Marion Power Shovel
Co., Osgood Co. and Tennessee Products & Chemical
Corp. on the following basis: 675,549 shares to holders
of the 540,439 outstanding shares of common stock (par
$5) of Tennessee Products & Chemical Corp.,
at the
rate of
1 V\ shares for each share of common stock of
Tennessee; 755,105 shares to holders of the 453,003j out¬
standing shares of class A stock (par $2) of Devpe &
Reynolds Co., Inc. at the rate of 1% shares for each

\$12.50) to be offered in
of

;

York

New

242,700 shares to holders

share of class A stock of Devoe;

of

the

outstanding shares

of class B common
I 'm shares for
common stock of Devoe; 1,290,252 shares
the 1,290,252 outstanding fh;; res of common

182,025

stock

(par $1) of New York Shipbuilding Corp., at the
share for each share of common stock of N. Y.

stock

rate of one

Shipbuilding; 27,907; shares to holders of the 58,605 out¬
standing shares-of common stock (par $ 1) of Newport Steel
Corp., not owned by Merrftt, at the rate of one share
for each 2.1 shares of common stock of Newport; 26,114

outstanding shares of
common
stock (par $19) of Marion Power Shovel Co.,
not owned by Merritt, at the rate of 1 V> shares for
each share of common stock of Marion; and 940 shares

shares

t

to

holders

to

the

of

holders

the

of

17,40.)

outstanding

1,410

class

of

shares

B

Britain

Gas

Light

shares

seven

share.

per

35 Court

New

Price—

Office—
Underwriter—None.

St., New Britain, Conn.

filed

13

(1/18)

$25,000,000 of first mortgage bonds, series
1, 1985. Proceeds—To purchase properties

F, due Jan.
from

held; rights to expire Jan. 25.

Proceeds—To repay bank loans.

England Power Co.

Connecticut River Power Co.

Underwriter—To be

determined

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Equitable Securities Corp.;
Kuhn, Loeb & Co.; The First Boston Corp.; Merrill
Lynch, Pierce, Fenner & Beane; Kidder, Peabody & Co.
and White Weld & Co. (jointly). Bids—Expected to be
received up to 11 a.m. (EST) on Jan. 18, 1955.
New Silver Belle Mining Co., Inc., Almira, Wash.
Sept. 8 (letter of notification) 500,000 shares of common
stock (par two cents). Price—10 cents per share. Pro¬
ceeds—For

exploration and development costs. Under¬
writers—Percy Dale Lanphere and R. E. Nelson & Co.,
both of Spokane, Wash.
New

York

Shipbuilding Corp.

(par $1) to
of common
stock (par five cents) of Highway Trailer Co. at rate of
one share of Shipbuilding stock for each five shares of

(1/24)
Jan. 3 filed

1,200,000 shares of common stock (par $1—
Canadian) to be offered as "speculative" securities for
subscription by common stockholders of record Jan. 24,
1955, on a share-for-share basis. Price—$2 (Canadian)
and $2.06 (U. S.) per share. Proceeds—For payment of

(without

equipment.
Underwriters — Allan H. Investments,
Ltd.; Alator Corp., Ltd.; Louis A. Chester; and Bradley
Streit; all of Toronto, Canada.

par value) of the Osgood Co.,
Marion, at the rate of one share
for each 1 Vz shares of class B common stock of Osgood.

Mi-Ame Canned Beverages

Co., HiaJeah, Fla.
notification) 200,000 shares of common
Price—At par ($1 ppr share). Proceeds—To pur-

Oct. 28 (letter of
stock.

vchase raw materials and new machinery, and for work¬
ing capital. Underwriter — Frank D. Newman & Co.,
Miami, Fla.
Uranium

Mid-Continent

Nov. 26 filed

1,562,500 shares of common stock (par one
Price—40 cents per share.
Proceeds—For ex¬

cent).

ploratory operations, machinery and equipment, and for
working capital and unforeseen contingencies.
Under¬
writer—General Investing Corp., New York.
Military
Dec.

1

Corp.

Financial

(letter of notification)

150,000 shares of common
Price—$2 per share. Proceeds—
general corporate purposes. Office—2310 Main St.,

stock
For

Investors

(par

25 cents).

Houston, Texas.

Underwriter—Cobb &

Co.,

Inc.,

saipe,,,,

city.
ir Minneapolis
Dec.

filed

30

be

at

rate

of

Gas Co.

184,523 shares of

offered

to

for

Price—To

be

subscription
share

new

one

supplied

by

stock

common

by

for

common

each

(par $1)

stockholders

shares held.
Proceeds—For

eight

amendment.

additions to property. Underwriter— Kalman & Co., Inc.,
St.
•

Minn.

Paul,

Missouri

be

offered

rate of

for

one

Co.,

subscription

Cape
by

Girardeau, Mo.
stock (par $1) to

privilege).

Proceeds

10

shares held

Price—To
For

—

stockholders at

common

share for each

new

oversubscription
amendment.

securities

are

of

be

(with

supplied

construction

an

by

program.

to

be

$50

a

stock

common

and

offered

in

warrant

units,

92,000

registered

debenture,

unit
shares of

each

10

to

purchase three shares
common
stock at $8.33Va per share payable in cash
or debentures at
par. Price—Expected to be a maximum
of $100 per unit. Proceeds—To expand mill, to meet
a

of

short-term

loans

borrowed

in

Cristo

Uranium

Corp., Moab, Utah
Oct. 5 (letter of notification) 3,000,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.
Reed

Co.,

expenses.

North

139

Virginia

St., Reno, Nev.
* Montreal
Dec.

30

(C'ty of), Canada

(126)
$35,000,000 of 1955 U. S. Currency issue
serially Jan. 1, 1956-1974. Price—To be

filed

debentures

due

supplied by amendment. Proceeds—To pay for new con¬
struction, improvements, etc. Underwriter—To be named

by amendment. Halsey, Stuart & Co. Inc. and Savard &
Hurt won last issue at competitive sale. Other groups
bid

who

Kuhn, Loeb & Co., Glore, Forgan & Co.
and Salomon Bros. & Hutzler (jointly); White, Weld &
Co., Union Securities Corp. and Blyth & Co., Inc.; Leh¬
man Brothers.
Bids—Expected Jan. 26. Conferences with
investment bankers expected to be held on or about
Jan.

were:

stock

mon

(par

Proceeds—For
Las

one

cent).

mining

Price—10

cents

Benjamin Robbins.

Onego

com¬

O fice—Cornet

expenses.

share.

Bldg.,

Vegas, Nev. Underwriter—None.

Nash Finch
Dec.

6

(letter

Uniontown, Pa.
150,000 shares of capital

filed

8

basis of

1,000

shares

of

common

(par

stock

$1).

writer

share.

per

Langley-Howard, Inc., Pittsburgh,

—

"best-efforts"

Pa., on

a

basis.

Paraderm

Nov.

12

(letter of notification)

stock

mon

Laboratories, Inc.

(par

Portland,

30

cents).

250,000 shares of com¬
Price—$1 per share.
Pro¬

capital. Office—415 Congress St.,
Underwriter — Sheehan & Co., Boston,

working

Me.

®

Poly-Seal Corp.
8 (letter of notification) 40,000 shares of capital
(par 10 cents) being offered for subscription by
stockholders on a-one-for-five basis for a period of

Dec.

Corp., Moab, Utah
Oct. 7 (letter of notification) 6,000,000 shares of capital
stock. Price—At par (five cents per share).
Proceeds—
For mining expenses. Office—325 Main St., Moab, Utah.
Underwriter—Van Blerkom &

Pay Day Uranium Co., Las Vegas, Nev.
(letter of notification) 2,500,000 shares of capital

Price—10 cents

(par two cents).

per

230

Fremont

St., Las Vegas, Nev.

Underwriter—Allied

Underwriter Co., the same city.

2

filed

shares

65,455 shares of

of

Business

filed

$4,500,000 of 5%

common

the

basis

of

common

subordinate

$100

of

1, 1976 to be offered for sub¬
stockholders of record Jan. 11 on
debentures

shares held; rights to expire on
—At

par.

Proceeds—To




stock

(par

$100); 5,378 shares of 3.35% cumulative preferred stock
(par $100); and 4,032 shares of 4x/2% cumulative pre¬
ferred stock (par $100)
being offered in exchange for
securities of The Scranton Electric Co. on the following
each

(a)
two

one

share of Pennsylvania

shares

of

Scranton

common

common

stock;

of

stock for
(b) one

4.40% series preferred stock for

Scranton

4.40%

cumulative

preferred

(c) one share of Pennsylvania 3.35%
preferred stock for each share of Scranton 3.35%

income debentures due Jan.

scription by

(no par);

stock

preferred

series
cumu¬

lative

convertible

for

or

acquire

each

23

common

about Jan. 25.

stock

cf

Pacific

Price

Can

Manufactures

Office

405

—

and

sells

plastic

1
J

Lexington Avenue, New York*

Underwriter—None.

Y.

Primadonrra

8

Hotel, Inc., Reno, Nev.

2,330 shares of class A common stock and

filed

in

9,260 shares of class B common stock to be offered
units of one class A and four class B shares only

to

approved by the Nevada State Tax Commission.
$500 per unit.
Proceeds — To construct eight-

persons
Price

.

screw-cap-

—

story hotel

237-241

at

Public

Service

St., Reno, Nevada.

Electric & Gas

Dec. 22.

J

,

(1/12)

Co.

250,000 shares of cumulative preferred

Dec. 22 filed

stock

Price—To be supplied by amendment. Pro¬

(par $100).

reduce

ceeds—To

No. Virginia

Statement effective

Underwriter—None.

'

bank

loans and

for construction

pro¬

Underwriters—Morgan Stanley & Co.; Drexel &

gram.

Co.; and Glore, Forgan & Co.

Telephone Co., Rainier, Wash.

Rainier

j

*

^

5l/z% 20-year
sinking fund bonds due Dec. 1, 1979. Price—At par (in
denominations of $1,000 each).
Proceeds—To purchase

Dec.

(letter of notification) $85,000 of

14

assets

Methow

of

Valley Telephone

Co.,

refund mort¬

debt, and for working capital. Underwriter—Wm.
Harper & Son & Co., Seattle, Wash.

gage

P.

Tire

Rolon

Corp., Denver, Colo.

Chain

60,000 shares of common
Proceeds—For increased in¬
ventory, working capital, sales and production expenses,
etc. Office—150 Tejon St., Denver, Colo. Underwriter—
Peters, Writer & Christensen, Inc., same city.
Oct. 27

(letter of notification)

Price—$1 per share.

Ross

(J.

Dec. 27

O.)

(letter of notification)

Rushmore Uranium & Oil Corp.

(letter of notification) 2,000,000 shares of common

Dec. 7

(par one cent).

preferred stock, or, at the election of the Scran¬
ton
shareowners, for each share of Scranton's 3.35%
cumulative preferred stock, two shares of Pennsylvania's
common

stock,

or

for each lot of four shares of Scranton

3.35% cumulative preferred stock, three shares of Penn¬
sylvania's 414% preferred stock.
Pennsylvania owns

approximately 91%

of

the

Price—15 cents per share.

Pro¬

exploration and development expenses of
uranium and oil properties. Office—618 6th St., Box 8,
For

—

City, S. D.
York.

Rapid

Underwriter—Philip Gordon & Co.,

Inc., New

if Salt Lake Hardware Co., Salt Lake City, Utah
30 (letter of notification) 4,062 shares of common
stock (par $10), to be first offered to employees who
are
not
stockholders; then to stockholders; and any
unsubscribed shares after Feb. 4, 1955 to public.
Pro¬
ceeds—To restore to working capital amount expended

Dec.

for

acquisition of these securities.

West

St., Salt Lake City,
Hogle & Co., same city.

Utah.

Office—105 N. Third
Underwriter — J. A.

Corp., Santa Fe, N. M.

300,000 shares of common stock (par 10
cents).
Price—$2 per share.
Proceeds—For develop¬
ment and exploration expenses, etc.
Underwriters—R.
V. Klein
Co.
and McGrath Securities Corp., both of
14 filed

New

York.

Seven

Inc.

be

(1/10)
filed

14

Dec.

,

Up Bottling Co. of Los Angeles,

record

Jan.

shares

four

19,767 shares of capital stock (no par) to
subscription by common stockholders of

for

offered

1955 at rate of one new share for each
Price—$32.50 per share.
Proceeds—

10,

held.

expansion

program.

Underwriter

—

Quincy Cass

Associates, Los Angeles, Calif.

stock; and

22

Dec. 29.

—

closures.
N.

For

cumulative

4.40%

writer—J. M. Dain &

Dec.

share. Pro¬
Office—-

ceeds—For exploration and development costs.

share

(1/11)

Price—$1.75 per share. Proceeds
machinery and equipment and working capital.

—For

Co., Salt Lake City, Utah.

Oct. 15
stock

each

Can Co.

.|

stock

Sept.

Uranium

Stock. Price—At maximum of $18.50 per share. Proceeds
—To Willis King Nash, the selling stockholder. Under¬

Co., Minneapolis, Minn.

|

States Trust Co., New York.

Saniicol Uranium

Paramount

of Pennsylvania

Naticral

14.

Price—$3.75 per share. Proceeds—For working capital
of subsidiary.
Office — 580 Fifth Ave., New York 36*
N. Y. Underwriter—None. Subscription Agent-~United

Mass.

share

•

new

one

oversubscription privilege); rights to expire on Jan.

ceeds

Proceeds—To repay bank loans
and indebtedness to company officials; to pay balance of
purchase price of New Mexico property; to purchase
equipment and wells; and for working capital. Under¬

basis:

Co., Minneapolis, Mi/rn.
of notification)

by stockholders of record Dec. 16 on the
share for each 4Vfe shares held (with an

subscription

stock

Corp.,

Price—$3.50

858

per

pit f

New York

(letter of notification) an undertermined number
of shares of capital stock (par 10 cents) being offered for

Dec. 3

—

Underwriter—None. Sales to be made through Raymond

Dec.

•k ML Ziori Uranium Corp., Les Vegas, N~v.
29 (letter of notification) 500,000 shares of

Dec.

Co., New York.

Screw Co.,

Phillips

Engineering Corp.
12,400 shares of common
stock
(par $1).
Price—At market (around $15 per
share). Proceeds—To selling stockholders. Underwriter
—Granbery, Marache & Co., New York.

Pennsylvania Power & Light Co.

10.

1970,

due

preferred

5%

of

Northern California Plywood, Inc.
Sept.- 13 filed 300 shares of common stock (par $5,000)
and 5,000 shares of 5%
cumulative participating pre¬
ferred stock (par $100).
Price—At par. Proceeds—To
purchase properties of Paragon Plywood Corp. and pur¬
chase of raw materials.
Office
Crescent City, Calif.

ceeds—For

Proceeds—Fo^. ^exploration and development

Underwriter—James"E.

shares

stock.

Dealer-Manager—Edward D. Jones & Co., St. Louis, Mo.
Monte

Inc., New York
of 4% debentures

acquiring that plant at
Bridgeport, Conn., and for general corporate purposes.
Office—Bridgeport, Conn.
Underwriter—Estabrook &
Co., Boston, Mass., and New York, N. Y.

Dec.

Utilities

Dec. 20 filed 27,420 shares of common

Steel

Corp. (1/26)
Dec. 31 filed $4,600,000 of 6% subordinated debentures,
series 1 A, due Feb. 1, 1975; 920,000 shares of common
stock (par $1); and common stock purchase warrants
for 276,000 shares of additional common stock. These

consisting

(1/17-18)

Corp.

and

if Northeastern

$7,500,000

A. M. Burden &

options, development of properties, and for machinery

stock

1

stock (par $25) and
1,000,000 shares of common stock (par 10 cents) to be
offered in units of $75 principal amount of debentures*
one share of preferred
stock and 10 shares of common
stock.
Price—To be supplied by amendment. Proceeds
—For acquisition Of properties.
Underwriter—William

Dec.

Canada

Ltd., Toronto,

not owned by Merritt or

common

Reserves,

filed

27

100,000

•

stock of the Trailer company.

ic Nipisstng Mines Co.

Dec.

effective

Statement

Scranton.

of

..

30 days from

Dec. 6 filed 74,925 shares of common stock
be offered in exchange for 374,624 shares

common

stock

common

Petroleum

Co.

15

each

$26

the

Thursday, January 6, 1955

Dec. 22.

Inc., both of New York.

(letter of notification) 8,572 shares of common
stock (par $25) being offered for subscription by stock¬
holders of record Jan. 3 at rate of one new share for

of Devoe, at the rate of

(par SI)
each of class B
to holders of

New

Dec.

Dec.

Merritt-Cnapman & Scott Corp.
21

Co.

•

^ Melody Fair Corp., Albany, N. Y.
27
(letter of notification) $80,000
debentures due Dec. 15, 1960 (with stock

Dec.

Dec.

Underwriters—Bear, Stearns & Co. and A. C. Allyn

Co.

43

...

preferred stock

and 91%

of

Uranium, Inc., Reno, Nev.

Silver Pick
Nov. 22

(letter of notification) 2,994,000 shares of com¬
mon
stock (par five cents).
Price—10 cents per share.
Proceds—For exploration and development costs.
Of¬
fice—211-206 N. Virginia Street, Reno, Nev. Underwriter
—Western Securities Corp., Las Vegas, Nev.
Slick Rock

Uranium Development Corp.

Oct. 8 (letter of notification)
stock

(par

underwriter
Price—10

five
and

cents

2,900,000 shares of common

cents), including shares for option to \
prior property owner to be amended. 1
per share.
Proceeds—For development

Office—Newhouse Hotel, Salt
Underwriter — Van Blerkom & Co.,

and exploration expenses.
Lake
same

City, Utah.
city.

Solomon

Uranium & Oil Corp.,

Inc.

2,000,000 shares of com¬
(par one cent). Price -— 10 cents per share.
Proceeds—For mining expenses.
Offices — 506 Beason
Oct.

7

mon

stock

(letter

of notification)

Number 5392

Volume 181

ial Chronicle

The Commercial and Fi

...

Salt Lake City, Utah, and 1016 Baltimore Bldg.,
City, Mo. Underwriter—E. R. Bell & Co., Kansas
City, Mo.

(101)

Bldg.,

—To

Kansas

bank loans and for

Somerset Telephone Co., Norridgewock, Me.
June

(letter of notification)

11

supplied

pansion and new equipment.

Underwriters—E. H. Stan¬
ley & Co., Waterville, Me.; and Clifford J. Murphy Co.,
Portland, Me.
Stanley Aviation Corp.
14 (letter of notification) 10,500 shares of common
stock (par 10 cents). Price—$16.66 per share.
Proceeds
—For working capital. Office—Buffalo 25, N. Y. Under¬
writer—None.

Trans-Continental
Oct.

Proceeds—To repay
Underwriters

program.

York, and Collin, Norton

Corp., Salt Lake City, Utah
(letter of notification) 6,000,000 shares of com¬
(par one cent). Price—Five cents per share.
Proceeds
For exploration
and development costs.
Aug. 2

stock

Uranium

Corp.

(letter of notification) 2,990,000 shares of com¬
mon
stock.
Price—At par (10 cents per
share). Pro¬
ceeds—For exploration and development costs.
Office
—358 S. 3rd St. East, Salt Lake
City, Utah. Underwriter
—Western Securities Corp., same city.
Turf
Nov.

Paradise,

12

and

Inc., Phoenix, Ariz.

filed'

83,334 shares of common stock (par $10)
shares of preferred stock (par $20) to be

83,334
in

units

Price—$30

of

share

one

of

each

class

of

stock.

unit. Proceeds—To construct racing plant
obligations. Underwriter—Selected Securi¬
ties, Inc., Phoenix, Ariz.
per

and to repay

—

Underwriter—Ned J. Bowman

Co., Salt Lake City, Utah.

Stardust, Inc., Reno, Nev.
July 9 filed 621 ;882 shares of preferred stock (par $10)
and 621,882 shares of common stock (par one cent) to be
offered in units of one share of each class of stock. Price

—$10.01

Dec.

23

hotel. Underwriter—None.

Fire &

State

Casualty Co., Miami, Fla. (1/13)
125,000 shares of class A non-voting com¬

filed

stock (par $1) to be offered for subscription by
holders of class A and class B common stocks at rate of
mon

one

share for each

new

two

shares

held.

Price—To

be

supplied by amendment. Proceeds—To enable company
to expand its business. Underwriter — A. M. Kidder &

Co., New York.
•

Stinnes

N. Y., and Miami, Fla.

in

units

common

of

$1,000 of notes and

an

Price—To

shares.

be

retirement

Proceeds—For

ment.

and

New

Financing done
•

unspecified number
supplied by amend¬

of

7%

Statement

York.

in Germany.

Stylon Corp.

Dec.

debentures

of

to

be

withdrawn.^

.

(1/10)

filed

9

250,000 shares of common stock (par $5).
Price—To
be supplied
by amendment.
Proceeds—To
selling stockholders. Underwriters — Gearhart & Otis,

Inc.; McCoy & Willard; and White & Co.
Superior Uranium Co., Las Vegas, Nev.
Sept. 1 (letter of notification) 29,910,000 shares of com¬
mon stock.
Price—At par (one cent per share). Proceeds
—For development and exploration costs. Office—Medi¬
cal Arts

Bldg., Las Vegas, Nev.
Brokers, Inc., the same city.

Underwriter—Uranium

ties.

Office

Lake

—

Life

1406

of

—

America

Western

Building,

Securities

Corp.,

Salt

City, Utah.

Tarbell

Mines, Ltd. (Canada)
Sept. 24 (Regulation "D") 599,760 shares of common
stock
(par $1—Canadian).
Price—50 cents per share.
—U. S. funds.
Proceeds—For exploration and develop¬
ment expenses and acquisition of property.
Underwriter
J. Cooney

& Co., New York.

Temple Mountain Uranium Co.
Oct.

7

(letter of notification)

stock

3,500,000 shares

of

com¬

(par 2% cents).

Price — 3 cents per share.
exploration dnd development expenses.
Office—39 Exchange Place, Salt Lake City, Utah. Un¬
derwriter—Walter Sondrup, same city.
mon

Proceeds—For

Texas

June

21

International

Sulphur Co.

455,000 shares of common stock (par 10
cents), of which 385,000 shares are to be offered for
subscription by common stockholders at the rate of one
new
share for each 4Y2 shares held; and
70,000 shares
are

for account of certain

selling stockholders. Price—To
by amendment. Proceeds—For exploration

and drilling, and payment of bank loans and advances.
Underwriter—Vickers Brothers, New York, on a "best ef¬
forts" basis.

Texcrete Structural Product
Dec.

Texas
one

filed 350,779 shares of common stock (par 10
to be offered for subscription by stockholders of

Industries, Inc. of record Dec. 10, 1954 at rate of

share

then held.
to

public.

rate

Co., Dallas, Texas

14

•cents)

Texcrete

Price—$3

for

each

share

of

Texas

Industries

share to stockholders and $3.50
Proceeds—For expansion and general corpo¬

purposes.

per

Underwriters—Rauscher, Pierce

&

Co.,

Inc.,

Dallas, Tex., and Russ & Co., San Antonio, Tex.
Offering—Expected this week for a 14-day standby.
Thunderbird Uranium Co., Reno, Nev.
Aug. 3 (letter of notification) 1,800,000 shares
mon

stock

(par 10 cents).

Proceeds—For

Price

mining activities.

—

of

com¬

15 cents per share.

Office—206 N. Virginia

Toledo Edison Co.
29

City, Utah. Un¬
same city.

Inc., Salt Lake City, Utah.

(1/19)
filed 400,000 .shares of

and 100,000 shares of preferred stock




stock

(par $5)

(par $100).

Price

Utah

Uranium

Proceeds—For

—

Dec.

29

Artists

Circuit,

Inc.

(1/24-28)

filed

400,121 shares of common stock (par $1).
be
supplied by amendment. Proceeds—To

Price—To
bank

loans

&

and

for

working capital. Underwriter

Co., New York.

United

Dec.

Theatre

Corp. (1/11)
170,000 shares of

common

stock

Proceeds—To Electric Bond & Share Co.
reduce E.

B.

&

S.

(par $10).

This sale will

holdings to less than 10%

of United
Underwriters—To be determined
by competitive bidding. Probable bidders: Blyth & Co.,

Gas Stock outstanding.

Inc.; Merrill Lynch, Pierce, Fenner & Beane and Kid¬
der, Peabody & Co. (jointly); Goldman, Sachs & Co.;
The First Boston
Corp.; Lehman Brothers. Bids—To be
received up to 3:45 p.m.
(EST) on Jan. 11 at Two Rector
St., New York, N. Y.
•

United

States

Plywood Corp. (1/25-26)
Dec. 22 filed $25,000,000 of 25-year
sinking fund deben¬
tures due Jan. 1, 1980. Price—To be
supplied by amend¬
ment.

Proceeds—To

debentures

and

for

redeem

other

$15,000,000 of outstanding

corporate

Under¬

purposes.

Universal Major Corp.

To

(Nev.)
(1/12)
(letter of notification) 150,000 shares of common
one cent).
Price—$1 per share. Proceeds—•

(par

retire

indebtedness

and

for

Business—Manufacture of major
fice—67

East

working

capital,

etc.

appliances.

home

Of¬

59th

St., New York, N. Y.
Gearhart & Otis, Inc., New York.
Universal

Underwriter—

Oct. 4

Price

At

($1 per share). Proceeds — For
(drilling equipment which company
out), and working capital. Office—c/o Edwin J.
Dotson, attorney-at-law, Simon Bldg., 230 Fremont St.,
Las Vegas, Nev.
Underwriter—Robert B. Fisher In¬
vestments, 510 South Fifth St., Las Vegas, Nev.
—

par

of Driller Boy

rents

(letter of notification)

2,000,000 shares of com¬
Price—15 cents per share.

stock

mon

(par two cents).
For exploration and
development expenses.
Office—908 Kearns Bldg., Salt Lake
City, Utah. Under¬
Proceeds

—

writer—Austin B. Smith Brokerage
Co., the same city.

Uranium Corp. of Colorado
Sept. 23 (letter of notification) 300,000 shares of common
stock (par one cent).
Price—$1 per share. Proceeds—
For exploration
and
development costs.
Office —129
East

60th

St., New York, N. Y. Underwriter—None.

Uranium

tal

Discovery & Development Co.,
Wallace, Idaho
'
(letter of notification) 1,000,000 shares of capi¬
Price—At

ceeds—For

core

par

drilling

(five cents
program

per

upon

claims.

share).
Pro¬
two groups of

Address—Box 709, Wallace, Idaho.
—Wallace Brokerage Co., some city. ■...

Underwriter

it Uranium Royalties, Inc., Rapid City, S. Dak.
Dec. 27 (letter of notification)
1,165,000 shares of

Washington Natural Gas Co., Clarksburg, Va.
Sept. 20 (letter of notification) 10,000 shares of
common

ing

Co.,

com¬

City, S. D. Underwriter—Wendell

E.

Kindley &

address.

same

Inc., Provo, Utah
Sept. 14 (letter of notification) 3,000,000 shares of
stock

(par

1

cent).

Price —10

cents

per

com¬

share.

Bay Securities Corp., New York.

Shares, Inc., Denver, Colo.
(letter of notification) 30,000,000 shares of
stock.
Price—At par (one cent per share).

Pro¬

mining expenses. Office—3038 Wyandot St.,
Colo.
Underwriters—Kamp & Co., Fred W.
Co.

and

Mile

High Securities Co., all of Den¬

Colo.

Uranium, Inc., Salt Lake City, Utah

Oct.

7

mon

stock

(letter

D.

per

Hardman, the sell¬
Herrick

Wenga Copper Mines, Inc., N. Y.
18
(Regulation "D") 900,000 shares

Nov.

stock

(par five cents).

ceeds—For
Willis

E.

&

Co.,

general

Burnside

Price—30/cents

corporate
&

of

per

common

share.

Pro¬

Underwriter—

purposes.

Co., New York.

Dallas, Tex.
$29,000,000 12-year 6% debentures

due

Dec.

ture

and

15, 1964, and 580,000 shares of common stock
(par 50 cents) to be offered in units of one
$50 deben¬
share of

one

amendment.
additional

stock.

Price—To

be

supplied by
1,125,000
private sales of

Proceeds—From sale of units

shares

of common

stock

and

and

$55,000,000 first mortgage bonds to be used
1,030 mile crude oil pipeline.
Underwriters
Weld

&

Co.

and

Union

to

build

—

a

White,

Securities

Corp., both of New
Offering—Postponed indefinitely.

York.

West Coast Pipe Line
Co.,
Nov. 20, 1952 filed
50

Dallas, Tex.
1,125,000 shares of common stock (par
be supplied by
amendment.
Pro¬

cents).

Price—To

ceeds—Together with other funds, to be used to
build
pipeline. Underwriters—White, Weld & Co. and
Union
Securities Corp., both of New
York. Dffering—Post¬

indefinitely.

Western Central

Petroleums, Inc., N. Y.
Sept. 16 (letter of notification) 133,333 shares of
common
stock (par 10 cents).
Price—At market (estimated at

36V2

cents).

Proceeds—To

certain

Office —32

Broadway, New York.
Co., New York.

Cantor

Plains

Oil

&

Gas

selling stockholders.
Underwriter

—

S.

B.

Co.

May 24 filed

100,000 shares of common stock (par
$1).
Price—$4.75 per share. Proceeds—To redeem
1,250 out¬
standing preferred shares ($125,000), to
repay! bank
loan, etc. ($2,500); for purchase or
tional

mineral

acquisition of addi¬
leases and royalties in the
Canada and for other
corporate

interests,

United States and

pur¬

poses.

Rice

&

Nov. 2
stock

For

Office—Glendive, Mont.
Co., St. Paul, Minn.

Underwriter—Irving

J.

Oil & Minerals
Corp.
(letter of notification) 300,000 shares of common
(par 10 cents).
Price—$1 per share. Proceeds—

incident

expenses

Columbus

&

to

oil

activities.

St.,

Streitman
William

Dec.

.9

Rapid City, S. D.
Co., New York.

Montgomery

(letter

of

debenture notes

Co.,
notification)

Office

—

728

Underwriter—Fenner-

PhilaCelphia,

$150,000 5%
(subordinated) maturing 10

Pa.
registered

years from
Price—At par. Proceeds—For
working
Office—999 No. Second St.,
Philadelphia 23, Pa.
Underwriter—None.

date of issuance.

capital.

it Winn

&

Dec.

(letter

23

Lovett
of

aggregate value of
to

Grocery Co.
notification) not
common

stock

to exceed $285,000
(par $1) to be offered

employees. Proceeds—For general corporate

Office—5050 Edgewood
writer—None.

Court.

purposes.

Jacksonville, Fla. Under¬

Woodland Oil & Gas Co., Inc.
(letter of notification) 299,900 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For equipment,
drilling expenses and working capital.
Office—42 Broadway, New

York, N. Y.

E. M. North Co.,

Inc..

same

Underwriter—

address.

of notification)

(par one cent).

6,000.000

Uranium Mining Corp.
(letter of notification) 9,996,000 shares of com¬
stock
(par one cent).
Price —Three cents pel

mon

share.

Proceeds—For exploration

penses.

Utah.

mon

com¬

ceeds—For

&

(estimated at $1.37y2

Elizabeth

Underwriter—Barrett

Inc., New York.

Office—323

and development ex¬
bldg., Salt Lake City,
Christopulos & Co., same city.

Newhouse

Underwriter—P. G.

Aug. 23

Uranium

ver,

stockholder.

Wyoming Uranium Corp., Salt Lake City, Utah

Dec. 22

Miller

market

July 21

Proceeds—For exploration and development costs. Office
227
N. University Ave.,
Provo, Utah.
Underwriter—

Denver,

the

Proceeds—To

World

Uranium of Utah,

mon

Price—At

Dec. 21

mon
stock.
Price—At par (25 cents per share).
Pro¬
ceeds—For mining expenses, etc. Office—626 Sixth
St.,

Rapid

com¬

share). Pro¬
mining operations. Ad¬

Hotel, Wallace, Idaho.

16

stock.

city.

same

Wilco

Urainbow, Inc., Salt Lake City, Utah
Aug. 31

Securities,

expenses;

Underwriter

dress—P. O. Box 289, Wallace, Idaho.
Underwriter—Alden J. Teske, d/b/a Wallace
Brokerage Co., Samuels

Western

Petroleum

Exploration & Drilling Corp.
(letter of notification) 300,000 shares of common

cost

development

ceeds—For expenses incident to

poned

writer—Eastman, Dillon & Co., New York.
Dec. 21

and

West Coast Pipe Line
Co.,
Nov. 20, 1952 filed

Gas

15 filed

shares of capi¬
Three cents per share.

Vulcan-Uranium Mines, Inc.,
Wallace, Idaho
Oct. 15 (letter of
notification) 1,500,000 shares of
mon stock.
Price—At par (five cents per

writer—James E. Reed Co., same
city.

* United

exploration

10^000,000
—

Office—1818 Beverly Way, Las
Vegas, Nev.

—First Western

share).

(letter of notification) 15,000,000 shares of com¬
(par one cent). Price—Two cents per share.
Proceeds
For
exploration and development costs.
Office—424 Judge Bldg., Salt Lake
City, Utah. Under¬

Corp., Las Vegas, Nev.

Aug. 20 (letter of notification)
tal stock (par 1 cent). Price

stock

Utaco
common

(letter of notification) 3,000,000 shares of capf(par three cents). Price—Six cents per share.
Proceeds—For exploration and
development expenses.
Office—430 Judge Bldg., Salt Lake
City, Utah. Under¬
writer—Mid-Continent Securities, Inc., same city.
'

mon

mon

St., Reno, Neb. Underwriter—Stock, Inc., Salt Lake City.
Dec.

Uranium,

Of¬

18

stock.

Nov.

filed

be supplied

Of¬

tal stock

5

Dallas.

Tacony Uranium Corp., Denver, Colo.
Aug. 17 (letter of notification) 1,700,000 shares of com¬
mon
stock.
Price—10 cents per share.
Proceeds—For
exploration and development expenses.
Office — 317
Railway Exchange Building, Denver, Colo. Underwrite!
—E. I. Shelley Co., Denver, Colo.

—H.

Uintah

costs.

stock.

Underwriter

explrtratiop and development costs.

Building, SaTTut^e City, Utah. Under¬
Securities Corp., Las Vegas, Nev.

Felt

writer—Western

Oct.

stock

Sytro Uranium Mining Co., Inc., Dallas, Texas
Sept. 9 (letter of notification) 2,975,000 shares of com¬
mon stock
(par five cents). Price—10 cents per share.
Proceeds—For exploration and development of proper¬
Texas.

derwriter—Western Securities Corp., the

retire

Hugo Stinnes Industries, Inc., due 1946. Underwriters—
Halsey, Stuart & Co. Inc. and A. G. Becker & Co. Inc.,
Chicago

Proceeds—For exploration and development
fice—906 Walker Bank Bldg., Salt Lake

—Allen

Corp., New York

(Hugo)

Nov. 22 filed $6,000,000 of notes and an unspecified num¬
ber of shares of common stock (par $5) to be offered
of

Ucolo Uranium Co., Salt Lake
City, Utah
Sept. 13 (letter of notification) 2,800,000 shares of com¬
mon stock
(par one cent). Price — 10 cents per share.

unit. Proceeds—For purchase of land and to

per

construct and equip a luxury

Proceeds—For
fice—420

Oct.

1

offered
Star Uranium

mon

amendment.

construction

—The First Boston Corp., New
& Co., Toledo, Ohio.

Dec.

:

by

Utah Apex Uranium Co.

2,200 shares of capital
Proceeds—For ex¬

Price—At par ($5 per share).

stock.

be

45

shares

Price—Five cents

of

per

(letter of notification) 9,166,667 shares of com¬
(par 1 cent). Price—Three cents per share.
exploration and development expenses.

stock

Proceeds—For

Underwriter—James E. Reed Co., Salt Lake
City, Utah.
Zenith Uranium & Mining Corp.
July 12 (letter of notification) 300,000 shares of common
stock (par one cent).
Price—$1 per share. Proceeds—
For mining operations.
Underwriter—Sheehan & Co.,
Boston, Mass.

com¬

share.

Continued

on

page

46

s

46

The Commercial and Financial Chronicle..

(102)

Continued

from

page

Prospective Offerings
Air-Way Electric Appliance Corp.
approved proposals to increase the au¬
thorized common stock (par $3) from 400,000 shares to

authorize $5,000,000 of preferred

1,200,000 shares, and to
either

$50

a

dividend rate of not exceeding 5%, with
a $100 par value.
Both stock issues are

or

subject to approval of the stockholders. Underwriters—
Wm. C. Roney & Co., Detroit. Mich., has handled nu¬
merous secondary offerings in the past.
Central

Sept. 2 it

reported company plans issue and sale ol
to 600,000 additional shares of com¬

was

between

>

Southwest Corp.

&

stock, probably first to stockholders. Underwritei
—May be determined by competitive bidding. Probable

Blyth & Co., Inc. and Smith, Barney & Co.
(jointly); The First Boston Corp. and Merrill Lynch,
"Pierce, Fenner & Beane (jointly); Lehman Brothers and
Lazard Freres & Co. (jointly).
Offering—Not expected
bidders;

until early in 1955..

Chesapeake & Ohio Ry.

bidders:

Probable
Blyth & Co., Inc.

Halsey, Stuart & Co. Inc.;

due 1995. Proceeds—To re¬
31/2% debentures due
1984 at
interest on March 7, 1955; and

40-year debentures

$15,000,000 of
and accrued

deem

104.52%

construction

for

Underwriter

program.

—

be de¬

To

competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Harriman Ripley & Co. Inc.; Kuhn, Loeb & Co.; Morgan
Stanley & Co.; White, Weld & Co. Bids—Expected to
termined

by

be received
•

the

29

5%

income

par

for

A

Feb.

on

1.

ICC

for the outstanding 383,412 shares of class
(par $40). The offer expires Jan. 21, 1955.

par,

stock

Los

Bank of

(1/14)

Angeles

it

bank

announced

was

(after proposed stock split to be voted on Jan. 11); rights

Feb. 14. Price—$33 per share. Proceeds—
increase capital and surplus.
Underwriter—Blyth &

expire

To

on

Co., Inc., Los Angeles, Calif.
Consolidated

and saleof not to exceed $6,000,000 convertible debenture bondi
in connection with the acquisition of Uranium Mines of
America, Inc. stock. Public offering of $2,000,000 bonds
expected early in 1955. Underwriter — Tellier & Co.,
Jersey City, NT. J.
Dallas Power & Light Co.

(2/14)
Dec. 8 it was reported company plans to issue and sell '
$7,000,000 of debentures due 1980.
Proceeds—For con¬
struction program.
Underwriter—To be determined by
competitive bidding.
Probable bidders: Halsey, Stuart
& Co. Inc.; Salomon Bros. & Hutzler; The First Boston
Corp.; Lehman Brothers; Union Securities Corp. and
Wertheim & Co. (jointly); Kidder, Peabody & Co., Blyth
,& Co., Inc. and Merrill, Lynch, Pierce, Fenner & Beane
(jointly); Equitable Securities Corp.; Kuhn, Loeb & Co.
Registration—Scheduled for Jan. 14.
be received up

to 11

a.m.

(EST)

on

Bids—Expected to

Feb. 14.

was

Minneapolis, Minn.
'
announced corporation plans to offer 361,-

922 additional

shares of capital stock to its stockholders

it

basis

of

one

new

share

for

each

eight shares

held.

meeting will be held Feb. 16 to

approve

issue).

Pro¬

ceeds—To increase capital structures of affiliated banks.

Underwriter—Blyth & Co., Inc., New York.
it General Motors Corp.
Jan. 3 it

Dec.

new

additional

share for

each 20

plans to offer to

commn

stock

shares held

on

com¬

basis

of

(at last accounts

88,513,817

shares were outstanding). Price—To be de¬
shortly before offering. Proceeds—About $325,000,000 for capital expenditures and working capital.
Underwriter—Morgan Stanley & Co., New York. Regis¬
tration—Expected about Jan. 20.

termined

General Telephone Co. of California
Dec. 15 company applied to California P.
sion

4Y2%

for

authority

preferred

to

stock

issue
(par

and

$20).

bank loans and for expansion

sell

200,000

Commis¬

shares

Proceeds—To

program.

of

re^ay

Underwriters—

★ Harvard Brewing Co., Lowell, Mass.
Dec. 31 the Alien Property Office of the Justice Depart¬
ment said it is anticipated that the government's hold¬
ings of 345,760 shares of capital stock (par $1), out of
625,000 shares outstanding, will be offered for sale early
1955.

Holly Corp., New York
Sept. 9 S. B. Harris, Jr., President, stated that prelimin¬
ary financing by Holly Uranium Corp. has been arranged




it

Stuart

&

&

Underwriter

—

Proceeds—

Central

To be deter¬

23

(fb.

Electric

&

Gas

it

determined

by

Ripley

biddir
Inc. ai

(jointly);

Inc.

Co.

&

Smith.

Barney

Offering

to noon (ESr
it of $1,350,000 equi
certificates, series W, due semi-annually
company up

19 for the purchase from

trust

merit

Feb. 1, 1970. Probable bidders: Halse
Inc.; Salomon Bros. & Hutzler; Big
Rollins & Co., Incorporated; Kidder, Peabody & Co.
and

including

Co.

&

Stuart

(3/15)

be

Republic'Co.

-

Jan.

on

it

15

Dec.

(foilowii

company

split) to offer stockholders of record Ja
subscribe for 37,500 additional shares

stock

2-for-l

com¬

announced

was

(1/25)

Bank, Boston
plans

National

Rockland-Atlas

was

Underwriter—r?6

Harr'man

bidders?

it Reading Co. (1/19)
Bids will be received by the

reported cor^any plans sale of 60,000
preferred stock (paF*$100). Proceeds—For new

shares of

(par $100

Expeqted in first half of 1955.

Beane

Kansas

reported that company plans to issue ar

was

Co.; Kuhn, Loeb & Co.; Glore, Forgan & Co.

(jointly); Kuhd? Loeb & Co. and A. C.
Allyn & Co. Inc. (jointly). BRfS—Expected March 15.
Dec.

in Philadelphi

company

of Oklahoma

Co.

Service

it

Probable

(jointly); Blyth & Co., Inc. and The First
Boston Corp. (jointly); Union Securities Corp. and Stone
& Webster Securities Corp. (jointly); Lehman Brothers;
ner

(1/6)
by the

Underwriter—To be determined by competitive

Co.

Sachs &

RR.

to noon

up

Nov.-11

competitive bidding. Probable bidders: Halsey,
Co. Inc.; Glore, Forgan & Co. and Goldman,

mined by

t
e?

an

Offering—No deiinite decisic

received

be

Public

to

>

$10,000,000 of first mortgage bonds due 1985.
For construction program.

including

reserves,

r<

would

remainder

Salomon Bros. & Hutzler.

reported company plans to issue and sell

was

bidding. Probable bidders: Lehman Brothers;
Blyth & Co. Inc.; Union Secuffties Corp.; White, Weld &

25 the right to

Co. and

for each 5 14/15 shares held;

petitive

Shields & Co.

Merrill

and

Fenner & Beane

ivlbrch

ital

15.

Dec.

27

it

production
nancing

announced

was

basis

on

March

about

or

addition

substantial

a

cdfhpany's National Tak &
plastic pipe business on a
15.

the

to

company's

Portland's Kenton district have been

in

construction

derwriter—Kidder,
wrote

will

Peabody

Co., New

plant

000

announced

was

Nov.

it

8

around

it

27

$1^000,000 of first mortgage bonds due 1985.

reported

Blosser

Oct.

England

plans to sell at

company

19

it

was

announced

stockholders

its

tional

shares

Telephone

Inc.

Hutzler; Kidder, Peabody & Co. and Merrill Lyn
Pierce, Fenner & Beane
(jointly); Union Securit
Corp.: Hemphill, Noyes & Co. and Drexel & Co. (joii

com¬

of

of

company

record

March

stock

capital

Telegraph

&

proposes

owns

ceeds—To

repay

temporary

11:30

for Jan. 21.

/.

New

was

petitive

financing
Co.

bidders:

Halsey,

Stuart

Bids

(EST)

at

Jan.

on

11

—

905

To be received

Terminal

Tower,

North
17

stock

Penn
it

was

u"§ed

will

(par $5)

be

named

announced

later.

420,000

shares

280,000

shares of

common

stock

Price

—

$70 per unit. Proceeds

—

a

common

stock

would

present

be

offered

each

three

sha

Und

Baltimore, Md. Meeti
financing on Jan. 4.

Sons,
on

7

Idaho Uranium,

Lester

Virginia Electric & Power Co.

next
;

Spring. Underwriter—To be determined by coi
petitive bidding. Probable bidders: Halsey, Stuart & (
Inc.; Union Securities Corp.; Stone & Webster Securit
Corp.; Kuhn, Loeb & Co.; Salomon Bros. & HutzL

White,
v

Weld & Co.

Western

Light & Telephone Co., Inc.
announced company- plans to issue a
$3,000,000 first mortgage bonds due 1985 and abc

Nov.
sell

on

24

it

was

40,000 additional shares of common stock

of

by
shares.

&

share for

was reported company may issue and sell. $2
000,000 to $25,000,000 of first mortgage bonds some tii

gas

subscription

Brown

new

Nov. 1 it

Together with other

for

one

gram.

'b

units

pipeline between Ingancio, Colo., and Sumas, Wash.,
the Canadian border. In addition,
1,659,200 shares

of

public of its unissued treasury stock. This financing w
/follow completion of the company's current drilling pi

10 shares of stock.

1,400-mile natural

basis

Inc., Kellogg, Ida.
S. Harrison, President, announced ti¬
the company - contemplates obtaining funds to initio
Its uranium mining operations in Utah by the sale to t

common

(par $l)*in

on

of record Jan. 6; rights to expire Jan. 24.

Utah &

be offered to public. Price—
Proceeds—To The Post Publishing

of $60 principal amount of notes and

additional shares of capital stock (
purchase and enlargement of a pi

finance

.Sept.

Co., publisher of The Boston Post. Underwriter—East¬
man, Dillon & Co., New York.
Registration—Expected
early in January.

and

100,000

-Stockholders will vote

soon

* Pacific Northwest Pipe Line Corp.
20, C. R. Williams, President, announced that it is
planned to offer publicly $16,800,000 of 6% interim notes

Weld

(1/7)

to

(writer—Alex.

to noon
Cleveland,

Dec.

Co. of Maryland

held

up

of

total long te
after the n

$•*8)

&/

Co.

Gas

company's

Underwriter*;—White,
& Webster Securities Corp.

Stone

and

/holders

.

Ohio.

Dec.

n

JNov. 11 it was announced bank plans to offer its sto

Inc.; Blyth & Co., Inc. and Union Securities Corp.
(jointly); Smith, Barney & Co.; White, Weld & Co.:

Kuhn, Loeb & Co.

the

completed.

is

fa* Union Trust

(1/11)

Underwriters—To be determined by com¬

Probable

that

replacement

debt ratio is expected to approximate 70%

announced company

bidding.

finalized

been

not

and

While the financing progr

1,955 of about $85,000,000.
has

Underwriter

plans to sell $36,009,000 of income debentures due Dec. 31, 1989.
Proceeds
—To
redeem
outstanding 334,166 shares of 6% pre¬
ferred stock.

Pipe Line Corp.

of ba
borrowings made in 1954 will require financing duri

1, next, 511,205 addi¬
$100) on a l-for-5

York, Chicago & St. Louis RR.

Ga->

construction program

year's

to offer to

—None.

Nov. 16 it

Transcontinental

Nov. 24 Tom P. Walker, President, announced

Co.

(par

borrowings.

Bids—Tentatively expected to be received up
a.m.
(EST) on Feb. 23. Registration — Schedul

ly).

American Telephone & Telegraph Co., its parent,
about 69% of presently outstanding shares.
Pro¬

basis.

Underwriter—To be determined by compe
Probable bidders: Halsey, Stuart & Co. In
First Boston Corp.; Kuhn, Loeb & Co., Blyth C
and Lehman Brothers (jointly); Salomon Bros.

The

&

petitive bidding on Jan. 13 an issue of $3,900,000 equip¬
ment trust certificates, series ZZ, due annually to 1970,
inclusive.
Probable bidders: Halsey, Stuart & Co. Inc.;
Salomon Bros. & Hutzler; Kidder, Peabody & Co.
New

Procee

3%% bonds and for construct]

tive bidding.

(1/ 13)

Pacific RR.

was

(2/23)

program.

share.
Underwriter—Straus,
Chicago, 111.

Missouri

Co.

reported company plans to issue and s

was

—To redeem $7,000,000

Co.

per

McDowell,

Electric Service

Texas

Dgc. 20 it

was

$8

William R. Staats & Co. and Fi

plans to offer 500,-

reported early registration of about 110,shares of common stock is expected. Price—May be

000

Co.

California Co.

company

Gas

Natural

Power

Nevada

was

Hornblower & Weeks,

(par five cents) to the motorist and general
shortly after completion of the Current offering
of 100,000 shares to service station owners'and operators.
Office—Room 717, 141 Broadway, New York 6, N. Y.
Missouri

(2/14-18)

announced company plans to issue ad.
common
stock
early in
1955.
Underwriters

12 it

tiohal

shares

Nov.

America

was

/Southern

Un¬

York, under¬

Majestic Auto Club, Inc.
Aug. 25 it

Cor

reported company may be planning s
of $5,000,000 of debentures (with warrants). Under writ
—Paine, Webber, Jackson & Curtis, Boston, Mass.

financing.

previous public

Underwriter—The First Boston

surplus.

13 it

Dep.

fi¬

approved by the

immediately.

begin

&

for

Plans

rights to expire on Feb.
increase ca

Proceeds—To

York.

Sheraton Corp. of

enter the

will

and

New

the basis of one new sha

on

named later.

be

Price—To

(jointly).

it M and M Wood Working Co.

Pipe division

(par $10)

captial stock

(jointlfj; Kidder, Peabody & Co.

Pierce,
Bids—Tentatively expected
Lynch,

funds, to finance construction of
U.

May be Paine, Webber, Jackson & Curtis; Stone & Web¬
ster Securities Corp.; and Mitchum, Jones &
Templeton.

in

23

the

oil

pi oven

accounts

finance

to

and

se|l 100.000 shares of new preierred stock

(3/15)

Kansas Gas & Electric Co.

To

(2/8)

announced company

stockholders

mon
one

was

„

Kuhn,

Co., Inc.; Equitable Securities Corp. Bids—Expected
be received on Feb. 15, 1955.

Price—To be determined at time of offering (stockhold¬
ers

(jointly);

Co.

&

Stearns

Bear,

Co.

First Bank Stock Corp.,

on

and

Co., Salomon Bros. & Hutzler and Union Secur¬
ities Corp. (jointly); Glore, Forgan & Co.; Blyth & Co.,
Inc. and The First Boston Corp. (jointly); White, Weld
& Co. and Shields & Co. (jointly); Harriman Ripley &

Loeb &

Dec.

Uranium

Mines, Inc.
stockholders authorized the issuance

July 23

Dec. 21

Brothers

used

(EST) on Jan. 6 for the purchase fro
itiof $6,810,000 equipment trust certificates, series C<
to "be dated Feb. 1, 1955 and to mature in 15 annual ii
stalrhents of $454,000 each from Feb. 1, 1956 to 1970, -ii
elusive.
Probable bidders: Halsey, Stuart & Co.-«'In(

*Pa.,

Inc.; Lehman

Co.

&

Stuart

Halsey,

will

Bids

public

plans to issue to stock¬
holders of record Jan. 11 the right to subscribe for 200,000 additional shares of new common stock (par $10)
on the basis of two new shares for each five shares held
to

bidders:

debentures

Citizens National Trust & Savings

Dec. 6

Probable

develop

to

Pennsylvania

bank loans and for new construction. Under¬
be
determined
by competitive bidding.

repay

a

ye|maoe.

writers— To

directors and

Eastern Illinois RR.
approved plan to offer $15,336,480 of
due Jan. 1, 2054, in exchange,

Chicago &

Dec.

To

of

papded drilling program.

(2/15)

City Power & Light Co.

construction.

Chesapeake & Potomac Telephone Co. of
Baltimore City (2/1)
Dec. 28 directors authorized issuance and sale of $25,000.000

used

Kidder, Peabody & Co. and Merrill Lynch, Pierce, Fen¬

Sept. 29 it was reported company plans to issue and
sell $40,000,000 of new bonds.
Proceeds—To refund its
outstanding $37,851,000 3%% bonds and $2,441,000 4%
bonds. Underwriter—May be determined by competitive
bidding.

Corp. stock to its stockholders.

will be
subsidiary

$1,000,000

ceivable

Sept. 15 it was announced tnat company plans to sell
$16,000,000 first mortgage bonds due 1985.
Proceeds—

500,000

mon

other

public offering eabiy in 1955 after

a

of Holly Uranium

Kansas

Dec. 6 directors

by

Holly Corp. plans to distribute part of its hold¬

which

ings

stock to carry a

followed

be

to

45

.Thursday, January 6, 19i

;

stockholders
struction

stockholders who already own 700,000
Underwriter—White, Weld & Co., New York. Offering—
Expected to be completed in first half of February, 1955.

&

Co.

on

a

program.

and

The

l-for-10

basis).

(the

latter

Proceeds—For

cc

Underwriters—May be Dean Witi

First Trust

Co. of Lincoln, Neb.

Off<

in January. Bonds may be sold pu
privately, depending on market conditions.

ing—Expected
licly

Penn-Texas

or

Corp.
capital stock (par $10) was increased
Westpan Hydrocarbon Co. (4/15)
by 1,000,000 shares, of which about 220,000 shares are
Dec. 11 it was reported Sinclair Oil Corp. will ask i
to be
'"bids for 384,861 shares of Westpan stock about April
publicly offered.
Price — From 15%rto 25%

Oct.

18 authorized

^

below

the

price on the New York Stock Exchange at
1955, if it has not been able to disDOse of these holdir
-before that date. Underwriter—Union Securities Cor
Proceeds — Of the approximately
$3,000,000 which would be obtained, about $1,000,000 will ..jNew York, underwrote recent sale of Sinclair's holdii
be used for drilling, exploration and additional pur¬
of Colorado Interstate Gas Co. White. Weld & Co., N
chases under the corporation's uranium program; an¬ :• J*prk, .may be included among the bidders.

the time of offering.

Number 5392... The Commercial and Financial Chronicle

Volume 181

to

notice

serve

^ watchful

Investment
tioned

that

it

bankers,

heretofore,

been

disposed

quieting

tivity

the

as

already
look

speculative

for

some

a

Iftie several large

of

;Wali

Street

ordinarily likes its

business large, but

there are times

depending

hen,

circum-

on

tances, even big business proves
bit

he

trying
Street

which

the nerves. What
likes is big business
on

the

of

out

moves

right in one sense, but a bit dis¬
concerting in another.
The big
business is just ahead, but with it
comes
the
prospect for "steril¬
izing"
of
considerable
banking
and broker capital.
Several

large

pieces

month and early

scription
Midland

Corp.,

this

done

next

rights"

equity

of

being

are

with

"sub¬

a

on

basis.

Marine
offering

its

such

effects

the

of 403,082 shares of $50 par cumu¬

yesterday.

Common stockholders

of record

close had the right to

at the

scribe at $50

of

ferred

in

ferred

seek the

placed

held.

one

18

pre¬

common

Rights here expire

Jan.

on

of|lhe

olfpr 900,000 shares

some
to "buyers of 1
to Duyers oi l

went
went

Aluminium

Ltd..

comes

right behind, with holders of
ord

close

the

at

entitled

tomorrow

subscribe,

to

at

rec¬

being

S47.60

a

share for 921,923 shares additional

stock
this

case

ers

one-for-ten

a

on

runs

the

could

be

And

be

which

capital

of 51

lots

in

classified

analysis.

offing

is

General

offering

for

$325,000,000 of new capital via
rights to common holders.
The
record

but

has

date

offering

month

not

of

C<|jipany

at

their

he

^

next

&

were

during

the

past

Fund, an income
from jess than

grown

more than $4,000,000

Laurence Criley
Cruttenden in Denver

IJ

will

"Percv

Howell

be

Company

will

%

speaker.

DENVER,

Financial

Colo.

—

Building.

been
.

in the
^

Mr.

Criley

investment

early

the

assistance

of

dealers.

T.

who

the offering

month

is

will

volume

a

debt

on

These

will

..goodly

looms

as

an

utility

glance

almost

field

at

the

wholly in

judging

current

from

a

calendar.

United Gas Corp.'s 170,000 shares,

being
the

offered

is not,

for

the

Bond

Electric

&

account

Share

of

Co.,

of course, in the nature of

financing,

new

sents

but

clearing

out

rather
of

firm's holdings.

repre¬

the

*

Public

latter

■

Service

Elec¬

tric & Gas Co. is slated to market

250,000

shares

ferred

of

$100

par

Co.

will

market

preferred

and

King

Merritt

Toledo

100.000

400,000

Co., Inc.,
Building.

Formed in Birmingham
BIRMINGHAM,
of

with

S.

Investment

offices

of

new

Jr.,

Robert

be

firm

M.

of Jan.

as

13

with

Edison

shares of

shares

of

common.

Jr.

Robert T.

and

Stone, the Ex¬

change member.

Sec¬

P. Jemison, ViceDIVIDEND

Jemison

formerly

was

lilOTICEs"

a
The regular quarterly

partner in Marx & Co.

dividend of 25 cents
per

NOTICES

DIVIDEND

share and

an

extra

dividend of 25 cents per

will be mailed Feb. 15th

Notice of Redemption

Jan. 27th.

STOCK

COMMON

TROM, INC.
On December

28,

1954

quarterly dividend

a

ELIZABETH, N.J.

thirty-five cents per share was declared on
the Common Stock of this Company, payable

th^EHolders of $6 Cumulative Conv'ertible
^referred Stock of Armour and Company

Atrae

1954,
the

1955. to Stockholders of record
business January 24, 1955.
remain open. Checks will

February 15,

Prior

the

at

Electronics
Furniture

of

close

Printing Equipment

Transfer books will

special meet ing of shareholders held December 7,

t|fe amendment

Company

was

be mailed.

to the Articles of Incorporation of

EDMUND HOFFMAN, Secretary

adopted, changipg.the redemption price

of the

[Company's $6 Cumulative Convertible Prior Pre¬

ferred

Accordingly, notice hereby is given that
Company, an Illinois corporation, pursuant
Articles of Incorporation, has elected to exercise its

to its

LONG ISLAND LIGHTING COMPANY

'Stock.

AiiMotffe

and

right to redeem and hereby calls for redempt ion on Decem¬
ber 21, 1954, all its issued and outstanding $6 Cumulative
Convertible Prior Preferred Stock at; $120 per share pay¬
able in (i) 5% Cumulative Income Subordinated Deben¬
tures, due November 1, 1984, of the Company, of like
principal amount and (ii) one Warrant for the purchase of
one share of Common Stock of t he Company at the follow¬
ing prices: $12.50 per share from date of issuance to
December 31, 1956"; $15 per share from January 1, 1957,

December 31, 1959; $17.50
to December 31, 1961;

1960,

per

share from January 1,
$20 per share from

and

January 1, 1962, to December 31, 1964.
Holders of certificates representing shares of said $6
on or

Dividend

At

are

after December

21, 1954, to The Chase National Bank of the Cit y of New

York, Corporate Securities Division, 11 Broad Street, New
York 15, New York, or Continental Illinois National Bank
and Trust Company of Chicago, Corporat e Trust Division,
231 C • th LaSalle Street
Chicago 90, Redemption Agents.

QUARTERLY

held

of

share

on

Stock

the

was

a

Board of
final div¬
cents

COMMON STOCK

per

Capital
in respect of

Ordinary

declared

the year 1954,
on

the

today

seventv-five

idend

DIVIDEND

Notice

of

meeting

a

Directors

funds

Cumulative Convertible Prior Preferred Stock hereby
notified to surrender their certificates

PACIFIC

CANADIAN

RAILWAY COMPANY

\

The Hoard of Directors lias de¬
clared

quarterly dividend of 25
share on the Company's
Common Stock, payable Feb¬

payable in Canadian
28, 1955, to

cents

February

shareholders of record at 3.30 p.m.
on

December 30,

1, 1955 to stockholders of

ruary

1954.

a

per

record

By order of the Board.

BRAMLEY,
Secretary.

Montreal, December

13,

at

the close of business

Boost

In

Margin
were

Rate
not

overly

The Company has registered with the Securities and
Exchange Commission the additional 500,000 shares of its
Com: .on Stock reserved for issue upon the exercise of the

THE

OFFERING

OF

THESE

concerned

Warrants.

serve's

VINCENT T. MILES

Treasurer

1954.

Dccemlier 29, 1954

/^WORLD^wiDE BANKING^

DIVIDEND-NOTICE

SHARES OF COMMON STOCK IS MADE ONLY BY

by the Federal Re¬
mark-up of margins re¬
quired to 60% from 50%.
They
accepted this action as confirm¬

ing current reports that the Fed¬
was

a

blossoming

bit

out

concerned

of

by the

speculation

in

the share markets and determined

SITUATION

WANTED

TRADER

TO

business.

Park

&

and

Box

of New York has
On December 21,1954,

such $6 Cumulative Convertible

Commer¬

Chronicle, 25

Place, New York 7.




14,1955.

the City
dividend

of business Janu¬

'

The transfer books will be

CHASE

COMPANY

NATIOHAL
OF

Chicago, Illinois, December 10, 1954.

a

share on the 7,400,000
capital stock of the Bank,

of record at the close

THE
AND

declared

payable February 15, 1955 to holders
ary

and determine.

ARMOUR

per

shares of the

standing, and all rights of the holders thereof as share¬
holders of the Company and as holders of such stock
(including the right to receive accrued dividends and the
right to convert the $6 Cumulative Convertible Prior Pre¬
ferred Stock into Common Stock), except the right to
receive the redemption price payable as aforesaid, shall

By F. A. Becker, Treasurer

55c

of

Prior Preferred Stock shall be deemed to be no longer out¬

phases of the

D16,

Financial

"N
The Chase National Bank of

SAID SHARES.

•

Long experience in all classes
of securities

500,000

THE PROSPECTUS OF THE COMPANY RELATING

cease

cial

on

January 14, 1955.

FREDERICK

,

Underwriters

eral

of¬

W.

Frederick

be

Schwerin, Clarence M. Schwerin,

King,

President.
Mr.

Y.—Schwer-

Great Neck Road. Part¬

will

ners

Vice-President; Leo C.

and

formed

fices at 1

are

President
M.

S.

U.

win, Stone & Co., members of the
New York Stock Exchange, will

Brown-

Vice-President and

retary,

H.

Schwerin, Stone

GREAT NECK, N.

Co.,

is announced.

Jemison,

Executive

the

in

the

Treasurer;

Turner,

To Form

Ala. —Forma¬

Jemison

James

—

&

Bank

National

was
worth, Sullivan & Company, Inc.

pre¬

Duquesne Light has
450,000 shares of common, plus
160,000 shares of preferred sched¬
Meantime

Colo.

Gregg has become affiliated with

Jemison Inv. Co.

,

lr>

Financial Chronicle)

to The

to shareholders of record

and

uled.

<Special

CAN COMPANY

to

However,

about Jan. 13.

or

by Daystrom, Inc. Checks

a

un¬

of

be

With King Merritt \

terms of

of

corporate equity
financing to market.
the

the

announce

and

has

ously with Frank Investors Corp.,
and Gilbert J. Postley & Co.

AMERICAN

securities

bring

120
an¬

share have been declared

To

January

which

usual

38,

DENVER,

busi-

Big Eouity Month

scheduled,

a

will

He

next

time in the interval.

there

York

with
large nation¬

price and the time

Stock

of

New

St.,

firms

Although
sprinkling

Inc.,
City,

that Frederick Vogell

nounces

wide group of recognized security

and

Denver for many years
formerly an officer of Bos-

ness

Securities,
New York

joined the firm in the trading de¬
partment. Mr. Vogell was previ¬

William

John

Chkonicle)

Laurence

Vogell

130

will

N. Y., the banks' fiscal agent,

Officers

Cruttenden & Co., First National
Bank

Frederick

Eastern

Broadway,

Marx Building,

Criley has become associated with

Jan.

President

The

Feb.

said.

offering

tion

to

on

funds to

$91,-

during 1954.

CSpecial

provide

be made
through Macdonald G. Newcomb,

Holcombe, Jr.

,

has

meeting

Charles
Bell

The

F. J.

puritan

has

$1,000,000 to

|

Scott & Co.

27.

Mr. Maxwell

Banks

$68V00>000

year

to

mortgage loans to farmers.

Inc.,

meetijig scheduled for
January 13 at 12:15 p.m. in the
Georgian Roorr^ of Carson Pirie

Exchange
especially may find them¬
selves a bit pressed from time to
so

ly

and

yet been set,

is slated

that

Crane

to

are

million

of the maturing bonds in mak¬
ing allotments of the new bonds,

Holcombe,

funcj

CHICAGO, Il|—The Investment
Analysts Society of Chicago will
hear J. L. Holli|Way, President of
luncheon

sale

$75.5

ers

for-*

^5 years. He has been active in
...Wholesaling mutual funds since
$948 and wl1* continue to repreThe Crosby Corporation in
caqacity in the East,
Fidelity Fund, whose assets at

Chicago Analysts to Hear

the

of

ner

redeem

be a cash offering.
No
preference will be given to hold¬

part-

a

to

1955,

make

[individuals in the

as

Ad¬

This will

Rut_

and

used

2%% bonds which mature

-

Univer-

sity

&

1

grad¬

a

of

shares.

100

to

by trusts, which also could

The

projected

50
du

additional 2J2,000 shares were

final

up.

the

in

31

Jan.

considerable

tied

Motors

In

"standby" for bank¬

through

that

means

basis.

to
to

shares, with 374,000 shares be ng
taken

.

o

*he beginning of 1954

showlhat

24.
But

were
investors,

odl-lots.

as

Figures
shares
snares

shares

individual

well

sold

were

must make

offering feel

l,02l§000

with

which

taken

of

each

groun to

fcftit develops that

good

than

more

The proceeds of the
be

the security business for the past

tbeliesult

sponsors

mighty

of

stock, bankers

||

An

for

combe,

„

theti^ dealer

A recap of

the

H

S.qi|p Co., 1,300,000- merly

common

Credit

(Jan. 5).

widesfjgossible distribu-. has been in

tion.

ratio

the

share

sub¬

of

Farm

1,

Mr.

...

admonished

the

of

ministration, announced yesterday

will

gers

shares

Service

York.

the
on

well, Jr., Director of Land Bank

Vice-

of consolidated Federal farm loan

tft^ Bulls-Eye
time k>3? the opening of
the fup; public offering

Campbell

farm loan bonds, Thomas A. Max¬

at 111 Broadway,
New

uate

books

J.

wouid have
for their
of such new

uating
At

are

continue to be

cjrrry."

™.L.-

share for the pre¬

a

purd^ases

Frank

been

s

office

providing

issues "for the

that

The 12 Federal Land Banks

Vogell With

making arrangements for a public
offering of consolidated Federal

Stock

among

house^who

of

task

customers'

lative convertible preferred stock,

touched off the parade

largfly

Crosby Corp.

President. His

financing would make its
felt

Exchange

way

quickly without tending to tie-up
underwriting capital.
At the moment things are all

financing

of

a

elected

Tliey calculate that the nature

47

Eastern Securities

h

spell.

a

$106 Million Issue

Fund, announces
Holcombe, Jr.,

equLy offerings j»n "rights" which
will
tie-up
considerable market
capital for

Frederick

BOSTON, Mass. — The Crosby
Corporation,
general distributor
of
Fidelity Fund
and
Puritan

ac¬

as

on

Land Banks Plan

V.-P. of

had

to

month rolls

consequence

F.J. Holcombe, Jr. Now

men¬

of

down

as

is keeping

the situation.

eye on

(103)

THE

BANK

CITY Of NEW YORK

the close of business

and
ness

with

closed at

January 14, 1955

reopened at the opening of busi¬
January 26, 1955 in connection
our

annual shareholders' meet¬

ing to be held on January

25, 1955.

KENNETH C. BELL

Vice President and

Gtshier

43

The Commercial and Financial Chronicle

(104)

Thursday, January 6, 1955

Johnny is kindly toward them.
Anybody who get the idea as a

BUSINESS BUZZ

that

consequence

neither

IFiashington...

knows

assumptions,
to

course

Behind-the-Scene Interpretation*
from the Nation's

Sparkman
nor'

business

is

likely
in for

come

*

due ?

in

some

dis- :

appointment.

And You

Capital

his

what he wants, and acts on such

At

present the powerful Sen- '
Banking Committee is in a

ate

^state of flux, and Sparkman is
U

WASHINGTON. D. C.—Hous¬

ing gives

there

which

in

field

a

promise of being

every

will

peace and quiet during
in contrast with the rest
Washington scene.

1955,
It

with

the

that

doubted

be

may

White House will

come

forward

sweeping proposals
for
new
legislation, and the
Democrats are expected to feel
■

any

need for

ie

things
The

As far

same.

Administration

working out nicely.

are

less-moneythe Housing

inflationary
scheme

down

of

Act

the

the

as

concerned,

is

of

is

1954

No.

be

almost

of the

taking hold, and

Housing Expert

1

of

One

member of the staff of the Sen¬

it

circumstances

the

poorest politics
the Democrats to try to up¬

would
tor

the

set

the

be

trying to

by

applecart

monkey with the Housing Act of
.1954.
Besides,
everybody
is
-ather tired of the dragonfire
noise of the so-called housing
scandals of 1954, scandals which
seemed to go

limp and lose their

about as fast as the
Administration and

stuffings

Capehart (R.

Senator Homer E.

Capitol Hill

on

ladder

the

to

in

Then

particular the Democrats
as some reports would put

plan to carry on their own
housing investigation this year,
"although they have not formally
it,

The

thereon.

resolved

and

met

"watch dogging

a

operation"

in which the staffs of committee

lawyers
in

agencies
clean

on

a

operating

the

with

current basis and

the dirt

off

will keep

experts

and

touch

it appears

as

to the

customary annual fight on pub¬

it

dar

"low

as

before

public hous¬

probably

kind

different

the calen¬

on

cost"

This Will

ing.

fight

of

last

from

different

and

be a
than

in particular.

year

While the nation's most noteil

golfer last year came out for a
of four years of 35,000

program

units
last

still

year

for

pathy

President

the

year,

per

had

sym¬

some

old-fashioned

the

Republicans in Congress and in

granted

particular
to

tion

tenant

his

be

may

Eisenhower

dispensa¬

a

housing

1

No.

from

obeying

date to support

it

the

lieu¬
man¬

This year

same.

different.
Mr,.
probably will lead

Democrats in
Republicans on
this issue, and there is likely to

aggressively

the

their fight with

considerable

be

crimination.

material

noise

and

won't

it

trying to

pad

hepped

the

to

intri¬

so

their

take

couple of

a

like

re¬

make

I

renewal,
on

again comes
as
reported

tell

June
after

the

jump in

some

greenhorns with a pre¬
disposition toward the radically
dangerous notion of getting the

Instead,

out of

to get

dent's objectives

by .which

business.

however,

the

were

Presi¬

a

ness

were

and

would

much

more

do

of

this.




so
a

are

Bookshelf

very

ap¬

be noted.

For

the

Congressional

where the economic

in doubt.

ment increase its involvement in

jor

Airlines

and

Henry Beecken
1333

mone¬

G

As

a

this leaves

consequence

Sparkman

of

Alabama just about the best

in¬

Senator

formed

John

man

housing,

J.

Capital

on

House
are

Banking

endeavor

a

as

of

the

other

way

on

of

of

these

the

tribute

a

to

seasoned

on

the

fact

housing

the government

pay¬

who wrote the Housing Act
their business.

knew

Street,

and Associates
N.W., Washing

What

goes

Were Political Firings

a

general

On

principle it is rated as
good idea, because of the tre¬

cans.

mendous

influence

which

these

bracket officials play in
molding policy.

upper

On the other'

hand, few prin¬
ciples seem to work out much
better than their exceptions.
If
President
fact

been

Eisenhower

interested

had

in

in curtail¬

ing the dependence of the hous¬
ing industry upon government
subsidy, as he tried to kid the
voting suckers in his housing
of last year, the throw¬
out of these bureaucratic

message

ing

stalwarts

would

in

is

sort

these

that
of

have

sounded

the

consults

with its navel rather than

principle, this
town sympathizes with the idea
of "Schedule C" firings, or the
throwing
out
of
upper-paybracket, policy making jobs of
old hands in favor of Republi¬
a

however,
House

with

anybody in or out of Congress
who might be familiar with the
kind of job any individual in
Schedule C was doing.
In par¬
ticular

the

White

House

didn't

bother to heed the wishes of A1

Cole, the top housing official of
the

Federal

Government, who
Fitzpatrick

wanted to keep B. T.
and

not

himself

burden

with

a

greenhorn lame duck. As a mat¬
ter of fact, the White House us¬

ually told

Mr.

Cole

assistants would

is

be,

whom
after

his

side,

drop it.

Democrat, is going to appear as
more

of selected

trial

Spark¬

ton

the

he

good,
often

conservative

on

are

Section, Prince

Wages

if

scrap

of Cali
Calif, (pa

University

Berkeley

4,

Productivity:
rent

Usage
South

701

Even when

hostile

Oakland

Carbondale, 111.
Welfare

Clark

shy.

Critique of Cur
Lewis A. Maver
the Author

ick—Published by

He

seems

A
—

olic

witnesses.

and
—

Avenue

(paper)

Taxation

—

50c.
Colin

Oxford, England

Social

Cath

Guild, 3s. 6d.

W. L. MAXSON CORPORATION
CAPITAL STOCK
CAPITALIZATION:

This is

a

real

330,397

shares Capital Stock

GROWTH Company (Eleetrcnics)
•Earnfnes
Net Earnings

share

per

$3,229,917

$211,364

1951

7 453,98>

614,012

2 28

1952

15,923,380

526,494

1.82

$0.81

1953

Carl Marks

&

Co. Inc

34,377,128

1,085,502

3.54

1S54

37,143,000

1,496,000

4.53

•On

an

increasing number of shares yearly due to stock dividends

Trading Market for Brokers and Dealers
FOREIGN

go

on

Industria

of

We recommend at the market

important

for
week

there

J. W. Gar

—

per) 25 cents.

defers to witnesses.

they

fornia,

side.

He

Indus

—

University, Princeton, N. J

Relations,

the

gives the appearance of
being just the genial, slow,
easy-going southerner.
He is
little disposed
to parade pub¬
licly in committee questioning,
his
excellent
background
on
issues.

Relations

Majo

bibliography

references

barino—Institute

will

He

many

Against

Costs—A

Guaranteed

resolves

doubts, just in case,

SECURITIES

50 BROAD STREET

TEL:

HANOVER 2-0050

•

SPECIALISTS

NEW YORK 4,

LERNER & GO.

N. Y.

TELETYPE NY 1-971

10

15

(paper) 20c.

be convinced that

And he

the 84th Congress gets
Senator John J. Spark¬
the toll, genial, Alabama

increasingly

Medical

Spark¬

than

Haven

New

Insurance

Group

the

Johnny

harm

When

an

con¬

progressive.

of the supple minds

can

Boosts Sparkman

man,

men,

Street,

Conn.

toward

as

given radical proposal will do

more

Chapel

kid¬

doctrinaire.

one

that if he

no

hav¬

ing selected them and promised
them the jobs.

going,

who

leaning

no

has

well

as

Definitely

a

10 copies, $2.00
copies,
$7.50;
100
copies
$10.00—Frederick G. Shull, 200
50

thing, Sparkman

fellow

Currenc

Irredeemable

of

—25c per copy;

around.

servative

man

son

.

ding loves his fellow

man

wrong

cases,

White

As

of

5, D. C.—$20.00 per copy.

French Revolution Inflation—Les

and
economic
Federal policy1 are

genial

a

ton

financial

overall

the

on

another

For

is

It is a ma¬
which contro¬

from

monetary

"liberal"

Skips Consultation

lit¬

legislation.

housing

versies
and

phases

roll

erally hundreds of the complex
features

forum

batted

is

lawyers

the only two men

to

as

come-and-

1954

that

of
committee.

so

housing boom. The

a

this

of

govern¬

get-it terms of the Housing Act
of

chairman

retiring

the

underwrite

the

can

business

consequence

for

Jesse P. Wolcott of Mich¬

Rep.

igan,

housing

success

Hill oil

possibly

except

how

Sales

lo

America

of

Capital Airlines

tary lions perform.

the

studies

financial

circus

and

Industry—Com

prehensive study with detaile

likely head the Con¬
gressional Joint Committee on
the Economic Report, that ring
in

Airline

Domestic

thing, Senator Spark¬

one

will

man

1950

this busi¬

views.)

gentleman whose affairs should

parently

up

government
on

trifle,

a

time their tenures might just be

30,

the lake

coincide with

own

threaten

or

but the re¬
newal,
some
Republican
prayers over the
grave of the
Title
I
phase
(modernization
and repair) of the FHA investiration, is likely to be routine.
Everybody knows fhat a good
many lenders are about ready
ago,

expenses

Figbar?"

He could have hired

sense.

government

replace¬

years

job,

your

building

to

suppliers

Title

to

not

re

pretty housing boom.

the

-

But

difference

much

will

ments

housing

in

which is pretty high
billed

is

but

cost

The web of gov¬

housing finance is

cate

stead

the

will, of course, be

lic housing,

oil

why decisions went this way in¬

Arise

to

■

government, in the opin¬
of Congress of*
activities

re¬

Man's

pro¬

of members

parties.

"Chronicle's"

losses

serious

are

men

interest

greater

foreign relations.

Business

you,

These

banking legislation,
his

of

and may or may not

the

who
have the historical knowledge of

Public Housing

There

lawyer for the

housing

Delaware.

of

(This column is intended to

Home

the CI

choice left-

some

flect the fibehind the scene" inter¬
pretation from the nation's Capital

was

gram.

These

Fight

housing
and

to

charge of

the

in the bureaucratic ears.

because

Fina nc e
make a job for a
Republican lame duck.
Seeing
what was happening to these
high
priced jobs, two others
quit, and really landed in the
hay.
One was Wade Harrison,
general counsel of the Home
Loan Bank Board, and the other
was T. B. "Bert" King, in direct
Agency

Democrats lean toward the idea
of

chief

as

Frear

attention to

in

City

Fitzpatrick

are

The Chairman of the commit¬

climb

to

York

T.

B.

hoisted

and
In

len

state.

both

do not.

left

public

New

ernmental

Will Not Investigate

Below him

wingers, excepting Senator Al- ]

housing legis¬

on

he

before

lation

ion

filled them up again.

Robertson, a Virginian with
usually
conservative
leanings
he
voices
vehemently.:

which

rated

Committee,

Banking

lis

about the best informed man

as

Eisenhower

ind.)

|
(

tee, Senator J. William Fullbright of Arkansas, until 1955
had
paid comparatively
little

ate

Housing and

Under

(

seniority is only Senator A. Wil¬

hold.

are

builders

the

Above him in committee

Washington
political
shop
is
what has happened in. the last
couple of weeks to the govern¬
ment's slable of genuine housing
experts. Virtually every one has
quit, if one includes the de¬
parture recently of
the able
Joseph
McMurray
who as a

buying the
are build¬
ing like fury, and the boom is
beautiful for a politician to be¬
customers

liked.

the

of

curiosities

the

success

houses,

man
who can help much in
straightening out its orientation,
simply because he is so well

Sparkman Becomes

Post Office

Square, Boston, Mass.

Telephone HUbbard 2-1990

Teletype BS-69