The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
ESTABLISHED 1S39
UNIVERSITY
HiGAN
Ret. U. 8. Pat. Office
Volume 180
Number 5342
New York
EDITORIAL
"t If
the
has not
of recent
course
nizing reappraisal" of
had
effect
such
some
ential
international
brought the Administration to
our
a
number in
University of Louisiana
outlook for the remainder of '
the year, Dr. Gile reviews background of present situa¬
tion originating with the depression of the '30s. Finds a
transition from the economics of inflation, and holds
present "inventory"- recession was a long timef in the
making, and was anticipated. Concludes, despite the
1954 economy has many unfavorable aspects, it is far
less vulnerable than that of 1929, but warns of danger
of continued deficit financing. Favors letting the dollar
regain some of its lost purchasing power.
a
private walks. These happenings have
brought from the leader of the Republican party
in
Subse¬
Senate threats of drastic action.
the
quent events seemed to indicate that the Senator
is
no
a
bit of
longer
so
vigorously
on
the warpath. It took
plain speaking by the President and the
Secretary of State to achieve this result, however,
and
more
had
world
After 12 years of war and
rather
in the nature of
say
about the
seems
to us, less
sharp things to
situation—although,
a
so
it
some
of the commentators
appeared to be¬
that
the
beginning
of wisdom in
the
current
at
The
length the shameless record of the regime
perhaps we should say the regimes
in Russia. He took pains, too, to call attention to
some of the tenets of the Communists as exempli¬
evitability of eternal conflict between commuContinued
on
page
uncertain
now
may
A
!
Dr.
Bueford M. Gile
results
not
tne
would be ineffective in getting anything
6n
specific
—
Underwriters,
the
or
them
about
The
abstruse.
that
facts
are
Government—Is It
World
Is
Really Feasible?
Desirable?
It
Is the notion of
world
by
either
on
the affairs of the whole
of individuals or countries
desirable? The subject is, unfor¬
trying to
practicable
some
run
group
one
or
an aura of religious sentia strength in
the minds of
excellent people, which it does not at all deserve.
us lay this aside for a while.
tunately,
surrounded with
which gives it
mentalism
existing
many
Let
Why should
with
vested
has
of classical
helps
some
such
one
vast
or
Bible
political entity or creation be
Nothing of the sort
authority?
been successful
ever
in the past.
times
were
The great empires
failures.
end
the
by
Momentous
page
Since
what
changes have
nations
becoming
Sweden
18
Separations and Changes
the founding
of
been
our
separate
parted company in
and
dealers and investors
in
the
distinct!
1905 much
as
direction
Norway
of
and
Holland and
Continue don page 32
>
.
government, in 1789,
own
witnessed
in cor-
with the SEC
"Securities in Registration" Section, starting on page 34.
of issues now registered
porate securities are afforded a complete picture
undertakings in
nothing
have
they
learned
well known.
and
SECURITIES NOW IN REGISTRATION
form;
the
of
savors
and
the
actions
Continued
coupled with the inability
part of the interested powers to agree on some
brief
very
political community will be, but it does
not
provide any special power for forecasting spe¬
cifically what these future actions will be. In spite of
its limitations, the old custom of peering into the future
on
the basis of past trends and present conditions
business
the
done.
satisfactory line of action thereon, suggest some thoughts
on the
whole plan of world government.
These are in
foreseeable
what
understand
of
29
and potential
or
or congress
to
arise in the future.
knowledge of economics
to
one
in Russia—or
fied in Moscow. The familiar doctrine of the in¬
all of
not
central parliament
any
The troubles in Indo-China,
pertinent facts are known and new
developments which might have im¬
pacts on the economy and which are
Speaker then proceeded to review
some
anyone
;
Stresses
to ade¬
quately represent hundreds of millions of people cover¬
ing the whole globe, and concludes, a world congress
inability of
face the future, it is
for
true because
and the remainder of the non-Communist world
faced.
we
;
as
family which is opposed to political union.
an
economic. goods
of
As
evidence the
Notes revival of
Cites
been successful.
ever
of great world empires.
up
*,
nationalism and fundamental differences in the human
foretell
with certainty whether we will ex¬
perience a mild recession, a deep
depression or even further inflation
during the coming decade. This is
struggle between communism and the remainder
of the world consisted in a thorough understand¬
ing of the nature of the problems by which we
are
terms
impossible
Representative Martin who said in effect
was
inflation,
services.
lieve at the time.
It
break
basement of the medium of exchange
criticism of the Administration
in
than
this kind has
important chal¬
lenge facing us as a nation is whether we can maintain
a
reasonable measure of stability in the over-all level
of employment and real income, without the continuance
of deficit financing and further de¬
recently the Speaker of the House has
some
In posing the question, "Is world government feasible
and desirable?"' Mr. Robertson points out nothing of
In surveying the economic
number of influ¬
people in public life—and quite possibly
Member of New York Bar
Head, Department of Agricultural Economics,
foreign policy, it has
upon
By WILLIAM A. ROBERTSON
By BUEFORD M. GILE
"ago¬
Copy
And World Government
Conditions in 1954
events
an
a
On Internationalism
A Look Into Economic
As We See It
H
Price 40 Cents
7, N. Y., Thursday, July 15, 1954
our
State and
*★★★★★
★
U. S. Government,
State and
-
MARKETS
ALL
Municipal
ON
I
CALL *
ONE
STATE
«m
MUNICIPAL
Established 1850
H. Hentz & Co,
Securities
Complete Brokerage Service
U. S. Government
telephone:
IIAnover 2-3700
—
State and Revenue Bonds
AU Corporate & Foreign
Bonds
bank & trust
MABON & CO.
company
and
*
THE NATIONAL CITY BANK
BeU Syitem
Teletype NY 1-2152
Bond Dept. Teletype: NY 1-708
99
v
WALL
To
NEW YORK
5, N. Y.
Active
Dealers,
STREET
to Our
•
•
•
N. Y.
CHASE
THE
Pittsburgh
Coral Gables
Beverly Hills, Gal.
Geneva, Switzerland
NATIONAL BANK
Of THE CITY OF NEW
YORK
Maintained
Markets
Banks
and
Brokers
CANADIAN
CANADIAN
Customers
SECURITIES
Commission
Canadian
T.L.Watson &.Co.
sugar
Detroit
Bond Department
Bldg.
Amsterdam, Holland
Net
122 Years of Service
•
Miami Beach
*******
LAMB0RN & CO., Inc.
Exchange
Exchanges
other
Hollywood, Fla.
RE 2-2820
Trade
N. Y. Cotton Exchange
Chicago
OF NEW YORK
Members N. Y. and Amer. Stock Exchs.
Broadway, N. Y. 6
of
I
Inc.
Exchange,
Board
NEW YORK 4,
Sixty Years of Brokerage Service
115
Exchange
New Orleans Cotton
^
Preferred and Common Stocks
Bonds
Exchange
Commodity
Chicago
Chemical
Stock
York
New
Exchange
Stock
Cotton
American
BONDS
Municipal, *
Municipal
Members
York
New
Orders
Executed
BONDS & STOCKS
Arkansas Western
Gas
Company
COMMON
On All
Exchanges At Regular Rates
CANADIAN DEPARTMENT
i>
Raw
—
Refined
—
Liquid
Exports—Im ports—Futures
American Stock Exchange
Y.
50 BROADWAY, N.
/
DIgty 4-2727
BRIDGEPORT
PERTH AMBOY
Pomduoji Securities
Teletype NY 1-2270
Members N. Y. Stock Exchange
DIRECT
WIRES TO MONTREAL AND
Goodbody
TORONTO
Co.
MEMBERS NEW YORK STOCK EXCHANGE
115 BROADWAY
NEW
1 ItORTH LA SALLE ST.
CHICAGO
YORK
\
6rp0rati07!
40 Exchange Place,
New York b, N. Y«
IRA HAUPT & CO.
Members New
and
Broadway, N. Y. 6
WOrth 4-6000
Teletype NY 1-702-3
WHitehall 4-8161
Boston
York Stock Exchange
other Principal Exchanges
111
Teletype NY 1-2708
Telephone:
Enterprise
1820
2
The Commercial and Financial
(206)
Chronicle.Thursday, July 15, 1954
I
The
Leading Banks
Security I Like Best
a continuous forum in which, each week,
a different group of experts
advisory field from all sections of the country
in the investment and
and
Trust
participate and give their
for favoring
reasons
(The articles contained in this forum
Companies
they to be regarded,
are
Electronics
proach
Senior Partner, Lober Brothers & Co.,
New York City
Quarterly
request
Within
the
witnessed
discovery
and
not
are
the
revolution
of
120
New York
Broadway,
the
point
like to
5
Teletype NY 1-583 and NY 1-40
OFFICE:
BOSTON
Direct
Hi
State
and
Wires
Private
achievements
(No.
The
and
Philadelphia, Providence
Houston,
the science
of Electronics.
to
Hartford,
Boston, Chicago, Cleveland,
inter¬
in these
dynamic
ing
United
has given rise
Specialists in
to
Louis
multitude of
a
strange words which
in the diction¬
Suppose
take
we
Mc Donnell & To.
York
American
120
Stock
Exchange
Stock
Excnange
BROADWAY, NEW YORK 5
TEI.
REctor
mind.
2-7815
Troding Interest In
American Furniture
tljiis
Commonwealth Natural Gas
Dan River Mills
Life Insurance Co.
of Va.
In
Lynchburg, Va.
LD
39
them, intricate mathematical
problems, which would take the
human mind days or months to
solve, can be solved in minutes.
Some types of computers, among
other functions, collate data such
as
inventories, goods in process,
This combined data
basis at
a
or
furnish
can
COMMON
STOCK
Members:
Midwest
Detroit
Stock
of
types
dollar
machine
computers
lent
more
unerringly
take
us
at
Stock
Exchange
Exchange
DETROIT 26, MICH.
Branch
Office—Bay
City,
Mich.
making
in
of
operation
an
automatic.
We
have
small
a
but
the
or
for
development
complicated
more
operations became feasible. I read
that the Ford Motor Co. is
spend¬
ing $200
million
motor .block
electronic
an
530
for
cutting
unit that
chines
plant there is
unit
that
and
There is
automation.
three
minutes
20
viously,
production
hours and the cost
same
and
most
for Information
electronics
television,
This
is
in
itself.
TV
lion
There
are
receivers
it
million
sets.
estimate
Members
New
York
Stock
Exchange
25 Broad St., New York
4, N. Y.
Phone: HA 2-9766
Tele. NY 1-3222
31
sets
new
can
about
be
the
than 50
experts
7V2
million
absorbed
annu¬
ally.
known
tronics
the
applications
would
space
take
available to
of
to
seem
International
was
a
Tele¬
number of for¬
& Telegraph Co.
Since
(IT) has achieved phenome¬
nal growth:
out
into
having also branched
diversified
manufactur¬
ing and research.
There
me
Switzerland.
are
All
of
these
completely modern.
Telephone
Co.
Four of its subscribers have
total
stated
of
preferred
value
stock
of
a
of
$11,130,000 out¬
standing in the hands of the pub¬
Stockholders of (IT) number
about 57,000.
lic.
In
1953,
the
10
the
IV? and
years,
stock
from
1944
to
at
low
of
sold
a
high of 33.
Earnings for the year 1953 were
$22,377,611, or $3.12 per share. Of
a
amount
the
parent
its
for $1.63
Book
per
value
share
domestic
of
but
descriptions would still be incom¬
mnst
plete.
"Know-How"
the
the
important
per
divisions,
share.
is
$45
corporation's
assets
and
comoany,
stock
its
or
write
current
publications
Japanese securities
Yamaichi
Securities
plants
Co., Ltd.
Established
The Cuba
owned
is
our
on
Home
equally
Office
Brokers
v
with American Telephone & Tele¬
Co.
111
&
1897
Tokyo—70 Branches
Investment
Bankers
Broadway,N.Y.6 COrtlandt 7-5680
(IT)
its associate,
and
46V2% of Telephone de Mex¬
own
stock. Through the
Nippon Co. (IT) also has impor¬
tant Japanese
interests.
In the
United States its plants and lab¬
common
oratories
piifton
located
are
at
Passaic,
and
the
Capehart
Tennessee Gas
Transmission
Nutley,
N.
J.
The
of
worth
division
Ind.
Kellog Switchboard Di¬
is located at Chicago, 111.
-
Fames-
Fort
at
is
Wayne,
Texas Eastern
Transmission
The
The
Division
Coolerator
at Duluth,
cated
the
lo¬
is
Texas Gas Transmission
Minn.
annual
recent
meeting
of
Transcontinental
stockholders, Col. Behn, Chair¬
of the Board, stated that the
employees of the system number
about
96,000,
which
will
give
some
idea of the scope of (IT's)
man
Gas Pipe Line
Bought
operations.
—
Sold
The
principal products manu¬
factured by the International Tel¬
ephone & Telegraph System are,
to:
Burnham and Company
Members New York Stock Exchange
y
Wire Communication Systems—
Automatic
office
manual
and
telephone
equipment,
anfj
ROBERT W. PAYNE,
Unlisted
telegraph
and
are
its
technical
Trading Dept.
☆
inter¬
15 Broad Street,
systems, carrier
fpiegraoh systems,
carrier
Manager
central
telephone sets,
Power-line
cvstem^.
New York 5
Teletype
Telephone
tele¬
NY 1-2262
Dlgby 4-1680
printers and facsimile equipment,
Coaxial
conductor
cable
carrier
systems,-Multiand telephone
cables.
Specialists in
Radio
Communication
—Telephone and
transmitters
radio
and
Systems
broadcast
studio
LOW-PRICED
equip¬
microwave radio relay
links, radio point-to-point equip¬
mobile radio systems, air
navigational systems,marine navi¬
gational equipment, high gain
URANIUM STOCKS
-
Inquiries Invited
an¬
tennae.
Components
Vacuum tubes,
picture tubes, selenium rectifiers,
transistors and diodes, condensers,
fractional motors, loud speakers,
WELLINGTON HUNTER
ASSOCIATES
15
Exchange PL, Jersey City 2, N. J.
HEnderson
etc.
Other
tems,
a
accounted
and the
Call
for
located
Britain, Italy, Netherlands, Nor¬
way, Portugal, Spain, Sweden and
lion.
including
times
is
laboratories
or
Australia, Austria,
Belgium, Brazil, Canada, Chile,
Denmark, France, Germany, Great
and
of
many
in Japan
the
in
—
7,176,677 shares all
of one class outstanding and the
company
has a funded debt- of
$22 million. Twelve of the com¬
pany's subsidiaries have a total
are
in detail
elec¬
outlets
ment,
this
To go on and describe
the
branch offices
our
Opportunities
ment,
then
<
to
Investment
of
Cable & Radio
Argentina,
ephone
mil¬
that
more
Thereafter,
that
in
eign telephone companies that it
acquired from the American Tel¬
in 'the
use
estimated
is
country will absorb
QflpmAeinwi &
Its nucleus
is
wires
☆
way
opportunity for
growth of the
Electronic Industry.
The thumb¬
nail sketch appearing below will,
I hope, prove informative.
(IT) was incorporated in 1920.
United States and in three to five
years
my
an
business
a
now
in
plants
as
the
common¬
with
Direct
principal cities of the world. One
or
more
of
its
manufacturing
long-term debt of about $34 mil¬
contact
sales
maintains,
<AiPnVinno
believe
from
$1,200 for
NY 1-1557
Birmingham, Ala,
Mobile, Ala.
annum.
58.17%
controls
it
communication
offers
part.
Oui> visible
place
A stock, that to
profit
56
was
en¬
San Francisco.
stock
seconds
time
was
per
Exchange
Exchange:
St., New York 6, N. Y.
HAnover 2-0700
Corp.; it operates 32 manufactur¬
being
phone & Telegraph Company (IT)
ma¬
in
Ask
I
cost of 90 cents, whereas pre¬
the
—
years.
automatically.
and
and
reflect,
marketwise, the great strides that
Ihp company has made in recent
the Thompson Products
Co.,
Cleveland, an automatic machine
produces a certain jet engine part
a
domestic
market
thinking, doesn't
At
at
Successor Companies
(6)
opera¬
checks, balances and
crankshafts
ready
a
cinnati and
electronic
an
its
York, London, Ha¬
Boston, Philadelphia, Los
Angeles, Detroit, Pittsburgh, Cin¬
performs
drilling
also
in
ba^is
vana,
process
doing
a
long
Rector
ing companies in 19 countries and
rating.
traded in New
than
countries;
At
(5) A company whose stock
op¬
applied
been
way
with
electronics,
in
I. G. FARBEN
credit
joys
another word
This is
share
per
stock of American
vision
(4) A company constantly car¬
rying on research on a world¬
humans.
let
$1
Stock
a
New Orleans, La. -
plant
A company whose products
all phases of the electronic
a
automa¬
can
tically energize manufacturing
tions.
1051 Penobscot
Building
here
(3) A company with good earn¬
ings, good finances and an excel¬
buying trends and other produc¬
information to
give an answer in 20 minutes that
At its
MORELAND & CO.
both
field
field.
tion— scheduling
time,
L A. DARLING GO.
&
foreign laboratories.
this
QUOTED
segment
a
abroad.
cover
Louisville to do just that—"Digest
to
SOLD
electronic
ing
million
be
cannot
York
American Stock
is presently paying at the
(IT)
rate of
ico
wide
Now,
—
covered only
The General Electric Co. is build¬
a
These
translated into book figures.
graph
industry.
the
(2)
given moment for pro¬
merchandising control.
New
Members
organization.
a
& CO-
L. M. Ericsson, Ltd., Sweden, each
International
and
dealers shelves, etc.
on
Members
com¬
in
are
n
19
more
With
—AUTOMATION.
BOUGHT
also
(1) A Well seasoned company
with about 34 years of experience
erations
TWX LY 77
I
Telephone
Telegraph Co. (IT) I found:,
formerly took three weeks." Other
STRADER,TAYLOR&CO.,ln&
very
single
seasoned.
too
or
of the
human
These
computer.
duction
Camp Manufacturing
the
is
made for single or multi-purposes.
in transit,
Bassett Furniture Industries
of
An example is the modern
electronic
Members
New
functions
for
reading;
not
less,
or
is the art that substitutes mechan¬
ics
which
highly successful
panies but they specialized,
these words—CYBERNETICS—
pronounced (sigh-bur-netics)
Technology
on
found other
of
one
series
a
Employment)
were
not yet appear
do
aries.
Since 1917,
own;
composed of
;
.
Rights & Scrip
its
of
Lober
.
language
a
of
1
the
in
copies
of
which
are
available,iV gratis,
upon request to the Council.
In casting about for a medium
through which to profit from the
growing
electronic
I
industry,
found a number of companies that
were
doing very well but which
Electron¬
industry
ics
Picker"
interesting
ever-expand¬
a_
dTEINER, ROUSE
otrj
egraph Corp. (IT) owns and oper¬
ates telephone, telegraph and ra¬
dio communications systems in 22
"Cottin Gin" and the "Mechanical
States, gave rise to the same mis¬
givings. Incidentally, The Coun¬
cil
for
Technological Advance¬
ment, 120 So. La Salle St., Chi¬
cago, has issued a 24-page booklet
in
Street
\ird&e
Quoted
International Telephone & Tel¬
of
Cotton
woven
rd
President, Charles
& Co., Philadelphia,
"Spinning Jenny" and the "Steam
in England and of the
Inti¬
mately
Taggart,
Bought—Sold
Charles
—
the
introduction
the
mastery of the
WOrth 4-2300
BArclay 7-5660
A.
A. Taggart
Co.
will
..
reducing
atom.
Exchange
American-Marietta
It
in¬
Lamp."
Railroad"
Member
Stock
Louisiana Securities
Tele¬
appreciated.
yet
affect
that
out
dio, airplane,
television
ap¬
revolution, the scope and
misgivings as
ployment, I would
ap^
of scientific principles
that have given us, among other
things, the ra¬
1920
nearest
To those with
to the affect on em¬
plication
Corporation
Associate
&
Partner, Lober Bros. & Co., New
City. (Page 2)
drudgery in labor.
have
we
the
industrial
have
lifetime
our
is
"Aladdin's
to
future
This
New York Hanseatic
American
Telephone
Co.—Louis Lober. Senior
graph
affect of which in the immediate
International Tel. & Tel. Co.
Established
International
to
has induced the stirrings of an
dustrial
Members, New York Stock and
American Stock Exchanges and
Chicago Board of Trade
Comparison
on
Alabama &
York
of New York
Available
particular security.
a
intended
not
are
Week's
Participants and
Their Selections
be, nor
offer to 6ell the securities discussed.)
as an
LOUIS LOBER
.
89th Consecutive
This
Forum
t»
Products
cable,
—
Power
pneumatic
high
wire
tube
Teletype J Cy 698
WOrth 2-4578-9
sys¬
welding
addresssys¬
public
tems, railway and power control
signalling equipment, special elec¬
tronic systems and computers.
Consumer
Products—Home tel¬
and
radio
receivers, tele¬
vision for industry, radio-phono¬
graphs, refrigerators, home free¬
electric
zers.
•
freouency
equipment,
evision
5-6005
Direct N. Y. Phones:
ranges,
Over-the-Counter
Quotation Services
for 40 Years
air
room
conditioners.
(IT)
hard
has
passed
limes
management
but
through
due
and
to
its
some
National Quotation Bureau
good
particularly
Incorporated
to
Established 1913
the vis^n and competence of Col.
Behn, Chairman of the Board, the
46 Front Street
CHICAGO
Continued
on
page
39
New
SAN
York4, N.Y.
FRANCISCO
Number 5342
[Volume 180
...
The Commercial and Financial Chronicle
(207)
1954 Economic Outlook
INDEX
In Western
Europe
A
Lock
Into
Economic
llCHTtllSTflfl
"
Articles and News
$
Page
i
AND COMPANY
1954
Conditions in
By HOMER D. WHEATON
—Bueford
M.
1
Gile
HIT AND RUN
Cover
-
Clayton & Wheaton, Investment Advisers, New York City
Holding Western Europe can be justly proud of her match¬
less recovery, Mr. Wheaton, reporting on his annual tour of
the region, points out indications of economic vitality there.
Says war has taught Europe importance of cooperation in
financial, economic and political matters, and that con¬
vertibility of European currencies is approaching. Discusses
political situation, which, he says, is clouded by France's
splintered and indecisive politics! and conflicting statements
of U. S. policy. Indicates the uneasy stalemate along the Iron
Curtain is likely to continue, but in the world struggle, free
nations have suffered only a slight loss during past year.
When
the
Western
menced
in
restore
the
of
beauty,
renity/
ma¬
purpose,
Marshall Plan
own
other-
and
Hit
Cover
Robertson
living
good
Outlook
Economic
in
Western
Europe
Drugs from Detroit—Ira U.
STREET, NEW YORK
Telephone: WHitehall 4-6551
5
Corporate Money Management—Kenneth W. Fraser
99 WALL
6
Only
Free Market for Gold Will
a
Save the Nation
Giant Portland Cement
1
—Reid
7
Taylor
Pioneering and Progress in Color TV—Arch H. Robb__
Hycon Manufacturing
9
and
Currency Convertibility Can Be Achieved—Kenneth C. Tiffany 11
Keystone Portland
se¬
Cement
13
a
much remains
might
Coal Industry Must Not Rely on Government to Solve Its
MAGNOLIA PARK
Problems—Felix E. Wormser
,,
Sound and Unsound Social
15
'•
;
/■ "
;
;
'
,
r-i
'
6s
are
phenominal,
especially
co nsidering
the handicap
in
Germany
and,
Indo-China
Americans should
miracle
not
re¬
unilateral
former
EPU
ap¬
demonstrating what united action
of the
the
and
Schuman
Plan
are
outward
homes, modern factories rise upon
the ruins, and slowly the gaping
holes and charred buildings dis¬
appear.
Indications of economic vitality
nations'
foreign
fine augury for
positions
the future.
are
amply stocked, and peo¬
ple now look well-dressed and
self-confident; savings mount and
so do security prices; mechanical
television
commonplace,
sets
and
tractors and modern agricultural
and
becoming
equipment
are
less
rare
than
formerly. Another indication of
prosperity is that fact that Euro¬
years
where
Gearhart &
Eaton's Contribution to Canada's Economic
10
Curtiss Grove Reports on Economic Conditions in Far East—
74
10
John
F.
Construction
Outlays
in
Reilly, Manager
Trading Dept.
Economic Disaster 12
Telephone
Teletype
WHitehall 3-2900
S. Holden and W. A. Clarke Forecast Peak
Thomas
Otis, Inc.
Trinity Place, New York 6
Unlisted
Harold E. Barton Cites Forces Pointing to
NY 1-576
17
1954
Regular Features
STANDARD
As We
See It
(Editorial)
Cover
URANIUM
Convertibility of European cur¬
under study for several
years,
is evidently approaching,
though its advent may carry some
realignments of rates which will
not everywhere be relished.
rencies,
Bank
Stocks
and Insurance
26
Coming Events in Investment Field
LISBON URANIUM
40
Business Man's Bookshelf
FEDERAL URANIUM
GIVEN
8
MANUFACTURING*
Recommendations
Investment
Dealer-Broker
8
HYCON*
Einzig—-"Competition: Communist
Capitalist Nations"
17
From Washington Ahead of the News—Carlisle Bargeron
13
Indications of Current Business Activity
31
vs.
H.
&
B.
AMERICAN
MACHINE
*
Literature
on
We viaintain trading
Mutual
"run" on it. Owing
to the proximity of England and
Western
Europe to the Russian
News About Banks
Request.
markets in mora
28
._
than 250 over'tlie-counter securities
26
Funds
plete convertibility might bring a
Singer, Bean
catastrophic
military forces
themselves
now
as
by
their
moving
North
like
havens
to
sets
as¬
Bankers
and
Observations—A.
Wilfred
May
5
Our
Reporter
Governments
33
Our
Reporter's Report
Public
on
L
*
Securities
Utility
&
mackie, Inc.
HA 2-0270
40 Exchange PL, N. Y. G
Teletype NY 1-1825 & NY 1-1826
38
33
!
Railroad Securities
19
Securities Now in Registration
34
and
South America. As it is obviously
Hycon Mfg. Co.
'
i
Lithium Corp.
impossible for such transfers to be
made
on
a
great scale without a
monetary collapse in England and
Western
sumed
Europe,
the
it
be
the
in
na¬
selves
of
power
to
37
Piasecki
Corner
27
...
Helicopter Corp.
as¬
may
authorities
Security Offerings
Prospective
Securities Salesman's
The Market
.
.
.
and
You—By Wallace Streete
tions involved will not strip
them¬
control such
traveling more than in flights of
capital, if necessary.
past. Holland, for instance,
Near-term convertibility is likemoney goes a long way, is
14
The Security I Like Best
2
Reeves-Ely Lab. Inc.
Preferred & Common
are
Continued
the focus of attention from neigh¬
on
page
22
The State of Trade and Industry.
Rohr Aircraft
Published Twice
For many years we
have
specialized in
Members New York
Stock Exchange
Boston
I
•
Gardens, London,
c/o Edwards & Smith.
Drapers'
FINANCIAL CHRONICLE
E.
C.,
Eng¬
Temco Aircraft
Corp.
Park
•
Chicago
•
Nashville
•
TELETYPE N. Y. 1-5
Glens Falls
•
Schenectady
•
Worcester
DANA
Place,
REctor
COMPANY, Publishers
New York
2-9570
to
7,
N.
DANA
SEIBERT,
Thursday, July 15,
Every Thursday
1954
HI.
i
Countries,
$55.00 per
Other
ad¬
135 South La Salle St.,
(Telephone STate 24)643);
Offices:
W" V. FRANKEL & CO.
Rates
INCORPORATED
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Subscription
President
(general news
second-class matter Febru¬
as
the post office at New
York, N. Y„ under the Act of March 8,1879.
25,
Y.
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HERBERT D. SEIBERT, Editor & Publisher
WILLIAM
Company
i
Reentered
Reg. U. S. Patent Office
ST., NEW YORK 4, N. Y.
TELEPHONE HAnover 24300
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1
land,
ary
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•
Weekly
Copyright 1954 by William B. Dana
PREFERRED STOCKS
25
Albany
40
COMMERCIAL and
WILLIAM B.
25 BROAD
5
Washington and You___
The
,
8
a
deployed,
abound:
busy
Channel
ports— the
possibility of a new war is on
their docks no longer blown to
everybody's mind. There is, there¬
pieces — welcome ships from all fore, great unlying pressure, ready
tb>e world; the fast-flowing Rhine to burst out on a moment's notice,
is full of barges and sightseeing
upon owners
of property, espe¬
steamers; trains are crowded and
cially holders of transferable bank
so
are
highways on a holiday; balances and
securities, to protect
peans
1—
Development
accomplish to every partici¬
benefit. This merging of
interests
and
understanding
of
signs of Europe's vigor? The most
France, for example, may have to
impressive are the new homes and devalue once
again, this time in
buildings replacing those demol¬ the
neighborhood of 15% to 20%,
ished or gutted by bombing or
while England's currency might
shell fire. Many cities, especially
advance by 5% to 10%. Further¬
in Germany, still show marks of
more,
sterling, with its world¬
devastation, but each month the wide
function, is not likely to be
wounds heal a little more. Hand¬
freed entirely, for in the event of
some
apartment houses, trim a future international scare, com¬
are
Billion Capital Outlay...
4
pant's
recovery.
some
refrigerators
Business Conditions.™
can
despair, bitterness and dislocation
of the early post-war years,
Europe can be justifiably proud of
are
Lauds Cyrus
on
probability of tommorrow, but
a
long struggle of the war, and the
stores
Gas Industry Plans $4
Common
Bought—Sold—Quoted
H*
'
*■
Congressman Wolcott Optimistic
ac¬
tions, often selfish and narrow.
integrated
Europe,
on
the
order of the United States, is not
earnestly sought to aid. After the
are
to
fail to
and praise this modern
in which our part, vital
matchless
tend
We
it was, is dwarfed by the ac¬
complishments of those
we
so
What
now
t'
one
war.
as
her
—
new
An
in
France, of the financial burden of
preciate
a
the
place
Homer D. Wheaton
intransigence,
French
say
conferences
and
and Austria of
the
attitude
new
spirit — has
arisen. Efforts are being made in
every direction to link national
endeavors
to
the well-being
of
Europe as a whole. Discussions
done,
Russian
1945
—
/. »'
,
Security Amendments—Asa V. Call 16 1
or
Since
be
with
••••./
Obsolete Securities Dept.
4
Cobleigh
Puerto Rico: Political Hybrid—A. Wilfred May
whether in financial,
political
matters.
way,
economic
to
mad
cash!
3
Wheaton
—Homer D.
jackpot with
obsoletes.
like
"
Businessmen Must Help School Teachers—Roger W. Babson__
grants. Though
the results
our
your
our
significant also that the
war has taught Europe the impor¬
tance of cooperation. Before 1939,
each country was inclined.to go its
the
under
Government
is
It
goods
and
World
Run
1954
bors who find her prices attrac¬
tive, while Switzerland, the pol¬
ished diamond of Europe, repre¬
few sents to tourists the ne plus ultra
aided by mon¬
ey
A.
and
national
jor part of
their
—William
com¬
their
life. They have achieved in a
years
Internationalism
1945,
once
ended
war
Europeans at
to
On
Bank
and
$33.00 per year.
Note—On
Publication
Monthly,
(Foreign postage extra.) „
Quotation Record
account
—
of the fluctuations in
remittances for for¬
eign subscriptions and advertisements must
the rate of exchange,
be
made
In
New
York funds.
Direct
Wire to
PLEDGER & COMPANY,
LOS ANGELES
INC.,
4
The Commercial and Financial
Chronicle...
(208)
:
'
•
..
.1
•
\ '
■'
1
•
for
Drugs from Detroit
As you
the
A therapeutic
offered
merchandisers
in
10
separate
of drugs, surg¬
(1946),
and,
Chloromycetin,
ical
products
ment for
and
kinds
biotics,
-
biological
products
started
out
Detroit,
renowned,
standard
treat¬
of
family called Staphylococcus. All
these, plus an assortment of peni¬
cillins and
vitamins, a total of
in
way
in
back
most
typhoid fever and many
typhus, and powerful
palladin against an insidious germ
dressings,
anti
1862,
700 diverse products, make
the arsenal PDC has assembled
over
decades before
the
Fords,
Chryslers and
U.
Cobleigh
cure
their
tion
transportation
the
in
remedies
revolu¬
didn't
when
seem
Dr,
opened
and
treatment
and
and enlarged, and, since 1951, two
S.,
buildings have been added
house, respectively, the Prod¬
to
significant
P.
ucts
Duffield
Development
and
drug store in Detroit in
1862;
him in 1866
bols you've noticed must stand for
when Harvey Parke joined
or when, with George
Davis added, a manufacturing
S.
Perhaps
this
Parke,
so,
was
Davis
&
Company; and
enterprise, since
this distinguished
1878, through four
wars
and
I've
catalog
it
little
a
of
sym¬
overdone
pharmacy but, if
only
was
to show
medical
many
on
how
PDC
fronts
has
been waging war; and to delineate
for devotees of corporate research
seven
depressions has grown, prospered
and
paid dividends without in¬
terruption
to
its
shareholders.
truly remarkable record of cre¬
ating and merchandising effective
That's quite
medicants.
record, particularly
consider that the entire
when you
growth,
from
scratch
to
The
com¬
a
grossing well over $100 mil¬
annually, has been financed
by retained earnings.
In an era
all
porate
kinds
debt
and
sorts
financing
of
goal
line
company
still
Davis
common
stock, trading
on
Toda^
NYSE
•
Company's Success Factors
Three
about
major
factors stand
out
Davis.
First is its
the quality of its
products, built up, and sustained,
over nearly a century of business
life.
for
This
tradition
for
excel¬
lence must be regarded as a fun¬
damental
ingredient
in
Parke,
Davis
bandied
days,
and
especially
before
of
crop
started
many
of
staff
U.
and
new
drugs.
these
ment
even
in
$10
million
variety.
The
been
replaced
Here's
an
has
an
in
1875
current
with
paid
through the
dends!
to
sum
make
as
million
retained
stock
of
of
earnings
the
busi¬
types of financing
ick.
In
million and
to
peak
the
it
Has it
its
of
$1.40
less
passed
three
clared
Much
the
good
as
far
a
continue
to
re¬
bring
due course, new potent
profitable
pharmaceuticals.
has
rewarded
Parke,
dividends,
apparently
present
little
better
net
working
$46 million re¬
above
of
the
a
and
plenty of capacity to pay
dividends, even if, perchance,
they
not earned in full. Cash
were
dividends
in
years
have
been
paid for 76
row.
a
for
products designed to
lengthen life, to restore and im¬
prove health. These are the prod¬
ucts
in
the
which
do
creation
PDC
prospered.
has
and
sale
pioneered
of
and
should continue
It
to
It has the necessary man¬
so.
long-term
and
resources
is
no
reason
bearishness
the
on
part of the 24,000 stockholders of
PDC—not
long
so
as drugs from
display, so ex¬
tensively
and
effectively,
the
Parke, Davis and Company label.
Detroit to Durban
Garr & Go. Admits
WALNUT 0316
»
"
LONG
DISTANCE 421
for
nual
Indicators"
second
of
quarter
consumption
of
rate)
show
ex¬
$231.5 billion (an¬
the highest on
were
record, reflecting improved living
the
for
American
peo¬
ple. Retail sales in June increased
62
May.
over
DETROIT, Mich.—Carr &
Co.,
Building, has announced
that Vinton E.
Jones, Peter S. Lo¬
Wade Sloane and Charles P.
White have been admitted to gen¬
gan,
million
months.
Non
in
the
last
four
agricultural
-
em¬
ployment went
firm, which
was
formerly
located at 766 Penobscot
Building,
is now established in its new air-
offices at 400
Penob¬
followed
and
Carr, senior partner,
announced
into
The
that
a
the-firm
major
admission
is
expansion
of
Jone?,
Logan, Sloane, and White is the
step :in
this
All
had
direction,
he
largest
of
the
previous
securities
new
partners
experience
business
and
in
are
known in the financial field.
:
i.
have
in
credit
single
any
testi¬
policy
have
ease,
year
sustained
con¬
sumer
spending and investment
during the period when govern¬
ment
purchases
of
goods
and
for
defense
have
been
declining.
The pending housing
legislation soon to be enacted will
provide further stimulation to
private home building. The dy¬
namic
highly encouraging.
from
the
only
lows
earlier
in
the
Unemployment
increased
few thousand, which was
a
less
than the expected sea¬
increase that usually ac¬
sonal
schools
the
in
graduations
June.
The
from
work-week
increased from 39.3 hours to 39.6
hours
between
further
May
reflecting
and
June,
improved
eco¬
nomic trends.
"Average hourly earnings in
manufacturing for June were
$1.81; an all-time high. Average
weekly earnings in all manufac¬
turing was $71.68, exceeded only
in October, 1953.
points
during
the
month for which
"Business
second
we
most
in
adjusted
annual
of
response
the
our
government's
economy
program
is
'
"The
record
of this Congress
particularly noteworthy.
The
President's economic program
is
will
be
in
enacted
all
its
essen¬
tials.
Additional stimulating pro¬
grams have been initiated by the
Congress, such
excise tax cuts
as
and authorizations for
expanded
highway
large and
a
construction
program.".
SALE JULY 28th, 1954
s
*
'
.
Clark
t
!
'
i
County Educational
School District No. 2
Las
have data.
quarter declined at
sonally
to
recent
inventories
ac¬
—
active policy of
an
sal
Vegas, Nevada
the
a
Estimated Population
sea¬
of
rate
65,000
billion, reflecting high
consumption and the re¬
adjustment that was
necessary
$5
over
1954 Assessed Valuation
levels of
with
the
excessive
cumulation
significant
of
a
inventory
year
is
leading mail¬
order house recently announced
that its inventory adjustment had
been completed and that its in¬
ventories would again be built up
in anticipation of rising consumer
that
$150,268,100.00
ac¬
It
ago.
Maturities—unequal
a
amounts
1957-1974
For
Brochure
Lauren W.
write:
Gibbs, Fiscal Agent
Zions Bank
Salt Lake
Building
City, Utah
Department of Commerce,
basis of surveys of busi¬
the
plans, expects private plant
equipment expenditures to
in the coming quarter
at the same high rate as the last
quarter. Construction for the first
six months of this year was about
ness
and
continue
2%
the
above
of
1953,
Description Available
of
BRUNSWICK MINING S SMELTING
CORPORATION LIMITED
corresponding pe¬
breaking all-time
have continued well above
a
ago.
New housing starts
been at the 1953 boom level.
An
at near
Growth
year
turned
up
in
"These
vorable
are
the first quarter
quarter 1953 low.
but
a
in
indications
the
that
"These
trends
Without
I
Brunswick
obligation,
M.
&
S.
-
please
6end
me t
Corp. Ltd. des- ■
J criptiou:
.
,
Name
«
Address.
*
J
have
July .'Economic In¬
dicators.'
well
the
I
.
Exchange
Exchange
Canadian Stock
few of the fa¬
reported by the government
statistical agencies and incorpo¬
rated
Stock
Listed:
Toronto Stock
New
peak levels, much im¬
from the fourth
Outstanding Canadian
have
proved from the lows at the end
of
1953.
Corporate profits have
"
•
New contract awards
records.
been
i
improved
are
by the Administration
Congress. Tax cuts—the
the
companied by
orders for manufactured products
Building. -*
of
conditions
up nearly 200,000
between May and June—a rever¬
riod
partnership.
evidences
services
"Civilian employment exceeded
million
in
June, increasing
two
expanding economy will be there.
"The
the
standards
2%
Recent developments
demonstrate that markets for an
economic
personal
"The
Four New Partners
scot
growing labor force
mony of the success of the
penditures
on
first
1, GEORGIA
at ing
only a few
Wolcott con¬
Taking a broader view of our
expanding economy^ and popula¬
"Industrial production, as meas¬
tion
(which, we have, been J in-2 ured
by the Federal Reserve
formed, may reach 200 million by
Boatd, increased two percentage
1970) there is surely a growing
market
Our
ever-increasing efficiency in
Mr.
ago."
companies
covered
doom
tinued:
next
About
course,
Federal
as
expenditures continue to
quarters
many
weeks
much
five years.
gloom
e m a n
from
to envision this
company with net
sales of $150 million within the
four or
of
expected
private production
of
error
and
year.
cash
be
and
Wolcott
Davis shareholders in the past and
it doesn't take much imagination
stated.
ATLANTA
K
Jesse
1954
in
Patience
veals
decline.
proven
to
the
"Economic
should
should
capital
adjustments,
defense
have
February.
means that na¬
tional market demand must be in¬
the
profitability; and top flight
is
are
last
creased.
Polio is being processed in PDC
laboratories; expanded facilities in
Australia, Italy, South Africa and
the Philippines open new vistas
than
Congress
prophe¬
suggests
that
improve
from
here.
A large percentage of the
widely heralded Salk Vaccine for
rate
the
Further
of
evidence
earnings
and
report
to
"Economic
that
forth,
that:
consumers
sies
Higher Earnings Envisaged
of
ex¬
and
adjusting their spending
budgets upward, as was confi¬
dently hoped for by -the Joint
Economic Committee in its
developments
roaring market)?
search
P.
pressed
opti¬
mism and de¬
Will
(in
Busi¬
increasing their in¬
plans
the
Is
as
ago
years
give way
now
optimism.
are
Jesse
are
the
over
stick?
which
ap¬
sales ' decline?
dividend
today only half
was
vestment
Michigan
less brings us up
or
making of a rough
of PDC common at
moment.
stock
must
feeling of
conclusively
more
the
outlook
a
nessmen
Wolcott of
$1.91.
That
he
trend
has been stopped
apprehension about
year
the
tive
share
per
Report
that
Representa¬
1951
back to $109
to
move..
RHODES-HAVERTY BLDG.
recessionary
began last
Chairman,
Parke, Davis grossed
(all time high) and
earned $3.89 for the stockholders,
mailing $1.90 a share in dividends.
This
pleasing profitability sent
the stock, in the same year, to
63xk, virtually double the present
price tag. Last year gross slipped
has
Robinson-Humphrey Company,Inc.
Economic
$138 million
entering
The
the
to
the
on
which
are
4
Indi¬
monthly
the
Howard F.
LOCAL STOCKS
the
is
conditioned
CORPORATE BONDS
"Economic
July,
of
appraisal
of
such
new
drugs as have emerged
past three years.
To this
pattern PDC has been no maver¬
The
STATE AND MUNICIPAL BONDS
for
tee
its
eral
ESTABLISHED 1894fc
releasing
the
Penobscot
in
In
cators"
wonder
in
divi¬
of such magnitude as
other
Further, the stock market
issued,
were
says
demand.
now
shares
common
years,
$67
been
Well, it
Congressional Committee on the Eco¬
developments have conclusively proved
error of
gloomy phophecies.
Report
in
for
in
nomic
part, more
(including
competition
agement, research,
reputation.
There
Viewpoint
common.
4,489,115
ness, a
Mapharsen,
net
\
4,894,900
tion.
example, Parke, Davis
the
capital of $81,950, and only 5,000
have
For
state¬
stockholder viewpoint.
enterprise that was in¬
corporated
by synthetics; but
only researchi effected the transi¬
has pioneered with
1953
Now let's switch from the clin¬
ical to the
which
days, have since
of
Stockholder's
Many of the crude plant extracts,
developed as therapeutic agents
earlier
over¬
9,000).
over
'
shares of
those
400
are
1869, and
penetrated the West Indies, Mex¬
ico, Central and South America.
in
and
in
carried, most conserva¬
tively, at $20 million, with over
but
Its earliest botani¬
was
Canada
800
over
(total employees
Foreign assets in the
in
expedition
S.
includes
seas
the present
fanciers
research
The present medical and
sales
business, Parke, Davis
combing the world in search
was
cal
in 1899.
chemical
enterprises;
branch in London in
a
1891, in Montreal in 1898, in Syd¬
in 1902, in Buenos
Aires in 1915; and a branch, with¬
out laboratories, in Bombay, India
This word
greatly
among
electronic
long
of
about
pioneering of PDC, note that
seas
it opened
success.
Secondly, research.
is
many
ney, Australia
Parke,
reputation
interna¬
omy of each country.
To illus-,
trate the Daniel Boone type ovter-
under the symbol PDC at around
32..
its
I
countries through¬
out the world, not in a
branch,
or colonial
office, sort of way, but
by units assimilated into the econ¬
the capitalization of Parke, Davis
& Co. is merely 4,894,000 shares
of
is
PDC
fanciers, Parke,
work doing busi¬
at
was
in
ness
with its debt
uncrossed.
stress
adjustments,
and
backward baboon
and smiled upon—deben¬
tures,
subordinated
debentures,
liens, like cousins, twice removed
a
to
about
gimmicks
as
Point
IV,
Lend-Lease, or bountiful loans to
duced
-—here's
point
too!
nomic
cor¬
intro¬
are
profitably,
tional stature.
Long before we
had such elegant ecumenical eco¬
lion
when
third
wanted
pany
And
Chairman of the Joint
publication of the Joint Commit¬
a
a
on
Business Conditions
the
of
has been somewhat less romantic
That
research!
built in 1874. But
those steps were the founding of
laboratory
ben).
Department,
a
virology laboratory.
big "R" in all prescription
a
Congressman Wolcotf Optimistic
resurgent German I. G. Far-
praisal
new
very
Samuel
the
road
of
U.
in
of man's major maladies.
The original laboratory building
in Detroit has been modernized
throughout the world.
It
the
in its ceaseless quest for effective
Durants
Ira
up
began
wing
price
some
intensive
really effective agent in treating
leprosy (1945), and Benadryl, the
first American antihistamine, now
and
turers
quite
doubt observed,
downward for the most
anti-syphilitic in 1934, Dilantin,
preferred drug for treatment of
epilepsy (1938), Promin, the first
manufac¬
est
expansion
*
no
pharmaceutical
been
look at Parke, Davis & Company, distinguished
distributor of pharmaceuticals around the world.
larg¬
have
industry hit a big year
1951; and since then there have
in
vvoxiu's
and
chemical
Enterprise Economist
famous for
its motor cars, but somewhat less
known
is
the fact
that Parke,
Davis
&
Company, one of the
renewal
unnecessary.
By IRA U. COBLEIGH
Detroit is, of course,
Thursday, July 15, 1954
'
H« C. Flood
&
Co. Limited
Members
Inv
Dealers Assoc. of Canada
Royal Bank Building, Montreal
favorable
economic
justify the conclusion that
Canada
Volume 180
Number 5342... The Commercial and Financial Chronicle
i,-*
S\*wiintii
»«••..&» I li;
♦
(209)
/'ll.liv
,1
\
VI
\ i
ity comparable to that of
Steel
The
Puerto Rico-Political Hybrid
Production
Electric Output
In
By A. WILFRED MAY
Retail
Food
SAN
Industry
Our
Index
Price
JUAN, PUERTO
two
here
Production
Auto
and
Trade
Commodity Price Index
previous
dealt
questions
Business Failures
inve
•May.
of
Unemployment
June
s
t
This
was
million
the
employment
gained
979,000
over
record for June achieved
ployment, at 3,347,000,
flux
of
students
smallest
for
increase
"'reported.
A joint
the
June
'
labor
summer
the
in
;■
.
last
15
years,
"
i
This
market.
voted to
a
it was further
:V.'' 7,V' •;
to
$3,300,000,000
•
.
teria
,
a
production will be
as
the
moves
along,
says
"Steel,"
a
and
-
;
.
Continued
.
.
on
of
And whereas the Phil¬
all
domestic
lation,
as
In contrast
the
to
of
and
access
free
American
to
citizenship
of
Rico,
U.
S.
But unlike
they
course,
are
Contrasts With Virgin Islands
.
Rico,
Puerto
like
and
Alaska
Hawaii, are still far ahead of the
Virgin Islands. Although the lat-;
ter's
inhabitants
have
enjoyed
S.
U.
citizenship since 1927, they
represented in Congress
not
are
by
even
retention
the
in
excluded from
are
hell-bent for Statehood.
Rican's
Puerto
re-!
taxes
Rico, they lack
Presidential elections.
functions
the Federal agencies
they do in the states.
and
operate
re¬
the
revenue
representation
Puerto
given full jurisdic¬
were
over
internal
Congress, and
our
States
they get
do
nor
voteless Resident Com-'
a
missioner.
the
mainland,
the Philippines have been consid¬
union,
In
as
some
and
com¬
a
the
of
this
ways
Union
and
change
can
its
some
It
makes
constitution.
ered
of
foreign country for immi¬
a
the
United
States.
the
arrangement,
President
has
Under
the
the
Apart
Philippines'
functioned
as
the
acterization
country, while
seems
Governor acts
state
the
(with
an independent
the Puerto Rican
as
some
insular
a
Governor of
a scope
by the
Governor
most apt:
>
v
,
a
in many
"The Island is
;
exceptions), with
government
respects having
char¬
affirmative
this
executive head of
and
comparison
from
contrast,
tion
of author¬
.
.
political muta¬
a
developing
.
a
new
tern of political.freedom."
!/
pat-I
.'
.
stemming from the peoples sov¬
ereignty; for judicial review, peri-jodic elections, and a modern Bill
of
Rights.
There is a Federal
.
J
Court, with jurisdiction as in the
States, with appeals from the local
1
We
are
pleased to
announce
that
•
courts taken to the U. S. Supreme
Court
in the States..
as
Mr. E. Frederic Uhrbrock
Ever since 1900
Organic
(with the first
Puerto Rico has:
Act),
f
has become associated with
been; included within the United
States tariff system, and there has
free
trade
between
there exists
ury,
union
Differences
In
own
several
from
Members New
Members
Yor\ Stoc\ Exchange
American
-
-
Stoc\ Exchange
Statehood
instances
monwealth differs
this
49 Wall
Com¬
Street, New York 5, N. Y.
distinctly from
the status of the federated
states.
There
30
Vilas & Hickey
Treas¬
the basis of U. S. tariff.
on
as
the two
actual customs
an
us
Special Consultant
With P.R.'s customs col¬
lections paid into her
the
page
ac¬
; It provides for separate legislative,
executive and judicial - branches,
new
.
federal
citizenship
wholly different.
ways
contract between the steel companies and
thes teelwcrkers assures continued labor peace in the steel in¬
dustry.
New and higher prices on steel are being set rapidly
;
of
constitutional cri¬
our
union
State
weekly magazine of metalworking.
a
?
version of Commonwealth is like
'
Signing of
May
peoples
system has re¬
mon,-bond.
increasingly better gage of busi¬
an
summer
Wilfred
A.
command
republican
with
"Steel" Magazine Looks for Better Times in Steel Industry
conditions
United
tax,
As with Puerto
Com¬
and powers
The public's present puzzle-
.
been
Steel
ippines
the
on
Also
Extending our comparisons to
Pacific, Guam remains an un¬
incorporated territory, with an
ment largely stems from the fact gration
purposes. And whereas in
elected unicameral legislature and
that there are no precedents for Puerto Rico the
appointed Gov¬
a Governor appointed by the Pres¬
her new status. After
having car¬ ernor has been supplanted by an
ident; and as did formerly obtain
ried on three times in the role of elected
Governor, in the Philip¬
in Puerto Rico, bills which are
a colony and once as a Common¬
pines there is a dual system—exec¬
wealth, she now classifies herself utive
re-passed
over
the
Governor's
power
resting
with
an
in the latter status.
But if she is elected President, but representa¬ veto
may be referred to the Presi¬
a
Commonwealth, it is a wholly tion of the United States vested in
dent, in whom the final veto re¬
unique version of that entity.
a
High Commissioner, appointed
sides. ' ' •
She is federally associated with by and representing the President
*
5t!
*
cording to
entities.
ness
with
America."
whose place in our
mained completely anomolous
*
,
union
Under the United States'
left in
cents to $26.58 per gross ton, even though the market was a little
.
the
of government, Puerto
Rico, with little exception, is sub¬
ject to Washington's Federal legis¬
stronger in some
.
that
tion
were
business sales.
areas.
affirms
restrictions
autonomy.
to their treasuries
of
full
1935, in its
monwealth is founded ."within
outburst of imperialism in 1898, we
The Iron Age Steel Scrap Price Composite edged down 17
:i
Constitution of
preamble
uninitiated
...
"■
Rican
work¬
outsider.
<
•
v
other
and customs duties.
.
or
V, The steel price increase will stick, according to "The Iron
Age," national metalworking weekly. Reaction of consumers is
milder than some steel people had expected. Most manufacturers
say that competitive conditions and sales resistance will force
them to absorb the steel cost increase, reporting
conclusions
drawn from many interviews with steel users conducted by "Iron
Age" editors in major industrial centers across the nation.
Fabricated steel products including fasteners and wire rope
are
also expected to be increased in the near future.
: "
There will likely be some selective increases in stainless steel
prices following very intensive cost studies now being conducted.
Producers will move cautiously on stainless because of (1) com¬
petition within the industry, and (2) competition from other
metals, chiefly aluminum.
"Iron Age" added that price increases are also expected in
unrelated products because of higher wage scales resulting from
the "pattern" agreement in steel. Aluminum is likely to be among
the first.. Refractories may be another.
Most manufacturers of consumer goods such as autos, electicaL machinery and machine tools appliances say they will have to
absorb part or all of the higher steel costs.
This trade journal states that the average cost of the steel
price increase will be $3.34 per net ton, as reflected by the Iron
Age Finished Steel Base Price Composite. The price increase
raised this index from 4.634 cents per pound to 4.801 cents per
pound.
•
"
;
Steelmaking operations this week are scheduled at 65.5% of
rated capacity, up 5.5 points from the revised rate for the week of
July Fourth. Steel ingot production index is estimated at 97.1%
(1947-49=: 100).
Summer lull will keep July production below
the 70.3% of capacity average which the industry achieved during
the second quarter. Business is expected to turn up mildly during
August and gain momentum during the fall, -v
•
v ':£• Y'.<<:•
turn
final
made
status
appointed
governor
a
domestic
income
Philippine
1935
the
differing from Puerto Rico, they
enjoy no exemption from federal
provision for it; while the Puerto
7'.4
as¬
of
the
standably are
puzzling to the
brightest spot in the economy this year.
Record outlays have
helped offset declines in other segments, such as industrial pro¬
and
independence,
with
their
turned
system under¬
ing the first half of 1954 to a record $16,600,000,000 a 2% gain over
the like 1953 period.
The construction industry has been the
duction
and
Commonwealth.
Constitution
of
Rico's political
3V3% above a year ago and a new high for
This brought building expenditures of all types dur¬
the month.
of
ings of Puerto
United
the
of
coun¬
Under the permanent envisaging
pects of the
Island's status.
The
Asian
long-time member of
as
the British
de-
general
States Department of Labor
and Commerce reveals that construction outlays in June climbed
report
'-'N
de¬
a
of its
and
Alaska
retained
by and responsible to Washington,
independent sovereignty, and from
■
the
was
be
ritory, with
terparts—from the Philippines in
their
transition
from
colony to
Australia
final
scription
,
Unem¬
ago.
year
will
only 42,000 from May despite the in¬
rose
into
a
but still about
fers from two
also,
have
of the organized incorporated ter¬
Significantly, Puerto Rico dif¬
contribution
was
highest level since last October,
below the
the
to
ent
m
■
practically unchanged instead of tak¬
ing its usual sharp June rise, reports state.
Total employment
last month climbed to 62,098,000, according to Government figures.
•
migration
opportunities.
Today's
month
the
specific
contrast
Hawaii
Contrasts with Other Territories
from
mainland, and
J
For
the
with
of
RICO—
articles
state
a
government.
Carloadings
State of Trade
5
tX
repre¬
is
actual
no
voting
sentation in the Congress, but in¬
stead
commissioner
a
accredited
before the State Department, who
has a seat in the House with all
i
the privileges but that of voting.
'
The
Congress is
not
WE ARE PLEASED
eral
Since
the
announce
resignation of
Act)
:
EDWARD D. MUIR
,
.*
■
\
bers
"
.
of this
All
nor,
the
company
are
:
MR. EDMUND BROWN,
Jones
Cabinet
P.R.
Senate.
effective June 30, 1954
The
the
Supreme
apporited
by
JR.
has
A
AS
mem¬
PARTNER
GENERAL
1'
WITH- HEADQUARTERS
■''
■.
'
'
•
'
/
•
LV OUR NEW YORK OFFICE
Auditor
Court
still
dent.
,
the
Governor
apnointed by the Gover¬
with the advice and consent
and
As Vice President
'A
of
are
*
of
•
(under
office
been elective.
f
.
1947
the
•
•
f-
r
THE ADMISSION OF
Treasury.
1
We
TO ANNOUNCE
obligated to
extend any law toi the Island. No
taxes are collected for the Fed¬
Judges
the presi¬
•
Thus, it
mav
COLKET
MR. W. LIPPIHCOTT
•
*;
.
/
HAS
be concluded that
BECOME A
government by consent has been
OF
AS
PARTNER
LIMITED
THIS DATE
*
'
"
*
.
'
established here both at the Com-,
#
monwealth and
'
f
t-
**
KUSS & CO.
'
the federal level;
with, the people
themselvesr'hav¬
created
and
having
V
Investment Securities
federative
the
Commonwealth
accepted
a
association
kind
of
between
•
;
V"''
■.
.
Alamo National BuildiHg, Sao Antonio, Texas
*
*
"
"
•
r'
-1
acutely
Munoz
'
W.
can
be best described in the words of
the
'
States.
.
.
—;
\
18%
■
*
-
*
•
Hew
'
••
-
"■
■
Y
MEMBERS
<
•
*
■
'
Yapk Stock Exchange*,».,,
v
Apterjcan Stock
Phiiaddphia-Ballimore'-Washinglon Stock Exchange
able
Marin,
Governor,
as
70
123
PINE STREET,
/•
••
■
Exchange —
■
4 '
SOUTH
BROAD STREET,
PHILADELPHIA 9. PA.
~
distinguished
from
"autonomist,
tist and federalist."
both
,
;
j,
Luis
Reading, Fa.
separa¬
July 15,1954'
Manhasset, L. I. v "
Altoona, Pa.
.j.
•
*
,•
I
!
NEW YORK 5, N, Y.
i >
.
;
I
'i
t
.
"
them and the United
Perhaps the political status
'*
•
•"
ESTABLISHED
-
ing
-
~
j
PENINGTON,
COLKET & CO.
.
T
6
The Commercial and Financial Chronicle
210)
management,
money
Corporate Money Management
%< ■
in
By KENNETH W. FRASER*
it affects the working capital position.
understand
to
the
Says,
Flow
and
fect
element
flect, like
dition
of
is
company
sheet
static.
will
photograph, the
a
business
a
at
con¬
and
flow
created
sheet
of
that
factors
which
management's
ning, and the
may have in
tives
factors
efforts
success
and
and
that
the
our
series
of
the
photographs of
companies—that is, our
loss
the
cured
in
changes that have
and
the
reaching
And
that
extent
of
past
our
ultimately
principal
items
affecting
flow? For the sake of
simplification
be
presented
the
of
some
the
has
the
and
obviously
the
balance
to
to
first
increase
supply
to
? inventory,
then
the
funds
further
for
material purchases, labor and
the
as
his
flow
asset
is indicated in the accom¬
accounts
As is
short-term
between
con¬
attention
these
three
items,- that is, cash,
receivable
tories.
every
business transaction has its
A
close
inven¬
and
''
evident, practically
following
of
of
the
"working funds," that is,
cash, accounts receivable and in¬
*
by
bankruptcies,
while
result, it would
a
may
in
depressed
appears
which
lay in
of its
it
raw
substantial
cash.
material
it may
find
lars
in
It has
a
in
so
its
that
tied up in
are
if
that
generally
would
of
be
the
immediate
many
corporations
that of short-term cash
his
(6) Commercial Paper. This in¬
exposes the investor to
a definite and specific credit risk.
However, it also offers consider¬
able
flexibility
in
establishing
maturities and in general offers a
vestment
better rate of return than the in¬
vestments
(7)
previously mentioned.
If debt in the form of
debt.
own
debentures is available at
ventories,
address
by Mr. Fraser at the
Management Conference of the
American Management Association.
New
York City, June
21, 1954.
rather
than
working
capital
practical
provides
much
a
approach
to
more
short-term
pany's
or preferred
managements
surplus
current
common
own
is
stock
low,
some
invested
issues.
own
investments, it
inventory
may
also be noted
they serve a valuable
in sterilizing cash which
might otherwise be a source of
temptation to even an astute and
able
management.
Corporations
have many of the frailties of hu¬
mans, and among them is the fact
that surplus cash has the habit of
burning holes in the pockets of
both. It is all too easy to make a
deferrable expenditure or embark
upon
a
questionable project if
cash is freely available. However,
remove
that cash by
means
of
short-term
investment,
and
to
some
extent
you
remove
the
temptation. At the same time your
often
that
purpose
sumed that each of
us
more
general
pattern,
glance at some of the
short-term
the
as¬
will fit into
the
fewer
hand
have
" we
different
may
considerations
excess
an
the other
on
we
we
a
of
on
one
cash,
or
shortage.
(a)
Excess
ment:
funds
we
for
shall
mize any
ket
we
There
rather
invest¬
are
That's Texas for
Big like % of
a
.
.
.
of examining the
million
square
ready well known to all of us, and
indications
recent
banks
excess
quiries.
Others of us may find oppor¬
investment, tunities of realizing unexpected
wish to mini¬
profits in interest differentials of¬
risk resulting from mar¬ fered in the
present money mar¬
short-term
To
avoid
that
and treasury bills.
exist
To
that
only
his
at
problems
balance
do
sheet
understand fully
we
wish
may
to
These have the
advantage of permitting
maturities
our.;
and
to fix
us
yields
on
a
short-term basis, and yet offer the
the nature
corporate money management, advantage of good marketability.
becomes necessary to discard
V-«r(2) Tax notes.-These offer us
the analyst's concepts of the work¬
nominal yields and minimum risk.
ing capital and acids tests, pnd
i' (3) Public Housing Bonds with
higher the yield. In lieu of tender¬
ing those savings notes for tax
payments in 1954, the railroad re¬
cently
borrowed
funds for six
months
it
the commercial paper
the,, day-to-day cash¬
which I have tried
short maturities and Public Hous¬
concept
ing Notes.
outline.
these
Generalizations
picture
often
always
are
does
A
composite
not
fit
four¬
specific
company
finds
itself.
that
is
this
differential
as
(4) Municipal Bonds with short
They offer,
may
ELEMENTS
AFFECTING
-
Volume Decline;
a
of
generated
depreciation
policy if pursued
as
a
result of:
1.
on
page
22
FLOW
These Decrease Cash—
Increase in Accounts Receivable
(a)
,
CASH
Shorter Terms of Sale;
(b)
Longer Terms of Sale;
(c)
Inventory Liquidation.
3.
Fixed
4.
2.
4.
Acquisition of Investments.
Decrease
5.
Increase in
6.
Payments—such as:
(a) Dividend^;
(Depreciation—See
6.
Increase in Liabilities
Republic Natural Gas
in
Deferred
Below).
Charges & Prepaid Exps.
(Def'd or Non-Payment).
Western Natural Gas
(b)
(c)
Trading Department
Tax
Deferred
Payments
Capitalized
Charges & Prepaid Exps.,
(Acceleration);
Experimental
mental Work.
Pierce, Fenner
70 PINE STREET
7.
&
NEW YORK 5, N. Y.
Offices in 106 Cities
Retained Earnings—Plus:
7.
Operating Losses.
8.
(a) Depreciation Charged to Profit and Loss.
Borrowings:
8.
Repayment of Borrowings:
Beane
i
Fixed Asset Expenditures.
Liquidation of Investments.
Sale
Texas Eastern Transmission
Sulphur and Oil
result of:
Inventory Accumulation.
3.
Asset
5.
Union
a
Longer Collection Period.
2.
Republic National Bank of Dallas
as
Volume Increase;
Shorter Collection Period.
Tennessee Gas Transmission
Merrill Lynch,
amounts
Continued
if wisely
(c)
make markets in—or
find markets for:
Lone Star Steel
by
*
be
underexpending
charges, such
(b)
Gulf Interstate Gas Co.
pocketed
substantial
by
Reduction in Accounts Receivable
(a)
we
of
Long-Term Considerations
While
the interest income is tax exempt,
These Increase Cash—
1.
A share in her future?
be
profit.
corporate cash
MAJOR
beef, wool, corn, spinach, cotton. Leader
sulphur, oil, meats. Major factor in flour,
chemicals, and oil field tools.
Texas stocks
issue
they provide
guarantee of
obligations of the many local
maturities.
speqial
will
the railroad
Housing Authorities. In addition,
j
presumably in
market, and
1%%,
to
on
Treasury Notes which will yield
2.66% during that period. The 1%
in effect government
with the situation in which
First in
some
ex¬
An unusual feature of
issues
held
at
-
in
are
in¬
|
the year must be maintained.
increasing imoortance.
but continue from day-to
the equilibrium between re¬
ceipts and disbursements through¬
a
Here
all
welcome
out
of
Remember
square
fastest growing in
point of population.
commer¬
commercial paper
and
would
as
become
r
miles.
of
al¬
day
in charge of providing a
company's cash requirements has
•
investors.
are
probably
fluctuations.
risk,
ex¬
ecutive
tremely dangerous.
most
sources
These
funds.
short-term
date,
but to the financial
new,
What Is Happening
and Booming!
who,
There is little
short-term support.
need
us
having funds avail¬
reinvestment,
require
for
able
brokers
for
those of
than
cial
have
cash
of
Should
Cash:
from
Short-Term Considerations
assets, , provid¬
due allowance for
the
Breezy
may
ket.
Take the
case
of
a
large
invest in Western railroad. It had provided
short
maturities.
What, then, in full for its 1953 Federal Tax
might be attractive for short-term
payments by purchasing in May,
investment, offering both reason¬ of last
year an adequate amount
able security and a fair return on
of
Series "B" Treasury Savings
excess funds?
Notes. These are two-year notes,
(1) Short maturity governments and the longer they are held, the
not
TEX AS
.
it
that
such
is
investment
readily be converted into cash as
soon
as
proper
and
deliberate
(b) Requirements of Additional
However, since it cannot be
dends, but paying only secondary
attention
to
working capital as
such.
This concept of "working
funds" versus
working capital is
to
i
short-term
with
connection
In
liquidation.
as¬
ing of course
fixed asset outlay, taxes and divi¬
flow
.
satis¬
management decision requires its
current
substitute
Big
a
discount, and sometimes
when
the
crystal ball indicates
that the market price of a com¬
factory
of
An
General
company's
of
Repurchase
use.
through
might consider should
tween
a
generated
re¬
dollars will be in its cash account.
Therefore,
fact
in
is
It
guarantee.
investment of the funds currently
inventories
receivable,
this
seem
dol¬
many
commer¬
reflect
market
paper
problem
volume
current
greatly the
so
condition. It would therefore
concur¬
accounts
just
for
accounts
and
iis
it follows
and
dollars
With
increase
available
sets,
cial
an unexpected amount
assets held
ceivable.
enter a season
prudent to
unusually large supply
material, thus tying up
an
that cash generated from in¬
bank loans, the soft¬
ening in the prime rate, and the
plethora
of
funds
which
have
all
requirements
coun-
flow
be
an
commercial
tests, to handle
with apparent ease all of its cash
not
current
panying illustration.
to
seem
in the face of
even
in
anticipated current cash flow be¬
decrease
or
collections
up
re¬
duction. The continued decline in
simple illustration, a
with working capital,
a
of
transac¬
on
account
expenditures for capital assets ap¬
pear
to have held close to last
financial man¬
ager must examine critically the
cash, which in turn is necessary
centrate
either
time
same
increase
re¬
ex¬
needs
been
overhead, perforce make him
Practically all business
cash
the
has
As
at
ac¬
counts.
tions
cash funds
fulfill
to
In
his
assure
through sales to accounts receiv¬
many
sheet
a
problems.
adequate
cash
raw
in
is
able, and then through collections
profit and loss elements have been
netted
capital
to
limited to
the
his
business.
of
examination of balance sheet
items,
long-
money-
plained before, the principle flow
brevity and
been
meet
manager's
times
the
cash
illustration
to
company
all
are
over¬
cite
adequate
of
cash
simple terms, he must
cash account.
then,
but
purposes,
To
company
rent
money
description has flown through
What,
re¬
fine, but
rather academic approach, to the
nature
our
accounts
problems which the
Working
practically
and
and
second
company's
day-to-day requirements.
success
the
holding
Plan,
many others have often
sulted in cash emergencies.
of
oc-
At
ceivable
tax
and
bank
have
inventory build-ups in periods of year's rate. As
manager must consider in order
to insure an adequate availability
objectives.
every transaction of every
while the
cash
analyst's
term
statements—reflect only
many
liabilities,
look both the immediate and
com¬
parative balance sheets and profit
and
first
yield is low, a bank acceptance
has the additional security of a
funds in their
come up with even
earnings thus far in 1954
a comparable 1953 period.
ventory liquidation has in general
either bettered the corporate cash
position or has permitted debt re¬
The
ceivable only with current liabili¬
ties.
Both tests are valuable for
realize
we
Mills
im¬
lectibility of accounts receivable,
position
the acid test.
compares
tance of mOney management
may
easily be understood if
a
anticipated
the
margin
gross
seem
(b)
rent
impor¬
knowledge of
admittedly ade¬
quate working capital suddenly
finding themselves short of cash.
While
the
corporations to
with
as
yield.
Bank Acceptances.
(5)
better
have
under
ex¬
increased activity, slowing in col¬
liquid
current
assets, generally
consisting of cash, accounts re¬
ceivable, and inventories to cur¬
attaining its objec¬
The
of
tests
actual
than in
factors
instances removal of
profits taxes and in other in¬
provement have permitted certain
accordingly.
companies
cor¬
continue
reports
profitable operations, and
some
of
us
during the period,
earnings
to show
in
important, and reduced to monthly
projections, the money manager
may then lay his detailed plans
payments
relates
plan¬
porate
(a) the working capital test
been
reflect
declined
have
company's
management
evident.
are
will
conventional
The
which
instance balance
tory
liquidation
has
occurred.
While the rate of business actively
Raw mate¬
cess
of
rate lower than
a
shipments,
stances
All
been experienc¬
and since the
end of last year a material inven¬
are
this information, the timing
the cash flow is much more
Such
vs.
Funds"
"Working
the ebb and flow of the
nor
future
the
one
plans.
Working Capital
specific
a
instance in its life, neither the ebb
as an
apart from
and
separate
other company
re¬
there
hand
have
been
of
tax free
bank debt.
we
has been held at
payments, and (f) Dividends.
While
the
projected working
capital position may be developed
a
agement cannot be regarded
balance
a
other
hap¬
economic
our
the past few months
primarily an inventory
liquidation. Production generally
has
that
the
to
may
been
ing during
rials; (b) Labor; (c) Other costs;
(d) Capital expenditures; (e) Tax
money
No
it.
While
What
from
of the factors which af¬
some
terms
Other
(b)
disbursements for (a)
company's cash ac¬
management is
an integrated part of a company's
this
discussion
may
we
review
Except in its
briefly some of the simple prin¬ overall planning.
ciples of cash flow; what it is, short-term aspects, money man¬
for counts, and
point,
and
recently
has
climate.
hand, receipts, which
one
collections,
On
requirements,
ter effect in
starting
a
pening
individually,
what
Thursday, July 15, 1954
selected, relative security with a
apply to each and
us
examine
we
income.
on questionable projects.
Advocates, also, careful planning of long-range money man¬
agement, with proper timing for probable maximum and
Cash
broad
of
everyone
an¬
consist of (a) Sales converted into
cash
be free from temptation to embark
find
proposition
following major factors:
On the
fully the nature of corporate money manage¬
necessary to discard analysts' concepts of
working capital, and substitute therefor the day-to-day cash¬
flow concept. Urges corporations having excess cash funds
from inventory liquidation make short-term investments and
To
this
state
into consideration in
ment, it becomes
minimum fund
However, with the specific under¬
standing that the following state¬
sur¬
way,
it has been proven
practical to forecast a company's
short-term cash position by taking
Mr. Fraser discusses major elements affecting cash flow in a
as
results
other
J. P. Stevens & Co., New York City
corporation
and
unexpected
ments may not
To
Vice-President
Financial
,
fewer
many
prises.
...
(a)
Short Term;
(a)
Long Term.
9. Acquisition of New Equity Capital.
9.
Short Term;
(b)
(b)
Long Term.
Retirement
of
Equity Capital.
and
Develop¬
Number 5342... The Commercial and Financial Chronicle
Volume 180
(211)
T
vault. 10.6
Only
Will Save the Nation
that the wealth of the nation, your
savings and mine, are being con¬
fiscated through1 issuance of papdr
be printed and
can
simply
multiplied by;
increasing
debt when
By REID TAYLOR
government
nation
a
is bent
easy
-Platform promise to
return to a sound dollar backed by gold, Mr. Taylor points out
advantages of a gold standard currency. -Holds "there will be
no
popular demand for a return to sound money," and the
danger is that the nation will be so anxious to prevent deflation
that we will continue' along present inflationary policies*
leading eventually to repudiation. Says deflation is the lesser
of two evils. Calls for a free geld market "for the good of all
citizens and not just for the gold miner," and asserts a free
gold market will stimulate world trade. Concludes Gold Stand¬
'
as
-
ard ts necessary
Are you one
who
for survival of
of the
Are you one
people
many
"Gold 'is
say
outmoded"?
of the
people
many
who in this "new era" do not take
the
senously
lessons
the
of
past regarding
irredeemable
Are you one
these
indi¬
viduals
who
exclaim,
d
o
n't
want
think
.]
If so,
these
who
simply say,
"What good is
it is not surprising.
Apparently there has
inspired
propaganda
been
much
instill
to
in" the. minds
ideas
how
far
we
away
and
and
today
have
.We
Federal
a
the
assure
of
the
Reserve
governments
All the true values of life
the
be burning very dimly.
emphasis is
today and
mand
more
future of
We
de¬
for less work. The
.pay
our
the glare
on
tomorrow.
country is of
no con¬
cern
as long as we think we have
security ourselves. Building weap¬
ons
of destruction is desirable be¬
of the
cause
fleeting prosperity it
Spending is more desir¬
brings.
able
than
saving.
that
pears
it
It
doesn't
almost
ap¬
to
pay
be
honest
anymore.
All
this
goes
hand in hand with fiat money.
But
do
men
always
come
back
to the true and permanent values
in
life.
All
down
through the
by
gold.
banks
our
have
"hard"
course
Recently,
in
number
of
ised
Instead,
an
which
of
redeemable
same
a
and
dollar"
whose
will be kept the
as this year.
It is
power
next year
intimated,
we are now prom¬
"honest
purchasing
however,
of crisis.
times
in
dollars
of
is
that
it
the
often
is
scuttle
hear
gold
a
with
if
returned?
of
tie
real
sound
by
a
in
and
rigid
case
not
gold
standard. In other words, artificial
of
it
their
of
policies
paraded
public servants that
but
said,: "What
standard
if
don't.
we
in
What
clear
fi¬
the
trust,
can
we
Administrators who
it
as
soon
as
things get
May we ask, what good
irredeemable money if it re¬
accord with
is
other type of administrator should
•
tains
its
be
held
in
gold standard.
a
Any
check
governments remain frugal?; Un¬
by gold.
The
gold standard is synonymous with
der
need
we
is
some
lines.
part of the public to
to
for
even bother
try to understand the reason
a gold standard.
The deterio¬
ration of
a paper currency in its
early stages is gradual and insidi¬
in that it creates
law
if
only
long
so
logic what good is
those
whom
as
any
elect
we
That
to
depart
we
from
it
in
a
false
sense
of
prosperity for one group of our
citizens mostly at the expense of
another group, due to the rapid
turnover of paper money, a phe¬
truth and honesty in government.
such
value
today
thinking along these
There is very little attempt on the
ous
have the good of their country at
heart are always completely in
we
are
tion of the savings of our people.
the
their
we
confisca¬
continual
a
which
nomenon
tains
itself
feeds
and
on
Continued
war
entirely
on
an
main¬
open
page
24
This announcement is not
an
The
offer to sell
farce
from
savings
the
from
that
dollars
The United Gas
First
to
the
Dated
money
July 1,1979
Price 101.721% and accrued interest
1The
Prospectus
but
of
be obtained in
may
any
State in which this announcement is circulated from only such
of the undersizned and other dealers
the
as may
lawfully offer
has depreciated
is simply too
thesy^curUies in such State.
otherwise
on
the
can
of
L. F. ROTHSCHILD
NEW
YORK
&.
WILLIAM
CO.
HANSEATIC CORPORATION
/
&, COMPANY
BLAIR
STERN
BROTHERS & CO.
in¬
continue
be¬
THOMAS &
CITY
COMPANY
SECURITIES CORPORATION
abroad
individual
does
not
to be too much affected.
as
'
HALSEY, STUART & CO. INC.
easy
The lure and magic
influence
cause
long
Due
July 1, 1954
lost
1933,
value
telligent people. We
to
dissipate billions
seem
Mortgage Bonds, 3M% Series due 1979
times that amount.
create.
its
Improvement Company
the
of
he
seemingly being able to get some¬
thing for notning is overpowering
in
offer to buy these securities,
complete
a
Yes,
1920
time
deposited
Paper
to
an
A
t-.ruugii.
failures
many
solicitation of
$10,000,000
bank¬
standpoint
deptfsitor,
aooui,
since
or a
offering is made only by the Prospectus,
to
institutions
above
ASPDEN, ROBINSON & CO.
MULLANEY, WELLS & COMPANY
As
business activity continues
FAUSET, STEELE &, CO. <■
WALTER STOKES &. CO.
ARTHUR L. WRIGHT & CO., INC.
at
The
Advantage
Standard
In
all
history
example of
of
'
July 14, 1954.
'
" V '
-
This announcement is not
'
,
offer to sell or a solicitation of an offer to buy these securities.
offering is made only by the Prospectus.
an
The
"i
< "
■;
"
'
.
V
■.
■
'
■
'
■
*
$7,500,000
-
Missouri Power •&
First Mortgage
Dated
Light Company
Bonds, 3H% Series Due 1984
Due
July 1,1954
Price
July 1,1984
102Vi%and accrued interest
Gold
a
Currency
there is
paper
not one
having
money
retained its value for
than
more
a
The
Prospectus may be obtained in any State in which this announcement is circulatedfrom only such
of the undersigned and other dealers as may lawfully offer these securities in such State.
brief period. Gold has never failed
to
come
lost
out
on
battle
a
to
top.
of the
help
It has
paper
glance at the 75th
never
annual
HALSEY, STUART & CO. INC.
A
money.
report
great Homestake Mine will
to visualize the reason.
WILLIAM
BLAIR
•&,
STERN
COMPANY
one
From
free hand
weakness
excuse,
We
important
be
discipline
no
until
a
against
tough?"
ing, and honesty to the depositor.
A ,collar such as we now have
change in business conditions
restricted
the
see
guaranty of the value
no
the dollars to
unemployment, these officials
should have
be
money
check
a
the
admission that
an
condoning
market place. Yes, we should elect
dollar backed by gold carries with
we
gold to guarantee its intrinsic
value.
of
money,
means
as
is
Federal Deposit Insurance
a
there
have been told by our authorities
at
Washington that we do not
want
time is
nancial
banking system and to protect
our
a high rate, with such artificial
ages gold has retained its value stimulation, most people will have
faith in their government and the
as
a
treasure eagerly sought by
deterioration in the money will
man but difficult to
procure. "The
not be too readily apparent. How¬
eternal quality of its indestructi¬
bility imparts a security in per¬ ever, as soon as recession and un¬
petuity for which mankind is ever employment threaten, the antidote
will always be more and
more
^seeking. Until such time as some
other form of money which can¬ easy money. If gold is not allowed,
to function,to disclose to the peo¬
not be debased is
found, or until
the pledge of both governments ple what is happening, the declin¬
ing value of the dollar will be
and individuals can be accepted
as
inviolate under all conditions, belatedly recognized by a tragic
gold will become as it has in the flight into .anything and every past, progressively more vamao e ing of intrinsic worth. Then, tne
in terms of promises to pay." This rude awakening 'will come, and
is a profound statement of fact the truth atrut gold and paper
taken from a letter written by the money will finallv come out in
the open.
Hints of this sequence
late - J. P.
Bickell
of
Mclntyre
of events are already beginning to
Porcupine Mines, Ltd. It should
Not since 1933 has there
be read and reread to grasp its appear.
been such an obvious pump-prim-'
full significance.
ing oneration as the recent open
The Eisenhower Platform Promise market
buying
of
government
bonds by the Federal Reserve, to
The Eisenhower platform prom¬
throw money out into circulation.
ised the return to a sound dollar
backed
serves
War
times.
questioned
even at
necessary
to
the
article,
of
in
free market not only warns you
but also protects the public.
It
sphere, the main¬
smoothfunctioning of
"Who's Afraid of Gold and
Why?"
All
is
gold
But
is
from that ideal situation in which
American people for reasons indi¬
cated
in
the
previous
Yes.
responsibility.
the
That
you.
a
And people do
in
gold encour¬
ages loose banking practices and
makes the protective functions of
appear to
in
protect
to
We
above
are
faith
your
be
may
it
only because it gives license
to extravagance.
To depart from
gold permanently during peace¬
enemy.
nor
It
but
abuse of privilege on the part of
those in authority who do not like
good
Bickell
Mr.
from
faith
have
will
such
or
you
tice, and the protection
people in time of war.
guaranty of the return of the same
gen¬
eration
gold?"
quotation
see
warns
tenance of law and order and jus¬
become
the
sickness,
radar system
to their proper
^
economy
Reread
a
long
unless -they remain
frugal and confine their activities
you
of
younger
Iaylor
value.
redeem-t radar
very
importance than main¬
taining the dollar as a true meas¬
of
people
as
have
not
of greater
ure
approaching
as
the
Corp. to insure, deposits up; to
$10,000 as a protection to the pub¬
lic.. By what strange logic is the
gold"?
are
;one
the
unless
money,
their government.
the
to
Or
Reid
"I
even
about
of
expediency will
of
money.
whether
admission
an
gold could be displaced.
money?'
of
stimulation
political
long
so
system of government.
our
paper
able in gold, retains its value only
-
\
of
just
approach of the
tains its value at all times where-- Neither the thermometer
After making reference to the Republican
'
tion,- the demand for gold'serves
as a warning of
impending trou¬
ble, just as a thermometer warns
upon j you
spending itself into oblivion. It is
to understand why gold re¬
Co., Chicago, 111.
Mitchell, Hutch ins &
emergencies is only
the type who have no respect for
laws? When gold is free to func¬
feet high, wide- and
Contrast;the extreme effort;
necessary to produce gold -withI
the ease with which paper
money1
Free Market for Gold
a
administer the law turn out to be
deep.
the
the
tons of
opening
present
ore
of
the
day 81
have been milled.
ore
FIRST OF
IOWA
CORPORATION
THOMAS & COMPANY
PATTERSON, COPELAND &, KENDALL, INC.
All
the gold extracted from this vast
quantity of
MULLANEY, WELLS & COMPANY
mine
million
BROTHERS & CO;
would only fill
July 14, 1954
A
a
i
(212)
The Commercial and Financial Chronicle... Thursday, July 15,
New York
i
Central—Review—H. Hentz
Northwest
by
J.
Recommendations & Literature
understood
that
send interested
to
the
firms
mentioned
will
be
west
Copper Mines (QuebecSecurities Ltd., 1 Exchange
in
Steel—16mm
color
rent
ties
issue
in
the
Japanese
Bond
data
&
New
available
Franklin
York
Stores
5,
N.
Y.
Also
McKinnon, 11 Wall
Corporation, McGrory
is
data
Corporation*
Company, Inc.,
pany.
Office
Steel
Northwest—Analysis with particu¬
Banks and Trusts
of June 30—New
as
way,
New
Over-the-Counter Index—Folder
showing an up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35
over-the-counter industrial stocks
Quotation
4,
N.
Estate
Bureau,
Inc.,
Averages, both
46
Y.
Baker
&
N. Y.
Bond
Co.,
&
Stock
Averages
Incorporated, 150 Broadway, New
—
Ltd.—Analysis—L.
Inc.—Memorandum—Eastman,
York
38,
■
Industry—Bulletin—Vilas
& Hickey, 49 Wall
Street,
New York 5, N. Y.
Also available is a bulletin on Minne¬
apolis, St. Paul & Sault Ste. Marie
Railroad, and an analysis
of Gulf, Mobile & Ohio
Railroad.
*
35 Wall
A
*
•
Gas
•
&
Street, New York 5, N. Y.
Plastics, Inc.
Analysis
Broadway, New York 6, N. Y.
—
Co.,
Corporation—Review—Sutro
George
A.
During the four years, 19541957, total new construction ex¬
penditures by the gas utility and
will aggregate
pipeline industry
$3.9 billion, the
Association
American
reports.
This
Gas
com¬
with actual expenditures of
$5.08
billion on the ex¬
pares
about
pansion
in
the
the industry
period.
of
program
1950-1953
Expenditures of the industry in
1953 for
facilities aggregated
billion, the second highest
new
in gas
year
industry history. Last
the
was
fourth
consecutive
in which new constrution ex¬
penditures exceeded one billion
Searight,
115
dollars.
pansion
Total expenditures for
struction and expansion
Bucyrus
mated
Que., Canada.
ent
52 Wall Street, New York 5, N. Y..
Clark
County Educational School
Nev.)—Brochure—Lauren
W.
Salt Lake City 1, Utah.
Parker & Redpath,
District
No.
2
(La Vegas,
Gibbs, Zions Bank Biulding,
Commonwealth Life Insurance
Co.—Memorandum—R. S. Dick¬
son &
Co., Inc., Wilder Building, Charlotte
1, N. C.
Consumer
Credit
Corporation—Analysis—Eisele & King,
baire, Stout & Co., 50
Broadway, New York 4, N. Y.
Dewey & Almy Chemical
Co.—Memorandum—Kidder,
body & Co., 17 Wall Street, New York
5, N. Y.
Dewey and Almy Chemical
'
LiPea-
<
&
Companies—Information—Oppenheimer
W. R. Grace &
Co.—Presentation before New York
Society of
Security Analysts—W. R. Grace &
Co., 7 Hanover Square,
New York, N, Y.
*"
'
•
Hycon—Literature—Singer,
Bean & Mackie, Inc., 40
Exchange
Place, New York 5, N. Y. Also
available is literature on
H & B American
Machine.
Micro-Moisture Controls,
Inc.—Circular—Weber-Millican Co.,
50
New
England
Lime
York
4, N. Y.
to
for
be
new con¬
of
1954
.>
about
Company—Analysis—Stamrowe
Trading
esti¬
billion,
billion
Industry estimates for.
1956 and
1957
are
three-quarters
placed at about
of
a
billion
each:
Security Traders Asso¬
Hotel Claridge.
Sept
Bros.
23-25,
Minn.)
&
1954
(Minneapolis
Board of Governors of Associa¬
of
Stock
Exchange
uting natural
billion
for
These estimates,
ciation
states,
servative, since
to
,
the Gas Asso¬
may
prove
many
companies
underestimate
tion projects for the
con¬
construc¬
more
the ratio between available
supply and demand for natural
gas has gradually lessened, there
years,
are
many
factors indicating
further growth of demand for
gas.
More
be
large pipeline projects will
to
supply industrial
population growth.
Though
needed
and
construction
expenditures
may
decline, the reduction from
cur¬
rent levels may be more moderate
and gradual than indicated in the
present estimates.
ex-
Robt.
construc¬
that
about
$1.09
natural
for
gas
billion
will
go
construction
Torpie Joins
J. G. Bradford Go.
in
Robert
A.
Torpie
has
#
Jlomxtra Securities
385
Public Utility
with
For
the
pipeline
whole
gas
industry,
utility and
/ Co.,
expenditures will amount to $1.72
billion
$1.6
from
1954
to 1957.
will be spent on all
distribution
and
$327
of
underground
period
greater
are
in
pie
distribution facili¬
struction
cated
expenditures
their
financing.
these
expected
also
con¬
&
A. Torpie
Beane.
More
Member
•
Natural Gas
#
your
and
pierce, Fenner
recently
E. Brown Partner in
of
companies
Penington, Golket
expected to ob¬
47% of the
new
money would come from debt is¬
Penington,
Pine
ber
Colket
&
of
the
New
York
24«ft
74
Y.
Security Dealers Association
Ex¬
remaining 18% from change, announce the admission
issues.'
Compared
with Edmund Brown, Jr. as a
equity
similar
earlier,
increase
tually
forecasts
there
in
made
appears
the
one
to
year
be
an
supply of inter¬
funds,
and
vir¬
partner with headquarters in the
New York office.
W.
.
Lippincott
Colket» has
be¬
limited partner in the firm.
come a
an equal decline in reliance
debt
and
equity
sources
for
money.
nrDCWn A Dl P
E. F. Uhibrock Wilk
UtrtPIUADLt
MIDKFTC
IHAKIVlIO
e-
Frederic
associated
come
Hickey
Uhrbrock
with
has
be-
Vilas
&
Hickey, 49 Wall Street, New York
N.A.SJX
City, members of the New York
Stock
Exchange,
as a
special
con¬
Russ & Go. Announces
on
without
SAN
obligation
ANTONIO, Tex.—Russ &
Co., Alamo National Building,
61
NY
of
general
sultant.
& Co.
Trinity Place, New York 6, N. Y.
mem¬
Stock
Material and Consultation
orders & inquiries invited
Members: N.
Co., ' 70
Street, New York City,
and the
Broker and Dealer
Industrial Stocks
Troster, Singer
2-
he has
indi¬
methods
Japanese Stocks and Bonds
HA
with
Lynch,
Such estimates showed
internal sources;
on
secu-
been with Torpie & Saltzman.
tain 35% of the needed funds
from
sues
;o!
in
g
was
Merrill
Robert
anticipated
n
,'j announced.
X From 1922 to
r 1951>Mr. Tor¬
ties.
panies reporting
d i
X rities, the firm
53, when about $1.4 billion went
com¬
r a
.over-the¬
than 'in
large proportion of the
Wall
-counter
the comparable period from 1950-
A
44
charge
,'Vt
the next four years.
The distri¬
bution expenditures for the 19541957
C.
manager in
*
expanding
storage facilities
,
Street,
New
York City, as
About
billion
million will be spent in
J.
Brad ford &
transmission
Co., Xtfl.
i
become
associated
1954.
con¬
$3.6 billion, will be devoted to
i
expenditures in 1953 totaled
$1.25 billion and it is anticipated
nally-generated
struction expenditures for the next
four
years, or a total of about
Investment Bankers Association
Annual Convention at the
Holly¬
distribution
gas
(Hollywood*
wood Beach Hotel.
gas will spend $1.33
Natural
1954
Fla.)
natural
tion
remote
Although in the post-war
National Association of Securi¬
Nov. 28-Dec. 3,
nation's
expanded
facilities.
Sept. 27-30, 1954 (New York City)
Vilas t
We make good markets
in
Firms
ties Administrators meeting at the
Hotel Roosevelt.
;
the
of
into expanded
year.
About 90% of the estimated
Co., Inc., 96 Wall Street, New York
5, N. Y.
pres¬
are
$1.2
with expenditures of
$1.15
for 1955.
years.
Street, New York 4, N. Y.
Broadway, New
facilities
tend
Company—Analysis—Ferris
Company, Washington Building, Washington
5, D. C.
L G. Farben Successor
& Co., 25 Broad
National
gas systems.
About $1.71 billion
will be spent on natural
gas trans¬
mission lines and utilities distrib¬
types
Brunswick Mining &
Smelting Corporation, Ltd.—Description
—H. C. Flood & Co.
Limited, Royal Bank Bldg., Montreal,
Erie—Memorandum—Auchincloss,
Sept 22-26, 1954 (Atlantic City)
Co.,
Industry Plans $4 Billion Capital Outlay
year
—
Valley Country Club, Abing-
ton, Pa.
&
American Gas Association
reports, however, program for 19541957 will be less by $1 billion under the
actual outlay in
total
Brilhart
&
Philadelphia 29th
day at the Hunting¬
meeting.
$1.35
'
(Philadelphia, Pa.)
ciation Annual Convention at tho
N
Chemical—Memorandum—Walston
Dillon
expansion period of 1950-1953.
Amott,
Chips—List of promising issues believed behind the
mar¬
ket—Laidlaw & Co., 25 Broad
Street, New York 4, N. Y.
Tax Exempt Bond
Market—Mid-Year Survey—Halsey, Stuart
& Co.
Inc., 123 South La Salle Street, Chicago 90,
111., and
35 Wall
Street, New York 5, N. Y.
American Potash &
Jackson
tion
to
as
Red
Tobacco
S.
Co., 120 Broadway, New York 5, N. Y.
,
13-year period —
Front Street, New
Tabulation
—
Canada,
Electric
,
Real
annual field
ton
Street, New York 5, N. Y.
Westinghouse
York
National
Lerner & Co., 10 Post
—
■
City Bank Stocks—June 30th
quarterly analysis—
Laird; Bissell & Meeds, 120 Broadway, New York 5, N. Y.
York
Report
Products Inc.—Special
Study—Paine, Web¬
ber, Jackson & Curtis, 25 Broad Street, New York
4, N. Y.
i
.
New York 5, N. Y.
a
—
Sylvania Electric
Companies—Comparative figures
Corporation, 120 Broad¬
in the National Quotation Bureau
yield and market performance over
Drug,
15 Broad
York Hanseatic
used
of
Chi¬
of
Bond Club of
Company, Limited, 132 St. James St., Montreal, Que., Canada.
i
New York
Company
Club
Bond
outing at Knollwood
Sept. 17, 1954
Square, Boston 9, Mass.
Sterling
Company, Exchange Building, Seattle 4,
Wash.
Country
Calcutta
the Albany
a
Country Club, Lake Forest, I1L
v':,
Snap-on-Tools Corporation
Chuo-ku,
reference to Seattle Gas Co., Cascade Natural Gas
Corp.,
Portland Gas & Coke Co. and Washington Gas &
Electric Co.
—Pacific Northwest
/
cago annual
Stores
Japanese Corporate Earnings for fiscal
half-year ended March
31, 1954—In current issue of Monthly Stock
Digest—Nomura
lar
Hill
Park
preceded
by
Aug. 12 at
Municipal
on
Melville Shoe Corporation, J. C.
Penney
Western Auto Supply
Company, and F. W. Woolworth Com¬
Natural Gas for the Pacific
the
at
Dinner
Sept. 10, 1954 (Chicago, 111.)
Company—Bulletin—Thomson
Street,
Investment Opportunities in
Japan—Circular—Yamaichi Secu¬
rities Co., Ltd., Ill
Broadway, New York 7, N. Y.
,
frolic
Club,
Ruberoid
"Weekly
Co., Ltd., 4, 1-chome, Marunounchi,
Chiyoda-ku, Tokyo,
Co., Ltd., 1-chome, Nihonbashi-Tori,
Tokyo, Japan—61 Broadway, New York 6, N. Y.
Denver-Invest¬
of
ment Bankers Association summer
Remington
on
(Denver, Colo.)
Club
Hotel.
Japan.
Securities
Field
Paragon Electric Company—Special report—Loewi &
Co., 225
East Mason
Street, Milwaukee 2, Wis.
i
Stock
Market—In cur¬
Stock Bulletin"—The Nikko Securi¬
of
Investment
Aug. 13, 1954
Co., 36 Wall Street, New York*
Also in the same bulletin are
Rand and American Machine &
Metals.
telling the story of
groups—"Achievement," National
Pittsburgh, Pa.
Foreign Investments
In
Mille-
McKenzie"
Ltd.—Data—W.
5, N. Y.
film
steel available to organized
Steel Corporation,
Building,
Place, Jersey City 2, N. J.
Pacific Can Co.—Data—Bache &
Achievement
Bank
EVENTS
1, Minn.
Opemiska
pleased
of information presented
Thomson, President of Northwest Bancor¬
York Society of Security
Analysts—North¬
Bancorporation, Northwestern
apolis
parties the following literature:
COMING
Bancorporation—Reprints
Cameron
poration to New
is
Co., 60 Beaver Street,
New York 4, N. Y.
Dealer-Broker Investment
It
&
1954
1-
376
Broadway, New York 6, N. Y.
BOwling Green 9-0187
Tel.:
Head
Office
Tokyo
nounces
DEMPSEY-TEGELER & CO
D.
Muir
company
i
an¬
the resignation of Edward
as
Vice-President of the
effective June 30.
Volume 180
Number 5342... The Commercial and Financial Chronicle
-
(213)
tire orchestra floor into
Pioneering and Progress
Mr. Robb
reviews
best
NBC
result
equipped
we
of
for
several
I
cause
speak to you today,
One
reasons.
is
be-
Color
about
talk
to
like
largest
color
and
we
a
have telecast in color
stopping there,
Presently workmen
assist
the
advertiser in
something
caR
are
last
that
summer
we
Color Clinics,
want to learn
1, and we will have another pickup from this same location. Then
the Unit moves on to Cleveland,
of
obligation to see
a lot of advertisers wanted and
June 30 and July
on
his
color, we at NBC
that they know all the aspects of
color. Toward that end we began
visiting with Governor
Mrs. Lausche at the Gov-
HOME show
onstrations.
not
To
Mansion—the color casts
this tour were presented on the
on
good many closed circuit demWe're
and white audience.
win
ernor s
40
over
tem continues to deliver the black
were
and
television
We're pretty
the great NBC shows—besides
course.
of pleasure to
Mississippi — a sort of a
holiday in brief for those
T
"g' ^ * ""v"61 ° fa ' consideration of
there was a color pickup where have felt it our
tour from Columbus Ohio,on this
proud of this theatre, from whicn
progress
It gives me an unusual amount
the
is
theatre in the world.
of Color Television, which, he
accomplishment opening a
new
era
in communication, advertising, entertainment, and
service to the general public. Sees in Color Television a broad¬
ened field for advertising, and holds it will not be too expensive
i
the
Summer
the
reports, has become an established
U1
of
necessarv
The
Coordinator,
of Administration—Color
Director
enor-
evervttfine else^hat is
^r
hest
froriurtinns
tor the best productions.
By ARCn H. ROBB*
■f
an
And—final-
room.
television audience who
In Color Television
/
control
mous
9
as
much
about color—how it
p0Ssible
as
them
can serv*
adjust~
__how they can best
ipo help them, we started
to it
these
Washington, Philadelphia, Baiti- ciinics. And in every clinic, the
^ore and Boston there are two, advertisers' art staff gets together
Just to take one small example
—flesh tones. You see flesh tones
every day; you look at them and
busy renovating the old Warner
Brothers studio in Brooklyn, rebuilding it into the largest studio
expert
2?^s1n Pickups each week—ioi wRb j.be nbc Color Corps and
™ 1(J wee£S on the JIUMJl sh°w- create their commercials in acf,ni^ tour nas already .shown the cordance wrr the advertisers'
available for color television. And
^
^
idea, our Color Corps assist in
I31™"'tbe fabulous Busch estate putting these ideas before the
you're
them;
admire
an
„
about them.
is
Another
that
you,
more
than
groups,
most
will be inter¬
ested because,
In
bank¬
in
est
had to start all
inter¬
of your
ing
tradition
tirely
in new things,
tronic
Arch H. Robb
tries, and new
services. And
pioneering
where
now
is
r_
__
about it from
I want to tell you
about,
Two, what it is.
And three, what we, of the National
Broadcasting
Company,
responsible
principally
developing it—what we hope
will come of it.
...
,
beginning
real
the
First,
of
Color TV was 30 years ago, when
scientists
playing
were
around.
itself.
with the idea of television
RCA—tossed $30 mil-
After that,
This year KLA
another $15
lion into research.
NBC has added
and
it
to make
million
Just
a
reality.,
a
ago—when
year
m-T
x
decided that Color
'
that they would
so
RCA
_
Television was
And
finally
about
the
decision:
a
but
Television,
Color
had
we
where
to
were
we
going with it?
Pat Weaver—now the Presi-
dent of NBC.
#
And his
.
primary decision while
meant
tremendous
a
reorganization,
had grown
People who
accustomed to the pat-
processes.
tern of black-and-white television
thinking had to learn to think in
color. This applied to everybody:
propboys and electricians, producers and designers—everybody.
But the word went out that NBC
going to think in color
was
in
barely
have
we
100% of
months
11
and
then
almost
since
indoctrinated
our
bpiipvp
r
jo
H must encompass all the
our lives: it cannot just
fact0rs of
remain
goal
consist
^bree color
of
two
large
equipped for
all designed
°
cameras
_
.
.
_
j^y NBC engineers snd spesking of
investment again — this unit was
at
bring
of
cost
a
$750 thousand.
to
television
the
audience
tbe coior story of this great coun-
fry.
L
Last
Year's
New
to the West Coast and telecast the
of
Parade
Roses.
the
Tournament
that
After
'
such
it
things
of
showed
as
prize
fights from Madison Square Gar-
........
peguR,
have already set
we
in
in
color
for
tour
of
now
10
it
is
on
a
coior
Sometimes this
cameras.
and
manvmo^ecok/
close of the day_on color monithis
to
excltin® facets o£ story of Ameri¬
thls new me"
dium—telling the
in true, glowing color.
ca
I've
spoken
Everybody
held them for 45
cies.
our
who work
+
Un4-
1
every
30
wri keep
east
families
million
in black
on
and
who
white
We
and
y0u
condition:
have
the
learned
entire
is
will
continue
them
industry—not
Earlier, I told
I would tell
you
angles; what has gone into mak¬
ing it, what it is, and what we
hope will come of it.
I've tried to
cover
.
even
the first part,
__
.
everything I have told you under
Senenc title of investment
"77
s investment in a new me-
So
.
,
naturally, you re Pretty
advertisers to move into
color since RCA's compatible sys...
to
$5,100,000
advertisers
New
York' personnel
into the ways of color.
To do this, we engaged the best
people available. One of them—a
color consultant—is a man who
and
everybody
(First installment of
else
a
Continued
on
'
proposed issue of $7,800,000)
wbo have any interest in it.
I have mentioned
orRy to emphasize
when
statement:
all-out
g0
for
It
was,
these
things
original
my
NBC
decided
Chicago, Milwaukee, St. Paul
to
an-d Pacific Railroad
color, we meant
in effect, part of
investment
in
the
future
of
television,
j
just
now
vestment"—a
word.
the word
used
good, sound
you
wrj be interested in
and
money
I used it in connection with
pe0ple, but I think
ers
Equipment Trust, Series SS
"in-
as
2%%
bank-
other,
investment
strictly physical,
Equipment Trust Certificates
our
To
mature
$170,000 semi-annually January 1, 1955 to July 1, 1969, inclusive
well.
as
You
have
can
the
nel in the world,
need
y0U
more
best person-
but, in television,
than people.
stage sets and lighting; you
background material
that goes into a show.
need all the
We began working on this sev¬
eral years ago.
We began with one small studio
jn Rockefeller Center—Studio 3H,
call it
where
guaranteed unconditionally as to payment of prittcipal and dividends by
ul and
Chicago, Milwaukee, St. Paul and Pacific Railroad Company
You
need
we
To be
Hollywood for art direction. All
the others are up to his standard.
generally
stage
commercials,
though
we
have and are presentlv originating color shows there. It's as thor-
And the people in
oughly equipped
ing fields
Maturities
Yields
Jan. 1, 1955
July 1, 1955
Jan. 1, 1956
July 1, 1956
Jan. 1, 1957
July 1, 1957
Jan. 1, 1958
July 1, 1958
1.40%
Yields
Maturities
Jan.
July
Jan.
July
1.50
1.70
1.85
1,
1,
1,
1,
Jan. 1,
July 1,
Jan. 1,
July 1,
Jan. 1,
July 1,
2.00
2.10
I960
I960
1961
1961
1962
1962
1963
1963
1964
1964
'
Yields
Maturities
2.60%
2.65
Jan.
July
Jan.
July
Jan.
July
Jan.
July
Jan.
July
2.70
2.70
2.75
2.75
2.80
2.80
2.825
2.85
1, 1965
2.875%
1, 1965
2.875
1, 1966
2.90
1, 1966
2.90
1, 1967
2.925
1, 1967
2.925
1, 1968
2.95
allow.
six
won
Academy
Awards
in
the correspondequally good.
I'll give you some examples of
what the NBC Color Corps has
are
done in this regard.
To
ards
colors
looked
a
over
,
begin with, we had no standto go by.
Everybody knew
what
Rut, of
So,
to
like
the
—
the
the cost of about
ter million
redid
color
the
television
standards
•a
as
electronic
had
to
they
appear¬
eye
camera,
of
the
new
be established,
«,ik
hy Mr. robb „ a luncheon
meeting of the New York Financial Adv«rtisers, New York City, June 30, 1954.
took
Theater
it.
one
dollars
We
built
and
we
a
2.40
2.50
Issuance and sale of these Certificates are
J
1, 1969
2.95
i
*
...
R. w. pressprich a co.
baxter, williams &. co.
quar¬
completely
stage big
freeman l company
wm. e. pollock & co.,
inc.
Ji.Iyl2. 1954
julien
ira haupt & co.
collins & company
mullaney,wells &. company
f.s. yantis &. co.
INCORPORATED
by all theatrical Standards, Owelty
turned the
gregory &. son
INCORPORATED
the
°ut >"? lifting system that is,
we
2.95
2.95
subject to authorization by the Interstate Commerce Commission.
_
Monaster hutchinson a co.
Then
1, >968
1, 1969
halsey, stuart a co. inc.
on
enough for the most complicated
showsi that have ever appeared on
commercial television.
Then we
fantastic.
-
-
Broadway, in New York. This was
a iarge, vaudeville
theater, and at
question of colors
to
Jan. 1, 1959
July 1, 1959
2.20
2.30
will
wasn't enough,
years ago, we
Colonial
human eye, but when it became a
ed
its size
as
course, it
couple of
we
en-
I
-
j£.br*eTfly* You might lump
easy
merely
see
about color television from three
strong¬
so
until
opportunity to
everything
available
lighting
their work in color.
delivering the sell-
white
3
_j.
_
studio
continuing these clinics;
are
we
have had the
this makes it comparafor the black and
see
tively
These prod—
i
been colorcsst under
all our NBC television advertisers
it
jng messages of the sponsors.
i
done.
can
and
the
before
and the cold wintry skies of a
New York in January. In short,
there isn't anything we haven't
in color,
be received equally well by
r
we've
products
ucts hcive
that the program, telecast
see
from
and
and evening gowns.
v»
However, before we talk of the
advertiser in color, I want to bring
in the word "compatible." You all
know what it means, of course,
the
learned
—
different agen¬
cameras—products as diverse as
automobiles and cigarettes, soup
One very important part of the
story, I haven't mentioned yet.
This is the part color television
plays
in
advertising.
You
all
know, of course, that television
even black and white television
is the most potent marketing influence in America today,
wri
agency
We've put well over 200 dif¬
ferent
*n color and the physical equipwe have so that you, can
realize the great faith we have in
new medium. But th&t s not
wh°le story.
4-"U J«
has
experiments
these
1
about
little
a
the people
assembled
personnel.
television
believe
we
can
shown on a closed circuit—at the
tors
,
special
cities'
American
Whitnaii
^^altimore and many more colorful ^ots*
thls to me 1s one .of the most
the
shadow
of the
Jefferson
Memorial in Washington, D. C.
Even
beautiful
makeup, in costumes, in sets.
ly in color television,
we
many
^Baltimore
investment:
trucks—completely
built
Houis
.ai£ ln Milwaukee—is currently be done
a
day—gomeat Governor Lausche s residence times it takes longer — however
irf
bus and thereafter will the final result—a regular cornvisit Mount Vernon, Lee s Man- merciai
coior
presentation
is
stationary.
Toward that
have created mobile color
we
units'
~"xhese
called
graphic arts people worked with
experts in their field. And as a
not
merely of physical quantities but
of mental
our
worry
to
the leading paint experts, and our
our
was
of
of
den and the Easter Parade from
the Waldorf Astoria Hotel; and
in a special program on the HOME
with the dye and fabric industries, show, it revealed all the beauty
and scenic designers worked with of the cherry trees blossoming in
an_out.
This
nrr
part
don't want to bore you with
detaRS) but I would like to point
out that the color Corps worked
would be all color.
amount
a
I
extremely 1mportant: NBC would not be halfcolor,
half
black-and-white, it
simple
very
^t.
to the broadcasters but also to the
The irtdft who made the decision
was
!Xn
be
at
wp
commercials—so they would har- America
And because
had
somebody
had
we
department
monize with everything.
NBC then took over.
here,
to
Day, for instance, the Mobile Unit" went out
graphic art—where the art work
is done for titles, subtitles and
standards
make
har-
think about, so that they would
harmonize with the costumes and
the makeup colors.
good enough to come out of the
ivory tower of experimentation,
And
1ivpc.
_
We had set and scenic colors to
into mak-
One, what has gone
ing it.
are
only
were
•
is
momzeand actrossps. tones of the This unit> has a special purp0se. It
with the skin
artors
actors and actresses.
is to go everywhere in America to
three angles:
who
tints
otnrtr
We had costume colors to think
interesting,
most
and
makeup
r\-£
when part of the story:
being done.
for
en¬
an
^
Color TV was 30 years ago,
fields
created
we
series of makeup tints,
especially for the elec-
camera.
But
it4
newest,
of
series
new
a
TV
color
new
designed
indus¬
new
again.
makeup expert, and
with their aid
interest
of
—
developing
ca's foremost
pioneering
of
over
makeup colors we called in the
laboratory technicians of Ameri-
which has
the
good many
a
years,
think
I
that
And for
in California we're building a new
moving
picture
photo- three and a half million dollar
graphers had worked out makeup studio for color. ?. And in the not
palettes so that beautiful women too distant future we expect to
and handsome men would photo- have others in
Chicago, Washinggraph becomingly. Unfortunately, ton and Cleveland.
none of the standards they had set
Another part of our physical
was good for color television: we
equipment is mobile. After all, if
Tjelevision.
page
32
10
(214)
The Commercial and Financial Chronicle
Lauds
It is
Gyrus Eaton's Contribution to
side
perhaps surprising
of
the
vorite
Canada's Economic
Last
winter,
the influential
"Daily Mail" of London, England,
their
sent
crack
correspondent,
international
G.
Ward
on
Price,
tour
a
the
of
British
Commonwealth.
Cyrus
Eaton
of
Canada
who
is
Ohio,
ironmaster
of
of
out¬
an
who
is
ing
Dominion
role
will
Eaton
looked
is
the
fact
that
that
Chairman of the
billion
dollar
he
of
Eaton
Board
of
Chesapeake
the
and
of the
constructive
in
business
Price's article
the
who
Like
reproduced
With
as
a
Kingdom,
and
of
the
that
of
of
that
less
the
than
is
than
United
the grand scale.
richly rewarded.
capitalists, scientists, and
engineers plan and operate in a
big way.
The risking of great
financial
stakes
and the
pains¬
taking exploration of vast terri¬
tories
are
the custom of the
coun¬
try.
Spirit
One
of the first things
I, as
visitor, noticed was the team
spirit that pervades these great
Canadian enterprises.
When the
millionaire
financing a venture
arrives in his private aeroplane to
inspect
the
.
to
was
aire,
such
richest
work,
he
calls
meet
who
this
took
in
student's
in
the
and
life
are
offered
the
fancy
him
a
to
the
him
only
27,
worth
was
his
will
ship its output to the United
become
he has
owner,
lavishly employed
development of his native
the
land
for
is
undertaking is to ex¬
tract what is ultimately expected
to prove 1,000,000,000 tons of ore
it
of
iron
Rock,
lay
Steep
four miles
as
the
ural
channel
frontage
formed
Eaton
the
solid
When
i
middle of
up,
under
the
was
the
lake
and the water
ing the
ore
Cyrus
it
lake.
Much
is
like
smokes
nor
athlete.
He
he
on
expansion.
a
She
by
ex¬
"She
says.
bold
course
needs
ideal
an
ment of
neither
combination
drinks.
a
calls
ada
for
an
robust
and
"There
a
steady
supply
labor.
intelligent
is
of
difficulty
getting labor for the North,"
I was told by Mr. C. D. Howe,
the
Deputy Premier, to whom
much credit is given by his fel¬
never
All of these shares liavitin
been sold this advertisement
appears as a matter
uj record only.
l
■
;
NOT A NEW ISSUE
low-Canadians
with
which
for
he
the
eagerness
promotes
,
public
works.
17,000 Shares
Immigration seems to be the
only rapid form of economic aid
for Canada.
The Dominion
re¬
THE PITTSTON COMPANY
ceives about
170,000
new
settlers
year, most of them coming from
Germany, Holland and Italy.
a
5lA% Cumulative Convertible
Preferred Stock
($100 Par Value)
Calif.
—
Joseph
J.
Artesi has been added to the staff
of
King Merritt & Co., Inc.
With
Shearson, Hammill
BEVERLY f
Francis
W. E. HUTTON & CO.
and other
Philadelphia
Burlington, Vt.
Hartford, Conn.
Columbus, 0.
Lewiston, Me.
affiliated
mill
&
HILLS,
Mitchell
with
Co.,
Shearson,
9608
He
has
was
Santa
Calif.—
HamMonica
formerly with
Joins Calif. Investors
(Special to-The Financial Chronicle)
Dayton, O.
Easton, Pa.
Lexington, Ky.
Portland, Me.
LOS ANGELES,
Calif.—Aubrey
Shonberg is now with California
Investors, 3924 Wilshire Boule¬
vard.
cut of
a
United
"This
is
anese,"
their
(who
eloquent testimony
"in
He
view
manufacturing
costs
as
are
hindrance
severe
remarkable
material combine to
ple.
from
marginal
valuable
healthy. La¬
terprise,
to
essential
in
necessary
Whereas
are
now
fectively
Grove
step
bv
Japanese
economy
the
in
yen
benefitted
1949,
are
that
the
LOS
va^ue
seems
money
of
the whole
While
the
he
coun¬
w^s
im¬
new
side
comment,
remarked
that
Japanese
banks, all in the
were
being curtailed.
interesting
an
center of
R.
head
reported
Formosa,
Hong Kong.
varvir
The
Staff
to
Financial Chronicle)
ANGELES, Calif.
Fewel
Hugh
—
become associated
&
Co.,
453
South
was
previously
Hammill
&
Williston, Bruce
with
Co.,
and
& Co.
CHICAGO, 111.—The Executive
Committee of the Midwest Stock
Exchange has elected
to member¬
ship in the Exchange the follow¬
ing: Robert G. Mead, Stone &
Webster Securities
Corp.,
Robert A.
Chicago;
Jablonski, Chicago; and
Francis A.
Kenney, Chicago.
.
With Walston & Co.
(Special to The Financial
Chronicle)
SAN
FRANCISCO,
Dorothy
the
R.
staff
Jaschke
of
the
New
Street,
York
cisco Stock
Calif.—
has
Walston .&
Montgomery
bomb
joined
Co., 265
members
and
San
of
Fran¬
Exchanges.
With Sutro & Co.
CSpecial to The Financial
Chronicle)
foreign
SAN
conditions
t^e Philippines and
Overriding concern
of the Chinese
Co.,
Midwest Exch. Members
destruction.
in
&
Tokvo,
singularly free from
The Bank of Marhattan
to
Shearson,
J.
Cadillacs,
non-income-producing
are
Europe
Sincere
Spring Street, members of the Los
Angeles Stock Exchange. Mr.
pressed by the fact that business¬
men. in Japan
seem
inordinately
expenditures
on
Europe.
Purcell has
Purcell
present
some smaller concerns but in
gen¬
and
of
people
the
Ministry of Finance and the Bank
of Japan will cause
difficulties to
tuted
tour of
CSpecral
greatly from
of
which
try, he said.
of
Fewel Adds
D.
likely to hold.
The tight
policy (rates average 9%)
eral will benefit
dislocated
already crowded
Welch
with
new
banks
added
establishment
a
up
our
He
on
step, the
standards, thev
strong institutions, ef¬
serving
the
country,
said.
is the
influx
Chicago, has been
visiting London
en¬
foreign markets.
overloaned by
said,
an
Tour of
Fd
hard-oresspd
building
are
Grove
Edward Welch
development
this
And
economy.
Japanese
of
loss
economically
and
long-run
a
an
number of
bor and resources will be diverted
to
for
metropolis.
Vx^m-
marginal enterprises will prob¬
ably go under in Janan. the net
effect of this will
South
America
part
million
jamming
The New York banker observed,
a
in
problem:
2
some
ment is rife.
however, that while
now sell in
South
Meantime, perhaps their
refugee
Unemploy¬
condition.
m
and
chief problem,
put the
o^e
inter¬
would
benefit from
trade with
Red China because
Western prod¬
ucts themselves would
convey a
message of hope to the
down¬
trodden.
imocrted
shipping indus%v. for
months)
trade with mainland
where pay demands have been un¬
realistic.
This
factor
together
of
recent
China. Many
Hong Kong traders feel the West
tended to price labor right out of
the
market
in
some
industries,
co«t
Asia
compensate
achievement.
high
in
world's most
prod¬
Since the war, unionization of
Japanese labor has been a mixed
the
of the
ucts, which they
East
ability to meet world competition.
But
he
believes
prices will be
brought down 10 to 12% this year,
a
America
one
New industries have
been estab¬
in
Hong Kong, such as
enamel, textiles and rubber
their
to
banker
lished
production ecuiphas hurt cuality.
Result has
a
a
esting cities.
about 25% too high and outmoded
ment
enjoying
Hong Kong
York
not
easily impressed:
Manhattan's world-wide
of
Latin
of
that
stated
New
foreign operation has taken him
to
Europe as well as Asia and
to
of the Jap¬
said,
Grove
is
Bank
and insufficient
been
the previ¬
efficient Jap¬
trade position.
impressed the
expenditures in
problems."
Japan's
bv
the
Chinese
have
built
the Japanese industrial
upon
sound
$100,000,000
some
States
year.
accomplished
Japan.
turn to
Boston
be
will
the ability and spirit
become
Lester, Ryon & Co.
CINCINNATI
Baltimore
J.
Boulevard.
Exchange
leading exchanges
NEW YORK
in
In
(Special to The Financial Chronicle)
Members New York Stock
despite
Grove
-
$90 000,000
this
1
The
Grove
found
the
Philippines
re^tivpJv prosperous
with no cru¬
cial
problems
and
will
$300,000,000 for the previous
And
is
from the occupation.
Curtiss C. Grove
deficit for fis-
about
world
plants, using and improving the
equipment they have inherited
he reported that a genuine aus¬
terity program has been insti¬
(Special to The Financial Chronicle)
Price $107 per Share
we
well equipped with
King Merritt Adds
BENICIA,
situa-
He estimates
Japan's trade
total
occupants,
anese.
1954
productive
the
levels attained
ous
th*.
any
in
k
the
eco¬
cal
maintained
a
dustry has been expanded beyond
re¬
area's
nomic
is
army
pilot plant, Grove
reported. There
have been land reforms
and in¬
un¬
huge country like Can¬
for*
Knowing that
the
more
precedented era of prosperity."
Besides
finance, the develop¬
being
and
an
watching them, the Chinese are
striving to make Formosa an ideal
en¬
on
more
resources,
exceptionally handsome
an
embark
back
highways and electric power. Her
human and natural, are
than
with snow-white hair, blue
eyes, clean-shaven face, and the
figure of
■
serious
by the fact
is
which is not in itself
govern¬
an
million—is
600,000
force.
officials
with
Caution
held
caution,"
of
"tycoon."
a
is
should
himself
cardinal
call
con¬
are
treme
out, leav¬
Eaton
a
ore
possible
"Canada
field to be mined.
Stephen
iron
an
others.
the
blown
was
ran
open
mighty enterprises,
only by the bold
use
of capital.
Mr. Eaton, him¬
self ready to make great bids for
fortunes favors, does not think
highly of the spirit shown by
con¬
under
shaft
and
raw
was
of
top
ment
10
exacerbated
blessing, he noted, because it has
work
to
These
made
started
rock
the
remains
that
cession in Northern Quebec.
Lal^e Huns Out
deposits
leading
competition with the Ungava
enterprise
is
a
new
company
prospecting of Steep Rock
£7,000,000. When the pres¬
the
ob¬
In
Too
of
There
power
half the year.
village of Atikokan, On¬
tario, from 300 to 20,000.
ence
ore
into
Hudson's Bay.
The advantage of
the Ungava Bay location consists
of a deep-sea harbor with a nat¬
A characteristic
consequence of
this successful enterprise has been
to expand the population of the
cost
iron
me.
electric
abundant
into
15 miles long,
broadband 50 feet deep.
The
surface
on
tainable from the rivers that flow
which
—•
known
lake
miles
110
there," Mr. Eaton told
of Canada.
a
the
on
Bay in Northern
Quebec Province, "you can walk
whose wealth is
in
is
shore of Ungava
of the financial Titans
one
other field
The
to
returned
bankers, i n dustria,lists
iron
States.
mine
an
familiarity unusual.
under
of
sources
utilities and
He
Typical of the rich men who are
■extracting the hidden wealth of
have
to
two
One of them, at Steep Rock,
man,
such
control
ore.
by him in the same
without either party finding
is addressed
t
hall, with
then,
as
banker,
tire
manufacturer, controller of public
Since
Canadians
name
intends
Eaton
close
£1,000,000.
what
first
:
many
and
his
""
,
in
post
Vice-President
has just
Far
visiting
port
minstrels'
gallery
complete.
It
one
was
built in England, taken to
companies he con¬
pieces, and 1 shipped across the
trolled. Ten years after entering
the oil emperor's employ Eaton,, Atlantic.
and
of
lation
tour
with
''
manor
The problem of increased
popu¬
on Formosa—from 6
million
Man¬
seven
couraging
r'
the
of
sons
the "lounge," where visitors
received, is a reproduction of
Elizabethan
an
a
Eastern
Office
-
Bank
Grove,
from
daughters.
■
foreign depart¬
Company,
week
impressive elements
in Mr. Eaton's surroundings is the
magnificience of his offices, which
fill the top floors of a skyscraper.
They are panelled in English oak,
multi-million¬
a
I
to
He has two
:
the
of
Curtiss
day
when
One of the
Rockefeller:
stroke of luck
more
by
five
..
his
man
south
go
Unusual
posi¬
a
among
D.
theological
looks
foreman
never
and
\
-
ment
hattan
bitter
winter
children to ski."
also
driving a
2,000 foot tunnel upwards through
f
a
way
first
firmed
Team
and
nearest
Her
.
The
young
under
they fail they keep a stiff upper
lip—but when they succeed their
are
the
world—John
—6*0%
are
If
efforts
store.
numbered
congregation
the
tenth
a
tackling
developing their
on
farmer
a
village
and
States, .the
United
of
national assets
less
of
Canada
problem
70
His latest
population
of
people
Cardinal"
a
below:
one-third
the
enterprises,
it appeared
Mail" of June 15
caption "The Tycoon
the
Looks
the
tion,
in¬
"Daily
under
kept
on
world-wide
terest that attaches to Mr. Eaton's
Mr.
was
on
Florida,
like so many people do in the
winter," he said. "It's too ener¬
vating. I take my winter holiday
on
the slopes near the St. Law¬
rence,
teaching my ten grand¬
in thcfCanadian village
Pugwash, Nova Scotia, where
when
Ohio Railway.
Because
born
was
the
over¬
Mr.
Eaton
uncles already held
portraying Mr.
America"
S.
week's tour.
The head of the
estates.
typically
a
Canadian
Young Cyrus was brought up to
be a Baptist Minister. One of his
"the greatest ironmaster
as
North
of
in
Cyrus
shorthorns
country
was
the
"I
year.
ad¬
in
progress
Price
a
breeds
He
Far East
on
Grcve, head of Bank oJ Ihe Manhattan Company's
foreign department, reveals impressions gained from a seven
American-
the
Report
Curliss
well-
a
had lunch with Mr. Eaton.
produce
soon
me
New York Bzuker Gives
fa¬
riding
explanation of the dif¬
large
It
the
years ago
one
Canada, to be
written up in the "Daily Mail"
under his by-line.
So engrossed
Mr.
that
First Luck
his father
tremen dous
was
added
£150,000,000 worth
of
vancing
Cyrus S. Eaton
He
gave
between
Shires.
of
ex¬
play¬
major
a
America.
of
Canada."
He
be
Virginian foxhound and the
British type he imports from the
two
choice
standing
ample of
North
should
his
bred
"Despite the growing use of
plastics and light metals," he told
me, "iron is the key to the future
Mr.
was
informed
ference
Cyrus S. Eaton,
becoming the greatest
is
hounds.
to
Mr.
Cleveland,
Price's
Development
pastime
.th^t
on
that
Atlantic
Thursday, July 15, 1954
...
on
js
the main^ed. with
a
re¬
tar¬
FRANCISCO,
David F.
&
Co.,
407
members
San
Jue
is
now
C
a
1 i
with
Montgomery
of
the
Francisco
New
Stock
f'.
—
Sutro
Street,
York
and
Exchanges.
get date of anvv/here f^nrq 8
to 18
months. The decision of the 14.000
freed Chinese nrisonprs/ of
Korea to go to Formosa
than
return
profound
to
Red
war
(special to The Financial
Chronicle)
'
rather
China
encouragement
With First So. Investors
in
to
gave
the
Nationalist Chinese, Grove said.
BOYNTON
Mari?ulies
Southern
is
BEACH, Fla.—John
now
Investors
.
w
i t h
First
Corporation,
Southwest First Avenue.
.Volume 180
Number 5342
..The Commercial and Financial Chronicle
.
(215)
of the entire
serves
sterling area,
policies
may well be neutralized by in¬
appropriate policies followed by
and
Currency Convertibility
Can Be Achieved
Accepting, then, the immediate
goal as convertibility for current
trading, it is important to con¬
By K. C. TIFFANY*
sider what
be
can now
dangers of attempted
com¬
courage
plete convertibility of sterling, and
says we can only hope for
convertibility for current trading. Holds deflationary monetary
policies and reconstruction have brought world's trading posi¬
tion into near-balance, but stresses need of adequacy of for¬
eign exchange reserves, if convertibility is to succeed. Urges a
rising flow of dollars to rest of world by U. S. instituting more
liberal trade policies.
1
My subject is "Currency Prob¬
ditions
are
is
dollars
tall order
a
not
very
and
certainly I do
elaborate
to
propose
the
on
freely
is due
existing
convertible
have
de¬
more
tails of financ¬
their
ing such trade.
mit.
More
abroad
ically, I
going
talk
to
with
to
at
buy
had
whether
control
these
by
ex¬
be re¬
jto
currency
restrictions.
import
or
per¬
of this
some
demand
strained
would
maintain
to
order
cessive
am
converti¬
on
In
receipts
bility of cur¬
rencies, both
friends
States
to
appropriately balanced
payments position. Convertibility
could not be maintained, for ex¬
course,
an
against the pressure of a
persistent excess of world pay¬
ments over receipts of dollar.
It
is true that by altering the ex¬
change rate we can always bring
about a balance, but so long as
inflation gives rise to an.artifical
ample,
this
demand
would
rate
new
be
it
to
seems
me
to be the
it
Kenneth
C.
Tiffany
increasingly recognized
convertibility can now be
But
first
terms.
our
let
define
me
Convertibility
in
and
that
sense
means
any
national
of
my
used for
as
today
purposes
broadest
holder
its
any
currency
should be free to exchange it for
'the
of any other coun¬
existing rate of ex¬
implies the complete
absence of exchange controls. The
subject of convertibility to gold,
currency
try
the
at
change.
It
while
important, is for another
day and
probably for another
generation.
Gold
is
now
con¬
trolled
through the various Cen¬
no longer provides
tral banks and
the
intrinsic
desired
by
re¬
value
to
currencies
classical
some
econo¬
area.
subject to continuing pressure.
few
World Trading Position Now in
Near Balance
the
On
in
has
the
past
question
then
of
the
basic requirement of balanced in¬
ternational accounts, we find that
deflationary
and
reconstruction
world
the
.policies
monetary
the
have
trading
brought
position into
balance. Almost everywhere
near
situation
This
.
the
with
trade
world
in
ances
dollar
achieved.
I
of
lack
Thus,
coming
that
of
the currency aspect
be¬
is
needs
be given priority.
convertibility was
of the imbal¬
opment would
on
policy
and because
also
the
dollars
construction and economic devel¬
of the current
trade
applied controls
in spending their
that
insure
limited
core
debate
countries
most
excesses
have been eliminated
If,
objective
for current
then,
you
vertibility
some means
considerable prog¬
made
freer
toward > a
ress
for
markets
Commodity
eased.
been
have
economy.
import restrictions
British
Many
items
many
have
countries
anced
have
a
must be found of sup¬
Holders of these
convert
into
other
cur-
them
freely
currencies and,
conse¬
can
quently, have a degree of freedom
to
purchase goods where they
please.
convertibility,' how¬
ever, is not enough.
We might
have convertibility in this sense
and yet be far from our objec¬
tive
if
it
offset
was
by
other
types of restriction, for example
by quotas or licensing of imports.
In short,
if we mean by con¬
vertibility free exchange markets,
then
must
we
also
elimination
the
the
the
quantitative
which
defeat
discussions
current
convertibility there
are
be
achieved
The
ture.
in
the
near
fu¬
proponents of conver¬
tibility certainly believe in free
exchange markets in the fullest
sense
a
as
an
not too
ultimate and, indeed,
distant objective. What
they have in mind, however, for
*
immediate
the
future
is
a
more
modest goal.
It is that goal and
the possibility of reaching it that
I want
to
market,
strengthened
discuss today.
An Important
Aspect of Postwar
Trade Problems
aspect of the postwar world trade
the
address
Bond
June
24,
sterling
at
is
present
of the official rate.
York
New
in
within
non-discrimination
Club
by Mr. Tiffany before
of Chicago, Chicago, 111.,
1954.
Compete
Dollar
Goods.?
We have
the
at
same
tion
for
the
maintenance of con¬
If, for example, only the vertibility is also their ability to
United
Kingdom made its cur¬ continue to compete successfully
rency convertible, other countries with dollar goods in third mar-*"
would be in a position of riding kets. In many
cases, for example,
on
the back of the United King¬ British goods are
being purchased
dom.
The
more
countries
that because dollars are not available
simultaneously restore converti¬ for the purchase of similar item«
bility, the less would be the re¬ in the United States. It will be
difficult to maintain freely con¬
sulting dollar pressure on each.
I do not propose to go into de¬
tail here in regard to the various
vertible currencies if the first
suggestions that have been made
supplementing reserves. But
of
let
in
for
mention that it is the view
me
of many students of the
that
adequate
found through
situation
could be
much more active
reserves
a
utilization than heretofore
of
the
International
re¬
sult of
a
convertibility is the release
very large demand for dollar
goods and
consequent decrease
a
sterling area exports. On the
hand, there will be forces
tending to strengthen the pound.
Countries holding dollars, espe¬
cially in Latin America, will not
hesitate
to
exchange them for
.pounds, knowing that they can
other
Monetary Funds'
holdings of gold and convertible
currencies, presently amounting to reverse the transaction at will.
about $3.3
billion. As a second Though the transition will un¬
means
of strengthening reserves doubtedly be difficult while the
world watches to
and
see
if the
move
providing foreign exchange
will stick, many of us believe that
operations, it has been
suggested that the Federal Re¬ European countries will in the
end gain rather than lose dollar!
serve System explore with foreign
central banks the possibilities of by a return to convertibility.
standby credits or line of credit
arrangements. It does seem to be
clear
The United States
has, of course,
decisive role to play in the ap¬
a
under
present
conditions
that special credits will have to be
proach
granted to the United Kingdom in
already mentioned the necessity of
order
stabilization credits, but there are
facilitate
to
the
convertibility and to
against
move
to
maintain it
temporary
pressures.
other
convertibility.
to
too
areas
priate
in
American
I
which
action
have
appro¬
will
be
All these
encouraging signs,
are
just as encouraging if we
judge by some official
statements is the fact that these
and
to
are
developments are building up
abroad
a
will to convertibility.
It
remains, however, to agree on
what are the conditions that will
make
further
possible
progress
just what degree of progress
and
expect.
may
In the first place,
conditions
present
cannot
is
any
cur¬
we
hope
it
for
than convertibility for
clear
more
In
of
rent trading.
To permit conver¬
tibility of the huge sterling bal¬
of long-
the
of
one
staff
the
The
most
in
reserves,
It
detail.
some
are
is
more
than
$12
remains
the
equivalent
of
$9 billion or more annual
sterling payments to the rest of
the world. Under present condi¬
some
who receive this $9
for the most part,
spend them only in non-dollar
countries. If sterling were made
convertible, they would then have
the
option 'of spending this $9
tions,
those
billion
can,
in the
billion
dollar
area.
At the
present time, the central reserve
United
of
the
to
over
held in London
term
capital investments —and
of
to
Kingdom amounts
the
possibility
of
capital flights still
dollars
the
undoubtedly
scale
large
exists—would
available
the
impose an impos¬
quickly exhaust
strain and
sible
reserves.
international
Indeed,
it
character
is
of
which makes it both
important and difficult to move
rapidly to convertibility. For in
sterling,
move
every
from
of
the
account must be
pressures resulting
policies of
the sterling
actions and
members
other
area.
the
of
Thus, inflation in Australia
affects
the
dollar
and
gold
re¬
$2.5 billion, so that if 10%
$9 billion were converted
in one year,1 and the
staff of the Randall Commission
not
treme
regard this as an ex¬
assumption, then over one-
third
of
does
the
be obtained from
central
reserves
of
the
Merrill Lynch, Pierce, Fenner & Beane
Stone & Webster Securities Corporation
White, Weld & Co.
A. C. Allyn and Company
Lee
W. E. Ilutton & Co.
Higginson Corporation
Paine, Webber, Jackson & Curtis
Baker, Weeks & Co.
Langley & Co,
F. S. Moseley & Co,
Salomon Bros. & Ilutzler
A. G. Becker & Co.
G. II. Walker & Co,
Alex. Brown & Son u
Incorporated
Central Republic Company
1
Clark, Dodge & Co.
Dominick & Dominic)'
.
(Incorporated)
Hallgarten & Co.
Laurence M. Marks & Co.
Riter & Co.
Swiss American Corporation
Stern Brothers & Co.
Weeden & Co.
Robert W. Baird & Co
Kirkpatrick-Pettis Company
Piper, Jafiray & Hopwood
J. M. Dain & Company
William R. Staats & Co.
Bateman, Eichler & Co.
Quail & €o.
Elworthy & Co.
Goodbody & Co,
McDonald & Company
The Robinson-Humphrey Company, Ine,
Tucker, Anthony & Co.
J. Barth & Co,
Brush, Slocumb & Co. Inc.
Caldwell Phillips Co,
Courts & Co.
Crowell, Wee don & Co,
Chiles-Schutz Co.
Shu man, Agnew & Co.
Harold E. Wood & Company
July 14, 1954.
Newhard, Cook & Co,
Wachob-Bender Corporation
Irving Lundborg & Co.
The Milwaukee Company
Lee W. Carroll & Co.
Kalman & Company, In»,
McCormick & Co.
Shearson, Hammill & Co.
Henry Herrman & Co.
j
Incorporated
t
m
First of Michigan Corporation
Blunt Ellis & Simmons
Schwabacher & Co,
Spencer Trask & G\
Dean Witter & Co.
Incorporated
Cruttenden & Co.
likely increased speculative drains
would be such as to
W. C.
Carl M. Loeb, Rhoades & Co.
The Ohio Company
reserves,
Hemphill, Noyes &,C<\
Incorporated
Ilornblower & Weeks
Mitcbum, Tully & Co.
threaten the maintenance of con¬
Smith, Barney & Co,
Union Securities Corporation
swing in dollar receipts.
in addition to the pressure of
Kidder, Peabody & Co,
Incorporated
Lehman Brothers
Estes & Company, Inc.
The conclusion is that this pres¬
Glore, Forgan & Co,
Harriman Ripley & Co.
Goldman, Sachs & Co.
Davis, Skaggs & Co.
on
of the several under¬
Blyth & Co., Inc.
sterling area would be drawn
during that period unless
there were a compensating up¬
down
sure,
any
The First Boston Corporation
Eastman, Dillon & Co.
billion
annually, that of thifc total, over
$3 billion is already convertible
since
it is paid to the United
States and other countries. Thus,
there
may
States in which such underwriters arc qualified to act as
dealers in securities and in which the Prospectus may legally be distributed.
is
services from the rest of the
ances
or
Copies of the Prospectus
writers only in
interesting
pointed out, for example, that the
sterling areas imports of goods
and
Due November 1,1974
papers
adequacy of
of
examined
v
"
Price 100.50% and accrued interest
presented to
the Randall Commission, the con¬
cept
Company
3Vi% Sinking Fund Debentures
Dated July 1,1954
Question of Adequacy of Reserves
world
Trading Only
taken
Convertibility is, of course, one
♦An
of
rate
market
free
has
The
sterling
considerably.
markets
exchange
2%
has
example,
for
re-opened:
Gold reserves
been growing, and in the
been
under
of
few who
believe that both these objectives
can
cotton
we
of those markets.
purpose
In
in mind
have
of
restrictions
trade
opened.
The government
getting out of the raw
materials market.
The Liverpool
been
Convertibility Now for Current
Technical
Nations
With
time.
question
have
rences
Foreign
Successfully
tne
payment position with the
States, they must still ex¬
United
and
convertible.
granting them.
Can
indicated, at least in¬
other countries. Incident¬ directly, the importance of
foreign
ally, I am assuming that a large countries keeping inflation unde:?
number of countries would make control
by appropriate financial
the drive for convertibility and
policies. Another important copdiof
is, rather, what level is adequate
to bridge temporary difficulties?
are
of
trading,
porting the reserves of the United
Kingdom and, if necessary, some
pect temporary pressures. No level
of reserves is adequate to finance
continuing deficits.
currencies
con¬
reasonably bal¬
has
other
tov amount needed and the mechanic,!
are
of
Northern Natural Gas
has also
been
some
we
our
all know, im¬ Almost everywhere, too, produc¬
There are however, likely to be required. With the many demands
proved
considerably.
Undoubt¬ tion has been reaching record
Continued on page LJ
edly, it is still unsatisfactory, but levels. And particularly recently differences of opinion as to the
it
has
improved sufficiently to sizeable additions have been made
give many people, including my¬ to monetary reserves. In the 18
self, grounds for belief that con¬ months from 1952 to the end of
vertibility in a modest form is September,
1953,
the
total
of
This is not an offering of these Debentures for sale, or an offer to buy, or a solicitation
of an off'::' .'9
possible.
Belgium has removed monetary reserves in gold and
buy, any of such Debentures. The offering is made only by the, Prospectus.
restrictions on dollar imports; the dollars outside the United States
DUtch have largely followed suit; rose by over $3 billion, and they
the Germans have removed re¬ are still rising. This rise in mone¬
strictions
on
some
2,000 items. tary reserves has lately directed
$25,000,000
The United Kingdom, which as attention to the problem of what
the center of the sterling trading level is adequate to support con¬
vertibility. Even though foreign
area
is the key to this problem,
as
years,
mists, and this situation is un¬
likely to change in the foreseeable
future.
In the sense, then, that
I have defined the word, Cana¬
dian, United States, Venezuelan,
.
vertibility.
achieve
support
Moreover, at the end of the war
because
-
our
United
policies which will make
possible to maintain converti¬
bility.
Prom the point of view
of foreign countries as a whole,
the basic requirement is, of
from the United States than
dollar
both
the
and
it
foreign
rates
favorable to make the
that
pursue
that
wanted
exchange rates,
specif¬
the fact
to
exchange
countries
many
technical
not
are
and
move
The fact that currencies
problem.
future efforts.
We
therefore, that con¬
any
must be sure,
,
lems in International Trade." This
the conditions for
are
successfully achieving this limited
objective.
To
repeat the
1947
experience when Britain aban¬
doned convertibility after only a
few weeks, would seriously dis¬
Assenting convertibility of currencies is the core of the current
debate cn trade policy, Mr. Tiffany finds it is becoming increas¬
achieved. Points out difficulties and
British
associates.
her
Vice-President in Charge of Finance, Burroughs Corporation
ingly recognized that something like convertibility
appropriate
n
J. J. B. Hilliard & Son
Pacific Northwest Company
Sutro & Co.
Talmage & Co,
Woodard-EIwood & Compary
I
The
12
Commercial and Financial Chronicle.
.
Thursday, July 15, 1954
.
(216)
ment,
'
TO THE EDITOR;
LETTER
going
those
Forces Seen
Pointing
may
as it only
stirs up angry feelings been made for simple justice to
right now, and gold still
those oppressed, such as the gold
out without protest from all over again. We have had many
good years since the last war miners for instance, and still no
in charge of it. This practice
prove
to be treason or .near*
treason, some day, unless
at
an
not
quickly.
To Economic Disaster
closed and our national
stopped
all-time
off
paying
high,
income is
yet
6f
any
action in relief has borne fruit. An
are
debts
our
in those bad
contracted
we
years.
In
The above facts lead us
fact we are going still deeper into
enquire—what in the name of debt and we see no successful ef¬
common
sanity is going on in fort being made by either the
Washington, D. C.?
These facts Congress or the Administration to
must be known.
Are the Com¬
stop this trend. Has our govern¬
munists
still in control of our ment
gone "plumb loco" in this
Federal purse strings? Harry Dex¬ matter of finances? It seems that
ter White is reported dead, and
way.
some
of his fellow travelers in
We thought in our childish sim¬
prison or discharged from office. plicity, that if we voted for a change
They were the authors of the in government, that the new Ad¬
radical
change
in
our
present ministration would soon stop this
money setup which has proved so
spending spree and give us a sound
disastrous to our country's wel¬
gold backed dollar, as was prom¬
fare.
They are gone, but who ised in their platform. But they
are they who carry on where the
seem
to have become "printingothers left off?
True, they did
press" happy, and the promise to
not make the instrument, but are
the people has been forgotten or
they not equally as dangerous as else relegated to the background.
those who did when they continue
We have waited for a year and a
to use it in the same way and
half and still an unbalanced bud¬
Fourth:
to
Jose, Calif., lists and discusses five
trends which may wreck our economy if they are not recog¬
nized and proper action not taken to offset them.
Harold E. Barton, of San
the applause it received, as evidence of the truth of the last
ably written statement plus the determined efarticles, having to do with the fu- forts of certain Congressmen to
ture prospects of American econ- force a continued rigid price supomy.
Some were pro and some port at a high level, instead of the
were con.
I agreed with some and President's
more
flexible and
disagreed with others.
This is sane program,
Editor, Commercial and Financial
Chronicle:
I have read many
American
heritage.
wish to emphasize
matters
which point to
say how
of money
was
to be obtained for spending
in orcjer that we might have no
recession.
He surely must know
great
our
certain
if
disaster for our great economy,
recognized and proper action
not
taken.
It
"this
that
ago
is choked
production, clear to
the ceiling of the U. S. Treasury
Department, and the "Durn Critter" can't turn a wheel until Congress raises the roof. This, I hop,
they won't do. Certain segments
of our population like this "easy
money" spree and are putting
plenty of pressure on their Congressmen
to continue it, even
though they all know that disaster must lie ahead, because it is
contrary to sound economic principles and historic facts. I have
been wondering why the powerful
Banker's Association, who are the
protectors of the people's money,
has not sounded forth a load worning of the above danger, instead
of being as silent as a little mouse
stalking a piece of new cheese.
time
stated some
was
could
nation
by
not
continue half slave and half free."
The
reason
the inequity be-
was,
people who had no choice
they would come
into this world or not, nor where,
nor what
the color of their skin
tween
whether
to
as
arrived, had
the right to life, liberty and the
pursuit of happiness. It took a terwould be; but having
rible
in
a
to
war
those
secure
rights,
to all. We now have
measure,
principle, in our national subsidy setup.
This system is robbing the
situation,
comparable
a
farmer of his rugged
imposing
and
unequal nature
in
independence
tax burden of an
a
others,
upon many
Its
general effect is demoralizing
to a marked degree.
This system cannot
last and this
as we older
remain free
country
people have known it and desire
to pass on to our children; it has
built up a great surplus of goods
that are perishable and yet we
have people in dire need
right
here in our nation. A surplus of
goods ought to bring comparable
blessing
and
burden and
a
behold
brings
it
When
a curse.
we
a
had
rationed it out in a
or
less equitable manner,
with
a
surplus,
we
are
scarcity,
more
now
stymied.
we
its
own
taxpayers;
every
grant made to those in other lands,
and the vast
sum
paid out in
employment relief.
caused
in
large part by pressure
unwise
counselors
and
groups
forcing
fere
un-
This has been
government to interlaw of supply and
our
the
with
demand and traitors in high
debauching
our
places
currency.
Second: Another dangerous con-
dition is the very evident turning
from investments which have a
fixed
dollar
which
value,
more
are
securities
to
able
weather
to
ter before it is too late.
Roosevelt
standard in
off
went
that the way to balance a
the
gold
de¬
Why did, he do
Commies their opportunity to
bauch
it?
our money.
mentum, it will wipe out the value
of
because
of
they
them
have
except
nothing
a
back
My understanding is, because
countries were doing just
other
what
they
draining
are
doing
now,
i.e.
Treasury dry of its
our
gold reserves when Treasury gold
stock was reduced to about $7 bil¬
lion, Roosevelt had to do some¬
thing to stop the outflow. So he
raised the price of gold in terms
of dollars and later went off the
more from other nations. Please
don't tell me they cannot do this,
I have before me the annual re¬
ability to
the other hand.
tion
left
soon
consume, on
We must take
ac-
or
We
stated "Gold and dollar
mulating at
billion
this occurred
in
our
coun-
try once before and history has
steady
habit
There is
national
that
again
people
repeating
on
that
it
will
before long.
are
this
at
time,
roots"
"grass
a
itself,
not
ob-
happen
Many of
our
no
gold
resources
rate
a
accu-
exceeding
$2
equal the U. S.
year, now
gold stock of $22
billion."
This
report said nothing about the adverse
trade balance which, accord-
Reserve
banker, is
billion, and
may
pleasure
of
must
paid
be
now
Federal
about $12
be called at the
foreign
in
a
nations
gold.
and
We have
still suffering from the read that it takes at least $12 bil-
hallucination of "easy money" and
a
a
the horizon of ing to the statement of
economics,
assure
server,
of
nothing
a
"spending spree,"
as
Roosevelt did
a
of prosperity.
lion to provide the minimum legal
notes and deposits.
fice
will
be
into
enquired
votes are cast this Fall.
too
acute
longer.
"shadow
to
become
box"
any
This country
will either
and equity to
administer
justice
all
citizens,
of
ere
The situa¬
tion has gone too far and
her
their
vocations,
from
her
as
regardless
she
or
of
fall
will
estate of world
free country that
high
leadership
a
is the most desirable place to live
among all the nations of the earth.
I am not a pessimist. I still have
budget
hopes of
return to sanity in gov¬
I still believe that
a
ernment,
and
national Constitution and Bill
our
of Rights are a safe and sufficient
they
have
laws
necessary
are
those
If
documents.
trusted
gross
betrayal of the people who
the bill, and who by
their
votes
suffer the tragic
or
administer
and
that will be in harmony with those
pay
of a Treasury de¬
nuded of its gold and in a world
strings
entrusted
their
purse
to
dollar" with which to do business
with? First, because our
President
has not asked the Congress
for it.
presented a good economic
program, which reminds us of a
He has
modern automobile without a bat¬
now
en¬
so
unfaithful to their oath
market awaits
that
we
a
"sound dollar" that will
may
convertible inter¬
standard, in order
deliver our goods and
of
those
receive
nations.
other
sound me¬
dium
and
watch
humanity "go to town" in an
atomic energy age, and with a
minimum of government interfer¬
and them,
of
exchange
Give
ence
us,
a
in business.
.
• <, <
;■
?.
convinced
that a clever, strong, and persis¬
tent campaign has been carried on
for the past 20 years at least, to
To
wreck
and
it all up, I am
sum
our
Democratic institutions
of life.
way
The
sooner
we
recognize this and rise up and de¬
mand a return to the old and tried
and true
made
the
paths and principles that
country a great nation,
our
better
will be
it
for
every¬
except those who seek to
encompass our ruin. They should
be». rewarded according, to their
body,
deeds
without
a
national money
We might as well expect to
favor.
"go places" in such a car, asj to
expect to "go places" economically
tery.
which he set forth the aim of the
and
present Administration—"To stim¬
without
partiality,
fear or
HAROLD E. BARTON
'
663 S. 9th St.
ulate
production and
payrolls
and
more
create bigger
and keep
demand
the
econ¬
(Special to The Financial Chronicle)
high level of prosperity,
something that is
contrary to
CHICAGO, 111. — Chauncey G.
sound economics, human nature Parker 3rd is now with The First
and
historic facts.
The third
Boston
reason
is because no
had the in¬
people at heart suf¬
ficiently to stand up and demand
that
the
Congress
resume
its
Fifth: The first 19 years of my power, embodied in the Constitu¬
life was spent on a farm. We had tion, "to coin money and fix the
good years and bad years, periods value thereof." It is high time that
when we
made more than ex¬ those in power, who hold back our
elected representatives and exec¬
penses or did not make more than
from * performing
their
expenses. By paying off our debt utives
in the good years we managed to sworn duties, as defined in the
live in honor and respectability. I Constitution and Bill of Rights,
even? He does not
suggest
an an¬
one
in Congress bas
',
'
*
terests of the
•
-
Joins Leason Staff
\
to this very
refer to
this practice in
order to
point out, that our nation is not
practicing this sound and high
principle.
grave
fare.
Corp., 231 South La Salle
Street.
natural question.
Obviously there is no answer.
swer
bad
A simple cal-
First Boston Adds
omy on a
This constitutes a very
danger to our country's wel¬
Our nation went into debt
years.
war years
We
necessary
I refer to the recent culation reveals at least $2 billion through
our legal require¬ ditures.
speech of Mr. Harry Truman and in gold short of
believe
not
do
must
consequences
being all requirement for Federal Reserve during the
that is necessary for a high level
their
people and
representatives. The per¬
sonal views of candidates for of¬
moral or legal right to ap¬
of
office or are unable to rise
propriate billions of dollars to
above partisan politics, then they
give away to foreign nations when
should
be
removed from office
their highest per capita indebted¬
and
others
put in their place
ness is reported to be less than $100,
unnecessary
delay.' We
while ours is reported to be about without
have
great productive capacity,
$1,800. We are led to ask is this
proposal just "plain dumb" or is it ability and energy and a vast
An October, 1953, report of the
like kind and value.
when
will have
we
do anything with,
to
which is only a promise to pay in
I remember
a
merit the confidence of the people San Jose 12, California
quoting the market price of gold
ounce to equal that of other na¬
in the transaction of business. The June 29, 1954.
as of March 5, 1954, at approxitions.
second reason that we do not have
mately $52.25 per ounce. Unless
A parity price comparable to a "sound dollar" is because the
we
provide a convertible gold
With Braun, Bosworth
backed dollar of equal value and that of other commodities will Treasury
Department
and
the
(Special to The Financial Chronicle)
raise the price of gold, as stated open the mines, now closed, and Federal Reserve Board want to
CHICAGO,
111. — F.
Brittain
in dollars, to meet the market the increasing gold supply will retain the power of uncontrolled
price abroad, we shall find our- take care of our increasing popu¬ spending and credit expansion, Kennedy, Jr. is now associated
with Braun, Bosworth & Co. In¬
selves living in our own isolated lation's needs, in the doing of a and have pursuaded the President
little world, erecting trade bar- larger volume of business, both at this is a "must" in order to stop corporated, 135 South La Salle
Street.
He was previously with
riers to protect our own high cost home and abroad. In no other way a depression and control inflation, the Second National Bank of
can there
be a realization of the which they think would cost them
production on the one hand and
Boston.
curtailing the amount produced, ideal set forth by the Secretary of their jobs. They think that they
the Treasury in a recent speech, in can thus control the law of supply
to meet our
dollar 0f nations abroad, recently
paper
all
not
It is the
elected
any
and better
jobs." What is the good of greater
production unless we can dispose
"governments" by the billions, National City Bank of New York, of it at a
profit or at least break
gathers mo-
of
concern
it—period.
is to balance
1933-34 and gave the
the
field
is
This
Some of us get confronts us and no real pros¬ guide for the conduct of the na¬
opinion that an inves¬
pect of a balance one in the near tion's business, either at home or
tigating committee of the Con¬ future. Will our legislative and abroad.
I also believe we have
gress ought to look into this mat¬ executive
departments never learn men who can be trusted to make
economic storm.
investment
action
of the
an
If this turn in
such
partisan political issue.
along the same line?
are
that demands gold or no trade.
public debt increases toward a port of a large producer of gold
Just ordinary horse * sense cries
complete collapse. Simultaneously,1 in a foreign country and for the
aloud—stop this further robbery
the dollar depreciates more and past two
years they have sold
of our people's gold supply, while
more in purchasing power as the
their gold for from $51.51 to $54.47
we
have some bargaining power
cost of production rises with every on the market. Also I have before
left. This can be done by resum¬
new labor contract; every surplus
me a market report of a large
ing the gold standard and at the
crop that is grown and paid for brokerage firm, in the Philippines,
same
time raising the price per
the
foreign
by
back
those in high office?gold standard completely as far as Perhaps they do not know, or re¬
domestic business was concerned.
member what sound money really
Third: The increasing loss of As a
result, gold that went out at is. To refresh their memory, here
export trade is, or should be, a
$20.67 per ounce came flowing is John Lock's definition, "Some
matter of deep concern to all of back at $35
per ounce.
That is
us.
We are producing sufficient what we call "Yankee shrewd¬ lasting thing that men might keep
without spoiling and that by
for a large population that live ness" in reverse.
mutual consent men would take
beyond our borders, but they are
In respect to gold supply, un¬ in
exchange for the truly useful
not getting it, nor will they get
mortgaged, a careful analysis of but perishable supports of life."
it until we join them in solving
the money problem. Gold is the present day facts show that we Nothing except gold has ever met
are
almost back where we were the above stated requirements, in
basis of settlement for internain 1933-34, plus
a gigantic
na¬ all the history of man, although
tional trade balances and they will
tional debt. Soon our government many things have been tried.
not sell their gold for $35 per
will be forced to do just what
ounce when they can get much
Why do we not have this "sound
As a result our whole
is out of balance and the
economy
not
billions
the printing press
that
.
First:
increased
the
did
Truman
Mr.
I
However,
increasing number of people want
to know who or what, is holding
which were
did this through
expenditures - and
many unnecessary expen¬
I will not go into detail,
be
exposed
with.
and
properly
dealt
CHICAGO, 111.—Geary G. Leahas joined the staff of Leason
son
&
Co.,
Inc.,
39
economic
South
La
Salle
Street.
With The Marshall Co.
(Special to The Financial Chronicle)
CHICAGO, 111.—Mrs.
Margaret
de Leon Parr has joined the staff
of the Marshall
practice has
been presented again and again;
historic facts have been marshaled
Sound
(Special to The Financial Chronicle)
Company, 30 North
La Salle Street.
Merrill Lynch Adds
logi¬
(Special to The Financial Chronicle)
made;
CHICAGO, 111. — George F.
the injustice of the present sys¬
tem, which has robbed millions of Warga is now with Merrill Lynch,
their savings and investments has Pierce, Fenner & Beane, Board of
in unimpeachable testimony;
cal
deductions
have
been called to light;
been
appeals have
,
.
Trade Building.
-
Volume 180
Number 5342... The Commercial and Financial Chronicle
'
■
The
Businessmen Mast
From
Washington
Ahead of the News
Help
lations of this
By ROGER W. BABSON
Says though they are generous with
dollars, they are miserly with their recommendations and
time. Questions whether "business always really means
it says/' and urges businessmen to do something to
schools and colleges in their communities. /
moting education.
The Republicans of this country are confronted with rather an
ceded, that the only
,
way
they
bower.
they returned to
way
and the only
power
can stay in power, is to follow Eisendisagree with the theory that Bob
I
Taft would
not
have
won
the
as
Just
Republican
hefe
land would
convinced
Babson
that would not have been all
tute
right because I prefer political parties to
this country rather than personalities.
lesley* Mass.
them, how he laid
tion
this
facts
They have subscribed
down
Eisenhower is
•of their way
must
a
as a
i
The
hud
propaganda
fallen
down
Hill said we've got to
and good strong
many
men
teachers, and
Yet, with but a
few notable exceptions, businessmen
and
companies have not
given education the kind of support it wants and needs.; ;One
line, to show that
against their convictions by the strong
in the. White House,
man
"He is
,
;
a
terrific leader," they will say.
>
time he tries to approach a
of businessmen for some
help on a problem, almost auto- >
matically they query in chorus,
"All
right, how 1 much do you
*
~
showing
St. Lawrence Seaway but who voted for it with a view of
•
propaganda after this.event was to the effect that that "shows you;
things done." A
of accomplishment, and:
man
With
Insofar
told is what our country needs.
we are
as
+
the measurement of the country's editors, is con-)
by virtue of the items in Eisenhower's
have been
passed
not.
or
Charts
"dynamic"
been
or
There is little or no dis¬
passed, this one is hanging fire.
to the merits of these items.
as
fall
Apparently
to rise
"dynamic" program
the percentage of the Eisenhower
on
we are
a
crazy
It would be
sort of thinking that is prevalent.
different, perhaps, if Mr. Elsenhower had, in the first instance,
with
himself
surrounded
some
the
of
thinkers
greatest
the
in
world, and in the second instance, if he permitted the Congres*
miserly.
on
the formulation of
and Dewey crowd, on
anathema
have
'
to the Republican
out
turned
Congressional leadership.
be wonderful
to
The
have, for the most part, been
policies this group has contrived
soldiers.
But they
They rant and
the Luce-Dewey-social
rave
worker
t
against what issues
;
position in the White House but then, like the religious cult that
/
c
wraps
itself in snakes, they profess great joy in the "Republican"
been
a
a
strong leader he is, they chant.
time in
minded
men
fell
another
make
editors that
history before when
a
so
flat
their faces
on
"strong,"
man
full-page
Yet,
in
appear
all
to
"strong"
man was
by
been told
rity Traders Association and
a
Past
President
of
the
Traders Club of Chicago.
•
*
MIAMI
BEACH,
S.
i
ton
Mrs.
&
the
is
The
Frank
L.
Francis I.
Edenfield
du
Pont
M
}
')'[
/
' '
■
ii
I
&
-I
A
s
of
went
to make
a
the past
was
With
With Davis, Skaggs
(Special to The Financial Chronicle)
SAN FRANCISCO, Calif. William C. Callendar has been added
to the staff of Davis, Skaggs &
Co m gutter Street, members of
>
Stock
Francisco
San
:
change.
few cold calls.
in
J- Henry Helser & Co. and G.
Brashears & Co.
Ex-
v
A
^
'
■
r
This advertisement is neither
an
The
offer to sell nor a, solicitation of offers to buy any of these securities.
offering is made only by the-Prospectus. - e- • •
v
»
July 15, 1954
NEW ISSUE
V::
$39,950,000
/
,
The
Peoples Gas Light and Coke
Company
,'.V
•.
i
f%
First arid Refunding Mortgage
3/4% Bonds/Series I
Due
July 1, 1979
Price 100.855%
(plus accrued interest from July 1, 1954)
to
Copies of the Prospectus may be obtained from any of the several under¬
writers only in States in which such underwriters are qualified to act as
dealers in securities and in which the Prospectus may legally be distributed.
Are Businessmen Fair?
three
cussed
be
to
that need
shortages
remedied:
shortage
the short¬
age of financial reward to attract
capable individuals into teaching,
and 3) the shortage of top-caliber
of classroom
teachers.
want
space;
Bravo!
know
to
1)
run-around
what
Now
a
to
speak
on
grass-roots
that
these
kind
worthy
issues
edu¬
at
anything
within the company
designated
to
handle
can
educa¬
relations.
and
,
of
a
project
for
this
summer
the
opportunity to get work ex¬
perience in various businesses, at
various levels, during summer va-
1
•'
.[•:M
'•
j.
T
.
:
».(.•
Hemphill, Noyes & Co.
Hallgarten ft Co.
Central Rerublic f-mpany
(Incorporate *
Lee
F. S. Moseley ft Co.
Laurence M. Marks & Co.
Higginson Corporation
Dean Witter & Co.i
Tucker, Anthony & Co.
Shearson, Hammill ft Co.
Swiss American
h
Fulton, Reid & Co.
Baker, Watts & Co.
DeHaven & Townsend, Crouter & Bodine
First Securities Corporation
Winslow, Douglas ft McEvoy
^
Wurts, Dulles & Co.
Carolina Securities Corporation
Ferris & Company
Doolittle & Co.
A. E. Masten & Company
Mackall ft Coe
J. R. Williston & Co.
Goodbody & Co.
Singer, Deane & Scribner
Laird, Bissell & Meeds
E. F. Hutton & Company
Kean, Taylor ft Co.
Burns Bros. & Denton, Inq.
Blunt Ellis & Simmons
Folger, Nolan—W. B. Hibbs & Co., Inc.
Rodman & Renshaw
Ira Haupt & Co.
Baker, Weeks & Co.
Corporation
Newhard, Cook & Co.
tell you about the appar¬
failure
Kidder, Peabody & Co.
Equitable Securities Corporation
the
a gesture by such adver¬
then they will see to it
someone
Eastman, Dillon & Co.
Incorporated
Wood, Struthers & Co.
mean
Corporation
Drexel & Co.
Blair, Rollins ft Co.
I
of
level.
businessmen
The First Boston
2)
What
is:
will
•
the
involving educators and
businessmen.
Some one got the
idea that business might be better
understood if teachers wer^f given
,
3&
to £? ?
your
on
ent
Co.
Co.
&
r
future
copy
Mrs.
formerly with
was
rvff w
fnr
Street, members of the Los
Exchange.
Mr.
Cunningham
? should also be productive for
"is company. Hence, he decided the
why
businessmen
"are
so
blind, when it comes to the needs
of our educational system."
I
Seventy-first St.
Co., 631
Weber
*he
Spring
Angeles ' Stock
was
been
—
has
lot Tiim
^
'
,
ANGELES, Calif. —John
M.
Cunningham has joined the
staff of Morgan & Co., 634 Sduth
LOS
to partici-
to dis¬
Another Failure of Businessmen
added to the staff of J. R. Willis-
was
Bond
Fla.
Weber
i^rtce Tinrl
„
T
ask
tising,
(Special to The Financial Chronicle)
Rosemary
.v
xy.
recently
head¬
"The present of
way,
education
beyond
J. R. Williston Adds
Wolf, A. G. Becker
& Co., Inc., Chicago, passed away
suddenly, apparently of a heart
attack, at the age of 47. Mr. Wolf
was a member of the Nominating
Committee of the National* Secu¬
"
urging us
schools.
One
appearance
business."
is
J.
Joins Morgan Staff
(Special to The Financial Chronicle)
which
page
its
this
tional-business
Leonard
i,;i
^
newspapers
full
made
If
certain
the country's demand.
Leonard J. Wolf
Dempsey-
with
advertisements
support the
such
able-bodied and able-
utteriijig "Allah, Allah," to
they having
520
Mr. Walls
of
project get by this same
advertiser when he is approached
I doubt there has ever
so many
,
seem
cational
strong leader in the White House forcing it down their throats.
Oh, what
i
forth from
Co.,
&
This advertisement further dis¬
the Henry Luce
the domestic and international fronts.
verv
Sat
curriculum,
problems of delinquency, Or even
part-time employment for stu¬
dents.
But this seems not to be the case.
policy.
Influential with him it would seem, have been
They do not
problems
cuss
leaders—representatives of the people—to sit in with him
sional
away
50
understand the educator when
lined
that is passed or lost.
It is
miles
story,
wX
their dollars businessmen.
-he asks them to sit down
"dynamic" program has
to the score: this item of the Eisenhower
cussion
program that
being frequently printed as
are
Hammill
was
previously
Tegeler & Co.
really
about two
dozen
employees sent its sales
manager, a young chap, to a high
generous, but with their rec¬
ommendations and their time they
to
cerned, the country is apparently in a state of well being or not
Wilson
B.
are
are
that is what
company
want?"-
Eisenhower leadership had prevailed. .The party
how Eisenhower gets
you another
hannier endint?
A
-group
I know of "ten Senators who were opposed to the so-called
that the strong
.
~
our
graduates.
every
,
'
/■
3l
tell
well-known Eastern superintendent of schools recently stated that
in Congress indulging in breast-
beating and proudly avowing how they have been made to vote
1
schools,
our
the
The result is that you will
; he is the great leader that we elected.
see
on
n
school
Businessmen?
do something about that, we've got to let
him lead, we've got to let him browbeat us into
too
are
can
on
Since the war, businessmen have
made a number w. oiictijj attacks
""»W
«
of sharp ancuzKH
iiuiuuci
take the
failing to
was
I
■
.,
What Manner of Men Are
So the Republican leaders on Capitol
Republican party in hand.
.
that he
leader,
a
.
the ground that the issues
to a few months ago was that Eisenhower
up
as
.
controversial!
!
-
..
Robert
South Grand Avenue.
it
Roger W. Babson
ticinate in the
and
„
Calif.—Lester
become connected with
Shearson,
support this program.
Education Is Your Business
conference declined invitations
Republican strong man and they go out
how
about
ANGELES,
Walls
R.
have
what it says?
mean
.
Meet-
Does business always
land.
in¬
,
(special to the financial chronicle)
that business offered in New Eng¬
par-
to tell how he has personally beaten them over the
heads.
>'•''
to
LOS
the number of such summer
ex¬
ecutives
na-
could count on your fingers
jobs
you
ten
every
business
a
by
But, when the chips were down,
"
of
out
to
.
ohearson, Hammill Adds
association.
trade
'
the
were
wanted
i
V.
educational
Nine
started
was
optimistically
>*?
'
vx
*
standards.
the propaganda that
to
:;**
j
business
on
the Republican leaders don the ashes and sack cloth
see
manner.
was
conference
a
It is inter¬
that nothing like this happens.
are
It
an" colleges in your community,
held with representstives of the schools, colleges, and
businesses.
Business again talked
ings
Sur¬
for
vited
esting to
in
"Educa¬
vival."
idea
tional
theme
re^lly doing to help the schools
of
supplement the earnings
underpaid teacher.
The
man¬
his educa¬
of the larg¬
est orders his company had ever
received for one of its products.
What's happening in the schools
today surely will affect the future
of your business. What are you.
ager
returned from
tional jaunt with one
but it would also help
company;
Wel-
The
the law.
The plain
the
on
Insti¬
in
was
The propaganda is still to the effect that the
Republican party is not in such good standing
but Eisenhower is. That is, to say the least, a
commentary on the American people.
It so happens that the Republican leader¬
ship in Congress has been bending over back¬
wards to make Eisenhower a "strong man," a
Carlisle' Bargeron
"leader."
With this in view, some very able
men in Congress have gotten into the habit of
saying how Eisenhower whiplashed them at a White House con¬
to
held
was
indeed
as
led to another and the sales
their
their
what
help
Such a program would
benefit
a
co-operating
cations.
run
V'
ference, how he applied the heat
Businessmen
of
of
campus
today be President and I can't be
that
Educators
and
In that event Senator Know-
there.
nor
recently the Seventh An-
Conference
nual
^Presidential candidate in '52 but that is neither
in busi¬
mere infant
opposed to his own cor¬
poration's wretched record, that
he gave the young sales manager
a good deal of his time. One thing
ness,
Mr. Babson chides businessmen for their inactivity in pro¬
amazing situation. It is being hammered into them on every hand,
that is, so far as the eastern press and commentators are con¬
'If
purchasing
agent of one
large company he called, on was so
impressed by the community ref¬
School Teachers
By CARLISLE BARGERON
^
13
(217)
E. W. Clark ft Co.
Hallowell, Sulzberger & Co.
;
Irving Lundborg & Co.
Chas. W. Scranton & Co.
Yamall, Biddle & Co.
*
i
The Commercial and Financial Chronicle
14
tors, in fact, is only
below its all-time
For
.,
,
t
„
,
bracket
STREETE
By WALLACE
.A1
.
,
third
a
Leconte Plastics
year's best. The independents
have been having a hard time
..
trying to show that the bull had its moments of trouble inis
still
very
much eluding losses of a couple of
market
all
but
alive
far
had
division
either
able to prove
packard-Studebaker'
points per session, while
conclusive- Du Pont turned to the heavier
more
merelv
^
sjnce
^ad
when
force
it
that
highs
new
margins
row
nar-
diversification program,
approaehed
all but in-
was
cidental.
*
*
*
Sturdy
of
which
have
fields
such
ment,
with
the
able
were
in
contracts
govern-
show
to
continues
be
to
since
the
cement
tion of
tion,
stocks, bolstered by the con- hit,
once
was
Pacific Mills ended
erratic
a
some-
with
course
a
pany
being
Burlington
Mills'
an-
*
,
*
,
issue of
an
erating
until
plant
tion that the offer
avail-
was
only to stockholders be-
fore
the
*
announcement
Some
.fl d
*
its
f ^
anal
movements de.
i
Qr
J
was
li
c
m
b
but
again
bumped into the end of the
offer almost
net result
immediately The
that it reached
is
a
high of $46 in the open market
but
only momentarily
and was well depressed after
logic
even
'
paper)Kimberly Clark, Bene-
ficfal
Power
main
new
a
Company
*
plans
office
About
Company
ance
Life
General
to
Insur¬
land
the
own
the
and
building v/hich will be
occupied by Connecticut Fower
under a long-term lease.
negotiated
from mid-March to now
a
rather brief period. That tne
doldrums are setting
against thosle
any suaden
achievement of this historic
—
one_d
half
i„gs dry up after sudden selling spells seems to preclude
ch
/dozenSpoints
abandon
£
t
^
;
h
in
u
an
the pressure enough to drive the
list down to the 300 level,
r
which would be the
*
*
seemed
of
tent
Steels Forge Ahead
*
that
with
j
f
*
*
all
P^h m a Jew weeks. But on
the o(her hand the way offer-
an
full
intermediate
cor¬
*
*
Steels continued to forge to
to
new
highs despite the rather
despite
Rails,
lofty
the
sharp trim in production early standing of their index, have
in the month, this being large- a much longer way to go to
rails
ly - due to the Independence set
were
able to muster
a
bit
of steam when the industrial
pay holiday. Armco forged
issues needed time for
its highest level
rest,
a
since
any
to task to
even
prevailed
since early in June when the
list had its first correction of
*s
were
able to put a
couple of minor
losing sessions back to back
for the second week, a situathat
hasn't
ironic
that
Y/hich
made
it
the
highest
*
*
*
.
since ±you.
*
Th
lne
lis
*
nu0mi«
Motors turned in
*
1
chemicals
'
Vm+
•
A
joined
1
_
jon-
•
rn
_
.
.
.h.
tThe views expressed m this
anything article do not necessarily at any
ranrHntf cinpo Km
°
time
j;
coincide with tiose
of the
decisive
performance, Chronicle. They are presented as
the moments of strength quickly those of the author only.]
in
featuring the heavy evaporating and the overall
; ide
with some persistence, effect being one of indecision
1' Tgely because of indications
except for General Motors
% a a t institutional investors which continues in enough
yere switching their attention favor
Irom these
issues
which have
normal
to
stock
CHICAGO,
Kneeiand
who
has
show
action.
better-thanGeneral
Holliway Opens
jefferson
citd
111.
in
has
the
in
recently
ated with
e
securities business from offices at
Mo- 308 Jackson Street.
many
associ¬
Doyle, O'Connor & Co.
,
■»
--
«**■■■
L^NgS P. TfUS cliSH
Barclay Inv. in Chicago
to The
Under
revolving credit agree¬
a
nine
with
ment
Corjioration
Dynamics
rowed
General
banks
has
bor¬
short-term
notes carrying interest at a rate
of 344%.
The agreement, which
was
negotiated after the merger
of General Dynamics with Con¬
solidated Vultee
Aircraft Corp.,
$39,000,000
on
that the company can
to a maximum of $65,,for periods of up to 180
has
Financial Chronicle)
associated
become
with
Bar¬
clay Investment Co., 39 South La
Salle
Street.
Mr.
has
True
re¬
cently been with the Trading De¬
partment of John C. Legg & Com¬
pany
in New York City and prior
thereto
was
Pierce,
York
with
Fenner
&
Merrill
Lynph,
Beane
in
New
City and Chicago.
provides
borrow up
000,000
days
June
between April 30,
30, 1956.
with
.0.
Company
Securities and
the
Exchange Commission a registra¬
tion statement coverin g 58,119
shares of its $5 par common stock.
The company proposes to offer
rights
to
holders
common
on
a
one-for-four-basis without under¬
writing. Proceeds will be for gen¬
eral
corporate purposes.
Stockholders
Connecticut
of
of
The
Trust
Phoenix
State
Company voted
Hartford-
Company
Bank
&
June 15 to
on
and
Trust
name
of
Connecticut
Bank & Trust Company, will have
a
capital
Co.
fices
ANGELES, Calif.—McKee
has
at
Officers
formed
Wilshire
Donald
are
of¬
H.
McKee,
Ludlam, Vice-President, Assistant
Secretary and Assistant Treasurer,
and
Shirley
McKee,
Secretary.
Mr. McKee was formerly an of¬
Co.
Shearson, Hammill Add
(Special to The Financial Chronicle)
LA
Bell,
JOLLA,
Calif.—Arthur
L.
Robert
$25
par
stock.
there will be
a
meet-
Boone,
Jr.,
R.
and
Harper C. Olmstead have become
with
associated
mill & Co. All
Shearson,
were
Dempsey-Tegeler
Olmstead
On Aug. 2
with
Boulevard.
President and Treasurer; James E.
of $9,510,000 consisting
of 380,400 shares of
I
been
900
ap¬
of the two banks,
effective July 1.
The new bank,
the
LOS
&
ficer of Mitchum, Tully &
prove a merger
under
#
Hf
4:
*
Own Firm in L A.
(Special to The Financial Chronicle)
Manufacturing
has filed
1954 and
*
*
*
Donald McKee Forms
being
Ham-
formerly with
&
Co.,
Manager
of
Mr.
the
La Jolla office.
~\J~
Primary Markets in
CHAS. W. SCRANTON
Members New York Stock
&
New Haven
New York
—
—
CO.
Exchange
CONNECTiCUT
Hartford
a
for
been
REctor 2-9377
JAckson 7-2669
Mo -Rob-
HoUiway is engaging in
investment
Chicago
Teletype NH 194
ert
T.
Henry
—
Co., Board of Trade
been
business
fSpecial
SECURSTSES
Robert
&
Building, members of the Midwest
Stock
Exchange.
Mr.
Mathews,
day.
recurrent
the.lOO-plus mark of a quar)iote in about nine months, rumors of this financing in ter
century ago, while New
The rail index forged a hand- the last few years hit the York Central's 20-odd value
i ul of points above the best stock far harder than the accurrently is only a tenth of
leadings of 1953 and 1952, tual announcement.
its record hjgh.
Mathews
CHICAGO, 111.—Charles P. True
equal the 1930
while Bethlehem Steel posted that of the industrials. Not
a new all time top. The huge even the most rabid bulls hold
$300,000,000 U. S. Steel fi~ out any hope of enough gennancing project failed to de- eral enthusiasm to lift Pennpress the stock," and it posted sylvania Railroad from its
the best price since 1929. It current level of around 16 to
fact, the industrials
same
historic figures. Their
1951, levels is roughly three times
5%
a
Aug. 10 to holders of
on
record the
Gray
ex¬
rection.
*
dividend
T.
to The Financial Chronicle)
Mathews has rejoined the staff of
years,.
sustain the market's
progress
was that the
long-1 a g g a r d
c
(Special
build¬
call for
announced
as
Connecticut
f seyeral tQ
and Gi0ett
Laggard Rails Steam Up
tion
Henry
bids for construc¬
requested
The
Sc/
American
featl/red in wild
L
all the furore.
In
Kneeiand Co. Staff
ing to be located in Wethersfield.
*
list
the
as
Rejoins
.?•
*
Connecticut
tion of
XKJl\ llm, ,aA1Aiv^
gome 0f the preferred issues, summer
made. This proviso was .later
n<AaW
of Sutherland m weighs
denied and the issue took off
on
H. T. Mathews
Island
Manresa
For the industrials, at least,
such
*
quarter after the
1960.
about
*
has
was
early misconcep-
an
hope
contin¬
steam gen¬
new
a
on
pay
been for
be
through the
Recently the com¬
announced
that the new
construction of
what subdued which is mere- considered a fabulous read$36, might have been a more ly another illustration of the ing The remaining distance,
powerful influence had it not market's extreme selectivity.
for example, is merely a span
price of the issue
would
a
dividend.
the
market
their
announced
dividends
ued at 75 cents
15
The
program
that it had ac- the same favor and while they ]ess than 40
In addition to its regular quar¬
points remain to
desired 235,000 hav$ been doing better than see the 192g figure eclipsed, terly cash dividend of 10 cents,
payable Aug. 2 to holders of recshares. The $50 offer for this most secondary issues, their
although this level for a ord
July 15, Eastern Industries,
bundle, at a time when the performance has been some- qUarter of a century has been Inc. will also
able
that
Oct.
on
Sept. 10.
1954.
nouncement
quired
paid
generating capacity presently be¬
ing installed at the Devon Station
will make it possible to postpone
only partially satis-
highs lists. For most, it meant 300 level or continue to adhistorically high levels. But vance to the 400 region,
prime building supplies
firms have yet to come into
of
end
highways through- ket analysts who, one by one,
of the country. Al- have seen all the traditional
downbeat, the specific cause the
directors
The proceeds together
those from the offering of
expansion
above-average performance pha Portland, General Port- signposts disappear, have
although it was somewhat landj Lehigh Portland, Lone fallen back on the largely
spotty.
■
Star, and Penn Dixie Cement meaningless prediction that
were all repeaters on the new the market could react to the
what
The Connecticut
Company sold
17,
be
would
to record holders of
stock
Power
and
through an increase in the
outstanding capital stock from
750,000 shares to 1,000,000 shares
of $10 par. If approved the divi¬
expected to provide sufficient
to care for the company's
with super
most
vote
funds
expecta-
tinuing high activity in the fied early in June, and the rebuilding industry and the bound since then has bred
widespread preoccupation confusion. Many of the marold
to
stock divi¬
590,290 shares of common stock at
$14 a share to stockholders are
intermediate reacthe 325 level was
an
Company
proposed 331/3%
a
share.
per
The
1929.
widespread
Insurance
on
200,000 shares of $2.06 preferred
stock, series E, at a price of $50
with
rather
One of the sturdiest groups
pursuits are
still a potent force and Duquesne
Light and North
American Aviation, both of
June
through underwriters
.
traversed
Remain
Cements
Atomic energy
On
Light
both lndustrldlsin an rdUS not
ancl area are
out in the clear
generally.
The acqi-
cial products division.
yield of equities
reg- the average
were
by the indices by
nix
dend
sition is a part of the company's
that pinpoint attention side after its recent inexplica- readty
seems to be the order of the
ble run-up. Both recently
'
*
*
*
day. Wide moves in a handful have sold high enough so that
Technical Significance
of issues continued to charac- present yields are below the
.
terize the market and the fact 3 % line which is about half of
Technically, little of signifiistered
ing of the stockholders of Phoe¬
dend
was
,
Company, Farm-
plant in Amsterdam, N. Y., where
it will become a part of the spe-
merger
hone than it has
a
Com¬
ingdale, N. Y. Production, con¬
sisting mainly of luggage racks,
cable clamps, housings and an¬
tennas, will be moved to Bigelow
change the rails took been popular with them so of ^ marketwise as well as in
the industrials in long. Monsanto, particularly,
business field
and the
a
Carpet
has purchased the assets of
pany
last
below
Thursday, July 15, 1954
Connecticut Brevities
Bigelow-Sanford
with
turns
was
slightly
high, while
Chrysler, by way of compari¬
son,
continues to loll in a
THE MARKET... AND YOU
ly
...
(218)
[Volume 180
Number 5342
*
The Commercial and Financial Chronicle
.
(219)
Coal Industry Must Not Rely on
Government to Solve Its Problems
subsidies
using
as
when
t
to
citizens
to
mar¬
the
produce
on
into
glad to have this
am
to
of
broad
the
discuss
with
aspects
you
of
producing industry.
oppor¬
I
the
and
coal
not
am
expert
b
some
it
an
coal
on
would
e
readily be converted into
many useful forms. Coal may ul¬
timately become the principal raw
can
material for
from
coal
to
of
its
you
coal
on
technology
coal
to
or
econom¬
ics. I
certainly
shan't attempt
to provide
with
you
swers
to
an¬
how
on
run
your
business,
but
entire
my
natural
Americans believe
petition
record.
state
matter
a
Improvements
in
of course, that
long-range stargazing won't help
to solve the very real problems
say,
with which your industry is faced
today.
This is true,
but it must
of satisfac¬
tion to realize that in the coal in¬
mining, so
that I am familiar with, and cer¬
tainly sympathetic, to the indus¬
try's present problems, most of
dustry, production costs have not
which
the
field
result
of
from
the
interplay
of economic forces.
Today's
situation
with
respect
of
source
in this
energy
country
and yet it has been steadily los¬
ing its markets to other sources
of
Even without
energy.
a
com¬
plete
inventory of coal reserves,
know the Nation possesses al¬
we
inexhaustible
most
this
quantities of
magic substance. It is
black
reassuring to know that vast
amounts
of
country's
coal.
of
underground
On
disturbing
the
for
fuel
the
and
conditions
reservoirs
other
witness
to
demands
this
in this
reside
energy
hand, it is
declining
plentiful
very
resulting
within
depressed
of
segments
industry.
your
Bituminous coal production has
around
annually
since
fore the
turn
200 million
1947.
now
employment!
the
to
costs
of
fuels.
I
tons
Anthracite
is lower than be¬
of the century,
in
these
and
might
50,000
anthracite.
in
unpleasant
are
all
facts
have
as
competitive
that much of
say
of the
of
Bureau
coal
is
Mines
aimed
research
of
are
tarian
of
im¬
see
built
state
government
still
are
the
on
and
with
course, go
oped by the coal industry. It has
been gratifying to find
a
close
spirit of cooperation between the
Bureau and the
endeavors.
When
great
.
•
•
.
industry
an
industry
coal
which
trouble
industry in these
•
like
-i your
into
runs
cannot
It
is
to tnis
than
Nationalization
to
see
be
can
ob¬
tained from that source. Can taxes
be cut, or tariffs
raised, or inter¬
rates lowered, or a loan ob¬
est
perhaps, the edge
competition dulled a bit?
tained,
of
or,
Once
in
while
a
Also, shipping, railroads,
In
the
wants
industry
Govern¬
do more—"take us
they
which
"subsidize
say,
"regulate
or
us."
over"
us,"
It is the principle with
are
all the
us
hopeful and anxious for
an
more
early
realization of the return to better
coal
that
have
been
so
confidently predicted to meet the
tremendous growth that is taking
place in our Nation's energy de¬
mand, which has increased ap¬
proximately 106% in the last 20
and
years,
to
the
meet
demands
for new goods and services by our
heavily increasing national popu¬
to
created
within
what is to
increased
us
a
The results
are none
complex nature of the
when the going gets tough.
predict what may happen
long run. The energy
has always been ex¬
example, makes the business
predicting future trends very
Despite
these
facts,
uncertain.
Help
Specifically, what
authorities
address
1954
Coal
Mining
com
can't
country
is
tree
matter
at
first
of
was
industry
bound to profit from Govern-
are
ment energies thus spent,
The work which the
ment
of
the
fieid
of
minerals
Interior
is
known
have
the
without
"
.
"We
draw
freedom.
as
one
must,
possible
use
fiscal
by
and
of
programs
public
other
measures
which
business
pansion
huilt
on
of
will
lead
to
ex-
enterprise,
private
the competitive principle,
and the kinds of assistance
exercised
if
in
coal
by
which,
Government, reand
controls that throttle
Thege
of
reserves
mote
general
or
the
der
use
estimates
include
economic
or
fuels
xiqUid
merd
from
coal,
rati0n
of
coal.
have
those
To
credit
by
Mr.
Wormser
Convention
Congress,
of
the
Cincinnati,
l
before
Amer¬
Ohio.
or
subsidies
direct payments
or
in the form of
other benefits
to producers. Government author¬
of
you
us in
setting up these programs and in
advisir»g us go the Department's
deep thanks,
' "
Restricting Coal Imports
I
should
like to
return
now
ta
point I mentioned earlier
namely the Government's function
a
jn
restricting
or
controlling
im-
ports to assist an industry experiencing hardship. I know that one
0f the great
of the coal
concerns
industry is the inroads which im-
ported residual fuel oil has made
Government
see.
.
I
the
result
there
is
a
legitimate—a proper
operation
print
paper
has
believe
the Interior
in an exceedingly difficup position in reporting on this
ipgjs]ation. The encouragement of
The Department of
Assistance
currencies to
at least—any
deficits.
Of course,
is inflation, and the
to
off—on
Government
pay
coal markets.
into the
The Area of
great
and
area of gov-
which does
encourage
an
increased investment of private capital.
For exernmental
is placed
of
forms
a i
energy
^
has
;
This announcement is
neither
an
The
offer to sell, nor a solicitation of offers to buy, any
offering is made only by the Prospectus.
of these securities.
NEW ISSUE
100,000 Shares
SANGAMO ELECTRIC COMPANY
($10 Par Value)
Price $25 per
Copies of the Prospectus may be
is circulatedfrom
obtained in
any
Share
State in which this announcement
the undersigned, as may
only such of the underwriters, including
legally offer these securities in compliance
with the securities laws of such State.
Hornblower & Weeks
July 13, 1954-
been
a
0~
Continued on pcige 3J
progress,
un¬
coal
cooperated with
and
certain
the
pjaner and other modifications in
coai mining, and studies on prepa-
do?
the
on
develop-
of
adaptation
and
policies,
quotas
of
jpg anaiySes 0f coals, studies of
carbonization, extensive research
jn|.0 ^e production of synthetic
to foster and pro¬
of tariffs
can
coking coal, continu-
the Gov¬
works,
the
ex-
economy
in
methods
oJE
raining and preparation, and m
^be development of new uses for
line between the kinds of
a
assistance Government can give to
Government-operated in¬
dustries often—indeed generally—
incur losses and the Government
to
Government
the
monetary
in
another
and
carefully
therefore,
stifle initiative.
Leaving aside for the moment tne
of
Depart-
does
ampie of the role Government
the
cannot
now
enormously significant
developments from a commercial
standpoint.
Future
generations
industry that
an
itself
purely
interest, but it
promises
who
.,
other.
I
can
Here
security considerations, as
costs prohibitive to pri-
1
specified conditions,
subject what specifically can Government
pretty well agree that coal even¬ do to aid a depressed industry?
tually is bound to attain a posi¬ Principally, there are two avenues
tion of greater prominence within
open: (1) to use Government ac¬
our
steadily expanding economy. tion to support prices or produc¬
Coal is a flexible material and
tion, or (2) to supply Government
*An
as
Common Shares
Government
Can
en¬
pattern
tremely dynamic, and rapid de¬
velopments in the production of
energy from fissionable materials,
ican
the
too pleasant
much
me a danger signal, an
tendency of business to
the
the
well
good
a
mean
relation
Situation?
the
(most
to
look to Government for assistance
ernment do to aid
of
due
or
func¬
be
"
greater tolerance of governmental
intervention
in
business,
and,
cult ,to
for
illustration of what I
These developments
industry.
have
the
in
Government
of
tions
tire energy picture makes it ciffiover
in the realm of the atom is
i
increase in
tremendous
lation.
The
readily
familiar.
facts make
for
only it
weapon
any
Competition is just another side
.
days
as
...
.
suit
concerned.
other. Someone has
competition as
make.
You
we
The wondercountry has shown
it, and those that do are
surprised to find the progress they
of
manufacture, and even
production and other
important means of livelihood are
run or inordinately influenced by
included.
pos-
use
automobile
which
we
better standard of
a
secret
s
t secret
cigarette
then
of
segment
a
any
to
;
be
Government
assistance
cannot
our
competitive principle more
to
isn
readily some countries, government en¬
by standard practices of in¬
courages the use of cartels to tell
dustry — more aggressive sales its
producer how much he shall
promotion, increased efficiency toproduce, where he shall sell it,
reduce costs, better management,
and what he may get for it.
It
and the like—the industry often
matters little what industries are
toward
love
ricd of its existence has been due
met
looks
We
resourcefulness
characterized
bureaucracies.
our
im-
Government
or
the comparatively short pe-
oyer
quite common to find na¬
coal-mining industries
Government
the United
as
America.
ful progress our
merger
tionalized
abroad.
our
living for ourselves.
signals in
Coal Mining
of
'
i
this
spirit
childhood
to
much
to create
sess
parts of the world.
The Question of
com-
competitive
from
amateur
and
ness
business.
danger
the
so
of
America
hand in hand
ideas generated and devel¬
grams,
They are're¬
Three wars and a great depres¬
minders of the prewar years of
sions. all within a generation, have
adversity in the coal industry.
been
responsible in paift- for a
These
we
ever
complete domination of industry
by the government. Then we saw
a
few years ago in Italy and in
Germany, another type of totali¬
many
of
The Bureau's
and. development
pro¬
These
with
than
this
for
pjay jn expanding opportunities,
professional, for private enterprise
and we carry on our competitive
The Department, through the
spirit throughout life. There are
Geological Survey and the Butimes when all of us are distressed
reau
of Mines, has done a great
by the results of a competitive deal of work in
coal, known to
system—the fact that it forces us most of
you, which will be of in¬
to struggle when we would much
estimable value to the coal indus¬
prefer to take it easy, but the re¬ try in the future. It can and will
sults speak for themselves
do lots more in the fields of techWe emphasize security nowanicai research and informational
days in our thinking, believing, services.
I need not take time
perhaps, this will give us some es- today to go into the technical ascape from the rigors of competipects of the Department of the In
tion. I have always felt.that seterior's responsibilities, but I
curity is best sought through our should like just to mention a few
own personal efforts
by working of the studies which have,
helped
hard and using all the inventivebring about increased efficiency
at lower costs.
ery
an
than
States
the results of such
domination in recent years in Eu¬
ropean countries. The Soviet rev¬
olution is, of course, the outstand¬
ing example of the development
of a totalitarian state,' with the
the direction of increasing recov¬
ment to
less
more
am
tunity to
There
300,000
and
1
has
sports,
pressed by the necessity of main¬
in
industries
bituminous
degree
same
field
the
sense
producing
the work
has dropped to probably less than
in
some
whether
dropped
production
you
risen
in
to coal is truly a paradox. Coal is
the greatest known potential
only
oppor¬
will
You
give
in
time,
in
made
I don't know of any country
maturity
taining a sharp and inviolate line
technology are proceeding at a between the two. Too great de¬
that promises to bring the pendency of industry upon Gov¬
economics of obtaining synthetic
ernment is likely to lead to the
liquid fuels from coal to a point domination of industry by Gov¬
reasonably competitive with na¬ ernment.
tural liquid fuel products.
We have had abundant
been
spent
en¬
pace
has
Wormser
l..
service
Government
have
we
exemplified
this
working life
Eeiix
which
businessman who has
and
philosophy part of the laws of
portion
solid
liquid form is
"dollar
competition
difficulties, inshortages," and
of
scientific
We
am
recently, I am increasingly aware
industry. Further¬ .of the interdependence of Govern¬
more, the technology of changing ment and business—at the same
to fuel in
business
serious
Much
on
an
knowledge is
role
undertaken by private enterprise
All the recent Government work
0f
ernment control.
tered
de-
greatest progress for their citizens,
of the chemical
presump¬
tuous for me
speak
substantial
a
find
which
operate unhampered by
Government
controls, show the
results
because
a
will
you
of
portant
are—with freedom for busi-
ness
land.
As
the
to
some
ciency, and lead to complete Gov¬
I
tunity
think
belabor
deteriorating currencies. On the Vate industry, was a
job peculiother hand, the countries that are
arly well suited for Government,
turning towards competition—and Research on the
physical structure
opposed to sub¬
they are a drain
the public purse, invite ineffi¬
Basically, I
to
countries
without
eluding
they would like.
sidies
but I
those
run
time
controls
Government
do
have
tary system of cooperation among
of coal.
uses
induces
production. Americans, are
inclined to use the volun¬
or
govern¬
to
Reveals studies of Bureau of Mines for expanding
that
want
pend upon government operation
of essential industries, and try to
supply and demand.
we
frontiers
dont
point,
more
producers, aa:l, lastly, the nationalization of the coal mining industry. Opposes d>ect government
action wki:Ii v/ili destroy or interfere with
private competiiive
coal operatises, and decries
levying a tariff on imported coal.
or
I
kets, and attempts to dictate prices
govern¬
produccion, supplying
or
of
generates
govern¬
evasion, as
from time
kinds
misery which inflation, inevitably^ ample, technical research
not immune
intervention
experienced
try, and discusses proposed remedies, sath
credit
even
are
all
Department of the Interior
ment
ments themselves
Government
of Mineral Resources,
Mr. Wormser reviews the depressed situation in the coal indus¬
support prices
must remember that
to the law of
By FELIX EDGAR WORMSER*
Assistant Secretary
ment ac'.icn to
ity to condition the economic en¬
vironment is something to be used
with great restraint, especially for
freedom-loving
Americahs.
We
15
3$
(220)
The Commercial and Financial Chronicle.
suggest that the proposed increase
in the wage base was necessary
Sound and Unsound
to
maintain
tection.
Social
Security Amendments
ASA
By
Speaking
on
more
ceive
system of national pensions/ Favors the
proposal, but
My name is Asa V. Call; I am
Chairman of 'the Joint Committee
Social
on
...
Security of the Ameri¬
Life Convention and the Life
can
sociation
thus
of
reduce
Moreover,
unnecessarily
their
abilty to
high a base
too
workers
cases
that do
death."
as
it, is that OASI
should
be
protection
and
specifically, it
tive to provide his own protection.
fits most workers
mitted
|) h
sub-
-
,
be-
on
I f ;d f t h
a
>
:
e >
that
write
the
in
the life
have
ness
sistently
the :
U.
insurance
S.
been
system.
9366
We
believe
contains
the
adopted:,,
(2)
The
"drop-out"
earnings
or
•
"
they
guarantee
the
:
on
a
provisions
test
more
of
to
During the last
conducted
busi-
our
careful study
and reappraisal of the social secu¬
a
deal
principally
with
provisions of the bill which
in conflict with conclusions
veloped in our studies.
higher-than-average
are
own
best able to look out
would
Base
a
(1)
It
floor
'
departs from
Discriminates
which
; of
.
the increase in
the
wage
base,
the worker with earnings of more
than $3,600 could receive an addi¬
tional retirement benefit increase
of
much
as
hearings in
(2)
It
1952.
"basic
accepted
discrimnates against the
entirely
the
on
adopted could lead to
national
(4)
basis of
theory which
new
a
if
system of
pensions.
It
is
not
crease
to
the
sound
Present
time.
should
Principle Should Be Maintained
Our social
security system
designed to provide a floor of
tective
"
benefits.
While
was
this floor
'Statement of Mr. Call before the Sen¬
Finance Committee
concerning H. R.
f
that the benefit
living
another
If,
be
however,
increased
basis
costs
for
do
increase
at
benefits
through
we
a
see
granting still
no
an¬
—
'r
the
Proposed
A.
*
•
f
Social
'In*
Security
-
right-
Percentage
of
With
Earnings
—Above Base—
Wage
Year
Base
1950
All
$3,000
3,600
3,600
1951
_
1953
Proposed-
Male
Workers*
>J
r*
*Approximated
We
from
in
38
page
a
In short, we believe the medicaladjudication approach of the bill
.
it, the wage base would
moved from constant
be
is
unnecessary
The
automatic
re¬
Chart
that
the
statistics
based
solely on male workers do
provide suitable data for fix¬
not
ing the
lieve
that such
onstration
workers,
As
base.
wage
the
a
We firmly be¬
statistical dem¬
should be based
not
last
just
male
column
in
on
all
at
a
that is
to
the
a
figure
approximately
equal
earnings of regu¬
larly employed people. On this
principle, increases in the $3,600
figure may be needed in the fu¬
to
average
table
ers
earning
has
not
the
period covered by
All
workers
the
over
above
gone
during
the table.
average
earning less than the present
base and
we
increasing
are
wage
justifcation in
base
simply be¬
percentage is higher
the
cause
see no
the
base
wage
45%
the
on
when limited to male workers.
It
is
crease
also
that
argued
in the base is
benefits
ferences
in
the
should
designed to
reflect
dif¬
earnings.
monthly old-age benefits without
If
the
basic
is
to
floor-of-protection
be
based
on
sound
principle, Congress should not fix
the level of the floor in relation¬
ship
to
would
basic
and
higher-than-average
This
is what the pending
do.
that
Consequently,
it
strays
from
we
the
floor-of-protection principle
discriminates against lower
income
a
Security System
the
is
maximum
the
in
figure.
than
ever
is
near
a
The fact that
concentration
some
beneficiaries
of
$98.50
$3,600
greater
toward flat benefits.
there
to
The system is not moving
the
proper
of
present
reflection
principle that benefits for
with
earnings
testimony at the
.beginpjng o£ the .hearipgs,
/
before.
in
is
range
higher-than-average
should
will
of
earnings
average
not
principles
ment I
of
that
We believe the wage base issue
a crucial one.
Past lib¬
eralizations in OASI have roughly
served to offset the effects of in¬
flation. But whether or not the
go
above
certain
re¬
these
unsound
the
of
bill
are
likely to
increasing dif¬
and
am
The state¬
filing makes
additional
number
a
suggestions which
Committee will also
we
.
base
is
retained
at
Joins Samuel Franklin
(Special, to. The Financial Chronicle)
■
with
215
national
a
Samuel
West
B.
Franklin
Seventh Street.
&
t
Co.,
;
,
$3,600
Harris, Upham Adds
(Special to The Financial Chronicle)
social program, furnishing a basic
floor of protection, or whether it
becomes
,
LOS ANGELES, Calif. —Burnham Asch has become affiliated
■
this year may determine whether
the system
is maintained as
a
pension plan.
LOS
ard G.
>
ANGELES, Calif.—BrainMerdinger has been added
to the staff of Harris, Upham &
Disability "Freeze" Proposal Co., 523 West Sixth Street.
The
The
intent
the
of
disability
"freeze" provisions in H. R. 9366
is to maintain the benefit expect¬
ancies of
persons
regularly at¬
tached to the OASI system during
periods of total disability lasting
more
than six months. We believe
that this is
but
a
do
we
We
desirable
not
favor
objective,
the
Two With King Merritt
(Special to The Financial Chronicle)
LOS
ANG.E'LES, Calif.—Charles
Cherry M. Paxton
have joined the staff of King Mer¬
ritt & Co., Inc., 1151 South Broad¬
A. Colbert and
way.
method
With Revel Miller
know from
experience that
adjudication of total
claims
is
administra¬
disability
tively expensive and often results
in disagreements and other diffi¬
culties that would be particularly
undesirable in the Federal OASI
(Special to The Financial Chronicle)
system.
cations
LOS
el Miller &
Street,
members
of
the
Los
An¬
Joins H. L. Jamieson
feature would represent
radical innovation in the present
OASI
system.
As
constituted,
OASI does not require considera¬
tion of issues about which there
with Rev¬
now
Co., 650 South Spring
geles Stock Exchange.
To make medical certifi¬
a
ANGELES, Calif.—Harwig
M. Van Noorden is
(Special to The Financial Chronicle)
a
can
in
earnings
in 1954 is
wage
the
basic
stressed.
hope your
earnings in excess of consider.
should be met
part of his
of
have
serious
cause
sibility
family against
of
in¬
we
ficulties for the future.
determining
loss
in
con¬
a
will
corrected,
Unless
The individual's respon¬
to protect himself and his
the
that
is
that
providing
which
features
higher-than-
in
in
sound
system designed
account
9366
effectiveness
system
spects
un¬
to provide basic protection should
not take
R.
security for the American people.
However, the bill departs from
stand
readily
easy
SAN
FRANCISCO,
Royal C. Davis is
Jamieson &
Calif.—
now
with H. L.
Co., Russ Building.
be great uncertainty and con¬
troversy.
To
Merrill Lynch Adds
1
protect benefit expectancies
during disability, it is not
sary
neces¬
to adjudicate individual
cases.
Through
an
adaptation of the
"drop-out" provisions that are al¬
ready in the bill, disability which
impairs earnings
or
(Special to The Financial Chronicle)
SAN
K.
FRANCISCO, Calif .—Anne
Buschman
ated
with
has
becont
affili¬
Merrill
Lynch, Pierce,
Fenner & Beane, 301
Montgomery
Street.
»
:
actually makes
„
System of National Pensions
The Secretary's
increase
This
those
groups.
The Social
an
$30
A
-
OASI
we
H.
feel
we
measure
the
crease
the medical
individual
from
principle
the
part,
structive
are
is sound and
the test of time. It is
in¬
Actually, H.R. 9366 would provide
range
believe
wages
conclusion
large
proposed in the bill to achieve it.
maintain effectively the principle
that
average
adequate, simple, and
administer.
In
increase is called for
no
because
We
shows, the percentage of all work-:
a
$3,600.
ture, but
now
workers.
the
undesirable.
principle, we recommend
that the wage base be maintained
45.
following
testimony.
and
drop-out provi¬
sions, possibly expanded as sug¬
gested, represent an alternative
controversy.
by voluntary action and intiative.
31:
covered
could
which
36
61,
of
the onset of perma¬
decades
sound
average
Secretary's
submit
period
before
cases,
only a
employ¬
mence
$4,200.
43%
.43
such
had
nent and total disability, it would
hardly be meaningful to com¬
support
48
.
In
individual
ment
OASI,
57%
4,200
the
major
a
individual's
guide in the future.
principle underlying
principle
a
as
a
of
along these
over
the
of
working lifetime.
benefits.
age worker who earns over
Should Not Be Converted to
U.M
9366
in
in¬
pro¬
ate
Amendments of 1954.
by
other increase to the above-aver¬
believe
Protection
law
living sta¬
Our studies led
change in the formula,
bill
of
benefit
adopted in 1952
adequate floor of pro¬
support
ings of employed people.
Floor
r
,
1
Congress
wages.
Basic
the
appreciable
tection.
this
1950, Con¬
Cost of
no
an
not
and
current
since 1952.
levels
financing of the system.
(5) The $4,200 wage base would
be higher than the
average earn¬
The
show
concept
essential
the
to the conclusion
sound
average wage earner.
(3) It is urged
1949
established
1950 and
from the inception of
the Act.
an
as
de¬
principle
widely
statistics
the statistics in the
I
worker under the proposed bene¬
fit formula.
Second, as a result
provided
the
protection"
has been
the
Committee
your
1
wage base to $4,200
in a special benefit
in
,
of
contains
to
column, giving correspond¬
ing percentages for all workers.
earning above $3,600. Un¬
bill, these workers would
double raise in benefits.
der the
table
Average Wage Earner
amounts
We oppose this increase for
the
reasons:
The follow¬
Workers
result
tistics
following
ing
submitted
security.
are
Proposed
Increase
in
the
Wage Base to $4,200 Is Unsound
With
hand
earnings
gress
The
reflect
serve
provisions
modified
extending
where
wage base should
derstandable.
lengthy
will
than the
more
base.
in
propose
$10 per month, or
Our conclusions are
set forth in detail in a memoran-J $15 per month if he has a wife.
It is our view that the
dum which I am
$3,600
filing with the
request that it be made a part of worker would be more than ade¬
the record as an
appendix to my quately protected under the pro¬
statement. My statement here to¬ posed new formula. After
rity system.
day
earn
present $3,600
majority of
a
of
a
paying old-age benefits,
later, based on a long
dormant earnings record.
view, the
centage of male workers earning
above the wage base.
We have
get
clause"
equitable
year
the
First, they would receive the in¬
r
crease
provided for the $3,600
put the 1
basis.
ness
male workers
needs
not
currently
;
"work
flexible
basic
theory for increasing
new
show that
to those
would, in effect,
"drop-out" provi¬
-
(4) The
retirement
This
advanced
added
Raising the
sion to be worth $5 a month to all
old-age beneficiaries; and
the
worker,
principle is
In our
As
the wage base to $4,200 was urged
on
the basis of statistics which
inception
drop-out
are
proportion
Ex¬
approximately $3,600.
f
that
$4,200
the
the Department of Health, Educa¬
tion and Welfare
showing the per¬
earnings, The
$4,200
computing Against the
(3) The proposed liberalizations
in the conversion table to the extent
with
average
no
would be eliminated in
benefits;
the
for their
provision
five years of
or
to
Since
Persons with
.
(1) Extension of OASI coverage
approximately 10 million peo¬
ple not now covered;
under which four
base
principle.
Act.'
the
short
of the proposed increase to
for increas¬
reasons
Not
by
lines, they will provide substan¬
help for all the disabled, ex¬
cept for the rare cases of disa¬
the principle
underlying the wage
base has been uncertain. No sound
these arguments do not
sound
Should
extended
tial
wage
Average Earnings of
Employed People
-
now
ing the wage base and that they
depart from the basic principles
underlying the Social Security
opinion
our
that
afford
Base
protection for the average worker.
hope
to
lowest
wages; and
most workers
Wage
higher-than-average worker. To¬
day, the average worker in regu¬
lar
employment earns approxi¬
mately $3,600. Obviously, raising
the wage base to $4,200 does not
produce a more adequate floor of
that
we
In
wage
this
concerned
following
desirable features which
will be
the
raising
of
supported many sound
changes to improve the social se¬
curity
protection.
If
H. R. 9366
ceed the
paying taxes
that
are
entire
benefits
feel
life
Any consideration of the proper
floor-of-protection level should be
have
H.R.
The
be
violates
busi¬
keenly interested
in social security ever since its
inception 20 years ago. In the past
we
should
basic
14.
business, too, has con¬
held the view that the
raising the
further
might be granted a drop-out of
either five years or one-fourth of
his period of potential
coverage,
which ever is the more favorable.
bility
The
since
their
on
the
role for social security
limited to providing
proper
over
of
Congress of Jan.
insurance
life insurance '
Call
v.
been widely
accepted. . From the inception of
OASI, Congress has been mindful
to
nies
under¬
96%
in
sound reason for
organiza- ir of them, tThe President endorsed; receive on retirement represent a
tions; T o - > the floor of protection: principle smaller proportion of actual earn¬
in his message on social
security ings than they did in 1950. We
:gether
they,
c o'm p a
As.
the worker's incen¬
cost
be
accurately predicted.
Certainly,
the financing argument is not a
two
represent
We
would impair
essary
creased
benefits
premium"
percent of taxable
a
would
base.
These concepts have
is
con-
high
as
be
liberalization of the drop-out
prin¬
ciple. For example, the individual
because
cerning H.R.
correspondingly
could
ture cost of the system cannot be
argued
was
"level
net
However, if it is
desirable, such protection
cases.
deemed
only 0.15%.
an almost negligible
per¬
centage, particularly since the fu¬
that the increase to $4,200 is nec¬
with
ability
This is
provide
living conditions for the pensioner
as though he were under a
private
pension plan.
More
the
OASI,
payroll,
would
9366
statement
;
in
of
pro¬
visions of the bill will
protect
benefit expectancies in most dis¬
following page 59 of the
Secretary's testimony, the decrease
under¬
we
that
drop-out
The
small
a
chart
theory,
shows
abled four years later.
We feel that the
"profit," so to speak, by covering
earnings between $3,600 and
$4,200. However, as shown by the
upon
to a national pension
Under this theory, benefits
would rise above the
basic/floor
save.
financing of the system.
OASI system would make
re¬
wages
have in¬
1950;
that fewer
workers are paying taxes on their
entire wages; and that the bene¬
America. This
'
the
not reflect
loss
experience
only about one-third of those dis¬
abled for six months are still dis¬
Finally, it is contended that the
higher base is needed to strengthen
converted
and
disability.
Insurance
.
plan.
of
drop-out periods are long
enough to provide substantial re¬
lief in most cases of
year
System
earnings
or
new
stand
"disability freeze"
workers
actual
The
should be high enough to accom¬
plish the purpose of the system, it
should not be so high as to tax
the
As¬
insurance
more
retirement
method proposed to achieve it.
opposes
benefits
their
"basic floor of protection
principle" accepted in the original
Act. Holds social security system should not be connected to
a
and
desirable
Increase in Wage Base Not Essential to Sound Financing of the
testimony
theory. It
new
"Because of the increase in the
behalf of the life insurance companies, Mr. Call
notes desirable features in the
proposed amendments to the
Social Security Act, but says the
proposed increase in the
wage base to $4,200 is unsound, since it departs from the
-
the
a
number of workers earning more
than the creditable maximum, in
Co.
a
»
argued that—
was
V. CALL*
Pacific Mutual Life Insurance
President,
to
over
opinion, this is
our
trend.
basic floor of pro¬
a
Instead,
shifted
In
-
Thursday, July 15,1954
..
the top
range.
of the floor-of-protection
It
means
prosperity
that with greater
more workers are qual¬
ifying ion,.the maximum benefits.
them
impossible,
nized by
the years
of these
be
can
permitting
a
recog¬
drop-out of
low
earnings.
Thomas H. Hughes
Thomas
H.
.
Hughes, partner in
Billings, Olcott & Co., New York
Actually, the, bill's faux and .five. City,, passed
away op
July 4.
,
\
Volume 180
Number 5342
The Commercial and Financial Chronicle
.;.
scientific research to political in¬
in Russia has not re¬
Competition: Communist
vs. Capitalist Nations
ceived nearly enough
Soviet Union is
atomic
shall witness
fierce competition between
a
LONDON, Eng.—At the end of
June
the
world
Kremlin
surprised
the
the announcement of
inauguration
of
the
first
the
by
atomic
•.
tric
"
"
power
station
y
-
elec¬
'
"
putting
So¬
in
The
f
There
■■■Mm..
i
.j.,
is
of)
course
no
m e an s
o
checking
this
claim,
t'"
even
but
in
•
f
the
absence
of
1
rings
■f
true,
owing
Einzig
the
to
modest
Dr. Paul
it
figure
lie
the
them
control
which
can
make
an
it be a big one" is fol¬
faithfully in all totalitarian
States,
that the fact that the
so
atomic power station is only
be capable of produc¬
new
claimed to
ing 5,000 kilowatt conveys the im¬
that the announcement
based
fact.
on
Russia
Soviet
It
has
for
in
are
effort
increase
to
development
of
for economic pur¬
This fact is well worth
For it
work
to
incredibly hard
far.
so
the
for
supremacy
two
large groups of
nations separated by the Iron Cur¬
It had
been suggested after the
that Hitler made a mistake in
trying
to
the
conquer
world
by
military aggression, because, with
the
imposed
would
the
of
aid
iron
discipline he
the German people he
on
been
have
unprecedented
able
domination
economic
by
and
bid
a
for world
wielding
superior
by proving
and
power
the superior
achieve
to
prosperity,
have made
could
efficiency of his
sys¬
tem.
this
Possibly
of
their
Hitherto
is what
Kremlin
the
have
chief
new
mind.
in
concern
was
to achieve and maintain the
high¬
military
of
the freedom-lov¬
ing
peoples.
To
that end
the
standard of living of the peoples
possible
superiority
degree
over
from Moscow has been
ruthlessly sacrificed in the inter¬
ests of rearmament and the speedy
governed
of industrial
increase
It would be
tial.
tic to
a
assume
that this policy has
been abandoned. But it
now
have
to
poten¬
war
unduly optimis¬
seems
become supplemented
by
policy aiming simultaneously at
impressing the world with prog¬
ress also in the non-military eco¬
nomic field.
tain
above
in
position
a
expansion
tition
between
a
fierce
compe¬
Communist
and
them
on
an
are
of
Also
ing
the
the
cern
trade
recessions
with
themselves
or
fears
&
of
to believe
reason
the
of
as a
1,600
all
ain
Democratic
countries
start with
advantage.
an
or
Brit¬
immense initial
But it would
be
un¬
pardonable to rely too much on
this advantage and to fail to make
the
utmost
effort
to
retain
it
in
Julien
This
wards
goes
making
the
in
long
for
sphere
invention.
is
the
progress.
Soviet
to catch
in the sphere of
Union
a
"the
come
Collins
boom that's
Holden
a
quite
non-residen¬
going to last for
while.
a
Regarding the long-term trendl
"It can't be
construction, Mr. Clarke said:
anything but continu¬
as time goes on it
seems to me that it's going to get
continuously larger. The Census
buildings—is
ing good and
Bureau's
A.
struction
maximum
were
As
the
of
be
lion"
of
life
it
1960
nearly
is
insurance
approximately
—
"It's
of
end
that
mated
will
funds)
end
esti¬
ers,
bil¬
the
1950
R.-
gage
Network
BEVERLY
He added
there is "certainly no
of
any
or
hard
times
Charles
added
or
W.
to
the
HILLS,
Dumont
staff
of
Due February 1, 1960
1954
Not Redeemable Before
Banks and
are
are
the secured
Maturity
joint and several obligations of the twelve Federal Land
Loan Act as amended.
issued under the authority of the Federal Farm
tech¬
The Bonds
their
are
eligible for investment by savings banks under the statutes of a
States, including New York and Massachusetts.
trust fu-nds
majority of the
The Bonds are also eligible for the investment of
under the statutes of various States.
100y8% and accrued interest
su¬
effort should be made to
loyalty of scientific work¬
for the Democratic cause. The
preme
ers
governments
firms
the
iand
concerned
should
This offering is made by the twelve Federal Land
with the assistance of a Nation-wide Selling Group
utmost to improve
do
their
Macdonald G. Newcomb, Fiscal Agent
the standard of
realize
that
are at a
compared
in Com¬
Subjection of
they
considerable advantage
scientific
succeeded
munist
31 Nas«au
July 14, 1954.
'■
workers
countries.
Banks through their Fiscal Agent,
of recognized dealers in securities.
1
industrial
I
$
;
Calif.
has
Street, New York 5, N. Y,
—
been
Taylor ai.J.
anything of that Co., 364 North Capnden Drive.
2%% Consolidated Federal Farm Loan Bonds
The Bonds
the
by the Na¬
(Special to The Financial Chronicle)
Federal Land Banks
Dated August 2,
pre¬
and is moderated by KennzTt
Miller, NAM's senior Vice-
$123,000,000
,
is
over
With Taylor & Co,
Mr. Clarke reported, mort¬
collections are at an all time
peak.
-
Radio
Saturday
President.
According to quarterly Purveys
of the Mortgage Bankers Associa¬
tion,
each
New Issue
in¬
A
of
tional Association of Manufactur¬
assets
$117
double
ABC
Business!"
Your
sented
figure.
indication
to¬
countries.
estimate
tion market will be."
in the country,
December, 1950,
approximately $64 billion.
the
at
unemployment
way
as
more
school
in
& Co.
their
of
ahead.
the need for
It's
little below the
Mr.
up
any
buildings and along
in the 1960's the colleges are going
to be over crowded and they're
going to need new facilities, too.
satisfactory rate."
that
laney, Wells & Co.; F. S. Yantis
win the
The fact that
needs
high
below the peak
year,
a very
added
W.
Mul-
well guarded and
are
Democratic
with
in
going to catch
Mortgage
Pollock &
Unfortunately
reciprocity,
no
secrets
own
a
up
them
surpass us
not
school
our
to the countries of the Communist
bloc.
of the Communist world
and
year's
billion
going at a
great rate and is more than off¬
setting the very slight drop in
housing activity."
Co.;
very high proportion of
industrial secrets finds its wav
full in face of the supreme effort
economic
$34
are
time
soon, even at the present recordbreaking rate. He pointed out that
"the boom in elementary schools
said
York,
of
we
mercial
Air-
&
Inc.;
living of scientific yorkers, at the
same time as endeavoring to make
up
New
building of various kinds—
schools, churches, hospitals, com¬
Gregory & Son, Inc.; Ira
a
the
the United States
with
tial
ma¬
50
result
economic ends. In this competition
as
He
R. W. Pressprich & Co.;
largely inaccessible to us.
In this latter sphere the relative
situation could be
improved by
such
last
of
along "at
switching
-
H.P.;
scientific research workers
grades and among techni¬
cians,
Mr. Holden said the indications
are
is
proportion of Comand
their
sympathizers
munists
our
that,
Vice-
pointed out that housing is going
about
There
high
among
of
information
innovations.
buildings this year has
registered
in
the
school
building field."
been
is apt to last for some years
rate of 1950 and
McMaster Hutchinson & Co.;
inflations.
place they have the
securing
dential
S.
Then will
ments, wherever there is a chance
technical
of commercial buildings.
largest increase in non-resi¬
The
y
rate
and two sleeping cars.,
in laboratories,
in
government depart¬
in
s!"
Corp.,
Holden
While housing is
participating in the offer¬
are:
Co.;
Co.,
organized system of scientific and
industrial espionage that has ever
existed.
Communist
spies
are
everywhere,
n e s
that last
at
from
Haupt & Co.; Wm. E.
advantage of the most efficiently
factories,
S.
construction
total
Baxter, Williams & Co.; Freeman
of
Capitalist countries in the sphere
of
technical
progress
pursuing
advanced
Thomas
1,750 H.P. road switching
slide cars,
by diverting a large
productive capacity
production of consumer
goods to the production of capital
equipment.
They need not con¬
part
yield
locomotives,
of their plans
from
volume
i
theF.W.Dodge
The
prices
1.40%
to
offered
locomotives; five road
plan industrial
unprecedented
to
con¬
"It's Your
Chairman of
inclusive.
1969,
are
to
purpose
in¬
cer¬
Their rules
lars, of school construction is
'
scale and to enforce the execution
nical
witness
methods
secures
advantages.
there
shall
modern
place, while the
totalitarian
the
dicated
to be¬
we
second
point of view, its combination
with
lieve that during the coming years
reason
prop¬
possession of a controlled economy
places the Communist countries at
a
disadvantage from more than
feriority
There is therefore
the
in
class
the
In the third
rulers
est
In
1,
time
history.
in dol¬
Clarke, President of the
the increase in population, in the
Bankers Association of
decade from 1950 to I960, equals
2.95%, according to maturity. They America, said that there "has been
all the people who were living in
represent the first instalment of a an adequate supply of mortgage
the
state
of
New
York,
Cali¬
money available to fill the needs
proposed issue of $7,800,000.
fornia, Delaware and the District
Insurance of the certificates is of the people for housing." Mr.
of Columbia in 1950. This means
Clarke, head of the W. A. Clarke
subject to the authorization of the
Mortgage Co., Philadephia, added that, by 1960, to properly house
Interstate Commerce Commission. that he believed an
and care for those people we will
adequate sup¬
The total issue of $7,800,000 of ply of mortgage money — for need to have built all the schools,
all the court houses, all the houses
certificates is to be secured by the housing and other types of real
and other facilities that were in
estate — would continue.
following new standard - gauge
those states in 1950. I think that1
Mr. Clarke explained that "as¬
equipment estimated to cost not sets of all life insurance com¬ gives us a pretty clear illustratic r\
of what the long trend construc¬
less than $9,750,000;
39 general panies (a major source of con¬
world.
one
tain.
war
working
July
scaled
the workers
they are the ruling caste,
though in reality they are
most
completely
oppressed
even
any
country's
s
u
Holden,
Equip. Tr. Cffs.
certificates
persuade
to
the
"will be exceeded somewhat" this
equipment trust certificates,
to
an
that
bigger than at
in
<
siderably greater than the volume
of factory buildings and the
Thomas
turing semi-annually Jan. 1, 1955
on
National
program.
an
consists of the ability of
regime to force its
totalitarian
laborers
much
before
The total volume this year,
on
ers'
Paul & Pacific RR. series SS 2%%
a
is
B
—
tem is claimed by its supporters to
possess^,
a
Manufactur¬
Without neglecting
aggression
told
radio
Association of
race
sys¬
to open a new chap¬
seems
ter in the struggle
between
at¬
more
tention than it has received
the
unfortunately
their
ciency, which the Communist
the
poses.
for
Halsey, Stuart & C<p. Inc. and
associates on July 9 offered $5,100,000 of Chicago, Milwaukee, St.
aganda
the
new
con¬
audience
requirements of defense
military
Offer
productivity to the utmost limits
of physical possibility.
The effi¬
by making highly effective
of
now
Halsey, Stuart Group
po¬
a
that the workers
ensure
countries
energy
ABC
collection records
Discussing the construction of
schools, Mr. Holden said: "School
building has been booming for the
past six years. .This year's volume
years
dustry
our
excellent."
are
nation-wide
They must do
that the lib¬
in the
own
of
supply
year.
industrial
for
And they
Democratic
sphere
which
partly by inspiring fear and partly
the
vital
against
manpower
cutting ahead of the
in
its
adequate
sort because
the
struction in¬
re¬
reason
will
the
for
always
But there is
Finds
year.
and
ahead, two authorities in the
between
succeeded in
atomic
the
re-
moment
a
holding
su¬
that
means
course
boom
1954
eral-capitalist system is capable of
for supremacy.
incredibly low standard of
living.
This result is achieved
pression
is
used
be
expansion.'
vast
a
through
is bright
their utmost to prove
Democratic
States
construction
outlook
econom¬
place, Russia, China
Satellite
to
let
lowed
The
continue
Communist countries.
In the first
and
claimed
a
This has of
possibility—
sition
to
utmost,
remains a
effort must be
world a good chance to hold its
made to ensure a degree of indus¬
own in this new competition. But
trial
progress
that fully main¬
it must be realized that in many
tains the present degree of su¬
respects the Communist countries
periority over the industries of
are at an advantage.
the
gives
sources
its capacity is
Hitler's maxim "If you tell
have.
vastly
this
mortgage money.
appropriate
utilization of natural
full
pursuing that aim.
long
perior capital equipment and
corroborating
evidence
of
possession
of
important additional
an
atomic
use
which must not be
'
viet Russia.
the
warning the lesson of
ignored.
a
somewhat
policies, to ensure an adequate
degree of industrial expansion and
ain have reached that stage should
as
last year's construction of $34 billion will be
says
exceeded
ic
before the United States and Brit¬
serve
pursuit
been their aim.
an
their
do
must
monetary, budgetary and
progress.
operation
in
the
by
sources.
station of practical
power
York,
scientists' para¬
all, the Democratic gov¬
ernments
Communist and
Capitalist countries in sphere of technical
a
whether by direct intervention or
Russia,
Dr. Einzig sees in this, if true, a possible change in Russian
policy from the attainment of a superior military potential to a
greater industrial potential. Holds there is reason to believe
we
Thomas S. Holden, Vice-Chairman of F. W. Dodge Corp., New
■
Above
on the report from the Kremlin that an
electric power station has been inaugurated in Soviet
publicity in
Democratic countries where many
scientists honestly believe that the
dise.
Commenting
Predicts Peak Construction in 1954
terference
By PAUL EINZIG
17
(221)
18
The Commercial and Financial Chronicle...
(222)
-
Continued
1199933214025
spent to raise prices and business
from first page
profits.
After the Japanese sur¬
rendered in August, 1945, the de¬
mand
for
consumers'
goods,
A Look Into Economic
Conditions in 1954
boom
did
kets
It
value.
have
understand
better
helps
and tends to create
an
us
to
economy
our
atmosphere
enlightenment in which polit¬
of
ical action in relation to the eco¬
welfare
nomic
of
and
present
future
generations may
effectively evaluated.
be more
cultural
products through restrict¬
trols
ing their output, and the National
all
Industrial
ftom
tended
Recovery Act was in¬
the prices of in¬
to
raise
dustrial products, both by
tions
output
on
increase in wage rates.
the
also
restric¬
through
and
There
an
was
shortly discarded.
price index
were
commodity
The
rose
154 in 1945 to 241 in 1948.
Along with the reduction of
government spending from 1946
to 1950, unemployment increased
from
million
1
in
1945
to
of promoting million in 1950
(Tables 1 and 3).
recovery through deficit financ¬
In
1946, Congress passed and
By 1949 it appeared that the post¬
the President signed the Employ¬ ing. In the peacetime years from war boom had run its course, then
1933 through 1939, the gross pub¬
ment Act of 1946, which is inter¬
came
the Korean War with for¬
lic debt and guaranteed issues in¬
ward buying at retail, wholesale
preted
by many
commentators,
creased from $24 to $47.6 billion.
and
public officials and others as plac¬
manufacturing
levels. The
During the period the theory that wholesale
ing upon the Federal Government
price index for all com¬
debt
owed
within
our
borders
the responsibility for preventing
modities increased
from
226 in
a
serious
Act
recession.
business
assumes
we
will
know
The
what
the status of the economy is at all
generations,
economy was in a booming condi¬
tion, it reflected an almost path¬
ological fear of a postwar depres¬
sion.
Fundamentally, the plan is
stabilize
to
declining business
economy
through the expansion
of
expenditures by government
a
low
point
intended
create
to
additional
increase
demands
the
materials.
and
pects
the
compensatory
'theory will receive further test¬
ing during the
years
immediately
1949
258
to
1951
declined
1933,
in
substantial
a
with
mild
a
to
and
1,162,000
in October,
The percentage
1953.
ian
point average of
unemployment
high
a
in
labor
of the civil¬
unemployed in
force
1954 is about the
April,
recession in 1937-38 and only par¬
Economics
1933, 12,830,000 persons, or 24.9%
of the civilian labor force, were
unemployed. In spite of the ef¬
forts
made
1940
1 employ¬
in
any
year
of
un¬
prior
to
7,700,000 in 1937 and the
with 9,480,000, or
was
decade
stimulate
to
lowest number
ended
17.2%, of the civilian labor force
The
in
all
1939
commodity price index
was
only 13 points above
the 1910-14 level. The parity ratio
of
received
and
paid
as
Transition
of
from
come sooner or
with
sufficient
produced
us.
prices
did
any
during the decade and
reach parity until after
'
.
of
the
"Great
Depression" which
the ultimate outcome of the
Was
economic
and
financial
sins
World War I and the 1920's.
decade
began with
a
of
The
not
100
average
in
year
World War II rapidly changed the
consumer
the necessities of
changed
to
decline in commodity and secur¬ the need for increased production;
ity prices resulting in numerous and the problem of how to raise
,bank and business failures, and prices and wage rates changed to
12.8 million persons
to
hold
them
within
unemployed efforts
by 1933. Heavily indebted farm¬ bounds. Unemployment decreased
ers became insolvent and the
high from 9,480,000 in 1939 to a low
rate of failures resulted in organ¬ point of 670,000 in 1944, and gov¬
ized interference with lawful fore¬ ernment agencies were concerned
closure sales. The foregoing brief with possible sources and means
reference
early
that
to
1930's
not
conditions
serves
to
in
remind
the
us
for
obtaining
additional
man¬
War
gaged in satisfying our real wants,
arid suggests a review of events
our
since
1933.
The
•EVrin before
II,
civilian
the
entered
we
production
goods
World
of
non-
stimulated by
was
own
attempt to re-arm and
by armament orders from abroad.
After we entered the war in late
Price
Raising Program of 1941, the need for war materials
The
financial pania and essential civilian goods
gi;ew
during the winter of 1933 led to apace. Although annual personal
the banking holiday
shortly after and non-tax payments increased
the
1930's:
Franklin
D.
President.
On
Roosevelt
Jan.
President
dollar
at
became
31, 1934, the
devalued the
formally
by fixing its gold content
15 5/21
grains of gold
59.06%
of
its
9/10ths
by $18 billion from 1940 to 1945,
of the tremendous
much
war were
means.
costs
of
financed by
inflationary
quantities of gov¬
Huge
ernment bonds
were
sold to
com¬
fine, or
former mercial banks and the exnansion
weight. The Gold Reserve Act of facilities of the Federal Reserve
1934
abolished
internal
gold
gold coinage
circulation in
and
System
any
ditional
were
used to provide ad¬
for
reserves
the
banking
shape or form. The purpose of system, and to keep interest rates
the gold devaluation
plan was to from rising as the use of credit
raise prices. The advocates of de¬
expanded.
valuation of the
measuring stick
During the war years, a consid¬
of
in
value
expected
the weight
of
the
reduction
the gold dollar
to> produce an immediate
increase
in
commodity prices.
erable
part
added
industrial
used
11,340
10,110
10,000
9,820
9,690
9,610
9,540
9,100
9,250
9,080
8,950
8,580
8,320
8,266
7,973
8,026
32,150
34,410
36,480
34,530
36,140
37,980
41,250
44,500
45,390
45,010
44,240
46,930
49,761
10,610
9,030
7,700
10,390
9,480
8,120
5,560
2,600
1,070
670
1,040
2,273
2,142
51,405
2,064
44,220
45,750
47,520
50,350
53,750
54,470
53,960
52,820
55/251
58,027
59,378
58,710
59,957
12,830
50,684
20.1
16.9
14.3
19.0
17.2
14.6
9.9
4.7
1.9
1.2
1.9
4.0
3.6
3.4
5.5
3,395
52,450
53,951
54,488
55,366
5,452
55,072
3,142.
1,879
1,673
1,523
1,892
5,366
55,558
1,788
5,720
55,740
1,674
6,070
55,158
1,582
5.0
3.0
2.7
2.5
3.1
2.9
2.7
2.6
2.1
6,528
61,460
__
/
7,507
7,054
6,805
61,005
6 J,293
61,894
60,524
60,924
61,228
61,658
6,390
•
7,926
55,268
55,246
1,306
63,172
1,562
2.5
7,628
55,492
1,548
2.4
63,408
7,274
56,134
1.240
62,306
7.262
55,044
1,246
2.0
2.0
__
Oct
62,242
62,925
Dec—
7,159
55,083
1,162
1.8
,
6,651
55,274
1,428
2.3
60,764
„
''
5,438
55,326
1,850
3.0
1954—
Jan.
69,753
5,284
54,469
3,087
60,051
60,100
5,697
54,349
3,671
Mar
5,875
54,225
3,725
5.2
5.8
5.8
Apr.
war.
60,598
6,076
54,522
3,465
5.4
♦Indafcs self
NOTE—All
and
in
made
dules.
some
from
domestie service workers.
page
transmitted to Congress
President,
on
1X2 in Economic Report of
Jan. 28, 1954.
TABLE II
Economic Trends
Index
\1/hnlacftloi
itiiiitcMiie
Period—
Rrihfw tkf
1 nccb ui.
100
143
143
m
92
118
98
125
86
124
81
__
„
U
194ft.
1943
;!
i t
100
;
123
-
.
v'
i
'•
V
133
7
92
144
1945
1946
152
104
192
171
112
152
__
158
151
__
-
1944—i
196
182
206
190
108
208
112
177
—
234
108
222
1949
1950
1951
1953—
_
99
258
256
101
302
282
107
288
287
100
247
__
110
251
251
—
1952
240
260
249
258
__
275
232
__
285
226
__
1948
115
241
1947—
The families of those who have
>
115
100
154
1942—
tion.
Parity Ratio
Prices,Paid
100
..
1941— __127
ing in residential housing awards,
although total construction is still
strong. Retail sales have leveled
out, consumer credit is at high
levels, and unemployment has in¬
creased to 1950 levels. Altogether
many
of the key business in¬
dicators point to an imbalance be¬
tween production and consump¬
—
100
1935-39—
v
■
Price Received
1925-29—
eas¬
Affecting Agriculture
1910-14=:= 100
Alt Commodities.
1910-14—
reductions have
production sche¬
There has been
employed, unpaid family and
exeept 1954 data adapted
Ok
the work-week and the amount of
258
279
92
for
the
of
the
existing
facilities
production
of
and
were
war
producing the extra cars,
y.''
extra
houses," extra
plant and
TABLE III
equipment, extra goods for foreign
relief, and for the accumulation Gross National Product, National and Personal I11con.es, Consumption
Expenditures, Personal Savings and Government Purchases
of larger
inventories now have
less income to spend on products
(Estimates by the Department of Commerce in billions of dollars)
in general. Also the reduction in
Govt.
Personal
°Total
Personal
Dispos¬
Total
Tax &
able
Gross
Consump¬ Personal Purch.
payrolls means less money to sup¬
Net
Goods &
tion
National
tNational Personal Non-Tax Personal
port consumer credit which has
Period
Product
Income Payments Income
Income
Savings Services
Expend.
been an important factor in mov¬
3.7
8.5
2.6
78.8
87.4
82.5
85.1
1929
103.8
ing the supply of household ap-.
2.9
9.2
70.8
73.7
75.0
76.2'
2.5
1930—__
90.9
61.2
1.8
9.2
64.8
1.9
63.0
58.9
1931
75.9
pliances, automobiles, and tele¬
.
'
.
The
sets
into
Economy
consumer
1929
and
1932—
still
are
normal.
Farmer
are
in
lation in
with
aid
51.6
51.9
-—0.2
72.2
56.8
59.9
1.9
58.0
56.2
1.8
9.9
82.5
64.7
68.4
2.3
66.1
62.5
3.6
11.7
90.2
73.6
64.0
2.9
71.1
67.1
3.9
11.6
12.8
9.8
84.7
67.4
68.3
2.9
65.5
64.5
1.0
91.3
72.5
72.6
2.4
70.2
67.5
2.7
101.4
81.3
70-3
2.6
75.7
72.1
3.7
13.9
126.4
103.8
953
3.3
92.0
82.3
9.8
24.7
161.6
137.1
122.7
6.0
116.7
91.2
25.6
59.7
13.1
1943
150.3
17.8
132.4
102.2
30.2
88.6
183.8
165.9
18.9
147.0
111.6
35.4
96.5
215.2
182.7
171.9
20.9
151.1
123.1
28.0
82.8
1946_;
211.1
177.7
18.8
158.9
146.9
12.0
30.9
1947
233.3
198.7
191.0
21.5
169.5
165.6
3.9
28.6
1948—__
259.0
223.5
209.5
21.1
188.4
177.9
10.5
36.6
1949—
258.2
216.3
205.9
18.6
187.2
180.6
6.7
43.6
1950_
286.8
240.6
228,7
20.9
205.8
194.6
11.3
42.0
1951
329.8
278.4
254.3
29.3
225.0
208.1
16.9
62.9
1952
348.0
291.6
269.7
34.6
235.0
218.1
16.9
77.5
1953
stocks
169.7
213.7
1945...
borrowed
194.3
1944
industrial
and
8.0
1.6
1942
relation
of
—1.2
53.2
1941
at
commodities
8.1
46.3
48.6
1940
comparatively lower
to assets, and
there is a floor under the price
of basic farm commodities. Specu¬
levels
—1.4
45.2
64.9
1939
high levels
and unemployment is about
debts
49.2
1.5
1938
at
and
47.8
46.6
1937
pects, it is far less vulnerable than
it was in 1929. Disposable personal
incomes
1.5
39.6
1936
While the American economy in
1954 has many unfavorable as¬
49.3
55.8
1935
1954
41.7
1934
hands.
58.3
1933^
vision
money is
supplies with a resulting lower negligible.
Depositors insurance
several years elapsed before
prices
supply of automobiles, radios, re¬ has removed the danger of a run
in the market places reflected
the
full extent of the 1934 devalua¬ frigerators, stoves, furniture and on banks, if isolated bank failures
many other civilian goods. Largely should occur/The growth of social
tion.
because of the short supply of de¬ security programs, private insur¬
The
commodity price raising sirable civilian goods, much of the ance and pension plans in recent
program
of the 1930's was not
inflationary purchasing media was years are important in a transi¬
confined to monetary
policies. The held idle by individuals and busi¬ tion period in helping to bridge
Agricultural Adjustment Act was ness concerns. However, enough income
gaps during periods of un¬
designed to raise prices of agri¬ inflationary purchasing media was
employment, sickness, and acci-
However,
28,670
30,990
9,900
been
power.
long ago we had not
learned how to keep our capacity
for production continuously en¬
so
8,030
12,060
ditions have
over-time;
precipitous dustrial commodities
32,110
28,770
42,260
44,410
46,300
Nov.
created
the key
been
in the 1930's.
10,290
10,170
10,090
3.2
8.7
15.9
23.6
24.9
21.7
Feb
reduced by
from those of
concern
4,340
Sept
during the time when the supply
of durable consumer goods was
complexion of economic problems
Problems of surplus farm and in¬
35,140
42,400
38,940
38,760
40,890
Aug.
by
farmers
10,340
May—
During recent months some of
indicators of business con¬
been flashing a red
Basis for Anticipating Economic
did not
light. The parity ratio for farmers
Change
has sunk to 1941 levels (Table 2).
we were well into World War II
The Great Depression: The rea¬
in 1942 (Table 2). The foregoing Raw material prices and manu¬
son
for the present uncertainty
citations are sufficient to indicate facturer backlog orders have been
with regard to the future of our
that the devaluation of the dollar, declining; inventory accumulation
economy, stems from the road we
spending freely above revenue in¬ reached abnormal levels but are
have
traveled
during the past
now
improved
in lines
where
come, and other government ac¬
quarter century. We have lived
tivities
did
not
accomplish the price concessions have been made
through both a drastic and pro¬
or
the production rate reduced;
balance in prices and employment
longed depression and a serious
that was desired during the 1930's. construction costs are at exces¬
inflation. The decade of the 1930's
sively high levels; there has been
is commonly known as the period
The Boom Economy Since 1949: a
gradual decline in the length of
ahead of
45,430
Labor Force
Unemployed
1,550
June
that has
vacuum
37,180
July— 63,120
goods to meet normal demands at
the prices obtaining and at the
time fill the
10,450
Apr
production
facilities and know-how
47,630
—
Mar.
later. We find our¬
expanded
Unemployed
Feb
making and represents an adjust¬
ment that many anticipated would
selves
Non-Agricultural
Jan
Inflation: The present "inventory"
recession was a long time in the
same
unemployed (Table I).
same
;
ifewas in 1949.
tial recovery as the decade ended.
At the depth of the depression in
The present pros¬
that
are
labor
for
future
consider¬
attracted
occurred,
recovery
a
monetary purchasing power in the
hands of consumers and thereby
on
Recovery in the 1930's: After the
reduction in the rate of tax*.., ment, the
ation.
These simple actions are employed
and
burden
a
able attention.
times and whether conditions are
going to get better or worse. Siqce
the
Act
was
passed while the
program
would not be
Agricultural
3936
3
over
*TotaI Employed
1199453802
only partially effective price con¬
does
% of Civilian
Month
Black mar¬
thriving business and
a
(Bureau of Census Estimates)
Thousands of Persons 14 Years of Aye or Over
or
under way.
was
Civilian Labor Force, Employed and Unemployed
Year
new
swelled
TABLE I
1119994435603278
7
plants and machinery
rapidly and a business
houses,
Thursday, July 15, 1954
367.2
307.7
284.5
36.6
247.9
229.9
18.1
84.9
180.3
'1
*The gross
and seivices
tNational
gross
ances
national product expresses the market value of all the goods produced
rendered.
(
income is the toital net
national product in
for
indirect
business
and
income earned in production.
It differs from
that it excludes depreciation charges and
institutional
consumption
of
durable
other
capital
allow¬
goods and
business taxes.
NOTE—Data
through 1953 from pages 167 and
177 in Economic Report of the
President, transmitted to Congress on Jan. 28, 1954.
Number 5342... The Commercial and Financial Chronicle
Volume 180
Some unemployment
dents.
time
time
to
progressive
ends
is
from
in
inevitable
economy
progress
as
jobs and creates
some
a
new
nations
once
permitting
inflation have
ever
stopped the trend permanently be¬
fore the circulating medium and
claims
in increasing numbers.
ones
few
peace-time
to
wealth
became
(223)
would
than
tend
cure
recession before it gets out
a
Street
took
slump
three
The
in 1929, it
before effective
started
years
corrective
action
could
be
taken.
widely held opinion is that
Washington Administration at
the
the
indication
first
business
recession
of
serious
a
will
into
put
operation all the inflationary and
other
its
at
measures
command
for
promoting economic stability.
President Dwight D. Eisenhower
recently said:
"We
make the transition to
can
period
a
of reduced mobilization
without
serious
interruption
in
economic growth. We can have
in this country and in the free
world a prosperity based on peace.
our
.
The
.
.
full
will
government
part
do its
to
help
realize
promise of that future in its
to encourage
the
pro¬
expanding
dynamic economy." i
gram
and
an
that
cause
prac¬
Conclusions
tically worthless. The grave con¬
that
today
the
government
is sequence of continued inflation
authorized to take action to deal are widely known, and present
with
strengthen rather
forces
recessions, and make for more
severe adjustments at a later time.
Another favorable difference is
of control. After the so-called Wall
to
the
Thinking in terms of the next
half dozen years and barring war
indications are that we will avoid on a large scale, the conditions
this route for a time at least, if now obtaining in May, 1954 are
in favor of a minor
peace prevails. According to plans weighted
that have been announced by the recession. A gradual reduction of
Eisenhower
Administration, ex¬ the 1952 all commodity price level
penditures for defense and for aid by 20% or to about the level
to our allies will remain high but existing in the early part of 1947
be
a
more
at lower levels than in 1953 and would
prudent goal
gradually be reduced each year than to try to maintain peak prices
for
manufactured
products.
A
modest reduction in prices would
possibility of
enable
consumers
to
clear
the
a
great depression grows out of
the maladjustment and distortions market of established goods and
in wages, prices and debt expan¬ services, and have some income
sion that develop during a long left to spend for schools, hospitals,
and the new types of goods that
period of marked inflation. In
research is continually bringing to
the past, the correction of such
maladjustments has resulted in a the production stage. During the
last few months, there have been
severe
depression. The view of
com¬
Colin Clark, a prominent British indications that imperfect
until the budget is balanced.
The other extreme
economist, has received consider¬
petition is encouraging some busi¬
units
to
increase
their
effi¬
able attention because of the pro¬
ness
found
improve the quality of
products and advertise attractive
pessimism
his
of
conclu¬
sions. In two articles published in
the
Manchester
"Guardian"
in
ciency,
price concessions to consumers.
November, 1953, he expressed his
As
the
purchasing power of
ernment should resort to deficit conviction that the experience of money has declined since 1940, the
the early 1930's will repeat itself
financial position of people who
financing to deal with a depres¬
in the United States. Later, in a
sion
as
reflected
owned land and durable produc¬
by unemploy¬
With respect
to when the gov¬
ment, the views of Senator Paul
Douglas of Illinois are of interest
because
he
is
economist
an
who
had made employment a life-long
study. As
member of the party
in 1952, he said:
a
in power
"To
deficit
financing in
unemployment
down below 6% is—very danger¬
use
order
will
It
ous.
drive
to
tend
to
do
far
more
harm
through inflation than the
good it will do by absorbing some
of
those
who
are
unemployed
from
seasonal
and
transitional
in
"For
period when unem¬
ployment is less than 6%, there is
real
to
session with the
tional
Industrial
Board
Na¬
in New York City
Conference
go
a
1954,
.
On
that
day
same
Colin
Clark conferred with the National
Industrial Conference Board, W. S.
Instead,
the
unemployed
are
primarily either the hard core of
the perennially unemployed, such
nomics of Johns Hopkins Univer¬
the
handicapped,
and
the
transitionally
unemployed for
whom
job
there is
openings
exist.
Since
real idle supply of la¬
no
bor, extra money pumped into the
by
budgetary
deficit
cannot appreciably increase pro¬
duction. Rather, it will be used to
bid up the prices on the available
supply of goods and services, arid
hence it will bring about inflation*
economy
"There
is
further
a
zone
of
uncertainty within which we do
not know what is going to hap¬
pen. I submit as a rough judgment
that probably we should not run
a governmental deficit unless un¬
employment exceeds 8%, and, in¬
deed, possibly slightly more than
that." 2
The Probable Road Ahead
possible directions
which our economy might take
from the relatively high levels of
discernible. The two
are
treme
possibilities
would
ex¬
be
further
Professor
of
Eco¬
sity also appeared. He cited alleged
fallacies in the mathematical equa¬
tions used by Dr. Clark to predict
the business
cycle, rejected his
remedies, and warned against the
application of anti-recession
remedies
"too early and in the
direction." Professor Woy¬
tinsky thinks that while current
adjustments have not been com¬
pleted,
that
there
will' be
no
precipitous contraction in over-all
wrong
activity, and that
recuperative forces
will
omy
bring
the dynamic
in our econ¬
rising in¬
about
dustrial production by the end of
1954.3
There
would
to
seem
be
no
in
That
1929.
which
should
there
our
conclusion, the writer is of
opinion
that
information
available
indicate
a
immediate
at
this
time
does
future.
On
the
same
in
elements
be
the
business
extreme, ■ further inflation is pos¬
sible
but
not
probable
if
prices around the relatively high
levels of 1954,
or
a
mild and
gradual price recession toward the
postwar levels of 1946-47.
sistance
which
government
is
prepared to give when warranted,
should enable these adjustments
not be
entirely abandoned. If the
of
gression
further
Communist
which
hangs
should force the
over
ag¬
us
into war,
nation
inflation would then be inevitable.
in
Even
the
no-war,
situation which
there
we
influential
are
no-peace
find ourselves,
men
ad¬
vocating deficit spending, and a
political situation could develop
that would result in deficit spend¬
ing
on a
large scale and continued
inflation.
inflation
The
in
forecast
of
ment
should
not
weaken
long-run is sup¬
ported by the historical fact that
1 Economic
January
__
Report
1954.
Page
of
the
President,
v.
2 Paul H. Douglas, Economy in the Na¬
tional Government,
Press,
pages
University of Chicago
253-54.
our
margin of safety in peace-time by
deficit spending. The most likely
course
indicated for
our
economy
NEW
concerns
to be made
With
a
the
to
were
.
consistently
railroad
prices have been moving
as
stock relatively low base, was up 59.4%
ahead. during the period. Aside from this
New
England
carrier' the
two
Obviously the market is less in¬
terested in the past or the present
than it is in what appears to be
roads
classified
tions
that
in store for the future.
average
eastern
as
did
better
or near
a
of
as
$210 million. This would repre¬
a
decline of close to 50%
sent
from
the
$417 million reported a
tions.
section of the
The southeastern
country did very well marketwise
with
three
representatives in the
in¬ top
five.
Following Bangor &
little Aroostook came Southern Railway
question but that July results will with a gain of 40.5%, followed by
also show up quite poorly. In the Atlantic Coast Line which was up
face of this poor earnings per¬ 38.0%. Seaboard Air Line with an
year
in
with
Moreover,
ago.
tions
steel
the
vaca¬
other
and
dustries there appears to be
formance railroad stocks, as meas¬
advance of 31.9%
ured by
the list. The only other stocks on
the
list that
gained more than
were
up
the Dow-Jones averages,
almost 20%, from 94.03
list
sentative
the
of
York
New
40
common
and
preferreds traded
speculative
Stock
on
Exchange
30%
were
was
and
ranked fifth
seem
1952
during the first half of 1954
Kansas City Southern which
fourth place
(up 36.8%)
Chicago
sixth place
named
also
was
somewhat
line
the
stressed
thesis
so
that
a
further
debt.
increase in
Such
the
extreme
were
•
advanced
a
point
or
appreciable
Dividend
28 out of the 40 that showed
any
price
enhance¬
ment. Aside from Western Pacific
those
the
been
Servicing
formed
East 40th
with
3 For
the conferences of
Colin
S. Woytinsky with
the National Industrial Conference Board,
report
on
Clark and W.
see
Jan.
mercial
4 See
28,
and
1954
issue
Financial
of
"The
Chronicle,"
4.
These Shares
are
offered
as a
Speculation
i
501 Per Share
Offering Circular obtainable from the undersigned
l. d. Sherman & Co.
1954.
NEW YORK
30 PINE STREET
WHITEHALL 4-5540
July 14,1954
has
10
(in each case to engage in a securities business.
less than a point) Harry M. Seigler is a principal of
Central of Georgia, Dela¬ the firm.
was
•
Com¬
page
Economic Report of the President
transmitted to the Congress on Jan. 28,
at
Street, New York City,
na¬
a
Corp.
offices
declined
that
drop
were
■
Servicing Corp.
less. There
were
Price
action
been
a
large degree of selectivity and
five
that
declined
elasticity is essential in setting up
the first six months of
a program of investment or spec¬
1954, with Western Pacific — off
ulation in railroad securities.
''
four points — the poorest per¬ '-I*';*
/
'/•.
* 'former.
One,
Northern
Pacific,
was
unchanged and another six
Form Div.
there
reflationary "shots in the arm"
administered by the government
tional
has
often in this column—
of
and
a
as
during
our
goods.
levels
of
its early 1954
earnings were
being compared
with a period of strikes a year
earlier
so
that
they
naturally
showed
up
well. These diverse
performances again tend to under¬
special situation
(Par Value If per Share)
to suggest large doses
in
Western
Great
(up 30.6%). This last
many pro¬
price
on
in
difficult undertaking
manufactured
the
1 Chicago & Eastern
While no final figures are as Illinois (up 27.5%) and Baltimore
& Ohio (up 21.9%). Both of these
yet available it now seems likely
that net income for the Class I, started from relatively low bases
and both to a certain extent repre¬
carriers as a groi%) for the first
half of 1954 may have run as low sent what might be called situa¬
Common Stock
1952 levels would
opera¬
than
were
Colonial Uranium Company
might take, price stabili¬
Maintaining
would
that period formance was measured in the
just as con¬ first six months of 1954, there
sistently declining. The upturn in were 13 that outperformed the
railroad stock prices got
under Dow-Jones
average
of
railroad
stocks—all
of
these
scored
ad¬
way just about the time that rail¬
road earnings started on a pre¬ vances of more than 20%. All but
cipitous decline around the middle three of these operate in the south
of
September, 1953. Since then or west. The best performance
earnings have continued *• down¬ was that of the small Bangor &
ward month by month and almost Aroostook which, starting from a
During
year.
more
which
although hoped for by
ducers
the
railroad stocks
major depression.*
directions
to be
seem
of busi¬
along with the as¬
respect
zation at
of
544,000 Shares
without dropping the
into
moderate
economy
railroad earn¬ turned in the poorest performance
going ahead consistently although there were some excep¬
to successive new peaks through¬ tions.
out the first seven or eight months
Out of the 40 stocks whose per¬
were
ISSUE
further
the
peace
prevails. War always results in
public debt increases and govern¬
com¬
sults. The basic strength
economy
of stocks. Last year
ings
common
ness
threat
other
and
exist
tions would be the stabilization of
possibility that we may ex¬
perience further inflation must
not
major recession in the
munity which would permit some
adjustment without ruinous re¬
The
tionship to, current market action
& Hudson, Lehigh Valley,
Pennsylvania. As has been the
general pattern for some years
past, the eastern roads in general
ware
economy
adjusted is a
knowledge. At
time, there are dynamic
matter of
the
in
inflation, or a deep and
prolonged depression comparable
to the 1930's. Other possible direc¬
,
In
the
necessity and little likelihood that is a minor recession in prices and
will experience a major reces¬
employment with business activity
sion such as followed
the
continuing at high levels.
Napoleonic Wars in 1815, the Civil
War in 1865, and the Wall Street
maladjustments
again it has been demon¬
strated that current developments
have little influence on, or rela¬
mass
we
crash
Several
1954
Woytinsky,
Divergent Performance of Rail Stocks Cited
Once
production to 112.70, between Dec. 31, 1953
and technological progress result and the close of the market on
in lower costs per unit, a reduc¬ June 30, 1954. The June 30 level,
tion in prices would promote the incidentally, topped the 1952 high
general prosperity and make it and since that date the averages
possible for consumers with have continued to push forward.
ordinary incomes to purchase the
As is practically always the case
ever
increasing volume of goods with
railroad
stocks
the
per¬
and services necessary for the full
formance of the individual issues
employment of a growing popula¬ varied
widely
during
the
six
tion and an expanding economy.
month's period. Taking a repre¬
the economies of
the
supply of workers ready
into productive activity.
as
tion facilities was protected by the
rising dollar value of their proper¬
on Jan.
ties.
On
the
other
hand
most
Dr. Clark again pre¬ salaried workers and older people
dicted a "fairly serious decline"
whose savings were primarily in
and
suggested
two
alternative insurance policies, bonds or sav¬
programs for checking the slump.
ings
accounts
suffered
losses
Taxes would be cut $20 billion per
equivalent to a capital levy. If
annum
without reducing govern¬
the people in the latter group are
ment spending, or long-term, lowto recoup a fraction of their dis¬
interest, or non-interest bearing advantage, they will need to be
loans of similar amount would be
more
vociferous in opposing in¬
made to countries willing to spend
flationary
public
policies
than
the proceeds 'for American
they have been in the past. When
21,
products.
causes.
no
round-table
19
5, N. Y.
II
20
The Commercial and Financial -Chronicle;
(224)
Continued,
jrom
..
Thursday, July 15, 1954
11
page
Currency Convertibility
Can Be Achieved
made upon us,
it is not surprising
im¬
should sometimes become
we
patient. Yet, the role and weight
of the
is such that
economy
policies
our
decisive
often
are
States in the world
United
for
peoples
everywhere. A nation which with
only 5% of world population pro¬
well over 40% of. the total
duces
output of goods and services, has
responsibility 'for the- world¬
effects of its actions, which
a
wide
all
of
here, I
us
recog¬
sure,
am
nize.
To be
specific,
approximately
an
balanced payments position which
is the basic condition of converti¬
bility, requires from the American
the maintenance of a
high
side
and
rising flow of dollars to the
world, that is, a rising
level of imports of goods and serv¬
ices, and a rising level also of
rest of the
investment. I say rising
reason to believe
the' long-term disparity in
relationship between the United
foreign
because there is
that
States
and
world
the
of
rest
free
the
is
increasing. The mutual
reaction of technological progress
and
capital
accumulation
has
brought about here a growth in
productivity
much
more
rapid
than
elsewhere, and a rate of
progress, therefore, which is con¬
tinually strengthening the com¬
petitive position of the United
States. This tendency away from
equilibrium must, therefore,. be
compensated for by increasing im¬
ports and overseas investment.
WEIRTON
Grappling With
the
grappling with
ophrenia. The
in
ance
we
time
present
world
steel, Weirton operates the world's largest and fastest electrolytic
plating lines. An extensive variety of other steel products are manu¬
factured in plants that are among the most modern in the industry.
are
we
economic schiz¬
persistent imbal¬
requires that
an.
trade
towards
move
COMPANY—Here
manufacturer of tin
Schizophrenia
At
STEEL
is the world's largest independent
plate, with mills at Weirton, West Virginia, and
Steubenville, Ohio. A pioneer in the electrolytic process of coating
Economic
an
liberal
more
trade policies. But as we move in
this direction, inevitably and un¬
derstandably
position
of
the op¬
parties.
Nevertheless, it is clear that if we
payments,
the
of
system
up
interested
resolve
to
are
our
stir
we
and
trade
make
must
we
structural changes
in
difficulties
world
in the
some
economy
of the United States. The justifica¬
tion
of these
changes and any
transitional
with
tional
interest.
in
have
we
problems associated
is the overriding na¬
them,
productive
est
is
It
an
interest
in which
used in the most
It is the inter¬
manner.
in
have
the
economy
our resources are
a
free
military and
will
be
a
deterrent to Soviet expansion. If
this is the issue, and I believe it
is, then these structural changes
must be made and we should, by
any necessary means, bring them
about as rapidly and smoothly as
we
building
world alliance whose
economic
strength
.
possible.
Equally important is the main¬
of full employment. It is
tenance
true
that
the
recession: .has
American
recent
had
not
the
ex¬
pected
impact
omies.
Though the United States
on
econ¬
overseas
industrial production index slipped
about
10% from the peak, indus¬
production abroad has held
up or even moved ahead. And, as
I mentioned earlier, foreign gold
trial
dollar
and
to
rise.
sneeze
in
the
The
proved
notion
United
duces abroad has
been
have
reserves
tinued
on
false.
States
alone
the
this occasion
is
on
this
far-reaching
conclusion that the outside
world
immune from the second¬
now
ary
a
pro¬
Nevertheless,
it would be foolish to base
episode
con¬
that
effects
of
economic
disturb¬
here.
ances
Moreover,
United
aid, particularly military
aid, amounted in 1953 to about
J?>5 billion, and it was this aid that
permitted
the
strengthening of
gold and dollar reserves. Until
.States
other evidence is
must
that
forthcoming,
we
undoubtedly still conclude
high level of economic ac¬
a
tivity in the United States is the
*
-
Continued
on
page
21
STRAN-STEEL DIVISION—A unit of Great
Lakes
Steel, with plants
and Terre
at
Ecorse, Mich.,
Haute, Ind. Originator and
clusive manufacturer qfQuonset
ex¬
buildings,
HANNA IRON ORE
COMPANY, Cleveland, Ohio—Iron
properties and mines in Minnesota, Wisconsin and
Michigan. In addition, National Steel is participating
THE
HANNA
ore
nace
division in
in the
other blast furnaces in Detroit and in Weirton. In
development of the important new iron ore field
Labrador-Quebec, where great iron ore reserves will
Stran-Steel nailable
in
Steel
augment
framing, and Stranflooring for trucks and truck trailers.
the future supply of this vital
raw
material.
augment
FURNACE
CORPORATION—Blast fur¬
Buffalo, New York. Its four furnaces
the pig iron production of National's eight
addition, this furnace division is
a
of all grades of merchant pig iron
leading producer
for foundry
use*
Volume 180
Number 5342
The Commercial and Financial Chronicle
...
(225)
21
Continued from page 20
Currency Convertibility
Can Be Achieved
most important
single factor sup¬
porting a high level of imports
foreign investment. It is then
and
both
America's
interest
and
her
international duty to pursue fiscal
and
monetary policies which will
the fullest
support
nomic
possible
eco¬
activity.
Throughout
intended
to
convertibility
currency
/,"*■ removal
tions
my remarks I have
couple together both
of
and
quantitative
the
restric¬
imports, For, as I men¬
the
outset, technical
convertibility would be meaning-;
less
if
import
restrictions
re¬
or\
tioned
at
mained. Some believe that
further,
in the removal of import
progress
/
restrictions should be made before
convertibility is attempted. Others
believe that we should begin with
convertibility and follow with the
1
relaxation
of
trade
Finally, there
v
-^
view
.
restrictions.
those who believe in gradual and parallel ac¬
tions along both lines. My own.
is
are
the last.
import
The
restrictions
removal
the
and
of
re¬
moval of currency controls should
hand in hand. After
go
so
many
of controls, we must admit
cannot be sure-what will hap-:
years
we
if we make a dash to con¬
vertibility.
Undoubtedly,
many
adjustments will have to be made.
Industries,
for
example,
which
pen
have
ISREAT
LAKES
STEEL
CORPORATION—Located
at
Detroit, Michigan,
biggest steel maker in that important
complete facilities, from blast furnaces and coke
this unit of National Steel is the
Industrial
area.
Its
through
ovens
to finishing mills, enable Great Lakes Steel to furnish
of industries with a large volume and variety of standard
and special steels, including the famous N-A-X
High-Tensile steel.
a
wide range
grown
suggestions
Many
a
complete, self-contained steel
producer. Its production
starts
in National Steel
properties beneath the earth's surface. It
with finished steel and
National furnishes
to
ends
specialized products that
the industries of America.
Within its structure, National has
every resource
and
ore
facility required for the transformation of
into 6,000,000 tons
of ingot steel each
NATIONAL
year.
STEEL
GRANT
BUILDING
National Steel mines and quarries yield its raw
materials. National Steel
furnaces, mills and machines, melt
finish
.
.
.
distribute its steel.
.
.
men
.
roll
.
.
•
This is National Steel—seven great
divisions—
through
of America's
most
to
been
make
a
the
re-opened
United
commodity markets.
Kingdom
completely integrated, completely independent,
one
have
best
approach.
It has been
suggested, for example, that one
could increase gradually the par¬
tial convertibility provided for by
the
European Payments Union.
Another
partial measure would
be to permit the purchase with
sterling
of
dollar
commodities
and
.
to how
as
gradual
boats, barges and trucks
transport its products. National Steel
under the shelter
controls, will be subject
to the full blast of competition.
Undoubtedly
these
adjustments
are, in the long-run, necessary for
the health of the patient. It would,
however, be foolish to expose a
convalescing world to pressures
which might bring about an early
relapse.
made
National Steel is
up
these
of
But
progressi ve steel producers.
whatever the means, the im¬
portant thing is to make progress
toward the objective.
For con¬
vertibility offers the promise of
major progress toward a health*
ier world economy. It would once
CORPORATION
again permit every country to
buy in the cheapest and sell in
PITTSBURGH, PA.
the dearest market.
vide
the
It would pro¬
and
necessary
discipline
of
wider
It
would
of
goods and
healthy
competition.
the exchange
services in greater
promote
It would eliminate those
volume.
barriers which,
by discouraging
travel, have hindered mutual un¬
derstanding between
It
tions.
men and na¬
increase world
would
trade, encourage investment,
and
promote the
free people.
cohesion of all the
The world is more
in need of
integrated and pros¬
an
pattern of trade than at
time in its previous history.
perous
any
If
is
there
this
will
do
attainment
of
act
one
toward
more
the
that
objective, I suggest it is the
restoration of convertibility.
William E. Pollock Go.
NATIONAL MINES CORPORATION—Coal mines and
NATIONAL STEEL PRODUCTS COMPANY,
Properties in Pennsylvania, West Virginia and
[Kentucky, supplying metallurgical coal for NajionaPs needs. Resources have been further ex¬
panded by acquisition of a substantial interest in
two large mining operations in the Pittsburgh area.
—One.o| the foremost distributors of
Houston, Texas
steel products in
the Southwest, serving a seven-state area. The huge
combination plant and warehouse—a modern Quonset
fabricated by the Stran-Steel Division—pro¬
vides ithbre than five acres of floor space under one roof.
structure
-V"
New Color Film Now Available
"Achievement in Steel"
...
a
new
16-mm color
film telling the dramatic story of steel is now
available to organized groups. To obtain it
for
your group, write "Achievementf National
Steel Corporation,
Pittsburgh, Pennsylvania.
Adds to Sales Staff
i
Wm. E. Pollock &
Co., Inc. have
announced that J. Robert Hall has
become associated with their firm
in the
sales department.
Western Sees. Corp. Opens
SALT
.
CITY,
LAKE
Utah
—
.
Western
gaging
from
Securities
in
securities
a
offices
at
Street. -George
ninal
f\t
thA
Corp.
343
is
en¬
business
South State
Potter 4a a piin-
firm>
22
The Commercial and Financial Chronicle...
(226)
Continued from page
them
6
either
seek
to
off debt or
short-term in¬
pay
satisfactory
Continued
from
page
Thursday, July 15, 1954
3
vestment.
Corporate Money Management
for
becomes
liquidation.
in the past that policy
length
any
Too
often
What
of time
tantamount to partial
tax
effect
will
the
proposed
legislation with regard to eas¬
ing double-taxation on corporate
earnings have on market values?
Now,
through
would
to
during
which
husband
further
the
to be
seem
cash
our
steps to
soundness
adjustment
passing,
the proper time
the
we
are
and
to
1954 Economic Outlook
In Western
take
review critically
of
those
other
Europe
as¬
lost. We cannot afford such un¬
sets
which rapidly convert into ly to be partial, especially in the
has been followed to the point of
case of sterling. Even so, it means
necessary losses, nor can we any
horrible awakening when it sud¬
To what extent can we rely on cash, namely accounts receivable
better afford the mistake of re¬
an important forward move along
denly became evident that the ac¬ future earnings to finance our and inventories.
the
winding
road
to
financial garding most politicians as states¬
This would also seem to be an
cumulated underexpenditures program?
men.
Statesmanship
is a little,
equilibrium.
posed a terrific problem of im¬
Will new equity issue "dilute" appropriate time to consider re¬
art
in
the
United
Europeans have been pleasantly understood
mediate cash outlay in order to
financing
any
long-term
debt
the
holdings of present stock¬
:
\
: •
at the small
damage States.
which we may have outstanding surprised
rehabilitate fixed plant and place
holders?
caused them by the recent busi¬
with a view either to reducing
Though we may rightly criti¬
it on a competitive basis. During
ness decline in the United States.
These are some of the questions
cize the French for their political
the rate of interest or extending
periods of duress and declining
They had underestimated their shortcomings, we have some de¬
facing us and answers to them do the
period of borrowings. Inter¬
profits there is frequently an urge
not come easily.
May I suggest
own independent business vitality.
fects which our Allies find most
est rates now are favorable to the
to follow just that policy. May a
Such underestimation continues in
three considerations which might
distressing.
We need today in
borrower and funds are in good
word of caution be offered, unless
assist in answering our questions:
many
quarters, insufficient em¬ Washington a single, positive
there exist unusual factors in your
supply.
phasis being given to developing voice, with a minimum of press
(1) On the basis of over-all
For the long pull, we must keep
picture which would warrant its
company
forecasting and plan¬ in full focus the dynamic nature home markets. The dangerously conferences, a minimum of lead¬
adoption.
low standard of living in Italy;
ning, develop the probable maxi¬ of our growth economy. Top man¬
ing questions by over-zealous re¬
Ours
is
a
dynamic, growing
for instance, should not be viewed
mum and minimum fund require¬
porters forgetful that foreigners '
agement must, to the best of its
economy, and it is to be expected
by Italian business men as a are watching and listening to all
ments.
■
ability, develop long range fore¬
that the continued growth of our
wholly irremediable condition but we write or say, and elimination
(2) Remember the importance casting as to the place which its
economy will create a continuing
rather should be regarded as an
of those offhand appraisals, views
company may occupy both within
corporate demand for additional of proper timing.
opportunity
to
apply
existing and conjectures that issue so fre¬
(3) Seek the best professional its industry and wtihin the econ¬
funds. The future impact of the
advice
obtainable,
particularly omy. Based upon such forecasts knowledge and methods to elevate quently from our National Capitol.
new
tax legislation as approved
it. But population pressures are
While France has been suffer¬
from your friends in the banking management's
plans and objec¬
by the Senate Committee on Fi¬
now so great in many parts of the
tives
ing from political indecision and
may
be
determined, and
profession.
nance extending the pay-as-youworld that improved standards of
the United
States from violent
Several years ago a company only
upon
such comprehensive
go principle to Corporations will
living cannot keep pace. The only
political quarrels and conflicting
necessitate the cash payment of known to me was faced with the planning and spelling out of ob¬
remedy seems to be to restrict statements of
policy, Western
of obtaining funds to jectives may the money-manager
Federal taxes at 110% for the next problem
population growth, and the neces¬ Germany has
spent the past year
his
its
capital expansion embark successfully upon
five years and the making of pay¬ complete
sary techniques to accomplish that
hoping to become a member of
ments at earlier calendar dates. program, provide additional funds mission.
must be applied if the overpoputhe European
Defense Commu¬
There is no easy formula which lated areas are
Xiooking then toward the future, to carrying larger inventories and
not, in their de¬
nity. Blocked up to now in that
we
should not become lulled by accounts receivable as the result will automatically determine the
spair, to turn to communism. Not
effort, there are disquieting signs
the cash generation which is oc- of increased volume, and to pro¬ money-manager's approach. Each
alone
among
Western European that she is
moving toward a neu¬
curing in many companies, but vide in addition further funds to company's problems and require¬ nations does one think of Italy
tralist position between the West
price ments are quite different and re¬
should instead recognize the need allow for the increase in
in this connection, but certainly
and East.
Should this movement
level. Having spent several months
for still additional funds in plan¬
quire different considerations. But Southern Italy with its poverty
determining
the amount of this all companies do have in
gain enough strength to become
ning our future requirements, and in
and unemployment offers a strik¬
Germany's policy, it would be a
examine the sources from which funds required, it then approached common—the need for forecasting
ing example of an area where severe blow to EDC or to
any
several competent bankers in or¬ and
they might be obtained.
planning bv the top manage¬ there are far too many people
counterpart to it which may be
der to review and check its plans
A study of 202 manufacturing
ment team, and I repeat team, so for the resources available, and
evolved
to
win
France's
alle¬
and conclusions.
that the money-manager may per¬ communism is gaining there.
companies made by the Federal
In conjunction with an invest¬
giance.
France,
in
trouble
in
form his function as an integrated
Reserve developed some statistics
Parenthetically, the world pop¬ North
Africa, preoccupied in the
it then re¬
which may be somewhat surpris¬ ment banking firm
part of the overall management ulation, now estimated at 2.5 bil¬
Far East, and with her new Gov¬
viewed the various possibilities of
ing.
That
study,
covering the
lion is expanding according to a
plan.
ernment pledged to obtain a
raising those funds, and decided
years 1947 through 1952 showed
In the highly competitive pe¬ recent UN study at a rate of 30
cease-fire at almost any price, has
This whole
that of the total sources of funds upon debt financing.
riod in which we now find our¬ million annually. In 30 years it
not strength, time or will-power
obtained
by those corporations, program had been deferred for
selves, management will be put to will be close to four billion, if to cope with her European re¬
€4% was the result of retained several months because of im¬ its severest tests in over two dec¬ present tendencies continue. Over¬
sponsibilities. ,
earnings, 10% came from long- pending tax legislation which had
ades, and to over-simplify
the population and unchecked popula¬
So now, while our opponents
a
vital bearing oh the decision
term loans, 3% from new equity
growth
constitute,
in my
proposition, management today is tion
are
busily exploting their gains,
between debt and equity financ¬
issue, and 2% from an increase
opinion, the greatest problems in
not only responsible for the cur¬
Western Europe is forced into a
in short-term bank loans. In other ing, and when the decision .was
the world today—problems as yet
rent success of a company,
but
policy of political drifting. This
words retained earnings accounted finally reached, the company rec¬
upon its immediate decisions may largely ignored, either because of
situation is dangerous, but pos¬
ior
more
than
four times
the ognized that it had waited until
apathy or religious beliefs.
depend the extent of its future
sibly not unduly so if it does not
amount of new funds provided by the 11th, hour.
Since my ' trip to Europe last
success.
Looking toward the fu¬
last much longer. The great dan¬
However, the investment bank¬
debt and equity financing com¬
year,
economic conditions have
ture, and believing in the contin¬
ger,
of course, is that a weak
ing firm at the company's request
bined.
uing growth and expansion of our improved as a whole. Business is
commenced with a private place¬
Europe may seem to the Russians
Of course there are exceptions.
good, trade is moving quite freely,
economy, we may expect continu¬
a
ment the day before Christmas,
prize obtainable at a moderate
and there is more feeling of sta¬
An oil company with a history of
and
even
though the year-end ing demands from industry for
price.
Europe, however, is not
not too successful wildcatting, was
working
funds. The extent
to bility and more assurance of abil¬ nearly so vulnerable as she was
holidays intervened, had arranged
seeking a new treasurer to suc¬
which these funds should be ob¬ ity to cope with economic prob¬
a few years ago, despite the lack
all details within two weeks. Two
ceed the treasurer who had just
tained- from
earnings,
debt, or lems. The outlook in this respect of a German
army
and despite
days after the contract was signed
is satisfactory.
passed away, and having no likely
equity capital issue can only be
the
French position.
More im¬
the prime rate was increased, and
prospect within the ranks selected
determined
by
analysis of
the
within a week the whole money
The Political Outlook
portant, possibly, are the indica¬
a capable banker. Unfamiliar with
particular requirements of any
tions that Russia is preoccupied
market firmed.
The union of free nations would
the
industry's terminology
and
one
company,
but basic to any
now
in
But that was not all!
Not only
expanding in the Far
lingo he found himself quite at
such
analysis
is
management's be immeasurably stronger if East where the pickings are large
had the investment banking firm
France's
sea one day while visiting a new
politics
were
not
so
plan and objectives. Since plans
and the risks limited.
Further¬
drilling site in Oklahoma. Putting negotiated a rate Vi of 1% lower and objectives are usually con¬ splintered and indecisive. France
would have
satisfied any
on
a
bold front, he decided to than
is like the member of a trapeze more, constant sales of Russian
verted into dollars, the language
other willing
investor, but had
cover his unfamiliarity by asking
team who, in mid-air, cannot de¬ gold in England and on the Con¬
common
to business, the moneytinent
are
believed to indicate
found a market which the com¬
an
cide whether or not to go on with
old, rough, weathered driller
manager actually finds his plan¬
would have had extreme
what they were going through— pany
the act. Fundamentally one of the poor harvests last year and de¬
finding for itself ning the synthesis of the com¬ richest and most prosperous coun¬ pressed industrial circumstances.
meaning, of course, the geological difficulty in
pany's overall planning.
Both
these
noteworthy
condi¬
stratum in which the bit was then without the intimate knowledge
tries in all Europe, her former
by
of the money market which was
status as a world power has been tions have been testified to
drilling. The driller turned to him
and
much diminished, while her geo¬ many emigres coming across the
said,
"Well
I'll tell you, part of the investment banker's
border into free Europe. It is du¬
stock in trade.
mister, I think we've just gone
graphical position makes impera¬
The
results), cheap long-term
tive full cooperation in the joint bious, therefore, that Russia yet
through the third batch of stock¬
,
.
1
te.
Wilson White, Jr. With
money with liberal but fair pro¬
However, in general we may visions, including liberal prepay¬
ment clauses, clearly demonstrate
expect retained earnings to con¬
tinue to be the principal source of the value of seeking sound advice
corporate funds, and the impor¬ and aid.
holders."
of
tance
policy
dividend
in
Hirsch
Hirsch
&
New
York
New
York
Municipal Dept.
Co., 25 Broad Street,
City,
members of the
Stock
Exchange,
an¬
Summary
this
undertakings
associated
with
the
defense of Western Europe. While
time
hurries
us
forward
into
a
perilous future, France stands ununcertainly, one eye peering
toward her ancient enemy, Ger¬
nounce
that Wilson White,
Jr.,
management cannot be has become associated with the many, the other toward her new
Other types of financing such looked upon as a technique sep¬
enemy, Communist China, unde¬
firm in its municipal bond • de¬ cided on
as long-term debt, equity issuance,
arate and apart from other man¬
permitting the former to
sale-leaseback, and installment agement considerations since prac¬ partment.
He will specialize in rearm or the later to dominate
purchase are well known to all of tically all management decisions, secondary markets in tax exempt Indo-China.
At
this
awkward
moment
in
shown previously, either in¬
vs, as are the many sources of as
bonds.
funds.
crease
or
decrease a company's
history, it is doubly unfortunate
Mr. White was formerly munic¬ that in the United States there are
In today's economy and money cash position. These decisions af¬
market there are many questions fect the ebb and flow of cash, and ipal
representative for Alex. too many voices and too little
not easily answered, difficult to a create the need for full and com¬
authority. American political fig¬
Brown & Sons.
connection is self
evident.
Money
large extent because the urgency
of our immediate problems some¬
times
blurs /the
picture of our
plete participation by the moneymanager in
all important deci¬
sions so that he may have a com¬
long-term objectives.
refinance debt at the
prehensive understanding of the
anticipated
cash
requirements
present time if we can better the
well in advance of the occurrence.
PHOENIX, Ariz.
Timing, to him, is most important.
curities Company has
Should
rate
Is
or
extend maturities?
this
tional
we
the time
to
incur addi¬
debt?
Is this the time to consider
equity issuance?.
At
the
-
time,
it would
have not learned that silence
is
General Se¬
golden, and American news¬
papers
have
not
realized
that
supremely important and delicate
international
negotiations
must
not be carried on in public. Our
been formed
opponents
General Securities Co.
Opens
with
—
offices at 1815 West Camel-
alert
to
are
take
well disciplined and
advantage of each
opening we allow them. Any in¬
that inventory liquidation
back Road. James H. Van Buskirk
will provide
judicious statement
these days
many
corporations
may mean a battle or a country
with additional funds, permitting is a principal of the firm.
appear
new
present
ures
regards herself as strong
for the test of global war.
With
the
uneasy
enough
stalemate
along the Iron Curtain likely to
continue, there is a question of
American military policy which
close scrutiny. It
authoritatively stated
that
we
have
supplied NATO
forces with atomic cannon as part
of our arsenal and as a counter¬
balance
against the great
nu¬
merical
superiority of Russian
troops. Other statements indicate
that atomic devices are increas¬
deserves
has
very
been
ingly being produced by us
increasingly integrated into
overall
and
our
strategy.
Though
not
a
completely new
our ability
for
retalitation with atomic
policy,
massive
devices
stressed under our "New
Look" military program. The em¬
is being
phasis,
therefore,
is
apparently
atomic weapons than
more
upon
upon
conventional armaments or
increasing NATO's military
upon
Number 5342... The Commercial and Financial Chronicle
Volume 180
This may place
most dangerous position.
personnel.
a
if
Because
at
bolster
their
the
eyes
of
to
moral
own
position
world and,
the
SANTA
E.
Dore
become
associated
With Paine,
Webber, Jackson
Curtis.
Dore
Mr.
&
be
counted
millions.
of
the
in
These
ent
First National
Promise
(b)
to
use
we
use
in
atomic
use
Evans
&
man,
now
with Clem¬
staff
Company, Inc.,
Bank
of
Johnson, Lane, Space &
Co., Inc., Citizens & Southern Na-*
tional
Building.
Bank
Building.
0 i:
■><
S
i.
*
S
W
.
*
<
'
V,
w.
*
(
<
.
,
.
*
a
'
atomic
no
them first;
case
do
we
to
weapons,
de¬
stroy every English and European
city.
the
In
circumstances
of
event
leading to a declaration along the
foregoing lines, what would
NATO's
position
be?
Terribly
vulnerable, one would think, for
we
would, by first using atomic
automatically
weapons,
condemn
to death millions of our allies liv¬
Europe and England, en¬
bombers surely being able
to penetrate their defenses.
On
the other hand, if we refrain from
ing
in
emy
using such weapons, shall we not
be likely to lose the war in Eu¬
rope—our forces, without atomic
devices,
inadequate to the
being
task?
This is
cal
abstract
no
question.
correct
the
it may depend
to
answer
theoreti¬
or
Upon
fu¬
our
ture and that of all free countries.
The
Look"
"New
deserves
be
to
looked at anew.
political situation in Eu¬
mid-1954, is more and more
bound up with political decisions
in other parts of the world, in
Indo-China,
in
Washington,
in
Geneva, in Moscow. From these
distant points the puppeteers
The
rope,
manipulate the wires and Europe
responds, hopeful one day, down¬
cast and fearful the next.
this
To
lost
now
Leading Products of
the free
observer,
na¬
The competition
12 months have
tions in the past
slightly in the world struggle
underway, but the net set¬
back appears small. As the Com¬
munists are evidently intent on
of the world, notably the
Far East, the balance of power
between Western Europe and the
parts
Curtain
seems
♦KENT
EMBASSY
MURAD
unlikely
the next six
in
much
Cigarettes
HELMAR
east of the Iron
to alter
opposing forces
P. LORILLARD COMPANY
♦OLD GOLD
smart!
was
extending their position in other
In the late 1700's, the
months.
was
smartest
Fed. Land Banks Offer
competition in the tobacco trade
keen. One of P. Lorillard's
we
competitors—one of the
think—hit upon a clever scheme for improv¬
Smoking Tobaccos
BRIGGS
UNION LEADER
FRIENDS
INDIA HOUSE
ing his products.
$123,000,000 of Bonds
The
Federal
12
Macdonald
of tobacco Lorillard
dated
mature
loan
farm
1,
1960.
bear interest at 2xk%
bonds
It
on
Net
are
tobacco products.
Lorillard
ence
proceeds from the sale to¬
gether with cash
on
a
be
come
at."
hand
are
HEADLINE
BETWEEN THE ACTS
sound and sensible stratagem. But
far enough. For, after tobacco is purchased, it
It takes skill at all these
securities.
in
MURIEL
Chewing Tobaccos
BEECH-NUT
'
BAGPIPE
large selling group of recognized
dealers
bright idea,
may
has to be cured, and cared for, and
being distributed
nation-wide basis through a
a
at private sale, the
or
per annum,
offered at 100%% and accrued in¬
They
was a
it didn't go
payable on Feb. 1,1955, and there¬
after semiannually, and are being
terest.
of his agents, "what kind
buys at auction
right complexion of the leaf
1954, and to
The bonds
Aug. 2,
Feb.
one
VAN BIBBER
their
Newcomb,
G.
Federal
idated
be
Cigars
"By observing," he wrote
on
Agent, $123,000,000 consol¬
Fiscal
to
banks
publicly through
14 offered
July
land
to
years
Skill
processed, and sold.
HAVANA BLOSSOM
operations to make the finest
comes
from experience. And P.
Company, founded in 1760, has longer experi¬
than any
other tobacco
company
.
.
.
almost 200
of it.
be used to retire the consolidated
Federal farm loan 2%%
Feb.
bonds of
That's the
1953-55, /which are being
called for payment effective Aug.
1,
of OLD
which are outstand¬
ing in the approximate amount of
$114,000,000, and to provide funds
1, 1954,
and
cigarette
this
primarily for lending operations.
consolidated
The
bonds,
are
several
you can
reassurance
their
that smokers get with every pack
regular and king size. They know it's
trust...
a
a
treat you can trust. And it's
that gives the P. Lorillard Company, and
its stockholders,
being
offered
reassurance
GOLD,
complete confidence in the future of
obligations of the 12 Fed¬
eral
land
Federally
the secured joint and
banks.
The
chartered
banks
products.
are
institutions
and operate under the supervision
of the Farm Credit Administra¬
tion.
F. K.
Justus, Jr. Opens
SMITHVILLE, Mo.—Francis K.
Justus, Jr. is conducting an in¬
vestment business from offices
Main Street.
merly
a
Mr. Justus
was
on
for¬
partner in Justus-Bell Co.
AMERICA'S OLDEST TOBACCO MERCHANTS
Y-S'¥/.:ys&, Y/<
.
ESTABLISHED 1760
f
ATLANTA, Ga.—D. W. HindsJr., has been added to the
Charles E.
(
Threaten,
(c)
first
A.
—
Johnson, Lane )
are:
Claim, no matter how fic¬
titiously,
that
we
caused
and
devices unless
With
23
(Special to The Financial Chronicle)
hundreds
steps
(a)
started the war;
Ga.
Steadman, Jr., is
Co. and A. M. Kidder & Co.
particularly, in the eyes of those
local manager for Morgan & Co.
people who at the outset will not
be directly
involved, and they
Will
ATLANTA,
Avenue.
Mr. Ebert was previ¬
ously with Francis I. du Pont &
formerly
was
Clement Evans Adds
(Special to The Financial Chronicle)
MIAMI, Fla.—Charles F. Ebert,
Jr. has joined the staff of Goodbody & Co., 14 Northeast First
Calif.—Collis
MARIA,
has
Goodbody Staff
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
take
steps
Joins
Dore With Paine, Webber
com¬
can
three
once
in
war
opponents
simple
our
mences,
major
a
us in
Why?
(227)
*Regular and King Size
24
The Commercial and Financial Chronicle... Thursday,
(228)
know the truth since it would de-
stroy their faith in their govern-
Only
Ill M
I lie
W"|l ||3V6 |l
by
parrot-like
be
the dollar.
chatter that "the only people who
They had this in Ger-
Tliev had it in France
Wp
in
the
end and continuous devaluation of
manv
taken
of affairs which we have been led
llflllOIl
w
sold
the
would be
would benefit
miners." This is, of course, a comend results in those countries be- plete distortion of the facts. It has
cause of our wealth and our capano bearing on the question at iscity to produce. But consider also sue anyway. Don't be fooled by
that we are travelling at a fan- the superficial reasoning that Rustastic
pace
with absolutely no sia would be a chief beneficiary,
consider ourselves above the
may
check
on
gance
such
would
provide, and did provide in
extrava-
government
is
free gold market
a
other countries, and consider that
whole new
has been
generation
a
without any understanding of the protecting function of gold.
|
brought
up
Unpopularity of Demand for
Return to Sound Money
There
mJnd
for
thiols
wMch
the
even
every
vital
exnected
in
Nor has there been
X
for
oPf
is deserving
his honest and
sentation
nresent
Trust
enlightened
fearless
government
with vision
one
our
leadedto
save
dTs-
ciation of the currency.
is
^
gm*
The dan-
wSl
nationwill
nation
anxious to prevent deflathat
so
that
tion
depre-
through
situation
astrous
be
pre-
of
nation from an eventual
our
-
Co
it will take an
So
course
Law-
real tribute
a
th^dangers
of
shin and
stage
Empire
the
of
rence
Joseoh
as
we
a
will continue
we
along
present inflationary policies which
are
lead
to
sure
to
eventual
re-
pudiation and fantastic prices for
gold. Deflation is, after all, the
lesser of the two evils because, no
hurts at the time,
matter how it
it is
tablishes
in
years
there is
been
practiced for
foreign countries,
'
real recovery.
q
o
Now;
house in order, if
our
as a
nation to live
must
we
foundation
to
our
must return to
This
their
natural
trols.
But
We
it
There
can
means
be
levels.
price
more
than
no permanence
of these accomplishments
build on the quicksands of
we
dollar whose value is to be gov-
Xtd rbeto°nU to'LoW eT^C BiWe
fays! "Kfow the® truth and th
truth
shall
make
where is this
more
free." Noapplicable than
you
which has been exacted from the
American
people.
authority
and» judging from the great Rue expect from an organization which,
an£.cfy which S®es up every time after the dislocations of a great
a higher price for gold is men- war, would attempt to hold the
d' 1 1S
m*;ended that he currencies of the world at fixed
shall learn the simple law of levels to each other irrespective
iuoney, that gold is the .only de- of internal, finances and export
Until those in
Washington open a
there will be no
that they desire or in-
assurance
stop current inflationary
pollcles-
pOTi'Knox'and the'American
citi-
eauih^'hufalwavTwith'ou^nanev
this would be only a repetition of as the basis. The International
the arbitrary devaluation of the Monetary Fund which was set in
1933 t0 1933 Pe™d- But a free motion supposedly in an attempt
goId market would help the Eng- to help nations with unfavorable
lish nations to settle 'heir own trade balances to bridge the "doltrade balances and thus stand on lar gap" has been about as successtheir
£<*4- Can any fair- ful in this goal as have our au-
minded Person contend that such
aid in solving England's problem
wouldn't be more practical and
more
have mpre lasting effect than our
f^e,ely;A^ad®l
and
agremente
t
bt-
agreements
ag^?merits3, ana aigreements oe
jween
W1J*J a™ciaJ
™rrency valuations^ m spite of
an^ilnt
ancIent
tvne
of
banking institutions Which seems
i
2
h»nH
\unririnff
Lb?X/nat^af
with
hanH
in
Monetarv
Fund
of Ail Citizens and Not Just
the Gold Miner
The issue of
uaw-■
»/vvv.
-■
•»..
gold
reserves.
This
government. It serves as a check,
therefore, on the unwisdom of
the majority who busy themselves
with their own immediate mterests with little thought or re-
gard for the future of the nation,
P.rmated without official recogm-
a happy and secure place
in which
of
t0 live' The iree
gM and a redeemahie currency
are the very basis and foundation
Q gove/nment such 'as toas de_
vised by our forefathers to make
sure that the government was controlled
the benefit and protection °f the
and that the
a°"ernment did not enslave the
Their
People Jot its own, benefit.
miserable experiences in the old
hp orincinal eain^ from tocratic rule> caused them to labor
*»Io"g a"d hard to guard against
3 „'gv5 J"?.- hi h , the abuses which are bound to
g™at°aveof come in if a government is either
^?/and
tup na^OTi nf%he too autocratic or too democratic.
X/d would be left in the
In this they were exceedingly lar™?a}fv7nos?tion that t.hev
to
sighted, in that they realized a
' J° ^ ^IJooots majority rule, which stage we apday' JL ' %oine to continue to Pear to have reached today, can
.n
same
a
t^.Aiu
dollar is being continuously de- you believe that dollar reserves
take the place of gold as did
can
tcnds t0 bring gold out 'of hoard-
-nVat " ountry
„g
and it
°s
in
prove
P^ove as disastrous to the liberties
<*
°.£ a P
Pe?Ple as a? autocratic rule,
^
ucwuw
swayed at the whims of the uncf,r„n„imic
Thou
nrnttoH
thnm.
scrupulous. They proved themselves to be real statesmen in
bringing forth as near to an ideal
system of government as was ever
devised—one of checks and bal-
tion. Yes, England would benefit, Sterling in years gone by Eng"ry couXefwhere holrdbut wbat ls o£ more impor- land got_ along with small gold ing is greatest that gold is in short
tance, the poor forgotten Ameri- reserves because of confidence in
j
{
monetary purposes
«» "tizen would be the greatest the pound built up over many JW?
p
"
ances.
The three departments: the Executive, Judicial and Legislative,
,
.
wprp
prpafpr,
a<.
cPnaratP
Hpnart-
mlntsTgove?nm™nd
H was
intended that one was to encroach u
the functjons of the
other The chief Executive's tenneVer
add here that the lssue of a free policies have created a dollar conforming to the designs of its
f nffiPP wa„ 1™+^ tn two
gold market is far and away shortage. It is true because there chief sponsors, hafe^inally been four_vear terms kv resnected tra-
broader than the vested interests is not the confidence in our dol- maneuvered into the uncomforsome misguided financial lar, and never will be as long as table position of admitting a very
were
who see a continued bene- it is not tied to gold internally as real truth namely that the
fl4 t0 the?s^ ve? ln maintaining well as externally.
troubles of the world are due
Presldent. Because of life appointment and because n0 one
^Tilo" tingToVr asTe
vJlnP
Allow^nf*' fhp AmVr ln'
narpnf
p
ap-,
nf
pitiypn
frppl^ nrpBminarv
[n frPt
I rnnv^HihlP
to bnv ?old
w
a
im
tn
Ld wmili
?P/Xfn„ iAfhod ^A"|d
sionerq ta witutfons and
«ovprnmPnt
™
PJ°
to
the
d;ffl>uitv
his
tLo
Kni
some
Largely
war.
because
luVh
dmnnc
fhe
wha+
fwav
f
paC®
e
hp
nniinii?
bv
the
naUonTto
wi°th n thefJ Xn°s President, w"uld make many ap"
inWcHnf pnmL S pointments during an eight-year
crinpv fnpnhpt^?^ ^ Npw term' the JudSes were insulated
a2Lnh! S ifin
from outside influence either on
55? p
^ cnpn^lnt i?
the Part of the Executive or the
electorate.
the
5ppc
The Senators of the
Chmxf +Vif+ tHP +r,ith will Upper House of the Legislature
production of gold all over the f.oesTTto s ow t ft ^ truth will were ch0sen in caucus which
world bY its gold price-fixing pol- ^paH^ £?TvoS*»n° ma
served as a check upon unwise
United States has discouraged the
gone increasingly into the hands
of hoarders.
These money-wise
+n
?+• J
w^y £
i
^
rt
legislation of the Lower House
lnnt lhHnf which was chosen by popular vote,
th^s precarious path of not living 0ne after another of these
^
hath'
ni
pp!?pjpq' a^^nf^fntprnallv^ rnn" two"term tradition and was therefrPvHhfp ?nfn «ni'd for thi nrntpp" by able to pack the Supreme Court
pLitti LS
fnfiirttno
insurance
Is ft
a^' t?at
els, levels in which there is no
confidence.
Nations are guided
more ^
necessity of protect-
Roosevelt's time, has proved subservient to the unwisdom of the
majority and/or the influence of
an Executive' and turned over its
heen
dpnrpri^ttnn
not betW
.
to
tbat. a capita J^y
®
a a
'
s^igg bomfs
g
of
J
,
the'
°th ""aj efd
,
'
illnsinri
nf
the
,
thp lihnlp
}paoln J Sp wiSSd
f
«
'niit
ihl
nf
leading th(r }Y?rld out+ of the
w.lldern^s ™ tbls respect, we aie
dlsreSardipS the;i lessons of his-
taf reserves than'thj desfrabflity £ofry,£a{Ions whflre'alreadv
fotrade.enlhfre
facilitating r The dollar, ^£ t f
»
of course, is blocked at an artifi-
run
iFcreasing tax against the little is bl°cked nevertheless and it
?ello™gif eve'nnl^aflng f£a aa a r°ad b^k £a
such
hard time to make ends ^rade except as we give it away,
,rm
a
free gold
Now, with
a
free market in gold
and the higher price which would
naturally result,
tion
of
gold
a
normal produc-
would
be
resumed
ual groups or any
indiyidual
tries which might
o£ the Executive, and the whims
ThXwd hX
an
vou
«' t^^tlli^uSe
SUppiy 0f
to maintain
money
of constant purchasing
The increasing extravagances of the past 20 years, and
our present predicament, are an
dollar
a
Congress, with both houses elected
by P°Pular vote since Theodore
Inf,na 1
law-making prerogatives to vari1«t?S}" ous bureaus- 14 has yielded its
Dublic ut" P°wer to declare war to the whims
"nd
the grave^ risk cial
level for a less admirable ouslf Lvoidld in'the
inereaf-nfeanitel®wf, 2 reason as explained above, but it ?2lLe7 of lofr of
t
hfe
induced scarcity. So what do we
have? We have world trade st1"
fled at every turn because currencies are held at artificial lev-
alreadv
has
thrmMi
dollar
f
^
monthlv
for
Pe«Ple.
that »s ultima£e dtXs thT c XX u af loslis ^mowd""! SSStPrrtteitto!
J"°faI
Ifrd^TfufallXd wif be^greaX increased" byXs through depreciation of their cur- rule"vebdy 4^edaete^ Pfi sbroke tha|
,
f
the
annoiPnted
pro£ess to be 60 worried
to'reflect
f
The world is hobbling along to"
day doing its best to carry on
three times as much trade as before the war with monetary stocks
only one-third higher than before
icy, what has been produced has
mfl
market, meet because of the declining pureven
though it means a higher chasing power of the only dollar
gold price, transcends in impor- he is permitted to have according
tance the interests of any individ- to law?
a
maintain
country and over here, under au-
thorities in this country in fightare
ing inflation and for the same
0
basic reason, namely that there is
no disposition to get at the root fXJ XL8Tsal^; J", i
with
present give-away program? And, of the problem which, of course, in th°ebbhtnadSsaSofa bloXcT^rpl1!
In
^MN
remember, this give-away pro both instances is the free f"nc- currencies Any action which reg*m is only possible because our tioning of gold Some would have ^urreric^esn ^ny JWcnu„ency
dollar
beine continuouslv devon
hplievo that dollar rosprvps
cuxuiueiiu-c 111_.a tuiicuty
of
A Free Gold Market for the Good
to
.
Nations, which with their large up With the restrictive trade prac- ^
toan
gold Production would, of course, tices, the blocked currencies, the arf bt£Ia *** than
be helped' Certainly, the price of inability to convert one currency me£b°dsa°fXar siehted
gold. should not be raised arbi: into another- Numerous remedies J**"?'-
at
to
the truth about the status of cur-
plctely insulated from uold for the apparently were not interested in It serves as 3 check on the ex—
last-20 years that he is gullible, the truth. And what could you travagances of an unscrupulous
tJ1
free gold market
tend
stand-
ating the chaos and disillusion- Free Gold MarVetW'U Stimulate
ment certain to undermine the
World Trade
capitalistic system
The issue is
We hear many lengthy discusfar broader even than lts benefit sions on the reasons for the world's
to the English Commonwealth of economic ills. They always end
in money matters.
Allowing gold
to function is revealing the truth
of
the
awesome
capital
levy
in the mar-
brought out when other argu- Pendable standard, except through balances?
If this organization xhe Gold standard is Necessary
ments fail. Russia's one big op- hitter experience and until^ it is had set out to hinder trade it
For the Survival of Our
portunity lies in our present paper *°o late. Yes, it appears that gold could hardly .have done a better
System of Government
*
dollar with no tie to gold becauseZrSX*
We have come a long way in
it permits dissipation of our wealth cu rencies are going down in tically appraised m terms of gold destroying
form of governand is the one sure means of ere- yalue*
?"d,JgorJa !®
ment which made this country
It
con-
any
if
a
solid
honesty in finance.
the removal of
to
inour
a
structure.
means
this.
we
Within
build
allowing interest rates
means
seek
to
a
pff w of
if'we intend to
economy.
means,
be
etary Fund," conceived as it was
under rather questionable circumstances and with a-record of accomplishments quite . evidently
fnJ haxri fUS^pH
r&t ?n pvnpndf
fend
tie to gold can
aubsta"ca taken a^ay fr0m ,him dollar can be in like manner conby such devious and unscrupulous sidered a satisfactory liquid remethods
serve for other nations ; This is
yIblsl°f because our restrictive trade
it might be m order to true
for
Wocitinrt
put
no
inflatfonaiY policies
some
no
with
But even the International Mon-
rava?p<?
es-
mediately displayed
ard of value. The average citizen rencies But those who directed is a weapon in the hands of an
has been so successfully and com- the International Monetary Fund intelligent minority of the people,
he realize that he is having his to learn from England before our
have
as
ernment by demanding gold, the
weakness of those policies is im-
re-
thp
persistence ta
such
was
its
inception, in that it did not recog-
nf lone*
basis
sound
a
From
rnvprv
failure from
to
the financial practices of the gov-
very
International Monetary Fund
doomed
beneficiary of all. Certainly it is generations of sound finance and
of his own choice, nor does free trade. We still have much
natural corrective and
a
always
American-inspired
is
_ii_i
.
x
is
bugaboo
Russian
The
ditions.
into believe that a paper dollar common importance oftothis great travagance must government stop
by those wbo would bave nize the denominator establish ket place, and come to a exyou
^ Knox and the American citi
equities but always with our paper
sincizen has n0 cal1 on «' Obviously dollar and the loan of our gold
banking
circles
of
im-
guidance where it
any
hp
death
an
There is
one
should
the
but
with
case
such
of
is
sound
to
unfortunate
often
so
nortanceto
not
is
de-
nonular
no
return
a
This
monev
issue
be
will
This
This is the deplorable state
ment.
Free Market tor Gold
a
voice their disapproval of
people would be better off not to versal confidence under all con- can
Continued from page 7
July 15, 1954
power.
of ^i1135368'whichuCan be easily
Swaye'
th0se wb°
^ W1^ be exceedingly difficult
reverse the above trends in
government, but gold can be
restored to its proper function
a7ld still check our descent into
maelstrom of financial bankruptcy. It is to be hoped that those
authority at Washington will
—
!•
have the vision to recognize this
* .Th? evils of s»ch.a system are most while an orderly free market for
oifes^xist^A^ase in point ^IsThe'SraziN gold can be inaugurated, rather
counOne individual who has been and gold would gradually come illuminating monument to this
incidentally be prominently before the public eye out of hiding to find its way into theory of money management.
directly helped by it. It is for the
good of all citizens, and our leadership on this issue can even lead
to
betterment for
other
the peoples
of
nations, by restoring order
out of present chaotic world
cur-
rency conditions. Don't let yourself
as
a
came
currency
authority, recently
out with
the astounding ad-
monetary channels where it is so
sorely needed for currency re-
mission that he has concluded that
serves.
it would not be wise to return to
mon
gold
coinage
disclose
the
because
it
dishonesty
would
of
our
present dollar valuation, that the
Gold,
as
denominator
cies, is the
eign trade.
very
the great
of
all
com-
curren-
life-blood of for-
It is the only medium
of exchange in which there is uni-
If
a
few
money-wise
citizens in
,
>an
coffee monopoly where
we pay at
?.ffici^ exc£ang*>. raJc of sVZ\ fort
oniy"2c.° W e"
*
mar c
the
than to postpone action until it is
*orced uPon themThe new era "modern money"
Number 5342...The
yolume 180
experts
ar¬ do know and respect this power
prices, conferred by nature.
They are
are
forerunners of a return to just waiting for the
opportunity
complete government price control to make use of it.
to paralyze our whole economy.
In gold there is enormous
pulled down the curtain on Gresham's
Law by cleverly
burying
gold, but this age-old law is just
waiting to operate here, as else¬
where. Bad money still tends to
tificial
out of circula¬
tion, one way or another. An initial
higher price for gold upon open¬
ing a free gold market would nat¬
have endowed
drive good money
urally be in accordance with this
law, because people would be dis¬
posing of bad money for good
money until reassured that paper
money would be made good. How¬
ever, if we choose to ignore na¬
ture's laws, if we choose to con¬
tinue
along our present course
and deprive the American people
the
of
(229)
they 'have own-level, and the return to
think
may
Commercial and Financial Chronicle
bond
government
power
Circumstance
and
our
natural
law
nation with
a
for good.
Like the sins of
dividual, the sins
of
a
an
in¬
nation and
gold stock which is the envy of the problems inherited as an after¬
the entire world.
If we are not math of those sins, will be most
adept enough to realize that the readily dissolved by the simple
efficient use of gold will rejuve¬ moral approach. There can be no
nate
are
our
whole
those outside
economy,
our
there
country who
substitute for honesty.
be
no
confidence
in
There
the
can
future
until
we
return to
honesty in gov¬
g°
^
ernment.
A free market
fQI~gold
in this-country will compel
government to be honest with its
people,
eventual
who
are
and
will
enslavement
unprincipled.
cha¬
otic currency situation, both here
and abroad.
It will remove the
single
obstacle
to
a
healthy and sound foreign trade
the
world
over,
and,
long way. toward preventing!
therefore,
deflationary spiral.
NOTE:
second
of
Foregoing
two
articles
.With
.
Gillespie & Wouter*
(Special to The Financial Chronicle)
GREEN BAY, Wis.—Gerald Jo¬
hn has been added to the staff of
Gillespie
Building.
&
Wouters,
bid for the gold
right to
which is rightfully theirs, as sure
night follows day, foreign na¬
as
will finally force the issue
drawing down our gold in
preference to our dollars.
tions
by
This would appear to be under¬
..
already.
way
whether
maintained
have
in
gold
doubtful
is
It
could
government
our
$35 price for
a
had it not
recent years
-been for the dire situation abroad,
the
weakness of ioreign,curren¬
cies, the demand for dollars, and
the
inability of foreigners to es¬
tablish
favorable
trade
balances
Cities Service
O
4
,
..
But the situation abroad
us.
is
changing. Foreigners are be¬
ginning to undersell us. If the
present trend continues, it will
not
be long before our imports
will
exceed our exports except
for our gifts abroad. It takes time
for these trends to develop, but
the
f
**
«
with
handwriting is
gives
a
big boost
the wall.
on
Our Dwindling Gold
Foreign credit balances in this
or money we owe to for¬
eigners, have increased from $5
billion to $9 billion during the
country,
four
last
remember,
And
years.
whereas the American citizen has
rights
no
hoarded
eigner
the
to
at
Fort
gold which is
Knox, the for¬
convert his dollars into
can
this gold at any time.
done to the extent of
This he has
over $1 bil¬
lion during the last year.
The
Fort Knox gold now stands at ap¬
proximately $22 billion or down
WwiWm
fmmmm
\
l#JltlSl
ilH
about %2lk billion from four years
deducting the $9
However,
ago.
billion foreign credit balances we
the net stands at only $13
now as
against over $19
billion four years ago. It should
also be kept in mind that foreign
holdings of stocks and bonds and
owe,
)«<WJi>ftlW>iJWW«W»wwww<raw8
billion
other
be
in
assets
sold
this
country
into
converted
and
which
liability
can
gold,
may prove
tional
and at an
.»"i\
v*r
to be an addi¬
of these days,
inopportune time. How
one
much lower can our net gold stock
before
go
must
How much lower
dollars?
it
we realize the
encouraging gold pro¬
before
go
urgency of
duction by
creating
The
we
stop flooding the world with
paper
can
realized that
it is
raising
the
price,
fyyy/}
or
free market for gold?
of our nation is in
a
welfare
jeopardy!
There
,+to»
'-/-A
,
some
are
natural
laws,
such
as the law of gravity, which
obey instinctively and without
question in order to survive. There
we
others which do not limit
are
activities
so
our
obviously, but which,
in the end, we must respect if we
are to survive.
This is true of the
law
true
of supply and
of moral law;
demand; it is
and, inciden¬
more intimately
tally, the two
are
connected than we are accustomed
think.
to
Organized
society
can
carry on and disregard these laws
for a time with seeming immu¬
nity, then creeping paralysis sets
in, and finally complete confu¬
sion.
So
conform if it is to survive.
A
first
A
free
market
essential
return
the
to
of
the
for
a
gold
or
is
the
gold standard is
The
price
the cost of living will
never
be stabilized as long
as
there is doubt and confusion about
the value of the dollar
of
measure.
treat from
a
through pipe lines by the 220,000 horsepower in our booster stations.
free economy.
essential.
second
structure
Every minute, day in day out, 1,200,000 cubic feet of natural gas are pushed
nation must in the end
a
as
a
unit
The recent hasty re¬
feeble attempt to al¬
io^ interest rates to seek, their
CITIES
@ SERVICE
A Growth
fe
bjr
Mr. Taylor. The first appeared!
in nur issue of March 25 on Pv 6.
by those
It will re¬
store order out of the present
greatest
the
their
prevent
a
S uisastrous
the EDITOR'S
Company
Northern
?6
The Commercial and Financial Chronicle...
(230)
under
News About Banks
E. JOHNSON
Insurance Stocks
in
results
considerable variation
be
reported by the different companies depending
be
to
will
there
are
the experience for the
period. In general, however, the major companies writing a broad
the
upon
type
written
business
of
and
classification of risks should be able to show some improvement in
underwriting.
The
it appears at present is that the amount
way
will depend, to a large extent, upon the im¬
of the improvement
tional
held
storms
loss
damages approximating $200 million. The average
tornadoes for the past 40 years has been only
with
annual
from
As most of these storms occurred in
something" like $16 million.
the first half of last year the
underwriting experience from ex¬
tended coverage in the first half of 1953
However, just
ferent
unfavorable.
very
the storms varied in the way they damaged dif¬
as
the
areas,
was
impact
companies
the individual
on
uniform.
!
1
not
was
i
f
!
•
Thus, the extent to which losses were sustained in the first
half of last year from storms,
in
there should be
corresponding gain
a
underwriting in the period just ended.
the
In
other
principal lines there
divergent trends evident in the business through
fire margins
have been squeezed
Straight
1953.
little by further rate reduc¬
a
Also fire losses have continued
tions in scattered states.
the
be
rise.
to
Here, however, there seems to be some room for optimism.
Fire losses in the United States
as
estimated by the National Board
of Fire Underwriters for the first time in several years
in May
decline
June figures have not been published
year.
it is too early to say
barring
some
showed
a
the corresponding period of the previous
from
losses are starting to decline.
Nevertheless,
major fire, losses may show a more favorable trend
gains
far this year
so
Admittedly it has
improvement.
earlier
there has been fur¬
not
been
large
so
in
as
periods and the trend of improvement shows signs of level¬
Just the same, this phase of the
announced July 13 by Horace
C.
Flannigan, President. Mr. Mcterritory embraces the
Eastern
portion of the State of
business should show
whole then, we would expect
a
as
a
gener¬
ally favorable six months' underwriting report.
Investment earnings are
payments have been
favorable
interest
Mr. McKernan
well
which
rates
maintained
prevailed
of
This
combined with the larger volume
has
better
been
and
last
though
even
of
because
year,
the
Divi¬
the
average
declining recently.
invested funds should
of
131,366
709,544
1,129,311
431,370
481,175
324,152
lob,890
from
due
banks
U. S. Govt,
security
holdings
Undivided
of
He
the
the
profits—
of
author
A. Nash, President of
Isiand Trust Company,
Long
Garden
City,
nounced
on
the
and
have
the
book
New
Federal
Reserve
Board
office
additional
mile
at
City, about
Garden
east
Clinton
of
Stewart
839
office wil open for
This
Road.
business early
Westchester
The
New
announces
will
ditions."
B^nk
The
appointment of Edward C.
and
John
A.
Waage as
Vice-Presidents in the foreign de¬
also announced on
July 15.
charge
supervises the for¬
eign exchange operations of the
bank and in recent years has been
liaison
officer
the
for
Africa
South
He
in July,
Zealand.
New
and
Manufacturers Trust
to
came
1936, and
appointed
was
in
Vice-President
Assistant
as
Mr.
in
the
is Territorial Super¬
European division
in the bank's op¬
with
connection
in
in¬
ternational financing programs of
various government
He
in
agencies.
trust company
April, 1936, and was appointed an
Assistant Vice-President in July,
joined
the
Trust
sjc
The
Company
Uiica,
of
tal stock from
000
by
New
$800,0J)0 to $1,000,-
stock
a
divi<j£nd effective
June 30.
Richard
changed
Jim
the
%
The
if
of
common
National
trict
of
from
$1,000,000 to $1,500,000 by
Columbia,
stock dividend
likely to be high.
are
underwriting will result in
The expected gain in
larger liability and the increase in
a
investment earnings will also require a larger provision.
This may absorb
final
portion of the improved results but the
a
operating figures
expected to compare favorably with
are
stantial
likely to be shown in
are
statements.
i
1953, the stock market has had
30,
companies.
grade
stocks of the
Also, over the past
decline in interest rates and
a
sub¬
very
held
type
year
by
fire
and
there has been
a
casualty
very
rapid
corresponding rise in bond prices.
a
rially to the asset and liquidating values of the respective
com¬
panies.
if
Bank
capital stock of $500,000
The
of
Citizens
Alexandria,
with
Conn.,
Ostrorr
on
Mr. Rapport is expected
his new post in Sep¬
make
those
the
companies
others holding only few equities or
make
an
impressive showing.
share basis
For
will reach
these
reasons,
with
greatest gains
new
the
large
in
joining the Bank, Mr.
associated
was
York
an
as
common
this respect,
but
primarily bonds should
Undoubtedly book values
on
the
was
a
per
insurance companies should command
semi-annual
than
more
report
usual
of
Credit
Brunie
Mr.
also
Bankers
to
the
Government
in
Kenya Colony and Uganda
Head
Office:
26,
Bishopsgate,
London, E. C. 2.
Request
Laird, Bissell & Meeds
Members New York Stock Exchange
Members American Stock
Exchange
120 BROADWAY, NEW YORK
5, N. Y.
Telephone: BArclay 7-3500
Bell Teletype—NY 1-1248-49
(L. A.
Glbbs, Manager Trading Dept.)
Specialists in Bank Stocks
announced
izens
National
Orvis
Vice-President
to
West
End
(London) Branch:
13, St. James's Square, S. W. 1.
Branches
in
India, Pakistan, Ceylon,
Burma, Aden, Kenya, Tanganyika,
Uganda, Zanzibar, and Somaliland
25
will
Bank
$50,000
have
and
will
and
Paid-up
Reserve
Capital
Capital
Fund
.
banking
Bank's
Downtown
*
*
also
Total
CONDITION
OF
OF
COMlWi?
of
120
the
Broadway,
close
of
published
York
New
business
in
with
the
Superintendent of
to
the
provisions
the
State
of
with
8,738,917
.
other
institutions,
cash
in¬
reserve
balances,
items in process
,
collection-;
of
United
$709,543.71
States
Government
direct
and
431,369.80
60,000.00
guaranteed
stocks
and
23,771,823
20,907,195
Other
profits—
.-r"T9l?2,860
Y„ at
1954,
made
York.
New
balances
banking
30,
call
a
Banks pursuant
Banking Law of
the
of
N.
5,
June
on
accordance
by
Furniture
761,514
4
Rock
New
tive
June
Bank,
Company
30
Trust
Bergen County,
Hackensackl
N6w
Jersey.
branch
was
former
location|;6f Glen
established
Kr
*
in
527,259.27
Rock
$2,131,691.28
LIABILITIES
Demand
deposits
viduals,
of
'
indi-
■
%
and
partnerships,
corporations
$118,364.26
:
TOT^L
A
the
403,478.50
f
_
^SSETS
Rock,
Glen
by/peoples
of
fixtures
assets
TOTAL
*
waf absorbed effec¬
Jersey,
DEPOSITS
Other
$118,364.26
liabilities
864,134.68
TOTAL LIABILITIES
/
including
(not
subordinated
y
obligations shown below)
rv
fidelity-philad|£phia trust co.,
philadelphia, pa.
futie 00/54 Dec. 31/53
Total
I?*/ $
^
345,228,645 275,895,359
339,9717,741 244,026,548
resources—
Deposits
Cash
and due
banks
*
state bank
of
new
and
trust
york
$982,498.94
.
ACCOUNTS
CAPITAL
Cash
and
due
security
y -
Undivided
|0;973,534
64,999,833
60,410,797
from
provident
of
324,152.34
CAPITAL
AC¬
COUNTS
67,346,560
TOTAL
$1,149,152.34
LIABILITIES AND
Trust
ACCOUNTS—
CAPITAL
tThis
institution's
stock
common
Directors
$500,000.00
325,000.00
profits
i
141,320,714 118,912.583
>5;737,516
5,206,414
discounts
Undivided profits—
1
Capital f
Surplus fund
TOTAL
1
5^,398,285
—
&
y
$67,832,184
65,946,732
§
from
holdings
Loans
Dec. 31/53
$73,558,039
resources
Deposits
with
$2,131,651.28
capital
total
consists
of
value
of
par
$500,000.00.
'
banks
14,345,626
U. S. Govt,
&
Surplus
16,326,594
discounts
and
vided
14,310,506
security
holdings
Loans
13,853,277
41,321,908
38,945,029
Company
profits
Cunningtfam; joined
1,213,187
company
in 1953f
*
new
trust
resources
and due
banks
U. S. Govt,
&i
31/53
$42,613,164 $42,723,398
39,145,861
39,273,538
from
wfti=s«-y9,'756,110
10,066,238
security
holdings
Loans
Dec.
discounts
Undivided profits
Middleburg,
stock
13,371,989
1,236,894
1,169,533
15,748,796
Pa. j/ with
$100,00(|
of
National Bank
Beaver
mon
15,288,802
15,248,623
Na|ioiial
First
The
york
as
stock of
to
pledged
Securities
are
and
Bank
of
common
The First
$Pa.,- with
com¬
$25^000 consolidated
close
of
business
June
30. The consolida»eft~was effected
assigned
or
liabilities
secure
and
,
for other purposes
after
I,
as
$105,369.80
shown
deduction
of—
above
of
re¬
52.08
—
CHARLES J.
SKINNER,
Treasurer
of
tfte above-named institution, hereby certify
the above statement is true to the
that
best
of
my
knowledge and
CHARLES
ofpeaver Springs,
Springs,
of the
Assets
serves
:Kh.
company,
June 30/1954
Deposits
the
1
MEMORANDA
Pa.,
appointed Donald M. Cun¬
ningham a Trust; Officer.
Mr.
1,240,964
Philadelphia,
of
have
undi¬
underwriters
Cash
undertaken
the
Office.
June 30/54
Total
exchange business.
Trusteeships and Executorships
Stebbins
the
succeed
of
$75,000
pPHl'ORATION TRUST/
28,572,506
U. S. Govt,
£3,104,687
and
of
THE
18,411,914
He will continue to be attached
£4,562,500
£2,851,562
The Bank conducts every description of
Na¬
capital
a
surplus
a
REPORT
discounts
Glen
charter
a
tional Bank of Creston, Ohio. The
Corporate
holdings
&
Comptroller
Stebbins
the
to
obligations,
.1
9,236,554
Undivided
if
the
of
,
Assistant Vice-President.
Protectorate.
Authorized
65,623,802
67,376,495
security
Loans
under
Alexan¬
of
Currency issued
June
on
if
Office
cluding
from
Bank.
from
Bank
if
The
and
Government
S.
30
First National
have capital of $1,000,000 and sur¬
'54 June 30, '53
$72,966,135 $70,853,567
Deposits
U.
Va„
$400,000
plus of $2,000,000.
jersey
resources
on
July 13 the promotion of Walter
company
on
Condi¬
tions.
commercial
Available
Business
and
the
of
ASSETS
trenton
June 30,
in the money and
markets and for seven
years he was author
of the
Monthly Review of the Money
Market appearing in the Federal
Reserve Banks' Monthly Review
interest.
NATIONAL BANK
of INDIA. LIMITED
new
and due
Bank
Bank and the title "First and Cit¬
Cash,
Total
of
of June
as
charter
-*
*
company,
His field
to the Banking Department at
forthcoming
17 N.Y. City
Bank Stocks
the
New
of
economist.
of research
E.
also
peaks.
Otti*j June 30 Quarterly Analysis
with
Bank
Reserve
of
*
trust
banks
to
stock
common
consolidated
the
National
Alexandria,
Com¬
Trust
and,
President, announced
trenton
a
30.
if
The
First
National
Bank
of
Alexandria, Alexandria, Va., with
Hartfora
the
of
assume
Cno£i
Miller
stock
Supposedly
Port¬
capital
These factors plus the retained earnings will add
very mate¬
holdings will
Investment
Bank's
Federal
rise, approximately 30%. Most of this has occurred in the
investment
the
of
Prior
More spectacular gains, however,
Since June
pointment of Stanley L. Miller to
Assistant Vice-President in charge
folio.
those of the first half of 1953.
the financial
C. Brunie, President of
Trust
Company,
New
York, announced July 14 the ap¬
Henry
Empire
increased
was
effective June
*
tember.
Taxes, of course,
to
if
former S ate
and
Hartford,
pany,
been
Chunk
capital stock of
Metropolitan Bank
Washington, Washington, Dis¬
The
Commissioner,1:will become
Eiders,
has
Mauch
Thorpe, Pa.
Executive
Rapport,
Vice-President
National
to
*
Association
ers
has
location
bank
from
Manager of the Connecticut Bank¬
Bank
and
be effective July
1,
designation of the lo¬
of
of the
%
York, increased its ebmmon capi¬
to
*
*
*
will
1954.
Bank
Westchester
Oneida National Bank and
The
July 8.
1952.
help total investment income.
name
Company at'31 Mamaroif
title
"The Jini Thorpe National Bank,"
Jim Thorpe, Pa.
The change of
neck Avenue.
*
is engaged
Plains
White
the
The
of
& Trust
in
its
National
Pa.,
dria." The consolidated bank will
Fingar's headquarters will
1946.
visor
of
on
located
be
bank's
Austrialia,
the Trust Division
Sept. 1^1954.
of
the bank
Office
Maher
Mr.
join The Westchester Bank &
Company as j$s Vice-Pres¬
ident and Senior Trust Officer in
partment of Manufacturers Trust
was
changed
Trust
&
Ro^helle,
Trust
Maher
Chunk,
common
N. Y.,
that Elmer Lee Fingar
Company,
"Meeting Changing Banking Con¬
Company
Mauch
Bank,"
and
Ralph T. Tyner, Jr., President,
if
Chunk
one
of this year.
the fall
if
Mauch
1
an¬
given
permission
to
the
Company to establish an
Trust
in
York,
July 9 that the New
Banking Department
State
York
President of
was
Chapter, American In¬
Banking, in 1927-1928.
stitute
erations
also expected to show gains.
rate
return
to Manufacturers Trust
came
Company in August, 1931, and was
appointed an Assistant Vice-Pres¬
ident in June, 1941.
Mr. Waage
business
$2,465,281
U8-,364
and
Avenue,
Pennsylvania.
and
dend
Vice-President in
Kernan's
last year.
over
For the
a
business with Canada,
On the automobile lines
ing off.
as
turers Trust Company, New York,
yet and certainly
as
in future months.
ther
McKernan
is
"The
$2,131,651
Deposits
Cash
if
company,
Dec. 31/53
resources
Edward
the- Eastern Division of Manufac¬
He
Total
*
appointment of Nelson M.
New York
has continued to
Cash¬
trust
york
June 30,*1954
cation
*
■:>
was
new
assigned
are
corporation
the
division.
overseas
The
16 major
1953 there were
that in
remembered
be
Olney
to the
bank's Far Eastern District in the
iers.
experience of the particular companies in this field.
It should
Both
E.
Assistant
appointed
were
Samuel
13,
Elon
and
the
Na¬
York
New
July
yesterday,
Hamilton
W.
of
Bank
City
of
The
of
Directors
of
stock at the par value of $10 each;
surplus of $350,000; and undivided
profits of not less than $50,000.
meeting
regular
a
in the business and the
coverage line
portance of the extended
At
Board
bank had
capital stock of $150,000, divided
into
15,000
shares
of
common
CAPITALIZATIONS
During the next several weeks the major fire and casualty
insurance companies will be publishing their semi-annual state¬
ments covering the period ended June 30.
indications
First
The
At the effective date of consoli¬
Bankers
and
OFFICERS, ETC.
REVISED
Present
of
dation the consolidated
NEW BRANCHES
NEW
—
charter
tional Bank of Middleburg, Pa."-
CONSOLIDATIONS
This Week
the
National Bank of Middleburg and
under the title
"The
First
Na¬
Bank and Insurance Stocks
By H.
Thursday, July 15, 1954
belief.
J.
SKINNER
Correct—Attest:
OAKLEIGH
GEORGE
F.
NORMAN
J.
L.
THORNEl
} Directors
LePAGE
MacGAFFINj
Volume 180
Number 5342
The Commercial and Financial Chronicle
...
(231)
Banking Company, Creston, Ohio.
The
President
the
and
is
H.
A.
Stebbins
Cashier Charles
Steb¬
E.
bins.
ft
CENTRAL
*
BANK
OHIO
112,952,509
Loans
196,044,335
187,552,798
2,286,708
FOR
OF
THE
IN
439,095,506
June 30,'54
Cash
-
,
______
and due
*
$
from
13,974,048
The
the
*
12,851,364
*
capital
common
stock
28,744,115
22,576,469
security
of
America#
National Bank of
Okla., was
increased
Shawnee,
from
banks
U. S. Govt,
profit's.*
4$
Dec. 31,'53
$
Deposits
800,652,605
CITY
355,102,012 293,742,866
325,737,450 271,414,870
$250,000
to
stock
dividend
effective
$500,000
by
June
Loans
104,955,290
discounts 190,337,010
&
*
FIFTH
THE
*
THIRD
UNION
TRUST
CO.,
Cash
due
and
Dec. 31,'53
330,727,769
276,727,930 305,516,934
76,969,076
107,019,230
96,537,691
113.634,788
1,976,834
1,562,130
profits—
*
h
The
helps you to
ft
Indiana
98,598,253
National
Bank
of
Farmers
issued
was
fice
of
OF
CONDITION
first.
and
system
and
Company
close
of
business
June
on
accordance
the
Superintendent
the
provisions of
New
with
of
30,
1954,
call
a
Banks
pub¬
made
by
pursuant
the.Banking Law of
take
effect
July
1.
has.a capital of $200,000
conversion of Farmers and Mer¬
a
chants
The
Bank,
Columbia,
President
C.
is
A.
Tenn.
Welchel
Merchants
and
Tenn.,
of
institutions,
reserve
direct
States
and
1,728,428.35
None;, furniture
and
around
*
and
$10,000,000 by
effective June
88,735.08
1
137,464.07
$42,613,164.33
partnerships,
*
City
tional
National
in
Bank
United
Deposits
States
and
to
ft
395,297.47
3,037,894.76
TOTAL
DEPOSITS $39,145,860.72
230,410.10
LIABILITIES
of
capital
CAPITAL
$39,376,270.82
State
Wash.,
field,
State
Grotfnd,
the
under
Bank, and
capital
total
new
of
Bank: of
State
consists
of
value
of
par
(b)
above
1
of
I,
William
the
of
156,653.84
Pike,
Secretary,
institution,
hereby
above
my
Ground.
bur-
prospect's holdings, do it
statement
knowledge
and
ings best,
is
true
of
the
certify
to
the
Stock Exchange
it
and
even
to
WILLIAM
C.
W.
V.
D.
PIKE.
KORELL]
TAMNEY)Directors
JOHN E.
free
the
kk Dreyfus &
Co.
on
July 31.
retire
O.
Robinson,
Vice-President
as
ger,
Nolan-"V^ B.
Inc.,
on
bership
AugQ.
oQfce
Hibbs
Jr.,
will
of
Fol-
&
Co.,
Exchange
July 22.
I
of
Burr
mem¬
Bartram
George L. Doublier will
sidered
BOOTHJ
to
even-
hour
an
before
J.
Abram
Feuer
Saturday's
this
thinking and do it then,
to
handled
not
anything that
or
at
time
a
rushed
when
it
write
can
you
down,
When you have completed the job
at
another time draw a line
through
is
it
on
clarify
WASHINGTON, D. C.—Burton,
one
Do
One Thing at
There
are
Writing
pad
memo
and
pressing
work
duties
There is
a
for
in
sale
in
the
on
the
of
the day. When
must
by
^fjbe
be
Exchange
announced
have
j
be
this happens
disposed of.
they
Raysor Salley, Jr. are now
pos-
When
ciated with their firm, i
asso-
TRENTON TRUST COMPANY
to
book
TRENTON, NEW JERSEY
more
moment.
and
ORGANIZED
1888
office
are
out of their office and wish to
use
STATEMENTS
OF
be
CONDITION,
JUNE 30,
each
and
out
recorded
Use
your
discarded
task
memory
is
,
things—write down
portant ones where
them
ASSETS
when
completed.
Cash
for important
the less im¬
Other Bonds and Securities
Loans and Discounts
.
$ 9,236,553.76
.....
U
.
18,451,914.40
State, Municipal and Other Public Securities
refer
you can
Hand and Due from Banks
on
U. S. Government Securities
later.
13,790,147.93
.
6,328,339.75
„
23,771,822.60
.
Banking Houses, Furniture and Fixtures—Equity
Simple Records
Keep
Other Real Estate Owned, Net
each
dress
will
card
.
.
Accrued Interest and Other Assets
.
.
.
993,548.03
2,479.34
.
.
home
at
and
(providing
$72,966,134.58
office—tele-
Deposits
office
United States
objection to phone
calls at home on part of prospect)
source of prospect — age — family
situation
and
names
of
family
erence
no
card and sales
these
cards
on
up
of
Common
.
Reserve for
1
700,000.00
$72,966,134.58
to date—they are
S.
are
Government
at
your
clients
record, either in
deposited to secure public funds and for other
required by law.
Preferred Stock, Class "A"—54,783 shares, par
share.
Retirahle
at
Your Best Time for
Study and Planning
Retirahle
Common
loose
leaf book, or on a card system of
your client's and prospect's pref¬
erences as to securities they might
buy. When new issues come along
you
can
check rapidly and ac¬
curately to see just where your
buying power is located.
$20.00
per
value $6.00 per
share and accrued dividends.
Preferred Stock, Class "B"—20,000 shares, par
share.
you
a
obligations and other securities
$2,685,000.00 in the foregoing statement
purposes
have the list available.
at
$100.00
Stock—28,000
per
shares,
value $20.00
par
value $10.00
per
share.
/
'
MARY G. ROEBLING
PRESIDENT
CHAIRMAN
AND
OF
THE BOARD
Main Office
28
West State Street
Colonial Branch
Mercer Branch
Broad and Market Streets
Broad
Hudson
and
.
think constructively
at a busy desk and
per
share and accrued dividends.
1
.
Member
can
235,156.41
........
ledger
the other. Keep
can be taken from
holding cards. When it is
necessary to discuss any widely
seated
1,544,000.00
972,859.99
Contingencies
client's
you
40,000.00
the
record file that
while
21,913.20
1
280,000.00
Preferred Stock Retirement Fund
the
issues in which your clients hold a
major interest. This is a cross
con¬
$67,376,494.75
1,067,012.23
.
Undivided Profits
card system to record
Find
.
328,698.00
carried
a
.
400,000.00
U.
Keep
.
Surplus
investments, either in his
presence or over the phone.
with
-.
........
invaluable when discussing a
item
.
........
client's
a
65,751,740.66
.
Preferred Stock—Class "B"
a
side
one
.
Preferred Stock—Class "A"
ledger type card
inches,
which allows purchases to be en¬
on
.
Capital
carry
about three inches by five
tered
.
Preferred Stock—Class "A"
—
on
$ 1,624,754.09
....
.
Preferred Stock—Class "B"
have them—pref¬
hobby. Customer's cards
the same informa¬
tion, and a list of all securities
purchased and owned and the
price paid, if possible. This should
any
should
Treasury
All Other Deposits
Unearned Discount, Accrued Taxes, etc.
Dividends Payable
\
to type of investment if
as
391,328.77
.....
LIABILITIES
Name—ad¬
do.
hone numbers at home and
If
1954
system the book is made up
torn
Federal
m
that Winfield A. Gingrich and T.
one
supplies stores. For those who
to
on
Connecticut
1001
Co.,
N.W.,
Avenue,
come along during
handy pocket reminder
most
&
Dana
inter-
things
seems
entered
are
Time
i_
iUPt10ns that
mind. You know all
your
the loose ends
a
unavoidable
..
and you know
your memo
completed.
down
With Burton Cluett
roa(j
favor
some
dfcProducts Ex-
rector of Tobacco
port Corp.
both your mind and your
eyes on
memory,
a
Spiegelberg, Feuer & Co., New
of
York City, has been elected a
but the way traffic rolls these
days it is a better idea to keep
be done later—write it
can
rights, facts,
held
Otto Hirschman will retire from
Transfer
belief.
Correct—Attest:
B.
be
can
Some find
others
the bell rings in the morning, and
•
JOSEPH
mind
concentrate.
even come- up with a few
good ideas while driving my car,
down. If you have to check
Use
,
33
Howard
deduction
of
D.
was
Exchange
Weekly .firm Changes
partnership
re¬
shown
as
after
are
reserves
above-named
that
best
of
34,446.06
Securities
Ridgefield
title First
A branch
above
deduction
of
serves
merged
New York-Stock
changes:
and
$8,855,655.66
shown
of
has announced the following firm
assigned
purposes
as
Bank
Battle
MEMORANDA
after
of
^
ACCOUNfTS- $42,613,164.33
liabilities
Ridge-
established ih the former location
stock
other
stock
1.
Wash.,
charter
State
AC¬
institution's
Loans
from
a
Bank,
and
The New York
are
increased
ft
Independent Bank.
$1,000,000.00.
for
Bank
stock
July
ft
TOTAL LIABILITIES AND
or
has
$1,000,000 by
1,236,893.51
$3,236,893.51
with
concentrate,
I've
client calls and wants
members if you
capital
1,000,000.00
CAPITAL
pledged
$300,000
ft
effective
dividend
Battle
$1,000,000.00
,___
COUNTS
(a)
carry-
T,
busy don't trust
a
be recorded
;
secure
com¬
National
Wash.,
common-
Ridgefield
ACCOUNTS
profits-
CAPITAL
its
(not
t„
Surplus fund
effective
from
stock
University
Seattle,
its
subordinated
obligations shown below)
tThis
a
it liown
are
on
Santa Bar¬
of
increased
ft
including
read
down
prospect file with short notations
i
dividend
Calif.,
$750,000 to
Other liabilites
common
free
30,
June
First National Trust
the
%
;
TOTAL
your
Cle¬
*
Savings Bank
The
checks, etc.)
Undivided
or
Don't clutter up your desk with
overdone
record
keeping.
One
$600,000.
banking institu-
deposits (certified and
TOTAL
client
when
minor
If
has
10,338,255.24
tions
officers'
to
Tex.,
Cleburne,"
ft
stock
a
bara,
po¬
subdivisions
Deposits of
to
sit
study, and plan, then set aside a
time of day—or night—and do it
then. If you have prospectuses to
but
that
Keep a large pad on your desk
in easy reach and a soft pencil or
ball point pen handy. When you
of
Bank
effective
Tex.,
2
mon
281,612.10
States
of
litical
quiet to
along the following lines recorded
July
and
4,278,324.26
of
have
must
you
is
creative
.,
write
to
ft
changed its title to "The First Na¬
By
$20,814,476.89
Government
Assets
stock dividend
a
Cleburne,,",,, Cleburne,
and
tions
Capital
com¬
deposits of individ¬
partnerships, and corpora¬
.
of
1954.
corporations
*.
Bank
30.
ft
fix¬
vaults—.
ASSETS
Deposits
will
of
if
it
are
given over
*
type of activity by some.
Abram J. Feuer, partner of the
salesmen. Find your best time for* New York Stock Exchange firm
*
Capital stock from $7,500,000
mon
"The
Time deposits of individuals,
Other
*
National
Houston, Tex., increased its
s.
uals,
lot
a
won't
you
But
where
pres-
rules
that
this.
interruptions,
certainly the gifted
are
and
one
read, ideas for creating business
to to develop, statistical work to do,
proof such as. making an analysis of a
on,
busy salesman's mind from
this
Second
burne,
>
Na¬
and Trust Company
Fla., from $300,000 to
15,248,623.19
LIABILITIES
Demand
First
$500,000.
owned,
assets
TOTAL
capital
common
the" Palmer
Bank
to
—365,001.61
discounts
(in¬
premises
tures
Other
good
some
telephone
then you
of perforated small sheets that can
cluding $589.49 overdrafts*
Banking
turned
through
place and your mind is free to go
*
dividend, effective June
of
The
15,288,802.37
through
way
fool
no
eliminate
is
followed
ahead
and
subdivisions—
and
Tenn., effec¬
&
of Sarasota,
j__
of
bentures
National
tive July 1..
tional
in¬
bonds, notes, and de¬
Loans
Merchants
30, increased the
in process
guaranteed
political
First
of
Government
obligations,
Other
mem¬
national
a
title
Columbia,
stock
$9,756,109.66
States
of
A stock
balances,
items
Obligations
Bank
Bank,
State
a
the
and
to
other
collection
United
will
it
are
be
can
be
the
ASSETS
cash
under
Farmers
York.
balances' with
all
constructively about handling his
surplus of $121,127 and is
a
bank
Broadway, New York 4, N. Y„ at the
and
is
dens, when he should be thinking
by the Of¬
Comptroller of the
to
The Bank
Columbia,
of 50
banking
cluding
that
when
Merchants
ber, has converted into
Cash,
There
stock
a
OF
Underwriters Trust
of
are
ing
a" charter
the
Farmers
State
time. If you
save
just don't know which
you
are
in
and
from
and the Cashier Joe Roberts.
REPORT
follow
accounts.
First
Currency
ft
Indianapolis, Ind., effective June
30, increased by a stock dividend
its common
capital stock from
$6,500,000 to $10,000,000.
lished
with
mistakes
versified group of investors, there
are bound to be busy times when
National Bank of Columbia, Tenn.
discounts
&
of
dividend effective June 30.
96,018,224
security
Undivided
increased
was
fewer
enables
more
from
holdings
Loans
stock
the Union National Bank of Little
Ark.,
to
Feuer Director
Organizing Your Work
handling general market securities, listed stocks, unlisted stocks,
bonds, and the accounts of a di-
there
$1,500,000 to $1,750,000 by
$
302,693,582
banks
U. S. Govt,
*
capital
common
Rock,
OHIO
June 30,'1954
resources
Deposits
*
work
accomplish
a
30.
157,896,151
$
Total
4s"
The
organized
to
effort,
sure
82,462,248
*
CINCINNATI,
less
turn
-
holdings
Well
anyone
se- —'
CLEVELAND, OHI.D
resources
Some Suggestions for
Dec. 31, '53
1 1,657,103,713 1,700,406,934
Govt,
rule
MICH.
curity holdgs.--. 819,002,499
& discts.""1 430,427,059
*•
Total
good
442,421,085
S.
one
life.
By JOHN DUTTON
385,090,959
U.
Securities Salesman's Corner
DETROIT,
Loans
*
SAVINGS
OF
on
thing at a time. Play when you
play—work when you work, and
do one thing at a time. It is a
*
BANK
banks—
Undivid.
SOCIETY
*
to
duel'S
and
from
1,737,995
*
*
?
*
sible try to put your mind
Chi¬
common
resources^,770,282,038 1,808,694,129
Deposits
196,553,705
158,448,430
discounts
&
•
of
its
June 30, '54
Cash
Undivided profits—
.
125,961,849
security
holdings
Bank
DETROIT,
$
Total
banks
U. S. Govt,
NATIONAL
Dec. 31,'53
from
due
stock, the
new
increased
491,705,728 521,869,991
455,936,218 489,148,070
Deposits
Cash and
111.,
cago,
OF
$
resources____
saleqof
National
*
June 30,'54
Total
the
capital stock from $250,000
$375,000, effetcive July 1.
ft
NATIONAL
CLEVELAND,
By
Belmont
27
Deposit
Insurance Corporation
1
Streets
The Commercial and Financial Chronicle...
28
(232)
<'
■
last
$28,-
sales were
gross
year
405,000.
June, which is usually a "taper¬
Mutual Funds
ing off" summer month, topped all
marks for that month,
sales of $5,600,000 as against
previous
with
7
$3,778,000 in the like month last
By ROBERT R. RICH
the
Disquieting Report Expected
uted
Companies'
Although the National Association of Investment
figures contained in
shares
fund
show
will
a
sales, while still high, will show a seasonal
77'''
quarter.
sales
shareholders
fund
mutual
buying
shares
riod.
TOTAL
for linking-up
of underlying
31,
The
prices
To increase gross sales, decrease
>)< both will make for
well
centage of invested dollar and through an increased
staff for the
So, it
hole
a
the
in
finding
is
canteen
one
way
Their
they
their
sold
investment
their program."
(2) They need money.
and
There
or survey
for abnormally
attained
(3) They have
(4)
which
reasons
will reveal.. If there is
feature is
fund, which should not become
an
an
a
can
fc shares
of
Loomis-
a
new
-
v
.7
...
shares outstanding,
5,728 shareholders. -
1953,
and
825,744
I
DELAWARE FUND reported June
quarter sales of $1,305,236, an in¬
crease
of 61% over the sales of
Boston Trust Reports
The
of
Annual
Boston
1954
over
of
shows
outstanding
778,614,
per
a
v
total
$11,640,319,
$7,654,142
an
share
on
assets
31,
increased
1953.
from
increase of 26.5%.
from
31,
52%
May
on
increase
an
May
increased
WELLINGTON
of Investment Trust
Report
of
Shares
615,367
to
Asset value
$11.08
gain of 24.6%.
to
$13.81,
/
1 MUTUAL INVESTMENT FUND
NATIONAL
previous
and
sales
FUND
broke
records
for
all
June
$808,722 in the corresponding pe¬
Gross sales of Wellington Fund
during the six months ended June
30, last, totaled $31,029,000, which
were
the
largest
for
any
six
months' period in the fund's 25year
history.
For the
same
period
Massachusetts
named
as
"best
as
dustries
one
Investors
of
managed"
by
"Best
service for all
Miss
utility companies.
McLinden
34
in
American
Trust
companies
has
been
regarded
their respective in¬
Institute of Man¬
foundation.
of
member
a
the Judicial De¬
of
partment of the State of Connecti¬
A graduate of the Academy
cut.
the
of
Congregation
Dame
in
Linden
College
vent
de
of
Notre
Miss
Waterbury,
later
Mc¬
graduated from the
Elizabeth, Con¬
Saint
Station,
after
Jersey,
New
which she attended the
Columbia
University
School
of
an active
Graduate
She is
of the Special Libraries
Association, New York Chapter.
mem¬
of National Securities & Research
To date it lists ap-
J.
President
SIMONSON, Jr.,
Corporation,
announces
the
ap¬
Foss
H.
Hugh
of
Insurance
On
B.
Edward
of
director
Burr,
public information for the Nation¬
al Association of Investment Com¬
has
panies,
following
the
issued
official statement about criticisms,
from life
regard¬
ing the sale by mutual fund re¬
primarily
in
insurance
agency
the
which
groups
"investment-
periodic
shares
fund
have
is
mu¬
covered
by
insurance.
asked
been
criticisms
in
plans,
periodic program in
a
"We
east,
of combined
tailers
comment
to
certain
by
life
conflict
filling
-
by
funds
mutual
business
has
developed
connection with plans of¬
fund sponsors combining
with periodic purchases of
in
few
a
insurance
should
that
noted
be
field
this
the
funds
ac¬
of life
companies,
and
of
life
insurance in larger amounts to many fam¬
in
bringing
ilies
and,
which
purchasers
are
from
are
existing
the
benefits
not
even to some families
previously had this pro¬
view
tection.
"It is
our
complementary, and not
are
This concept is rec¬
ognized
in the
sales literature
of most
mutual fund sponsors who stress the own¬
ership
of
adequate tcash
savings
and
adequate life insurance before investment
basically competitive.
in
shares.
fund
mutual
industries
opportunities
fields.
spective
to
continue
WRITE FOR
tions
FREE INFORMATION
insurance
FOLDER AND
other
and
are
faced
expansion
for
For
strive
part,
our
for
financial
as
with
vast
their
re¬
we
will
rela¬
harmonious
understanding
industry
in
with
well
as
the
life
with
all
Dis¬
newly-established
Mr. Foss will
represent the cor¬
poration, which sponsors and man¬
ages
the National Securities
Series of Mutual Funds, in South¬
ern California with his headquar¬
in
ters
as
an
Los
Angeles.
Securities in
He
joined
New
York
Assistant Vice-President in
April, 1953. Previously he was an
the
ad¬
of Lennen
Inc., later Lennen
Newell, Inc.
j
and
and
Account
with
Executive
vertising
Mitchell,
agency
Mr. Schwarm will
represent the
corporation in the States of In¬
diana, Kentucky, Western Ohio,
and North Western
his
Michigan from
in
Hamilton,
graduate of the
headquarters
He
Ohio.
University
in
been
is
a
of Cincinnati and has
investment business
the
of
During
in¬
telligence officer in the U. S.
Army Air Force with the rank
for
a
number
World War II,
of
institutions."
Virgil
and
Wholesale
as
Central Territory.
that the services of these
fact,
in
have
Schwarm
National
shares.
mutual
Vice-President
dent
M.
ful¬
is
regulations.
misunderstanding
specifically
fered
Each
fundamental
Virgil M. Schwarm
Assistant to the West Coast Resi¬
tributor for the
important public need, in its
and subject to
the most strin¬
public
"Some
no
between
insurance.
an
field
own
interest
of
life
and
there is
it,
see
we
funds.
mutual
of
misunderstanding
"As
feeling
Our
groups.
Hugh H. Foss'
on
insurance
is that much
that has been said was based on a lack
of
accurate information on
and a basic
8gency
"Both
years.
he served
as an
Major.
.
PROSPECTUS
—
v
NATIONAL
SECURITIES &
RESEARCH
CORPORATION
Fundamental Investors, Inc.
Established 1930
120 Broadway, New York 5, New York
Diversified Investment Fund, Inc.,
fcMilUUUUMUIIBMBM
—■lU»U<HHMU
A
;■■■
sales
Securities
conference
&
of
Research
National
Corpora¬
tion wholesale representatives was
held
Alii
"192
Prospectus from
your
or
investment dealer
PHILADELPHIA
3, PA.
the
firm's
New
York
Munro,
Vice-President;
L.
L.
Manhattan Bond Fund, Inc.
Hoorman, Resident Vice - Presi¬
dent, Rut.herfordtown, N. C.; Vir¬
gil M. Schwarm, Cincinnati; Doug¬
las Laird, Retired Vice-President
in
Charge of Sales; George H.
headquarters, 120 Broadway, July
inclusive.
The meetings
marked the 25th anniversary of Mills,
Rutherfordtown,
N.
C.;
the gathering of the organization's
Henry J. Simonson, Jr., President;
wholesalers.
In
the
photo are Hugh H. Foss, Los Angeles; H. G. H.
shown,
clockwise,
beginning at Kuechle, Resident Vice-President,
lower
left:
H. Kenneth
Meyer. Chicago; Ira G. Jones, Resident
Vice-President; Patrick J. Raf- VicerPresident,. Boston; John W.
ferty, Boston; Harold W. Haff, Stephens, • Dallas; .Walter
J.
J.
New York; E. Wain Hare, ViceSmith, New York;'-whn M. R.
President; G. Sellers Smith, Vice- Morton, Pittsburgh; Rufus L. Car¬
President, "Philadelphia; I. Gard¬ ter, Resident Vice-President, Los
ner
Jones, Jr., Rochester, N. Y.; Angeles;
Philip
C. Smith,
and
Leighton Borin, Minneapolis; John David T. Gillmor, San Francisco.
6-9,
FOUNDED
at
A.
as
NAIC Statement
two industries
investment trust in
the nation, Massachusetts Investors scored
oldest open-end
in
born
was
Waterbury, Conn., the daughter of
a
prominent physician and surg¬
eon of that city.
She is the sister
H.
agement, nonprofit research and education
The
covering
approximately
1,000 industrial corporations, rail¬
leases,
roads and
bers of National Securities & Re¬
thus
Managed"
25th Annual Sales Conference
SERIES
concentrated centralized
a
insurance
Called
statements
corporation re¬
search Corp.
"It
National Securities & Research
SECURITIES
as
tive
Fund
Wilkins, Vice-President.
as¬
an¬
member
tion
information
riod of 1953.
the first half year, according
to A. J.
releases;
proxy
charge, the new library will func¬
life
?-\
De¬
reports,
Library Science.
gent
'
nual
statistical
partment, of which John A. Munro,
Vice-President, is the officer in
high of $36,-
At the same time 924,047
were
outstanding, among
These figures compare with as-.
sets
of $30,292,025
on
June 29,
reason
'
Investment
and
Fund have an¬
June 29 the fund, reducing term
t 6,500 shareholders.
mutual
a
Established under the company's
recent
960,249.
thorough¬
of
over
insurance"
be isolated.
integral feature
Achilles' heel.
on
assets reached
of
The heirs to
abnormal
an
the National Secu¬
with
$170 million.
Economics
tual
Mutual
nounced that
profit in
a
DIRECTORS
Sayles
the
f
large redemptions, perhaps it
The redemption
*:.
individual securities.
THE
(1)
the objective
believe they should realize it.
will, undoubtedly; be other
going study
obvious.
are
reasons
children's education and the like and
estate have liquidated.-
1
Some
assets
11.5%
in
corporate funds,
340
liquidating their shares to "buy
now
their shares
an
so
y
complete—they have
is
program
for their
necessary
are
shares.
Nation¬
Securities & Research Corpor¬
stocks,
common
preferred stocks,
study of redemptions will involve an examination of why
shareholders
.funds
in
in¬
are
Largest industry holdings were
public utilities — Electric, 13.2%;
oil, 10.9%; chemicals and drugs,
5.6%; public utilities-natural gas,
4.2%; and merchandising, 3.3%.
The company on June 30 owned
if there is one, to "plug the redemption hole" will
increase the funds' rate of growth.
A
rapidly,
of filling it more
in
assets
and 8.2%
cash and government bonds.
management
the increased rate of redemption. Just as plugging
a way,
62.9%
17.4%
be expected that more attention than before will
can
be paid to
now
a
mutual fund organization.
al
k 1 y
e e
pointment
vested
in
small funds.
now
shareholders lo¬
the nation
in many foreign coun¬
as
Commonwealth's
In
costs as a per¬
turn, this will benefit shareholders through lower
capacity, Miss Mc¬
organizing and estab¬
extensive libraries within
most
Exchange
approximately
65
subscription services;
and various other
new
i.i
tries.
redemptions, or do
healthier expansion of mutual fund size.
a
than
more
cated in every state in
of growth of
degree to control—that determine the date
$61,469,845 on
has
company
than 40,000
more
the two factors—amen-"
as
able in
with
and
1953.
10,000,000 shares outstanding and
securities.
Gross sales and redemptions then are
mutual funds.
1953
June 30,
rate of growth of the assets of
The third element is the change in the market
the business.
her
In
Linden
on
$76,686,608,
were
compared with $66,667,597 on Dec.
redemption figures, since these are two of the
three elements in measuring the
1954
Common¬
Company
Investment
30,
of
assets
NET
wealth
June
is the principal reason
of course,
there,
And,
been announced by
poration has
rities Series of mutual funds,
order to find the "net sales" figures.
the gross sales and
Alice
Miss
librarian of Na¬
as
ation sponsors
founding of the Fund in 1928."
the other in
except to subtract one from
sales and repurchases,
continued, "dur¬
received the largest
investment
since the
we
individual
selling or redeem¬
So, they say, you cannot connect up gross
ing mutual fund shares.
In fact," he
ing June
different and not
are
causally-connected with the motives of those
McLinden
tional Securities & Research Cor¬
substantial' lishing for National Securities &
Research
Corporation, a special
sums of money to our management
than in any other comparable pe¬
library, designed to be one of the
motives of
for the reason that the
redemptions,
to
OF
APPOINTMENT
and
Securities
sociation
Henry J. Simonson, Jr., President.
past six months,"
said, "more large in¬
Wilkins
the
to
Commission;
monthly bank letters; various
PROGRESS
PERSONAL
vestors have entrusted
7
■•;.,/
program
ity file; subject matter pertaining
vJ-
evaluation.
M.
proximately 75 current periodicals
subscription; more than 300
books; an industry subject author¬
on
categories of the AIM Man¬
agement Audit include economic function,
corporate
structure,
health
of
earnings
growth, fairness to stockholders, research
and development, directorate analysis, fis¬
cal
policies,
sales
vigor
and
executive
"During the
relate
do not believe it is logical to
investment
by Wellington Fund.
offered
Mr.
slump for the second
-7~"
Most mutual fund sponsors
gross
and
and that
substantial increase,
the part of both large
small investors of the middleon
the
Appraisal
attrib¬
were
increasing ac¬
steadily
a
of-the-road
indication—from
individual fund reports—that redemptions of
expected until next week, there is every
mutual
to
ceptance
funds' total assets, gross sales and redemptions
report on mutual
is not
sales
record
These
of points among
studied.
number
highest
management companies
year.
.
Thursday, July 15, 1954
l
Diversified Growth Stock
PROSPECTUSES
AVAILABLE
FROM
YOUR
ON
LOCAL
THESE
Fund, Inc.
MUTUAL
INVESTMENT
FUNDS
DEALER,
OR
Cleveland
Chicago
Lot
Hugh W. Long and Company
Incorporated
Angelas
San Francisco
Westminster
iv .'t
•
at
Parser, Elizabeth 3, Hew Jersey
-
Number 5342
yolume 180
The Commercial and Financial Chronicle
. . .
Continued
Invest-in-
It
As
nism
Potts, President of the Phila¬
delphia Bank, has been elected
Chairman
55, it
D.
National
the
of
America
Committee
the
nbw
No
Committee
Potts but will remain
the
of
ber
as
of
Board
a
to
mem¬
Governors
and the Executive Committee.
Qther
Potts
elected
officers
with
were:
J. E'arle
William
Jardine, Jr., partner in
Staats Co., Los An¬
H.
geles, Calif.,
as
Vice-Chairman.
B i d d 1 e,
Alexander
Vice-President
of
phia-Baltimore
Executive
Philadel¬
Stock
the
Exchange,
Treasurer.
as
F.
Rudolf
Executive
Vogeler,
one
Other
But
Secretary.
R.
Phila¬
Rosenbaum,
delphia attorney,
sel.
times
*
Walter A.
dent
Investment
the East
Bankers
fgoing
as
Committee, incorporated in April
of this year, announced the ob¬
servance of next year's Invest-inwould
held
be
April-25 to May 1, 1955. Inclusion
of May Day as the concluding day
Ihvest-in-America
of
Week
was
The primary objective of the
Invest-in-America Committee is
to
promote better public under¬
standing of the vital need of a
free (flow of capital in America's
to
provide more and better jobs for
the country's expanding popula¬
tion.
At its meeting
here the National
Committee voted Invest-in-Amer¬
ica Week charters to groups car¬
the activity in Atlanta,
Ga., Detroit, Mich.; Kansas City,
Mo.;; Los Angeles, Calif.; Phila¬
delphia, Pa.; Pittsburgh, Pa.; St.
Louis, Mo., and San Francisco,
rying
on
Successful Invest-in-Amer¬
Calif.
of these cities.
these eight cities
the pioneers in the movement,
the National Committee
plans
a score or more
cities.
nancial
form
additional large
Business,'industrial and fi¬
groups will be invited to
local action committees.
Week
Invest-in-America
The
movement
had
inception
its
in
Philadelphia five years ago when
a small group of financial leaders
sponsored
the
under
America banner
interested in
for women
sessions
Invest-in-
series of study
a
knowing more about the opera¬
country's money mar¬
kets and the flow of capital.
success
Meanwhile
a
dinner
speaker
principal
Philadelphia
at
a
Invest-in-America
attended
by
more
than
1,000 business, civic and financial
what
leaders,
take
of the Oriental, and have now lost much of her
territory—politically if not economically. It could hardly
be other than that the Oriental would regard at least these
three Western nations as their long-time oppressors—and,
of course, as in no position to have too much to say about
had
started
as
undertaking commenced
form
as
a
national
ment.
,,
exploitation whether by some foreigner
neighbor.
These are phony promises, of course,
but they make a real
appeal to the unfortunate natives of
many of the lands of the East.
his
or
There is much
Eastern
a
i
military conflict in this Far
and
Halsey, Stuart Group
income
net
of
$2,983,121,
operating reve¬
of $22,002,560 and net in¬
of $3,077,304 for the year
with
compared
nues
come
Improvement Bonds
Halsey, Stuart &
Co.
Inc.
associates offered yesterday
Associated
with Halsey, Stuart
offering are—L. F. Roths¬
child & Co.; William Blair & Co.;
New York Hanseatic Corp.; Stem
Brothers- & Co.; Thomas & Co.;
City Securities Corp.; Mullaney,
Wells & Co.; Aspden, Robinson &
Co.; Fauset, Steele & Co.; Walter
Stokes
&
Co., and Arthur L,
Wright & Co., Inc.
in
and
(July
,14) $10,000,000 of United Gas Im¬
provement
Co.
first
mortgage
bonds, 3^4% series due July 1,
1979, at 101.271% and accrued in¬
terest, to yield 3.15%.
award
the
of
petitive sale
The group
issue
at
July 13
on
on
com¬
the
bid
a
Net proceeds from the
will be
meet
used
the
Johnson, Lane, Space
financing
by the company to
of
cost
its
Elects Asst. V.-Ps,
construction
including the repayment
bank loans totaling $4,450,000
program,
of
at June
30, 1954, incurred in
with
the
con¬
To
growing demands for its gas
electricity, the company is
planning
construction
expendi¬
program.
meet
and
tures estimated
SAVANNAH,
Ga. — Johnson*
Lane, Space & Co., Inc., 101 East
Bay Street, announce that George
C.
Knelier, Joseph J. Slattery, D.
Hudson Boyd and James M. Ma¬
been
have
son
elected
Vice-Presidents
at
Assistant
the firm.
of
Mr.
$30,300,000 for
the five-year period 1954 through Knelier, who will make his head¬
1958. Of this amount, it is planned quarters in the Savannah office,
joined Johnson, Lane, Space &
to spend approximately $6,638,000
Co.
in
1933, having previously
in 1954, with varying amounts in
with
the
been
The
will
bonds
associated
ment
later years.
department of The Citizens
be
subject to
redemption at regular redemption
prices ranging from 104.73% to
&
last
par,
and at special redemption
prices receding from 101.68% to
par, plus accrued interest in each
He
in
private
from
light of history, it
was
is
distribution
the
sale
and
of
Commonwealth
sylvania.
Captain.
to
,
gas
of
Slattery became associated
with the firm in the Augusta ofr
fice in 1946, prior to which he
and
had
been
Rollins
Penn¬
&
the
pliances to its residential custom¬
ers, and cooperates with dealers
release
.
in the sale of similar
For the
30, "1954,
appliances.
had total
operating revenues of $22,617,079
company
with
Mr.
from
<E'.
service
1945
upon,
with
the
Mr. Mason has been with,
the
firm
1933
and
since
its
formation
prior thereto
was
State
Possibly
hardly fail
to the rank and file in that country that the
United States and Russia
States
and
from
Banks
of June 30,
I O
1954
i,
Bonds-,.
Other Bonds and
Loans and
$ 76,969,076.44
107,019,229.73
;—
Municipal Bonds
11,358,755.02
.
Securities
5,658,934.36
Discounts
96,537,691.44
Banking Premises Owned
Other
Real
Income
1 3,732,455.02,
.—
Estate
Customers'
53,379.54
.
Liability under Acceptances
Receivable and Prepaid Expense
27,885.00'
1,099,749.03
.
Accrued
Other Resources
236,426.77
—
—
$302,693,582.37
TOTAL
long engaged in an effort
destiny of China, and that the Russians
conclusion is hardly consistent with a belief
Such
a
in the disinterestedness on the
part of the United States.
The
steady march of our bases across the Pacific—how¬
ever
essential for
our own
Undivided
____
1,976,833.53
Profits
TOTAL
CAPITAL
$ 22,476,833.53
FUNDS
Reserve for
Liability
Dividends, Interest, Taxes, etc.
under Acceptances
3,321,629.63
—
-
,
27,885.00
DEPOSITS:
*
Commercial, Bank and Savings
U. S. Government
Other Liabilities
266,650,692.69
—
1
;—_—
—
——-
10,177,237.91
39,303.61
$302,693,582.37
TOTAL
•Includes
$4,215,634.83
of Trust Money on deposit in
the Banking Depart¬
ment, which under the provisions of the Banking Law, of the State of
Section
our
$ 8,000,000.00
12,500,000.00
(320,000 shares)
safety, and however solely they
designed for that purpose—is hardly likely to allay
suspicions of
~~~
LIABILITIES
Capital Stock
Surplus
were
each to control the
were
Due
Whatever the relative merits of the
Communists and their rivals in China, it can
won.
as
have allayed fears somewhat—or would have
but for other events.
appear
Statement
1107.12,
is
a
Preferred Claim against the
motives.
i
I
Ohio,
Assets of the Bank.
in
with
The Citizen and Southern Co.
IN'hi ATI fpw
CIN C
-.
H.
Clement
Boyd joined
office in
Augusta
Army.
12 months ended April
the
associated
Co., Inc. and
A. Evans & Co.
It also engages directly
and electric ap¬
in the sale of gas
United
almost obliged to do.
He
recalled to active service
was
Mr.
Improvement
engaged in the production,
electricity in the eastern portion
of
Bank.
Army during the
the Pacific Theater,
in the Reserves from 1950 to 1052.
i6as
United
The
Co.
war
rising
National
the
in
•
■case."
.
Southern
served
invest¬
RESOURCES
management of the situation there in more recent
L
of 101.02%.
•I
than
more
struggle.
Cash and
to
move¬
,
in
years may
to
of Commerce
Sinclair Weeks in 1953 appeared
Secretary
qf Franklin Roosevelt—namely freedom from
and from
want
the eyes
our
week.
local
enlightened of the imperialists, has seqn the hand¬
writing on the world and for some years has been doing
what she could to salvage what she could—which in prac¬
tice meant more and more freedom for formerly "colonialized" areas. The Dutch, of course, are not free of taint in
more
as
Angeles took up the idea and
originated an Invest-in-America
Week, encompassing a series of
meetings on each day of a full
the
than
reputation of the United States is no longer
wholly without blemish in this connection. Our excursion
into the Philippines naturally enough aroused suspicions,
in Los
group
on more
qnfi large the people of Asia have been
The
tivity the next year by including
as well as women in a series
of once-a-week discussion semi¬
When
occasion, but by
Our Record
men
as
probafely a fact that to Eastern ears talk of
liberty falls strangely from Western mouths. .Russia his¬
of this initial effort
inspired the group, led by Alex¬
ander Biddle, to broaden the ac¬
nars.
It is also
liberty, at least for them.
tions of the
The
freedoms
won
could and could not do to
.
of
observance
spread
to
is laying
Invest-in-America Week next year
to
Peiping in
exploited chiefly by some of the yery leading powers
which would like to (rally them now around the banner of
freedom. France has never been a particularly good over¬
lord, and is now anil has been for a good while past on
the decline. Britain; on the whole probably, one of the
With groups in
as
of the Kremlin and
torically has been the imperialist in the East
must not lose
1953.
things we should learn, and appar¬
ently one of the hardest things for us to learn, is the
simple fact that appeals in the name of liberty or freedom
fall for the most part on deaf ears on the other side of the
world. Probably there are several reasons for this state
of affairs. For one thing, most of the crowded millions
throughout most of Asia are much too greatly and urgently
concerned with getting enough to eat to have a. great deal
of time for this Western notion of personal or individual
liberty, for personal liberty as we know it and prize it is
definitely a Western product largely foreign to Oriental
thinking and Oriental experience.
one
ica Weeks have been conducted in
each
we
we
foreign oppression so much or what we
political freedom, but rather one of the other
would call
Offers United Gas
One of the first
Angeles.
enterprise system
on
still upon occasion
time
same
not freedom from
aspects of this situation much
success
At the
sight of the fact that the Kremlin approaches the masses
in Asia
through some of their own number who promise
nection
suggested by members from Los
competitive
other
are
out of Moscow.
come
Aspects
nothing at all of a mystery. Failure to under¬
false conclusions about what is
in the Orient, and certainly to invalid notions
to what
developed some of its own. For our,
grain of salt continued professions* of
a
dedication to communism and the welfare of the
under¬
the
bring the situation
more
into conformity with our own wishes. Historical
perspective is essential, and it is precisely this sense of
history that is so lacking in so many in this country—a
land so young in this business of world politics and
geo¬
graphically so remote from the regions where East is
meeting West—and neither quite understands the other.
The National Invest-in-America
Week
of
stand them leads to many
of
America, was re¬
appointed Chairman of the Exec¬
utive Committee by Potts.
America
there
of these leaves the
Schmidt, Vice-Presi¬
the
of
Association
more
frequently overlooked or not understood, some¬
by many who should know better. An understanding
more
General Coun¬
as
and
is
of Greater Philadelphia, as
Samuel
cited,
take with
we
privileged throughout the world which
Director of the Chamber of Com¬
merce
is again
likely to take exception to these factual
statements, or to the view that they must always be borne
carefully in mind When there is any question of bargaining
with the Kremlin, or Kremlin dominated countries. World
politics has historically been a dirty business. The Kremlin
is by no means the first to be guilty of much that Mr.
Martin rightly charges it with, but one would search in
vain for a worse offender, and it would be difficult to
find one so unworthy. It used to be said that
"you can't do
business with Hitler." Doing business with the Kremlin
with hope of
getting anywhere appears at least as dif¬
ficult. These are all facts not to be overlooked, and it
may
be that there are people in this
country who do not under¬
stand them or fully appreciate them. If
so, let us be cer¬
tain to remedy the infirmity.
1954-
the reins of
over
National
capitalism
part
Invest
for
Gillen, retiring Chairman.
Gillen turned
and
and in addition has
t
order.
same
announced by Wilfred
was
enough to us that the Kremlin has inherited'
imperialistic notions and ambitions of the Czars
all the old
A.
29
It is clear
from first page
PHILADELPHIA, Pa.—Frederic
in
(233)
<
30
The commercial
(234)
qna financial chronicle... Thursday, July 15, 1954
K<t
Continued from page
Business Failures Up Slightly in
5
Holiday^Week
greatest declines from the order¬
Dun & Bradstreet reports that commercial and industrial fail¬
increased to 196 in the holiday-shortened week ended July 8
from 192 in the preceding week.
Casualties were Considerably
ures
The State of Trade and
Industry
along part of the steel wage boost. There will be no surge
of buying as a hedge against a strike or price rises.
Meanwhile,
inventories of steel will have been pretty well whittled down
and represent a lesser drag on steel demand.
Current consumption should be pretty accurately reflected
in steel demand and production.
Ordinarily steel production is
an
accurate mirror of business conditions, but the large inven¬
to pass
heavier than the 139 occurring last year or the 152 toll of 156 and
came close to the prewar level of 208 in the similar week of 1939.
Casualties with liabilities cf $5,000 or more rose** to 175 from
162 a week ago and exceeded by a wide margin the 110 of this size
which
occurred
in
the
Srtiall failures,
comparable week of 1953.
in
Trend
steel
production
the
this
of
rest
should
year
be
However, the uptrend may not be apparent immediately
because of summer vacations. An uptrend is in the cards: "Steel'"s
shows
Forecast
Midyear
the first half.
over
of
$100,000,
against 18 last week?
as
last few
the
In
buoy to business
One
will
defense
be
steel
and
the
Before
days there
was
a
of awards
rash
of de¬
totaling $29 million. Another big support to busi¬
demand is construction.
It's at an all-time high.
fense contracts
ness
expect
executives
holiday
and
vacation
in,
set
season
steel
Reversing the upward movement of the two preceding weeks,
wholesale food price index, compiled by Dun & jBradstreet,
Inc., turned lower last week to stand at $7.22 on July. 6, as against
the
$7.30 the week
resents
a
year
rise
a
of
cost
9.1%
the
over
$6.62
rcorded
comparisons
advances
revealed
flour,
Lower- in' wholesale
butter, sugar, potatoes and steers.
rye,
in
oats, beef, hams, bellies, lard, cottonseed oil, cocoa, eggs,
hogs and lambs.
"7
were
prunes,
The index represents the sum total of the price per pound of
raw foodstuffs and meats in
general use and its chief function
31
is to show the general trend of food prices at the wholesale level.
Wholesale Commodity Price Index Edges Slightly Upward
capacity.
week's level
first
The
67%.
was
the
of
increases
price
stemming
from
the
wage
settlement
pushed "Steer's price composite on finished steel to
$114.16 a net ton.
It had been $113.20.
The composite will rise
further as additional
producers announce new prices.
Steel
prices
scrap
fairly steady, with "Steel's" composite
I
are
steel-
on
The Past Week
American
The
and
Iron
Institute
Steel
tons and
street, Inc.,
and
60% (actual)
based
that
the
week
a
For the like week
duction
weeks in 1954 is
month ago the rate was
a
1,725,000 tons.
A
year
72.3% and
pro¬
the actual weekly production
ago
placed at 2,134,000 tons of 94.7%. The operating rate is not
was lower than capacity in 1954.
The
was
117,547,470 tons
year
are
based
on
annual capacity
of
of Jan. 1, 1953.
as
sales
car
for
June
are
estimated
at
47-month
a
high
level of 550,000 units.
According to Ward's Automotive Reports
the preliminary counts show that the June total will run some
8.9% above May's 505,000 tally and plunge stocks below the
600,000-unit mark for the first time in five months.
The
final
analysis will show that showroom traffic in June set
a blistering
car sales posted the highest count since
approaches to that standard were the
tallies indicated in May, 1953, and March,
the month's
pace as
June
of
1950.
new
Closest
549,000
on
and 542,100
1951, respectively.
On the heqls of this sales outburst, Ward's
weekly publication
noted that this week's car and truck production were the lowest
in 27 and 36 weeks, respectively.
An estimated 85,907 cars and
14,806 trucks were assembled this holiday shortened work period,
July 6, from 271.13 to Ayeek earlier
the corresponding dafe'a year ago.
,
flour.
for
growers
rather
said
were
than
The cash
the
CCC
be
placing large
current
quantities
some
which
concern
would
under support
prices.
*
market remained firm
corn
offerings, but
of
to
at
sell
of
and
19,100 manufactured
a
week
the
industry total to 12.1%. General Motors and Ford Motor
53.1% and 30.2%, while the Independents' slice
equaled 4.6%.
Kaiser, Packard and Willys car production lines
Co.
garnered
was
place
felt
on
crops.
dealings but weakened at the close
the result of limited
as
over
the
the
new
'selling policy
market all of the
Oats showed strength in early
open
demand
as
Activity in grain and soybean futures
on
becameTess active.
the
On
inactive
makers
In
truck
showing
1954
,front, Divco joined Federal and White
while
list,
Reo
and
Studebaker
were
the
only
the
on
truck
any gains this week over the previous week.
industry has turned out approximately 3,084,256
the
10.7% fewer than in the same 1953 period (3,450,685).
The year's count to date on trucks approximated
580,767, com¬
cars,
or
pared to 66-3,520 a year ago.
Canadian plants recorded
this week
as
an
gain in vehicle production
estimated 6,549 units were built.
A week earlier,
three-day work pattern
Thursday and Friday for
a
was
the rule
as
most factories
the Dominion Day
only 4,745 vehicles rolled off assembly lines.
Electric Output
closed
observances
and
Dips Due to Independence Day Holiday
The amount of electric energy distributed by the electric
light
and power industry for the week ended
Saturday, July 10, 1954,
was estimated at
8,185,000,000 kwh., according to the Edison Elec¬
tric
Institute.
Holiday week-end, but
1.1%
over
an
640,000,000 kwh.
Independence Day
increase of 89,000,000 kwh., or nearly
the comparable 1953 week and 1,197,000,000 kwh.
Car
Loadings Decline Due to Miners' Annual Vacation
Loadings of
freight for the week ended July 3, 1954,
13.3% below the preceding week, due
to the coal miners annual
vacation, according to the Association
decreased
94,563
revenue
cars
or
of American Railroads.
Loadings
:
the
totaled
618,597
cars,
a
decrease
of
51,676
cars
or
fected
by
a
strike
in the steel
Day holiday.
industry and the Independence
,
,
,
10
to
20%
below
year ago.
Manufacturing Down
week
that
and
The
July
of
the
in
the
decreased
10%
below
the
output.
steel
mills
operate
at
points
seven
7
preceding week
about
was
year-ago
to
production
ended
from
scheduled
were
60%
of
below
capacity,
the
previous
output.
Automobile pro¬
duction was 3% below that of the
week's
week
and
1%
below
last
year's level.
H
e
si
v
construction
y
contract
awards declined 8% from those of
the
preceding
55%
above
week
those
and
were
last
of
year.
last year's
comparative.
Paper mills operated at 93% of
capacity,
low
unchanged
output and
that of
duction
9%
a
of
from
week
last
point
ago.
year
The
paperboard
that
and
from
one
of
dropped
the
preceding
unchanged
was
be¬
pro¬
from
the 1953 comparative.
Flour
Chicago Board of
same week last year.
the result of mill protection against price-advances,
sub¬
bookings of advertised brands of cake and "family flours
stantial
consummated
the
milling
decreased
5%
further
advances
in
London
the
and
tightening
world
supply
situation.
year.
Continued firmness in the green coffee market was influenced
by improved demand for mild coffee for roaster account and short
covering in advance of the extended week-end.
The domestic
at mid-week
raw
market displayed a strong undertone
Rican port strike persisted and cut off
sugar
the Porto
as
supplies from
Demand for
that
area.
granulated
was
slower
as
refiners
limited
their
Spot cotton prices trended mildly upward the past week. The
some support from reports of flood
damage in the
Rio Grande Valley and a lack of moisture in some other
parts of
the belt. Inquiries frbm domestic and
foreign sources were fairly
but reported sales in the ten
spot mark^s'Continued at
low level and totaled 28,800 bales for the
week, as; against
numerous
27,400
the previous week, and 47,100
in the corresponding .yveek a year
CCC loan repayments during the week ende'd June 25 were
reported at 37,500 bales, bringing the total for the^sedSon through
ago.
that
date
to
1,558,700 bales.
cotton remained under loan
About
as
5,272,700
bales of
Report
on
Bradstreet,
the
v.:
5%
was
that
of
last
year.
below that of the previ¬
week
and
1%
above
last
year's corresponding weekly out¬
put.
Federal
Reserve
Board
national
'
credit
Department
store
country-wide basis
Depart¬
that
on
a
(aken
as
for the week ended
advanced 18%
the
*July 3, 1954
above the level for
preceding week.
vious
week
of
crease
June
3%
In
the pre¬
26, 1954,
in¬
an
reported
was
from
that of the similar week in 1953.
For the four weeks ended
July 3,
1954, an increase of 5% was report¬
ed. For the period Jan. 1 to July
3,
1954 department store sales
regis¬
tered
decrease of 3%
a
below the
corresponding period of 1953.
According to the Federal Re¬
Board's
serve
index
department
store sales in New York
City for
*July 3,
the weekly period ended
1954,
registered an increase of
above the like period of last
year. In the preceding week, June
12%
26, 1954, an increase of 5% was
reported from that of the similar
in
1953, while for the four
weeks ended
of
crease
July 3, 1954,
4%
change
no
1
was
in¬
an
reported.
was
the period Jan.
agency,-, stated
sales
from
the Federal Reserve Board's index
week
■
Retail and-Wholesale
Conditions
&
1953-crop
of June 25.
j*--.--
Dun & Bradstreet
Dun
above
ment Store Index Sales Are Up
United States imports of cocoa during the first six months of
1914 were reported at
1,977,461 bags, or about 25% below last
raw
the output of last week and
4%
was
ous
past week.
Cocoa prices continued to spiral upward to new high ground
under active commission house and dealer
buying induced by
For
to July 3, 1954,
registered from
shoppers increased their spending in the week ended Wednesday,
July 7, and the total volume of retail sales was above that of both
the preceding week and the comparable
period of -1953. Traditional
that of the 1953 period.
clearance sales which usually begin after the Fourth of July were
widespread, and consumers were attracted by frequent offers of
this
discounts, price cuts, and limited down payments. "Vacation spend¬
ing expanded during the week and was substantially -above that
of last year at this time.
July 7
total
dollar
of
retail
trade
the
in1
week
attention
was
a
a
directed to holiday fare. Restaurants in resort areas
increase in volume of business as compared
marked
year
ago.
new
high level and
seasonally low this
sponding
was
week
comparisons allow¬
ago
made
for
were
the
last
in
year
on
Saturday in
dependence Day.
fact
six
open
whereas
closed
that
days
the
in
corre¬
stores
observance
were
of
In¬
With Shearson, Hammill
below that of
a
(Special to The Financial Chronicle)
CHICAGO, 111. — William A.
Migely has become affiliated with
Shearson,
Hammill
Salle
week;
La
previously
&
man
and used automobiles failed to sell well this
the volume of sales
be
South
~
The interest in most household
goods was
week.
Both
year
stores
districts
most
ended
estimated by Dun & Bradstreet, Inc.,c!5to be from 3 to
7% above the level of a year ago.
—*<■Housewives increased their spending for
foo4 thjs week, as
with
using
should
year
1
.
volume
*In
ance
was
that of last year.
7.7% below the corresponding 1953 week, which included a Satur¬
day Independence Day holiday, but an increase of 171,081 cars
or 38.2%
above the corresponding week in 1952, which was af¬
a
Butter production dropped for the
third
consecutive
week;
output
As
reported
over
the like week in 1952.
orders
those of
pared with 59,900,000 bushels in the
The
The current figure represents a decrease of
below the preceding week, due to the extended
this
Grand
and
from
38%
a
closed
Chicago
sharply. Daily average sales for the^^eek totaled
50,500,000 bushels, against 37,200,000 the previous week and com¬
trade expanded
a
all week.
down
were
placed
week's
*
market received
109,296
markets
and
ago.
Rapids, and in both centers buy¬
ing was cautious, as many firms
many
The shutdown of Dodge final assembly lines, plus three-day
work weeks at De Soto and Chrysler held Chrysler Corp.'s share
the
was
week
year
from
demand
earlier.
below
in
a
irregular. Wheat showed considerable
strength under active mill demand and a moderate 'improvement
were
purchases to immediate needs. Livestock markets at Chicago were
featured by a sharp rise in top
quality steers. Hogs were slightly
higher for the week while lamb prices worked lower.
21.6%
some
last
in
were
Ward's Reports Summarizes Automobile Situation
New
on
of
Lumber production fell 40% from
the output of last week and 39%
comparable because capacity
percentage figures for last
markets
surplus of the 1948 and 1949
ago.
annual capacity of 124,330,410 tons as of Jan. 1, 1954.
on
to 272.11
rose
compared with 278.33
Grain
week
prior
general level of commodity prices went slightly higher
last week, reflecting strength in grains and other foocfstuffs. The
daily wholesale commodity price index, compiled by Dun & Brad-
Primary market receipts of wheat expanded sharply hut
announced
The industry's ingot production rate for the
now
>
The
making grades at $27.33.
operating rate of steel companies having 96.1% of the steelmaking
capacity for the entire industry will be at an average of 65.4 % of
capacity for the week beginning July 12, 1954, equivalent to
1,559,000 tons of ingots and steel for castings, as against 1,430,000
that
to
above that of
Industrial
the
jReflecting the Independence Day holiday and summer vaca¬
tions, steel ingot production declined in the week ended July 11
to the year's lowest mark, 59.5%
of capacity.
The preceding
very slow this week.
Wholesale
food
buying
date
production climbed to 73.5%
of
Activity in the textile markets
•
price
up
rep¬
the like
on
ago.
Individual
wheat,
Despite the drop, the current figure
before.
cloth¬
picked
was
Furniture
ingot
of capacity after slumping during
early spring. That was only 2 or 3 points below the year's
high mark in January.
A 10% increase in business in the last
half could conceivably push steel ingot production as high as 83%
Buying
somewhat in the fur market.
liabilities in
The Defense department has $45 billion in unobligated
spending.
funds.
metalworking
in the second half of this year to increase
their business volume
10%
that
lagged.
well
excess
spotty this
was
Orders for women's
week.
ing
registered
furniture.
Apparel buying
equal
Wholesale Food Price Index Turns Downward in Week
upward.
a week ago were
textiles and
involving liabilities under $5,000, declined to 21*from 30 in
the previous week and 29 a year ago.
Seventeen failures had
the indicator's accuracy.
of
in
those
tories that had been built up before steel demand eased took away
some
ing of
&
with
Co.
and
&
Co.,
Street.,
208
He
was
Eldredge,
Talcott,
Tall-
Potter
Co.
week ago and much below
Gasoline sales edged
were
up slightly oyer last week's
substantially above last year.
T
With Wm. Tegtmeyer
(Special to The Financial Chronicle)
Wholesale Buying Decreases
The volume
was
of wholesale
,
activity in the week ended July 7
moderately below the level of the preceding week and sub¬
stantially blow that of the corresponding week^ef- 1953.
The
CHICAGO,
man
H.
is
now
111.—John
connected
W.
Hol-
with
Wm.
Tegtmeyer & Co., 120 South La
Salle Street.
Number 5342... The Commercial and Financial Chronicle
Volume 180
The following statistical tabulations, cover
Indications of Current
Business
latest week
week
Activity
IRON
Indicated
steel
AND
Equivalent to—
Steel
STEEL
operations
•
Week
Month
on
that date,
*1,430,000
§1,559,000
July 18
(net tons)
2,134,000
1,725,000
42
oil
and
INSTITUTE:
condensate
AMERICAN
PETROLEUM
(bbls.
average
gallons each)
Crude
Total
average
L
(bbls.)
(bbls.)
(bbls.)
output
Kerosene output
Distillate fuel oil
(bbls.)
output
Residual fuel oil output (bbls.).
Stocks at refineries, bulk terminals, in transit, in pipe lines—
Finished
and
Kerosene
Distillate
oil
fuel
ASSOCIATION
(bbls.)
(bbls.)
at
AMERICAN
6,939,000
23,888,000
23,862,000
7,144,000
7,053,000
24,160.000
23,570,000
-
2
2,277,000
2,095,000
1,933,000
2,215,000
2
10,137,000
9,700,000
9,825,000
10,351,000
2
8,166,000
7,874,000
8,128,000
8,860,000
freight loaded
Revenue
freight received from connections
ENGINEERING
2
164,546,000
*168,147,000
173,704,000
143,072.000
2
27,942,000
26,937,000
24,559,000
27,387,000
2
86,765,000
83,013,000
74,752,000
2
50,645,000
50,362,000
46,502,000
85,829,000
44,738,000
\.
(number
of
CONSTRUCTION
July
July
(
cars)
(no.
of cars)
U.
S.
Private
Putnic
coal
and
lignite
STORE
ELECTRIC
Electric
output
FAILURES
zinc
2,000
smelter
597,769
543,399
616,719
end
$323,867,000
$325,516,000
127,027,000
173,228,000
160,009,000
$191,626,000
59,523,000
8
171,484,000
150,639,000
165,507,000
132,103,000
8
112,307,000
113,477,000
124,153,000
July
8
59,177,000
37,162,000
41,354,000
86,732,000
45,371,000
July
=
3
63,000
*8,270,000
602,000
July
INDEX—FEDERAL
AVERAGE
3
July
.—
3
93
97
1,420,000
6,450,000
1,629,000
at
469,000
d7
79
(in
kwh.)
000
dwelling
INDUSTRIAL)
—
DUN
8,185,000
8,096,000
Social
July
BRADSTREET, INC
8
206
192
..
and
139
Hospital
AGE
COMPOSITE PRICES:
Finished
steel
Pig
Farm
8crap steel
METAL
July
July
lb.)
(per
Electrolytic
Export
(E.
M.
&
(St.
Zinc
4.634c
4.634c
$56.59
$56.59
$56.76
$26.92
$28.25
$43.83
J.
i
■
29.700c
7
29.700c
29.700c
29.700c
Public
29.600c
29.600c
29.700c
29.625c
Residential
7
96.750c
96,625c
93.500c
82.750c
Nonresidential
7
14.000c
14.000c
14.250c
13.500c
July
7
13.800c
13.800c
14.050c
13.300c
Educational
11.000c
Hospital
July
at
11.000c
7
11.000c
11.000c
Other
MOODY'S
BOND
DAILY AVERAGES:
PRICES
Government Bonds
S.
Sewer
107.98
Miscellaneous
112.19
112.19
112.00
105.69
Conservation
109.79
109.79
109.97
102.13
All
104.14
104.14
104.31
____
108.88
108.88
108.88
101.31
110,52
110.52
110.52
103.47
111.25
111,25
111.25
105.52
.July 13
.July 13
26
29
174
398
34
_
9
13
991
1,037
31
51
395
377
143
162
175
_
_
54
306
171
142
32
other
42
67
67
122
385
320
310
88
83
73
19
17
16
67
63
78
15
COTTON
_
development
_
SF.F.D
COTTON
AND
UCTS—DEPT.
15
10
PROD¬
COMMERVE—Month
OF
of
May:
Seed—
mills
at
2.55
2.99
Received
3.16
3.54
Crushed
2.90
3.28
Stocks
3.05
3.06
3.41
3.18
3.05
3.18
—
enterprises-
service
public
and
SEED
3.16
3.16
—
water
public
2.90
2.89
-July 13
a
-July 13
3.17
3.62
Stocks
3.86
Produced
Shipped
3.50
3.50
3.49
3.23
3.23
3.23
3.67
-July 13
3.14
3.14
3.14
3.54
-July 13
Railroad
Group
Utilities
Public
Industrials
MOODY'S
Group
-July 13
Production
22,110
3.42
424.8
289,462
338,713
227,077
204,836
250,255
223,307
227,070
84
92
81
86
427,655
566,985
106.76
106.18
3
262,900
3
.July
July
3
3
359,824
.July
of period
at end
(tons)
.
9
106.53
325,610 *
28,265
469,833
266,426
556,447
890,521
361,167
84,728,000
—r„—
129,705,000
AVERAGE
1949
100
=
106.49
DEALERS
ACCOUNT OF ODDON N. Y. STOCK
SECURITIES EXCHANGE COMMISSION:
EXCHANGE
—
851,534
958,824
558,766
$44,877,879
$38,764,551
$43,646,639
$25,089,008
June 26
—June 26
June 26
984,723
797,701
985,582
476,211
8,724
7,062
5,667
4,071
975,999
790,639
979,915
472,140
June 26
$42,705,386
$33,963,305
$41,910,730
$18,921,947
June 26
June 26
—June 26
324,830
235,820
325,430
139,080
324" 8 30
235" 820
3~25~430
139; 080
Dollar value
.—
short
sales
Customers'
other
sales
value
—
sales by dealers—
Number of shares—Total sales
Short sales
-
——'
——--—
sales
Other
Number of
320,240
296,110
June 19
shares—r
241,760
290,460
OF MEMBERS
396,060
377,900
415,970
8,678,720
9,887,280
11,291,000
279,380
5,593,240
June 19
sales
Total sales
9,074,780
10,265,180
11,706,970
5,872,620
FOR ACCOUNT OF MEM¬
DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—
Total purchases
—
.~r-June 19
Short sales
._i_ June 19
Other sales
—June 19
Total sales
-—June 19
Other transactions initiated on the floor—
>.
BERS, EXCEPT ODD-LOT
———
.
purchases
sales
—
Total sales
Other
transactions initiated
Total
purchases
198.120
♦Revised
of Jan
1
983
615
608
394
699
645
325
657
6,623
7,717
10,069
Produced
1,815
2,440
1,254
Shipped
2,909
3,474
3,089
113
108
115
107
106
108
(1,000-lb.
May
etc.
Grabbots,
Motes,
Stocks
May
pounds)-
(1,000
31-
SALES
STORE
(FEDERAL RE¬
SERVE
SYSTEM—1947-49 Avcrage=100)—
of June:
Adjusted for seasonal variations
—
U.
Month
Revenue
1,006,570
of
"
S.
INSTITUTE:
sales
ultimate
to
consumers—
ultimate
of
ESTIMATE
1,242,210
618,900
All
355,540
405,630
149,250
Non-durable
LABOR—(Month
1
♦$70.74
$72.04
76.59
April 30—
U.
—
S.
DEPT.
*76.21
77.42
•63.91
63.52
OF
June:
of
goods
——
goods
276,820
345,480
425,460
'
Hours—
—.,—.
,
73,680
57,780
67,820
June 19
June 19
357,495
372,854
398,970
•282,895
431,175
411,164
456,750
350,715
1,536,280
1,968,970
38,310
270,300
2,065,530
323,260
1,011,500
295,200
1,424,585
1,675,514
1,809,930
913,535
June 19
1,719,785
1,945,814
2,133,190
1,110,355
^
All
♦109.9
110.5
MOODY'S
100
WEIGHTED
Railroad
AVERAGE
YIELD
OF
4.74
(125)
96.6
95.1
.—July
6
105.0
105.8
102.8
6
93.7
92.4
96.4
89.8
114.4
*114.3
114.4
114.4
4.81
5.60
6.28
(25)
(not
1.87
1.60
STOCKS—Month of June:
COMMON
Industrials
1.91
1.60
inch
Amer.
Tel. & Tel.)
(24) —
6.27
6.26
4.85
4,86
5.58
4.62
4.64
2.88
2.94
3.50
4.82
4.88
5.58
$271,341,040
6,766,455
$273,555,234
5,486,781
$266,123,134
4,670,248
$264,574,585
$268,068,453
$261,452,886
4.59
(15)
(10)
:
•—-
109.8
94.7
$1.77
1.91
goods
Average (200)
94.6
•$1.80
1.67
goods
Non-durable
Banks
110.0
39.7
$1.81
•
6
6
41.4
•38.5
f
manufacturing
Durable
Utilities
—July
*39.9
38.9
;
"
Hourly Earnings—
196,820
OF
40.7
40.1
*
Non-durable goods
219,140
39.3
39.6
manufacturing
Insurance
—July
'
50,078,218
64.96
at
HOURS—WEEKLY
Earnings—
manufacturing
Durable
1
31,514,722
$553,005,000
48,786,925
$71.68
customers
EARNINGS AND
AVERAGE
33,031,911
50,200,577
„1—'.
April
$589,223,000
ultimate
from
Durable goods
DEPT.
32,885,050
$585,598,000
(000's omitted)
customers—month of
April
1,199,410
=
other than farm and foods
—
Weekly
June 19
NEW SERIES
100):
adjustment
seasonal
643,110
111,000
14-June 19
July
104.6
((Includes 621,000 barrels of fore^n cru^e runs. §Based on new annual
1, 1953 basis of 117,547,470 tons. /
reported since introduction of Monthly Investment Plan.
bales)—
1
Shipped
507,900
-iJune 19
of orders not
—
31—
140,740
foods
figure.
946
Stocks
246,080
1,234,440
for account of members—
1954, as against the Jan.
t Number
122,963
434,230
-4-
commodFties
82,743
150,138
996,130
1,267,950
July
AH
149,749
—————
Fiber
335,240
products
Processed
115,009
142,115
-
Shipped
Hull
282,040
Commodity Group—
All commodities
Farm
107,453
995,520
.
•
808,450
£,4-June 19
(1947-49
226,187
All
-—*>-
PRICES,
68,374
199,081
„_—
(running bales)—
May 31—
18,000
sales
—
57,412
89,329
122,740
Total sales
LABOR
82,177
106,964
19,400
Short sales
WHOLESALE
112,223
414,830
Total purchases
Other
140,897
70,844
28,100
Total sales
Total round-lot transactions
167,308
81,522
307,140
_:
sales
129,515
209,425
——;
23,400
Short sales
Other
219,851
145,980
——
-
(tons)
258,640
—-—-—June 19
■
79,258,000
177,739
—
Produced
—'-June 19
off the floor—
—
119,424,000
176,259,000
-
—-——June 19
—
«,.«&. June 19
—
-—June 19
—-———
—,
178,107,000
193,472
161,713
31——
Shipped (tons)
Hulls—
272,790
—-——7—
—
__—
Short sales
Other
May
Produced (tons)
203,890
986,670
"
i
Total
916,453,000
151,578,000
174,462,000
SLt'.—
(pounds)
(tons)
FACTORY
.
N
Stocks
Number
TRANSACTIONS
ROUND-LOT
95,387,000
129,004,000
Meal—
Kilowatt-hour
June 19
June 19
Short sales
Other
31——
May
(pounds)
EDISON ELECTRIC
(SHARES):
Total Round-lot sales—
.
and
Without
SALES ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
ACCOUNT
(pounds)
DEPARTMENT
TOTAL ROUND-LOT STOCK
FOR
161,955,000
191,274,000
1,061,214,000*1,147,144,000
_■;
Month
—
purchases by dealers—
Round-lot
84,671,000
124,212,000
163,177,000
—
_____
Produced
Number of shares—Total sales
Customers'
June 26
June 26
(customers' sales) t—
Odd-lot purchases by dealers
Dollar
Stocks
Produced
Produced
960,918
Number of shares
Round-lot
—
(pounds)
(pounds)
Oil-
Stocks
(customers' purchases) t—
Odd-lot sales by dealers
Refined
Linters
SPECIALISTS
AND
(pounds) May 31
Shipped (tons)
STOCK TRANSACTIONS FOR ODD-LOT
LOT
Oil-
122,901
PAINT AND DRUG REPORTER PRICE INDEX
OIL,
13,803
356,184
(tons)-
(tons)
(tons) May 31
Consumption
.July
.July
activity—:
of
434.5
Crude
Cake
(tons)
orders
Unfilled
"
3.10
435.1
ASSOCIATION:
(tons)
Percentage
3.10
431.7
INDEX
PAPERBOARD
Orders received
3.10
July 13
Group.
COMMODITY
NATIONAL
1
-July 13
Baa
31
49
•
57
building
'
Aaa
38
54
291
33
__
institutional
145
379
143
-
__
_
_
and
2.49
2.46
-July 13
—
27
408
_
.._
Highways
Cotton
corporate
Average
14
28
-
98.25
>
YIELD DAILY AVERAGES:
BOND
MOODY'S
103.47
115.04
July 13
Group
93.30
110.15
115.04
July 13
Utilities
Public
99.34
110.15
July 13
—
100.08
115.24
.July 13
Group
100.40
110.15
July 13
—
34
17
29
_____
_
_
nonresidential
July 13
Railroad
,
__
and
July 13
—
38
43
■ i
11
—
building
..
July 13
Baa
47
54
_
Military facilities
corporate
42
56
1,078
_
_
-
building
July 13
Average
142
309
__
_
_
—
_
Industrial
Louis)
96
156
157
—
_
construction
at
Louis)
97
398
-
_
private—:
July
7
152
72
35
July
July
at
York)
(New
(East St.
other
169
28
utilities
Telephone and telegraph
Other public utilities
All
185
20
_
_
Railroad
QUOTATIONS):
166
110
33
construction
Public
479
174
institutional
and
at
refinery
tin
(New York)
Lead
4.634C
$56.59
copper—
July
Straits
4.796c
6
(per gross ton)
PRICES
Lead
6
$26.75
(per gross ton)
iron
23
491
46
_
recreational...
and
26
76
1
—
-
990
111
114
buildings
loft
Miscellaneous
IRON
U.
(nonfarm)
...
Educational
&
196
_
1,123
945
166
-
Stores, restaurants, and garages
Other nonresidtntiol building
Religious
2,187
1,082
530
alterations-
office
$3,224
2,106
1,005
_
—
_
$3,097
2,244
-
.
(non-farm)
Commercial
8,658,000
8,825,000
$3,322
millions):
___.
building
44,307
OF
_
units
and
97,285
38,624
114
(in
76,784
33,100
DEPT
81,617
64,566
209,828
1,148
S.
73,654
80,239
201,055
(tons)
period
June
of
Warehouses,
July 10
AND
of
29
end of
Industrial
INSTITUTE:
(COMMERCIAL
(tons
(tons)—
construction
Nonresidential
RESERVE
100
2,553,000
INC.—Month of
71,466
period
Residential building
84,000
240,528,000
2,730,000
—
Nonhousekeeping
1
(tons)
259,355,000
export
of 2,000 pounds)——
of
Additions
11,269,000
11,779,000
and
.
construction
New
13,483,000
-
CONSTRUCTION—U.
new
Private
OF MINES):
(tons)
SALES
Total
18,839,000
11,260,000
190
Unfilled orders
$298,511,000
domestic
„
output all grades
(tons
at
41,000
20,260,000
235,012,000
(barrels)
(barrels)-.
pounds)-
552,975
July
S. BUREAU
SYSTEM—1947-49
EDISON
Slab
38,000
17,229,000
^
AMERICAN ZINC INSTITUTE,
June!
3
July
■■
.
Pennsylvania anthracite
DEPARTMENT
stock
Stocks
8
;
Bituminous
all
670,273
8
municipal
(U.
consumption
(barrels)
Increase
612,315
July
construction
OUTPUT
imports
Indicated
713,160
July
Federal
COAL
products
19,543,000
34,000
____
(barrels)
LABOR—Month
construction
and
Refined
imports
BUILDING
construction
State
oil
193,389,000
21,142,000
4
output (barrels)_,
Crude
212,973,000
201,702,000
19,828,000
output (barrels)
output (barrels)—.
222,882,000
198,440,000
oil
gasoline
618,597
NEWS-RECORD:
Total
Benzol
218,302,000
crude
3
ENGINEERING
—
Ago
(barrels of 42 gal¬
each)
Shipments
RAILROADS:
Revenue
CIVIL
1(7,005,000
2
6,451,000
July
at
at
(bbls.)
OF
2
6,466,350
6,509,800
July
July
gasoline
at
oil
fuel
Residual
6,441,400
July
unfinished
(bbls.)
2
Year
Month
INSTITUTE—Month
domestic production
Natural
July
July
July
July
July
July
.
to stills—dally
runs
Gasoline
of
Previous
April:
Domestic
output—dally
of that dates
are as
Month
94.7
lons
Crude
of quotations,
cases
Ago
of
PETROLEUM
in
or,
either for the
are
Latest
,
ingots and castings
AMERICAN
production and other figures for the
Dates shown in first column
Year
72.3
*60.0
§65.4
July 18
of capacity)
month available.
month ended
or
Previous
Week
INSTITUTE:
(percent
or
Ago
Latest
AMERICAN
31
(235)
capacity of 124,330,410 tons as
UNITFD
STATES
GROSS
DEBT
DIRECT AND
GUARANTEED—(000's omitted):
As
of
June 30
General
Nef
fund
balanced
debt-
Computed
annual
I
rate.
—-—--
2.342%
2.347%
2.438%
(236)
is
|
9
bntinued from page
wait for "rushes."
color, will have a far higher num¬
ber of viewers than black and
be spliced
white sets have today.
There
That's
hard one to answer
a
if
this way—some¬
Let me put it
thing new has come into history.
Now we've always
had color.
paintings hut that
in
it
had
We
question of pigment applied
to canvas, and the quality of the
iinished work depended on the
was a
pigment and the canvas. We had
color reproductions in magazines
—and in this instance the quality
of the finished work depended on
printers' inks and press work. We
have moving pictures in color and
the
m
color—by itself.
exists without mechanical con¬
have color—pure
mention
First
it here—;
few of them.
a
a
transmitting
In
months,
few
last
the
For
color
flexibility
of
under
normal
conditions.
'
tremendous
this
electronic
.show
before the
Federal Communications Commis¬
sion had approved the RCA sys¬
tem of compatible color—we be¬
autumn—even
Last
large
and
there will
all, we expect there will be
125
stations around
the
required
the bril¬
made, because the opera
tremendous contrasts
sunlit
white
liant
—
and
murky lighting of bar-rooms
always
had
it
Then
went
we
on
extrava¬
to
ganzas—the Bob Hope show, and
Donald O'Connor. We did a spe¬
cial Christmas musical and Me-
"Amahl and the
Wight Visitors." We did Jinx Falkedoerg and Dinah Shore—two
presentations especially designed
lor feminine, pastel shades.
We
-did soap opera and puppet shows,
prize fights and quiz programs.
jnotti's
,
opera,
On the Camel News program we
live show with films
fashion exhibition in Florida
integrated
-of
a
we
45
a
Formosa. In all,
have telecast in Color some
shows —• the whole range of
and
a
report
on
productions, in addition to
many special features. As a mat¬
ter of fact, we have just started
an eight-week dramatic series in
Color of the program, The Mar¬
NBC
riage, starring Hume Cronyn and
Jessica Tandy. In short, there is
no
of
type
entertain¬
television
color
and that has meant a week-in,
week-out series of presentations.
ment
haven't
we
And
each
of
put into
these
shows
re¬
sponded to color beautifully—each
©f them found enhanced values,
whether it
was a
of
dramatic play or
the reportorial accuracy
of
a news
program.
and
has
been
above the
our
and
more
recognized by everybody connect¬
ed with it.
They are designed to
bring back to television the role
a conversation piece and reach,
of
as
nothing before has done, tre¬
mendous audiences.
just what are they?
In
short, the most elaborate,
star-studded evenings in the his¬
And
of
tory
programs
mut
broadcasting—90-minute
that run the whole ga¬
comedies
and
—
musical
contem¬
operettas,
drama and adaptations of
porary
the
business
of show
classics, as well as
circuses, aquacades and ice shows.
These great shows will be pro¬
duced by Leland
Hayward and
greatest
Liebman
Max
will
and
feature
the greatest stars in show business
and
will
Sunday
be
seen
Saturday,
on
Monday
and
nights
on
alternate weeks, starting Sept. 12.
These spectaculars will be pro¬
duced in the
and will
Brooklyn studios
new
be, naturally, in color.
And, of course, that is only the
beginning of our plans that will
include
many
of your favorite
shows
in
With
color.
facilities
color
this
year,
that
we
to
be
the
new
completed
entirely possible
doing 12 to 15
hours of color programing a week.
it
is
could
be
sionally, don't like television, have
At this point, you may wonder
who
is
going to see all these
surrendered to the appeal of color.
shows
^Even those critics who, profes¬
Last autumn, when we transmit¬
ted
the
first
transcontinental
in
colorcast
phrey,
one
critics,
a
history, Hal
of the West
Hum¬
Coast
difficult man to
please, acclaimed it saying: "It's
so
beautiful," he said, "that it
knocks
very
are
in
still
of sets
are
all
all, there
relative handful
the market.
sorts
predicted
of
Well, there
estimates
as
to
100 thousand this year,
year — almost two
350,000 next
electronic tints."
pretty
a
After
how many receivers will be sold
in the next few years.
RCA has
million
right
only
on
out of your
seat."
And Jack
Gould, of the
New York "Times," was equally
•enthusiastic. "Fori the first time,"
lie wrote, "color can tell it's story
©f complete visual loveliness, in
a way that was impossible before
you
color.
in
1956
ingly stepped
there
will
1958.
And
be
up
and
the
tremendous
the
increas¬
production until
over
when
an
10
one
million
in
remembers
industry
mushrooming
of
itself in the years
since .the war, these figures seem
conservative.
That,
this
We did
determine
year,
in
order
exactly
after
item:
cost
your
can
can
we can show them all the great
things America produces; we can
bring them new ideas; we can
stimulate
their
imaginations as
it
has
the color ingredient to
major
a
be
for
probably
nobe more aware
too,
group
television.
color
should
it
Through color television
open, for Americans,
a
window onto the world. Through
been done before.
never
And in doing all
hope in the near future to be able
to release figures on this.
We do
be
about
public service—and of its re¬
we
how much
most costly color will be, and we
not expect
educa¬
and
wards.
of black-
costs
normal
and-white.
this, in meet¬
ing this challenge, you can have a
vital share.
It
all,
is
new
truly the beginning
for all of us—and
era
sets have to be painted, costumes
NBC
have to be designed,
of a
we
at
with you.
Continued
makeup has
proud to be entering it
are
from first page
On Internationalism
And World Government
outlook on
comfortably together.
ing, and somewhat disturbing to
any earnest believer in free and
popular government. Can a re¬
publican form of government be
worked successfully under such
what
color,
themselves
then,
color clinics—
did I refer to advertisers.
im¬
bankers, know
And, of course, they're very
You,
portant.
as
influence
their
broad
how
is
on
Color, I believe, is g6ing to be
boon they have ever
had
it should help them sell
the greatest
—
products,
advertisers
Previously,
were
limited in reaching their audiences
the printed word in
newspapers and magazines. Then
radio gave them the added value
of
the
human voice.
Television
gave
sound and movement.
there was still a large
But
television
of
advantage
group
couldn't
that
industries
of
take
because
products required color for
successful selling — products like
their
fabrics, foods, and a whole world
of manufactured goods.
have the ad¬
— the full
advantages of sight, sound, move¬
Now they too can
vantages of television
ment and natural color.
have
either
it
tem
ly
a
on
can
film,
sys¬
reproduces color film exact¬
it is. And speaking of film,
as
NBC
by
show
and
35
both
films
color
recently de¬
engineers will
film projector
new
veloped
of
They
or
RCA electronic
the
because
"live"
and
16mm
slides—with
color
first
showing
of
other
35
with
mm,
films
color
the network
on
were
shown
on
June 26-27.
Australia, the Union of South Af¬
rica and other former colonies are
pire?
their
subject of film, you will
be interested in two new develop¬
ments.
One
is
magnetic
tape,
which
the
nounced
acts
masters,
own
Ireland
on
an
ostentatiously
is
sible to
no
equal
respon¬
The big and
else.
one
Empire of
awkward conglomerate
Great
Surprising
and
Changes
a
RCA
laboratories
few months
much
like
the
ago.
an¬
This
Who of
30 years
dared
suggest
surprising.
recently
have
commercial
or
the
us,
as
even
would
that India
ago,
as
product itself
and the result is sh >wn.
There is
they were able to hold
such widely differing
sets of beings. The length of their
rule is a testimony to their skill
in
statecraft.
The empire out¬
centuries
over
sway
its
lasted
we
what
sented!
India
of
The
old
Dutch
Empire in the East Indies has be¬
come Indonesia.
A new Kingdom
Iraq has sprung into being; the
people of Egypt have set up in
business for themselves, and for
of
no
China
else.
one
has
all
told
foreigners to get out and stay out.
The desire for nationalism and
is
picture
vast
upon
territory was
the
pre¬
the land
was never
intruded
had
ropean
many
nation—Pakistan.
a
united people before any
a
Her
same
usefulness.
turn from Europe to
Orient,
time under¬
going the loss of a large part of
her own territory in order to com¬
pose
a
new
and made-to-order
the
at
Em¬
speaking) to the dynasty of the
Hapsburgs because for so many
would cut loose and become a re¬
public
old Austrian
the
One feels almost forced tooff his hat," (figuratively
"take
If
Asia has done things even more
Eu¬
her..
ruled by
hostile and separate poten¬
And in the language of her
tates.
people there has always been,
great diversity. At this present
time, there are at least 15 differ¬
ent languages used by her inhabi¬
tants. There is a bewildering mul¬
tiplicity of dialects. Yet unity in*
language is essential for binding:
together any number of persons;
into any real or useful associations
If
such
unity is wanting, any
united,
common
or
effective ac¬
nearly impossible, save for
a
brief time, in order to secure
some
immediate military advan¬
independence has become intense.
A little
reflection suggests the
reason for this.
Human ndture is
tion is
too varied for unity.
tage.
;
The
the
To
one
tirely by
not
en¬
emotion or senti¬
changes which we
should
surprise
forced,
nor
on
occasion
regret.
every
Are
day of
lives, to face the immense dif¬
ferences in human beings?
Ride
a mile in the New York subway;
our
below the
surface and' appearance of those
who are traveling with you, you
you
would
could
find
the
varieties
and language, and
religous faith,
get
but
of
race
of political and
and
thing
same
is
even
more^
impressively true as to religion..
religon have been
Differences in
mere
mentioned
neither
in
Human Family
who is not swayed
these
ment,
we
Differences
Fundamental
The
conventional, if
recording tape used for sound.
The producer need only set up
his
scene
with
actors
doing a
composed
in Asia
have
On the
to be discourag¬
ity on the part of the governed?
What a conglomeration of races
network
a
color film—
as
many,
variance of conditions and capac¬
fact,
another
so
England are no
longer
beautiful
reproductions. As a matter
on June 25 NBC recorded
and
King or Queen of the
United Kingdom of Great Britain
and Ireland.
Since 1931, Canada,
The Sovereigns of
to
—first,
itself
much happier now.
Austria has vanished into thin air.
before.
never
as
The Turks
One.
No.
are
footing with the mother country.
of the country.
the economy
big Turkish Empire of the
broke
to
pieces after
The
Sultans
World War
programing plans. Only brief¬
ly—in mentioning
life, so wide, so deep^,
Belgium had done between 1830
and
1840.
They could not live
it, and some of
for
facilities
our
more
our
the air with
at NBC have done about
we
in
idea
past
social
a
than bankers of the opportunities
shows have gone on the
receivers in that area.
its import¬
since then
the
eight hours of local color
to
five
marks almost exclusively to
this
NBC—introduced
1950,
adds
It
journalism, intensifies
believe
other
air, NBC has assumed all charges
al¬
has
telecasting
color
in Fort Worth are on
Pat Weaver—now the President
ance
music.
Bizet's
with
in keeping
to be
dimension to
arts.
its
Live
"Spectaculars in Color."
the
scenes,
new
a
as
thinking
for
be unduly ex¬
not
when
ready moved into the local station
WKY Oklahoma City and WBAP
by pre¬
television
communica¬
America.
called i "Home," the elec¬
tronic magazine for women.
All
these
shows
indicate the
the
sales
During
color is far be¬
laboratory stage—it is
here as an actuality, and the day
is fast approaching when it will
be
in
every
living
room
in
gram
in
his
at
potent
to
thinking
pensive.
As you can see,
yond
just this past spring we introduced
still another concept — the pro¬
news
has
now
most
it will
And
'/, So far, I have confined my re¬
casts
"This
in
era
In that phrase, "service to the
public," lies the keynote of NBC
We
the
command
country.
of
Color
shows
demon¬
tool ever created.
year—stations that will cover
75% of the television homes in the
world—
white
and
Chairman
said:
RCA
force, and opens the way
for a significant advance in serv¬
ice to the public."
successfully in both
advertiser
the
programing a week — and inci¬
dentally this increase in color
programing in Oklahoma City has
greatly increased the sale of color
regular
our
black
have
We
16mm.
or
to
dynamic NBC approach to tele¬
vision, and lead up specifically to
senting the Bizet Opera, "Car-; what we are going to do in color
ynen."
Very few more difficult beginning this autumn.
This
tests
of
Color have ever been
is, actually, the biggest
gan
new
television
All of this adds up to one thing:
the
Then
audience.
eager
It adds
these sizes.
country equipped with color ter¬
minal apparatus by the first of
o'clock
Sarnoff,
entertainment
the
film, from which it is impos¬
strated prints
about
television had a
the, morning
in
35
work shows in color.
In
tions.
have
given
kinescope rec¬
a
sible to make color prints in either
and by the first
of the year there should be 63
NBC
stations
transmitting net¬
field, we presented
Garroway in "Today"—and
proved that even at seven
tive
eight more.
be at least
the
when
tional
This month,
Texas.
Worth,
General
opens
we
of
December,
of the Board of
produced last autumn and winter.
were made on a standard
35mm color motion picture nega¬
interconnected
had
we
By the first of August
1
months
Last
tem,
.
.
a
justify
FCC approved the RCA color sys¬
the
(This is a
live show.)—
is
They
be another dozen,
another
Dave
we
been demonstrating
at NBC have
May,
there will
hap¬ ly received productions of Hamlet
pened before. For the first time and Richard II—the original Rob¬
in history, color can be what color ert Sherwood play, "Backbone of
is—it can be bright and gay or it America," and the full length ver¬
sion of "The Marriage of Figaro."
can be subdued pastels—it can be
anything one wants.
a
.
more
My time is almost up, but there
one other point I want to men¬
is
ordings of some NBC color shows
by telephone circuit another eight
—from Boston and Providence to
Fort
kinescope.
recording of
will
color
what extra cost there is.
realism
NBC
then
capable of
color signal. Since
were
than
after
development
demonstrations
then, more and more stations have
been added—almost every month.
By
other
color.
or
sales impact
extra aid to the advertiser. In
an
nationwide hookup, and 21
stations
Maurice Evans in his spectacular¬
just as it is.
Nothing like this has ever
California, we did it over
dena,
time
reused,
the show
of
tion.
recent
the NBC network is
well equipped to handle color. As
far back as New Year's Day, when
we
telecast
the Parade of the
Tournament of Roses from Pasa¬
Already
Your Show of Shows,
came
color
film
era."
new
that reason I will
color, and for
The object exists—here
—and the viewer, sitting at home
trivances.
black-and-white
film.
The
entire
industry—an
the
in
boom
graming . . . very often in ways
that people said couldn't be done.
These steps form the prologue
to what we are about to do with
for the first time, we
a
beginning of a new
marks the
It
dramatic steps to
revolutionize—pro¬
revitalize—to
have
they
color—and
columnist wrote—"This is it!
one
But NBC took
were
in his living room sees
subject of
have put
vertising force.
atory processing.
But now,
we
doubt that Ameri¬
no
always had the knack of getting
what they want, in a hurry.
As
like to mention a
new idea
in programing that we
will present this autumn.
You may remember that only
a few years ago television seemed
doomed to fall
into cliche-pat¬
terns.
What had been done last
week, and the week before, and
•the year before that, was what
we
could expect next week and
the
following
month and five
years in the future.
The result
of this would have been stagna¬
tion, the death of television as an
entertainment medium and an ad¬
dependent
quality of film and labor¬
results
the
here
shows
is
want
cans
would
I
on,
haven't seen solor TV.
you
the
on
am
various
the
make it deserve all
attention we have given it.
the
I
While
what this new
interested in just
applied whether
in
And the tremendous
at will, and it can be
and
erased,
The tape may
be
is
time, because of this latter factor,
the cost should be only a frac¬
tion of what it now is for making
In Color Television
medium is, to
to
need of processing; there is no
no
potential set circulation and
novelty of
our
each set because of the
Pioneering and Progress
It
Thursday, July 15, 1954
The Commercial and Financial Chronicle...
32
of the whole
fertile
at
and
sav¬
wars.
from
of
for fierce
causes
Our world of today is
the farthest imaginable removed
age
anything resembling the use
general vehicle of com¬
any
munication in
soeech
or
in writ¬
ing.
It is equally removed
any
common
agreement
in
from
reli¬
gious faith.
In
order
to
be
successful,
a
in some small
degree at least, be really repre¬
government
sentative
to govern.
must,
of those
whom
it
seeks
It must command their
allegiance, their respect, and their
[Volume 180
Number 5342...The Commercial and Financial Chronicle
>
-
loyalty. Who will give his life,
i
,
i
i
.
(237)
'
-Ui—
—.
33
V )
or
pledge his fortune and honor for
an
abstraction,
that
paper
definite
on
Our
nothing
real?
or
How
Would
Ever
Get
committee
or
con¬
could
congress
ever
Public
Governments
on
Utility Securities
By JOHN T. CHIPPENDALE, JR.
Congress
Business Done?
Any
or
Reporter
World
a
What world
vention
combination
a
represents
By OWEN ELY
The tone of the Government market appears to indicate that
Iowa Southern Utilities
traders, along with a growing number of investors, are assuming
more active participation in the operation, which is resulting in
Iowa
a
Southern
manage to transact any real busi¬
Look at our own
congress
in Washington. It acts for so
extended. It is reported that more and more in¬
stitutions are beginning to move into the longer-term Treasury
obligations. Although switches from the shorter-term issues are
millions
still accounting for the bulk of the trades that are being made, it
is reported that larger amounts of new money are being put to
work in the more distant higher income bonds. The trend into the
1950
Utilities,
with
annual
of
revenues
about
$11 million,
ness?
many
of
people,
tended over
who
wide
so
an
are
ex¬
with
area
so
many diverse interests, that it
finds itself afraid or unable to
legislate at all
issues.
on
It dreads
tariff
act,
decided
many
to try
important
to pass
to take any real
or
action
on
a
or
questions
of
banking or interstate
It
gladly shuffles off
currency,
commerce.
such "headaches" and "vexations"
to boards and commissions.
This
is
disappointing
to
the
last
serves electricity to a population of about 290,000 in
24 counties of southern and southeastern Iowa. Over 150 commu¬
maturities being
nities
,
88% of
because non-Government obligations are also
experiencing a sim¬
The bank eligible issue, the 2 %% of September, 1967-72, ac¬
cording to advices, is the popular obligation, not only for maturity
extensions, but also for new money commitments. Non-bank in¬
vestors appear to be losing some of their momentum in the long
market to the deposit bank buyers.
de¬
Maturity Lengthening to Continue
few money market specialists appear to have come to
the conclusion that the maturity lengthening programs will con¬
poorest, most autocratic, and most
hidebound piece of political mech¬
rather
anism, is a fixed or permanent
board, department or committee.
Such a body is so limited
by its
own
composition, that it is gen¬
erally hopeless to look to it for
anything useful
or
can
a
such
pass on
determination
a
or
of items
or
in
the
as
the
of
in
list of
a
expenses,
the advantage of
form
of
war
over another,
positiveness of action,
as
this is true in the
government
States,
what
tempting to
That
a
one
badly as a council
the field of battle.
on
If all
some
procedure
but for
any
it hesitates
one
question
It
rightfulness
schedule of charges or rates
of
of
satisfying.
like
would
it
of
case
the
United
be
in
at¬
govern a whole world?
corporation has
no
ment
commission
or
soul nor
has
neither
intelligence.
The United Nations is nearly in
this condition.
Slock at 50c.
D.
Sherman
a
&
Share
Co., of New
a spec¬
ulation, 544,000 shares of common
stock of Colonial Uranium Co. at
50 cents a share.
Proceeds from the sale of these
shares will be used to purchase
•
and
development
of
presently owned properties, for
acquiring, exploring and develop¬
ing other properties, for the pay¬
ment
of
annual
of
costs
performance
assessment
work
of
the
on
properties of the company, and
for other corporate purposes.
Colonial
Uranium
corporated / in
June,
was
1954.
in¬
The
principal
purposes of the company
exploration and develop¬
properties; the acquisi¬
tion, exploration, deevlopment and
disposition of uranium, vanadium,
the
are
ment of its
thorium,
earths
rare
mineral
properties;
vestment
panies.
the
other
com¬
The company's properties
in
the
Colorado
Pla¬
With A. M. Kidder Co.
to The
—
M.
Kidder
&
William A.
Co.,
127
North
Main Street.
well
as
state
as
similar development.
a
Blair Adds
—
William
in
the
long time
longer-term municipal
of too
great
It
or
making commitments in these
not there will be
appear
to be
a
point
available.
Now
the
big
point
how
is,
much
Treasury have to raise in the first six months of the
However, it seems as though
are of the
opinion that the new
raised by the Treasury will not be
have been making the rounds.
will
new
tion
fiscal
closely, because the
Projections
currently appear to
weather
.
.
.
1952
1951
Common Stock Record
(Millions)
Dividends
Earnings
$11.2
$1.64
10.1
1.54
9.0
1.32
..
—
,
Range
$120
1.20
.
Book Val**'
2iy4-19
$17.09
191/4-151/2
1.20
16.10
20
,
-15 y4
16.07
1950—
8.4:"
1.89
1.20
19%
-
14
16.48
1949
7.8
2.39
1.10
18
-10%
16.19
-
1948
,
1.72
.
6.3
5.7
1945
•
"
5.2
1944
■
5.1
1.00
13%
IOI/4
12.63
1.69
7.1
..
1947—
1.00
163/4-12%
12.23
1.70
0.65
19%-12%
11.75
0.85
nil
1.08
nil
16-9
83/4-
——
r*
6
of the funds that would
large proportions.
maintains
Blyth Group Offers
&
group
Co., Inc.,
which
offered
(July
14)
headed
a
yesterday
$25,000,000
of
3J/4%
which
are
callable
at
it
6,853
transmits
resale by
division
gas
and
braska,
Iowa
1953
Co. and
and
acquire
The company owns, operates and
neighboring
Northern
Natural
Gas
subsidiary companies had
$8,854,739 and. total
revenue
of $66,210,401.
George Stewart to Admit
Samuel Hirsch will be admitted
to
Hornblower
ture and
time
been
The
obtain
of
July 22.
Exchange,
on
New
Since
manufacturing
for
the
special
Department
of
York
Stock
Exchange and
Exchange.
In
1953 the company had net
sales of $37,037,072 and net in¬
the
Midwest
of
come
$1,967,623.
Form
SALT
Stock
Securities, Inc.
LAKE
CITY,
Utah—Se¬
curities, Inc. has been formed with
offices in the Beason Building to
engage
in a securities business.
Don F. Bradshaw is a principal.
shares
are
being
sold
to
Forms Wills & Co.
permanent capital to meet
JACKSON, Miss. — Kenneth W.
working capital requirements
the company's continuing de¬ Wills has formed Wills & Co. with
fense
Stock
elec¬
recording
1941 it also
and
split in May, 1951. The out¬
are listed on the
standing shares
Defense.
Co., 350 Fifth Avenue,
York
headed
capacitors,
switches
speedometers.
has
Stewart &
New
Weeks
share prevailing since the 2-for-l.
stock
sale of electric watthour
electric
meters,
tric
the
City, members of the
&
underwriting group which on
July 13 offered publicly 100,000
common
shares ($10 par value),
of Sangamo Electric Co., Spring¬
field, 111., at $25 per share. The
company is engaged in manufac¬
an
partnership in George
York
since 1936, with quar¬
terly payments of 37% cents per
Electric Common Shrs.
limited
New
in each year
Group Offers Sangamo
products
the current sale
construct
and
states.
operating
property and facilities to increase
gas,
by 27 non-affiliated
Oct.
used, together with other
natural
utilities, serving Kansas, Ne¬
net income of
from
ap¬
through
its Peoples Natural Gas
regular redemption prices ranging
from
103.50
if redeemed before
31, 1955, to 100 after Oct. 31,
1973, and at sinking fund redemp¬
tion prices ranging from 100.46 to
miles
Cash dividends have been paid
Hornblower & Weeks
which is sold for consumption and
In
debentures
pipeline system of
a
proximately
No. Nat. Gas Debs.
to
mild
addition to
37%.
1953—
some
pickup in real estate loans, which has
ordinarily be put to work in
This trend, however, is not expected to
ofr
earnings per share
influenced by the dilution inherent in the sale last November
100,000 shares additional common stock. We are confident that
1946
the Government market.
be
substantial
Revenues
to be too far out of line.
Blyth
continuation
temporary."
The stock is currently selling around 21 to
yield 5.7%, with a
price earnings ratio of 14.5. The equity ratio at the end of 1953
neighborhood of $1,500,000,000 to $2,000,000,000. It is
believed in some quarters that this total projected
expansion in
loans is high. However, it is argued in other circles that when the
sizable deficit financing by the Government is taken into consid¬
eration, the rise in total loans as forecast by some does not appear
assume
The
the adverse effects of these factors will be
center in the
a
decline experienced in this period reflects
factors.
.
seasonal expansion should be getting under
way now.
of the expected seasonal demand for loans
instances been showing
of
are
of
Years
deposit banks have in
May 31,
Society of
tion
was
that out-of-town
ended
New York
Bridgeport Station
Prospects
very
the
part of the credit for interest charged to construction reflected
in the results last year when construction of the
Bridgeport Sta¬
was in progress.
In addition, current
money
being watched
12 months
recent talk before
physical property represented
cause a comparative increase in this
Servicing the $7,000,000 of bonds sold last year increased
interest charges, while earnings lost the benefit of a substantial
It is also believed that most of the
Loan
The loan trend is also
some
statement, for the
a
charge.
market specialists
money which will have to be
as large as the estimates which
some
the
on
by the
the
securities which will be offered by the Treasury to meet the deficit
will be tailored to meet the needs of the commercial banks.
taken
In
throughout the winter months had a substantial effect, of course,
on earnings from our gas business.
Further, in common with many
other sections of the country, electric sales to certain industrial
power
users were
off, reflecting production cut-backs pending
liquidation of inventories and preparation for the manufacture of
new models.
These are the two major contributing factors.
"On the expense side of the picture, the accrual of
deprecia¬
It has been estimated that about $10,000,000,000 would be
reported
1953.
combination
a
the amount.-
is
interim
Security Analysts, President Shutts made the following statement;
the favored issue.
The amount of the offering is still an open
question, because the Treasury has to take into consideration how
many securities it can issue, and still have some room to move
period.
of
earnings of only $1.45 compared with $1.64 for the calen¬
dar year
It is expected that the Treasury will be coming into the mar¬
ket soon for new money with a tax anticipation obligation being
yet
latest
showed
Anticipation Issue Expected
St.
state
no
discussion
some
"The comparative
Tax
Company, 135 South La Salle
Allan
is
seems as
system capacity to 1,100 million
cubic feet of gas per day.
with
There is
corporate
or
though opinions are shaded a bit
to the side that if conditions should
require a quick lifting of the
debt ceiling it will be worked out.
concern.
&
is
*
capacity installed during the second half of 1953, which increased
capacity to 76,300 kw.
and municipal issues are ex¬
It is indicated that institutions
are now
Blair
Sparks
more
The
a
been
The question as to whether
funds,
K.
undoubtedly result in the location of
industries in the territory.
The company purchased 52% of its electric needs in 1953. This
will be reduced considerably by the 40,000 kw. of generating
securities.
will
(Special to The Financial Chronicle)
111.
new
followers, although at this time it does not
not
obligations for
Proceeds
CHICAGO,
zation of industrial will
an increase in
the debt limit is being given some consideration by money market
have
100.07.
Allan
are being established in the company's terri¬
Burlington has the greatest activity in acquiring new indus¬
tries at present; however, many smaller communities are sharing
in this industrial expansion. The current trend toward decentrali¬
utility commission in Iowa, although there
creating one in the next year or so. This
step is apparently favored by the electric utilities, in lieu of hav¬
ing to submit changes in rates and location of facilities to the
governing bodies of the municipalities for approval.
The company's financial record is shown in the table below.
which
The
Smith has become connected with
A.
obligations
porate
revenues
New Industries
This maturity extending process has not been confined to
Government securities either, because there are reports that cor¬
periencing
are
tory.
into the longer-term obligations is expected to bring
of these that have been mainly in the short-term liquid is¬
into the higher yielding Treasury obligations.
maturity.
Financial Chronicle*
ORLANDO, Fla.
some
more
of
sinking fund debentures due Nov.
1, 1974, of Northern Natural Gas
Co. at 100.50%, to yield 3.22% to
area.
(Special
the
into
trend
sues
in
of
issues
many
in¬
participation
and
located
teau
other,
the
mining, ventures
are
and
and
that there have been
from the near-term
This development has had an effect upon
Treasury sequrities especially those that have
been pretty much in the near-term end of the list.
Accordingly,
It
Co.
It is reported
switches
obligations.
holders
many
technical, mechanieal and auto¬
motive equipment, and office fur¬
niture and supplies, and fox the
exploration
expanded.
sizable
distant
not
York City, are offering, as
•
be
to
around within the confines of the present debt limit.
The deficit of the Government for the just ended fiscal
year,
was about what had been
expected, even though final figures are
Colonial Uranium
L.
tinue
a
soul, is
commonly believed; it is equally
true that a governmental
depart¬
a
Not
from
electricity, 11% from gas and 1% from
are 38% residential, 12% iarav
industrial and 9% miscellaneous.
Farm
business has shown the most rapid growth, having increased 286%
in the past decade, while residential and rural about doubled. :
The service territory is primarily agricultural, devoted to corn,
livestock and poultry. There are also a number of industries man¬
ufacturing a well diversified lime of products. Among the indus¬
tries are such well-known names as The Maytag Company, John.
Morrell & Company, Sylvania Electric Products Company, Auto¬
matic Washer Company, Cargill, Inc., J. I. Case Company and
Deere & Company. Industrial production in the territory includes
washing machines, meat products, farm machinery, ironers, home
freezers, soap, furniture, clothing items, electric motors, electronic
products, steel fabricated products, brick and tile and home heat¬
ing equipment.
revenues
steamheating. Electric
17% commercial, 24%
ilar movement.
for of all forms of govern¬
ment where some actual and use¬
ful
legislation is
the
Ottumwa, with a
population of about 34,000, is the largest town served;
a population of 30,613 and Newton 11,723.
Some
Burlington has
longer-term issues is not peculiar to the Treasury market either,
gree;
required,
served at retail and five at wholesale.
are
census
business
and
for
the
products under development.
the proceeds, $2,000,000
will
new
offices
in
the. First
Federal
Sav¬
Of
be ings & Loan Building, to engage
used to reduce current bank loans.
in
a
securities business.
34
The Commercial and Financial Chronicle
(238)
.
.
Thursday, July 15, 1954
.
* INDICATES
Securities Now
Acme
.
Uranium Mines,
in
Bldg., Denver 2, Colo. Underwriter—Carroll,
Kirchner & Jacquith, Inc., Denver, Colo.
Cranmer
Alpine Uranium Corp., Salt Lake City, Utah
(letter of notification) 7,500,000 shares of com¬
mon stock.
Price—At par (three cents per share). Pro¬
ceeds— For mining expenses.
Office — 512 Zion's Sav¬
ings Bank Bldg., Salt Lake City, Utah. Underwriter—
June 28
Main St., Salt Lake City,
Natural
Gas
Corp.,
Santa
N. Mex.
Fe,
(letter of notification) 748,000 shares of commoi
(par five cents). Price—40 cents per share. Pro*
ceeds—To
acquire properties and leases. Office — Blatl
Bldg., Santa Fe, N, M. Underwriter—Hunter Securitiei
Corp., New York.
Boston
Edison
due
1984.
Co.
(7/26)
$18,000,000 first mortgage bonds, series E,
June 29 filed
Proceeds—To
"construction.
retire
bank
loans and for
PREVIOUS
ITEMS
REVISED
ISSUE
California Electric Power Co.
Dec. 23
•tock
'
Uranium Mart, Inc., 146 South
Utah.
Registration
Basin
Inc., Denver, Colo.
(letter of notification) 9,996,000 shares of com¬
mon stock (par one cent).
Price—Three cents per share.
Proceeds—For mining expenses.
Office—425 Ernest &
June 21
ADDITIONS
SINCE
•
new
Underwriter—To
be determined by com¬
Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp.; Lertman Brothers; Kuhn,
i
■'»*
cumulative preferred
stock (par $50). Price—To be supplied by amendment.
Proceeds
To
redeem
two issues of
$2.50 preferred
April
22
stock
(par
filed
105,000
shares
of
—
totaling
$50),
98,800
together
and,
shares,
with
proceeds from proposed issue of $8,000,000 of new
first
mortgage bonds, to redeem $8,000,000 3%%
outstanding,
presently
Pierce, Fenner &
porarily deferred.
Underwriter
v
bond*
Lynch
j Offering—Tem-{
New York,
Beane,
Merrill
—
petitive bidding.
•
Cavendish Uranium Mines Corp.,
(7/20)
N. Y.
Loeb & Co. and A. C,
Weld
American-Canadian Oil & Drilling Corp.
May 12 filed 1,500,000 shares of common stock. Price—
($1 per share). Proceeds—For drilling expenses
and acquisition of additional properties for development
and exploration, and related activities.
Office—Dallas,
At par
Tex. Underwriter—None.
June 3
Price—$1 per share. Proceeds—For ex¬
ploration costs and general corporate purposes. Office—
37 Wall St., New York.
Underwriter—James Anthony
Securities Corp., New York.
&
Allyn & Co. Inc. (jointly); White,
Harriman Ripley & Co. Inc. Bids—Ten¬
Co.;
tatively expected to be received
July 26.
11
up to
a.m.
(EDT)
on
if Briihart Plastics Corp.
July 1 (letter of notification)
stock
(par 25
cents)
stockholders
common
if American Investment & Development Co.
July 9 (letter of notification) $25,000 of senior preferred
one
July
1
the basis of
on
To
Price—At par.
Proceeds—For
—150 Broadway, New York, N.
record
on
(par $100); $23,000 of participating preferred stock
(par $25); 1,200 shares of voting common stock (par $1);
and 700 shares of non-voting common stock (par $1).
of
new
pire
stock
48,660 shares of common
be offered for subscription by
to
derwriter—None.
working capital.
Office
Y.
Underwriter—None.
No public offering planned.
it Amex Uranium Co., Inc., Seattle, Wash.
(letter of notification) 1,000,000 shares of com¬
mon stock (par one cent). Price—Five cents per share.
Proceeds—For mining operations.
Office—1810 Smith
Tower, Seattle, Wash.
Underwriter—None.
June 29
Apollo Oil & Uranium Co., Denver, Colo.
May 27 (letter of notification) 12,500,000 shares of com¬
mon
stock.
Price—At par (one cent per share).
Pro¬
ceeds—For mining activities. Office—602 First National
Bank
Building, Denver, Colo.
Underwriters — M. A.
Cleek and J. Russell Tindell, both of Spokane, Wash.
•
Arden Farms Co.,
Los Angeles, Calif.
June 11 filed 32,669 shares of $3 cumulative and par¬
ticipating preferred stock (no par value) and 52,876
shares of common stock (par $1), the preferred shares
being offered for subscription to holders of outstanding
preferred stock of record July 7 on l-for-10 basis, and
the common stockholders to have right to subscribe for
the new common stock on a l-for-10 basis; rights to ex¬
pire on Sept. 24.
Price—For preferred, $48 per share;
and for common $12.50 per share.
Proceeds—To reduce
bank
loans.
Underwriter—None.
Arkansas Natural Resources Corp.
June 11 (letter of notification) 299,500 shares of com¬
mon stock (par 25 cents).
Price—$1 per share. Proceeds
—For expenses incident to drilling for magnetic iron ore.
Office—Rison,
Ark.
Underwriter—Eaton
&
Co.,
share for each three shares held; rights to ex¬
July 26'.
Price—$1.75 per share.
Proceeds—
repurchase 39,500 shares of its common stock from
General
Acceptance Corp. and for working capital.
Office—Old Country Road, Mineola, L.
I., N. Y.
Un¬
* Buffalo Forge Co., Buffalo, N. Y. (7/27)
July 7 filed 85,000 shares of common stock (par $1).
Price—To be related to current market price at time of
•offering.
Proceeds—To 11 selling stockholders.
Under¬
writer— Hornblower
&
15 filed 121,440 shares of common stock (par $10)
being offered for subscription by common stockholders
of record July 7 on the basis of one new share for each
shares
held;
rights to expire
July 21. Price—
stock, together
with funds from private sale of $2,000,000 of 15-year
notes, to be used mainly to finance the building of a
new foundry.
Underwriters — Merrill Lynch, Pierce,
Fenner & Beane, Hornblower & Weeks and
White, Weld
& Co., all of New York.
$32
per
share.
Proceeds—From
subscription
share
by
stockholders
common
for
each
2.5
shares
Colo.
Inc.,
July 16
Erie
Reinforced
of
of
Marion
par
Underwriter—White
Relations
way,
&
Co., St. Louis, Mo.
Representative—Geo.
New York, N. Y.
Underwriter—None.
tal.
14-day
Common
EDT)
&
(Eisele
Dealer
Lake City, Utah.
Underwriter—Cromer Brokerage
Co., Salt Lake City, Utah.
Chief
June
50
Consolidated
filed
24
cents)
rants
to
holders
the
Seaight, 115 Broad¬
(telephone BArclay 7-8448.)
Oil
(Irving
&
J.
Rice
$300,000
&
Co.)
$299,360
&
Co.)
purchase
to
None.
ing capital. Underwriter—J. A. Hogle & Co., Salt Lake
City, Utah.
Cavendish Uranium Mines Corp
Firing Corp
Debentures
Co.)
$300,000
due
—
construction program.
CALENDAR
Anthony Securities Corp.)
(Bids
Smith
New York, New
Hartford RR.
mon
stock (par 10 cents), of Which 170,000 -shares are
for the account of the company and 21,700 shares for the
Buffalo
D.
account of
selling stockholders. Price—$1.50 per shdre.
Proceeds—For mining expenses. Office—111
Broadway,
New York, N. Y.
Underwriter — Albert Kravitz Co.,
Washington, D. C.
Co.)
invited)
July 21
-
(Dillon,
CbSjsolidated
11:20
McDermott
Gas
&
Read
Lbfina
Central
Co.
$30,000,000
Inc.)
Preferred
Inc.) $11,000,000
&
& Co., Inc
Dominick
and
300,000
Ultrasonic
(A.
Uranium
Corp.
C.
Kidder,
Peabody
&
Allyn
Co.)
shares
&
Co.,
&
Inc.)
and
all
offices
Peter
Stanley
'
,
trisburg Steel
.
Morgan
&
$1,250,000
Co.)
Debentures
t*
$225,000,000
Co;)
&
'
i
•
(Monday)
Co
Common
i
(Reynolds & Co.)
about 200,000 shares
(Monday)
August 9
(Milton
D.
Midland
Blauner &
Gleich
Commercial
(A.
Bonds
$30,000,000
EDT)
noon
August 24
'
..
(Tuesday)
Kansas Power & Light Co.—
^
Bonds
(Bids to be invited) $7,500,000
^ara Mohawk Power Corp.
J
-i,—-Bonds
$25,000,000
(Bids to be invited)
,
*
JS"
August 25
(Wednesday)
v
Sb^thern California Edison Co
(Bias
200,000
to
be
invited)
September 28
shares
te§i7
(Thursday)
Bonds
$30,000,000
>
1
J.
Co.)
Corp.
Grayson)
(Tuesday)
Common
England Electric Systemto
stockholders—bids
to
be
invited)
Common
Co., Inc.)
King Copper Mining Corp.
(D.
to
Commoi)
Corp
Co.
(Offering
Private Wires
Bonds
RR.—
Common
-
July 22
Chicago
—Debentures
$25,000,000
EDT)
a.m.
ted States Steel Corp
.Common
Industrial Hardware Mfg. Co.„
Cleveland
shares
(Bids nqon EDT) $25,000,000
—Bonds
Co.__
Co.
&
(J. Ray)
(Dominick
Pittsburgh
85,000
July 29 (Thursday)
Illinois
T?.
(Bids
General Motors Acceptance Corp
Debentures
(Morgan Stanley & Co.) $150,000,000
San Francisco
—Common
—
Weeks)
&
Natural Gas Co.——
(Bids
(Wednesday)
Read
(Dillon,
Boston
-
$5,220,000
Colorado Interstate Gas Co
Philadelphia
-
Ph^fic Power & Light Co
Colorado Interstate
New York.
$JOO.OOO
(Tuesday)
August 2
-Equip. Trust Ctfs.
be
.
—„..Common
Sherman & Co.)
$6,180,000
Northern Pacific Ry
(Bids'to
$297,500
Inc.)
Co.—
Forge
$31,250
Equip. Trust Ctfs.
EDT)
noon
Common
—
Co.,
Co
(Hurnblower
$230,000
Haven &
(Bids
&
Sulphur Exploration
(L.
$18,000,000
EDT)
a.m.
Corp
Uranium
Common
E.
Bonds
11
(Morgan
(E.
(Monday)
Co
Boston Edison
(French
com¬
Underwriter—Dillon, Read & Co.
Inc., New York.
Common
Harley Patents, Inc
shares of
(7/21)
Interstate Gas Co.
1 filed $30,000,000 first mortgage pipe line bonds
July 1, 1974, and 110,000 shares of cumulative pre¬
ferred stock
(par $100). Price — To be supplied by
amendment.
Proceeds
To repay bank loans and for
July
,|c
(James
one
.
Colorado
$475,000
Automatic
Basic Atomics, Inc., New York
June 28 (letter of notification) 191,700
common stock¬
preferred and an
of
Price—55 cents per
Common
July 20 (Tuesday)
&
share
one
July 27
Co
if Banner Mining Co., Lordsburg, N. M.
June 30 (letter of notification) 25,000 shares of common
stock (par $1). Price—$5 per share. Proceeds—For work¬
(White
subscription by
of
Common
Stout
Gas
for
basis
additional share of preferred
unit. Proceeds—For develop¬
ment program and working capital and general corporate
purposes.
Office—Salt Lake City, Utah. Underwriter —
option
stock.
Debentures & Common
King," Libaire,
&
626,204
offered
be
on
Mining Co.
shares of preferred > stock (par
preferred stock purchase war¬
1,252,408
and
(Ta;»n
Otis, Inc. and Crerie & Co.)
Western Plains
A.
notification) 6,000,000 shares of capital
Salt
$40,000,000
Pinellas Industries, Inc
October 5
185,000 shares
<
Common
Preferred & Common
(Tuesday)
Indiana & Michigan Electric Co
$147,500
$300,000
■■
one
$300,000
Co
.
'.0' > '•
:
<
cent). Price—Three cents per share. Pro¬
ceeds—For mining expenses. Office—65 East 4th South,'
(par
Bonds
noon
v
'■
Cherokee Utah Uranium Corp.
(Monday)
River Uranium
(Gearhart
Industries,
July 26
Pipe Corp
Baltimore
(Bids
each $2
tal.
one
Consolidated Gas, Electric Light & Power Co.
class A common stock for
principal amount of debentures). Price—At par
(in units of $1,000 each). Proceeds—For working capi¬
$1
:
Inc., Oklahoma City, Okla.
May 10 filed 5,000,000 shares of class B non-voting com¬
mon stock (par 1 cent).
Price—$1 per share. Proceeds—.
For construction, operating expenses and working capi¬
Cherokee
Republic
Automatic Firing Corp., St. Louis, Mo. (7/20)
30 (letter of notification) $300,000 of seven-year
convertible debentures due Aug. 1, 1961 (convertible at
share
working capital. Office—1334 Oak Street, Kansas
Underwriter—Paul C. Kimball & Co., Chi¬
City 6, Mo.
cago, HI.
(Friday)
Plastic
July 19
•
one
a
of
ISSUE
(Lee Higginson Corp. ana P. W. Brooks & Co., Inc./
June
of
(with
NEW
Montrose Blvd., Houston, Texas.
rate
rate
Price—$8.10 per share to stockholders, $9 to
public. Proceeds—For payment of notes and accounts
payable and for working capital. Underwriters—Dallas
Rupe & Son, Dallas, Texas, and* Straus, Blosser & Mc¬
Dowell, Chicago, 111. (latter handling books).
Office—404 Empire Bldg., Den¬
Underwriter — Continental Securities Corp.,
ver,
held
at
standby).
—For mining expenses.
4307
of
Byrd Oil Corp., Dallas, Texas
New York, N. Y.
Atomic Power Uranium Corp., Denver, Colo.
June 25 (letter of notification) 600,000 shares of common
stock (par 10 cents). Price—50 cents per share. Proceeds
—For
on
sale
June 15 filed 260,000 shares of 6% cumulative converti¬
ble class A common stock
(par $7.50) to be offered for
new
Century Acceptance Corp.
May 27 (letter of notification) 58,000 shares of class A
common stock
(par $1). Price—$5 per share. Proceeds
June 24 (letter of
Weeks, New York.
Co., Bridgeport, Conn.
June
five
(par 10 cents).
stock
Bullard
stock
(Regulation "D") 230,000 shares of common
(Bids
11
a.m.
EDT)
Bonds
$15,500,000
Ifidiana & Michigan Electric Co
ksszr
-
-
(Bids
11
a.m.
EDT)
$4,000,000
Preferred
.
_
J
Volume 180
Number 5342... The Commercial and Financial Chronicle
,
(239)
+ Columbia Uranium, Inc., Seattle, Wash.
(letter of notification) 1,000,000 shares of
be
June 25
stock
mon
(par
cent).
one
Price—10
cents
supplied by amendment. Proceeds — To redeem on
July 29 $87,500,000
debentures and $40,000,000
3%% debentures and for working capital. Underwriter
com¬
share.
per
Proceeds—For
mining operations.
Office—1320
St., Seattle, Wash. Underwriter—None.
Main
stock
(par
stock
For
cent). Price—Four cents per share. Pro¬
mining expenses. Office—628 S. State St.,
City, Utah. Underwriter—Uranium Mart, Inc.,
one
ceeds—For
Salt Lake
146
S.
Main
Uranium
Mines,
Inc.,
Denver,
Colo.
(letter of notification) 9,996,000 shares of com¬
mon stock
(par one cent). Price—Three cents per share.
Proceeds—For exploration.
Office—704 Ernest & Cran-
stock
&
ner
bidding: Prob¬
Halsey, Stuart & Co. Inc.; Morgan Stanley
First Boston Corp.
Offering—Originally set
for May 11, but has been postponed because of
market
June
Wash.
Consolidated
Natural Gas Co. (7/27)
$25,000,000 of 24-year debentures due 1978.
Proceeds—To redeem on Sept. 1,
1954, a like amount of
organizational^expenses and working capital.
Business
—Manufacture and sale of linings and coatings to
pro¬
tect
continue
Danaho
June
14
shares of
tests.
Address—Route
Underwriter—None.
No.
4,
—
preferred
$625,000
common
stock
of
6%
debentures
and
375,000
(par 10 cents) to be offered in
uriits of $50 of debentures and 30 shares of
stock. Price
—$100 per unit. Proceeds—For additions and
improve¬
ments. Underwriter—None.
Danaho
June
14
Refining Co., Houston, Texas
filed
110,000 shares of common stock '(par 10
cents). Price—$2 per share. Proceeds—For additions and
improvements. Underwriter—None.
Emerson Mutual Funds,
Inc., New York
12 filed 200,000 shares of- capital stock
Price—At market. Proceeds—For investment.
July
(par $1).
^ Er^e Reinforced Plastic Pipe Corp. (7/16)'
July 7 (letter of notification) 200,000 shares of common
stock (par five cents)."
Price—$1.50 per share. Proceeds
—To
repay'advances
from Erie Forge & Steel Corp.
and for general corporate purposes.
Under¬
writers—Lee Higginson Corp. and P. W. Brooks &
Co.,
Inc., both of New York.
?
($65,000)
* Falstaff
Brewing Corp., St. Louis,-Mo.
(letter of notification) an unspecified fiiumber
of shares of common stock
(par $1) to be offered under
the company's Employees' Stock Purchase Plan.
Price—
June
29
At market.
the
Proceeds—To purchase necessary shares off
Office—3617 Olive St., St. Louis
market.
8,
I
Underwriter—None.
■
Mo.
I I
Financial Credit Corp., New York
|}
Jan. 29 filed 250,000 shares of 7%
cumulativeislnking
fund preferred stock. Price—At
ceeds—For
working
tain
Incr, New
& Co..
* Ge*-er»l
capital.
American
York
Oil
($2
shatfjei. Pro¬
Underwriter—E. 4 foun¬
par
per
of
Texas
market.
March
19 filed
stock|ain
|L'|
>
Gas
Corp., Baton Rouge, La.
100.000 shares of
common
;|
stock
the
tentatively been expected to be
(EDT) on June 15 at The
Hanover Bank, 70 Broadway, New
York, N. Y., but of¬
fering has been postponed. Meeting—Stockholders will
vote July 20 on new issue.
received
to
up
Gulf States
(:|ar
$5).
—
$75,000,000 15-year debentures due
1969.
;
*
,
.
Hotel, Inc*
Proceeds—To build and operate a luxury hotel and for
Office—Las Vegas, Nev.
Underwriter
—Lester L.
11:30
a.m.
Utilities Co.
\
LaFortune, Las Vegas, Nev.
ir Liberty Uranium Corp., Salt Lake City, Utah
July 1 (letter of notification) 3,000,000 shares of common
stock
(par one cent).
Price—Three cer^ts per share.
Proceeds—For mining operations.
Office—402 Darling
Bldg., Salt Lake City, Utah.
Underwriter — Uranium
Mart, Inc., 146 S. Main St., Salt Lake City, Utah.
Loma Uranium
Corp., Denver, Colo. (7/29)
1,000,000 shares of common stock (par 10
cents). Price—$1.25 per share. Proceeds—For explora¬
tion and development
costs, purchase of equipment, and
reserve for acquisition of additional
properties. Under¬
June
18 filed
writers—French &
Co., Houston, Tex., and Peter Mor¬
Co., New York.
gan &
Long Island Lighting Co.
June
17 filed 690,062 shares of common stock
(par $10)
being offered for subscription by common stockholders
of record July 7 on the basis of one new
share for each
eight shares held; rights to expire on July 22.
An ad¬
ditional 64,685
shares are being offered for subscription
by officers and employees. Price — $19.75 per share.
Proceeds—To
reduce bank loans incurred for construc¬
tion.
ton
•
Underwriters—Blyth & Co., Inc., The First Bos¬
Corp. and W. C. Langley & Co., all of New York.
Marion River Uranium Co.
(7/19-20)
June 14 (letter of
notification) 300,000 shares of common
cents). Price—$1 per share. Proceeds—
development expenses. Underwriters—Gearhart &
stock
(par
10
14 filed
For
1, 1984.
Otis, Inc., New York; and Crerie & Co., Houston, Tex.
$24,000,000 of first mortgage bonds due
Proceeds—To redeem $10,000,000 of 3%%
first mortgage bonds due 1981 and
$10,000,000 of 3%%
)f
dtjiel
1964
Prf&fe—To
Marsh Steel
first
mortgage bonds due 1983, and for general corpo¬
Underwriter—To be determined by com¬
petitive bidding.
Probable bidders: Halsey, Stuart &
rate purposes.
June
Corp., No. Kansas City, Mo.
(letter of notification) 2,850 shares of common
(par $10). Price—$17.50 per share.,Proceeds—To
21
stock
Marvin B. Marsh, President, the
selling stockholder.
Inc.; Lehman Brothers; Merrill Lynch, Pierce, FenOffice—101 East 9th St., North Kansas
& Beane and
City, Mo. Under¬
White, Weld & Co. (jointly); Salo¬
writer—The First Trust Co. of Lincoln, Neb.
mon Bros. & Hutzler and Union
Securities Corp.; Kuhn, j
Loeb & Co. and A. C.
Allyn & Co., Inc. (jointly); Lee
McCluskey Wire Co., Inc., New Haven, Conn.
Higginson Corp. and Carl M. Loeb, Rhoades & Co.
June 21 (letter of notification)
$95,000 of 5% debentures,
(jointly); Stone & Webster Securities Corp. Bids—Had
series A, due July 1, 1962, and $95,000 of 6%
debentures,
tentatively been expected to be received up to 11 a.m.
series B, due July 1, 1970. Proceeds—To
acquire assets
(EDT) on June 15 at The Hanover Bank, 70 Broadway,
and business of H. & T. McCluskey &
Sons, Inc. Office
New York, N. Y., but
offering has been postponed.
—527 Gfand Avenue, New
Haven, Conn.. Underwriter—
;*'• Harley Patents, Inc. (7/20)
Barnes, Bodell & Goodwin, Inc., New Haven, Conn. June 23 (letter of notification)
25,000 shares of capital
McDermott (J. Ray) & Co., Inc. (7/21)
stock (par 10 cents).
Price—$1.25 per share.„ Proceeds w
June 29 filed 300,000 shares of common stock' (par
$1).
—For working capital and general
corporate purposes.
Price—To
be
supplied by amendment.
Proceeds—To
Office—580 Fifth Ave., New York
36, N. Y.
Under¬
certain selling stockholders.
Business—Contracting and
writer—E. E. Smith Co., New York.
engineering services for inshore and offshore drilling.
• Hercules Cement
Corp.
Underwriters—Dominick & Dominick and Kidder, PeaJune 22 filed 40,555 shares of common stock
(par $10)
body & Co., both of New York.
being offered for subscription by common stockholders
Merchants Acceptance Corp., Worcester, Mass.
of record June 15, 1954, on the basis of one new share
June 28' (letter of notification) 8,474 shares of class A
for each tour shares held; rights to
expire on Aug. 4.
common stock
Price
(no par) to be offered in exchange for
$25 per share. Proceeds — For expansion and
modernization.
11,512 shares of commcn stock of Guardian Credit Corp.
Underwriters—Stroud & Co., Inc., Rey¬
on
the basis ojf 0.73 share of Merchants Acceptance
nolds & Co., and Newburger & Co., all of
Philadelphia,
stock for each Guardian share.
Offer expires July 30,
Pa.; and Warren W. York & Co., Allentown, P^
Co.
ner
7
■*
7
**
*
.
4
—
Hilo Electric Light Co.,
Ltd., Hilo, Hawaii
May 10 filed 25,000 shares of common stock being offered
for subscription by stockholders of record June 5 on the
basis
of
one
share
for
each
repay
ments.
•
July 19. Price—At
on
—To
four
par
shares
held.
Unsub¬
employees; rights to ex¬
($20 per share). Proceeds
bank loans and for additions and improve¬
14
cents),
filed
of
of
185,000 shares of
which 106,602 shares
company
and
78,398
Offerman, Vice-President.
Proceeds—To
common
are
to
shares
(7/22)
stock
be
tal
17
stock
for
Price—$3
account
per
share.
Underwriter—G. H. Walker
Merritt-Chapman & Scott Corp.
snares oi common
being offered for subscription by
of record June 25
on
five
(with
shares
will
held
expire
the basis of
stock (par $12.50)
common
one
new
stockholders
share for each
oversubscription privilege).
July 19.
Price—$21 per share.
$4,050,000 of 4M>% notes held by an
and for further expansion.
Under¬
an
on
company
writer—None.
for
of
share.
bank loans and pay taxes, and for
Underwriter—Milton D. Blauner & Co.,
Uranium, Inc.
(letter cf notification) 5,000,000 shares of capi¬
(par one cent). Price—Two cents per share.
Proceeds—For mining expenses.
per
June 4 filed 286,02r/
insurance
(par 50
offered
Inland
June
Price—$18
Co., Providence, R. I.
Proceeds—To retire
repay
working caiDtal.
Inc., New York.
1954.
&
Rights
Underwriter—May be named by amendment.
Industrial Hardware Mfg. Co., N. Y.
June
Offering—Postponed indefinitely^
General Motors Acceptance
Corp. (7/21
June 30 filed $75,000,000 10-year debentures
'
May
Louis
—
and
Stone
&
Webster
Securities
Corp.;
Lehman
Brothers and Equitable Securities Corp.
(jointly); Kuhn,
Loeb & Co.; Glore, Forgan & Co. and W. C.
Langley &
Co. (jointly). Bids—Had
account
|
Price
To be supplied by amendment. Proceeds
To
selling stockholders. Underwriter—Kidder.
PealJpdy &
Co.. New York.
the
ders:
pire
|
ployee's Savings Plan, each employee being entitled to
contribute up to J6% of his pay (matched
equally by
company) to plan, which would purchase
.General
at
scribed shares to be offered to
Co.
June 29 (letter of notification) an
undeterminedififimber
of shares of common stock to be offered
undid Em¬
open
stock
prevailing redemption prices of
$105, $105, and $105.75, respectively.
Underwriter—To
be determined by competitive
bidding. Probable bid¬
v
York.
June
Refining Co., Houston, Texas
filed
|
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
.Crown Uranium Co., Casper, Wyo.
June 11 (letter of notification)
2,400,000 shares of com¬
mon
stock (par 5 cents).
Price — 10 cents per share.
Proceeds—For mining expenses. Office—205 Star
Bldg.,
Casper, Wyo. Underwriter—Forbes & Co., First National
Bank Bldg., Denver
2, Colo.
if any, to
Underwriter—None.
Gulf States Utilities Co.
bidding. Probable bidders: Halsey,
White, Weld & Co. and Paine, Webber,
Jackson & Curtis
(jointly); Morgan Stanley & Co. and
The First Boston Corp. (jointly). Bids—To be
received
up to 11:30 a.m.
(EDT) on July 27 at 30 Rockefeller
Plaza, New York 20, N. Y.
'
against corrosion.
deter¬
mined by competitive
Stuart & Co. Inc.;
ance,
Underwriter—None.
ir Guidon Corp., Elkton, Md.
July 6 (lqjtter of notification) 20,000 shares of common
stock.
Price-^rAt par ($10 per share).
Proceeds—For
June 25 filed
<,
working capital.
• Green River. Uranium Co., Inc., Seattle, Wash.
(letter of notification) 1,000,000 shares of com¬
stock. Prfc&—Five cents per share. Proceeds—For
mining expenses/ Office — 1810 Smith Tower, Seattle,
(jointly). Bids—To be re¬
July 19, at company's office
»•.
May 17 filed 500,000 shares of preferred capital stock
(par $9.90) and 500,000 shares of common c&pital stock
(no par—100 stated value) to be offered in units of one
preferred and one common share. Price—$10 per unit.
For oil and
June 29
Baltimore, Md.
^Custer Channel Wing Corp.,
Hagerstown, Md.
July 7 (letter of notification) 1,950 shares of class B
common
stock (par $2).
Price—$30 per share.
Pro¬
ceeds—To repay loans, notes and current
liabilities; bal¬
New
Las Ve'gas Continental
mon
Inc. and Alex. Brown & Sons
ceived up to noon
Hagerstown, Md.
_
Utah.
Underwriter—To be determined by com¬
bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; White, Weld & Co. and The First
Boston Corp.
(jointly); Kuhn, Loeb & Co.; Harriman Ripley & Co.,
Underwriter—To be
—
,
*
King Copper Mining Corp. (7/22)
June 2 (filed under Regulation
"D") 295,000 shares of
capital stock (par $1)., Price—50 cents per share.
Pro¬
ceeds—For expansion, diamond
drilling, working capital
and general corporate
purposes.
Office—1519 Pine Ave.,
West, Montreal, Canada.
Underwriter—D. Gleich Co.,
Uranium Co.
&
,
*
•
Mountain
penditures.
1978.
Office —18 Clinton Street, Brooklyn, N. Y.
Underwriter—20th Century Pioneer Securities
Co., New
York, N. Y.
/
'
purposes.^
mining activities. Office — 235
Bldg., Salt Lake City, Utah. Underwriter—Rocky
Securities, 508 Atlas Bldg., Salt Lake City,
Atlas
petitive
debentures due
com¬
(letter of notification) 3,000,000 shares of com¬
(par one cent). Price — 10 cents per share.
Proceeds
redeem 37/8%
series Y bonds and the balance used for
construction ex¬
3%%
Co., Inc.
(letter of notification) 150,000 shares of com¬
(par 10 cents). Price—25 cents per share.
Proceeds—For working capital and
general corporate
stock
mon
stock
mon
—Approximately $24,900,000 to be used to
on
11
River Oil
Pro¬
Kendon Electronics
be
Green
com¬
April 21
supplied by amendment.
Proceeds—For
general corporate purposes.
Underwriter—None.
set.
Inc., Salt Lake City, Utah
Underwriter—Cayias Bro¬
share for each four shares held.
new
(one cent per share). Proceeds
Underwriter—None.
kerage Co., Salt Lake City, Utah.
one
one
expenses.
June 14 (letter of
notification) 10,000,000 shares of
mon stock (par 1
cent). Price —3 cents per share.
ceeds—For mining expenses.
Jacquith, Inc., Denver, Colo.
the basis of
mining
Interstate Uranium,
sub¬
Gray Manufacturing Co., Hartford, Conn.
10 filed 58,119 shares of common stock (par $5)
be offered for subscription by common stockholders
on
^Consolidated Gas, Electric Light & Power Co.
of Baltimore
(7/19)
June 24 filed-$40,000,000 of first
refunding mortgage
sinking fund bonds, series Z, due July 15, 1989. Proceeds
(EDT)
its
of
Uranium
(par
Price—To
& Co.; The
at
certain
June
to
writer—To be determined by competitive
date
to
cent). Price—Three cents per share.
Proceeds—For mining expenses. Office—345 South State
St., Salt Lake City, Utah. Underwriter—Carroll, Kirch-
able bidders:
new
advances
or
—
Mining Corp.
(letter of notification) 9,996,000 shares of
June 21
mon
'Consol. Edison Co. of New
York, Inc.
April 7 filed $50,000,000 of first and refunding mort¬
gage bonds, series K, due May 1, 1984. Proceeds—To be
applied towards cost of redeeming $27,982,000 New York
Steam Corp. first mortgage bonds and
$25,000,000 West¬
chester Lighting Co. general
mortgage bonds. Under¬
No
in
—For
/
Geronimo
Bldg., Denver, Colo.
Underwriter—Carroll, KirchJaquith, Inc., Denver, Colo.
conditions.
Office
111.).
cago,
&
ner
June 29 (letter of
notification)
mon stock. Price—At
par
Philadelphia, Pa. Underwriters —
Townsend, Dabney & Tyson; Schirmer, Atherton & Co.;
F. L. Putnam & Co., Inc.; Shea & Co., Inc.; and Hodgdon
& Co. (all of Boston, Mass.); The State Investment Co.
(Portland, Me.); and McDougal & Condon, Inc. (Chi¬
June 21
mer
investments
sidiaries.
St., Salt Lake City, Utah.
Commercial
^ International Uranium Corp.,
Monticello, Utah
10,000,000 shares of com¬
,
Corp.
30 (letter of notification) 29,600 shares of common
(par $1). Price—$10.12% per share. Proceeds—
June
Inc.
notification) 5,000,000 shares of capital
& Co., New York.
East, Salt Lake City, Utah.
Underwriter—Rocky Moun¬
tain
Securities, 508 Atlas Bldg., Salt Lake City, Utah.
Waterworks
General
Comanche Uranium Co.,
June 17 (letter of
Stanley
—Morgan
35
Office—240 S. 2nd St.,
ir Midland Commercial Corp. (7/22)
July 6 (letter of notification) 3,000 shares of $6 cumula¬
tive convertible preferred stock (par $20) and
15,000
shares of common stock (par 10 cents) to be offered in
units of one preferred and five common shares.
Price
—$100 per unit.
Proceeds—For working capital. Office
—82 Beaver St., New York, N. Y. Underwriter — .A- J.
Grayson, New York.
Continued
on vaae
36
36
The Commercial and Financial Chronicle...
(240)
Continued from page
*
common and/or preferred stock held.
($100 per share). Proceeds—To reduce
ings.. Underwriter—None.
Bronx, N. Y.
Inc.,
May 17 filed 900 shares of common stock (no par). Price
—$1,000 per share. Proceeds—To erect a hospital in the
Borough of Paramus, N. J., and for working capital, etc.
Underwriter—None.
Mission Indemnity Co., Pasadena,
Price—At
time
(par 65
stock
Offering
—
Postponed in¬
★
Co., Salt Lake City, Utah
Monterey Oil Co., Los Angeles, Calif.
Feb. 2 filed 257,333 shares oi common siock
Underwriter—None.
(par $1).
'
common
Getty, President.
of
10-cent
units of two
in
share.
Price—$3
per
f'
,
—
Industries, Inc.
16
be
par
preference
unit. Pro¬
Three-In-One Gold Mines
Corp., Reno, Nev.
May 3 (letter of notification) 1,993,333V3 shares of capi¬
tal stock (par one cent). Price—15 cents per share. Pro¬
ceeds—For mining expenses.
Office—139 N. Virginia
St., Reno, Nev.
(7/19)
Tricait Petro-Chemical
Corp., Montreal, Canada*
common stock (par $1).
price at time of
offering. Proceeds—For development costs and general
corporate purposes. Underwriter — To be named by
April 30 filed 500,000 shares of
Price
Proceeds—To construct
Office—34th
Street and
&
filed
Co. and
(letter of notification)
Bldg.,
*
'
■'
•
„
'V, ;
*
Fairfield,
Inc.,
Plywood Corp., Portland, Ore.
July 1 (letter of notification) 25 shares of common stock
to be offered for subscription by stockholders and em¬
ployees.
Price—At par ($2,500 per share).
Proceeds—
For working capital.
Office—1500 S. W. Harbor Drive,
Portland, Ore.
Underwriter—None.
★ Mulnomah
★ United States Steel Corp. (7/29)
July 12 filed $300,000,000 serial debentures .maturing
from Aug. 1, 1955 to Aug. 1, 1964, inclusive, of which
$225,000,000 are to be goffered to the public and $75,000,000 are to be sold on or before Aug. 4, 1954 to United
States Steel and Carnegie Pension Fund, trustee of a
pension trust.
Price—To be supplied by amendment.
Proceeds—For property additions and replacements and
for working capital. Underwriter—Morgan Stanley &
Co., New York.
,^\M
.
■
<
Minier,
416
W.
I2th
i\
•
St.,
U. S. Thermo Control Co.
Loveland, Colo.
June 28 (letter of notification) 25,000 shares of common
stock (par $1). Price — At market. Proceeds — To two
Somerset
Telephone Co., Norridgewock, Me.
June 11 (letter of notification) 2,200 shares of capital
stock. Price—At par ($5 per share). Proceeds—For ex-'
pansion and new equipment. Underwriters—E. H. Stan¬
ley & Co., Waterville, Me.; and Clifford J. Murphy Co.,
Portland, Me.
Natick Industries, Inc., Natick, Mass.
March 10
(letter of notification) 58,800 shares of com¬
mon stock (par $1).
Price—$5 per share. Proceeds—For
working capital, etc. Underwriter—J. P. Marto & Co.,
selling stockholders.
Uranium Industries,
mon
Proceeds—For
eum
Southern Materials Co., Inc., Norfolk, Va.
June 25 filed 156,250 shares of common stock (par $2).
Price—$9.50
Mexico Copper
Corp., Carrizozo, N. M.
198,000 shares of capital
stock (par 25 cents). Price—50 cents per share. Proceeds
—For acquisition of power plant, improvement of mill,
development of properties and general corporate pur¬
poses. Underwriter—Mitchell Securities, Inc., Baltimore,
writer—Bache
(letter of notification)
today (July 15).
Co., New York.
,
Offering—Expected
offered in units of
North Electric
Manufacturing Co.
June 16 (letter of notification) 20,322 shares of common
stock (par $10), being offered for subscription by com.
mon stockholders of record July 1, 1954; rights to expire
on
Aug. 2, 1954. Price—$12 per share.
Proceeds—To
repay loans. Office—501 S. Market St., Galion, CL Un¬
—$10.01
per
Securities Bldg.,
one
equip
a
Co., Miami, Fla.
■/,
r
'
Vos&Oil Co., Newcastle, Wyo.
(letter of notification) 48,730 shares of class B
common
Faithful
<
luxury hotel. Underwriter—None.
June 28
stock (par
$1). Price—$3.75 per share. Proceeds
To increase capital and surplus. .Office—8628 N. E.'2nd
Ave,, Miami, Fla. Underwriter—A. M. Kidder & Co.,
Miami, Fla.
'
\
.
.
:
/
★ Sulphur Exploration Co., Houston, Texas (7/26)
July 6 (letter of notification) 300,000 shares of common
stock (par one cent).
Price—$1 per share.
Proceeds—
For mining expenses.
Office—1416 Melrose Bldg., Hous; tori, Tex.
Underwriter—L. D. Sherman & Co., New
York, N. Y.
'
★ Pacific Power &
Light Co. (8/9)
July 2 filed $30,000,000 first mortgage bonds due Aug. 1,
1984, Proceeds—$24,934,542 to be used to refund all out¬
Sun Oil Co., Philadelphia, . Pa. standing bonds of Mountain States Power C6. (merged -1 April 15' filed a maximum of 139,662 shares of common
with Pacific'Power & Light Co.), and for new construc¬
stock (no- par), to -be- offered for possible public sale
tion..
Underwriter—To be determined by competitive
during the period. July 1, 1954-to June 30, 1955. Price—
bidding. Probable bidders; Haisey, Stuart & CovTnc.; •' At market, Proceeds^-To selling stockholders. Underwriter—None. .The shares will be sold through.brokerage
BIyth & Co., Inc. and White, Weld & Co. (jointly); Kid¬
houses.•.
der,- Peabody 8c ■ Co.; Union Securities Corp.; Lehman
V-,^ . ■'
~
1
s
Hutzler
9
a.m.-(PDT)
on
>
'
Aug. 9.
-
Pacific Telephone & Telegraph Co.
' i
May .7,filed 1,004,603 shares of common stock to be of¬
fered for subscription by common and preferred-stock¬
holders in the ratio of
one
share for each
seven
shares
-
Taylorcraft, Inc^ Conway, Pa.
■
April 30 (letter of notification) 150,000 shares- of 6%
Nov. 20,
•
creditors.. Price—At par ($2 per share).
working capital.
burgh, Pa.
Underwriter—Graham
Proceeds—For
& Co., Pitts¬
Pipe Line Co* Dallas, Tex.
1952. filed $29,000,000 12-year 6% debenture
due Dec. 15,
-
/cumulative convertible preferred stock, of which 100000 shares will be offered to public and 50,000 shares to
'
given).
★ West Bend Aluminum Co^ West Bend, Wis.
July 6 (letter of notification) 4,300 shares of class B
common stock
(par $5) to be offered for subscription
by -certain" employees. -Price^-$1TL08 per share.
Pro*
ceeds—To a former employee?
Office—1-92 Island Ave.*
West Bend, Wis. Underwriter—None.
"
West Coast
-
Bear, Stearns 8c Co. and Salomon Bros., &
(jointly). Bids—Expected to be received up to
,
July 1 filed 336,800 shares of common stock Apar $1).
Price—To be related to market; Proceeds—To *40 selling
stockholders. Underwriters—John R. Lewis, Inc., Seattle,
Wash.; and Coburn & Middlebrook, Inc. and Glidde%
Morris & Co., both of New York. The registration state-*
ment also covers 2,413,200 shares of ebmmon stock which
may be offered from time to time (but do definite plans
are
v
Brothers,
Corp., Denver, Colo.
(letter of notification) 1,500,000 shares of common
stock (par one cent).
Price—10 cents per share?
Proceeds—For mining expenses.
Office—718 Majestic
Building, Denver, Colo. Underwriter—Amos C. Sudler
& Co., Denver, Colo.
June 18
share 6f each class of stock. Price
State Fire & Casualty
Seattle, Wash.
Utco Uranium
unit. Proceeds—For purchase of land and to
construct and
Moab Uranium^ Corp.,. Provo, Utah
(letter of notification) 1,200,000 shares of common stock
(par one cent).
Price—25 cents per share.
Proceeds—Fdr mining operations.
Office—47 N. Uni¬
versity Ave., Provo, Utah.1 Underwriter—A. J. Shapiro,
-
★ 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
Md.
mining expenses.
Underwriter—Petrol¬
Corp., Oklahoma City, Okla.
June 28
share.
&
Finance
★ Utah
Proceeds—To Clyde F. Gregson,
President, and four other officers of company. Under¬
per
Inc., Grand Junction, Colo.
(letter of notification) 3,000,000 shares of com¬
stock (par one cent).
Price—10 cents per share.
June 23
★
Boston, Mass.
Hendershot.
D.
stockholders. ' Price—At par
($10 per share). Proceeds—To increase surplus. Office—•
2565 St. Mary's Ave., Omaha, Neb. Underwriter—Stewart, Smith & Co., Inc., New York, N. Y.
.
Underwriter—Lon
Insurance Co., Omaha, Neb*
(letter of notification) 25,000 shares of common
stock to be offered first to
*
Scott Uranium, Inc., Loveland, Colo.
<
»
(letter of notification) 24,624 shares of class B
common stock (no par).
Price—$10 per share. Proceeds
For mining expenses. Office—1309 Garfield,. Loveland,.
Mic|-South Securities Co.,
Memphis, Tenn.
United Benefit Fire
June 14
-
June 24
Colo.
Uranium, Inc., Casper.,- Wyo. '
;
June 28 (letter of notification) 30,000,000 shares of com¬
mon stock, -Price—At par
(one cent per share).
Pro¬
ceeds—For mining expenses.
Office—300 Consolidated
Royalty Bldg., Casper, Wyo.
Underwriter — Glen E.
writers—Leftwich & Ross and
j
' "•
derwriter—None.
St.,
ceeds—For mining expenses.; Office — Walker Bank
Bldg., Salt Lake City, Utah. Underwriter—Whitney Investment Co., Salt Lake City, Utah,
Springs, Colo. Underwriter—Underwriters, Inc., Sparks,
Nev.:1-
Fountain
'i
;
Uranium, Inc.
(letter of notification) 30,000 shares of common
(par $1). Price—$10 per share. Proceeds—To 35
selling stockholders. Office — Memphis, Tenn. Under¬
Underwriter—None.
Royal Uranium Corp., Salt Lake City, Utah
sometime in August.
Mountain States
Office—210
Union Compress & Warehouse Co.
stock
June 14 (letter of notification) 2,500,000 shares of capital
stock (par five cents). Price—Six cents per share. Pro¬
Haisey, Stuart & Co. Inc.; Dean Witter & Co. and Drexel
& Co. (jointly); Morgan Stanley & Co. Bids—Expected
May 18 (letter of notification) 30,000,000 shares of com¬
mon stock. Price—At par (one cent per share). Proceeds
—For mining expenses. Office—1117 Miner St., Idaho
★
June 25
Proceeds—To acquire
Conn.
June 29 (letter of notification) $200,000 of 15-year 6%
convertible debentures (convertible prior to July 16, 1964). Price—At par. Proceeds—To repay short-term'
loans- and for working capital. Office—1350 Kings High-,
way, Fairfieldy Gonnv Underwriter—None.
.
★ Mountain States Telephone & Telegraph Co.
July 9 filed $20,000,000 of 35-year debentures due Aug. 1,
19$9. Proceeds—To repay advances from parent Ameri¬
can Telephone & Telegraph Co. Underwriters—To be de¬
termined
by competitive bidding. Probable -bidders:
to he received
properties.
McKelvy & Co., both of Pittsburgh, Pa.
Corp., Cambridge, Mass (7/21)
shares of common stock (par $5).
Price—To be supplied by amendment.
Proceeds—For
working capital. Underwriter—A. C. Allyn & Co., Inc.,
Chicago, 111.
both of
★ Rolock,
Underwriter—
Salt Lake City, Utah.
Corp., New York.
Hunter Securities
resort
Hot Springs, Ark.
the market
June 28 filed 200,000
Co., Inc., New York.
additional
1,450,000 shares of com¬
5 cents). Price—20 cents per share. Pro¬
ceeds—For mining expenses.
Office—308-9 Phillips Pe¬
to
Ultrasonic
(par five cents).
Price—25 cents per share.
mining expenses.
Underwriter—Teden
lative preferred Stock (par $100).
related
dividends; and of stock, $3 per share.
Proceeds-^-For
working capital.
Underwriters—Arthurs, Lestrange &
★ Resort Management, Inc., Hot Springs, Ark.
July 6 (letter of notification) 1,500 shares of 8% cumu¬
Morris & Co., and James E. Reed
be
★ Trip-Charge, Inc., Pittsburgh, Pa.
July 8 (letter of notification) $150,000 of 6% convertible
sinking fund debentures dated July 1, 1954 and due
June 30, 1969, and 10,000 shares of common stock (par
$1).
Price—Of debentures, par ($30 each), and accrued
Development, Inc., Albuquerque, N. M.
Proceeds—For
Harrison S.
To
—
amendment.
—
issued and
stock
"fexas
> v
forts" basis.
★ Republic Uranium Corp., Moab, Utah (7/J26)
June 28 (letter of notification) 1,190,000 shares of com¬
mon
Sulphur Co., Houston,
filed
21
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 4% shares held; and 70,000 shares
are for account of certain selling stockholders. Price—To
be supplied by amendment.
Proceeds—For exploration
and drilling, and payment of bank loans and advances.
Underwriter—Vickers & Co., New York, on a "best ef¬
908,967 shares of common stock (par $1)
sold at $1 per share upon exercise of
outstanding subscription warrants (dates advanced to
period July 15 through Oct. 15). Proceeds—For general
corporate purposes. Underwriter—None. Statement ef¬
fective July 6.
to
stock (par
★ Old
shares
300,000
be offered
to
one
Pinellas
June
Mountain Mesa Uranium Corp.
★
June
Co., P. G. Christopulos & Co., W. D. Nebeker
Co., Thornton D.
New
and
stock
and
Pubco
Co., all of Salt Lake City, Utah.
June 14
Paul
Avenue, North, Petersburg, Fla.
Underwriter
Eisele & King, Libaire, Stout &
Co., New York.
No general offer
St., Salt Lake City, Utah. Underwriters
j,
J.
22nd
★ Mount Peale Uranium Corp., Salt Lake City, Utah
June 29 (letter of notification) 4,999,000 shares of com¬
mon stock (par three cents). Price—Six cents per share.
Proceeds—For mining expenses. Office—343 South State
troleum
Proceeds—To
of stock, $4.75 per share.
plant and for working capital.
of'their immediate families (150,458); and The Lehman
Corp. (106,480).
planned.
mon
Texas International
Exchange, and may be of¬
firms or corporations in off-
persons,
and
Price—At the market price then prevailing on the New
York Stock Exchange, or through special offerings or
secoidary distributions. Proceeds—To Lehman Borthers
(400 shares); partners of Lehman Brothers and members
June 28
Underwriter—None.
to
(letter of notification) $250,000 of 8% convert¬
ible debentures due 1964, and 9,975 shares of class A
common
stock (par $1).
Price—Of debentures, at par;
Propeeds—For mining expenses.
Office — 530 Judge
Building, Salt Lake City, Utah. Underwriter—James E.
Heed Co., Salt Lake City, Utah.
Brothers &
time
June 15
(letter of notification) 2,000,000 shares of capi¬
tal stock (par four cents). Price—Six cents per share.
Jufie 21
&
(par $4).
from
York.
Monarch Uranium
„
offered
ceeds—To retire 40,526 shares of outstanding preferred
stock, for power line extensions and electric transform¬
ers, equipment and machinery, exploration and working
capital. Underwriter—Barret$ derrick & Co., Inc., New
($3,475,000), to repay $750,000 bank loans and the bal¬
for construction program.
Underwriter—Kidder,
Co., New York.
be
Mining Corp., Santa Fe, N. Mex.
600,000 shares of cumulative sinking fund
stock
common
ance
Peabody &
definitely.
to
filed
9
snares
outstanding first preferred stock
redeem
sales.
preference
50,000 shares of cumulative preferred
(par $100). Price—To be supplied by amendment.
Proceeds—To
Shares
market.
Petaca
filed
23
Corp.
100,000 shares of common stock
specific
the-floor
June
Public Service Co.
Missouri
April
★ Texas Glass Fibre Corp., Dallas, Texas
(letter of notification) 9,620 shares of common
stock (par $5) to be offered to 50 persons holding credi¬
tors' claims against company on a dojUar-for-dollar basis.
Office
628 Fidelity Union Life Bldg., Dallas,, Tex.
Underwriter—None.
be offered first to stockholders and to gen¬
eral public. Price—$2 per share. Proceeds—To increase
capital and surplus. Underwriter—None.
to
cents)
to
1
June 30
the New York Stock
on
fered
1
Oil
t
—
June 25 filed
Calif.
600,000 shares of common stock
March 29 filed
Western
Pacific
Price—At par
bank borrow¬
Thursday, July 15, 1954
■it.
;n>
*!•**.-
.rvr-iHY
t
of
35
Hospital,
General
Midland
J
*•
:# •<-. >"•
-
1964, and 580,000 shares of
common
$55,000,000 first mortgage bonds to be used to
>
stock-
(par 50 cents) to be off ered in units of one $50 deben¬
ture and one share of stock.
Price—To be supplied by
amendment. Proceeds?—From sale of units and 1,125,006
additional Stares of common stock and private sales of
build a
1,030 mile-crude oil pipeline.- Underwriters'— White,
Weld & Co.
York.
and
Union Securities Corp., both of New
Offering—Postponed indefinitely.
..
yolume 180
Number 5342... The Commercial and Financial Chronicle
(241)
West Coast Pipe Line Co., Dallas, Tex.
Colorado-Western Pipeline Co.
Nov. 20, 1952 filed 1,125,000 shares of common stock (par
60 cents). Price—To be supplied by amendment. Pro¬
March 5 it
ceeds—Together with other funds, to be used to build
pipeline. Underwriters—White, Weld & Co. and Union
Securities Corp., both of New York.
Offering—Post¬
000
Plains Oil
& Gas
Co.
(7/19-23)
mineral
interests,
United States and
leases
royalties
in
Uranium
struction.
the
of
cumulative
June
the
authorized
shares
when
enable
to
the
increase
stock from 4,000,000 to 5,000,000
to sell additional shares
will probably be made to
American Telephone &
June 30 it
June
1
Telegraph Co.
reported the company is planning a huge
issue of straight debentures.
Underwriter—To be de¬
termined
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc. and The First Boston Corp.
was
(jointly); Morgan Stanley & Co.
Arkansas
Feb.
22
it
Louisiana
Gas
Co.
reported Cities Service Co. may sell its
holdings of 1,900,000 shares of this company's stock.
If
sold at competitive bidding, bidders may include
was
for
redeem
construction
Underwriters—To
be
de¬
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Leh¬
man; Brothers,
Stone & Webster Securities Corp. and
White, Weld & Co. (jointly); Blyth & Co., Inc., Equit¬
Securities
Corp.
Central
and
Republic
Co.
(jointly).
[ n',:/.*-i'.} '
Aug. 24.
.■
Bids—Expected about
V
y
Central of Georgia Ry.
Bids
Co.
Inc.; Salomon Bros. & Hutzler; Kidder, Peabody
& Co.; Blair, Rollins & Co. Inc.
;
Central Illinois Electric & Gas Co.
Dec. 9 it
was announced
company intends to offer and
sell around the middle of 1954 an issue of $4,000,000 firsl
mortgage bonds. Proceeds—To repay bank loans and for
new construction.
Underwriters—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
&
plans
company
common
stock.
to
Price—$1
issue
per
and
share.
Roman and
Johnson, Fort Lauderdale,
Fla., and possibly Aetna Securities Corp., New York.
—
Co.
Inc.; Stone & Webster Securities Corp.; Kidder.
Peabody & Co. and White, Weld & Co. (jointly).
City Title Insurance Co., N. Y. C.
May 20, it was announced that company is planning to
issue and sell not to exceed
$1,000,000 of new preferred
stock.
Proceeds—For working capital.
Underwriter—
Chilson, Newberry & Co., Inc., Kingston, N. Y.
General
June
15
Beverage Canning Co. of Tennessee
it
was
reported company plans to sell around
of common stock.
Price—$1
300,000 to 400,000 shares
per share.
Underwriter
—
Elder
&
Tenn.
and Stone & Webster Securities
Pandick Press, Inc. is backed by
direct
its
more
than
The founders of the firm still actively
daily operations and
are
available to discuss
and sell
bonds.
is planning to issue
$2,000,000 of 15-year first mortgage convertible
Underwriter—Equitable Securities Corp., Nash¬
ville, Tenn.
printing requirements at all times.
is
one
of the
reasons
June
28
it
was
reported company plans to issue and
200,000 shares of common stock. Underwriter
sell about
—Reynolds & Co., New York. Registration—Planned
about July
15.
Hudson
June
some
28
it
new
for
guarantees the finest and most complete printing service available.
hndie/rfiress, Inc.
Euabliibtd I92i
32 THAMES ST., NEW YORK *
WOrth 4-2900
71 CUNTON ST., NEWARK, K.1
NY 1-3167
MArkef 3-4994
November.
,
"V•
;
was
common
stock,
April 30, 1954, there were outstanding 2,286,784 shares.
Underwriters—Previous common stock
offering, in April,
1953, was underwritten by Blyth & Co., Inc. and J. J. B«
Hilliard & Sons and associates.
Long Island Lighting Co.
April 20 it was announced company plans later in 1954
to
issue $20,000,000
mortgage bonds.
Proceeds
.To
—
finance construction program.
Underwriter—To be de¬
termined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; W. C. Langley & Co.; Blyth
Co., Inc. and The First Boston Corp. (jointly); Smith,,
Barney & Co.
&
•
Louisville & Nashville RR.
sell
mortgage
610,000
-
reported that the company may issue and
$30,350,000 of new first and refunding
bonds due 2003.
Proceeds—To retire $24,-
was
late in
1954
Atlanta,
bonds due May
Knoxville
&
Cincinnati
reported
Division
1, 1955, and for general corporate
4%
pur¬
Underwriters—May be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co.; White, Weld & Co. and Salomon
Bros. & Hutzler (jointly).
1 ,»
IVIcBride Oil & Gas Corp.
23 it was announced 1,500,000
i
*
shares
of
capitalpublicly offered this month. Price—$1 per
share. Proceeds—To finance improvements. Underwriter
—Kramer, Makris & Co., Houston, Tex.
stock will be
Metropolitan Edison Co.
;
Dec. 16 it
construction program.
Underwriters—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; White, Weld &
Co.; Kidder, Peabody & Co,
•
(jointly); Kuhn, Loeb & Co.
Bros. & Hutzler
and Salo¬
(jointly).
Montana-Dakota Utilities Co.
July
it
8
reported that company plans to issue
August $12,000,000 of first mortgage bonds.
Proceeds—To repay bank loans and for new
construc¬
and
sell
tion.
Pulp & Paper Co.
was
was
in
Underwriter
To be determined by
competi¬
bidding. Probable' bidders: Halsey,; Stuart & Co.
Inc.; Blyth & Co., Inc., White, Weld & Co. and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Blair, Rollin*
—
tive
company
be
considering
financing. Underwriter—Lee Higginson Corp.,
may
New York.
Co. Inc.
&
'•
* Illinois Central RR. (7/29)
July 7 it was announced company plans to issue and sell
$25,000,000 of Consolidated mortgage bonds, series G, due
Aug. 1, 1980. Proceeds—To redeem a like amount of
series D Consolidated 4x/2s due 1982 now held
by a group
of insurance companies. Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Kuhn, Loeb &
Co., Harriman Ripley & Co.
Inc. and Union Securities Corp.
(jointly). Bids—To be
received up to noon (EDT) on July 29.
•
;rVrJ-
National Fuel Gas Co.
June
July 8 it
Michigan Electric Co.
was announced
(10/5)
^
25,
company
common
L.
A.
President, announced that the,
to offer additional common stock/ to
stockholders this Fall on a l-for-10 basis
(with
tion
program.
Underwriter
common
on
stockholders
l-for-10
a
9,108,824
common
program
of subsidiaries.
Co.
(jointly); The First Boston Corp.; Harriman
Ripley & Co. Inc.; Kuhn, Loeb & Co.; (2) for preferred—
The First Boston Corp.; Smith, Barney &
Co.; Lehman
Brothers;
Union
Securities
Corp.
Registration —
Planned for Sept. 3.
Bids—Tetnatively expected to be
received up to 11 a.m. (EDT) on Oct. 5
International Bank of Reconstruction and
June
23
it
was
("World Bank")
reported
this Bank
sell late this
Kansas
City Power & Light Co.
March 8 it was announced that
company may sell in-thi
latter part of 1954 $16,000,000 first mortgage bonds. Pro¬
ceeds — To repay bank loans and for new construction.
Underwriters—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Lehman
Brothers and Bear, Stearns & Co. (jointly); Kuhn, Loeb
& Co.,
Salomon Bros. & Hutzler and Union Securitiei
Corp.
(Jointly);
Glore, Forgan & Co.; Blyth & Co., Inc.
and The First Boston Corp.
(jointly); White, Weld & Co.
and Shields & Co. (jointly); Harriman
Ripley & Co., Inc.,
Equitable
Securities
April 27 aprpoved
Corp.
new
Meeting—Stockholders
financing.
:
*
Registration—Ex¬
shares.
Fall
There
to
additional
are
Proceeds
offer
to
common
outstanding
For
—
Underwriters
—
construction
To
be
deter¬
mined
by competitive bidding. Probable bidders: Blyth
& Co., Inc., Lehman Brothers and
Bear, Stearns & Co*
(jointly); Carl M. Loeb, Rhoades & Co., Ladenburg,
Thalmann & Co. and Wertheim & Co.
(jointly); MerrjU
Lynch, Pierce, Fenner & Beane, Kidder. Peabody .& Co.
and
White, Weld,& Co. (jointly).' Bids—Tentatively
expected to be received
on
Sept. 28.
*
'
"
New Jersey Power &
Light Co.
Dec. 16 it was reported this
company tentatively plana
Issue and sale in 1954 of about
$3,000,000 first mortgage
bonds due 1984. Proceeds—To repay bank loans and
for
new
may
next
basis.
plans to sell $16,500,-
company
Proceeds—For construc¬
None.
New England Electric System
(9/28)
April 29 it was announced company plans
stock
first
—
pected in October, 1954.
mortgage bonds due 1984 and 40,000 shares of
cumulative preferred stock (par $100).
Underwriter—
000
r\.j
Brown,
plans
oversubscription privilege).
an
its
Indiana &
about $100,000,000 additional bonds. Underwriters
—Morgan Stanley & Co. and The First Boston Corp. and
by Pandick"
or
reported company plans to issue and sell
stockholders some additional common
either4 on a l-for-9 or an a l-for-10 basis. At
its
to
mon
year
"Printed
ceived in October
(8/2-6)
associates.
IXPIRIENCE
Co., Inc.;
Kidder, Peabody & Co. and White, Weld & Co.
(jointly);
Equitable Securities Corp. Bids — Expected to be re¬
and Drexel & Co.
Harrisburg Steel Co.
Development
your
was
reported company plans to issue and sell
$15,000,000 first mortgage bonds, series F. Underwrite*
be determined by
competitive bidding. Probable
bidders: Halsey, Stuart & Co.
Inc.; Harriman Ripley &
Co. Inc.; The First Boston
Corp. and Lehman Brothers
(jointly); Union Securities Corp. and Merrill
Lynch,
Pierce, Fenner & Beane (jointly); Blyth &
—To
was reported
company may sell in 1954 about
$3,500,000 first mortgage bonds due 1984. Proceeds—Fox
Green River Steel Corp.
June 9 it was reported company
&
30 years of experience.
Kentucky Utilities Co.
June 21 it
June
by competitive bidding. Probable bid¬
ders: (1) For bonds—Halsey, Stuart & Co.
Inc.; Union
Securities Corp., Goldman, Sachs & Co. and White, Weld
The reputation of
sale, bidders may include: The First
Corp.; Glore, Forgan & Co.; Halsey, Stuart & Co.
Inc.; White, Weld & Co.; Blythe & Co., Inc.
Co., Chattanooga,
To be determined
EXPERIENCE
competitive
poses.
are
expected to be received by this--company in
July for the purchase from it of about $2,500,000 equip¬
ment trust certificates. Probable bidders:
Halsey, Stuart
&
Underwriters
Inc.
(jointly); Merrill Lynch, Pierce, Fenner & Beane and
Union Securities Corp.
reported
was
Corp., both of New York.
termined
able
it
Pro¬
$4,900,000 of outstanding bonds and
program.
15
300,000 shares of
issue
Smith,
?
ceeds—To
sell
by
July 7 it
Beverage Canning Co. of Florida
it General Telephone Co. of Upstate New York
July 2 it was reported company plans to issue and sell
50,000 shares of 5% cumulative preferred sltock (par
$25). Underwriters—Paine, Webber, Jackson & Curtis
Barney & Co. and Blyth & Co., Inc. (jointly).
Arkansas Power & Light Co. (8/24)
Feb. 8 it was reported company plans to sell an
of-about $7,500,000 first mortgage bonds due 1984.
was
General
Underwriter—None.
programs.
Stores, Inc.
on
present stockholders. Proceeds—To subsidiaries for their
construction
it
stock
—
company
Offering
necessary.
to
18
common
announced stockholders will vote
Aug.
increasing the authorized indebtedness from $25,000,000 to $35,000,000. In February, 1953, a $12,500,000
4% debenture issue was sold through
Eastman, Dillon
& Co., New York. Proceeds
To refinance $12,500,000
outstanding 4% sinking fund debentures due Feb. 1,
1973, and for expansion.
24
'American Natural Gas Co.
proposal
preferred stock
(no par) and in¬
(par $10) from
l.,250,000 shares to 2,000,000 shares. No immediate financ¬
ing is planned.
creased
Proceeds—To repay bank loans and for
construction purposes.
Underwriter—Previous bond sale
done privately through The First
Boston Corp. Tlf
was
June 21 it
200,000
shares
later this year.
Kentucky Utilities Co.
Daystrom, Inc.
Prospective Offerings
a
Underwriter—Ira Haupt & Co.,
June 28 stockholders approved a
proposal to permit the
issuance of convertible debentures at the discretion of
the board of directors, and authorized an issue of
Food Fair
common
Co.
&
gen¬
eral corporate purposes.
New York.
Havenor-Cayias,
—
April 28 stockholders approved
by competi¬
Stuart
company and 60,000 shares for selling stockholders. Price
—In neighborhood of $10 per share. Proceeds—For
Williston Basin Oil Ventures, Inc.
May 20 (letter of notification) 2,500,000 shares of com¬
mon stock (par one cent).
Price—Two cents per share.
Proceeds
For exploration costs. Office
420 Fidelity
Bank Bldg., Oklahoma City, Okla. Underwriter—Tellier
& Co., Jersey City, N. J.
the authorized
Halsey,
Cott Beverage Corp.
May 5 it was reported 160,000 shares of common stock
to be publicly offered—100,000 shares for account of
(letter of notification) 4,000,000 shares of com¬
Price—At par (three cents per share). Pro¬
ceeds—For development expenses. Office—17 South Car¬
—
determined
are
stock.
—
be
bidding. Probable bidders:
Inc.; Morgan Stanley & Co.
Co., Price, Utah
Ave., Price, Utah. Underwriter
Inc., Salt Lake City, Utah.
Underwriter—To
Kansas Power & Light Co.
May 4, D. E. Ackers, President, announced that the con>pany plans to sell approximately
$10,000,000 of bonds
Boston
Inc.
tive
Underwriter—Irving J.
bon
gas
it was announced company
plans to issue and
sell later this year $40,000,000 additional senior deben¬
tures.
Proceeds—To repay bank loans and for new con¬
June 24
mon
natural
March 5
Canada and for other corporate pur¬
Office—Glendive; Mont.
Rice & Co., St. Paul, Minn.
poses.
»Whitelock
and
has applied to Colo¬
authority to build a $21,500,pipe line, in Colorado, to be financed
Columbia Gas System,
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 acquisition of addi¬
tional
announced company
through sale of about 70% of bonds and 30% of equity
capital. John R. Fell, a partner of Lehman
Brothers, ia
a
Vice-President.
poned indefinitely.
Western
was
rado P. U. Commission for
37
construction.
Underwriters—To be determined by
bidding. Probable bidders: Halsey, Stuart
Inc.; Kuhn, Loeb & Co. and Lehman Brother!
(jointly); Equitable Securities Corp.; Union Securitiea
Corp. and White, Weld & Co. (jointly); Merrill
Lynch,
Pierce, Fenner & Beane.
competitive
&
Co.
New
Feb.
8
Orleans
it
Public
Service
Inc.
reported company plans to offer for sale
$6,000,000 of first mortgage bonds due 1984 late thia
year.
Underwriters—To be determined by competitive
was
bidding. Probable bidders:" Halsey, Stuart & Co.
Inc.;
Equitable Securities Corp.; Union Securities Corp. and
Harriman Ripley & Co. Inc.
(jointly); Lehman Brothers;
Kidder, Peabody & Co. and Stone & Webster Seairitie*
Corp. (jointly); The First Boston Corp.; White. Weld &
Co.
on
.
•
/
-
Continued
on
page
38
38
The Commercial ynd Financial Chronicle...
(242)
share for each four shares
from page 37
Continued,
and
loans
for
May 24 it
—
an
it
14
reported that company may
was
Co.
(7/20)
Bids will be received by this company up to noon (EDT)
vote
Kidder, Peabody & Co.; Blair,
Rollins & Co. Inc.
July 2 it
(Minn.)
Power Co.
announced company is planning the issu¬
approximately $20,000,000 of firstmort-
was
ders:
Northern
States
Power Co.
San
(jointly).
Underwriter
and New York.
Co.
stockholders
27
series
Blyth & Co.,
stock from 5,000,000 to
on
June 30
it
announced that this company
was
June
July
presently
privately owned and financed, will have authorization
for the issuance of 5,000,000 shares of stock. Any public
financing may be handled by Kramer, Makris & Co.,
Houston, Tex.
held.
•
Pembina Pipe Line Co. (Canada)
April 14 it was announced company has been granted
right to obtain a permit to build a 72-mile pipe
line to transport crude oil from the Pembina Oil Field
in Alberta to Edmonton.
Financing will be handled
10 it was announced "company
the
sinking
the
there
sions,
of
000,000
while
Gas
recent
remains
emis¬
about
Panhandle
$10,-
Eastern
in
the
System's
bentures, only
case
Columbia
of
$40,000,000
a
of
de¬
small amount has
the
of
more
inquisitive
underwriting frater¬
nity decided this week to make a
the
thumb-nail check of the trend
things in
recently.
And
the
after
were
pleased
new
a
issue
quick
run-down
not particularly
by
what
they
of
market
well-
found.
It
Meantime, United Gas Improve¬
$10,000,000 of 25-year,
mortgage 3y4% bonds, 'offered at 101.721 to yield 3.15%,
moved out quickly this week. Yet
Missouri
Power
&
Light Co.'s
ment Co.'s
first
$7,500,000 new bonds, priced to
yield 3.15%, reportedly got off to
a
slow start.
developed that in the public util¬
Another Quick
ity field alone of something like
$185,000,000 in new debt securi¬
One
resting in syndicate hands.
It develops that of the
of
Cleveland
brought out
20
$20,000,-
Electric
on
some
proximately
the
same
condition
new
Way
financing,
Corp.'s huge
designed to raise
$300,000,000, of which $225,000,000
will be by public offering, was
placed definitely in the works
years.
This
negotiated route, met a good re¬
ception,
priced
at
100.50
for
an
indicated yield of 3.22.
This
relatively
short maturity,
was
announced
corporation registered
the
change Commission, and
offering date of
tative
U. S. Steel
fund
set
a
ten¬
July 29.
and Carnegie Pension
will absorb the balance.
Meantime, Southern California
Edison Co. revealed plans to offer
$30,000,000 of first and refunding
mortgage bonds. But this one will
not be up for bids until around
plans
permanent
DilloHr Read & Co. Inc.
*
reoffering Today at
indicated ryield of
100.855
3.20%.
reported that while
affer the fixing of
the
reoffering
£rice, failed to
bring any immediate orders from
Dealers
big names, there
^as
good smat¬
a
interest from smaller
of
institutions.
§•/>.
~
|
'
'
First Boston Group
Offer
company
Proceeds—To retire bank loans. Underwrit¬
er—Previous bond financing in 1922 was handled by
this
issue with the Securities and Ex¬
Peoples Gas
Light & Coke Go. Bds.
Bostdn
The First
offering f publicly
today
(July 15) $39,950,000 of first re¬
funding mortgage
bonds, 314%
1979^ of Peoples Gas
100.84
to
100%
in
the
last
which will retire 36% of the
year,
issue by
maturity.
Proceeds will be applied to the
redemption of 3% bonds, series F,
due
Aug.
1,
1956, and the 3%%
series H bonds, due June
1, 1981,
totaling $15,000,000 and $24,950,000
principal
amounts,
respec¬
tively.
The company
is
a public utility
purchasing, dis¬
tributing and selling gas wholly
within the city of Chicago, serv¬
ing an area of 213 square miles,
with
a
population of, approxi¬
manufacturing,
mately 3,620,962.
Corp. heads a
group
series I, due
from
Through
subsidiaries
the
com¬
is engaged in the purchase,
distribution
and
pany
transportation,
sale of natural
gas
to gas utilities
next.
Inquiry for Peoples Gas Light &
$39,950,000 of new 25-
Coke Co.'s
sold
first and refunding bonds,
competitive bidding yes¬
at
terday,
indicated interest on the
Light & Coke Co. priced at 100.855
in the Chicago metropolitan area,
The company and its subsidiar¬
to
25
Small Buyers Around
year
financing, handled by the
it
an
tering
com¬
Wheeling Electric Co.
week.
Aug.
bonds
May 4 and since
$5,000,000 are still
around but in strong hands. Ap¬
loose,
the
United States Steel
Another fast operation,
brought
.out yesterday, was Northern Nat¬
ties brought to market some $84ural Gas Co.'s $25,000,000 of 3V4%
000,000 are estimated to be still
sinking fund debentures, due in
with
for
allow
finnacing.
initial inquiry,
The
passed to investors.
Some
added
fund
On
more
Pipeline's original $35,000,000,
among
seemingly were
attractions for investors.
available.
Among
&
to sell first and refunding bonds without obtaining
June. 28
callable feature and a
plus
Gas
Transmission, where out of
some
$4,500,000 still
Rollins
and sell $6,500,000 of
1
prevails with regard to Tennessee
are
plans to issue and
reported an issue of about 200,000 shares
of common stock will be registered with thfe SEC. Price
—To be named later. Proceeds—To selling stockholders.
$25,000,000
Blair,
It is planned to is¬
these bonds. Proceeds—To re¬
imburse company for capital expenditures already made
and for future improvements. Underwriters—May be de¬
termined by competitive bidding. Probable bidders: Hal¬
sey, Stuart & Co. Inc.; Union Securities Corp. and Glore,
Forgafi & Co. (jointly); Blyth & Co., Inc.; Lehman
Brothers and Bear, Stearns & Co. (jointly).
June 21 it was
the basis of slightly less than one new
and
approval of preferred stockholders.
sue
Edison Co. (8/25)
Standard Coil Products Co.
^ Progas of Canada, Inc.
July 13 it was announced company plans to issue and
sell to its stockholders an additional 1,200,000 shares of
Co.,
&
Western Pacific RR. Co.
pany
—
i
Peabody
Kidder,
Inc.
June 30 stockholders approved a proposal to
of first and refunding mortgage bonds.
Proceeds
For construction program.
Underwriter—
To be determined by competitive bidding. Probable .bidbers: Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.; Blyth
& Co., Inc.; The First Boston Corp. and Dean Witter &
Co. (jointly). Bids—Expected to be received on Aug. 25.
& Co. of New York.
on
•
additional shares of $50 par capital
on basis of one new share for each eight shares
Price—At not less than $85 per share.
$30,OOOMO
sell
jointly by Mannix Ltd. of Calgary, Dome Exploration
(Western) Ltd. of Toronto, and Carl M. Loeb, Rhoades
capital stock
Co.
was
Southern California
July
the
Halsey, Stuart & Co. Inc.; Morgan
Meeting—Stockholders will vote Sept. 21
a£P£oving issuance of new bonds.
Corp.;
18 for 2,000
stock
bidders:
if Western Massachusetts Electric Co.
July 12 it was reported company is planning sale in
September of $6,000,000 debt securities. Proceeds — To
repay bank loans and for new construction. Underwriter
—If determined by competitive bidding, probable bid¬
ders may be: Halsey, Stuart & Co. Inc.; The First Boston
Bank (Wash.)
announced that stockholders of record
23 will be offered rights to subscribe on or before
it
*
B, due 1976, and the remainder used to reimburse
for expenditures for capital improvements.
Stanley & Co.
Pierce, Fenner & Beane.
16
Two previous
company
company
June
Underwriter—If underwritten, it
Underwriter—To be determined by competitive bidding.
shares and the authorized indebtedness Of
from $25,000,000 to $50,000,000.
The
company has no
specific financing program. Under¬
writers—Previous offering of $24,952,800 3% convertible
debentures, in September, 1953, was underwritten by
Drexel & Co., Smith, Barney & Co. and Merrill Lynch,
Salt Lake City
Services, Inc.
reported company may in September
plans to issue and sell additional common
it Western Maryland Ry.
July 13 it was announced company plans to issue and
sell $16,000,000 of first mortgage bonds due 1979.
Pro¬
ceeds i— To redeem $12,632,000 of first mortgage bonds,
10,000,000
the
Blyth & Co.,
was
stockholders.
Probable
creased the authorized common
and
::v.
proposals which in¬
approved
Co.
&
offerings to stockholders were not underwritten.
Seattle Trust & Savings
Pan-American Uranium Corp.,
cut
—
Staats
pe Laird & Co., Wilmington, Del.
may
Scott Paper
April
11955.
000
announce
it was reported company plans to offer late
(probably first to stockholders) 800,000 shares of
Inc., San Francisco
July 23. Price—$22 per
capital and surplus. Un¬
on
increase
Jet
it
14
stock to
Diego Gas & Electric Co.
additional common stock.
^ Oklahoma Gas & Electric Co.
July.,12 it was reported company plans to issue and sell
in September 75,000 shares of preferred stock (par $100).
Previous preferred stock financing was done privately
through Kuhn, Loeb & Co., New York. If competitive,
bidders may include: The First Boston Corp.; Smith,
Barney & Co.; Merrill Lynch, Pierce, Fenner & Beane;
Lehman Brothers and Blyth & Co., Inc. (jointly). Com¬
mon Stock Financing—First to stockholders, expected in
they
Welex
June
28
in 1954
basis; rights to expire
Proceeds—To
For
& Hutzler;
April
<•
Inc., and associates.
The First Boston Corp.
—
and Riter & Co.
and sell this
preferred stock. Pro¬
reported company may issue
Weld & Co. (jointly); Salomon
Shields & Co.; Blyth & Co., Inc.; The
First Boston Corp.; Union Securities Corp. and Equit¬
able Securities Corp. (jointly). (2) For preferred stock,
(Minn.)
*
(Ariz)
offered 200,000 additional shares of capi¬
stock (par $5) to stockholders of record July 7 on a
derwriters—William R.
body & Co. and White,
July 2 it was reported company may refund $20,000,000
of $4.80 cumulative preferred stock (par $100). Under¬
writer
May be determined by competitive bidding.
Probable bidders: Smith, Barney & Co.; Lehman Bros,
appropriate time, when conditions warrant
Valley National Bank of Phoenix
tal
determined by competitive bidding. Prob¬
able bidders:
Halsey, Stuart & Co. Inc.; Kidder, Pea¬
Bros.
into 1,000,000 shares of a
$50 par value, making
July 8 Bank
bonds to be
Co.
Co.
refunding of the outstanding $6 preferred
share.
some additional bonds and
ceeds— For new construction.
Underwriters—(1)
Brothers and
Halsey, Stuart & Co. Inc.; Lehman
&
•
Electric Corp.
year
(jointly); Smith, Barney & Co.; Glore,
Forgan & Co.; Merrill Lynch, Pierce, Fenner & Beane,
Kidder, Peabody & Co. and White, Weld & Co. (jointly);
Equitable Securities Corp. and Union Securities Corp.
(jointly); Kuhn, Loeb & Co., A. C. Allyn & Co. Inc. and
Wertheim & Co. (jointly).
Riter
an
at
l-for-5
May 17 it was
bonds due 1984 in October of 1954. Underwriters—
To be determined by competitive biddings. Probable bid¬
Thompson-Starreit
Underwriter—Union Securities Corp., New York.
Underwriter—Stroud & Co., Inc., Phila¬
Rochester Gas &
gage
a
stock
delphia, Pa.
and sale of
ance
possible
was
000,000 shares.
Northern States
Inc.
new
ferred stock, without par value,
new
class of preferred stock,
$50) from 14,000 shares to 50,000 shares, and the author¬
ized class B common (par $1) from 950,000 shares to 2,-
,
•
on
announced
was
Tri-Continental Corp.
announced stockholders will on Aug. 17
increasing the authorized preferred stock (par
8 it
June
it
March 30 stockholders voted to reclassify 500,000 shares
of presently authorized but unissued $6 cumulative pre¬
Canada Investment
Ritter Finance Co.
July 20 for the purchase from it of $5,220,000 equip¬
ment trust certificates to be due Aug. 10, 1955 to 1969,
inclusive.
Probable bidders: Halsey, Stuart & Co. Inc.;
on
Salomon Bros. & Hutzler;
Lehman Brothers; Kidder,
Co., Inc. and Smith, Barney &
securities in the United States.
Pacific Ry.
Northern
1
plans to
convert¬
ible preferred stock (par $10).
Proceeds — To retire
bank loans. Underwriters—Blair, Rollins & Co. Inc. and
Emanuel Deetjen & Co., both of New York.
Fund, Ltd.
April 27 the SEC authorized the company to register as
an investment concern and to make a public offering of
& Co., Inc.
determined
(following merger of Roberts & Schaefer Co.)
issue and sell at an early date 145,000 shares of
(jointly).
Resources of
be
Probable
bidders:
Halsey,
Webster Securities Corp. and
bidding.
Thompson-Starrett Co.,
July
(jointly);
Corp.
Peabody & Co.; Blyth &
addition
(in
White^Weld & Co. (jointly).
1984,
Securities
consider a
refunding program in September. Underwriter—To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; Blyth
June
competitive
Stuart & Co. Inc.; Stone &
early in 1954. Underwriters*—To be determined by com¬
petitive bidding. Probable bidders: Halsey^ Stuart & Co.
Inc., Kuhn, Loeb & Co.; The First Boston Corp.; Harris,
Hall & Co. Inc.; Harriman Ripley & Co., Inc. and Union
24.
1954
Underwiters—To
construction.
new
float
Previously, the company had planned to
issue of $15,000,000 first mortgage bonds, due
issuance and sale
company plans
$25,000,000 bonds filed May 26 with SEC). Proceeds—
by
Colorado
the year.
Pacific Ry.
Northern
to
reported
was
$20,000,000 of debentures later in
For
financing delayed until later in
loans, with permanent
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Kuhn,
Loeb & Co. and Union Securities Corp. (jointly); Morgan
Stanley & Co. Bids—To be received on Aug.
of
April 12 it was reported company plans to finance its
1954
construction program through temporary bank
competitive bidding. Probable bidders:
be determined by
Service Co. of
Public
Co. Inc. and Dempsey &
C. Allyn &
Chicago, 111.
Tennessee Gas Transmission Co.
Burnham &
Underwriter—To
construction.
new
Underwriters—A.
oversubscrip¬
an
Co., bp|h of
if Niagara Mohawk Power Corp. (8/24)
July 12, Earle J. Machold, President, announced that the
company plans to issue and sell $25,000,000 of general
mortgage bonds due Aug. 1, 1984. Proceeds—To repay
bank
(with
Co., New York, have agreed to purchase, in
proportions of two-thirds and one-third respectively,
any of the unsubscribed shares.
York, New Haven &
New
held
privilege). Price—At par (25 cents per share). Pro¬
ceeds
For capital improvements and working capital.
Underwriters — Consolidated Coppermines Corp. and
tion
Hartford RR. (7/22)
July 13 it was reported company will offer and sell $6,180,000 equipment trust certificates.
Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler;
Kidder, Peabody & Co.; Blair, Rollins & Co. Inc.
Bids
•—Expected to be received up to noon (EDT) on July 22.
•
Thursday, July 15, 1954
ies
tol maturity. *The
is$ue at competi¬
July 14 with a bid
yield 3.20%
group
won
the
tive bidding on
of 100.2799.
3;
The series I bopds are redeem¬
able at optional
redemption prices
initially to
Provision
Bankers paid the
company a is made for a sinking fund begin¬
price of 100.2799 for the issue with ning Aug. 27, 1955 with sinking
a 3
% interest rate and proceeded fund redemption-prices scaling
part of smaller investor groups.
scaling
100%
from
103.86
in the last. year.
contemplate capital
tures
during 1954 and
expendi¬
1955 total¬
approximately
$113,000,000,
$29,000,000 to be spent in
ing
about
the current year and
in
the balance
1955.
For the 12 months ended March
31,
1954,
revenues
gross
consolidated
totaled
income
ductions
was
operating
$117,546,734 and
before income
$22,558,881.
de¬
I
Number 5342
Volume 180"
The Commercial and Financial Chronicle
...
(243)
Continued
jrom
during the second quarter of the
1954 fiscal year to establish a rec¬
2
page
ord
the Security I Like Best
corporation is in
tion
than
now
stronger posi¬
capitalization
before.
518,000
a
ever
In the
for
the
company's
first
any
half
period
history.
in
Sales for
of
$10,71,800
debt;
5%
preferred
long-term
1953 first half—an in¬
11.1%.
the
meeting,
the
corpora¬
interest
sizable
a
reorganization.
Behn
and in effect
none
tions determination to
enlarge its
Sales and
business.
components
advertising
efforts
internal
intensi¬
were
fied during this year and 1 believe
that from now on these efforts
will
continued
be
should
be
and
reflected
that
in
increased
I don't think this sketch would
without
mention
of
(IT's) telephone systems. The tel¬
ephone apparatus made by the
(IT) system is sold throughout the
to its
communications
own
subsidiaries
well
as
as
the various
also made to various in¬
are
dependent telephone companies of
there
are
3,000. (IT)
pioneered in micro-wave and back
some
in
1931 it beamed the first signals
across the English Channel.
I be¬
used
in
the
future
wherever
the
the
are
restricted
until
to
as
common
shares, outstanding with the pub¬
lic, receive $2 a share in annual
taxes
Under present Federal
the
family
so
earnings
the
stricted
with
the
end
in
of
now
public
the
number
share
of
of
unre¬
half
of
At
the
the
cur¬
May 31, 1954, the
unrestricted
shares
best be pictured by tabu¬
can
in
reverse
solidated
10
sales
order
and
the
for
through
the
fiscal year ended Nov. 30, 1953:
Net Sales
1953
Net Inc.
extended and
1951
place
1950____
1949__—
34,084,873
to be
may eventually re¬
wire, for aside from
the initial cost, which is infinitesimally small, only one pound of
open
1952__—
1948—_
37,685,667
1,212,677
against 75 pounds for open
wire is required and maintenance
1947
1,831.148
cost
of
1945
other uses for micro¬
equipment such as for pipe
lines; but micro-wave is a story
1944
32,396,733
19,409,862
13,438,657
11,389,058
copper
is
negligible.
There
are,
course, many
1946
1,455,593
364,252
316,845
half
provision
share
the
six
1954
$1.52
to
for
dividends,
pre¬
earnings
months
share
per
were
shares
mon
sive
of
outstanding
restricted
mon
shares).
mon
share
months
for
(exclu¬
com¬
per
the
year
com¬
"B"
class
com¬
Earnings
last
the
on
1,229,970 American-Marietta
six
same
$1.34
were
on
With
first
publication
to
of
the
steps
taken
Board,
said
to improve
erations, the outlook
the
half
second
be
viewed
of
with
net income for
as
and
the
op¬
enter
year
can
optimism.
Our
May exceeded that
his¬
our
95% greater than
income for the month of May
was
We
year ago.
explore
could
are continuing to
opportunity that
every
accelerate
Dividends
annual
an
our
we
of any previous month in
tory
rently
of
traded
in
the
is
our
progress."
350
quarterly for
$1.40 are cur¬
paid.
The
stock,
rate
of
being
market,
over
the
-
quoted
-
counter
29-30
and
would appear to reflect the
possi¬
bility
of
dividend
a
increase.
I
wave
in
itself
and
the
surface
Consolidated sales and earnings
continued
their
hasn't
upward
consider
trend
' I have a
stock.
President, Charles
Stock
(IT)
A. Taggart
the
stock
of
Coal
an
appre¬
policy
to
for
last pre¬
my
\thp
"Chronicle"
which
was
of
a
the
stock
common
company
growing
through
of
for many years.
hand,
to
show
partiality. On the other
intense desire that the
of
resources
be
the
gives
great
us
concern
I
ac¬
will
take
again held
have chosen
similar
sit¬
a r
i
e
11 a's
good managem
e
n
t
growth
through
quisition has brought about a
diversification
help
and
ac.
con¬
the
prod¬
opinion of this
diversification
stabilize
to
earnings
the years ahead.
as
of
1930
a
after
was incorporated
formerly operating
partnership under the name
Asphalt Paint Co.
hearings
pipe
may
nomic
headed
the
sure
number of
a
The
security
you
things
first
oval
shaped
American
well-known
now
could
study
foreign
the
of
Na¬
The
availability of coal, and
of petroleum, not
within the borders of the
to
most
of
has sent a message to the
Congress calling for a program of
expanded world trade.
The
Randall
not call for
—but rather
a
a
Commission
course,
to
your
to find
a
specific
problem
mendations
of
on a recip¬
difficult, of
is
It
in
the
and
the
answer
recom¬
Commission.
we
upon
in
over-all
foreign
our
Finally,
se¬
must consider the
our
upon
policy.
the
trade
sale
ern
seaboard
must
be
carefully
the welfare
This
of American
that
Net
the
proceeds from the sale of
bonds
will
problem
Congress
all realize,
the
must
work
together
respectful of the other
aware
of the
separate
we
can
which
and
used
be
to redeem, on or
19, 1954, $4,000,000 of
first mortgage bonds, 3%% ser¬
ies due 1981; to prepay a 3J/4%
promissory note due Sept.
10,
1954, in the amount of $2,800,000,
incurred in connection with the
construction program, and to meet
in part the cost of further addi¬
PACIFIC
I hope
FINANCE CORPORATION
each
—
each
areas
in
—
DIVIDEND NOTICE
On July 7,1954, the Board
of Directors declared
regu¬
lar quarterly dividends on
With King Merritt
Preferred
July 15,1954,
SAINT
Preferred
NOTICES
-
and Industrial
DIVIDEND
$25
pipe
\yith 32 plants coast to coast.
record
Fund Series
the
on
7,400,000
at
the
close
business
of
July
THE
CHASE
RATIONAL
OF
THE
CITY
The
b. c. Reynolds,
Preferred Dividend
a
OF
closed
BANX
NEW
YORK
ment
in
hooks
connection
will
with
be
not
the
pay¬
share
on
Secretary
today declared
the Cumulative Preferred
Stock, payable August 2,
to shareholders of
Common
record
Dividend
July
Directors
today
declared
a
share
five
on
of
(250)
cents
Directors
dividend
a
per
of
July 20, 1954.
share
Company, and
fifty cents (500)
a
on
the
dividend
share
per
the Common Stock
Value)
has
of twenty-
($1 Par Value)
of the
on
(no Par
exchanged under
the
Company's Exchange In¬
structions dated May 19, 1953.
These
dividends
are
payable
August 2, 1954 to stockholders
DAGGETT
A. H.
Board
Common Stock
Stock, payable
August 2 to shareholders of
record
The
declared
dividend
of 42/i$ per
Common
TECHNICOLOR, Inc.
20, 1954
The Board of
President
June
of
not yet
record
ness
the
at
close
of
busi¬
July 16, 1954.
L. G. CLARK, Treasurer
■R. J. REYNOLDS
July 7, 1954.
TOBACCO
The United Gas
Improvement
Camel, Cavalier and Winston
Company
smoking tobacco
i
DIVIDEND
NOTICE
A
Quarterly Dividend
A
quarterly dividend of 60c
share
has
been
Common and
mon
declared
on
per
the
New Class B Com¬
stocks of the
September
Company,
7,
pay¬
1954
to
stockholders of record at the close
of business August 13,
of this dividend.
1954.
quarterly dividend of 45c per
share on the Common Stock, par
value $13.50 per share, has been
declared payable September 30,
1954
to
stockholders
of
record
August 31, 1954.
A quarterly dividend of $1.06K
per share on the 4M % Preferred
Stock has been declared payable
October 1, 1954 to stockholders
of record August 31, 1954.
W. J. CONRAD,
KENNETH C. BELL
Winston-Salem, N.C.
Vice President and Cashier
J
(
$0.31'/4
$0.3iy4
regular quarterly dividend of 56'/44
per
able
transfer
8-2-54
Batteries
City
21, 1954.
As of Nov. 30, 1953, the end of
the company's latest fiscal year,
share
$1.25
par value
$1.25 Sinking
NOTICE
The Board of Directors
dividend
capital stock of the Bank,
payable August 13, 1954 to holders of
Marietta
drain
per
Per
Stock,
par value
5% Series
8-2-54
Preferred Stock,
#
50c
Rate
Share
,
may
shares of the
follows:
$1.25 Series 8-2-54
PAUL, MINNESOTA
Prince Albert
of
as
Pay¬
cigarettes
a
this
Manufacturers of Automotive
NOTICE
of New York has declared
of
Date
COMPANY
The Chase National Bank of the
Stock
corporation, payable to
stockholders of record
GOULD-NATIONAL
NOTICE
DIVIDEND
the
which
about Aug.
Makers of
{
WORI O-WIDl: BANKING
to
funds
must function.
we
place in our economy through the
pursuit of those tested and proven
DIVIDEND
added
citizens.
Government and industry.
will
prove only a partial and tempor¬
ary one.
Ultimately the coal in¬
dustry will achieve
its proper
we
be
general
a
Whatever soluton to this imme¬
adopt,
will
company's
bridge of
cooperation must be built between
means
25, 1954
assessed.
diate
by the group at competi¬
on July
13 on a bid of
101.65%.
neither handcuff
withdraw into a
snug bureaucratic indifference to
economic
impact upon
the industrial centers of the east¬
did
policy of free trade
program of gradual
liberalization of trade
basis.
effects
but
In addition to the
curity angle,
you—has
ident
States
siderations.
eco¬
made its report and the Pres¬
con¬
is the nation's largest producer of
sewer
won
tive
stated, it will
enterprise nor
of
the availability
A
policy. That commission—
by Clarence Randall —
turbing the surface of the street.
concrete
must—I'm
on
con¬
of
sections from which
be built without dis¬
understand
interest, to yield approxi¬
mately 3.13%. Award of the issue
prefer to make his own way
world,
under
his
own
tions
and
improvements to its
steam, merely asking that his Gov¬ property and facilities.
ernment insure fair play. I think
The new bonds will be redeem¬
this viewpoint holds true of cor-/ able
at regular redemption prices
porations as well as individuals! ranging from 105.25% to par, and
This
certainly is basic to the at special redemption prices re¬
philosophy of the present Admin¬ ceding from 102.33% to par, plus
istration. Your Government today accrued interest in
each case.
wants to promote private initia¬
tive.
As
the
President
recently
DIVIDEND NOTICES
Adminis¬
judgment
spots of the world, arfe major
field
sives, resins, metal powders,
building materials, household
products,
and
precast
concrete
pipe including that of the Lamar
Pipe & Tile Co. division, manu¬
of
crued
>was
a
commission
a
whole
The company's products include
industrial paint, chemicals, adhe-
I
The
of
key
the public.
facturers
Light Co. first
mortgage bonds, 314% series due
July 1, 1984, at 102V\% and ac¬
the
held in any amount by
was
sewers
fuel.
import
other
The present name was adopted in
1940 and it was not until 1947 thats
crete
is
tion.
are
this legislation!
American
stock
feeling
much
in
re¬
United
rocal
The company
in
to your dif¬
answer
comfortable
a
that the average American would
you
only
of
such
when
on
the
consideration.
these
What
the President asked that
until
American-
will
easy
have
on
legislation be cbnsidered
the
M
over
I
$7,500,000 of Mis¬
&
$100
tariff
no
story.
is
an
DIVIDEND
year ago
uation for this
it
you
you
would
serious
very
passing
measure
into
not prepared to say
am
in
realize—take
today
position the Administration
a
.
this
over
a
upon
tariff
a
nothing.
is
competitive
tration
the coal situation.
management,
that
might be,
say—or would it?
Doubtless
have your reservations about
on
recognize
you
asking
striction
serve
excellent
A. Taggart
are
the interests of the American
peo¬
ple
asking for
That
accomplish
country
fully developed to
not
are
coal.
our
natural
shall
You
the Department
It ill behooves us
what
I
and
this
Power
able
Solve Its Problems
quisition and
writer
bliss
(July 14)
souri
BATTERIES, INC.
major
been
security described in
ucts
commercial
day
FLINT, Mich.—Herbert H. Blan-
Industiy Must Not Rely
Government
ciation of 64% in the pricfe of the
siderable
.
A
group
headed by Halsey,
Stuart & Co. Inc. offered yester¬
American-
Continued from page 15
& Co.,
Exchange
Since there has
Charles
you could only do
away
with, or restrict the sale of com¬
petitive fuels! Or, if you could
only
prevent
your
competitors
from selling coal cheaper than you
do!. Or, if only the Government
would regulate everything! What
Offers Mo. P. & L. Bds.
kership is now with King Merritt
& Co., Inc.
American-Marietta Company
story
If
Kalsey, Stiart Group
(Special to The Financial Chronicle)
long position in
CHARLES A. TAGGART
vious
it?
Marietta to be businessman's risk.
been scratched.
.
competition has played
havoc with many. If all of them,
including
yourselves,
could
do
away
with competition,
every¬
thing would be alright—or would
the
Grover
M.
American-Marietta's
Hermann,
"Due
of
earnings,
Chairman
are
ficulties—I know I have.
the
half
industry is not the only
mining that is cur¬
of
of the metals. Domestic and
such
1,203,365 shares.
a
$3,533,031
2,853,473
2,578,543
2,448,267
613,684
are
first
16.3%
After
equal
our
$102,214,344
76,714,724
66,458,303
44,100,903
telephone systems lines
for
the
as
year.
con¬
earnings
1944
years
055,500
for
the earnings of certain of
1,229,970.
was
income
increased
outstanding
growth of American-Mari¬
lating
the
want
per
is used.
first
outstanding
etta
not
number
rent fiscal year,
The
does
figuring
shares
lieve that Micro-wave towers will
be
shares
"B"
shares
dividends
governments. In the United States,
which
class
"family"
dividends
be' complete
sales
$2,535,369.
they- dividends.
earnings.
world
The
of
Net
The coal
segment
foreign
ferred
At
stressed
accomplished
Col.
technicians
of
ranks second to
and
•some
of
crease
to a record $2,against $1,766,667 re¬
ported for the six months of last
stock, $7,180,000; 1,211,165 shares
$2 par common, $2,422,330; 700,000
shares $2 par class "B" common,
$1,400,000; capital and earned sur¬
plus, $18,358,959; and a minority
staff
oratory
lab¬
that
and
077 for the
inated
up a
and
rently having its troubles. So
shares
duplication, built
industry*.' research
research, wider uses
wider markets, lower costs
ever-improved management.
six months
ended
May 31,
1954, were at an all-time high of
$48,013,673 compared to $43,200,-
past five or six years, it has elim¬
par
of
more
the
consisted
$100
tools
39
July 8, 1954
Secretary
Johns Hopkins, Treasurer
Philadelphia, July 13, 1954
40
The Commercial and Financial Chronicle...
(244)
Thursday, July 15, 1954
At the moment neither official
BUSINESS BUZZ
Capital
•
•
•
to
observers
seeing.
In
or
for
for
suffer
to
wants
little
a
one
head¬
ache, he can put pencil and
to work on the Treasury's
fancy "deposit and withdrawal"
or "cash budget" year-end state¬
paper
get a crude
ment, and
has
this
country
far
from wither under the
come
gentleman with the genial grin.
For
limit)
the
instance,
(varying
debt
very
total
debt
slightly from the
subject to the statutory
rose from $266.1
billion
30, 1953, to $271.3 bil¬
year later. This is a jump
June
on
lion
a
of $5.3 billion. During the same
period, however, the Treasury's
cash balances rose by $2.1 bil¬
second
figure from
the first and it comes out $3.1
the
Take
>
billion, which looks just about
like what the budgetary deficit
was for the fiscal year 1954.
While
it
this
is
that
shows
January
pinned
the
tail
priate
part of
key's anatomy.
And
the
on
the
appro¬
fiscal
the
don¬
because it
the
like
*
For
some
officials have
time
been
bragging about their econ¬
omy, by comparing Harry Tru¬
man's
estimate
($79.9 billion)
of a bargain basement $80 bil¬
lion
for
fiscal
1954
estimate of $65.6
cal
1956,
a
with
their
billion for fis¬
not bargain basement
$14 billion.
i
1
Performance Is
the
and
Bureau
Once
So here is something not far
off from an actual figure, this
$S8 billion of spending for fis¬
cal '54. It compares with $74
actually spent in fiscal
*53, a genuine savings of $6
billion
billion. This looks bad to those
who
might recall that it is $2.6
billion higher than '52, $24 bil¬
lion higher than '51, or $28.4
billion
higher than for fiscal
1950. On the other hand, it looks
pretty good for a President who
was unwilling to be disliked by
any of the pressure groups, for¬
eign or domestic except maybe
the farmers a little, and who
still wanted to save the world,
offering both guns and butter
tablished
such
to
stable
for
but
programs,
are
in this
field, and others for that
may be vulnerable.
pretation from the nation's Capital
and may or may
"Left Westchester
in
quite a hurry this morning,
Mr. Flapsnoodle?"
the
eh,
not coincide with
"Chronicle's"
being pounded upon
military.
the
Lower
There is
about
tion
Federal
on
bank
ments, which
sufficient
Reserve
ac-.
require¬
reserve
have escaped
may
the
on
bank
long-term aspect
one
the
be
3%
reserves
savings
and
run
curtailing required reserves
an estimated $1,555 million,
to become fully efefctive Aug. 1.
the
new
is
by
For
than
more
a
dozen
years
require¬
new
between
or
banks
emergency.
and
the
20%
at
re¬
scale
new
is
range
of
the
or
time
limited,
one
government
spending either direct, or in¬
direct through inflationary poli¬
cies, has ruled the economy, and
during a great deal of the time
the problem has been one of
stemming monetary inflation.
the
If
is
economy
going
to
new
While
to
being
requirements
to
offset
tionary drives of the
the
came
infla¬
wars
and
emergencies.
Even
lower
requirements ef¬
reserve
with
the
Aug.
1,
required
re¬
view
for
several
prevailing high
requirements are inher'ently in¬
compatible with a peace-time,
private enterprise economy,
ent
various factors pres¬
which made
difficult
the
were
a move
the
pros¬
Until
shortly before the Board acted,
the
security" of
a
relatively
economy.
stable outlook could not be
tain.
It
officials
be
one
now
that
appears
the
cer¬
most
to
summer
will
of characteristic stability.
Second, until about the time
the Board acted, there was still
some
Gas
apprehension that the
na¬
When the Board acted, it was
Anheuser Busch
apparent
there
National Oats
from
was
no
Commit¬
House
Judiciary, is pressing
for action before his Committee
bill
a
which
would
boost
fines for conviction of violations
of the anti-trust laws from
to
$50,000,
$5,000
in¬
1,000%
mere
a
crease.
,
It may
be late in the session
to monkey
aronnd
with things
like that, but if Manny can get
the thing out on the
cinch
no
particular
jitters
to
season
and
floor it is
killed
be
in the
in
this
when election
sensitiveness
demagogic arguments
runs
to
high
corridors of the Capitol.
June
the
course, was
for
pects
the
of
the
on
toward lower
might become involved in
war in Indo-China, which would
tend to undo any move toward
reduced reserve requirements.
Olin Industries
tee
requirements.
One, of
might desire
Emanuel E. Celler D.,
the ranking minority
Y.),
member
Reserve
believed to have
are
the
timing of
into
can
months that the
emergencies, OR, it will grow of
its own accord under the private
enterprise system, with capital
or
loans provided by private
enterprise.
mum reserve
Federal
the
authorities
held
there
legal maxi¬
country
deposits
between 7 and 14%; the
requirements will be 12%.
continue to expand, it will grow
under
the
stimulus
of
such
The present high
at
demand
on
in
matter how much
Proposes Higher
on
Requirements
col¬
so.
Rep.
range
18%.
under
war,
total
threatened
wars,
another
kind
of
10%
cities;
serve
States
to
nations
Anti-Trust Fines
20%.
are
can
other
26%;
N.
reserves
no
United
chance
a
with
the Administration
to do
requirements
the
have
Indo-China
between 13% and
Required
the American economy has lived
or
that
would
Legal reserves for demand de¬
posits at New York and Chicago
can
The
bility
laborate
between
deposits
6%; the
5%.
re¬
member
on
ments will be
Board
attention.
high side. Thus, the
Board is allowed to maintain
quired
Reserves—
Long-term Goal
Olin Oil &
the
news
practical
that
possi¬
Auto
Sales Jump
it is
understood have been compiled
by the Department of Com¬
merce, indicate that retail sales
of
automobiles
to
customers
during June ran up to 561,000
units, an unexpected sharp rise.
This
551,000
is
compares
with
sales
International
for
Anriual
24th
ments:
Bank
International
for
Facts About
in June, 1953, and
highest June for any
month in which the automobile
industry
has
been
reporting
monthly car sales. It is also the
second highest volume sales for
any month in any year in his¬
tory. The largest single month
was
May,
1941,
when
sales
totaled 609,000 machines.
Bureau,
Street,
New
(paper).
York
"
Wall
N. Y.
Supports — Rigid or
Flexible?—Karl Brandt—Amer¬
ican Enterprise Association, 1012:
Fourteenth Street, N. W., Wash¬
ington 5, D. C. (paper), 500.
Life
Insurance
Institute
Fact
1954-
Book:
Life
of
Insurance,.
488 Madison Avenue, New York:
22, N. Y. (paper).
—
Producing
in
Industry
State, The —1954 Edition
dependent
Petroleum
tion of America,
complimentary
obtained
from
tion
Service,
Tulsa, Okla.
Your*
—
In¬
Associa¬
(paper) Singlecopies may beInforma¬
IPAA
O.
P.
Box
1019,.
Zirconium
Metals
N.
Y.
—
We suggest to
a
Carborundum
The
Company,
(paper).
liberal
Inc.,
Akron,
'»
investors seeking
return
and
potential growth
CORPORATION
v
Production
'•vl
Sold
—
Quoted
Report available
Carl Marks
FOREIGN
SCHERCK, RICHTER COMPANY
TEL:
320 N. 4th
St.
2, Mo.
SECURITIES
SO BROAD STREET
Member Midwest Stock
Exchange
St. Louis
STOCK
Sulphur
Wagner Electric
5,
Farm Price
CAPITAL
Teletype
120
SHAP-ON-TOOLS
Transmission
Pan American
SL 456
Ameri¬
Coffee—Pan
Coffee
—
Settle¬
Switzerland
Basle,
(paper). •
ments,
can
Settle¬
Report
of
cars
the
Bank
Oil
Unofficial figures which
Valley Gas
Mallinckrodt Chemical
Bell
views.]
comparatively peanuts
tion
—
own
to the cuts
serves, it is explained, will still
Bought
the
decision
com¬
many
fective
Tenn.
FTC
[This column is intended to re¬
flect the "behind the scene" inter¬
and vehement moral sermons at
Texas Eastern
industry,
the
of
the rule in
are
welfare
of
press conferences.
Miss.
is not per¬
Sammy's
Uncle
automobile
matter,
and where they do,
so,
under
suggests that all manufacturers
plex reasons, these won't show
up much budgetwise for a next
or
market,
but
producer uses
contract, it
a
language
has gone for
full
the
dealer contracts
the
billion of spend¬
Eisenhower
whole
in
laws to protect the weak against
the strong.
Since exclusive
ing probably will prove to be a
billion or so on the high side.
Mr.
a
were
to
major
a
missible
in government
conscience on the
track, the momentum is likely
to carry along for a while, sug¬
gesting the January's estimate
a
thing
when
economy
for '55 of $65.6
that exclu¬
contracts
enable smaller
producers to get themselves es¬
get
you
the FTC said, yes.
mean
dealer
good
hold down expenses.
Most
$6 Billion
sive
"shortfall,"
Treasury
case.
case
Congress did
applied by the Budget
pressure
around $68
billion for the year.
This would be almost $3 billion
under the January estimate, if
it
doesn't
look
too
cockeyed
when the Treasury next week
itself
breaks
the
thing down
into budgetary terms.
In this
are
spent
government
motorcycle
due to the steady
was
the June sales
were
as
last week's decision by the Fed¬
eral Trade Commission in the
finances
particular
this
for
they
by playing around with
fund figures, it looks
frenzied
1
Cause
billion
pretty much inclined to give
the
Administration the
credit
year
trust
Sweet
$3
watched
it is predicted.
Decision May
figures for the motor industry,
however, there is a sour note in
billion under the
January estimates for the cur¬
rent
year.
Those
who
have
almost
the
$3.3 billion for the year, just
this $68
instance,
For
is
the higher
first
for the
billion
$6
are
month
a
Trouble
year.
figure,
crude
a
in
President, in estimating a deficit
of
of
ing
FTC
of spend¬
achieved curtailment
an
lion.
*
It looks pretty good to fiscal
observers for fiscal 1955, if per¬
haps nothing so sweet as an
idea as
how
about
to
.
the
June
has recently
industry
been hitting,
Washington, d. c.—if
been
however,
case,
results
production at
rates the
~
the
of
have
prolong
to
so
accom¬
-
any
handsome
likely
dealers
to
seem
explain this
in the light
troubles the
&
And You
^
able
plishment
Washington
from the Nation's
unofficial
be
Behind-the-Seene Interpretations
or
Garfield 0225
L.D.123
HANOVER 2-0050
•
&
Co. Inc.
SPECIALISTS
NEW YORK 4, N. Y.
LERNER & CO.
Investment Securities
10 Post Office Square,
Telephone
HUbbard 2-1990
Boston 9, Mass.
Teletype
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