Full text of Commercial and Financial Chronicle : July 16, 1953, Vol. 178, No. 5238

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ESTABLISHED 1839

UNIVERSITY
OfUMICH:GAN

Tk e

U17 1953

^IMKIKISTIAIIBH
iiteun
■'

V

Financial
Reg. U. S. Pat. Office

Volume 178

Number 5238

New York 7, N.

Y., Thursday, July 16, 1953

Price 40

Cents

Copy

a

EDITORIAL

The Mid-Year Economic

As

We See It

Outlook

The fact that the

Treasury has apparently given
up, at least for the present, the plans it earlier
professed to have for renovating the maturity
schedule of its debt is less disturbing than a good
deal of the comment currently heard about the
reasons for the change.
The circumstance that

By J. DEWEY DAANE*

refrained is

and

increasing predictions 1953 may
be labeled "the year of the slump that never came," Mr.
Daane presents contrasting data for both "bullish"
and "bearish" views. Looks for "sideways movement,"
and says a flexible, effective monetary policy by Federal
Reserve is an important factor contributing to stability.

Pointing out there

second

is

there

That both

changes have taken place there can
no
longer be any doubt. The loose talk about the
presence of available funds in the short-term
market but none in the long-term is obviously at
best but a Pickwickian way of expressing facts
less palatable if stated in more direct language.
The explanation that the Treasury, as usual, is
simply seeking to sell its securities where there
market for them must, of course,

our

value

market

all

of

economy—was

nual

rate)

more

higher than

a

eral Reserve

goods

For 20 years following the momentous events of early
March, 1933, advocates of a return to the full gold stand¬
ard in this country with a restoration of the right of
individuals to obtain gold coin for their paper money
faced the stony
opposition of the
Democratic governments
in Wash¬
ington. The Republican Platform of
1952 seemed to give the gold-coin
advocates a ray of hope.
But the
present Administration, while con¬
ceding a willingness to return to gold
coin sometime in the future, adheres

and

The Fed¬

year /ago.

index

of

indus¬

which is generally

as
the best measure of
physical volume of manufacturing and
mineral production, hit a postwar
peak of 243 in March (1935-39=100)
and has since continued at approxi¬
mately that peak—20-25 points above,
a
year ago.
Personal income has
continued to inch up; the latest offi¬
cial figure shows individuals earn¬
ing money at an annual rate of $285

billion,

almost 8% above

the position that this
appropriate time to do

to

itures

running at

a

istration

J.

Dewey Daane

than

in

the

same

an

months

last

year.

Employment

Continued
*PaneI

22

remarks

Mr.

by

Daane,

at

on

page

meeting of Institute

to gold

return

a

one

is reduced to

at

$20.67

effect

an

sold

ounce.

gold

at

States gold coins, which
for

in

paper

March

32

6,

money

1933,

at.,

the

price

in

M.

neroert

Bratter

the Government in

individuals

To

that

form

the

United

of

could be obtained in exchange

bank.

any

nation

On

awoke

When the banks reopened one

of Public

could

REGISTRATION—Underwriters, dealers and investors in cor¬
afforded a complete picture of issues now registered with the SEC
potential undertakings in our "Securities in Registration" Section, starting on page 34.

morning,

Monday

to

no

holiday.

bank

a

longer get gold

Continued

Affairs, University of Virginia, Charlottesville, Virginia, July 8, 1953.

on

page

28

IN

NOW

SECURITIES

assum¬

ing what may be in their mind.
At the beginning of March, 1933,
the Treasury bought and sold gold

expenditures are at record levels, with
housing starts in the first five months of 1953 higher

re¬

envisages

stated and

"i

year ago.

Construction

these long issues. Any surplus funds
latter may have for investment, either as

not the
Under

j redeemability of the dollar inter/. nally its spokesmen have hot publicly

annual rate of $228 billion, or
about 92 cents out of every dollar received, and are
supporting retail sales 4% or more above a year ago.
are

is
so.

just what circumstances the Admin¬

As to the spend¬
ing of this money earned, personal consumption expend¬
or

garding

on page

current

accepted

en¬
the power to create money are far
from clear in their own minds what the future

Continued

the

$368 billion (an¬
than $25 billion

Board

trial production,

dowed with

these

in

our economy

at record

the

ings of longer term issues, and ■ others not

be

"boom getting tired,"

"tiredness"

of

services (end products) produced by

be taken

to

evidence

subsequent thereto. Says proponents of gold coin stand¬
ard form two groups: one of which endorses the stand¬
ard, but wants its readoption deferred; and the other
which wants immediate adoption. Gives views of various
authorities on potential effects of return to the gold coin
standard, and concludes, if a return to gold coin redemp¬
tion of the dollar is desirable, the reasons for delay
are not persuasive.

continuing to oper¬
levels of activity. In the second quarter
of 1953 the gross national product—

ate

grain of salt. Much the same is to be said
for the pronouncements of those apologists who
keep saying that the long-term market is not
being supported.
The fact is that short-term money is relatively
available to the Treasury for the simple reason
that the banks, particularly the Federal Reserve
banks, are creating it for that very purpose. These
institutions are, in turn, not adding to their hold¬

of the Reserve authorities is

little

statistics, which show

a

attitude

are

Despite all the talk about the

System.

a

Gold Coin Standard in U. S. and conditions

ment of the

in importance
action, frequently
expounded apparently with the approval of the

is

Mr. Bratter reviews events which led to the abandon-

Federal Reserve Bank of Richmond

to the rationalization of their

with

By HERBERT M. BRATTER

Assistant Vice-President,

the Federal Reserve authorities have winced and

relented

Why Shouldn't Americans
Have Cold Coinage Again?

porate securities are
and

State and

m

WESTERN

U. S. Government,
CORPORATE SECURITIES

State and

Municipal

COMMODITIES

Securities

Municipal

OIL & MINING

Bonds

SECURITIK

MUNICIPAL BONDS
telephone:

"

HAnover 2-3700

Direct Private Wires
Coast to Coast

•

Chemical
BANK & TRUST

Bond

Dean Witter
14 Wall

COMPANY

THE NATIONAL CITY BANK

Street, New York, N. Y.

Members of
and
San

Co.

&

Los Angeles •

•

Boston

•

OF NEW YORK

Corporation
Common Stock

To

T. L. WATSON & CO.
1832

on

Dept. Teletype: NY 1-708

Active

Markets

Dealers,

Banks

Members New York Stock Exchange
American Stock Exchange

Brokers

Commission

Orders

i

^

10 other

***

cDe,nvef

Spokane

OF THE

Executed

On

CANADIAN

H.

G.

Bruns

DIRECT

Members Hew
Members

York Stock Exchange

American

30 Broad St.
Tel. DIgby 4-7800

f

Stock Exchange

New York 4
Tele. NY 1 -733




,

SO Broadway,

New York 4, N. Y.

Telephone WHltehall 4-6500

Teletype NY 1-1843

Bridgeport

,

Perth Amboy

WIRES TO

OF NEW

YORK

COMMON
All

DEPARTMENT
MONTREAL AND TORONTO

Goodbody
established

&

Spring

Brook Water Co.

f

♦

Canadian Exchanges at Regular Rates

Hardy & Co.

CITY

Scranton

Analysis

Ofer-tlie-Counter Trading Dept.
CANADIAN

BANK

NATIONAL

Western Cities

BONDS & STOCKS

SECURITIES

Roqueet

and

CHASE

THE

1915

Principal Exchanges
• NEW YORK CITY

^

Angeles

Department

CO.

Maintained

and

CANADIAN

Commodity Exchange, Inc.

Circular

Salt Lake City
Los

Bond

Honolulu

ESTABLISHED

BROADWAY

50

Chicago

Net

Alleghany

ESTABLISHED

Members of All

Principal Commodity

Secutity Exchanges

Francisco

J. A. H0GLE &

Co.

DoxMioTf Securities
Grporatioji

upon

request

IRA HAUPT&CO.
Members New

York Stock Exchange

and other Principal Exchanges

1891

members new york stock exchange
iis broadway

1 north la salle st.

new york

chicago

40 Exchange Place,

New York b.N.Y,

111 Broadway, N. Y. 6
WOrth 4-6000

Teletype NY 1-702-3

WHltehall 4-8161

Boston

1

Teletype NY 1-2708

Telephone:

Enterprise

1820

The Commercial and Financial Chronicle

Thursday, July 16, 1953

...

(198)

2

The

Security I Like Best

This

Forum

Their

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

in

and

(The articles contained in this forum

Companies

of New York

New York

Quarterly

Comparison

request

participate

Corporation
1920

Established

Member

Associate

American

Exchange

Stock

Broadway, New York 5

120

Teletype NY 1-583

BArclay 7-5660

the

to

enables him

in

situation

a

to

The

gain.

stock

Standard

of

Rights & Scrip

Members
New

York

American

120

Stock
Stock

Exchange
Exchange

BROADWAY, NEW YORK 5
Tel. REctor 2-7815

Trading Interest In

American Furniture

Bassett Furniture Industries

Camp Manufacturing
Commonwealth Natural Gas

George

L.

Barone

op¬

The

its

with

Lynchburg, Va.
TWX LY 77

LD 39

or

there

But

been*

glass con¬
are
serious

subdivisions.

three

aging of a variety of foodstuffs.
This
portion of the company's
business is by far the most prom¬

will

described

be

in

later.

Packaging
acquired
of Missisquoi Corporation

Standard
control

involved

storage

packaging
tainers

of

low

some

.

price

fected

a

aging

products

process

With

tainers.
ard

Canadian
Gas and Oil

items

flexible

in

this

Prospectus

on

request

able, there

are

currently about 90

of these machines in use for meats

to

other

Recently,

by two large cup man¬

ufacturers

dinner

in

sets.

Mar¬

with

New York 5

Dlgby 9-3430

saving

advantages

are

ob¬

vious and this appeals to all sorts

institutions

as

well

as

the

acquisition

aging

obtained.

vacuum

as

bacon
and
luncheon
being successfully pre¬
to
consumers I 'm
super-

packaged

are

sented

country.

the

throughout

The most obvious advantages to
this type




(3)

packaging are:

and

butter

branch

offices

Packaging can be
the Company's bread
line.

Both

have

pro¬

Oil

Company

as

Common Stock

Bought—Sold—Quoted

Company

may

even

under

exposed

to

as

In

the

meats,

delivered

already

sizes

venient

of

case

the

bacon

and

package

is

sliced in con¬
serving in the

for

sealed

package so that no con¬
tamination is possible.
(5) Easy visibility to enhance
consumer impulse buying is pro¬

duct

substitution

without

The

is

breaking the

impossible

195

—

line.

list

sive in recent years

large outlays
perimentation

necessary
on

the

for

ex¬

vacuum

30 Broad Street, New York 4

etc.

a

Telephone

high

WHitehall 3-2840

temperatures

requirsd.

are

With

indus¬

trial
in

activity

the

United

contin-

States

Uing at such

THEN and NOW

a

high level, we

fresh up-to-the-min¬

has

there

been

ex¬

an

industries, both
efficiency, so

many

and

in

with
is

the

back

the

which

in

some

April 30,

tablished

entered

We

with

an

it

date

dealing,

are

old

well-es¬

business.

About

three

and

the company

Book

Value

6 Months

.....

half

a

costs

products.

embarked

substantially
benefits

are

financing
because

on

improve

completed,
showing up
funds

retained

upon

request

1. h. roihehild &
52

wall street,

york 5,

new

HAnover

-

co.
n.

y.

2-9072

LAMBORN & CO., Inc.
99

WALL
NEW

now

the
No

for

this

and

came

for

use

STREET

YORK

5,

N.

Y.

a

now.

required

the

'9*

SUGAR
Raw

—

Refined

—

Liquid

its

is

program

was

all

earnings

and

This

1.43

13
market

years

of, roughly, $3,000,000 to in¬
crease
capacity, reduce manufac¬
turing

20.99

1.26

Market

Analysis

$690,000

18.03

Earnings

calling for the expendi¬

program

1953-

Long Term Debt.. $3,000,000

25

much

as

Exports

Imports—Futures

Dlgby 4-2727

from

in

the

business.

Earnings
stock

in

on

the

the

common

past
as

five

follows:

Year

Per Share

1948

$3.86,

1949

2 19

1950

3.82

Quotation Services
for 40 Years

3.17

is believed

that earnings for
the first six months of this calen¬
year

Over-the-Counter

4.65

1952

It

capital

calendar

will be close

to

National Quotation Bureau
Incorporated

$2 per

Established

1913

i

share.

The

refractories

industry

has

46 Front Street
CHICAGO

Continued

on

page

24

1

April 30,

1"~>1

Ohio,
This

about

-

constituent

instances

ago.

years

therefore,

ture

formed

but

ago,

50

operating

Missouri.

and
was

divisions

American

Pennsylvania,

Kentucky
years

North

Company,

in

company

the refractory in¬
which I am
most

'

*

^

Newport Steel Corporation

"Present

unit

plants

dar

because of the

Gordon Graves & Co.

glass, oil re¬
fining, chemi-

as

L s,
where

familiar

builds

Earnings have not been impres¬

such

steel,

c

a

—

neces¬

in

lines

capacity

The

vacuum.

month.

of

★

the

on

sities

as

dustry

and in¬
stalls the machines and the profit

per

them

high

years compare

Company

would

place

has there been in the refractories

ago

(4)

indispen-

This

take

to

oxygen.

luncheon

the

de¬

ute look at the refractories indus¬

as

original color

of

been

high temperatures are used.

Refractories

Vacuum packaged meat re¬

tains its

terials

Standard

considered

our

Commonwealth

attractive.

have

one

as

pansion in

apparent

is

Missisquoi therefrom is nominal. Standard
was a smart move on the part of
Packaging, however, supplies all
Standard. An additional source of the materials used for wrapping
raw
material has
been secured, on which an excellent margin of
earning power has been added, profit
is
realized.
The
latest
diversification is broadened and models now being installed can
top quality management has l^een use up to $8,000 worth of ma¬

of

to

HAYES

Edward F.Hayes

of

The Liner and Closure Divisions

Teletype NY 1-2078

ever

a

keting studies indicate a tremen¬ vided by the transparent film.
dous potential for this new item,
(6) Brand identification in at¬
particularly
with
middle
and tractive colors and designs can be
lower income families. Also, the printed on the package and pro¬

housewife.

Morgan & Co.

31 Nassau St.

as

sheets

or

Missisquoi
developed
a
plasticized
paper
plate, printed in attractive de¬
signs and which, at a distance ap¬
pears
to
be made
of genuine
china. These plates are now being

The

Peter

sold

rolls

converters.

wires

throughout industry wher¬

considerable back¬
try.
log of unfilled orders. The growth
Just
possibilities of this type of pack¬
alone,

ing which quickly blackens meat

of
k

sables

Stand¬
opinion, is

paperboard

labor
,

and

baseball

insofar

North American Refractories

process.

other tickets. The balance of pro¬

is

Direct

;

Partner, Glore, Forgan & Co.,
New York City
Members New York Stock Exchange

con¬

the brilliance of flourescerit light¬

marketed

Speculation

pari-mutual,

as

football,

in

NY 1-1557

La. - Birmingham, Ala*
Mobile, Ala.

business has

so

F.

EDWARD

of vacuum pack¬

Packaging, in my

makets

either

St., New York 4, N. Y.

Hflnover 2-0700

all

_

price level is

scribed

.

duction

Exchange

Exchange

Packaging in addition

Refractories

(1) The
product
retains
the
production is converted into such exact flavor that is sealed in.
items as paper plates, food trays,
(2) The
product
stays
good
food pails and liquid tight con¬
under refrigeration for a longer
tainers. A
large portion of the
time, thus cutting spoilage.
balance of the production is used

An Attractive

the

uneconomic.

is

have
shown
impressive
growth. This company produces
paperboard and paperboard spe¬
cialties. About 25% of Missisquoi's
ings

theatre,

25 Broad

Stock

Stock

foods in small metal or glass con¬

April 1952 in exchange for
stock. Missisquoi's sales and earn¬

such

/

York

New Orleans,

per

earned

opportunity,

standing

there is the

the container,

meats

for

year.

New

Members American

is a big picture and in
opinion it represents an out¬

my

leakage of the con¬ installed in eight plants for the
finally; the Vacuum vacuum packaging of bacon. Com¬
Division which pro¬ petitors quickly followed suit and
duces materials and machines used although the Company has only
in the flexible functional pack¬ recently made the process avail¬

detail

<

sible. This

high

the

from

Aside

process

has

now

metal

to

preventing
tents, and
Packaging

and

Steiner, Rouse & Co!

$.30

were
was

its regular line of

consist of the about to hit the jackpot.
Closure Division, which produces
The vacuum packaging of food
the hoods and disc caps for closing in flexible and cheaper containers
milk bottles and designs, builds is a field which cannot be de¬
and leases the machines to in¬ scribed as anything but tremen¬
stall the closures; the Liner Divi¬
dous.
Armour
was
the
first to
sion
which
produces the bottle grasp the significance of this new
cap liners
used to complete the development and ordered a num¬
seal in nearly all bottles and jars ber of these machines which were

ising

-

expected to show

are

1953
than

Standard
to

subdivisions

The

in

3TRADER,TAYLOR & CO., Inc ■

until

up

in the ship¬
and
disposal
of
bulky tins and jars. Furthermore,from the standpoint of costs, the
ping,

Company has two
major divisions, Missisquoi Cor¬
poration and Standard Packaging

Dan River Mills

Life Insurance Co. of Va.

kept under vac¬

are

last

- of

After many years of experimen¬
concerned with
phases of the packaging tation, Standard Packaging per¬

various

:

rapid acceleration.' First quarter

earnings in
share, more

most of which are

itself

ffipONNELL&fO.

products can be preextended periods of

to use an intricate

difficulty

portunity.
The Corporation's business em¬
braces a wide group of activities

industry.

Since 1917\

they

cost of

believe, offers
an

over

if

limitations.

Ex¬

sell¬
ing around
$15 a share, I
such

served
time

tainers.

change,

Specialists in

Most food

profits

ever,
a

containers.

limited

American
Stock

1

Members

refrigeration—the vacuum
packaging of food in transparent

which

the

on

(Page 2)

packaging machine. Now that the
machine has been perfected how¬

develop what could be the great¬
est discovery in the food industry

essary

Packaging
Corporation,
listed

Bought—Sold—Quoted

jat low temperatures. While developed this revolutionary and
refrigeration has been highly de¬ dynamic
technique in the field of
veloped, vacuum packaging has packaging. The company's present
proved more difficult. In order to policy is to exploit this
technique
get an effective vacuum, it is nec¬ and add new ones whenever
pos¬

capi¬

common

Co.

uum

sub¬

a

stantial
tal

in

op¬

it is

which

possible

New York Hanseatic

itself

which

investor

secure

exceptional

presents

portunity
to

on

City.

since

alert

Available

City

Standard Packaging Corporation
an

Refractories

F.

Hayes,
Partner,
Glore, Forgan & Co., New York

prospects continue fa¬
the income
from
these
sources
that helped
finance the research necessary to

York Stock Exchange

Occasionally

Louisiana Securities

vorable. In fact, it was

Alslyne, Noel & Co.

Members, New

85th Consecutive

American

North

many

and

years

Security Analyst
Van

-for

income

stable

vided

BARONE

L.

Corporation

L.

—Edward

GEORGE

Alabama &

Barone, Security
Analyst, Van Alstyne, Noel &
Co., New York City. (Page 2)

intended to be, nor

are not

Packaging

George

—

they to he regarded, as an offer to sell the securities discussed.)

are

Trust

Standard

security

participate and give their reasons for favoring a particular

and

Selections

A continuous forum in which, each

Leading Banks

Week's

Participants

New York 4, N. Y.
SAN

FRANCISCO

,,..^1

Number 5238

Volume 178

__

,

'rr*

""**"•"**

.The Commercial and Financial Chronicle

..

(199)

The Future oi the
v'

'

'

„

INDEX

.

Refrigeration Industry
Electric

Shouldn't Americans

|

Company

Have

Gold

—Herbert M. Bratter

a

Coinage Again?

Declaring that

a

all-electric

an

the average

of

around push-button weather control

year

home

is

Mid-Year

try and

,

Foresees

it has potential of becoming

says

Cover

'

LAWYER

3

INDIAN

Heavy

_

Expansion for Light Metal—Ira U.

i

View

of

Marshall. Tito

.

Economic

Concocts

—A' Wilfred

*

.

Cobleigh.

4

Shishkin

4

All

Outlook—Boris

•

Obsolete Securities Dept.
09

May

their

us!

on

•

Communist-Capitalist Hash

a

CHIEF

dump

junk

Labor's

of the fastest

one

MAN

THIEF
DOCTOR

bright future for air-conditioning indus- V

a

Dewey Daane

The Future of the Refrigeration Industry—Clarence H. Linder

i,1

American's income, Mr. Linder reveals prospects
use of new electric conditioning

summer.

Outlook—J.

m

rapidly approaching within reach of

air-conditioning and the

in

wmmmmmmmmmm

MAN

POOR

Cover

^__

Economic

device called the heat pump, which heats in winter and cools
,

AND COMPANY

RICH

BEGGARMAN

The
•

page

pmtmmmmmmmmmammm

Why

By CLARENCE H. LINDER*
Vice-President, General

LiCHTtnsTCin

"

Articles and News

3

5

_

WALL

STREET, NEW YORK

Telephone: WHitehall 4-6551

growing industries during the next quarter century.

Republicans'

Unhappy

Legacy—Inflation,

Taxes,

'

Before talking about the future
of
the
refrigeration industry, I
should like to mention briefly the

-

equal significance.

,

Then

I

prospects

discuss

to

want

safely say that the household
refrigerator
provided
the
real

the

ing; about
still

dustry,
;know

a

for

_h

e c

about

the

t ric

the

"And
a

prom¬

erage

as

the
H.

Clarence

that

briefly suggest
be

must

under¬

immediately if the future of
refrigeration industry is to

ple fully

realize the significance
profession's contributions

your

-to

our

der

present way of life. I

if

engineers
Of

ever give a
thought
played by refrigeration
in shaping the pattern

future

our

in

way

won¬

they

to the part

which

will

we

the

and

economy,

live

in

I In order to comprehend the full
significance of refrigeration, it is
to

back

step

view.' The

panoramic

to

get

such

this.

as

history

Its

of

effect

Then, "look back only 25 years
so to a
period which most of

the

here,

men

at

least,

can

re¬

member.

In 1925, the new house¬
refrigerator was a luxury
item.
Only "about 1% of the 26

hold

fnillion

wired homes

the

in

coun¬

try had mechanical household

frigeration.

Compare

that

re¬

with

the fact that today, 87% of ap¬
proximately
43
million
wired
homes have mechanical refrigera^
tors. And by 1960, it is estimated
that 49 million of the predicted 50
million
wired
homes will
have
them.

Think of it!

Almost 99 out

of every 100 homes with mechan¬
ical

f

refrigeration,
major

has had such
and

nomic

amazing accept¬

an

impact

life * has

*

sales

Fresnillo Company

10

engineer

himself
the

—

The
'

for

Evaluating

John

G.

Problems

Functions

has

on

our

been

of

almost

Mr. Linder before the
Society ~ of Refrigerating En¬

almost

home

i

air-condi¬

;

'

■-

of

Our

Singer.^;
Policy
/

Foreign

!___

14

Newport Steel

14

__l

Punta

Your

City—Roger W. Babson

Factoring

and

Commercial

incredible, but
that

last

—Hon.

year,

food-freezers

—

Financing

<3>

16

Abroad!—Claudius T.

Murchison J

19

_______

Responsibilities
A.

Willis

in

of

that

refrigerator

Free

a

J. F.

World

Robertson

Incorporated

61
:]!

*

❖

Reports

Savings

Still

Uptrend

on

Direct Wires

NYSE

of

busi¬

Proposes New

Please

Post

As We

See It

Commission

Rates

18

:

Conspicuously!

Philadelphia

much.

Regular Features

•

The

story of the

air-con¬
Although still

room

ditioner is similar.
the

low

growth

saturation

is

pattern

The

industry sold

than

a

its

Bank

L

(Editorial)

Cover

Canadian Delhi Petroleuiro

and

Insurance

Stocks

J

19

phenomenal.

somewhat less

Business

:

Man's

Bookshelf

Cinerama, Inc.

40

half-million units last year.

By 1960,

Canadian

generally accepted esti¬

a

of

mate

phase,

volume

will

sales

ap¬

True,

r

merchandising

sound

Securities

*

Coming Events in Investment Field

proximate two million units.

Dealer-Broker

Investment

Delhi Oil Corporation

40

i

Recommendations

Doeskin Products, Inc.

8

methods must be given due credit

Einzig—"Britain Wants No More Dollar Aid"

for the

splendid job done in stim¬
ulating the demand for, and mar¬

Washington Ahead of the News—Carlisle Bargeron

keting of these useful and service¬
able

products.

mind

refrigeration
key

that

the

of

success

appliances has
just

the

industry

the

to

I would
engineers of

But

you—the

—

re¬

these

Indications
Mutual

of

Current Business Activity

been

well

-

the

"product

has "been

gineered.

'

Observations—A

•

Wilfred

May___

mented

now,

the

social

life.

our

Present

indicate

of

? Our Reporter
*
/M

♦

in

be

the years

We

have

to

'

look

";<• Railroad

6

•

Offerings

on

16

23

the

page

29

,

V

% *

"-i

at

The Market

;■

34

,

and You—By Wallace Streete

...

•

i

.

11

-

The

■

■-

Security I Like Best

2

The State of Trade and Industry..,..

;■

r

■

"

'*•

•.

5

*•

.1

Washington

and

You.

40

'

'

d
-*See

=»..

27

article

...page

_

"Financing

Canada's

Industrial

Expansion"

Established

on

10.
l

(

Gardens,

Drapers'

London,

land' c/o Edwards & Smlth-

COMMERCIAL and

FINANCIAL

CHRONICLE

•

Reg. U. S. Patent Office

E.

C„

Eng-

Y.

Subscriptions

.

possessions,

Thursday, July;. 16,

matter

second-class

1953

_

in

United

Territories

Pan-American
Dominion

TELETYPE N. Y. 1-5

-

as

Febru-

of

States.

and

U.

Members

S.

of

Union, $48.00 per year; in
Canada,
$51.00
per
year.

Stock

York

New

Subscription Rates

9576

Editor & Publisher

WILLIAM DANA SEIBERT, President

-

•

to

..

*

TELEPHONE HAnover 2-4300

2-9570

lOSSj^William B. Dana

y°rk' N' Y- under ,hc Act 01 Marcl1 »• lm

Place, New York 7, N. Y.

REctor

Members

Copyright
Reentered

H. Hentz & Co.

-

*ry, 25, 1942, at the post office at New

COMPANY, Publishers

HERBERT D. SEIBERT,

Exchange

ST., NEW YORK 4, N.

B. DANA

25 Park

1856

i

.Published Twice Weekly

*

The

PREFERRED STOCKS

York Stock

Exchange PI., N.Y. S

36

Corner

than 14,000 self-con-

Continued

40

Teletype NY 1-1825 A NY 1-1826

Securities.

Salesman's
.

'

reviewing the growth of the
air-conditioning
industry
as 1 a
whole, it was v interesting to dis¬
cover that just prior to World War
more

;

r
'
.;
Securities Now in Registration

J

In

no

HA 2-0270

25
'

.

Securities

Securities

been

prospects for air conditioning.

II,

Security

Utility

•

.

your

has

ahead.

only

Public

Governments

on
-

•

how¬

trends,

it

"

Prospective
*

economic and

that

39

*

-

that I have docu¬

importance

contributions to

Singer, Bean
& MACKIE, Inc.

5

;r

en¬

V

;

Prospects in the Years Ahead *r
think

Johnson Oil and Gas

24

Reporter's Report.

Our

'

I

12

26

News About Banks and Bankers

,

how

determined- by

.

Kerr-McGee

31

Funds

ful manufacturing business has al¬
ways

20

two

been the product,

the key to every success¬

as

L

i

From

Spencer Trask & Co.
BROAD

Los Angeles

sales

WILLIAM

25

*

39

By 1960, it is estimated that
will
be
half
again as

ness.

,

New

Teletype NY 1-3370

12

*

Members

Broadway, New York 6

BO 9-5133

SEC

f.

'

specialized in

Reilly & Co.

22

a

„

third

a

household

Alegre Sugar

16

___

Silverman

Dollar Shortage

America's

,

have

*,

*

'

*

No

units, and in dollar volume

approximated

gineers, Lake Placid, N. Y., June 29, 1953.

For many years we

.

,

Empire State Oil

13

Lee___

of

—Herbert R.

food

the

room

remains

of

million

its

%

,

(

High Tariff Country—Fred G.

a

will, at two

you

business still very much in its in¬
fancy-—amounted to more than a

the

Company

9

Campbell.

.

item

consumer

*An address by

American

H.

re¬

nothing compared to what it will
no

living
habits. Yet, the by-product of re¬
frigerator progress on our eco¬
ance

—Mrs.

appliance with which

and

fact

ever,

With the exception of radio,

other

Yardsticks

,

look, if

seems

the

on

food, transportation, and most im¬
portantly, the health of our peo¬
ple is all too apparent.
or

It

•

a

commercial refrigeration is a long
one
and needs no retelling to a
group

household

refrigeration

in

years to come.

-necessary

the

by

a

freezes

live up to its potentialities.
I often wonder how
many peo¬
of

Buda

Bridges^______j

tioner.
me

taken
the

6

Magic Panacea for Basic Economic Ills!

U. S. Is Not

result of the impetus

a

concerned

Linuer

Styles

—Kenneth

fast

are

largely

of the home

on

program

appliances

necessities in the av¬
American 'home
today,

Take

refrigera¬
industry.
then, let

tion

No

frigerator.

have

impact

an

6

at Europe—Homer D. Wheaton

Financing Canada's Industrial Expansion—J, R. Meggeson

$3

some

Peterson

i

major

provided

anew

to

ises

to

becoming

development
"which

—Hon.

appli¬
which

business

amounted

year

Many

and

o m e;'

the major

as

H.

Why We Should Restore the Gold Standard

■billion and by 1960 is expected to
become
a
$5
billion
business.

pump;

k

we

industry—a

last

"about the outo o

goods" ih- y
in -business

-

vice called the

all-e 1

"white

what

or

today

ance
:

de-

~

.1

the

Another Look

v

_

relatively

heat

for

spark

of

air- condition¬

"'unknown

Interventionism—William

we

can

,

past.

For I think

American

Exchange

Cotton

Exchange

York

New

Commodity
Chicago
New
,

Exchange

Stock

Exchange,
Board

of

Cotton

Orleans

Inc.

Trade

Exchange

And other Exchanges

Other Countries, $55.00 per year.

*

Albany

Boston

•

Manchester, N. H.

Private Wire

to

LOS




Nashville

•

Chicago

•

•

Schenectady

CROW ELL,

Glens Falls

•
•

Thursday (general news and advertising issue) and every Monday (com-

Worcester

Every

plete statistical issue —i market quotation
records, corporation news, bank clearings,

WEEDON & CO.

state

ANGELES, CALIFORNIA

-

-

and

Other

city news,

Offices;

Chicago 3,

III.

135

etc.).

South

La

Salle

St.,

(Telephone STate 2-0613);

"

Other Publication#

Bank and Quotation Record — Monthly,
$33.00 per year. (Foreign postage extra.)
Note—Qn

acCount

of

the fluctuations in

the rate of exchange, remittances for foreign subscriptions and advertisements must

be made in New York funds.

N. Y. Cotton

Exchange Bldg.

NEW YORK 4, N. Y.
CHICAGO

DETROIT

GENEVA,

PITTSBURGH

SWITZERLAND

'

'

I

4

,<fit

I*

The Commercial and Financial Chronicle...

(200)

Thursday* July 16, 1953

with

its existing power installa¬
tions, Aluminium Ltd. has prob¬
ably the lowest cost electric power

Heavy Expansion for Light Metal

aluminum, this cost

Wall Street"

Author of "Winning in

20

*

of

one

the metal, and a specific view
most fascinating producers on this continent
—ALUMINIUM, LTD.

its

„

The

is

with

trouble

that

all

us

today

for

everything

take

we

granted, and seldom stop to count
our
blessings or our gains. Like
aluminum.

of

lot

A
re-

us

member

30

,

,

.

J

.,

,

product

of

volume

bauxite

titanic

continuous

and

eration,

offered

were

merchan-

as

ore,

a

'

and

a

so.

of

supply

l

^

„

e

s

sold

or

agents

by

from house to

house.

then,
change

a

-what

an

ex-

of

p a n si on

usage!

Foremost

day is the
frames
and

to

fighter

and

bomber;
military needs, alu-

meet

minum

minds to-

our

of aluminum in air

use

for

in

production

stepped

was

of

story

aluminum

actual

manufacturers

is

better

known

than the technique of its production.
Before 1939 this wonderful*

light

Since
what

The

pre-

miums,

non-corrosive

produced

'

,

P generate, at the start,

metal

.

This can be

iiltirmfp 1

^wer(Roughlv
'

^00 000 horsevou

can

capacity.)

1928, Aluminium Ltd.,

Jamaican bauxite will dock.

from

in

it

consolidate

holdings
in
overseas, into a sepThe

unit.

Insatiable Demand

Well,

shares

common

we

fold

between

1939

and

Postwar, we have
blossoming out

seen

alu-

many

1946.

minum

directions

magic,

that

so

silvery

streamlined

in

many

find

we

light

this

metal

trains; in

roofs, sid-

Ivmnlr

in

nnH

KaHi

An

AO*

chairs for

beach, patio, and porch;
clothes dryers for the backyard;
stepladders for house painting and
hedge clipping; beach umbrellas
for

almost got sidetracked.

KUKLA

And

finally there

the classic tribute

is

ulous

fice

this fab-

to

metal, the all-aluminum of-

building

of

Alminum

=,
i
metal
oasis,

Im

While

Com-

ems
aluminum

monolith,
an
in Pittsburgh

so-called

Steel.
people have taken

is

metal

to

The

us.

story

is

the

makin's
.

of

aluminum

,,

,

earth

in

world,

rock

the

to

be

found

in

Southern

bauxite.

Carnbean

all

only

productive

seems

are

.

and

but

practical

tain

really

element

This

U.

over

S.,

cer-

in

countries

is

ore

and

in

Africa; some of these

areas

remote from what

sophisticat-

edly refer to

drtcd- thln

Don>t
DonX

lpt
let

Canadian

thp
tne

SDenin,,
sPelling

outfit

this
tftls

Gf
01

confuse

we:rT"s'till "talking
-

,

.

,

,

—_

but
but in
in Canada
Canada (and in Eng¬
Eng.

num
num,

lflnf1x

thpv

land)

ill<st
just

they
it

nounce

^11
spell

anrl
and

pro

differently.

as

we

p0„„nM0

umv_

and

Kaiser.

These

Metal

have

two

cnw

Son

nf

But

tntal

is

it

TT

not

o

of

economy

the

world. Twenty-five years • ago,
world annual production was a

paltry 300,000 tons. Now Alummium

Ltd.

alone

tons

a

produces

with

year,

maker

a

pro¬

quite

civilization.

would

Aluminium

ahnntnV the few mai°r

lum.

the

Prolect

whole

Ltd.

So

world—

here

we

go.
b

n

We

mentioned

1

to

me£ala where

of

of

sup-

bauxite

ore

as

basic

mines

in

British

River>

At this point let us introduce the main virtue of Alumin_

;um

Ltd>

its

fabulous

assuring it of cheap power today,
and, w^b projects afoot, of a
vastly

expanded

supply

of

same

for the years ahead.
Qn

the

waters

upper

of

the

Gold Coast
seems, within a

wbere nature

compact geographic area, to have

bauxite,

waterpower

Aluminium Ltd. is primarily a
producer of ingots which sell today around 2OV20 a pound; but it
also does some fabrication, principally in Canada and England,
with lesser facilities in a dozen
countries

around

the

world,

>

About profitability, this cornhas proved a lush venture,

pany

An

original

investment

made

are

those who believe

that

dy-

the addition of soda
it
it

becomes
becomes

alumina.

somesome

Then

the

alumina, in turn, is liquefied in
electrolytic furnace and

power-

.

"Tro"s"n~"
I about
.

wise

it!

Just

sense

If

I

II

I

IIII I

^

NI N

II

IN
ill

I

STREET

No

Whatever

wild

of

the

market.

your

will

help

K put /1d keef! you

! YOUR1^. Sfs.
come,

etc.

this ad and

send

DuuiH MrUou Pnmnonu
LfuVlu IIICr\dj

on

to

Inn

lompany, inc.

Dept. l, 225 Park Ave., New York 17, N. Y.

"""■

on

produced

the

-




from

Peribonka

two

River.

I

1952

Per

were

share

listed on
earnings for

$6.66 before

whack-

a

sound

f°r enough
from

Quebec

these

turbines

to

to Chicago and De-

tr0lt Wlth

dends
was

was

vouchsafed.

split 5-for-l

in

The stock

1948

and

2-

some to spare. So you
could almost consider Aluminium

fpr-1 last

^d'

it should!

dl?cbon f°r low cost—hydro-elec-

$5 in 1936 and as high as $63 in
1952 (adjusted for splits). Current quotations around 47%. $336

^ric> that is.

million of debt creates

as a king-size public utility
y°u were so disposed. And it
has the right kind of power pro(

that
?

+

V d, dams,

pleted, the

u

nancial fission

interests you,

This

common

a

and

sold

substan-

It is characteristic of capitalism

comwater,

to attract investment in growing
and
profitable
enterprise.
The

source,

1S conjinuous and costless and aluminum industry is both growI eve" dry years seldom reduce ing and profitable: and expansion
I

®
I

I

maxim"m available capacity by

0f production

?^ucha?4?%- The labor factor

over

^ exceedingly low

SiPa

d! .preciation,
the

monev

so

the

arejfiinancjal

pnn-

to

build

dams and buy the turbines.

is

the world.

companies

now

taking place all

But

of

all
in production,

the
cer-

ones— tainly in North America, Alumin-

and bond interest

raised

on

the

Thus,

panied by higher wages if living

a

standards

calam¬

is

ity not only to
us, but to the
whole
of

nations

sociated
in

us

"our

as¬

magnificent
has

vance

in

Another

and

related,

Shisbkin

Boris

self-govern¬
ment
against

economic

the

other

If

forms

growth of
of

our

key

is

ments

and
rule.

be

ture

world

ium

Ltd.

best cost

has, by all odds, the
ratio; and it bids fair to

continue thus.

plunged

the

of

Western

would

democratic

suffer

crashing

a

blow.

high rate
activity must there-

economic

a

fore rate top priority on the domestic agenda of our government
and be the first test of responsible

ad¬

been

recent

ac¬

past by

problem,

the

of

future

of the

one

citizenship

of

major seg¬

modern

a

closely
rate

machine

operating through mass
production and mass distribution:
economy

the

durable goods. Sub¬

consumer

already
taken
others, the outlook is
trenchment.
of

Measures to sustain

of

Twentieth

distribution of productivity gains
almost entirely in higher wages."

individual

to

view

study

a

ing the ideals

were

This
new

apparently

companied

affirm¬

dictatorial

rise.

by the
published by the

just

with

communism

to

are

supported

Century Fund, which states that

array

The

lines

some

place.

In

of

one

re-

problem is

one

complex adjustment to the
change in pace of our whole dea

fense economy.
If no steps are
taken to help maintain a balanced

transition,
will

those shaping
private economic policies.
Right now, our economy is not

curtailed

production

result,

of

in imminent danger of a depression.
Its
dynamic strength has
not been sapped by the series of

Unemployment Increase Looms
By the end of this year,
is likely to rise

unem-

ployment
least

half

a

trend

is

not

million.

a

to

by at
this

of hand*

out

get

If

dislocations and distortions

determined

brought

should be taken with firmness and

the

about

last

three

beginning

the

events

of

Yet, it is
widening

years.

to

reveal

of weakness

areas

be

by

which

need

to

reinforced.

confidence.

steps

sentative

Monetary policies that are beginning
to
emerge
are
com-

sustain

a

study

Congress

on

to

it

reverse

That is why the AFI*

has called for
consideration

economic

conservatism.

What

top level, repreto

of

made

be

the

for

session

next

policies needed to

on

prosperity,

is

Whether viewed

as

Fred Buesser Joins

they are being adminis¬
by the doctors twice bitten
inflation and four times shy

more,

tered

by
of

it.

in

on

Deflation
a

sheer

is

overdose

of

from

or

want

we

And

we

is

ser

its

the

ministra-

stable

also

are

The

anti-inflation

a wrong time.
Stability which we must s^ek is
not the stability of standing still.

What

Trust Go. of

likely to set
scale, from a

dangerous

election

tween

ple,

1950

and

personal

penditures

1951, for

Trust

announced

about

rose

all of this increase

for

was

7%.

Marshall

Hall,
d

in

of actual

goods and services
same

tween

1951

spending
real
in

1952,

But

was

Mr. Buesser,
formerly As¬

only about 2%. The

productivity, spurred
statement
discussion

W.

Buesser

sistant V i

c e-

President

and.

Manager

of

the municipal bond department of
the
Chemical
Bank
and
Trust
vestment

between

♦A

Fred

Corppany, has been engaged in in¬
banking for 38 years. He

Gains

panel

New

City,

15 Broad St.

share of personal consumption ex¬

Unbalance

t

o

with offices at

rise

Wages Must Match Productivity

de¬

com¬

in

pany

f

o

bond

York

was

penditures in national production
has declined 10% since 1950.

repre¬

partment

consumer

a

as

the trust

about 4%, but the

increase, adjusted for

prices,

Mr.
will

n

sentative

in both years. Be¬

and

rose

t.

e

the

accounted

B.

Presi-

Buesser
act

ex¬

by higher prices—the volume

about the

Bues-

Company of Georgia is
today
(July 16)
by

exam¬

consumption

W.

Assistant Vice-President of

as

growth.

concerned

Georgia

of Fred

economic growth that is real. Be¬

at

'akes millions

but, once

energy

if this type of fi-

year,

tial leverage for Aluminium Ltd.
common.

Pou-cr

Ll0W U0Sl row®r,

'

I^YSE.

common

big; well it is, ing depreciation of $4.17—balance,
juice is turned out $2.49 out of which $2 in cash divi-

may

Low Cost

principal

dust^ail"0' bank^3''stocks'
COBLEIGH etc.—this
book
Puih£rr?fr

This

"tips"

ITa' sS

deductions
student

By IRA U.

I

Let a veteran observer of
th?u stocki.- "!arke! Jshare '
market.

I

I

III

iiiiiM
WU I I
"HLL

■

and the

of

U/ I U y III D

*

dams

' suPPly current

common

guidance

? ml,lllon installed horsepower and
There are 9,002,668
1 leases another hal£ million shares of Aluminium Ltd.
horsepower

report
brought
out
last
February.
We pointed out that
productivity gains must be accom¬

future,
mean

a

of years ago would have
increased about 1500%, and there

score

and

Hme
lime,

AFL

tions at

"A Lush Venture"

shinned

else

near

medicine,

-

bv

and

the

growth ahead.
point made by our

the

was

pounded from the prescription of

sltes> and seaports,

hydro-

electric power generating
system,

Africa's

on

bunched'

,

Guiana,
from wbence it goes by boat to
Arvida, Quebec, principal alumina
plant, situated on the Saguenay

This

hi
n'
be one

to

^orT {be lonSer future Alumin?. bas, aiL
bitious

.

iowes^ cost aluminum

Aluminium Ltd.

tke

It

year.

surprise few in the indus-

AhmimfmfnnJr*
Aluminum appears

nrnrJllp

a

»« — ■ ™

in

one

in

come

above

capacity with-

of about 1,900,000 tons

ex_

competitor, the biggest,

This

America,

should

ing steady, stable

have

the

We want to talk about their

n0rthern

in

crisis

nomic, but also the political struc-

in

—
here.

but

™-e entire.free world. An eco-

nomic

vancing technology, and the real
consumer
buying power, is one
of the key problems of continu-

only

bigger

panded importantly so that, today,
they
oduce together somewhere
npar

not

stantial curtailments in

500,000

goTunder way-Reynolds"
«,«♦

is

big stuff and gettinS biSger and

gram to double that

Large U. S. Producers

States

the American people,

country
into major
depression now, not only the eco-

process

an

I

Com-

We re supposed to be outlining an
aluminum enterprise and all we've
talked about is power; so let's,get
back on the beam. Aluminum is

where

thing

I

Aluminum

to

"to*a plant Sa§uenay the company owns three "amia growth of Aluminium Ltd.
asnecial
chemicSl power generating sites with over has, by no means, been concluded.

asn
ash

I

of

dis-

were

dividend

a

of America.

from

Basis of Aluminum
The
found

as

ingredient. Well, Aluquite minium Ltd.
gets its main supply

lnteresting.

.

stockholders
pany

produced, its sales price

in the raw, and the sections of the
earth's geography which bring this

»

Ltd.

1928

ancj a|SQ

most

the advance of aluminum in stride,
they have little idea of how the
metal

in

seashore siestas; aluminum

our

foil for roasting turkeys; and the
television aerials for quiz culture
and

Aluminium

tributed

in

build¬
ings, doors and screens for buildfnnil
ings; in
in irucx
truck ana
and iraner
trailer comes;
bodies;
in luggage for our
travels; folding
iMrto'

of

United

to

freedom

,

up

t0

of

Alcoa

Canada and
arate

K

which emerged

the

major

Canadian corporation created to

a company

in

vital

aluminum from

was

countries; and in North America
by Aluminum Company of Amer-

I

would

3 H. P. installed electric

lines

of consumer durable
goods, and
problem in "a complex adjustment to change
of pace in our defense economy."
some

difficult

a

Assurance of economic stability

pro-

QErfL

European This ?°wetr s

in

foresees

far we ve taJ^ed only

expanded by more dams and tun,

curtailments in

gen-

^ a" alumi"
" £
" £
g
« P50 miles away
®rl? Paeiiic shore
inhere boats
™
™

wWely

ica, and
a

.

higher wages
rising productivity. Says there has been substantial

accompany

the increase.

on

450>000, horsepower

mi,.

o

r

hydro electric

"lstanc!®.' at K em a no, British
Columbia, the company is now
building a dam and a long water

efficient competi-

more

costs can ac-

power

u^Uinfe^1"gi^°^pr*
Fn?
blS increases in the offing. For

tors.

•

,

d

Ira U. Cobleigh

lose out to

are

Federation of Labor

In pointing out importance to whole world of
maintaining eco¬
nomic stability and growth in U.
S., American Federation of
Labor economist says chief problem is to have

while Alu-

as

down, costs of electricity
S., whether derived from

go

in the U.

so

or

out, and

runs

important,

natural gas, or

low cost electric power:
I say
ago
when "low cost" because, power being
aluminum such a vital ingredient, if it costs
pots and pans too much, it will cause a mill to
years

is

dually

the

bottom of same. It all sounds so
simple but it actually requires a
great

depreciation

minium Ltd.

,,

to

lot of water transportation

Director of Research
American

government-al¬

bond redemption reduces interest.

This

,

aluminum,

accelerated

lowed

ful electric current gravitates the

final

By BORIS SHISHKIN*

to around

runs

pound—and should go lower

a

after

A swift outline of aluminium,

of

Labor's View of Economic Outlook

in North America; and, applied to

By IRA U. COBLEIGH

the
on

rising started in 1915 with Potter, Choate
by ad- and Prentice, members of the New
York Stock
Exchange,
and
in
#

by
at

Shishkin

Mr.

the

Institute

of

in

a

Pub-

Chariottesviiie^Va'^'juTy*8,

,.

...

Succeeding years

W3S

__

.

With W. A.

Harriman and Co. and C. F.Childs
and

Co.

large-scale electric power com¬
pany, or the biggest maufacturer

-

a

in
is

its

industry.

less

clouds

fields.

on

today in

annear

an

Aluminium

distinguished

a

:

with

horizon

than

its

many

Have you

ever

aluminum-lined

box?

Alfi^rl F

investment

Alfred
in

deposit

E,

Hamill

Chicago at the

age

passed

away

of 69.

Prior

t

his retirement in 1947 he

a

Partner in Goldman, Sachs &

considered

safe

Hamlll

/Airrea c,. namui

Ltd.

company

,

.1.,

was

or.®

Company.
1

Commercial and Financial The
Chronicle

Number 5238....

Volume 178

State of Trade

Commodity Price Index
Food Price
Auto

and Industry

Failures

business conditions
industrial production slipped slightly in the week ended Wednesday, July 8, as
many plants closed for vacations and inventory-taking.
Nevertheless, total industrial production continued to be moderately
higher than the level of a year earlier; it was down mildly from
the postwar peak reached in recent weeks.
Electric power pro¬
duction was off slightly from the all-time high set in the prior

of

weekly trade review of
Dun & Bradstreet summarize viz: Nationwide

week.

production was scheduled to rise

Steel

nearly three points to

last year was very sharp since
labor-management disputes cut output at that time. Automobile
production fell 20% to 130,937 vehicles but was up 64% from last
94.6% of capacity; the advance over

!

cumulative

1953

The

production of paperboard
and

64%

rose

were up

well
of

a

econ¬

of

on

Yugoslavia

today.
t i g a

v e s

well

tor
A. Wilfred

the

as

to

munist,

socialist,

year.

syndicalist.

is still

a

long

way

reasons

the

steel market,

Iron

ket prospects of the

with

foreign steel.

And it

But it doesn't

mean

to

converters,

brokers,

and

importers

ago.

satisfactory"

broached

that

capitalism

have

been

-

and

more

of

industry

.

the

economic

authorities,

of

government,
report that

and

the

out

unanimous

which

bureaucracy,

never

company-

central

that

market

lot of people thought would bring a down¬

quarter.

its

learned

,

predictions the shrinkage would

the

decisions

of the

in lieu

of the

needed

are

decisions

of

bureaucracy,"

the

a

reported to

But as time went by, the date for a

me.

a

pay

rate

has

50%

executives
sales

are

prospects

Another

capitalist

production

bonus,

device,

for the

for

incentive

bo¬

output above established norms.
in

Also

35

nuses

are

offices

35%

paid

to

"Profit"
Thus 35%

of the gross revenue

Treatment of Wages
Taxes

are

wages.

t ak e n

Basic

income

to

stimulate the
tive for invention.
In

agriculture

-

for his own use.

And this writer can bear witness

wages

are

t0 the fact that the traditional capi-

pursuant

enue

minimum.

prescribed
it

is

of

to

In
rev-

excess

divided

individual

retain a strip of land —now
limited to 10 hectares (about 24.7

can

acres)

earnings or losses, the basic wages
likely to be reduced,i but are
maintained
above
a
floor of a
advent

the

between

sup-

talistic

dodge of tipping

welcomed

by

is thor-

all

shipped by mills.




It's significant that steel company
Continued

on

page

33

former
cal and

slavia's

government's

price-controlling are typi¬
revealing. J. Daviso,.Yugo¬
"Leon

charge of setting

Henderson"

in

the prices, ex-

and

sundrv here
.

domestic econ¬
including its anti-capital¬
ist aspects in industry and agri¬
culture, will be further analyzed
in this space next week.
Yugoslavia's

omy,

ESTABLISHED

18941

STATE AND MUNICIPAL BONDS

CORPORATE BONDS
LOCAL STOCKS

'

Those products comprise more than half of the tonnage of

incen-

be-

are

state

patent law protection

to

out

ing department and the workers
committee. In the case of reduced

thp

is

There

afforded

Production either

The results of the

collar

white

Price Control Fiasco

large tonnage

the

paid

is

increasingly optimistic

structural shapes, bars and seamless tub-

insti¬

been

greater than

declined or at best re¬
mained sticky and unsatisfactory.

sales

mnrp
more

other incentives.

actually

fourth-quarter

finished steel

pnnetantlu
constantly

member of the economic ministry

postponed.

items like sheets, plates,

ing.

fn
to

for regular time.

Yqc/

in the face of all
office super-plan¬

possible to coordinate production
with the demand for goods.
"We

a

of this year, says "Steel," the

'

-

at

consultation between the account- oughly

industry and agriculture
did
the
communist
techniques
meet with failure. Talks with the
in

rPcnrt
resort

+n
to

qnt
ent

workers.

geared

In both

profit-sharing

aPPeal> it bas been found expedi-

tuted

5

Under slogans as js used for wages and other purof the state,
p0ses, or as plough-back of the
socialism through enterprise.
,

,

More Incentives

In addition to the

Overtime

5
__

sojv ot up-and-down decentrali-

zatlon*

numerous

——20%

Depreciation

the best from all systems.

both

,

,

.

away

good demand for

like there'll be

Earlier this year there were

the

materials

Raw

Revenue
Less;
definite
Company tax (50%)

ning, finally found it wholly im¬

quarter

the fourth

That's the quarter a

Steel

^ess Costs:

actual

Good Fourth Quarter Demand

weekly magazine of metalworking.

about

7

—

-

fore

of

third

100%

Sales

methods," "free enterprise without capitalists," they are
constituting the experimental laboratory for the attempt to glean

elicit

Business

ceased to spawn,

"Steel" Magazine Expects a

the

agriculture.

country's

a

,

.

.

30

Failure and Disillusionment

cludes "Iron Age."

was

the

capitalist

early decline in demand.

Starting
•».

•

failures of
bureaucracy
which

"rediscovering

steel.

Why? They can look at
their order books, they are within telephone reach of purchasing
agents, they have just raised prices without much squawk from
customers, and they do have to buy scrap.
Below-capacity operations undoubtedly partly reflect some
easing of extreme pressure on the mills, but not lack of business.
Lower operating rates are directly attributed to (1) vacations,
(2) maintenance, and (3) hot weather. By all-out efforts mills
could raise output a few points higher, but cost of producing the
additional tonnage would be great.
Steelmaking operations this week are scheduled at 96.0% of
rated capacity, up three points from last week's revised rate, con¬

in

beyond

was

the

by

"democratization"

to

'

come

whereas

—

these decisions were
exclusively from the

New enterprises are inaugurated
possibility for this ln a number of ways. Frequently
to work; that production was hurt ? P'ant is prompted by the exis(despite
authoritarian
prodding; mg collective s expansion of a new
and
despite the control of dis- Preduct-Avith the permission of
tribution"; it was found necessary the local authorities. Sometimes
—and
popular—to
de-control anew Plant is authorized by local
nearly all prices
(even though 9. y managers and the municipalthis clashed with Moscow before
Perhaps using tne municipalthe break in 1948).,Now the govs own funds, or funds boreminent controls only nine items r°wed from the national bank. Ur
oil, tobacco, matches, fats, sugar, Perhaps one of the republican govbread, medical items, rents, and ernments (as Serbia or Croatia)
railroad rates.
All other prices may,
clfle
n:,e,,a Plant, and
are determined
by the workers' supplies the capital from its own
committees together with man- 5^*1
Pli on
other hand, the
agement in accordance with free ??
may s^^H"
market supply-and-demand.
late the idea that a new P-ant is
needed and appoint a committee
Aura of Capitalism
rmf
a
•
•
In creating an aura of capitalThe central banks decisions on
ism the regime hasi created nu- £ecluests for new capital stems
merous capitalistic
devices.
In iT0?1 long-term planning by tne
the present set-up of the indus- * ec*erai
Government,
tnrougn
trial
enterprises
no
longer
is Parliamentary
committees — on
profit (zarada) a dirty word. In wbich committees the workers are
the system of the workers' col- represented.
represents a
it

that

Bureaucracy

ing of major decentralization, and

the "experts" have repeatedly under¬
This time even steel officials, who
noted for their conservatism in estimating markets, are not

decline

commun¬

practice the regime set a

In the past several years

•

syndicalist method

of.

two to three hundred thousand

change in its course to the embrac¬

"withering

fall.

than

experienced in

in demand.

more

Yugos insist that
practicing state

From

centralized

and

through

distribution

Interest

Stimulated

up by other customers. Cancellations are nowhere
epidemic proportions. They seem to result more from over-

It looks

is

rather

Retreat

quickly gobbed

steel

directed

the

through bureaucratic

The

ordering and revisions in defense programs than from any failing

an

is

ism.

by high cost pro¬
ducers. Consumers will not pay premiums when material becomes
abundant at regular prices.
Premium producers know this, and
they'll price their products competitively when order books grow
thin, observes "Iron Age."
v .
Cancelled tonnages that have become available have been

predicting

"Yugoslavia's

Kremlin

the

Steel is still being sold at premium prices

are

line

i.rv...>vin;ni

tyranny."

for

economic

by Tito and his lieuten-

communism

pace.

demand

then

lectives hammered out since 1951
the "corporate" bookkeeping is
true
brand of Marxism in
concarried on under the following
trast to
Moscow's perversion of divisions:

Carryovers of (promised but undelivered) orders from third
quarters are just about certain in sheets (both hot- and
cold-rolled), bars, and light plates.

estimated

problems
typi¬

technical—a

handed down

consists of unceasing protes-

ants

plenty of business on mill books.

r

in

foremost

The

that quality must be kept up to snuff.
that demand has lost its zip, notes this trade
means

to fourth

near

agriculture,

and

of Moscow's book.

of

not appreciably smaller than

are

definition

which
their practicing of traditional communism—
at least according to its version

Order backthey were several months
Fourth quarter books just opened are filling at a "highly

logs

of

experienced

were

tation
still

market-economy

difficulties

industry

weekly.
There's

of

partly from the regime's
major failures in producand administration, both in

tion

mills.

news

zig
non-doctrinaire

a

actual

consuming industries are still going great guns.
agents will buy if the price is right. But none
of them want to be "stuck" with high cost material that will make
1 them look bad when the market turns softer.
bad

com-

actually

result

Major steel

is

has

or

following

—

dostrinaire

over

bit

a

The

a

Their purchasing

This

com-

coloration added in.

Scrap Composite Price rose $1

Steel

loss

a

collectivist,

Possibly

into

at

system

combination of all these elements;

though easing,

from saturation:

Age"

,

her

call

munism—she

ton
to $44.83 per gross ton. This is the eighth consecutive week this
price index has advanced. Steel scrap prices usually reflect mar¬
"The

is

official,

disillusion

zagged

May

gov¬

ernment

the decline in steel production the past few

main

board

produce and in what quantities,

items;

whether

the

Economy

all

on

the

from

This

range of human

The
i n-

visiting

weeks and was up 37% from last

a year ago.

are

cal

not

are

possible to fix the economic price

seems

Flour milling was up fractionally from
4% from last year. Butter making dipped
3% to the lowest level in eight weeks but was up 16% from last

Here

decisions

makes

which

previously
Domestic

s

appointed

councils.

Sng

This

the prior week and up

31% from

members

there is considerable freedom
of decls£" ufor *he worker-manthe output. If price controls didn't agers.
With the elimination of
work, the choice of consumer bureaucracy around factories now,
goods
was
experimentally
but despite a 30% decline m the efunsuccessfiillv varipd
fective labor force, there is 30%
Then
thai it was im- ™'e ™tertal Produced.

to

and

resident

Don't be fooled by

-

-

eminently true

weeks; consumers are still anxious to buy more than can be de¬
livered at regular mill prices, according to "The Iron Age," na¬
tional metalworking weekly.

'

a

production fell 10% to a new low for the year but was

up

Yugoslavia

on

omy.

orders

as

Meat

Series

a

mani¬

the

mixed

year.

'

at

festation

65% from last year; the order backlog rose

24% to the highest level in four

-

arrive

may very

from last year; new orders

level in 10 months but was up 61%

/

of

definition, this

to the lowest

declined 11%

10

.

to

192 millions and were off 50% from last year;
total topped that of 1952 by 14%. Lumber

production dipped 2% but was up 12% from last year; new
slipped 2% but were up 8% from last year.

as

trustees

BELGRADE, YUGOSLAVIA— plained his difficulties to this Economic Ministry in Belgrade.
describing a country's eco- correspondent at length.
From
Whereas until two years ago the
nomic
system, it is, of course, 1945 through 1948 the govern-* government controlled all decidistracting to harp on semantics, ment
rigidly
controlled
every sions regarding what to produce,
Nevertheless,
commodity and service. The state whore to sell, where to spend
when
observ¬
•bureaucracy allotted raw mate- earnings, where to buy raw mateers are unable
rials to every factory, told it what rials, with quotas for everything,

be

tion dropped 25% to
the

regarded

are

autonomous

In

week for civil engineering construc¬

awarded this

-

workers'

organizational set-up of industrial workers' collectives.

new

Part I

year.

Contracts

profit-

the

of
capital
equipment.
The managing board, consists of

report from Yugoslavia, Mr. May describes Communist
regime's disillusionment stemming from production failures
and bureaucracy's chaos. Cites swing to use of capitalistic
incentive devices, including profit-sharing, as air integral part

f

In their excellent

*'

to

appeal

state-owned

lit

J

-

quasi

Index

Production

Business

to

sharing incentive.
The enterprises

By A. WILFRED MAY

and

of the enterprise.
compensation technique is

This

Communist-Capitalist Hash

Trade

basic wage,

5

purposes

devised

Carloadings

.

other

a

Electric Output

Retail

'

plements to the

Marshall Tito Concocts

Production

Steel

The

(201)

RHODES-HAVERTY BLDG.

ATLANTA

WALNUT 0316

LONG

1, GEORGIA

DISTANCE 421

6

(202)

The Commercial and Financial Chronicle

Thursday, July 16, 1953

...

♦

there

Republicans' Unhappy LegacyInflation, Taxes, Interventionism
By

WILLIAM II.

Professor of Economics,

the

the

following economic principles: (1) government is not
Claus; (2) government does not create money in

productive

week

It
ft

the

was

best of

the

was

the

was

worst

deadly

leapfrog but

of wisdom,
It was the age
of foolishness
ft was the spring
of hope,
It

age

the winter

was

,
.

.

.

Who
of

of

is

is

money

when

The
the

Cities,"

chaotically

free

abolition

the

Europe

century,

but the de¬

the

ail

pitiful. The

fits

pound

United

mark,

States

in

1953

days.
well

xipectancy,

e

the

com¬

placency

hardly
fied

of

be
Dr. W.

view

our

of

on

and

other

to

A

would

we

back

way

the

deficits.

sounder

dollars.

hard

particularly

Taxes,

prob¬

second

our

great

prob¬

lems challenging the new Admin¬

lem under examination, "needs

istration

introduction." We know them too

all

and

tionism.

Americans

are

and
interven¬
These problems are ap¬
taxes,

when

parent

diagnose

we

our

well.

.schizophrenic

and

tions

be¬

by

sick

good,

well,

and

Here

us.

bad
see

we

few conflicting

are a

straws:
rate

The

of

unemployment has

rarely been lower, the Bureau of
Labor

Statistics

reporting an
figure of about

employment

million,

almost

fifth

every

older is

of

twice

most

But
or

relief, in all 2,700,000,
a
tragic inflation, al¬

on

victims

IV2

65

person

as

many

at

as

to

have

the

pay

the

on

the

the

worst of the Thirties.

if

to

of

to 92%

up

profits

better

way to
investment in

prise

which

jobs

a

and

time

running at

are

high,

mark.

But

this

is

the age of the 530 dollar, and esti¬
mates put the loss of savers who

held their savings in such volatile
form
as
bank
deposits, savings

bonds, and insurance policies dur¬
ing the
of

past

$200

12

)x>wer,' almost

in

the

upward

purchasing
cost

U. S. of World War
•V.

at

years

billion

t,

to

II.

the

-

Ct.

what

is

three

our

firm

the

—

our

inflation, the first

problems under

source,

sav¬

Thus

it may well be that
obliterating
savings
may
progressive unemployment

the

put

diminution

of

living

our

needed

nation's

enter¬

provide
and

more

cheaper

I

.writes

moreover:

effective'

and

unrivaled

both out¬

demand

can

expect

can

that

of

to

would

national

achieve

be

.

The

.

good

accomplished

doubling the incomes
.

income

the

by

of everyone.

government

is

weak

on

moral grounds when it takes more

than half of a man's income. The
fact that buyers have
paid him for
his
services
is
proof
that
he
it."

ment,

that

the

govern¬

openly

professing to favor
small
business,
hampers
their
growth so effectively. Mr. N. R.
Caine, financial writer for the
Scripps-H 0 w a r d
newspapers,
wrote

this
past
January, "The
crippling effect of the high normal
and

excess

profits

rates,

besides

that

most

of

it

about

is

not

pocket. Rather most of
we

pay

in

lars

out-of-

the

taxes

"shifted"

are

the form of

us

taxes

(passed
higher price)

a

on

to

indirectly, hidden.
Two dol¬
and ninety-five cents of the

$9.55 telephone bill goes to taxes.'
Five cents out of the 12-cent bar
of soap goes to taxes.
More than
three cents out of the dime
candy
bar.
Fourteen cents of the 27.5
cents

the

for

gallon of gas

a

government.

pensive.

well

as

Taxes
as

goes
are

to

ex¬

deadly.

strangulating

profits

tax,

have

small firm to

undistributed

compelled

the

seek

outside capital
to stay in business. These
high tax

impose
an
even
greater
hardship on the small company
than on the
larger ones."
Taxes

the

formidable

terventionism,
being grappled

look

us

problem

of

problem

a

with

by

in¬
now

the

new.

Administration.

Professor Ludwig
Austrian
economist

Mises,

von

visiting at New York Uni¬
versity and expert on the subject,

says

that the aim of intervention¬

ism

is

"the

establishment

mixed

economy as
system of economic

also

are

The

the

of

management.

interventionists

endeavor

restrain, to regulate,

and

to

'im¬

to

prove'

capitalism by government
interference with business."
Has
interventionism
hindrance to American
men?

put

Two

first,

a

are

government

a

then

secondly,
Lowell Mason,

man.

been

business¬

knowing witnesses

forward:

man;

,

business¬

a

a
commis¬
sioner of the Federal Trade Com¬

mission

and

rcrutiny? The economist describes
inflation

business

aimed,

with

deadly accuracy, at those whose
^incomes are "unequal," i. e., the
iar
incomes.
situation
where
too
Enterprises and
much u$per
1'j.oney chases too few goods. In managers, the great "unequal," are
so
< 'her
words people are
heavily
taxed
that
enabled
many with¬
<3
i

bid

as

the

dollars

excess

gainst

an

and

credit

inadequate supply

foods and

services.

advances.

So

that

the

the

to

hold

purchasing

onto

power,

die family
making $50 in '39 now
) oquires
$106.94 to match. $300
ten calls for $870.48

today. True,

riany

families

are

of

all.

ahead

in

this

a

L.*.

substance of

Peterson

it/Ury Club,

before

They

vacation" to the detriment

"In

the

democracy of

the

dead," said the late Senator John
Ingalls, "all men are at last equal.
There

is

neither rank

nor

station

nor

prerogative in the republic of
the grave."
The

case of

of the trend.
<Tfae

of

management from

altogether.

economy

"take

week in 1939

a

today

original

so

draw their invaluable services

risk-taking and
of

Result—price

much

i .rnily
earning $36
reeds $73.11

i ieir

all too famil¬

now

England is
In

a

sample

1950 only -30
per¬

had incomes of
£6,000 ($16,800) or more after paying their
income taxes.
The

sons
a

talk

the

delivered

Brooklyn

Brooklyn, N. Y.




by
Ro-

year

before

have

ade¬

an

quate
ard

and

is

even

being harassed,' bled,
blackjacked

crazy-quilt
which

of

are

state

of

jamin

under

unen¬

unfair."

witness

to

the

interventionism

Fairless,

- a

of

many

unintelligible,

forceable, and
Second

laws,

current
.

is

chairman

Ben¬

of

the

board of United States Steel
Cor¬

poration, who puts it differently:
somebody in Washington
starts
telling me how much he

"When

loves
and

the
how

from

Enterprise system

proposes

itself, I shake in

I wonder

appointed
tional

Free
he

to
my

save

it

shoes.

why it is that these selfsaviours

welfare

of

always

Continued

on

in

more

our

seem

page

na¬

to

25

transcending
knowledge

Her

what

much to

which

though

still

a

case

remain,

of them

are.

in point.

The

some

once again
impressed by
untiring efforts Germans are
making to reconstruct the coun¬

Buildings are being erected
hand, roads constructed,
railways are being improved

every

and"

and. modernized.
Labor
long hours and there is

works

spirit

a

of confidence and
optimism in the
air.

Industrially,

if

the

country is
in Europe;

the strongest
again it is permitted

once

rearm,

again

once

it

will

be

to
the

most

powerful.

The question then

will

be:

Germany

peace

Can

live

with its neighbors?

If

at

some

of

the "neighbors" are dubious.
Germany nevertheless is trying to

regain her
as

prewar

strength as fast
One phase of that

possible.

sustain and

While
not

the

be willing

yet

types

new

of

the

fact

remains

creasingly
in

this

Holland—In Holland, conditions
are somewhat different.
Just when
the country was at the
peak of
its postwar
recovery,
came
last

winter's flood, with serious losses

of

human

and

goods.

losses

While

cannot

the

years,

of

life,! livestock,

Dutch

those

for

recouped
had

the

solace

seeing how quickly friends in
nations

many

offered

clothing, and other
It

of

many

be

homes

was

an

••

money,

needed

items.

inspiring demonstration

of international goodwill.
•: Meanwhile,
internally, business
is good,
though not

moving

at

quite the

pace of 1952. Apparently
the situation in Indonesia has
not

become worse, and the Dutch

trying

hard

position

to

there

mutually

consolidate
and

their

to

work

satisfactory

basis

the natives of those rich

are

on

dnd im¬

islands. Nearer at home,
the main question in the minds of
Dutch

the United
continue

its

bankers

activity

throughout
There is

duce

a

in

the

next

fear lest

some

nation

America .might

a

pro¬

similar slowing up in Hol¬
be serious in a

the

where

population

countries)
new

there

unemployment

(as

is

already

and

in

so

where
many

is growing faster than

work onportunities.

Parenthetically, Holland is a
particularly desirable country to
visit, not only because of its long
acknowledged beauty, cleanliness,
good hotels, etc,, but also because
Dutch

prices

are

a

new

He is,

disposed

to

policy which appears

likely to strengthen the moderate
elements

throughout Europe,
improve the financial status
Europeans
in
general,
and
diminish

the

likelihood

of

to

of
to

war.

On the whole, he regards the pres¬
ent trend of affairs in Europe as

moving

than

toward

more

away

from those objectives, yet realizes
the ultimate decision may not lie
with

Western

Europeans.

Mean¬

while, business in Switzerland
good

Swiss

the

and

pleased

with

is

well

are

Government's

our

not

the

raise

to

tariffs

Swiss

on

watches, their most important

ex¬

port.
order to

France—In

the
is

understand

present position in France, it

to recall that during

necessary

the

first postwar years

concentrated

Europeans

improving the

upon

economic aspects of their lives.
was

matter then of

a

homes

and

training

building

It

new

factories, finding and
workers,

new

obtaining

seed for crops and importing ani¬
mals

form

to

herds.

the

nucleus

Everywhere

of

life

new

had

to

start anew, often under the great¬
est

handicaps.

The restoration
der

of

law

and

or¬

accompanied by the prob¬

was

lem of reconstructing internal and

international
lions

of

trade.

Tens

people

were

much

that

reviving
tional,

of

and

in

of mil¬

involved

in

tradi¬

was

adjusting

conditions of

new

the

numbers

in

the

to

first

years

which found

peace—years

counted

un¬

situations

radically different from any they
had known before 1939.

12

land.'. That would

some

case

whether

Stages of America can
high rate of business

months.
letdown

is

in¬

a

with

portant
many

is

he

great change

strongly

every

States

to accomplish
part of their new dream

in¬

seem

breaks out.

war

therefore,
favor

a

in

respect

European

decision

go

admit that

that

of

aware

recent

they will

to

-

may

directly to have vitiated his coun¬
try's age-old concept of neutrality,

United

It is

Swiss

warfare

entails unifying the East

Germans attach to unification nor
underestimate the lengths to

promote.

average

and West Zones. Americans
should
not overlook the
importance which

program

the

on

democracy and capitalism,
of which they have done so

both

visitor is

try.

In their

solidly

are

side of
Homer D. Wheaton

the

on

of interest

outside her

on

geography and prudence.

re¬

Germany is

lack

any

going

hearts the Swiss

improvement in condi¬
since 1945, than upon the

deficiencies

un¬

perhaps in Lon¬
neutrality is no

long
of

is

markable

serious

except

nor of any failure to dis¬
right from wrong. It comes,
rather, from
a
combination
of

properly

tions

connections

borders,

now.

the

The

cern

em¬

phasis is

its charm¬

influence far

monetary

don.

living.

the

remains

can

Switzerland

indication

stand¬

of

But

Dutch

Europe,

equalled

Eu¬

will

of

an

and

be

ropeans

permanent

a

has

of greatness. 1

Thirdly and lastly, let
at

self-styled "bureau¬
crat," recently stated: "American

our

o n e

nearly all
language.

our

her size, with financial

re¬

Western

it.

.Interventionism

1

An

case.

which

.

the

the

that

Banker

from.

already

finally

tage

speak

ing, tranquil, well-to-do self.

immense

>

Remember

now

too

far

upon

Slichter

double average per capita income
in just 30 years. No scheme of

What

rates

'K

What Is Inflation

Just

its

on

one

second tax of

discourage

better

Strange

the

one-billion

tax

First

all-

an

Bowery Savings
Bank of New York, for
example,
just announcing that it has passed
the

a

remain.

could

otherwise leaving
force.)
Yet
capital
or

labor

dividends declared

on

what

collector

70%. And then

goods?

Savings

tax

income.

the

stockholders—pay
from

is

incorporated,

the

same

up

owners

the

tax

Corpora¬
grievously hurt

corporation pays

earnings of

to

destroy."

For

companies

coined

power

been

taxes.

no

Justice, John

l&i9

in

"the

un¬

bedrock.

elderly

who

power

twice

Chief

was

dictum that

body politic and economic. It is a
economy,

It

Marshall

the

fore

retiring

re¬

older per¬

country with its
facilities for increasing

Second Great Problem

—

is

sen¬

lower than in most adjacent coun¬
tries. There is also the big advan¬

owuzeriana

been

before

allow for the

economic

That

d

pace

700,000 figure has been

earned

Taxes

largely

to

to

are not sufficiently
psychological area.

problems have
solved.

amount

successors,- redistribution

is

Europe's

mains

Dr.

is

that

year.

"This

the

bring collapse

billions

seven

standards.

may

countries

pression

com¬

and

re¬

debauchery of their

budget,

our

some

the labor force each

cause

the

Har¬

of

In discussing conditions in Eu¬

ing to

and

of

the

r

rope in the early summer of 1953
it is important not to give the im¬

annually to keep
with the 700,000 job-seekers

ings.

Russia,

his

to

Inflation

H. Peterson

tinuing problems.

inflation,

providing
capital

taxes

is

con¬

Three

of

of

Says Americans

sitive about needs in the

as

danger in

besides

Slichter

the

prouder

advice

government

balanced

justi¬

in

the

currency."
shoe

is

front

Lenin,

through

on

economic

the

home

the

times

points out the pressing need

sons

and

World

Communist

"The surest way to
to
the
capitalist

r e-

ncwed,

of

Sumner

solved and discusses briefly situation in
Germany,

.

Holland and France.

answer

our

another

arises out of but

all

—

and

Western

weigh

Nicolai

direction and

pride

fessor

standard

dollar

is

a trip to Europe this year as a followSays Europe's economic problems are

of last year's visit.

far from

dream of "getting rich." Pro¬

can

high and mighty

happier

The

father

of

sense

the

there

gov¬

sterling, the franc,
lire, the guilder,

member

hopeful

gold

and

dimming of the traditional Ameri¬

in their

over

describes

gov¬

spending

once

alas,

For all the

world

Clayton & Wheaton, Investment Advisors, New York City

Economist
the

confiscation-by-tax

not.

the

now,

well.

too

of

he

But

sound

a

has

Europe

By IIOMER D. WHEATON

a

away

middle

Perhaps

Hazlitt

the "age of envy."

responsibility of
negligence of

a

ernment.

a
description of
the close of the 18th

done?

(The

ernments

scription

it

a

are

of

£10

incomes does not contribute

duced

maintenance

of despair

and

Mr. Wheaton reports on

confiscating

a

affairs?
The

£5

up

is

responsible for this state

The
words
are
Dickens' from
the opening of his "A Tale Of Two

near

more

between

Henry

income-prices

many

corps.

since

vard

game

Another Look at

Yet, ad¬
officials, the
9,290,000 people

—

($14 to $28)—far and

upper

inefficiency and abuses.

times,
of times,

of

significantly to the Treasury, why

(3) the standard of living is not advanced
by political action, but only through ingenuity and savings;
(4) high taxes put premium on dishonesty and discourage job- %
creating investment; and (5) a top-heavy government leads

Tt

members

pay most of the taxes. The U. S.
is little different. You
may ask,

sense;

to

86

revenue

fellows

earning

Polytechnic Institute of Brooklyn

Santa

British

little

PETERSON*

been

dwindling elite

mit

Characterizing our economy as "schizophrenic," bad and good,
sick and well, Dr. Peterson reviews current
problems of Infla¬
tion, Taxes and Interventionism. Advocates recognition of

j

had

substantially

In

1945

the

devastation

was

widespread, the dislocation of
nomic

forces

lack of

the

age,

in

and

the

acute that few observers

predicted
even

United

ropeans

severe,

manpower! materials, and

money so

ment,

so

so

eco¬

the

present

improve¬

anticipating aid from
States.

have

Western

shown

great

Eu¬

cour¬

resourcefulness and initiative

rebuilding their lives after the

most destructive
But the very

war

in

history.

restoration in the

/

Volume 178

economic

rious
For

Number 5238

'

instance,

industrial

of

another

West

as

French

Germany's

has

power

type.

grown,

fears.

so

France

afraid, for within 70
Germany invaded her thrice

years
-and

twice

defeated

Now

her.

France, adrift politically because
of the factionalism of her internal

Government,
tarily

harassed 'mili¬

and

cost in money and
of the war in Indo-China and

men

by

despise.
In

j

returning

•

United

the

to

States in the summer of 1953, one

the

feels

the

economic

Europe,

gains

emphasizing

in

warranted

gains

are

much

edly

concern

lost

have

been

In the
power

tance
aware

But,

advice, and

are

making

and have undoubt¬

considerable

us

good¬

will.

Western

notably aided by American money,
technical

we

'ith Real Property

psychological sphere. They
causing our European friends

(Special

equipment.

equally important in a fair

Real

appraisal of the present situation,

of

its

States to

(Special

LOS

.

Cosmo

ated

to

The

Financial

Exchanges.

(Special

Financial Chronicle)

to The

Calif.

with

has

Lester,

—

William

Livingston has become connected
with

Investment

Standard

Co. of

Chronicle)

ANGELES, Calif.
Tanza

Street, member?,
Angeles

Hope

With Standard Inv. Co.

Inc.,

Lester, Ryons Adds

be

otherwise we may
in time the remedial
action lying within our power. 1

Stock

Drive.

Beverly

South

California, 87 South Lake Avenue,

John

—

He

affili¬

become

&

Ryons

formerly with Floyd A.

was

Allen

Co.,

&

Co.

by contributions to NATO, looks
nervously east.

If she

again

German

to

see

once

seems

soldiers

marching toward her, Americans
should

have

of

sense

sympathy for" that
insecurity and

NEW" ISSUE

historical

for the frustration the French feel

10,800,000

-

at

having

victory

gradually
tainty.

the

all.

another

shrewd

too

are

Be¬

San

menacing; and

more

even

French

turn

uncer¬

hovers

Germany

power,

1945

this is not

And

yond

in

profound

into

po¬

Diego

litically to be oblivious to possible
danger from that quarter.

School District

*"

The great need in France today
is

strong moderate Government

a

able

to

drastic

r collections

made

deal

the

in

San

asked to

of all

who
other

Additionally,

members may

1953 School Bonds, Series A

be

part of the cost of

assume

These and other methods for

storing
world

5%, Th%, Tk% and 3%

com-

currency

Dated

in Indo-China.

war

position

France's

power

as

to

how

discussion

much

Treasurer of

leads

action,- showing the
psychological impasse into which
France

drifted

has

ing also how, in

democracy,

a

In the

illustrat¬

and

opinion oj counsel,, interest payable
exempt from all present Federal
personal income taxes under
regulations and court

is

re¬

,

fusal

of

form

the

various

paralyze

the

chinery.

parties

to

coalition

workable

a

We believe these bonds

everything tangible like
clothing, and shelter, the

to make

men

is

French¬

for

rherely

gesture of

a

disgust at the snectacle of a semibankrupt. impotent Govpmment.

r

The

political
scure

travail

should

agricultural, industrial a^d
tic

resources.

unmindful

of

reputation

for

which

the

recently.
in

ob¬

not

artis¬

Nor

should

the

well-deserved

noDtical

French

be

we

have had

until

national

life provide

1.90%

1955

2.00%

5

1956

2.10%

5

1957

2.20%

570,000

2^

1958

2.30%

570,000

2}/2

1959

2.40%

570,000

23^

1960

570,000

2M

1961

2k

1962

2.60%

2k

1963

2.65%

570,000

570,000
Vv(

f

'

570,000

>

570,000

2k

1964

2k

1965

to

and subject
approval of legality by M'essrs. Orrick, Dahlquist, Hcrrington &
' . '
Sutcliffe;Attorneys, San Francisco, California.
offered when; as and if issued and received by

us

future.

570,000

23k

1966

570,000

2k

1967

100

2.55%

100

2.80%

2.85%

"...

2.90%

570,000

3

1968

570,000

3

1969

100

570,000

3

1970

100

.

2.95%

570,000

3

1971

570,000

3

1972

3.05%

570,000

3

J 973

3.05%

.

a

for optimism regarding the

reason

1954

5

570,000 '

arc

or

Price

5%

$100,000

School District. The Board of Supervisors

The above bonds

Yield

/

Due

Rate

are

cpcrppi+ir
.»

1"

be added)

These bonds, to be issued for various school purposes, in the opinion of counsel
will constitute valid and legally, binding obligations of the San Diego Unified

These essential elements

French

decisions.

of San Diego County will have power
and will be obligated to levy .ad valorem taxes for the payment of said bonds
and the interest thereon upon all property within said District subject to tax¬
ation by said District (except'certain intangible personal property,. which is
taxable at limited rates) without limitation of rate or amount.

of her great

realization

our

to

Coupon

570,000

evidences of France's

manv

1

Amount

and

national survival gave prece¬

tendency

by the District upon its bonds
and State of California
existing statutes,

legal investment in New York for trust funds
savings banks and in California for savings banks, subject to the
legal limitations upon the amount of the hank's investment, and
are likewise
legal investments in California for trust funds
and for other funds which may he invested in bonds
which are legal investments for savings hanks,
and are eligible as security for deposits
of public moneys in California.

war

dence to

food,

'

(Accrued interest

440,000

ma¬

Whereas, when the

present

AND YIELDS OR PRICES
»

can

policy-making,

ended, the struggle for individual
and

AMOUNTS, RATES, MATURITIES

District in New York, N)-Y., or Chicago,
America N. T. & S. A. in San Diego, Los

little

so

August 1, 1954-73, incl.

Principal and semi-annual interest (February 1 and August 1) payable at the office of the
San DiegO County in San Diego, California, or at the fiscal agency of the
Illinois, or at the main office of the Bank of
Angeles or San Francisco, California, at the
option of the holder. First coupon (annual) payable August 1, 1954. Coupon bonds in
denomination of $1,000 registerable only as to both principal and interest.
1

a

in that country. It is only remark¬
able

Due

August 1, 1953

re¬

freely discussed

are

Diego County, California

pay¬

The franc must

respect

it.

Nations

United

the

some

tax

equate

hard

a

>manding
-

and

income.

ments to

be

for

power

Its policies should include
measures
to improve tax

years.

-

in

stay

3.05%

Conclusion
,

Through Marshall Aid and other
grants, the United States Govern¬
has

ment

shown

itself

of

aware

the economic problems in Europe,
but
Americans
are
not
equally
sensitive

about

needs

the

few

Too

much
or

in

of

opportunities

psychological
politicians

our

the

about

because

great,

we

are

one-sided

Blyth & Co., Inc.

I

which

of

with other countries.
this

and too

criticize

Security-First National Bank

too

Weeden & Co.

R. W.

Pressprich & Co.

by

a

freely

much

often
harm

unguarded
of

or

foreigners,

considered

fail

realize

to
be

can

careless

laws.

harm

The

than

McCarran

good, and

Committees

are

us

far

John Nuveen & Co.

William R. Staats & Co.

Wm. E. Pollock & Co., Inc.

Heller, Bruce & Co.

alarming

■

Coin & Burr

A. G. Becker & Co.

Incorporated

Incorporated

W. E. Hutton & Co.

E. E. Hutton & Company

J. Barth & Co.
"

F. S. Smithers & Co.

Shearson, Hammill & Co.

1

Freeman &

Commerce Trust Company

Kaiser & Co.

Company

who

see

affinity

in

for




Cruttenden & Co.

Gregory & Son
Incorporated

City, Mo.

Ryan, Sutherland & Co.

them

an

very

City National Bank & Trust Co.

The National City Bank

Kansas City, Mo.

of Cleveland

The Continental Bank and Trust Company
Salt Lake City,

Stone &

Youngherg

Wagenseller & Durst, Inc.

causing

the

McCormick & Co.

some

methods by

grave mistrust of our

foreigners,

1

■

ill-

cft the investigations by Congres¬
sional

Dean Witter & Co.

'•

by

strictures

passing

by

or

done

Act, for instance, has done
more

The Philadelphia National Bank

Salomon Bros. & Hutzler

Equitable Securities Corporation

Lee Higginson Corporation

Kansas

how

.

of Los Angeles

i

members of Con¬

some

who

Lynch, Pierce, Fenner & Beane

on

openly. .This particularly

applies to
gress,

to

Merriil

influential

a»m o n g

Americans

San Francisco

Our position

aided

R. H. Moulton & Company

American Trust Company

The Northern Trust Company

Smith, Barney & Co.

a

teamwork

respect is not

disposition

to

founded

seem

sense

Lehman Brothers

Incorporated

,

so

making

constantly

decisions

adequate

is

power

our

Harriman Ripley & Co.

The First Boston Corporation

know

history, customs,

European do not

in

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

attitudes of foreign nations and

hence,

an

or

area.

July* 15, 1953.

H. E. Work & Co.

Hill Richards & Co.

7

of the New York and Los

PASADENA,

shortcomings in this

apply

623

Inv.

Chronicle)

Investments,

Property
South

it is of the utmost impor¬
for the United

The Financial

BEVERLY HILLS, Calif.—Edna
has joined the staff of

,

present struggle for world

vital respect, as
not

to

Shulman

233

in

which

mistakes

the

are

in the

•

has

be

to

reason

to

(203)

and Financial Chronicle

Fascist doctrines Americans claim

sphere has produced se¬

problems

have

The Commercial

...

Lawson, Levy & Williams

Utah

H. V. Sattley & Co., Inc.

Singer, Deane & Scribner

Irving Lundborg & Co. Stern, Frank, Meyer & Fox C. N. White & Co. Jones. Cosgrove & Miller Redlield & Co.

8

The Commercial and Financial

(204)

Safeway Stores

Memorandum

—

Chronicle...Thursday, July 16, 1953

Auchincloss, Parker & Red-

—

John C. Curran With

path, 52 Wall Street, New York 5, N. Y.

Dealer-Broker Investment

St. Regis Paper

Company—Analysis—American Securities Cor¬

Recommendations & Literature
It

understood

is

Analysis

—

Singer, Deane & Scribner of
Pittsburgh, Pa., members of the

Ira Haupt & Co., Ill

—

Broadway, New York 6, N. Y.
Seneca Oil—Report—-De Pasquale
York

5, N. Y.
Industries, Inc.

will be pleased

mentioned

firms

the

interested parties the

send

to

that

Singer, Deane Firm

poration, 25 Broad Street, New York 4, N. Y.
Scranton Spring Water Co.

following literature:

Sierra

Pacific

Also available

Co., 55 William Street, New
is

memorandum

a

Acme

on

and

Trust

Companies

consecutive

York—85th

New

of

Standard

quarterly comparison—New York Hanseatic Corporation, 120

.&

Steel

Stocks—Tabulation—White

Bank

and

&

Company,

Power Co.

Mississippi Valley Building, St. Louis 1, Mo.
Mutual
-

Funds

enacted

Pennsylvania

California

Memorandum,— First

—

as

City

Stocks—Comparison

Bank

of June 30,

and

analysis of 17

York City Banks—Comparative analysis of earnings—
Paine, Webber, Jackson & Curtis, 25 Broad Street, New York

4, N. Y.

Also available is

York City Bank

table of comparative

a

Quotation
York 4, New York.

Universal

Bureau,

able

over

Inc.,

13-year

a

46

Front

period

Insurance

Street,

Iron

&

Louisville Trust
Wisconsin

New

New

•

•

Paper Mills—Data—Moreland &

Company—Analysis—Sanders

Hawaiian

able is

Co., Penobscot Build--

Financial Libraries
Elect New Officers
CHICAGO, 111. —The Financial

Co.—Memorandum—Kentucky Company,

York

N.

5,

data

Also

Y.

available

is

manufacturers of

on
a

memorandum

Division

on

a

TV

Steamship Company

Review

—

brief review of Webb & Knapp, Inc.

Central

Maine Power Co.—Analysis—G.
Inc., 70 Pine Street, New York 5, N. Y.

A.

bulletin

tubes,

a

Firth

on

leaflet

annual

on

ada:

Warren Bros. Co.

The

Directors

(Special

Fundamental

of

ST.

Investors, Inc. and Investors Man¬

&

W

Co.,

Blake has
ated

mmmmm

Foods, Inc.—Data—Thomson & McKinnon, i 11 Wall
Street, New York 5, N. Y. In the same bulletin are data on

Curtis-Wright Co., Greyhound Corp., Marshall Field
Public Service Electric & Gas, and Wheeling Steel

&

their

Co.,

available is

bulletin

a

Eastern

on

5, N.
Industries, Inc.

Thomas

A. Edison, Inc.—Memorandum—Hemphill,
Co., 15 Broad Street, New York 5, N. Y.

Y.

respec-"

These

Street,

i

mutual

Watch

South

La

Co.—Memorandum—David
Salle

memorandum

Hart

&

257

Cooley

Chicago 4, 111.
Montgomery Ward.

Memorandum

memoranda

Kellogg Co. and Seaboard Finance Co.

on

No.

5, N. Y.

Also available

(Bulletin

Corp.,
Oil

No.

Shamrock

Oil

■

Gas

tabulation

of

memoranda

Corp., and

Railroad

on

Texas

Pacific

share

Affiliated

Commerical

Coal

of "Weekly Stock Bulletin"—The Nikko
Ltd., 4, 1-chome, Marunouchi, Chiyoda-ku,
In the same issue is a tabulation of new Jap-

Owens

Illinois

Glass

Company

—

Data

in

current

issue

of

"Gleanings"—Francis I. du Pont & Co., 1 Wall Street, New
York 5, N. Y. Also in the same issue is a list of
high yield
common

stocks.

Rainbow Oil

.

Limited—Report—Hayden, Stone & Co., 25 Broad

Street, New York 4, N. Y.
Riverside

Cement

analysis (Report C-20)—
Lerner & Co., 10 Post Office Square, Boston
9, Mass.

Rutland

Railway

Corporation—Analysis—Sutro Bros.
120 Broadway, New York 5, N. Y.

&

Co.,

F

Schmelzle
&

Co.

111.

is

Francis

—

with

Allan

P.

Blair

&

with

Blunt

Ellis

to The

to

Salle
William

J.

many

Financial

Blake

years

with

F.

Rice,

who

has

been

to

(Special

was

formerly with Reynolds & Co.

with

The

David

South
of

(Special

Chronicle)

Financial

Stock

A.

Noyes

Salle

La

the

Lamson Bros. Add

Noyes Adds Two
to

New

&

Street,

York

Co., 208
members
Midwest

and

Exchanges.

The

Financial

mer,

Jackson

has

joined

the

staff of

Re¬

South

La Salle Street.

The

Chronicle)

Financial

111.

—

Lawrence

E.

Freehling, Meyerhoff
the

of

Midwest Stock

he

past

New

with

was

and

York

Exchanges. In the
Bear,

Stearns

Co.

&

With McMahon Hoban

2

The

Financial

—

to The

Chronicle)

Financial

111. — William
J.
Hoffmann, Jr. and John M. Sherly
CHICAGO,

Chronicle)

Frederick C.

have

associated

become

Boulevard,

members

of

with

recently been with Taylor & Co.

the New York and Midwest Stock

In the

Exchanges.

& Hoban.

(Special

to

The

Carmel

has

(Special

Financial

CLEVELAND, Ohio
E.

past he

was

with McMahon

With Walston Staff

Joins Field, Richards

Chronicle)

Mitchell & Reitzel, Inc., 208

Co.

Sealy has been added to the staff McMahon & Hoban, Inc., 105 South
of Lamson Bros. &
Co., 141 West La Salle Street. Mr. Sherly has

CHICAGO, 111.—Adolph C. Zarbock

to

CHICAGO, 111.

Remer, Mitchell Adds
to

was

Illinois

the

Co., 120 South La Salle Street,

members

(Special

CHICAGO, 111.—John T. Coyne
and
Theodore
Meyers are now

Arnold

Mr.

with

Freehling, Meyerhoff Adds

&
S.

with The

in La Salle Street for
many years,

Simmons.

David

>

Corp., 231 South La

Street.

previously

Abt is with

Moseley & Co., 135 South La Salle
Mr.

>

Chronicle)

Financial

CHICAGO,

Chronicle)

become associated

Street.

;

become associated

First Boston

z-

The

for¬

part¬

CHICAGO, 111. —Hazeri S. Ar¬
Jr. and Randolph D. Bucey

(Special

has

Faroll

many years was a

nold

have

CHICAGO, 111.—George R. Rice

Chronicle)

Co., 208 South
Mr.

Faroll & Co.

(Special

for

(Special

&

Pont

Street.

Two With First Boston

Joins F. S. Moseley

Financial

previously

was

&

s

u

du

in

ner

partment

M

g e m ent

I.

Salle

merly for

the

of

a n a

cis
La

for¬

Investors

Co., 135 South La Salle Street. He

(Special

Company—New

The

to

CHICAGO,

offerings.

Newport Steel Corporation—Analysis—L. H. Rothchild & Co.,
52 Wall Street, New York 5, N. Y.

f

Chronicle)

Financial

has become associated with Fran¬

trading de-

With Allan Blair Co.
(Special

Oil

Companies—Data

o

to The

CHICAGO, 111.—Barnett FaroJI

Manaof

'

Francis I. du Pont Co.
(Special

the

was

ger

City of New York.

Barrett Faroll Joins

ha nges.

merly

of the mutual funds.

Earn¬

Richfield

issue

Co.,

Tokyo, Japan.
anese

a

and

x c

Catha-

Secretary-Treasurer,

R. Suydam of Chase National

J.

supervises the investments

O'Connor

current

Securities
i

&

are

Co.

Mitsubishi-Zaibatsu
—in

133)

Board

Company, Inc.,

130)—Smith, Barney & Co., 14 Wall Street, New York

ings

E

He

Roose¬

is

Chairman

which

Illinois Central Railroad Company—Analysis (railroad bulletin

&

velt

Gage Brady, Jr.

\ of

Midwest Stock

of

George

—

•

mem¬

have assets in

$15^,000,000.

Barnes, Bodell & Goodwin,
Church Street, New Haven 10, Conn. Also available are
—

William

409
Eighth

New York and

&

Noyes & Co., 208
Also available is a

bers

stment

n v e

excess

A.

Street,

on

Chronicle)

Financial

A.

companies

Emlen

Elgin

Sons,
North

Also

Noyes

and
ryn

be¬

with

tive boards.

Corp.

Allen B. Du Mont Laboratories, Inc.—Bulletin—de Witt Conklin Organization, 100
Broadway, New York
,f

Th»

G. Edwards &

Clinton
i

Chairman, Louise L. McElroy

Clark, Dodge & Co., New York;
Vice-Chairman, Josephine Festa,

associ¬

come

Gage

m.

to

LOUIS, Mo.

1953-54 at its

year

meeting in Toronto, Can¬

of

A. G. Edwards & Sons

agement Fund, Inc., today elected
Saxton

Special Libraries As¬

the

for

Bank of the

Sutro

—

Also avail¬

of

sociation elected the following of¬
ficers

William J. Blake With

Brady Chairman of
Fundamental Inv., Inc.

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

a

for¬

&

Building, Louisville 2, Ky.

Strong Cobb, and

ing, Detroit 26, Mich.

&

was

prior thereto was in the trading
department of A. C. Allyn & Co.,

Central—Analysis—Goodbody & Co., 115 Broadway,

Sterling,

in Wall Street—Ira U. Cobleigh—$2.00 per copy—
Dept. 7, David McKay Company, Inc., 225 Park Avenue, New

Bros.

M.

Co., 135 South La

Mr. Coutts

Salle Street.

York 17, N. Y.

American

Ronald

—

merly with Blyth & Co., Inc. and

—

<

»

111.

John Nuveen &

Co., Pacific
Building, Salt Lake City 10, Utah. Also avail¬
is information on Utana Basins Oil and English Oil.

Vulcan Mold

Winning

Allied

Chronicle)

Financial

Coutts has become associated with

Corporation—Analysis—Hill

National Life

Bureau Averages, both as to

performance

National

The

Ute Royalty Corp.—Information—W. D. Nebeker &

used in the National Quotation

market

Gas

Newsom, Republic Bank Building, Dallas 1, Tex.

values of

Stocks.

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

Propane

to

CHICAGO,

Inc.

up-to-date com¬
parison between the listed industrial stocks used in the Dow-

yield

Company—Analysis—Van Alstyne, Noel &

Warner & Swasey Co.

Trinity

Over-the-Counter Index—Folder showing an
Jones

John Nuveen & Go.

Co.—Memorandum—Shearson, Hammill & Co., 14 Wall
Street, New York 5, N. Y. Also available is a memorandum

New

New

Langley & Co.

R. M. Goufts With

Richards
Co., 621 South Spring Street, Los Angeles 14, Calif.

on

man¬

Richard¬

of Canada Limited—Review—James

Texas

1953—Laird, Bissell & Meeds, 120 Broad¬

New York 5, N. Y.

way,

W. C.

Sons, 173 Portage Avenue, East, Winnipeg, and Royal
Building, Toronto, Canada.

Suburban

resident

A. Daly

Co., 52 Wall Street, New York 5, N. Y.

&
York

issues

Materials Limited—Analysis—R.

&

Stromberg-Carlson

legislation

Exchange, have
of

appointment
as

of their New York office,
111
Broadway. Mr. Curran was
formerly with Dreyfus & Co. and

(Special

mutual funds legal for trust investment in that state—Well¬
ington Company, 1630 Locust Street, Philadelphia 3, Pa.

New

&

Bank

Pennsylvania—Summary of recently
making shares of leading

in

Legal

Paving

Company

son

the

Curran

ager

Co., 44 King Street, West, Toronto 1, Ont., Canada.

Broadway, New York 5, N. Y.
Insurance

Stock

announced
John C.

Company, 300 Montgomery Street, San Francisco 20, Calif.
Banks

New York

to

The

Chronicle)

Financial

Chronicle)
—

Williard

become

connected

with Field, Richards &

Co., Union

Commerce Building.

SAN

FRANCISCO, Calif.—

Russell

265
of

has

Nelson

A.

with

connected

become

Walston

&

Co.,

Montgomery Street, members
the New

York 'and

San

Fran¬

cisco Stock Exchanges.

WE

Buy & Sell

With H. L. Emerson Co.

"FOR
Monmouth Park Jockey
Mansfield Tire & Rubber

A

Complete

74

N.

Y.

Security Dealers Association

Trinity Place, New York 6, N. Y.




to

The

set of "CHRONICLES"

Poporad

has

Chronicle)

Financial

111.

been

1889—1940

and

1941—1952

added

in

Canvas

the

Co., In¬
Commerce

Building, members of the Midwest

Unbound

Broker's Office in New York City.
&

Financial Chronicles" is

terrific buy and in A-l Condition
Phone

REctor 2-9570

Union

corporated,

to

&

Stock Exchange.
a

This set of "Commercial
a

Bound

Victor C.

—

staff of H. L. Emerson
From

Available at

Members:

(Special

CHICAGO,

Detroit Harvester

Troster, Singer & Co.

SALE"

or

write

EDWIN

With Westheimer Co.
(Special

to

The

Financial

Chronicle)

,

L. BECK

25 Park Place, N. Y. 7

COLUMBUS, Ohio
Smith

is

now

Westheimer &
Broad Street.

—

John

connected

E.

with

Company, 30 East

/■

on

"This

The Gold Standard
of

^.

currency

When

Policy Committee of

the

As will be

pact

Party

Republican

election,
there was in¬

The

two

(1)

promises:

infla¬

curb

to

(2)

and

tion,

restore

to

sound

money

freely
c o nvertible into

ises

Styles Bridges

right
In

other

face

it, in

we

now

cannot

we

com¬

pletely fulfill the first of these
promises as soon as we should
like to. This also means that we
cannot take immediate action on

the

the

it

time,

this

have

interests

is not

the

convert their dollars into
feel very strongly

I

and

of

sale

to

be

bonds,

same

is

nor

it

jingling
were

But that day

now

right
gold

that the

increase

Just

bill to provide the basis for
such study and such hearings.

abuse

during
abuse our
during
emer¬

physical

our

emergencies,

therefore, a respon¬

government must face the
facts, stop regarding the prob¬

sible

temporary

emergency,

and formulate a sound

fiscal pol¬

riod

body

which

during

must remain

to

order

get

the right per¬

spective on this problem, I shall
the net results of the na¬

for the past 13 years.
know, one result of this

As

we

policy

is

dollar

is

that the United
i

worth

now

50c,

what

has

long-range survival.

another basis.

I would like to remind this

of

been

attrib¬

wages

uted to high

sists of high

a

primer

body

forgotten

*A

The

to

"The
a

war,

money,

is

not an

course,

•

the

have

who

keep abreast of the
organized labor.
But

power to
tide—such as

is

this

even

in

."
r
traditional
improvement in productiv-

hardly exceeded 2%.
As

know,

we

good

.

our

Continued

offer to sell these securities. They are subject to the registration and prospectus
Information about the issuer, the securities, and the circumstances of the
in the

on page

made
he

by Sen. Bridges
introduced in the

Senate, July 13, 1953 to restore the Uni¬
ted States to a gold standard currency.




requirements of the Federal
offering is contained

the buyer and may be obtained from such of
registered dealers in securities in this State. ,■

Prospectus which must be given to
several Underwriters

as are

tfie
July 9, 1953

339,733

Shares

Monterey Oil Company
Common Stock

Business.

$1.00 Per Share

The Company is

engaged prima'

rily in producing and selling oil and gas from
properties in California, Texas and elsewhere,
and in exploring for and developing oil and gas
in various states. Most of the oil and gas
properties now owned by the Company
its subsidiaries were formerly owned

and
by

Of the 339,733 shares
financing by the
Company and the proceeds together with
Purpose of Issue.

offered, 135,000 represent
other funds will be

used

to prepay

in full the

Company's bank indebtedness, and 204,733
shares are outstanding and are being sold by
certain

Capitalization.
tion of the

agreement

Stock,

stockholders.

par

"to

the

a

bank under

a term

credit

and 1,113,695 shares of Common
value $1.00

additional shares

held

Jhe outstanding capitaliza'

Company consists of $3,333,300

4% notes due

upon

Jergins Oil Company.

Cost

is

en¬

Is

Not

economic

War
as

cost

are

per

share; 31,955

reserved for issuance

the exercise of outstanding options
by certain officers and

employees of

Company.

Listing. Application
the Common Stock
New York Stock

will be made to list the

of the Company

on

the

Exchange.

"Certain
armed

Lehman Brothers

things are needed by
services, and because

example, in World War II,

The First Boston
Harriman

Goldman, Sachs & Co.

Corporation

Ripley £5^ Co.

Kidder, Peabody £/ Co,

tion

was

"But
were

purchased
I

taxes were

by

Stone & Webster Securities

Smith, Barney & Co.

they

only about 30%, leaving the

"If the

if

Allyn and Company
Incorporated

people about 70% of their income.

to

A. C.

govern¬

not 50%;

people and the govern¬
willing to face up

the

real

taxes

had

cost

of

been

war,

at

the

that

is,

rate

of

50%, the nation would have been

Lazard Freres & Co.

Incorporated

about 50% of the national produc¬

ment.

Share

fighting

measured

they must be taken from the peo¬
ple, the nation suffers a 'lower
scale of living.'
"For

per

follows:
of

in
is not money: it is used up
although

$24

goods and services.

price?"

bill

income goes up

rate of

government

Price
passage
of

particular
"The

prices; so we wind up

statement

relation

postmen, firemen, po¬
school teachers — whose
very slowly dur¬
ing times of inflation.
There
are
some
people, of

licemen,

money

on

ment had been
in

Then there are the public serv¬

attention some

Money," and it goes

of living con¬

getting nearer to the truth.
The answer lies in the question,

almost

to my

came

This

1

is

little

a

titled:

exactly where we started without

"What

day

ants—the

standing wtih the people because

time ago.

cost of living.

But the high cost

but

old,

an

which

attributed to

have

High

the

truth, by reading a few sentences

the

attrib¬

what might have

on

com¬

been

see

expenses

decline must be stopped.
The cause has been

i

II

financed government

States

high prices.
High prices have
uted to high wages.

com¬

we

causing this

been

do must be

we

been had

pared with its 1935-39 value.
I believe that we are all agreed
that

economy

basis of military

on a

Whatever

review

tional policy

the

preparedness.-

from

icy.
In

remember

all

month in social se¬
curity was considered a pretty
good pension.

body

can

we

living man can patible with
determine, the high cost of na¬
tional defense may be with us for
Now, let's
the rest of our lives.

a

can

temporarily

can

we

As nearly as any

as

sort of festive feeling of

Par Value

as

do

we

a

fed up with

reality.

service

the

in

a

money.

irresponsibility and freedom from

000,000,000.

economic

a

lem

becomes

when $65.00 a

is over: the people

want sound

there is

by

u se

time that this

Obviously,

the people's pockets
helpful in creating the
of "we never had it so
in

very

good."

deficit,
increase in debt, and an¬

checking banks.

precede the actual fulfillment.
For this reasop, I am introduc¬
ing

an

the

not know gencies and get away with it for
a while.
v
1
restora¬
But we can't get away with it
tion can take place most advan¬
forever; the emergency is over,
tageously, we can start the study
and we now face an indefinite pe¬
and plan the hearings that must
though

exact

comfort

t

opportunity.

Even

the

doubt that for many

extra measure of public
support because the extra dollars

joyed

face another

we

created for govern¬
the
commercial

newly

ment

people should have the

American

no

the members of the govern¬
ment and the Administration en¬

feeling

such
from

who, if any, among
has benefited from

years

The amount still in circulation
today resulting from monetization
only practical but our moral duty
of government debt is about $45,to make a beginning. At this time
foreign

amount

in

lives

most

they thought to be
to live out

what

sufficient

a

suffer

old-folks

comes—the
because

the

those living on fixed in¬

banks; it is the money we caused

Although it is generally recog¬
nized that it is impractical to take

to

are

that must be sup¬
plemented by work or charity.

dollar.

50c

There is

that we obtained from in¬
surance
companies
and savings

promise—the restora¬
gold-convertible currency.

at

pinch

We
see

use

citizens

our

money

second

step

has snatched away this

of cheap money strike home.
The
first
people to feel

Securities Act.

the first

supply faster than business could
add to the supply of goods.
This money is not the money we
borrowed from the people through

this

in prices

apparent gain that the hard facts

their

Ill

Let

now.

1954

This

Government did

instance, by adding to the money

tion of

the

It is not until the inevitable rise

bitter pittance

little to

longer expect

no

war,

and must stop.

can

lightened

taxation.

of

by

wages.

up

a

the

can

another

blood-stream.

Labor unions did not do this

commitments,

very

was

we

have

to

seems

burden

estimates, pre¬ raising prices.

revenue

result,

but

the

temporary situation during which,
in order to meet previously-made

a

there

not the first government

are

have done this in time of

to

people

extraordinary

on

people

the last Administration,
seriously
overstated the forcing

revenue.

As

the

who have been

many

than face the issue.

urged to save their money
the shooting stopped, and

did not do this by
charges.
bidding up the price of goods.
Businessmen did not do this by

pared by
which

the cus¬
spend

to

that has been injected into

economic

The

pred¬

on

We

looking for is the inflationary

the

ful¬

was

icated

first,

are

willing to procrastinate rather

buy with the money anyway.

particular thing.

are

Sen.

of money

available

has

money

prom¬

There

it

group is getting
inflation.
Regarding the benefit to the
How about the farmer, the fac¬
tory workers, the white collar people as a whole, there was last
workers, the self-employed, the year an interesting analysis by
creased
cannot be made a per¬
Dr.
supply of money must not exceed
Ruttenberg of the CIO, in
old folks, etc.?
manent factor: we must now face
the supply of goods.
which he said: "Despite the higher
There can be no doubt that in
the fact that when an American
levels
of
During the past 13 years the
employment, the real
worker
earns
some
money,
he its early stages inflation is fun: it
rise in total disposable personal
money
supply
of
the
United
is like living on a charge account.
wants to buy something with it.
States has more than tripled.
income of the American people,
Everybody
has more dollars; measured in actual buying power,
The time to mend our ways is
This means that the devil we

fillment of

these

dynamic as ours can endure
this abuse indefinitely.

cooperation
people: the spirit of patriotism
That brings us to one of the that made the population willing
most
stubborn facts
of life: in to hold back their purchases until
consumer production could be in¬
order to have stable
prices, the

gold
coin.
Unfortunately,
prompt

until

second,

give up?

amount

tomer

that

cluded in that

remembered, the im¬

factors:

two

who does not

one

and

serious inflation did not

of

were

the

much

how

decides

customer will

for

platform

the amount that a
willing to give up for

something.
What

not

strike until after the war because

is

customer is

mbt

in
Chicago last July to formulate the
platform on which the Party pro¬
posed to stand
the

icy

production, only conceals the true
cost of government and creates
unnecessary debt."

of

price

government to take away

goods and services without taking
away the money paid out for their

and its securities.
A

- you - fight
plan
penalized the peo¬

as

We

"For

Republican Party
phrtform to "restore sound money freely convertible into gold
coin." Says "time to mend our ways is right now," though
admitting no action can be taken until next year. Ascribes
inflation to deficit spending and monetization of public debt,
and points out we must strengthen confidence in the nation's

no

that sooner or later this pol¬
must be discontinued—:that
even
an
economy
as robust

agree

70%.

Standard, refers to the pledge in the 1952

-j*

-

debt.

war

quality of goods and services with
the remaining 50% of their in¬
comes
as
they bought with the

bill to restore the Gold

a

pay

no

ple because they could have
bought the same quantity and

Hampshire

United States Senator from New

I know of

pay-as-you-fight basis, and

would not have

By HON. STYLES BRIDGES*

Senator Bridges, in nrging support

a

there would be

Why We Should Restore

9

(205)

Financial Chronicle

Number 5238... The Commercial and

Volume 178

Please send

me a copy

ing to the Common

Company.

of the Prospectus

relat'

Stock of Monterey Oil

Bear, Stearns

Corporation
& Co.

23

10

(206)

The Commercial and Financial Chronicle

Inventories

Financing Canada's
By J. R. MEGGESON*
President, J. R. Meggeson & Co., Ltd.
Securities Dealers, Toronto, Can.

After

describing major activities of the member firms of the
Investment Dealers' Association of Canada, Mr.
Meggeson dis¬

belief

financial conditions in Canada, and

more

second

half

of

current

more

tinuously upward.

Lists

ods to

be followed in

manufacturers.

1952.

we

the

apply

these

not

large

be

materials,

raw

in

for

are

goods, or
However, there

business

numerous

factors

which impel us to watch this

Ihese

$30,000,000;
$22,000,000.

views

will

not

bond

meet

sidered

as

ary.

I

all

new

issues,

and

were

com¬

the

Investment

However,

when
he

understand
conf'er-

J.

R.

a

cau¬

optimist.

Cautious, because
underwrites
securities,

he

risks

sumes

Meggeson

is

Dealer

a

his

own

large

and

money

liability.

This

as¬

lia¬

these debit balances

year,

chased

goods

50%

more,

or

have

on

pur¬

increased

by

increased dollar total.

Is it not

therefore, that

assume,

to absorb the current rate of

ufacturing

production,
have

to

necessary

in

crease

the

will

of

'we

1951.

the

least,

at

were,

Comparatively

ac¬

the

volume of instalment sales.

tors

that

Canadian

from

general

jor

almost

10

it

7c

United

that

States,

the

dollar

Of

8%; and from

over

there

is

was

course

down

from

some

industries

6.2

era,
were

5.6.

of

our

While

in¬

doubtedly
of

some

could

been

this

be

have

costs

leaders

thought that
and

new

we

prosperous

the following security issues
offered to the public be¬

January,

1928,

and

June,

offered
as:

mortgage bonds

and

sold
by such
Players Cana¬
Corporation, Great Lakes
Paper Co., Western Steel Products

Famous

dian

several

Six

and

ferred

for

profit contraction,

that

a

prevailed at

business

the

were

un¬

responsible

in

firms

and

rising

with

Six percent first

individual

own

Despite the busi¬

which

1929:

figures,

survey

in

tween

than others, but
covering
general
business activity, do give us food
for thought and indicate need for
a

time,

were

prosperous

these

thought of comparing
conditions then with now,

confirmed

the

to

and, while

1920's

Canada

no

optimism

that

sales

per

in

the

for the purpose.

report

a

profit1 margin

ma¬

expansion

shortage of funds readily available

not

comparative drop in trading prof¬
its, from selected United Kingdom
firms, of

economy.

interesting to survey interest
on
capital during that pe¬
riod, when there was an apparent

approximate,

an

is

are

excep¬

is

ness

reports

the

rates

localized here. The London "Econ¬
omist"

than

expanding

in

business

of

were

an

capital

there

earnings

These results

1951.

in

occurred

These

level

net

1952

in

down

was

the

company

rather

interest

borrowings

The last protracted period of

had

comparatively favorable fac¬
but,1 unfortunately, it is es¬

timated

rule,

tion,

maintained;

the advantage of a much increased

were

higher

rates for industrial

level,

business

a

and to be expected as the demand
for investment
money assumed an
accelerated pace.

out¬

inventories

fully
that

know

we

high

that

ab¬

rise in interest rates has
occurred.
This was unavoidable,

1952 business

know

fi¬
par¬

out

satisfactorily

sorbed,

final

quite

a

capital

been

Canada, and this is

borne

so

business

at

was

also

and

be

instalment

to

recent"

far

issues of industrial securities have
far
been

the

at

situations.

man¬

-further

a

rate

it

all

We know that

more

and the distribution

qf these extra goods has still left
manufacturing
inventories
with
logical to

of

tivity

high

parative basis. Since March of last

an

Operating this type of business,

un¬

and

tious

this

These

debenture

or

Corp.

tion of the whole.

reaction¬

even

Lawrence

those cited are given merely as
examples to indicate the composi¬

with
popular
acclaim, and
may
be con¬

palatable,

St.

increase

operations;
the subject of net earnings.

by

finished

turn

now

come

increases,

My purpose in being here to¬ totaled $459,513,000.
inventory posi¬
Among the
tion quite closely.
day is to briefly interpret an in¬ industrial borrowers of
$10,000,One of these factors is the vol¬
vestment viewpoint of the cur¬ 000 or
more, during this 15-month
ume
of
instalment
rent position of
sales,
upon
industry, and its period, we find the following:
which
the
f i naricial
unpaid
balances
in
tjeil Teiepnone u,o. $tU,uuo,000;
Canada are now estimated to total
problems
o f
British American Oil $20,000,000;
over
$1,500,000,000. To put this
expansion.
In
B. C. Electric $15,000,000; C. P. R.
figure in its correct perspective
the process, it
$35,000,000;
Simpsons
Limited
we
must
deal with it on a com¬
is conceivable
of

We

percentage¬

accounted

process.

4%

has

in

by the security
underwriting figures quoted pre¬
viously. However, while all new

Earnings

that the

comparatively higher costs of

work

financing further industrial expansion

estimated

our
so

tially

From

told

are

Both

are

paratively

some

tal

told that 85% of

expansion
nanced

way,
spread over
whole, working capi¬
is being maintained, and shows

to

and

higher

as a

only

levels,

de¬

broad

a

1952 year end over

finished products, and may repre¬
sent no advance in the stock of

in Canada.

i.hat

In

business

an

other

wise, could

now

costs

considerably
than anticipated.

some

or

Which

watching: (1) inventories and instalment sales; (2)
working capital; and (3) earnings.-Indicates needs and meth¬

are

rowing

seriously

in the paying of bor¬

prior 12 months. These figures do

in

developments investment dealers

as

becoming

pleted, and

inventory position stood at
$76,600,000,000 on! March 31; up
$1,400,000,000 from the same date

and
in the country. Calls for cautious optimism, how¬
and recognition that economic prosperity never goes con¬
see

capital

in

retail

Washington,

general

expresses

should

century

Sales

inventories

gross

progress

ever,

Instalment

time, been
reaching up to new high levels.
The authoritative figure for these
is $3,870,500,000 as of March 31
last; up $150,400,000' during1 the

Industrial Expansion

cusses

and

Manufacturing
Canada have, for

Thursday, July 16, 1953

...

others.

.

one-half

shares

percent

pre¬

issued

were

by

Simpsons Limited and Dominion
Tar & Chemical Co. and
these of¬

it

bility he will endeavor to paiss on selling? How far this debit bal¬
really
ance
If so, then ferings
buying
can
be
continued into a buyer's market.
were
piecemeal to
investors
accompanied by a
who,
in
without
economy
in
costs
is
of
more
im¬ percentage
endangering the credit of
bonus
of
ions
on
common
general business condi¬ turn, rely upon his caution. How¬
the
stock.
portance
than
ever
and
a
return
seller,
as
well
as
the
buyer, is
tions, all of which you may accept ever, once having exercised max¬
a
to the old principles of
matter of conjecture, but
imum care in his
prudence
signs
Seven percent preferred
or reject.
underwritings,
I cannot, therefore, ful¬
shares
are
not lacking that the urge to and thrift might be in order.
the dealer must be
were
fill my obligation to you unless I
created
optimistic, if
by
International
The pleading, which comes from
he is to successfully resell the se¬ make many sales, rather, than the
Power Co. and Toronto
am
frank in what I say, and not
Elevators
curities. In other words, he must soundness of such sales, has be¬ all
directions, to have govern¬ Co. Ltd.
merely say the things which will
come
of
be convinced that his
primary importance to ments eliminate extravagance to
purchasing
It
obviously please you.
should
be
understood
that
avoid wasting tax-payers
judgment was sound, and be satis¬ many retailers.
money, these
are merely
examples, taken
fied that the purpose for which
Investment Dealers' Association
might well be heeded by business,
e

n

e

c

called

was

listen

to

various

to

we

are

now

opin¬

.

the

of Canada
As

£

background for

should

ization

remarks

explain that the organ¬
represent has a mem¬
of 410 head offices and

I

bership

branches,

from

Columbia

to

foundland.
the

in
Victoria,

operating

^Province

as

my

St.

This

of

The

New¬

is

known

Dealers'

Asso¬

major
two

ment

in

a

is

being

raised

the

assets

of the borrower.

and

activities
could

be

principal

of

Working

will

compensating improve¬

earnings

<

Capital

in

at

which

shareholders'

is

money

Next, we are watching work¬
ing capital, the life blood of any

involved.

business.

costs, is it not possible that some
phases of industry are extravagant

More

today

than

per-

When

think

we

of

controllable

Practising these activities ob¬ haps at any time in recent busi¬
ness
history it is
necessary * to under several headings particular¬
viously requires that the dealer
maintain this net cash position at ly those of public
relations, comkeep constantly informed as to
satisfactory and liquid level. not include inventory totals &t the
business trends, world-wide and a
domestic money
markets, and
general financial
position of

the
all

branches of Canadian
Industry.

Canada.

member firms
under

British

John's

group

Investment

ciation

every

money

produce

our

I think it is safe to
say that none

described

of

headings.

business situation

our

members view the
with

present

alarm.

In

While there

are

definitions

many

and ratios provided for
working
capital measurement, perhaps the
most practical
yardstick for the

business

average

scribed

could

be

de-*

by

saying, that moderate
borrowings are permissible
peak inventory periods, pro¬

bank

petitive

sales

excessively

detailed

+hp

a^d

urograms,

random, to indicate the indus¬
trial money rates of
the period.

However,
rates

and

at

current

taxation

money

levies,

one

the^major

problems the
Dealer faces today

ment

of

persuading

to go to

of

age
in

idle

is

reluctant

work.

There is
money

that

dollars
short¬

no

deposit

on

Chartered Banks with

our

organization

of

Invest¬

sav¬

ings accounts totaling
$5,067,000,000 on March
31, last. However, it
we
hear of figure
perfect effi¬ should
be appreciated that a
large
ciency which demands so detailed
portion of these
savings belong
a system of records and
reporting, to individuals
of business operations?

and

Quite often

with

staff of

investment

no

executives and stat¬
First, the underwriting of new is¬ fact, we join in the
experience, other than perhaps
general belief at
isticians, that the mere mainte¬
sues
of
the
government,
municipal that the second half of the current vided there is
purchase
of
a
Victory Bonds
substantial cash nance of the system is a
and
major
industrial
securities, which century should see more and more balance when
during
the
war.
Unfortunately
inventory is at its operation.
Perhaps
such
are
perfect
subsequently distributed to in¬ progress made in our
many of these have become un¬
country. lowest seasonal ebb.
organization can defeat its own
vestors. Second, to provide or lo¬
usually
timid
However, we do recognize that
since
the
recent
There
are
only two principal objective of economical costs, "by
cate
resale
markets
for
practi¬ the line of economic
drop below par of
Victory Bond
prosperity sources from which to accumulate virtue of its own weight.
cally all outstanding securities in never goes
prices; not realizing that interest
continuously upward, working capital
While there has perhaps been
during business
ihese various categories.
and that we could
rates
do
change, regardless of
experience sev¬
operations. These are retained net a tendency to explain question¬
The scope of recent new financ¬ eral
dips and levelling: out
Governments,
and
that
bond
periods, earnings, after payment of taxes able exoense
on
the
b^sis
chat
ing was of considerable
of
which
prices
do
magni¬ some
fluctuate in proportion,
may
last
long and dividends, and the accrual of about one-half such cost would
tude.
In
1952
enough to be
$1,043,301,000

of

government and municipal

even

and

bonds,
industrial

have

shares were issued by
corporations.
During
*.he first quarter of this
year new

fairs

$1,175,895,000

bonds

of

and

Canadian
bond
•An

and

debenture

address

members

of

the

by

issues

Mr.

alone

Meggeson
to
Manufacturers'

Canadian

Association, Toronto, Can.

discouraging,
embarrassing, to those

not

kept their

financial

continuously in good

At the
moment, from
ment

standpoint, we
industry's

invest¬

carefully

position
on
points, the first of which is
Inventory, in relation to Instal¬
ment Sales.
several

depreciation charged against fixed

otherwise

assets.

forget

af¬

order.

an

are

watching

and

who

From
we

with

considerably.
receivable

at

on

again

ment,

Canadian Exchanges

of

In

at

there

is

DIgby 4-3870

Wires

to:

37 Wall

the

main,

which

the

Toronto




Denton, inc.
5

TfFX: NY 1-1467

replace¬
of

fixed

therefore,

cash

were

several

from

adequate

quite

years

now,

attention

requirement could

to

are

and

gent

this

far

intelli¬

vital

busi¬

mean

the

between

comfortable,
uncomfortable, business

very

operations

ih

the

future.

leaving this

investment

as

•

Ottawa

•

Winnipeg

working

In

net

more

and

;-nore

the

taxes

more

in

rates

of

revenues

levy,

as

increase

our

of current high
Income Tax rates, if both business

informed,

taxing bodies carefully ques¬
tioned their controllable expense

Today, in

turn

now

methods

of

the

needs

and

financing further in¬

is

no

and.

as

of

this,

cation

to

expansion.

There

of

every

our

important city,

members maintain
speakers available for

Continued

a

panel of

discussions

on

page

INVESTMENT IN
CANADA
Canada

Financing Industry

need

Association,

years
ago, embarked upon
public educational
program.

items.

dustrial

our

have

become

way out

ar>d

We

to

investors

some

prooortionately. It is always posthat we might even econo¬

mize

endeavor

potential

better

a

but the

serious

a

these

sibie

the

much

to

field

of investments.

glad

to

send

you

a

offer

as

to1 the

definite

oil and

indi¬

have the state¬
President of the Ca¬
we

cuted

in

list of sugges¬
western

mining stocks. Orders

on

the

We shall be

tions, including Canadian

question
some

has

all Canadian

exe¬

Exchanges.

ENQUIRIES INVITED

nadian Pacific

month,

proceed with capital expenditures
ultimate financing has
been arranged. Too
often, such ill
advised action results in

pay;

Governmental

should

I

the

save,
earn,

reduction

of avoid¬

easily miscalculated move.
Money raising markets are never
stable, and it is most unwise to
before the

Montreal

we

annual

one

we
we

we' pay, the greater the
possibility
of

ment

subject,

dealer,

expense

income
taxes

in taxes, let us not
simple fact. The more

go

one

satisfac¬

ago

ness

ing

Street, New York

level

financing.

mention the importance

Tel.-.

accounts

higher

a

additional

tory

an

Burns Bros. &

finished

modernization

or

Before

rates.

cost

the

assets, to be considered.

and

regular commission

offset

Similarly,

are

require

difference

STOCKS
Orders Executed

advanced

To

products, the dollar requirements
inventories
have
advanced

assets

Government, Provincial, Municipal
Corporation—External and Internal

position.

for

Then

BONDS

continuously concerned

this

current

investment standpoint

an

are

and

Canadian Securities

a

way

to

the effect

that the

rail¬

should spend $475,000,000

capital
tions

Railway Co.. at the
meeting held early this

improvements

during the

next

This money, and the

hundreds

of

millions

KIPPEN & COMPANY Inc.
Established 1922

on

and

addi¬

five

years.

many

other

Investment Securities
607

which

probably be required across
country, must be found. We

will

the
are

ST. JAMES

STREET

(MONTREAL
Tel.
Members

of

WEST,'

UNiversity 6-2463
The

Investment Dealers"

Association of Canada

30

Volume 178

Number 5238

...

The Commercial and Financial Chronicle

(207)

The

prices of

many

issues

About the best

re¬

flect this condition
Blue

THE MARKET... AND YOU
By WALLACE

The stock market continued

and

been

hikes in

recent

for

a:

matter of

full

high hopes and general optim¬
to confound its followers this
year by April—is another pet ism, are
lagging badly. In a
week, particularly those who topic. The road officials who rundown of 941 of the more
have been most strident about

bemoan

the

low

the

active

regular of market market that makes equity
cycles—the "summer rally." capital too expensive for con¬
While enough
progress * has sideration would seem in line

mund

the

of

state

most

been made from the June lows

for

to

of the blame themselves.

constitute

technically,
been
and

it

certainly

anemic

an

of

to

dispel

bearish

the

gloom

that is around.

From
the

in

cushion

dozen

of

half

around

Korea

on

facets

since

matter

of

points before the indus¬

around

of

has

^

an

*

Despite this normally
so
all

had

fortable lead,

and

now

Prospects for August
com¬

around 22,

in

was

waves

with

a

late ticker that

greeted the original resump¬
tion of negotiations.

could

lows

for

month

be

extreme

arr

view,

that the rest of the month

or

will

be

the

| The
article

time

views
do

coincide

those

decade

or

professionals

in

necessarily
are

this

at

any

of

the

those

with

They

presented

as

of the author only. j

Mayer

formerly

the

trading

department of
i

r

Eme-

h

c

Inc.

&

Co.,

and

prior

thereto
&

was

Ernest A.

partner in

a

To Be Formed in N, ¥.
&
at

Effective July 23 Kerbs, Haney
Co. will be formed with offices
39

Broadway, New York City.

Partners

of

will

a

be

the

of

and

has

become

associated

after

bounded

posting

in

limited

partners.

with

Kling

hold

&

the

Mr.

Co.

firm's

while

outperforming

other divisions, has
a

it

often

•

this

year

by the

Kerbs

Street.

Mr.

Sanders

With R. A. Harrison

formerly Manager of the munici¬
pal department for the Chicago
office of
Smith, Barney & Co.,

(Special

with which he had been associated

Waltz

for

Richard

many

years.

has

teenth
.

Joseph
a

Mittelman

F.

securities

is

The

•

Been

the

Majestic

President

of

in

Mittelman-Spies.

■

a

formed

with

Building

securities

offices

to

business.

*

i'f

*

million

a

more

now

and

traded

were

as

one

have come
all the optimistic ex¬

pectations and are, in some
cases,
properly described as

fied
the

$25,000,000

as

shares,

Consumers Power

day. The

made

1,375,755,

First

hardly be classi¬

decline has continued

volume

of

Dated July 1,

Company

Mortgage Bonds, 33A% Series due 1983

n

climactic. And of late

as

pattern

a

of

than

much

half

a

on

a-volume

which could

these Bonds,

offer is made only by the Prospectus.

the brokers'

ink back to

full month since

on

earnings

close to

a

offer to sell nor a solicitation of an offer to buy any of

an

The

brought

has

already

This announcement is neither

■

j.-

Due July 1, 1983

195$

on
Interest

strug¬

payable January 1 and July 1 in :Yew York City,

tape gling across the million share
mark only about once a week,
watcher's point of view, in¬
from

But

fabulous.

a

generally seem to pay
attention
to
specific issues

vestors

at least until this
❖

week.

Price 10V/4% and Accrued Interest

*

*

A minority of brokers trace
only when it becomes "offi¬
cial" that some of the lush part of this inaction to the
profits are to be passed down lack of margin trading in re¬
the line to the stockholders. cent years. Even with some
There has been no rush by the appreciable declines in popu¬

managements to do this,

how¬

lar

*

ifi

i

❖

Copies of the Prospectus may be obtained from only such of the undersigned
as may legally offer these Bonds in compliance with the
securities laws of the respective States.

issues, stockholders have

found

ever.

no

MORGAN STANLEY & CO.

great compulsion to

sell out and

are

content to col¬

Central's

Illinois

meager lect their dividends and hope

$3.50 payment last year out

of

their issues will

earnings of $15.50 and its cur¬
rent indicated dividend rate

even.

$4, earned in full for the

when

back to where

The

someday get
DREXEL & CO.

break
lack of chart selling
they

can

■

of

year

as

April, is
of

long ago as early, in
a

perennial subject
in the board
Island's brand
to $1.25 quarter¬

support

been breached
to

new

increase

ly, against $1 previously —
which, even at the new rate




❖

*

HARRIMAN RIPLEY& CO.

lation is

July 16, 1955.

is that specu¬
I

conspicuously absent.

GOLDMAN, SACHS & CO.

PEAjBODY&CO.

i

LEHMAN BROTHERS

,

FENNER & BEANE

STONE & WEBSTER SECURITIES

;

Speculation Scant
Also apparent

KIDDER,

MERRILL LYNCH, PIERCE,
i

*

GLOItE, FORGAN & CO.

Incorporated

bear this out.

discussion

rooms.Rock

levels have
recently tends

& CO., INC.

THE FIRST BOSTON CORPORATION

■

,

CORPORATION

Six¬

•;.

DENVER, Colo.—Rose and
has

formerly

2200

i

'

Form Rose & Co.

engag¬

business from
was

affiliated with

Street'.

York

He

Chronicle)

Harrison,

offices at 20 East 74th Street, New

City.

Financial

become

A.

V

r

Joseph Mittelman Opens
ing in

to

SACRAMENTO, Calif.—John N.

in

volume

of

will

mem¬

bership.

was

the

is

lows for the year were

analysts.
Rail

red

circles

decline

continued

made only ledgers. It is

predicted for

great things

so

the

outlook

dour

market

list, which

faltering steps toward

few

the

the

of

section

touted

stock

Mr.

White, Weld & Co., 231 South La
Salle

recently.

the

to

ure

.

Exchange

Contributing in good meas¬

new

Rails fared
little better; their trim was of
equal
scope.
This highly-

be

Haney;
general
partners, -and
James P. Haney and Louis A.

re¬

lows for the year.

New

George J.

sjc

list

the

when

mid-June

i

will

Kerbs and Mr. Reilly are partners

/CHICAGO, 111.—Floyd W. Sand¬
ers

the

Exchange,

Kerbs

A.

firm, which

new

member

Stock

Haney,

the

on

I

While, Weld & Co.

Even

more.

Tobacco,

P.MiAl)<k

Dayton

Kerbs, Haney & Co.

Edward

nOJfO W. danders Joins

Mayer

Gernon.

York

a

since pessimism.-

h anges.

x c

V

spread speculative play of the
last

far

so

expressed

not

Chronicle.

International'

American

Midwest Stock

Ames,

faced

20

mem¬

New York and

their selections.

on

trading market to quality end of the list, nudged
The Disappointing Rails
the point where it offers little
par
in 1946 despite the
The more than $2.50 clipped promising.
For a clan that squeezes of wartime controls,
from the industrials in the preserves a cheerful facade but has failed by some 25
initial session? was the most come what may, this is deep points of attaining that mark
decisive turn either way

of

CP...J Ml

this

made

of

some

&

bers of the

against 11 that .showed losses

ing payments in 1946.

suddenly

normally

it

opportunity

difficulties

of

preciation for the six months

years

seven

paying dividends but

*

indication

An

A.

Salle

was ■*'

participating in this particular
game, only nine showed ap¬

Foun¬

worth 23 while not mak-

the talk of the

market students has

&

La

E

portfolio.

•

Ernest

with

Street,

Mr.

the

Telephone,
veered away from the sum¬ with the same
improvement
needs to discount events of
mer
rally to a great extent in its payment fortunes, has
the immediate future. This is
and the prospects for August had trouble
staying above 16
particularly true since it is are
being bandied about. This recently, yet sold without any
now a full three months since
would indicate that the ma¬
yield above 30 in what seems
the last of the four selling
jority opinion is that new to have been the last wide¬
the

Hayden,
Co., largely because

this year in the market is that

price of 45.
Railroad, long time spe¬
culative favorite, is around 19
was

of

N.

Chronicle)

Co., 209 South

in his five-stock

.

Erie

#

Jarvis,

by

111.

associ-

d

e

Cruttenden

in

ago to command a

a

entire

the

have

long enough

market

the

reapprasial

now

taken

illustration,

Machine

enough demand

was

t

he included National Theatres

out

random

a

dry,

far above

title

points

:

the rails almost

all the

armistice

the

For

American

cutbacks, market.

mostly to have been

internal

that

defense

and

seems

been

blamed

while

50

some

trials reach critical levels and
as

industrial

the 1951 lows.

a

that started off the week. This the mark that would call for

buffeting,

is-

the

than in 1946 and still above

er

serious

no

every

higher at present. Out of the
side, total, only 262 issues are high¬

technical
is

stock

Ed¬ half

Financial

Mayer has be¬
come

analysts go t h r o ugh
six months. The first

The

to

CHICAGO,

a

Co.j has found 614 selling Stone &
that

semi-

a

guessing game on
prospects which a hand¬

ful of

highs despite

fact, there's

(Special

annual

Tabell, of Walston Leonard

below their 1946

average-

jeopardy at the moment with
a

Something of a jolt was the
rather sizable one-day decline

the

market

W.

important share, the-fact'

has
best

at

one

calculated

not

much

rally, at least

a

rather

a

&

issues,

common

which have yet.
real solution. As a

to prove a

Mayer Now

With Cruttenden 0®,

3-D prospects

have been doing well
but the secondary issues that
get their lift far more from

earned

Ernest A.

so

years,

STREETE

had

dividend

performance

far this year has been that
of th'e movie issues on their

markedly.
chips with their splits

11

SMITH, BARNEY & CO.
WHITE, WELD & CO.

Co.
in

engage

12

The Commercial and Financial Chronicle...

(208)

ord

SEC

Reports Savings Still

Estimates individuals saved $2x/2

Uptrend

on

In

billion in liquid form in first

$1.8 billion during the first quar¬
ter of 1953. This increase reflects

U.

This rate of

1952

and

first

the highest

was

of

quarter

the

for

any

postwar

pe¬

primarily

1952,

reflecting

pay¬

of income taxes.

ment

issues

Government

by

rose

chiefly commercial banks, and in¬
an
increase of $400 million
in individuals' holdings of U. S.

of

increase

million

$100

first

purchase of shares in savings and
associations, continued at or

loan

the

near

high rates of recent

pe¬

three

of

months

this

time since the first
quarter of 1947.
Offsetting the
rise in these liquid asset holdings,
any

increased

individuals

their

mort¬

indebtedness somewhat more
than in the first quarter of last
gage

and instead of the usual first
quarter repayment of consumer
year,

District

Reserve

REPORT

OF

2

No.

CONDITION

The

lower

first

mil¬
1952.

and
of

amount

smaller

a

Broadway,

member
the

at

of

the
of

close

York,

New

Federal

business

New

Reserve
June

on

System,
30,

1953,

published in accordance with a call made
by the Superintendent of Banks pursuant
to the
provisions of the Banking Law of
State

the

the

York

New

of

the

and

Bank

of

this

provisions

of

the Federal

Reserve

district

Federal

pursuant

Reserve

to

Act.

ASSETS

Cash,

balances

banking

other

institutions,

cluding
and

with

in¬

balances,

reserve

cash

items in process

collection

of

United

$143,290,149.33

States

notes, and somewhat
under $500 million were common

Obligations

political
Other

and

direct

100,953,617.65

.

of

and

States

preferred stock issues.
Although a large volume

3,538,575.98

notes, and de¬

bentures

1,689,376.95
stocks

Corporate

$750,000.00
eral

Loans and

ing

(including

stock

Reserve

of

discounts

Customers'

liability

institution

4,063,379.81

928,160.19

ASSETS

—.$453,823,580.71

LIABILITIES

partnerships,

corporations
Time

lion in the preceding

1952.

$304,414,217.41

associations,

drawals,

Report

and

corpo?

'

12,274,611.32
United

States

Government

Deposits
litical

of

12,084,048.53

States

and

po¬

subdivisions

Deposits
tions

of

2,294,961.01

—

46,278,437.65

—

officers'

(certified and

checks,

etc.)..

37,096,377.66

tution
Other

and

by

outstanding

4,251,250.86

liabilties

is

is

Report

of

Trust

LIABILITIES

$422,993,417.39

CAPITAL

bank

The

Company.

profits

5,830,163.32

the

and

CAPITAL

Manner

COUNTS

$30,830,163.32

of

AND

LIABILITIES
CAPITAL

COUNTS

tThis

$453,823,580.71

institution's

common

stock

capital

with

total

bank

Marine

owned

to

for

I,

secure

other

P.

Other

Comptroller,
tion,
ment

and

liabilities

of

MARINE

do

fully

statement

is

knowledge

and

the

to

to

Report

and

subscribed

of

the

hereby certify
is true to the

that
best

30,

POSIT

above* state¬

my

knowledge

belief.
P.

A.

JAMES
JOHN

G.

G.

1953,

Y.,

BLAINEl




this

me

One

William

St.,

New

of

bank

a

which

NEW

is

N.

SAFE

DE¬

YORK,

New-

affiliated

Company

Y.

Safe

with

Kind

of

Manner

with

bank,

member

Trust

of

the

owned

relations

registered
known to

I,

or

or

DELITY

NEW
above

be

indirectly

JAMES

M.

SAFE

YORK,

do

Marine

Mid¬

of

New

Sth

day of

and

July,

York.

bank:

name

owned

(par

of

affiliated

by

bank

value),

di¬

$299,300.
of

FI¬

COMPANY

OF

that

the

solemnly

swear

is

to

the

M.

KELLY.

true,

Fi¬

Stock

of

Secretary

DEPOSIT

and

of

The

best

of

belief.
JAMES

to

degree

out¬

KELLY,

statement

knowledge

in
af¬

shares

with

in

and

is

3000

by

Company

nancial

affiliate

New

business

of

Deposit.

The

subscribed

before

me

this

1953.

JOSEPH

J.

DALLINGER,
Notary Public.

as¬

the

the rejection

say,

told

repeatedly that

who revolt.

ones

of

a
It is interesting
note, though, that this proffer of surplus grain to the East Ger¬
mans came as a result of the
agitation that we "do something" to
take advantage of the unrest in Eastern
Europe. This agitation
deserves analysis because it comes from the same
group that, up

few months ago,

a

Korean fiasco

to

shuddered at any suggestion that we bring
end through positive action for fear we

an

would offend the Russians and provoke an all-out war. The
weight
of expert opinion, I think, is on the side of the contention that the
in

Korea

action

on

could have been ended long ago
by affirmative
part; it could have been ended victoriously, too.
is the conviction of such eminent authorities as

our

Certainly

this

Generals McArthur and Van Fleet.

But

would

we

However,
instance

voices

same

that

ones

i t

Exchange,
is

native

who want

ington,
his

Mr.

A.

de¬

University o f
Redlands,
R

e

d 1

d s,

a n

Gordon

Laws

awarded his Master

was

degree at Duke Univer¬

sity, North Carolina, in 1932.

Following
torney

career

a

teacher

and

served

States

Department

as

at¬

an

law,

of

with

Dean

a

the

Mr.

United

Justice

of

Counsel

the

at

Assistant

as

pointment

Nuremberg

as

Energy
1949, Mr.

fessor
of

of

Law

Southern

member

a

Atomic

May,

U.

S.

trials

criminals. Prior to his ap¬

war

of

the

Commission

.

Dean
the

at

was

of

in

Pro¬

University

California.

Chairman

named

the

He

was

Atomic

Energy Commission in July, 1950,
in which

capacity he served until

June 30 of this year. Mr. Dean has
been a contributor to various legal

scientific

publications and is

forthcoming book
"Report on the Atom,"
published in September,

entitled
to

be

a

1953.

before

his

resignation

Chairman of the Atomic iEnergy

Commission,

Mr.

Dean

changes in the Atomic
Energy Act of 1946 to allow par¬
by

American

industry

in the development of Atomic
actors.
outside

He
of

said
the

that

a

re¬

tion

an

his

to

Government's

view

that

be permitted

development

of

own

industry

to foster the

nuclear

Mr. Dean has been

an

power,

advocate of

greater publicity of the destruc¬
tive power of our atomic weapons
because such knowledge, he is re¬
ported

to

deterrent

have
to

on

acts

are

said, might

war.

they

are.

be

a

same

reason

that the

.

do in these countries to create unrest

we

to the

or

to

Russian army of occupation is an
that would naturally be resented

unfriendly
by the Russians. It

point that we should let this deter us but it is interesting
understanding of the important forces that are moving in this

country and which
cable

getting the Administration into an inextri¬
who were so solicitous about stepping on

are

knot, that those

Russia's toes

in

Korea

are

now

boldly demanding that we "seize
"seize the initiative"
Administration, groping around

the initiative" in Eastern Europe. How do
you
in a matter of this kind?
Well, the
in

an

effort to find out

how,

came up

with the idea of giving

sur¬

plus grain to East Germany.
Aside

from

plished

in

reveals

again

its

bearing
Europe,

Eastern

voices which

how
I

the

come

to be

as

plain

as

what may or may not be accom¬
the matter is important because it

on

Administration

don't think

awfully hard time being

are

Republican Administration.

a

the

is so responsive to these
well-intentioned. It is having an

nose

on

That has

face.

your

This difficulty of being what the Administration was
supposed
be, what it was presumably elected to be, is being reflected
nearly every day. The Leftist columnists and commentators
get

to

wind of

an

appointee which the Administration has for la particular

job and set up
after

case

him.

Thus these

a

chant about his not being

"Liberal."

a

this clamor has resulted in the Administration

left-wingers have

power over whom

a

come

In

case

dropping

almost to exercise

veto

a

Republican Administration should appoint to

office.

Similarly they
policies.

seemed to be very

ment's

exercising

are

One

thing

clear

was

invasion of the field

McKay's first utterances
tional power

on

an

a

Governor

time

the

new

influence

over

Administration

that of stopping the Federal Govern¬
of

was

electric power.

that the

from Niagara Falls

was

One of Secretary

development of the
a

shining example

Yet when the

"give-away" Administration

was

addi¬

of what

left-wing

cry

set up, coupled with

Dewey's

desire to have this power developed
by the
government, the Administration back-tracked but not

N. Y. State

in

unwarranted

which

should be done by private enterprise.
that this is

demand

sphere of operations was devel¬
oping for these reactors. In addi¬
should

thought
or any

part would offend the mighty successor
Malenkov or MolotoV or a triumvirate,

—

recom¬

mended

ticipation

no

intervention

is not my

domestic

Shortly
as

trouble

act and one

to

as

Special Assistant to the Attorney
and

There is

our

our

though, that the Russians

where

are

cause

1927.

sity of Southern California in 1930,
Mr. Dean

this

be.

may

Now, anything

Dean

California, in

After taking the degree of Doctor
jf Jurisprudence at the Univer¬

of

Stalin

Man.

to "seize the initiative" in

Germany, Czechoslovakia and Austria for the
Allies

the

at

gree

it

a

in

many, Austria, Hungary, Czechoslovakia, et
us and at our invitation.
They are there as

received

B.

us

caution

today in East Ger¬
al, by agreement with
occupying forces pro¬
tecting their lines of communication until a peace treaty is signed.
We don't like to admit this but the fact remains.
They are in East

of

Seattle, WashDean

mighty

The fact is,

announced.'
A

the

to

counseling

were

Europe's present unsettled state.

whatever

overstepped the

we

the dreaded Bear Who Walks Like

arouse

the

the

are

Eastern

New

have pursued a timid

we

policy down there because of the fear that if
bounds

Stock

Bargero

to

of

the

Carlisle

our

the part of these counsellors now that

York

This

proffer may well
smart psychological move on our part.

make this

the

investment

been

are

of provocativeness on

of

as

the

have

us

alleviate the distress in East Germany, but, as
I

until

York

the author of

System,

Report

FIDELITY
OF

Trust

York,

affilate:

Act.

organization

rectly

with

been

if it had not been for

so

City, members

and

CONNELL,
Notary Public.

abpve-named

DELANEY.

JACKSON ^Directors
SELIGMANJ

of

which

Midland

New

Sworn

EUSTACE

before

which

my

Correct—Attest:

GRUEN.

K.

Reserve

COMPANY

N.

this

of

bank

the
of

Federal

are

institu¬

C.

published in accordance with the provisions

standing

above-named

my

1953.

affiliate

an

2993

and

of

member of the Federal Reserve

control:

$23,191,527.28

above

belief.

July,

of

Treas¬

the

best

E.

day of

&

with

CORPORA¬

that

swear

true,

filiated

President

relations

MIDLAND

solemnly

of

and

Vice

of

(par

information

to

land

purposes.

Stock

the affiliate

by

disclose

Group.

deposit with affiliate bank (divi¬

On

of

assigned

or

Delaney,

A.

bank:

account), $872,625.60.
E. C. Gruen, Vice President

value

MEMORANDA

pledged

Assets

Midland

with

necessary

consists

par

$9,000,000.00.

597,-

bank:

York,

by $1.4

associated

of

Lehman

which

shares

$8,958,840.00.

Marine

AC¬

increased

firm

Brothers,

Mid¬

owned

relations

affiliated

York,
TOTAL

in

of

of

the

'
v

was

with

banking

the

June

AC¬

Marine

degree of control:

600,000
are

Financial

a

with

Despite

Commission, has become

ergy

affiliate

is

connection

in¬

has

This

foreign countries it's supposed to be the hun¬
gry people who act up. In that event the worst
thing we could do, it would seem, would be to

war

Corportaion,

3rd

most

mortgage

countries.

is not true in our own country where Commu¬
nism has found its greatest support
among in¬
tellectuals and other well-heeled folk. But in

the

Lehman Bros. Staff

General

dend

for

Gordon Dean, former Chairman
of the United States Atomic En¬

outstanding of
by Marine Midland
which is the holding company

of
TOTAL

accord¬
Federal

30,

organization is affiliated with

bank,

of

9,000,000.00
16,000,000.00

_____

June

of New York, New
Kind of business of this affili¬

above-named

the

with

ACCOUNTS

t

Undivided

rec-

Company

Holding

256

as

GEO.

Capital

the

System, published in
provisions of the

4,299,512.95

Surplus fund

$900

over

as

company
affiliate
member of the Fed¬

a

affiliated

Sworn
TOTAL

to

high

as

with¬

the

Act.

TION,

or

insti¬

this

of

account

of

1953,
of MARINE MIDLAND
CORPORATION, 15
Exchange Place, Jersey City, New Jersey,

I,

executed

which

with

ance

urer

$414,442,653.58
for

savings and

holding

a

Reserve

Reserve

TOTAL DEPOSITS

Acceptances

of

value),

banking institu¬

Other deposits

quarter, and

net

amounted

bank

member

deposits of individuals,

of

cur¬

During the first quarter in¬

loan

ate:

rations

Deposits

of

Currency holdings were
reduced by almost $250 million,
while demand deposits were
drawn down by $2.2 billion. In¬
dividuals' time and saving depos¬
its
in banks rose by
over
$900
million, compared with $1.2 bil¬

land

and

——

partnerships,

holdings

and

York, N. Y.

deposits of individ¬

uals,

contraction

quarter.

which

Demand

of

demand deposits in
banks took place during the first

eral

assets

TOTAL

seasonal

usual

rency

a

in

was

and

sociated

individuals'

of

this

to

outstanding
Other

all

almost

1,186,147.14

acceptances

on

absorbed

issues.

new

The

198,174,173.66

credit,

satellite

increasing criticism of the Adminis¬
have ready plans with
an

Russian attitude.
All

million,

during the period.

of

(includ¬

overdrafts)

$500

Russian

did not

we

starving peoples

re¬

high level of home construc¬

securities

was
marketed during the first quarter
it is estimated that institutional

million, almost

Fed¬

Bank).

$19,480.33

local

and

vestments in shares of

subdivisions—.—

.

bonds,

were

Gordon Dean Joins

and

$1.0 billion in the first quarter of

Government

obligations,
guaranteed

stores

the

lament and

a

likely have done

this

of

and

bonds

in

turmoil

Germans to give them some of our surplus
grains which because of the Russian ineptitude
may redound in our favor but which would

by almost
charge ac¬

While

repayments,

billion

the

in

indebtedness

purchases of automobiles.

tion

York,

1952,

increased

incurred

part

somewhat under $200

the

quarter of

almost

debtedness

were

same

the

example of government by agitation is the

step in and "do something" to take advantage of

which to take advantage of this situation. And
it has resulted,
finally, in our offer to the East

final

the

we

not

installment

rities purchased by individuals in
the
first
quarter of this year,

million

the

in
at

was

retail

of

secu¬

billion

demand that

tration that

Saving in pri¬

recent

most

coupled with

these repayments were more than
offset by a further expansion in

securities

corporate

payments

million.

large

Of total

benefit

consumer

offerings in the first three months
1953.

of

resulting

first

individuals

corporate

of

volume

form

The

During the first quarter of this

by

$900

quarter of

quarter

the

investors

Company of New York
120

billion.

r

The Marine Midland Trust
of

$1.2

the

duced

state

OF

as

preceding
in

the

in

By CARLISLE BARGERON

the

flue

was-

insurance

$1.4

record

at

lion

higher;

year

of

was

old-age and survivors'

rate

year

$600

over

the

at

larger
the

counts

to

Government
than

from

under

million,
compared with $1.0 billion in the

amounted

this

saving

$200

riods, individuals' investments in
securities—mainly United States
greater

figure

a

year

security purchases relative to the
fourth
quarter mainly reflected

bonds—were

lower

quarter

insurance

million

quarter of 1952

in

saving of the more
permanent types, such as savings
accounts in banks, insurance, and
While

year.

Washington
Ahead of the News

Social

as

vate insurance which had reached

Savings
Bonds.
In
the fcorresponding period of 1952 there was
an

$200

less

first

in

insurance system.

cludes

holdings of Savings Bonds.
Corporate stocks and bonds
purchased by individuals in the

the

Government

liquidation of gov¬
securities by institutions,

composition of saving in
the first quarter differed slightly
from that of the same period last

The

In

saving

about

to

substantial

a

ernment

riod.

Following the usual pattern,
liquid
saving was
substantially
less than in the fourth quarter of

S.

From

Government

such

reserves,

billion.
1952

in

investments

and

Security funds, amounted to $2.2

indebtedness.
net

insurance

pension

first quarter of 1953.

saving the SEC states was slightly
higher than in the first quarter of

•

life

debt, expanded their aggregate in¬
Individuals'

addition, individuals' saving
insurance, including private

in

According to estimates made by
Exchange Com¬
mission,
individuals
saved
$2.5
billion in liquid form during the

stallment

$1.0 billion of the preceding

quarter.

quarter of 1953, highest for this period in any postwar year.
Finds installment credit expanding.
the Securities and

Thursday, July 16, 1953

to

keep the House from passing

effect, turn this development

over

a

bill which would,

in

to five private utility companies.

It remains to be seen what effect the Administration's
attitude may
in the Senate.
The Administration, sensitive to the

have

away"

"give¬

cry,

also shows signs of

versial project, the

project.

on

another contro¬

so-called Snake River development in Idaho.

It had given the green

this

backtracking

light to the Idaho Power Co. carrying out

Now the situation is steeped in

a

lot of confusion.
_

i

Volume 178

Number 5238... The Commercial and Financial Chronicle

Certain

No

Magic Panacea For

changes in the laws of

and other countries would

our own

help

undoubtedly

stimulate

the

flow of investment capital abroad.

Basic Economic Ills!

Investment

Manager, Foreign Commerce Department
Chamber of Commerce of the United States

After pointing out inadequacy of actions
already taken to bring
about international economic
stability, Mr. Campbell stresses
need of more effective remedies. Discusses international
pay-*.

part of everyone.

on

Concludes there should be

fear of
Various

of

measures

expediency

fully designed to bring about ineconomic

stability,
fallen

nave

short

their

of

mark.

*

that

were

they

in them-

selves bad, but
rather
that

two

same

or

countries

more

property

income

or

no

major

deterrents

one

in

of

certain

areas, in other areas unstable gov¬
ernments, danger of expropriation,
f

various

and

conditions

nonbusiness

risks—

disturbances

economic

And

realistic,

and

which

be-

this, I believe,

should be the basis of

a

new, more

consequently

more

effective approach to the problem,
Measures now being considered
be

must

pak

those of the
certain

successful

more

We should make

each

that

than

proposed

rem-

edy is evaluated in relation to the

problem

as

limitation
the

at

of

each

outset

be

that

so

some

time to

interesting to note, for example, an estimate made by Dr.
Howard S. Piquet, of the Legisla-

duce

morG

tban

$33-6

If

either

should be
the

rect,

these

of

even

significance of

the

extension

the

of

cor-

Trade

cash

private

are

While U. S. private investment
appreciable

any

contribution

to

tbe alleviation of the dollar shorta£e< as such, to the extent that it
a*ds tbe general economic develas
to its °Pment of a given area, with
greater production and wider disextending tribytion of goods, it is more than

shaking

in

importance

material consequences.
The greatest value in

ness

the

on

expect too much.
^

expanding trade for mutual bene-

justified.
sboidd be prompted by the
Profit motive on the part of the
investor and by economic benefits
to

tbe

area

on

tbe Part of

the

host country. Foreign investment,
therefore, entirely aside from fail-

conditions

which

would,

in turn,

attract private capital.
The problem is a country-by-

Other

certed

effort to

of

ance

U.

the

have

I

tended

limitations

directed

problem,

it is

to

to

with

say

up

Expanded international trade

investment

and

generally con- that
a
thorough modernization
ceded to be the most important and simplification of customs adfactors in furthering international ministrative provisions of U. S.
economic stability.
tariff laws is highly desirable and
For example, in some areas priFrom the point of view of the that legislation should be passed vate
American dollars together
United States alone, a consistent at once to make this possible.
with American personnel and their
and continuous large export surThere are those who believe technical know how, have develplus—financed out of tax revenues that this could be of more imme- oped in underdeveloped countries
—is not economic.
It is not in diate effect than tariff reductions entire new industries, as well as
keeping with the position of the in the encouragement of imports, towns, roads, schools, hospitals,
United States

are

a

as

creditor nation.

Our industrial machine and

our

national security require raw and
semi-manufactured goods for pro-

Among the imponderables how-

which make estimates resuiting from either of these meas~

ever,

ures tenuous are:
(1) the potenand
stockpiling.
These tial ability of the United States
alone, however, are not to absorb enough additional imsufficient to supply America's for- ports to be of appreciable
signifieign customers with sufficient dol- cance, and (2) the ability of other
lars to maintain United States ex- countries
to produce for export

duction

imports

ports

at

level

a

commensurate

with the importance of exports to
total United States economy,

the

For
of

the benefit of the economy

the

United

business

and

States

the United

whole

a

should

government

increased

encourage

as

imports into

States.

companies in the Middle
East and Firestone in Liberia have
contributed to the economic development of the areas, and have
in sufficient quantity, in accep- created better understanding beable quality, and at competitive tween Americans and the nationprices to interest the American als of host countries. This form
even

ably

We
eral

are

for

Increasing

familiar

with

Imports
the

for

some

time

if

come,

all.

at

While these

sev-

may

be comforting

about better

rational

action

the

can

be effective

Recent
on

proposed for
No single

imports.

the

United

part

of

hearings

extensions of the Trade AgreeAct has focused attention

ments

*

*

An

address

by

We find little disagreement on

whlch to buildThe underdeveloped countries
need private capital for manufac-

the fact that substantial increase

turing and service industries, and

in

these must depend for their

in this regard

Congressional

Mr.

Campbell

°chaUrlott
1953.




at

Va"'v"uly

the
g,

Increased Foreign Investment
private

highly

investment

desirable.

been written

abroad

Volumes

is

have

as to how such
vestment can be stimulated.

fear.

future.

To

the

rest

We

take

can

nation

American

is.

it

domestic
fited by

This
to

the

competition

announcement

buy any

cess

on

facilities

such

as

power

and

on

local

markets.

Lacking

Co.; H. V.. Sattley & Co., Inc.;

borg & Co.; Stern, Frank, Meyer
& Fox;

NEW

is

neither

Miller, and Redfield

Now Rockwell & Co.
MINEOLA,

of

an

C. N. White & Co.; Jones,

Cosgrove &
& Co.

of

name

1539

bene¬

of these Shares.

Stone
& Youngberg;
& Co.; Hill Richards

Work

E.

Singer, Deane & Scribner; Wagenseller & Durst, Inc.; Irving Lund-

N.

Y.

Cashman

Franklin

—

&

Avenue,

The firm
Sundberg,

has

been

changed to Rockwell & Co.

cringe

we

City, Utah; Lawson, Levy &

Williams;
H.
&

industry

and

it—why should

Co.; Ryan,
Continental
Company, Salt
&

Trust

and

Bank

Lake

the

challenge

Co.; Commerce Trust

McCormick

Co.;

ad¬

from

Freeman &

•*

Sutherland & Co.; The

back
judgment, would

courage

welcomed

solicitation of an offer

offer to sell nor a

The offer is made only by the

Prospectus.

ISSUE

500,000 Shares

North American Peat Moss Co., Inc.
A

Common
(Par

Corporation

Delaware

Value

Capital Stock
10

Cents

'

Per

Share)
1

■

Price $1.00
i

i

Copies

the

of

Prospectus

such States where
in

Offered

may

as

a

Per Share
Speculation

be obtained

the undersigned may

compliance with

Members

37

Wall

Street

National

from the undersigned only in
legaly offer these Securities

the securities, lows

R. A. KEPPLER &

suc-

in- and rail and road transportation

should

Incorporated;

Bank of

philosophy of the American com¬
petitive
enterprise system that
has made this the great productive
has

Co.;

&

Hutton

E.

City, Mo.; The National City
Cleveland; Cruttenden &

sas

of

suicide.

We

Son

Kaiser &

try to turn

the clock, in my
be

W.

Company, Kansas City, Mo.; City
National Bank & Trust Co., Kan¬

everyone

be faced in the foresee¬

may

able

Co., Inc.; E. F. Hutton &

Company.

must be

oi economic development is that

^ where 1;heieed

&

today and to those with which

we

&

Company;

interdependepce or

States and

or

recently said, "The trouble
with private enterprise in the field

in-

lock

fully rec¬
ognized, and helping other coun¬
tries is helping ourselves. Actior
must be based on intelligent and
thoughtful
conclusions, not on

TCA

one

F. S. Smithers & Co.; Wm.

thinking, and constructive

on

the free world

of

Becker & Co. Incorporated;
E. Pol¬

A. G.

public understanding,

economic

The

Oil

thoughts to the protectionist, they
is
should also be realized by the ad- greatest.
as long as tne tnret
should be overrated as to its po- vocates of increased imports so baslc llls °i widespread hunger,
tential effectiveness in alleviating that they will not expect too much disease and ignorance remain, prithe balance of payments problem, too soon of these limited measures vate. industry has no sound ecoApplied in concert, however, they designed to increase trade.
n
.s°clal foundatlon
measures

creasing

Co.; Coffin/ & Burr Incorporated;

Shearson, Hammill & Co.; Gregory

if all bar-

to

Co.; John Nuveen & Co.; William
Staats & Co.; Heller, Bruce &

biggest jobs we have
do here in the U. S. is to bring

of investment was especially applicable to extractive industries
riers to imports were removed, and to the areas concerned,
that would be no guarantee that
In other areas, as Jonathan E
imports would increase appreci- Bingham, acting administrator of
It is true that

Higginson Corporation;

One of the

market.

*

Measures

'churches, homes, commissaries,
harbors, docks and wharves, social
and recreational facilities, imProved sanitation, adequate fresh
water supply and refrigeration,

& Co.; Lee

posal.

emotion

the volume of im-

Co.; R. W. Pressprich

R.

of

just our thinking to the conditions

made,

&

Equitable Securities Corporation;
Dean Witter & Co.; J. Barth &

the

hope

Los

Bank;

The Philadelphia National

principal

the

of

Bank

National

First

Angeles; Salomon Bros. & Hutzler.

up the danger of under
estimating the problem itself and
of placing too much hope for a
magic solution in any one pro¬

to

Barney

Pierce, Fenner & Beane; Security-

that

correct

offering

the

of

& Co.; Harriman
Incorporated; Leh¬
man Brothers; The Northern Trust
Company; American Trust Com¬
pany, San Francisco; R. H. Moulton & Company; Merrill Lynch,
Smith,

in¬

point

the

of

measures

members

include: Blyth & Co., Inc.;
First
Boston
Corporation;

Weeden

conclusion, I want to

1, 1954-

Aug.

Ripley & Co.

productivity and improvec

Generalities with regard to fore^u investment opportunities are
difficult to apply. There is, more0VGr> a vabd field for both private
and Pubbc investment,

been

The

con¬

alleviate the bal¬

—has much to commend it.

on

have

group

Conclusion
In

2^%,

5%,

Series A, maturing

marketing methods by U. S. for¬
eign suppliers, to mention a few.

while

new

73, inclusive. The bonds are priced
to yield from 1.90% to 3.05% ac¬
cording to maturity.
Other

other parts of the world;

creased

Calfornia,

County,

joint defense forces in NATC

and

a

of

2%% and 3%, 1953 School Bonds,

overseas; U. S. purchase oversea.'
of arms and equipment needed b?
our

N. T. & S. A.

offering

are

$10,800,000 San Diego
Unified School District, San Diego

problem:
Ex¬
travel and tourisrr

S.

associates

issue

payments

panded

of America

Bank

and

other

rect effects

nations,

School District Bonds

Factors

There are, of course, many
factors which enter into a

ports from customs simplification.
There seems to be no question but

among

Group
Offering San Diego

are

ments

difficulties

Bank of America

with full local participa¬
principally needed at the
present time—to aid in creating
grams,

tion,

to magically close the dollar
gap—especially over the long-run

estimates

economic

world.

to my knowledge, of probable di-

No

to

nation decide

a

technical assistance pro¬

national economic problem of the
hour is that of balance of pay-

Probably the outstanding inter-

as

those

It is at this basic level that gov¬
ernment

cannot be considered as making pointing

Agreements Act, with its limited
tariff
reduction
authority, certainly seems to be less than world-

part of the U. S. to
negotiate with other countries for

The Balance of Payments Problem

are
making a
living from the
earning practically
income, the prospects for
industry are meager in¬

and

must

policies
which are sound, constructive, and
which in proper combination will
lead us progressively and eventu¬
ally to the economic stability,
peace, and prosperity of the free

people

subsistence

land

transfer

Fisk .as a maj°r factor in restrain*nS investments,
It: may be> however, that with

estimates

approximately

factor—the indication of willing-

not

We

follow

million

tive Reference Division of the Library of Congress, as to the probable increase in U. S. imports in

recognized
do

of

of a

obviously must country one, each different as to
be
corrected
by the recipient its particular requirements. Nei¬
countries themselves—are signifi¬ ther private capital nor govern¬
cant deterrents.
ment aid can do the complete job
The inability of the ECA-MSA and even at the most judicious
transfer guaranty program to in- best, tangible results are slow in

the

come.

It is

the Trade Agreements Act may be
considered to be the psychological

we

lack

taking form. It is a long-range
Agreements Act is salutarv
the
worth of investment funds to move job, one requiring patience anc1
continuation of the present' law abroad, during its four years of persistence, but an unequivocally
can
have no material effect on operation, throws some doubt on worthy one.

the

whole and that

a

country's

the

or more

which

American dollar grants and relatively easy loans tightening up—
they were
the guarantee provision of foreign
simply
not the event of a temporary lifting aid may be more in demand, aladequate.
of all tariffs
(a highly unlikely though it is not a substitute for
Perhaps the prospect) as being from $800 to creation of desirable investment
best lesson we $1,800 million a
year.
climate by the host country,
can learn from
A
more
conservative estimate
The flow of investment dollars
the
experi- made by the Mutual Security Ad- ir?to a bost country has an immeences
of the visory Board
(the Bell Report) diate favorable effect on its balK. H. Campbell
past is that placed the probable increase in ance of Payments,
but imposes
realization imports from $700 to
$1,000 mil- Pr°Wems of service payments and
and acknowledgment of the fact lion a year—if all its recommen- ultimate
repatriation.
For the
that there is no magic formula, no dations were
followed—but not ^
over tbe l°ng~fun this poses
panacea, for the fundamental ills to be reached for perhaps three
tbe pr°blem of ultimate acceptwhich lie at the root of chronic to five years.
ance of an import surplus.
set the world.

is

When 80%

bare

deed.

by

the

While this is considered

measure

a

fa¬

are

fundamental

markets.

tion

the

American

as

conditions

adequate incentive for
incurring the risks involved.

for increasing imports
While the extension of the Trade

imports for

This is not to

say

tariff reductions

on

un¬

facilities private capital is behind unfounded fears of foreign
likely to be attracted, and even competition.

more

no

leaves

foreign competition.

undertaken in recent years, hopeternational

no

is

areas

basic
not

vorable, excessive taxation by a
single country or multiple taxa¬
of

ments

•

some

other

if

even

problem, and outlines measures for increasing imports
and for expanding American investments abroad. Warns world
economic problems offer no magic
solution, and urges better
public understanding, rational thinking and constructive action

in

duly discouraged by taxation; and

By KENNETH H. CAMPBELL*

13

(209)

Association

thereof.

COMPANY, INC.
of

Securities

Dealers, Inc.

New York 5' N* Y'

J4

(210)

The Commercial and Financial
Chronicle

chandise

U.S. Is Not

High Tariff Country

a

into

An

I.

du

Pont

experienced

de

Nemours

and

businessman

foreign trade policy and denies
role

as

trade and contends
in

discusses

nation
a

proper

true

picture would show

a

balance

When

•

group and expresses

hi

speaks to

for

that

speaker

When

tion of his posit ion.
t h

It

is

back-

e

of

experience

individual

an

which

point
and

his

set

of

view

the

per-

spective
der

tribute
tion

which

he

That

why
Fred G. Singer
People-of
equal
integrily and intelligence can difier,
sometimes

opinions
I
I

completely,

have

the

on

not

am

in

available

by telling
life but I think

trader*
trader,

least

all
all

know that I
business

mv
my

not

you

life

34

past

has

years,

high;

in

trading, domestic, export and im-

States
btates

and
ana

the
tne

»«.

address by
r

.

stitute

of

LI*

r»-

of

A

_

Public
uc

Virginia,

5

Va.,

our

role

proper

accused

duties
making

^

t,

are

it

as

being

the

Broudway,

close

of

published

in

New

soon

as

business

the

Superintendent

the

provisions

the

State

of

of

New

June

on

accordance

by
to

with

of

the

N.

Y;,

30,

at

u

heaved

York..

I

,

balances

banking
eluding
and

of

with

other

,

institutions,
inbalances,

reserve

cash

items

in

"

process

'

collection

United

obligations,

direct

-

at

and

fixtures——

405,473.61

assets

472,99^.94

TOTAL ASSETS

$2,753,538.50

—

about

uals,

deposits of individ¬

partnerships,

corporations

a n

have

TOTAL

DEPOSITS- $146,788.35
liabilities

Other

TOTAL

LIABILITIES

including

1,505,887.33

record

business

The

LIABILITIES

CAPITAL

IV.'his
t

ACCOUNTS

institution's

c.iumon

stock

with

$2,753,538.50

capital
total

*

:'

ts

pledged

-cure

•

.: e

after

crves

•'-»

ous

3,426.49

CHARLES

of

my

knowledge

and

is

true

to

the

belief.

CHARLES J. SKINNER

Correct—Attest:
GEORGE

F.

LePAGE

KENNETH K,
NORMAN

J.

par-

years,

leading
suffering
of

rigor

more

per-

group.

Has

Should

we

to

way of

)
McLAREN [Directors

MacGAFFlN I




-"

the

on

our

road

comes

in

as

we
a

create

But

which

few

to

the
I

G.

Lee

finds

public
at
-

to

these

of

the

case,

it

is

when

hurl

experts

arguments

totally

to

his

con¬

quote

from

parts

that

Soviet

edi¬

Union,

settlement

the

the world.

United

balance

do

of

of

ac¬

vari¬

In

our

States

in¬

payments

account

sheet and all the blame for
world
troubles has been placed on the
exports of merchan-

o. b. point of
exit from the
United States
$nd imports of mer-

blamed

of

are

taxpayer

programs

paid

by the American

added

or

to

the

the

riots

in

American

on

Sometimes
go wild

mer: "

and

ECA-MSA

which

doubt

East

Ger¬

complicity,

the boys in the Kremlin must be
going wild trying to figure out
just what U. S. policy really is."

also

der

U.

S.

American citizens

even

trying to figure out what
policy really is!—not to

mention what it should be.

Now,

1

I. want

to

mention

four

basic premises to which
any other
points I make must be related:

public-

debt.

There are several other aid
(1) I believe "the boys in the
under which American,
£°°ds are given to foreign coun- Kremlin" are seeking to destroy
the
free world as we know it and
tries and the value of which is i?ieluded in our export statistics but; the U. S. in particular.
(2) I believe the security of the
1 have Pot had the time to dig-into
programs

,

U. S.

these figures,
The True Trend of Our Foreign
Trade

and

the survival

of the

'

Putting all these
gether, one can get

factors

to-

accurate idea of the true commer-,
cjai trend of our
foreign trade,

jn

summary,
since 194s-

here

is

the

picture

General i

Exports

Commercial

c.

9.0

1950

7.8

$8.i

.

,

-

•

1951

12.0

*•■••11.9

10.7

11.6

>::Estimated.
.

Thls„sh°5s.th? tre,nd of
efforts jo

place world
^ on a sound basis. Taking
th?u Iast threa years flguj,es .t0

getbej-

ported $2'6 bllllon

c?n

take

a

plot

our

thrust

upon

us,

are

realistic

me,

we

it

seems

follows

lem

are

the

key

fac-

Mrs.

Lee

at

the

Affairs, University
Charlottesville,
Va.,
July

In¬

of
S,

NATO
in

a

to

the

world

U.

S.

situation,
that

say

which

is

and

trade.

the

demands
the
its

If

our

prob¬

relation

you

agree

that the development of trade be¬
the
free
nations
of
the

tween

world

is

key

a

to

essential

strengthening of their
then

it

follow

must

economies

that

the

for¬

eign economic policies of the U. S.
designed to promote such

must be

trade.

In

moment

a

like to mention
I

believe

policies

But

first

tention
which

I

to

at¬
fact

peril. *

our

growing Soviet productive

political

and

a

though

I

tistics

believe
this

on

to

that

the

is

being
to

easily

sta¬

that

rate

the

in

countries.

be

a

This

hard, cold
importance.

envision

the

of

superior

achieved

fundamental

to
Al¬

available

growth

agree

economic

threat

world.

subject are few,
the experts
do

unreliable,

seem

real

very

military

non-Communist

can

end.

your

related

ignore at

represents

to

this

call

another

capacity
the

would

things
incorporate in

achieve

want

to
we

The

to

I

of the

some

must

we

our

fact
We

results

of

productivity in terms of in¬
creasing Soviet military potential.
bad

the

enough,

experts

although
to

seem

of

the

West

can
r^.ce

time to

more

come

aspect

to

is

poential

the

agree

highly industrialized

jump ahead in this
The

and

grasp

na¬

keep
for

a

some

difficult

deal

political

with

weapon

increasing economic strength
represent.
a

mean

if

geared

Perhaos

we

can

glimpse of what it would
Russia

paralleling

of
by

Public

the

survey

the

of

not

live

we

consideration

of

to

catch

that

prosperity

Pay¬

but

underestimate

But

fair

issue

prime

may

-

Last

not

N.

now

central

this

and

if these points

economy

address

Virginia,

it

and

American

1953.

to

accepted,

stability

of

long view
accordingly.

course

seems

*An

32

been

leadership,

Schuman

importance of

U.

As

tions

satisfactorily assumed and
discharged if we are willing to

stitute

page

world

of

the

change and we are con¬
stantly faced with the necessity
of adjusting our policies to
de¬
velopments beyond our control.

that

be

lm~
on

vitality of the

people and the Ameri¬
system is such that the re¬
has

must

of

is

more than we

Continued

the

the

It

,

and

again

can

and

Nor

European

etc.

must

we

world

of

essential

•

I believe the

the

crucial

That

wars.

sponsibility
-

the

cold

.which

9.6

1952

,t

least,

appears

develop¬

are

in

American

,7.5

■

Union,

this

■

$11.3

1949.—

?ve!"a11

trade

,

Assistance.

Mutual

IV

forget

building the defenses
the strength of the free world
sufficient
to
win
both
hot and
(4)

i. f.

(in billion of dollars)

■

and

program,

Plan, the
Program, Point

non-Communist

I believe economic
-

na-r

Imports.

Re-exports

.

the

and

Including

1948

(3)

factors

re¬

challenge

Marshall

and

this

cooperation between
tions of the free world.

ment

to

military

refer, of course,

Cooperation,

world—perhaps even civilization
itself—depend upon a high degree

=

had

nations

Greece-Turkey

Plan,

and

reasonably

a

free
I

the

S.

successful

meet the

nomic

free

of

mI

The mystery of the
"dollar gap"
has been based on
that

dise f.

shipments

is

move

no

many and the confusion in Korea,

Department: of

un-

not

statement.

trade items:

of

every

anything
happen by chance.

can

our

II

courage

were

ments

out¬

admiration

and

seem

Just

What with

U.

the

the

since

years

War

the

the
part played
by
European institutions as the
Organization for European Eco¬

which

newspaper

advance, it
inconceivable
that

is

that

and

helping

we

your

that

in

elsewhere

the

which

Technical

they

call

in

and

figures

sentences

planned

forces,

chandise to foregin countries

from the out-of-date

of

ternational

value

allies.

our

some economic and

Security

enu¬

as

editorial

an

which

two

into

such
to

himself

tradictory.

vision

the

development

want

officials

and

him

the

to

serve

-

I

to

emerges

main free and

concepts

can

want

of

me.

first

often

over-allv

is

fact

thoroughly

as

World

of Communism.

fundamental

a

the
the

economic

this

just

of

fact

in
John

Mrs.

estab¬

principles

facts

figure

foreign
take

review

we

policies

"Washington Post." It de¬
scribed, in a way, I think, the
dilemma the ordinary U. S. citizen

Commerce) but he also segregates

creditor

gold between the

nations

this

the

by

must

incorporate a realiza¬
importance of strength¬

close

adopt

-—The

studies, he

Commercial

that

role

(incidentally,
published

picture.
S.

U.

economy
upon
of the rest of

Our

must

must

As

the

yet

attention

by the

armed

-our

own

materials

it

world

the

ening the economies of

live

few

a

appear

military materiel
abroad,
not
including
to

our

of

Meeting the Communist Challenge

people

merate

igenerally

the

free

recognize the dependence

tion of the

of our judgment.

direct

shipped
shipments

be

life, to

segregates

of

S.

consideration

yardsticks in

as

does

gap."J

In his

of

as

rather

me

lish

to

as

only

value

be-

^ky,-°f-course
haP^ned—-and
we
^he things our

our proper

counts

re-

0

I .'St

be

done, thanks

international
$105,261.02

not

we

pictures, continued maliciously or
through ignorance, concerning the

of

statement

i

has

above

deduction of

20

so

tional Finance."

the

performance

The accusation

nation

J. SKINNER,
Treasurer of
above-named institution,
hereby certify
i r/; the above
t

j

is

turn

policy

essential

like

publish annually his
"Survey of United States Interna-

truth

more

case

other countries

of

assigned to
liabilities and for

her

t

help

value

or

purposes
-.rities
as
shown

try

play

MEMORANDA

cies

but

Have

our

to

mencan economic

of

>,000.00.

J,

the

past
of

our

a?
d

E

consists

par

is

that

Princeton

all

to economic health.

AND

what

in

this

we

in

and

'goodness, .Profess ojh
Gardner Patterson. Direr-tor of
the
International Finance Section.* at

on

:

u

$1,100,862.82

of

Lays down 11
foreign policy,

trade policies.

the

world.

wmmzmm'mmmmm

basic terms, It

'Thank

im-

more

exactly

other

any

of

,

AC¬

illusion

a

v»r\nr.AM

published

called "the dollar

long-

cover

is

and,

the

nothing happened?

„

CAPITAL

to

this subject,

on

275,862.82

COUNTS

".'OTAL

life

for

cartoonists

,

VOTAL

the

groups,

accusation

is

newspapers seem
from an acute

325,000.00

profits

w% r\

Department of Commerce

a terrible

by

v»

export statistics

that I have heard all

$500,000.00

fund

Undivided

A ^
it is

played

V

an

to

me

simple,

misleading for the same reason.
By this failure of segregation, the

a.

about
this
the years, since we
a
creditor nation?

promoters

ACCOUNTS

t

in

by foreign
group

S.

realistic view

a

citizens

as

raw

j? Pasjfing, it should be appeared recently in
noted that the import statistics standing and unique
Published
by foreign countries are for which I have great
inlnn/livirt'

nothing

become

haps than
$1,652,675.68

first

just

citizen with

ur,e\

country,

What

over

ashamed

CAPITAL

Capital
Fa-plus

hoaij,

being
people

accusation?

done

mortis

(not

subordinated

obligations shown below)

The

U.

in

We

complicated

permitted; in
statistics,- to
shipments
to
foreign

.

am

tors

in

and

me

world

been

paid

gov¬

and

view

k e. s

export

are

I

with

am

re-

my

1 i k.e

any effect on our balance
of payments account since no for¬

.u

that

ones.

Ocularly,
$146,788.35

not

U.

many others

*
m a

of

ernment

for

not have

The, tune that is being
played .today by the so-called ultra-liberal

ny

q

__x

is

in

this

problem

•ame

LIABILITIES

thai

studv

has

sound

a

its policies. It
is necessary

with

*

pubipct

expert.

some pure

points

trade

Demand

i.u

and

us

do not have time

really
478,511.02
60,000.00

—

for

from

teehniral

which

this

humility for I

an

sponsibility

our yardsticks
therefore com-*

customers.

w'ao *iave no* thought

portant

and:

guaranteed

Other

•

Government

Corporate stocks
Furniture

the

$1,336,559.93

States

sense

f. wh°™

sn™

same

and

factor

ments which

a

^

11

u

I should like to
take the

-

/

make

us

real

sense

ordinary American

official

problems

an/that

segregate

our

^

through very carefully the
term consequences on
our

ASSETS '

Cash,

no

Inter-

figures

approach

.

?u°

of

i

•.

Jet

the

broad outline of

a

University,, wades,, torial: i "In
the
intellectuals, through the voluminous
reports where
presumably
?Ve a,s^a^e °* immediate published by government agen-

W

made

pursuant

Law

which

American

jutside ot

1953,

call

a

Banks

Banking

the

vaUlej.

talking the

identical

sus

-

hoax

5,

tP

these

world
arfi

publishing

competi-

^

a

York

I

very

this

complicated
is
that
sjnCe 1948, the Bureau of the Cen-

u

the
120

imnort

m

1

\

COMPANY
of

converts

discuss

this

i
th
°
aa gunLC°m-hini1,
Tin
any "ghteous
./ij1,? ^
uninformed AmenJ?*® tragedy of the situation
is that it is all

/the;
COKI'OIJATJON:

and

Another

•

iio

I

that

so

the

must take

we

including changes in U. S. tariff and

their

on

of

responsibility of free world leadership.

coun-

publish

statistics

parable

.

^

v-.v.^++,r

OF

.

as

that

i

CONDITION

much

language

unnecessarily
impossible for

July
is

OF

world

ha^is

are

don't invest enough
money abroad.

d. 1953.

REPORT

the

trade

the

foreign trade policy,

raise duties

whole
wnoie

^

Charlottesville,

of

our

points for

a

confuse

tries

foreign

tS

«r

or

to sell to
us; that
eign exchange problem is inemploy other methods of abso-* volved. while the second category
lute restriction of trade; that we definitely does enter into that
pic-

Mr. Singer at the ini.L
I
the
me
University
*jiiivcr»ny

Affairs,
Anairs,

mystify

Qther countries

^
♦An

a

of

We

port, the latter two only between
ihe United
Ununited

our

not

might

so

defense of free
world; and (4)

to the point of
importing country

the

Voters

our

security depends on close cooperation of free nations;
(3) economic development and trade are essential factors in

i. f. point

c.

The vast majority of

WP

foreign trade.

Women

foreign policy as: (1)
destroy U. S. and free world; (2)

point of exit
a

you.

we

what is thought to be the

playing

import

for

been

in

creditor .nation;

a

_

th e

b.

o.

of^ so-called friendly countries paid throueh the variforeign countries.
ous
government
aid
programs
Principally, we are accused of from the strictly commercial
ship-

you

am

President, League of

freight

into

American

number

a

f.

an

foreign vaiue

has been and is still being noisily
attacked,
not
only
by
certain
groups in our country but also
by

their

on

and

hasis

formula-

Foreign Policy

as

nati0naL Monetary Fund issues its
statistics for all countries on that

country's foreign trade pol-

or

trend of

going to waste the time

tbe story of my

should at

icy,

subject.

same

modestly to the

situation

Our

explains

principal critics abroad,

By MRS. JOHN G. LEE*

our

which

Foreign

of

our

Our

to

way

exports

Thi/ j

broad

a

the

to limit my remarks to the
second
question
regarding the facts of

any

event.

with

as

constructive
policy. In
view of the time limitation, I want

un-

observes

such

questions, the goal and the facts
of our situation today. It is only
after understanding the first and
establishing the second that I
might feel in a position to con-

ground, the
training and

same

way in which they publish their
foreign trade statistics and that is:

gntrv

Economic Policy
of our country,
I am immediately concerned, as a
practical businessman, with two

indica—

some

confronted

question

give

to

the

trade

going

Mrs. Lee lists basic
premises for
the Kremlin is
seeking to

ance

,

Europe, including Juikey, but
excluding Soviet Russia.

subject, I believe it is im-

any

■portant

.

of

opinion

an

in

this

am

is, cost, insur-

„

total stranger

a

myself

I

basis and imports on
of entry basis, that

high tariff country.
*

express
our

of

now

question,

ing

and imports. Says if proper yard¬
used, the United States cannot be said to be a

were

Yardsticks For Evaluating

they actually think when discuss¬
foreign trade. It is also the

foreign

near

speaking

balance

as

not playing

are

s

commercial exports

our

stick

trader

we

In

Company, Inc.

Criticizes U. S. statistics of

creditor nation.

a

&

foreign value basis

a

United States.

The Trade Balance Question

By FRED G. SINGER*
vE.

on

the

Thursday, July 16, 1353

...

to

the

adopted

a

policy

Marshall

Plan,

raisihg

living in the

the

poor

standards

and

under¬

developed countries of the world.

Continued

on

page

30

Volume 178

Number 5238

...

The Commercial and Financial Chronicle

(211) 1 15

Another Great

Room Air

...as
You
air

see

Conditioning Comes of Age!

here the most compact console-style

conditioner

It

and

engineering is typical of Philco's dynamic

The first

hermetically-sealed power system

..;

leadership since 1938 in building this rapidly

first true Automatic Temperature Control.

exclusive development in Philco's 16 years of

expanding industry to its present proportions.

first Bedroom air conditioner

ever

one

is

the

latest

leadership in

built.

Development from

of America's great growth

industries-ROOM AIR CONDITIONING.

For when Philco entered the air condition¬

the

ing field, it brought to the industry
In this remarkable

new

u^nit, the entire cool¬

for casement windows

dous

a

tremen¬

knowledge of public tastes and skill in

.

.

.

.

.

and,

.

more

amazing first Reverse Cycle

tioner that cools

.

.

first Consolette
recently,

room

condi¬

in hot weather and heats in

cool weather without electric coils!

ing system is self-contained in the space-saving

merchandising to them. Philco led the

cabinet, yet the unit does not extend outside the

making

window.

business, instead of a sideline, and the industry

erators,

began to

Philco's unusual technique of Research inte¬

now

As

a

result,

room

becomes possible for

air conditioning

thousands of build¬

ings where restrictions exist against outside
extensions

on

,

windows.a
•

This solving of a problem




1

•

|

through research

air-conditioning

a

full-time

way

in

dealer

grow.

Since the War, these Philco "firsts" have

spurred

room

air conditioners into

today's

substantial sales—

A NOTHER

FIRST

Once again—as in

Freezers,

Radio, Television, Refrig¬
and

Ranges—

grated with Engineering and Merchandising,
has

paid off in industry leadership.

And the end is not in

FROM

Electric

PHILCO

sight!

research

16

(212)

The Commercial and Financial
Chronicle... Thursday,

unearned subsidies, un¬
unearned housing,

getting

The Problems of Your

earned

City

and

through

By ROGER W. BABSON

enjoy reading the
They are constantly

becoming

greater factor in

a

nection with

both World

con¬

and Na-

tiOllciJ

ciiiui. ,s.

seldom

read

is

problems

honest

management with
growth and assessment.

which talks of
our

tax

efficient

column

a

These

ineffici¬

The

moral

effect

on

legislation

monopolies,

is

or

bad.

practices
are
basically the reason for increased

ency have crept into many munic¬
ipal governments, from which too
many voters are secretly profit¬
ing. The real solution of our lo¬

cal

Unfortunately,
we

Corruption, politics, and

"benefits"

unearned

unjustified

labor-leader

We all greatly

columnists.

dangerous

increased

costs

and

same

spiritual

the basic

is

Vice-President, James Talcott, Inc.
Chairman, National Commercial Finance Co., Inc.

also

for the fall of the

reason

stock market averages from 293 in

wise

January to about 270 today—some
20
or
more
points. This is very
significant.

of

By HERBERT R. SILVERMAN *

This

taxes.

decadence

and

voters

Functions of Factoring and
Commercial Financing

wages,

other

the

of

our

city

Public

town.

Utility Securities

dis¬

me

Some

By OWEN ELY

1i

p p

(except
il

Roger W. Babson

a

city

than

is

buys
before.

ever

before.

ever

independent,
electric-gas utility operating in the Hudson River
Valley between the areas served by Consolidated Edison and
Niagara Mohawk Power. In earlier years the latter company owned

which

higher today
Probably more

a

While the

higher tax rates may not be
if your city is propor¬
tionately growing in good popu¬

,

million

taxation,

should
taxes

most

be

able

from

the

growing
raise

to

cities

enough

addition

of

new

taxable property.

Let the outlying
sire profiting from

sections which
the

growth

the

pay

increased

costs.

is

at

area

present.

Revenues

were

84%

increased.

rise

in

In

living

view

costs,

of

this

with

that of

ings,

as

for

where

production

seems

1953

of

Welfare

old-age assistance and
ity work is not much

for

Aid

other char¬
of

most

local

your

of

a

these

treas¬

expendi¬

Furthermore, most of this

money remains in the community.
Even

after

paying the

increased

taxes for welfare
work, most

mer¬

chants, landlords, and retailers

are

better off

re¬

sults.

as

In

to

net

addition

financial

to

having the
satisfaction of helping
deserving
people, they are making money
from

the

expenditures

of

these

people.

18,300,000

0.72

0.60

10%

16,600,000
14,600,000

0.71

0.56

10%

0.65

0.52

9%

1948—___

14,100,000

0.53

0.52

8V2

1947______

12,300,000
10,700,000

0.55

0.52

10 y2

0.59

0.51

14

10,000,000
9,300,000
9,000,000

0.48

0.48

131/2

0.53

91/2

•

1946
1945

1944__
1943

ing

states

and

are

most

over

continually tak¬
of

the

highway

actually reduced highway ex¬
pense.
Not only does the use of
road
building and maintenance
machinery reduce labor costs, but
-

the

terest
ment

can

cheaply,

road

your

borrow

in¬

depart¬

money

very

i

Readers
school

low municipal

very

rates,

know

costs.

up

our

feelings

my

The

fact

parents have turned

bringing

is

our

children

on

that

we

parents

football

school

amusements,
pay the cost.

not

net

$6 million

new

we

blame

the

of

chased.

output

Beware

are

bands,
other
should

Taxpayers
"city fa¬

Debt

still low, most cities have

debt; moreover, the

debts

of

our

sum

of

per¬

citizens,

through installment purchases
otherwise, have increased to
stupendous

-

-

rated
the

steam

98%

of

its

and
the

$25,000,000,000.




principal

other

in

(the old issue is being

re¬

capacity of 60,000 kw. went into

beginning of 1952, and in that
13% hydro, and 27%

year

generation,

requirements

and

will

area

its

our manu¬

production indus¬
mechanized,
effort

an

keep

to

picture,

compelled to

were

substantial

a

of

amount

and

And

an¬

no

of

city

one

New

—

chinery

and

not

permit

to go

me

This

equipment.

of

necessity produced a greater need
for external financing.
With this
change in halance sheet ratios,
these companies were not in a
position to borrow their require¬
ments from the commercial banks.

Commercial
had

which
in

of

banks,

follow

to

credit

stand¬

the

observe

to

considered

are

necessity,

traditional

ratios

important

so

particularly

extension,

the ratio of current assets to

liabilities.

rent

As

cur¬

result

a

of

However, let me give greater productivity, these com¬
thumb-nail sketch.
panies, who had further mechan¬
Factor
was
prominent in ized their plants, did develop an
commercial

as

was

circles

as

in

increase

their

of

one

current

the Seventeenth Century,
essentially what we now

assets, namely: their accounts re¬

"commission

had

a

The

As

more

in

ards—had
will

a

and

28%-32%.

power

textiles

doubt, is that
physically concentrated

are

one

of volume in

field,

industries.

reason,

English

6

-

Herbert R. Silverman

con¬

affiliated

its

com¬

traces

their working capital in new ma¬

are

are

early

merchant."

ceivable.
never

Up to that time, banks
regarded trade accounts

Hudson

Bay Trading Com¬ receivable as being proper col¬
chartered by Charles II of lateral security for a loan, in spite
England in 1670, and still going of the experience of old-line fac¬
strong today,
factored
the
ac¬
tors.
pany,

counts of manufacturers and deal¬

in the

ers

Roy

fur and

skin

trade.

Foulke, Vice-President
of Dun & Bradstreet, in his "The
Story of the Factor," a booklet
published early this year, com¬
ments

the

Pilgrims

their

this

to

settlement

1620,

country

and

at

Plymouth in
financed
by Thomas

was

Weston
of

the fact that the trip of

on

and

Associates,

Factors,

London.

the

Factor

evolved

supplanted

into

and

the special¬
ized financing and credit functions
were

the

of

modern

by

Factor.

The

com-

*From

an
address
by Mr. Silverman
"Checkmates, Inc.," an associa¬
of
bank
officers, New York City,

before
tion

June

24,

the

meet

organized
the

1905 for

in

of making

by the pledge

a

was

company

Chicago

in

the

for

assistance,

finance

purpose

cured

demand

financial

commercial

loans

se¬

of accounts

receivable.

However,
this
new
agency met with resist¬

lending
ance

from

They

prospective borrowers.

having

hesitant

most

were

debtors

trade

about

notified

of

the

Eventually, the selling activities
of

To

necessary

A.

pur¬

In

generate

only

they

Industry

finance

with the fast-changing eco¬

invest

as

centrated up to 90%
one

checking

country

and

companies
nomic

be

factors

this

became

pace

concerned

71/2

1955, with the operation of the 25,000 kw. Neversink
Hydroelectric Plant now awaiting
tpst operation, and of the second
60,000 kw. unit at Danskammer, it is estimated that the
company

will

may

8

assignment of their accounts,
even
though that practice had

been

reluctant

cept

textile

in¬

They were
admit that they had

to

the

in

the

many years.

resort to this

to

method

new

textile

(ex¬

industry)

of

financing because they could
obtain

1953.

in

common

dustry for

customary

not

bank credit,

as

purchase

2%.

In 1952 the cost of steam
generated power per kwh. was 4.3
mills compared with 1.27c for contract
power purchased; however,
the cost of the latter was
sharply higher than the 6.8 mills paid in
the previous year under the
prior more favorable contract.

The company is
earning an estimated 5.8% on its electric rate
base this year and
expects to earn about 6% during 1954-56. But
the gas business has not contributed
much to profits.
In 1951 the
company earned only about 2.3% on its gas rate
base; with receipt
of the first natural
gas the picture improved

slightly.

Nearly

gain appears likely in 1954. The
company recently obtained
increase in natural gas rates to offset

though municipal interest

too much
sonal

of

about

was

son

The

The company plans sometime this Fall to issue

unit with

rea¬

you

company formerly bought much of its electric power,
generating almost all the balance in its hydro plants. Thus in 1951
88% was purchased (mostly from its
neighbors, Con. Edison and
Niagara Mohawk), 11% was hydro-generated, and
only a little
over
1% represented steam generation. Construction
of" the effi¬
cient new Danskammer Point steam station has
altered the pic¬
The first

one

9

The

ture.

Per¬

haps

in

tries

the

that insofar

to¬

merchandise.

of

facturing

other

of

country.

call

convertible debentures

in

8

deemed) and about 160,000 shares of common stock.
No more
equity financing is likely for some time; tentative plans call for
sale of $8.5 million
mortgage bonds in 1954 and $3 million pre¬
ferred stock in 1955, with occasional interim
bank borrowing.

on

the

rate

base

will

be

earned

in

1953

the

posed by the pipeline.

and

some

higher cost of

further
a

gas

Old-Line

return)

Est. Return

s

Electric

on

Rate Base
Gas

1953

5.8%

2.9%

1954

6.0

3.75

1955

6.0

3.75

1956

6.0

3.75

as

for

course

Commercial Finance Company

failure

of

(2)

Notifies

ability to pay.
customer of pur¬

collects

and

(3)

Posts

a

prepares

ers'

(4)

ledger;
often
and mails custom¬

receivables

before

other

(5)

Often

works

closely

Earnings

the factored company in the

$0.84

choice of selling agents and
the

1.07

determination

of

(6)

Occasionally
"house"

indicate
in

on

or

(4)

storage

and

of

not

a

summary
account;

to

not

prepare

invoices.

ceivables

are
practically al¬
secured by the tangible

collateral.

(5)

Generally
associated

space

display

control

does

receivable

Similar financing service ex¬
cept
that
loans
other
than
advances against pledged re¬
ways

in

the factor's premises for

the

accounts

day-to-day changes
pledged receivables;

total

does

sell¬

provides

facilities

instances,

detailed
but only

receivable

ing policy.

l.C-3

The management states that it is
the purpose and
expectation
of the
company that these rates of return will be realized and
that with such
earnings consideration will be given at the end of
1954 to a moderate
increase in the dividend.

ledger

with

Estimated Share

Year-end

of

ing institution.

(3) In some
keep
a

makes

collateral.

pledge

for finance company and for¬
warded by borrower to lend¬

ma¬

additional
loans to factored companies
on
their
own
paper
and
against
merchandise
and
turity;

of

as

no¬

collections
are
made by borrower as trustee

accounts

invoices.

security

pledged

loan.

a

receivable;

Advances the purchase price
of

follows:

1.03

tified

receivable

5%

for

(2) Generally customer is not

directly in his

detailed

a

title in receivables

name.

own

Generally acquires
collateral

chase of accounts receivable

Est. No. Shs. at

2.261,000
2,261,000
2,431,000
2,594,000

(1)

the

customer's

im¬

Central Hudson G. & E. has been
selling recently on the New
Exchange around 11%, and is currently paying 70c to
yield about 6%. The current dividend reflects a
payout of 77% of
the 91c earned in the 12 months
ended June 30. The
management
has made an estimated
projection of share earnings (computed on
estimated rate bases, at assumed rates of

Factor

(1) Purchases accounts receiv¬
able
outright without re¬

York Stock

I

rates

-

depreciation, reinvested earnings

salvage.

tions

credit

origin back to 1905.

institu¬

parts

of

commercial

pany

finan¬

cial

I;

financing the producer and

The

of

would like.

the

and

these

service

The Commercial Finance

the

operations

War

of

7

to

thers" for this additional
expense.

Even

-

-

10

about

World

day, the term "factoring" is most
often used to refer to a special¬

distributor

6%

8%

-

-

lack

before

decade

ized

deeply into the historical de¬
velopment of Factors and Com¬
mercial Finance Companies as I

over

and

games,

Says

plete change-over occurred in the

and of

as

The company recently estimated its construction
expenditures
four years 1953-56 at about
$32 million, of which about
one-third would be provided
by
for

and

information

Time

9

-

3%

school

willingly
should

0.68

the

at

10y2

-

of

should be ashamed of
but if we want this

ourselves;
luxury, including
school

13

work

school
teachers, television, and
baby sitters. This is all wrong and
we

0.68

maintain it in the general
range

60%

Schools

expenses, while some cities which
have efficient city
managers have

with

1

0.49

credit

operations
of
Commercial Finance

York.

11%

-

1951

regular operation

Highways
The

13

—

The company's
ratio at the end of 1952 approximated
30% and it is the indicated intention over the next few
years to

factor.
Government and the

reimburse

urer

—

equity

Problem

tures.

—

$0.65

v

In states where the welfare
rolls
are public, the NET cost
of honest

State

______

bank

as

the

surprised

they

Approx. Price Range

$0.85

1950

productivity, but many are
perhaps loafing at their jobs. They
could
not
possibly get work in
any factory.
Would you hire

Paid

$20,700,000

1949

their

Earned

1952

in¬

Federal

compared

as

-Common Stock RecordRevenues

correspondingly
with wages. Not
only have many
"town employees" not increased

The

in

past decade.

Year

almost

them?

gas

Among the company's larger industrial cus¬
tomers are North American Cement, International Business Ma¬
chines, Alpha Portland Cement, Schatz Manufacturing, U. S. Hoff¬
man Machinery, New York
Trap Rock, Mastic Pile Corp., DeLaval
Separator and duPont.

the

has

16%

commercial,

Niagara Mohawk, which makes for stability of earn¬
indicated in the accompanying table covering operations

the

It is not fair to compare
these wages with specific
factory
creased

24%

Industrial proportion of total output is quite low

only fair.
wages

electric and

electric revenues were 42% residential,
23% industrial and 11% miscellaneous.

Wages of city and town workers
have

disposed of in 1945.

1952;

lation. Without increasing the rate
of

was

be

an

perhaps not noted for its growth, neverthe¬
less the company's revenues have more than doubled during the
postwar period, increasing from $10 million in 1945 to around $21

But

necessary

block of Central Hudson's stock but this

you,

about

But you would

medium-sized

Hence, the "city
raising local taxes.

are

Corp.

Central Hudson Gas & Electric Corporation is

is both demanded and wasted than

fathers"

finance companies.

are

Com panies.

Central Hudson Gas & Electric

per¬

of

Factors

e s

eJ^'tH-

p s

citvi
your

of

cost

s u

and

in the country's largest city,

men,
know

week.
The

describes the joint and

concern

cial finance
companies.

own

these this

all

of factors

affairs

or

Let
cuss

financing

separate functions

cooperative rather than competitive to banks,
and lists principal distinctions between factors and commer¬

troubles—that

is,

Executive of large
their services

local

own

July 16, 1953

(6)

such

This

is

not

with

so

closely

the borrower

capacities.

service

is

not

rendered

'

merchandise

and

mainten¬

by

the

"

ance

of

selling office.

company.

commercial

finance

Volume 178

Number 5238

The Commercial and Financial Chronicle

...

admission examination by the finance com¬
a pany's staff of trained examiners,
A
none-too-strong financial position before it takes on an account.
which might disturb their custom¬ typical work sheet of these exam¬
er relations, upset price, and bring
iners
contains
many
different
felt that such

they

tantamount

was

other

(213)

The detailed analysis of the ap¬

in

plicant's business and the decision

in

an

to

advertising

competitive

disadvantages.

Since notice to the debtor is not

a

schedules
tive

and

exhibits;

statements

of

of

whether

is

only

in

not

first

the

it

take

to

stage

Having
next

decided

to

third.

a

the •that

of

point

to

bear

in

mind

the

step is the implementation of

requisite

in

counts

receivable

cation

to ' the

without

debtors.

notifi¬

this

By

procedure, the whole arrangement
kept

was

Finance

the

tween

the

confidential

a

The

ments;

Company

and

and

plan

of

accounts

that

under

relatively slow, and, un¬
1920, it was conducted almost
entirely by local companies of
medium size which operated in a
was

til

limited

an

many

business.

financing

did

Bankers

area.

executive

salaries;

anal¬

an

ysis of cash receipts and disburse¬

be¬

development

of

changes in fixed assets;

one

borrower.

receivable

review

ness

other

of

inventory;

details

of

the

The type of information

gathered,
the

analysis

nature

of

course,

of the

varies

with

particular busi-

under consideration.

advances
be

must

lems.

laws

and

well.

happens,
located

with

the

When,

one

state

as

the

often

is

business

Henry
sociated

is

now

Baker

New

&

C.

receivable

accounts

notification

curity for

basis

tions.

As

pleted

in

such

matter

a

until

not

York

at

Treves

40

Wall

the

1929

the

crash

it

was

de¬

New
Mr. Treves is partner

City.

floor broker.

Frank JL Wolfe

Co.. Inc.,

formerly

as¬

Bros.

&

with

Amott,

Co.,

150 Broadway,

Frank
ment

J.

Wolfe, former invest¬

broker, passed away July 4

at the age

of 91.

Prior to his

tirement

30

years

member

of

Greer,

ago

& Wolfe.

City.

mmm
'

capital
of
many businesses that this type of
financing assumed sizable propor¬
tions

and

working

has

it

and

I

have

points

leaps

that date.

prepared

out

the

between

commercial finance

which

table

a

of

some

distinctions/

by

grown

bounds since

principal

factors

and

companies:

Among the uninformed there is

feeling* that

a

mercial

factors

finance

and

com¬

companies

are

competing actively with banks in
providing
credit
and
working
capital funds. This impression is

w-vXy/.

v/

,

erroneous.

,

'

%vf ^

4

While

it

is true

sometimes
ceivable

lend

will

accounts

on

when

:>

that banks

old

an

*

re¬

borrower

:TApJj

finds himself unable to take up his
loan

unsecured

well

as

I,

as

maturity,

on

know that

you,

they

do

this rather reluctantly.
Banks
in the

To

engaged

are

principally

making of unsecured loans.

qualify for

a

that

an

unsecured

loan

convince

the

must

company

bank

justifies such

a

position

ance

while

.Ito

they

ratios,

attach

do

attach

not

sition

banks.

ers

the

do

as

are

the

The

are

many

'.

*

%
V

>?
/,
V

llfw

vv
/<

-

"

*

'-!

fi¬

which,

instances

commercial

companies will not extend
to

P"">

unsecured lend¬

are

But there

ers.

where

'ft '//ft $,

secured lend¬

in contrast to the banks

by. and large,

f

as

to the ratio po¬

companies

'A//*,,/ ">K

the other
import¬

much importance

nance

'

loan.

Finance companies, on

hand,

/*/ A*

y/tf/'MX//};' yftV/y

;

financial

its

finance
a

loan

Cities Service Geologist Maurice Kennedy, in West Texas

regardless of the
security advanced. If upon anal¬
a

company,

ysis

they

find

be

used

cannot

borrower
loan.

that their funds
profitably by the

*

finance

companies,

analysis take into consid¬
the busi¬

eration many aspects of

among

ness,

which the following

be mentioned:

may

(1) What has caused the work¬

ing capital deficiency?
(2) Does management realize its
if any, and are these
mistakes correctible by the pres¬
mistaken,

ent

management?

(3)

What

are

business: (a) Is its
product a continuing one in its
acceptance by the buying public?
(b) Can its selling program be
made.more profitable?
;
(4)
Can
commercial
finance
'company aid be of help:
(a) Is
there a sufficient gross profit to
warrant finance company charges?
pects

of

the

-(b) Will finance company help be
sufficient
both
as
to, time and

all

answered

r

these
in

questions can be
the affirmative, the

commercial finance company

where her huge "under¬

These are not only difficult to read, they are often downright
misleading. It's a gigantic treasure hunt— made even more
difficult by false clues!

Every day thousands on thousands of motorists drive into
Cities Service stations and say, "Fill 'er up!"

Few, if

any,

give
men

casual command
These

men are

i

thought to the adventurous, risk-taking
who devote their lives to making that
a

possible.
trained in the sciences of geology and

seismology
for the days of by-guess-and-by-gosh oil hunting
are gone forever. Their record of "discovery wells" is high,
but they dare not rest on their laurels. Americans have an
insatiable thirst for oil, and the good things oil brings them.
...

That's why, as you read these words, a Cities Service
exploratory crew is tramping ovpr Canadian tundra ...
wading through Louisiana marsnes ... breathing the dust
southwestern deserts. Thanks to them, you can say
^

"Fill 'er

amount?
If

Nature, of course, gives hints as to

ground hoards of oil may be stashed away... rock outcrops
may provide, the clue to sub-surface structures and reservoirs.

Cities Service

the future pros¬

like to know! It would certainly

simpler if nature posted signs: "Gas and
Oil 10,000 Feet Below."

make his life

.

Commercial
in their

^vouldn't this oil man

they will not make the

up!", confident that the answer will be a

"Yes, SIR!"—instead of "Sorry,
there is, there ain't no more."

brisk

Mister. That's all

will

into the proposi¬
tion and probably extend its aid.
In making the necessary anal¬
then go further

ysis special techniques are em¬
ployed.
Probably the most im¬
portant of these is the thorough




with,

Ackerman and Company. Mr.
Jaffee is active as an individual

se¬

had

Co.

in

transac¬

of fact,

&

Street,

non¬

a

collateral

as

form

loan and would have

a

participation

no

on

Sutro

associated

York

not

Morris,

with

look with favor at the assignment
of

will

offices

Amott, Baker & Co.

Federal

the finance company

in

1

Henry C. Morris With

prece¬

Difficult legal prob¬

cani!: arise,

Wilton L.

There

legal

all 48 states and

dents in
as

familiarity

a

pertinent

law

concerned.

are

Treves and

Jaffee, member of the New York
techniques Stock Exchange, effective August

states

many

NYSE Firm in NX
Peter G.

out, comprise the highly special¬
ized techniques of the commercial

to working capital; comparative the program. The integrity of the finance
companies —
the validity of an assignment of statement changes of profit and
collateral
(receivables) must be which have been many years in
accounts
receivable, that objec¬ loss; schedules showing the aging constantly kept in mind and re¬ the building—and which would be
tion was overcome by the formu¬ of
accounts
receivable
and
the viewed almost
daily. For example, difficult to reproduce today, by
lation of a financing plan under
aging
of
accounts
payable;.-. an the filing of a Federal tax lien to¬ any
institution
starting
from
which advances were made upon
analysis of the reserves set up for day would mean worthless collat¬ scratch.
the security of assignments of ac¬ bad
debts; a review of returns; a eral tomorrow insofar as future
legal

To Form Treves & Cc. !

is

the

procedures, and the ex¬
perienced personnel to carry them

in,

go

another, and the account-debtor
The

on

process.

compara¬

changes

or

If

CITIES

@ SERVICE

Quality Petroleum Producti

of

re¬

he was

Crane,

a

Webb

18

The Commercial and Financial Chronicle...

(214)

Jack Germain Joins

Connecticut Brevities
has been reached

An agreement

Corporation,

Plax

between

a

and

70%

preferred

the

of

Pefrofeum Industries

out¬

John

standing.
*

owned subsidiary of Emand
Owens-Illinois
Glass
Company,

*

*

Company has agreed to acquire
providing that the former will sell substantially all of the business
assets
of
Powdered
Metal
to Owens for $8,000,000 an amount and
of
common
stock
equal to the Products Corp. of America in ex¬
number of shares presently owned change for 12,000 shares of com¬

specific approval of the sale
and a finding that the anti-trust

option to purchase all of the stock
of Chicago Electric Manufacturing
Co. for $900,000. Chicago Electric
will be operated as a subsidiary

its

under

tinue

available

sale will
Plax meet

help

to

manage¬

the

of

Proceeds

ment.
be

present

growing demands for its plas¬
tic products.
the

*

*

•f

previously passed by the General
Assembly, increased the author¬
ized capital from $20,000,000 to
$30,000,000
and
broadened
the
field of operations to enable the
company
to underwrite casualty
well

as

as

the

by-laws

were

of

charter.

the

Sales

bentures.

tric

the

for

1953

Corporation has

recently borrowed $3,000,000 from
Prudential
Proceeds

Insurance

Plastic

Wire &

authorize

to

up to

stockholders

Cable Corporation

the

directors

sell

to

10,000 shares of the unissued
stock

common

to

employee^, not

including principal officers
Stock

rectors.

the

of

market

will

price

be

offered

the

at

di¬

or

time

Atlanta

subscription, except that
ployees are permitted to

if

em¬

pay

with

to

instalments the price shall not

ex¬

period not to exceed

It

is

sold

expected

the

one

stock

year.

will

of 24,000 square

drawing

other

and

equipment.

Sales

production

for

the

were

stockholders,

nation

quickly

the

Bearings

gaged

in the production
and

oil

and

developing
had

%

Corporation

has

Manufacturing Co. of Chelmsford,
50%

and

oil

stock

of

net

and

re¬

liquids

of

-eserves

natural gas were esti¬

mated at 78,801,603

),970,000
ae

barrels

applicable

MCF, of which
estimated

are

the

to

in

the

oil

reserved

California

company

to

and

owns

are

Its
are

Texas,

non-pro¬

from

B-L

and

Associ¬

properties

in

California

stock

common

Stock

pay¬

1953,

the

showed

sales

the

New

of

oil

for

company

gross

and

gas

common

representing

Atlanta

in

Van

banker's office has

a

constructed

been

mercials

will

the

and

com¬

the edu¬
cational theme
of the series by
using charts and slides to explain
out

carry

various bank services.

The

of

parts

The

Tennessee.

Trust

Company is joined in the sponsor¬

show

the

of

banks:

by

First

The

Fourth

National

affiliated

its

National

& Trust Company of

Bank

Augusta; The

Bank

Colum¬

of

common

and City Bank

CONNECTICUT

&

To Be

Sprague & Nammack

Jerome

liam

J.

W.

Nammack

of the New York Stock
on

Wil¬

and

Nammack, both members

July

17

will

be

Exchange,

admitted

to

partnership in the Exchange firm
of Raymond Sprague & Co., 39
Broadway,! New
name

&

Nammack
mack

York

and

Jerome

Nammack.

and

William

partners

are

City,

will be changed to

J.

in

Nam¬

&

West

Nammack.

l

Opens

Jacques C. Ullman is engaging

in

a

securities

business

from

of¬

fices at 50 East 42nd Street, New
York City.

would

BRAINARD, JUDD & CO.
75 Pearl Street

HARTFORD, CONN.
New York

—

R Ector 2-9377

Hartford 7-2669

TeleiypeNH 194

estimated

or

over-all

schedule,

from

Mr.

the

in

im¬
com¬

of member firms

revenues

result

odd-

an

the

proposed

Funston

in

stated

1

time, however—in
keeping with the Exchange's pol¬
icy to encourage the small inves¬
tor

to

same

own

share

a

—commissions
transactions
less

involving

would

changed.
actions

industry

count

$1,000

to

un¬

be

new

lowered

or

innovation

apply when

is

dis¬

a

round-lot

a

bought and sold with¬

side

with

of

being

reduced

by

50%

$2.50 then added in the

round-lots

and

$1.50

case,

odd-

on

t, ■ ■

■

innovation.
of

For

transaction

a

each

100

totaling

1,000 shares executed for
tomer on

there

day

one

would

(The

be

than

one cus¬

20%

when

July

five

commission

approves

mitted

to

in

NEW YORK PHONE
HAnover 2-7922

TELETYPE

HF

197

Thurs¬
the

the

proposed
amendment, it must then be sub¬
the

balloting.

membership

Members

for

have

two

weeks
If

to approve or disapprove.
majority of the membership

a

has not voted within
time

for

that period,

balloting will auto¬

be

extended

another

two weeks.
The

rates

proposed

would

be¬

effective, if approved by the
membership, on Tuesday, Sept. 1.

come

A
special committee of nine
Exchange members, headed by
David Scott Foster, studied the
question
of
commissions
from

June.

1952,

until

it

reoorted

to

the Board in

April. Copies of the
Committee's majority report,
as
well as the minority recommenda¬
tions,

sent to the member¬
Thereafter, the Board re¬

were

ceived the advice and
of

broad

a

suggestions

cross-section

commission

posed

the

of

membership and evolved the

nro-

schedule.

rate

Doremus in Boston
William

J.

Sheehan

appointed

charges

dollar

and

on,

shares.)"

commission

All

be

100

If

Board

the purchase of 1,500 shares
$50 a share would be $40 for

at

23.

discount.

would

charge

the

of

Doremus

&

has

been

Vice-President
Boston

Co.,

53

in

office

of

State

Street,
maximum commission being $50 according to an announcement by
and the minimum $6 on any single W. H. Long, Jr., Chairman of the
round-lot or any
single odd-lot Board of this national advertising
and public relations agency.
Mr.
purchase
or
sale.
Where
the
even

of

amount
round

or

than

the

in

same

would

a

the

be

$2

price of all stocks

the Exchange, Mr. Fun¬

said,

is

The

share.

about

now

$40

a

commission for buy¬

selling 100 shares of a listed
stock selling at 40 would rise un¬
der the new rate to $35 from $30

ing

or

from 0.75% of the amount of

involved to 0.875%.

into

ing

Charles

W.

Formerly
in

the

Doremus

copy

Boston, Mr. Sheehan

was

ten

years Director of Public
Relations at Eastern Gas and Fuel

Associates,
work

as

Boston

resigning
business

a

and

New

also

affiliated

Lee,

a

in

1947

to

consultant

in

York.

He

was

with
Selvage &
leading New York and
Washington public relations con¬

sulting
been

firm.
in

He

1951

returned

and

has

to

since

active

on
both Boston and
New York accounts of the
agency.

effect, "the cost of do¬

securities commission busi¬

a

succeeds

Doremus

November, 1947, when the
existing commission rate schedule
went

Sheehan

Morse, who has resigned.
chief

round-lot rate.

average
on

ston

the

for

The

listed

involved

money

odd-lot is

commission

odd-lot
less

the

amounts;

ness

has

the

Stock

risen

more

than

Exchange

30%,"

Mutual Income Foundation

President

DETROIT, Mich. — Mutual In¬
pointed out. He added that the come
Foundation, Inc. has been
proposed
increase
should
give formed with offices in the Penob¬
member firms

an

incentive to con¬

scot

Building to engage in the

with

curities

business.

professional services
thev have a right to expect.
"That brokerage firms find it

Murray

D.

tinue

to

type

furnish

investors

of

impossible to keep out of the red
while

trying

to

penses

with

securities commis¬

a

1953

meet

Ralph

L.

Culbreth,

income based

should not surprise

he

said.

"Between

and

P. L.

anyone,"

Lincoln,

Bouma

ured

by

the

Conference

>

National

Board

in

Industrial
terms

of

a

and

se¬
are

President,
Harry

Vice-Presidents,

W.,
Dr.

Thornbury.
.

1

■

i

James F. Byrne

November,

1947, and Ma v. 1953. the purchas¬

Officers

?obert
A. andRennie,
Secretaryreasurer,
J. Edwin
Keltner

1947 stand¬

sion
ards

on

ex¬

ing power of the dollar—as meas¬
BELL

on

day,

order,

or on one
a

proposed

shares

more

the Exchange's

Governors will consider

■

HARTFORD PHONE

7-5291

amendment to

Constitution, which the Board of

ship.
A volume discount is the second

amount

The proposed new rates calls for
an

matically

or

or

in 15 days—the commission on the

sell

sale

or

to 1.25%.
$150, the com¬
mission would be $6 or 0.8% of
the money involved.

$1,000

less the

or

would

odd-lot is

or

shares at

the

lowered

be

first

100

1.6%, and
$80, the $10 com¬

On five

round-lot

unchanged.
The

For

commission

represent

would

On most odd-lot trans¬

of

also

rates

in

all

on

would

mission

transaction

a

his announcement.

the

New Haven
,

in

shares

Since

CO.

Exchange

100

last

Building.

Members New York Stock

tuotioo

provement of about 15%
mission

money

CHAS. W. SCRANTON

Primary Markets in

An

Keith

of

involved

—whether
lot.

G.

the

on

money

—or

Roy Bible Opens

be

Trust Company of Savannah.

J. C. Ullman
ROANOKE, Va.—Roy H. Bible,
Sr.
is
engaging in a securities

con-

100 shares up to and includ¬
ing 1,000; only $32 for each of the

SECURITIES




sion

based

the

odd-lot purchase

an

for 10 shares at

amount

pur¬

be

ions,

each

account.

$30,

two

First National Bank of Rome, and
The
Liberty National
Bank
&

the

at

innovat

say,

the

involved.

money

include

The First National Bank &
Trust
Company in Macon; The

Sprague

$4,$1,-

new

to

the

on

shares priced

each,
the commission would be $6, or
1.2% of the money involved; for
20 shares at $25, the $8 commis¬

bus;

Liller, Neal & Battle is
advertising agency handling

commission

amount

On

which

n u e

10(1

of five shares priced at $100

lots.

CONNECTICUT

SECURITIES

The

will be seen1 over
most of the State of Georgia and

ing

at

rates.

rates,

worth

26.78%."

to 1.0%; at $40, it
0.875%; at $50, 0.8%;
$80, 0.537%, and at $100, 0.45%.

minimum

commission

program

income
of

picture films of

offices

the "March of Time"
announcer, and Don Elliott, local
station announcer. A complete set

the firm

of

combi¬

a

voices of Westbrook

the

March

ended

be

Voorhees,

The

Exchange.
of

months

seven

on

pro¬

The commercial
will

two

after

the

of

and

business from offices in the State

purchased

the

gas

1953, the

014,034, and net income
269,549, equal to $1.14 a
been share.
tf-

shares of preferred from Hoffman

The

oil

estimated

crude

sale

otaling 52,495,518 barrels and net

31,

by Universal American
Corporation through purchase of
90,000 shares of common and 7,000

constitutes

and

exploring

As of March 1,

of

serves

in

and

gas

Norma-IIoffman

acquired

England.

Co., successor to
Co., is primarily en¬

of

from
sfc

of

Oil

Time"

of

motion

of

has never
and select¬

consideration

bank's

and

closed.

books

the

lqvel.
*

j This offering
oversubscribed and

would
would

At

Company

available.

grams

was

Earnings

and earnings
close to the previous year's

Control

cer¬

in

TV

-

p.m.

"March

the

tain

York

1952 fiscal year,

Trust

announcements

the

through March 31 were
$4,721,065, about half.the total for

10:30

at

WSB

television before

used

ed

on

seen

standing and is being sold by

Application will be made to list

six

months

the

the

company's interest in these prop¬
erties comprises 2,615 acres and
57% net producing oil wells.

new

building
feet, to house wire

in

be

The

be

com¬

Texas, subject to various oil
ments
totaling $16,535,660.

Company on a fiveloan. Proceeds are being used

television every Sun¬

on

careful

gas

necticut Trust

a

will

the

ates, Inc., two-thirds of the work¬
ing interest in various oil and

period of several years.
Recently the cpmpany borrowed
$350,000 from The Hartford-Con¬

in connection with

full

indebtedness

bank

ourchased

be

over a

year

in

to¬

ducing acreage in California, Col¬
orado, Montana, Oklahoma, Texas,
Wyoming and Louisiana. In Feb¬
ruary of this year, the company

ceed the market value at the time

30-minute

a

night

day

$3,333,300. The balance
of 204,733 shares is currently out¬

and

of issue. Any instalment
payments
will be made quarterly and over
a

other funds,

prepay

located

in

—

Time,"

the "March of

the company and the proceeds

oayments and 3,624,000 MCF
applicable to the oil payments.
orincipal producing properties

at

of

The Trust
Company of Georgia and its five
affiliated
banks
are
sponsoring
Ga.

ATLANTA,

will

company

of

Sponsors TV Program

Group Sells

the

23,

would

starting July 19. The
program, one of the outstanding
educational series in the nation,

#

On July 20 there will be a spe¬

meeting

Georgia

program

reserves.

cial

Trust Co. of

July 9 offered 339,733 shares
Monterey
Oil
Co.
common
stock
(par $1) at $24 per share.
Of the total shares offered, 135,000
shares represent new financing by

for

sion.
I

& Co. and
Mackie, Inc.

29%,

up

July

by

$10 each would amount to 1.5%

proposed
schedule

dollar

sale of 100

or

shares

ter, J. Arthur Warner
Singer, Beane &

the

of

of

P. Germain

at

Thurs¬

on

1939

Under the proposed new sched¬

for considera¬

new

John

g

on
July 23,
Sept. 1.

on

cents—declined

tion

a

Street,

and

scheduled

day,

has

active in

on

Monterey
Jergins Oil

1,
1965 and bearing interest at 4%%,
will be used to repay a loan of
$1,400,000 and to finance expan¬
%

23

Dith»H.rf!'
Rose & Tros-

$159,800
earlier.

a year

Mr.

of

the

Company.

of the note, due July

&

of

Monterey Oil Stock

pany's

sH

Products

Casco

Elec¬

months

amount of

No capital changes are
planned at the present time.
#

Chicago

five

$2,020,000,

Lehman

used

stock.

❖

has

for

past

Wall

convertible de¬

of

first

totaled

gether

The

present outstanding capitalization
consists of 1,000,000 shares of $10
par

$.939,000 of 5%%

Lehman Brothers and associates

changed to conform with the new

provisions

chase

been

purchase Silex sold privately

L

At the

fire insurance.

time

ule,

accepted

years

present. In connection with

The charter amendments,

charter.

same

for the

the

January,

of Governors of the
Exchange has

de¬

Germain

the

Funston, President of the

York

corporate

partment.

Silex Company has exercised its

by the membership

Stock
Exchange, on
July 10 announced that the Board

t i

the,

and

by-laws

the

in

Keith

New

■

against $32,100

a

changes

the

to be offered for members' consideration

and to be approved

City, in

Y.

relations

*

*

and the pretax profit was

special meeting on July 6,
stockholders of Aetna Insurance
Company
voted
to
approve
At'

*

Funston, President of the New York Stock Exchange,
new
schedule, already accepted by the Board of Gov¬

ernors,

tries, Inc., 745
Fifth Avenue,
N.

Proposes New Commission Rales

reveals

become

publication

mon

judgment entered in 1947 is not
applicable.
Announcement
has
been made
that Plax will con¬

has

Indus¬

eum

stock.

by Emhart, thereby dividing own¬
ership equality. Emhart hasapplied
to
the Federal Court at Toledo
for

Germain

Petrol-

with

Manufacturing

Yale and Towne

P.

Keith

associated

wholly

hart Manufacturing Company,

NYSE

Thursday, July 16, 1953

James F. Byrne, member of the
New York Stock
away

Exchange,

at the age of 71 of

ailment.

a

passed

heart

Number 5238... The Commercial and Financial Chronicle

Volume 178

will

No Dollar

Bank and Insurance Stocks

Shortage Abroad!

H.

This Week

will

In

addition

to

of

number

a

spectacular

mergers

providing

gains, the operating outlook
of the industry has improved materially and particularly during
the past year. This has helped to attract attention to the invest¬
ment position of these shares.
stockholders with substantial capital

Probably the most significant development in recent years has

Interest rates have been rising

been the change in interest rates.

ment bond market.

several

were

much

years

liabilities

The

are

dollar

and

to

total

world

company

or

Also, funds
have been shifted from low yielding government bonds into mort¬
gages or securities which provide a much higher rate of return.
developments have

companies to

enabled the

reverse

the long downward trend of net investment return for the first
time in over i20 years.
This is very significant from the stock¬
holders'

siderable.

other words, as

In

most of the premium income must

the underwriting contracts of the company,
since life insurance policies are written on a basis which makes

be invested to protect
and

to earn a certain rate of return, any increase over the
basic required rate is a favorable development from the stand¬

it necessary

point of operations and the earnings of stockholders.
Another

factor

the business.

As

of

considerable

the volume

of

in record

is the

insurance

in force

life

the assets of the companies expand.
insurance

importance

increases

American families are buying

Since

amounts.

growth of

life insurance in

when

1945

force amounted to about $150

billion, the volume increased to $276
by the end of the current period
should exceed $300 billion. In the first six months of 1953, $19 bil¬
lion of new insurance was purchased or 20% more than the $15.5
billion

the

at

billion

a

end

1952 and

increasing volume of business arises because of increasing

purchase life insurance, are now, because of changed economic
circumstances, purchasers of policies or through their employment,

participants in group policies.
The

depreciation in the purchasing power of the dollar has
also been an important factor in stimulating sales.
In order to
the total

maintain

purchasing
ciaries, it has frequently been

of an estate for the benefi¬
necessary to increase the amount of
power

to

When

the

this

panies and should continue to do so, is the steadily improving mor¬
tality rates. Medical advances have prolonged life expectancy and
this has- made the underwriting phase of the life insurance business
consistently profitable.
made

along

lines

these

Indications are further advances will be
so that underwriting operations should

favorable.

continue

dollars.

same
can

gold

has

grown

with

of

as

companies include

which have established markets the four leading

Life, Connecticut General, Lincoln National and Travelers.
group it is recognized that some have investments or do
business outside of the life field. Their primary interest, however,

abroad

War

IIf

reap

more,

that

prove

transactions

can

the

surpluses

agricultural

still

are

based

the

on

In

the

12

side

the

of

from

months

was on

known

1953,

payments bal-

ment of
a

.

the

.

whole

of

rest

.

.

.

83V2- 67Y2

Life

Aetna

Connecticut

General

National

Lincoln

—

Travelers

200

71V2

188

-15814

165

810

-720

725

2.09%
0.94
0.61
1.93

$1.50

1.80
1.00
14.00

191

-175

Yield

OUR

MID-YEAR

17

&

ANALYSIS

N. Y.

of

City

Bank Stocks

NATIONAL

BANK
of INDIA, LIMITED
Bankers

to

the

be sent

Head

Office:

26,

on

request

Branches

Burma,

Laird, Bissell & Meeds
Members New York
Members

American

i«0 BROADWAY,

Bell

Pakistan,

Ceylon,

Kpny^ Tanganyika,

ZanzirjfffT and Somali-

land

Protectorate.

Authorised

£4,562,500

Stock

Paid-up

£2,281,250

Exchange

NEW YORK 5, N. Y.

1-1248-49

Teletype—NY

Gibbs,

Bsshopsgate,

E. C. 2

Stock Exchange

Telephone: BArclay 7-3500

(L. A.

India,

in

Aden,

Uganda,

in

Uganda

Kenya Colony and
London,

Will

Government

Manager

Trading Dept.)

Specialists in Bank Stocks




Reserve

Capital
Capital

£3,675,000

Fund

The Bank conducts every

banking

and

description of

exchange

business.

Trusteeships and Executorships

the

as

could

■

world

have

without

The

such

averaging

of

described

months,

12

was

and

possess

foreign

dollar

supply within
period. In the final quarter,
the excess of foreign dollar receipts, excluding military aid, was
$753 million,
after interest and
amortization payments. Economic
aid
and
loans were
about
$501.

million.
This entire amount, there1
-

..

....

fore,

was

pocketed, in addition to

$252 million of

excess

other

which

sources

non-aid,

million

leads

goods

wjp

among

present

an

chasi

net

dollar

1952-June

accumulations

eign countries from
actions

with

approximated

the

$2.8

1953,

of

for-

current trans-

United

States

billion

and

,

,,

30,

.

and

reserve

cash

pur

Unite(

,

,

items

other

in

in¬

process

Government

direct

and

guaranteed

Obligations
Other

14,643,070.51

_

of

political

States;

and

subdivisions

bonds,

1,467,449.70

-

notes, and de¬

bentures

Loans

1,834,954.32

and

discounts

(in¬

cluding $517.71 overdrafts)
Banking
premises
owned,
None; furniture and fix¬
tures
Other

and

15,407,224.31

vaults

89,419.40

assets

170,656.33

TOTAL ASSETS

$45,096,457.09

LIABILITIES
Demand

deposits of individ¬

uals,

partnerships, .and

corporations
Time

$21,662,437.22

deposits of individuals,

partnerships,

and

corpo¬

United

States

rations

4,375,367.96

Deposits

of

Government

of

145,700.89

States

and

po¬

subdivisions

10,835,120.19

banking

of

insti¬

tutions

364,607.28

deposits
(certified
officers' checks, etc.)

and

4,347,761.45

DEPOSITS, $41,730,994.99
liabilities

TOTAL

246,536.42

LIABILITIES

(not

subordinated

obligations

shown

be¬

$41,977,531.41

low)

CAPITAL ACCOUNTS

$1,000,000.00

Capital

t

Surplus

fund

Undivided

1,000,000.00

to

$3,118,925.68

COUNTS

,

TOTAL

LIABILITIES AND

as

other

curren-

unstable

and

incon-

long

finance

$45,096,457.09

ACCOUNTS—

institution's

tThis

stock

common

capital

with

total

consists
value

par

of
of

$1,000,000.00.
MEMORANDA

being the only cur-

vertible, the pressure on the dol-

lar

AC¬

CAPITAL

TOTAL

ability of dollars.

are

1,118,925.68

profits

CAPITAL

cies

to

$11,483,682.52

States

obligations,

.

+

so

by
the

balances,

-

lrr?f^emei s
natjOPal policy
YC
respect to all countries
M0st countries would be totally

Hence,

of

TOTAL

*act uthat ln
countries dol*ar balances belong to govern™ents rat^r than individuals
Consequently they are essentia

from

the

pub¬

pursuant

collection

United

increment of value
ln the dollar is magnified by the

Aside

at

made

Banking Law

.

,

Y„
1953,

call

a

Banks

of

the

with

including

'

with

institutions;

banking

states
m1_.

balances

Other

trade

outside

United States will grow.

Its

the
use

also undertaken

possibly $3 billion.

Cash,

world

its

the

in

er

the dollai

of

added

above

and

over

rency
in the world which if
freely and fully convertible intc
SoId>
is the only major currency
ties indicate
no
change in the which is subject to no exchange
trends.
There appears no reason restrictions.' It- is the only unito
doubt
that
the
next official
versally acceptable medium oi
report will show that during the capital transfers.
months, April

provisions of

Other

ended,
but preliminary data as
informally viewed by the authori-

15

Superintendent

the

Deposits

it

to

imparts

be

OP

4, N.

June

on

accordance

the

countries.
In
state
of
confusec

the barter level without the avail-

Official figures are still lacking
for the April-June
quarter just

business

in

type of trans-

all

thig ^tribute

trad

&

will

CONDITION

of

litical

non-bor-

rowed.

OP

Broadway, New York

Deposits

which

one currency

finance every

action
■

accumu-

unable to finance any type ointernational transaction above

were

Exchange,

tc

us

problem,

our

non-

dollars from

and

fa¬

exchange is the desire

the

from

West

season,

stepped-up effort to

fails to disclose the rising trend

the

bila

using her dollars foi

purchase

|a^e douar

value

thus

record

government

pur-

$2.5

$330

reference

to

where.

a

balanced

the

using theii
elseThe driving force behind

douars

in

with

their transactions with the United

military,
COMPARISON

reported it

for

the

will

of

of

of 50

of

one

purchase of goods elsewhere
last

Nammack

name

close

cluding

]?orejgn countries are

there-

concluded

J.

the

Stock

lished

dras-

At
least
entirely

of

summation

n

Company

cloi-

is

forthcoming

be

o

ASSETS

the

The

The Depart-

Commerce

sentence which

the

\it

Underwriters Trust

i

she

fore, went into the unspent balance
of foreign countries.

u/

REPORT

announced

during

after interest and

The entire amount

c

firm,

York

North

dollars, with

balance

homing

pro-

of

flow

account

on

who

people
were

changed to S. W. West & Co.

the import of American cottor

on

and loans during the
period also amounted to $2.3

billion.

together with dividends and yields are shown on the above com¬
panies. Obviously the shares should be purchased where capital
appreciation on growth is the objective rather than for current

Dividend

has

grants

same

dollars

Nammack, 115 Broadway, New
York City, members of the New

first quarter of " this year
a
limited
quot?

the

jn

the debit

by $2.3 billion dollars. This
addition to foreign dollar ac-

count remained

of

Price

vorable

ance

net

has

American

ijon

once more

State of New York.

dollars

of

and

f.

those

are

William

the

chase of American goods. Another

closed

gap

to March 31,

1952,

the United States

so

Price Range

allocation

controls

acreage

sown,

and

States

prohibits

which

dollar

and

of tariffs ii

return

limited.

ex-

The

United

outside

the United

to

tically

export

dollars.

have

so-called

April 1,

the

Current

iars

the

grana-

sight

give-aways

Dollar Purchases Restricted
Everywhere

in

Effective July 17, following retirement of Jerome W. Nammack

dol-

quantities of exports;

mounting wave
addition to all these,

warehouses,

relief

.

d

embargoes

and

warphnn«pc*

W. West & Co.

is

hand

policy,

9

t

trade

have

we

new

assumption that foreign countries

1952.

the

allocations

and

taxes

country

below, the price range and current market

1953

quotas

problem

not

power

exchange

America

of

Diff

World

of

crop

against

buying

quicker than the eye, the general public still thinks in terms of
dollar exchange scarcity, and in
Washington many of the legislative proposals dealing
with the

The

since

of

that

less unprecedented thar

no

import

in interna-

even

States

income.

states
the

many hudreds of millions arising
from unrecorded payments.

grants and loa"s.

the tabulation

restlrictions

of seed

a

th

.T

no

Where

come

government regulations of prices

or

Aetna

In

we

Policy"

the

at

having

billion

sown

in

through

said

so-called

and

hibitions; import and exchange
taxes, multiple
exchange rates

an

In this

is in life insurance.

$40

jars

aid

large number of small companies in various sections of

the

or

Government

swe^P over the land,

out-

be

billion,

added

do

in

time

of

prospects

a

f0r

harvest

30,

up

June

the

they
serve only to swell unspent foreign. credits.
The

of

purchases

S.

restucted production

not help the situation when

ra-

U.

.

with

shadows
roDj .

time be used to buy Ame'rigoods. It is equally obvious
foreign aid and loans will

that

voiume.

While the

the
country doing business more or less on a regional basis. In addi¬
tion to only a limited amount of information being available on
these institutions, trading in the shares is very meager so that it
is difficult to obtain a position in these stocks. Among the shares
are

in

i.

P

.

cept

indeterminate amount of

$21.5

tional

amount

of

and

as

trade

American wheat bursts the

I

from

the

form

gold

into

uo

A

dollar exchange to
of $2.3 billion per

of

countries

this indicated total of

To

lifted

be

flow

salted" away
"reserve accounts,"

amortization payments on American debt.
United States economic

foregoing considerations make one enthusiastic about
for life insurance operations, the possibilities of
investing in this group of securities are definitely limited. Most
of the large companies in the field are, of course, mutual organiza¬
tions which eliminates them from investment consideration. There
the

year,

the

figures will show
that known foreign
holdings of
gold and dollars will have surpassed the highest point of previous years by1 as much as a billion

in

the benefit of life com¬

cannot

the

matter of calculated

pjies

of course explains fully
decisively why our export
trade
has
languished.
Dollars

the

year,

un-

Salted Away

ply of foreign

casting

made

the

to

This

monetary sup-

official

is

1948

and

ward

unprecedented

accounts

life insurance carried.
Another factor which has operated to

ac-

startling
pidity

To

population and the higher incomes enjoyed by the greater num¬
ber of family units.
Many people not formerly in a position to

Murchison

C. T.

Dr.

ago.

year

The

of

Dollars

dollar-bought

Because of the large volume of assets
invested in relation to capital funds, the leverage effect is con¬

in

of today.

as

for

on

a

ries,

quired. The
spendable

dollars

of view.

point

has

been

now

improved, funds have been invested at higher rates.

These

power.

power,

generally in

are

$21.7

in

of

of

That buying

their investments are, accordingly,
other fixed income securities. As yields haVe

are

billion

funds

precedented total of $21.5 billion,

res-

York

increasingly

devices

A "Calculated

or

the

New

foreign governments are thus diforeign verting dollars from the American
thereby raised from export market. American cotton

dollar

countries

$14.7

used

in

securities.

only

ing

obligations and

confined to bonds

Total

foreign buy-

1

drawn

trade awaited

toration

support prices from the govern¬
close to 50% higher than they

insurance

life

a

has

believed that the return of health
and
growth to its export trade

meaning that funds can be invested at

ago,

of

America

years

now

advantageous returns.

more

fixed

Rates

seven

be

As

A

For

the

since 1946 and particularly during the last two years or since
Federal Reserve withdrew fixed

„

'

converted

closed in 1952.

gap

irreducible

countries, and excess
amounts above such needs will be

Murchison, calling attention to peak reached in foreign
gold and dollar balances, holds these balances are adequate
for use in purchase of American
goods and to provide free
exchange for the trade of other nations. Says so-called dollar

increased greatly in recent years.

the

other

Dr.

of life insurance companies has

to

balances

clearance

American Cotton Manufacturers Institute

Insurance Stocks

—

Investment interest in stocks

kept

Dollar

By CLAUDIUS T. MURCHISON

JOHNSON

E.

be

minimum.

"Economic Advisor,

By

19

(215)

in the purchase of American goods

Assets
to

other

for

(a)

pledged or
assigned
liabilities
and

secure

Loans

are

after

I,

best

.William
the

160,596.52

-

D.
Pike, Secretary
institution,
hereby

above

my

deduction

of

reserves

of

re¬

shown

as

after

are

above-named

that

$8,816,708.54

-

above
of

34,981.58

Securities

above
of

shown

deduction

Of

serves

(bi

purposes.
as

statement

is

true

of the
certify
to the

knowledge and belief.
WILLIAM D.

PIKE.

Correct—Attest:
SUMNER

JEROME

JOSEPH B.

FORD

THRALLS

V. TAMNEY

Directors

20

The Commercial and Financial Chronicle...

'(216)

Thursday, July 16, 1953

Britain Wants No

More Dollar Aid
By PAUL EINZIG

Dr. Einzig contends that, despite
deterioration

Government
termined

to

order

to

of

balance

British

the

be

to

appears

not

American

on
in

the

of

situation,

payments

de¬

depend further

aid.

Says Britain,

play

a

active

more

part in international affairs, must
become independent of America.
LONDON, Eng.—The figures of
Sterling Area gold reserve for

the

June

caused

London.

disappointment

The

surplus

in

$46 mil

was

¬

lion, of which
$ 2 8

million

represent
U.

Aid, leaving
real

million.

This

was

1

expecta¬

o w

tions.

o

vis-

f

Corona¬

period
result

substantial surplus. Un¬

more

of

influence

the

divisions

during

o r s

the

would

der

seven great

the

American

tion

a

winning team of

hoped

spendings
i t

A

had

that

in

be-

It

been

Einzig

a

surplus of

$ 1 8

Dr. Paul

d

e

Defense

S.

the

disap¬

pointing June figures experts are
inclined to take a pessimistic view
about the gold
prospects during
the second half of this year.

believe

that

able

increase

to

further.

Britain

Indeed

gold

the

They
be

not

may

the

reserve

possibility of

slight decline during the com¬
ing months is envisaged.
This
appears to be justified

a

pessimism

British foreign
increased
considerably in May, and the ad¬
the

by

trend

trade.

of

Imports

is

balance

verse

ing trend of

have

wider.

which,

centuated,

growing

foreign

expected

to

it

that

The

ris¬

has become

wages

ac¬

with

together

competition, is
the diffi¬
culties of maintaining exports.
I^aradoxical as.this may sound,
seems

home

has

aggravate

trade

affected

recovery

adversely

British balance of payments.

at
GREAT LAKES

the

ing 1952 production declined and
remained

well

STEEL

CORPORATION—Located

this unit of National Steel is the

Dur¬

industrial

area.

Its complete

Detroit, Michigan,

at

biggest steel maker in that important

facilities, from blast furnaces and coke

ovens

a

through

wide range

and

to

finishing mills, enable Great Lakes Steel

of industries with

a

to

furnish

large volume and variety of standard

special steels, including the famous N-A-X High-Tensile steel.

its level for

under

1951, and unemployment increased
accordingly.

At

the

considerably.

Now

time

same

the balance of payments

improved

that

the

out¬

put has recovered to its 1951 level,
and

unemployment

declined

has

w^ :

correspondingly, the balance Of
payments is becoming less favor¬

<

able.
The
explanation
of
this
paradoxical situation is that most

of the increased output is absorbed

the

by
of

domestic
that

means

the

market,

increased

which
imports

materials required as a re¬
of the
business recovery is

raw

sult
not

accompanied by

ing

increase
there

more

ing

power

of

a

too

the

■

iVj.'j

,■

.Once

exports.

is

in

'

correspond¬

much

purchas¬

hands

of

con¬

sumers, and their inflated demand
affects both imports and the trend
of wages and costs.
In

its

current

the

issue

official

"Bulletin for

Industry," published
by the Treasury, strikes a pessi¬
mistic
This

about

note

is

indeed

the

prospects.

for

ex¬

aggerated optimism about the

ex¬

of

tent

the

necessary,

since

recovery

the

crisis of 1951 is largely responsible
for the excessive wages claims. -

WEIRTON STEEL

Notwithstanding the worsening
and prospects, the
government is believed to be de¬

termined

longer

on

Defense

end, it

Aid

which

has

been

au¬

will

dollar

aid.

nected

with

ill's

an

certain that the gov¬

seems

ernment

>*■

not
to
depend
any
American aid. Once the

thorized by Congress comes to
decline

This
Sir

any

attitude
Winston

determination

to

Continued

further
is

con¬

Church¬

insure
on

that

page




COMPANY—Here is the world's

manufacturer of tin

of the position

21

/

plate, with mills

at

largest independent

Weirton, West Virginia, and

Steubenvilie, Ohio. A pioneer in the electrolytic

process

of coating

steel, Weirton

operates

the world's largest and fastest electrolytic

plating lines. An extensive variety of other steel products is

manu¬

factured in plants that are among the,most modern in the industry.

Volume 178

Number 523&... The Commercial and Financial Chronicle

(217)

21

Continued from page 20
V

'

Britain Wants No

J

More Dollar Aid
Britain plays a more active
part in
international affairs than she has

played since 1945.
is necessary

To that end

independent of American aid.
dependence

ew

industries

require the tremendous

raw

material

greatly detrimental to her pres¬
tige and has gone a long way
toward undermining British na¬

reserves

tional character.

petal, the nation's steel companies must provide for the
jistapt future as well as today.

1945 to accept

There

realize

In

than 50 per cent

lerfectly coordinated

to

of

seven

great

ment

to

divisions

most

unit

DIVISION—A

of Great

Lakes

Steel, with plants at

Ecorse, Michigan, and Terrc Haute, Indiana. Originator and exclusive

produce highest quality products,

manufacturer of the famous Quonset

completely integrated, entirely independent, National is

jne of America's

and

should

able

to

States

have

unaided,

deal

on

an

with

equal

role

of the poor relation
by his wealthy cousin.
the Socialist Govern¬

However,

increase of
STRAN-STEEL

team

the

to

supported

since the end of World War II.

Ilere, then, is National Steel—a

United

in

the big dollar loan.

be

to

who

mistake

a

footing, instead of being reduced

the largest and most modern
National Steel will achieve an annual
tons—an

was

could

order

the

are among

the world. This
year,

lore

in

long-term program designed to keep its capacity
products in step with the nation. Its miners, ships,

Jteelmaking capacity of 6,000,000

people

many

it

worked out her salvation

a

[urnaces and mills

are

that

Britain

In building for tomorrow, National Steel has consistently
lnd its

Her

dollar aid has been

on

nd
operating facilities that are essential in steelmaking.
lor America to be amply assured of this indispensable

[allowed

it

for Britain to become

include

the building industry and

progressive steel producers.

buildings. Other principal products

Stran-Steel.Long-Span buildings, Stran-Steel nailable framing for

Stran-Steel flooring for trucks and truck trailers.

attached

more
importance
hasty creation of the Wel¬

the

fare

State

than

to

the

nation's,

prestige and self-respect.
cepted the loan in spite

It

ac¬

of

the?

strings attached to it, and later it
accepted Marshall Aid.

The result?

the

was

widespread adoption of a
complacent attitude.
It was felt,
that, no matter how much Britain
overspends,
to

sure

of

the

highly

United

to her

come

trouble.

This

sition

in

to

is

case

mentality

detrimental

effort to

States

rescue

was

national

a

consolidate Britain's po¬

instead

of

continuing

to

drift from crisis to crisis.
in

Even the change of government
1951
did not immediately af¬

fect this mentality.

early

this year

Government
return

the

was

to

Last year and
Conservative

anxious to

very

convertibility

even

though it would have meant fur¬
ther financial aid from the United

States.

One

of

the

results

of

Sir-

Winston Churchill's determination
to

take

tional
that
the

HANNA

IRON

and mines in

Steel'is
field in

future

ORE

COMPANY,

Cleveland.

Ohio—Iron

ore

THE HANNA

properties

Steel located in

Minnesota, Wisconsin and Michigan. In addition, National

participating in the development of the important new iron ore

Labrador-Quebec, where great iron

supply of this vital

raw

ore reserves

will

augment

FURNACE

I

the

material—the basic ingredient of steel.

Buffalo, New York. Its four furnaces augment the pig

initiative

this

is

must

end

of

whether

for

other

CORPORATION—Blast furnace division of National

the

affairs

is

interna-r

realization

necessarily

mean

American

any

convertibility
For

purposes.

Britain

in

the

for

long

so

dependent

aid,

or

as

Ameri-.

on

aid the British Government is

can

production of National Steel's eight other blast furnaces in Detroit,

not

in

Michigan, and in Weirton, West Virginia. In addition, this division is

felt

adequately in the council of

iron

a

leading producer of all

graces of merchant pig iron for foundry use.

position

a

to

make

itself

nations.
The

question is, how Britain

can

achieve

independence of dollar
First of all, any ideas of pre¬

aid.

cipitate action to restore

ibility

have

definitely.

to

be

The

convert¬

postponed

present

in¬

level

of

the

Sterling Area gold reserve
may be high enough to enable the
Sterling Area to carry on, but it
certainly does not allow anything
for

the

risk

ibility.

involved

ternational

There

ocean.

convert¬

the In¬

as

Monetary Fund

offer would be

of

in

Such assistance
a

be

can

convertibility

for

could

drop in the

mere

question

no

many

years

without American aid.
It

would

the

be

plain beyond
that
for

it

or

peace.

ain
NATIONAL MINES

CORPORATION—Coal mines and properties in Pennsyl¬

metallurgical coal for
by acquisition of a
large mining operations in the Pittsburgh area.

vania, West Virginia and Kentucky, supplying

National's needs. Resources have, been further expanded

substantial interest in two

NATIONAL

STEEL

PRODUCTS

COMPANY,

Houston, Texas—One of the

foremost steel distributors in the Southwest, serving a seven-state area.
The

fabricated by the
of floor space under one roof.

huge plant and warehouse—a Quonset structure

Stran-Steel

Division—provides five

acres

INDEPENDENT




COMPANY

OWNED

BY

MORE

THAN

and in

her

up

in

our

present

lifetime, in

1940, the British

inspired

were

will

STOCKHOLDERS

ask

living with the aid of

Twice

means.

appear

19,000

to

way to induce the nation to work
harder and to live within its own

the

AN

not

American money should go a long

At

PITTSBURGH, PA.

made
it
quite
shadow of doubt

longer bolster

no

danger to make

CORPORATION

BUILDING

any

determined

accept dollar aid in time of
The realization that Brit¬

can

ple

GRANT

is

standard of

1931

NATIONAL STEEL

highly beneficial if

government

the

a

by

supreme

danger

to be imminent,

be

more

necessary

theless,

if

difficult

peo¬

imminent
effort.

does

not

that it

so

to

provide

inspiration.

Never¬

anybody

stands

a

chance of being able to do it it is
Sir
Winston
Churchill.
Even

though

people may disagree
domestic or foreign pol¬
icy,
his
prestige
never
stood
higher, and it is possible that the
with

many

his

nation may
a

supreme

second

respond to his call for

effort

Elizabethan

national greatness.

to
era

make
an

this

era

of

The Commercial and Financial Chronicle...

(21B)

22

in

America's Responsibilities
In a Fiee World

own

"hands

across

the

sound and providing for

economy

was

he said:

when

"We have

and not sniping

sea,

.

.

We

.

far afield in our day.

long ago passed beyond
notion of 'protecting'

the

modest

the

industries

moved

tariff legislation

seen

wander very

across

of the country

of

superior wealth

our

it is clearly our manitake a leading part
community of free nations

And power

fest destiny to
the

in

the

for

The only

today

us

factured items of

is the manner

which

in

be

1

Must

ex¬

The

ercised to give

the

benefit, both

kets

to

the

Iron

to

d

our

might add that
the

across

be the only basis for a
mature and lasting foreign policy,
We cannot and will not shirk
can

nea,

us.

limited to $10 billion b,y a screen

assistance
the

government

collective

of

dorsement

security

throughout
the
world.
Briefly
ulated, our role must be the maintenance of our own security by
furnishing
in

nations

national

they

of restrictive trade blocks,
We claim to be the champion
of a free and competitive economy, but we can hardly expect
other nations to forsake state control of business when we ourselves
demand such a large measure of

responsibilities imposed upon
They are implicit in our en-

the

to friendly
interest of inter-

and security,

peace

It is

con-

restraint in imports,

familiar device of those

a

our

own

basis

and

who argue that our tariffs are not
high to include in our imports

providing adequately tor our own

items we do not produce such a^

with

tfistent

keeping

on

economy

thing

sound

a

ar-

Aside from the

.

.

.

concerted

by

thrives

rangement.

duties laid upon . . . luxuries and
merely for the sake of the re ve¬
they yield, the object of the

nues

tariff duties henceforth laid must

be e f f e c t i v e competition, the
whetting of American wits
by
contest

with

of

world."

the

the

wits of

the rest

harken

words

the

to

of

270 million people of Western Eu¬

tariff

ent

But the

this time.

at

is

lav/

.

and

revised

sim¬

must be

'schedules must
downward^ to nonTorm

bto

^aled dov^^^^^tlon^Sde'
an^anv
^

*

.

When

that

eountrv

the

from

are

be free and

will

strong

Allies

As

cooperate

servants

as

We

armament.

free and

not

us,

followers,

or

Allies

need

with

but

equal partners in

as

joint
enterprise. And to have those al¬
lies

offer them

must

we

tion

the lines I

along

indicated—sharing
nological progress and
with

kets

a

coopera¬

previously

have

the

and

We shall do this
as

with
of

them

Ser¬

cynical
I

"Am

my

by recognizing,

Jefferson): "With nations,

with individuals, our interests,

calculated,

soundly
found

will

inseparable from

duties;
to

His

the

Thomas Jefferson did, that (and

I quote
as

in

Mount to

be
moral

ever

our

history bears witness
that a just nation is
its word, when recourse

...

the

fact

our

tech¬

taken

our

mar¬

is had

to armaments

bridle

others."

them.

a

are

we

share

convince

of
Cain:
keeper?"

brother's

than the strength of our ma¬

will

to

eager

Samaritan
on

question

To meet that challenge we need
more

and

have

we

sincerity of our acceptance of
the answer given by the Man of
Nazareth in His parable of the
Good

Equals

of people under

of life which

We must

to
Allies

need

we

on

and

wars

to

Continued from first page

See It

As We

indirect result of the

otherwise,

or

are

short-term than to the

inflationary policies of the Fed¬
accordingly attracted more to the
long-term market.

Dubious Conclusions

Probably there would be not a great deal of disposition
among the matriculate to argue such points as these. There
is, however, a fairly general disposition to draw a number
of highly dubious conclusions from all this recent experi¬
One

ence.

of

these

is

the

observation

heard that the market mechanism

now

now

frequently

available for dis¬

tributing governments and the machinery available for
"making a market" for outstanding governments is grossly
inadequate when measured against the size not only of
current

Treasury needs but against the astronomical vol¬

of government obligations now outstanding.
The reader will doubtless have reservations of his

ume

own

reali-

friends

our

wiu als0

th

feel

us.

masses

way

willing

mon

Need

future DhUosoohv of tar-

y,,

tio

would

this,

pres¬

unwieldly

.

cLtomf nrocldures

it

Then

rope.

enough to challenge

this

have
favored a moderate tariff policy
which by permitting more liberal
imports to the United States cre¬
ates a market abroad for the agri¬
cultural and industrial surpluses
of the United States' economy. A
complete elimination of all tar¬
iffs is neither practical nor pos¬
sible

productive skill of the

always

I

statesman.

great

better

the

eral

.

do well

leaders would

Today's
to

Tariffs

Moderate

Favors

under its

but to the

ent and the

an

by

historic

and

responded to this appeal for, although our exports in 1952 totaled
over $15 billion, our imports were

and not sniping across the

sea

off

cut

are

patterns

stroyed,

Robertson

W.

A

East

Curtain

have
been
de¬
turn to the only
great market left — the United
States. We have not adequately
trade

And I

bands

Tariffs

Ease

until at last nothing

.;

.

.

is obliged to stand the tests of
efficiency and economy, in our
world of big business, but every-

Europeans want trade, not

to ourselves
an

truly competi-

a

petition

to bring

people

beyond

Soviet domination that

them.

terial

of the Government.
Consciously or unconsciously,
have built up a set of privi¬

.

seeks

now

million

800

over

But

demonstrate not only to our

control the manpower of the Ori¬

who

.

aid, and since most of their mar¬

maximum

lilies.

de-

character.

tive

our

leadership
should

was

to

question be¬
fore

theme

speakers
had reference to our
policy of a protective tariff, which
a
large extent excluded from
our
domestic markets all inanu-

personal free¬
dom.

that

As

veloped I gradually found that the

of

n

Bern, Switerland, last summer I
heard frequent references to the
United States as an imperialistic

and

.

we

meeting of this Union in

a

nation.

pres-

ervatio

At

ination

rect patronage

leges and exemptions from comBecause

world prosperity indivisible.
The Politburo has obtained dom¬

and

boldly forward to the idea
entitled to the di¬

that they were

defense.

our own

Democratic

well stated by that
great son of Virginia, Woodrow
Wilson, in his tariff message to
the Congress in the spring of 1913

the
sea, can be the only basis for a mature and lasting foreign
policy," Sen. Robertson endorses principle of collective secu¬
rity. Says our role must be maintenance of our own security
by furnishing assistance to friendly nations in interest of inter¬
national peace and security, but consistent with keeping our
In asserting

bought tions of the world jostling together
has made both world safety and

we

fundamental

That

Senator from Virginia

U. S.

what

abroad.

principle

WILLIS ROBERTSON*

By HON. A.

for

return

from

Thursday, July 16, 1953

of

nartake

~

have we—about

—as

the

philosophy of this business of

"making markets" for government securities, but there
can be no
question that the task of placing huge Treasury
issues, whether funding, refunding or for new money, in

Wc Must Continue Aid

to

bulk

Underdevolped Countries
The

sMi

of the Kremlin. Under

political issue. That great wizard

men

the past

seething

are

revolt.

In

and

easy

of the

of finance, Alexander Hamilton,
recommended, a protective tariff

Administration the United

Slates has rendered substantial aid
these

to

for

peoples

dignity

a

have

»one

for our infant industries but at the
start the Congress imposed tariffs

quest

life whiCh they
before.

for

No

been

produced but
expected. The road has

rough and

dices hard to
technicians

Hiose

their

known

have

were

Been

in

of

never

rmracles

inherited

modern

for

the current trend
in Asia
foe

to

stemmed.

ministration

The

Ad-

the technical
and

cooperation program
export of our technical

this

assistance
o*i

is

one

to combat
has the ad-

way

adversary who
of guile plus

vantage
in

civilized

a

savageness

If in

an

effort

economies

tions and
above
mow

of

are

to

war-torn

of them

are

levels.

pre-war

able and should

na-

now

They

be

will-

iff

Interparliamentary
of the oldest

one

•

ai

nations

in

nations

are

the

by

a

great

because it
those
their

who
own

are

freedom
is

well

speak

/».

.

•.

Fifty-odd
its

and

an-

characterized
of

expession

are

expressing

are

not

com-

governments.

the

an

address

institute

of

versify of Virginia,
July e, 1953.

by

Sen.

Public

Charlottesville,




iin;

Va.^

in

year

than nine billion dol¬

entering another fis¬
which

the

deficit

is

of forcing
planters to sell

domestic

of

Due to inflation our

dollars

have

lost

48%

their

purchasing power while
taxing program is the highest

our
,

most

We must realize that how¬
purpose of collec¬

tory.
tive
be

burdensome in our his-

noble the

security that goal will never
well served
by gifts which

place
own

intolerable burden on our

an

economy.

Can't

Trust Kremlin

Economic

cooperation is
world leadership,

to

supplies

in

have

market,

the

protected

a

South

domestic

would

even-

phase

of
_

provide
been

us

one

but
also

strength.

military
heartened

and

Union.

I

the Russian

satellite

F.°F many years the Principal
Political
difference
between
Democrats and Republicans was
the tariff issue- During that period
it: was the eff°rt of Democratic

have offered

nations.

along
with the prayers of thousands who
hope that there may be some sincereity behind
the
so-called
"peace offensive" of Russia; but
bitter experience has taught us
that the leaders of Russia are not
prayers

my

of good will. They hold the
peace in one hand
and the sword of war in the other,

men

were nothing more nor less than

keneBt °* manufacturers, to fihd
a Pi".0Per balance
between inrlnctru
the pronf
Ampvipan
tection
American industry
TPPTinn

from the cutthroat competition of
foreign

goods

made

by

low-cost

]aborandthpnVh.nfnnr.t.pnQ

rights oi our citizens

yje must ask for concrete actions from them and until these
actions are forthcoming we Would
hazard our national security if we
failed to maintain a defense es1

i

_

_

±1

tc

1

tablishment of sufficient power to
deter aggression.
Our present
armaments

budget

is

appalling,

unc*er our American system of

and involves continuing sacrifices,
free competitive enterprise to buy But better to endure such hardcompetitive market; and the
.

j?

a

•

r

1

rl£htS of American farmers, who
.

,

,

,

.

ship }han,to puf a >"'ice tag uP°n
our
T.

freedom.
,

'

• 1

It has beerr said that war can

a*ways have needed foreign out—longer

be localized. The same
lets, to ship their products abroad science which has brought the na-

one

which

re¬

is not to be found in lack of individual

initiative,

remedy is not to be found in the arbitrary develop¬

ment of mechanisms

by the Government
governmental subsidies.

or

by

means

of

This lack of machinery—if it exists—is a result of the
fact that there has been
ket for two decades.
a

no

really free governments mar¬
what has existed is

On the contrary,

situation in which

more

or

less

government obligations were placed
by official edicts, and in which the market

behavior of

outstanding governments was decreed during
by the Treasury and the Federal Re¬
serve
System. This was hardly a state of affairs to attract
competent market operators in substantial numbers. What
is more, private capital and private management are not
likely to be greatly attracted to the field so long as there
remains good ground for doubt as to what the situation in
these respects is to be in the future.
most of these years

I

lea<ters> who realized that tariffs olive branch of

1

cause

Not

But there

Enough!

other aspects

of this situation which are
disturbing. The diagnosis of the current state
of affairs as one in which there is simply not enough
money to go around, in which private demand is absorbing
all the money there is, and in which there is nothing left
to do but to create the funds the Treasury needs, is gaining
ground. The number of adherents is growing daily, as is
the impression that by thus creating the funds the problem
is solved. The other current belief which can hardly leave
thoughtful observers with full peace of mind is that any
even

"TaXeS lIP0,, Co"sumCTS"

_.

the

and the

recent

by

developments in Eastern Germany

tually be forced to secede from the

a

the hands of investors outside the banks is

quires very extensive and efficient machinery. The plain
fact is, however, that if such machinery is lacking today,

estimated at not less than six bil¬
lion dollars.

circumstances'sUirrequire

in

Robertson

Affaire

are

of the world while buying their

.

♦From
Mi

cal

more

We

Southern cotton
their products in the free markets

understood that

views and

mitting their

t-i•

world.

members

nual conferences

organi-

peace
..11

Union

lars.

policy

£axesL.uPPn consumers for the

juig to help themselves.
The

a

.

rehabilitate the

those

many

their

in

world.

But in Europe there are different problems. We have spent more
than $40 billion since World War

icit of

ever

the

persisted

continue

to

large exportable surpluses and are
faced with the painful fact that
our
supply of give-away dollars
is fast running out. We have just
closed the fiscal year with a def¬

between

predicted that if the government

East may

present

intends

gradually

people,

these

the Middle

and

we

Communism

agricultural

methods, better education, sanitahealth

only. As

We have

anct most &urclensome 111 our ms

and

our

help to provide in

can

revenue

trade is essential for us.

moved from that position to one
of protection a wedge was driven

the agricultural South
rapidly
industrialized
North which touched off the famous debate between Hayne of
South Carolina and Webster of
Massachusetts, in which Hayne

preju-

but if

overcome

areas

lion and

a

Ever since the beginning of our
government tariffs have been a

underde-

the

East

nationalistic

poverty

been

never

misery they present
mark for the false ideals

Middle

the

with

has

their

of

Mutually beneficial f o i e i g n

imports but on

our

there

tariff. Then they strike an.average which to the uninformed indieates a very reasonable measure
of protection,

peoples

vcloped countries of Asia, Africa
and

large in

which

are

more

course

but that of

a

continuation of the expansion of the

supply would almost inevitably bring on a sharp
probably serious setback in business conditions gener¬

money

and

reason in this way are, of course, quite in
sympathy with what the Federal Reserve authorities have
been doing of late, and there can be no question that the

ally. Those who

general feeling in the financial district since this element
of "ease" has been introduced has improved measurably.
To the thoughtful observer, however, at least two ques¬
tions simply will not down. One of them is this: Is not the
fact that available funds are all being taken by private

Volume 178

Number 5238... The Commercial and Financial Chronicle

(219)

industry

plain indication that not only the funds but the
of the nation are being utilized as fully
as the
people of the country are willing to utilize them?
In such an event, and if the entry of the Government into
the picture on a larger scale than heretofore does not re¬
sult in some retirement of competing private groups or in
an increase in the
degree or the efficiency of the utilization
a

economic

resources

accomplished by pouring

more

into the situation

money

be

willing to retain them,
reducing the deficit fi¬
nancing that would otherwise be
necessary.
No one can guarantee
that even the wisest policies will
thereby

enable

of

to avoid the after-effects

us

the

inflation

great

would

happen at the polls

existing it is not economically feasible to place re¬
straint upon the further expansion of bank credit, when

completely worthless dollar and

a

a

taxes

order

of

register

The economy

additional

public

until

cut

commercial

should

It

be

9

the

Why We Should Restore

is

are

income
a

indicates

which

ihave

3%

not

rnormal

has
year,

that

always
a fact

maybe

we

maintained

even

a

in

spite of the ex¬
tra billions that pass through the
{people's hands.
pace,

IV

There

be

can

there

never

no

of

composed

ang

was

Administration
the

a

doubt that, behuman beings,
Congress or an

that

did

not

like

of

idea

being able to spend
imoney without seeming to get it
from the people.
But in all honesty, we must ad¬
mit that it is a dangerous power,
this

in

<and

■outlived

which

one

case

its

has

justification.

The device

we

have been using

^namely, deficit spending or the
of public debt—was
facilitated on such a large scale

anonetization

taking something away from
the people, and it can be corrected
by giving that something back to
by

the

people.
something I refer to is the

That

of

{power

citizen

the

to

convert

fiis dollars into gold coin.
It

worth

seems

while

at

this

point to review briefly the tech¬
nique of deficit spending and its
relationship to gold.
Monetization of public debt is,

called "borrowing from

<of course,

commercial banks."

banks

Commercial

do not loan

existing money: they create
new
money called "a deposit"-—
money that never existed until
any

the

loan

exist

made and ceases to

was

soon

as

as

the loan is paid

off.
When

bank makes a commer¬

a

loan

to

business,

a

that

is,

that

the

about

of

their

reduced

be

truth

because

something

is

that later on will
sale and the loan
is usually
repaid within a few
months as the goods are sold.
But
when
commercial banks
created

being
be

offered

lend

for

to

money

the Federal Gov¬

the money is not used
create additional goods: it is

ernment,
to

used to buy
As

far

concerned,
water

to

goods already created.
the money

as

this

supply is

is like adding
quantity is

milk —the

greater but the quality is lesser.
We owe an obligation to Amer¬

further
watering of the purchase value of
their money. We must prepare to
fulfill this obligation by restoring
ican

citizens

to

prevent




more

a

oner¬

sincerity

the

This

I

do

dollar

by

is

im¬

an

dollars.

believe:

not

crystallized

money

at

be

can

be¬

the

around

issue

of

gold.
I

wide

tonnage

Great

Northern's

1952

likely

direct

the

of

result

decades of the loose fiscal

two

policies

the

of

most

winter

column

shows

second

column

cline, in

indicates

the

de¬

cent, in loadings of

per

three weeks ended

some

weeks to

ore

total

in

load¬

car

than double
weeks.

some

comparisons
be

extended

the

to

are

In

come.

be

may

other

be

end

found

drop

fact

that

the

of

introduced

a

the
and

be

It

there

im-,

probable
In some

is
is

Oklahoma

considerably
a

a

well

known

large

carry¬

have

preceding Administration.
During the past six months, the
new. Administration has carefully
studied all aspects of the problem
that we have inherited, and this

of

spending
chart

continuous

in

and

fiscal

a

to

be

moved

in

to

make

way

for

the

new

loadings of this year's short crop.
a
matter of fact, not too long
ago there were press reports to

As

the

effect

that
the
Commodity
Corporation had started to

move

of

some

its
as

of

stored

due

course

which

to

course

the

deficit

to
we

it

may,

American

people

and

Rock

Island

for these

even

one

two
com¬

the

on

full year 1953.

timated

by

earnings for the

It is still being es¬

most

year

increases

analysts

the

over

sults.

in

that

earnings this

excellent

1952

Industrial expansion

decade

duced

has

the

materially

dependence

roads

on

farm

commodity.

re¬

of the
re¬

of

such

a

single

the movement of

Schoellkopf, Hutton
Appoints Officers
Schoellkopf,
Inc.,

A.

Hutton

securities

the

nounces

&

Haller,

William S.
and Raymond W. Pyle

of

an¬

Carl

Kraybill.
as

ant Vice-Presidents of

ration,

Pome-

dealer,

appointment

the

Assist¬
corpo¬

with

the

new

crop

impact of the short

operating in the

ance

same

gen¬

territories.

of winter wheat in the

Traders

Club.

Haseltine, Gilbert
& Wilson Formed
(Special

to

The

Financial

Chronicle)

MINNEAPOLIS, Minn.—Hasel¬
tine,

Gilbert

has

been

108

Ninth

in

the
are

Wilson,! Inc.

with

Street,

Officers

gage

and

formed

offices

South,

securities
F.

to

at

en¬

business.

M.

Haseltine,
Wilson, Vice-

President; R. W.
President; and L. G. Gilbert, Sec¬
retary-Treasurer.
Mr.
Haseltine
and

Mr.

with J.

Gilbert

W.

were

previously

Goldsbury & Co.

over¬

the
Davies to Admit
all traffic makeup of the indivi¬
problem, the
SAN FRANCISCO, Calif. —On
(1) Tax receipts to be expected Congress and the Administration dual railroad. Obviously even a
during the present calendar year can
expect
their
wholehearted complete failure of the crop in July 23 Wesley J. Roland of Ber¬
had been seriously overestimated
the entire belt would weigh more keley will be admitted to general
support and cooperation.
by the preceding Administration,
heavily on a road that normally partnership and Howard M. Yeager
with the result that actual receipts
gets 10% of its total freight reve¬ to limited partnership in Davies
&
in the March and June quarters
nues from
wheat than on a road
Co., 425 Montgomery Street,
were
that normally relies on wheat for
members of the New York and
$2,400,000,000
below ' esti¬
San Francisco Stock Exchanges.
mates.
only 5% of its freight receipts.
The following tabulation com(2) Th^ defense program has
is the

situation.we found:

true

nature

understand

influence

in the

has varied widely even with

crop

roads

eral

with

Fe

grain

Also, the influ¬
safety and mo¬
rality in spite of the economic ence on earnings of the decline
in
wheat
shipments
will
vary
pressures of the cold war.
i
I am convinced that once the widely, depending on the import¬
adhere

can

earnings
particularly

headquarters in the
New York office, 63 Wall Street.
crop as it was harvested, thus les¬
Mr. Pyle is also
currently Presi¬
sening the impact on railroad car
dent
of
the
Corporation Bond

order

purpose

effects

Santa

on

July,

roads the decline in the

roy,

and it had generally been ex¬
that a substantial part of
would

effect

and

Nevertheless,

past

scale

pected
this

June

both of these roads will be able to

from last year's crop in stor¬

over

age

will

severe.

relatively short
will likely have

a

report

more

the

of

lower.

sections of Kansas

more

in

adverse

some

for

is

weeks,

for

fact, July

even

some

estimates
place
yield nearly 30%

the

of

span

are

spectacular than those of June.
At

movement

been

more'

to

of which is to re¬ East. Be that
gold coin redemption to the opening weeks

bill, the
store

is

six
of

reporting modity is not expected in finan¬
increases,
with cial quarters to have any great

level

also

Credit

have, therefore,

also

portant
winter
wheat
carriers.
of Last
year
there was a bumper
Crop. This year the latest official

discussed

levels

over

Now, why cannot we take the American
season there
was
a sharp drop in
people.
*
step immediately of full return to
From the hearings on this bill grain
loadings
in
the
winter
a gold-redeemable currency?
The
can
come
the
opportunity
to wheat territory.
answer is to be found in the situa¬
As
is
generally the case with
publicly reexamine the deleterious
tion that exists today, a situation
railroads
that

the

1952 freight reve¬
represented by wheat.
The

wheat for the

July for

and taxes

comprehension

when

taxes

in

carried

following month. Iron

have

comparisons

that

late

influences

ings running at

,

about money

until

roads

people who be¬

entire

beyond

and

increase in the number of

proper

the

of

Keppler Offers No. Am.

Peat Moss Stock at $ S

been

reviewed;

contracts

R.

have been cancelled; and.all proj¬

New

ects

that

t

many

could

be

delayed with-

endangering

effort

have

the

been

Nevertheless,

the

representing previously made for
goods being produced, the national be delivered in the
books are what you might call
months are so
^Balanced"

constitute

even

on

value

to

nues

the

These favorable

duty to These favorable

currency

deposits

creates

bor¬

that is convertible into yond the comprehension of almost
demand.
everyone but a handful of special¬
There is no greater index
of ists, but discussed at a
practical
public confidence in government
level, any high school student can
than a public lack of desire
to understand the basic
principles.
own
gold.
Even if I should be over-optim¬
By its very nature gold is un¬ istic about the matter of
public
desirable as a possession during
understanding of fiscal policy, I
times of monetary stability befeel that the effort is one which
cause
its ownership represents
our
conscience cannot permit us
hoarding, and you can't make any to
ignore.
i
money hoarding money.
I am convinced that public in¬
As a result, a demand for gold
terest
in
these
matters
can
be
shows
that
the
people
believe

a

gold coin

o u

cial

plain

our

many

with

stratospheric
real

bank

the average man.

The Gold Standard
around

into the

than direct taxes.

ous

the

and

the

supply

money

terminated

not

the people that additions to

warn

There

and

is

rowing has ended.

lieve

'been

mone¬

there

tion: that of having to explain to
the people that taxes cannot be

the

aty

debt,

vigorous protest.

a

form of taxation

page

first

The

East, and
of

The

the per cent of

comparisons will almost certainly
continue through the early weeks
of August as last year's strike was

in

But let's consider another situa¬

precipitating trouble, will there ever be a time 'when it
can be done—and, if not, what is in store for us in the
long run?

from

be raised

to

little doubt that the voters would

has great momentum. De¬
fense expenditures will continue very high. If no restraint
can now be
placed upon inflation of bank credit without

«Continued

the

sections

wheat.

of

carriers

and

country that receive any substan¬

explana¬

proper

were

avoid

to

tization

Current demand for almost all types

than excellent.

roads.

in

other

steel strike.

(without"

If

tion)

of goods—
agricultural products excepted—is rather better

certain

roads

in

vari¬

country

rail

steel indus¬ July 4, 1953 compared with the
directly, have naturally been like interval a year earlier.
There
is
no
doubt
that
the
reporting particularly wide gains
Naturally, the decline in wheat
American people do not want to
compared with the period of the loadings,
concentrated
as
the
pay higher taxes.
1952

economy? Business is going virtually at capacity.
sorts of plans for expanding production capacity are

All

result of

a

the

status

important

try

crushed

common.

as

industrial
roads

between

as

of

individual

the

pares
•

into effect.

expect to be able to take action safely to prevent
expansion of credit which would obviously
later in

between

might

Loadings and the Carriers

compari¬

policies that might be put
tial traffic from the

any new

indefinite

sooner or

ex¬

similar body

or any

variations
sections

ous

to

be conscious of what

not to

now

end

wide

unrealistic

be

traffic

in recent weeks have shown

sons

pect this body

The other question is this: If in a situation such as that

an

Winter Wheat
Year-to-year

V

It

When?

we

recent

to be solved.

government loans made by the commercial banks?

can

of

years, but by making our inten¬
tions clear we can restore con¬

fidence in the Nation's fiscal pol¬
icies and thus lessen the problem

of economic resources, what other than inflation can be

via

will

23

defense

postponed.

commitments
armament to
next

for

defense

reduced at

(3)

cannot

be

the

fiscal

ness

several

Inc., at $1

dollars

due

for

in

share "as

purchase

in

cash deficit of $8 to $9 bil¬

a

equipment

Co.,

specu¬

corporation

Delaware

on

for

and

the
the

was

Dpc.

Escuminac

Province

organized

18,

1952

and

mar¬

Peat

of

Moss

New

Bog

Bruns¬

wick, Canada.

July 1 and Dec. 31.
According to an estimate, about
Obviously, it is our responsi¬ 60% of the peat moss used goes
bility to cope with the situation in into horticulture and market gar¬
best

manner

calculated

to

dening.

minimize the harm that otherwise

into

might result.

creased

confidence
rency

and

We must strengthen

in

in

the

its

Nation's

cur¬

securities.

If

that is done, more present holders
of
United
States savings bonds

gate
1950

the

Atchison, Topeka & Santa Fe_.
Chicago, Rock Island & Pacific.

Ended July 4

6.3%

45%

11.0

36

7.6

20

Missouri

5.9

25

4.8

21

5.7

16

St.

Pacific

Louis-San

Union

Francisco

Pacific

Winslow, Douglas to Admit
Winslow,
120

States

have

almost equaled

the domestic

&

McEvoy,

York

City,

of the New York

Stock

Exchange,
Robert

C.

on

L.

New

Aug. 1 will admit
Timpson to limited

Mr. Timpson will
retire from partnership in W. E.
Hutton & Co. July 31.

partnership.

Specialists in

Guaranteed
Railroad

Securities

W. E. Hutton to Admit

in¬

steadily until the aggre¬
imports of 124,861 tons in

Douglas

Broadway,

members

Imports of peat products
United

by Wheat

Missouri-Kansas-Texas

to

lion between

the

% of 1952 Freight Decline in Wheat
Rev. Contributed
Loadings 3 Wks.

purposes.

exploit, equip, operate
of

to

Moss

ket the product of about 900 acres

slow¬

porary

and

per

Peat

The net proceeds are to be used

to

of receipts will show a tem¬

year

(par 10 cents) of

lation."

The

billion

stock

American

North

once.

The result, as the Treasury

of

an

common

materially general corporate

has announced, will be a cash def¬

icit

of

& Co., Inc., of
City,
are
offering
issue of 500,000 shares

Keppler

York

publicly

several

large that spending

A.

On Aug.

1 Austin E. Casey will

be admitted
E.

Hutton

&

to

partnership in W.

Co., 14 Wall Street,

production of 130,723 tons for that

members of the New York

year.

Exchange.

Stock

jUmna

nmhf

25 Broad Street

raaDani

New York 4, N. Y.

Telephone BOwling Green 9-6400
Members Nat'l Assn. Securities Dealers, In*.

24

(220)

The Commercial and Financial Chronicle..

and

Kearshes will continue to be

engaged in

News About Banks

Profit-Sharing

trusts.

Bankers

and

OFFICERS, ETC.

REVISED

Gen-' Baylis

Todd G. Tiebout, Assistant

Counsel, has been appointed

Assistant

Vice-President

an

sel of the Federal Reserve Bank of

April, 1946. Mr. Andersen,
the

official

Rockefeller

Center

ber

effective Aug. 1, Allan

Sproul, President, announced on
July 8.
At the same time, Mr.

of

will

of New York announced

and
ant

Gregory O'Keefe, now Assist¬
Counsel, will become Assist¬

ant

Secretary,

continuing

pointment will fill the
office

the

General
the

vacancy

Vice-President

of

Counsel

resulting

of

will

1928.

the

resume

the

of

in

law

as

Mr.

was a

Board,

the

of

in

Federal

bank

since

#

Trust

&

Textile
in

Office
the

announced

was

at

199

spring of
July 15

of floor space now occupied at 320

Broadway, the Textile Office will
have 14,000 square feet at the new

location, including the first floor
to the bank and basement. The building at 199

Assistant

Secretary,

Street,

15-story struc¬
ture, is being erected by the State
by

Chemical

Bank.

Mr.

Jackson,

in

coming Secretary in 1949.
Mr. announcing the new move, pointed
Willis,^ who succeeds Mr. Clarke out that Chemical has been ac¬
as
Secretary, has been with the tively engaged in furnishing bank¬
bank since 1941, serving in the Se¬ ing facilities to the textile indus¬
curities Department.
He was ap¬ try since the bank was founded in
pointed

1824.

Assistant

Secretary
in
Mr. O'Keefe, served in the

1952,

United

States

A.

head
at

of

the

ant

entire

try.

*

*

of

New

York announced on July 9 the
promotion of four members of the

company's
Kenneth

branch
M.

office

McGhee,

staff.

formerly

V i

e-Pr

c

e s

i d

t

e n

while

George W. Lownes, G. Robert
Truex, Jr. and Don C, Wheaton,
Jr.

have

been

Secretaries.
the

elected

Mr.

Assistant

McGhee

came

to

Irving in 1934 following grad¬

uate

work

in

Business

Adminis¬

tration at the

University of Penn¬
sylvania, and for the past 10 years
he

has

been

connected

with

the

Irving's 48th and 51st Street

Of¬

fices.

Mr. Lownes is in charge of
operations
at
the
42nd
Street
Branch Office.
He has had wide

experience in

a

number of bank¬

ing activities.
ber

of

Mr. Truex,
Empire State

the

mem¬

a

Branch

Office staff, came to the Irving in
1949.
Mr. Wheaton came to the

Irving
in
1952
after
previous
banking experience. He is located
at Irving's 57th Street Branch.
❖

S.

Sloan

%

Colt,

Bankers Trust
York

ft

President

Company

announced

on

of

July

New

13

the

were

promoted to Assistant VicePresidents: Raymond T.

Andersen,

Banking Department; Rudolph A.
Schlumpf, Bond Department; and
Charles A.
Frank, Pension and
Personal Trust Department. Har¬
old W. Johnson of the
Banking

Department, Fifth Avenue Office,
was
urer.

elected
Mr.

Princeton
with

the

an

Assistant

Baylis,

a

University,
bank

Treas¬

graduate

since




has
1929.

of

been
Mr.

the

board

sail and
ant

of directors of

ft

The

New

ft

ft

York

R.

dent of A. H.
was

elected

at

a

Street, announced

"The

board

Standard

of

directors

of

*

meeting

the

at

General

Meeting of share¬

holders in July, 1952, and to offer
them at a price of 30 shillings per
share to the shareholders whose

appeared

names

the

"East

bank's

and

its

1953,

the

in

shares

tions

July 13. Known

on

Bronx

in

can

in

Branch"
that

New

is

boroiugh

York

carry

it

out

Cny.
their

banking transactions with¬
out leaving their cars and
ample
of parking space have been

provided.
The complete services
of National City will be available
at the new Bronx
unit, which is
149th

Street.

Herman

Bon-

hag, who has been with the
18 years, is Manager.

bank

V

*

V

Appointment
of
Edmund
J.
Nicholas and Anthony J. Kearshes
Vice-Presidents in the Personal

as

Trust

Department

turers
York

Trust

of

Manufac¬

Company

of

New

announced on July 10
by Horace C. Flanigan, President.
Since 1930, when he joined the

staff

23rd

June,

of

two

new

a

share

new

was

of

the

trust

company,

Mr.

Nicholas has been engaged in Per¬
new business
develop¬

sonal Trust

nored,

holders

but

In recent years he has spe¬
cialized
in
Pension
and
Profit-

Trust

many years

sociated
surance

promotion.

Mr. Kearshes

with the

Co.

arial work.

in

be

less

of

ig¬

Aetna

was

Life

For

shares

will

new

share.

Application has been

made

to

offered

be

Exchanges in
Johannesburg
for
to
deal in the new

and

permission
shares."

Croll

Argo

the

is

the

New

John

Brooklyn,
election

of

Bank,

of
the

announces

Donald

of

President

Woodward

B.
as

trustee of

a

the bank.

Mr.

Woodward

known

Indiana

Uni¬

versity,

class

1928,

and

his

early

t i

i t i

v

cluded
i

a

e s

ac-

in¬

Finan-

1

Editor¬

ship of "Busi-

with

Moody's

he

I

vestors
ice.

eral

n-

Serv¬

For

sev¬

Economist

as

to

the

Board of Governors of the Federal

Reserve System. During tl}e war,
he was Consultant to the United

States

Treasury Dept. and for a
thereafter, Economist
with the Department of State in
Washington. He has had years of
experience
in
research,
having

short

been

time

associated

Life Insurance

with

the

Mutual

Company for

a pe¬

riod of 13 years, and held the
post
of
Vice-President when
he
re¬

signed
his

Na¬

June 1, 1953 to take up
present position of Chairman

Roanoke

ers

previously approved the merger
plan, under which holders of First
Suffolk

shares
each
of

will

stock

receive

consolidated

of

share

held

now

IVi
for

stock

and

Northport Trust stock will

courses

ments at Columbia

in Bank Invest¬

University and

is

presently a member of the fac¬
ulty at the Graduate School of
Banking. He has co-authored the
following works on financial mat¬
ters:

"F'rimer of

tion"

Money," "Infla¬
"Prosperity, We Can

and

Have It If We Want It."
-member

Club
of

and

of

the

the

He

National

Cosmos

is

a

Press

Club, both

Washington, D. C., and is also

affiliated with the American Sta¬

tistical

Association, etc. etc.

charge, of

elected

1937,

graduating
College.
He was

Assistant

an

on

after

Cashier

in

December, 1945; promoted to As¬
sistant Vice-President
1949

and

on
Sept: 1,
Vice-President
on

to

June 1, 1952.
ft

ft

Robert

J.

ft

Davis

elected

was

Vice-President of the Sears-Com¬

stock

munity

for

each

Stockholders

Northport

share.

of

Northport Trust
have the option of accepting $175
share

per

for

&

their

stock

Company.

from

Capitaliza¬

a

State Bank of Chicago at
meeting of the board of direc¬

tors, and Joseph A. Myers was ap¬
pointed Director of Public Rela¬

tions,

tion of the consolidated association

dent

will

July

consist

common

of

72,625

stock, $10
*

N.

into

tional Bank
with

200,000

the

Central

Syracuse,

Y.

the

Trust Co.

Co.

of

stock

charter

Na¬

Syra¬

of

De¬

$1,-

title

Bank

On the date of the

ft

Five

mer¬

of not

less than

$1,760,000.

staff

a

Co.

the

of

Crocker

retired

Cal.,

June

30

with

William J. Clasby, 49
second longest record of
present members; Joe Zanassi, 40
yehrs, and Floyd Smith, 30 years,
both began with the Farmers and
were

years,

of

Bank

Sargeant,

35

years,

Ellsworth, 25

years.

Oakland;

Ed
Mildred

and

Swarthmore, Pa.

First

National

Bank

of

Media, Pa. became effective under
charter of

of

total of 179 years of service. Re¬

Merchants

Trust

ff

ft

members

First National Bank of San Fran¬

tiring

serves

new

effective June 18.

&

the

as

ft

of

60,000 shares of common stock
(par $20 each), surplus of $2,000,000 and undivided profits and re¬

of

reported

ft

stock, the First National Bank of
Jackson, Miss., has raised its capi¬
tal from $1,210,000 to $1,512,500,

cisco,

the

Business

June

on

and

National

capital

is

with

New

the

By the sale of $302,500 of

enlarged
$1,200,000, in

the

bank

in

ft

at

stock

Lincoln

Trust

&

York,

(common

the

common

Lincoln

ger

bank, announced on
Both have been asso¬

Industrial

New

became effective

under

the

the

13.

partment of the bank for several

*

of

merger
of

$200,000)

26

William G. Dooley, Presi¬
of

ciated

value.

par

^

of

years.

The
Bank

cuse

shares

latter

the

and

Continued

from

un¬

2

page

der the title of the First National
Bank of Delaware County, at Me¬

dia.

The

the

date of

consolidation

the
enlarged
capital stock of $800,000 (in 40,000 shares of common
stock, par $20 each); surplus of
$700,000 and undivided profits and

bank had

An

a

of not less than

reserves

item

bearing

$157,000.
the plans for

on

the consolidation

appeared in

ft

«

Company of

the

$55

new

bank's

capital

unissued

stock.

subscribe
a

$25

par

Stockholders
the

for

stock

new

share at the rate of

share

for

each

three

one

Subscription warrants ex¬
pire July 28. A group of invest¬
ment

bankers

consisting of Alex.
Brown & Sons, Baker, Watts &
Co. and John C. Legg & Co. will

underwrite the issue.

ment bankers have agreed to pur¬

%

*

The

board

It

is

Dec.
1952.

on

June

24

Vice-President
bank's

A.

in

of

the

*

R.

Ives

charge

of

as

the

%

*

next

has

within

Bank

The

been
of

a

new

created

Virginia

of

Richmond, Va., that of Branch
Coordinator for the bank's 11 of¬
fices in six Virginia

cities, accord¬
ing to an announcement on June
25, by Thomas C. Boushall, Presi¬
dent of the bank.

Heit>ert C. Moseley, Vice-Presi¬
dent and in charge of the bank in

Roanoke, will take the

stock

has

in¬

per

share

on

31, 1948 to $37.36 on Dec. 31,
This figure would be higher
This

1952

were

The

$14.50

over

stock

has

share.

per

paid

quarterly

dividends

regularly commencing
completion of the re¬
capitalization plan accomplished
with

in

the

1947.

In

has

rate

1952

been

and

$1

which

annum,

per

is

1953

the

share

per

very

conserva¬

tive.

new

post,

is

only

preferred

no

stock

moderate debt of $600,000 bearing a 3V2% interest rate.

There

a

are

stock

common

198,360 shares of
now

stock,

selling

where

in

the

market,

is

cur¬

around

quality

and

it

The

traded

yield 7%, and has
stage

com¬

outstanding.

over-the-counter

rently

*

January,

assignment

$26.70

is a sound value and,
opinion of the management,
could not be duplicated for any¬
thing like that figure.
The net
quick assets alone on Dec. 31,

cf

foreign department.

Effective

the

of

from

There

Commerce

of

in¬

that have been

in the

mon

tion

cus¬

absorb

important to note that the

value

now.

and

•*

of

to -its
-

shares at

directors

of

Bank

to

granted.

The invest¬

chase any unsubscribed
the subscription price.

prices

order

creased wage costs

shares

held.

its

in

creased

The Fidelity Trust

value

raised

tomers

book

sis

Baltimore, Md., offered its stock¬
holders
of
record
July 10 the
right to subscribe for 24,350 shares

may

just

our

issue of June 25, page 2768.

at

The Security
I Like Best

Comptroller of the Cur¬

reports that at the

Norfolk, Va., announced the elec¬

conducted

in

ceive 4% shares of the new bank's

Chemical

has

in

Mr. Thomas joined the bank

re¬

National

Woodward

bank

bank.

holders

of the Finance Committee of Vick

Mr.

on

Thomas,

the

officer

as

from

in East Northport. Stockhold¬
of the two
institutions had

one

on

Co.

Roanoke

17,

of

prior to World War II,

years

served

Suffolk

July

eight

years

Donald B. Woodward

First

as

Week"

ness

mid-December,

P.

participate in the Advanced Man¬

land communities, one office in
Huntington, two in Northport and

is

of

From

the

rency

graduate

a

Roanoke

now

of the Swarthmore National Bank

Savings
Y.,

is

York

*

Hooper,
N.

Comptroller
and

city.

in

Lewis

by

tional Bank of Huntington. Offices
will be located in three Long Is¬

&

W.

Lincoln

Huntington,
approved
of the Cur¬

been

As of June 30 the consolidation

*

the

of

has

succeeded

1,

effective, ac-* agement Program at Harvard
cording to an announcement on University
Graduate
School
of
July 13 by George A. Heaney, Business Administration.
President of
First
Suffolk, and
On Jan. 1,
1945, Mr. Moseley
Charles
S.
Mott,
Chairman of joined The Bank of
Virginia as
Northport Trust. The merged in¬ Assistant
Vice-President
and
in
stitution, which, it is stated, will
charge of the Petersburg office.
be the largest commercial bank in
He was
elggled a Vice-President
Suffolk County with total assets
on
Jan. 1, 1947.
In September of
of approximately $25,000,000, will
the
following year he went to

agent of the bank.

as¬

pension and actu¬

one

Stock

the

London

In¬

Both Messrs. Nicholas

than

five

ment.

Sharing

Frac¬

will

and

routine

near

on

five shares held.

for

of

ratio

*

fifth

68th

Customers

areas

the Register at

on

the close of business

on

505 Southern Boulevard in the

Bronx, opened

Africa

Bank

Island,

Shields

Limited have how decided to issue

New

The first "Motor Branch" of the
National City Bank of New
York,

the

June

on

South

*

Co.

September until
Mr. Moseley will

2,000,000 new shares of £ I. each,
fully paid, under powers granted

Jones, Assist¬

Trust

*

as

the

of directors of The

Bank

July 8.

at

of

the following advices from the

30

director of Corn Ex¬

a

Bankers

Agency

Kiggins, Jr.,
Presi¬
Bull Steamship Co.,

Bank

on

Standard Bank of South Africa, at
67 Wall

c

change
York

%

of

that

Long

;

of

#

A.

Law

Becker is

Securities Corp., Cities Stores Co.,
etcetera.

Managers.

Willard

President of

Mr.

Earle V.

are:

Donald

.

and

University's

Other otficers associated with

of

following changes in the official
staff; Chester Baylis, Jr.,
formerly
an
Assistant Vice-President, was
elected Vice-President; and
the
following
Assistant
Treasurers

York

School Alumni,

Haring,
Assistant
Vice-President;
Ray¬
mond L. Baris, C. Houghton Bird-

Assistant Vice-President, has been
named

New

Ross

Becker,

in the textile indus¬

career

Mr. Durham

Irving Trust Company

of

Stone, to the board.

Textile

320

War II, and joined the bank's staff
in 1948. He was appointed Assist¬

Counsel earlier this year.

law 'firm

Durham, Vice-

Broadway.
Prior to coming with Chemical in
1951, Mr. Durham had spent his

*

>

Kenneth

President, is
Office,
now

Navy during World

the

a

Insurance Fund which will occupy
all space other than that leased

be¬

of

meeting on July 9 elected Murry
C. Becker, senior member of the

on

by N. Baxter Jackson, Chairman.
with 7,100 square feet

Church

#

directors

Sterling National Banl^ and Trust
Company
of
New
York
at
its

Com¬

Compared

Reserve

of

bank's Head Office in London:

ffi

Bank

appointment

new

#

board

grad¬

a

Vice-President

National

be

The

Institute of

the

Street

1954, it

Effective April 1, 1946,
apopinted Assistant Coun¬

and

with

new

a

Church

partment.
was

orig¬

School. Mr. Johnson has been

open

Clarke, came
in 1941 as a Special Attorney in
the Foreign Funds Control
De¬

sel

Depart¬

was

Washington.

Mr.

he

Bond

who

of New York, long identified
with the textile industry,
will

member before his

joining that firm in 1922,
Logan
had
been
General

Counsel

before

pany

the

Before

the

Frank

#

connection with the Reserve Bank.

Mr.

in

Mr.

Chemical

firm
of
Reynolds, Richards
&
McCutcheon, of New York City, of

which he

in

years

banks

1926.

came

of

time

associated

Logan

member

his

ness

practice

general

a

six

Swiss

Technology and the Harvard Busi¬

retirement, effective Aug. 1, of
who has been the
officer in charge
of the
Bank

Schlumpf

uate of Massachusetts

senior

the

Mr.

inally employed in 1927 is

in

and

Walter S. Logan,

to

Assistant

spent

and

ment.

from

Legal Department since he

University

ah

coming to Bankers Trust Company
in 1927, where he has spent most

As¬

as

and

French

Mr. Tiebout's ap¬

sistant Counsel.

1951.

educated in France and Swit¬

zerland

lis, now Assistant Secretary, will
succeed Mr. Clarke as Secretary;

York

elected
in

on

become effective Sept. 28.
#

has

New

was

advertising. The
will

being
Sept.

rency,

July 9 that Cunningham & Walsh
Inc., New York, has been ap¬
pointed to handle all phases of its

the

of

Office,

attended

was

Wil¬

staff

the bank since 1945. He

Treasurer

Assistant

become

General Counsel; Arthur H.

in

a mem¬

been with

Sproul announced that John J.
and
Clarke, Secretary and Assistant

Counsel,

❖

Lawrence Marshall, President of

was appointed Trust Offi¬
January, 1946, and became

in

cer

Vice-President and General Coun¬

Merger of the Northport Trust
Company of Northport, Long Is¬
land, N. Y., with the First Suffolk

by
*

the Bank of The Manhattan Com¬
pany

New York,

and

Prior
to
both had been

promotions,
#

CAPITALIZATIONS

eral

Pension

trust officers.

BRANCHES

NEW

of

their

CONSOLIDATIONS
NEW

development and

the

administration

.Thursday, July 16, 1953

now

has

good

•

14 V2,

to

reached

a

investment

prospects.

It

certainly should attract the attention

and

careful

.consideration

advantage
does not

greatly
stock.

of

the

buyer who wants to take
of

a

situation

commence

to

which

reflect the

improved position of the

Volume 178

Number 5238... The Commercial and Financial Chronicle

(221)

Continued jrom page 6

petition, and the saftClty of

£<?n-

tract.

Republicans' Unhappy LegacyInflation, Taxes, Interventionism
miss

the

point

the

once

.

.

dead

the

.

hand

fact

of

that

politics

tablished,

maintained, safety

gets its convulsive grip on Ameri¬
can
business and industry, free

be

competition will be strangled, and

stated

economic

our

system

different—and

no

will

more

be

no

success¬

ful—than those noble experiments

crumbling

into

favorite

A

of the

tack

dust

and

in

Europe."

business

on

interventionists:

size.

Are

Ask

the

the

Big

not

becoming fewer and fewer and
bigger and bigger as they devour
the

smaller

competitors?

The

is to the contrary.

answer

Dun &

Bradstreet, the credit-rating house,
that

reports

the

growth

in

com¬

mercial enterprises is greater than
our

amazing growth of population.

Since 1930 the population has ad¬
vanced

by

nearly

of

number

20%.

businesses

But

has

the

grown

by 35%. What's more, the position
of the traditional giants has weak¬
strengthened over
The United States Steel
Corporation
which
once
com¬
manded 68%
has

of the steel

to be

now

content

market

with

30%.

The International Harvester Com¬

slid from 85% of the market

pany

to 41%.

The American Can Com¬

in

the

"In

business

another,

will

heightening competion and hold¬
ing

big companies

the

Consider

maker,
packer,

the

first

the
the

month

club

in

check.

first

ballpoint pen
frozen
food

first

book-of-the-

in

—

all

competition

quickly flooded in on
vators, to the lasting

the inno¬

benefit

of

consumers.

With
of

abundant

bewildered

are

proper

plead

nessmen

for

limits

audience.

men

for

Court

bench, one of our basic industries,
steel, came close to nationaliza¬
tion

last

smarted

Even

year.

labor

has

terribly from the mildest

of
government
regulation,
the
Taft-Hartley
Act.
And
they're
beginning to join us when we ask,
who's going to regulate the regu¬

lators?"

Overseas,
are

also

Mr.

interventionists

having their hand turned.

Tom

the

the

Sopwith,

Chairman

of

Hawker

ducers,

Siddely Group, Ltd.,
English jet plane pro¬
told his annual
stock¬

holders'

meeting, "Let

famous

you,
say

me

ladies and gentlemen
this most solemnly

there

is

thing

one

this

(aircraft)

assure

virile,

and

thing

is

nationalization."
Professor

Lewis H. Haney
of
University has well
pointed out the high business risk

New

of

York

government

asks:

enterprise.

He

"Does anyone

really believe
the 'government' by
taking
business can get rid of busi¬

that
over

uncertainties

ness

evidence

and

alarmed

by such interventionist statements

-emanating from Washington like
that
of
Supreme Cou/rt Justice
William O. Douglas in his opinion
in the case of the U. S. vs. the

and

losses?

and

potatoes?"

Our

Secretary
Randolph

Burgess,

summed

hands

many

that the

so

into

fortunes

the people will

of

the whim

not depend on
caprice, the political

or

prejudices, the emotional stability
of

few self-appointed men."

a

Which

business

nicely

accounts

of

fear

Socialism

country.

in

this

would

industrial

centrate

the

socialism

con¬

to

power

said:

school

in American
the

arises

of

danger
in

the

thought

introduce

in

at

which

this

the

form

of

a

would

the

and

socialism,

which

have

never

anismsm

ism,

and

which

successful.
economic

motives

have
.

.

.

issue

of

been

That

in

is

the

America."

tends

to

America:

corrupt,

and

then

"Power

absolute

which

absolutely." Yet
nothing else in economic systems

venes

would

so

the

power

and

corrupts

power

linitely

centralize

the

greater

would

industrial

socialism.

other

principles should be reestablished:

the

as

capitalism,

power

it

and

thing right

very

Still

the

is

decentral¬
American

doing

that

now.

interventionists

pro¬

The

(1)
Santa
cannot

ernment

"make

guarantee

the

Government

every

people's

dinner

provide

can

to the grave

in

full

prices

and

pail.

"cradle

security," "a chicken

pot," lebensraum, and a
No wonder

democracy."

Professor

von

Mises

calls

it

"omnipotent government."
All

businessmen

stitution

of government as neces¬

sary

to civilization and the

sity

of

of

some

contract

weights and

be

a

government

us

The

government

does

not

money'^ in the productive

sense

of the word. It

print

money,

can

or

it

up,

in

the

(3)

is

Our

the

cratic

pure

inflation,

deadly

creation

nor

It came

standard
the

frorri

of

of

living

the

Demo¬

Republican parties.
the toil and

savings

can

our

people—and the wisdom of
Constituional
fathers
who

ingenuity of the Ameri¬

safeguarded

property,

free

still occupied

by

the

new

short-term

offering

money

weekly flotation of Treasury bills-

investment

there

has

issues

policies

been

of

because caution continues to dictate

institutional

minor

some

loosening

investors.

far

as

up

To

be

sure*

extension oP

as

maturities is concerned, but so far this kind of operation has been
on a rather limited scale.
Switches, filling in of positions as well
as the rounding out of maturities has
helped the

activity and vol¬

of the

ume

distant maturities.

more

Opinions

to be divided

appear

to the future action of the

as

lieve its

will be

course

the

opinion

with limited

narrow

that

quotations

will

be¬

some

activity while others*

tend

to

move

up

with

a

fanning out in volume.

r

still

doubt

minds

"It

remains

in

about

is

some

the

ability

free economy to do the
job."

a

Keith

Funston, the

young

new

head of the New York Stock Ex¬

change, has been exhorting Amer¬
ican
in

and

men

America."

calling

in

of

Ivy

this

more

be
the

Baker

regard,

another

"know

capitalism."

Treasurer
Mrs.

"invest

Perhaps

might

American

to

women

Our

that

book,

I

study

and

called

it

must

reward

the

salvation

can

of

an

eco¬

them

an

Carlyle

But

be,

who

knows,

way

of life.

Lord

interests,

dangerous for good

or

15,

More Short
The Treasury,

John

which

are

through the

litt

books

recent

I

In

One

for

the

recommend

can

Lesson"

non-pro¬

"Eco¬

are

by

Henry HazFoundation),
"Shirt¬
Economics"
by
William
Paton

(Appleion-Century),
Earn

and

"How

Your

Living"
(Prentice-Hall).

Aug. 15 the 2%

on

due,

refunding

a

elected

R. A.

term

obligations

they

these

of

will

payable.

are

Bros.

&

Richardson

&

Director of

its

among

Miles,

Lofft, Gardi¬

maturing obligations

likely be

Maclnnes, Jas.

Sons.

Keith

in

members.

even

}V. M. Smock & Co. Opens
MINNEAPOLIS, Minn.—W. M.
has formed

business.

engage
Mr.

W.

M.

Smock

in the securities

Smock

was

when

they

given

are

some¬

which is attractive, there will

care

of at

Whether both

game.

time is

one

matter of.

a

to be fairly strong?-

seems

quarters that this will not be the

some

securities

the largest owners*

are

unless

though the feeling

the

new

operation

money

the government market
should

give

it

case.

pre¬

of

the

of certain followers of the
stay

on

Treasury out of the

to be in

for

from

recently established trading

to the intermediate and
term issues appear

activity

and

a

short breather

consolidate

money

its

markets.

gains, in.
They be¬

the constructive side, although

they do not expect that quotations will tend to

too far away

move

These ideas apply mainly

areas.

longer term obligations because the short-

to be in

volume

a

separate classification with the larg¬

centering around

these

securities.

The

demand1 is still very sizable for the near-term obligations because,
in

spite of the decrease in
whole

a

as

are

not

reserve

requirements, the commercial

interested

to

any

great extent

in

any

Treasury issues other than the stable and readily marketable ones„
which

are

the shortest maturities.

Some

Maturity Extension Effected

Despite the quest for liquidity which is still
has

a

there

have

;

seems

opportunity to

an

great bearing
has

been,

what investors

upon

however,

due

has

been

and the 23As due

been

1960/65

as

a

of

strong and

their

money,

maturities

among

issues, with the 2%»

the favored

purchases of the 214s due

these banks as well

very

with

It is reported that these institutions*

buyers of the partially exempt

1958/63,
also

do

extending

some

6/15/59-62

There

ones.

by

some

of.

few of the 214% eligible obligations.

Investors other than commercial banks have not been showing
too much interest in the government

There has been nonetheless

to

and

classification

certain of the deposit banks.

York Stock
Exchange, will
changed to J. J. Harris & Co.

Co.

these

a mys¬

Breathing Spell Now

New

&

these

refund

happen at this stage of the

inter¬

Effective Aug. 1 the firm name
of Harris &
Co., 11 Wall Street,
New York City, members of the

Smock

How

sizable attrition which is what the Treasury does*

a

conjecture

some

banks

To Be J. J. Harris & Co.

be

bonds become?

$7,986,000,000.

likely to be too much of

to

of these maturities will be taken

est

Membership:

used

lieve that the market will
the

Co.

W. A.
Watson & Co.

be

fol¬

to

S.

the 2%

15,

The commercial banks

thing in the near-term

the opinion

Daly & Co.
E.

Sept.

on

involving

tery because it is the opinion of the financial district that short-

which

Daly, Jr., R. A.

Vice-President:

attention

maturities will be handled is not

way,

Executive of the Security
Analysts
Association of Toronto:
President:

cash

its

series "C" certificates in the amount o*

Then

operation

Lewis

Canada.—The
been

of

care

You

by

Toronto Analysts
Elect New Officers
TORONTO,

offering to take

money

during this period, be¬

With

lowing have

new

refundings that must be given

(Economics

Really
Haney

;

There will be, however,.

most

evil." i

Refunding Anticipated

according to estimates, has obtained sufficient

needs for the July to September quarter.

not want to have
1 Three

1954, will receive interest until the date of

cause

Keynes, English Econ¬
omist and Big Government
en¬
thusiast, who said, rather iron¬
ically, "Soon or late, it is ideas,
vested

March

on

maturity, March 22, 1954.

$2,882,000,000 mature.

Maynard

not

taxes

easy

science."

late

market, according to advices.

purchases of the Vic's

as

well

as

the

314s by some pension funds, fire insurance and casualty companies*
and charitable organizations.

ing

away

State funds

at the 314% bond and selected

as

usual have been pluck¬

issueb of the 214s. Switch¬

ing continues in fair volume despite expectations that this type
of business would slow down after the June 30

period had passed.

com¬

Johnson & Wood Partners
Chalmers
Cimino

will

B.

Wood

be

and

admitted

Babson

Miriam
to

4

whereas other holders of these certificates by turning them in for

once

our

the

was

successful

a

the day of the

on

funds

warn

be

one
when the Treasury closed the
offering. There were other inducements'
to subscribe to the tax anticipation certificates in addition to the?
yield of 2¥2% because through use of the "tax and loan account"
the deposit banks are in a position to derive certain benefits,

States,
has said

not

dismal

the

it

is

Thomas

"a

would

issue

books

"I certainly favor

economics

so

new

economic education."

nomics

excess of $100,000 were allotted on the basis*
the eight-month 2%'% Treasury obligations went well
from the offering standpoint.
It had been indicated that the new

of 67%.

United

Priest,

To those who reach for

For

your

Certificate Issue Successful
Subscriptions in

is

Sanctity




of

said,

there

viously with J. M. Dain & Co.

extreme.

preserved,

measures must be es¬

peoples'

and does

which, without gold
equivalent production to back

the

regulation.
must

not

and

neces¬

California
that

considerable

us.

(2)

not

accept the in¬

give

The

is

anything. The gov¬
ernment can merely return what
it has already taxed or borrowed
from

lower

government

Claus.

claim that government is the open
sesame to peace and
plenty. Gov¬
can

years

as

ize

industrial

long

American

corruption
so

of

pany

apparent

change of ideas among Investment
of conditioning Analysts and
encourages a high
public
through standard
of
professional
ethics

countless government public rela¬
tions
offices,
a
few
economic

On

the

dangerous extent.

in-

band, nothing would

marketable and stable

election,
Reese
H.
Taylor,
President of the Union Oil Com¬

fosters

a

is

in

the

Secretary:

of

potential

put

stage

increase

Demand for these securities is still large and the ease in the moneymarkets finds the bulk of the alleviated funds going into thev

government, government McKinnon, Harris & Partners Ltd.
taxes, inflates, and inter¬
The
Association

to such

After

be

continued

the

hold

Treasurer: W. V.

of

could

the

government despite the large

people know? Commenting on the
strength shown by both parties in

ner,

Reestablished

role

socialized

a

well

blame

if

Burns

would Lord Acton's famous maxim

How

the

the

government market, aside from the short-end, because

great

lit

courts.

and

of

center

of

democracy depends on
knowledge, the question is: do the

Economic Principles to Be

capitalism, and with¬

watchdogs of competition

the

ing industry would obviously be
unfair, if not
entirely untrue.

capital¬

brilliantly

Thus the nub of the problem of
American capitalism remains the

and

a

the

country

mechanisms and motives of Marx

'nth degree, far beyond that found

out

"The

succeeded, in place of the mech-

for

if

great (the 530 dollar), that
depression does come, blam¬

The
issues

up

moment

scattered

he

$624

*

By JOHN T. CHIPPENDALE, JR.

so

sleeve

Special Deputy to the
of the Treasury, W

new

ized.

be

tion

nomics

milk,

eggs,

top-heavy
six works

(from

ernment

in

so

every

family in 1932 to $6,656 per
family today), the abuse of infla¬

fessional

business

in

per

about the Passamaquoddy
enterprise?
The
Lustron
housing scheme? What about gov¬

the issue of interventionism when

should

worker

Governments

on

Cfc

job-pro¬

for the government), the national
debt so burdensome

Bay

Columbia Steel Company: "Indus¬
trial power should be decentral¬
It

(5) Government is
(one

would

surely
one

needed

ducing investment.

that

progressive

industry
That

and

—

—

which

much

But

"Except

Reporter

dishonesty and have dis¬

couraged

the

Mid¬

Our

eva¬

doorstep of the government.

a

the Supreme

on

on

of

hand,"

western

that

onerous

at the

out of

three

sion and

so

premium

a

Much

to

banker told

are

of

of government. "It's gotten
a

Taxes

busi¬

scope

however,

What

such

thriving competition, business¬

men

with

scope

completely.

in

our

one

require

businesses,

industries.

profits

place

Accepting limits to the
their

wreck

of

next

regulation."

inum, meat-packing, leather, sugar
refining, biscuit, rubber, and other
lure

Business¬
who
(circa 400

on.

transactions,

I

All of which shows the

so

LAWS

the

pany from 90% to 50%.
Similar
trends are observable in the alum¬

irresistible

must

measures

would agree with Plato

B.C.):

ened instead of

the years.

installed, and

men

terrible weapon

interventionists is their at¬

sound money must be

a

(4)

they have put

lim¬

Distributing

BOSTON, Mass.—David L.

ited
partnership in Johnson &
Wood, 120 Broadway, New York
City, members of the New York

formed

Stock Exchange.

business.

son

Distributing

Street,

with

to

Corp.

offices

engage

in

at
a

has
40

Logan & Lewis Open

Bab-'
been

Broad

securities

DENTON, Md. — J. W. Logan,
and Lawrence T. Lewis, Jr. have
formed

Logan

& Lewis with of-

fices at 112 South Fifth Avenue to*
engage in the securities business.

,

26

(222)

The Commercial and Financial
Chronicle

Thursday, July 16, 1953

...

IF-

Iowa Investor! Bankers

Illinois

Gas

&

Electric*

Moore-

Funds Decide

McCormack; New York

To Hold Field Day
DES MOINES,

Investment
will

17

Association

annual

field

Wakonda

the

at

By ROBERT R. RICH
IN

Des Moines.

Midwest

Exchange Member
111.—The

of

the

staff

Group

schooled in the

was

of

investors,

use

curities,

of

low

unique visual presentation, preby Group to help fund

dealers

realize

Exchange today elected to mem¬
bership Kurt B. Karmin, Chicago,

ket

Illinois.

through

tSi

the

on

potential

of

over-all

mass

funds

plan-

Entitled

.

presentation

NATIONAL'

to

Build

Today,"

.

is

the

basis

tor

in

dealer

the

entire

its

New York 5, N. Y.

60

"uniiiiiiiiiiia

bh:-«■■■■■■■■

,

<■■■

VfELUNGTON

the

status

and

■■■

be

visual

is

cial program

"Mutual

/)■■■

/*■■■

AM ■■■

the

a

vestment

of

be

involve

rather

money

in-

dealer

a

and

Herbert

help

buyer,"
stated
Anderson, President

Group Securities, Inc. "As with
life
insurance,
where
maturity
brought an over-all planning ap1928

FOUNDED

proach

from

an

the

sales

of

on

your
or

value

investment dealer

philadelphia

mutual

the

buyer

proper

will

use

as

with

come

of

part

a

fitted to each account.
has

volume

of

increased

approach,
tual

And

as

insurance

with

will

this

the

sounder

use

of

mu-

as

they

i

,

.

iamily

visual

new

signed

,.

H

„

,

to

of

funds,'

presentation

tell

the

0

is

has

de-

Company

dealers

or

at 2529 Russ

from

the

Building,

San Francisco 4, California.

well

as

ear

°DT,ance

as

the

based

from

,

more

full

on

in-

the

presentation

made

information given to

prospect.

stock funds, as well as
industry classes, Group Secu-

common

its

rities

can

serve

wide

a

investment
to meet

„

ag

«--cePu'
ls

eu

objectives,
virtually every prospect's

THROUGH
and

'

Jnewyork
obligation please send

prospectus on

Canadian Fund.

ADVERTISEMENTS

Peabody and Co. have
lead

the

in

of

Kidder,

taken

helping investors

problem

the

resolve

selecting

investments, especially as to the possibility
of
investments
in
individual securities

funds.
partner
an

.to

of

Peabody's policy,
to
Arfiyas
Ames,
a
the firm,
has taken

objective
be

stand

observed

Address.

against mutual

as

Kidder,

according
Name_

in

the

rules

order to

avoid

on

investment risks.
advertisement now

unnecessary
City




e

that mutual tunds>

common

0f

for

stockg)

trust

substantial

a

funds

and

addition

that

of

common

are

dele-

no

In

an

under

"Wellington
Fund
Trust
Investment
vania,"

also

—

the

a

booklet

now

title

Legal

in

,

the

Man

Locust Street, Philadelphia

available

to

Securities,

OF

Association

panies, the Association announced
yesterday.

those

in

2.5%

of

average

'$95,785,373

in

the

2,200

301

of

Jan.

the

1

sharing

trusts,

25

present

be¬

it

Pur¬

Inc.,

to

be

tion

cerned

wel¬

associations

sales and 26%

of the Stock Fund's

sales

amounts

in

were

$25,000 each. The

large purchases
"We

evidence
in

the

of

to

investors'

Eaton

&

have

been

with

Associ-

Companies,

primarily

matters

of

of these

tion.

note

this

UNITED

confidence

Howard

FUNDS,

Inc.

reported

that sales of the four funds

Funds

are

to

tal

through

time

a

whei

at

place their investment capi¬
professional manage¬

ment."

the

close

of

semi-annual

any

period.

under

"irotal

'

sales

of

the

four

trusts

,

were

Eaton

&

Howard

$12,744,074, compared
$11,156,054 a year earlier.

Balanced

Fund's report to 19,600 sharehold¬
ers
shows 58% of the assets was

largest

gaih

in

was

the

in

gained $1,480,000, and the United

common
stock, and 42% was
cash, U. S. Governments, shortterm notes, corporate bonds and
preferred stocks/ Total assets of

The

decline

in

value

share

per

from $32.50 to $30.35 reflected the
lower price levels prevailing for

bonds, preferred stocks, and
mon

com¬

stocks.

Eaton

&

Howard

Stock

Fund's

Income

total assets of

$18,112,236 on June
30, compared with $17,015,223 on
Dec.

31,

1952.

entirely
chases
per

due

of

new

share

which

was

common

riod,

This, growth was
investors'
pur¬
shares. The value

to

of

the

Stock

about 92%

stocks

declined

Fund,

invested

throughout the
from

in

pe¬

$24.52

shares

showed

United
a

$1,411,000.

fund—United

A

Continental

new

had

—

decrease of

sales

of

281,000.
funds

$99,021,147, compared

was

with $83,402,656

a year earlier and
$97,793,029 at the start of the year.

United Income Fund's net assets
30 were

June
to

$65,211,377,

$11.76

ing

share

a

scares,

$]9 ^

o

share,

a

$12.53

a

$59,597,985,

$16,649,118,

against

share,

United

Fund's
or

$11.91

$10,031,149,

a

year

Science

$14,129,258,

'

Fund's

assets

or

$5.65

share%

a

i

Diversified Common Stock Fund

Diversified Growth Stock Fund

Diversified Investment Fund

Manhattan Bond Fund, Inc*

(CalifoT,r,;;s V

during the period included: Iowa-

AVAILABLE
YOUR

ON

LOCAL

THESE

MJJTUAL

INVESTMENT

FUNDS

DEALER.

OR

Cleveland

Chicago
Los Angeles

Hugh w. long and Company

San Francisco

Incorporated

Westminster

at

Parker, Elizabeth

3,

or

earlier.

Investors, Inc*
*•

or

pjjr1U',v"

0

Accumulative

were

equal

the outstand¬

on

against

shPT>o

United
assets

Fundamental

FROM

$1,-

■'

Total net asset value of the four

were

PROSPECTUSES

a

Science

Fund shares showed

to

$22.74.

Fund

gain of $238,000.

report to 4,800 shareholders shows

Substantial

Inter-

The

United

in

3, Pa.

Stand-

with

Accumulative Fund shares, which

portfolio

2,300

com¬

prising the investment trust group
reached a new
high during the
market values in all types of se
first six months of 1953,
topping
curities
have
been
declining,'
the 1952 previous high
by more
commented Charles F. Eaton, Jr.
than $1V2
million, Cameron K.
President
of
Eaton
&
Howar
Reed, President, announced. Net
Inc. "However, we have
frequent¬
assets, while slightly under the
ly found that the more uncertain
fall-time peak established in Feb¬
the
outlook
for
security prices,
ruary, still were the largest ever
the more inclined
many investors
especially

Bullock,

1,000

con¬

Federal

about $37,000.

gratified

are

ordinary

the National

Investment

a

it would

regulation, and Federal and State
taxation, as well as the gathering
and distribution of
industry sta¬
tistics, according to the Associa¬

exceeding

average

was

of

of

which

business,

charitable

ex¬

will

with

proceed

de-

Alkali;

Paper; and

in

functions

re¬

to

this nature,
addition to the
of

legis-

increases of existing
holdings ineluded:
1,300
Diamond

Firestone Tire;

decided

other categories of

mutual

a

the

Phelps-Dodge.-

be

ligious organizations, and by many
and

it is

committee

a

program

by 33 profit
fraternal and

social groups, 24 churches and

the

report to the Associa¬
tion's Executive Committee before
the end of the summer.
Should

and

invested

30.

that

for

American Cyanamid; 1.000 American Viscose; 3,000 du Pont; and

ard Oil

The Association stated

pected

fi¬

Funds

June

made

were

—

two

and

during the three months period
ended May 31 last included:
1,300

national

of

trustees, guard¬

organizations

shares

fare

of

Affiliated Fund, Inc.; S. L. Sholley, President, Keystone Custodian
Funds, Inc.; and Joseph E. Welch,
Executive
Vice-President, Well¬

shareholders—

new

them

chases

composed

President, Dividend Shares, Inc.;
Harry I. Prankard, 2nd, President,

period

ians, and others acting in a
duciary capacity, institutions
in

is

ington Fund, Inc.

Over

dldy 1 dividend,

1,000

assets

committee

Com¬

following persons: Henry T.
Vance, Chairman, President, Bos¬
ton
Fund, Inc.; Hugh Bullock,

corre-

same

Investment

the

1952.

were informed of recent portfolio
changes in a letter accompanying
additions

the

The

of

Nation-

fond managed by Calvin

New

pointed committee of the National

$11,906,517

than

among

the

of

$111,723,714
1953, compared

of

a

sales

average net assets of
in the first half of

with

by

operations.'

nation

Wide

two

for

industry is
newly-ap¬

company

studied

Pennsyl-

summarizes

yelopment of Prudent

1,700
ap-

pearing in leading financial media,
and

or

invest-

an

ment account proviats a ueicer
balanced program and a sensible
approach to these objectives."

booklet,

the

being

of

$93,833,114 on June 30 compared
fl- with
$94,486,854 six months earlier.

portion

stocks

mutual fund shares in

SHAREHOLDERS

booklets to investors

WALL

STREET

i

booklet

f

f

,

prudent and desirable investment
medium

utner

educational

an

program

years

throughout
the
country,
range of P
may be obtained on request
sufficient *rom Wellington Company, 1630

,

'Calvin bullock

the

.

needs

M
ONE

me a

weR

The

"Because of its variety of
funds,
including two bond funds, one
balanced fund, and two diversified

no

of

sponsors

~

s„. t
points out'

prospect, (4)
radiation, because of

the full

the

GENTLEMEN: At

TTr

on

efficient

and

'

Company,

,

,

professional, quali- three objectives at all times. Howa proper investever," the booklet continues, "the

a

program

enjoy

FUND

,

gation of authority is involved.
salesman
properly Fiduciaries
want
to
invest
for
visual presentation will,"relative safety, income and
profit,
in my
opinion, derive these ad- Because of the market risk invantages:
(1) make more sales herent in all
investments," the
with
fewer
ca^ls, (2) make a, booklet observes, "it is
difficult,
larger average sale, (3) gain ac-^if not impossible, to
realize these

formation

INVESTMENT

,

„

our

ment

MUTUAL

are

retail

using

fied to advise

I

following them

,

(irT1u;

complete, plan-

as

.

dustries.

Prospectuses describing these
funds may be obtained from in¬

ignore

$250 million Wellington Fund,

a principle of good
selling long recognized by other in-

"A

vestment

eye

■

ton

the

appeal

STOCK FUND

to

.

as

It

i

afford

can

summariZing the new leglS,
u1t
~
lation just published by Welling.

ning story
storv ioi
for dealers.
ning
dealers

COMMON

person

in

relations

investment

Over 19% of the Balanced Fund'f

ln Pennsylvania marks another
forward s.foP for trust mvestmerd by ^^incorporating into law
a .cor\cept and practice that has
^ail?e? Wlder acceptance in the
fa.st decade, according to a book-

the

sales

While geaied to the
Group Se-

curities

A

investment

^
RECENT passage of the
Sn°wden Bill making mutual
!unc^ le&a^ for trust investment

their

vastly increase

so

funds

.

|

funds,

that

manage-

re-

properly
become
part
of
each
nfr.son's nvnr-all
nlan
person's
over-all finanrinl
financial plan.

W&'/A W's/fv,

recommends

the basic rules of investing, particularly when so many conveni-

financial plan, individually

range

dollar

rec-

not follow

him

dent

long-

a

he

pro-

wise and
can

professional

emphasis ,?nt ways of
the full available."

funds to

is

D„rp.._

tail

3, pa.

of

earlier

policies,

before

trustees.

or

any

Prograib

feasibility of

public

soonding month of last year. Re¬
demptions were 2.6% of combined

classify

pru-

+'

Prospectus from

however,"

follow the right road
to investment success, the advertisement
says:
"The
important
point to remember is that no

the

R.

secu-

Suggesting
that
the
investor
allow Kidder, Peabody and
Co. to

than

security, and should
considered
by both
the

so

each

investment

If he

firm

to

The

six

six months of 1952—and sales
in
each month of this
year have been

policy' of owning inai-

the

first

corn-

three rules of sound in-

turn

counsel

the

Combined

larger

of

desires

securities

them,

in

period

21

tween

he

be planned.

can

Funds'

tnaii

Public

Howard

the

to

prior

of several

shows,

ment—mutual

iJoa

ol

low

a

during

17.4% ahead of the amount
invested in the Funds in the first

sale.

any

commended.

position,

Fund

business

the

into
Bal¬

were

or

and

on

&

Fund and Eaton &

According to Kidder, Peabody
and Co., if the investor
can
folvesting,

record the client's

funds

the sale of

are:

dollars
Howard

more

Eaton

six-months'

investing

gram."

ex-

and

wise

of

investigation

needs

ill
v

put
of

inuiuns

professional

carefully

sales-, vidual

a

manual

fol-

even

his

personalized finan-

a

which

embarks

of

Stock

possible to observe these
sound practices.
That is why the
investor should

explaining

investment

which

*■■■

miivi

or

to-

staff, who in the

will

planning form to
from

,

hands

instruction

■■■■■■■■■■■■

■——IIT|

days

With

men.

mm

leading

to

se-

according
to
Mr.
Ames,, "that
many investors do not find it easy

in-

to dealers and dealer sales-:

use

inan's
■■■■■■■■■■■■■■■■■

nimi

the

Fund's wholesale
next

rules

"Experience

comprehen-

a

aid

Distribution of the visual is

Established 1930

■mniiuniM

sales

in

of

"Regular review
rity owned.

insurance industry.

clusively

RESEARCH CORPORATION
•

sales

the family financial
planprinciple proved effective in

life

you

anced

panies to spread risk.

a

ward

or

NATIONAL SECURITIES &

120 Broadway

of

visual

the
your

the
new

form

sive

ning

Prospectus from

for

the

the

terview, employing
MUTUAL INVESTMENT FUND

pay

in

"If

They have three fun-

"Careful

15-page illustrated brouchure 10
by 14 inches in size, and provides

STOCK SERIES

invest

"Owning shares

"How

.

advises

to

example

each purchase

nln£*

Future

will

investors.

...

.mutual

it

the

firm

money

damental

mar-

financial

the

have

you

Distributors

pared

Stock

m

three-day ConferYork City, the entire

whclesale

a

Executive

Midwest

RECENT

in New

ence

CHICAGO,
Committee

vestors

shares

A

To Consider

INDIVIDUAL and institutional in¬

day

Club,

Air Brake;
Shamrock
Oil;

Steel;

Socony-Vacuum; and Studebaker.

Iowa—The Iowa

Bankers

their

hold

Sept.

Mutual Funds

Republic

New Jersey

Volume 178

Number 5233

The Commercial and Financial Chronicle

...

(223)
against

$13,773,522,

$6.15

or

that

,

a

share,

a year earlier.
Net asset value of
United Con¬
tinental Fund June 30 were

comparison
be

made

started

to $4.21 a share.

with

a

year

because

late

in

the

ago

can

in

December, 1952.

10,172,123,

the

the

ment

was

half of

Diversified

according to the semi-annual
the

on

the

six

Asset

months

a

paid

May

share

31,

of

in

value

consisted

DurinS'

the

the
following

the

Fund:

Common

fornia

be

American

Aviation,
stocks

ASSETS

of

of

the

added

to

Texas

Gas,

&

and

Gas

System

eliminated.

income, and divi¬
dends
aggregating 15c per share
were

place
P

Eberstadt

the

May

also

as

During

from

against

S5.10

31

the

the

Aviation,
Texas
Gulf
eliminated wort Columbia

and

Fund

SALES

for

1953

the

of

been

Sulphur,
Gas

six

reported

A.

the

figure

and

10

in the

J.

in

commercial

At the end of

that

roughly 320,000
from now it is esti-

the

total

will

neighborhood of

the half year

a

later start, should

$28.404,000—largest

least

a

comparable growth.

amounted

to

for any such
period

in

the Fund's

24-year history and up 11%
the like period last
year.

In

lowing

over

only

$24,289,714 according to figures

by E. Wain Hare,
Vice-President. This represented
1952

like

over

Shares; created in
months totaled 4.9 mil¬

six
a

gain

of

26%

over

who believe

mutual

of

this

fund.

a

new

low

Broad

redemption

Street

$3,000,000

left
over

of

new

funds

in

end

of June, total
$31,695,72,0.

net

and other

new

number

record

period,

total

of

shareholders

to

reinvesting

purchases

of

shares

periodic

under

Street Jnvesting's
plan.
Almost 7%

fund's shareholders

ticipating in

one

these

and

plans

are

or

accumu¬

this

now

par¬

other

of

number

is

growing rapidly.
A

LETTER

contained in

report of

the

to

15th

stockholders

anniversary

Chemical Fund, Inc., F.

Eberstadt, President, observed




home

of

more
,

.

be

nearly
'

at

pric^

a

,

within

consumption has
rapidly after ac-

Arnold

Hills,

Co.

&

the

I

which

advertising

section

Sunday metropolitan

of

news-

the seriousness of the

Recruiting Engineers

"

and perhaps more importthe education of our young

neers,

ant;

North

Calif.,

neering career must be a matter
priority in industry today.
To datG) you have been able to

0f top

maintain

wholesale

Boston

for the Pacific

pre-

tinued

In the

that

show

]y by 1960 at

less

than

Real

con-

progress

only from continual devel-

tion

to

installed price of

an

$2,000.
the

This is

number

in

of

^

tio^^o
tl0n s0

addihomes

merely

heating.

today.

the heart

on

as

to

look

can

future

a

I say this for the simple
that, as individuals, most
overlooking a great op¬
portunity to sell our profession
reason

industries

for¬

bright

as

of

as

attention to

a

labor.

And

General

Electric

Research

Labo-

the

important

these

on

uess.

capi-

extra

benefits

these

erty

to

not now at lib-

am

the

technical

de-

sized in the selling program, we it is sufficient to tell you that it
may again have to revise upward is such a great improvement over
our estimates of future sales.
anything available today that it
have seen the results

You

may

a

recent

nation-wide survey,
National Association

made by the

of

Homebuilders,

of

250

in

which 40%
builders ques-

prominent
revealed

they

®*

tmckness ot insulating

.

th•

wanted to speak to

Statis-

.

f

ph

utiij7ation
..

w...

the

...

scjentjsts

Pnntr;blltjnn

usefui

ha„ip

fnii

POnfrih,,_

insulation

are

tn

seibng

campaign

effective

they

basir

you

mnrp

programs

know

be

can

than

the

to

our

ready

are

supplement

can

the

much

imper-

to

enter

the

other

by appealing direct to

their

students,

their

left

You

In your positions of influence
and
prestige,
and
with
your
knowledge of the local situations,

the
has

must

we

approach; direct

methods.

a

product

profession

believe

story of engineering and the opp0rtunities it offers. A word-of-

Snri

makine
hpttpr

a

I

Therefore

take the personal

coBege.

;n<;.irp

p

tbp

of

otherwise,

show

^

teachers.

parents

Inform

and

them

,

of

the important role played by ap-

-economic'^andlociaTlife^as^reat Plied science and mathematics in
thev
LXie-y

a

be

u
1Idve

even

b
"eeri,

grea^er

'
die

'in

. °
going

tbG

t
10

years

a product so ahead.
Your
opportunities
unglamorously named the heat countless. But whereas
your
pump. In a sense, this but a sin- portunities
and
challenges
gle subject, for a home becomes greater, however so tpo are

$1 all-electric only when it is also
air-condi-• heated by electricity, and the heat

cooper-

But, is that enough?

before

your

about the

you

tics

distributed'

is

anotner

+h

T

The Heat Pump

ate.

are

sonai approach offered by other
programs. We must sell our professjon to capable young students

.

Pr^serits

literature

career

avnilnhlp*

mndp

arp

asked to

mouth

,

or-

<?nriptip<=

engineerfng

an

cobeges

more

to
offer
air-conditioned
this year - with thousands
of these homes in the middle and

low-priced bracket. This is a most
encouraging
sign.
One builder
went so far as to predict that in
three years time, a home without
air-conditioning will be a "dud on

printed

jmcK, in comparison to todays

™rfie~in

by

cPhninr<:VVin<:

will make possible the use of inw3lls onV one-halt inch

plan-

were

offered

insulation, I think

new

Government

nrnfp^inrml

industry are 111 doing
^
moLIcUtoLeineerJ™°studJLta of the ormortunities

and

reveal

tails of this

empha-

are

ir

Although I

benefits which this product offers,

student

Pan;7aSnnC;

tion that has just come out of the

does

are

S S

type of insula-

new

us

nppr;n£

air-

as

serious

1 said 1 would be negligent if I
failed to mention the subject :here

conditioning industries today. For
example, I would like to call your

moving

seHous^

which will be made all-electric by
use of some
type of resistance

benefits ratory which may well provide a
derived
from filtered, dust and great
stimulus
to
the
future
pollen-free air are great.
growth of the refrigerator busi-

of

Presuch

formula for

no

success.

comes

KME
thJ -T^010^
Havail"
able to the refrigeration
and

published

95-degree heat puts

a

strain

heavy

of health

area

about in

talize

is

aToTTo unit^win'L sX innTaT "y'earf ° e"gmeerS f0r to°

Coast.

Few

much

your

representa-

Inc. and Shareholders' Trust of

data

formula

a

been diet how many heat pumps will be

has

high demand for

a

products, but they are products, I
remind you, which have been, for

P^e^ely modern, all electric home
rw*1 °i? I ?
the most part' dePendent on
about $18,000 which is hardly high war developments. Certainly

by today's standards.
of
If is obviously difficult to

believe that the

industry

classified

The problem of recruiting engi-

Inc.

I mentioned at the outset that I

of' the

to

17,000.

in use in the immediate future, opmental programs, which have
Blua Rid^ Mutual Fund, ^seof the factors previously been crippled immeasurably by'

Air-Conditioning

one

of

situation,

dinary buyer even at the moment
as it sells in the neighborhood of
$3,500 to $4,500 installed. In fact,
General Electric recently installed
an air-to-air heat pump in a com-

the market."

use.

total

a

You need only to glance at the

the reach

h

expected

are

only

Paper to see

Te-

the

kernes

growing industries in

century.

10 years, if tfftf product is
good,
and the price is right. But it is a

is

tremendous

known

challenge, and it puts

premium

a

the

on

engineering

contributions

The
not

we

principle of the heat
a

new

for

have the

pump

has

It

one.

100

been

are

opare

your

'

problems.

everyday living, and of the

our

Personal satisfactions to be gained
trough an engineering career,
We must create a climate that
is so favorable that the nation's
youth will be clamoring—as they
should be

in

But

years.

If

I

astic.

t<Sbe

let

thought

—

to become

a part

of

it capita earnings, and social
in which your products will

be-

one

document

my

ism.

Generally sneaking I
it is safe to ass4.no that comfort
.

.

the

.

in

"sing only electricity

mostat

purchasing

any

It

tage

of

the

to

matiy

.

*

"

convenience.

an

time of the
is

tern-

I

think

'u

u

the heat pump has been

•

in

that

'

an

•

in-

advan-

tensive research and development

other

advan-

rtage for nearly 20

use

of air-

been

seriously
•

*

itial

success

v

in

years

marketed

^ 3n *wo years-

3

important to day-by-

day

living promises to create a
demand for your products that is

4.

£

and has
for
-4.

less
•

^rom its inthe

pr°Si0"
affect your

any

way

upon

ing

year.

interesting
~

oi.

—

uniform

full

arie

tages accruing frpm the
rnnrii+inninrr

provide
1

air-

yet

more

imagination

and

It

is

back

not

and

toward

enough to merely sit
take a passive attitude
work being done by

the

industry and

professional organi-

fuel and

as

peratures throughout the house at

conditioning unifc
Except for the
hpnpfit«
nf
cninSmPrtirvio rwuw
benefits
of
supamert.me
cooling,
have

to

,

primaff demand echoed by

consumers

come

engineering

°t

creativeness if we are to realize
changes our opportunities,

of comfort and

acme

Normal

likely to be overwhelming. Many zations in an attempt to attract
simple thereby eliminating ashes,
dirt, times, in such a situation, the im- capable young men and women
optim- and the need for chimneys.
It Portant thing is to maintain into our profession.
It is yp to
believe requires only a setting of a ther- Proper balance.
The desire for you, as individuals, to do a public

over-enthusi-

offer

me

to

growth,

per

can

appear

been accustomed to.

ever

population

increased

and must make in- convenience, for the heat pump
design
and - technological
im- is a device which heats in the
provements.
Winter and cools in the Summer,

we

IN

ckly

qu

classes

The growth curve of your busi- this fascinating business.
This is
tioning/is tod^ can become more pump is a most promising device ness jn the days ahead is probably an era of technology and we must
than a $5 billton business within for this job.
going to rise faster than you ha\}e continually replenish our supply

is

of

the

the

the

is

figure.

following

billion

a

dividends

making

that

a

of

137, J3egan

will

country during the next quarter of

investors increased

8,901. In the same
17! investors began auto¬

matically

Broad

that

as

tive

ning

year

minimum

fastest

assets

1,175
institutions

trustees,

those

predic-

homes

potential of becoming

the

the six months*
period,

individuals,

how

air-conditioning industry has the all-electric home and

first

lation

Beverly

named

Yet

systems

There is every evidence that the

half of 1953, with more than
$500,000 added in June alone. At

and

announced

Industry

more

rate

60,000

Potential

postwar

Investing with

folair-

about

are

recent

a

cepted commercial

23^-year-old

June sales of

$636,000 set

that

been

high for that month.

the

PERSONAL PROGRESS

tioning this

since

President

other

any

01 311 nome buyers.

PRnr.RFSS

HARRIMAN, RIPLEY

tioned

1937, according to Francis F. Ran¬
dolph, Chairman of the Board and

In

pfrsonai

equipped with complete air condi-

in

STREET

Investing sold
shares worth
$3,745,000 dur¬
ing the first half of 1953, to reach
the
best six months' rate
,

new

the

TeTe'd

exceeded -3,400. Mr. Nelson
sa*d ^a^
saies Sain was accompanied by a proportionate increase in unit purchases and by
about a 10% expansion in the
number
Delaware Fund dealers.

When

It is interesting to note that the
air-conditioning industry is already following the growth pattern of the refrigerator
industry,

1952

period.

BROAD,

25,000

of

us

home,

engineers.

installed and there

a

period.

the

were

tion

released

increase

consume more

than

now quickly the re
erauon engineer can design a

history.

We have hardly started to

show at

talked

was

about

.year,

the

year-round

war,

among

last

high

sales

the

for

immediately

years

conditioning

DURING THE FIRST six
months,
sales of the National
Securities Se¬
ries amounted to the
record

18%

produce

capacities

js +b£d its future rests ori-

TTrfly Tn
°n

er?

-

systems

the

reach

million-*-

a

with

Central

es¬

1952,

was

years

mated

months

by

installed

tablishments.

Sys¬

Wellington

fikst

were

Gross sales in

were

its

COoling

power

porj.ant

_On
«June 30, last, shares outstanding

air-conditioning units had

tors.

A

in

accepted

Product in the home. Equally im- any

Refrigeration Industry
tained

and-a-half units.

than

time

any

and

electric

ton Nelson, President closed the
half year with more shareholders
and more shares outstanding than
at

and

The heat pump will

preceding six

ward

Wilkins, Vice-President, Welling¬
ton
Company, national distribu¬

lion,

preredTnTsix

tte

over

practical

beating

irrnrdine to
to W
Lin
Tho Fund, according
W. Lin

to
in

'

a

technological problems related to year's

fir
first

the

year

Doehlti-Jarvj&.

RECORD

first

toi

The Future oi the

was

fiscal

American
stocks

an

the

for

COme

the

half-year, the com¬
companies were added
holdings: American Natural
Gas, Cali¬
fornia
Oregon Power, Deere & Co., North

just

873470
of_ M
$1,873,470

3

page

mon
sto.cks of five
to

!

reported
average

an

before.

of

tf

in

paid in

$5.33

of

ad-

industry ln
in
mauslry
to meet the

need 30 000

we

How fast the heat pump will be-

high

The Fund

chemis-

in sales of 8% and taearn-

Continued

the first six months
of the 1953 fiscal
year;
Net asset
value per share at

tem

ended

from

known*

well

are

the same date a year previI do not mean to indicate that it high school students to the beneously- The number of sharehold- is far out of the reach of the or- f^s that can accrue from an engi-

of

stability

of

statistics

over

report

ings of 9% for the fund's portfolio
companies during the first quar-

report on the
invests in com¬

Fund

science

stockholders

crease

year

The

resulting

favorable position
Mr!

stocks for

mon

should

the

semi-annual

Fund.

soundness,

the

in

were

approximately
twice
before, according

a

time

had increased to 945,530—up 17%
not

uncertainties that lie ahead."

Common

May 31, 1953

the

quarter

-

a

original

indication

an

the

growth

try

Sulphur.

from the

as

financial

vances

North

market

at

1953.
continues, "the
industry's combination

30,

chemical
of

assets

$50 964,467.
this record should

covers

June

Cali¬

Co.

Gulf

Columbia
were

at

$5,285,350,
to

Deere

Diversified

Stock Fund

of

Natural

Power,

Doehler-Jarvis

those

of

net

performance,"

which

Preferred—American-Marietta;

—

American

were

stocks

of $22.63,
capital gains
During the 15-year

construed

luture

°!

net

a

to

"While

of

half-year

companies

Oregon

Common
and

fiscal

•.!!

with

share

per

increased

$100,000

that

bonds,
16.1%; preferred stocks,
12.9%;
common
stocks, 69.1%; cash, 1.9%.
,

faces'
sales

toc Tnnths

include

to

total

span,

compared
with
earlier.
Holdings of

year

rFuna

value

distributions.

1953.

of

as

asset

adjusted

$6.63

was

$6.55

were

to

per

.

,

all

new

a

3 June 30YjL^to ^7™°%

wn

re¬

Dividends

share

value

date

the

Fund.

per

half.

7
$
to 23

1938,

i'«
18,570 twvhomT
stockholders

$32,980,480 as
May 31. 1953, an increase of
$6,000,000 over the year
before,

cents

Fund
a

i„

;!
July,

in

Invest¬

of

18

r\r\r\

The

It is estimated that

new engineering graduates each
year for normal industry operation, plus another 10 to 12 thouMay
1953.
Since
then volume product will be
determined by a sand for defense needs. Yet, this
has been maintained at a
high number
of
factors,
including year
our
engineering
schools
levelpower rates, the installed cost of graduated a mere 21,000 or only
xpt
Aiifipp PTTMn
v«f^/-i
the product, and the solution of half of our total need, and next
reached

1953.

were

.

.

dnfn

sold

SO

were

Chemical

of
.

ter of 1953 as compared with the homes where it has been
installed,
corresponding period of last year, we can see in it a key to the all-

""a of
T-industrial
*!ed?ral, RferYe
Board index electne
chemical production

wer

past decade and
~.

•

increased

of

Fund

port

the

wJm

gain of 973,994 shares

a

in the first

ASSETS

trusts

period

.

The

progress

over
mi

four

a

the

of

years

was

during this period is reflected in

was

The total number of shares
out¬

standing

15

war and
favorable
performance of the chemical industry
inflation.

No

fund

first

history

s

Test
riktf.rhanTe0
rest, Ifhnr
labor disturbance,

$3,-

031,394, equal

the

fund

27

few

thousand

insistence

quality products. The buypublic demands a
superior

has

never

There
conquer

Product. You have brought your
industry forward by sound plan-

your

ning

^any

good product

a

and aggres_

sive merchandising.

I

would

^3y

be

^ ^aded

another

most

negligent to-

speak also about

problem that conyour
industry; the engineering manpower shortage.
fronts

serious

challenging fields to
which far outweigh our

pioneering

only

SUCh 83

been equalled.

are

past.

Significant

contributions

have

0pp0rtunities
if we have the

He

as

been,

ahead!

engineering

talent to meet them.

The promise of the future
very

great

realization
our

hands.

indeed
of that

.

.

.

and

promise

is

is
the
in

,

28

The Commercial and Financial Chronicle

(224)

...

Thursday, July 16, 1953

u

Continued

from first

fill

Shouldn'tI Americans
Americans
Why Shonldn
Have Gold Coinage Again?
coin

in exchange
those who were

gold bullion

or

To

money.

by this circumstance Secof the Treasury Woodin

retary

proffered
ulous

'It

ndicmisleading to say that

reassurance.

and

is

have gone off the gold

we

ard

stand-

any more than we have gone
the
currency
standard,' he

off

But within

said.

ecutive

order

month

a

ex-

an

the

forbade

hoard-

ing of gold coin and gold certificates, all gold was ordered turned
in to the government and so far as

Nor are we here

unconvincing

there

only
in free
is

gold

hoarders

'

.

..

being

are

sua-

ODenlv bv the authori-

ofSoXIf^

concerning our- Rhodesia, Australia, Greece, etc.
of those The governments of such countries

who

belong to the managed-cur- are able to withdraw in the form
rency school and, therefore, op- of
gold at $35 an ounce dollar
p0Se this country's resuming gold balances
which they
may
have
coinage at any time. That school available here. The efforts of the
regards the door as permanently International Monetary Fund, supshut against a return to the old- ported
by the United States
to
fashioned gold standard with gold
clamp d0wn on sales of newlycoins held and used by the people, mined
gold
to
hoarders
have

leaders, President Allan

It

only the

is

of

£®ice

*

...

-

-

..

nv,

lished
in these
these pages.2
pages.2 This
This leaves
leaves ~n~
lished in
ady to 49% 0f new production
for consideration the position of their sales of gold to hoarders.
as
those who list themselves as fa,
wolllH
indPPd
be
desirable
other, gold-convertible voring restoration of a system of
.
t
M
cnrnni
if tnr

With the dollar separated from

gold coin at home
-our
monetary unit
in terms of
units

abroad

such

franr*
HpcIinpH
franc,
declined.

the

of
measured
value

the

as

French

Who—

;+ a.*j —4
When it
did not
decline fast enough for Washington the RFC gold-buying program

v.

,

.

ends

But

Those Who Favor It,

in

...

L

^

i

Reserve
a

of

Act

form

This

-

*»

been

has

1934 by

1934,

adopted

we

gold-bullion standard,

of

maintained

since

the redemption of foreign

government and central-bank dollar balances in gold
bullion, al-

subject, however, to -U. S.
Treasury approval. The right extended to foreign authorities owning balances in this country is not
ways

automatic,

was

as

4U-

the

once
•

4

ppHeraf ReSrv^ Rnard^ nnwlrt
S
to compensate therefor
™a"y #Sf-f

crease Public confidence in the
ncy and uin th* government,

5, .shou.ld p*rbaps bce res*ated at
t +P°
?
Sprotd spoaks

g0fd-redeemability
gold-redeemah,l,tv

monetary

sys-

The Republican Platform

flfpif
then

economic

of

in
in

advocate

.,

the

a

following

its

exercising

functions

the

in

|mmU,he T^as^^'th^S

House.
iIouse*

'(2) To restore

econ1-

will permit the realiza-

as

biUty
such

aim

our

plank

tu
l'iccilc
a
cuxiuinssion
to
create a
commission
the gold question and

report next year.

iiciu.igway is noi me only
Mr>
Hemingway is not the only
to

one
one

of

be vague fears as to

enects

^dltab^
currenc7based
on a
^^c™
t^d ^
...

such

dollar

a

on

a

time

to restore

the

as

an

world

is not the time

American gold coin-

be

never

Camps

of

Standard
Americans

such

Gold

standard

in

should

into

should

who,'

of Amer

(a)

a|-

an

the

ounce*

presenf

gold

raised.

in

gold
here or

bullion

With

the

official

views

the latter this article is not
cerned.

(b)

perhaps because they

elsewhere, first want the

The

elsewhere

those

and

financial interest
or

never

coinage restored

]a^er

$35

xrot

may be di-

groups'

such

gold

think
n

tn

Proponents
two

or

of

we

fal

not endorse

coinage also

want

full
but

return'

it and think that

lean gold

camns"

principle
not

return to it

'

gold coin

a

(b) those who do

price

allow
of

our

these fears of international reper-

domestic effects. To this topic we

w0ldd

y,e public in

foreign
that their

writer

reasons

has set

forth

why ;this coun-




return

a

,¥rSproul s address ment£0"ed ,above; In 1949 Mr- sProuI

hoarding de-

were not,

mands Horn all over the world
would tend to converge upon this
country's monetary reserves. Cirfmvention of the exchange con-

are

the preferred

too.

Were that

If

bv

fact

did find

S

U

U.

new

S.

gold coins

their way into free mar-

gold-mining

coun-

11
tries like South Africa would r»a
call

qmaTler offer£o1 correspondingly srna ei^^
p

*

—

•

newly-mined gold,

ln6s

fi,,

premium
P^mium price be
oe eradicated.
eiad ca
. Or ,

« ^ supply of new U. S enlH
coins or other gold
yere
^ere added f°
to undiminished of
offe
e ^n§s by foreign gold-mining counJn.Ss
counltries (other factors remaining u changed), the remaining premium

ioinsmo?^ gol^from thisc|npaid

by

duce

G1 benefits to the level

our

of those of other countries' vet-

double eagles

or

in

newlv-minted

foreign

'

Present Treasury Departadmil?istration gives every
indication of advocating no change
u.
o.
muiieiary
V*
mor|efary gold
gofd
Policies- Various members of the
Congress by letter
conversation
i v ci act noi i

or

have
nave

tne

,952
2

P

J°hannesbl" «• December

'

"Commercial

3 Address

.

and

before

Financial

p.

Chron-

hoarders

Possible

International

Adverse

There

is

one

return to U. S.

in

way

which

a

gold coinage might

have adverse international effects:
if

it

precipitated

serious

trade

tional

a

depression

recession

repercussion,

does not

Com-

or

this

in

...

PP.

A271-3.

'

as

damper orn

the general publicare large numbers of Amer¬
who tend to spend money
by

spending
There

icans

they have seen how

because

the

has rob¬
While it is
intended here to argue that

inflation of recent years

them

bed
not

of savings.

inert gold is always preferable to
mismanaged currency, if gold re¬

deemability tended to reduce the
amount of general spending at at
flationarv
be

an

and intendencies, it would not

full employment

of

time

evil for this country

it

If

again legal

were

with its

stock.

huge national gold

to own

of dollars

this

although

he

gold. The way would be opened
a return of the gold clause in

public and private contracts. It is
not inconceivable that under such
circumstances the Treasury's debt
funding problem might be some¬
what eased. Considering the grav¬

of that problem as we have
it exposed in recent weeks

ity

seen

amelioration, however
the good.

any

The

case.

Treasury

U. S. Stock

to

opposes

posits resting on our gold reserves,
adequate by historical experiencedo not go on record as regarding This gold stock belongs to the na¬
the gold-coin standard as "aban- tion, to all the people; and if it
doned" for good. Doubtless they is a luxury for a modern nation
are ever cognizant of the indefi- to allow its citizens to own gold,
any

time

But the

soon.

promise of the 1952 Platform,

it better than
or India, or
Mexico, or Egypt, or Uruguay. We
are always preaching freedom of
the economy, free enterprise and

surely we can afford
France,

The Treasury's Position

is that gold

redeemability is

attribute

a

of

sound

one

but
only one; that return to a sound
dollar must proceed by steps; that
before we take the step of issuing
gold coins with all that that im¬
money,

doned" the
Hopfi

plies, we should have a balanced would be possible if the public
could draw gold at will. However,
budget .....
and put
F«» the
u*t vast
vast Federal
reaera.
debt on a sounder basis through Dr. Arthur F. Burns, head of the
Council
of Economic Advisors, in
funding operations. One further
condition the Treasury sets: world bis recent report on business qycle
conditions must be more stable research, questions whether the
than they are, lest internal con- government is today able to assure

One

might perhaps state the
of

the

policymakers in another

po¬

Treasury

present

way;

that

Svstem

.

WflS created in iyi3

as

not quite share

moreover, they do

the view that the full gold stand-

gold-coin standard. In

the Federal Reserve

to o

«„nh

se

sue

that resulting from public with-

doing the man¬

aging believe that they can do an
ever so much better job of it than

sition

reason, he states,

But our money system
the "managed"- class

and those who are

ioned gold-coin standard

that in 1933 the country "aban-

Greece,

in

remains

like.

propor-

or

like.

the

us

our

of Gold

There is also

gerous pressure at critical times,

the

slight,

would be all to

vertibility of the dollar exert dan-

on

currency,

for

elsewhere in his speech the New
York banker rejects the old-fash-

so

BtT^rLSXrr arbitrary and extreme influences"
23, 1953,

bullion

extent serve as a

specifically. But

say

.

of

well—would to

gold
some

in personal

found
round

-

The Treasury's present position

tms writer uniiKeiy.

is (f.

Chamber

for use and as a
savings—and, necessarily,

available

coin

—

H. b. official policy of today couid
bardiy fmd reason to complain.
Jhat tbe }^gal.or pll gal T? ^
«°n of gold coins from the United
States would increase the already nite
widespread circumvention of exchange, controls overs as s

which those countries badly need
ior essendal supplies or for development Purposes would be di- precisely for this
n

home

this to be said for
a return to gold redeemability of
the dollar within this country: the
subsidies to gold mines; it frowns United States holds a great stock
upon suggestion;
suggestions that American of gold, great after all allowance
gold mines be given access to for possible foreign claims there¬
forejgn Premium markets; it defi- on and, compared to the volume
njtely does not favor a return of of money and demand bank de¬
be the

-

a public run
see no immediate urgency
on gold coins tends to have mul- they
the
tiple deflationary effects. It was for a return to gold coinage; that,

,

would
confi¬

American dollar at
and abroad. To make gold
the

in

in

sovereigns

'f?ls ?f °ther countries would be grounds that with

,

redeemability in gold coin
tend to strengthen public

cannot afford it

_

st'mu'aied' and dollar supplies tional-reserve system

7777

internal gold con¬

public-debt and other obligations
would in effect again be payable

in pa '
country. The whole world fears
"Moreover, if only the United the consequences of an American
States dollar were convertible in- slump. It may be that Mr. Sproul
to S°ld while practically all other has this in mind, as an inter'nacurrencies

ahead of

come

vertibility in the strengthening of
the dollar? To the writer it seems
that there are some good argu¬
ments on the other side. Certainly

deny ourselves of what we can afford just because someone else

newer

as

s

of Me," Nov. 10. 1949,

con-

of

the

public debt is again on a sound
basis; and when there will be no
international crises? Do all these

pose it is not our responsibility to

Some light on the international

may be shed by

time when

budget is balanced; when

coins;

desirable

os

Effects

aspect

Will there ever be a
the

neither more nor less- In countries
where various mintings of British

shall return below.

td gold coin here
this

Onnnso

standard fall into two
those
who
endorse
a

mining

cause

wfi

s0

that now i3
return to the. full

gold standard.

store of

gojd coin

a

Coin

Proponents

who

country's returning to

a

dojng

our

are only
that we

Treasury chiefs, unlike Mr. Sproul,

repercussions

those

^end to

*
tfmfi

js nQt the

nQW

mjnd

say

®Jir?ma^d.' a rf.sult abo"t whl^b

time'

2iave

but

jn

we

than $22 billion gold stock to take

to

some

when they say

not the time to

,

w9uld tend to be reduced or even

decided

This cussions do not spell out' their
millenium. ideas. It may be that the allusion
Administration to possible international repercusin
mind when sions covers rather some fear of

now

there may

now

^

Conceivably—and
guessing—those who
jessing—those
who
should return t

being

S.

Probably this is what they

mean

dence

indi-

U.

viduals to have

the

have

they say that

vided

return

more

the

achieves stability.

spokesmen

price

the

on

clearly

may not be until
If it is this that

who

what to the writer

express

seem

S^.f^rntherroiintHes
otner countries of the
mnefl srates returning to a go d!

rests.

gold and if any holder
could get gold for his

kets abroad in quantity, the pres-

internal

distant

•Two

should

we

mere existence of such demands

.

ent policies of

promises a home and put under the mattress,
gold-converti- if they want to be so foolish? Unof the dollar, but only at fortunately,
those who express
to

economy

and

ae

apprehension expressed in
and to use °ur
our
infiuonoo
influence
Washington. Just how would other
world economy, of such stacountries be adversely affected if

return

we

are

Theic

gold coinage. One sometimes hears

domestic

a

fully convertible gold basis."

age,

/Thprp

...

,

This

that

redeemability, but not yet.4

J

are

Strengthen

Other "Deferrers"

System

-•
..

money and credit system without
pressure
for
political
purposes
from the Treasury or the White

tion of

state

those
vilVOV

vx

ments Wouid grant them; but the

mi in

,
*

-A-

bility

*

Diaced

make

'(1) A Federal Reserve

a

cur-

of

can

™?al™lnS e" the Sold they ca

eagles

monetary policies:

omy

the

position
^
^

u

ernment's fiscal and financial pol-

a return Congress
' -1^
J
plank which
to study

ihn
the

reads:

ior

who
to

the

to

ljons of dollars m gold the while countries to demand
see* eY®J" "^^subsidies irom governments do likewise, whereas
f"e
few foreign countries have the
'b° „f.ffiano„Lp ifiMt g0
,° spar,e for suc, an end- If
aP"<*g °*
°"
ls,
'such demands arose abroad it does
bnaPrding„ af. the sold thev
,foIIow. ,that f°r«'Sn govern-

icies, Mr. Hemingway would like

wu—~

/

rnin
coin

"We

to

lffp
life.

ppnnomiV

1952, however, suggested
COld
gold

of
of

whereas this article is ad-

ap" many ^hings t0 conslderhoarding medium it is most doubt- Philosophy to guide us, we should
hbvg sbsndoncd the usg
Psnding assurBncc on oui govthst tboso coins would bo disbsck to mcst rationing and re-

i

tO
to

velopment instead of hoarding bit-

re-

of,195^ r

h

tn

'Of gold coin in our

tern.

such

tor

essential supplies and de-

as

V V X ilV/lJ

JyS

we

Messed

national econ¬

of the stability so much de¬
sired.
Implicit in this viewpoint
is perhaps the feeling that some
unexpected
world crisis might
loom suddenly, in which event it
might be hampering if the general
public in response to mass psy¬
chological
considerations took
control of a Sizable fraction of the
reserves
on
which our whole
credit and currency structure

•

J°^.the
Predominant
group which
believes that
should never
believes that we should never return to gold coinage and internal
do gold coinage and internal

.,

„1 nr>:oli.,

*♦ "

entirely

nee
use

*n~

id

wn,

J°Ju}?„ TiSlf lul

committed" without

is

WP^ arp^ attpmnHnJ

victorious Re-

TP'owf?%
In fact

F»rt'gn goId hoarders might m- might serve to press the governdeed show a" interest 111 acqpirxng ments concerned toward sound fi¬
question to a sound fiscal and fi- some n<™ American gold coins, nanml pohcies.
Even if a few
nancial policy. We should know wfe wet
1 ssue them following a foreign governments were, as a
that our proposed action will not .return t0 the. gold-coin standard, result of our example in returning
be harmful to those nations with for reasons of curiosity. But those to a gold coinage forced mtd fob
which we have military alliances hoarders are in the mass not nuowing stub without Possessing a
because we certainly do -not want mismatists and, as gold, napo eons g
q
...Pu "
-We should know that our gov-

ernment

m,,,,

in

hC0U;n
IfpnHsrH?
iian?u
.standard
Until
the
o

SSp ?

case,

in the gold standard but
believes that, before we return to
g°id coin in this country;

"ever

u

~

dollars

their

October, 1933.
ot
w
By January, 1934, the government
Mr. W. L. Hemingway of St.
was
-was
stabilize the Louis, for
lor example, a nationallyready to again stabilize'The
external value of the dollar in known banker and former Presiterms of gold-convertible curren- dent
of the American- Bankers
ties and gold and, by the Gold /Association, lists himself as a beinstituted

was

"

"
'4
Upited States gold coinage, "but example
examDle the
the French
Frpm>h were
were'tn
to
——

not now."

c,„,a

Privilege of gold-coin
convertibility, would withdraw
more than a modera^ a™unt of
such coin; moderate in relationito

"«»

...

'Lg,a"f

mediate

OP

....

reason

nQ

ard will assure the
omy

V

ineffective

proved

the Federal Reserve desire not to see the premium
the man in the street could tell, Bank of New York, set forth the
completely disappear that
Price
we
were
indeed "off the
gold arguments 3bly
ably and in detail in causes
certain
important
goldcton rlorrl"
Ko
21
standard"
as he had known it.
an address in 1949 which was pubpwwmining countries to limit—genermining
limit—gene
Sproul

^

®,

a

selves with the arguments

One of its

Mr. Sproul

No Rush for Gold Coins

Today, when
small premium on
and black markets

now

try should not increase the price
of gold.i

alarmed

drawal of gold coins,
holds.

^sanS^st --sr&swssi wts
abroad

for

~

With all respect for Mr. Sproul's

?

*

interests of

selfish

the

to

hoarders."

ft

U

PL.

verted

page

the stable economy we

Eisenhower's

President
ments

should
argu¬

overconcentration
in Washington have been

against

of power

spread

to

from

every

corner

the

of

Freeing the nation's gold

country.

overconcentration

hands of

in

Washington would

the
per¬

fectly fit the Eisenhower philoso¬
4 In

the

"Commercial

n.r-=-i-»
^

£

Spahr

presented
^.vu,

n-«

in
rue

of

m.

New

detail

and

1 Q4Q

York

««A

Financial
P—Wal-

University

Reply

uoia standard."

to

Mr.

phy.

When Mr. Eisenhower sug¬

gests that we do something about
overconcentration

Washington,

of

power

he-cannot

be

in

pre-..

1

Number 5238

Volume 178

The Commercial and Financial Chronicle

...

i

(225)

i

sumed

to

that

mean

is

now

not

the time.5

In this respect now is as

ers.
a

time

there

as

good

will be.

ever

Mr. Charles E.

Not A Panacea

Perhaps
to-

should be said,
now is not the time
trust and our fate

it

that

rather,
put

our

wholly in the hands of Washing¬
ton. A return to gold coinage,and
an
internally redeemable dollar
would not be a panacea. It would
not
mean
the scrapping of
the
Federal

the
credit
management in

Reserve

^elimination

System
monetary,

of

economic

and

or

It would not deprive

Washington.

Congress and the Executive of the

right

enact and use such de¬
changed reserve require¬

to

vices

as

ments, open-market operations in
Ibonds and flexible credit controls
for

the

the

effect of

of counteracting
contraction of the

purpose
a

gold stock through public hoard¬
ing.

In

time of national emer¬

a

gency such as war we may be
that no modern country will

.-sure

allow its hands to be tied by lack
of

gold stock in central yaults.

a

Wilson, the pres¬
Secretary of Defense, in 1951
expressed
the view
that
"gold

ent

In other words,

should

be

considered

for what it

two-thirds

the distribution of
of

to

portion there¬
holders now need

private

cause

no

a

concern.

Moreover, gold

privately hoarded is not lost
It

ever.

again
be

tends

into

find

to

central

taken

for

its

vaults.

granted

for¬

If

It

that,

has

worn

off

coin

large part of the

a

issued

will

volun¬

be

tarily returned to the government;
and

it may

be called in again, if
If the Administra¬

need justifies.
tion

accepts Secretary
Wilson's
view that gold is "just anothet

commodity,"
time

as

is

now

to

^benefits of

be

a

argued

Jusory, can it not be replied that,
after

all, the gold really belongs
Tto the people and if they want to
take some of it home, where's the
iiarm?
The

against

case

American

an

-gold coinage and internal redeem-

be stronger if the

ability would
United

States

were

have-not

a

country or if there were signs that
the world's so-called "dollar gap"

coming to

were

end, as through
a negative bal¬

an

the advent here of

buy

good a
persons who

let

as

of it.

some

tainly, if events

be

in

occur

the

se¬

mentioned, gold coin will

quence

blamed for the recession.

The

day come to pass, but
they certainly are not yet on the Administration's opponents will
horizon. There is no prospect that lose no opportunity of that
sort,
we shall need our gold to pay for
just as they have not failed in re¬
some

.may

the

Rather,

imports.

necessary

prospect is that we shall continue
to receive foreign gold for which
have

we

rica's

no

need; and South Af¬

goldfields in the
'Orange Free State, which are beiing

great

.American

Mr.

that

Sproul

saying
the

"abandoned"

have

we

to

yet

in

right

is

of

help

the

with

dollars, have
production.

into

•come

cent weeks to attack the

for

•gold standard, if by that he means
that we have abandoned a strictly

The process
<of abandoning that sort of cur¬
rency has been going on a long

its

As to this
return

a

be

if

But,

retention

the

1933.

antedates

much

and

of

gold

in

monetary system at all makes
.sense, gold should be something
more
than, a tally for recording

as

reason

to

the

assess

aid

to

other countries.

Actu¬

ally Americans in influential po¬
sitions

have

regarded

U.

S. gold

as just that: as aid to
Britain and the sterling area. Thus

purchases

•during World War II, when our
gold mines were closed by

•own

priority

order,

•government

was

given to mining machinery and
supplies for South African gold
(mines.
If we are acquiring gold
we neither want nor need, merely
for the sake of

helping other coun¬

should be no objec¬
the Treasury's reselling the

there

tries,
tion to

metal to private
5 In

his

speech

American hoard¬
the

Garrison

Dam
:in North Dakota on June 11, 1953, Presi¬
dent
Eisenhower alluded to the danger
•>that
"too
much
power
will be concen¬
trated in Washington and all people will
Slave to look to that far off place to say,
"'What may I do and what
may
I not
•do'

.

at

ting

American

the

people

promise to the voters
'last Sept. 20 at St. Louis, Mo., might be
■cited as applicable to the subject of this
article.
'"our

There

Mr.

immediate

Eisenhower
four

aims"

gave

noints,

as

the

third

being "to decentralize: That means
administration which is determined ef¬

bring government close to
It means also faith in the
■people to act more wisely in their own
Ibehalf than can a bureaucrat removed a
thousand mites from the scene of action."
fectively to
'the people.

supplied.)

•{Italics
At

gold again "but not just yet."

Seattle

attacked

on

"the

Oct.

idea

of

6

Mr.

Eisenhower
Federal

wholehog

We
of

conclude

the

United

redemption

that,
the

the

■who

between

difference

still

politicians
believe

in

and
the

those

power-

the

rest of us
basic American

institutions."
All of this may
coin

return

a

gold-coin

and

sources

other

cumstances.

dollar

inter¬

has

pertinent

This

writer

desire to hoard gold coin,

no

he

sees

terfere.

good reason to in¬

no

is

It

unlikely that
gold which Ameri¬

very

the amount of

would demand, were the dol¬

cans

lar

today

made




the

to

What

do

not

fact that

is

a

from

a

good

internally

con¬

the

but

replies

I know from

if you are going

that

news¬

big dividends

do

to

cam¬

only half¬

are

can pay

have

you

sales¬

properly.
of

stack

off

pay

newspaper

experience

leads

paper

that

reasons

do not follow them

obtained

two

things

to collect them.

name.

To

If

Your

want

you

tired

Your

people

Advertising

Prospects

to appeal to re¬
advertise
so
that

they will see your ads, and that
they will be attracted to you and
will v make
a
reply.
Advertise
income and stress safety of prin¬
cipal. Don't expect as many re¬
plies as you would when you go
after speculative accounts.

Telephone

him

occasion¬

ally.

Become acquainted
phone. Invite him in to

over

the

see

you

^-its

surprising how this reverse
technique will sometimes work
well.

Find

interest.

phone
it

is

out

Make

a

available

prospect's

your

note of it.

information

to

about

Tele¬

him

when

anything ot

interest.

Try and draw out your
prospective customer. Remember,
all

is

First—Gear

cir¬

himself

but if other Americans wish to do
so

due

men

nally "sometime" is desirable, the
reasons for delay are not persua¬
sive in the light of our gold re¬

grams

always
The

that
that

reply

a

to

have

you

an

becoming

acquainted,

that

prospect

your

terested

in

ad

means

REASON

a

and

may

securities

and

for

also

be

in¬

invest¬

ments.

Keep Records
If you meet

time,

either

in

or

main

have

people for the first
the

over

them.

telephone
down their

write

person,
interests

that

so

I

you

made

once

a

will
sale

policies

it

may

not

we

are

we

may

barking

and

that before

the

on

broader

Administration

the

those

This

is

devices

been

fully

would

be

em¬

strategy

must

have

of the toes that

aware

pinched and the howls

that would arise.

policy
votes
or

An

always

can

than

inflationary

garner

more

inflation-resisting

an

counter-inflationary policy.

this

country

take

the

bitter

monetary reforms

adopted by such countries

gium

and

World

the

War

Those

the

the

hold

very

listened

voices which said:
is

the

not

is

Money

"Later,

to
yes;

few

they

thoroughly

Although

a

on

right

gold;

structure

the

of

public

to

but

we

holding

gold.

when

full

the

public
country

employment cannot

"afford" to allow any of the gold
stock

to

afford

to

is

this

when

employment

If in this respect now

the

time,

tomorrow

will not

be the time.

The

"international

sions" fears about
USA

to

hands,

full and business has

contracted.
not

private

will not be better able

less than

is

into

go

it certainly

grown

every¬

it.

whole generation has

without

here

up

world's

repercus¬

return of the

a

now

unsubstantial.
is

economy

remem¬

eration
the
ues

the older

as money,

in

gen¬

part still survives and

gold-standard

debate

contin¬

intermittently in financial and

academic

circles.

gold is the

endures,
tional

The

essence

very

laws

idea

that

of money still

much
and

a

point.

are

Ap¬

salesman

great deal

a

ad

newspaper

who

had

operating,

was

sufficient

answered.

have

shown

originial
Keep all leads
some

interest.

Telephone

them
occasionally if
haven't been able to make

you
an

ter¬

rural

a

was

that

sold when the

appointment to meet them in

person.

Keep

records.

Learn

alive.

Na¬

international

If
to

applied

As

the

to

appli¬

return of the United

a

sometime
If

was

fact.

Gold,

deisfred for
'

m1:

personal use, today retainsiis

un¬

States

gold coinage will be desirable

time

is

time

is

desirable

is

it

time

the

is

coming,

not

ourselves of

yet,

the

then

it

then

we may as

now.

the

But if the

already here.

coming and

tain

75

and

the

than

leads

100

to

cost

each.

$1.00

salesman would
of

20%

of

less
rural

average

an

the

that

leads

city

This

1%.

complained
his

the

Yet

close

ad

an

was

his leads and the city

about

man

from

lead

per

was

man

of
the

quality
poor;

very

country salesman made the sales
and
he
made
the | calls.
The
enough
salesman

by

It

either

many

leads

sell

or

else.

selves

don't

their

use

There

to .follow

diligently.

and

'

out and out curiosity

are

is

not

well divest

some

clippers,

waste

a

reason

of

most
time.

them
for

of

But

other when

or

peo¬

ple answer an advertisement that
is clearly worded, and makes an
offer of information concerning

investments,
income

to

either pertaining to

for

or

must have

been

speculation there
a
strong interest

the reply to the ad.
up
by
telephone.
Try
appointment.
If you get
make the call and try to beprompt

Follow
for

it

an

»

come

acquainted

basis.

Endeavor to see what your *•

green

use

15-5/21 grains of gold ninefine
-

but

printed

as

paper

a

piece

of

measuring

2% inches by 6-3/16 inches.

prospect
his

is

interests

on

driving
—

obtain

a

;

gfl

of

as

monetary

are

friendly

at—uncover "
his

list

if

good impression,'5
then follow up.
If you can't see
your prospect in person, keep the =
you

can—make

a

YOU

ABC

repeating.
News¬
leads can pay off but they

got

Leads Are Good

Not All

fellow's

TELL

bears

and

dig out a way to make the right
approach, cultivate good-will, and
bring in the account.

other

won't make sales for you—you've

Too

heads

it

paper

substantial margin

a

he didn't waste his leads.

was

but

city

because

the

MORE than you tell him.
This is all pretty much

of

any

the

led

sales

His

about

interests and let him

have

not

waste

to

names

them.

did

salesman

country

keep after thpm in
intelligent and personal way.

an

Talk

gold and frankly define the dollar

tenths

a

ritory

stable,

cability.

not

originally

spends

on

not

were

adver¬
tising to obtain leads for its di¬
rect mail and its salesmen, had
the
following
experience.
A

tisement

the

recognize

as

that

money

were

call

to open some of the accounts that

One of the investment advisory
services

territory in which

companies

telephone

a

counsel

United States they have no

agreements, practices and usuages
this

these

Leads

Follow Your

—

of seekers, certainly they should be
promptly.
There are
perfection unlikely to be realized discarded
in our lifetime, are really beside people who are congenital adver¬
being

from

apart

bering the sight of gold coins be¬
ing used

analysis of several oil-com¬
panies. When oil was later dis¬
an

are
thrown out as
N. G. because the salesmen them¬

coinage

gold
and

also

peals that gold coinage wait until
the

understand

in

credit

the

If

a

and

with

even

have

can

currency

but

really feel that

persons

effects

shadowy

controversial

a

subject. Although it affects
one,

indeed,

reason,

the

time."

ever

or

Properly

of

disciplinary

"managed"

after

reforms

long delayed had

governmnets

now

Bel¬

as

Netherlands

II.

would have been
the

In

lack the guts to

we

others.

among

the full gold standard will not

have

and

speculate

covered in the

Second

would attempt to

indisputable.
this

For

growth

to

want

gamble.

techniques makes it certain

that the country
use

sound

and

who

have acquired of central-

we

bank

those

and

Administra¬

sure

edge

income

not be using

political cri¬

qualified to say—but

be

Indeed, the knowl¬

reserves.

techniques—

pro¬

arouse

tactics

ing

where
the
local
paper about the
people you hope to do
the central authorities attributed only had a circulation of about
business with.
Discover their in¬
would obtain 10 replies
to it by its staunchest advocates, 30,000
terests, family and friends, busi¬
to an ad.
The cost per lead was
and feared by its opponents.
ness, health and desires regarding
We
about $3.75
each on this basis. investments
and
their
hpbbies.
cannot have the full gold stand¬
Another
salesman ' operating
in Write it down on their
prospect
ard without restoring gold coinage a large urban center would ob¬
cards
and

present

may or may

best

tained in the monetary and bank¬

its

If

metal, would be

to

tion's debt-management and credit

the

vertible into the

it is most likely that even return

postponing

orthodox

that

ticism.

which
be said about the gold-

standard.

is

main

leads

newspaper

personal

if

States to

of

the

of

heartedly followed?

Conclusion

poli¬

government" adding: "It is the hard core
seeking

Newspaper Leads!
One

paign if the leads

"hard money."

*

of

-

have

."

.

Mr. Eisenhower's

;an

of

those who support the idea of let

•our

•our

counsel

for

gold coinage,

observed

ammanaged currency.

time

Treasury

higher-interest-rate

cies, also known

new

developed

By JOHN DUTTON

by remembering that a Doctor
quantity of replies that had three boys.
One
evening
and sooner or later it will mate¬
want, advertise oil stocks, when I called him on the
sufficient to cause deflation or to you
phone
rialize. If before it materializes we
mining stocks, capital gain situa¬ I
said, "Doctor, I think I've got
restore the gold-coin standard, the seriously embarrass the Govern¬
tions, undervalued stocks — in a
suggestion for those boys of
ment.
latter step will
Moreover, the authorities other words appeal to those'who
wrongly be
yours that might be
very
good
blamed for the recession. There¬ have it in their
are interested in speculating. This
power through
for them."
That hit the spot. I
fore, runs the argument, it is bet¬ using existing legislation or is all very academic but it is remembered his
boys. I sold him
surprising how often advertising three
ter to let gold coinage wait until through new
bonds, one for each boy,
legislation, to coun¬
campaigns are set up on a hit or that he
presented to them as a
the expected business recession is teract by credit means
any un¬ miss basis in this
respect. There gift.
It
opened
the
account.
out of the way.
This argument desirable effects of a moderate are only two major classes of
Another time I had some inquiries
reduction
in
may have political appeal.
the
security
buyers—those
who
want
Cer¬
gold stock con¬
to an advertisement that offered

These eventualities

of trade.

ance

any

to

can

novelty of gold convertibility

gold

rather

once

the

that the yet is sometimes heard: a business
recession has long been predicted
gold coinage are il-

it

inescapable.
The arguments

way

Another argument for
returning
to gold coin later on but not
just

nation.

Securities Salesman's Corner

a
tradition—it
less, actual and

the

none

gold

without
compromising the strength of the
coin have it

myth,

a

is there

the

of

centralized

want to

gold

vention,

world's standard may be completely vi¬
holdings sionary, nostalgic and fallacious.
ought to be far more than ample To weigh their pros and cons has
for all our conceivable
needs, and not been our object here, but

known

it should be pos¬
sible to let those Americans who
-want

impaired value because there is
always someone else willing to
pay well for it.
Call gold a con¬

really
is, namely, just another
we Americans
commodity." If that is what gold hear for the return of gold coins
is, our national stockpile equaling to circulation under the full gold
nearly

29

them

intelligently

*

30

The Commercial and Financial Chronicle

(226)

Continued,

jrom

The

14

page

Act

that

assumes

threaten

the

tinued prosperity

industry,
industry

Yardsticks Foi Evaluating

Our Foreign Policy

valid

It

then

that

steadily in¬
creasing productivity of the free
seems

is

world

essential

an

in

factor

assuring its survival — that this
productivity must be far more
than military—that it is an eco¬
nomic

fact

life

of

20th

this

in

Century.

Now, when we talk about U. S.

policies

designed

increased
the

induce

to

economic

plex

and

means

S

that the other nations

so

may both buy and sell more goods,
that is a simple and obvious idea

certainly.

into

rectly
of

complex

the

materials

raw

leads

that

But

di¬

us

problem

tariffs

and

and

to

must

that

suggest

develop

the

nations

off

such

that

time
the U. S. may be
seriously curtailed and

or

situation

a

stability

is

ing our foreign

namic,

which

present

trends

guarantee

lead

will

in

iterate

the

ments:

we

reverse

free

vital

will

(3)

re¬

gram

require¬

have

raise

Our

their

standard

policy must

promote

trade

nations
the

in

a

of living.
designed to

be

with

order

other

free

minimize

to

tendency

of our friends to
strategic materials with the

trade

Communist
have

a

policy which

increases

even
our

countries.

We

must

and
high level of

preserves

the

to

Bell

report

Outline

of

Foreign

a

Policy
I would like to

suggest 11 points

economic

be

able

tain

to

of

tariffs

where

still
very
high.
toys, which have
and

on

cer¬

the tariff

Examples

is

are

tariff of 70%,

a

lace, where

the

tariff

is

90%.
>

(2) There should be lower tar¬

iffs, and in
on

some

tariffs,
materials in short supply. The
cases

Munitions Board
93

has

no

listed

which

materials

raw

our

stockpiling list.

some

are

are

still very

high tariffs.
(3)

customs

(4)
end

that

be

great

importers

be

(5) The

simplified to
injustices to

of

our

drastically reduced.

multilateral

trade

put

on

Congress

permanent

a

that

the

stances
in

of

S.

basis

by

to

basis

and

certain

accept

also

funda¬

tices

as

(6)

set down

The

of

the

and

re¬

induce

to

offices

Chambers

into

in¬

new

the

com¬

trading

prac¬

in the GATT.

so-called

program

should

cooperation whereby we assist the
in underdeveloped coun¬

people
tries

raise

to

ards

by

their

living stand¬
them
with

supplying

technical

in the fields of

experts

agriculture, health, education, etc.
(10)

We

every

way to
increase
of capital to

the availability
foreign nations from
S. Export-Import Bank and

the U.
the

International

Bank.

(11)

Through extra incentives
through commercial and tax
treaties, we should push the flow
investment

abroad.

point out
culties

Peril

of the

some

inherent

policy.

in

The basis of

wise

basic
our

our

to

diffi¬

present

trade pol¬

Act.

This Act

times

of

has

been amended

and

being

is

in

the

renewed

pro¬

Con¬

by

for one year. It enables the
President to negotiate agreements
with other nations for the reduc¬
tion

of

tariffs

barriers.
is

The

not

and

other

Trade

problem

because

whereas

consideration of the needs

does

not

neces¬

of

the nation as a
whole, but is
designed only to protect a particu¬
lar industry, and it is
questionable

balance,

great
the

of

tions

industry

order

will

suffer

injury

be¬
cause of imports. Our trade
policy
should be sufficiently flexible to
meet
changing economic condi¬
tions

and

should

be

geared




to

ing

is
to

to

improve

nations

will

earn

their

the

U.

nation

needed

which

whether it is possible to determine
point below which a domestic

'a

other

What
tion

actually

creditor

is

to

allow
to

rials.

All

free

this

that

inherent

a

most

milk

consternation

in

U.

S.

glass

before

not

adequate for

a

second

Act

is

reason.

almost

cal-'

irresistible.

Despite the fact, therefore, that
bonds and debentures are a
capital

fixed

Perhaps the high¬
during the

endeavors

our

the

was

establishment

investment

the

automobile

and

buggy

and

I

hear

that

of

with

the

of

should

of

they

fort
at

concerned

make

Cer¬

net gain when
alternative is so disastrous.
In

conclusion, I

tell

of,

you

made

like

He

second
to

grade.

task

for

When

this,

I

he

real

would

shares

which

the uninitiated.

fruits

be the

the

of

this

ef¬

maintenance of

current

balance

of

business

believe

we

is

desir¬

most

a

•

"...

Capital

to

Let

us

*

...

turn-briefly to the
to industry in
borrowing, or capital
doing
school raising, markets. Obviously there
broad

two

bonds,

him

took

looked

available

public

are

of

but

each

side

numerous

me

shares

avenues,

of

these

or

has

mustn't

The

in

the

second

Perhaps

continuing
times

world

and

look

can

crisis

with

old

the

at

of

the taking in of new part¬
cast their lot with the

the

They

been

the

to

company

return

their

all

before.

leader of the

Indeed,

affairs for the company. However,
there are other features to be con¬

free world

before

never

has

sidered.

interdependent.

so

of

The desire for freedom from want

fear

and

and

never

before

ately

in

so

domination

to

so
passion¬
hearts in so

share

stock,

market.

lands.
Never before has
other nation been provided

many
with

horizon

ment

race

of

man's

at

price

con-

results in the

com¬

a

follow

and

you

I

determination

channel

even

an

our

effort

the

preservation
human

and

vision

and
We

that

to

(Special

to

The

Financial

with

all " share

of

Corpora¬

qefofe the

dividends

to

so,

pay¬

justify

by share is¬
the companyunust anticipate

the result

of

its capital

rais¬

holders

may
weaken the voting
position of the controlling interest

-Time

is

*

not

aY&iJable to deal
with other types
q&share issues,
and

it

from

is
a

-

sufficient

taxation!

} to
gnd

that,
required

say

Miller
&
Co., 650 earnings standpoint^ most varia¬
tions would be in
substantially the
Spring Street, members of

Revel

South

the

that

Los

Angeles Stock Exchange.

position.

same

-J

However, it is this taxation

Hannaford & Talbot Add
(Special

SAN

to

The

Financial

Chronicle)

FRANCISCO,

Calif.—

Robert L. Love has become affili¬
ated

we

required, in order to pro¬
vide for both taxes land dividends.
Finally, the creatio&pf new share¬

\

Chronicle)

further,

subject to
Tax

of the company.

LOS ANGELES, Calif.—Richard
G.
Cass
has
become
connected

step

To

amount

the

Miller

will

ing will produce ipore than twice
regular dividend irate on the

crossroads and this is the question
that only the U. S. can answer.

Join Revel

it

the

toward

at

are

Income

sues,

betterment
are

assumed

the raising of money

equal amount of
resources

life?

ever

country —
citizens—have

and

one

with

Hannaford

California

Street.

&

Talbot,
He

was

cost

position

which
of

accounts

recent

and

share

financing
for the majority

industrial

expansions

having been financed through the
of fixed interest bearing

medium

bonds and
or

debentb£e$. With

bond

debenture inteuesl. almost with¬

previously with Paul C. Rudolph

out

&

expense

Co.

of

thought

one

who

asked

are

bonds, shares

to

leave

regarding

to

invest in!

other income in¬

or

vestments.

No nation was ever built by the
spending of its people, but only
by the savings of the many.
„

The

philosophers

Persia

have

been

expounding
true

is

the

measure

of

ancient

credited

theory

of

man's

a

with

that

the.

earnings
his
in¬

not

determined
by
but by the residue of earn-,
ings he retains at the end of each
come,

If there is

year.
a

has

year

Yin

our

residue—then

no

been

has worked to

wasted,

no

and

he

avail.

is

it

economy,

too

not

important whether a man's sav-;
ings
take
the
form
of
bonds,:
shares, bank deposits, life insur¬
ance

or

sonal

debts, provided he does

to

reduction

a

improve

and

thus

his

Without
there

in

prosperity,
is

per¬
save

position

to

the

bet¬

nation.

individual

be

can

his

financial

contribute

terment of the

true

no

it

as

and

is

directly,

savings,
lasting

this

money

indirectly,

or

channeled into the capital
outlays
of
governments,
the
expansion
and

modernization

and

the

For

of

development

industry,
of

tance
able

too

long

the

now

natural

urge

to

has been blunted by the
pit¬
of wages
money has been

save

to

earn

interest.

as

of modern

most

until

about

turn

on

Through

financial

1940,

the

history,

annual

re¬

$1,000 conservative in¬

a

suit of

would buy a reasonable
clothes, if the varying cost

of

suit

exception, being treated as an
of the business, and de¬

the

is

taken

into

consid¬

eration, From 1940 until recently,
the

average

would

man

have

found

it difficult to
buy even a
pair of good trousers with the in¬

terest
and

on

the

trousers
Let

$1,000,

after

reward
a

centive to
.

this
as

is

remember

earnings
ment

has

this

must

that mankind
Will

it

its current dividend rate.

tion

witnessed.
the

This

which

upon

pay

achieve¬

of incalculable destruc¬

force

will

is

pany

such an opportunity to
the human spirit, to push back

tive

it

taking a substantially dis¬
lift counted price for its new shares,

any

you

vestment

issues,

practice

new

obligations-

be allowed to create'

In closing I would like
those

success

to offer rights
shareholders to purchase

old

the

the

assure

additional

accepted

has

burned
many

To

interest

never

'

with

not

may

honesty, investment, nor may they demand
we mustn't expect to
adjust our¬ the payment of dividends; on the
selves so fast; for we have never surface, a most desirable state of
say

be'

resources.

shareholders.

ask

our

addi¬

capital,

who

ners

we

of

share

common

means

before!"

ancf ;sale

issuance

tional

so

been

never

grade

and said: "You
much of me.

eye

expect

to

through

top heavy debt position.

which

streets;

'

firmly in the

fixed

■

Raising Mediums

now

mediums

the

been

had

first

least

this,

remark my younger
ago.
I think it

a

years

moral.

a

would

and

to surround

/

exceedingly
poorly
in
during his first few weeks

of

a

investors

able objective.

the

a

to

owned,
and
controlled, by Canadians. At pres¬
ent, with so many of our com¬
panies
controlled
from
abroad,

adjustments

necessary

bonds

Canadian

develop¬

tainly with the will to do so, the
American
people can find ways
resulting in

of

fear

the

The

are

that

milk

seems

about

available

through financial participation in
industry, and to take away that

continue

possible

interest obligations, if such
justifiably be issued. I say,justifiably, because the issuance

co¬

University

will

where

can

the

hope, by these and other
methods, to promote an intelligent
understanding of the probable re¬
wards

industry

in

expectations.

hurt

so

up

ing

the

course,

language,

of

We

industry;
moving picture

producers have been
TV

yond

the

that

of

519

Agreements

with

tax

the comparative advan¬
tages to the borrower, from an
earnings standpoint, have become

financed

Montreal.

operation

which

horse

in

pay off their debts and
their general economic

Trade

is

it

caused

the

na¬

health.
The

cooperation

income

cuiation,

toon, Winnipeg, Loftaon, Hamil¬
ton, * Guelph, Toronto, Kingston

an

the advent

bottles
the

industry;

advent

legisla¬

other

Expansion

before

and

French

in

in

system

I dare say

cardboard

of

is

enterprise

believe.

we

by increas¬

the

go

changes in tastes and styles, new
inventions, processes, and mate¬

debtors.

are

trade

dollars

sales

is

S.

while

the

imports
which
hurt Montreal. The first Canadian cor¬
industry.
There
are
respondence course on "How to
many other factors such as com¬ Invest"
has
now
been
offered
petition from other domestic pro¬ twice by the University of To¬
ducers,
technological
progress, ronto,
with enrollment far be¬

the

sitate

it

indus¬

trade

meet

nated

present Trade

co¬

production.

remember

must

Agreements

adequate to

Agreements Act should be elimi¬

the

in

ments, to rise to so great a des¬
tiny.
We are currently engaged
in
the
most
extravagant arma¬

icy in the past 20 years has been
the Reciprocal Trade
Agreements

Act

Point

would' be

it

have

ductible

only

the

Policy

Perhaps

in

.

and

private

past season,
educational

govern¬

industries

lines of

the world been

should assist in

man¬

cases

American

of technical

that faces us in inter¬
national trade because it assumes
that world
tarde
is
in

Amendment in

S.

state

American

inefficient

I've
States

on^money
^During

labor should be able to light of
ways
for marginal winter

new

not

has

part

we

Courses

agement, and in moi
supplied
lecturers.

prin¬

new

We

son

local

United

continue its

^

mental rules of fair

with

and

and

of

employment

move

The

gress

reductions

try

be similar

munity.

the

preferable

tariff

multilateral

case

movement

one

with

Commerce

dustries

U. S. accepts
negotiation
of

we

may

the

from

work

cess

a

in the

as

another—state

gional, U.

the

'

which
to

to

longing to GATT will know

that

90,000
U.
S.
quite possible for

is

Watch Co., to diver¬
products. In other in¬

—

S.

several

on

recent

by the Public

industries,

effect

be¬

as

ad¬

to

The

most

their

nations

so

the

the Elgin

sify

the

Tariffs and Trade should

on

to

Basic Difficulties in Our Present

agreement and the General Agree¬
ment

be

issued

Our tariff rates and sched¬
should

the ,U.

to

procedures

should be simplified.
ules

industries

tariffs.

It

workers.

affected

of

Our

pro¬

instituted

on

On many of

these materials there

1

low

at

(9)

reduce

products

part

with

bottle

be

addition

Lecture

increase in

an

affect

policy:

(1) We should be a nation of
low tariffs. The President should

economically

the

on

ing something called "3 D."

can

which might constitute the broad
outlines for such a U. S. foreign

of

be based

Advisory Board of the Mutual
Security Agency estimated that
a
policy of low tariffs would

U.

In

public interest

endanger¬
policy objectives

domestic

just

at

protected

and

should

allow

assure

modest government

A

industries

exports.

Points

be

expense

peaceful
healthy world.

the

fundamental

the

a

To

policy
which will help our allies to earn
dollars in order to get materials

to

of

world

area.

must

some

which

and

the

to

this

dy¬

not

us.

should

which

and

does

the expense of the
at

any

expansion
of their
Certainly, no one

or

with

industry

at

in

market

In

special.
Agreements
Act

most

and

and

constructive

the

into

other

in¬

the

operation

national

our

national

to

topi^-hefore Serv¬
simil$|jbodies.
$|ve designed

ice Clubs and

con¬

our

investment

on

authorities,
these liability, the interest and principal
industry
that cannot withstand courses were
received with en¬ of which must be met promptly
competition.
Exceptions can
be thusiasm in
Vanco»py.er, Edmon¬ to avoid default, it seems reason¬
made to
this principle, but for
ton, Moose Jaw, Regina, Saska¬ able to assume that our
expand¬

must
be protected, of
course.
The Escape Clause, how¬
ever,
creates the impression on

industries essential to

security

rapidly as
possible' a straightforward, long
range
foreign
economic
policy
as

Some

It is not

if

over-all

Industrial

the tar¬
iff is not the remedy for domestic

devise

competition.

import

trade

like

S.

it,

ciple that

Financing Canada's

is

the

amongst

either

Trade

should also

from

would
U.

because

assumption

is to pro¬
strength and in¬

opposed

as

ments

cut

both

The

also,
acts as a
restriction on imports
in protecting domestic industries

to protect and adjust U. S.
production.
And this is where
it
hurts.
With
this
in
mind
I

the

terest

the

be modified and made

flexible

more

need

and

interests

use

economy

valid
the

is

Continued jrom page 10

con¬

goal

productivity

always
cern

possible

The Escape Clause Amend¬
in
our
Trade Agreements

Act should

the

special

our

This
our

non-Communist nations.

resources,

best

other countries towards us.

(7)

U.

increase

must

we

imports

of

for for¬
eign markets and the effects of
our
actions upon the policies of

ment

to some com¬
unpleasant
facts.
It

of

needs

of

up

the

domestic

our

our

necessity

the

plans,

obtaining
of

requirements of

the

as

this

strength

friendly nations of the world,
have to face

we

well

defense

if

economic

mote
crease

international commitments, as

our

imports

and

of an American

the protection of this
should
be
given
first

consideration.
not

if

existence

Thursday; July 16, 1953

...

us,

year

of

is

if

the

also

is

of
in¬

therefore,

remember,

are many advan¬
Governments and to In¬

tages to

save

pair
much

$1,000.

save

that while there

dustry

taxation,

a

not

in

cheap borrowing rates,

individual's

incentive

to

destroyed, then there has
destroyed an important

been

source

perity.

of

our

wealth

and

pros¬

Volume 178

Number 5238

The Commercial and

...

Financial Chronicle

(*27)

The

of Current

Business
AMERICAN

steel

Equivalent

operations

Crude

PETROLEUM

oil

and

42 igallons
Crude

Activity

(percent

(bbls.J

Kercsene

output

(bbls.)

fuel

oil

iuel

tons).

__

output—daily

(bbls.

average

I

Distillate

fuel

Rjsidual fuel

ASSOCIATION

(bbls.)

oil

OF

♦92.3

96.8

15.2

July 19

§2,169,000

*2,092,000

2,183,000

316,000

AMERICAN

July

4

2,337,000

2,470,000

2,109,000

2,440,000

July

4

10,457,000

10,326,000

11,117,000

9,629,000

..July

4

8,860,000

^•34,000

8,312,000

8,674,000

144,497,000

146,965,000

152,592,000

26,956,000

24,234,000

119,533,000
23,312,000

83,131,000

76,811,000

67,542,000

Benzol

43,599,000

42,453.000

46,172,000

Crude

7,047,000

7,163,000

6,753,000

24,044.000

24,571,000

24,787,000

22,557,000

27,874,000

4

86,274,000

of

—___I-i_July

4

44,738,000

CONSTRUCTION

July

4

760,232

cars)__July

4

618,254

;

of

(no.

AMERICAN

sales

of

5

775,489

447,51

671,203

644,068

488,163

U.

S.

Private

construction

July

construction

Public

1

construction

State

and

OUTPUT

(U.

Bituminous coal
Penn

S.

BUREAU

and

lignite

ylvania anthracite

Beehive

coke

OF

STORE

205,097,000

121,863,000

73,180,000

:_July

45,371,000

30,620,000

32,241.000

131,917,000

July

1,580,000

*10,010,000

9,135,000

1,116,000

July

84,000

804,000

676.000

53,000

SALES

123,100

127,700

4,200

.July

INDEX—FEDERAL

production

crude

oil

AND

59,900

oil

July

INDUSTRIAL)

4

80

8,096,149

DUN

—

94

118

products

imports

consumption

*7,914,875

8,244,852

all

BUILDING

stocks

9

139

16.9

steel

iron

(per

Scrap steel

!

<E.

-July

ton)__—

gross

(per gross ton)_

PRICES

&

M.

...

J.

Domestic reuiicry

.

Lead

tin

'New

Lead

(New York) at
(St. Louis) at

Zinc

(East

St.

;__

All

„I

—

Louis)

construction...
residential

nonresidential

corporate.—

Middle

>

East

__

♦4.634c

4.417c

4.131c

West

Group

July

7

$56.76

$56.01

$55.26

$52.77

Mountain

July

'7

$43.83

$43.50

$39.83

$39.50

Pacific

Utilities Group
Industrials Group
BOND

YIELD

DAILY

121.500c

July
July

13.500c

13.500c

13.250c

16.000c

13.300c

13.300c

13.050c

15.800c

UNITED

July

11.000c

11.000c

11.000c

15.000c

INC.—Month

93.34

93.18

91.82

98.57

103.47

102.80

102.13

109.97

July 14

108.16

107.09

105.69

114.08

July 14

105.69

105.17

103.80

112.37

July 14

102.13

101.47

101.14

July 14
July 14

____;

_

:_

Orders

Group

103.47

102.80

101.97

103.42

105.17

104.14

113.50

3.10

2.60

July 14

3.54

3.53

3.62

3.17

—July 14
-July 14

3.27

3.33

3.41

2.95

3.41

3.44

July 14

3.62

3.66

July 14

3.87

——_____I

INDEX

Percentage

of

(tons)

AND

AVERAGE

end

of

PRICE

EXCHANGE
Odd-lot

sales

Number
Number
Dollar

of

of

FOR

AND

ODD-LOT ACCOUNT OF

SPECIALISTS

SECURITIES

—

by dealers
orders

ON

N.

EXCHANGE

(customers'

Y.

3.44

3.50

2.98

413.1

438.2

sales.—

Customers'

other

sales

shares—Total

July
July

4

338,713

206,661

332.192

204,886

4

227,070

254,212

233,423

141,384

July

4

86

97

87

56

July

4'

566,985

457,599

596,571

413,405

—July 10

106.54

106.35

106.17

110.45

short

sales.

Customers'

other

sales..

24,174

June 27

558,766

621,383

684,124

681,417

____June 27

$25,089,008

$27,152,238

$32,335,031

$31,472,824

June 27

17,186

19,740

20,061

22.078

103

195

157

99

27

17,078

19,545

19.904

21,979

__June27

476,211

536,551

553,347

,—_ _____

;

-.

,.

Other

Number
TOTAL

of

ACCOUNT

Round-lot

Snort

4,071

.June 27

472,140

June 27
June 27

SALES

ROUND-LOT

OF

ON

THE

STOCK

MEMBERS

ROUND-LOT

FOR

NEW

sales
sales

in

OF

which

on

the

Other

—

the

NEW
=

SERIES

.

All

1,




Jan.

1,

TION)—Month

sales

of

May:

ironers

(units)

Factory

sales

of

dryers

(units»

■:

*268,016

544,748
219,581

118,736

*103,478

94,074

$27,639,922

$21,111,893

$18,042,004

89,431,840

96,869,051

105,940,758

44,647,802

56,063,620

34,087,156

109,836,545

131,953,233

84,435,336

63,749,528

87,811,374

70,765,478

31,965,439

40,631,732

28,934,927

11,852,463

16,983,654

11,681,194

84,994,562

78,549,857

54,746,260

$464,118,101

$529,974,414

$408,633,113

52,196,126

50,678,096

62,146,322

411,921,975

479,296,318

346,486,791

8,968

9,507

7,915

6,821,580

*6,533,477

5,956,400

6,282,657
538,923

6,031,864

5,556,200

*506,613

400,200

2,135,544

2,008,587

1,961,432

30,875,314

28,467,286

$560,605,500

$557,642,500

$506,202,900

48,622,919

48,603,169

47,140,230

6,463

6,582

6,411

52,315

57,345

61,825

200,100

218,600

155,300

19i,700

232,400

162,800

42,600

38,600

METAL

4,800

4,100

16,000

15,000

286,515

288,474

184,210

PRICES

Copper

(E.

Lead

DEPT.

279,330

320,000

243,470

177,700

June 20

5,593,240

7,373.350

7,034,890

6,026,100

June 20

5,872,620

7,658,350

7,333,360

6,203,800

Common,

M.

&

J.

domestic

QUOTATIONS)

June 29

643,110

734,220

773,080

549,570

June 20

111,000

129,840

109.920

103,040

June 20

5,079,000

679,820

625,720

462,530

June 20

618,900

309,660

735.640

565,570

°

20.9,250

t+Three

refinery—

months,

and

——

London

Sterling

New

Silver,

London

(pence

Exchange

per

•

14,500

London,

prompt

tiZinc,

London,

three

St.

303,265

295,650

259,055

67,820

65,990

57,760

27,350

294,170

226,435

288.290

282,895
350,715

360,160

284,195

316,840

1,011,500

1,280 735

1,277,930

922,625

182,180

135,290

196,820

223,430

913,535

1.183,220

'

1,177.015

386,900

1,110,355

1,406,650

1,359,195

1,022,190

OF

York

Straits—

York,

99%

(per

Louis..—
—

109.7*

109.4

7

95.2

93.4

7

102.7

102.9

90.1*

7
7

of 108,587,670

tons.

114.2

§Based

on

96.6
.

S0.1
114.1

new

109.6

29.683c

29.683c

24.200c

29.699c

29.710c

34.586c

bulk,

Antimony

(per

Antimony

(per pound)

in cases,

Platinum,

refined

ounce)

pound 1
(per

plus,

99%
1

ingot

Nickel

RAILROAD

annual

.

Total

111.9
as

15.051c

£84.363

£79.769

85.250c

operating

——-

ingot

(per

pound).—

poundi—

(per

—

I

AMERICAN

74.000d

72.500d

$2.81464

$2.78604
15.740c

11.000c

11.000c

£70.851

£69.028

£70.670

£69.316

ROADS

97.295c

120.500c

$35,000

$35,000

$191,923

$195,000

$195,240

37.970c

37.970c

42.470c

34.500c

34.500c

35.G00C

34.500c

39.000c

$92,654

$90,000

$90,000

39.000c

$2.00000

$2.00000

$2.25000

$2.07500

$2.07500

$2.32500

$2.15000

$2.15000

$2.40000

$2.40000

$2.40000

$2.40000

20.500c

20.500c

19.000c

27.000c

27.000c

24.500c

60.000c

60.000c

56.500c

$901,633,922

$905,605,461

680,507,810

673,704,109

75.47

74,39

77.72

$106,270,668
95,393,045

$111,577,229
101,509,344

$97,282,615
83,094,885

74,000,000

77,000,000

59,000,000

(AS-

expenses

ratio

-

-

-

-

operating income before charges
after charges
(estimated)—,
figure.

tBased

on

the producers' quotation.

producers' and platers' quotations.
(Domestic, five tons or more but
and ask

121.500c

96.295c

•

$35,000

RKs.)—Month

revenues

.

♦Revised

tained.

82.750c

74.000d
$2.81366

1

operating

income

113.5.

15.257c

12.550c

£82.166

May:

Net

capacity of 117,547,470 tons

——

...—

EARNINGS—CLASS

SOCIATION OF

107.6
108.3

—

'•

railway

110.4

Laredo

97%

Magnesium,

Net

93.9

Laredo—

pound)—
pound)

(per

Aluminum,

of

12.750c

13.213c

92.899c

price)

flask of 76 pounds)
(per pound)
(E. & M. J.)

fAntimony

*'

13.413c

£88.690

91.899c'

—

S.

(per

110.7

104.2

...

,

min
U.

ounce,

Quicksilver

Total

runs,

12,652

28,812

pound)—

(per

New

"

I

:

months

§ §New

Cobalt,

219,140

—June 20

foreign' crude

14,080
23,556

85.250c

ounce)

(Check)

pound)—East

(per

1.

——_—

Exchange(per ounce).!—

York

t+Zinc,

Gold

—_

Louis

Silver,

2.inc

York

St.

London

Sterling

114,000

—June 20

7

213,668

9,323

32,86/

—

refinery...—__

export

New

Common.

tfPrompt,

Tin

..—July
__July
July
—July
July

:

pound)—

(per

Silver

__June20

:

1

pound)—

(per

Electrolytic
Electrolytic

*

...June 20

—

Average for month of June:

'

x

32,300

4,300

17,900

■-

(per. pound)—:

basis

$858,403

*570,014

351,214

HOME

: '

!

(per

foods:.

♦$941,507

531,515

ASSOCIA¬

(units)

of

§Cadmium

barrels of

$1,001,464

;

washers

of

sales

tCadmium

—

IRONERS

Factory

fCadmium

'

1952

AND

4,400

.'_
and

9,583,000

—

(AMERICAN

—

135,380

—

figure. _§Includes 691.000

as-ag&inst the

SIZE

MANUFACTURERS'

139,780

...

1,610,000

1

(units)

324,860

—

2,553,000

ASSO¬

(units)—

burners

Taxes

foods

1953

boilers

WASHERS

LAUNDRY

ODeratinz

commodities;other than farm

'Revised

Gas-operated

339,360

product^——

228,884,000

(number

May:

236,330

S.

255,565,000

*

190):

—

of Jan.

of

209,230

U.

—

commodities.

Processed

month

MANUFACTURERS

Month

—

140,740

Meats
."

184,210

252,750

—

Farm

$26,575,032

178,030

173" 030

Total round-lot transactions for
account of membersTotal purchases:
-__
.——.June 20
Short sales
.June 20
Other sales
June 20
Total sales 5—
June 20

All

APPLIANCE
CIATION

122,740

—

i

—tl947-49
Commodity Group—

of

.'.June 20

.•

240,528,000

cars)

end

————June 20

...

__

LABOR

of

at

27,600

floor—

11,498,000

31,664,116

cars)

133,250

i——

_

PRICES,

(number

18,000

—

14,156,000

of

-

ultimate customers at March

of

149,250

—

off

11,269,000

17,878,000

consumers-

omitted)

customers—month

June 20

sales.

WHOLESALE

ultimate

(000's

June 20
.

sales

sales

tons)

Automatic gas water heater shipments
(units)
Domestic gas range shipments (units)
Gas-fired
furnaces
(units)

floor—

^ Total purchases

Total

GAS

MEM¬

_

transactions initiated

Short sates

of

registered:—

sales

transactions initiated

purchases
Short sales

•/i

$21,823,731

154,800

230,530

June 20

.

Total sales

to

ultimate

Backlog of orders

YOKK

—_.

Total

Other

$21,096,412

139,080

154.800

i

ACCOUNT

stocks

16,170,000

INSTITUTE)—Month

DEALER i AND SPECIALISTS:

in

purchases

Other

Other

$18,921,947

256,020

TRANSACTIONS

—-

TRANSACTIONS

Short

Other

4,970
618,216

139,030

1

!

BERS, EXCEPT ODD-LOT

Total

7,483

545,864

241,760

—

<.

20,320,000

June:

of

623,136.

7,445
529,115

.

June 27

f

Transactions of specialists
Total

(net

:

Deliveries

(SHARES).

sales

sales

39,000

18,839,000

FREIGHT CAR OUTPUT—DOMESTIC
(AMERI¬
CAN RAILWAY CAR

sales-

sales

39,000

INSTITUTE:

sales

from

Number

■'

.June 27

_;

___.

.

other
Toiai

—

March

dealers—

STOCK

EXCHANGE AND
Total

by

shares

ROUND-LOT

FOR

June

.—.June 27

sales

purchases

192,882,000

20,202,000

BRADSTREET,

tons)

March

of

Revenue

———June 27

——————

Round-lot

Kilowatt-hour

23,174

—June 27

—.

_:

—

—

ELECTRIC

Factory

by dealers—
shares—1total sales

sales

210,799,000

202,458,000

41,000

(NEW) IN THE

&

tons)—

(net

STANDARD

23,112

—

Short

222,699,000

19,543,000

MINES)—Month of May:

tons)

met

coke

HOUSEHOLD

19,837

sales
of

OF

Gas-conversion

—June 27

sales.

Customers'

Number

EDISON

—

—

212,973,000
193,389,000

May

Oven coke stocks at end of month

—

.__

short

Dollar value

of

(net

coke

Beehive

ODD-

—

Round-lot

3.33
3.20

423.7

.

Customers'

161,200

STOCK

:

purchases by dealers (customers' sales)
of orders—Customers' total sales-,..

of

3.50

3.75
3.63

3.42

Number

Number

3.83

3.71
3.58

STATES-DUN

(BUREAU

Oven

COMMISSION:

purchases)

—

shares

value

Odd-lot

3.19

City

...

STOCK TRANSACTIONS

DEALERS

3.04

York

INCORPORATIONS

Production

INDEX—
—

LOT

3.87
\

3.52
3.63

425.3

period..—

REPORTER

109

=

COKE

,.

ASSOCIATION:

at

DRUG

3.67
3.54

.

July 14

activity.——

orders

July 14
July 14

,

—July 14

____.

(tons)

(tons)

I94J)

^

PAPERBOARD

received

PAINT

107.09

*

Production

OIL,

100.00

105.52

— —

Group

COMMODITY

Unfilled

100.65

July 14

Group

Utilities

Industrials

101.31

3.00

;

—■

—

NATIONAL

104.14

,—July 14

Baa

MOODY'S

97.94

——July 14

A

Public

98.09

2.99

.....

Railroad

BUSINESS

109.60

98.09

New

Month

Aaa

•

Outside

States

City

92.750c

.

AVERAGES:

——_____

York

89.500c

corporate

Aa—

New

United

83.000c

_.

U. S. Government Bonds-.

Average

;____

July

—

Public

MOODY'S

;

,__

'Central

34.330c

;

217,590

CITIES—Month

.Central

4.634c

July 14

102,000

191,931

&

;

24.200c

i

x

„___

Railroad

INC.—215

Central

7

July 14

3,415,500

90,995

S.—

DUN

—

-

29.700c

——

Baa

VALUATION

Atlantic

29.825c

;_

3,678,700

4,531,438

77,027

April

Atlantic

29.650c

*

A

U.
of

etc

England

29.700c

—

4,840,023

4,016,907

May:

29.650c

....

__—

PERMIT

29.700c

Aaa
Aa

THE

.

alterations,

BRADSTREET,
of
New

156

OF

LABOR—Month

building

Additions,

6,987,796

AREAS

OF

New

July

at

MOODY'S BOND PRICES DAILY AVERAGES:
U. S. Government Boncls._

Average

URBAN

:___July
:

at

4,285,865

VALUA¬

QUOTATIONS):

at

York)

Ago

omitted):

Total

Export refinery at__

Month

export

(barrels)

New

Electrolytic copper—

Straits

DEPT.

S.

South

lb.)

(per

IN

U.

(000's

79

167

and

CONSTRUCTION PERMIT

TION

South

July

(barrels)

domestic

(barrels)

&

INC

(barrels)

(barrels)

(barrels).J

imports

BUILDING

____..___July II

Year

Month

(barrels of 42 gal¬

output

output
(barrels)

output

Increase

RESERVE

AVERAGE =100

of that dates

Previous

INSTITUTE—Month

gasoline

Indicated

COMPOSITE PRICES:

Finished

Pig

176,645,000

154,104,000

89,941,000

<tonst_

(COMMERCIAL

BRADSTREET,

METAL

214,580,000

120,561,000

therms)

each)

Natural

MINES):

EDISON ELECTRIC INSTITUTE:
Electric output 'in 000 kwh.)

IRON AGE

135,627,000

86,732,000

:

SYSTEM—1947-41)

FAILURES

59,523.000

132,103,000

(M

therms)—.—

PETROLEUM

Domestic

$381,742,000

July

(tons)

(tons)

DEPARTMENT

$368,634,000

July

municipal

Federal
COAL

$256,188,000

July

;

_

$191,626,000

therms)

sales

(M

NEWS-RECORD:
Total

are as

Latest

April:

lons

813,450

(M

gas

sales

Total domestic

ENGINEERING

—

therms)

gas

Refined

cars)

freight received from connections

ENGINEERING

117,053,000

Mixed

RAILROADS:

(number

(M
gas

4

6,102,45i

4

■____

gas

Natural

July

6,403,700

IIJuly

at

Total

Manufactured

6,434,250

4

either for the

are

May:

6,451,100

...July
—.July

of quotations,

cases

AMERICAN GAS ASSOCIATION—For
month of

July

,_x

in

or,

Ago

§96.2

4

at——.

(bbls.)

lreight loaded

Revenue

Ago

Dates shown in first column

Year

4

(bbls.)

at_

oil

Month

production and other figures for the

cover

that date,

on

o"

(bbls.)

average

(bbls.)

output

bbls. J

month ended

or

...July

1

output

oil

Kerosene-

CIVIL

Week

month available.

July 19

Stocks at refineries, bulk
terminals, in transit, in pipe lines—
Finished and uminished
gasoline (bbls.) at____

Revenue

Previous

Week

or

INSTITUTE:

stills—daily

output

Residual

(net

condensate

Gasoline
Distillate

capacity)

each)

to

runs

of

Latest

to—

ingots end castings

AMERICAN

latest week
week

IRON AND STEEL INSTITUTE:

Indicated
Steel

following statistical tabulations

31

tBased

on

$870,648,284
676,704 241

the average of the

§Average of quotation on special shapes to platers.
than carload lot, boxed.
§§Price for tin con¬
S. duty included.
It Average of daily mean of bid.
quotation, per long ton, at morning session of London Metal Exchange.

**F.o.b.

Port

Colbourne,

U.

less

|

XZ

The Commercial and Financial Chronicle

(223)

this year

Continued from first page

■

and' used

continued

"

that

The Mid-Year Economic Ontlook
'

'

'

■

■

'

million,

63

over,

unemployment of only 1.5
rriillion
or
less
than
2%%'.
-with

the second

expenditures in

*»ent

equip-

and

plant

Business

quarter were also above last year,

.

I

..

tion

.

Government

Federal

defense

the

steady;
a

down

is

Index

jprice

W consumer incomes anu con
1% above sumer spending will continue to
Wholesale rise moderately. Recent wage mless than creases granted by the steel and
other key industries augur fur¬

the

and

consumer incomes and con-

Consumer

S.

less an

is

ago

year

L.

B.

Index

jprice

been relatively

have

Prices

gc?0m
The

statistics
Uiat

in Predictions

Change
is

latest

impressive array of
and
seems
to indicate
an

is still very
the corner," or, as

recession

any

4»uch "around

has
£dirased it, "as yet a guess—not
st
reality."
The
consensus
last
JTanuary of bankers, businessmen,
Burgess

Deputy

Treasury

economists

that business

was

continue at rec-

4generally would

Federal

The

income.

in

increases

ther

This

spending may fail
with record produc¬

pace

is

in

drop

the

farm

income

expected to be offset —farm prices are now about 11%
by the increase in "reconstruc- below a year ago. Still another
tion" expenditures and possibly unstabilizing factor cited is the
more than offset by tax reduc- increasing proportion of sales on
credit and the rise in consumer
tions. Any cuts achieved in non-

state and local government exhigh of $53 bil- penditures.

postwar

new

pansive

credit

annual

Reserve

spending
plans (March, 1953) reveals that
consumers were more in a buying mood that at the time of the
survey
in
previous years.
A
higher proportion of consumers
indicated plans to purchase automobiles and other consumer durof

survey

consumer

Corroborative evi-

ables in 1953.

dence is found in the fact that

to

nearly $27 billion.

Inventories generally

(2)

"vulnerable"

a

ventories

are

at

now

are

Total

level.

at

in¬

all-time

an

high of $77 billion, and even a
slight slow-down in sales could
lead to a sharp inventory read¬
justment.
Expenditures on plant and
will decline from the

(3)

equipment
present

record

Higher in¬

levels.

rates and the corollary
tightness in available funds may
deter planned capital outlays. As
terest

to the outlook for residential

struction,

the

con¬

point

bears

out

supply will in¬
well be an ex¬
in the short-run

money

and

crease

is

Korea

jjumped in the second quarter to
Bon.

to

consumer

keep

expenditures spending may be offset by rising

defense

^while

'

■

.

totaled

.Tune

to

banks, the

stocks_have
new highs.

car

to climb

factor in the expectation

Another

'

may

factor

period

seasonal

there

was

starts
They

predictions that 1953 may even-

"the year of the

tually be labled

that

fJump

example,

representative bankers in all Federal Reserve districts reveals that

Hie

*A

this

business

expect

majority

contiiiue at

"a rapid

to

the rest

pace

with "no immediate
slowing down." Key

year

indication of

-factors cited included "inventories
in balance,"

construction continuing at present levels, continued
Bigh defense expenditures, high
industrial
production, and large
-eapital
expenditures
for
plant
replacement and expansion.
i.lie

majority

-expected
1Lo

hold

of

the

did

not

"This step was taken in
ance
of Federal Reserve

than

$1 billion since early
(thus adding to bank re¬
serves)
and a reduction in re¬

more

May

quired

Although

reserves.

tary

measures

sure

stability,

fective

mone¬

cannot alone
a flexible and

en¬

ef¬

policy can be
(and probably it is fair to say
"has been" since early 1951) an
important factor contributing to
stability. As pointed out by Chair¬
monetary

Martin, the Federal Reserve

man

System's goal is to

use

policy

to

instruments

monetary

contribute
growth
without either monetary inflation
or deflation.
Thus, in announcing
to

sustainable

on

June

economic

the

24

require¬

reserve

Continued

from

Businessmen,

well

as

seemingly

and
con-

expected to

are

in the period

props

portant

equipment

plant

for

spending

ness

and

on

and

consumer

levels,
tion

hit

fense spending will taper
for

Looks

optimistic

billion in 1952. Residential con¬
struction expenditures have been

"Sideways

be construed

own
my

as an

the

meet

the essential needs of the economy
and to help maintain
stability of
the dollar.

ing

The reduction, releas¬
estimated $1,156,000,000 of

an

anticipation
heavy de¬

reserves, was made in
of

the

mand

exceptionally

bank reserves which will

on

develop in the

future

near

when

seasonal requirements of the econ¬

will

omy

expand

and

Treasury

financing in large volume is in¬
escapable.
to

The action is intended

provide
will

needs

strain

that

assurance

be

met

the

on

these

without

undue

and

economy

is in

conformity with System policy of
contributing to the objective of
sustaining economic equilibrium
at high levels of production ancf
employment."

off.

Movement"

"hunch and
view (not to

official view of

the Federal Reserve Bank of Rich¬

ures

published by the United

are

Tariff

States

their

Commission

latest

the trade agreements program un¬
til

June, 1952, which has just been?
received, the Commission shows?
that, based on foreign value of

pre-agreement

10.6%

to

refinement,

where

will

you

find

that

of

reau

Census figures,

the

tabu¬

lating imports for consumption, I
find that from an average of some
billion during the 20-year pe¬
riod from 1921 through 1940, our
$3

imports for the year 1952 are close
to $11 billion, an increase of 270%.

Breaking this down between our
free-of-duty imports and dutiable

and, irt.
covering,

publication

since

thorough

more

the balance of payments state¬

then,

residential construc¬
a snag,
and that de¬

that

has

policy,

to

necessary

after

the bearish foreign countries, during the past
just ahead.
The latest SEC- view seems to be that production,
three years, have been accumulat¬
Commerce
survey
of
business particularly of automobiles and
ing dollars and that some coun¬
plans indicates that through the other consumer durables, is out¬
tries
have
been
using some of
third quarter of 1953 capital out- running demand and could in¬
these
dollars
to
purchase
gold
lays
on
plant
and
equipment volve sharp cutbacks later this
from the United States.
may total more than $20 billion, year,
that inventories are at a
We are told that we must in¬
or 7% above a year ago. If this "vulnerable"
level, that capital
crease our imports.
Where do we
rate of investment is
actually outlays will decline from present
stand?
Taking the American Bu¬
achieved (and there are indications that second quarter Investments
exceeded
plans)
capital

funds

reserve

pursu¬

available

level

ment

summary,

make

ity, it is not through any fault of
own.
These are not figures
pulled out of a hat. These are facts
which are eventually confirmed,

in

spending.
In

to

High Tariff Country

our

turn will have im¬
indirect effects on busi¬

This in

Exercising my
annual rate, compared with $26.5 low-grade skill,"

bankers,

as

more

be important

ex-

outlays on plant and equipment
in the last half of 1953 may
in continue at a $28 to $29 billion

ilie second half of 1953.

jure

equipment

loans

for

increase

even

struction outlays

lower Federal Government spend¬

ing.

designed

14

page

U. S. Is Not

ease

polled

bankers

demand

or

up

Thus,

rise sub-

at record levels
high residential

of continuing

survey

and

(3) Plant

American penditures

current

a

Association

Bankers

For

came."

never

sumer spending could
stantially.

System

stated:

latest increase

first half
register
a

the

during

levels

of the Federal Reserve

ors

contra-

a

drop in housing
April and May.

between

also argue that the
in
FHA-VA
rates

reductions effective July 1
July 9, the Board of Govern¬

and

policy developments
may be viewed against the back¬
ground of this business and fis¬
cal outlook. Recent monetary pol¬
icy moves have included open
market purchases of bills totaling
Monetary

that for the first time in the post¬
war

'

.

ment

outlook.

a
retail sales are running well above appreciably the supply of mort¬
1953
but
would
last year with little evidence of gage funds, while on the demand
is evidence
in some have sold abroad. In other words,
downturn in the second half. Re- weakening other than seasonally, side there
we are playing our proper role as
■♦cent rurVeys indicate some change The
bullish view also stresses areas of market saturation.
a creditor nation and if individual
in expectations, which in and of the point that if consumers decide
(4) Defense spending is at a
itself can be an
extremely im- to save, as in most of the postwar peak and will decline in months countries cannot work out their
£tortant
factor
in
the outlook, years, something less than 8 cents ahead—attempts to cut the non- foreign trade problems within
There are an increasing number out
of every dollar, total con- defense budget will also result in this vast area of dollar availabil¬

"«©rd

Thursday, July 16, 1953

...

v

♦

United

States

sumption
of

in
our

imports

for

con¬

1949,

the

average

tariffs

has

dropped

5.4%

Jan. 1,

on

from

rates

If

1952.

consider dutiable items

we

alone,,,
25.8% to 13.3%..

the drop is from
In

all,

the

of

average

tariff

our

rates has been reduced 49%.

To compare our rates with those
of

foreign countries, I

have to

turn

the

to

once

again*,

International!

statistics

on

ports and, for the figures

on

Monetary

Fund

toms duties collected

im¬
cus¬

by the vari¬

countries, I must turn to the-

ous

thorough study done by Dr. John*
Lee Coulter of Washington, on be¬
half

of

because

of the

none

of the fact that,

agencies of

have

ernment

Tariff

American

The

League,

this

Gov¬

our

data,

the-

nor

International Monetary Fund, nor
the United Nations Organization,

running higher than last year— mond or of the Federal Reserve
imports, the duty free imports
Balance of 1953. A recent Dun & the optimists predict a level of System)
is that there will be
have increased 229%, while the Picking out some of the figures
Bradstreet survey of more than housing starts approximating 1.2 neither any significant weakness
for. free
European countries,
I
dutiable
imports have increased
1,200 business executives shows w^Uion for the year. The recent nor any further strong inflation¬
find that against a ratio for the
348%, the greater increase being
4hat 65% expect their sales in the increase in the rate on FHA and ary upsurge in general business
in 1951,
in dutiable items.
This is con¬ United States of 4.9%
last half of
1953
to
be
higher VA
mortgages is expected to activity during the balance of firmed by the ratio of free to Denmark, with 1.7%, BelgiumGeneral
business
activity
than
in
the
last half of
1952. bnng
forth
enough
mortgage 1953.
dutiable imports for those same Luxembourg with 2.9% and the
•Nearly eight out of every ten tunds
to assure this level of may move "violently sideways"— periods, which fell from an aver¬ Netherlands with 4.6%, are lower
about

y*ow

the

outlook

for

the

other

expect no change in the employ-

starts.

in

rnent level in their

In summary, then, those holding
a bullish view point to the likely
continuance of defense spending

down

own

businesses

■"during the rest of this year, and
-only 5%
anticipate declines in
-employment. Forty-seven per cent
-of the executives responding
(a
larger proportion than in previous
purveys) believe that their profits
will be higher in the next six

♦nonths.
From

these

forecasts
ptruct

it

brief

both

the

views with

possible

to

bullish

and

con-

bearish

respect to the

economic

■run

other

and

surveys

is

composite statements

outlook

shortin

the

United States.

ln

third Quarter and probably
accelerating in the fourth quarter
of 1953 take sharp issue with re¬
,

to

the

outlook

for

some

of

""Bullish" Factors in Situation

these

The

that Lthere.ar® ma:i°r fac"
follows^
nGSS 111
outlook as

■Cinue
for

bullish

business
at

or

view

is

that

gen-

activity

will

con-

above

the

remainder

of

reasoning

line

present
of

levels

1953.

is

The

about

as

(1) Defense spending will
■itaue

at

same

key

factors.

present

levels and

con-

will,

therefore, be an important sus-tailing force. Despite all the talk

They

'

/1X

J1' Pr.°duction, particularly of
'Automobiles and other consumer

!L"°d
production

fiXd

=nH

Si
Wlth

vear

year'

a

level that

t.erms]of,de:
ic
wJL'rf '"J3"81™1
f°r* ihe
,„l quarters of this
.

extreme

some

pessi-

about cutting

thp

ihe

futs af4t'authori- ^ervT%£ the Fedaral

discussed

nations

for

hudgpt

future

nf

obligations

or

tn

narrow

very

past week announced that the fis¬
cal year 1953 closed with a record

peacetime budget deficit of $9,389

million,
sents

a

billion.

cash deficit of
Even

X

oin'w,

J

the regular

present

levels

deliveries

jJightly.
Any
cut
in
spending attributable to




with

rising

automobiles

nse ln new car

been reported.
have

not

in

with

those

peace

some
inventories has

Used

risen
of

the fidst half

in

.

defense

$5

prof¬
a

car

sales

proportionately

new

cars

thus far

tries

unnecessarily high

be

another product from
If

with1

billion

ists

one

is

foreseen

which

official estimates show

of

a

substan¬

tial cash deficit in the last half of

calendar 1953,

is

a

ranging

substantial

as

as

In addition, there

refunding job to

accomplished during this same

period, totaling over $21
To

high

the

needs

extent

are

met

that

new

rates

only

by the Administration. More im¬
portant in terms of the outlook
for the balance of this year, latest

compare

thos^

of

our

other

find that there ex¬
comnion yardstick

be

can

used

for

making

That is the ratio of

comparisons.
customs

to

want

we

we

1954

protect;

high-cost

collections

to

the

value

This ratio gives us
averages based on the pattern of
trade for each country and the
imports.

comparisons
a

trend

can

only be taken as

indication of the changes

in tariff rates.

billion.

We have some official American

money

figures which, as I have explained

by short-term

fi¬

nancing through the commercial

before,

U.

S.

Not

United
be

a

the

By

States

is

and
a

This does not

country.

examining

are

not comparable to for¬

eign statistics. The American fig¬

the

used,

not

of being

accused

in

High Tariff Country

yardsticks

details,

cannot

high tariff
mean

that,

there

may

not still exist some items

countries,

fiscal

to
a

import.
tariff

in

of 50%

rate

valorem

ad

an

might not be sufficient to protect
a
product from low-cost imports,
while in another case, 10% might

corporate income tax

be

at

around

excess

What I mean is that in some coun¬

the excise
taxes, a sizable
budget deficit approximating $5.5

ove/Tmhlfo^cardan1? lGVel

•remain

the

and

4ures.

-munitions

if

repre¬

its tax is extended and there is

$9-$12 billion.

Official announcements are
of
defense spending will» •

probably

which

automnhnp«r"inn<fhn

that

or

to

range.

projected levels qf spending and 0f
not
affect
nirrpnf pvnpnH
I
cited

confined

repeal of scheduled reductions in

durables, is running at

follows:

up

any

age
of 62.6%
free imports to than the United States. But then
a
58.2% in 1952. No other country I find the Federal Republic of
In my judg¬
in the world has increased its im¬
Germany with 5.8%. Switzerland,.
ment, there are no foreseeable
France,
ports as much as the United States. 8.1%:
10.5%;
Turkey,.
new expansive forces but,
at
the
at present levels, expected record
We are
tol<^ that our import 12.5%; Ireland, 13.2%, and thesame
time, no abrupt weakening
business outlays on plant and
United
tariff rates are high and that they
Kingdom, 25.6%.
If we
equipment, high residential con- appears immiment in the present must be lowered. This is a com¬ take the sub-total for 15 countries
props
of high defense spending,
struction outlays, and the possiplex problem to answer because of Free Northern, Western and
record level business spending on
bility of moderately rising conof the tremendous variety of items South
.Europe
(which
excludes
plant and equipment, and rising
sumer
spending.
involved in the trade of our coun¬ Iceland,
Austria and Spain for
consumer spending.
«RAai.5Bi,»
•
c.:*
try and because the rate of duty is which figures are not available),
Fiscal and monetary develop¬
®eansh Factors ,n situatl°«
we
a relative matter which has to do
find that their over-all ratio
ments
will
undoubtedly play a
Those who hold a bearish view
with the margin of protection af¬ is
13.1%
against our
ratio
of
important role in the near?n(Lfo!;?®e® a slide-off beginning very
forded
by
the particular
rate. 4.9%.
term outlook.
The Treasury this

spect

•eral

with

words,

movements

on

which

the rate of duty may appear high,
but
any
propositions
to
lower
rates

be examined

must

greatest

and

care

by

with the

experts

irr

this field.

What

I

am

trying

strate bv all this?

give

evidence

to

I

demon¬

to

am

prove

trying to^
that the

internatioinal trade difficulties of

foreign
from

countries

the

trade system. The
on
can

the

do

American

not

come

international

emphasis placed

discussions of the Ameri¬

tariff

portion
situation

are

with
and

urgency of

entirely out of
the

reality

serve

to

pro¬

of

the

hide

the

solving the other ele*

Volume 178

the

of

ments

Number 5238

...

The Commercial and Financial Chronicle

economic

foreign

(229)

Continued from paqe 5

in the similar week

picture.

ties in

Problems
Because of the fact that nqne of
countries receiving military

the

has

suggested that

that

nate

aid

that

and

termi¬

we

that such aid will probably go on

for another

ten years, I feel that
the solution of the economic prob¬

lems lies in other directions than
American

opinion

tariff

these

in

and

the

are

The State of Trade and
executives

was lower during the week in retailing, down to
94, in wholesaling which dropped to 12 from 18, and in.
construction, off slightly to 14 from 15. Manufacturing casualties

my

important

optimistic.

are

They're

noted

67 from

Industry
conservatism

for

this

weekly "Steel" publication states.

President

Eisenhower has recently declared

the

Even

rose

to 36 from 33 and commercial service to

ures

in construction trade

Development
of

nance

mestic

high

strong

a

civilian

level

our

(2)

and

Wholesale Food Price Index up

darken the outlook.

They're paying particularly close attention to
industry. It's the biggest consumer of steel.

the automobile

Automakers

With

still

in

displaying optimism, and they have set
production goal for July.
This is almost
50,000 units above the number built in June.
628,100

cars

are

their

as

of

American

do¬

with

purchasing

a

power

currency.

Making

travel

> attractive,
American citizens to

by

in

countries

more

need

of

dollars.

1952, nearly $1 billion
available

to

How

mainte¬

economy,

the

foreign countries by

American travelers and there

was

improvement in the outlays in
the European and Mediterranean
area.)
\ .
(3)

Increase

in

the

consuming
powers of European people within
their

country.

own

(4)

to

each

among

and

V^"

-

(6)

Finally, the creation of the
proper climate to -encourage the
investment of American private
capital abroad.
,

.

demand should

it

appears

there will be

now

With Summer vacations in full

steel
1.5

for

The

each^will

toward

go

swing in steel plants, output of

of

points from the preceding week and registered 94.5%

and

Steel

Institute

announced

that

capacity for the entire industry will be at
capacity

for

the

2,169,060

tons of

beginning

week

ingots and

steel

July

dertone

,

the

revitalizing
the
result- inevitably

*

which
creased

trade,

causes

in

only

in¬

the
United States, but to all the free
countries in

not

to

the world. \

1953,

castings

for

the weekly

ing rate

production

was

a

in the

the

to

Offers Consumers Pwh

3%% Bonds at 101%
Stanley

Co.; and'^40

&

associated underwriters

Goal

the

priced at 1011/4% and accrued

Proceeds
with

yield' of 3.68%
sale

together

will

be

cash

in

company

©f its construction program, which
involves expenditures of approxi¬

mately $62,000,000 during the
1953.

Included among

year

the projects

the completion of a third unit

106,000 kilowatts at the Justin

R.

Whiting

plant

of

135,000

kilowatts

near

sinking fund provides for

nual

an¬

payments, beginning in 1956,
1%

to

equal
of

the John
Bay City.

at

all

of the total amount

series

of

first

mortgage

bonds

outstanding. Sinking fund
redemption
prices
scale
from
101]/4%
to

if

June

redeemed

30,

1980.

30,

Op¬

tional

redemption
prices - range
from 1051A% if redeemed to and

including June 30, 1957 to par if
redeemed, after June 30, 1980.
The
ness

company's

is

the

tribution

principal

generation

of

and

busi¬
dis¬

and

electricity

communities

1953,

in

1,475

townships

Michigan, including

in

the

territory has
than

a

communities

more

Among the larger
served

Flint,

company's

population of

3,000,000.

Rapids,

The

state.

are

Saginaw,

Grand

Lansing,

Pontiac, Kalamazoo, Bay City and
Total operating revenues

Jackson.

of the company for the 12 months
ended

986,926

April 30,
and

1953

gross

income deductions

$144,before
$26,806,001.

were

income
was




Lard

...

,

In

a

firm undertone witb

buyers'

increased

interest,

a

Coffee
*

strong throughout the week, aided by

was

prices displayed

part of the week.

/

,v

.

1

.

steadier undertone during the latter

a

;V:

t

,

of

increase

an

7,690

v

electric

of

energy

distributed

by

the

15.9%

like

a

gain of 15.9%

One

Motor

Ford

week's

rise

the

was

2V2

as

record year,

This compares

U. S. truck

with

With

was more

to

than

to

made

8,996

cars

1

*

in

The

this

Commercial
week ended
Dun

&

and

failures

declined

in

the

Inc.

272

were

only one-half as numerous as in 1939 when

recorded.

involved in 110 of the week's
sjze group declined from 146 last week and 128
a year ago.
An increase on the other hand, appeared among small
failures, those having liabilities under $5,000, which rose to 29
from 23 a week ago and were almost even -with the 28 of this size
Liabilities of $5,000 or more were

casualties.

This

trading-

How¬

many

the level of a year
level continue#

Inventories remained per¬

goods.

slackness

was

as
a

in

many

most

wholesale

mills closed

continue#

textile markets

for vacations and stock-taking.

flurry of interest in unfinished cotton goods

follow¬

revision of its acreage estimate-

Many trade observers anticipated a

week

a

year

Retail
of

robust recovery in the whole¬

coming weeks.

continued to order more than in the

comparable

earlier.

trade

in

New

York

the

past week

recorded a gai*s

12%.

This drop brought casualties below last

year's total of 156 for the comparable week, as well as below the
173 which occurred in 1951.
Continuing far below the prewar
level, failures were

durable

ing the Government's downward

holiday

July 9 to 139 from 169 in the preceding week, reported

Bradstreet,

markets,

ending this July 8.

in

prevailing

_

Holiday Week Ended July 9th

industrial

for

call

Food buyers

Business Failures Down in

lull

sale demand for textiles in the

'

durable

marked year-to-year rise-

marked gains over the year-ago

more

the

week

There

automotive

period.

be

last

statisticians, R. L. Polk & Co., new car sales
about 31% in the first six months this year over the like 1952

the

rose

companies

Consumers*

larger share of their incomes for

ceptibly higher than a year earlier.

the like year ago week.

week, compared
with 6,560 in the previous week and 7,121 in the like 1952 week.
Their truck production was 2,382 units last week, against 1,926
the week before and 1,824 in the year earlier period.
According
Canadian

seasonal

a

The

before.

This

a

it continued to be slightly higher than

ever,

production rose 41% last week to 21,870, compared

(four days).

spend

activity declined mildly in the week

32-month high.
with 588,579 last month and the present 1953 high

15,517 the previous week

to

supplies, and out¬

avid demand in most parts.

being in the call for new cars.

1950. Ward's added the industry plans to

double the 10,195 built in

goods continued to slide sea¬

most household

goods than they did last year, the most

last April.

of 601,469

sportswear.

However, small air-conditioners, picnic

continued

industry plans to con¬

continued tc«

a

door furniture remained in

631,000 cars this month, which would be a

make

reported

interest in

The

before in automotive annals viz:

of the

many

sonally.

ouput at

1,860,000 cars in the current quarter, a goal exceeded only
1,898,783 in the third quar¬

struct
once

apparel merchants

of

decline in consumer demand this week
housewives deserted their kitchens for resort spots.

Food stores

years.

Automotive Report claims the

Ward's

increased

receipts

total

high this week

remained

apparel

shopping day reduced sales volume meas-

ing of men's suits, casual shoes, and denim

Mercury and Lincoln

Co., which made 37,500 Ford,

for its highest total in,

cars

ter

last

for

a

the year-ago level with the most marked gains in the buy¬

surpass

the

reason

The

in

interest

consumer

ureably.

previous period.

7%.

a year ago.

although the loss of

out 133,557 new cars last week, compared
previous week, when the industry worked
only four days because of the July 4 holiday. Last week's total
was
159% greater than the 51,476 in the year ago week when
companies were shutting down production due to the steel strike.

in

116,488

by Dun & Bradstreet, Inc., to be from 3 to

estimated

was

higher than

The industry turned

with

the week ended July

The total dollar volume of retail trade in
8

has happened, namely that: automobile output

last week over the

15%

Clearance sales of seasonal mer¬

year.

the holiday but were much less common tha&

over

Output Rises 15% Above Week Ago

The unexpected
rose

year-to-

sections since the holiday

some

in recent years.

when

U. S. Auto

longer last

was

in

th«*

However, shoppers continued

July 8.

pronounced

was

chandise began after

the comparable
6,987,796,000 kwh. were produced. In the 1951
week output amounted to 6,738,873,000 kwh.
was

gain

week-end

electric

ended

week

spend slightly more than they did a year before; the

year

Institute.
current total

the

in

dollar

declined perceptibly in most parts of

volume of retail trade
nation

up

stores closed for Independence Day, the total

As many

industry for the week ended Saturday, July 11,
estimated at 8,096,149,000 kwh., according to the Edison

week

1952

sells natural gas in 273 communi¬
ties

cars,

for Week Ended July 11th Was

in

number of
important industrial areas. It also
a

report sched¬

sharply in late trading, influenced by reports of heavy

rose

Cotton

power

was

The

prior

or

1957 to the principal

after June

amount

on

reflecting

good commission house demand..

below the preceding week this year.

amount

The

Erie

seventh unit

a

C. Weadock plant
A

Lake

on

and the addition of

un¬

strengthening of cash wheat premiums in

advances

frosts in Brazil.

to

used

furtherance

..

Cocoa futures maintained

sharp

The

the

of

treasury

the

a

prices

corresponding 1952 week but showed a decrease

Electric Output

Electric

mortgage bonds,
3%% series due 1983. The bonds
■

giving
to maturity.

extent the

cars, an

31,793

loading amounted to

above

cars

offer¬

are

firmer

a

,

Co.

interest,

some

increase of 49.8% above
loadings were affected by the
steel industry strike and an increase of 82,073 cars or 14% above
the corresponding 1951 week.
'
.'-/■*
"
loadings totaled 670,232

light and

-first

vacation and to

annual

although

tightening of spot supplies, and firmer prices for actuals.

of American Railroads.

ing for public sale today /(July
16) $25,000,000 Consumers Power
'new

further

Saturday Independence Day holiday, according to the Association

of 110,425 cars

Morgan

miners'

coal

week

Corn

week last year..

same

Southwest.

the

Loadings Are 18.1% Below the Preceding Week

Loadings of revenue freight for the week ended July 4, 1953,
decreased
148,218 cars, or 18.1%
under the preceding week
due

f

a

Domestic bookings of hard wheat bakery flours remained

general steel strike.

limited volue despite a

Car

this

times.

at

registered

displayed a firm tone most
of the week. Receipts were light in volume and there was a good
demand for the cash article. Oats were firmer with demand being

the corresponding 1952 week when

Slaalej Group

of prices

unsettled

evident

was

placed at 316,000 tons and the operat¬

15.2% of capacity, due to

was

g

Week

in

Friday will show a decrease in production prospects from
a
month ago. Average daily sales of grain and soybean futures*
on the Chicago Board of Trade at 59,990,000 bushels, showed littlechange from a week ago, and compared with 45,300,000 busheto*

92.8%

against

as

pound*

per

to show the

uled for

(revised), or 2,092,000 tons a week ago. For the like week a month
ago the rate was 96.8% and production 2,183,000 tons.
A year ago

The

A

i/--/"'•.

touched

comparer

Price Index Shows

Rise

stimulated by the belief that the Government crop

of 96.2% of
equivalent to

an average

13,

total of the price

sum

and its chief function is

use

level

general

Grains continued

ca¬

/

.

long uvay

a

was

The latest figure

moderate advance
during the past week.
The Daily Wholesale Commodity Pric«
Index, compiled by Dun & Bradstreet, Inc., national credit report¬
ing agency, finished at 278.33 on July 7, as compared with 275.81
a week
previous, and 290.43 on the corresponding date a year ago.

of two to three weeks.

pacity.
Iron

general

Moderate

ingots and castings in the week ended July 11 declined

American

represents the

in

Wholesale Commodity

In some products

quarter.

carryover

a

foods

31

in the fourth

subside somewhat

of unfilled orders from the third

over

No single one of those elements
will solve the problem but a little

of

1952 high of $6.70

2 last year.

general trend of food prices at the wholesale level.

*

of

Bradstreet Wholesale Food Price Index scoring
week, the index rose sharply from $6.54 last week*
July 7. This marked a new peak for this year and rep¬

index

The
of

operating rate of steel companies having 93% of the steelmaking

cur¬

other

with the U.tS. dollar.

are

Sharply to New 1953 High

almost half of the 31 items included

with $6.51 on the like date a year ago, or a rise of 1.7%.

quarter some of the slack is expected to be taken up by carry¬

The

(5) Convertibility of those

toy

or

&

August 26 and Sept.

on

Keep Auto Production High

auto

Even if steel

>•

Stable currencies abroad.

rencies

are

Dun

to $6.62 on

,

bit

commodities,

advances this

be, a little sales effort by the auto dealers might help
production high, some observers suggest.
Have you
been approached recently by an auto salesman?
Many people
haven't. In one office, for example, only one man out of 16 had
been contacted personally by a seller of new cars.
Alarming to
some observers, however, is the sluggishness of used
car sales.

an

.

15

If need

keep

(In

made

were

Fail¬

from the 1952 level prevailed in all other lines except commercial
service which remained the same with 10.

though they're surprisingly optimistic over fourth-quar¬
they're being alert for any sudden turns that would

resented the highest level since the

(1)

10 from nine.

heavier than last yeari but declines!

were

ter prospects

ones:

for

Eight businesses failed with liabili¬

of $100,000, compared with 19 last week.

excess

Mortality

Factors in Solution of Economic

aid

of 1952.

33

According to the Federal Reserve Board's
store sales in New York

Index department

City for the weekly period ended

July %

period of last
year.
In the preceding week an increase of 8% (revised) was re¬
ported from that of the similar week of 1952, while for the four
weeks ended July 4, 1953, an increase of 5% was reported.
For
1953, registered an

the

increase of 12% from the like

period Jan. 1 to July 4, 1953, no change was

that of 1952.

...

..

.

registered from,
.

.

r t

54

<23C)

The Commercial and Financial
Chronicle

.

•'

-

'

'

■

•

.*

Aberdeen

March 30

Idaho

Now

* IN DICATES

in

Registration

Mining Co., Wallace, Idaho
100,000 shares of non¬
Price
15 cents per share.

stock.

common

develop mining claims.
Wallace Brokerage Co., Wallace, Idaho.
Acteon

Gold

NEW ISSUE CALENDAR

Underwriter—

Boston

Mines

Edison

(Offering

-Common

stockholders—underwritten

to

Boston

Great

Western

Oil

stock.

Price—At

working
Third

($5 per share).
Proceeds—For
Business—Lumber mill. • Office—216

South,

Seattle, Wash. Underwriter
tional Securities Corp., Seattle, Wash.

—

Illinois

Ionics,

Na¬

fered

to

commissioned

officers

ices of the United States in
class

of

stock.

in

made

Proceeds

Price—$495
equal monthly

36
—

For

stock

general

of

(no

the

par)

Providence

A.

(C. K.

Under¬

Cattle

&

Co.—

(McGrath

(Harris,

Securities

Equip. Trust Ctfs.

$4,185,000

Corp.)

(par $1),

Western-Nebraska

Oil

(Israel

Common

&

$299,400

July 22

,

—Dean

American Pipe

working capital. Underwriter
Co., San Francisco, Calif.

Corpus Christi

cents).

El Paso Natural

Saint

Anne's

Oil

(Sills,

Underwriters—Blyth & Co., Inc. and Irving Lundborg

Sun

both of San Francisco, Calif.

Co.)

Brothers)

Common

Fairman

Co

Harris)

&

-Common
$1,350,000

Valley Mining Corp.(Miller

Securities

'

-Common
Corp.)

$299,000

•

Applied Science Corp. of Princeton (7/21)
May 21 filed $750,000 of 6% guaranteed sinking fund 10year debenture notes due April 30, 1963, of this
company
and 75,000 shares of common stock
(par one cent) of
Bradco, Inc., to be offered in units of $100 of notes and

July
Miller
(Lee

23

(Thursday)

Manufacturing Co.__

10 shares of stock.

United

Price—$105 per unit. Proceeds—For
acquisition of stock of two companies, who will borrow
the remainder to
repay bank
loans and for working
capital. Underwriter
C. K. Pistell & Co.,
Inc., New

—Debentures

Higginson Corp. and P. W. Brooks & Co., Inc.) $1,750,000

July 24
Gas

(Offering

Corp

Common

July 28

—$2
plus.

Ampex
(Blyth

Armstrong Rubber Co.

Jones

■March 31 filed $4,000,000 of
5% convertible subordinated
debentures due May
1, 1973. Price—To be supplied by
amendment. Proceeds—For

underwriting) 1,171,863 shares

Reuss

&

Co.)

California

Water

(par $1).
Proceeds—To

&

(Btyth

be supplied by amendment.
bank loans, etc.
Underwriter—Van Alstyne, Noel
& Co., New York.

be

to

&

Atlas Plywood
(Van

• Barton Petroleum Co., Denver, Colo.
July 6 (letter of notification) 25,000 shares of common
stock.
Price—At par ($1 per
share). Proceeds—To pay
indebtedness.
Office—310 Cooper Bldg.,
Denver, Colo.
Underwriter—None.

Alstyne,

Loan

&

120,000

Corp.-1
Noel

Finance

(Johnston,

$5,000,000
of

August 5
(Bids

capital stock (par $25) to
subscription by stockholders of record
on or about
July 16, 1953, on a l-for-10 basis (with an
oversubscription privilege); rights to expire about
Aug. 3.
Price—To be supplied by
amendment. Proceeds—To re¬

pay

offered

bank loans and for

—The

First

Boston

new

construction.

and

150,000

Central Fibre Products Co.,

$2,750,000

Carey, the two selling stockholders. Underwriters—Bosworth, Sullivan & Co., Denver, Colo.

be determined by competitive

bidding. Probable bidders:
Stuart & Co. Inc.; Kuhn, Loeb & Co.; Morgan
Stanley & Co.; The First Boston Corp.; Harriman Ripley
& Co. Inc. and Alex. Brown & Sons
(jointly).
BidsExpected to be received late this month.
Coleman Engineering Co., Inc., Los Angeles, Cal.
18 (letter of notification) 38,000 shares of class A

$3,225,000

(Monday)

Texas International Sulphur Co
-

(Vickers

Brothers)

August 12
(Bi<3s

Corp., New York.

to

be

Common

400,000

-Equip. Trust Ctfs.

invited)

stock

common

issued

to

shares

to

(par

off

pay

$1), of which 8,000

notes

be" sold

to

at

rate

of

August

20

American Fidelity &

&

(Thursday)
Co.)

August 31

10% subordinated debentures
due Aug. 1, 1956. Price—
At par (in denominations of
$100, $500 and $1,000) Pro¬
ceeds—For additional
working capital, but may be used
to reduce bank loans.
Underwriter—None.

to

be

Preferred

Colo-Kan Fuel Corp., Denver, Colo.
Jurie 29 (letter of notification) 940,000 shares of class ;A
corijimon stock (par five cents).- Price — 9Vz cents per
share.
Proceeds—For drilling expenses and
equipment.
Office—711
E.

E & C Bldg., Denver, Colo.
t. Shelley & Co., Denver, Colo.

12

June

September 1
Duke Power Co.
(Lids

(Ohio), Hartford, Conn.
1,000 shares of convert¬
(par $10).
Price —$8 per share.

(letter of notification)

preferred

Parker &

stock

selling

stockholder.

to

September
Louisiana Power
(Bids

Pacific

&
to

Telephone
(Bids

to

be

invited)

—Tthaca. N. Y.

invited)

—Bonds

Underwriter—None

be

invited)

Co

970,000

which

capital,
Latter

shares

820,000

of

(Texas)
common

shares

to

are

etc.

Underwriter—Vickers

will

receive

maining 150,000

common

warrants

to

(7/22)
stock

10

be

to

(par
offered

__Debs.

$50,000,000

(letter of notification)
of

rate

one

new.

Price—At

par

telephone

exchange.

111.

($10

Brothers,

New

purchase the

re¬

shares.

Sycamore, III.

25,695 shares of

stock, to be offered for subscription

more,

$12,000,000

Telegraph

filed

of

cents),

the

(Tuesday)

&

2

June 24

$35,000,000

Light Co.___
be

Federation

DeKalh & Ogle Telephone Co.,

(Tuesday)

15

C.

cumulative preferred
(par $100) and 700,000 shares of common stock
(par $5). Price—At par. Proceeds—For working capital.
Business—Production of dairy and poultry feeds. Office

ing

Bonds & Common

bonds

Underwriter—S.

Co., Inc., Buffalo, N. Y.

Cooperative Grange League
Exchange, Inc.
Feb/ 13 filed 50,000 shares of 4%

York.

Eq. Tr. Ctfs.

$3,300,000

—

for

Underwriter—

the public. Price—$1.50 per share. Proceeds—For work¬

(Monday)

invited)

be

Price—$5.25 to stock¬
employees and $5.62
per share to public.
Proceeds—To repay debt and for working capital. Office
—6040 West Jefferson Blvd., Los Angeles, Calif. Under¬
writer—Lester, Ryons & Co., Los Angeles, Calif.

June

$750,000

Denver & Rio Grande Western RR
(Lids

will

share, 5,000
employees and

$4,500,000

Casualty Co

(Geyer

shares

per

and

and

Corpus Christi Refining Co.

Budget Charge Accounts, Inc.,
Yonkers, N. Y.
July 1 filed $1,000,000 of
seven-year capital notes due
Aug. 1, 1960, of which $225,000
principal amount may
be offered in
exchange for a like amount of
five-year

$5

stockholders

stock

shares

(Wednesday)

Gulf, Mobile & Ohio RR

Underwriter

June

Proceeds—To

Equip. & Trust Ctfs.

EDTi

i.;

if Chesapeake & Potomac Telephone Co. of
v
Baltimore City (7/31)
July 10 filed $15,000,000 of 31-year debentures due Aug.
15, 1984/ Proceeds—To repay advances from American
Telephone & Telegraph Co., parent.
Underwriters—To

ible

(Wednesday)

noon

Inc., Qutncy, III.
•'£
(letter of notification) 2,400 shares of common
Price—At market (approximately $39.50
share). Proceeds—To E. Carey,- Jr., and W. D. P.

stocjk (par $5).

Connohio, Inc.
--Debentures

Co.)

.

City Milling & Mining Corp, >.
March 4 (letter of notification) 1,800,000 shares of com¬
mon stock.
Price—At par (10 cents per share),/ Proceeds
—For mining operations. Underwriter—R.L.
Hughes &
Co., Denver, Colo.<
\
■,/.
;

stock

&

August 10

for

debs,

Corp

Lemon

Pittsburgh & Lake Erie RR
Boston Edison Co.
(7/17)
June 26 filed 246,866 shares of

shares

Debs. & Common

Co.)

&

Common

(Tuesday)

shares

State

invited)

Inc.)

-

per

holders

Telephone Co
Co.,

Ave., New

25,000 shares will be sold publicly.

(Monday)

August 4

repay

be

$299,600

(Friday)

August 3

stock

Price—To

shares

Class A Common

(Bids

• Atlas Plywood Corp., Boston, Mass. (8/4)
July 14 filed $5,000,000 of 5% sinking fund debentures
common

and Irvipg Lundborg & Co.£*160,000

July 31

Manufacturer of tires and tubes.
Underwriter—Reynolds
Co., New York. Offering—Temporarily postponed.

150,000 shares of

Inc.

Chesapeake & Potomac Telephone Co. of
Baltimore City
;
Debentures

&

1968 and

& Co.,

Common

(B. F.) Oil Co

First

Underwriter—None.

Central

(Tuesday)

...

(McLaughin,

working capital. Business—

due

Corp.

5,000 shares of preferred
share).
Proceeds—For

share. Proceeds—To increase capital and sur¬
Office—262 Morehead St., Burlington, N. C. Underwriter—None.

—

York.

share

for

each

common

by stockholders at
four

shares

held.

share).
Proceeds—To construct
Office—112 West Elm St., Syca¬

per

Underwriter—None.

Eagle Super Markets, Inc., Moline, III.
May 21 (letter of notification) 25,000 shares

of 6%

pre¬

ferred stock.

Byrd Oil Corp., Dallas, Tex.
Oct. 22 filed $1,750,000 of 10-year 5%% convertible
sink¬

Bostc(n

Philadelphia

Pittsburgh

San Francisco

Private IVires




to

all

offices

Chicago

Cleveland

Price—At par ($10 per share). Proceeds—
first preferred stock and for working
capital.
Office—2519 Fourth Ave.,
Moline, 111.
Underwriter-

To redeem

Harry Hall Co., Safety Bldg., Rock Island, 111.

ing fund mortgage bonds due Nov. 1, 1962, to be offered
subscription by common stockholders at the rate of
$100 of bonds for each 28 shares of stock held (for 8
14-day standby). Certain stockholders have waived theii
rights. Price—At par. Proceeds—To repay $1,014,500 of

June

26

stock

(par $100).

outstanding notes and for drilling

Weld

for

New York

expenses and working
Underwriters—Dallas Rupe & Son, Dallas, Tex.;
Carl M. Loeb, Rhoades &
Co., New York; and Straus.
Blosser & McDowell,
Chicago, 111. Offering—Postponed

capital.

"

per

Office—660

Halsey,

(Friday)

to stockholders—no

($10

par

abroad.

r

stockholders of record April 17 at rate of one new share
for each five shares held; rights to expire
July 17/ Price

per

Preferred
$20,000,000

Production

fund

re¬

Underwriter

March 23

$1,230,000

Weld & Co.)

Price—At

investment

...Common

100,000 shares

Gas Co

(White,

Manufacturer of magnetic recording equipment.

&

Refining Co._

(Vickers

50
Price—To be supplied by amendment. Proceeds
—To repay bank loans and for
working capital. Busi¬

Common

(Wednesday)

Witter

Ampex Corp., Redwood City, Calif. (7/28)
July 7 filed 160,000 shares of common stock (par

Proceeds—To

construction.

new

;

$299,950

& Construction Co

(Dean

•

Co.)

for

.

Bonds

Co., Inc.___

&

bank loans and

Casualty Insurance Co., Burlington, N.C.
April 29 (letter of notification) 103,506 shares of class B
non-voting common stock (par $1) being offered to

Inc.) $3,000,000

Co.,

•

Carolina

$300,000

Pfd.

Hall

V

Common

Co.; Inc.) $787,500
CDT)

noon

Underwriter—Ernest A. Tapp.

Price—To be supplied by amendment.

York.

Co

(Tuesday)

&

St.,

City 8, Mo.

stock.

Common

Notes & Stock

Pistell

Kansas

if Care Development Corp.
July 3 (letter of notification)

$99,999

Co.)

&

jobbers; and

Common

Western Light & Telephone Co., Inc

amendment. Proceeds—For

& Co.,

Hogle

(Bids

by the company and 50,by certain stockholders. Price—To be supplied by

—

Shober)

Mining Corp

of which 50,000 will be offered

ness

Land

—

&

and 25 shares of class B stock to

of not less than 10 shares, nor more than 50
shares of class B stock to automotive parts dealers. Pro¬
ceeds
For working capital.
Office—1515 McGee

Common

subscriptions) $379,500

Chicago & North Western Ry

Gate, Calif.

Witter &

/

Inc.-

July 21

Petaca

Pipe & Construction Co., .
(7/22)
June 30 filed 100,000 shares of common stock

to solicit

A

and 11,000 shares of class B
(par $10) to be sold in units of 25 shares

stock
A

class

$10)

—Blyth & Co., Inc., San Francisco and New York.

131,784 shares

Applied Science Corp

unit.
Payment may be
instalments of $13.75 each.

per

purposes.

ISSUE

units

pay

serv¬

units of five shares of each

corporate

Common
shares

35,340

EDT)

Oil Exploration

(J.

• American

000

(Monday)

p.m.

(Woolfolk

Williston Basin

writer—None.

South

Co.

Park,

to be of¬

uniformed

REVISED

if California Water & Telephone Co. (8/3-4)
July 13 filed 120,000 shares of common stock (par $12.50).

___

Beer &

common

ITEMS

—

Co

(Offering to stockholders of Leon

Independence Life Insurance Co.,
Houston, Texas.
July 14 filed 50,000 shares of preferred stock (no par)
50,000 shares of

3.45

in

(par

$289,200

Corp.)

Inc.
,
(Lee Higginson Corp.)
Exploration Co

Pecos

American

and

Securities

Light

(Bids

par

capital.

Ave.,

Central

First

Common

Gas Co

July 20

Alaska-Wrangell Mills, Inc.

The

by

246,866 shares

Corp.)

&

(Hunter

58,000 shares of capital

of class

(Friday)

Co

—

(letter of notification)

stock

common
common

17

July

Ltd., Vancouver, B. C., Can.
April 22 filed 250,000 shares of common stock (no par).
Price
$1 per share (net to company). Proceeds — To
purchase equipment and supplies. Underwriter—M. H. B.
Weikel, Los Angeles, Calif.

9

PREVIOUS

July

—

Proceeds—To

•

AD DITION S

SINCE

if C K M Finance Corp., Kansas City, Mo.
8 (letter of notification) 3,950 shares of

(letter of notification)

assessable

June

1

i

Securities

Thursday, July 16, 1953

...

•

El

Paso Natural Gas Co.
filed

Proceeds—To

&

;

,,

(7/22)

200.000

shares of cumulative preferred
Price—To be supplied by amendment.
repay bank loans.
Underwriter—White.

Co., New York.

Fairway Foods, Inc., St. Paul, Minn.
May 8 filed $1,600,000 first mortgage lien 4^% bonds
to mature $40,000 annually from 1955 to
1994, inclusive.

Number 5238

Volume 178

Price—At 100% of
struct

The Commercial and Financial Chronicle

principal amount. Proceeds—To con¬
Underwriter—None.

uuC

Proceeds—For drilling wells.

Price—25

ating

Boston, Mass.

cents

share.

per

Proceeds—For

oper¬

capital.

Inland

Western Loan

&

Finance

Corp.,

issued

by Commercial Life Insurance Co. of Phoenix.
Price—$1.50 per share. Proceeds — To develop and ex¬
pand company's loan and finance business. Underwriter

^ Fenimore Iron Mines Ltd. of Toronto
July 14 filed 1,001,896 purchase warrants to purchase a
like number of shares of common "B" stock (par $1) to
be issued to holders of 2,003,792 common stock purchase
warrants exercisable until July 31, 1953, for the same
amount of common shares, on the basis of one "B" com¬
mon stock purchase warrant for each two common stock
purchase warrants exercised. The "B" warrants 'will be
exercisable at any time after Jan. 31, 1954, and be good
until Aug. 1, 1955.
Price—$1.25 per share. Proceeds—
For field exploration and diamond drilling.
Underwriter

—None.

An additional

of

shares

of

certificates.- Proceeds
National

1801

Bank

For working

—

of

Commerce

capital.

Bldg.,

Office—

New

•

Fischer's

be

bank

supplied by

loans

and

Underwriter—Blyth &
Offering—Indefinitely postponed.

Seal, Inc., Spokane, Wash.
May 19 (letter of notification) 4,000 shares of common
stock.
Price—At par ($10 per share)./Proceeds—For

30

filed

Price—To

be

—

working capital. Business—Makes a formula for pro¬
cessing fresh meat.. Office—726 Paulsen Bldg., Spokane
Wash.

Underwriter—R. L. Emacio &

subsequent commercial exploitation in the field of ion
exchange chemistry. Underwriter—Lee Higginson Corp.,
New York and Boston
(Mass.).

Co., Inc., Spokane.

Wash.
•

Gas

^ Jobbers Supply Co., Inc., Kansas City, Mo.
July 8 (letter of notification) 1,500 shares of preferred

Service Co.

May 22 filed 1,500.000 shares of
Proceeds—To be

used

common

stock (par $10)

stock.

by Cities Service Co. to increase

Webster

Securities

Corp.

and

Stern

Bros.

&

Telephone Co.
notification) $206,000 of 4%% first

mortgage bonds, series A, due Feb. 1, 1977.

Co.

and

Statement to be withdrawn.

accrued

May

Dynamics Corp.
common

bank loans made to acquire

pay

Consolidated

Lehman

Vultee

stock

(par $3)

Proceeds—To

a

block of 400,000 share?

Corp.
Underwriterhandle U. S. sales oi

to

shares, while Greenshields & Co., Inc., will handle Cana¬
distribution of a portion of the offering.
Offering

dian

General

Foods

filed

by

RR.

Banking Co.
June 17 filed certificates of deposit for 42,000 shares of
common stock.
It is planned to vote on a voluntary plan
of adjustment under which it is planned to
segregate the
business

of

the Georgia

RR. Bank

& Trust Co. and

due

1973 and $250,000
1954-1958, inclusive. Price—To be supplied by amend¬

ment.

Proceeds

bank loan.
cet

To

—

redeem

debentures

and

to

repay

Business—Manufacturer of ball bearing fau¬

washers, steel castings, hand tools, etc. Underwriters
Higginson Corp. and P. W. Brooks & Co., Inc., both

—Lee

of New York.
Finance Service, Inc., Jackson, Mich.
(letter of notification) 60.000 shares of class A
stock

common

for-share into

(par $1)—convertible share-

stock

common

(par $1).

Price

$5

—

per

share.

Proceeds—For working capital. Office—1203 Na¬
tional Bank Bldg., Jackson, Mich. Underwriter—Paul C.

Kimball &

Co., Chicago, 111.

Muntz TV

Inc., Chicago, III.
(letter of notification) 12,000 shares of common
stock (par $1). Price—At market (about $3.25 per share).
19

Proceeds—To

Earl W.

Muntz, President.
Co., New York.

L. D. Sherman &

Underwriter—

^ Murphy Ranch Mutual Water Co., Whittier, Calif.
July 10

(letter of notification) 500 shares of assessable
stock (assessments for other than actual cost of
delivery limited to $5 per share).
Price—$9.18
share. Proceeds—To Murphy Ranch Land Develop¬

common

water
per

Co.

ment
•

Underwriter—Perry-Monahan Realty Co.

National

Credit Card, Inc., Portland, Ore.
May 11 (letter of notification) 1,400 shares of 6% nonpreferred stock (par $100) and 1,400 shares

cumulative
of

stock

common

(no

being sold in units of one
Price—$101 per unit. Pro¬

par)

share of each class of stock.

For working capital. Business—Credit service.
Office—Times Building, Portland 4, Ore. Underwriter—

ceeds

—

None.
•

Natural Gas & Oil
17

filed

452,129

Corp., Shreveport
shares of

record

four

June

30

the

at

of

rate

(par $5)

stockholders of

common

share

new

one

(La.)

stock

common

for

each

shares

held; rights to expire on July 24.
Price—
$10 per share. Proceeds—To pay $1,500,000 debt and for
acquisition of properties and for exploratory drilling and
Underwriter—None.

Mississippi River
shares

Fuel* Corp. owner of 49.76% of the outstanding
will purchase any unsubscribed shares.
Nemaha

Oil

Co., Dallas, Tex.

June 29 (letter of notification) 260,000 shares of common

basis; rights to expire July 28. Price—$26 per
For improvements and additions to

stock (par $1).
Price—$1.15 per share^ Proceeds—For
drilling costs. Office—2206 Mercantile Bank Bldg., Dal¬

Proceeds

property.

of

record

June

1

on

—

Office—Lincoln, Neb.

Underwriter—None.

las,

Tex.

Underwriter—Carothers

&

Co.,

Inc.,

Dallas,

Tex.

Liquor Register, Inc., Roslindale, Mass.
July 3 (letter of notification) 2,100 shares of common
stock (par $5). Price—$16.50 per share.
Proceeds—For
working capital for device to dispense and record drinks.

the

railroad business and to place the company in a position
where it can obtain additional funds in the near future.
See also First Railroad & Banking Co. of

sinking fund debentures
of 4%% serial debentures due

a

stockholders

common

l-for-18

&

(7/23^

$1,500,000 of 6%

other expenses.

tion

Inc., South Bend,

Manufacturing Co., Detroit., Mich.

29 filed

Underwriter—None.

share.

Georgia

Miller

being offered for subscription by

Telephone & Telegraph Co.
June 19 (letter of notification) 9,446 shares of common
stock (par $16.66% per share) being offered for subscrip¬

Corp., New York
$5,400,000 aggregate amount of common
stock
(no par) issuable under the corporation's Em¬
ployee Savings-Investment Plan. Underwriter—None.
5

•

June

Keystone Helicopter Corp., Phila., Pa.
April 23 (letter of notification) 295,000 shares of com¬
mon stock
(par 10 cents). Price—$1 per share. Proceeds
—To purchase helicopter and equipment and for work¬
ing capital. Office—Land Title Bldg., Philadelphia, Pa.
Lincoln

—Temporarily postponed.
June

Laboratories, Inc., Elkhart, Ind.
(letter of notification) 5,400 shares of capital
(par $2). Price—$18.50 per share. Proceeds—To '
Cathryn Collins Keller, the selling stockholder. Under¬

June

i-

re¬

Aircraft

Brothers, New York,

Price—100%

Proceeds—For

Nebraska.

12 filed 250.000 shares of

Price—To be supplied by amendment.
of

interest.

general corporate
Underwriter—Wachob-Bender Corp., Omaha,

purposes.

General

—

Junction City (Kan.)
March 3 (letter of

bidding. Probable bidders: Blyth & Co., Inc. and Kidder,
Peabody & Co. (jointly); Smith, Barney & Co.; Stone
(jointly).

At par

($100 per share). Proceeds—For
working capital. Office—1515 McGee St., Kansas City 8,
Mo.
Underwriter—Ernest A. Tapp.

investment in Empire Gas & Fuel Co., another sub¬
sidiary. Underwriters—To be determined by competitive

&

Price

securities—

Reoffering had

16

June

Ionics, Inc., Cambridge, Mass.

June

Flavor

the

Miles

June

for

Co.,

(7/20-23)
131,784 shares of common stock (par $1).
supplied by amendment (between $8 and
$9 per share). Proceeds—To pay mortgage debt and for
equipment. Business
Research and development and

Underwriter—None.

12, La.

Price—To
repay

purposes.

Inc., New York.

Orleans

held.

Proceeds—To

corporate

for

15

rejected.

was

stock

Model

deben¬
1, 1973, to be offered for subscription by
at rate of $100 of debentures for each 20

capital stock

amendment.

debenture

June

on

bid

planned at 101.875 to yield 4.87%. July 6 com¬
sought SEC authority to borrow $20,000,000 from
banks on 3Y4% notes pending permanent financing.

convertible

tures due Aug.

other

5%

bid

This

5s.

been

June 29

International Telephone &
Telegraph Co.
June 26 filed $35,883,300 of
20-year convertible

^ First Louisiana Finance Co., New Orleans, La.
$25,000 of

to be used to activate the company

are

•

stockholders

only

for

pany

in the loan and finance business.

July 9

of notification)

are

at $1 per share to hold¬
special participating contracts, the

Commercial's

proceeds of which

-—None.

(letter

300,000 shares have been and

being offered for sale in Arizona
ers

100.125

35

Indiana.

July 2 filed 2,500,000 shares of class A non-voting com¬
mon stock
(par $1) to be offered to present and future
holders of Special Participating Life Insurance Contracts

working capital.
& Winslow, Inc.,
No general offering planned.

the

entered

writer—Albert McGann Securities Co.,

Phoenix, Ariz.

share.
Proceeds—For
Underwriter—Chace, Whiteside, West
per

$25 deben¬

Office — 509 Bank St., Wallace, Idaho.
Underwriter—Mine Financing, Inc., Spokane, Wash.

Farrington Manufacturing Co., Boston, Mass.
July 6 (letter of notification) 1,600 shares of class A
common stock
(par $10). Price—At market (estimated
$11.25

a

Mining Co., Wallace, Idaho
(letter of notification) 160,000 shares of common

stock.

Colo.

at

share of stock and

one

Hunter Creek
June 2

Office—528 E and C Bldg.,

Underwriter—E. I. Shelley Co., Denver,

Colo.

Denver,

to be offered for subscription by stock¬

iOUu,

Price—$30 per unit. Proceeds—To repay $300,000
bank debt and for working capital. Underwriter—None.

(letter of notification) 3,616,000 shares of Class
common stock.
Price—At par (five cents pep*share).

June 25
A

x,

ture.

Corp., Denver, Colo.

Gas

nu6.

(231)

holders in units of

warehouse.

new

Fallon

..

Office—596
Coburn &

Georgia under

"Prospective Offerings" below.

Poplar St., Roslindale, Mass. Underwriter—
Middlebrook, Inc., Boston, Mass.

Lone Star Sulphur Corp.,

Noryn Mines Ltd., Hull, Quebec, Canada
April z'S filed 500,000 shares of common stock (par $1).
Price—50 cents per share. Proceeds—To repay loans and
for other corporate purposes. Underwriter—None.
Northlands

Oils Ltd., Canada
1,000,000 shares of capital stock (par 200
Canadian)
and subscription
warrants
for
600,000
shares, which statement was amended May 20 to 200,000

Nov. 21 filed

Wilmington, Del.

—

May 8 filed 600,000 shares of

Grand Bahama Co.. Ltd., Nassau

Feb. 3 filed $1,350,000 20-year 6% first mortgage conver¬
tible debentures due March, 1973, and
1,565,000 shares
of class A stock (par 10 cents).
Price—Par for deben¬

to be offered for

tures

For expansion program.

and

$1 per share for stock.

construction.

Business

—

Hotel

Proceeds

and

land

—

For

record

tion."

new

•

June

22

stock

(

River

Mutual Telephone Corp.

fice—924 Main

one

new

be supplied

porate

par. Proceeds—For working capital. Of¬
St., Trenton, Mo. Underwriter—None.

for

For

Offering

—

(7/17)

July 6 (letter of notification) 748,000 shares of common
stock
(par 10 cents).
Price—40 cents per share. ^Pro¬
ceeds—To retire loans payable and to develop
]£aseholds.

Office—Wilson Tower Bldg., Corpus
Underwriter—Hunter Securities Corp., New

Christ^.,Tex.
York,,^

Hartford

Special Machinery Co.
"*38*
7,500 shares of common
stock to be offered for subscription
by present sijpckholders.
Price—At par ($20 per share).
Procepds^p-^n
purchase equipment and for working capital.
Officc^:287
1

(letter of notification)

Homstead
•

Ave., Hartford, Conn.

Underwriter—Nope.

Home

Telephone & Telegraph Co., Emporia,Va.
June 18 (letter of notification) 40,320 shares of common
stock (par $5) being offered for
subscription by common
stockholders
shares held

on

as

the

basis of

one

new

share for eacl* six

of July 9; rights to expire on July 29.
J$rice

—$5.50 per share.

Proceeds—To pay off short-term loans.
Underwriter—None.
-

Hotel Drake

June

12

$339,325

filed

of

Corp., New York

13,573 shares of capital stock (par $5) «%nd
10-year cumulative income debentures

4%




one

new

share

Underwriter—None.
Inc.,

Fort Lauderdale,

working capital,

Price—$1

etc.

.

Fla.
common

share. Proceeds—
Underwriters—Atwill & Co.,
per

WHitehall 3-2181. Offering—Date indefinite.

^ Miami Window Corp., Miami, Fla.
July 9 (letter of notification) 150,000 shares of preferred
stock.
Price—At par
($2 per share).
Proceeds—To
liquidate obligations and for payment of current accounts
and working capital.
Office—5200 N. W. 37th Ave.,
Miami, Fla.
Underwriter—Atwill & Co., Miami Beach,
Michigan Consolidated Gas Co.
May 15 filed $20,000,000 of first mortgage bonds due 1978,
sale

of

bonds, plus proceeds from sale

of 215,000 shares of common stock (par $14) to American

Natural

Gas Co., parent, for $3,010,000, to be used to
bank loans and for construction program. Bids—
A group headed jointly by Halsey, Stuart & Co., Inc.,
Harriman Ripley & Co., Inc. and Union Securities Corp.

warrants

writer—M. S.

to

purchase

200,000

shares

share of stock and

one

to

be

warrant.

one

Gerber, Inc., New York.

Ohio Oil Co.

July 9 filed with the Ohio Oil Co. Thrift Plan $15,000,000
participations in the plan and 268,456 underlying
shares of Ohio Oil Co. capital stock (no par).

of

Overland Oil, Inc., Denver, Colo.
10 filed 600,000 shares of common

to

be

stock (par 100)
subscription by stockholders (except
incorporators) at rate of one new share for

offered

the original
each two

for

shares held.

ceeds—For

Price—40

working capital.

Palestine Economic Corp.,

Price—$28
Israel

share.

per

cents

share.

per

Pro¬

Underwriter—None.

March 6 filed 100,000 shares of

New York
common

Proceeds

—

For

stock (par $25).

development

industry, etc., and for working capital.

of

Under¬

writer—None.
Paramount Pictures

Corp.

June 30 filed 36,500 shares of common stock (par $1) to
be offered from time to time on the New York Stock

Exchange. Price—At the market. Proceeds—To Barney
Balaban, President, and Tillie Balaban, his wife, who
are the selling stockholders.
Underwriter—None.
Pecos

Exploration Co., Dallas, Tex.

(7/20)

June 17 filed 1,725,000 shares of common stock (par five

cents), of which
subscription
on

Florida.

Proceeds—From

and

Price—75 cents per unit. Proceeds—For drilling of addi¬
tional wells and to purchase producing wells. Under¬

Beach, Fla.; and Emco, Inc., Palm Beach, Fla.

(Glenn), Inc.
June 12 filed 10,000,000 shares of common stock (par 25
cents). Price—$2 per share. Proceeds—For drilling of
exploratory wells, acquisition of leases and for general
corporate purposes. Underwriter—B. V. Christie & Co.,
Houston, Tex. Dealer Relations Representative—George
A. Searight, 50 Broadway, New York, N. Y. Telephone

repay

shares

offered in units of

June

(letter of notification) 299,500 shares of

(par 33Vz cents).

Miami

No

July 7 at rate of

McCarthy

Great Western Oil & Gas Co.

June

of record

shares

per

June 26

by amendment.

None.

11

Mackey Airlines,
stock

—

a specula¬
by amendment. Proceeds—
Underwriter—None.

M Oil

&

cisco, Calif.

Pricj!—To
Proceeds—pFor general cor¬

Underwriter

share-for-share basis "as

held; rights to expire July 29.
Price
share.
Proceeds—To repay bank loan and
working capital. Office—155 Sansome St., San Fran¬

share for each four shares held.

purposes.

M

—$1.10

definite plan adopted.
•

M J

for each

Gray Manufacturing Co., Hartford, Conn.
May 1 filed 55,313 shares of capital stock (par $5) to be
offered for subscription by stockholders on
th&. basis
of

a

stockholders of

Price—To be supplied

stockholders

(letter of notification) 8,000 shares of common
$5) and 1,000 shares of preferred stock (par

par

$45). Price—At

on

stock (par 5 cents)

common

Co., San Francisco, Calif.
June 23 (letter of notification) 265,232 shares of capital
stock (par 10 cents) being offered for subscription by

development.

Underwriter—Gearhart & Otis, Inc., New York.
Grand

May 8

common

subscription by

and up

for

Price—33
penses,

Atlanta

one

on

each

cents

etc.

are

to

be offered for

Pecos share for each Leon share held;

to 575,000 shares

erty dividend
stock

1,150,000 shares

by stockholders of Leon Land & Cattle Co.

the basis of

the

Leon
per

are

basis

to be distributed

of

share

share.

Underwriter

one-half

held

on

or

as

share

a

of

prop¬

Pecos

about

Proceeds—For

July 20.
drilling ex¬

None, but Beer & Co., of
(Ga.), New Orleans (La.) and Dallas (Tex.) will
—

solicit the exercise of warrants.

Continued

on

page

36'

36

The Commercial and Financial Chronicle

(232)

Continued from page
•JL-

35

Chemical Co.,

Pedlow-Nease

Inc.

—

^

(letter of notification) 2,000 shares of capital
stock (no par) to be offered to stockholders of record
June 29 at rate of one new share for each five shares
July

9

per share.
Proceeds—For working
Office—Lock Haven, Pa.
Underwriter—None.

Price—$10

held

capital.

Pennsylvania & Southern Gas Co.
(letter of notification) 98,240 shares of common
stock (par 25 cents) being first offered for subscription
by common stockholders of record June 1 at rate of one
new share for each share held
(with an oversubscrip¬
June 1

15; and
shares to
Proceeds
—To retire $65,000 short-term debt and for working
capital. Office—111 Quimby St., Westfield, N. J. Un¬
privilege), with rights to expire on July

tion

then to preferred stockholders. Unsubscribed
be offered publicly.
Price—$1.50 per share.

derwriter—None.

Peruvian Oil

Concessions Co., Inc.

Jan. 16 filed 9,000,000

shares of common stock (par $1)

{amended April 24 to 1,000,000 shares). Price—$2 per
general corporate purposes. Business—Plans to produce and sell petroleum and its prod¬
ucts from lands to be held under concession from the
Peruvian Government. Underwriter—B. G. Phillips &
■hare. Proceeds—For

Co., New York.
Corp., Santa Fe, N. M. (7/21)
June 30 (letter of notification) 99,800 shares of preferred
Petaca Mining

and 199,600 shares of common stock
(par 10 cents) to be offered in units of one preferred
and two common stocks. Price—$3 per unit. Proceeds—
stock (par 50 cents)

For mining

equipment and construction costs. Office—
Road, Santa Fe, N. M. Underwriter—McGrath Securities Corp., New York.

3000 Cerrillos

Phillips Petroleum Co.
June 11 filed $25,000,000 of participation

Southern Bell Telephone & Telegraph Co.
April 9 filed $30,000,000 of 24-year debentures due May 1,
1977.
Proceeds
To repay advances from American
Telephone & Telegraph Co., the parent. Underwriters—
To

by competitive bidding.
Probable
Halsey, Stuart & Co. Inc.; Morgan Stanley &
Co.; Kuhn, Loeb & Co.; The First Boston Corp. Bids—

Received

the

com¬

May 5 but rejected.

on

(par $1) to be offered pursuant to stock purchase
options. Price — $10 per share. Proceeds—For general
corporate purposes. Office — 1705 South Mountain Ave.,

Duarte, Calif.

Underwriter—None.

★ State Bond & Mortgage Co., New Ulm, Minn.
July 14 filed $10,000,000 of Accumulative Certificates,
17.

★ State Loan & Finance Corp.,
Washington, D. C. (8/4)
July 14 filed $2,750,000 of 5% 7-year sinking fund sub¬
ordinated debentures due April 1, 1960.
Price—To be
supplied by amendment.
Proceeds—To
reduce bank
loans.

Underwriter—Johnston,

Broadway, New York, and

mon

Powdercraft

Corp., Spartanburg, S. C.
June 3 (letter of notification) 5,000 shares of capital "
.stock.
Price—At par ($10 per share).
Proceeds—For
working capital. Business—Makes machine parts. Office
746 Hayne St., Spartanburg, S. C.
Underwriter—Cal¬
houn & Co., Spartanburg, S. C.
*

Providence

Park, Inc., New Orleans, La. (7/20)
July 7 (letter of notification) 33,333 shares of common
stock (par $1). Price—$3 per share.
Proceeds—To de¬
velop and improve property for cemetery. Office—516
Carondelet Bldg., New Orleans, La. Underwriter—Woolfolk & Shober, New Orleans, La.
•

Richfield

Oil

Corp., Los Angeles, Calif.

of record

share for

July 13, 1953

each two

purchaseable under the Plan.

Ridley Mines Holding Co., Grafton, N. D.
June 1 filed

($5

par

per

120,000 shares of common stock. Price—At
share). Proceeds — For working capital.

Underwriter—None.

Price—$3

—

Room 315, Salt Lake
•

Saint Anne's

Oil

City, Utah.

Underwriter—None.

Production

Co.

(7/22)

April 23 filed 270,000 shares of common stock (par $1).
jPiriee—$5 per share.
Proceeds—To acquire stock of
Ueb-Tex Oil Co., to pay loans and for
working capital.
Office—North wood, Iowa. Underwriter—Sills, Fairman
-3c Harris of

Chicago, 111.

Texas

ton, Tex.
★

common stock (par 25
share. Proceeds—To purchase and
leaseholdes, royalties and producing properties, to
prospect for oil and gas and to develop and operate

writer

Office—Mt.

Vernon, 111. Under¬
Co., New York. Offering —

Indefinitely postponed.
Sciliitoe

(Edgar L.), Inc. (N. Y.
May 25 (letter of notification) 298,000 shares of com>mon stock (par one cent).
Price—$1 per share. Proceeds
—To acquire plant, machinery and
equipment; and for
•working capital. Office—10-15 Spruce St., New York.
Easiness
♦chanical

Manufacturer of electronic and electro-medevices. Underwriter
Nielsen &

—

Co., New

—

York, N. Y. Offering—Temporarily postponed.
Skiatron

Electronics & Television

wtock
per

(letter of notification) 15,000 shares of
(par 100). Price—At the market (about

share—$2.12per share to underwriter).

—To

demonstrate

York City.

"Subscriber-Vision."

Underwriter

—

Office

common

$2-$2M>

Proceeds
—

New

Wright, Wood & Co., Phila¬

Soundscriber
4

Corp., New Haven, Conn.
to letter
of notification)
15,588
(no par). Price—$6.25 per share.

(amendment

shares of capital stock

Proceeds—For
'.Business
machines.

—

payment of debt and
Manufacture of dictating

Office

—

146 Munson

Underwriter—None.

working

capital.

and transcribing
St., New Haven, Conn.

Southeastern Fund, Columbia, S. C.
June 26 (letter of
notification) 116,016 shares of common
stock (par $1) to be offered to
stockholders through
transferable warrants; unsubscribed shares to be
offered

*°

J?,VbIi£. o?wCe

~~ To stockholders, $2.15 per share; to
per share.
Proceeds—For working cap¬
Office—Palmetto State Life
Bldg., Columbia, S. C

public, $2.37 V2
ital.

.Underwriter—None.




(8/10)

Textron

be

to

5%

four basis.

1,125,000 addi¬
private sale of $55,000,000 first mortgage bonds, to be used to build a 1,030
mile crude oil pipeline.
Underwriters—White, Weld &
Co. and Union Securities Corp., both of New York. Of¬
fering—Postponed indefinitely.
tional shares of

common

stock and

West Coast Pipe Line Co., Dallas, Tex.

1,125,000 shares of common stock (par 50
cents). Price—To be supplied by amendment. Proceeds
—Together with other funds, to be used to build pipe¬
line. Underwriters
White, Weld & Co. and Union Se¬
curities Corp., both of New York. Offering—Postponed
—

indefinitely.
Western

Light & Telephone Co., Inc. ,(7/21)

June 29 filed $3,000,000 of first mortgage bonds, series G»
due July 1, 1983.
Price—To be supplied by amendment.
Proceeds—To repay bank loans and for new construction.

Underwriter—Harris, Hall & Co. (Inc.),
Offering—Expected on or about July 21.
Western
June

8

Natural

Gas

Chicago,

I1L

Co., Houston, Tex.
7,030 shares of 5% pre¬

(letter of notification)

Price—At pair

(par $30 per share). Proceeds — For operating capital.
Office—1006 Main St., Houston 2, Tex.
Underwriter—
None.
Western-Nebraska

Oil Co., Inc.,
Albuquerque, N. M. (7/21)
June 29 (letter of notification) 299,950 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—•
For drilling expenses and equipment. Office—2929 Monte
Vista Blvd., Albuquerque, N. M. Underwriter—Israel &

offered

in

exchange

cumulative preferred
a

for

the

on a

A

19,719

stock, series A

subsidiary,

(par

one-for-

Offer to expire Sept. 30, 1953.

of

trust

plans
Underwriier—None.

B.

Proceeds—For

investment.

Carbide

& Carbon Corp.
500,000 shares of capital stock (no par)
to be offered under "The Savings Plan for Employees of
the Corporation and U. S. Subsidiary Companies."
filed

17

United Gas

Corp., Shreveport, La. (7/24)
1,171,863 shares of common stock (par $10)
to be offered for subscription by common stockholders at
June 26 filed

the rate

of

one

share for each 10 shares held

new

as

of

record

July 23 (with an oversubscription privilege);
rights to expire on or about Aug. 14.
Price—To be sup¬
plied by amendment (to be determined on July 20).
repayment

of

bank

loans

bonds

to

be offered

convertible

to stockholders

on

the

basis

at

of

rate

one

share of

common

of

one

Bonds
stock

are

(par

each $25 principal amount of bonds within
after date of bond. Price—At par (in de¬
nominations of $100, $500 and $1,000).
Proceeds — For
$10)

for

seven

years

expansion, etc.

Office—Arctic Bldg., Seattle, Wash.

Un¬

Western Safflower Corp.
April 9 (letter of notification) 240,000 shares of common
itock (par 25 cents). Price—$1.25 per share. Proceeds—
To construct plant. Office—First National Bank Bldg.,

Colorado

Funds, Inc., Boston, Mass.
July 14 filed 2,500 ($3,000,000) of Commonwealth Fund
indenture of trust plan A and 1,150 ($1,380,000) of in¬
denture

it Western Pacific Insurance Co., Seattle, Wash.
July 9 (letter of notification) $240,000 of 6% convertible

derwriter—None.

ic Trusteed

★

—

$100 bond for each 17 shares of stock owned.

Incorporated, Providence, R. I.

$100)

shares of

June

Price

Proceeds—From sale of units and

Co., New York.

Underwriter—Vickers Brothers, New York.

and

for

new

Underwriter—None.

Springs, Colo. Underwriter—E. I. Shelley Co.j

Denver, Colo.
Williston

Basin

Oil

Exploration Co.

(7/20)

June 17

(letter of notification) 1,000,000 shares of com¬
mon stock (par 10 cents).
Price—Expected at around 30
cents per share. Proceeds—For working capital. Office—
209 Atlas

Bldg., Salt Lake City, Utah.

Underwriter—J.

A. Hogle & Co., Salt Lake City.
York County Gas Co.
May 25 (letter of notification) 6,000 shares of common
itock

(par $20) being offered for subscription by
stockholders of record June 17 at rate

mon

share for each

tion

12

shares owned

(with

of

com¬

one

new

oversubscrip¬

an

privilege); rights to expire July 14. Price—$40

per

share. Proceeds—From sale of stock, together with $600,000 to be received from sale of first mortgage bonds to

$600,000

repay

Office—127

bank

West

loans

Market

and

for

new

construction.

St., York, Pa. Underwriter—

None.

United Mining & Leasing Corp.
Central City, Colo.

May 4 (letter of notification) 115,000 shares of
stock.

Price—At

(10 cents

par

For mining equipment.

per

Underwriter

share).
—

common

R. L. Hughes &

U. S. Airlines, Inc., New York
May 28 filed 1,000,000 shares of common stock (par 5
cents). Price—To be supplied by amendment. Proceeds
—For working capital, etc.
Underwriter—Gearhart &

Otis, Inc., New York.

America, Davenport, Iowa
(letter of notification) 10,000 shares of

Allied Stores Corp.
June 16 stockholders voted
cumulative

common

stock. Price
$10 per share. Proceeds — For working
capital. Underwriter—A. J. Boldt & Co., Davenport, la.

preferred

April 24 filed 660,000 shares of common stock (par $1)
which 550,000 shares will be offered in the United

of

States and

share in U.

110,000 shares in Canada.
S.

and

$1

Price

share in Canada.

per

—

$1.02

For

general corporate purposes. Underwriier—Sidney S.
Walcott, President of company, Buffalo, N. Y.

Washington Water Power Co.
May 7 filed 1,088,940 shares of $1.28 cumulative con¬
vertible preferred stock (par $25) and 1,088,939 shares of

Allis-Chalmers

authorized
to 5,000,000
*Hous

shares (par $20). It is not presently planned
the additional stock. Underwriter—Prewas handled by Blyth & Co., Inc.

financing

•

American

Fidelity & Casualty Co.

with

about

a

14-day

Geyer

&

ferred

June 1 it

Sound

one-half

common

ceive cash

at

share

of

common

for

each

Puget

share to holders who do not elect to

the

rate

of

$27 per share.

re¬

Underwriter—

Webb

&

Knapo, Inc., New York/
June 29 filed 3,000,000 shares of common stock (par 10
cents), of which 100,000 shares are to be offered after
effective date; the remaining 2,900,000 shares will be
offered from time to time prior to July 15, 1954. Price—*■

(8/20)

standby.
Price — To be named
working capital.
Underwriter—

Co., New York.

Arizona

ent

Bancorporation, Phoenix, Ariz.
announced corporation plans to offer pres¬
stockholders the right to subscribe after July 15 for

100,000
of

None.

proposal to increase the

July 8 it was stated registration is planned around
July 28 of about 100,000 shares of convertible preferred
stock (par $5) to be offered for subscription by common
stockholders about Aug. 20 on a share-for-share basis;

er

and

a

to issue any of

the proposed merger into company of Puget Sound Pow¬
& Light Co. on the basis of one-half share of pre¬

(no par) to be issued in connection with

Brothers* New

stock from 3,750,000 shares (no par)

Proceeds—For

stock

authorized

Mfg. Co.

common

later.

common

the

Traditional underwriter: Lehman

May 6 stockholders approved

per

Proceeds—

increase

York.

—

Canada

to

stock

(par $100) from 267,486
shares to 400,000 shares and the authorized common stock
(no par) from 2,500,000 to 4,000,000 shares. The company
has no plans for the immediate issue of any of the new

shares.

Vault Co. of
March 2

Prospective Offerings

Proceeds—

Co., Denver, Colo.

Walburt Oils Ltd., Toronto,

delphia, Pa.
June

Sulphur Co.

June 25 filed 4,930 shares of 4% preferred stock, series

Corp.

June 2

Proceeds—For

Co., Fort Worth, Tex.
250,000 shares of common stock (par 10).
Price—$5 per share.
Proceeds—To repay bank loans
and' for
general
corporate purposes.
Underwriter —
Piper, Jaffray & Hopwood, Minneapolis, Minn.

(par

share of stock.

ment.

common

one

new

filed

June 21

per

L. H. Rothchild &

—

one

expire March

Texota Oil

Proceeds—For

«iell

basis of

a

400,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—To finance cost
of drilling test wells of sulphur reserves. Office—Hous¬

Alarch 25 filed 150,000 shares of

producing properties.

International

stock (par 50
$50 debenture and
To be supplied by amend¬

15, 1964, and 580,000 shares of
cents) to be offered in units of

filed

29

construction.

Schlafly Nolan Oil Co., Inc.
•cents). Price—$4

share.

per

Pipe Line Co., Dallas, Tex.

Nov. 20 filed $29,000,000 12-year 6% debentures due Dec.

ferred stock to be offered to stockholders.
com¬

licensing
activities and improving patent position and for work¬
ing capital. Office — 191 Main St., Tarrytown, N. Y.
1955.

Union

jk Robbins Ethol Corp., Salt Lake City, Utah
July 10 (letter of notificaiton) 24,500 shares of capital
stock. Price
At par ($1 per share). Proceeds — For
•working capital. Office — 28 West Second South St.,

on

shares held; rights to

$25) of Textron Puerto Rico,

June 22 filed $5,425,000 of interests in Employees Stock
Purchase Plan and 100,000 shares of common stock of the
-company

136 Locust St+, Jerome, Ida.
Co., New York.

Securities

stock (par 40 cents) to be offered to common stock¬

holders

Underwriter

other interests.

.

West Coast

Wash¬

Technograph Printed Electronics Inc.
26 (letter of notification) 99,906.2 shares of

June

about Aug. 1, 1953.

Co.,

June

Underwriter—None.

on or

&

★ Sun Valley Mining Corp., Jerome, Ida. (7/22)
Aug. 9 (letter of notification) 299,000 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—For
acquisition of mill and working capital. Offices — 150

be placed

in effect

Lemon

ington, D. C.

Underwriter—Miller

and

estate

President
11,567,804.7 shares-

owns

Nov. 20 filed

Underwriter—None.

Thrift Plan and 444,444 shares of its common
.stock purchasable under the plan on the open market
;at current market prices.
It is contemplated plan will
pany's

common

stock

series

Business—Real

one

ir Southwest Products Co., Duarte, Calif.
July 8 (letter of notification) 3,000 shares of

who

stockholder

selling

—None.

determined

bidders:

3,

in

be

.Thursday, July 16, 1953

Proceeds—To William Zeckendorf,

At market.
and

..

one

per

was

additional
new

shares of

capital stock

share for each two shares held.

on

the'basis

Price

—

$10

share. Underwriter—None.

Arkansas

March 20 it

Power & Light
was

Co.

announced that company may consider

refunding the outstanding 47,609 shares of $7 preferred
stock

(no par) and 45,891 shares of $6 preferred stock

1

Number 5238... The Commercial and Financial Chronicle

Volume 178

(233)

To be determined by competitive bidding. Probable bid¬

Central Louisiana Electric Co., Inc.
April 16 stockholders authorized a block of the author¬

ders.

ized

(no par), both callable at $110 per share. Underwriters—
Blyth

and Equitable

& Co., Inc,

Securities Corp.

(jointly); W. C. Langley & Co., and The First Boston
Corp. (jointly); Kidder, Peabody & Co., and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Union Securi¬
ties Corp.

Atlantic

termined.

Stockholders

authorized

debt

from

voted

May

$75,000,000

be used to

help

pay

5

increase

$150,000,000.

to

for

to

The exact
to be de¬

received

was

fihat

by

the

RFC

at

Room

bonds

offered

bb

may

again

the

in

coming

months.
Bates

Manufacturing Co.

June 25 it
sell

was

750,000

ceeds—To

reported

additional

purchase

writers—Probably

of

properties

Coffin

common

in

the

Pro¬

stock.

South.

Under¬

&

announced

was

company

—

«& Co. Inc. and The First California

Brunner

June 23 it

$1,500,000

reported

Central Power & Light Co.
March

15-year

.•]$250,000 of preferred stock presently held by Prudential
insurance Co. of America, and for working capital. Pre¬
ferred shares may be exchanged for part of debentures.
^Underwriters—Allen & Co., New York, and Mohawk
Valley Investing Co., Utica, N. Y. Offering—Expected in
-August.
Central

June 18 it

Bank & Trust

Co., Denver, Colo.

announced company plans to offer to its
100,000 additional shares of capital stock
(par $10) on the basis of two additional shares for each
"ithree shares held after 50% stock distribution. Price—
-"$14 per share. Proceeds—Tojncrease capital and surplus.
was

^stockholders

Underwriters

Boettcher

& Co. and Peters, Writer,
Meeting—Stockholders will meet July

—

dhristensen, Inc.

J7 to increase capitalization.

Central

Hudson Gas & Electric

Corp.
June 16 Ernest R. Acker, President, announced that com¬
pany plans to offer (1) approximately 140,000 shares of
stock to stockholders at rate of

each

15

one

new

share

shares

held; (2) 20,000 shares of common
r-stock to employees; and (3) $6,000,000 of convertible de¬
bentures to public. Proceeds—To pay off bank loans and
ifor construction program. Underwriters—Probably Kid¬
der, Peabody & Co. and Estabrook & Co. (jointly). Of¬
fering—Expected early in September,
i
(7/20)
^Bids will be received by the United Gas Improvement
•Co., at 146l Arch St., Philadelphia 5, Pa., up to 3:45 p.m.
(EDT) on July 20 for the purchase from it of 35,340
of

Probable

.Inc.;

common

bidders:

Harriman

stock

Union

Ripley

of

Central

Illinois

Central

Light

Co.

Securities Corp.; Blyth &

&

Inc.; Stone
Corp.; Glore, Forgan & Co.

^Securities

Co.,

&

Co.,
Webster

reported that the company may about
ranid-July sell about $6,000,000 additional common stock
<first to common stockholders). Underwriter—The First
was

Boston Corp., New York.

blowing
Our clients
their tops

your
never

top?

blow

issue and sell
Underwriters—To

may

preferred stock.

new

be determined by competitive
Stone & Webster Securities

is routine at

bidding. Probable bidders;

Chicago & North Western Ry.
received

by

the

Stuart &

Co.

Jan. 9 it

400

West

15, 1953 and to mature in
Probable

bidders:

Halsey,

experience

in

every

type

corporate and legal printing

Sorg,

from

design

financial,

of
.

.

.

handled,

through mailing.

den, Stone & Co., New York.

Offering—Postponed.

announced company plans to

was

issue and

sell later this year $40,000,000 of new debentures. Pro¬
ceeds—To repay bank loans and for construction
pro¬
gram. Underwriters—To be determined by competitive

bidding. Probable bidders: Halsey,
Morgan Stanley & Co.

Stuart &

Co. Inc.;

June 23 the FPC authorized the company to issue
up to

short-term

promissory notes to banks (this
already outstanding). These will be
paid off by permanent financing with mortgage bonds
to be undertaken during the latter
part of February or
early part of March, 1954. Previous bond financing was
includes $1,600,000

Delaware Power & Light Co.
the

stockholders approved

authorized

preferred

a

proposal to increase
200,000 shares to

stock from

300,000 shares (par $100). Probable bidders for any new
preferred stock financing may include Blyth & Co., Inc.,
and The First Boston Corp. (jointly); White, Weld & Co.
and Shields & Co. (jointly); Lehman Brothers; W. C.
Langley & Co. and Union Securities Corp. (jointly);
Morgan Stanley & Co.
Stuart Cooper, President, said
it is possible that common stock may be sold later in
the year.
•

Denver

July

7

sell

it

&

Rio

was

$3,300,000

Probable
Bros.

Grande

reported

Western

that

additional

bidders:

the

RR.

(8/31)

company

equipment

proposes

trust

to

certificates.

Halsey, Stuart & Co. Inc.; Salomon

& Hutzler.

Detroit

March 24

Edison
it

was

(about $55,000,000 to
which

may

carry an

first

costs.

plans to issue

an

be

interest rate not exceeding
for subscription by

offered

authorized the

Meeting—Stockholders

new

debentures.

April 14
Underwriter—None.
on

Ar Duke Power Co. (9/1)
July 9 company announced

it plans to issue and sell
$35,000,000 first and refunding mortgage bonds, due
1983, and 208,321 additional shares of common stock (the
latter to stockholders on a l-for-20 basis). Underwriters
—(1) For bonds, to be determined by competitive bid¬
ding. Probable bidders: Halsey, Stuart & Co. Inc.; Mor¬
gan Stanley & Co.; Stone & Webster Securities Corp.;
The First Boston Corp.
(2) For stock, no underwriters.
Proceeds—For construction program.
Bids—For bonds,
expected to be opened on Sept. 1.
was

collateral

announced company plans
trust mortgage bonds due

sale of $7,000,1973.

Under¬

(jointly); The
Corp., White, Weld & Co. and Kidder, Pea¬
body & Co. (jointly); Glore, Forgan & Co. and Harriman
Ripley & Co. Inc. (jointly).
El Paso Natural Gas Co.
March

25

it

was

announced

plans

to place
privately $120,000,000 of first mortgage bonds and sell
publicy $25,000,000 debentures in addition to 200,000
shares of preferred stock registered June 26 with SEC.
•

company

811 SIIUIH SI., NEW Y0I1K 38. N.Y.

Sinanced/,




'{laifioititL ZpiintiM

the

10

right

stockholders

to
capital stock

Connecticut

P.

to

U.

sell

Commission

authorized

$200,000 of first mortgage

value

par

latter first

of

stock

common

(the

stockholders). Proceeds—To retire bank

Bids

Ohio RR.

(8/12)

are

expected to be received by
Aug. 12 for the purchase from it of
trust
Co.

the

company

on

$4,500,000 equipment
Probable bidders: Halsey, Stuart &

certificates.

Inc.; Salomon Bros.

& Hutzler.

July 9 company sought Illinois Commerce Commission
to issue and sell
568,703 shares of capital stock (par $100)
(American Telephone & Telegraph Co.,
parent, owns all but about 4,000 shares of
outstanding
stock).
Proceeds
To
retire
indebtedness to parent

to stockholders

—

Underwriter—None.

V

Iowa Electric Light & Power Co.
April 13 it was reported company may sell in June some
common and preferred stock
and/or debentures. Under¬
writers
For stock: The First Boston
Corp. and G. H.
Walker & Co., both of New York. Previous
debt financ¬
ing was done privately.
—

Iowa-Illinois Gas & Electric Co.
15 it was reported company may

issue and sell
early in 1954 about $6,000,000 aggregate amount of com¬
mon stock. Underwriters—To
be determined by competi¬
tive bidding. Probable bidders: Lehman
Brothers; The
First Boston Corp.; Merrill
Lynch,
Beane, Harriman Ripley & Co. Inc.
„

Jones

June
of

(B. F.)

10

it

was

Oil Co.

of

record

subscribe

for

(par $25)

on

that

24,350

date

the basis of

one

given
shares of
new share

were

&

(7/28)

per

common stock (par 10
cents).
Proceeds—For working capital and

share.

general corporate purposes.
Reuss & Co., New York.

Underwriter—McLaughlin,

Kansas-Nebraska Natural Gas Co., Inc.
12 it was reported company may issue

May

about $4,750,000 first mortgage bonds.

and

sell

Proceeds—To

re¬

$800,000 bank loans and for new construction.
Underwriter—Central Republic Co., Inc., Chicago, 111.
*
pay

Bank, Chicago, III.

June 25 stockholders of record June
24, 1953 were given
the right to subscribe on or before
July 24 for 20,000
additional shares of capital stock (par $25) on the basis
of one new share for each four shares held.
Price—$40
per

share. Proceeds

—

increase

To

capital and surplus.

Underwriter—The Illinois Co., Chicago, 111.

Long Island Lighting Co.
April 21 it was announced that
to

of

issue and

sell

in the

company this Fall plan*
neighborhood of 600,000 share*

stock to be followed in the latter part of
the year by an issue of about
$25,000,000 of first mort¬
new

common

bonds

gage

series

(this

is

C preferred

May 7).

in

addition

stock,

Proceeds—To

par

repay

to

100,000

shares

of

$100, offered publicly

on

bank loans

and for

new

construction. Underwriters
(1) For common stock,
probably Blyth & Co., Inc. and The First Boston Corp*
(jointly). (2) For bonds to be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
/Inc.; Blyth & Co., Inc. and The First Boston Corp.
(jointly); W. C. Langley & Co.; Smith, Barney & Co.
—

Louisiana

June 10 it
sell

in

Power &

was

Light Co.

(9/15)

announced company expects

September

$12,000,000

to issue and

first

mortgage bond*.
Underwriters—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb
& Co., Lehman Brothers and A. C. Allyn & Co., Inc.
(jointly); Blyth & Co., Inc.; White, Weld & Co. and

Shields & Co. (jointly); Salomon Bros. &
Hutzler; W. C.
Langley & Co., The First Boston Corp., and Glore, For¬
gan & Co. (jointly); Merrill Lynch, Pierce, Fenner &
Beane and Kidder, Peabody & Co.
(jointly); Harriman
Ripley & Co., Inc.; Equitable Securities Corp. Bids—
Expected to be received on Sept. 15.
Registration—

April

11.

Brewing Co., Los Angeles, Calif.

18 it

was

announced

additional shares of
rate

for each

three shares held; rights to expire on July 28.
Price—$55 per share.
Underwriters — Alex. Brown &
Sons; Baker, Watts & Co. and John C. Legg & Co., all
of Baltimore, Md.

Fenner

299,600 shares of Class A

Price—$1

Maier

additional

Pierce,

reported company plans issue and sale

Planned for Aug.

Fidelity Trust Co. of Baltimore

July

PRINTING CO., Inr.

the

LaSalle National
company

stockholders. Proceeds—To retire bank loans and to meet
construction

7

company to issue and
bonds and $483,000

Co.

announced

unspecified amount o.f convertible debentures due 1963
4%)

May

May

privately.

April 21

the growth of the
corporation warrants.

company.

Community Public Service Co.

done

annually. The management

that, under present plans, these shares will be is¬

as

★ Illinois Bell Telephone Co.

System, Inc.

Underwriter—White, Weld & Co., New York.

SORG

18 stockholders authorized an issue of
3,000 shares
of preferred stock
(par $100) to carry a cumulative divi¬
dend rate not to exceed 6%

★ Gulf, Mobile &

Co. and Stone & Webster Securities Corp.

They know the quality they can expect
specialists with over thirty years'

March

Washington, D. C.

Productions Corp.

First Boston

from

Corp.

Government Employees Corp.,

Inc.; Salomon Bros. & Hutzler.

writers—To be determined by competitive bidding. Prob¬
able bidders:
Halsey, Stuart & Co. Inc.; Estabrook &

deadline.

registration is expected
of 50,000 shares of cumulative
preferred stock (par $50)
Underwriters
Probably Paine, Webber, Jackson &
Curtis and Stone & Webster Securities

loans. Underwriter—F. L. Putman &
Co., Boston, Mass.

reported company plans issuance and sale
of about 500,000 shares of common stock.
Price—Ex¬
pected to be around $10 per share. Underwriter—Hay-

000

against the most immi¬

Spaei

General Telephone Co. of
Kentucky
April 27 it was reported early

Greenwich Gas Co.

at

was

$2,500,000

wIU

13 additional shares at
$4.10 per share and a $250
collateral trust 5% bond due
May 1, 1990; the offer to
become effective
upon acceptance by 95%
of the out¬
standing stock. An additional 210,000 of the new
shares
would be purchased
by the underwriters, plus any of
the unsubscribed shares.
Proceeds—To retire $2,190,000
of Georgia Railroad
& Banking Co.
debentures held by
an insurance firm.
Underwriters—Johnson, Lane,
& Co. and
Joseph Walker & Sons.

(7/21)

company

Madison St., Chicago, 111., up to noon (CDT) on
July 21
for the purchase from it of
$4,185,000 equipment trust

certificates to be dated Aug.
15 equal annual instalments.

wanking Co. of Georgia
that this new
company

for

sued

be

&

announced

stockholders of Georgia Railroad &
Banking Co*
exchange for each share held, one share of the new
company's stock, the right to subscribe within 30
day*

states

will

was

in

(jointly); Salomon Bros. & Hutzler.
Bids

ifanroaa

offer

Corp.; Lehman Brothers
Glore, Forgan & Co. (jointly); Blyth & Co.", Inc.,
Harriman Ripley & Co., Inc. and Smith, Barney & Co.
tnd

Feb. 20 it

Sorg—even

nrsi

May 4 it

—

company

Eastern Utilities Associates

because pro¬

ducing superior printing

at

reported

was

Illinois Public Service Co.

.March 26 it

nent

it

50,000 shares of

-At Central Illinois Light Co.

•shares

2

April 6 it

plans public offering
subordinated sinking fund con¬
company

Co.,
(jointly); Harriman Ripley

Inc. and Bear, Stearns & Co.
& Co., Inc.

Columbia Gas

vertible debentures and 100,000 shares of common stock.
^Proceeds—To build new plant in Georgia, to retire about

for

it was reported company plans sale later this
of $10,000,000 common stock (in addition to $10,000,000 of 1st & gen. mtge. bonds sold March 10, 1953),

Co.

Manufacturing Co., Utica, N. Y.
was

2

year

Cinerama

plans to issue and
sell publicly $2,000,000 of convertible debentures. Pro¬
ceeds
For development of Stanwell Oil & Gas Ltd.,
mewly acquired subsidiary. Underwriters—Blair, Rollins

^common

Jan.

Holdings Corp.

June 24 it

<©f

market value. They also approved issuance of securities
convertible into shares of any class of capital stock.

planned to offer and

company

shares

Burr, Inc., Boston, Mass.,
and The First Boston Corp., New York.
Plan Opposed—
Consolidated Textile Co., Inc., is opposing the proposed
financing.
Blair

are

located, such stock not to exceed $300,000 in aggregate

1157, 811

refused, however, as it was too low. It is possible

the

company

after distribution by New England Public Service Co. of

Ave., N. W., Washington, D. C., prior to 5:30
p.m. (EDT) on May 25 for the purchase from it of $1,675,000 of collateral trust 4% bonds due July 1, 1961.
was

locally in the

the

©f

its holdings of Central Maine Power Co. common stock.
Probable bidders: Blyth & Co., Inc. and Kidder, Peabody
& Co. (jointly); Coffin &
Burr, Inc.; A. C. Allyn &

$100,000,000 con¬

a

Vermont

St

facilities

the

the

Bangor & Aroostook RR.
bid

which

Pro¬

struction program for 1953. Underwriters—Smith, Barney
& Co. may head group.

One

in

Cantral Maine Power Co.

announced that proposed debenture is-

was

later this year will be around $60,000,000.
nature and timing of the financing are still
tue

ceeds—To

parishes

Refining Co.

March 27 it

stock for issuance and sale

common

37

per

of four

share.

plant.

new

company

common

will offer 400,000

stock to its stockholders at

shares for each share held.

Prcoeeds

—

To

help finance

a

Price—$5

new

bottling

Underwriter—None.
Continued

on

page

38

38

(234)

The Commercial and Financial Chronicle...

Continued

from

Union
fered

Menabi

Exploration Co., Inc., Houston, Tex.
April 8 it was announced company plans to issue and
sell $1,000,000 of convertible debentures.
Proceeds—To
finance development of oil properties in Ecuador. Under¬
writer—Kidder, Peabody & Co., New York.

•

stockholders

to

210,000

approved

shares.

creased stock not planned.

Securities

proposal

a

Corp.,

New

Immediate

issuance

of

in¬

Underwriter—Probably Union

now

This issue is callable

outstanding,
at

may

considered

be

$110 per share. Underwriters—

each

20

outstanding
on

a

shares

40,000

held

following

of

Blyth & Co., Inc., and Equitable Securities Corp
(jointly; W. C. Langley & Co., and The First Boston

Corp. (jointly); Kidder, Peabody & Co., and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Union Securi¬
ties Corp.

Monongahela
sale

it

11

Power Co.

announced

was

plans issuance and
the middle of 1953 of $10,000,000 first
mortgage

Chicago,

III.

may

—

the stock of this
company, 51% is now owned
ern Natural Gas Co.

near

Underwriters—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.,
W. C. Langley & Co. and The First Boston

Corp. (joint¬
ly); Kuhn, Loeb & Co.; Kidder, Peabody & Co. and
White, Weld & Co. (jointly); Glore, Forgan & Co.; Leh¬
man
Brothers; Equitable Securities Corp.; Union Se¬
curities Corp. and Salomon Bros. & Hutzler
(jointly);
Merrill Lynch, Pierce, Fenner &
Beane; Harriman Rip¬
ley & Co., Inc.
Montana-Dakota Utilities Co.

May 2

it

sell

1953

in

bonds.

announced

was

plans to

company

derwriters—To

be

1953

construction

determined

by

issue

and

program.

Un¬

competitive bidding.

Probable bidders:

Halsey, Stuart & Co. Inc.; Blyth & Co.
Inc.,*.Merrill Lynch, Pierce, Fenner & Beane and
White,
Weld & Co. (jointly).
v
New York State Electric & Gas
Corp.
Feb. 27. it was reported that
company may, later in 1953,
issue and sell $20,000,000 first

mortgage bonds (following
private sale of 75,000 shares of 4.40% preferred stock,
par $100 in February and $5,000,000 of 3%% debentures
due 1991 in April). Underwriters—To be determined
by
competitive bidding. Probable bidders: Halsey, Stuart
&

Co.

&

Co.

Inc.;

The First Boston Corp. and Glore, Forgan
(jointly); Blyth & Co., Inc. and Smith, Barney
Co.
(jointly); Hemphill, Noyes & Co. and Drexel
& Co.
(jointly); Kidder, Peabody & Co. and Salo¬
mon Bros. & Hutzler
(jointly); Lehman Brothers; Har¬
riman Ripley & Co., Inc.
&

Northwest Natural Gas C«.
March 23 it was reported that

this

plans

company

to

$66,-

000,000 of 41/2% first mortgage pipeline bonds to insur¬
ance companies and other institutional
investors and $9,000,000 of 5% debentures and 1,400,000 shares of common
Btock at $10 per share
publicly in the United States and

Underwriter—Morgan Stanley & Co., New York.
Corp., Albuquerque, N. Nl.

Ormond

March

10

it

with the

was

SEC

an

announced

issue

of

plans to register

company

stock, which will

be

by North¬

Albu¬

Otter Tail Power Co.
FPC

authorized company

to issue

a

maximum

of

$4,000,000 unsecured promissory notes to banks, the
proceeds to provide funds to temporarily finance the
company's 1953 and 1954 construction programs prior to
arranging for long-term financing.
Underwriters—May
be Glore, Forgan & Co. and Kalman &
Co.
Pacific Northwest

Public
Nov.
sell

Pipeline Corp.

Jan 29 company received FPC
permission to file
substitute application

proposing

to

construct

a

mile

third

a

1,466-

transmission line extending from the San
Juan
Basin in New Mexico and Colorado
to market areas in
the Pacific Northwest.
Estimated overall capital cost
of the project is

$186,000,000, including $2,000,000 for
working capital. Financing is expected to consist of first
mortgage pipe line bonds and preferred and common

Underwriters—White, Weld & Co. and Kidder,
Peabody & Co.* both of New York, and Dominion Secu¬
Corp. Ltd., Toronto, Canada.

rities
•

Pacific

sell

announced

1,004,603 shares of

the

held.
For

Telephone & Telegraph Co.
was

company

(9/15)
plans to issue

$50,000,000 of 31-year debentures

and

in

it

ratio

of

Proceeds
bonds

to

one
—

be

common

new

share

due

stock

for

at

seven

shares

UnderwrHer—

by competitive bidding.
Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co.; White, Weld &
Co.; Lehman Brothers and
Probable

bidders:




was

1953

Co.

(8/5)

received

the

company

purchase from

up

it

of

certificates to be dated Sept.
15 years.
Probable bidders:

Salomon Bros. & Hutzler.

of

announced

by

for the

New

company

plans

to

issue

and

approximately $5,000,000 of bonds and suf¬

shares to raise about
$4,000,000. Proceeds
—To repay bank loans and for
new construction. Under¬
To be determined

writers

—

Probable bidders:
The First Boston

by competitive bidding.
bonds, Halsey, Stuart & Co. Inc.;

For

Corp. and Coffin & Burr, Inc. (jointly);
Kidder, Peabody & Co.; White, Weld & Co. For stock:
Kidder, Peabody & Co. and Blyth &
Co., Inc. (jointly);
Harriman Ripley & Co. Inc.

Probable bidders for bonds:

Hal¬

.

Toledo Edison Co.

April 21

stockholders

the authorized
shares
to

and

ers

approved

to

amend

proposal to increase

a

stock from

common

the

5,000,000 to 7,500,000
of incorporation so

articles

provide that the limit on the amount of
indebtdeness
that
the
company
may

unse¬

create,

consent of

shall

be

majority of the preferred stockhold¬
(instead of 10%) of the aggregate of

20%

company's secured indebtedness and capital and surplus.
Charles E. Ide, President, stated that the
management
has

no

First

present plans to issue

Boston

Corp.

new

common

shares.

The

and

Collin, Norton & Co. handled
financing.
Probable bidders on
any bonds: Halsey, Stuart & Co. Inc.; The First Boston
Corp. and Glore, Forgan & Co. (jointly); Equitable Se¬
curities Corp.; Kidder,
Peabody & Co., White, Weld &
Co. and Merrill
Lynch, Pierce, Fenner & Beane (jointly);
Union Securities
Corp.; Smith, Barney & Co.
latest

Hampshire

„

reported company expects to do some
(under $50,000,000) to replace

was

Stuart & Co. Inc.; Stone & Webster Securities Corp.
and White, Weld & Co.
(jointly).

without

common

Public Service Co. of Oklahoma
March 2 it was

stock

common

Transcontinental Gas Pipe Line Corp.
May 4 it was reported company may issue
vertible

preferred stock

before the

Fall.

some

con¬

Underwriters

—Probably White, Weld & Co. and Stone
Securities Corp., both of New York
United Gas

reported

company may issue and sell
preferred stock (par $100). Under¬
writers
To be determined
by competitive bidding.
Probable bidders:
Glore, Forgan & Co.; Smith, Barney
& Co.; Kuhn,
Loe,b & Co.; Harriman Ripley & Co., Inc.,
and Central
Republic Co. (Inc.).
Proceeds—For addi¬

40,000 shares of

new

—

tions and

improvements.

&

Webster

Public Service Electric & Gas
Co.

,

25 it was announced
company plans issuance and
sale in June of
$50,000,000 of first refunding mortgage
bonds. Proceeds—To
repay bank loans and for new con¬
struction. Underwriters—To
be determined by competi¬
tive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.;
Kuhn, Loeb & Co. and Lehman Brothers
(jointly); Mor¬
gan Stanley & Co. and Drexel J* Co.
(jointly); The First
Boston Corp.

Offering-—Postponed.

Raytheon Manufacturing Co.
June 10 C. F.
Adams, Jr., President, was reported as
stating that company was
contemplating offering about
ers

on

the

basis

of

one

common

new

share

stock to stockhold¬

for

held.

each five

shares

Proceeds—For expansion
program.
Underwriters
be Hornblower & Weeks
and'Paine, Webber,
Jackson & Curtis.
Offering—Expected in

—May

August.

Shield Chemical
Corp., Verona, N. J.
March 26 it was
reported company plans to issue and sell
about $300,000 of common
stock. Proceeds—For
working
capital. Underwriter—Miller Securities
Co., New York.

Offering—Indefinitely

postponed.

South Carolina
19

it

was

Natural Gas Co.

announced

a

South
19

filed

a

Georgia Natural Gas Co.
it

was

announced

a

FPC

Presiding Examiner

decision, subject to Commission
review, author¬

izing the company to construct 335 miles of
pipeline
in Alabama,
Georgia and Florida at an estimated I

of

$8,141,518. Rehearing granted by FPC

cost

on

June 29.-

Southern California Edison Co.

July 2 it was announced company plans to issue
sell $30,000,000 bonds late in
August.. Proceeds—For
by

company

stock

about*$30,000,000

construction

(in addition to above-

offering)

plans to

issue

and

of debentures.

Proceeds—For 1953
program. Underwriters—To be determined

by competitive bidding. Probable bidders:
Halsey, Stuart
& Co. Inc.; Morgan
Stanley & Co., White, Weld & Co.,
Equitable Securities Corp. (jointly); The First Bos¬
ton Corp., Harriman
Ripley & Co. Inc. and Goldman

Sachs &

Co.

(jointly). Offering—Expected later in

1953.

West Texas Utilities Co.
March 2 it was reported that

company plans issuance
100,000 shares of new preferred stotk. Under¬
May be determined by competitive

and sale of

writers—

bidding.

Probable bidders:
Stone & Webster Securities
Corp.;
Harriman Ripley & Co.,
Inc.; Union Securities Corp.
/

Westcoast Transmission Co.

April 10 it
000,000

panies

stated company may

was

of 4%

first

issue and sell $59/mortgage bonds to insurance com¬

(including Prudential Insurance

Co. of America,
New York Life Insurance
Co.; Northwestern Mutual Life
Insurance Co.- and several Canadian

companies); $25/-

000,000 of 3%

to

4%

short-term

notes

to

the

National

.City Bank of New York;; and about 3,500,000 shares of
stock

common

for

about

$30,000,000. Proceeds—To fi¬
construction-of a natural gas pipe line from the
Canadian Peace River field to western
Washington and
nance

Oregon.,

Underwriter—Eastman, Dillon

& Co., New York.

Western Massachusetts Companies ;
June 30, H. J.
Caldwell, President, stated trustees are
studying plan to issue and sell additional common stock

Underwriters—May

which would

provide

the company's electric
subsidiary
exceeding one-half of

with sufficient funds to retire not
an

$8,000,000 bank loan.

A total of 978,527 no
par com¬
presently" outstanding. Offering — Ex¬
pected before end of 1953, subject to market
conditions.
Underwriters
May" be The First Boston Corp., New
York. \
'
'
'
mon

shares

are

it Westinghouse Air Brake Co.
July 8 it

1953

be determined

bidding. Probable bidders for bonds:
Halsey, Stuart & Co. Inc.; The First Boston
Corp. and
Harris, Hall & Co. (Inc.) (jointly); Blyth &
Co., Inc.;
Kuhn, Loeb & Co.
Southwestern Gas & Electric Co.
April 29 it was announced
company later this year will
issue and sell 50,000 shares of
cumulative preferred
stock (par $100).
Underwriters
May be determined

.was

announced

stockholders will on
Aug. 25
increasing the authorized indebtedness to not
exceeding $50,000,000 at any time outstanding. Financ¬
ing being considered to pay off
$30,000,000 bank loans
owed* by Le
Tourneau-Westinghouse Co., a new sub¬
sidiary, and for working capital..
Underwriter—The
First Boston
Corp., New York.: : /
vote

on

.

Wisconsin Public Service
Corp. ■
•
was reported that the
company may, late this
year or early in 1954 issue and sell some
common

March-17 it
to

and

competitive

—

mentioned proposed
sell

—

FPC

Presiding Examiner
filed a decision,
subject to Commission review, author-1
izing company to construct
approximately 160 miles of
pipeline at an estimated cost of
$5,945,000. Securities
may be sold privately
through competitive sale.
Feb.

Corp.

was announced

t

Silex Co.
June 4 it was reported
company plans to offer rights to
stockholders to subscribe for about
268,750 shares of
common stock
(par $1). Price—Not less than $3.56
per
share.
Proceeds—To redeem 5Y2% convertible
deben¬
tures within four months
after their sale. Underwriter—
None.

Feb.

May 1 it

and

Feb.

construction program.
and

Sept. 15, 1984
$100 per share

each

To repay bank loans.

determined

it

in

ficient

stocks.

July 2

3

Service

it

sey,

as

,

offered

nationally. Office—5003 Central Avenue, N. E.,
querque. N. M.
June 25

be

Aug. 5
$3,225,000 equipment trust
1, 1953, and to mature in
Halsey, Stuart & Co. Inc.;

434,988 additional shares of

finance its proposed 1,300-miles pipeline from Canada to
the Pacific Northwest by the issuance and sale of

Canada.

to

on

27

financing this Fall

.

approximately $8,000,000 of first mortgage

Proceeds—For

expected

(EDT)

debt

cured

* Pittsburgh & Lake Erie RR.
are

Tennessee Gas Transmission Co.
March

be done

privately. Underwriters
Stone & Webster Securities
Corp. and Glore, Forgan & Co., both of New York. Of

noon

Underwriter—Eastman, Dillon & Co., New York.

short-term bank loans.

Pipeline Co.,

Financing

Bids

capital to finance two new manufacturing division
in each of which it would own a 50% interest

projects

par shares into 200,000 $5 par
basis; rights to expire Aug. 14. Un¬

Feb. 4 company filed an amended
application with FPC
for authority to construct a 163-mile
pipeline system al
an estimated cost of
$40,269,000.

to

of

present

subscribed shares to be offered to
public. Price—$15 per
share.
Proceeds—To increase capital and
surplus.

company

bonds.

May 13 company disclosed it is planning to issue and sell
securities sufficient to raise several millions of dollars

$25

5-for-l

Lunt,

Sunray Oil Corp.

(N. J.)

split-up

stock. Underwriters—Hamlin &

common

Buffalo, N. Y., and Allen & Co., New York.

stockholders

To be determined by competitive bidding. Probable bid¬
ders:

Dec.

additional

associates.

Permian Basin

ties, Inc., announced that refunding of Mississippi Powei
& Light Co.'s $6 preferred stock (no par), of which 44,are

25

shares

York.

Mississippi Power & Light Co.

shares

Co. and

Strategic Materials Corp., Buffalo, N. Y.
April 14 it was reported company plans to offer for sub¬
scription by its common stockholders about $1,000,000 of

approved
issuance and sale to
stockholders of record June 9 of 70,000 additional shares
of capital stock (par
$5) on the basis of seven new shares

increasing

March 20, E. H. Dixon, President of Middle South Utili¬

476

&

Peoples Trust Co. of Bergen County

June

for

authorized common stock (par $1.50) from 3,440,000 to
3.950,000 shares and the preference stock (par $100) from

160,000

on

Inc.;

Minneapolis-Honeywell Regulator Co.
28

vote

Rollins

Glore, Forgan & Co. and Lehman
Brothers (jointly); Smith, Barney & Co. and Blyth &
Co., Inc. (jointly); Kuhn, Loeb & Co.; Kidder, Peabody
& Co.; Harriman Ripley & Co. Inc.

April

Bids—Expected about Sept. 15.

on
July 23 plan
increasing authorized common stock (par $5)
from 650,000 to 850,000
shares, and to create a new issue
of up to 80,000 shares of
preferred stock (par $50), issu¬
able in series.
Proceeds—For expansion. Underwriters
■—Previous stock financing (in
January, 1952) was han¬
dled by Hemphill, Noyes &
Co., Drexel & Co. and Blair,

to

of a bank loan
the mature Aug. 1, 1954. These borrowings,
plus retained earnings, are designed to finance expansion
pending formulation of permanent financing prior to
maturity of notes. Probable bidders for bonds: Halsey,
Co.

shares.

common

it Penn Fruit Co., Inc.
July 10 it was announced stockholders

of $9,000,000

&

by competitive bidding. Probable bidders:
White, Weld!
& Co. and
Kidder, Peabody & Co. (jointly); W. C. Lang¬
ley & Co and Paine, Webber, Jackson & Curtis
(jointly);
Harriman Ripley
& Co. Inc.; Merrill Lynch, Pierce,
Fenner & Beane and Union Securities
Corp. (jointly);
Lehman Brothers; Blyth & Co.
Inc., and Stone & Webster
Securities Corp. (jointly).

to

Pacific

it Milwaukee Gas Light Co.
July 7 company sought SEC approval

Stuart

Securities

Corp. (jointly).
Stock would be of¬
stockholders, without underwriting. American
Telephone & Telegraph Co., parent, owns 91.25% of

37

-page

Thursday, July 16, 1953

be

round

The

out its

stock

financing

program.

(jointly).
Worcester Gas Light Co.
it was announced

April 2

Underwriter—May

First Boston Corp. and Robert
W.

Baird & Co.

.

has applied to the
Massachusetts Department of Public Utilities
for author¬
company

ization to issue and sell
$3,000,000 of 20-year first mort¬

gage bonds. Proceeds—To retire bank

loans, etc, Under¬
writers—To be determined by
competitive bidding. Prob¬
able bidders:
Halsey, Stuart & Co. Inc.; First Boston
Corp.; Blyth & Co., Inc.; Kidder,

Peabody & Co.

-

Number 5238

Volume 178

Financial Chronicle

The Commercial and

.,.

had

which
for

tentatively

been

(235)

set

W. C. Herleman Joins

Friday.

^conditions

marketwise, it was observed, particularly
the
laggardly behavior
of the
Prevailing

equity market^ are not
to

conducive

convertible

efforts to market a

debenture

(Special

with W.
cantile
was

Consumers Power 3%s.

have come
to that period of the year when
they recognize
that things are
Investment bankers

,

destined

remain more

to

dead-center

'on

for

less

or

prolonged

a

Once

offering

today's

Con¬

of

Power Co.'s $25,000,000

sumers

'bonds

out; of

is

writers

the

literally

shutters

four

for

under¬

way,

put

can

the

up

weeks,

six

to

of

.judging by the status of the new
issue

that is for

calendar,

rate

Brought
tiated
at

period.
i'

corpo¬

101.25

return

to

indicated

yield

indicated

The

Consumers

according
offJ

buying

wealth

nego¬

were

priced

buyer

demand

issue

to

a

the

WORCESTER, Mass.

3%s

John P.

Trade

111.

(Special

Chronicle)

Financial

Clarence W.

—

now connected with
Benjamin, Board of

&

Building,

members

to

WEST

The

507 Main Street.

R.

nected

pros¬
up

Mich.

DETROIT,

Thomson

Taff

Judith L.
staff of

—

McCarty & Co., Inc.,
Buhl
Building, members of the
Detroit Stock Exchange.

is

with

affiliated

now

Avenue.

McKin¬

Financial

Chronicle)

CHICAGO, 111.—Hugh D. Habberstad has become affiliated with

Aim,

C.

Kand,

South

Mc¬

Donald, Evans & Co., 1009 Balti¬
more

&

—

con*

With Aim, Kane, Rogers

Chronicle)

Financial

now

the

of

KANSAS CITY, Mo.—Verlus

has joined the

Ackerman

The

to

is

Smith

with

Chronicle)

BEACH, Fla.

319 Clematis Street.

non,

With McDonald, Evans

(Special to The Financial Chronicle)

Chronicle)

Financial

PALM

George

Midwest Stock Exchange.

(Special

the

bright for cleaning
offering.

Financial

(Special to The

effect,

with

—

the

to

105 South

to The

TAMPA, Fla.—James H. Young
has become affiliated with King
Merritt & Co., Inc.

connected with

has become

Gibbs & Co.,

dealers, of touching
orders in Common¬

Edison's

The

to

Uhlmann
,

Co.,

L.

With Thomson McKinnon

Schultz, Jr. is

Chronicle)

added

been

Taylor &

(Special

Financial

The

to

Winfred

—

Joins Uhlmann Benjamin

Campbell, McCarty Adds

pects held

has

of

(Special

La Salle Street.

Herleman

an

for

the

had

Co., Mer¬

Mr.

With Gibbs & Co.
(Special

3.681%.

of

&

G. Houston

staff

formerly in business for him¬

Field

through

out

C.

associated

Building.

111.

CHICAGO,

issue.

tiiis

deal, the bonds

of that

undertakings.

for

William

—

become

Chronicle)

Financial

CHICAGO,

Chronicle)

self for many years.

Preliminary | inquiry
for the
Consumers
$pwer Co.'s
3%%
bonds, scheduled to be offered
publicly
toda^f, indicated brisk
demand

has

The

to

Jenksin

111.

QUINCY,
Herleman

this time.

issite at

Financial

The

to

With King Merritt

Taylor Adds to Staff
(Special

W. G. Houston Co.

3®

La

Rogers

Salle

&

Co.,

Street.

He

39
was

formely with Daniel F. Rice & Co.
and

'

E.

F.

Hutton

&

Co.

Campbell,

With Hamilton Managem't
(Special

The

to

DIVIDEND

NOTICES

Chronicle)

Financial

DENVER, Colo.—David E. Flatt The New York Central Railroad Co.
New York. July 8. 1953.
and George R. Green
have be¬ A dividend of
,

'

market

The

to

appears

in

be

receptive mood but for the pres*ent" and
for some weeks ahead
a

the fare in the form of new issues
is

going

..True

stiffening of the
might encourage efforts

a

..market
to

bring out some of the equities

which

hanging in the

are

(Special

But

far

as

merce

that

will

it

August
.Day

be

latter

the

Labor
again is in

industry

before

of

part

after

possibly

or

likely

appears

now

the market for funds in a big way.

While the secondary market has
putting on a decidedly en¬

,,

The

Financial

(Special

Chronicle)
—

Building,

Midwest Stock

members

to

The

CLEVELAND,

Ohio

Union

members

public

the

performance, potential
apparently have not as

borrowers

yet become acclimated to the new
of money cos^s and are in¬
clined to sit back and wait things
range

"out

for

spell.

a

Meanwhile

remaining

(Special

C.

Stock

&

Blosser

Salle

La

New

Chronicle)

Ellis,'

111.—Harry J

connected with

now

Straus,

135

South

Street, members

of the

McDowell,
and

York

Midwest

to

Financial

(Special to The

Chronicle)

with

Co.,

141

He

Faroll

&

West

was

Jackson

previously

Jr.

has

become

Finnegan,
nected

Co.,

with

300

members

Edward

North
of

the

D.

Fourth
New

recent vintage and it is
shopping around, of
necessity, to fill such orders as
received.

are

.

In

the

S.

Beeken

past he

con¬

&

A dividend

rities

of the

who

Bankers

of

000,000

brought

bonds

new

out

Co.'s $40,-

Edison

Commonwealth

,

last

week

are

quite satisifed with the man¬

ner

in which the market has been

Carrying

30-years

2%%

a

coupon,
priced at
par

and

yield

3.62*4 %» the bonds
been moving out steadily.
But

for
to

have

what

pleases the sponsor¬
ing group quite as much as any¬
thing else is the fact that only a
small part of the issue remains
to be

marketed, around $7,000,000.
placing

The

,

is

noted,

without

"big

has
the

names"

indicating

the

of

balance,

it

accomplished
appearance
of any
been

the

on

that

wide

class
of 'bloated bondholders' ought long ago to have
been exploded.
The idea that creditors are few,
nevertheless, persists. The simplest explanation is
that the number of institutions that make lending
business

their

issue.

this

absorbing

buying

side,

distribution

has been achieved.

,

He

Opening of subscription books
International
Telephone
&
Telegraph Corp.'s projected $35,000,000 of debentures had been
to

overall

this week's
but things did

bolster

turnover,

not work out that way.

It

the

developed
company

bankers

had

ponement

that

at mid-week

sponsoring

and
agreed

on

this

for

not

Corp.

post¬
operation
a

The credit appraisal, in protecting the strength
and solvency of the bank, protects the depositor's
right to get his money back any time he wants it and
to get the interest rate return promised him on his
savings account. Similarly, life insurance compa¬
nies lend funds which essentially belong to policy¬
holders, estimated to number 88,000,000.
ago.

Commercial

Chronicle,

and

25

New York 7, N.

Box 716,
Financial

Park

Place,

Y.




1

GREENBURGH,

G.

Treasurer.

Broadway,

New

York

N. Y.

6,

July 13, 1953.

dividend

A
per

of

ten

cents

(l(ty)

share has been declared pay¬

able September 14, 1953, to

of

holders

business

record

on

-JOHN G.

August

stock¬

close of

the

at

1953.

19,

GREENBURGH, Treasurer.

Joins Eisele & King

Ruth

—Mrs.

BEACH, Fla.
has

Jones

B.

staff

the

to

added

Chronicle) **

to The Financial

ST. PETERSBURG

been

TECHNICOLOR, Inc.

&

Eisele

of

King, Libaire, Stout & Co., 7217

The Board of Directors has de¬

clared

Gulf Boulevard.

a

George D. Hefner With
Bear, Stearns & Co.
Chronicle)

to The Financial

CHICAGG, 111.—George D. Hef¬
has
become affiliated with

South

135

Co.,

&

Stearns

Bear,

La Salle Street.

He was formerly

for

with Cruttenden

&

many

years

of the

of

share

on

the

($1 Par Value)

Company, and

dividend

a

fifty cents (50(0 per share
the Common Stock (no Par

Value) not yet exchanged

under
Company's Exchange Instruc¬
tions dated May 19, 1953. These
dividends are payable July 31,
the

1953
at

Co.

per

Common Stock

on

ner

dividend of twenty-five

(25(9

cents

stockholders

to

of record

the close of business

July 17,

1953.

L. G. CLARK, Treasurer

NOTICES

DIVIDEND

July 10, 1953

COLUMBIA PICTURES
CORPORATION

declared
of

a

quarterly dividend

share on the
$4.25 Cumulative Preferred

They supplement the Fed¬

S1.06J4

able

old-age trust fund which holds $18 billion in

stockholders
31,

company,

15,

August

of

pay¬

1953.

record

July

1953.
A. SCHNEIDER.

July 15, 1953, as follows:
Date

MARINE
INSTRUMENTS, INC.
,

deposits with banks, $66 billion in U. S. Govern¬
ment securities, $20 billion in mortgage loans, and
$19 billion in savings and loan associations. In the

background of these figures it should be clear that
the interest of the people as a whole lies in sound

policies which will protect the real values of

savings, rights and benefits accumulated over the

years."—The National City Bank of New York.
refrain from

"gilding the lily."

dividends on
of this

Stock

corporation, payable to
stockholders of
record

ELECTRONICS
New

York,

The

N.

Board

Per
Share

8-1-53

$1.25

8-1-53

$1.25

Directors

Fund Series

8-1-53

$0.31V4

$1.25 Series

8-1-53

$0.31'A

$100 par value

of

and

one-half cents

outstanding

convertible

per

5% Series

5% Sinking

Duraont-

Airplane
&
Marine Instruments, Inc.,
have
declared
a
quarterly dividend of
seven

Preferred Stock,

Clearfield, Pa.

Y.
of

share

preferred

the
stock

on

payable August 15, 1953 to stockholders
of record at the close of business August
5, 1953, and a dividend of ten cents per
share on the outstanding common stock

Fund Series

Preferred Stock,

$25

par

value

•

$1.25 Sinking

payable August 15, 1953 to stockholders
at the close of business August

of record

b. c.

5,

1953.
THEODORE W. STEMMLER,
Chairman

of

Rate

Payable

DUMONT-AIRPLANE &

$120 billion.

hold $102 billion in

July 8, 1953, the Board

of Directors declared regu¬

Preferred

Vice-Pres. and Treas.

pension equities together

creditors,

On

lar quarterly

PICTURES]

creditor interest of the indi¬
Exchange Commission

DIVIDEND NOTICE

to

The Securities and

as

PACIFIC

FINANCE CORPORATION

per

Stock of the

government securities and covers 47,000,000 per¬
sons.
Pension rights, no less than life insurance
a

a

meeting held July 14, 1953',

private pension funds is well known. Their re¬
sources, now $12 billion, are held for the benefit of
10,000,000 employees.

Directors at

The Hoard of

of

We

Company will not close.

61

Doherty and Frank M. Hannon
now
connected with Emco,

panies, others are set up as trust funds and adminis¬
tered by boards of trustees. The mushroom growth

money

Sep¬

comparatively newest creditor interest is

"Individuals,

Order

business

transfer books

The

BEACH, Fla. —Vincent

(Special

represented in pension rights. Some pension
funds are administered by private insurance com¬

eral

payable

& PLATINUM COMPANY

Inc., First National Bank Building.
Mr. Doherty was formerly with
J. R. Williston, Bruce & Co.

posit Insurance Corporation's last count two years

at

Position Wanted

Clerk, experienced.

is

of

close

1953.

9,

JOHN

Chronicle)

to The Financial

(Special

values life insurance and

and

What

When banks make loans
the ultimate creditors are the depositors, whose ac¬
counts numbered 111,000.000 on the Federal De¬

benefits, represent

Trader

50,000.

cents per

SOUTH AMERICAN GOLD

•

any

intermediaries.

simply

vidual.

Assistant

exceed

(50c)

declared,

was

Two With Emco

that

on

expected

does

country

commonly overlooked is that such institutions are

"The
Big Standby Postponed

have in this

the

at

Inc., First Na¬

Building.

Bank

and

are

we

of fifty

been

has

formerly with Southeastern Secu¬

M.

"The idea that

Record

the

N. Y.

6,

July 8, 1953

~

For

New York
*

tember

BEACH, Fla.—Rollin E.

(Special

Conspicuously!

COMPANY

COPPER

Broadway,

record

Chronicle)

to The Financial

PALM

Please Post

61

share

Co.

Anderson Cook Adds

Street,

York

with William

was

PANCOST, Treasurer.

E.

September 23, 1953, to stockholders of

Midwest Stock Exchanges.

Co.

of

case

R.

Jones

issues of
a

Corp., 524 Jasmine Street.

Anderson Cook Co.

Frank

—

MIAMI

In¬

Baker has become associated with

Chronicle)

Mo.

Fla.—Rob¬

Southern

First

declared

E.

vestors

Stock

LOUIS,

been

Chronicle)

Financial

with

(Special

Financial

Fifty Cents
($.50)
per
share
capital
stock
of
this
Company
has
payable August 20, 1953, at the
Office of the Treasurer, 466 Lexington Avenue.
New
York
17,
N.
Y.,
to
stockholders
of
record at the close of business
July 20. 1953.
the

on

Nienberg has become con¬

tional

ST.

CHICAGO, 111.—Raymond Resjoined the staff of Irving

The

nected

'

Exchanges.

Irving Weis

The

nick has
&

to

PALM

Joins

Weis

J.

ert

Edward Jones Adds
(Special

With First So. Investors

shelves from

their

on

little

Financial

CHICAGO,
Jr. is

Building,

Midwest

Management Corp., 445 Grant St.

Street.

Exchange.

Boulevard.

have

dealers

231

Hamilton

BOYNTON BEACH,

been

couraging

La Salle

Inc.,

Co.,

Investment

South

(Special to The

Rex

—

Commerce

of

A.

With Straus, Blosser

Jenkins is with Merrill, Turben &

Co.,

Richard

—

the

of

Chronicle)

Financial

111.

with

associated

come

Chronicle)

Hayms is now affiliated with Re¬

Exchange.

Merrill, Turben Adds
(Special

Financial

The

to

CHICAGO,

Marshall

back¬

debt securities are

as

it

concerned

to

CLEVELAND, Ohio

ground.
-

Republic Inv. Adds

Gottron, Russell

thin. C. Doolittle II, is now with Got¬
stock tron, Russell & Co., Union Com¬

extremely

be

to

With

the

Board

Reynolds.

Secretary

40

The Commercial and Financial Chronicle.

(236)

..Thursday, July 16, 1953

BUSINESS BUZZ

Washington
A

Behind-the-Scene Interpretations
from the Nation's

.

Capital

•

•

•

gA

y*

w.
1

W

X l/ll/

jlm-b

SNITZEL'S
SPORTING EQUIPMENT

WASHINGTON,
the

the

of

«ome

provide a standard of liberality
against which anything the

C. —For

D.

pie

prettiest

in

with

consult

E. Murray

of

of

Senators James

Collective

look

references

niggardly

the

Francis

conducted
by Albert M. Cole,
Housing
and
Home
Finance
Administrator, as agent of the

Hastore

thew

Island,

Rhode

of

O.

White

Mat¬

All

Mr. Morse,
to become

who
pie.

the

from

painted

have

of

as

is

here

what

studies

be

ditures

there

should

cost,

in

are

tudinous,

and

aid,

legion.

only

one

is

There

could

(2) The government
vastly liberalize the scale

termine

and

how

to

wanted
wanted

study,

much

(3)

The

social

made

of

l>ay 26 weeks of

fits

in

any

pro¬

could

program

subject
the

to

of

groups

pressure

package.

be

sales

a

involved

are

toes

diverse

in

of

the

groups

the

of

some

benefiting.

now

need to be consulted in

the

if

is

program

added to

would

advance,

not

to

be

cut to

or

pieces, judg¬
changes which

ing by the many
Congress made in just the last
housing bill only a couple of

the

temporarily disabled.

weeks

(4)

Permanent disability pay
would
be provided for those

contracted

thrown

make

In

the
it

Eisenhower

pressure

quietly
the

and

wives

virtue
to

of

trust

children

and

having

contribute
fund

themselves

been

during

the

unable
old

the

to

by

their

dis¬

ability.
(5) Those

the

Old

Age

core

Spot

on

President
also

Mr.

se¬

He

which the hard

to

in

of

social

to

to

show

for

go

dis-

no

short

a

of

cradle to a just short
of
the grave expansion, and in any

term

to

mean

fiscal

plications

study

and

of

the

long-

economic

broadened

im¬

social

security
before,
through
the
Ways
and
Means
Committee,

they
gram,

a

gen¬

the

the

has

found

White

already

the

the

it

as

parties

were,

in¬

and

tration

experts

On

the

The

Tax

studies

by

the

taxes

U.

S.

almost

—

This

figure

hint

of

and

the

face

next

to write

by

three

-

fourths

the

casts

problem

sample

a

Congress

Administration

will

when they try
overall tax revision

year

an

bill to wipe out
a

an

the

would

tax

on

excise

inequities, such
freight. All goods

common carrier pay
tax

equal

shipping bill.

passenger

up

with

presumably

Representatives

is

better

government

mortgages

to

3%

of

The

tax

on

fares is

15%.

moving

by

common

taxed, but not freight

on

backed

-

easier

terms

Veterans' spokesmen want to be
sure

that,

pens

and

the

cost,

care

of.

whatever
with

the

little

else

are

direct
on.




by

poorer

Ira

—

where

$450

make
else

dozens

COMING

large

a

—

to

money

there

up

EVENTS

when

similar

of

In

"discrimination^"

in

the

Investment

Field

tax

laws.

Actually both forms of trans¬
tax

were

originally

ures,

war

six

months.

Of the

transportation

of

only

plus

war

15% tax

the

persons,

to

the

other

10%

discourage

from

or sea

around

was

pressed to

so

troops during the

war.

yields $290 millions.

Although both
the

United

soon

to

committee
vented

a

Government

living

on

National Security Traders Asso¬
ciation 20th Annual Convention.
Oct.

has

Banking
in

Federal

Firms

effect

credit

order

from

to

find

Board

Stock

Exchanger

Governors

Meet¬

(Hollywood, Fla.)

pur¬

sub¬

June 9-12, 1954

pre¬

Investment

going

more

of

Canada

outlets
/

for

(Canada)

Dealers

Annual

Associations*

Convention at

Jasper Park Lodge.

into
years,

or

!

less
We have

commercial

of

of

of America Annual Convention at
the Hollywood Beach Hotel.

unions,

long-mrm lending of five
in

(Louisville, Ky.)

Nov. 29-Dec. 4, 1953

the

voluntary, cooperative self-help
associations,

13-16

Association

Investment Bankers Association*

bill for the

Senate

a

sum¬

at

ing.

Refuse Long Loan Permission

By tabling

frolic

Sept. 16-19, 1953 (Sun Valley, Ida.>

income therefrom.

pose,

Group-

babies,

are war

States

got used

(Denver, Colo.)

Mountain

Albany H o t e 3
(Aug. 20) and Park Hill CountryClub (Aug. 21).

move

This tax

Rocky

Bond Club of Denver annual

voted

was

persons

going by rail, air,

IBA

mer

on

Treasury figured only about 5%
was initially purely for
revenue,
and

Aug. 20-21, 1953

meas¬

enacted

for the duration of the

ready for distribution

our

funds.

(This column is intended to re¬
flect the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's" own
views.)

SUPPLEMENTARY

ANALYSIS

OF

RIVERSIDE CEMENT

COMPANY
Class B

veteran

is

FOREIGN SECURITIES
Firm

Trading Markets

hap¬

regard

to

taken

Representatives

of

lenders want less subsidized and

pro¬

to

Street

tax

building

to make it easier to sell houses.

time

designed

the

this

in Wall

industry wants to kill off public
but wants more and

a

The bill by these Senators and

Con¬

in

subsidized

private

Treasury

credit,

and

so

Any program
which would
please all the interested parties
would involve expanded, rather

—►

U. Cobleigh—Dept. 7, David Mc¬
Kay Company,
Inc.,
225
Park
Avenue, New York 17, N. Y.—
$2.00.

(Common) Stock

housing

some

next year.

equity
be

some

HAUL MARKS & fp. INC.

We

I

Foreign Securities Specialists
10 Bread Streat.'.. New York 4, N. T.
'

Til: HAaovar 2-0050

Tilitypt MY M71

believe

this

interest to those

issue

will

The stock sells at about 4 times

I

ings compared with about

I

earnings

I

general.

ratio

be

of

seeking capital gains.

I

for

this

a

10

earn¬

times

industry

in

I
I

'

come

that

annually

of

from

billion—the last fiscal year.

a

of

millions

chunk

esti¬

collected

Federal

million

as

interests

Yet if

say

the Chamber of

of

that

11-month

of

to

were

the United States when the gov¬

Treasury on the
transportation
of
freight and
persons brought in a juicy $740
of

private trucks.

ernment

want

groups

the

save

Produces

basis

Commerce

the

loves

figures,

Freight

and

to

advisory groups.

and

carrier is

minority

directly work
under cover with

just

housers

public

planned that

with the least pain.
project
was
abandoned,

official representatives

public

was

Administration

moving by

started

Bricker

Morley

should be abolished, the Treas¬

as

however, because the Adminis¬

sub¬

by consult¬

up

that

are,

The

the

housing.

in

ihe

-case

of

'

Congress

has

more

a

security

increase

an

Cole

housing

and

has

himself

However, the Republi¬

)M>sition

on

drawn

terested.

Bill 2660.

Eisenhower

and

coverage

benefits.
cans

Senate

committed

broadening

have

to consult the interested parties.

of the Democratic left have
as

to

mind

appears,
if naively, to
actually believe a program
which might save some money

the bare outlines of

program

introduced

open

White

ing the interested parties.

-^the vastly broadened social

curity

seems

uinely

could be

To Put Ike
are

The

House

Trust Fund.

These

House

different

or

new

Furthermore,

Survivors

and

a

program.

ject.

supposedly
dis¬
abled permanently from gainful
employment would be rehabili¬
tated if possible at the expense
of

of

way

housing

age

given

best

as

most money

This

in

gress

portation

would

gress

ment

been

and

the seasoned old heads of Con¬

Administra¬

not

has

Congress

groups,

Originally it

mates

Cole

the

when he wants me!"

ury

can.

the slightest glimmer of,an idea
what the White House wants in

for

sop

if it is going to save any
have to "sell"

Mr.

benefits

the

end, regardless of this
the White House will

Freight

an

retirement age, and they would
no dimunition of
retire¬

to

conflicting

or

money, and will
that decision to

ago.

The

the

with

group

the

study,

suffer

reaching

BUZZ

group.

actual

before

benefits,
one

platable

more

tion, however, is proceeding in
entirely different manner.

disabled

to

thrown to another

No

Furthermore, Congress would

the
and

to

the

the

on

security.

year

complete

a

shrinkage
of benefits could avoid stepping

disability bene¬

one

the

than
sop

way,

that

which

benefits

government

learn to

have to make the decision any¬

Then

whole

"^ed

it

gram.

can

on

it

agencies,
with

program

with

out

come

in many ways.
Good account¬
ants probably would be so much
3n demand trying to apply the

payroll

wish he'd

Winning

least political vulnerability, and

drive

they could all get

de¬

better

reshuffle
a

on

to

money

how

save,

to

decide

old age insurance benefits by
changing the payment formulae

for

"I

be

ministration itself, after careful

introspection

of

Felix

Enterprise Association*
Inc., 4 East 41st Street, New York
17, N. Y.—Paper—50c.

probably

bounties

the

—

American

of

That would be for the Ad¬

cut.

Study

Amendment

in which

way

—

wouldn't

Treaty Law and the Constitu¬

niulti-

varieties

the

^

**r$4.50.

tion— A

detail

realistic

of

some

Marines, veterinarians,
directors,
farmers —
*nortgaged, free of debt, or just
farm
hands
architects,
ac¬
countants,
domestic
servants,
ministers
of
the
gospel,
and
^ome
groups
of
half-starved
-jgovernment payrollees.

government

Wilfred Funk, Inc., 33 West 46thi
Street, New York 36, N. Y.—Cloths,

'

«nd

that

Practical Formulas for Success¬

The government's housing ob¬

jectives

C.

B.

—

Sons

ful Investing—Lucile Tomlinson—

some

both.

or

Gutman

K.

&

Publishing Co.*
Inc., 80 Fifth Avenue, New York
11, N. Y.—Fabrikoid—$15.

multifarious objectives

same

at less

the

funeral

formulae

Forbes

how

be

Walter

—

and

should

the

*»e extended to the Army, Navy

complex

of

shrinkage of government boun¬

increase

can

Administra¬

ties in this field, OR, some way
should
be
found of achieving

the cov¬
erage of old age insurance and
■survivors insurance by 8 mil¬
lion persons.
Souped-up bene¬
fits under this
system would
It

Money Magic in Chemical Stocks-

the

the

government can do:

(1)

in

the

modest additional
Senator Lehman told

Senate,

to

should
be
housing agencies
reshuffled, is that
for the sake of cutting expen¬

also

can

Business
Research,
College
of
Commerce, West Virginia Univer¬
sity, Morgantown, W. Va.—Paper-

programs

changed

very

a

•cost,"

housing

beginning

of the West Virginia Coal Industry
—James H. Thompson—Bureau of

flop.

a

tion-sponsored

except

lively group

a

"liberals"

democratic

"At

You

one.

with

is

House,

Inherent

who hopes some day

House,
«am3

West

Democrats

are

■consult

of

Neely

in

like

look

Vir¬
ginia, Warren G. Magnuson of
Washington, or Wayne Morse of
-Oregon.
M.

Relations

Princeton

Markets and Marketing Methods

new
study of
housing laws being

Already

changes

Minnesota, John F. Kennedy
of Massachusetts, Paul H. Doug¬
las
of
Illinois,
or
Theodore
John

Selected

University,
Princeton, N. J.—Paper—20c.

<9f

and

Industrial

—

in

Wage
—

Housing Study Looks Like Flop

Washington, Hubert Humphrey

Green

Annual

Bargaining

Section,

by comparison.

H. Lehman of New York, or—

Montana, Henry M. Jackson

will

does

later

Herbert

Senator

Guaranteed

Administration

Eisenhower

sky that ever you did spy,

Send for Report C-20

I
I
I

LERNER & CO.
10 Post Office

Square, Boston, Mass,

Tele. HUbbard 2-1990

Tel. BS 69