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ESTABLISHED 1S39
Commercial
an
UtUU
Reg. U. 8. Pat. Office
Volume 180
Number 5344
New York
Price
7, N. Y., Thursday, July 22, 1954
40
Cents
a
Copy
EDITORIAL
How Realistic Is Ooi
$
;It is
As We See It
yet too
as
the nature of
of
the
soon
Foreign Economic
to undertake anything in
By HON. FRANK CARLSON*
definitive appraisal of the record
Eisenhower Administration in the 83rd
U. S. Senator from Kansas
Senator Carlson
complex legislation still subject to alteration
the final steps of
passage to the statute books
of the nation. The outcome is
certain to contain
and
fully
some
apparently rather
certain to carry
the
and
socialistic
slants
been
have
periods belong
in which it results in
a
how
avoid deep depressions accompanied by largeunemployment. Nine years have passed since the
hostilities and yet in spite
of the great maladjustments created
by the war — in spite of the great
political uncertainties that prevailed
for the greatest period alter the war,
need
but
review the
issues
for*
exist
on
alism
u
..
,
_
course,
of
39
Policy
address
by
Conference,
and potential
■
undertakings in
a
of
the
emotionalism
•
tradition¬
which
Sen. Carlson at the Colgate University
Hamilton, N. Y., July 14, 1954.
—
issues
now
ALL
«
^
Correspondents in all
parts of the world
ON
MARKETS
ONE
U. S. Government
—
N. Y. and Amer. Stock Exchs.
Broadway, N. Y. 6
to
THE NATIONAL CITY BANK
Stock
Exports—Imports—Futures
4*
PERTH AMBOY
of
Trade
Exchanges
Bond Department
Bldg.
•
Detroit
Miami Beach
Teletype: NY 1-708
•
•
•
CHASE
THE
Pittsburgh
Coral Gables
Beverly Hills, Cal.
NATIONAL
BANK
OP THE CITY OF NEW YORK
Geneva, Switzerland
Amsterdam, Holland
To
Active
Maintained
Markets
Dealers,
Banks
and
Brokers
CANADIAN
Orders
Executed
On
CANADIAN
BONDS & STOCKS
Arkansas Western
Gas
Company
COMMON
All
Canadian Exchanges At Regular Rates
CANADIAN DEPARTMENT
DaKiTnox Securities
Teletype NY 1-2270
Members N. Y. Stock Exchange
BROADWAY, N. Y.
Board
other
Hollywood, Fla.
Bond Dept.
SECURITIES
50
Inc.
N. Y. Cotton Exchange
Chicago
-
FSTDGEPORT
Bonds
Exchange
Exchange
Exchange,
NEW YORK 4, N. Y.
OF NEW YORK
Our Customers
American Stock Exchange
Municipal
<
New Orleans Cotton Exchange
RE 2-2820
T.L.Watson&Oo.
Exchange
Cotton
York
and
Teletype NY 1-2152
122 Years of Service
1856
Stock
Commodity
Chicago
^
Commission
cor¬
SEC
American
STREET
DIgby 4-2727
in
with the
New
.
Net
Liquid
29
Members
Municipal, *
MABON & CO. *
BelI System
LAMBORN & CO., Inc.
—
page
by Gen. Schwengel at the Seventh Annual Meeting
of the Seagram-Distillers
Corporation, New York City, July 12, 1954,
York
New
Sixty Years of Brokerage Service
4* Members
ST.,N.y. C.
Refined
on
address
H. Hentz & Co.
*******
—
Schwengel
rr
-
Continued
•An
CALL »
All Corporate & Foreign Bonds
115
Raw
F. R.
re-
While perhaps not enough time has passed to render
registered
Preferred and Common Stocks
*
sugar
unemployed
high level.
Foreign
Complete Brokerage Service
*
Complete corporate and
personal trust facilities
NEW YORK 5, N. Y.
of
"Securities in Registration" Section, starting on page 34.
our
State and Revenue Bonds
WALL
number
mained relatively small while the gross national product
and the disposable income of the
people remained at a
Underwriters, dealers and investors
complete picture of
■
Founded 1824
99
total
so
—
saw
Slate and
Trust Company
30 BROAD
be
may
Established
Bank
&
afforded
much
upon
we
meeting of minds upon our policy
Continued on page 14
some
SECURITIES NOW IN REGISTRATION
are
primarily the soft
and
again one
began in July 1953,
which in turn affected primarily the
durable consumers goods.
In both
cases,
however, the declines were
relatively minor in character; the
industries
which
By
the
years.
we
the country witnessed
readjustment in 1948-49
affected
goods
opinion
ky .g discussed
jn discussing the
foreign economic policy, we must, of
our
have
and
more
attention
realism,
its
near
be sure,
rolling
which
frequently intrude when tariff pol-
,
Hon. Frank Carlson
realism
porate securities
Chemical
To
a
debating forums
They are issues upon
many
from
even
page
during this period remained
highest levels.
speeches
the
our
of
saved
•An
Continued
for
of
business activity in the United States
are
probably will continue to
question
admin¬
an
extremely,
and
focusing
hearty and hard¬
working cooperation of many specialists to give*
the country a carefully drawn tax system con¬
an
untold
honest differences of
exist
once
standpoint. It also in
and
decades.
which
has been undertaken with the
istrative
protectionism. These
which
upon
Congress
of the
sistent within itself and effective from
end
have been made in the United States
pending tax
again that fiscal states¬
manship is always in danger from the ordinary
garden variety of politics. Here is a measure which
bill to be reminded
career
or
to
scale
might hope to pursue in a more
stable, friendly world.
We are spared also the necessity
of going over the pros and cons of
free trade
DIRECT
WIRES TO
MONTREAL AND TORONTO
Goodbody
MEMBERS
NEW YORK STOU
115 BROADWAY
UEW
&
YORK
(orporatioti
Co.
EXCHANGE
40 Exchange Place, New York
IRA HAUPT & CO.
Members New
3.N.Y,
111
Broadway, N. Y. 6
WOrth 4-6000
Teh fvpe
NY 1-702-3
York Stock Exchange
and other Principal Exchangee
I NORTH LA SALLE ST.
CHICAGO
;
heartening conclusion that the United States has learned
we
Meanwhile, the closing days of this session of
Congress have furnished a forceful reminder of
some of the
shortcomings of "politics" and of the
defects of the practical workings of democracy as
practiced in this country—and, if the truth be
told, as practiced anywhere in the world. One
that
Events since the end of World War II have led to the
higher level of two-way trade.
By limiting ourselves to the question of how realistic
policy is, we are spared the necessity of debating
details of an ideal policy—that is, the kind of a
policy which we might feel was appropriate and which
future to disclose.
measures
stable, and (2) the potential developments and strength
American economy. Lists as develop¬
ments ensuring stability: (1) measures to prevent bank
failures; (2) sound regulation of bank credit; (3)
widespread improvement in home financing; (4) broad¬
ened social security legislation, and (5) progress in
better labor-management relations.
Denies prosperity
rests on huge defense expenditure.
the
legislative programs, of recent years, but how
great or how vital the difference remains for the
(1)
to the past on
inherent in the
our
most
now
have been taken to make the American economy more
aid; (2) encouragement of private investment
abroad; (3) facilitation of currency convertibility, and
(4) expansion of our foreign trade. Concludes our for¬
eign policy is realistic and should be tested by the degree
a
than
Gen. Schwengel bases his conclusion that boom-and-bust
foreign trade
financial
constructive achievements
good deal that
sober reflection suggests should not become law.
Though far from flawless, the measures now ap¬
parently scheduled for passage are, it would ap¬
pear, less burdened with the anti-business venom
as
the whole field of
covers
By GEN. FRANK R. SCHWENGEL*
President, Joseph E. Seagram & Sons, Inc.
policy in both its domestic and international aspects.
Says first plank in our foreign economic policy should
be a sound dynamic and progressive domestic
policy
and cities responsibilities of Federal Government under
the Full Employment Act. Lists as objectives of our
foreign economic program: (1) curtailment of foreign
portant pieces of legislation, and too much ob¬
scurity at this time surrounds the "precise terms
in
|
a
Congress. Too much uncertainty still exists as re¬
gards the final disposition of a number of im¬
of
Major Depressions Are
A Thing oi the Past!
WHitehall 4-8161
Boston
Teletype NY 1-2?0t
Telephone:
Enterprise
ISM
The Commercial and Financial Chronicle
2
...
(306)
The
WE POSITION and
Security I Like Best
TRADE IN
week,
A continuous forum in which, each
Central Electric & Gas
in the investment and
Central Indiana Gas
Public
Central
& Power
they to be regarded,
as an
Utilities
The Philippine
120
Telephone and
Telegraph
1920
Member
Stock
American
Exchange
BArclay 7-5660
Bond-
Teletype NY 1-583 and NY 1-40
Private
Wires
to
v
Com-
pany,
-
MM
same
the
manage-
S
Rights & Scrip
liatyutiesZ
Direct
in
P29,732,44.1
Theodore
McDonnell & To.
Members
the
Exchange
"hanrts
of
2,954,524
in
;
Total liabiHUes_2_ 38,855,529 P29,732,461
Represented
P=Peso
serv-
'
by/1,120,395 shares.
official
rate
of
States; funds.
.
exchange
- >■
for
Stock Exchange
1952
9.05
5.87
fWJ.
quarter
w
1*150
4.54
*First quarter 1948
65,289 miles of exchange lines and
3 522 miles of toll lines, six auto-
1.120.395 shares.
four
fBased
"In
],208,4"0
on
^Estimated.
common
exchanges,
'
) Established 1897
Home
TEI. REctor 2-7815
Trading Markets
much
Company
Company
..
Geneva
;v
regime
new
the
too
Then
as
truce
of
on
rmiippme
The threat of war seems
*
shell,"
Copeland Refrigeration
have here
we
Federal Pacific
Electric
war
Federal Paper
,y
Pfmntrv
LD 33
.
v
Foremost Dairies
February,_ 1950'supplemented by proximate price 4V2.
an additional payment of $887,566.18 in September, 1950. Just
FLORENCE W. STEPHENS
when the balance will be received
jr. w. Stephens Co.,
Rockwell Manufacturing
Bought
properties have *s Problematical as the moneys.
New York 5, N. Y.:
now
been fully restored, to their haX**?tas yet been appropriate
' Maps
Corporation Class A
prewar condition. The demand for
Rehabilitation of the company's
Participating Preference Stock
.
telephones in Manila is relatively plant
which had
been
largely
^
.
* „
as
great, percentagewise, as was 'destroyed during the war pro. Gecasionally
a company goes
our postwar demand.
It is likely ceeded slowly until 1948. During through growing pains for a numthat the Company's giross revenues
that year 4,234 telephones were
r__ Z.e_ars_ be^°5^
j1Cx„ls
aware that a substantial industry
will double in the next five years, installed bringing the total num~
^ is*
developing.
as
the pent up demand must be ber of telephones in service as of
By that time
satisfied and capital formerly de-. the 1948 year-end to 10,848- of
it is often too
nied to the Company is now avail¬ which 5,771 were in the City of
able
;
}
Your
for that
Rehabilitation of the two
Manila.
expansion.
CROSS
central offices in Manila was com¬
five
must carry on I
indicated
times
1954
Government withholding
cise taxes.
and ex¬
'
concerns
I. G. FARBEN
the result of
impetus
has
been
ting
way
get-
until
at
ent,
like
we
of over 114,000 square
...
,
and
,
a
of
1,000,000 is the
city and capital.
cess
York Stock Exchange
25 Broad St., New York 4, N. Y.
Tele. NY 1-3222
World War II,
a
com-
office exchanges and three radio-telephone
through
26
.central
New York 5
Teletype
NY 1-2262
Dlgby 4-1680
Specialists in
LOW-PRICED
URANIUM STOCKS
a
•
.
.
is
it
tree,
tween Manila and Cebu and other
rections,
but
is still in the development stage.
wag
re_established
1949
,oao
in
inter-island
be¬
circuits.!
•
,
W. Stephens
<
.
in
several
Inquiries Invited
-
di-
..
Mars
Metal
started
as
a
sole
WELLINGTON HUNTER
?
*■
.
„
,
,
Consistent
.
—
,
,
,
,
growth of telephone
servicecontinues in 1953 of 33 712
andestablished
an all time peak
from
a n
^
*
large ' industrial concerns
governmental
installations
and is partially processed and sold
to
various
brasg
lead
miUSj
and
year-end
the first time brass smelters, copper refineries
the war the number sub- and others throughout the United
stantially exceeded the prewar grates
at
the
since
The company presently
prehensive telephone network of owns and operates 85% of the
land
and
toll
lines, submarine total telephone exchange facilities
cable and radio telephone chan- and
all cf the inter-connecting
nels were serving the City of Ma- and long distance radiophone cirnila and 23 other municipalities cuits.
Prior to
Oppmheimc/i Sc
principal
15 Broad Street,
-Telephone
branching out
an
miles
OA
....
population of 20 millions,
Manila with a population in ex-
area
Firm Markets
Dept.
☆
11-rooted
was
have
Manager
Unlisted Trading
pres-
inter-island radio-telephone
nawa,
;
The Philippine Islands
☆
ROBERT W. PAYNE,
under
gradually
,
Companies
New.York Stock Exchange
Corporation
the
con¬
independent
five
w*
separately operated,
Members
case
Additional overseas service was
established during 1952 with New ownership in 1914, became a partincoroorated under the Laws of Zealand,, Guam and Macao. Com- nership in 1937 when the son of
the Philippine Islands on Nov. 28, plete commercial overseas service the first owner took over, and in
1928 for a term of 50 years
It is now provided to all principal March, 1953 was formed into a
has been successfully and profit- points
in North America, Aus- corporation Its principal business
ably "operated since its inception tralia, Europe and Asia except was>.and still is, the dealing in
those points that are restricted by secondary
non-ferrous metals,
with the exception of the period
political barriers.
iThis metal is acquired chiefly
of the Japanese occupation.
of
solidation
pv.xuc.vwu
Phone: HA 2-9766
Sold
of Mars Metal
earn-
prewar
This company,
New
—
BURNHAM AND COMPANY
bene¬
fit.-Tn the
' The
price of shares of Telephone holding companies |n this pleted and initial units of autocountry,
heavily
indebted and matic equipment were placed in
with large amounts of preferred service.
stock,
currently
sell
at
prices ;
Long distance telephone circuits
ranging from 10 to 12 times a were largely restored to prewar
year earnings to yield 5 to 5V2%.
capacity, overseas radiotelephone
The common stock of this oper¬
service to Shanghai was resumed
ating telephone Company looks
during 1948 and service was re¬
mighty attractive to me, selling at established to the Island of Okiiri„, tn vi„|H
„flpr
mgs to yield f,jL
B%, alter phiiinninp
Philippine
to
late
_
RED
Members
Board
The Company's
Lynchburg, Va.
Successor
Bankers
*Based on
shares.
Damage Commission for $7 520 ODD thls <country,
been adjudicated for $3 9721,- .The stock is traded in ^'over016- Of this amount $1,177,254.80 the-counter market and the San
was received by the company in Francisco Stock Exchange.
Ap-
.at
result
states
united
Investment
70,571
a soundly .financed, well managed
magnetic exchanges, one common utility company, paying extremely
the
agreement
a
removed.
Scott, Horner &
Mason, Inc.
~
clearer
current
Dan River Mills
Tele. LY 62
the
year
over-all Southeast Asia picture is
Commonwealth Natural Gas
.
by
last
elected
Alabama-Tennessee Natural
result of the program
as a
instituted
American Furniture Company
Gas
Philippines is greatly lm-
the
&
Broadway,N.Y.6 COrtlandt7-5680
.
nut
a
shares.
{Based
.
111
•
in
proved
Office Tokyo—70 Branchet
Brokers
ye™, experience rthe teSone batter*
exchange and two liberal dividends with a terrific
business' to STis country
?! magneto toU excha?lgeS- '
growth factor selling for less than
The nolitical and fiscal situation
A damage claim filed with the one-half of the price of compa5. political anq nscai situation
states
Philinnine
War rable stock of similar quality in
BROADWAY, NEW YORK 5
Ltd.
"
13
—'
T*
10.848
{First quarter 1949
manual
r
Japanese securities
15.408
.38
telephone stations and
exchanges,
^
-
publications
Securities Co.,
19.763
.97
current
Yamaichi
23,384
£First
our
on
28,954
1 "SI
4 298 connecting stations in servjce
other facilities consisted of
4ft
nver
quarter
quarter
had 31,419
jittery
V
write
or
50c
'
{First
+jrirai
matic
Call
'7
{First
The company and its wholly
owned subsidiary on Jan. 1, 1941,
management
ton
branch offices
our
Opportunities
3,572,000
The tabulation below indicates
Eur°Pe> Java, Japan and Malaya annual earnings per share as re■ :under grating
arrangements lated to number of telephones in
covering the use of radiophone service:
Earnings per Telephones
owned by the company and equipin Service
Share
Cene
ment owner by RCA Communica- fFirst quarter ,1954
.20
S39.000
♦First quarter 1953
0.55
33,712
Gary and tions, Inc.;- •.
'^
'
which
controls
and
manages
Telephone
Bond and
Share Company, the second largest independent telephone system
in the nited States, own
57.5%
of the capital stock of the Philippine
Long
Distance Telephone
Company. The rebuilding and development of this Company is in
to
.Investment
:'-f
P7,057.100
.'
radio telephone
wires
1949
1,355,930
ice was maintained between the
Company
Since 1917,
v
stations
PESOS
-
fr
u
u D-
of
sidiaries
American
1953
NY 1-1557
-
La.-Birmingham, Ala*
Mobile, Ala.
.
;
m?n T
120
HAnover 2-0700
New Orleans,
inro7DorTuhi^^^^BB^^B; *sIands aTnd th* United States, ; :
Specialists in
I
to
part of the world; ;,V
Overseas
.
,
under
Stock
Current
United
company'
York
every
,
ties in another>
New
Company
egraph
it is only ;
V* F
Bpston, Chicago, Cleveland, Hartford,
JHouston, Philadelphia, Providence
PHILIPPINE
IN
-
plant___ P28,7*3,352 PI9,402,128
assets
,5,205.093
2,057,131
the American Telephone and Tel-, current
natural to took^
BOSTON OFFICE: 84 State Street
Direct
I
and
Share
WOrth 4-2300
<
ENDED,
Assets—
Exchange
St., New York 6, N. Y.
Rector
Telephone
-
Telephone
5
the rehabili¬
program;
YEARS
York Stock Exchange
Members American Stock
Total liabilities
channels between the island of
P38,855,G29
Luzon and California, which afI-'.. Liabilities^'
forded-communication by tele-"
phone, through the facilities of; FuSdedd8ebt
j~
,2fi5'080
7,852,200
,
and
Company
Broadway, New York
Steiner, Rouse & Co.
Members New
operated cates the results of
tation
.
Corporation
Associate
Stephens, F.-W.
New York City.
-
New York Hanseatic
"-'"■W
W.
Co.,
Bought—Sold—Quoted
A
Stock
19
long and successful ex- Company, wholly owned,
perience dealing in the securities in Mindanao,
of the
companies controlled by
Direct connection between teleTheodore
Gary
and
Company, phones of the company's system
principallywith those in the United States
a s s o c i a ted
was maintained by means of radio
After
Puget Sound Power & Light
Established,
Class
Preference
■i(Page2),:
principal islands served were
Luzon, Panay, Cebu, Negros and
Mindanao.
The Davad Telephone
Telephone Company
Public Service of New Mexico
—Florence
Stephens
(Page 2)
Corporation
Participating
The
Long Distance
Metal
Mars
telephone service throughout the
through its own facilities
and those of connecting services.
Providence, New York City
Otter Tail-Power
E.
Greene, Coburn & Middlebrook,
furnished
system
Herbert
—
Louisiana Securities
Distance
Long
Co.
Inc., New York City.
Islands
Boston, Hartford, Portland, Me.;
Kentucky Utilities
The
stations.
Coburn & MiddJebrook Inc.,
V, ■
Philippine
The
offer to sell the securities discussed.)
GREENE
HERBERT E.
Alabama &
Their Selections
(The articles contained in this forum are not intended to be, nor
are
Iowa Public Service
Iowa Southern
of experts
Telephone
Gas Service
-
group
Participants and
advisory field from all sections of the country
participate and give their reasons for favoring a particular security*
Utility
Iowa Electric Light
different
a
Week's
This
Forum
Thursday, July 22, 1954
figure.
The following tabulation of con-
densed balance sheet items indi^
15
.
i
ASSOCIATES
Exchange PL, Jersey City 2, N. Jiv
HEnderson 5-6005
•
Direct N. Y. Phones:
Teletype J Cy 698
WOrth 2-4578-9
N. Q. B.
OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX
14-Year Performance
35 Industrial
of
Stocks
Before World War I the United
c
s
an
and
rous
metals
and
lead.
due
to
pvnorter
of
various
including copper, zinc
Since
the
World
increased
FOLDER
War
II,
industrial
REQUEST
National Quotation Burean
Incorporated
46 Front Street
Continued
ON
non-fer¬
secondary
on
page
8
New York 4, N. Y.
/
Volume 180
Number 5344
The Commercial and Financial Chronicle
i..
(307)
I N D E X
The Outlook fori
.
Business and Securities
"v Major Depressions Are
R.
Schwengel
By JULIAN D. WEISS
„.—Sen..- Frank
'
market
for
situation
the
dation
and
provides
Business
ventory
duction,
have is
*
their
ness
consumers;
in
Huge
1
staritial
v
i Which/
inventory
;
correction has
/ (2)
other
buyers have been
back
into
in
the young
ends of the
the X market.
means
a
Government expenditures for de¬
crease
in
fense
in the
will increase. Pub¬
lic purchasing power is high; and
disposable income1 has declined
only slightly.from 1953 peak. Ac¬
tually, there has been
second
contrac¬
a
instalment out-
consumer
is
—A.
"
•
*
W.
Rucker
Busi-
r
'
»
Announcing:
bulk
'
>
"
'
'
'
•
; /
»*
'y~
^
/" /
r
r
5
*
l '
■
*■ '•
much broader
/
base
in
the
j
.••••
This
uc|s<
g0Qj
a
part
Remains
^'y
to
Be
0f which
i
t
!
•
j
■_
.
-
'.[*••
r:
:
[
<$>
Gearhart & Otis, Inc.
Trinity Place, New York 6
18
7
1
rJohn F, Reilly,
:
Unlisted
Done
Manager
)
Trading Dept.
22
^
;■
:
•
'
Telephone
Teletype
WHitehall 3-2900
NY i-576
•
Credit Men
22
Eugene Grace Foresees Strong Demand for Steel From
/
Construction Industry
-ti
23
vt (Boxed)________.23
'
Kearney Wornall Finds European Bankers Interested in-,
for-
Middle West
MANUFACTURING*
^
_L
^
GIVEN
:
^ AffricuIturaE H,story
HYCON*
25
'
"
market"
„e/ass "iarkf-
J.
*
RAY
;
25
MCDERMOTT*,^
GULF SULPHUR
29
v
.
.
•
SULPHUR
•
'
-
.
/
'
PAH AMERICAN
'
>
: ;
•
•"
i
C,J
ULTRA SONIC
'
lu-.-/»>_.J_Coter
*
*
•
...
33
,
Literature
on
Request»
5
.
The stoek market has been act-
ing better than
the most opThere has been
even
timistic expected.
rise
a
Jones
82
of
points otf the Dow-
Industrials
since
mid-Sep¬
tember, 1953. . (The decline in
production has approximated our
10% forecast of Aug. 31, 1953.)
We have pointed out many times
Credit
(5)
Policy. For policy y
Administration can
espouse high interest rates and a :
hard, money policy.Referehce .is /
reasons,
tion's
abortive
forced
with
reserve
over
the past
reversal
a
the tendency of the stock market
opposite to business
reduction
count
continued
relation
money.
tive
sn
dividends, but
area
in
now
trend
of
prospec¬
longer is in
no
undervaluation.
the
line
and
current
of
area
(long term)
It
the
is
upper
arid while
the technical action of the market
(6)
refer
terms of the months ahead.
A
many
more
(7)
The
probabilities,
ahead,
point
t he
consoli-
over
to
•
•
We
throw-off
cash
Bookshelf.
'
4?"
' '
' 'V •'
'
specialized in
these
from
four
emergency
than
the
cash
sources
five
or
and
Bankers
Wilfred
May
Reporter
Governments
Our
Reporter's Report
Public
Utility
Railroad
Securities
Securities
Securities
Now
:—...
'
TELETYPE N. Y. 1-5
i
Albany
•
Manchester, N. H.
Boston
•
Chicago
•
Nashville
•
Glens Falls
•
Schenectady
Registration...^.......
Security
Salesman's
.
.
Piasecki
34
.
and
and
I
Drapers'
land,
^
HERBERT D. SEIBERT,
WILLIAM
DANA
Thursday
vertising
Issue)
and
N.
Y.
President
news
Monday
every
and
Other
city
news,
Offices:
Chicago 3,
111.
135
etc.).
(com¬
Li
STat.
alle
C.,
Eng¬
St.,
2-0613);
Match
of
W» V. FRANKEL i. CO.
Rates
Canada, $51.00
per
$55.00 per year.
Other
S.
in
year.
—
made
of
in New
York
WHitehall
3-3960
Direct
PLEDGER
Wire
to
& COMPANY, INC.,
fluctuations in
exchange, remittances for for¬
eign subscriptions and advertisements must
be
39 BROADWAY, NEW YORK 6
Teletype NY 1-4040 & 4041
Bank and Quotation Record
Monthly,
$33.00 per year. (Foreign postage extra.)
of the
INCORPORATED
of
Publication
account
t
8,1879.
Countries,
Note—On
\
*
-
second-class matter Febru¬
at the post offfce at New
Subscription
Dominion
.
Temco Aircraft Corp^
Smith.
Subscriptions in United States, U.
Possessions, Territories and Members
Pan-American Union, $48.00 per
year;
the rate
,
South
(Telephone
&
B.
Company
as
1942,
ad¬
plete statistical issue — market quotation
records, corporation news, bau. clearings,
Worcester
25,
Other
and
London,
York, N. Y., under the Act of
;
1954
(general
c/o Edwards
;
Editor & Publisher
SEIBERT,
Gardens,
Reentered
9576
Thursday, July 22,
Every
7,
■
Rohr Aircraft
40
Copyright 1954 by William B. Dana
COMPANY, Publishers
New York
Preferred & CommotH
5
1
ary
Place,
.!
•
2
You
REctor 2-9570 to
'
Reeves-Ely Lab. Inc.
12
You—By Wallace Streete
Reg. U. S. Patent Office
.
Helicopter Corp,
23
FINANCIAL CHRONICLE
DANA
'
37
Corner
COMMERCIAL and
Park
Sulphur Cc
#
Offerings
The State of Trade and Industry
Washington
state
•
1-1LZG
25
...
The Security I Like Best
30
Pan American
•
Prospective
ST., NEW YORK 4, N. Y.
TELEPHONE HAnover 24300
Pl/N. Y.n
Sulphur Corp.
27
*
in
Gulf
38
the
New York Stock Exchange
Exchange
33
on
of
Spencer Trask <Sl Co,
40
-
Tefetyiie NY 1-1825 & NY
5
Our
CTftPlfC
0 I UUlVO
IlIL■ L II11 CII
'
28
Observations—A.
Securities
page
HA2-0270
33
News About Banks
.
Members
Bargeron.... 12
NSTA Notes
The Market
on
Singer, Bean
& MACKIE, Inc.
8
:
has
great cash flow, even if reported
Continued
than 2S0 over-the-counter securities'
'
Exchange Rate Looked For".... 17
Funds
years
Because
mora
26
25
BROAD
T.
Mutual
WILLIAM B.
25
'
,
32
in
doubled.
Dividends.
DDFrrDDrn
■
.
Indications of Current Business Activity.j.i—."
v
trading markets in
40
.
From Washington Ahead of the News—Carlisle
-
The
have
4
Dealer-Broker Investment Recommendations.
/Einzig—."A Weaker Sterling
Pablished Twice Weekly
For many years we
40
—-.
.
We maintain
a
easy
Flow.
major companies
past
ma¬
months
Cash
Man's
amortization and the fact that for
jor decline on a bear market trend
is not anticipated.
'
of
Z
the huge
the
in
redis¬
means
•
from depreciation and
tion
thinking
bank
the
All this
Corporate
to
pioiicy,
member
background
'
throw-off
warranted,
tighten
that
of
in
rate, etc.
is good, we, nonetheless, feel cau¬
is-
to
requirements,
decade. The market fun¬
damentally is not overpriced in
to
effort
Business
Coming Events in Investment Field
money the first half of 1953; and
the fact that political necessities
to
move
;
no
to the present Administra¬
made
.
Trust Departments of Metropolitan Commercial Banks Not
/ Profitable, According to Federal Reserve Bank of New York 23
------
.
(Vi?^
<
Association of
,
"class
.
■■'"r
19
11
Improvement in Trade Payments Cited by Nat'l
The
-
*.
■
Houston, Texas
\ \ -j
^
.
distil-,
income.^
■*
*
/
...
button, of-national
-
)
.1— 22
____
Hugo Steiner Foresees Easier Credit Continuance—
does,
Broader Income Base.
'• C-*■
•.
f
RERIE & C(
74
*
(3)
F
r.
>
'J
i
George C. Johnson Terms FHA Greatest Boon
'% To Home Buyers
work¬
ing population.
>
.
Technical Progress in Air Conditioning—Arthur J. Hess~_i_ 24
'J
the
of
>
'//a
and * oldj
population curve;.This
relatively greater in¬
the
■.
;
"middle-age groups" which
constitute
a
10
The 1954 Crop Outlook—Roger W. Babson
con¬
it
l:,-r
;
:■
—.w.—
population,
than
1
•
.
Complexities in; Determining Utility Earnings Requirements
/
—Eugene S. Merrill
population Sre/ih
consumers
\.
i'
-
9
Direct Wire ftf
.,
v*
,
f
country.
**
NEW YORK
1
■
Increase.
aggregate '
StftEfeT,
t
high plateair, with •
•
FRB of New York Reports Slight Deeline
in o d ^i tn te improvement being i.
Vri Business Loan Rates
inanifested the past few months.; years Me Federal Government has •.
Kt> inflation is probable over the^operated: at a deficit; and this, in :: r
NYSR Reports Higher Profit in First Half of
short term.
In our opinion, 1954
rf|' means a further expansion
will be''.the second best year in in the money supply, with a con-'
/N:v i
Regular Features ;
History from ah overall" economic - seQ^ent effect on the pnee level /
Viewpoint. ; We definitely do not ;'.?f the country. The money supply
As We See It (Editorial)
envision a depression. '
/
.
in the United States has tripled
-•v
..."
since
1939 and quadrupled since
Bank and Insurance Stocks
\
Stock Market
1929.
a
on
WALL
■.
i
.
<
It
-
,
,...
Telephone: WHitehall 4-6531
-
/-».
we'
Busings activity m the makVs aT "ma^Mrker"^! f>ro£
ot 1954-.is likely to
haif
bettert the first half results.
ffessr
in
this
in? the
creases
Julian D. Weiss
nessed. Retail¬
tion in
■."*
More Consumers. The fact ^ Roger Auboin, BIS General Manager, Terms Europe's 7 /
>-4 Economic Recovery as Substantial But Contends Much
relatively the heaviest Zin^
that
wit¬
standings.
*'
*
■
^"Economic Sky Grows Brighter"—Hon. Sinclair Weeks...... 14
sum-
•-
growth
sumption
purposes
are
Population
increases
portion -of the
tand
"k
in America"—Antonio Juarez
Labor-Management Relations: How Accountants Can Help
[/With: probability of further sub-
'
that the major
ers
W
»•
99
6
__r --
Conditioning Needs Only a Sales Job to Become a i *-*'■
: Universal Comfort—George S. Jones, Jr.__^jj_±—_______
mar¬
"bubble."
a
market trends
and
(1)
/
probable
coming
than
more
^marized below:-
ex-'
jpenditures for
j*-
been
-
>
____
'■
Obsolete Securities
Dept.
v
Air
^ which
are likely to prove the de*
; terminants of the long-term busi*
reduction*
is
•
1 _^...
Siragusa*
.
is .fundamental. The major factors
by
it
•
'What
in
durable -goods.
D.
/'
-5
*.
.
Spending/'andr
,
—Ross
^*_"Av Share
ket, 'in : the i next few r years,* is
likely to exceed the 1929 highs, of
384 on the Dow-Jones Industrial
government
(c)
-
>
.
:
i A Long-Range Appraisal of the Electronics Industry
:
depressing securities
ottd Hurrah, we make a bid!
4.
.
*:
( b )
cutbacks
.
Will History Repeat Itself?—Bradbury K. Thurlow.
17
Average.-;",•'r'
'
•j-v- -H7
Many people have stated, "the
'/ European Countries Nearing Convertibility—George F. Bauer 18
.'bubble must break/'
in-,
re¬
j
the
c:,...
.•
'
The long-
expressed, opinion that
;
I ways
3
-
vFinancial Department Stores^-Ira U. Cobleigh-—i_r
previously/
^
For the past nine months, there
has been a readjustment stemming
from/ (a)
Long-Range' View Toward^ Higher Stock Market
..•0£ —George C. Astarita__J__t_
.1
term trend remains upward. There
is no change in our
basis
following conclusions:
shake-out.
or a
AND COMPANY
most unknown securities
...^Cover
;.i
anticipated, and long range
trend remains upward. Contends in next few years the DowJones Industrial Average is likely to exceed the 1929
highs.
business
Economic Policy?
Carlson......
'•A
and while its technical action is good, caution is warranted.
Holds no major decline need be
,
i
:___Cover
^ The Outlook for Business and Securities—Julian D. Weiss..—
On the basis of his analysis of business and stock market con¬
ditions, Mr. Weiss concludes business activity in the second
half of 1954 is likely to be better than the first half.
Warns,
however, stock market is no longer in area of undervaluation, ^
the
!-
J •*
I..............,:.;
How Realistic Is Our Foreign
Partner, First Investment Company,
Investment Counsellors, Los Angeles, Cal.
of
^ "•'*
1
■
—Frank
'/ Analysis
Page
Thing of the Past!
a
LiCHTfnsTtin
B. S.
Articles and News
General
3
funds.
LOS ANGELES
r
,
The Commercial and Financial Chronicle... Thursday,
4
July 22, 1954
(308)
which has held at near peak rec¬
ords
Long-Range View Toward
Higher Stock Market
A
the future
high and
"blue chips" are relatively
warns
part
though he
have tempo¬
stock market conditions sound,
Mr. Astarita finds
may
:
_:
_
_
_7_
_
_
for
has
recession
business
historyj
a
ceptible dimi¬
nution in pur¬
d
multiples
of
earnings and dividends probably
former
has been low¬
ered
the
as
will not be attained.
re¬
The
adjust¬
tory
spots have ap¬
in the
economy such
peared
has
reasonable
be
would
and
motive
-
spell which might last one year
or longer.
During this interval, it
auto-
the
;.
that the
accomplished a
also
rise
"
exists
Another
to
suppose
.;v.
dent
with
nent
as
immi¬
over-all rise
an
the result of the
gradual
demise of the attrition forces and
the
revitalization
immediate
The
ders.
sparked
defense
of
by
or¬
future,
money .and
easy
Industrial
Jones
Dow
back
within
to
.
300
based
upon
dynamic
which
factors
will
long-term
continue
to
an
operate and which should bring
friendly to busi¬
about considerably higher prices
ness, appears bright but a plentiful
in the years to come.
•
amount of production with its at¬
Based upon these assumptions,
tendant factors of price pressure
the long-term investor need have
and lower profit margins would
no
coneern about prices but the
seem to temper too great a deal of
short-term trader shoiuld be alert
enthusiasm. On balance, however,
to the opportunities ptresent in the
a favorable attitude toward busi¬
secondary stocks and he should no
ness
would seem to be justified.
longer attempt to make money in
Political
careful
appraisal.
view
of
weathered
the
i
time to
mar¬
rise, what is the outlook for
market
has
in
chip"
some
it
during
that
true
concentrated
been
what
is termed
stocks
that
and
coming
the
rise
still
below
also
true
the "blue
perhaps
their 1946 highs.
that
the
Dow
are
made
Averages, which
or
more
of all listed stocks
65%
If thus far
the meantime having
Is
...-v.'.,:
come.
reasons
the
into
lulled
be
are
It is
Jones
up
for
been
a
Such
adjustments.
tory
r
The
inven¬
from the necessity for
ly
adjust¬
ments, however, are self-liquidat¬
after the painful period
ing and
the
passes,
always
economy
only has
the American
nomic history, but the prospect is
still
a
the future
better
performance in
the result of built-
as
which
ures,
increase
by ap¬
50
million
persons
in stabilizers introduced since the
and the work force will multiply
last
proportionately.
war.
Consumer
demand,
securities
appears
only
as
a
matter
of record, these
having been placed privately through the undersigned.
The work week
somewhat but only
decline
Productivity
slightly.
hour
advertisement
the
population will
proximately
from
2 Vz
to 3%
the
popular stocks with the Monthly
which
1974
Central Illinois Public Service
now
No. of Plans
Radio Corp. of America
1,057
Company
Standard Oil (N. J.)
of
Tri-Continental
size,
tens
double
roads
\
—
*
;
!
.
7
-J.
..
270
Socony-Vacuum.——-——238-
Your columnist
present
new
(Par Value $100 per Share)
houses and still more millions
vision
reality
$100 PER SHARE
jof
of all the items used in the home.
The
PRICE
of millions
which
nation,
will
become
prosperity
spells
for
growth
for
a
the
individual
point out that it is more logical and practically effective
what (to buy) problem by taking advantage of the
the
of
mentality
investment
the
diversification
eliminating
company.
hazardous
By
this
~
lists nearly
100 different mutual funds which can
convenient periodic basis.
to solve
instru¬
initial
means
concentration,
continuing management, are secured—at-low cost.
a
-
other specific choices that may be made. But it is important
any
to
on
-
assuredly is not going to quarrel with these
or
4.25% Cumulative Preferred Stock
;
302
279
International Nickel—
du Pont
their
'
319
U. S. Steel—
.•••*> ~
; ;
540
529
396.
—_
Long Island Lighting
:
100 million instead
of
network
_
General Electric
.
day!
of 50 million motor vehicles on a
—
American Tel. & Tel
therefore, visualize in
perhaps
911
867
740
Chemical
General Motors
production,
is $1 billion per
One may,
50,000 Shares
•
Investment Plan buyers:
Stock
•
the nation's industrial
the question
sional, by blue chip-itis—or a reciprocal compromise of the three.
What he does buy is evidenced in the following table of the most
projections
should bring about a doubling
.?>
Exchange's Plan still runs into
Stock
regarding the what to buy. Which single or few stocks shall the
non-professional choose? His current arrival at a specific choice
is pot clearly defined—apparently he is influenced by his broker's
recommendation or by the glamor appeal, or, even as the profes¬
These
year.
per
immutable
dollar-averaging plans supply a most
words, the
valuable forecasting antidote.
But
^
•
.
other
In
of
of any minor disadvantages
sound, justifying the incurrence
such averaging.
man-
per
of turning to
means
periodic schedule of buying, eliminating the hazard¬
trouble-making problem of market timing, is extremely
historical rate of
at least its
almost
NEW ISSUE
and
Dow
by
a
The set
ous
to increase
continue
should
one's advantage the fact
capitalizing uppn declines
in stock prices when the occur,"* this writer disbelieving in this
particular favoring argument, Hoes Instead strongly cOmmend the
device on the ground of its supplanting tempting forecasting pro¬
clivities with a disciplined and automatic time-table.
"it is
prices do fluctuate and of
.that stock
reached
be
can
that within the next 20 years
may
This
readily available,
are
conclusions
the
7
;
constitutes "dollar averag¬
ing." Dollar Cost Averaging is the technical terra denoting the
investing of approximately equal amounts of money at regular
time intervals. While its growing number of proponents are con¬
labor
length of work week
the
force,
Not
economy
enjoyed full employment 80% of
the time throughout its long eco¬
for
of the future de¬
the 'available
Dollar-Averaging
Exchange's Plan, of course,
vinced that
re¬
sumed its long-term
upon
Implications of the
/
again occur, resulting main¬
will
and productivity per man-hour.
in considera¬ Without using substantiating fig¬
tion of the next two decades.
'A;'i.7",77'*.
should be noted that recessions
struck, such caution can be
largely disregarded
new
taxation" of dividends derived from
the forthcoming Revenue Bill will also supply at least a psycho¬
logical fillip to Main Street stock distribution.
;
^ ;
that business recessions are passe,
it
The economy
note of caution has
million of annual
the $700
as
Any relief from "double
concept
false
context of
equity invest¬
individuals, the $250 million yearly stock purchases by
pension funds, the $160 million of common stock acquisitions by
life insurance companies during the first five months of this year,
or
the mutual funds portfolios' acquisition of $641 million of
equities during the first half.
But the MIP is all-important in
the pursuit of that nettlesome goal of democratizing security own¬
ership—90 of the Plan's participants being new investors.
Such
democratization additionally is being furthered enterprisingly by
the tying-in of payroll deduction plans, such as are so widely and
soundly used in the Treasury's distribution of Savings Bonds.
Deductions from an employee's salary may run as low as $3.08
weekly.
Four industrial companies already have permitted Ex¬
change houses to institute pay-roll plans, and with registered
representatives earning commissions thereby, the trend should be
other, stimuli:
extended.
reader, however,
the
Lest
past.
pends
Outlook
Long-Range
reces¬
substantial stock
a
months?
less
^ m?-
'
having successfully
mild business
a
and in
enjoyed
ket
compelling
are
upward trend
initiated by the inevitable growth
; considerations, ;'as' No¬
the blue chips v^hich have perhaps in both population and produc¬
approaches, will deserve
discounted the future for some tivity,^
vember
sion
These
distance
-
Administration
In
'
After this con¬ why the economy today and in the
solidating phase, the market future will enjoy; a far greater de¬
should work to still higher levels gree of stabilization than in the
level.
of the
the oyerall
ment by
Average
striking
-
course,
market
around for the purpose
formation of business is now evi¬
May
Spreading the Wall Street Wealth
chips
blue
the
that
seg¬
_
the impact of j this buying power on
structure is negligible when viewed in the
Of
will mill civil defense against the hydrogen
of digest¬ bomb may well increase this fig¬
ments of t h e
ure by a substantial amount. Such
ing their large advance and the
George C. Astarita
consumer
du¬
secondaries
in
many
instances expenditures, while reducing the
rable goods in¬
should work higher in order to people's welfare, nevertheless con¬
dustries, to. say nothing of the de¬
tribute greatly to an active econ¬
terioration of agriculture. It can get more into line with the blue
omy and incidentally to govern¬
chips. It would seem likely, also,
be said that the nose and ears of
ment deficits. The larger the gross
that during the same interval a
the portrait are slightly marred but
technical
reaction
should occur national product grows, however,
that the picture as a whole is one
the less burdensome becomes the
which conceivably could take the
of a healthy man.
A saucer-like
government debt.
other
_
*
bolstering
for
Proposals
•.
A. Wilfred
paring, will probably exceed $65
billion during the 1954-55 fiscal
year.
his
in investment company securities,' in
•
'■
■
,
apparently
and
new
■
reported *
Funston; and by Arthur
..Wiesenberger, long-time dean of the special¬
as
v
be questioned but it is a fait
accompli and as such has become
a permanent part of our economy.
may
permanent economic stabilizer is
great deal within a short period of
to be found in defense expendi¬
time and
for this reason alone
tures which, despite attempts at
the market is entitled to a resting
ments and soft
as
fact
recent
of inven-
sult
generous *
4 change's; Monthly. Investment Plan
ists
.
ction
u
.
-.
^description;oLaccumulation plan doings in the
//: mutual funds area in , the- 1954 edition of
INVESTMENT COMPANIES, ($20) the stand■V ard annual reference work in that field. '
ty-y ; Making
a progress report on the Ex¬
change's 1 Plan, Mr. - Funston , discloses v that
since its. inauguration January 25 last; more
than 19,000 plans have-been initiated, and
they are coming in at the rate of 100-150 a
day.
The payments made since the start are
7: approaching $4 million and the orders figured
at their completion amount exceed $45 million.
lower
'spending,
more
been ipuch cheaper today in relation to taxes and easier moneys Rein¬
assets,
earnings
and
dividends forcements of this magnitude serve
than at former bull market peaks.
as insurance against business de¬
It should be remembered, how¬
clines and a rapid cure should the
ever, that we are living under the decline eventuate.: The economic
threat of war and for that reason
philosophy behind this practice
not
chasing power.
r o
by
,
.
..
,
is. immediately com¬
economy
bated
\
"What to buy?", "When to sell?" have tradi- ;
tionally been the three foremost questions. besetting investors.
Perplexity over the first, the when, is being importantly relieved
by the periodic-accumulatjon-plan technique, the growth of whose
\
popularity is currently highlighted by two
sources;—results of the New York Stock Ex-
adopted
by government and both political
parties. Any decline in the Over¬
_;._
accompanied by falling industrial
and retail
prices and any per¬
P
of the economy accounting
two-thirds of total spending
compensatory spending
of
all
the first time in
For
Time-Buying in the Stock Market
"When to buy?";
.
part of blue chips, are
most
the
By A. WILFRED MAY
Contributing in large part to a
stable economy is the new theory
solid basis for an almost
-continuing upswing of stock prices during the next two
dMadef; 'fl«Ids:Bei;r>thMiy lof:c^peii«atory spending helpful
prosperity.
the result of old-age
is hardly conducive to de¬
pression atmosphere,
ondary stocks, but holds there is
~Y6~
Observations...
in
stability
manifest
as
power
set-back. Sees greatest speculative opportunities in sec¬
rary
so
unemployment com¬
pensation, pension benefits, farm
supports and mounting wage in¬
creases.
A steadily rising dispos¬
able income superimposed on that
Colorado Springs, Colo.
Members, New York Stock Exchange
•
business
and will
recent
done
assistance,
Boettcher and Company,
1
has
to
continue
C. ASTARITA
By GEORGE
the
during
recession,
as
well;
as
Wiesenberger
be purchased
.
companies and amassed wealth for
the investor.
Expert Guidance Gratis
One must, therefore,
*
Kuhn, Loeb & Co.
July 22, 1951
possess
vest
for
faith in America and in¬
the
purpose
his inherent right to
the
large
and
of enjoying
participate in
inevitable
which lies ahead.
And
there is
cost—and
benefit
of
even
actually
to
a
way
have
diversification
a
and
for the purchaser to eliminate this
"minus cost"—while gaining the
management; that is by using the
closed-end iiivestment company as
the issue to time-buy. For sev-
growth
* "Investment
Companies," Wiesenberger, 1954 edition, page 41.
■
Volume 180
Number 5344... The Commercial and Financial Chronicle
(309)
eral entities
of
ranging
to
up
Incidentally,
lent to
a
this type are permanently available at discounts,
40%, from the market value of their portfolio.
discount of 40% from book sales value is equiva¬
Financial
appreciation above cost of 66%%.
an
the realization of profit on such differential may
be academic, at least for a long time, in the absence of the
port¬
the
exceeds
ing
the Exchange's most popular Plans is
highly justified (the high
leverage on this company's portfolio, in accentuating fluctuation,
chemical
a
in
pany
pear
constitute an additional advantage to the dollar-averager, at
psychologically), v " •*
:
Greater public consciousness of such
.<
customed
lodging
Bear Market Implications
acquisition of
•
Bound
up therewith
to
or
-
.
•i
Industry
U.
I,:
;
Cobleigh
have
that
Retail
other
auto
progressive branch
The
first of these
of effective
amples
Trade
bank¬
sales,
thriving
a
Production
increase in
an
commodities
were
wage
Just
the
at
*
mid-June.
Common
business
man.
*
V '
".J,-..- jr;
f,.-
Steel
with
*
National
in the U.
S.
ered
progresses,
Long Island,
on
Grumman,
name
few.
of
a
people
Hazeltine
the
of
summer.
located
super
huge
are
...?••
markets
streamlined
cent
its
a
partly by
banking
branches.
the stock,
it's been good
and
offering of 200,000
after
in
Valley
the
par¬
past
fastest
15
grow¬
in
is
$1.00
against 1954 esti¬
earnings of around $1.65.
mated
Seven
been
dividend
have
increases
posted since
Present
1946.'
quote 23 V2.
little
This
fered
to
have
piece
bank
stolid
which
been
those
shares
defensive
that
security,
has
to
suggest,
viewed
there
are
fine management,
by
op¬
regions,
can
in
opulent
shoot up earnings, dividends, and
market
prices- of
their
shares.
Moderate
cli¬
temperature, low
the
of
describe
investor
the foreseeable future."
that is—and they've
quite
16,000 homes
'
a
boom,
cur¬
year
v-'.X-tdWltn
v.\>no:
On the industrial side; there
a
accessory
plahtS; and Arizona has long been
over
for
40%
of
our
copper
sizable1 tonnages
as
as
Wfell
Of lead, zinc,
gold and silver.
item
with
the
cotton
ing
crop
About
lead¬
sound
their latest statements
The
•
lowering
in
now
of
...
re¬
reserve
,and current forward
quirements
motion
the
as
market
bond
sug¬
unfavorable
not
a
time for purchase of bank
shares.
Perhaps the two issues we've dis¬
and cattle important.
cussed
banking,
further
branches have
have gone hand
They're sound banks—
good too.,
gest
Agriculture is still the top in¬
come
bonds,
profitability
hand.
and
producing
minerals,
this
on
by
thai the rise in deposits and rise
in
butlays,
returns
loans of all kinds, so
mortgages,
in
aircraft and
have
stores
been able to
whether
commodity
in
These fi¬
to offer—money
wares
interest
glean
dire
of
department
This has
building
a
°urve
easily
contentment
nancial
been
limned
we've
ones
today
wonderful
have
top of overall economic adjust¬
on
such
today
deserve
may
your
inspection.
shopping cen¬
buying habits of
economic
an
almost any
Blair,
•
climate,
important again.
in the fall,
:
This makes it
it is to expect
as
a
chance
a
bank would have had
to
as
Drive-in
idents
partments.
are--
very
soundness
of
Steel Industry
is
business
reflected
in
the
after the Fourth of July holiday,
^
"
-
.
•
on
Incorporated
The Frankliii National Bank
of
by
no
were
many
needs
and
so
prosper;
To
.
a
of
31
a
.
-
>
.
bank
a
was
for
and
deposits
viduals,
as
•.
12
V
a
garage
or
loans.
month
,
-
44 Wall Street,
.,
.
•
V
.
For indi-
•
as
low
$80 were1 made available and
New York 5
Teletype NY. 1-1109
Telephone DIgby 4-4000
Private Wire System
facilities
loans
,
-
or
intelligent
accessible
.
.
diner,
houses, Franklin Na-
ready with
Descriptive data upon request
them
see
,
a
Bought—Sold —Quoted
•
banking
opening
opening
builder of
advice,
to
fchger
veteran
mechanic
tionaL
their
-
:
re¬
:
to
Square, N. Y. 1
CAPITAL STOCK
.
business-
small
amazed to find
sympathetic
so
1
Franklin
re¬
men
'"Steel,"page
Virtually
fused, and
- y
rebound
says
Continued
Y
»
the order of the
were
legitimate
a
V
•
banks, personal
buying de¬
for reasonable credit
responsible individuals was
"
"Steel" Is Optimistic About Improvement in the r ^
an
Roth, Pres¬
quest
popular^ though wide
tbnV;
;
its
instalment
and
day.
flange beams «re-ariittle easier: -Oil "country goods are still strong.
Railroad demand-is weak: Farm products ate moving fairly well.
Steelmakingscrap prices edged «p this week, after 6 consecutive. weeks of decline. Increases raised The Iron. Age Steel Scrap
per gross
and
management to
shadow of Arthur T.
loan
Composite Price 25C to $26.83
National
took
thesejj
important degree, the lengthened
.
are scheduled at 66.0% of
capacity, a gain of 1% points over last week's revised rate.
ingot production index is estimated at 97.9 (1947-49=100.)
.<
Market for sheets 'and i strip; both hot- and cold-rolled is
generally dull.; Spurred by grain bin program, galvanized sheets
are very firm.
Tinplate is beginning to ease from pace of last
Construction Items
—
it
maximize
to
of Franklin
shareholders
lull
but
prosper,
management
New York
Albany
Grand Rapids
.
'
a
of
banks
displays a growth
which, if projected, could
the
been
of¬
who
as
type
Either
has
re¬
shares
shares
new
progress
famous
and
arose,
all
shareholders
erating
number
Post
Management's Role
Steelmaking operations this week
steel production
Arizona
Government, expense
Long Island, king
on
its
and
diverse
so
in
About
thfee Air Force bases with large
to
ters localized the
The steel
Basic
—
has been the
around
Long Island R. R., every¬
flourishing. Small busi¬
size
payments
offering
rather
rently: •>:
;
thousands, and house¬
ness
interest
Ari¬
Phoenix, in
was
rated
1
the
and
caused
lot
homes.
going
about
moving in at a
great rate with their goods, their
building became the No. 1 indus¬
try.
With the possible exception
general has weathered the "adjustment"
into a period of steady if gentle
;;,v(3) Seasonal factors
•
Eastern
banks, Valley does a
big time deposit, or thrift depart¬
ment, business and although it's
states
Island, flat and acces¬
sible, became the suburban Mecca
In
;
;Y
commercial
retirement section of the country.
SpOrfy, Re¬
This brought a
needing
for tens of
headed
natural to expect an upturn
.
any
pur
Pensioners and oldsters from other
war, Long
thing
We're
notes
humidity, and plenty of sunshine,
particular, made it a top
.the
as
have
have in
to 100th right
efit
;
'
of
mate.
potentials for the particular ben-
^
V
•
som e
most
number one factor in all this fan¬
zoomed
in most other industries.
X.
is
tastic
Since 1945
more sharply than
manufacturing industries. Now that inventory correction has
just about run its course the pickup im steel will be sharper than
'
Unlike
rate
different
a
funds and their incomes.
this
public,
ment has caused steel business to be curtailed
months.
be handled.
point of population,
retail sales, farm income and last,
but not least, bank deposits.
The
First, dur¬
the War, aircraft and elec¬
tronic plants blossomed and flow¬
•
few
general,
ing state
ing
most
few
port¬
install¬
and
residents.
in
seems
(2) Inventory correction
•
loan
22, will have 1,200,000
outstanding.
Indicated dividend
conditions
excellent.
a
in
First
number of forces.
a
for
but
reasons,
make
years
physicists might say, the resultant
improvement.
in the
its
of
consumer
at
ticular.
Bank
has
where,
National Bank of
Ten years later
$178.6 million and on
National
Shares selling
They should earn
switch out to the South¬
we
of
zona
year-end, deposits stood
million.
Today without putting
also been
the way Franklin
moved
ahead.
At
at
were
All
upturn are:
Business
set
of¬
in the entire nation.
has
1943
size)
orders
now
west
doing
eight
now.
...
(1)
period,
in
ahead from 807th bank (in deposit
are
expected to pick up noticeably within the
according to "The Iron Age," national metalworkiftg
weekly.
Orders; placed > during that time .will be largely for
September production. Steelmakers expect September to spear¬
head a steady fall upturn.
.
.
»■
Meanwhile, July steel business is fully as sluggish a6 had
been predicted. August business, which is now pretty well on the
books, will provide scant improvement.
Biggest reason for slow business now is plant-wide vacations
of many steel consumers.
Over-ordering in June as a hedge
against a possible steel strike has also resulted in less business
now.
In addition there has been some tapering of auto production
as producers are getting ready to introduce new models.
i
A number of factors which make the steel market seem ripe
an
look
Franklin
next 30 days,
for
areas
short of $225
of
•.
In January
up
about 58.
Now
is
30, 1954, three short weeks
ago, deposits were just a whisper
stock
Future Steel Production
Optimism-;'-''"•'
$15,372,-
ih
loans. / Fact
ex¬
June
/
"Iron Age" Views
*
profits.
Valley National Bank
$9% million.
they
new
about
above $4.25 this year.
Long
on
National
highs." For the Reserve's interesting and informative summary of Conditions in the various departments of
industry and finance please refer to another page in this issue.
This condensed analysis is worth careful consideration by every
prices reached
business
Franklin
rates, while prices of most
after
talk
is
to
to
ties
activity changed little in June.
stable
35%
but
service
penny
now
fices in Nassau and Suffolk Coun¬
exceptionally active and retail sales of
Steel prices were advanced early in
were
eminent
expansion
the Franklin National Bank
Index
goods also increased.
July, following
other
construction
its,
bad for five years.
mo¬
widening
the horizons
of
service to depositors, and man¬
agements assaying high in initia¬
tive,vision and judgment.
'
and
In particular that meant
loans and today the bank not only
handles the traditional farm cred¬
(over and above, the
original $5,500) you'd have 334
shares worth; over $17,000.
Not
a
tion, by virtue of geographical lo¬
cation,
A Washington July 15 release by the Board of Governors of
The Federal Reserve Bank commenting on the national summary
of business and financial conditions in U. S. A. for June and the
"Industrial
positors.
$5,500.
dividends.
gener¬
ated terrific financial forward
Output
.
branches, and his de¬
sire to broaden the services to de¬
had considerable competition from
Since then $277.50/ Savings and Loan Associations it
has been paid in cash on this hold¬ still is able to keep its share of
ing and 234 shares given as stock this trade, partly by liberalizing
enter-
two
.'prises
\
0
Summary of
'
let's
around
devoted
ever,
to
Ira
•
\
$81.6
his belief in
,
'
*
to
1950, 100 shares of Franklin Na¬
stock
would 1 have
cost
Island, the fastest
growing * section
of New
York
State, and one of the most ex¬
July follows:
loans
below $10 million, and
stage for its expansion by
were
set the
tional
"
rv?-.Business Conditions
"
Now
209 at June 30, 1954.
of. ChiToday's
piece is, how-
.
panding
first week of
The June 30,
grown from $1,091,066 to
Com-
pany
.
Business Failures
The Federal Reserve Bank's National
for
bills
Since Dec. 31, 1945, Capital, Sur¬
plus and Undivided Profits have
Northern
.
cago.
-
Commodity Price Index
Auto
and
pur¬
or
doctors'
shows
National
Chairman) right after the
depression, when the bank's de¬
straightaway loan demand, per¬
sonal, collateral, or real estate can
Trust
Productionr
Price
trip.
statement
presidency
(he is now
ment
the
Carloadings
Food
like
the
lion.
tional Bdftk Of
tr
State of Trade
Valley
Walter
named
over
folio
ing,
Retail
gentleman
up
Mortgage loans to busi¬
ness—individuals—were $33 mil¬
New York, or
<
•
million,
1945.
Board
about
either
businesses—individuals—at
or
accom-
modations
in
the First Na¬
v
questions con¬
nected with its possible subsequent
sale, as an individual transac¬
tion, as well as the market and economic repercussions?
At any
time an MIP plan purchase schedule can be terminated, and also
stock already bought whether fully paid for or not, can be cashed.;
If the current one-way bull market should ever develop into
a real bear period, how would our time-buying laymen
behave?:
Would
they liquidate midst emotionally • disturbing deflation?
While this assuredly constitutes a $64 question, the conclusion
seems warranted that a time-buying schedule would at least tend
to induce a more phlegmatic attitude over the
long-term, and
thus is highly constructive on a very broad scale.
.
made
for
appliances,
or
needs
vacation
a
1954
$340
g-1 eaning millioh.
are
Electric
bank
loans
cars
personal
.
Steel
such
chase of
over
credit
have discussed various factors in the Planned
stock.:
a
the
year
8,000
their
Wampum
.
we
last
com¬
rate of growth may ap¬
bit startling to those ac¬
a
availability of
income would be constructive.
And judged by the low yield ex¬
tending down to 1.8%, of many of the stocks picked in present
MIP plans, this is needed.
- >
v
In the above
bank emulat¬
a
electronic
or
other
or
A
of
posits
The spectacle of
.
Hence the inclusion of Tri-Continental in the above table of
may
least
of
Bimson took
(Long
Island) and The Valley National Bank of Phoenix, Arizona.
management expense, the expert management
*
posits
from $200 million in
A teller's window view of two of the fastest
growing commer¬
cial banks in America, Tin Franklin National Bank
through the corresponding yield in income. And where the dis¬
is secured free, plus a bonus.
Department Stores
Enterprise Economist
.
folio's liquidation by open-ending or other form of sale. But in
any
event, the investor benefits continually from the time of purchase
count
been standard and
Valley National
Bank has 35 offices and total de¬
By IRA U. COBLEIGH
Of course,
5
Chicago
Rochester
St. Louis'
-
Buffalo
ConnectingY
'
■ "
"
Philadelphia w
Detroit
.
font.
.
'
San Francisco
.
•
^
Toronto" r
-
Financial Chronicle
The Commercial and
6
technicians. Half work
A long
-
1
Range Appraisal of
The Electronics Industry
ways
half
■.%
executive, commenting
Electronics
one-half
tions
f
since
s
-into
feroiad
1
s ea
dustrial
e
through
industry
risen to
spectacular
production
ment
and
has
of
Ross D. Siragusa
heights
of
all
that
kinds
totals
lr
v
-
niwavc
C1,rnri„inrt
liner
plastic
for
the
On
door.
Ph)
C
cagoians
seem
not
17!e
to
Yhdu^trv£tn
it
is
-
increase
market
consumer
for
Almost the
in
our
en-
from
electronics research are the
,.
.
.
month
products
JjJXUUUUXS
cuitry.
away
away
manuHiaxiU-
are
aXC
we have a six-tube
employing printed cirThis section alone does
ago,
section
d
there
electrnnie
and
smaller'
such
as
the
sub-
with uut-wutw ui the CXone-third of mc
wxwi
total.
.
.,
.
Chicago's importance to the industry can be gauged by two figures.; During World War II, 35%
all
of
electronic
t
made
from a..dozen suppliers.
of
,
of
houses
meantime
owned
company
screen
additional
in
you
small
see
may
color sets offered for
as
low
$500. But it is questionable in
my mind whether the public will
buy small screen color in any
as
markets, which I discussed
Appraisal of TV and Appliance quantity so long as they already
; Markets
,
: have black and white.
I think
; Now I would like to give you a this is ^sneciaUv true because peoquick rundown on our long term pie will remember the miraculous
appraisal of the TV and appliance job the industry did in bringing
the price of 21 inch black and
markets.
01 innU
,
.
In the next three years
we
white
ex-
10
pect TV receiver sales for the in-
dustry
to
total
down
inch
to
sets
in
the
:
initial cost of
only three years
;■
20,000,000 time.
Sales of Major Appliances
6V2
Here is a.basis for
••
v,Although TV is more^)ectacu-
about
-
million
a year.
major electrical appliance^
*e
business-is an evejri. bigger indus-try. Last year, for example, J&e.
„tolal, value of majdr appliances
sold came tqvthree and a quarter
.billion
doilai-s. And yet most
ma-
derii^jd antdhf existing. And\ r^igemtbts,^hich*
but'' to
.
aro
in \90%- of elecifified* h
We also
iSr it> represents
a
very
-modest;
10-year
-buineS an3
^
'
f;
families.
standing -and plating,' Ouri
Galesburg Plant is a camnletei
unit for the production of refrig-b
erators, freezers ^nd ranged.
We
|iaveinvested $7% milUon in that
speak
tailed approximately one gnd a whicb^s gteadilw mcreasing. - - >
l
.
^
quarter billion dollars. The sale . T^
tele- ^ ^To illustrate the vixgip market
of Admiral products at retail haye visl0n.s future wmch few peoftip,.remainmg in other principal^ap-.^
approximated two billion dollars
to^consider. TV sets do wear .pliances,/let me .citr twp exam-
so that. the^^ advertising and pro-
plant alone.
It may not be the. motion expenditure s only 5% of
largest ulant of its kind- but we retail votane. '
believe it is the most mechanized
Admiral's
sales
are
handled
i-thtr
cs+av+Lri i
u..
t
' thmiifyh on
Hicfinhtitrtrc
major part of it.
,n
smqty b^ng m^e which tend t trifmd homes-has a freezer. JElecr- :
obsq'ete them. They are. aod vyiU tricranges have; been so^.tf only;
fes^ttos r^ct A?S
dios m this respect.
Adamral
Ev^ smce has .fhnncrht in busi- and
we started
through 9030.000 mdeDcndent
exclusive distributors^: '.a"*
^,wh en
Admiral
Case
tornae
m«
some
re-
•
pect that withm five years almost
TVreaches ;h al fmf - America's families will he
r.V.
«*«**• w xvxtrcixta o
;VAr/w
•
-
'
_,
In Point
■
cgted'in^aying'a spea^r
^
«
provide
Wh€n
Son
founded
.
ury
our
of
Chicago's
a
look at
opments. Then, to put them into/95% of ^erican families will
:pfoduction;'we made an invest- ; have TV just, as they now. have
ment 0f a quarter of a million radio,. At present 29,000.000 famdollars in tools fand equipment- V, ihes, have sets, leaving 14.Q0O,OOO
fourth basic I mentiohed ?tiU,t« Ijuy ipfpre 95% enrage
changers for rdtio "to sales.; For the
phonographs and do a vastampmatl period; Admiral - sales-.
am mouri
Corporation;
production of the smaller cirWe will jump directly
from the 15 inch' set we brought
out in January to the new 21 inch
size.
^
v
/ We believe there will be a luxany
cular tube.
0£ manhour^ on these
manufacture record
think,
re-
19 inch set.
With
this
development
just
ahead Admiral will not program
...
.
„
Production economies
.
for
I
.
anywhere from $1,050 to
^^ee^s^F^y
the
'
a
t
+
priced from
units—or-an average of some.
[Plastic ^components repre
very imnortant "cost "item
a
cmnn
Admiral
k-
19 inch
present
are
the new 21 inch color tube should
enable manufacturers to offer it
for less than the price of today's
earlier'
en-
Our laboratories spent thousands
nn
using the
color tube
build and hold a hard hitting'dis-"
*2^! of eiectrmea homes, r
in/relation to -over-all cost.
We thbutor-dealer ' organization. :
.manufacture in, tWo .very modern
-A total,of $100T
highspeed mechanized plants 50% .invested in-advwtasmg
of the wood TV' cabinets1 -We User imotingrthe ■ tfame* Admiral dnltfee^
v
■* sinal4^ '
^beTemaihing^^50% are:pinthasdd l^t i0 yearn. Hu^ as that^
r ThatWmSa '
Xtronk industry Ld I ^ Pr°Ud
y ^1
44miral is
*u-
Q
from
came
^bii for the ability
'
.
T
^ sent"
here.
figures,
_
see™
of all electronic equipment
in this country is produced
^fhose
,
at-
suiting from the smaller cabinet
and simpler circuitry required by
earlier,
This equipment was de-
signed and built by Admiral
more
costing
have
payments
You will see if you
maior
gineers.
in
f
am on the subject of
^-Would like -to. correct
a;v1^J^coA0eptiop, some company
pleople
to-have about pur
'^
Chicago industrial district.
Curr
gently it is estimated that 20 to
%5%
to
1944
.
production
the armed forces
chassis.
firm«'p
well-known
equipment, would add very sub.stantmly to our- better than half
billion
in
newest
equipment exceeded $28
Western Fleemanv
the
yoss Sinv ™tment
our
S a
"nr^iint7nn"/f '
activity^of
the
but
1953.
.
is
with
yefrs'from
the" Belmont hivifiinn:
°£
as
eauiooed
.
addition
such companies
trie
Dividend
distributing
.factured in 12 plants, comprising posed and soldered wiring in pre-r
a total of 2,000,000 square feet of vious sets.
. ..
caeo
is fo' fhp
't
*space'
As you can wel1 imagine r in the field of automation, we
know whether vou have dnnp this from our sales figures, we have have just started operating a batarithmetic yourself hut Xe ^ee- ' bee" steadily expanding plant ca- tery of machines into which electronic sales of iust three nublid -pacity .since World War II.
As trical components are automaticowned Chicago manufacture Tncf 5y0u
a*so deduce from the aly fed and from which we get a
year exceeded half a billion do?
completely assembled unit reprea
Dinion aoi- vrecency of our growth, Admiral's
>plants are also extremely modern
Tar<!
Thp
1 vT
lars.
The thrpp oAmnor,/
three companies whose plants are also extremely modern senting 30% of the finished TV
a
much
$1,150.
12th consecutive year
have
been
receivables
rw'
figures I have combined are Admind, and two of our very able
competitors, Motorola and Zenith.
and
appearance.
-
,
,,
a
market for the 21 inch set,
1953/Annual Reoort that as of especially
since
an
increasing
Dec. 31 we had current bank *bornumber of color programs are •
rowings of * $6,000,000.
This loan promised for the coming fall and <
is
to
finance government work winter season.
amf represents approximately 40%
Before- color -can be. sold to the
of our investment in inventories mass* market, however, the price
and
receivables
on
government for a large-screen set has to be 1
accoqnt.
Last year we made a. brought down to $500.
I would *
$15,000,000-term loan from a group hazard a guess that two and,prob-; •
of banks.
These funds have been ably three years will pass before
used to finance inventories and that
point is reached.
In the
■t
*y
rv
converlelvLSjS8?
In
Sets
rouncj
Nineteen fifty-
1934.
profits.
first application of printed circuits
to a television chassis and the use
Admiral's—we
fit into
short neck UwUmmwa
tractive
dividends
which
paid,
Research
Two current developments
the balance sheet
on
cost.
Electronics
its
not even
may
in
it will
neck
^ercosts
four is the
Admiral
foot
tire refrigerator industry has followe(d our lead.
»
Admiral's
TXUIXXXXcUS
.1
stantial
we
founded in
refrigerator
a
12
Dual Temp the liner has an area
of 1,200 square inches. The completed product weighs only seven
pounds but it is produced by a
stability bv far than a limited list
of corporate customers or even a
patent monopoly.
•
1
-
+
nr»,«r
fi,l
has
the largest TV prohave our own plant.
portant facts about our company.- sInstallation and a
We have earned a profit in year's service policy run an adevery year since the company wag jditional $150, making a package
of
presses
believe that possessing it, along of automation in television and
with production and sales know- radio production.
In our 1955
how gives a corporation greater TV line, which was introduced a
$5
some
on
and
eauip-
industries
In
development
and bigger molds.
For example, three years ago we
came out with the first one piece
non-consumer
preference
be carried
today
electronic
a
year, making it one of
the nation's largest manufacturing
ihni
the
establish
Although good will
billion
Tt
the
short
we are
where
ducer,
fruitfulness of our
in research over the
the
in
larger
brand enjoys the greatest security.
h
s u c
other
and
•compete in
the
years
th£m thg standard 17 inch biack
and whjte tube Because the tube
Although I knovy you
neered
Second, we believe that a
•company which
can
successfully
radio. In those
30
by^ independent wholesa era
^hey are supplied
In Canada,
and retailers,
from our U. o- plants.
have full
Our work in plastics is typical, financial data available to you, I
Admiral
has
consistently pion- would like to highlight a few im-
litems.
commercial
use
died
■
thbe and only
came
picture, which is 25% larger
the largest color tube now
available, a 19 inch circular tube
than
been
consecutive
because
our
growth has been financed by reinvested earnings.
All of our
massive ,die weighing five and plants were built out of earnings.
one-half tons. The press required The company's initial capital of
work
since
the
Korean
War in this operation is a 2,000 ton $3,500 has grown to a present net
monster standing 31/2 stories high, worth
started in 1950.
in excess of $54,000,000.
•f
Admiral concentrates on con¬ This development saved steel at All of this, except approximately
a
time when
steel was critical,' $2,000,000 which was provided by
sumer
products for two reasons.
First, we feel that in the long run and gave the consumer a more public equity financing 10 years
-they are more profitable than in¬ durable chip-proof product at no ago,, has come from plowed back
vacuum
electro nic
inch
Admiral's panding
of
years.
Twenty years isn't very long in freezers,
room
air conditioners
industries but in the elec- and dehumidifiers.
tronics
field
it
covers
roughly
You will note that we confine
two-thirds of the industry's life 'ourselves exclusively to consumer
products. The exception, of course,
span as a maJ
'is
military production.
During
jor commerc¬
World War II our production was
ial entity.
It
solely military and we have again
is less than 50
been very active in government
years since the
30 years
of
investment
some
o
cent
This part of our
and
plant space is occupied by
laboratories.
I could cite an almost endless number of lllustra-
30 years, reveals that production in
this field now totals some $5 billion per year, making it one
of nation's largest manufacturing industries. Cites progress
of Admiral Corporation as case in point, and makes a longterm appraisal of the TV and appliance markets." Holds both
have a tremendous bright future.
the
per
of
curtain.
business is ex-
Admiral exports to all parts
■,
the world outside the iron
■
total
tronics industry in past
invention
highly classified.
Almost four acres or seven
the rapid rise of elec¬
on
is
_
the size of Boston.
manufacture them and
work on military research,
Thursday, July 22, 1954
They will unquestionably obsolete
all previous color sets.
This new tube will provide an
unmasked full view 245 square
exclusively a million dollar capital is required
and better for a distributorship in a market
to
which
SIRAGUSA*
By ROSS D.
--
products
civilian
on
President, Admiral Corporation
in
10K Admiral was
1934 to manufacture-
mass
^n^ed'aSbsl^tes^A^ jgf
P pre- geles, San Francisco and Boston,^
the Seles^an^ran^isM^md^BostoT a
Tt are
market you must be
pared ^ to
^asics:
soend
heavilvi for
First' research
^
vour
product-
They account for approximately
40% of pur volume.
Tt
^ ^ ^
.
hit
,
^^^Wket tlfa7b'ack a r^labemMt for bbe oM^^box
created.
TV a?Qr
hi lion
has
dollar nhis
25
Q
,,
«n-
■
.
.
:
f
;
t ScSJv^U
0toertorld a^pltohc^^ ' v
ptner large, appliances.
'
in toe
rirfnVfrom M5?neoo
improvement; second, research on
Wherever po?siblfe we. prefer, to; a permanent part'of the American
^
in-1934 improvement in production meth-i operate through independent clis- SCene.
'
^
tne
.
: >r
tp $250 million m 1953. Our prod- Qds; third, tooling and I machines tributors. .In the large, highly.^- cqiorTV, about whichyou haye,
7?A may think I (am overly
U4s now include a complete line
pqt yOUr newest developments competitive markets, if is not al- heen hearing so n-uch fcr so long, buUish.on TV.and appliances.rBut .
ck'itelevisidn, .radios, radio-piiono- .into effectj gnd fourth,) advertis- ways, possible to do so,
however, Js'i-'stiE-.'tdd^h f'tbe' >jpad ^for-- the .even if you discount my. figures I
f^fphs, and household appliances ing and promotion.
• It •'
; . because the television and appli- ^nass buyer. However, very sub- think yoq wili agree. that .both .
ipsisting pf refrigerators, ranges, J We have done-all of these things ance industries, have grown;so big ^tantial progress^^/Jias;;been -made
.
.
-
.
...
.
(310)
,
I..
,
"
"
'
.
,
-
consistently and extensively over that wholesale distribution in mathe iast year and bv.Christmas ,-them. .
- ,
^
.
Se -yearsJ Admiral maintai
the years? AtoirliKmaimajns Ta jQr'markets
is,_no, lodger,a^^kst^olSetiwii^ a*^l^ci .t :Ivh^e-been usi^
research staff of 700 engineers and business operation.
Forexample, scteen willrbe on the iparket. heady figures-on vthe electronics.
_
Cf 3<>, Chicago, Ill. July 14, 19S4.
http://fraser.stlouisfed.org/
/
Federal Reserve Bank of St. Louis
„
f.
.
■
-
-
Volume 180
and
Number 5344
The Commercial and Financial Chronicle
...
appliance industries and you
probably asking yourselves,
»are
the
30,000,000 TV sets in
are
Admirals.*
business this
Our
will
year
the
of
In short
ahead
run
i
ratio.
In evaluating these
figures remember that there are
approximately
producing TV
ures
we
95
sets.
The best fig¬
indicate
radio,
make
we
table, portable, and
At
full line of
a
clock
radios.
today's prices radios are
an impulse purchase.
prac¬
tically
For
the last several
years the big sell¬
ers have been
portables and
clock
models.
music,
So
long as people love
long as they are inter¬
so
ested
in
and
news,
so
long
housewives busy with their
as
work
wish to listen to
soap operas, there
will be a substantial
radio busi¬
ness.
Admiral
has
producer
of
War
II.
A
largest
since
year
before
ago
console
judged by
its
of
line
was
manv critics as the best
kind.
For
our
1955
new
have produced three HiFi models for the
mass market—
a
we
portable,
table
a
America
in
the
point
is
world
of
sources
and
greater
model
serves
and
that
A
is
of
becomes
company
in
stock
part
and these incorporated busi¬
are
owned and controlled
by millions of individuals.
1
nesses
Every person interested in in¬
vesting in stocks and bonds should
know
any
of
owner
richest
richest
—
from
the
We
abil¬
capacity
America
genius
to
machines
rials
to
for
obtain
has
the
the
in¬
ness
are
financial
accidents,
few
a
security.
sick¬
and
these
of
stock
factors.
precedes
One should prepare to meet life's
by
when
vestments.
American
common
emergencies
good
A
people
have
which
count
investor
a
These cash
when
serves,
cally
great
savings and in¬
great number of
surplus
incomes
—
provide
rity.
country's
of
in
of
means
securities,
with
profits
than
provide
the
returns
periodi¬
cash
the
the
A
dividends
is
greater
stock
is
less
Wh^
♦Mr. Juarez
is
wouldn't
winner in
bondholder
The
is
by the Arizona
Dealers, which
furnished him with an all-expense
paid
trip to New York and, Chicago.
income
enabling one's
to
earn
We
can
Share
more
in
that-
see
buying
American
an
by
in
their
meeting
with
vestment in
of
serves
for
industry
building
Fi
instruments,
with
pensive hobby for
of music
future needs.
1-
With h. l. Robbins
WORCESTER,
Freeman
bins
He
a
industry
popular
mass
offer to sell
an
The
Hi-Fi,
&
was
is
now
Mass.
with
an
nor a solicitation of an offer to buy
offer is made only by the Prospectus.
product.
had to start
slowly because
the
of
General Motors Acceptance Corporation
steel
shortage and because we had
to build production
facilities. Now,
however,
35% of
appliances
; Admiral's share of
erator
business has
IV2%
in
for
account
civilian sales.
our
1948
to
the
6%
\
refrig¬
risen
Dated July 15, 195J/.
r.
develoned and introduced with
line
new
in
January has
records.
Sales
conditioners win
ble
of
-
Interest
Due
July 15, 1964
'
-
-
^
f
*
r,
.'■*
1
;
*Due July 15, 1969
air
than dou¬
more
our sales last year.
!IT1 close by giving you our
praisal of Admiral's outlook
1954.
ment
The
correction,
whatever
or
ao-
PRICES
for
readjustchoose to
you
Ten-Year Debentures 99%* *'
call it that American business^has
been
Fifteen-Year Debentures 100Vs%*
r
undergoing
TV
began for the
appliance'.industries 12
and
.
months
>
■
payable January 15 and July 15 in New York City
they set
rooijn
v
1
*
July 15, 1954
running neck and
neck with last
year when
new
j
.
$75,000,000 Fifteen- Year 3 % Debentures Due 1969
Dated
fast enough-to keep up with or|L tiers. .• Our sales of electric ranges
/
are
•;
re¬
ceived tremendous
acceptance. We
have not been able to make them
and freezers
•
-■
$75,000,000 Ten- Year 2 % % Debentures Due 1964
revolutionary "up-sFe down"
refrigerator-freezer
combination
we
debentures
from
currently.
The
our
of these Debentures.
$150,000,000
entered the appliance
business after World War II.
We
ago.
.
The
.
signs
b
in
our
,
.V.".
*And Accrued Interest:.,t
.
business strongly indicate that it
has
its course, and
run
V that*the
drop
believe
we
'
/.
in our vsales "iand
earnings is *behind~us.
1
We are budgeting both salesm^d
earnings for the second half.ntjhe
of
the
second
"On; this basis
.1954
will
our
come
half
of
1953.
15%
-
-
'
•;
■
.
.
.
•
-
■
•
•
"
be obtained from only such of the Undersignedas may legally offer '
these Debentures in compliance with the securities laws
of the respective States-. ••
V:vr' '7'"" ■
J'.
•"
"
:.
*
may
-
-
..
-1
sales for all of
within
•
Copies of the Prospectus
^
lev£l
■'
■ '
;
;
>
V
f'
,
r/
'
'r
.»»»*•
*
■
'
».•
*
of
equallingrthe $250,000,000 1953 to¬
tal.
Earnings should be - within
-20% of last,year's ;$8,250,000 fig-;
Stice.
•
•a
*
,
>
•
*
•
MORGAN STANLEY & CO.
'
.f
„
.
„
*
r
:
r
•"
-
"
—
•
i
To Crerie in Houston
t
THE FIRST BOSTON CORPORATION
DREXEL & CO.
TGLORE, FORGAN & CO.
•
'
•
j
f
f
the installation
of, a direct wire
to Crerie &. Co., Houston, Texas.*
-
,
j
Gearhart & Otis, Inc., 74 Trinity
Place,. New York City, announce
.
t
" *
t
.?Walston Adds
-*■
;
f
.
Charles
D.
Brooks
KIDDER, PEABODY & CO.
i ^jgxftbange,
as a
i ^seotetive in the
-
*
New
to
Staff
has
LAZARDl FRERES & CO.
LEHMAN BROTHERS
...
■
MERRILL LYNCH, PIERCE, FENNER & BEANE
SALOMON BROS. & HUTZLER
SMITH, BARNEY & CO.
STONE'& WEBSTER SECURITIES CORPORATION
become
York
registered
UNION SECURITIES CORPORATION
Stock
irepre-
company's office
Street, New York City.
Incorporatei
*
associated with Walston and Com-
"pany,/ip&mbei"y
;
HARRIMAN RIPLEY & CO.
^
i
">
:
EASTMAN, DILLON & CO.
GOLDMAN, SACHS & CO.
i
.
^
'?
KVIIN, LOEB & CO.
.
BLYTH & CO., INC.
Gearharl Glis Wire
?
DILLON, READ & CO. INC.
July 21, 1954'
'
-;^'V
•
^
Henry
L.
Rob-
formerly with Bonney &
ex¬
Admiral
;!
Co., Inc., 40 Pearl Street.
Moor, Inc.
any
—
H.
its way as a
on
re¬
*
(Special to The Financial Chronicle) ' i-
small number
a
lovers, is
This announcement is neither
as
excellent
income
a
total range
a
from 3,000 to 15,000
cycles.
whjch until now has been
them
an
consolette.
They are priced from
$100 to $150.
These are true Hi-
often
enterprises
demands, the organiza¬
kept working harmoni¬
are
means
to pay him a stated amount of in¬
surplus
realize
stockholders will always make in¬
promises
terest each year and also promises
to pay back the amount borrowed
at the end of some specified time.
is the best way of
.
they
The cooperative efforts of
directors of industry and the
outside
an
company
original investment.
Investment in stocks and bonds
contest conducted
Association
of
Security
all
presented
the
and
help to increase the
essay
that
led
stable.
often
the Statewide
is
on
ously.
the
of
of the
a
and
occasion
tions
and
which
want
problems
stake
a
and
in
risk
today
who-look
men
the
them
have
dividends
The
of
employees
stockholder
common
more
creditor.
fixed
not
business
their responsibilities to the stock¬
holders.
Their
is making large,
preferred.
preferred
re¬
or
stock
company
receive
may
secu¬
resources
invested
a
stock
comruon
value
wealth.
to
receiving dividends, but its rate
is usually low and remains un¬
changed.
The dividend rate on
well-organized enterprises.
The
large number of industries and
the goods which they produce ac¬
our
problem
sides
one can
buy may be divided into
preferred and common. Preferred
Depression,
genius of organization has devel¬
oped
industries
into
efficient,
for
the
foundation for
mate¬
raw
that
meeting life's risks is a great one.
are many factors that
can
easily
destroy
life's
necessary
fac¬
greatest
The
know
There
than
develop
and
mankind.
great American in¬
our
that
by efficient
enterprise. He shares in the
profits of the business and is usu¬
ally entitled to vote in the com¬
pany's affairs. The stocks which
dustry?
re¬
American's
industrial
ventive
in
productive
of
the
share
country
wise thing to do and
be like having
a
a
would
try
dividends for the in-
purchaser
it
share of our great country.
In¬
corporated businesses. have done
a great deal to
develop our coun¬
bonds, industry will
expand. In this way the
invested
also earning
investor.
grow
them with discerning
No other nation has
America.
tories,
the
view
ity to use
judgment.
very
that
unit
a
would be
the
World
entered
we
high fidelity field with
expensive
•
the
radio-phonograph
combinations
the
been
for society.
invested
in
working for
society by making it possible to
have more products on the mar¬
ket at lower prices. The capital is
that
Admiral holds the
top sales posi¬
tion in the
industry.
In
capital
two main purposes: viz:
(1) it en¬
and expand, thus working for the benefit
a whole; and (2) it provides income and increase
in capital values for the investor.
industry to
of society as
manufacturers
obtain
can
ables
capital
and
grow and
Mr. Juarez points out investment in
young
stocks and bonds
of that
-
essay,
work
to
the
stocks
Senior, Williams High School, Williams, Arizona
service
share
With
By ANTONIO JUAREZ*
than three million of
more
and
money
"A Share in America"
"What is Admiral's position in all
of this?"
Here it is in a nutshell.
Today
(311)' 7
WHITE, WELD & CO.
-
$
(312)
Machinery is on order and
should be capable of producing
about 8,000 pounds of nylon pow¬
der per day. Mars Metal estimates
that its investment in connection
pound.
39 Broadway,
Snap-on-Tools Corporation
Dealer-Broker Investment
Office Square, Boston
—
Report
Lerner & Co., 10 Post
—
9, Mass.
Corp.—Report—Loewi & Co., 225
Texas Eastern Transmission
Milwaukee 2, Wis.
East Mason Street,
with
Recommendations & Literature
-
»
Continued
pleased
parties the following literature:
send interested
to
from
v
2
page
v
*
IFl*A
a«
II-
1 tie secnntv 1 LiKe Best
Resources—Booklet
on
natural
of
resources
served
area
Automation—Analysis—Bache
York
5, N. Y.
J
■■■'r
;
•.
;
Co.,-36
&
"
New
Street,
Wall
-
•
Bond Market—Bulletin—New York Hanseatic Corporation,
120
Broadway, New York 5(, N. Y.
Engineering Services—Illustrated booklet describing services
of the Engineering Division—Foster D. Snell, Inc., 29 West
15th
Street, New York 11, N. Y.
Investments
Foreign
rent
ties
in
the
Market—In
Stock
Japanese
cur¬
rities
Japan—Circular—Yamaichi Secu¬
the
^relation of the stock mar¬
ket to various basic economic indices—National Securities &
Research
with improvements, Phelps Dodge and others
sometimes ents, together
Corporation, 120 Broadway, New York 5, N. Y.
50%.
is
example
An
mills
the
of
approved by Under¬
and U. S.
and has been
Laboratories
writers
the
repurchase
to
an
on
a
such metal it has been the custom
Japanese Corporate Earnings for fiscal half-year ended March
31, 1954—In current issue of Monthly Stock Digest—Nomura
Securities
Co., Ltd., 1-chome, Nihonbashi-Tori, Chuo-ku,
scrap
from their customers
through an agency which has fa¬
Testing Laboratories.
Tokyo, Japan—61 Broadway, New York 6, N. Y.
cilities
ket
"Let Robot Do It"—Circular
Co., 74 Trinity Place, New York 6, N. Y.
New
City
York
Stocks—June
Bank
30th quarterly analysis—
counties,
J.
towns—R.
cities and
tinued
the
up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
yield and market performance over a 13-year period —
National
Quotation Bureau, Inc., 46 Front Street, New
booklet—Thomas, Haab &
(No. 168)—Smith, Barney & Co.,
Street, New York 5, N. Y.
been
sue
York
5, N. Y.
Monsonite
in
Also
Corporation
the
and
same
a
is
portfolio
of
East
42nd
Street,
York
New
17, N. Y.
Pitney
"Laggard
Watch
Company—Data—Abraham
Co., 220
Also available are
&
Co.,
!
vere
Palmolive
Company,
Filtrol
of
acres
the-
Broad-
land
J. Lewis, former Execu¬
tive Vice-President of Paper Mate
Pen
Analysis
are data on
Corporation, and Re-
tains
of
in
about
foot
of
Los
the
offices
Railroad
Angeles.
site
In
con¬
of approxi¬
feet with
smelting opera¬
tions and storage, and is equipped
—
with
.
Canadian Industries, Ltd.—Analysis—Dominion Securities Cor¬
r
poration, 40 Exchange Place, New York 5, N. Y.
15,000
square
smelting
u
,
kettles,
,
.
,
.
furnaces,
....
,
baling machines, fork lifts, trucks,.
etcetera.
v
Corroon & Reynolds—Analysis—Dreyfus & Coi} 50 Broadway,
New York 4, N. Y.
;
Mueller
Brass
Co.—Bulletin—Gartley
William Street, New York 5, N. Y.
&
Associates,
& Co
*'
Inc.,
68
Corporation—Analysis—Van Alstyne, Noel
Co., 52 Wall Street, New York 5, N. Y.
Pan American
Sulphur
Street, New York
5,
Analysis — Walston & Co., 35 Wall
N.r Y. Also available is a leaflet on
—
<
-CJoj—Memorandum—Eastman, Dillon & Co.,
Street, New York 5, N. Y.
reputation
been established
an ^
advantage
which
has
gives Mars Metal,
competitors.
over
the management 'has
recently making concrete
for
expansion
and
has
been
plans
looked
for
,
Street
new
which
industries
offer greater promise
able
15 Broad
>
Resistoflex—Analysis—Stieglitz & Co., 40 Wall
York
The
year.
returns,
Central Illinois Electric & Gas.
Pittston
and butter" business which returns
a
definite profit
from year to
Howe ver,
National Aluminate
&
is the "bread
corporation
Companies—Information—Oppenheimer
Houston Oil Comnany «f Texa«—Analysis—W. A. Fine
1 Wall Street, New York 5, N. Y.
5, N. Y.
in
think you will find food for
and
for
searching
time
with
has
of lucrative
spent consider¬
on
our
new
circular
on
automation
titled
stock.
tive but before any
dividends may
type of permanent
new
a
or
fuse on which
outlets
could be kept at a
minimum. This,
without curtailing the scrap metal
Member
lot
at
per
share and accrued
patent has been granted. tion of outstanding shares of class
by breaking the circuit A stock, after which the A and
without burning or melting con,
S.
U.
.
...
.
,
be
for testing by
submitted
Laboratories
million dollar
Unand
derwriters
should
a
household
first
was
„
issued
....
are
light.
or
^he field of airplanes,
and
Pull-
electric precision instruments, automobiles, and number—
man cars,
the
tmder
stock
A
Class
July 8, 1953, at $1.50 per Share,
required and is traded over the counter,
used for It ^ ^id the full 10% dividend
Potential market
,
;u. „-T:
-
use,
is military as well as civilian
covers
earnings!.
electricity ,is
wherever
power
share for share equally in any
dividends
declared
out of J net
mar-
Quantities of fuses, in addition
ket.
to
add
stock shall partic p te
common
nections, may be re-set by merely
of 15c for the year. Although the
whole set-up is speculative so far
as
general plans are concerned,
au
pornoration
.
earning
"is
C0rp0^n
than enough to p^y
more
dividends on
"direct ownership el
but could be easily- class
A from the secondary -metal
handled by the sales organization business, even rafter quite large
0f Safety Electric Corp. wkh lit- PXDenditures
exploring and actie added expense.
i
' *
«xP9na
*
.
,
'j
" qumng the mew industries men•<
Plastics
1
,
tioned above. The need of paying
Mars Metal has a majority con- the high dividend should be con¬
Mars
Metal
.
trol of Alpha
Plastic Corp., which
manufacture,
formed to
has been
^uCjve
.-r
to calling
.*
the stock as soon
.
_
•
nylon powder, aspossipie.
out of waste products. The powder
■. is used for injection and compres- r;
by a new process,
is
mo]ding. Nylon raw material
now
selling
We
'
.
»„. ]
•
offer
ME.Sk
pound. Alpha expects to pro-
per
•---•■
-
for $1.50 to $1.65
■
1-
uranium
DEPENDABLE MARKETS
corporation
*
COfAMON
N.A.S.D.
P,ite
Broker and Dealer
"Let Robot Do It"
$3
dividends to the date of redemp¬
This fuse,
'greaterpotential, where the : ;
of
venture
capital
llomuta Securities
(Co., £td.
thought
share plus one share of
It is non-cumula¬
per
^ar\ a^9u^
circuit-breaker
-
We
$3
common
Mars Metal has acquired an op¬
tion
investment
New
The class A stock is redeemable
at
$100,000 to launch the production
and promotion of the socket pro¬
;The secondary metal activities less other fields. This will remain
of the
.
] & Co., 25 Broad Street, New York 4, N. Y.
It
outside the
pressing a small button built into
track to the head of the fuse. This will
steel building
a
mately
Hill Richards & Co.,
621 South. Spring Street, Los Angeles 14, Calif.
L G. Far ben Successor
President.
the
is
Co.,
should n<?*
covered space for
—
Socket.
Safety
the
of
George
as
spur
a
from
to
the
at
Pacific
Southern
line
located
owns
just
Avenue,
addition
Copper & Brass, Inc.
Burton Manufacturing Co.
and
city limits, with
j way, New York 5, N. Y. In the same circular
Colgate
period
a
is
corporation
main
120
over
Francisco
Tunnel
&
; data on Glen Alden and Joy Manufacturing Co.
Bulova
to handle the manufacture, sales stock is being registered with the
and further develop¬ SEC.
a
two
Thomsen,
effect
in
San
Stocks."
Blaw-Knox—Bulletin—Mellott,
Corporation acts
per
of $168,149
loan
promotion
ments
fabricator.
or
Metal
The
analysis
an
formed, The Safety Electric Corp.,
and have obviously proved
satisfactory to both parties.
Co., 1 Wall Street,
issue
tance.
as
years
Company—Analysis in current is¬
of "Gleanings"—Francis I. du Pont &
New
of
Ohio Railroad
well
as
month, a bank
which is part of
a
revolving
credit;
authorized
common
stock,
3,000,000 shares
10c par, issued
1,621,500 shares;
class A participating preference
stock (the stock mentioned herein) authorized 200,000 shares 10c
par, issued 199,000 shares. An additional 120,000 shares of class A
of about $900
be paid on the common stock the
first net earnings each year are to
Brass
and
Copper
Co., Scovill
be applied to t^e payment of divi¬
Brass
Co., American Brass Co.,
gram.
Mars Metal Corp. owns a dends upon the outstanding A
Bridgeport Brass Co., Revere Cop¬
controlling interest in The Safety stock until an aggregate of 15c
per and Brass Co., Mueller Brass
Electric
Corp.
through an ex¬ per share for each year has been
Co., Western Brass Co. (a sub¬
change of stock.
paid.
Thereafter the balance of
sidiary of Western Cartridge Co.),
net earnings up to $60,000 must
and also Aluminum Company of
Permanent Fuse
be applied to the redemption by
America.
These
contracts
Pave
Earnings—Bulletin
Baltimore &
times
where
the element of
is of paramount imporA
subsidiary
has
been
safety
representative for acquiring sec¬
ondary non-ferrous metals for a
number of mills including Chase
Botts, 50 Broadway, New York 4, N. Y.
14 Wall
customer
Mars
4, N. Y.
Railroad
bad
mar¬
patent owners in Christmas Tree
This business has con¬
in
the
small scale by the former
on a
Lights,
practice aids the mills and when
metal is in good supply it aids
Ed¬
Over-the-Counter Index—Folder showing an
York
up
When metal is scarce this
good.
wards, Inc., Globe Life Building, Oklahoma City 2, Okla.
Put and Call Options—Explanatory
picking
mills.
the
Laird, Bissell & Meeds, 120 Broadway, New York 5, N. Y.
Oklahoma—Survey of
for
The socket
introduced in
been
has
the metal
by carload lots and grading and
classifying it before reselling it to
automation—Troster, Singer &
on
obviat-
electric light socket of a ing the need for direct investment
manufacturer of brass door knobs, completely revolutionary nature, on the part of Mars Metaal.
After the required round discs are the main feature being that it is
The present capital structure of
cut from the sheet of brass, the completely shockproof, waterproof Mars Metal Corp. shows a mortframe is left which can be used
and fireproof.
It is molded of gage on real estate of $48,112.80,
only as scrap. To avoid re-torting plastic and has no metal parts, which is being retired at the rate
Co., Ltd., Ill Broadway, New York 7, N. Y.
Is The Market High?—Study of
v
metaf which
exceeds
Japan.
Investment Opportunities in
from a U. S. Government
recover
diverse
original
Co., Ltd., 4, 1-chome, Marunounchi, Chiyoda-ku, Tokyo,
offer to the
an
development of this country and activities. * In line with earlier owned slag-pile in Texas
also due to partial depletion of demonstrated
processes which minerals. -The pile consists of'ore
natural : resources,
the
United have proved satisfactory, arrange- imported by 4he government in
States has become an importer of ments are
being made to ha«e war-time for; extracting tin. The «
Mars is of the
these metals and hence the re¬ substantial companies take on and management of
finance
the
manufacturing and opinion that recoverable minerals
covery of such secondary metals
may have a value of over $6 mil¬
has
become increasingly impor¬ distribution of the new items.
lion.
This is a field in which
tant. The waste material industry
Safety Socket
Mars Metal is experienced. Simi¬
is now over a $1 billion industry.
As a result of the search, by lar projects have been handled in
Upon fabrication by customers
using various kinds of metal, there qualified experts, Mars Metal has the past on a joint venture basis
is left over a large quantity of the acquired five United States pat- with large metal firms such as
^
"Weekly Stock Bulletin"—The Nikko Securi¬
of
issue
-
.
.
7s by the Uthh Power & Light Co.—Dept. M., Utah Power &*
LightCo.,P.O. Box 899, Salt Lake City 10, Utah. *
made
has
U. S. Government to buy, subject
■*/-to a
°f 8%>
***
|>n nl
f f H,ft
,
will not
Interests
Additional
Possible
•
program
$100,000. ;
Mars
->
Are*
the above
exceed
understood that the firms mentioned will be
It is
40c to 50c per
duee it at a cost of
Corporation—Analysis—Filor, "Billiard & Smyth,
New York 6, N. Y. . •
1
01" Smith
A.
STOCK
15 Cents per
Shore
Material and Consultation
,
:
on
HA
2-
2400
Members:
74
N.
Y.
Security Dealers Association
Trinity Place, New York 6, N. Y.
ITEUIER
I
lerssvW*2'
Japanese Stocks and Bonds
Troster, Singer & Co.
without
NY
1.
376
61
obligation
/
_
Broadway, New York 6, N. Y.
Tel.:
BOwling Green 9-0187
Head
Office
Tokyo
I
DEMPSEY-TEGELER & CD.
.
•
Volume 180
Number 5344... The Commercial and Financial Chronicle
(313)
conditioners within the immediate
c
Air-Conditioning Needs Only Sales
industry that we want. to
bring to your attention today. We
are.
•
•
•
By GEORGE S. JONES, JR.*
Managing Director,
We
Washington, D. C.
x
reveals
'
rapid growth of air conditioning,
universal desire for physical comfort
a
Sees further expansion, depending largely
5
air
conditioning
with
while there
aid toward
tioned
think
train,
their first
in
meal
an
air-condi¬
it
direct
in
ber
of
proportion to the
that
first
country
air-con-
an
ditioned
theatre,
their
purchase
first
at
air-con-
an
ditioned
de-
partment
store,
S.
and
their
Jr.
Jones,
first
night's
In
air-conditioned hotel
an
Yet,
today,
competition
consumer's
dollar
business
$1V2
in
of
these
trial
of
longer
no
the
created
a
and
indus-
air-conditioning
are
facilities
and
has
room,
for
billion annually
commercial
phases
and
sleep
buildings
new
this
of
type
built
without
ing
including air-conditionregularly as they include
as
heating.
As
dramatic
and
this segment
as
ing is, it
the
xne
of
or
is
of air-condition-
the
air-conditioning
that
tnat
homp
nome
important
as
ic
is
even
even
more
more
the
centrally heated in
are
least,
would
the
indicative of the peo¬
ples' desire to be comfortable.
Just about 50 years ago, 1902 to
be exact, Willis Carrier used the
refrigeration cycle to control the
humidity in
right
lithographic plant
a
here in Brooklyn and
over
accepted as the
beginning of the air-conditioning
industry in this country.
Just
this
usually
is
to catch
up with the number of buildings
that are heated in the United
how long it will take
States
know
not
do
I
us
like
with
tastic
In
almost
of
this
will be realized depends on several things; it depends on further
refinements and lower costs in
order to bring the products down
within the purchasing power of
the lower income brackets but
equal, if not greater imporhince if depends upon our ability
to tell the full and complete story
air-conditioning
°f Just what
J
air-conditioners
in
this
air-eondi-
it
fact
times
That
the
is
number
before 1953.
1954
of
95%
Some
We
many
there
more
as
were
air-
room
conditioners than in the
same
pe¬
installed
were
in
this country approximately 55,000
station
central
tioning
type of air-condi-
units
completely airnearly
to
condition homes. This is up
four
times
show
records
000.
facturers'
our
approximately 15,interest
Public
when
1952
over
and
confidence
is evidenced by
for 1954 of the
in
manu¬
this
area
the fact that sales
so-called
central
type of residential air-conditioh-
should
units
ing
should
and
exceed
amount
to
100,000
approxi¬
mately 125,000 units. The people
who are investing their money
their future
and
ditioning
five
some
the
will
an
be
homes
of
of
these
the
in
air-con¬
industry estimate
years from now,
haps by
that
per-
year of 1958, there
annual
sale to
the
this country
complete
of 700,000
air-condition¬
ing units.
sales
fact
°n
production manager and the
man on the
assembly line to get
lowered
the
tinued
they
and
of
tfye
reasons
growth,
is that the weather is
I
a
for
am
again to American industry.
perpetual
siibject of conversation. Physical
is of prime importance
all
—77~
mankind.
JJf
.
'
For
.
centuries
promotion
years
the distribution side of our
omy
ing those
many years
that sales
the
management and all of
our distirbumust play in this rela¬
industry.
components of
tion system
tively
It
of the important part
aware
more
Executive
have I been
new
would
be
unfair
to
that
say
inade¬
quate job in selling the idea of
air-conditioning.
But
the
fact
our
industry has done
remains that
an
have stressed the
we
luxury-comfort features. This
njay not be unsound m the ^initial
Club,
New
know
There
sales
Need
but to
product
...
air-conditioning
from
—
pollen
and
dust
.umca
fumes
man-made
it
as
auu
and
protects
and from
dirt,
um
soot
IIid" " due AUXIlca dUU " i
and odors ... a more aggressive
~
nointine out the savings bv
avoiding
av01dmg
jjj
health
by
neaitn, oy
reducing
Joins Sutro Staff
problems
the
W.
with
Calif.—Edwin
ANGELES,
has become
Durand
Sutro
Co., Van Nuys
was formerly with
He
Building,
affiliated
&
Standard
Investment
Co.
face.
must
W. 0. Kurtz, Jr. V.-P.
how
of
good
of Am. Bank & Trust
the
CHICAGO,, 111. —William -O,
Kurtz, Jr., has been appointed
cilities, we need above all else an
integrity of purpose and ability to
Vice-President.
tell
been
the
story
correct
and
tion
need
.and
complete
to the atten¬
to bring
the
of
many
buying
public
benefits of this product. We
cooperation with and from
utility companies who
facing a tremendous job in
plying
ices.
We
along
with
in
the
to
see
We
electrical
adequate
need
all
sale
and
of the American way of
our
dem¬
supplied
provide
having those wants
for
by
product
the
which
have to offer.
we
Executive
bank
for
offer to sell
or a
solicitation of
Opened in Hartford
HARTFORD, Conn.—American
Securities
Corporation
has
an¬
nounced
the
at 75 Pearl
Wattles
Mr.
more
rities
in
opening of
than
35
who
years
business,
and
was
in
has. spent
in the
joined
earlier
Securities
lived
an
this
Hartford
year.
since
offer to buy these securities.
York
York
City-
;
Power
Company of Baltimore
and facilities and many new-com¬
this
particular industry
brought with them a fresh¬
ness
and a vigor in the applica¬
tion of the techniques that they
First
have
learned
from
manufacturers and
Series Z 3%, due July 15, 1989
successful
We
Dated
to
point out that practically
city in the United States of
any
consequence
has carried a
special section on air-conditioning
in
their
local
newspapers
this
Price 100.65% and accrued interest
National magazines have
spring.
carried article after article
technical
benefits
problems
in
and
that
and
answers
on
on
to
the
the
who
10%
doing
which
any
by
although there
are
our
of
survey
Prospectus
a
is
more
the
first
may
be obtained in
any
State in which this announcement is circulatedfrom only such
of the undersigned and other dealers as may lawfully offer these securities in such
are
this industry,
that
The
ques¬
being asked more
and more every day. Perhaps that
is the interesting thing from a
sales manager's standpoint about
our
industry, there are no companies who dominate completely
some
July 15,1954
would
every
tions
Refunding Mortgage Sinking Fund Bonds
distributors of
durables.
consumer
like
the
than
L. F. ROTHSCHILD &
CO.
INCORPORATED
SCHOELLKOPF, HUTTON & POMEROY, INC.
planing in any seg¬
industry. A recent
national magazine at-
GREGORY A SON
HIRSCH &. CO.
SHEARSON, HAM MILL A. CO.
BAXTER, WILLIAMS & CO.
R. L. DAY & CO.
YORK HANSEATIC CORPORATION
ferred by more than 5.4%.
Incidentally this, same survey concentrating on southern markets
THE
ILLINOIS COMPANY
sur-
yeyed own conditioners today and
WOUld
buy
air-
STROUD & COMPANY
INCORPORATED
NEW
they
WEEDEN A. CO.
ob¬
for room air-conditioners
and found that no brand was pre-
saiCl
DICK & MERLE-SMITH
BLAIR, ROLLINS & CO.
BEAR, STEARNS &, CO.
erence
145%
State,
HALSEY, STUART & CO. INC.
are
WM. E. POLLOCK &, CO.,
July 21,1954.
IRA HAUPT A CO.
BACHE & CO.
JOHNSTON, LEMON & CO.
INC.
He
1924
formerly with Coffin &
Consolidated Gas Electric Light and
to
secu¬
American
offering is made only by the Prospectus,
$40,000,000
office
charge.
Wattles,
has
an
Street, with Elisha C.
'
tried
many
American Sees. Branch
Burr, Incorporated.
g
an
has
Kurtz
\
life which
create wants and to
facilities
Com¬
years.
wired.
words to
Mr.
the
all kinds
adequately
in other
of
that unique phenomenon
onstrate
is to
effort
engaged
homes
our
are
Trust
Straus,
E.
with
sup¬
installation
appliances of
that
need
those
Robert
by
and
Bank
of Chicago it was announced
pany
are
serv¬
united
a
of
and
of : the- American
Vice-President
the
the
Th/'s announcement is not
or
of
California.
National
buildings
...
A.
associ¬
Palmer, Pollacchi & Co.,
is, it must be properly
We need adequate in¬
stallation facilities, we need ade¬
quate and perhianent service fa¬
ing to the public the real story of
air-conditioning
the story of
health
of efficiency
of the
down-to-earth utilitarian value of
.
ca¬
applied.
electrical
.
is
product
job must be done in carry¬
.
Harry
(Special to The Financial Chronicle)
Companies
Regardless
better
much
a
—
become
84 State Street.
Cooperation of Electric
of
market
country
other
are
the
new
this
manager
stages
mass
Mass.
has
pable of doing.
reach
a
ated with
LOS
say
utives
econ¬
and certainly at no time dur¬
Palmer, Pollacchi
to The Financial Chronicle)
BOSTON,
Stathopoulos
air-conditioning.
being unfair
that much of our growth
today has been without that kind
of selling that we as sales exec¬
I have been engaged in
industry have employed
and true techniques
their
found that 15% of the people
x
Conditioning Meeting" oTtheVw
Sales
of
I do not think I'm
For
40
this tempted to establish brand prefsure,
comfort
to
facts
time
time
contributed
have
(Special
the way from the top to the bot¬
tom with the knowledge and the
con¬
that
^ls^ed among the blue chips of
American
ments
,
One
the
and
costs
improvements
Joins
..
jective of
Reasons for Phenomenal Growth
phenomenal
on
the
have
there
1953
scientists,
on
W.
industry becomes saturated all
our
to
««.
Everett
not bringing to you any
outstanding
ers
riod of 1953.
In
depend
can
we
today.
accepted
are
—
Selling Jobs
Outstanding
are
woutld rather prefer to put stress
matter
industry is still growing is
evidenced by the fact that in the
quarter
that
sure
told.
in all of the
as
a
of our
produced
am
the engineers and
lives, and how and when
and where can that story be best
That this phase
have been produced
first
I
realize
to
Mass.
our
selllP& techniques, although some
outstanding jobs have been done
by i n d i v i d u a 1 companies. We
as
almost
is
in this industry.
on
and
BOSTON,
manufac¬
country.
three
produced in 1952 and
years
rapidly
1,125,000
were
tured
of
is,
successful
be
and
—
will air-conditioning be
that tomorrow when
so
accepted
The
there
room
almost
fan-
industry.
1953
cer-
important. We
the
you
potentials
growing
but
tainly that is the measure of our
potential. How soon this potential
wnat ao we mean Dy air conai
turning, what are its benefits, how
to tell you some of does
effect> and .how 1S jt ef"
for this and to ex- Tected by, the various segments
even more
reasons
plore
this
are
dramatic and I think, at this time
at
num-.
homes.
homes
heated
25,000,000
centrally
Certainly
to
I
to say that the
standard of living is pretty much
rant, their
visit
and
zone
proper
tioned restau-
Ceo.
comfort
the
remain
to
are
today,
•<*
Wheelwright, Jr., is now affiliated
with, Paine, Webber, Jackson &
Curtis, 24 Federal Street.
got along without
these things
as
'
,
everyday lives
our
even
teen-agers
our
in¬
our
as
We
Just
is concerned, there are
problems that must be solved by
the individual companies if they
Air-conditioning, that is sum-:, man moved across the face of the
mer-comfort-cooling, is so new earth somewhat in proportion to
that everybody in the room can his ability to keep himself warm
.remember their first ride in an
when
the temperature
dropped
below
far
as
'
automobiles which is difficult for
clouds
no
water
gas
heating. They
accepted requirements—if not*
now.
dustry
widespread air-conditioning.
air-condi-
the horizon
on
to be
seems
running
necessities—in
like to emphasize that
I would
.
without
are
convinced that in the not
definite factor of obsolescence.
refinement in the
on
improved selling and promotional techniques. Calls for
in instalation and service by electric power
as
are
many, many years
electricity—without
without convenient
The Problems Ahead
cooperation
companies
the
of
part
too distant future the lack of air-
a
and lower cost equipment, combined
process
the
on
With Paine, Webber
'
of
and
(Special to The Financial Chronicle)
without
—
conditioning in the home will be
recent
which he ascribes to
•
and
fixtures
and
.We lived for
particularly; impressed by the
shown
in
the
part of
interest
builders
eliminating the cleaning of fur¬
clothing.
mortgage financing organizations.
Air Conditioning and Refrigeration Institute,
Mr. Jones
niture
It is this broad interest in
our
Job to Become a Universal Comfort
''
or
future.
9
H. HENTZ & CO.
COURTS & CO.
KEAN, TAYLOR &. CO.
STERN BROTHERS & CO.
The Commercial and
10
Financial Chronicle
Thursday, July 22, 1954
...
(314)
U.
in
Labor-Management Relations:
How Accountants Can Help
These
figures
is
Census
That
tures.
of
costlabormanagement relations: (1) developing and making clear the
distinction between labor cost per man-hour, per unit of
product, and per economic unit of production value; (2)
developing double-entry cost accounting, and (3) developing
a realistic and true measure of productivity as guide in wage
policies and as means of gauging a firm's economic contribution
,
In
the accountant's
and the corporate treasurer's con¬
discussing
It is dol¬
output
your
materials,
That figure will be
for
costs
your
•+/,,
'+
of
part
doesn't
wage
labor
fair
its
get
+.
v./
of your own
worth
This
conviction
is
-
naturally
strengthened whenever the indus¬
trial
engineer
methods
or
en¬
gineer, with his new ways of
doing things and his stop-watch,
in
sets
to
labor-time
cut
on
an
of
This fig¬
tailed; he has
no
of knowing
way
that the sales department is meet¬
prices and labor wage-rates,
changes in specifications
your
but
Value.
in
ing competition and likewise cur¬
tailing the firm's income from
reflects
ure,
not
changes
only
also
It is presently
products.
your
,
that operation.
In the absence of
.
the most accurate method I know
developed these figures
Since I
century.
same
,
of
Production
own
averaging
In
brief, Karl Marx propagated a
myth, to state the matter in the
best light.
measure
it just
1
the
efforts, as distin¬ operation. The worker sees before
guished from the costs of ma¬ him the imminent likelihood that
terials, or in other words, your his working time is being; cur¬
of production value.2
39.395%
one
that
share.
higher
ever
on
production
consistently
wages
worth
market
minus
American
that the
out
turns
is
"production value," i.e., the
lars of
private enterprise system develops
$2.54 of production value for every
dollar of wages
paid and pays
The
which contained this myth
the
of
man
It
•
hour is the fairly strong
without
not
are
to all products.
common
J-;v supplies, etc.
the economic
lishments.
Management consultant lists as actions wherein the
accountant can contribute substantially to improved
for
*
250,000 individual estab¬
some
we
There
recourse.
con¬
one
demand
hour
per
.conviction
However,
sisting of the actual book records
Eddy-Rucker-Nickels Company
Management Consultants, Cambridge, Mass.
costs
rates per
with
of
comparison
for
labor
time.
not account¬
are
abstractions; they are com¬
puted from a highly official rec¬
ord, the U. S. Census of Manufac¬
the
product
average
ing
By A. W. RUCKER*
President,
of
tends to
Manufacturing
S.
be consistently $2.54.
double-entry cost accounting, the
measuring economic or market
amazing thing is that there is not
of
simply byTaf)-;
production. And 'it enables one to far more pressure than exists for
book
plying my own cost-accounting find his own
figures for (a) labor- increasing wage-rates. \
tributions
to
labor-management is printed in almost every known training, I have found that similar
cost per economic unit and
(b)
Here is an area of opportunity
relations, it seems to me we have language; its name is "Das Kapi- near-constants • exist 1 in
almost
with his payroll, to find his cost; wide open to the cost accountant
first to deal
tal," and the man who wrote it every type of manufacturing busi¬
?"/■'+■' per labor man-hour. For example: who would make a genuine con¬
was Karl Marx.
The myth which ness. The
with a
Mys¬
figures will naturally
to
labor-management
Marx propounded was simply this: differ for each
Using figures from the U. S. tribution
tery and a
business, but they
Census of Manufacturers and de¬ understanding
and
cooperation.
"Under the private enterprise sys¬
Myth.
tend to be consistently the same
When one goes fully into the mat¬
Few of us
flating Production yalue (value
tem, the position of the working year after year.
Two years ago,
man
must and does steadily de¬
ter, he usually finds that most, if
havetakenthe
in the plants of a mid-West chem¬ added) by the price index of the
time to reflect
teriorate; the worker is robbed of ical manufacturer, the industrial Bureau of Labor Statistics, we not all, of the reductions in unit
have for any series of years the costs sooner or later find their
his rightful share of the fruits of
that
account¬
engineers
and
cost
accountants
ing,
the
nearly
to
workers
all
and
fellow
human
beings
is
in
a
ing
is
as
a
also to ask
A1,en
Rucker
enigma. Its language often
different from shop language
is from Spanish; its
symbols are just as often as uncomprehensible as those on some
ancient Egyptian pyramid;
and
the end result of our computa¬
than
today
of
If I were
you "Is that share less
it was ten or twenty
answer?
could
many
fifty
how
worker receive?",
American
German
as
all manufac¬
output of
hands
the
into
way
the
of
costs
18.5%
by
the
in
constant dol¬
lars. In 1914, to illustrate, we used
cut labor
preceding
tomer in the form of lower
see
Would
it
cus¬
prices..
greatly surprise you
to.
from the figures of our over¬
per dollar of eco¬
yourselves. If I five years. Yet. when the eco¬
nomic output; in
1953 we used all manufacturing record of the
were to ask you now "What share
nomic audit was made for those
of American production does the plants, labor's share of production only 0.41 man-hours. Thus, labor- past 40 years that:
puzzle
conceal-
an
can
you
had
they
firm;
turing combined in
1.30 man-hours
century;
a
economic
that it could not be so
me
that
in
easily test it for
mystery,
wrapped
up
and
assured
for
persisted
has
myth
than
more
whom we call
""labor,"
he exerts."
labor
This
20 years ago
some
years
how
ago?"
hands would show as,
many
value in every one
that
from
tion
not
time
of those years
with a devia¬
machinery
of labor-time reduction
record
the
In
week, a client in a
business sent me the
phenomenal achievement
a
productivity improvement.
in
Just this past
less
no
years,
percent¬
a
economic unit has been
than 68.46% in 40
per
cut
five-year average
exceeding on-half
point in any year.
age
"yes"? Were
Gallup poll taken in Worcester
or in Massachusetts and New Eng¬
a
out to 16.32%,
same
risen
level.
in
40 years, however,
same
have
Had
the
of
791%
to
unit have been cut
per
70%; but
Prices
(b)
economic
per
unit
have likewise been cut the same?
labor earnings per hour
average
(a) Costs
almost
1914
it not been for reduc¬
In other words,
it
and prob¬
can
ably does help labor-management
relations for employees to know
that
improvements in productivity
would likewise his plant
tion of 68.46% in labor-time per are
passed along to the consumer
within a three-year pe¬
say, "Yes, the worker's share in
riod.
The reduction was 17.8%. economic unit, labor-cost per unit in the form of lower prices; they
production is growing less"?
would
have
risen
as
much as are not retained as added profits,
Nonetheless, in all these years, he
tions frequently means less to the
Our opportunity as accountants
paid labor as wages an annual hourly labor costs. As shown by by management, certainly not for
worker
than
an
astronomer's
and
our
great
contribution to amount of 44.53% of production Figure 2 here, we have had a con¬
long.
computations of the positions of labor-management relations can
values..
stantly widening spread between
the planets do to
Earlier this year, I had an in¬
you and me.
begin at the point where, in our
Let's mark it down,
when we ap¬
proach
labor-management rela¬
tions, that accounting is a mystery
to most men, and one which we
must first clarify.
not figureminded; many of them even lack
the language that goes with the
figures. And of course their wellknown tendency to think or even
openly to declare, "Figures don't
-
Most
people
hurdle
One
is tne
mutual
figure,"
do
liars
but
lie
Number'
are
to
understanding.
how
land,
firms,
own
all
the
and in be¬
we
myth
settle once and for
and the
figures. For
Marx
of
mystery of our own
instance:
is
What
American
What
the share of labor in
manufacturing output,
part
or
the
percentage of
production goes to pay¬
ment of h o u r 1 y-r a t e d factory
workers? And is that share great¬
value
of
less, today than it was at
time of Herbert Hoover, or
or
er,
the
Woodrow Wilson, or
labor-time?
is
Here
lars
to start a
about
century
a
thinking
nations
man
what
ago;
he
probably influenced the
and
and
the
more
lives of more
millions of hu¬
the beginning
Labor
If you
ords
tribution
Unit
Per
Cost
of this century.1
the books bal¬
anced, the amount of production
value
for
each $1
of wages paid
beings than nearly any other
Productivity
All U. S. Manufacturing, 1914"Progress
1 SOURCE:
*An
by Mr. Rucker before the
Chapter, National Association
Accountants, Worcester, Mass.,.
address
and
Pay,
Worcester
1952";
of
pany,
Cost
The
in
your own
compile
record
year
in
trend
in
of
the
of
ten-
or
is
trend
>
in
of
But,
the
Cambridge, Mass.
Com¬
is
the
one
physical measure
units of output. Unless we ac¬
of
any
develop
can
such
its equivalent,
not know, on a
measure, or
\
'
'• Offered
as a
Speculation
tually do
wide
25,000 Shares
who
us
INC.
some
in
Harley Patents, Inc. is engaged in the manufac¬
ture and sale of clasps, buckles and other quick
release and quick fastening equipment for use
in high speed aircraft, air cargo planes, airborne
military equipment and the civilian consumer
market. Its office is at 580 Fifth Ave., N. Y. 36.
have
that
I
,
Even
case.
if
aver¬
•it would be
ful with
stop
see
or
is
the
by
cor¬
plant output
willing
in
to
any
that
to
be
such
an
the
even
index,
use¬
of time and
passage
most
this
for his
He
For
a
copy
of the offering circular phone
or
write
an
2 The
of
See
multi-product
of obtain¬
labor cost of unit
no way
figures, 39.395%
production
wages,
-The
E. E. SMITH COMPANY
average
are
and
the
standard
"Progress
If
we
kept
in
labor's share
per
dollar of
$2.54
Near-Constants.
is
plus
1.665%.
in Productivity and Pay,"
supra.
„
.
the heart
At
of
about wages is
the worker
ignorance;
his firm
got
or
ample evidence, that plant execu¬
tives had
it isn't strange if the
typical work-
ingman begins to feel that some¬
how labor doesn't receive its pro¬
or
equitable share. In other
long as the hourly com¬
so
pensation bears no relation to the
economic worth of the effect, or
no
visible
blame
a
relation,
man
and
it
is
hard to
his-union
for
feeling and acting as if sthat share
were
I suspect that one
too small.
of the
markedly reduced labor
increased productivity
and
costs
without
tives
figures,
great pressures behind the
Telephone:
Specimen Rucker-Plan Standards
Street, New York 5, N.Y.
Productivity,
DIgby 4-4740
per
$1 of wages
$2.1887
45.69%.
Share
*'
Management's
far enough to re¬
out
the two most essential facts:
veal
First:
that
disconcerting
The
54.31
"
fact
customer had
reduced exactly as much as
prices
been
to
been
costs had
the
cut;.and
Second: The
gratifying fact that,
with the price reduction, the total
volume of output had
risen somuch
to
as
provide a rich reward
employment, pay and
added
profits.
.
These
we
.
the sort of facts that,
are
cost accountants
and per¬
can
haps should develop and reveal to
In blunt terms, we
perhaps we should de¬
management.
can
and
velop double-entry cost account¬
ing and thereby clear
the mysterv as to
really
uo much of
what the figures
"
mean.
■hi'/
Measuring Productivity
Now there is
a
third area, adja¬
cent to the two which I
have just
discussed, which presents an at¬
tractive ooportunity for advance¬
ment
the cost accountant with
to
imagination and ambition.
develop it
For
a
some
Let
me
bit in detail.
years
past,
we
have
heard much of labor-management
discussions and
baspd
tor."
unon
agreeing
annual
per
an
of
some
contracts
''improvement fac¬
General Motors led the way,
to
increase
wage-rates
by 4c an hour, or about
justification for that
The
increase
1.15%)
( + 1,15%)
( +
em¬
that the figures were
was
not carried
214%.
100.00%
$1.0000
1.1887
Labor's Share
'
to
Economicthe only
our
as
showed;
clearly
each year
15 William
incentive
any
It turned out that the execu¬
were,,,absolutely correct in
pay.
piece he turned out.
begin to bal¬
the books in his mind.
So,
ance
based'
objection was
the contention, backed with
upon
hour of work, or for each
as
Rucker
deviation
of what value
literally cannot
have
for
played.
operation
words,
ing
is
but
does not know what
per
i
piece,
arguments
same
plants,
share
i
question.
ignorance
worker
So,
we
idle
moment to reflect, we easily
that labor is paid by the hour
products.
$1.25 per
no
the
Briefly,
in
a
the changing specifications of our
Price:
in
the firm received for the part the
increasingiv less
the
are
What about the off¬
darkest
important,
more
Federal
construct
impossible
constructed
we
This
a
ac¬
plant-
would
are
think
volumn.
a
items
setting credit to those charges?
multi-product plant, especially in
any job shop.
And for practical
purposes,
all the
a
to
total
it.- is
looking like
but
with
Those of
which
units
we end up
ma¬
unit.
tried
express
physical
say
per
measure
rectly
Capital Stock
we
perspective basis, the
labor cost
age
HARLEY PATENTS,
tabulation
of
core
budget,
have
split-minute of
chine-time, and
here
lowing for labor a constant -per¬
centage share of production value-
mistake
by
too
the
to
accounting mystery, few plants in¬
countants
NEW ISSUE
down
per
output.
and
even
much cost ac¬
counting is scarcely more than
single-entry bookkeeping. We duly
enter every
item of cost, often
that
saying
downward
man-hour
another
of
slightly
you
a genuine interest in the
Plan, but objected to al¬
pressed
Rucker
ployees other than regular rates of
Cost Accounting
shock
may
A
nection.
Audit
I
experience in this con¬
multi-plant firm- ex¬
teresting
their
Double-Entry
to
average
"
still
„
greater value.
will
you
hourly earnings
offset and to
average
plant
counterbalance
unit
plant,
^
make
perhaps
contribution,
hourly
average
your
labor-management
to
may
rec¬
five
a
deed
Eddy-Rucker-Nickels
Figure 2, for the
on
understanding.
You
will take
and
earnings
And, just to keen
dol¬
in
era
new
value, taking all
find that the trend is constantly
manufacturing as a whole; and, f
upward .This is an easily available
> (b)
This percentage, with only
record. The effect of the upward
minor changes, has persisted since
wrote has
savings"
period 1914 to 1952, inclusive.
Cost Per Hour and
Labor
that:
production
shown
as
and (bl
spread
A
similar
approach with the
of figures of a single firm will en¬
understanding between labor and able you to disclose the difference
management; • My own approach between labor cost per unit and
is along these" lines:
labor cost per hour.
By so doing
you will have made a'lasting con¬
lution, aid
amazing myth. ;Some say
the myth really began with a lit¬
tle lawyer who sat writing in the
British
Public
Museum. Library
of
"labor
This
help to solve and, with the so¬
can
hind this hurdle, there has grown
an
costs.
measures
mysteries that the cost accountant
(a) Total wages paid each year
in American industry are 39.3%
up
labor
labor
unit
of those
one
costs
hourly
(a)
How is it possible to reconcile
this, constant sharing with labor
and the undoubted reductions in
William Mc-
It is worth knowing
'Kinley?
Out of this mystery
many
is
the
estimated
increase
man-hour,
in
said
average
productivity
to:
average
[Volume 180
Number 5344... The Commercial and Financial Chraniele
(315)
nationally about 2% to 2% an¬
nually. a;. ••r/r*
/ •?:•> product; it is, instead, - production"-
("As
hear
to
come
we
and
more
about
productivity, many of
bur firms are going to discover,
to their cost,, that they have no
more
value.
The
"total sales value of output in¬
cludes
two
sets
of -values;
the
value
the
of
.
-
materials, sup¬
variety of other
raw
of
measure
down
FHA Termed Greatest Boon to Home Owners
is-simply'this:/t,-./•'.
reason
.
•
.
der most state
..
..
.
George C. Johnson, President of the Dime Savings Bank of
Brooklyn, largest savings bank holder of homef, mortgages,
says/FHA
is
one
of
few
Federal
agencies
that
and
payments
terms than would
for
II
longer,
be possible un^v
banking laws.
\
"Actually, the FHA is a firsts
rate example of government anc|
business in partnership with nq
cost to the taxpayer. The FHA has
reduced the formerly extremely
..
operates
productivity
on
a plies, power and a
;
(
at a profit.
plant-wide basis.-Clearly, the na¬ items bought from others, not prO-J
tional average will have no neces¬ duced by the
The Federal Housing Adminis- family
firm; and the second
of moderate means was hiSh Price of mortgage credit by
sary
relation to the average*in set of values are those added to tration
"has
been
the
greatest able to own' its home free and spreading the risks over the enyour plant.
Is it less'than 2V4%? raw materials by the processing boon ever conceived to benefit the clear.
'
tire nation.
Because of the apIf so, then an increase yearly in in your plant. It is the change in
home-buying public," declares
^
"But all that was changed with 1,°™^ 40 CG?tS PGr ™°nth per*
your wage rates by 2*4 to 2M>% the form, dimensions, color, chem¬
George C. the advent of the FHA. It
brought $1/00® °f mortgage insurance
will surely' increase your \ costs, ical nature -or- other-changes in"*
Johnson Pres- with
it an entirely new concept which the FHA receives from the
tend to raise your prices or to de-; raw
materials, to convert them in¬
:^ :7he of mortgage financing,, and has borrower the FHA has operated
press the earning capacity of the« to a product your customer wants./
Dime Savings made home
ownership possible for
through the 20 years
business of narrowing margins or That value is your own produc-C
an
k- of
millions of families. Today, nearly ?,
its existence. Early this year/
tion value, distinct from the pur-,
curtailing demand y.y
*
Brooklyn,
...
•
.
r
in * the
Somewhere
agerial ranks of
must
who
be
top man¬
firm, there
harassed
some
would
every
give
to
Production
the
it is also
£ains his firm is making
whether or not 2*4 % as
ternally
increase
and
s—
a
wage
is too
much, too little or
And how much it has
just right.
/already been utilized to give the
customer
price
a
low
as
as
that
pi his competitors./
V
a
saw
orders, according to the method I
■am outlining below. For over onehalf of these products, the figures
for
horrifying; had it not been
few
a
in
orders
the
lot, the
firm could not possibly have kept
its head above water. Yet, accord¬
ing to the regular cOst-accounting
method, every single order showed
a profit/
And there wasn't any¬
thing
whatever
with
the
accounting, except that it
cost
was
wrong
jingle-entry accounting. This firm
has only recently given a "pro¬
ductivity improvement increase"
and is
now
awakening to the sad
tfact that its average gain in prod¬
uctivity, :' all ' products
included,
does not come anywhere near to
the
For
to "obtain,
instance:v
••v."*,;
and
$1
per
-•!».
^
increase in wage-rates.
iri
.
C.
•George
Johnson
up its^
000 interest at 2V4%.
J
payments'^ow
madias
FHA
'
■
"'r'le Dime -Savings Bank of.
suPPorted f.he FH/
■*?* <* its cardinal policies.
~d0 '^the e^/enH^nce
..
ob-
(c) What should management do/has cost the taxpayer nothing, and,-and insurance are made-by the
about it in wage negotiations;--in/in fact,.has operated at a
profit,"-home-buyer. In . this /way,, his
been for the FHA. In addition, w&
hold
than 21,000 home mortloans guaranteed by the Vet-*
more
gage
Administration
erans
and
these
monthly payments are no more twotypesof go^vermhent-backed
Here is an entirely;«new -area, V'5 "Until establishment of the FHA than rent for comparable living loans account for approximately,
full of promise and prospect /for < in1 June of 1934, the purchase of
a^9uar
.s'
every month he is half of the 67,600 home mortgage
the man of imagination -who in-, home was extremely difficult for increasing the equity in his home. Joans now held by our bank,
sists on seeing the whole, as
wellx the; average family. Usually it £t the end of the mortgage term,
(<The hQme building industry i9
selling?
.• •
.
the
individual
tricate
economic
as
the banker stated:
part, of this in-:
was
necessary to
'
scrimp and
he owns hls borne free and clear.
save
a
cornerstone
in
.
-
the
American
interaction*.of: for many years to accumulate the
"Foreclosure is extremely rare economy, since one out of every,
wages, hours, productivity,? pay,, high "-down payments untir then today.
During the past 20 years, s[x persons' gainfully employed
prices and costs/
V
v.?required, ranging from 35 to 50%. the FHA has insured more than depends upon that industry for his
•
•
'
'•
: Then,: when this money was fi-- 20 million loans aggregating near- livelihood
either directlv or inSummary
■,*^
/nally accumulated, a three or five ly $31 billion. Total foreclosures directly. In turn, the FHA is a
Out
of
that
relationship r can; year straight mortgage was writ- last year on all types of home cornerstone in home
building, and
an
come
understanding on the ten at high interest rates. When mortgages were less than 21,500. has been for 20 years. This agency
part of management and a means the mortgage came due at the end This compares with 252,000 fore- ,must never be allowed to become
of
developing that same -under. of' that short term, few home- closures in 1933, the year before
a political football, nor allowed tc»
standing on the part of. employees buyers were able to pay it off and the FHA was established,
be shoved aside into some minor
and their unions.
I can' say that- the mortgage had to be renewed, /
,^11 must, be remembered that
:
.
.
-
>
-
.
-
.
who
man
initiates
and
who-for. which large fees
equips himself to develop such in-.
were
charged,
the FHA does not lend money.
pr^d^^aS^dYf^011^^orec^ose'
they are more com¬
that
lack
due
prehensive and provide perspec-^y
single-entry cost ac- tive. In this
paper, I have listed I
counting, to too much emphasis on and
touched
upon
three areas/:
items of expense, and too little or
/ wherein the cost accountant can y
•lio consideration of the counter¬
position in the Federal Govern-
It
simply guarantees that the mort- anent.
Frequently,-unscrupulous lenders
s^nce such action gage lender will not
lose^in
Instead,
I
sincerely
hope
the that by. .the.'end of another 20
Because of this in- years, the FHA will have helped
it is possible for'lenders make ownership possible for mil-
transaction.
surance,
to write
: "
,
■
-
mortgages
with
lower liotis more American families.
-
"
consider
largely j to
contribute
balancing
real
For
income.
in-
stance,, how many executives ac¬
tually know what the production
value income is in their plants,
:
taken
.
reduction .111.
a
$65,500,000. advanced to set
insurance program, plus $20,350,-
..
After.a low down payment, in excess of $86,000,000. Relatively.
served
the compared with what was formerly few 0f these
13,000 home buyers
20th anniversary of the formation required, an FHA-insured- mortwould have been able to embark/
;-of that Federal agency. Pointing .'gage is written for a term of 15 on home ownership had it not
the
.
.
which
;
m
'^^reaS+ry
cn0 nnn
SYaLar^ long??S'Br0o°klyn fhas
measures. This is the usual vancement in a degree thai; may- was entirely, within their rights
lack, indeed it is almost a univer¬ surprise him.
if-the mortgage was not paid when
sal ;lack; .there just are not any
Any and every plant;Vwith few due. It was rare that the average
measures
of plant-wide produc¬
exceptions, needs better figures in
^
z1
:
•
tivity in other than a few firms. the sense1 that
I
in
-
■-
through low down
ft
America
substantial
homes
Hup
; ■;
America3
«
production;
^ How'muchit-changing
tivity
And
the
in
in
have
have
of wages;;per man-;
•costs, but one of reliable produc¬
■
or.
or'areductioh/n productivltv'6 ^veryyfew/Federal agencies that ments years.. Equal interest, taxes
out that'"The FHA is one of the to 25 on principal, monthly payproductivityf
or
the
f /The lack, in this instance, is not
one of correctness and, accuracy in
equities
thpv
—Y-Y
/*//"/;
\ *
•
your:
families
mortgages
than any-other
to
the
of
eitherown
related.?
/
'*
origi¬
mo r e horn e
income: That
disposable
figure
value
of j
100.0%
100.0% of the plant's in/
(a)"Whatv.is
the
bies), broken down by individual
were
is
in-any plant; C
which all others must be
job show (tools and
a
Value
hour of labor-time?
Just this past Monday, I
figures for
is ' the
which
nates and holds
,o
:>
true production
know precisely what productivity
60%
materials pro- ",
raw
duced by others."
executive
great deal
a
chased cost of
as
whole
a
or
by individual
products or orders?
And how
many know the relation - of wage
costs to production value, and of
production value to labor man¬
-hours.., r
ysubstantially
tions and to his
own
;
New Issues v
•
......
solicitation ojan ojjer to buy securities..
or a
*
-
"
'*
July 21, 1954
•
im-y
to
advancement.-.
./y ■/•
are:.
(1)
tr/
ojjer of securitiesjor sale
labor-management. rela---
proved,
They
Tilts announcement is not an
Colorado Interstate Gas Company
: y -y •
Developing
and making
clear the distinction between labor
.
;
cost per man-hour, pei? unity of
product, and per economic or dol-,
lar unit of
/
(2)
production value;
,
.
In
/ $30,000,000 First Mortgage Pipe Line
Bonds, 3.35% Series due 1974
y.
Developing double-entry
•
cost accounting, wherein not only^,
well-managed plant, we
bave re-engineered the entire cost input of effort and expenses are
*
1 system, not only on a plant-wide shown, but also the resulting output of value;
■ y
basis, but by individual products.
„' (3)
The resulting Rucker-Plan standDeveloping a realistic and j.
V
•
one
:?j
110,000 Shares Cumulative Preferred Stock, 5% Series
/
r
*
•*
"
*
"
" "
Par Value $100
per
Share
,
.
.
/
?
.
'
ards for the entire plant look are
'
;
.
;
r
in
shown
as
-
the
accompanying
tabulation.
•
.
of
measure
guide in
means
wage
Prices:
productivity as a
policies and as a
the firm's true
.
r
•
'
100%for the Bonds*
of gauging
Any job which will / not yield economic contribution/.
$2.1887 for each $1 of labor cost
These are new fields for most;
comes under immediate scrutiny;
but this is a new age in more than
first to make sure the cost sheet one respect.
New fields can be
is properly figured; second, if so, fields of opportunity, not only for
to make sure that the industrial
personal
advancement
but / for
engineers and. methods men have genuine contributions to the ad¬
done their utmost; then third, to vancement
of
human" relations.
.
put pressure on the sales depart¬
ment either to obtain a price suf,
true
ficiently high to yield $2.19 per
wage dollar or to reduce the or¬
ders taken for jobs which yield
'
$100
Copies oj the prospectus
can
help to make
enterprise system
gently democratic
democratic
our
more
share for the Preferred Stock
map
o f the undersigned (who
prospectus) as map legallp ojjer
applicable securities laws.
be obtained from such
are among
the underwriters named in the
-
You
per
plus accrued interest and accrued dividends;
respectively, from July 1, 1954
private
intelli¬
these securities under
and,
also, our
more
intelli¬
system
gently capitalistic.
Dillon, Read & Co. Inc.
"
less than $2.19 per wage dollar.
1
•
-
-
•
$2.18887
$1
wages or
better is the signal to put the sales
per
emphasis on such jobs, assuming
the figures are
correct-and can be
realized in actual operation.
{
In
the
'
Duncan
is
now
BIyth & Co., Inc.
'
Goldman, Sachs & Co.
with
Eastman, Dillon & Co.
Slayton &
Harriman
Ripley & Co.
Incorporated
James McN.
—
analysis, the cost Co., Illinois State Bank Building.
who
can
provide a
complete picture of the economic
end-results will be a man marked
promotion. These end-results
must
be, I think, expressed in
terms of the firm's economic contribution.
That/is not total sales
for
.
Glore, Forgan & Co.
(Special to The Financial Chronicle)
QUINCY, 111.
y
■
£
Slayton Adds to Staff
W. C.
Langley & Co.
Lazard Freres & Co.
Lehman Brothers
final
accountant
-
The First Boston Corporation^
Conversely, any job which does
yield
With Harris,
McParland
Mass.
is
—
now
Fenner & Beane
Stone & Webster Securities
(Special to The Financial Chronicle)
BOSTON,
Merrill Lynch, Pierce,
Smith, Barney & Co.
Upham
Bernard
with
P.
Harris,
Upham & Co., 136 Federal Street.
Corporation
White, Weld & Co.
.
%
♦
4
12
The Commercial and Financial Chronicle... Thursday,
(316)
■*;
July 22, 1954
•
moments of
strength, neither -
they particularly conspic¬
uous
when there is selling
are
THE MARKET
...
By WALLACE
AND YOU
v*
around.
casionally
races
week
this
so
have
the popularity with little spectac- protracted
spent
;
1
after
rather
a
One
pennies
1950,
1T-U7QVC
sdme 10 times that figure as
the various plans or reCapital-
selloff. At
the climax, which came as the
week started, no less than
Outstanding Secondary Issues
Mack Trucks continued as
so.netthing of.an enigma, with
a11 sor}s °f merger rumors
groused by the persistent
buylng but none working out.
Northeast Capital Corp. must
given credit to a major de®ree or, e . 7i j'June
a
somewhat sharp
a
por the oils it was a case
m(£f
^
^
f
'
of
plane issues dominated weakness persisting as more
eight most active issues to companies reduced their repost something of an unusual fin7 runs to keep invenshow of unanimity.
finished products in
*
*
*
line. The oils dominated the
the
torieYof
preference for aircrafts daily new lows, notably Tide
surprising Water, Wilcox, Pacific West-
The
*
<2
spectacular gain! ern a^d Shell Oil, most of
earlier this year had carried them repeaters. The Standard
them as far as appropriate group, and Standard of Callto
discount the splits that fornia in particular, were a
their
along subsequently and
the excellent earnings which
also fulfilled all the hopes,
But their siesta was brief and
came
ahead
again despite statistical conability
the
spurt
to
siderations and the fact that
general market was in
t h i n g of a stalemate,
the
s o m e
bred
follow-the-leader popu-
a
larity.
*
*
*
•
Magnetic
Atomic Energy a
have
that
Issues
any
atomic
with
nection
con-
energy
also built up an occasional followinp*
Carborundum
lowing, uaroorunaum, Vanavana
tteSPa"crafTsaSZvever
future
didn't
highT
time
time
which
nreJve
pressive
t r i d e s in
in
strides
s
state of the petroleum section,
was a somewhat inauspicious
bit of timing. When the shares
.
that
was
^ng^that yea^oMS-^In
priation to set
But
th
t-
j^g
was
59 V4.
-
tripled in price in half
'
*
*
*
%
Pissue
of
airlines
The
case
.
_.
of
a
are
to
eral
down
able
market
I We offer
to
action
show
good
occasionally.
The Pacific Mills tender
CHEROKEE
all
MINING
URANIUM
CORPORATION
COMMON
Price
done
try
C-22
Circular
TELLIER &
Exchange
CO.
PL, Jersey City 2, N. J.
Tel Dflawaie
"
could
sales
so
the
that
tendered
be
stock
immedi-
^
:
*
*
*
-
pbona:
Rails continue to
the* consolation
while
they aren't overly buoyant
on
~
'
Carlisle Barjeron
and
the
apparently lacked the substance
indications
at this
are,
writing, that
the spread of the TVA if private enterprise is to
it
has
trol
were
the
have
the
navigation
the
over on
coun¬
used
fiscal
and
it
area,
navigation,
argued,
was
right to dispose of the incidental hydro
palpably false at the time.
was
Flood
con¬
the incidental phases of the project and
constitutional pegs for a great public power
as
were
splurge.
TVA has
'54
put
was
responsibility for flood control
The argument
and
TVA
something in the Tennessee Valley
should
power.
field.
adjunct to flood control and navigation. The Federal Gov¬
as an
and
long since gotten
it
year
will
away
45%
use
from water
water
55%
and
power
For the
power.
steam.
When its present construction
program is completed in 1956 it will
be using 70% steam.
There has
-'
been
little
or
no
7
7:7
>
resistance, certainly
effective
no
resistance, to the TVA's steady expansion to meet the increasing
needs of power in its area. It
long ago pushed the private com¬
panies out,
manifestly if the increasing needs of the
so
area
were
;to be met the TVA must meet
But
it
now
is
: 4
threatening to
spread
out
That is where the present Administration is
million
10
present Energy Commission takes
Atomic production is about
unless
we
would
then
,,
.
.
the
to
calling
a
periphery.
halt. TVA's
kilowatts.
Of
30%.
in
about
But
this
the
couple
a
the
main
the
,
„
_
....,
.
new
,
.
.
.
or
.
article
time
views
do
not
coincide
Chronicle.
with
as
surplus
so
much to
proposition, there is
dealing with the future
it.
It
We
its
.so
The Administration's
uses.
in
It
would
This
is
build
to
with
the
dividends
Mississippi
government
my
Valley
debate
pending
atomic
Atomic
lobbyists
are
on
yelling that
that amount for the
up
taxpayers should hold
we
bombs, and secondly, I,
of atomic
energy
owner
administering it and
a
over
•'
stock. "I'now
development,
for
energy
policy is to turn this
*
desire to be the
on
in the
happens, in the first place, that the
so
far has been spent largely
no
the
of
taxpayers, it is argued, have put
taxpayer,have
any
the fore
use
power
giveaway of $10 billion.
ownership.
future
anxious
its
on
deep underlying opposi¬
a
provisions
private enterprise. The public
a
TVA
power
do with
are
expect
come.
plant.
own,
as
not
onto
money
as
one
in the
giving
me
taxpayer,rthe
a
St.- Lawrence
"seaway,"
an
intracoastal waterway, all sorts of other
waterway developments.
It
looks
though
as
harness the tides at
TVA.
But
they
dividends to
should
all
I
might
soon
like to
have
a
Passamaquoddy Bay;
cost
me
money...
me.
.
see
piece
I
even
They
.
.
of
project
a
own
don't
a
return
7
to
piece of
any
•
enterprising gentlemen who will know
how to make money out of
of atomic energy so
those.of. the.
presented
those of the author only.]
are
of
combine
Administration's
I
Perhaps acci-
expressed in Pus
necessarily at any
They
Dixon-Yates
development of atomic energy, and
In
,
lncldenta1'
the
reason
the
,
rails :have
every reason to
doubt what it would
Act
•>
industrials.
.
.
no
to
this is
to the averages. The
the
have
amount
Energy
.
.
tremendous
a
the Dixon-Yates
tion
.
meandering. Selling pressure
■wasn
avy
.P
enouSh to do anything of con-
interval,
have
we
nationally insane, is bound to
Although it has not been
complished little in its
the
go
flood the surrounding private
companies and ruin them.
industrial
..
ec '?. a,
to
are
hands and there is
to
„
IThe
lag with
that
/
/
private
*
*
dental, achievement.
ately.
two
them forever. A cutback,
-
only a handful. With a
longer deadline on the Good- succeeded in nudging their
all offer, the $20 tag spurred
high along the route but with
a
rather unusual
group of
ajr 0f d0jng it only as an
cash
with
made
Their noise has
votes
stop
had to do
play in the market served
change
ftrtactrfor the
*»®ni
S-3801
4-4500
U. Yi
so
were
STOCK
to
ernment
quickly, with a
high for the move, made a
weekend intervening, that
couple of weeks ago, is still
holders able, to take advanover
be
continue in the electric
energy
This and the gen¬
rife.
sequence
tage of the offer, apparently
15 Cents per Share
Phone or Write for
Offering
was
i
get
to
particular
Nothing but another TVA plant would suit the public
crowd. But the plain fact is that something has got to be
power
attention, both from the
public and from the institu-
pre-
largely although Good-
was
to
power
contract.
some
return to moderate mium of around $7, simmered
all
1
a
sufficient
price
point premium and then for
similar Goodaii_sanford with
a
TVA
w
It is not my purpose to pass upon the merits of the
of the issues other than
the blue chips were attracting
an
of
turned
the Administration will win.
offer for Pacific Mills at a 14- tional investors.
Firming Airlines
.
Burlington Mills, first with
efforts
W
r
situation.
has
Energy Commission, and directed
than two weeks.
Some
The fanfare started by
dozen years.
the
it
to build the plant instead.
1
^
is this proposition that has been
causing the public power
lobbyists to scream their lungs out and tie up the Senate for more
on
a
the
control
a
■7:7;
V/7//A-/.
it
to indicate that for a
* - *
*
Textiles Simmer Down
high of 1929. Nevertheless
fight,
;
1 0i
subdued way it pushed ahead Atomic Energy Commission
with d e t e r m 1 n a 110 n and of years AEC will be taking from 30 to 50%. It would hardly
stockpiling
Anally eclipsed best 1952 high seem that the government, will go- on making atomic weapons and
make it the the
for
--- --more
^ retUrned to list-
as
dicuss
to
power
on
p%>
pany,
shares generally. In a rather
-
saje
down
,
utilities, the Middle South Utilities, Inc., and the. Southern Com¬
have been a couple of stock ,
.
sincei itq 1946 ton
recent dividends, including 20% in "Vf 1SSU®
"S was.
recent 1 fl4fi anH 2% ^ ig52 The jni_ when speculation 1948 far
1946 and 2% in 1952. The ini-
but still only reached
the
Atomic
t^+
iesser nualitv
th
-
conference with the State
a
year
for another plant to furnish
money
the
up
next
in
thumbs
17 a'
more at-
»
far
.
given
the
rate
Governors
lm-
about half the level of its rec-
it has
another seconda
the
to
ears
,
jnternational Telephone
was
removed from trading
counter trading the following
year the stock reached a high
Vana- of above 80. Since then there
vdiid
.
.
years,
APrd> 14'700
,
they
made
has
1"
.
Jn
in settmg all
notably
nuiduiy
mgnb,
dium,
aJqu7 !°"s .°
Mar.ch' 14;800 ln
™th aslzable mcrease
bit more steady, although °
'
s
,^u*7
Indiana Standard was a softer [ather concentrated attention
item with
some
definitely
one holder wltb b» e in
week spells.
7e ^ °f °"lclal exPlana'
* i; *
*
tions for it. The issue conseRoyal Dutch Petroleum, ^uei? ^' bas pushed to suewhich withdrew its listing cessive new highs for several
from the Stock Exchange 18 years" The Post™ar klgh j?r
years ago rather than comply 7e lssf was a?h7VefQsbortly
with the accounting regula- after
was sPld ?n 1948 and
tions of the Securities & Ex- 11 no" w°,rklng toward
change Commission, returned aa"ai-lLngt^mtTe"mg
to listed trading this week
ig 0 y a ra 1 n
which, considering the low
7 * * *
Corp., and Climax Mo- were
dium
lybdenum showing an ability
411,000 shares This included
If
^powerful education lobby,
hearty plaudits of all "right
thinking" people, as the expression goes.
Its policy towards the education lobby has
been negative rather than affirmative. It has
simply shrugged off their fantastic demands,
asking Congress, instead, for a minor appro¬
deaf
should
*
*
also somewhat
since
ord
up
Outstanding Secnndarv Issues
seven
was
have been pretty much
ievek
*
*
*
come
as
ot puolic power
organization
arid are
scrapped in turn. The peak of
thc hopes was reached in 1952
when jt approached the $60
i^ation
greatest accomplishments in its
the TVA, and giving a set-back to the vast
lobbyists. They,
"
having their own way
for some 20 years. The Administration's deter¬
P? '"
I
mination in this respect and, its turning ,of-
that octopus known
range'
&
a
1
handful of pearing on good volume more
favored groups take over the days than not and at the best
spotlight on strength enough price level in half a dozen
to attract profit-takers at the years
Braniff Airways, divifirst sign of a pause. This type dend-less
for a • couple of
of action was especially prom- years, which set a postwar
inent in the aircrafts which low this year,
also turned
soared for several successive firmer and occasionally feasessions before bumping into tured in fair activity.
while
the Administration's
of
first two years of office, although it won't have much vote appeal
for the man in the street, will likely be the putting of a dent in
as
_
of the News
By CARLISLE BARGERON
This "stock,
rest_
_
levels ;
Washington
Ahead
ahead and did;
greater JL
part of two weeks now ular about it. Pan-American avaiiajr)ie a^ a few
.ia
was
someover £4 as recently
proving that they can back World Airways v
and fill at historically high thing of a trading item,; ap- |,as keen holding in
jwa u*
5
O7.:: — '
From
exception might
be Missouri Pacific which oc-'
STREETE
—
Stocks
An
it, take
they will
over
the industrial development
pay taxes on
what they make and
reduce the size of the burden that I have to
carry.
But you would be surprised if
you sat in the Senate
„
7k 7k
.t ' 7,.™"
ga"ery and heard how plausible the public power
p.
or
House
,
their arguments sound.
crowd
makes
Volume 180
Number 5344
...
The Commercial and Financial Chronicle
(317)
Aircraft
'j
Components
\
.
.
13
>
%
A Fine Old
Company
Subway and Passenger Train Cars
4
c.
Highlights its Report
j. a
:Vf;c
&
*'•
'rV*
j.
Military Equipment
under
s
New Name
if 4.
When
the American Car and
incorporated in 1899, and for
Carburetors, Fuel Pumps
and Filters 5
name was
Today 's
^
i
ii
Foundry Company
many years
j
was
*
••
thereafter, its
descriptive of the company's principal activities.
.
t
>/'
activities, however,
extend to many other fields:
Artillery Shells
aircraft, nuclear
electronics, and
revolutionary
energy
55th ANNUAL REPORT
recently, the
more
new
Highlights from the
products,
for the fiscal year
ended April
Talgo train.
j
GROSS SALES
Nuclear Energy Products
Because
of this
30, 1954
.
....
.
-
$245,086,908
60,782,521
PAYROLL
forward-looking
MATERIALS
159,971,557
......
policy of expansion and
TAXES
diversification, it
was
•
DEPRECIATION
adopt
•
12,730,222
.....
•
■
3,824,188
•
•
•
•
■
decided to
a new name, one
that
more
7,778,420
NET INCOME
Electronics
accurately describes the
scope
of
EARNINGS PER SHARE:
present and future operations.
Preferred
....
.
♦
V.
,
r
;
7.93
Common...
Thus,
it is under the
DIVIDENDS DECLARED:
of
name
From Current Year's
QCf Industries, Incorporated,
Oil Field, Pipe Line and
Industrial Valves
man
that
we
submit
highlights of
26.87
Preferred.
our
earnings and operations during
Earnings
.....
2,026,150
2,900,992
Common
INCOME RETAINED IN BUSINESS
2,851,278
r-
the past twelve months.
Tank Cars and Storage Tanks
INDUSTRIES
•? t:
f *
Freight Cars
INCORPORATED
30 CHURCH
STREET
•
NEW YORK
8; N. Y,
*
,
The
I
Revolutionary Talgo Train,;
Built by QCf /
•
f
I
*
^
V
■f
t
The Commercial and Financial
14
Grows Brighter'1
-Economic Sky
SINCLAIR WEEKS*
By HON.
Secretary of Commerce
prediction of
Secy. Weeks, in decrying gloomy
a
The record proves
is
end
no
flight forward if the Federal Gov¬
ernment and the American people
continue to
prise system
chance
President's program to
a
to
op¬
and
erate
of the
put more
money
in people's pockets will
pass this month because the public
wants
it passed.
A majority of
public-spirited members of Con¬
gress — regardless of the party
our
economy
chance
a
to
label—w}ll vote for that program
grow.
Just
this
in
week
our
tionwide
Bu-
Census
reau
esti¬
June
e m
big
month
a
When
ago.
million
62
and
men
more
women
it takes more than
parcel of pinks to panic them.
have
jobs,
To
is not
lifting
sky
grows
accident. The
on
are
by the
busi¬
taken
already
few
stimulate
to
ad¬
from a war to peace
did not snowball into the
depression
which
the calamity
howlers had predicated because:
First, your National government'
took positive steps to instill pub¬
lic confidence, to check
decline
and to spur recovery; and second¬
ly, the American people, their
confidence bolstered, took advan¬
on
has
government
and
wages
inventories have been removed.
all-time
An
made
been
record
are
before Congress.
now
Lawrence
St.
The
Seaway pro¬
ject has been approved.
The
Reciprocal Trade
rrients Act has been
>
Without resorting to any
before
ures—now
of the
signed
deadly socialistic drugs prescribed
to
Congress— de¬
up
soup
meas¬
the
economy
and to benefit our
people include:
medicine men,
Expansion of Social Security.
cooperation
A strengthened health insurance
with the people has brought our
system."
'
.;
economy back to a relatively nor¬
Accelerated depreciation allow¬
mal basis
and
is preparing
^hec
ances arid" other tax incentives to
ground for new economic growth.
by
left-wing
the
the
in
government
on
are
a
em¬
to
way
jobs.
require even
optimistic., forecasters - to
revise
ployment that
may
we
state.
United
Service
that
preferred
stock
at
share).
per
the
proceeds
■
of 5V4% prethen outstanding.-•/
shares
50,000
ferred
stock
Charles Carlson With
i.,r
(Special to the financial chronicle)
Act to
encourage-commercial uses.
More .flexible price ?uppor t
of living. Its role consists in
keeping open the incentives and
opportunities for private business, labor, agriculture, and con-
fact
that
dire
sumption.
The struggling .and less
Over
the
past
had in the United
year
States
we
a
have
slack¬
ening" in the rate of industrial
production and a rise in' the levels
achievements and, doubtless even, 0f
unemployment. - In
keeping
'to'- the. promises, '.of the Commu-with its responsibilities, the Fed-
J.
...
dynamic growth and a rising level
ieSs,
s/and^'carefully; .weighs what; our
system' offers;, compared to the
,
in the Atomic Energy
the
under
the
well-off parts of the world watch
:
.
has
prediction
The
at home.
/.
.
which
has been propagandized about the
world means that we cannot, in
he sight of the rest of the world,
afford marked deviations from
fulUand productive employment
/ •
from this sale,
together with other funds, were
used to redeem on June 30,. 1954,l
The
won't work. It
they say, to stagger
successive economic in-
stabilities
par
;
our
destined,
through
through Kuhn, Loeb & Co. an isof 50,000 shares of 4.25% cu-
($100
Government
Federal
system
*
•
responsibility
The
Employment Act is, nonethea positive responsibility and
not merely passive resistance to
economic fluctuations.
The government's role consists in creating
an economic climate conducive to
is
sue
mulative
thoroughly
capitalistic en-
are
and
finally collapse,
all because of the very freedom
of choice which it permits.
Public
Co. has placed privately,
Illinois
Central
The
States
the free
on
system as the best and
productive way of organizing our economic resources, it is
a
basic dogma
of Communismi
Utility Preferred Shs,
'
A revision
Americans,
As
us.
most
businessmen and farmers to make
fall
business and
our
spurt in
overtake
•
value our individual liberty and
the free enterprise system much
too highly to accept the promises
0f a government which would assure everyone of a job at the cost
0f becoming an essentially slave
Kuhn, Loeb Places
■
We
our
tested
being
we
Government
Federal
terprise
go
.
season
is
the
'".'V,-.'
Administration
the
that
know
history.
monetary
Further
all
system
the outset,
At
kself.
in the minds of hundreds of millions of people in the uncommited
parts of the world. While we in
The
jobs.
economic
Agree-,
living.
in
two reasons-why this is
are
important.
»
First, we
tools
recognize that
cannot
guarantee employment for everyone.
Nor does it guarantee that
economic r e c e s s i o n can never
sound, dy-
economy
progressive
and
forward in the next few
years to the greatest and longest
period of prosperity in all our
to
extended.
and- above current annual Federal aid.
business-
accelerate
will
There
into practice .it
give the American people the
and put
"sold"
greatest two-year highway
program in history has been au»
thorized, with North Carolina ap¬
tage of the economic measures
fostered by their government and portioned
$21.1 million for the
used their private enterprise sys¬ first year, an increase of 54y2%
to
namic,
-
sincerely believe that as. it is
adopted
policies have
resulted in stabilizing the cost of
Sound
the ^publicthe American
what
this year.
confidence and the economic
has
cuts
further
and
,
cut
tax
,,
.
just
is
ordered
I
prices,
to
It
i
of
cost
Controls
economy
make
peace over
gTve busineSThe tncen- *^"6
*lliesernment in the Employment Act
rr:h|n0dPPb0errr^oo0dsPr?o Kee" Ame™"
S°U"d
teoCedmPrwaonrrriPment ^ thSSit, therefore, to keep ing a major economic depression.
foreign°eeo-'
*
,nomic.policy
reduced.
been
justment
tem
while advancing the conand ideals of freedom and
aviation, business, • agriculture, labor and all segments of
American
life
in
all
parts of
gram
and agriculture and to create
The
brighter every month. But the re¬
vival
a
a
to
employment:
a
are
day the clouds
economic
the
and
nutshell
is
Administration
Weeks
Sinclair
ness
than
and
measures
over
the number at
work
little business,
prosperity.
up
Here
jump of one
a
million
the
both
because
pass
and
speed
million—
62.1
will
eepts
«
-
at
ployment
demand.
public and the Congress know it is
the strongest new force in our
economic life to make jobs, to aid
month
mate d
to bipartisan and na¬
response
It
survey
for the
of
bulk
the
that
believe
I
perity
entire
aimed at
pros-
those of the national- surprising that, until quite reistic, authoritarian philosophies. I cently, it had become almost trite
take it that we can all agree that to say and believe, as the London
the theme of this series of confer- "Economist" one observed, "When
America. And for that reason it ences,
"Economic and Political America sneezes, the sterling area
has won bipartisan support in all Stability in a Free World," is itcatches pneumonia."
sections of the nation and in both self a,' pretty good statement of
While, as we shall see later, the
houses of the Congress.
objectives.
.
recent decline in American busiIt
is
liberal
in dealing with
Foreign trade policy is so in- ness has not yet produced the
human problems and in assisting
extricably a part of over-all for- dreaded foreign repercussions, all
those suffering from
misfortune, eign policy that we must judge will agree that domestic policies
It is conservative in dealing with
its realism by the contribution calculated to keep us from sneezyour economy and your money. It
which jt makes to stopping the ing or catching cold here at home
is a warm humanitarian program
advance of totalitarian ideologies, are basic elements in any realto give more people more of the
In part that means keeping our- ..istic foreign policy,
good things of life than they ever selves and our economic system
In the interests of keeping the
had before '
'
strong and ready./, In part it domestic economy on a reasonTf
is
sound conservative oromeans winning, meriting, and ably even keel, the Federal Govand program are
record
years.
give their free enter¬
Edgar Hoover.
United States - represents a
relatively large proportion of
their total, national production.
Under the circumstances, it is not
the
may
which will last for helping
the benefits of
America's
to
and J.
Administration's
sive effect upon the economy of
those countries whose trade with
general
a
por this purpose our objeche stated simply.
Our
way
^ve
Communists as Herb aj,m js t0 maintain domestic
get rid of
The
at least in
objectives,
in governmuch or as well
is doing as
Brownell
that no other
individual
or
agency
ment
hower's economic program.
There
Foreign Economic Policy?
is what the Jus¬
Department has been doing.
tice
to
How Realistic Is Our
De¬
oilt-
added to the Justice
partment's list of subversive
fits, making a total of 255.
groups
That, in brief,
depression,
our way to
a
Continued from first page
being denaturalized; 93 alien subversives deported and 286, more
undesirables on the way; 62 new
business revival and states "We are on
a
fall seasonj spurt in business and employment that may
require even optimistic forecasters to revise their figures
upward." Lists accomplishments of Administration and ex¬
presses confidence Congress will carry out President Eisen¬
points to
1
Chronicle.;.Thursday, July 22, 1954
(318)
,
The so-called "new
nistic system.
ril
v
eral " Government's
program
in
look" in Russian economic policy,:; recent'. months ' has' been to
Carlson
has
become
associated yaimed
their figures upward." \
at 7 permitting/ a higher.strengtheri and-'develop the'sopolieies to benefit both farmers with Julien Collins &
Company/Teivel , of domestic consumption, isx called , built-in /stabilizers?. * and
I predict better days ahead be¬
and consumers,.
■
105 South LaSalle- Street,- mem-.* but a part of the calculated Soviet
otherwise seek- to encourage the
cause I believe that the most vitaL
parts
■Foreign aid that alsq promotes bers of the
Eisenhower's our national interest, ;j
;
;
change. He
will pass the "I New teeth in laws to
catch'. er of
Harris,
Communist traitors and spies.
President
of
111;
CHICAGO,
—
Charles
W.
.
economic
program
Congress.
.'
• •
1
.
It
seems
fashion to
too
nothing
doing
and
the Congress
have
enacting
amount
in
when
Senators
hard-working
resentatives
Easier
frequently to be the
accuse
of
studying
address
Secy.
20, 1953: one
of treason and
convicted
person
of
espionage;
Weeks at
the dedication of the New Airport Ter¬
minal
Bldg., Charlotte, N. C., July 10,
leaders convicted
*954.
citizens
dicted
the
under
41
Communist
more
and 28
Smith
subversive
with
./
-/./■•
;
in¬
Act;
26
records
WEST1 PALM
BEACH,
is
neither
an
offer to sell
nor
a
solicitation of an
offer to
?*-*
-stability is so important to in"-terriatfonal^stability'- pomes -from
^7 7 the sheer size of the role which
:
the, United
C-;1,R?J?er ha? ^me a'"
any
NEW
of these securities.
The offering is made only by the Offering Circular.
ISSUE
1,495,000
URANIUM
:only;, about g% , of
Co., Inc., of Atlanta, Ga.
population,
Copies
may
:
STOCK
29 Cents Per Share
of
the
Offering
be oMained from
Circular
■
the undersigned
H. J. COONEY & CO.
,
.
T
.
„
A
s
25
Beaver
Street
New
York
•
4, N. Y.
—
.
Telephone:
BOwling
Green 9-1533
come
to
v;
we
the
world>s
produce well over
world's output of
chases declines;
'- We have put/into effect- the
largest tax* cuts ever-made in a
single year, and are working on
the
first
done
over-all
of
vision
than
a
study and re¬
laws in more
generation," This has been
with
.
tax
our
eye
an
,
—
specifically
_~
on
*
reducing the impediments to pnVarn edoe, Chisholm Adds goods and services.- The Randall yate 1 n y e s.tm e n t as well as to
Commission on Foreign Economic
broadening the consumption base.
(Special to The Financial Chronicle)
],
Policy/ estimates that the United We have a^ the same time purSAVANNAH,' Ga.
...
States alone generates perhaps as sued an aggressive policy of monMeadows is now with Varnedoe,
h
two-thirds or more of etary and credit ease. Tnus far the
Chisholm & Co., Inc., Savannah
wortd'sflow of^savin™
This Program appears to have been
Bank & Trust Building.
has
made it possible for us to quite successful. It is perhaps too
become the world's greatest ex- soon to say that all of the our
With Arthur Krenskv Co. " porter of caoital and the world's worris about recession can be dis(sneciai to the financial chronicle)
" ' greatest credilor nation. In 1952, missed. Eut it is safe to say that
(Special to The financial
exports
amounted
to
over
the readiustments in economic
>
CHICAGO. 111. John G. Park ?^% e0xfP°™ f™4 ™.ld °exDort temp0 which we have thus far
has become connected with Arthur
trade and our imports to about undergone are perhaps no more
M. Krensky & Co., Inc., Board of
15% of total world imports. In than should have been expected as
Trade Building
some of the raw materials fields we move from a booming wartime
g' members of the
our
share of the world total is and Gefense economy to a more
New
York
and
Midwest
Stock
much larger.
stable growt.i pattern.
Exchanges;
While merchandise exoorts at
That the free world contries
present constitute only 5% of our have benefited by our success in
national income, in many of the holding our domestic decline
With King Merritt
countries with which we deal the within narrow bounds can hardly
(Special to The Financial Chronicle)
importance of export markets is be disputed. It is true, of course,
SOMERSET.
Mass.
Manuel
much larger.
As a consequence, that their own improving strength
Rocha has been added to the staff
any
drop in our imports tends has also contributed. That imof King Merritt & Co., Inc.
;»to have a much greater depres- provement is one of the most
40%
_
MINES, INC.
COMMON
Price
Shares
RANGE
FRONT
has
"While the United ■ States has
-
_
buy
States
Flay—-play in the world picture:
n
advertisevient
v
filiated with Clement A. Evans &
,x/r
This
11
Iriiric 'Pl<»m^nf .-A'tFvanc
(special to the financial.Chronicle)
midst since Jan.
our
an
of
1
and
finally here is our record
cleaning Communists out of
on
exceptional
of worthwhile legislation,
an
encourage
And
two
♦From
to
enlargement
modernizations.
reality
Rep¬
and
been
credit
home-building,
,
-of
the
Volume 180
Number 5344
The Commercial and, Financial Chronicle
...
(319)
I
gratifying elements in the
■world
picture.
cession
as
recent
Happily, such
It has, n e v.e r t h e Le s
repeated demon¬
s,r been moreover, had
charged that the one-year exten-s strations of the sincerity of our
sion of the Reciprocal Trade
Act,, concern for their survival and
re-:
have
we
experienced
the pneumonia
has not brought on
nor
the calamity
as
abroad .which
predicted and feared. There
was
several
are
for
reasons
prove_
this...
It
is
our
understood
and
accepted.
In
more
flation has been
currencies
larger
are
quarter of
half
have
any
generally
checked
in¬
and
the
by
During the first
increased
extension
of
relieved
expect
heretofore
fortified
the
some
also
longer
a
Act
might
this un¬
.of
have
foreign
and
trade
that
itself.
must
seas
nature
of
Our friends
recognize
things
somewhat
right
a
friends
negotiated has
expire until it does
terms of the
1954, foreign gold and
assets
that
the
less
this.
over¬
In
allies
another
in
so
or
After
will
to
under the
agreement itself. Our
the
free
world
have,
be
all,
disturbed
and
a
right
fearful
duction and distribution which
of
friendly
to
as
costs
Curtail¬
practices, less
measures
where
na¬
well
as
commerce.
cartel
greater
this
be
welcome
side
faith
free
evidence
at
we
..Returning to
our
Trade"
long-run ob¬
dent, the recommendation
aid, more trade" is clearly a
er
and
desirable plank
economic
policy.
Just
is
"less
military
strength
Our total
the
to
of
of
counsel
realism
we
manner
in
for
for
of
the
their
which
abroad
will have been built up to a point
Continued
on
upon
their
As-a
result
us.
improved economic health
abroad, the other free
tions
are
with
one
•:
trading
world
and
more
another.
na¬
more
.
;
Any larger degree of recession
■here
at
home
dampened
might
well
have
overwhelmed
or
developing
•
stabiliza¬
relieving
these
strong
points
in
the
free world situation.
As it is, the
experience of 1949, 1937, and 1929
has not been
repeated.
our
not precipitated
troubles abroad with
slump
a
round
new
trade
of
the
aid
Western
world
policy has made
and
our
which
in
the
our
past,
steps limiting the recent
economic
•must
:
the
may
be, the
strengthening
the
to
ani
Whatever
causes
contribution
of
of devaluations
restrictions.
complex
Tnis time
has
new currency
decline
clearly
realistic
be
and
here at home,
characterized as
pragmatically
suc¬
cessful.
Major Parts of Foreign Economic
Program
In
its
international
foreign economic
of four
to
Congress
President
our
program consists
major parts.
the
aspects
In
a
message
March
on
Eisenhower
30,
summar¬
ized the interrelated objectives of
'foreign economic policy, citing:'
Aid—which
wish to
we
Investment—which
to
encourage;;.
»;
to
wish
..
.
Convertibility—which
wish
curtail;
we
we
facilitate; and
Trade—which
we
wish to
expand.
In
^he furtherance of these ob¬
jectives.
the
President
mended,
tended
for
recom¬
among
other things, that
the Trade Agreements Act be ex¬
three
amendments
■planned
tariff
authorizing selective,
reductions
rates
period.
J..:
in
existing
three-year
the
over
v
Now* under
r
with
years
our
•
system of gov-
ernmentj it is the President's
sponsibility
to
recommend
to the Congress.
grams
equally
the
Congress
mentations
iadapt
and
to-
programs in
re¬
pro¬
But it
resDonsibility
to weigh these
of
is
tse
1
•
recom-
modify
"
atmosphere
an
♦•
of
legislative, compromise.
The
.President - has
recommended
a
good
to
The fact
program.
Congress has
seen
that
-
the
television,
political
In
terms- of
the
sug-
1-
jgested four-part program there is
little fundamental
disagreement, *
.although men do differ as to the
.ways
and.>as
which
to
7 A* number of test programs are now
being broadcast with excellent results.!
viewpoints
-have traditionally differed
widely *'
should not be interpreted as a i
rejection of the objectives of that
•program.'.
probably been hearing a lot
aboutjcolor television in recent weeks.
77. The Bell System's part in color
something less than the
President's / original
program
in
this area—an area in which
per¬
and
You've
Important national events,
entertainment,
as
and heard
of
can
as
thus be
seen
simultaneously by millions
people throughout the country.
the
the ends may
speed
white
from
as
in radio and black-and-
TV, is to
ca/ry
the
programs
we
do is to
electronic channels
provide the
that
make
this
the
requires additional equip¬
But the basic
ment.
city to city.
What
complex than in black and
white and
same.
Our
field,
ability to
as
in radio,
principles
('■
.*
l
"
-
BELL
comes out
TELEPHONE
Many
and
in this
of
SYSTEM
experience in telephony.
years ago we
building
our
The
our
started designing
Long Distance tele¬
so
used for television
that they could be
as
well.
job of providing Bell System
facilities with the
special equipment
required for color TV has been under
way
serve you
with
Congress itself did not have
enough during the present
to give the' proposals the
-full study which
they deserve.
session
are
-
be achieved.
:time
research and
phone networks
Transmitting pictures in color is
more
The
i
well
fit at this time
enact
sonal
'
*
and
for
needs
public.
the future
<
we
i
now
wish
bridge the gap which the end of
government-supported military
shipments may bring.
increased production, providing a
and
realism
>
to
build-up of industrial capacity in
Europe is paying off in
base
-
token the
give thought
Western
efforts
dependence
of
same
dollars, continuing
their uninterrupted growth since
.the second quarter of 1952.
The
tion
increased
Military aid
million
.broader
ex¬
grant-credit^
to
exports.
dictates that
reconstruction
has,
in
large part, given way to military
aid, we all look forward to a time
.
ex¬
im¬
our
acceptance of im¬
But by the
counsel
for
postwar
when
exports,
offset
an
clearly the
today.
prop¬
aid
as
forms
our
commercial
in) foreign
as
a
our
military aid by
outlined by the Presi¬
as
eXr-
present
statistical bal¬
grant-aid, and
increase
or
ports
jectives
of
other
some
Aid—More
the
ports may be upset.
world.'
"Less
direct
be
ports of agricultural products and
manufactures will then be reduced
unless we replace
of
sincerity, and good
the part of others in the
on
At that time
clusive
on
the
can
between
ance
in
military aid
tendency toward
making for
productivity,
would
reduction
a
of
pected.
re¬
acceptance
of improved distribution methods
country is
dependent
than
of the restraints to free pro¬
some
international
this
too, have
we,
other
the
certain other countries upon world
to
in
their internal
un-. sistance
take a
realistic attitude on the trade.
An
appreciation of that
subject. This program has aiready fact helps also to explain some of
gone on for two decades. No mat-; the slowness and hesitancy with
ter what happens to the legisla¬
which we move toward lowered
tion, not a single trade agreement tariffs.
better
countries
today
reserves.
dollar
term
The need for
most
proud
are
express
world
recognizing
we
seems
and
While
to
war.
America, of course,
opposing views, and time* for ma¬
jority opinion to crystallize and
freeer
certainty,
today better than at
discipline
in
lowered trade barriers all around.
our
time since the
We
derstand
are
interest
there
monetary
they
in
ment
ways-of-democracy allow time for
discussion, time for considering
policy of helping
to
rebuild
the
strength of the
Western European
countries, mon¬
etary
and
economic
conditions
are
that
said
well-being.
thereby left in doubt .as to the
sincerity of our asserted long-run
Conditions Improved
Thanks to
by the Congress, ' will
disturbing to the'foreign
nations.
European Monetary and Economic
-
voted
persist
see
tions
15
many
months, to meet the
of the broadcasters
and
the
page
16
,
The Commercial and Financial
.
.
n
am a member, that we might
consider tariff reductions and the
page 10
j
Oni
How Realistic Is
encouraging of imports on such
items as those in which American
Mftllflff/
£ qreian IlLUIlUHUv
^
WIvY
•
biles—or' those in which the im-
■
ported goods sell in the American
is
we
free
the
nermR
to
should then and
we
everything
do
now
can
easv
earn
thefr^wn ^ay
that
we
That means
must recognize that for
sellers
he
would
we
aLrLve
hnv
m
ouyers
coincidence
of
element
is
is
there
mere
Grantinethat
uranung tnai
totnking about^nternathinal lrade should notTor a moment belittle
to note that in \952 graTn exports or decry-the plight of the pottery
matdv
mately
and
International Security
<ci s
$1.5
annroxi-
were
•
.
cocoa
blending of domesticinterprowith our interest in
wtm^ourinter^t^mter^
peJJed tQ hoard and conserve their
this need more apparent than in
the field of agriculture. Export
markets have long been of vital
importance to our farm population. In recent years we have exdifficulties arise solely because of ported 40% of our cotton and rice,
Industries
often sick one-third of our wheat
and a
As a supplement to the freer
flow of trade in raw materials
and manufactures on year to year
account, we have also a considerable interest in encouraging
private investment abroad. Realistically viewed, the contribution
limited supply of dollars, all sorts
of quotas and government intervention in the free market economy inevitably came about. The
fact is that the discriminatory
controlsrestrict purchases countries
use to which foreign from us
About 30% of the value of farm
marketings in 1952 were depend-
ed international trade is likely to
be modest in any short run. Only
to° approximately6 the Plight of the watch-makers, the
Tmef
SuoerfSv stated clothespin makers, the bicycle
we^w
trad ins bread for coffee' workers, the toy producers, or the
Our^otton exnortc:
something coal miners. But it would be enbillion dollars that vear
tirely wrong to assume that their
cure
ere
ran
over
a
exchanie
exchange,
of
ments
receiled shfn
received ship-
we
we
burlap
tea
hemp, silk,
rubber and tin
diamonds,
aggre-
gating almost the same in dollar
amounts.
Although one hears a
great deal of objection to
the im-
ports, we exported more dollars'
worth of petroleum and petroleum
products than we imported
We
imported some meat products, it
is true, but exported almost the
amount of othpr meat proaamount of other mpat nrod-
samp
same
the free markets while assuring so that chey may have dollars
and re. available
purcnase Ameiican export proa
.
Ecouragmg Private Investment uqts commercially.
When other nations were comAbroad
_
amounted
m pornt
Realism in foreign policy al- ^ ^armer f a e„ved
and especially today, calls 'aiiveiy siaDie income.
and glass workers of the Ohio ways,
hiiiinn
billion while coffee Valley, who find employment cur- for a
while coffee
t /
sizabfe im_ erams
imports
products tailed ou 5 in part to sizable ^
grams
rnnntrv
this
from
imports of those products generally improved conditions in
^y Produee relatively more ad- Europe which we have already
?lea.y Iailea ™ . p. aoreasi 01
There is no necessarv Problems of Dollar Convertibility
foreign competition in quality, meriWJ*y: Anere 13 no necessary
a
™
j
style, and cost, it may well be de- conflict between realistic foreign
The problem of dollar converteided that continued tariff pro- trade policy and the objectives of ibility is but another way of extection is unmerited.
•
our domestic farm policy. But we pressing mentioned—of our have
ought to choose the course which already the need which we buyBlending Domestic Programs With will place maximum reliance on ing enough from foreign nations
"T
^
There can be no question but
who can that the problem of adjusting ourwno can sdves to increased imp0rts in cera
tain lines
a large ;ninrv tn does bring hardship and
ldfpe
sncrific
local segments
in
the
domestic' economy We
buners—buyers
affnt-H
LkeTpXSst"
Imports
()f Increased
„ard
must
we
demonstrated that Amer-
can be
against imports.
seller.
buyer there must be a
every
sterling. We are apparently approaching the time when sterling
which to buy them. foreigners the dollars atmay be transferred into
We have to balances will. This progress—an
choice of helping
earn the necessary dollars with outstanding feature of the free
which to buy the products by world's gains in recent months—
trading with them, and increasing has been made possible by the
market at prices higher than the
competitive American-made prodUcts—for example, briar pipes or
fine cameras. In other cases, if it our own
world markets for our surpluses,
either agricultural or manufacreasonablv tures, and at tne same time hope
nations to to
insulate our home markets
Realistically and ideallv the ansu/er
cultural surpluses. We have the British have widely extended the
choice of giving ■„ the surpluses areas and the products for which
away or what often comes to the payments may be made in scarce
goods already have heavy export same end, "lending" foreigners
markets—for example, automo- the goods or the money with
*
«•
m
■
FhAMAIIilfl
Tn
In
1954
Economic Report, of which choice to buy and hold any agri- Dutch have transfers, their curbs
of spending government on capital relaxed while the
funds
on the
|r
.
,
Lontinuea Jrom
If
Chronicle...Thursday, July 22,
(320)
16
.
.
are
jmpoirts Industriles gotten sack onemird o^ou^ wheav^an^ a Qf
themselves evidence of
their desire to take more United
how appealing
States exports of we will but let
imports, no matter now appealing, marketings in lyoz were aepena
j npriod 0f vears them pay for them. They are eviri
con^onting
the export markets
will its impact upon world pro- dence of a suppressed demand for
cu^e for tbf problems confronting upon me export markers .
^ duction and trade be fully felt. Its United States goods and services.
a depressed segment of t e ec nProbIems of Agricultural
greatest contribution lies in the
Our interest in freer trade and
onjyhut fppl
Surpluses
help which it affords economic freer convertibility is well illusvvnne one cduuui noip uui
growth in the recioient countrv trated in a recent case where the
sympathy for the problems
If there is any problem in the 8rowin m in<5 recipienit counwy shorta o£ dollars has caused re_
ot the workers in every depressed country realisticallv. it is the orob- significance, inOIthe world of to- percussions HjrpPtlv unon Ameritoday to which we must ™"1Jf.
h .
&reai economic
.
directly upon Ampri...
.
competitive
of
elimination
matter
inves'tment
to expand. are in
upon
rnnnot
hpln
^
~
for
face
ud
of
ing
an
.mi
uauc,
action but a two-party
Reliance
on
liance
would
deals
bilateral
simple
on
Coffee dealers in Brazil
could
and
not
taken all of our
have
not
exportable grain,
Instead, they followed the easier,
insieaa, tney toiiowea tne
of selling their
common-sense way
coffee
for
dollars, and then used
and when,
they pmaseu
Our exumy pleased.
wux
the dollars to buy what,
and where
wneie
dim
porters of coal would find their
problems
greatly multiplied
if
they were forced to take cane
sugar;directly
in
cycles from buying them, we run
the risk of cutting off employment
now created elsewhere
in our
economy, let us say, by the export
of 16% of our office appliances,
or the employment attributable to
35% of our r »uu , o.
- « or ™ production of rollingmill machinery. It is a hard economic and political choice. Would
we be better off to undergo loss
of employment among those of
-]
^
.
p
.a
.
tin,
who produce china ware for the
yet, in terms of amounts, that is
substantially what happens.
The
process
is
by placements,
facilitated
simply
the choice is, happily,
afxHpiiltural
oufht
capacity
And domestic market?
If it were possible for us to
look beyond the immediate dis-
payment.
~rp at
0l]r
tariff restrictions, discourage position
those who prefer foreign-made bi- recourse
thought will
also show how impractical a rewould be.
.
by
Bilateral Deals
moment s
a
•
transaction.
Impractical
But,
~
uniiciwai
a
not to
nrndurtivp
10
be in the
our sen interest to
raise tne
where government nonloans and s or Ige-bms
homhe
\a American
^ra -ra
2<a
.
about
international
short
falls
of
.
.
thinking
trade
often
realistic in
our prepossession with the importance of exports and still more
exports. We are rather proud and
only wish that we could do better
than export 23% of our tractorproduction, 12% of our agricultural machinery production, and
I/6th of our production of motor
being
We
Offer
.
3,000,000 Shares
of
corporation which
massestn thesTcountries England bCTaute1' thT^verleLs
£ f^oTmumst mafkets for its producd threaten!
fr0^
J^e hands of would-be
e
^fnameTthe
cessful.-lnvestmenf
contributes to a more effective use large quantities even if we must objective lies also in the expandof the resources of the free world resort to export subsidies and ed fjow
trade freed from diswill contribute to a higher level "dumping" to get rid of excesses trust and international barriers.
and services.
^
10c
Per
Share
on
request
in
I.J. SCHENIN
CO.
New York 5
HAnover 2-5352
of avoiding ill-con-
There
areas
in
ship.
are,
which
a
nevertheless,
trade
can
lib-
The discoverv of those areas
Executive agen-
for the
cies
and
the Congress.
It
was
a
be
minimum of hard-
task
is
Since
much
we
the nayments due to us.
sary
dollars to buy our. products.
risen more
times since then and
1949. Its exports have
than ten
more
than 70% of those Ameri-
as
an
objec-
statement of the
agrisurplus
problem
may
tive of policy,
a
^
-
suggested last winter, for
example, to the Joint Committee
of our outstanding domestic
Certainly our policy
met the test of realism better in this instance had we
reduced tariffs on articles which
can be produced more efficiently
and cheaper in Great Britain than
here, instead of throwing American workers out of employment
in a field in which we have the
great comparative advantage,
one
The fourth point in our mini- industries.
foreign economic program, would have
have been talking so,
about realism
mum
as
outlined by the President, is
wish to encourage currency
Government con-
alternative solutions for our
our
cultural
convertibility.
trols which restrict the convertibilitv of one nation's currency
into that of another directly afing production—in a measure go- feet — and are affected by -— the
ing out of the agricultural busi- volume of world trade and investness—to a level which just covers ment.
These in turn affect the
_
domestic consumption plus an ir- world peace and unitv. In recent
A nummary
reducable minimum which our months the free world has made
Bv way of summary, we can do
customers abroad will take under great steps forward in restoring no better than quote a few senthe worst conditions. We have the currency .convertibility. The tences from the President's forus to recognize the
alternative. We have, first,
import duties which perhaps help
briqg about serious and un^ue in-
eralized with
82 Beaver St.
economic
political sa-
sidered and carelessly selected re-
iury.
Offering Circular
one
standpoint,
our
and
statesmanship
ductions
Price
to
challenge
gacity is
STOCK
:f?om them to racquire. the"netw¬
thirst
able
beyond domestic needs. There are
undoubtedly opportunities of negotiating nonmarket distributions
of these surpluses in various parts
of the world. But our earnest
quest for mere disposal abroad,
outside'regular market channels,
must not blind us to the greater
merits
of private multilateral
port markets.
_
realistic
the
From
the
CO., INC.
^n^ion
If we are going to regard for- can-designed machines, produced
eign "investment" solely as a way in England, are being sent to Can0f dumping excesses in produc- ada the company's largest single
tion, we will be doing more harm export market. Now, we regard
than good. We must recognize Canada as a very attractive marthat investments mean closer fam- ket for American exports. The
ny ties among the nations. We employees in the American plant
must expect that the success} of which was making the product for
our investments abroad will add, export have in effect, been de¬
trade
as
a
long-run solution. not only to the wealth of our placed by English workers and a
"Dumping," export subsidies, im- friends, but to our own national portion of our traditional market
port quotas, exchange controls, wealth and the flow of goods and\iost. By our reluctance to accept
while keeping open the opportstate trading of agricultural, as services.
If we are to achieve imports in sufficient quantity, we
tunities for added domestic ewell as other products are almost th^t. end, we must ardent resnon- have cut the world off 'rom the
oloyment in other industries. We certain to bring retaliation.
In sibibty as the leading creditor opportunity of earning more dolwould not then need to undergo the end they are likely to prove nation nnd behave like a creditor, iars, and by cutting off the supunemployment but might, indeed, injurious to those whose interests not raising our hands against pay- ply of dollars have, in this case,
increase
our
aggregate emoloy- lie, as does the American farm- ment when the borrower tries to increased employment abroad at
ment as well as our flow of goods
ers\ in exnanding the world ex- service the investment and make a cost of declining employment in
UTIDA URANIUM
COMMON
"Economist" tens or an outstana-
important. It can be demonstrated, there is agricultural commodities, pjow back or reinvest part rewards The factory in question came into
however
that anything which produce a temptation to produce on the spot But a the of our fuR producti0n in England in
of living in this country In the
long run there is thus little doubt
but that the best policy would be
to create new jobs for those who
might be displaced. That can best
be done by maintaining an efficient, dynamic, and growing dotrucks and coaches. The substan- mestic economy.
By taking adtial part of our agricultural pro- vantage of the savings available
duction which coes into the exon gpods produced with comnaraport market will be cited later, tively grehter ef'iciency abroad,
But we cannot go about seeking we can add to our own comforts
'
London
outstand¬
constitute an lnaispensiDie part or uji
h
.
rinsed to its United
the market for the farmers prod•
Hnmpctir States production for lack of dolucts. One way in which we can
On the side of the domestic States production to:r lack 01 ao
try to solve the problems of "ex- economy- direc fomgn invest- ^
cessive crops is by setting up "lent serves to finance an imme- purchasers Dy^s ^ Rg
^
government domestic price sup- diate ^crease ™ exports of ma? P
sterling
port programs With their regula- olJr nation is nvestme^ goods. If The name of the company is well
J'stt "' th 1 form of ineyit- htne^f and to accept its place
ame cosis in tne iorm 01 reguia
nnmnarativplv rioh prprfitor known as the largest maker of its
tion, regimentation and °^en, in
^
, bnwpvpr think type of machines in the world. I
the end, surpluses taken off from
,
pxnorts which flow shall not mention the name here
the Federal tax receipts Proceeds from new investments. We must since one ot the sad commentaries
tree market with the Another
investments
of
We must since one of the sad commentaries
wav in which to attack the Drobwelcome the earnings which those on tariff discussions is that we are
Zm Int u, hlin the Cotton investments produce-, over the so easily diverted by special local
Iem would
ottour debtor offersb forget the national
hell? the »;ton
g When e
hardships and
and wheat and pork farmers to
interest or reoav nrincraal good.
.
regain a part of the lost for^gn
must not slam the door in his
The emnlovpes of th^narticiiiar
market for their products. The we must not*n
00mnanv Offered dirertlv from
best way to do that is to make it
y
^p^ducts which he ihrfact that as
we had
easier for foreigners to buy Amer- 1 Po t «
Ph^u^Smak
fafled ^to buV suffrcient pr^ucts
agncultural products.
Traditional
the
an
level of living in underdeveloped ing American
less painful and difficult. It is not
trading
account
in
which the alwaysw to'
con^ ^ctart ican
^
commttments
transactions of private enterprises minds lhat the
indirect
difGiven the extraordinary *ffi- abroad and be ^content,' as we
are cleared through triangular or
fused gains from freer trade are ciency of our domestic capacity to often have been in the past, to
throwing all of the trades into one
of
best
the
unattractive choice of reduc-
Volume 180
Number 5344... The Commercial and Financial Chronicle
(321)
eign economic policy statement of
March
30.
In
that
statement
ism must be measured by the exto which it helps in break-
he
ing down the restrictions and im-
,
"The U. S. stands ready and able
pediments
which
have
countries from covering their
A Weaker
tent
said:
capped the free world economy in
the postwar period. On this basis-
The
I
buy from
us.
inability of many foreign
countries to buy our goods in the
volume we would like to sell does
not arise from
any
for
these
goods.
Instead
grants
are
solution to this impasse.
solution is
trade.
way
economic nation have
,
.
and,
keep
tic
we
must
which
economic
our
Will
as
a
which
part
our
of
our
over-all
highly
it
Its real-
ideal.
is
*
indeed
matter
no
This
al
Co., Members New York Stock
Exchange
Dr. Paul
-
.
sions
sions
have
,been
gigantic
a
finally
to
Jones
have
thorn
draw
there
n
well
may
nAct
cost
80
points
'
the
past
year;
and
there are signs
that
the
pub-
emerge with
to
vporo
companies
drivp wpak
us
eo^e fhrA,,?h
Eiminess
the
irreanlaHties
«.
shipped unprofitably for the past
15 years.
>>
V .../
The first manifestations of
this
new
theory
are
coming
is
as
anti/inatpd
a ii
^°
-
doubling in price in nine
equally
added
over
months,
respectable DuPont
10% to its value* in*
day and succeeded in holding
one
this
rise
to be
which
at
first
anoeared
trading freak of
a
sort
some
The machine tool stocks
long reas the most cvclical
eroun
garded
in the
of
market
instances
eral
have in
number
a
aoDroximated
Electric's
Gen-
performance
in
a
period when fears of cyclical depression have been uppermost in
the minds of investors. Aircrafts
and other
military companies have
fared nearly
While
in these
me
as
well.
of
some
deoressed
ple
1947
im-
is
not
that the
the
on
induced
continent
tion.
On
the
a
contrary,
and
else"
is
Dhe-*
The
axiom is true tbat PeoPle wi.1J
reaffirming his intention of returning to convertibility when it
the
CGnto make the same mistakes
tinue
new
bl4ymS
sources
which
should
mar-
,
who
from their earlier
losses, and
those who
(b)
too
(or noor) to
Zo
go
I
premature
are
return
to
show for
all straws in the wind,
"auuivum
11
.-v.
was
and
capitals'
hoped in Bonn'
other
that
continental
once
more
would be able to help
of
^fconveSble sterling"
^^^^itain witn addftfonfl
leaving Britain wiTh
a" dUC observance
process
submit 4r\
to
Fund
every
chores
and
run
day
as
going
^nn4-/\rv\
nn+il
"automation"
office
well
military
as
and
our
until
to
aiiv
our
a
M.
curities
Schreder of
envisioned
Group Sea
^;;'rial"Average's""during^"tttf
mqusinai
next
will
be
large
1
num-
Averages
uunug
uic
decade, I doubt whether he
expected
confined
Electric.
tlie improvement
to
du Pont and
to
be
General
and
the
Federal
Reserve
System, after the depletion of the
Sterling Area dollar reserve.
possible
doublinfi of 295 in the Dow-Jones
®
industrial
by pushbuttons. This automa-
tion should stimulate
quietly toward its destination.
When
household
operations
as
fc'al Prcpneties, quietly backs a result of the support that consterling
wou^ receive
and
after another is
nivim44-
additional
uncovered dollar liability
market boom.
and fills wading for the outlook vertible
important factors supporting this to clarify and then moves
solidly
(1) The "Second Industrial Revhas begun, wherein one
they
themselyes
an
orafnUreS?ommonTerrs theSb7 mark6t' W"h
converti-
young
Brussels
These
the
on
loan, leaving Britain with the big
through the dollar liability
and nothing to
were
,
1929 a
debacle.
^
olution"
most
government
reluctant
to
would
be
the
reverse
moves
already made towards the
liberation of sterling. On the
other
hand, it is likely to be even more
to
proceed
further
un-
genuine imprbveconditions and prosa
warrant further progress,
Dillon, Read Gronp
effort
;
Colorado Utility
Dillon, Reed & Co. Inc. headed
an investment
banking group
to
possession
of
,
Offers Securities of
which offered for public sale
yes-
terdav^JulV2lTSSiToOO^OOol 35*
J?™
first mortaaae Dine line bonds
1974
d
sh
of
f10P00P0
dollars, which-.
cumu^e
thus
poUticaUy^s
due.
f'
5%
preferred stock,
VGalffc0°f ^ C°l0rad<>
economically.
The
bonds
are
priced
at
100%
Fortunately Mr. Butler is deter- and accrued interest.
They are
mined not to allow himself to be subject to optional
redemption
rushed
into
premature
friends
enemies.
and
converti-
allies
or
prices
scaled
from
103V2%
if'
during the 12 months beginning June 30, 1954 to the principal amount after June 30, 1973.
by
expectations
He will
of
called
the
our
doubtless heed
The special
sinking fund
tion price is par.
'
the lesson of the present
weakness
0f sterling,. which indicates
was
a
redemp-
what,.
The preferred stock is
priced
on an incomparably, at
...
$100 per share and is redeemconvertibility were: able at prices ranging downward
nA
existing
strong
u
conditions..from $104
temptation
until recently to take
advantage of
the persistent firmness of
of the influx of
30,
1959
per
share through June
to
$100 per share after
1974. After July 1, 1959,
preferred stock is subject to
June 30,
sterling,
the
and
gold month
after month, in order to take the
annual
an
sinking fund of 4% of
the number of shares
outstanding-
Indeed
to
A
*
.1
«>rou^
nQt
even
secure
Moscow
was
much-needed
*
i
•
,
^
A
1!
,
.
hoping
dollars
—
converting sterling
generally
was largely due to the. pany. .Proceeds from the sale
anticipation of convertibility. This, these securities will be used
vertibility
realized
that
ti
1
~
It is
most
the
appears
sterling
to
the
become.
acquired
Yet
is
strength but
not
likely
sterling thus
a
is
source
of
pro:-
e
a
0f which would warrant
The
of' balances
presence
quired for the
ing
them
2,ltdearly' mile natural gas pipe line syste.J.
The major portion of the corn-
an
convertibility.
ac-'
purpose of convert-
into
dollars
is
apt to
false feeling of security.
Their "withdrawal may entail some
loss of gold during the coming
convey a
Pa.ny's gas requirements
are
op¬
tamed from company-owned
re-
serves,^estimated to be 2.75 triihcti
Publc feet of gas,
in
lexas.
n. *
company s principal deliveries of
Sas froafl its transmission syste. l
are made to Public Service Co. of
months, but such losses would be
a blessing in
disguise in that they C°lora<to and its subsidiaries kf
would bring to the fore the reali-* distribution in Colorado ai.l
ties of the situation.
^
be
no
longer
less
ment
so
pressure
in
favor
Once sterling"
firm there would'
the
on
of
an
govern-
^stnbuUmi m color ado ana
southern Wyoming.
P^G1Pal dt;;
Series of gas from the company 3
^?ld .sys*?m are ° ^a p^a„ 2r
^ip^ e .9,om^np
I
early
con-
vertibility decision.
AdivI
Meanwbila tbe p!f(30, 1954 the company had total
in
Luv
nosition to teuv operating revenues of
l ".
0;ftnQQ
^'^commodities and pay with and Det lnc0me °£ $3'250'9"arp
a
j
M
te ,ing has been further extended
King Merritt Adds
by the resumption of free dealings
{"^"iTin^he
mod'ities>
British
(Special to The Financial Chronicle)
case
of other
com-
the authorities asked the
engaged in such
firms
DETROIT,
has
Merritt
operations not to sell dollar sugar
for genuine commercial
vs..
purposes.
thu?
This
wdx7
may
or
tb5iv
may
not
ling for the purpose of their
sale in the Dollar Area. But
tainly will rot prevent
re-
^ c®^non-dollar
King
Elmer
—
become
&
J.
affiliated
Co., Inc.
JQS# Faroll t,0 Admit
Tint
prevent
Mich.
Beversdbrf
with
except
belong to the area within which
sterling is at present freely conbetween the countries
The; balance of the
ceeds, together with other co
porate funds, will be used for ti
a source
be
countries behind the Iron Curtain
as
years.
of weakness. " company's >054 construction
pr )grave error to re- gram, which has been
budgeted ,'X
gard the rising figure of the gold
approximately $13,800,000.
reserve
as
the barometer of an
Colorado Interstate Gas Cominherent improvement the extent
pany owns and operates a
it would
the acquisition of dollar
commodities with the aid of ster-
vertible
of
in
stronger,, strtiction program of the past two
the demand for
great
a
In 1947 all and sundry repienjsbed their dollar reserves out
of the proceeds of the
big dollar
recovered
"uc
conclusion:
as
return to
bility.
,
have
time
same
part of those who hoped to derive
benefit at Britain's expense from
a
,
those
the
There was, however,
power deaj of wjsbfui
thinking
here and the end of the bull
(a)
at
becomes practicable.
between
emerge
difficulties
as
!n the future that they have made
in the past' the,P
would
fashioned stock
There are several
this
foreshadowing early convertibility. On every occasion he stressed
to
old
already
too far towards convertibil-
The
ingly .°bvi0lis that the^.?an beAUn.° of gold
questlon
of
b}fme for their ^appointment. In
the dividend
It
is
not
surprising that such
acting as bellwethers,
showing what some observers may events are upsetting to those who
oservers
one ua-y
day .UCBt""c as the incipient hold to traditional views that the
describe
an
dollar
plunge of convertibility in the be- on
July 1, 1959, at the sinkijg
stored. They entertained sanguine lief that
sterling is now strong, fund redemption
price of $100 per
hopes about the chances of being
enQugh ^ withstand the strain It share>
•
' •
F
aj-,]p
Hn ca in tho
nk.7.'nnn
able to do so in the oariv Qntiimfi- is now obvious, however, that t-v..-.early autumh."
tv,i^
the
This
financing represents the
^0^ thuat.11 is becoming increas- firmness of sterling and the influx" first public financing of the corn-
nrires^neTr
are
ginning of
of
expense.
fty.
of
aware
re-
eveIY°ne claims to remember so
vividly'is now 25 years behind ,usAssumin£ that the old speculative
appear that these spectacular
per¬
formers
her
gone
reluctant
the
on
The
would
There
peo-
the moment convertibility
a
correc¬
it
are
supreme
amounts
restored, in
early
many
„
opinion,
our
for
re-
stock snl ft
ena
falrness to Mr. Butler, none of
s>iook. spin.
bls P"bbc statements on the subLast but not least ^ is w.e11 ^ect could be interpreted—or even
to bear in m?nd tbat 1929' wbich reasonably be misinterpreted—as
and
general market is
overbought and due
a
maievoioin
malevolent
»»•-
largely
is
where to buy and hold
sterling, so
as to be able to acquire dollars
striking ab-
levels
on'a 7?7VncreaseTn
,,
seems
on
sterling
our
"flgSKfr.
nomenon of iscarcity in 1"red chins"
ot scarcity m
rea cmps v
far, the im¬
portant conclusion, in
of
7
these
enthusiasm
star performers
to have gone too
at
ment of the
bility either by the impatience of
monUl£i.J?® anticipation of
varied convertibility
ket:
the
'
wPakar
a
sterling0011"'
convertibility
The
embark
dump their goods
\au
bolders otnst®rling about the dG~ would happen
ferment of their hopes of early larger scale if
one
a
aro
-
^uttheAe
^
can
is
burden
purchases
less and until
con-
There can be little doubt that
the moment
sterling becomes convertible
the
Soviet
Union
and
other Communist countries would
well
sponsible for the decline—the disappointment
felt
overseas
by
^nnemiefbinkln^
a*ine
convertibility,
certainly assist them
Hniiar
There is,
however, another
--o
»v,vv.,«, auUW.ti
L
sinee
Britain
full
the circumstances it
may be
found
that Britain has
this aspect of the problem. '
rnmmnditiP*
Portantfactorwhich
par-
"JZ
iturns^toward expect
more
logically
dollar
ailf 11r.nn
-
new
investment theory to
place the crumbling idols of
cyclophobia which have been wor-
.
tone of
These comhowever have for the most
anie
nasf
sume
ble
«re
wh;rh would arrnunt for
.
safer "outlook
or
nf
rpninrompnt«
„c
investor*
J,1. fn larrh o^
ter
e
common,tips
„rrnp
,,„1°
cyclical" industries has tended
for
t h
nor-
Purchase AVtPn+
of dollar commodities.
T
The investment attitude to-
secondary
the
up
vertible pound, would be
granting
assistance not to Britain but to the
Sterling
cause a pressure on
sterling. Area in order w
7w Wuu to
acquire convertia^uue wuvau-
nnrPhasP
x^ven
(3)
^
risen
shortly going to
m
"
ward
Indus-
trials
B. K. Thurtow
+
riro^r
we
in
for foreign holders of sterling are
likely to use their holdings for the
Even li 11 does not mvoive
if it uues noi involve
in direct
war, the defense line
wo
be¬
ginning
in
of
k
♦
the Federal Reserve
System
even
when trying to bolster
fiou,s commodities ,n Rr.tt.rn .« large
in I
y
accentuate thls Pressure, they
Preservation oi
"!?
stand taken on equivalent
Poland
the
us
false
Preservation^
the
a
1939.
Aifos.
..
he taking with
rdarkness Sin °f «100.000»°
the
is
of
them,
aoDear to
to
qn5fn
arawn
drawn
from
S
regard
mistic conclu-
move-
-
the U
is
influences,
Crop
Einzig
ments
..
season-
autumn
the
and the pessi-
a
is partly
due to
or
analysts have ber of industries over a
period of
insight (or perhaps the-several
mally
years.
candor) to observe thai the busi(2) The stand which Britain and
ness
irregularities ... «. past year
of the
nous
lie
official
prolonged
spell,
Few economists
had
mean that in
practice the
International Monetary Fund and
appre-
weak
By B. K. TIIURLOW
&
the
-
History Repeat Itself?
Talmage
reversed
feel
foreign
widespread
pect will
feeling that it Communist Bloc. It seems doubtis
likely
to ful whether official American cirexperience a cles, when urging Britain to re-
how
*
:
Once ster-
area.
would
early
limit of $2.82.
There is a
fall short of being
may
belonging to that
ciably below
its
to
commodities
clined
the
become
the
ling
becomes
fully convertible
there will be nothing to prevent
these countries from converting
their? sterling into dollars.
This
For the first time since the
policy must
program
realistic,
much
has
liable
spring it de-
many
responsi¬
accept this domes¬
we
in
higher
level of two-way trade.
LONDON, Eng.—Sterling devela distinctly weaker tendency
during the second week of July,
today be formed, we are inevit¬
ably driven to the conclusion that
policy,
test it by the
degree to
results
in this
it
If
tradition
milieu
this higher trade level."
judging
great
a
foreign
anticipation of full con¬
vertibility.. Now that this flow
In
oped
pace with our new
bilities.'
essential to the attainment of
In
will,
you
pressures to overcome in order to
from restrictions and
controls and
the increased efficiencies
which
arise from
expanding markets and
the freer play of economic
forces
are
if
gold
the
funds in
would benefit Moscow and Iron Curtain
countries.
upon
Sterling Area
Hitherto
effect of
this partial
convertibility has been
offset by( the influx of
regarding its early convertibility. Holds sterling
convertibility
comparatively recently.
We
have, moreover, a long tradition
Greater freedom
.
come
the
to
reserve.
Commenting on weaker tendency in sterling exchange, Dr.
Einzig points out this is due not only to seasonal influences
but to disappointment felt
by overseas holders of sterling
aceom-
us
The
...
have
losses
By PAUL EINZIG
in less time.i
more
grave
Rate Looked For
conclude that
On the other hand, the world
changes " which have* made the
United States the world's
leading
higher level of two-
a
would
program
plished
it
lasting
no
must
we
great deal more can and should
be done. It may be that a bolder
arises out of the
inability of these
nations to pay—in dollars—for the
volume we have to sell.
"Dollar
sure
a
lack of desire
....
am
en¬
tire requirements of dollar com¬
modities with the aid of
sterling.
This factor alone
may entail
handi¬
to produce and sell more than the
rest of the world can
17
Joseph Farroll & Co., 29 Broad¬
way, New York City, members of
the
New
York
Stock
Exchange,
p,
b|*
Greenberger
G
^
to
Eugene
partnership
partnership.
.
48
LETTER TO THE EDITOR:
Morgan Stanley Group
Sees Easier Credit Ahead
Hugo Steiner, President, Berkeley-Stemerj Inc., recounts
developments in the money market, and their impact
commercial bank rates and prices
will continue in
an
of
era
interest rates
Acceptance Debs.
re¬
By GEORGE F. BAUER
Representing the largest cor¬
porate offering to come to market
on
of government bonds. Says
this
far
so
prolonged easy money and lower
are still coming.
year,
General
of
two
Vice-Chairman, United States German Chamber of Commerce
issues
new
Motors
Thursday, July 22, 1954
European Countries
Nearing Convertibility
Offers Gen. Motors
cent
we
\
.
The Commercial and financial Chronicle...
(322)
Mr. Bauer maintains
Acceptance
Germany, Switzerland, and England
are
•
moving toward sound convertibility with their currencies debentures, amounting to
$150,000,000, were offered publicly
redeemable in gold for all holders, and asks question: "Shall ;
Editor, The Commercial and Financial Chronicle:
yesterday (July 21) by a nation¬
Europe rather than the United States be the leader?".
wide investment banking group
"A brief look at the world of billion; it is unofficially reported
comprising 235 investment firms
Developments
in
Germany, tions," the United States dollar
today indicates clearly that money that this time he will have a more
headed by Morgan Stanley & Co. Switzerland and
England seem to will need to become a title for all
can no longer be
thought of as the receptive Congressional ear.
An issue of $75,000,000 carrying indicate that those
countries rather holders and not
drab, utilitarian handmaiden of
discriminatorily
March
of this
year
saw
the an interest rate of 2%% due July than
United States may take first for central banks
economic so¬
only.
;f •
prime rate (interest the best name 15, 1964 is priced at 99% and
actions to put
ciety. Instead
If these four important curren¬
borrowers are
required to pay) accrued interest to yield 2.865%
their
curren¬
it stands forth
cies were convertible on basis of
reduced-from 3%% .to 3.% by the to maturity. The $75,000,000 of 15cies
on
the their
as
a
kind of
New York City commercial banks. year 3% debentures due July 15,
respective titles to specific
gold standard.
genie with
This was a belated recognition of 1969 are offered at 100%% and
quantities of gold, a great lift to
Corp.
D
tremendous,
the
ail-pervading
their Reserve requirements. Part¬
powers
ly due to the further reduction
put into effect June 21, 1954, and
partly
because
the
traditional
shrinkage in business loans in the
initial six months was very large
(about $880 million as compared
over
economic
good and evil.
.
.
Nothing is
.
evident
more
than
the
for
need
sound
a
knowledge
is
with $480 million in the first half
of 1953) another shading of the
of
if one
money,
world
substantial
the
which
in
Rollin
of
Modern
opening chap¬
Thomas'
G.
are
before.
ordered
duction
in
important re¬
requirements
an
reserve
to be maintained against
necessary
when busi¬
activity ordinarily soaks up
ness
the
under
prime
from non-bank
age
term loans
banks
was
with
the
that
prevailed
tem.
their
requirements
22%
20%
to
The
on
rate
June, 1954.
This
against demand de¬
the
fiscal
Proceeds
some
will
July 15,
on
debentures
which
have
due
1,
April
for
called
been
on
which
have
on
called
been
July
for
at
1954
29,
be added
was
GMAC
tion
of
tured
prices.
finances
June
on
the
15,
distribu¬
products
new
manufac¬
by General Motors Corp. to
dealers
for
retail
indicator—91-day
new
to
—were
from
13%
all
country banks
12%.
Reserves
to
quoted
in June of
1953
against time deposits in all three
bought
classes
anticipation
institutions
of
duced
from
deposits,
6%
5%.
to
broadly
seasonal
are
fluctuations;
deposits
are
Freeing
are
less sub¬
than
more
create
all
base
a
to
move,
Governors
billion
$1%
for
announcing the
ticipating
other
considered "demand."
pansion of $7V2
of
"Time"
irregular withdrawal and
to
will
re¬
speaking,
thrift accounts which
ject
were
credit
ex¬
$9 billion.
stated
the
it
"estimated
In
Board
was
an¬
demands"
and this action "was taken in
con¬
formity with the Federal Reserve
by
able
the
reserve
the
funds
essential
of
the
and
nomic
of facilitating
eco¬
growth."
In addition to
bank
reserve
reducing member
requirements,
the
influence pf the Reserve
has also been directed to¬
enormous
Board
ward
the
Treasury
Bill
quired
Market;
ending
System ac¬
approximately $750 mil¬
lion
bills.
in
two-month
a
June
30
in
the
period
Reserve
This
combined
ac¬
tion—loosening reserves and pur¬
chasing large quantities of bills
weekly
to
is powerful "medicine"
—
assure
an
and
money
abundant volume
credit
for
all
of
con¬
tingencies.
It is
that
a
the
borrow
heavily
very
during
coming months of the
tax collections
are
year
Relatively
the
when
an
increase
in
the
debt
ceiling
limit that presently stands at $275
purposes.
tax
mobile
1
that
the
to
school
will
we
of
the
financing
continue
in
an
lower
rates
era
still
1
'
■
.
■
comprised
97%
annual
volume
of
the
by
receivables
■
:•
;
.
.
.
Switzerland
.
.
officially
is
at
set
203
As yet the
.
.
.
main
office
in
Bev¬
Hills, Calif., at 232 North
Canon Drive, it was announced by
B.
Gerald
Cantor, President of
and
not
obligated to redeem its
all holders; it is, how¬
ever, required to hold the Swiss
franc close to the legal rate by
purchases and sales of gold in the
open
markets
within
definite
limits prescribed by the Federal
for
notes
Once
Government.
bank
is
obligated
national
the
redeem
to
its
associated
two
the
company
for
George N. Lewis has been
ap¬
pointed Director of Research by
an
Mr. Lewis
analyst for
Co. of
the
was
E.
formerly
W.
Smith
Philadelphia.
-Price6-30-54
Offers Baltimore
full
50
coins
is
bullion
working toward—
gold standard—but
LAKE
Leonard
to
title for all hold¬
2,488 milligrams of gold.
a
Once these actions by Germany,
Opens
Switzerland, and England
CITY, Utah —M.
has
pound sterling
ers
formed
M.
C.
series
Z,
July
due
100.65%
accrued
and
15, 1989, at
interest, to
The
group > was
the issue at competitive
2.97%.
yield
awarded
sale
19
July
on
of
bid
a
100.129999%.
the
Of
net
from the sale,
proceeds received
approximately $24,-
fund
circulated by fall of
Switzerland
a
ing mortgage sinking fund bonds,
be
to
this year, it may be assumed that
not
headed by Halsey,
Stuart & Co. Inc., yesterday (July
21)
offered $40,000,000 Consol¬
idated Gas Electric Light & Power
Co. of Baltimore 3% first refund¬
group
900,000 is to be used to redeem
the
outstanding series: Y 3%%
gold
franc
S
Utility Bonds
A
come
to
pass, three important currencies
will be on a basis of the only kind
first
refunding
purposes,
struction
sinking
mortgage
balance will
the
and
bonds
be available for general
corporate
including proposed con¬
Continu¬
expenditures.
ing growth in the number of cus¬
tomers served, and increasing de¬
electric and
for
mands
gas
serv¬
ices require
the company to make
substantial expansions of its fa¬
cilities.
is
It
that
estimated
the
construction
of, new plant and
equipment and the replacement of
existing facilities may require the
approximately
of
expenditure
$30,000,000 in 1954 of which ap¬
proximately $6,000,000 was ex¬
pended through March 31.
The
bonds
the
at
will
redeemable
be
option of the
at
company
prices ranging from ,103.65% to
par and by operation of the sink¬
ing fund at prices ranging from
100.66% to par.
The company,
incorporated in
1906, is primarily engaged in the
production
and
distribution
of
electricity and
gas
within the
State of Maryland where all of its
properties are located. The com¬
Leonard & Associates with offices
of
in the Tribune
designation, namely, convertibil¬
ity achieved through exchanges of
pany
titles to definite quantities of gold
with
years.
the firm.
C.
and
$37,120,000.
M. C. Leonard
SALT
will
specialize in
the purchase of businesses and in
"special situations." He has been
interest
can
with dictator¬
Switzerland will be on
standard. With new
and 25 S franc gold
market,
a
company
before
income taxes
the firm.
Ludwak
income
enterprise if
socialism
by
Halsey, Stuart Group
milli¬
national bank
Lewis With Cantor
the
adulterated
.
the
'
erly
Private
economies.
not
.
Ludwak to Coast;
office to
of individuals
everywhere and by contrast ex¬
pose the shortcomings of managed
systems.
Convertibility of
This statement seems to imply
that the D Mark will become a currency through the gold stand¬
ard will strengthen private enter¬
title soon for all holders to 211
prise in this contest by taking the
milligrams of gold.
If the dollar were redeemable dagger of socialistically corroding
at $35 per ounce of gold, it would, money units out of its back.
under the metric system be ex¬
changeable for 889
milligrams
of gold.
receivable
"
itiative of millions
ship
$2,856,317,711. Notes and bills borders to obtain for every $35 an
held by the company, amount of British currency suf¬
which stood at $528,417,941 at Dec. ficient
to
obtain
one
ounce
of
31, 1948, increased to $2,331,275,838 gold, provided the transaction in¬
at Dec. 31, 1953 and to $2,551,- volves $14,000, or 400 ounces of
519,519 at May 31, 1954.
gold. Certain foreigners are con¬
GMAC's consolidated total op¬ sequently being given the right to
erating income rose from $60,- exchange their money for British
BEVERLY
HILLS, Calif.— 838,000 in 1949 to $185,054,000 in currency and obtain gold for it.
Charles Ludwak,
Vice-President 1953. Income before interest and Britishers are not
yet given that
of Cantor, Fitzgerald & Co.,
Inc., income
taxes
for
1953
was
privilege.
With improving gold
underwriters and distributors of
$125,313,000. For the three months reserves, it may be assumed that
investment securities, has trans¬ ended March
31, 1954 total op¬ Great Britain will work toward
ferred frbnr the firm's New York
erating income was
$51,325,000 the final objective of making the
6-1-53
jacent territory. The area served
with electricity contains approx¬
imately 2,283 square miles and
Building to engage
in the securities business.
Samuel Friedman
Friedman
is
engaging in
a
tion
secu¬
Broadway.
6-30-54
Price Inc.
2% % bonds due__.
9-15-59
95.14
101.30
3.12
1.32
6%
12-15-62
92.00
101.16
3.24
1.96
10%
2V2% bonds due__.
9-15-72
89.28
100.00
3.21
2.50
10%
the
3%% bonds due__.
6-15-83
98.22
110.16
3.32
2.65
11%
fices at 261 Fair Street.
KINGSTON,
N.
Morris is
securities
Y.
—
Chris¬
engaging
business
from
in
of¬
units,
money
this kind
countries
by
even
alone
Ac¬
one
would
of
be
International
transactions
range
may
of
predomi¬
nately be expected to be specified
in
one
any
of
such
To
rency
be
developed.
considered
for
Citv of Baltimore and ad¬
has
with
275
"prime cur¬
international transac¬
estimated
an
contains
gas
square
timated
totaled
area
population
year
an
es¬
of
about .1,-
1953
operating
"
.
the
of
<
served
approximately
miles and has
300,000.
For
population
the
1,550,000;
"gold-titled
currencies" regardless of countries
in which
furnishes electricity and gas
in the
about
encouraging.
long-term
Christopher Morris Opens
topher D.
of
these
rities business from offices at 219
-Yield-
6-1-53
convertibility that merits that
implied in the
Opens
MONTICELLO, N. Y.—Samuel
2V4% bonds due__.
development continued."
was
■
i
World trade under private en¬
terprise could then display its tre¬
mendous advantages through in¬
win in any contest
rather toward a full fledged gold
in¬
coin standard.
creased
from
$3,028,812,542
to
England recently allowed Amer¬
$6,697,832,386 and for the first
five months of 1954 the volume icans,
among others, outside
its
that
are
nomic
eco¬
electric
acquired
thought
of prolonged easy money and
next
notes into gold and vice versa for
receivables purchased, the balance
all holders at the official rate and
representing
other
products
of not
simply to keep them in a fixed
General Motors, including Frigrelationship to gold in the open
de¬
idaire
scribe
by
August jf the
favorable
of the company's dollar volume of
June,
sold by the
By
a
of
sales
the first five months of 1954 auto¬
This writer continues to sub¬
ket.
light.
Approximately $10 billion is the
anticipated Treasury need.
Mr.
Humphrey will also again request
for
corporations
finances
and
instalment
accompanying table graph¬
refrigeraljors and
other household appliances, air
ically
illustrates
the
dynamic
upsurge in the price of representa¬ conditioning and commercial re¬
tive government bonds within the frigeration equipment, heating
past year as a consequence of the equipment and Diesel equipment
modification of the Treasury's at¬ for railroads and other industries.
During the five years 1949-1953
titude regarding the money mar¬
Mr.
generally recognized fact
Treasury will have to
eagerly
were
resale
General Motors products and
used units of any make. During
The
..
economy
and
cline of 1.80%.
avail¬ somewhat
required ahead.
needs
Treasury Bills
a
2.416% basis
1954, these bills were
Treasury on a 0.616% yield,
System's policy of making
for
on
dollar
basis
Crg. F. Bauer
grams.
dealers'
at
Ger-
"cur-
KHpfjEfl rency would
In
redeemed
The most sensitive money market
and
the
and
to
1954.
posits; at the five smaller Reserve
centers they will be cut from 19%
18%
range investments under private
enterprise in most parts of the
Hamburg world.
man
the
of
sale
the
of
as say--
working capital.
greatest
$87,500,000 of 2%% deben¬ progress has been made toward
tures are part of an issue of $175,- the
gold standard. The gold con¬
000,000
of
debentures,
half of tent of the Swiss franc has been
startling and dramatic swings
security
re¬
world trade could be given as re¬
sult of encouragement of
long-
The
since the
brought with it
government
if
debentures will be used by GMAC
for the payment of $87,500,000 of
policy
1953
of
summer
in
principal amount
which
tration's
102%%
re¬
recently
that
1966.
1965
of 3.45%
June of
rate
during
at
deemed prior to July 15, 1955 and
thereafter at prices decreasing to
102%. The balance of the proceeds
compares
average
redeemable
are
prepayment
The about face in the Adminis¬
lowered from
15,
July 29, 1954 at
100% and for the payment of $40,000,000 of 3%% notes due May 1,
aver¬
ing
prices decreasing
principal amount on July
1962. The 15-year debentures
redemption
short-
ported
in
the
to
is
nauer
and thereafter at
1955
1953.
effective Aug. 1.
New York and Chicago, the two
central Reserve cities, will have
yield approxi¬
mately 2.97% to maturity.
The 10-year debentures are sub¬
ject to redemption at 101% if
redeemed prior to July 15, 1955
2y4%
by the New York City
3.25% during the first
This action, which had been
rumored for several weeks, will
6,800
borrowing
sources.
interest rate charged
half of
the
by
be fully
the
Ade¬
r.
accrued interest to
latter half of the year
member
banks of the Federal Reserve Sys¬
deposits
in
"Our
On June 21 the Federal Reserve
year
seasonal
materialize
and
Board, for the second time within
a
a
bank credit,1 the prime rate may
Monetary go still lower.
Corporations are
truer today than ever presently
borrowing
short-term
accommodations up to six months
Banking
System"
These
live."
we
to
Should
for
demand
fail
loans
sentences from the
ter
rate appears imminent.
Hugo Steiner
under¬
to
stand
Jujy, 1953 cut of 2 points in
$98,184,633 and net income
amounted
to
$10,636,735.
-
Volume 180
Number 5344...
*ne
Commercial and Financial Chronicle
(323)
EARNING
EARNED
POWER
AVERAGE1
ON
19
20
INVESTED
COMPANIES
CAPITAL
|
~
,
.
PETRO-CHEMICAL
PRODUCTS
INVESTOR
NATURAL
f
R. B
INDEX
APPRAISAL
GAS
OF;
INDUSTRIAL PRODUCTION
16
OIL
420
193940 41 42 43 44 45 46 47 48 49 50 51
STOCKS
INDUSTRIALS
521953
Standaro Research Consultants
CHEMICAL
PRODUCTION
INDUSTRY
EARNING POWER
GROWTH
EARNED
ON
AVERAGE
3
SYNTHETIC
INVESTED
CAPITAL
COMPANIES
ORGAN ICS
INVESTOR
APPRAISAL
CHLORINE
420
—
f. R.B.
'INDUSTRIAL
INDEX
OF
INDUSTRIALS
—
PRODUCTION
13
-193940 4t 4£43 444546 47148 49-50^-521953
ttmomw
marchconsultants
—————
——
—■—:
193940
CHEMICAL
STOCKS
42 4344 45 4^4748.
49^59 51 :-521953
The Commercial and Financial Chronicle...
20
(324)
Continued jrom page
Thursday, July 22, 1954
19
INDUSTRY
UTILITY
ELECTRIC
EARNING
EARNED
ON
POWER
AVERAGE
INVESTED
CAPITAL
ESTIMATED
INVESTOR
KILOWATT
APPRAISAL
HOURS
PRODUCED
420
F. R.8
INDEX
INDUSTRIAL
OF
PRODUCTION
19
Standard
INDUSTRIALS
ELECTRIC
UTILITY
STOCKS
Research Consultants
TELEPHONE
BELL
PRODUCTION
INDUSTRY
SYSTEM
EARNING POWERI
—i—I—i—I—r1
GROWTH
EARNED
TOLL
F. R.8.
INDUSTRIAL
INDEX
ON
AVERAGE
INVESTED
CAPITAL
MESSAGES
INVESTOR
OF
APPRAISAL
PRODUCTION
420
TELEPHONE
CONVERSATIONS
AT
1939 40 41
42 43 44 45 ,46 4 7 48 49 50 51
Standard Research Consultants
,
INDUSTRIALS
52 1953*
I
T
COMMON
STOCK
1939 40 41 42 43 44 45 46 4 7 48 49 50 51
521953
•
Volume 180
such
rates
will
as
return
a
earn
Number 5344
The Commercial and Financial
...
it
permit
to
invested
convenience
that
the
time
same
eral
the
of
of
part
the
in
the
dertakings which
corresponding
6%
equal
at
made
same
country
other
in
vestments
public
being
generally
and
un¬
ment
in
applying
it
is
clear
that
the
who
those
advocate
of return
the return
ties
or
the
on
the basis of
basis
of
of
money"
the
of
so-
the
country
and
is rapid and
to
is always
adding to his modern farm equipment:
I realize that I have not offered
participate
remained
money and
any short cut or easy approach to
the problem of
shown
as
relatively
the
on
almost
two
and
one-half
times,
stocks, across the
than doubled, electric
industrial
and
board, more
utility stocks increased only 33%
Telephone stock
actually declined.
and the American
other
cular
to
reasoning and
determination
a
return
of the
required
as
Bluefield
not lead
can
The last chart of the series
■
under
the
decision.
riod
from
shown
of
rate
1939
industrial
resent
sumer
dustry.
the
greater growth
even
in demand for natural gas and
petro-chemical products.
In the
chemical industry there has been
tremendous
a
basic
for
for such
specialties
products
industries
and
stocks
"growth"
characterize
utility
their
stocks.
industry
The
the
and
telephone industry have also ex¬
perienced a rapidly growing de¬
mand for their services.
growth
been
for
above
with
experienced
for the oil
growth
The rate
services has
and in line
their
average
that
growth
industries.
I
have
these industries
the
by
chemical
compared the
and
production
in
of
each
of
regulated and
—
nonregulated—in a series of charts
and compared the trend in each
with the
trial
of indus¬
over-all trend
production
It
the
as
by
measured
of
economic growth, the electric util¬
of
point
view
ity and the telephone industry
category
same
the
as
are
oil
1953.
Also
which
level,
Production for each
industry is
shown in relatives—1939 equalling
100.
In
1953, the general level
production
above
1939.
crude
production
natural
gas
petroleum
the
and
in effect subsidized
Substantial
the
In
was
oil
139%
industry,
87%,
up
production 240%, and
chemicals over 300%.
was
was up
475% and syn¬
thetic organics over 500%.
electric
tion
utility
industry
electric
of
Now
I
am
cal
and
oil
In the
produc¬
power
was
up
messages
were
109%
Clearly
growth
up
247%.
the regulated industries are
industries.
But
the
investment
electric
characterize
not
the
utility and telephone
growth stocks for the
stocks
as
reason
that
whereas
under
com—
petition,
oil and chemical compa¬
nies have profited from growth,
the electric and telephone indus¬
tries under regulation have not.
The
power
as
ing
charts
war
the
earning
of each of these industries
on
power
increased
the
show
measured
earned
war
by
the
cent
per
invested capital.
Earn¬
of the oil industry has
from
to
about
over
12%
6%
before
in the post¬
period—that of the chemical
industry
from about 10% to
proximately 15%. In the same
riod
the
electric
has shown
no
shlP ln the New York Stock Exchange, and Fairman, Harris &
Company, Inc. will be formed as
an
Exchange member firm with
Board; David J.
proach,
regulation
has
strayed
Presidents; Vern V. Reid, Secre¬
Thomas G. Wylie
investors
in
the
utility
industry
Thomas
Thomas
Wylie,
G.
Wylie
City,
York
age
G.
tary
passed
&
head
Co.,
away
of
New
the
at
of 72.
and
Stone,
Treasurer;
Assistant
Oliver
Secretary;
B.
and
George E. Kraatz, Assistant Treas¬
urer.
All
Fairman
were
&
formerly of Sills,
Harris,
Incorporated.
rep¬
COMPARATIVE
EARNING
OF
EARNING
POWER
INDUSTRIALS
AND
AND
INVESTOR
APPRAISAL
UTILITIES
POWER
INVESTOR
APPRAISAL
con¬
♦V'
Essential to
Growth
not
suggesting that
industries.
J
am
rec¬
tion
should
attempt to fit the
electric utility industry,'
the growing natural gas industry
growing
and -the
growing telephone indus¬
try into the general economic pic¬
ture for
growing industries in the
industrial
field
ognize that
a
and
should
rec¬
substantial competi¬
tive profit is a natural and
neces^-
concomitant of growth. This
of the utility earnings
sary
approach
requirements suggests
the
postwar
well
a
return in
inflationary
above
the
earned
return
period
of
utility
before
the
about
at
higher price levels,
contingencies.
A
■
42 43 44 45 46 47 48 49 50
FALLACY
AS
concern during a period of
rapid
growth should follow a conserva¬
tive dividend policy and should
strengthen its capital position. The
utility industry is not in a posi¬
tion to do this with earning power
not
benefiting from growth in de¬
mand...
There
is
no
stigma attached to
the fact that the chemical and the
oil
industry have shown
earnings since the
not
are
worrying
good
Consumers
war.
complaining
or
the rate of return of
people
are
these
Instead, the Americari
generally proud of the
achievements
of
these
industries
in
developing new products, im¬
proving old ones, and in assisting
in defense projects.
It is rather
strange in a way that so much
emphasis should-be placed on the
desirability of low earnings for
utility company**
In
the
travels,
many
course*
I
have-
tours
of
a
business
my
been
through
taken
the
on
cities
I
visiting and-the surrounding
countryside. During the course of
was
such
tours,
new
ies
I
have
been
shown
supermarkets, modern factor¬
and
farms,
f don't
ever
^felling
anybody
little
the
remember
supermarket
me
and
how
the
factory earned. Or that the farmer
pe¬
had
industry
less incomerthan
he did
be¬
fore the war.
Rather I am told
that the supermaftet is the best-
51
52 1953
193940 41
42 43 44 45 46 4 7 48 49 50 51
Standard Research Consultants
and for
business
ap¬
increase in earning
1939 40 41
The
war.
earning power is re¬
quired to build up surplus, to re¬
duce debt, to help finance plants,
to provide for plant replacement
companies.
do
Fair-
member-
ommending, however, that regula¬
try, conversations
analysts
a
utility companies at the rate cur¬
rently being earned by the chemi¬
about
toll
It is important
Forming
acquire
rate of return should be fixed for
247%, and in the telephone indus¬
and
industry has been unable to build
surplus, to reduce debt sufficiently, and generally to build its
up
man, Jr. will
by the public
Profits
Utilities
In-the chemical industry, chlorine
production
NYSE Firm
CHICAGO, 111.—Fred W.
of
other
and chemical industries.
of industrial
then
sum-
increased
the
But
necessary
the utility
utility investor.
Immediately apparent is the fact
in
sufficient capital from new
groups
of investors to provide
expansion.
Fairman, Harris Co.
attract
in respect to truly competitive in¬
dustry, has been placed in a pref¬
erential position in which he is
6%
from
to
Harris,
difficult one. This concept is best guide of what constitutes
that utility earnings should be "adequacy" is the earnings return President; Eugene L. DeStaebler,
se* a* the competitive level. In of other business enterprises regu¬ Clarke J. Robertson, Kelley R.
seeking
an
absolute
measure lated by competition.
Beach, Clayton H. Redfield, Vicethrough the "cost of money" ap-
seems
instead
the Federal Reserve Board Index.
that
the utility inable
being placed in
position vis-a-vis the
public utility enterprise that he is
and
the above average growth of these
of
far,
been
same
the synthe¬
as
tic organics and plastic materials.
Investment
analysts
recognize
electric
has
increase in demand
chemical
as
dustry
a
section of American
cross
a
to
companies
competitive
oil
an
and
a
to me quite
risk, and a fac¬ clear that the competitive model
tor having an important bearing has not served as the basic
guide
on the earnings power of
to regulation of the electric util¬
an in¬
dustrial enterprise, is the trend in ity and telephone i
industry since
demand of its product. Among the the war: the return allowed these
industries experiencing a growing industries is
something below the
mand but
Thus
payers.
determining utility financial strength.
One element of
industry and the chemical in¬
The oil industry has ex¬
perienced not only a continued
growth in crude petroleum de¬
result
a
the earnings of 20 large
are
industry.
demand for their products are the
as
farmings requirements.
re-
involves cir¬
suffered
have in effect subsidized the rate
charts,
from the basic concept and earnutilities.
As the earnings of all
mSzes the earninff Dower exDeri- np4.;tivA ipvpi nnfqbelow the commarizes xne earning powei
experi- ings have fallen
helnw the
utility companies are determined ence and the investors'
appraisal Petltlve leyei and below
in substantial part by regulation,
of these four industries in the
pe- quirements of the industry.
All
such a
comparision
have
n
are
by other utili¬
in
21
I do not to the consumers, as well as the offices at 209
South
T
SaRp
believe there is such an approach, stockholders, that the utility comqtr
.
nffl.
" t!
„
Thus in the period from 1939 to However,
the basic concept of panies remain financially strong btreet- Ulcers ot the tirm will
1953, when oil stocks tripled in public utility regulation in a capi- and healthy. Adequate
earnings be Fred W. Fairman, Jr., Chairprice, chemical stocks increased talistic competitive society is not will assure this
strength. And the man of the
non-
determining
on
earned
"cost
called
the invest-
as
utilities
have,
static
com¬
parison must be made with
regulated
business.
There
the rate
the
lities
finding
the
business
undertakings with
corresponding risk. In this regard,
think
well
as
profit-wise in the growth of their
the
Bluefield rule has been in
I
one
earning big
services, and the stocks of the uti-
difficulty
looking
a
analysts recognize the fail¬
of
ure
uncer¬
tainties."
The
despite
Investors
attended by
are
risks
on
*
in¬
business
earned
capital-remaining below that the service
decline in earnings power.
gen¬
on
cent
per
(325)
fine;
tripling in power that the factory is a leading proproduction; and the telephone in- ducer and employer in the comdustry has experienced an actual munity; and that the farmer is
property which it employs for the
to
the
power,
the value Of the
on
Chronicle
"•Standard
Research ConsliUm*
OF
COST
APPLIED
TO
OF
MONEY
CHEMICAL
APPROACH
INDUSTRY'
521953
The Commercial and
Financial Chronicle.. .Thursday, July 22, 1954
(326;
22
provement in the value of individ¬
Outlook
The 1954 Crop
By ROGER
Negotiate Merger of Ames, Emerich
With Blair, Rollins & Co., Inc.
W. BABSON
Chairman of the Executive Committee, and
Emmons Bryant, President of Blair, Rollins & Co., Incorporated,
announce that negotiations are under way to expand its organiza¬
tion in Chicago and the Middle West through the acquisition of
Joshua A. Davis,
■»■■■■'
'
production in 1954 as only moderately
established in 1948, Mr. Babson foresees bumper
Estimating over-all crop
under record
corn
Says government's price support
and soybean crops.
program
will have to be revamped as farm surpluses have
fantastic levels at taxpayers' expense. Favors
flexible
price supports
of sizable,
be propped
graphically demonstrated
again
Other
this year, if weather and other ception
The
fecundity
lands will
remarkable
farm
America's
condi-
crop
tions continue
favorable.
My
of the
pic-
survey
over-all
ture
indicates
that
the
outturn
total
of all
will be
only
moderately under
crops
Kagcr
wheat
ceed
balance
requirements, barring further damage to the Maine crop,
Baked bean lovers can look forward to full pots.
Rice pudding
devotees
also
have
nothing to
other
^
above the
average.
Rollins
a
:
Bumper Com and Soybean Crops
Corn
farmers
really
went
just share of the
nomic prosperity.
nation's
President of Ames, Emerich, will become
Vice-President in charge of the Chicago office of Blair, Rollins
when the merger is effective.
E. Cummings Parker and Ores E.
Zehr also will be Chicago Vice-Presidents.
Mr. Nichols has been in the investment business since 1921.
He
joined Ames, Emerich in 1944 and has been President since
He is a director of Aerovox Corporation, Soss Manufactur¬
1951.
ing Company and the Di-Noc Company. Mr. Parker formerly was
a partner of Glore, Forgan & Co.
He is a director of Davis Regu¬
lator Company.
Mr. Zehr has been connected with Ames since
1916 and is a director of Bell & Gossett Company.
in
have
output
been
and
em¬
on
But Much Remains to Be Done
Roger Auboin, General Manager of the Bank for International
Settlements, in his report for year ended March 31, 1954,
expresses
greater
eco-
optimism
on
European
economic
freedom of trade hut finds currency
still remains ar problem.
and
convertibility
recovery
no
reliance
the forces which operate in
placed
more
extensive
and
free
markets
achieved most satisfactory
But
that
accident
mere
of the countries which have
there
are
limits
to
have
results.
what
can
policy alone;
now
that-the government, sector
plays such an important role in
economic life, it will need more
be done by monetary
than
to
ever
be supplemented
sensible budgetary
to
by
policies.
"Budgetary surpluses may prove
be an effective help in the re-
constitution of monetary reserves,
as
has actually been shown
by the
examples of the Netherlands, and
Western Germany. But, with gov¬
ernment
expenditure at its present
high level, it is not to be
expected
amounts of savings can
in this
way;
the
that large
mobilized
be
essential
tries
problem in
is rather
so
most coun¬
to limit overall
budgetary expenditure that
it be¬
possible for savings activity
to produce the resources required
for continued economic growth.
comes
"The moment has certainly
not
yet come to sit back and look with
complacency on the results al¬
ready achieved. What remains to
be done is in some ways perhaps
more
difficult than what has al¬
Europe's Economic Recovery Substantial
ready been
ages
of goods and services and to
\ For
in¬
of order in
public finances,;■ including the
combat
-
accomplished, consid¬
ering that in the first years after
the war the most urgent problem
was
to overcome physical short¬
open
'inflation.
stance, the restoration
the
limitation
of
Treasury
commit¬
remains for many coun¬
valent in the post-war economic
; In the concluding paragraphs of
tries, burdened as they are by
world.
his
elaborate
report
on
world
heavy military charges, a problem
"For one thing, the application
monetary
and trade conditions,
that calls not only for stubborn
of flexible monetary policies has
Roger Auboin, General Manager
determination but
also for the
ments,
to
town at
planting time last spring;
fact, they planted nearly a
total of 26.
Donald E. Nichols,
^
thing that makes s se.
is
"It
upon
,
;
Bryant
Inc., a Chicago investment firm since 1911.
As soon as negotiations are completed the present Ames, Emerich
organization will become the Chicago office of Blair, Rollins. The
latter's present force there will be consolidated with the new
office of the firm, Mr. Davis and Mr. Bryant said.
They described the acquisition of Ames, Emerich as another
step in a program of expansion they had had under way since
they joined Blair, Rollins in January, 1953. Prior to joining Blair,
Rollins, both had for more than 20 years been associated with
Reynolds & Co., being (partners of the firm when they withdrew.
"This addition to our distributing organization in the Middle
West is an important step in.our plans," said Mr. Davis. "Ames,
Emerich has been identified with the investment business in Chi¬
cago and the Middle West for over 40 years and we are gratified
to have the opportunity of joining forces with them in that major
market."
The Chicago firm's six branch offices will give Blair,
As far as farm income is concerned, I believe that the 1955
outlook is favorable. Although
there may be a slight decline as
compared with 1954, the farmer's
net income will still be substantial, and a strong bulwark to the
national economy. Farming is an
hog, and poultry raisers.
Inci- essential industry. Its people are
dentally, I predict that the num- industrious, sensible, and highly
ber of cattle and hogs on fariins religious.
I do not believe they
next; January 1 will be relatively ask for or need any special privlarge.
:
ileges; but they are entitled to a
;
industrial
recently
Ames, Emerich & Co.,
The government s price support
program will have to be rewith an indicated crop of around vamped. Under the present sys759,000,000
bushels, black stem tern, farm surpluses have mounted
rust has hit the spring crop in the to fantastic levels at the taxpayDakotas and Minnesota,
cutting ers' expehse. While it will reyields down in that territory, quire a high degree of political
However, I forecast adequate to- courage to do the right thing, I
tal supplies.
I predict also that believe that we are on the way.
sizable amounts will enter storage If farm price supports are to conunder
government loans.
This tinue, they certainly should be
could result in temporary higher directly geared to the size of the
prices later on crops produced. This means a
Prospects for most of the
Emmons
Joshua A. Davis
E. Nichols
Donald
about, since a record out¬
of this grain is indicated,
Production of ?ugar beets this
though the winter crop — now
about harvested — has done well,
grains are quite promising. I expect output of oats to hit a record
high of over 1,500,000,000 bushels,
The flaxseed crop may
be the
second largest on record, and the
hay crop the third largest. A big
barley crop and a sizable rye outturn also are indicated. This is a
favorable development for cattle,
and thaj; all this
possible at a time
quotations,
some
turn
is likely to be far
since the summer of
is confirmed by the mar¬
portance.
.v.
worry
10-year
as
the in¬
crease, ought to bring home the
surely obvious truth that mone¬
tary rehabilitation and economic
recovery are not alternative and
contrary objectives but should, in
properly framed policies, be pur¬
sued as twin aims of equal im¬
with
year
position has been strength¬
currency
values have
improved
ployment
This will furord
e s t a bther complicate the problem of a
lished in 1948. world over-supply of sugar; but
For
only U. S. prices may be well confhe second trolled
by the Federal Import
time
in
11 Quota Program.
W. Babson
years,
1954
^yhat About Price Supports and
production may fail to exIncome*
1,000,000,000 bushels.
Alfarm income. .
the world rec-
many
so
and
ened
when
supply. Potatoes, how-
should be in good
ever,
reserve
has been found
but prices will be well
at 90% of parity,
fall crops, with the exof potatoes, promise to
be in large
achieved
European countries the monetary-
ket
"only thing that makes sense.
as
in
that
fact
The
ment.
1953,
mounted to
be
currencies could
ual
only by a policy of 'deflation' and
at the cost of heavy unemploy¬
Improvement in
Trade Payments
been so successful in many dif¬
making of some by no means easy
Basle, Switzerland, re¬ ferent countries that it can hardly choices.
veals a general widespread
im¬ be claimed any longer that
"In many countries there is the
ord
is currently
provement in European economic changes in interest rates or other
indicated; but
National Association of Credit
further task of establishing wide
what the final outturn will be re¬
conditions, and finds though cur¬ measures in the field of credit
and
effective
capital'markets,
Men survey reveals more busi¬
mains to be seen. Much depends
rency convertibility, the leading are ineffective and outmoded as
since they constitute an essential
ness
concerns
paid obligations factor in establishing sound in¬ instruments of economic manage¬ condition for the sound financing
upon the weather between now
and harvest time. With the hogpromptly in May than in Feb-; ternational trade ' relations, has ment; for they have shown them¬ of investments which, in turn, are
made some progress, its full ac¬ selves far superior to methods of
corn ratio still at favorable levels,
the key to lasting economic prog¬
ruary 1954.
a large corn crop could be prof-,
complishment is still to come, detailed and irksome administra¬
ress. For the damage wrought by
A greater number of business concerning the situation, the re¬ tive
control
and
the fixing
of
/table for hog producers.
20 years of crisis, war and make¬
'targets,' which in themselves
I have long been intrigued by concerns were paying their trade port states:
shift economic policies cannot be
make no contribution to economic
"Contrary to many pessimistic
.soybeans—one
of
the
nation's obligations promptly in May, 1954
repaired overnight. An improve¬
most versatile crops, with a phe- than in February, 1954, according predictions, it is now clear that in expansion.
ment in productivity, by which
"Secondly, it had come to be
nomenal growth curve in recent to the latest survey completed by the past year the more favorable
alone the living standards of the
taken almost for granted that even
years.
I should not be surprised the Credit Research Foundation of factors predominated. In the
great mass of the people can be
a
relatively small decline in in¬
if farmers put more acreage into
National Association of Credit United States, the readjustment
raised, requires not only the co¬
output
in
the United
which was to be expected after dustrial
soy
beans this year than ever Men. The survey results show that
operation of all factors of produc¬
States would lead to a proportion¬
so
many years of
a pronounced
before, because of diversion of the percentage of manufacturing
tion but, in some countries, rather
ately greater reduction in Amer¬
acreage from crops under allot- accounts discounting their bills or upward business trend has not, at
difficult structural changes. It is
ment programs, attractive prices, paying when due increased from least so far, shown signs of in¬ ican imports and that this would,
becoming increasingly evident
and favorable planting conditions.
85.6% in February to 87.3% in volving the American economy in in particular, cause European that progress in this direction can
great difficulties
This could mean a large crop and May. However, manufacturing ac- a downward spiral; and for most countries
be achieved only if a high degree
downward
pressure
on
soybean counts were still below the level European countries 1953 was a through a renewed widening of of freedom is restored to trade
prices at harvest time.
of May a year ago, when 87.8% year not only of consolidation but the dollar gap. It has therefore and payments, even though cer¬
were settling their obligations in
also of sustained economic growth: been most heartening to find that,
tain
temporary
measures
may
Cotton and Other Fall Corps
accordance with suppliers' terms. in a
great many of these countries notwithstanding the fall over the have to be taken in order to miti¬
Heavy supplies of U. S. cotton
Retail accounts also showed im- production has reached new rec¬ past 12 months in the U. S. index
gate the hardships necessarily in¬
of industrial production, European
would have glutted markets and
provement. The survey data, fur- ord heights, prices have shown a
volved in such adjustments.
severely
depressed
prices
dur- nished by credit executives in 28 remarkable degree of overall countries have continued to pro¬
"It is not only from a general
mg the past year had it not been principal cities, reveal that 81% stability, and monetary confidence duce and export at a high rate
point of view that liberalization of
for
government loans.
Yet, the were in the discount or prompt has been strengthened, as evi¬ and to add to their gold and dollar
trade and payments is desirable.
denced by the
improvement in holdings. These things are not de¬
basis has been laid for an im- category
in May,
compared to
termined by blind fate; on
the Far from being, as often seems to
reserves and in quotations on the
proved statistical position in t!Te 79.8% in February. In may a year
be thought, a concession to the
exchange markets, and by the fall contrary, if the proper measures
interests of other countries, the
1954-1955 season. Cotton farmers
are taken on both sides of the At¬
ago the figure was 81.4%.
in the free-market price of gold.
removal of trade and payments
more than complied with the
"These facts
are
certainly lantic a very useful influence can
govWholesale accounts, on the other
be exercised on the trend of af¬ restrictions must be regarded as a
ernment's rigid control program,
worthy of note in themselves, but
hand, lagged by 0.1 in May, cornnecessary condition for health and
they
are;
important in another fairs.
Acreage in cultivation on July 1 pared to February. The percent"Thirdly,
there
has
been a expansion in-each .country's do¬
way, too; .since they may well
mestic economy. It is interesting
was sharply, under a year ago and
ages are 84.7% in .May, -84k&% in serve to dispel-a number of pre¬ strange
notion,/; entertained -in
.to note that in Eastern as in West¬
10-year July 1 average.. Totar February. A year ago, in May, the conceived ideas—not to say pre¬ many circles, that a strengthening
ern
Eurooean countries the
ob<
of monetary reserves and an im¬
judices—> which have been pre¬
supplies,
nevertheless,
will
be percentage was 86.2%.
l4
half,
million
acres
more
than
planned in the March intentions.
The second largest crop on rec¬
of the Bank for International Set¬
tlements,
.
,
,
.
...
Number 5344;.. The Commercial and Financial Chronicle
Volume 180
(327)
jective of higher productivity has health of its internal economy is ier for the individual countries to
beeh
brought resolutely to \the primarily a matter for each in-:take part in a common
action,
fore.
could
There
have
insistence
greater
than in recent speeches
members
ment.
the
of
So, far
been
this
on
most
in
of
Govern-
the
international
number
ward
coun-
of
sphere.
countries
If
a
by side towards the
goal of convertibility, freedom of
trade, ,and
payments
established
over
productivity and
another
field,
ordered economic
entertained
are
to
life;
properly
illusions
a
no
2
-j
J
Is
C
_
credit expansion. Genuine savings
essential
are
the
to
USSR, as to
other country, for they alone
resources required
for the carrying out of the investany
furnish the
can
ments that
are so
••'
.
"For
long
a
sufficient
...
time
difficult
very
urgently needed,
,.
has
it
indeed' to
interest
of the Atlantic
but
social
"Fortunately,
"Tn
thp
rlncinnc
cinn
if
not
nf
if
more
nnn.
rnmmicrnnrnspnt
hift
cnintinn
thpv
ahmJt
hrinc*
l-vpttpr'pnnHitinnc in'manwPQnPrk
anH
nrnvidp
thp
thuc?
rpHiirinp"
division
a
minimum
tmncatiantin
finn
world
nn
thp
within
the
of
kind
hasi*
nnora
rianPPr
the
nf
Western
which
caused
much suf-
ferfolh^
valuable that the main lines of
Ampriran
rnntrihutinn
tn
thp
an
m-
operative enterprise of areturn to
of
merely
have
discussing
continued
take
to
for its realization.
measures
endlessly
arguing
the
merits and demerits of every possible method of tackling the prob-
lem,
beginning has been made
a
with the necessary practical steps.
"Such steps include the reopen-
ing
of
commodity
restoration
of
the
markets,
spot
and
forward
exchange markets, the unification
different types of account for
of
and
one
the
elimination
which
same
of
in
free
the
currency,
the
discounts
currencies
quoted
eas-
1
n
I
/\ 4 n
V*
Vii r\ rs
have
markets
at
been
and
the
When I
was
boy
a
lived
we
in
the country. Our next door
neighbors had an old fashioned
pump
in their back yard.
Every time
present investments
based upon
to
the problem.
that
the Pump would go
one
the family would come out
with a half a bucket of water and
douse it down the pump while
they rapidly pushed the handle up
and down.
Finally the pump
W0ldd whine and sneeze and accompanied by an ever increasing
crescendo of mounting wails, the
water would finally gush out of
the snout into the waitm§ Pail^ was clu^te an operation and I
the
on
like
part
to
those
of
will
formal
already
an
be
con-
It
PUI"P
to save your life;
glve
Let's
Analyze
is
an
is,
however,
d, riuuicm
strong
and
tained
to
be
that
remain
sufficiently
override
the
sus-
powerful
resistance offered by bureaucratic
routine and the shortsighted ob-
jections of vested interests.
Sec-
tional and other interests will, in-
deed,
have
period of
easy
clients
that
a
to
their
books.,
"It
that
the
profits is
need
over, and
longer form
no
in the street
queue
await
recognize
in
turn
have
or
the
to
order
of
invested in "dollar equivalents" these days. The figures run
jnt0 many billions. In one instance
money
j
know
of
Savings
a
Association
and
Loan
that
some
at
last
become
evident
five
than
_
other
places
for
their
savings,
no question that
savings
savings and loan compa-
There is
banks,
nieSj and United States obligations
have
place in
a
program.
But
invest
much
too
investments.
try to live
able
anced
in
fixed
can
income
When retired people
on
21/2% to 3% taxa-
a
when
that return
they
in
could
well
a
bal-
of
good common
funds and some
program
stocks,
people
some
income,
double
investment
every
mutual
official
institutions
"dollar
these
of
will
savings
that
agree
has
increased
predict,
monetary and
the
economic strength of the countries
concerned;
countries
"prepared
and
today
to
there
which
join in
the
are
are
few
not
common
'
effort.
"To
an
low
on
equivalent"
yielding
investments
improve and
maintain
the
or
for
program
people.
many
is only one reason why
have placed such a huge
amount of their savings in institutional savings accounts and that
is
that
they feel safer with their
money
there.
It gives them
a
feeling of security to know that if
they want dollars they can obtain
them
demand,
on
receive the
same
and
they
number
will
of
dol-
lars that they invested
plus
interest
them.
when
Every
originally,
they ask for
educated
person
as
far
as
^
goes,
there is
no guar-
which
so
many
are
millions
placing
will be as large
are depositing.
as
upon
of
their
"It
the dollars they
the
nor
the
place to argue this point. In fact,
it is doubtful if those who have
such implicit faith in the sanctity
of dollars could
be
reached
by
any
educatioal
program.
Their
now
re-
are
industry."'
to
the
Back
benefit
by
American
continuing
future.
is
fabrica-
by accident that>we
able
that
the
to
in
build
the
people
for
the
the
early years
of this
century, Bethlehem developed and pioneered the rolling
of wide-flange structural
shapes,
least
catecon-
building,
These
sible
made
the
skyscraper
pos-
and
revolutionized the art
applying steel fabricated mem-
bers to all types of building
structures.
disserted.
"The
In addition, the nation has a
backlog of needed construction
which should maintain strong de-
United
States
is
and"
still
growing nation," Mr. Grace
eluded.
"Our
creasing.
mand for several years to come,
By that time, it is reasonable to
that
population
Our
facilities
population
must
a
con-
is
to
in-
serve
also
con-
tinue to expand. In the construction field—as in the
various as-
conclude that even greater demands will have been generated."
pects
of steelmaking — we will
fully in the growth process
continuing to maintain ade-
share
businesses steel fluctuates with
the general level of economic ac-
by
capacities. »
in
in
the
thp
rmmtrv
country
anH
and
quate
xxzhnn
when
Finds Trust Depts. of
and
efficient
productive
Metropolitan
Commercial Banks Not Profitable
place for at
ings and
least
of your
part
a
in
need.
you
^
Add
that
to
expenses
where
in
of commercial bank
New York and New
Consolidated figures
a
_
psychological
atmosphere
that has been gathering momenturn during the past year or so,
from
107
mercial
business, the Federal Reserve
Bank of .New Yo.rk reports' in
tke July issue of its publication,
State
sides, there
"Monthly
New
of
some
is
some
dividends
shares
on
in
about
certain
the
in
news
occasionally
paper
friends
your
the
extra
and
light
Review
of
Credit
and
figures
are
Business Conditions."
however,
The
stocks.
trust
departments in
Jersey.
Bank
Trust Departments
banks in New York and New in New York and New Jersey,"
Jersey show an operating loss in, discusses, the findings of what is
*953 for their trust department believed to be the first survey of
have bought a few shares of stock
and have been doing
alright. Be-
these
its
kind.
and
adjusted by the addition of "al-
The
study
of the
undertaking
Bankers
was
joint
a
New
York
Association,
the
Jersey Bankers Association,
the Federal Reserve Bank in
to enable an ..individual
order
bank
have been
come credited to the trust depart-
to test its trust department
profit and loss experience against
that of banks of comparable size,
and
ment as earnings on uninvested
trust balances deposited with the
commercial banking.department),
The 107 banks that participated
the study handle 26,600
personal
trust
accounts
with
$2.8
the consolidated operating results
°f trust d e p a r t m e n t s earning
commissions and fees of $50,000
billion of assets and 560 corporate
trust accounts with assets of $2.6
billion.
In addition, the article
in
company
value.
of
power
home town also
your
paying good dividends
they have been advancing in
A few of your
getting
they like the idea
substantial
some
checks
friends have
three
every
divi-
months
lowed
credit
for
deposits"
(in-
from good companies that are well
known to you.
Under such cir-
or
cumstances you might be receptive
to a suggestion yourself.
"
combined losses of those earning
less than $50,000 are considerably
Then
noticp
day
one
house
in
of
stock
will
bring
local
of
the
A.T.
&
few
a
start
5.25%,
come
to you
months.
Don't
more
water"
you
off
facts?
you
on
a
That's the
might
need
sound
pro-
investments, which would
savings accounts but
would help you to live much
also
on
the income derived from
the capital you have acquired,
these
too
do
utility
the kind
average
much
away
is
the
are
might
in
of
your
town,
institutions
American
who
New
million
and
York
in
fees
City
banks
of
corn-
amost
$60
1953.
Agricultural History
Money" hiding
at
a
low
income
return
consider.
Once the pump
more
wish to
efficient job of invest-
ing his savings.
.
.
.
!
"Agricultural history is rampant with instances
of
farmers
offsetting lower prices by increasing
output. Had flexible support prices been in effect
since
our
1952, there is
current
"Indeed, they
farm
no
good
reason
to believe that
surpluses would have been
income
may
is
any
less.
well have been larger because
price
times
volume,
response
and
when
of farmers is to
increase output so as to earn enough to meet their
obligations."—Senate Agricultural Committee.
has
"Scared
primed he might also
a
large
missions
prices decline the classic
General Motors, American Tele-
phone,
11
with combined income from
you
include
better
contains less detailed information
on trust income and expenses for
"Review" article entitled
"Earnings and Expenses of Com-
gram of
still
and
reduced, the bank noted.
you
"primin'
to
profitable,
T.
over
you
might be interested in
going a bit farther and calling
that investment firm just to find
out
become
income return from the
three
think
to
in-
an
vour
and those checks will
every
bv
more
in
fnotSSSuoy
ftS
naT %
7
—
an
shares
that
happen
you
advertisement
an
obtain
the
But this is not the time
"1
__
economic
of
erection
is not
fact
at
general
forefront
and
are
savings that could help you to do
a
bit better toward providing the
our
trust,
_
July issue of "Monthly Review," published by the Federal
Reserve Bank of New York, reveals results of
study of earn¬
Money
There
—
bridge
income
^ays, possibly
a
today
the
record year," the steel executive
So very far at the gro-
n.
s^ore these
vestment
people
of
J.
y»
the back of your mind you
might
be
thinking about some
other
doesn't add up to a sound investment
people
to
educational
maximuIY, °i3t%: .a"d
very ; well that kind
income
_
payments, far from provoking the
catastrophes
which
interested
failed
the
of
a
tivity
tivitv
rather
informative.
certain
_
antee that the future dollars
never
"in
tion
Mr. Grace noted that like other
that is recommending
that greater freedom of trade and
parties
these
The approach should be affirma-
of its shareholders find
realizes that although this is true
i
has
employees
.the current
of
counts.
cery
supply
existing
necessary
shall
would
of
funds into stock and bond invest-
Problem
a
over
Scared
momentum
a
non-residential public building,
bridges and highways — 1954
promises to be a record or near-
have not forg°tten that y°u could
Push
P"ntp handle up and Now Let's Get Back to the Pump
down until your back was broken,
If you were a saver and you had
but without some "priming water" your money salted away at a
state of affairs.
the
who
some
ments that are paying a higher
income return than now available
to these same people on their
various low return savings ac-
over-emphasis
a
primarily
Any attempts to
channel
provements such as these signify
the realization of convertibility in
than
in
gories of
are
Vt
The Chairman
pointed out that
Bethlehem makes a
complete line
of
steel products to. meet
construction demands and
"Bethlehem
inform, or educate, would be undry, satisfactory merchandising policy
minded
that
effects of
communica-
commercial
experi-
first
At urn
adjustment."
stated
four
the
Beth-
Corporation,
struction
in
£1
he
magazine,
emotional approach
an
tried it out and
way
V\ O
Steel
lehem
Eugene G. Grace
dend
pra'ctice and in such a
its
official
recognition
of
man
declines, steel producnormally reflects the trend,
ence
1
tion addressed
"Blue Chip"
a
ity bonds, it is just foolish to tell
—
all's well.
Every fair
.
Grace,
,
half of
1954,"
/"T del
11
added, "shows how sound
longChair-,, range planning can
minimize the
It]
come, E. CwG.
OOYYT
and
come
"However, Bethlehem's
time
some
f.O
to
By JOHN DUTTON
them
of
tain steel output for
r\ y-v
"In
less and less relevant foreign
exchange regulations — and im-
so,
firmation
y-v
to
well regarded corporate and util-
more
11 n
in
drastic simplification of the more
and more complicated but, even
little
*-> VI -«*■1
tern of convertible currencies."
Prime the Pump With
_
of
I
con¬
level
tion
Review.','
There
the question of convertibility, the
authorities
in
many
European
Instead
vri
Securities Salesman's Corner
.
active
i
that
company's
'
countries
only by the interests of the in/J
4
4dividual countries, anxious to consolidate their postwar recovery,
issue
convertibility have been
defined by a government commission set up by the United States
Instead
.
^ continuing strong demand for
eel. products by the construe;1(?n ^dustry will help to main-
-rV;"r--V;•'•'
currency
•itsplf
be
now
-
has
thp
Pvtpnt
apppntPH
fnr
v\v\Anwn
would
arresting its advance.
impelled not
of policy themselves the elastic but stronggeneral increase, ly-knit bond provided by a sys-
a
1-5A,
lasting
matter
statp*
qnmp
rnmnrnmicp
a
wnniri
should lead to
rectitude
of
Randall'
thp
tn
r>
of
coordination
measures,
not
always with the
that it deserves,
TTnifpr?
mav
■
emergencies
Industry/
time to
lost; only dire poli-
For this movement is
i
Chairman of Bethlehem Steel
Corporation says record
struction, of public and commercial
buildings, bridges,
highways will help maintain steel output for some
of
economic
considered
of urgency
sense
A V*
in strength and thus make it
progress.
this
been
seriously
of
condition
and
recently
i
■
been
capable
rest
side
was
financial
or
basic
a
tical
the
to have been cited as a reason for
delay but, now that a sufficient but also I by the transcending—
number of countries are deter- and no less real— interest of all
mined to go ahead with practical countries in establishing between
few un¬
maintained
that
question
economic
vi
not
vis-a-vis
The momentum of the
towards convertibility
movement
has
Sometimes in the past the
J
need for concerted action appears
Grace Foresees Strong Demand for
Steel by Construction
the
flexible form
a
rehabilitation
orthodoxy
be
wider
and
in the question of
voices
monetary
simply a
been
v* w ^
arouse
either
on
monetary policy. Only
heeded
.
.
liberty.
'
and
the world.
and many strains and
stresses would be mitigated by the
very
extension of the area of
that it is possible
conjure up resources by means
cunningly devised measures of
of
would
even
an
effective
integration in the relations of
European countries with one
the
for-
move
side
tries \ are
concerned,
monetary
stability is patently regarded as a
prerequisite r for. an advance in
'
"Convertibility still remains
a
by leading
Soviet
the Eastern
as
dividual country, but there is also
definite need for co-operation
no
point
23
And with such argument
try
to
defend
proposals
distinguished Senators
for
the
continuation
of
obviously unsound subsidies to the farmers of the
land!
.I'"
i
I/'
24
The Commercial and Financial Chronicle..
(328)
tion of
Technical Progress
In Air
_
_
_
Conditioning
i
'
sulted
research.
more
Heat pumps are
Forecasting
future of the
field is difficult,
the
air conditioning
for
growing so rapidly that
we are
there
who
few
are
keep up
can
will
soon
produce results of great in¬
terest to our
industry in the fu¬
ture.
great potential is develop¬
ing for the device in industry. As
now
fact
the
established
have
tories
that
efficiency of animals varies
with the environment, something
we
knowledge
ani¬
Hogs, for example, grow
faster and larger in environments
de¬
around
suspected from
we
to comple¬
tion.
with the latest
in
advances
the
industry,
alone
let
at¬
tempt to pro-
their
ject
thinking
the
into
future.
Further, the
developments
required of
ties
our
Preservation
with
70°
humidi¬
normal
but
experience a falling ef¬
ficiency curve as the temperature
rises
Contribution of Refrigeration to
Food
a
air
an
conditioner,
of the
success
to
above
90°,
where
bare
existence is possible, and at 100°F,
because util¬
power must find
supplying
winter load to balance out the cost
of increased transmission facilities
demanded to supply the rel¬
now
atively short duration residential
air
conditioning. The year
heat pump
is an ideal
summer
around
when proper sources
answer
labora¬
environment
Animal
necessary
way
usually regarded
labor, equipment and management
Now
designers must hot
consider costs of the sys¬
tems themselves, but must also
costs.
sinks
sources
are
to be the
The
best
and
these
of
and sinks which
sources
pears
the
of
economical
most
Some of our
uncovering
developed.
are
research teams
several
and
heat
now
ap¬
sun.
of
add
pump
that
to
the
cost
of ithe
cost
occupied by the system and
this also includes the rental value
space
the
of
distribution
air
type
velocities
where
distribution
much
systems
six thousand
of
in ducts reduce sizes
or more
air
of
of
Consideration
space.
problem has resulted in the
high velocity or conduit
of
feet
systems as
80%
as
Another
approach to this same
has been an increased
of radiant panel cooling which
problem
use
will
much of the heat in
remove
with small water or fluid
pipes and thus reduce the air sys¬
tem normally required by as much
spaces
Both of these
70%.
as
heat
the
in
process
industries, requiring si¬
multaneous heating and' coolirig,
is on the increase and has great
engineering possibilities, since the
heat can
be
pumped, from the
cooling requirement into the heat¬
ing requirement and thus elimin¬
use
-
only
use
will
Undoubtedly
this
see
prog¬
search.
this
of humans, since we are also
velopment on the
the
ities
equivalent
of
"roving
males."
Animal husbandry is also working
with a few pilot laboratories that
,
we serve.
some
in
air conditioning machines, but
as
mals.
people
indicated
is
ress
of
v.-;
production of untimely and undesirable equip¬
Points out wider applications of refrig¬
eration and air conditioning now under way, and refers to use
of the heat pump as a refrigeration device.
Holds use of
nuclear energy will increase refrigeration and air conditioning
Calls for
and sinks is just be¬
sources
ginning and already
heat pump is assured
be avoided.
use.
truly control breeding of
and prevent the inroads
strange
pollens,
the
plant
heat
species
that
so
can
is
can
we
■/
greenhouses
growing
only by means of air
conditioned
growing space that
Refrigeration engineer notes interesting developments in air
conditioning and refrigeration industry, because of coopera¬
tion of scientists, engineers and producers working to improve
designs and equipment. Says consumers should also be con¬
ment
it
for
President, The American Society of Refrigerating Engineers
.
food
ury
that will result from this research,
By ARTHUR J. HESS*
,:l;
the great seed and lux¬
outlet in
Hess, Greiner & Polland, Los Angeles, Calif.
J.'--t-v
plant growing laboratories,
a greater commercial
will find
we
Thursday, July 22, 1954
„
have been
but
more
methods
proved in actual usage
research and develop¬
ment is needed to
perfect the
ap¬
plications. ; Other solutions will
undoubtedly be found to assist in
solving this problem. ~
:
In industry much development
is being made in the usage and
techniques of low temperature
length of
The question ate the
engineering sin of using
ent place of eminence! in industry is not
being studied to coddle the dual fuels to
produce the required evaporation; low-low temperature
principally because of what has animals but purely from the eco¬ conditions.
Industries with smoke research; and product and process
been accomplished in the fields of nomic standpoint; in other words,
stacks and cooling towers side by cooling; much has been accom¬
food, preservation
both during more hog meat for less food side should be regarded as poten¬ plished and the development will
processing, transport and storage. money, since at peak efficiency tial sinners
against good practice continue as new industry require¬
Probably these accomplishments the hogs grow largbr and faster. in our
fight to conserve our prec¬ ments come into the picture.,
in the food handling field have This will mean that there will be
I have endeavored to point out
ious energy.
•
J
,
"
been some of the principal con¬
some
form
of cooling
used by
some of the ever widening hori¬
tributions
to
enable
the
great most hog growers in the future.
Refrigeration in Air Pollution
zons
in
our1 industry,
feeling
experienced
Refrigeration reached the
pres¬
for
any
time, death results.
,
industry
dependent
upon
the re¬
our
are
quirements of
Hes»
J.
investigation and it has been de¬
the
Arthur
growth of our urban areas, which
we have seen in the past 50 years.
Developments in this part of the
termined
food
temperatures
people
other
and
dustries
we
in¬
that
Our past and continu¬
serve.
ing rapid growth does indicate a
greater future that includes many
developments yet to come which
will
challege
all of
our
One of the most interesting de¬
velopments
now
interest
well
as
to
as
in
us
the
household refrig¬
steady develop¬
The
industry.
of great general
are
erator has had
a
ment and this will continue.
One
possibility is the development of
best brains and the electronic cooling unit, about
industry "know how."
our
industry
unfolding is the
which
have
we
recently
been
reading.
The transportation in¬
dustry has lagged some in the
application of refrigeration, espe¬
Dairy
animals
that
these
animals
below
at
65°
about
themselves warm by con¬
suming additional food over and
above
the
amount
required
at
keep
normal
in
their
This extra amount
temperatures
comfort range.
of food
becomes
enormous
Control
under
also
are
at low
temperatures.
Closed barns can
keep the animals warm but are
not a good answer because certain
somewhat inadequate as I did so
Another problem facing the air
conditioning portion of our indus¬
try and one requiring early solu¬
tion is air pollution control.
Though our industry does not face
the whole problem, it is up to us
to provide air purification in our
living spaces. The problem is in
* about the same stage of recogni¬
tion as was water pollution at the
turn of the century. All are famil¬
iar
with
what
we<•
have
done
by-products of the emissions of about that problem. The relative
scientists, engineers and produc¬ cially the railroads who seemingly the animals when added to the importance of, air 'c leaning is
abhor change. New reliable me¬
tion people that work out answers
atmosphere have a detrimental ef¬ pointed up when we realize the
units
for
trucks
are
fect on their health and efficiency. tremendous effor#%nd investment
to the requests we are receiving chanical
for designs and equipments to ac¬ changing this picture some and Some form of heating and venti¬ made to purify the half gallon or
the change should accelerate at a lating
so of water we drink each
is the
obvious
answer;
day as
complish certain new results in
Of again as in the case of hogs, the compared to whafis done to pu¬
the application of pur products. desirable rate in the future.
The development of these teams necessity the railroads will have justification is economic. Poultry rify the approximately 200 cubic
in industry was a requirement of to follow; as a matter of fact, even raisers can also economically jus¬ feet of air we tak£ into our bodies
now they are doing some devel¬
tify air conditioning
in many in the same period of time.
production in World War II when,
This areas, especially during the chick
It should be
due to the shortness of time, we opment work in the field.
pointed out that
is a good example of the benefits stage, when the mortality rate is a cubic foot of
had
to
simultaneously develop,
Jf|latively clean
received by the people from the high if the environment tempera¬ air can contain
ore? a million par¬
design and produce new equip¬
tures stray only a few degrees ticles of
ment with which to confound our competitive system.
pollutanp. Many people
trend to
build
enemies
and
essential
to
social
made up
teams
win
the
the
victory
survival
of
of
so
our
and
political system. The
refrigeration industry,
being a
part of industry in general, gained
experience in this method of de¬
veloping new products, and proc¬
and must have found it sat¬
esses
isfactory for the method has
gained steadily in usage. An ad¬
ditional member should be added
Probably the greatest and most
interesting developments in the
food industry are in the growing
and
producing portions of the
field.
For many centuries there
were practically no developments
in the agricultural industry and
even in the last half century al¬
most the only developments were
in farm machinery, planting and
cultivating methods, i developing
these teams, however, to give
better and more profitable results
of
and that is
new
to
a
representative of the
of refrigeration. In this way,
users
production of untimely or unde¬
sirable
equipment or systems
could
the
be
avoided
economic
and
and
thus
limit
manpower
losses that result from production
and
attempted
marketing
of
an
breeding.
ter
is
indicated in
now
trend
tendency
to
our industry
expedite the
the heating and
to
merge
Now
some
we
agricultural
come
plant
into a
era,
one
under controlled environments to
find proper growing and produc¬
ing
conditions
for
these
living
things, and believe it or not set
up comfort charts for them.
Control of environment includes
potential change for the bet¬
a
and
partici¬
pated in by our industry. We are
now studying plants and animals
undesirable product.
A
fertilizers
air
conditioning
Around
a
the world there
number
search
major factor.
as a
of
plant
laboratories
are
now
growing
in
re¬
which
all
cooling divisions of our industry.
This applies to more than air con¬
ditioning. Today both of the two
controlled
divisions
progressed to the
point where much of their work
structed in the next decade. From
overlaps and in many cases
ers
exactly the same areas.
industry does not have the
to
have
cov¬
Our
eco¬
environmental
these
many
mean
the
same
the
with
labor
now
the
be
con¬
come
to
in
same
use.
food for all in
of
more
will
world
be
can
data
increase
fold the present farm
duction
and
do
many
laboratories
enable
separate
to
and
these laboratories will
nomic right to maintain these two
groups
conditions
pro¬
acreage
This
spite of
can
ex¬
thing, especially with the inef¬ panding populations and what are
ficiency resulting from the bel¬ now potential famine areas such
ligerent attitude of many in each as India and China. This can be
group toward the other. Further, one of the major
keys to a good,
undoubtedly by pooling our ef¬ secure, world peace.
forts
we
could
including the
♦Aa
address
American
tioning
do
better
by Mr. Hess
Refrigeration
Institute,
for
all
industries and the
and
Los
before the
Air
Angeles,
Condi¬
Cal.
from the comfort range.
have
Another important part of the
study of growing plants has to do
with the research on photosyn¬
past that the Creator gave
thesis which has been
Conditioning in Plant
Growing Laboratories
While
our
industry will partici¬
pate in the design and construc¬
must
be
combine to
dustries
most
that
realize
the
of
one
potent problems facing the
today has to do with our
increasing usage of the lim¬
world
ever
ited fossil fuels available to
produce
As
the
energy
we
us
to
require.
matter of fact, we face the
ultimate exhaustion of this source
a
to
civilizs^ibn
our
and nature
sulljohis atmosphere
dangerous e^nt. It is a big
problem requiriffjef a big solution,
which must be worked put by us.
a
A
development that seems
processed which is of
new
to be
in
great interest
to*® of
tronic
as "suggested
cooling
Chairman
of
us
is elec¬
by the
the^Board of R.C.A.
This idea is not ITcf fantastic
of energy and in the not too dis¬
the fubface for,
matter of fact, # can do it
tant future.
in
Utilization of the
en¬
which reaches
the earth in enormous quantities
is an obvious answer to the prob¬
ergy from
the
lem and much
sun
research has been
find ways and means of
doing this. Plants, while not too
efficient, by means of photosyn¬
thesis do absorb energy from the
sun
and lock it into the plant
where the energy can be recov¬
ered by combustion or conversion
done to
to
a
useful chemical form
of
en¬
such as alcohol. These stud¬
ies of plant growing can increase
the efficiency of photosynthesis
by determining proper growing
ergy
locale, by proper specie breeding
and by other factors.
The
The
heat
Heat Pump
pump
is
a
refrigera¬
tion device that is rapidly devel¬
oping into
an
industry.
to
important factor in
Though it is
not
difficulties have
been
experienced in
obtaining
sources and sinks for the pumped
new
heat,
us,
the
some
development
of
these
the
acknowledge the gift but realize
that
the method used
is
us
ah$t therefore it
satisfa&pry. We now
by plants
to absorb energy from the sun.
Most people in the engineering in¬
sis
thejjpititude in the
breathe
to
mystery up to now. Photosynthe¬
our
Air
scientific
a
air
taken
appears
an
on
experimental,
surely develop
as
it
as
a
now
It will
time and re¬
way.
but
salving
my
conscience with
the fact that I am no prophet:
As
close
I
prophetic dis¬
logical to point
two things in our industry
each of us can do to be bet¬
it
course,
out
that
this
seems
to meet any expand¬
ing horizon we uncover in the fu¬
ture. We must support to the full¬
est
our
engineering
education
which includes our engineering
schools and colleges, our industry
wide
educational programs, 'in¬
cluding our various society pub¬
lications and meetings. We must
ter prepared
effort to see to it
right young people are
properly oriented and educated
into
our
industry.
Each of; us
also exert every
that
the
should be prepared and willing to
Above all we must
advise them.
to it that those young
people
engineering minds become
engineering graduates or techni¬
see
with
cians and further that our indus¬
try gets its share of these gradu¬
ates,
for today there are not
enough to go around. Remember
that to do this will require at
bait
of
security and fi¬
equal to that put
out by our competitors in other
industries for engineering serv¬
least
a
,
nancial nature
ices.
The second
important thing, we
do, as an industry and as in¬
can
dividuals, is to wholeheartedly
support research in any form,, in¬
cluding industrial research. We
should encourage our societies and
associations to support research
programs
of their own
and
co¬
operate with others, for it is from
research that most of our future
progress
will come.
search.
*5T
The Effect of Ntaclear Energy
One
what
can
the
not
Levien, Greenwald Go.
To Be Formed in NYC
^jtelp but wonder
develc^Jhg of nuclear
Levien, Greenwald & Co., New
energy will do to pur industry and
York
Stock
Exchange member
from the presenT" view point it
firm, will be formed as of Aug. 1
appears that the atom will in¬
with offices at 50 Broadway, New
crease the scope®6f our coverage.
York City. Partners will be Sey¬
It appears
that ^xfuclear energy
mour
Levien, exchange member,
will ultimately reduce the cost of
Lester S. Greenwald, general'
power, which will
increase the
partner, and Francis S. Levien,
use of machines of
all types in¬
cluding refrigerators. Most remote
areas
will
not now served with power
be
become
reached^by utilities and
increasing
market for
our equipment.
At present it does
not
appear
that small nuclear
generators to operate machines
direct appear feasible, but we can
plan on increased* power facilities.
Another type of ^development in
the mechanical industries serving
buildings has resulted from the
an
tremendous increased cost of con¬
struction
limited
partner.
been active
broker.
ager
of
Mr.
as
an
Mr.
Levien has
individual floor
Greenwald
of the arbitrage
Dreyfus & Co.
is
Man¬
department
•
Joins Jones Staff
(Special to The Financial Chronicle)t
ST.
LOUIS, Mo. — William E.
is now with Edward D.
& Co., 300 'North Fourth
Schray
Jones
Street, members Of the New York
brought about by high and Midwest Stock Exchanges.
.
Number 5344
Volume 180
...
The Commercial and Financial Chronicle
(329),
t
European Bankers Interested in Middle West
Kearney Wornall, Vice-President of City National Bank and
i
Trust Company,
•:
of
Europe,
America" region, with its rich
important role in U. S.
2,600
Sees disunity in Europe
handicap to region's progress.
economy.
miles
journey
motor
Copenhagen,
party made
their
European
and
car
Amsterdam
from
a
of
by
New Carr Partners
oblivion."
Mr. Wornall and his
and production, plays
resources
25
*
create
contact, acquaintance,
friendship and understanding, the
airplane can be a machine for
unity and good, instead of de¬
struction and
Kansas City, Mo., back from a 10-week tour
bankers there now know that the "Heart of
says
-
to
Paris,
flew
Stockholm,
Madrid and
London.
1
According
to
the
advice
of
Kearney Wornall, Vice-President
of
City
National
Bank
&
Mr.
Wornall
out that
went
Co., Kansas City, Mo., "No matter
how large or
in
small
They're not just
with
n e
have
cte
no
n
hesi¬
d,
offi.-
in
West,'1'
any
it
opean
bank.
You'll
be
well
i
c e
need
cially
Kearnty WornaJl
week
should
is just
11
during
know,
be¬
alone.
10-
a
tions
in
countries
Wornall
which
Mr.
and
Grain Company of Kansas
"European
bankers
North
America,"
recognize
and
talk
We did
see
b
keenly
u
i 1 di
n
is,
g
of
course,
sum
in
up
representatives not only of larger
without hesitation:
of the
but
You'll
smaller
find
he
tries
banks
"The
visited,
many
wel¬
2,000
years
keen
interest
and
a
knowledge bf Mid-Western affairs.
made
a
Even
Westerner
well.
come,
real
a
a
if
is
from a bank of
just a few million dollars deposits,
you'll find the red carpet out for
you
you
reason
have
bankers
ropean
that
aware
not
v
the
just New York
Now
seaboard..
know
in
oil,
hogs,
corn,
and
other
also
now
natural
the
rich
cattle
wheat,
and
resources,
a/potent production
ter of durable
for
that
is
country
goods."
.
'
;
the
Middle
a
to
on
the history of the
that must be
before there is
a
future
Europe and for the world.
"They have the tools to do the
but the tools are doubleedged. The airplane, for instance,
brought them explosives and de¬
struction—but it also brings them
communication
rapid
and
move¬
ment of neoole. And because these
It
Peter S. Logan and Charles P. White, who
Company, Penobscot
Building, Detroit, Mich, along with Wade Sioane.
anniversary
head
been
is
the
of
150
firm
the
of
years
its
as
partners.
in 1804 that the
brothers,
John Henry and John Frederick
Schroder, established themselves
was
Illinois Central
the general bond few years, however, a program of
improvement in in- gradual diselization of freight opvestment
sentiment
toward
the erations has been adopted and it
better
situated
railroads,
have it expected that this will continue
been causing discussion in finan- at a steady pace. Thus, while the
cial circles as to the possibility of road may not get as spectacular
some railroads attempting refundresults from this new power as
ing operations. Two such pro- have some other roads with dis¬
posals are now definitely on the ferent operating problems, some
fire—Louisville & Nashville and further improvement in operating
1 Illinois Central. That of Louisville
efficiency appears certain to re-
as merchants in
grain,
coffee, tallow and other produce.
They were sons of Christian Mat¬
thias
Schroder,
market,
citizen and for
a
time
mayor
of Hamburg.
offspring, following the good
merchant
adventurers'
tradition,
left their native city, some going
some
Russia
into
their
others
and
England, to seek
west
to enlarge
or
fortunes.
Schroder,
grandfather of
head
of
himself
soon
firm,
present
showed
affairs.
;
'
will
of
premiums,
Jane
,
ities
June
rate, down from
an
of
average
3.41%
reported
for
March,
reflected the reduction on March 17 of the prime lending rate
from 3%% to 3%.
It was also down from the average of 3.45%
that prevailed in June a year ago.
Rates for
rates
on
levels.
large loans ($20,000 and over) decreased more than
smaller loans, and loan volume in June was below March
Short-term business borrowing was higher this June than
year ago,
however.
in
of
with
commerce
Schroder
the
one
year)
term loans
on
(those due in
more
3.54% during the first 15 days of June, com¬
last March and 3.47% in June, 1953.
Both the
was
pared with 3.53%
number and aggregate dollar volume of term loans were smaller
than in March when they were the largest ever
reported.
The following tables summarize the results of the current
of rates charged on commercial and industrial loans made
by the main offices of 12 New York City banks and 15 of their,
larger branches during the first 15 days of June, and also give
data for previous comparable periods.
survey
DEMAND
AND
First 15 Davs of
DUE
IN
ONE
YEAR
OR
March, 1954
Jane, 1954
First 15 Days of
June, 1953
No. of loans placed__„
Amount loaned
$705,000,000
$8152,000^000
$690,000,000
Average rate charged.
3.25%
3.41%
of
their
interest
the
world
brought
knowledge and
ciation
the
of
for
needs
appre¬
their
of
cli¬
a
from commercial
a railway loan to
in 1853.
In 1870
issued
the
London.
first
Cuba,
was
Schroders
Japanese loan in
It financed
the
building
of the first railway line in Japan.
There
followed
a
long
list of
European,
South
American
and
2,470
carry
In
1923
and 37/s%.
rect
di¬
secured
representation in the United
States
by
establishing
the
J.
Henry Schroder Banking Corpo¬
ration
in
New
York.
Like
the
London firm it has been primarily
concerned with commercial bank¬
ing activities; but it has also been
an
issuing
Schroder
formed
in
Schroder
York
a
house.
Trust
In
1929
order
to
give
the
in
New
organization
complete
range
ing and fiduciary
the
wa^
Company
of bank¬
services.
DUE
IN
June, 1954
No. of loans placed...
Amount loaned.
Average rate charged.
310
MORE
THAN
A
YEAR
First 15 Davs of
First 15 Days of
March, 1954
June, 1953
320
$190,000,000
$255,000,000
3.54%
3.54%
295
$170,000,000
3.47%
siderably better than have those
the industry as a whole—for
the five months through May
was 0
9.2%. Considering
that train service was not cuthack in any spectacular fashion,
management faith m
the future, expenses were well
controlled. Share earnings, never-
since
the - beginning , of\ .1941,
.equivalent, to approximately^$75-:
a
share of
reduced its fixed
an
indicated
million
rities
the
of
around
million
$16
outset
of
compared
N.
Avenue
to
Y/
—
James
conduct
a
V.
a
year
program.
R.
at
These
also
be
tending
saving in charges
realized is equivalent to
will
already
a share
$3.13
on
the
common
Federal income taxes, and
present charges absorb only about.
2.5%
of
gross
revenues.
Such
charges
pression
when
every
decade
large
keeping
for
.
in
that
would
nominally
1935
,
to
year
have
less
than
....
,
over
a
long
n
period
Opens
o
the management has been
notably successful in controlling
years
in
periods
Because
of
of
the
declining
lack
amount
of
new
and
steam power,
a
of
large
efficient
rities business from offices at 109
and faith in the development of the coal-fired" gas
turbine, the road has been quite
slow in adopting diesel power for
South
road
P. Sheridan is
Y.
—
engaging in
Warren Street.
1
Robert
a secu¬
freight
purposes.
s1;Lk'
York
status,
Exchange
become
a
SIWllTrn
J
on
na?tner
L?ru*'
^ c+n!S^V
ta
RrJS
v
New York Stock Exchange.
J?r* Coyle has recently been acfjv.e as an individual floor broker,
P?.1.01!.
0° ie waS W
Hempo-Uli Noyes & Co.
With Reynolds &
Co.
(Special to The Financial Chronicle)
CHICAGO, 111.
Kenney
~
and
traffic.
N.
debt
book-
made
were
Even
earnings
well
of the de-
except
charges
only
been
year
extraordinary
maintenance.
reported
been
have
would
in
covered
expenses
P. Sheridan
SYRACUSE,
strong
Alfred J. Coyle, member of the
N
^ Yor*
stock,
before
secu¬
business.
the
Considering
Goyle to Be Partner
In Hayden, Stone
$7.7
with
Illinois Central has traditionally
been an efficient railroad opera-
Ramo has opened offices at 198-12
1953.
in
Particularly
charges down to
level
annually
than
more
the
tion
HOLLIS,
stock outstand-
common
S9-39
]ToaJs adequate finances and the
ing. Moreover,
further
gradual pany analysts feel that such earnparing of this modest debt is prow°uld justify liberalization^
the present $2.50 annual dividend
vided for in sinking funds.
rate in the relatively near future.
In the process of debt retire¬
ment and refunding, the road has
T11.
109th
theless, dipped to--$2.16 compared
with $3.44 (adjusted for the tw©-
tor-one split), a year earlier. Fall
than $130 million. This represents' year
e3fning®_3^f estimated at no
a
reduction- of. some $202 million; 1°tvthao $7.50 a share against
present charges.
J. V. Ramo Opens
in-
con-
now
heavy grades, possession of
First 15 Days of
this
downward. The
Schroders
from
substantially
has
mortgage, outstanding
one
charges
domestic issues.
3,45%
2 ggft
now
now
sizeable
interest
at
is
It
in six series in the amount of less
credits.
acceptance
spread
Schroders
LESS
Fir?t 15 DaVs of
selling
Central's funded debt is
fined to
help
.
The average rate of interest
than
a
Con-
Except for those roads that went
which have moved in inter¬
national
made
ing the first 15 days of June, according to the regular quarterly
report just issued by the Federal Reserve Bank of New York. The
interest
an
early stage in its activities it
linois Central in the past 10 to 15
developed special ties with Latin
■years.
Aside from serial equipAmerica.
Sugar, nitrate, coffee,,
ment
trust
obligations,
Illinois
wheat, are some of the commod¬
issue,
a year ago.
The average rate of interest charged on short-term loans to
business concerns by large New York City banks was 3.25% dur¬
week,
of
company
situated.
dustrial growth in the south and
has also been highly successful
in building up its coal business
during the past 10 or 12 years,
Further
expansion
along
these
lines appears to be in prospect
Reflecting the favorable territorial
conditions, traffic and revenues so
far in 1954 have held up con-
Central,
an
favorably
benefited
modernization
million
the
Trafficwise
quite
com-
through judicial reorganization it
is
doubtful
if any road
in the
country has done such a thorough
job on debt reduction and maturity rearrangement as has II-
parts of the world, but from
long-term capital; and
banking there
was a parallel movement into is¬
suing business. The first Schroder
/
the
affect
to
all
mortgage,
to
merchandise
suit.
care
Mortgage
4V4s
outstanding—other series of
merchant
It began to finance the
banking.
in
use
$25
on
rates of 3%%
movement
take
to
solidated
Gradually, the firm shifted the
main
emphasis of its activities
merchanting
be
yard
done
be
saving
Europe.
so
3.25%, down from 3.41% in March, and from 3.45% in
for
which is scheduled for next
sending back coffee, sugar
and other produce through Ham¬
burg into Central and Eastern
ents
•Federal Reserve Bank of New York reveals average interest
rate on short term loans to business in first half of June was
will
maturity and to provide
cash
program. That of Illinois
and
from
1955
prehensive
successful
Even
.
Business Loans
a
some
during the
years of the Napoleonic blockade
of
England
he
was
importing
grain and tallow from the Baltic
throughout
on
Nashville
of
the
the
capable and
a
of
man
and
&
Henry
great
the
in
Strength
in London
The
Slight Decline in Rate
White
July 16.
on
of Tiarks have served
many
job,
cen¬
" '- v
used
to
Certainly
remedied
is
'Heart of America' region, so.
coun¬
of,
disheartening
past.
ec o m e
States
the Atlantic
or
they
of, the
part
our
b
United
tre¬
and
Charles
Logan
that of
inscribed in
the annals and three generations
east
past strife have
condition in Europe that
trust, based
for this is that Eu¬
has
to
seeing the ad¬
vantages of a peaceful and co¬
operative effort.
Europe is full
of hatreds, suspicion and lack of
are
in Europe.
"The
ily
Re-
Wornall
said
"Disunity."
tongues
S.
A member of the Schroder fam¬
and
word his
a
150th
of its foundation
John
Asked to
the
celebrated
mendous."
Wornall
Peter
have been admitted to partnership in Carr &
Company,
His
enough, we heard less
Europe than we do in
opinion of the 11 European
as
are
talk in
said, "and now especially those in
the Middle West.
They welcome
banks,
a
to visiting
hear much of reconstruction.
E. Jones
E. Jones,
indelibly
bankers, especially those
the United States.
Trust
Tiarks,
Middle
That is why they
Schroder
and
a
They
the
Vinton
Vinton
Another name,
York
in
Com¬
and
throughout
longer do
City
direct connec¬
want
Schroder
London, represented in
New
York
by
the
J.
Henry
Schroder
Banking
Corporation
of
pany
existence.
any
New
banks
see
"Oddly
war
interested in their cousin bankers
from
see
we
Henry
a
from our part of the country.
City.
are
to
eager
Simonds-Shields-Theis
of
t
e n
They
with
American
Mrs.
and
with
West, too.
tour
Frank A. Theis. Mr. Theis is Presid
see
decentralization.
business
he
called on 33 banks in 25 leading
European cities. Within him were
Mrs.
they cannot
West."
back from
of
tour
Europe,
for
know
Middle
the
he
banker
need
you
Wornall
Mr.
cause
greater than
us
"European
Espe¬
if
understand
world.
and
from
are
of
J.
"Perhaps
they
need of them in the future of the
cordially
treated.
said.
because
world conditions better and
re-
d
v e
Wornall
is
Celebrate 150 Yrs.
map
a
on
with which
Europe is greater than
the welcome accorded the visiting
European
banker
in
the
Mid-
in
Eur
names
world
"The welcome to the American
banker
topmost
c e r
a
the future if he is to survive.
the
to
of
part
Schroder Banks
located.
are
he realizes he must do business in
tancy in maki n g
yourself
known
territory
our
but
which you are
c o
point
and where other cities and towns
the
is
bank
to
on
the
European banker to¬
day knows where Kansas City is
Trust
has
-
FrancisA.
become
affiliated
with Reynolds & Co., 39 South La
SalJe
t
Mr.
Kenne)
was
forrnerxy with the trading departent
f Dempsey-Tegeler & Co.
v J
With First Trust Co.
CSpecial to The Financial Chronicle)
LINCOLN,
Neb.
—
Melvin H.
Charles J. Burmeister,
T.. .Goeres, Richard A.
Westcott and John E'. Wilson are
with The First Trust Co. of LinAndelt,
Vincent
In the past coin.
The Commercial and Financial Chronicle
26
,
Thursday, July 22, 1954
...
(330)
Pries Into
Puzzling
rily T';
Of Wall Street's Wallflower Rails
A MUTUAL INVESTMENT FUND
unds
Mutual
NATIONAL
minded
with which Scudder Fund of Canada
seems to have sparked the
The pronounced success
FREE INFORMATION
underwritten
was
FOLDER AND
time ago
short
a
CORPORATION
RESEARCH
(1954) Limited," it is reliably heard on the 'Street from
Etfablished 1930
120 Broadway, New York 5,
New York
J
practically
every source.
This
conform
in
itosis
of
and
41%
a
Fund
their
holdings
by
to
value.
rail
study
^
Canada, Ltd.—had
Funds
INCORPORATED
real
INVESTORS
Francis I. duPont & Co.
This fund
mutual fund
A
with
selected
securities
long-term growth
of
will be
Prospectus may be obtained
from investment dealers or
200
No income will be paid out to share¬
reinvested.
capital gains tax
a
In the meantime,
Corporation
Berkeley St., Boston, Mass.
ture
primarily in Canadian securities.
deal at all.
a
this
Michigan.
American closed-end investment company
an
GROWING
TIIE
*
for the Free World has
uranium
been
highlighted
du
COMMON STOCK FUNDS
The Keystone Compaily
ing uranium in
your
the
for
Africa
the
United
Name...
always
of
Atomic
Several
officials
evaluate the
mittee
source
ura¬
the
and
the
area
to
as¬
A group
Energy
mining
EATON
assets
last
Recently the Export-Import
Bank granted loans of $92 million
&
uranium
officials
processing plants.
have
nium
through
Mutual
a
Fund
mining
tions
may
The
Mutual
and
milling
surpass
Combined
mining
South
companies
purchased
West
-
in
gold
gold
which
are:
the
Lui-
Vlei
(3.200 shares), RandEstates
(1,300
shares),
Rand
Consolidated
investors
Funds'
(1,300
(
charge is 7%, with
investment dealer or write to
Securities'
changes
of
Group
Stock
Common
cal
Nov.
half
30,
Fund
1953
and
May
included chief iv
purchases of shares in strongly
entrenched
companies
:in
such
price-depressed and cyclical in¬
dustries
year,-
as
steel, maehinerv, met¬
namic
growth industries
and electronics.
as
drugs
v
•
Purchases included 1,000 shares
BULLOCK
Investment^ objectives
are
Eilablithed 1894
long-term
growth for
0 nc Wall St., New York
this Fund
capital and income
its shareholders.
upon
request
Lord, Abbett & Co.
Chicago
—
being bought for the yield at
least in
'
part.
the
"Under nresent conditions,"
n
study concludes, "when returns on
good grade industrial and utility
stocks are becoming increasinglysmaller it is natural for investors
to turn to the railroad section of
31.
offering
Sales
dealer dis¬
to
1,000 Bethlehem,
there appears
the present
certainly
be every
reason at
gelnerally
time(to expect dividends
to
Wort.hington, 1,000 Yale & Towne.
larly,- many of the . bettergrade
railroads will be able to limit their
"So
year
Square
Atlanta
—
Los Angeles.
were
*
An
of
average
in
10%
be
are
con¬
this
lower
than in 1953. but making due
for
maintenance, poli¬
months particu¬
declines to substantially less
the 30-35%
Class
I
than
drop suggested for
rail^ a"d
there will be little or no
decrease."
D,
"
of
earnings
£7/ie
,
Reports
PUTNAM
!%'■ in sales and
of portfolio com¬
panies of Chemical Fund, Inc. for the first,
quarter of 1954, as compared
with the
corresponding quarter o£. 1953 is reported
F.
by
■«,
the
Mr.
FUND
r
President,pf the fund in
quarterly report,to stockholders.
Eberstadt,
64th
Eberstadt
noted
that
at
June
30,
net
assets of the fund
$65,398,969, equal to $23.15
higher than at the end
of
any
previous quarter.
This- compares
with
aggregate net assets of $50,964,467
or $18.57 per share gt June 30,.1Q53.
The
fund had 2,823.803 shares of capital stock
aggregate
amounting
share,
i
^
to
were
30.f-lo54,
2,244,074 shares on. June 30, 1953.
outstanding
on
June
all
in several cases
American Steel
Fund
increa&e
net
will
cies, in the early
Briggs
Chemical
earnings
as
they
allowance
Laboratories,
3,000
Mathieson
Chemical, 500 Parke. Davis,. .1,000
1,000
and in some in-
increased.
far
cerned
2,500 American
Smelting, 3,000
Anaconda, 2,000 Phelps Dodge, 1,900 St. Joseph Lead, 2,000 Abbott
Allis-Chalmers,
be maintained
stances
Mfg.; Interna¬
tional Nickel gnd United Aircraft.
of
Canadian Fund.
are
have
Here again
stocks
railroad
1,200 National
1,000 Republic Steel, 1,000
U. S. Steel, 3,000 Blaw-Knox, 2,000 Bucyrus-Erie, 2,500 Deere, 1,000 Electric Auto-Lite, 2,000 Fair¬
banks, Morse, 2,000 International
Harvester, 2,000 New York Air
Brake,
1,000
Pullman.
1,500
per
New York
laggard»
that
Steel,
1954,
Prospectus
Address.
In
more.
in rising markets
evidence
"And,
M-
free booklet-prospectus
Name.
and
the market.
Armco Steel,
Foundries,
A Common Stock Investment Fund
1
40%
been notably
,
als and mining. Purchases also in¬
cluded selected issues in such dy¬
Fund
CALVIN
on
a
September 1935
grade railroad
have
registered
1,000 Inland Steel,
PORTFOLIO
Affiliated
free booklet-prospectus
me a
'firework^'
count of 6%.
Eliminated
possible participation in Canada's growth.
Please send
and
ex¬
usually volatile spec¬
ulative issues which produce the
time
March
on
to
and 500 Snerry Corooration.
corporations selected on the basis of
from your
assets
$66,906,
stocks
up
market
contrast the
devote
price per share was $7.31.
aged investment in common stocks of
a
net
were
the
better
common
is
development of the Mutual
Total
1954
the
gains
,
designed to provide a diversified, man¬
Get the facts in
Re¬
"it
oerhaps
selectivity as to qual¬
Since
lows
was
Cor¬
his
lower per¬
that
has the
before
never
...
to
of
part
a
continues,
Bullock
recognized
be
must
Investment Company of America.
of
history.
31, 1954, the end of the fund's fis¬
opera¬
African
stock
to
the
between
Atomic Development Mutual Fund
has1
sales
six-month period
amounted to $12,578,416, the high¬
est for any six-month period in
the
considerable
to the
totalled
Fund
intends
Haslam
Mr.
by
the present price
to
return
advance,"
he
the Estate of Edsel Ford.
Jan. 1, 1954; Eaton
Stock
"To
appraised the stock
of the Ford
Motor Company in
connection with the appraisal of
a
Howard
Poor's
high¬
centage of pay-out of earnings.
hibited such
Standard
&
reversed
been
been accompanied
ity.
Standard
poration,
1954, totalled
compared
with
as
on
Haslam,
Associates,
1947, when Mr. Haslam
of
however,
time,
has
yield of the three Dow groups.
Moreover, these high yields have
Mr. Haslam spe¬
of
that
Since
situation
est
purposes.
iary
as
ura¬
the
City.
substantially
yield
a
than the railroad stock aver¬
age.
search Consultants, Inc., a subsid¬
totalled
assets
AEC
predicted that
soon
five
fontein
U. S. mutual fund, is
the
of June 30,
as
during
mining industry there in size.
r-aards
Canadian Fund, a
tax
$27,354,779 on June 30, 1954, as
compared with $20,860,870 as of
Jan. 1, 1954.
to 17 different gold mining com¬
panies to finance construction of
Canada
HOWARD
&
more
held companies for estate arid
In
combined
$101,963,256
also
region
summer.
^
in
provided
company
G.
Haslam
Vice-President
$147,291,427
Congressional Com¬
Atomic
on
surveyed
in
New York
Belgian Congo.
Funds'
Com¬
Energy
visited
.....
Invest
uranium
processing
John
by
of
as
1942 the utility stock average
and
cializes in the valuation of closely-
(Katanga Cop¬
which is mining
Company)
$119,936,648
from the Joint
State.
of
amounts
sist in the development.
Addrest.
been
uranium
States, interest in
valuable
mission
0-96
has
source
nium oxide.
to
City
principal
pur¬
Miniere
Union
in
yields are concerned,
Bullock notes that, "between 1935
far
with the rails providing the
investment
headed
account
for rail-r?
%v--;
stocks."
common
So
Inc., a financial and business con¬
sulting firm, also at 32 Broadway,
Haut-Katanga
per
and
area.
shares
road
distributing organization
President
of June 30, 1954,
South Africa began only a few an increase of
$24,467,301 or 20%
years
ago when
the tailings of since Jan. 1, 1954.
gold mines there were found to
Eaton & Howard Balanced Fund
Organization *nd the shares of your
Funds.
ten
describing
that
Although the Belgian Congo in
contain
9, Mass.
prospectuses
both mining and refin¬
are
Central
BOND, PREFERRED AND
me
addition, the Fund has
chase of shares in five companies
Custodian Funds
50 Congress Street, Boston
In
chased
which
(1,400
Reefs
shares) and Rand Mines, Ltd. (700
the Atomic
by
Western
the
with the in¬
well
could
for the recent new highs
the
are
shares).
source
Development Mutual Fund's pur¬
eystone
Please send
shares),
importance
major
a
as
payments
dividends
of
diversified
,
of
of
South Africa
to follow
dividend
of
course
"This factor together
company's activities in other
and
two
creased confidence in the stability
Com¬
areas.
the
the
prices have tended
the
mainly in the State
At the end of 1953,
year,
Both
>
rail
by
rose
of
rather than the level of earnings.
management entered the pic¬
with the idea • of expanding
the
It
that this 60% be sold in order for White, Weld to
necessary
have
to
of
new
Corporation,
capital stock.
1938, the company operated, prior
White, Weld & Company reports it has al¬
which will invest its assets
was
profits realized from the sale of
of the 100,000 shares—at $25.00—of Inter-Cana-
ready sold 60%
dian
on
81% over the
periods and
95% over the longer one."
Looking for the answer, Bul*lock points out that with the exr
ception of earlier years, general
open-end management type of in¬
vestment
company]
Formed in
This fund expects to open-end in 1955.
their fund's shares.
in-r-
the
comparison, the Dow-Jones,
stock
shorter
has just placed
a
of 175%.
250%.
was
prices
n'fw offering of
of America is
pany
1949, the Dow-Jones in¬
common
stock
railroad
of
"In
Com¬
Investment
'
estab¬
index of industrial common
the distributing! 'agent.
Mutual
market
of
trend
tained in 22 years, a gain
From the close of 1939,
recently1 formed to act
was
the
prices soared to 112.53 in Decem¬
ber
1952, the highest level at¬
Broadway, New York City,
32
The
holders, and consequently the only tax to which they will be liable -
capital and income
The Parker
of
which
as
rities will be
best
dex
be; made through
the MICA Fund Distributors, Inc.,
syndicate.
by
lished in
>
it^
investors
prices in recent years."
"From
a
low of 41.03
crease
Investment
100,000 shares of
Here, again, all net income from the fund's underlying secu¬
lor
Mutual
win
strated
Distribution will
organized in Toronto by Continental Research
was
"I
pany pi America
on
the market a
Corp., the investment adviser to United Funds.
of
portfolio
diversified
a
The
Co-
The stock will be offered through a Glore, Forgan &
share.
a
speculators is clearly demon¬
Expands a
Michigan Operation
.
registration statement filed with the
a
the
influr
and
to
ence
opportunity
than
less
"that
how
operations and net
under
MICA
proposed offering of IV2 million shares at $12.50
SEC Covering a
drop in net
for running
reason
rails, Bullock comr
this country's rail-r
roads have once again discovered
from
ments,
conditions, Bullock's special study
much the same lines—United
Another fund, organized along
gross
business activity
first
the
results
The new fund
market price at a discount from net asset
a
four
in
Noting that the current—or re¬
fear being locked into
they need not
because
investors
to
Despite this
away
railway operating income.
'
tive
the
first
the
below
million, an ex¬
pected improvement over the de¬
cline to date of roughly 50%.
from the hal¬
decline
13%
a
revenues
redemption at net asset value feature—attrac¬
will also have the
the
in
months of this year
might show
30-35%
of
for
income
net
1953 level of $871
though the lat¬
even
suffered
ter
offers
respect to the structure of Scudder
every
choo-choos,
cent—decline in
previously discussed in these columns.
of Canada,
decline
a
to the once-wallflowered
over
type, domiciled
the tax situation.
th a t
finds
In this sense, it
Canada General Fund, will be of the closed-end
in Canada to take advantage of
will
of
utilize the efficient management
which, will
fund,
rails,
glected
that
Class I roads this year
management
higher-priced industrial and util¬
ors
joint underwriting, is
expected to offer the middle of August 2V2 to 3 million shares—
at $10 a share less a maximum of 7% %-—of "Canada General Fund
Paine, Webber Jackson & Curtis, in a
NATIONAL SECURITIES &
conclusion
ity stocks may be shooing invest¬
by investment companies.
Great Second Trek to Canada
PROSPECTUS
investment
"tongue-in-cheek"
has reached the
curiosity-
department, prying into the puz¬
zling popularity of the once-ne¬
Trek to Canada Is Revived
WRITE FOR
Bullock's
Calvin
By ROBERT R. RICH
SERIES
CARTER G. BURKE
By
SECURITIES
against-
fvtmam Fund Distributors. Inc.
50 State
Itiim
» »'
Street, Boston
*
Volume 180
Number 5844
.
v'. The Commercial ~arid Financial Chronicle
NAIC
Reports v
On Net Assets-.--.-'
:::
OPEN-END COMPANY STATISTICS—-JUNE
30, 1954
•.
Ill OPEN-END FUNDS*
!
'/
Total
net
of
assets
all
in¬
142
-V.
"•
.
Source:
National
members
Association
panies
of
of
the
National
Investment
to $5,991,600,000
rose
Total-; Net
Com¬
as
30,! 1954, compared
$5,074,519,000 at the end of
June
Assets
of
31,
1953,
1953
the
31
closed-end
companies, total
By OWEN ELY
6/30/53
$4,146,001
1st Quarter
$3,861,924
1st 6 Months
Are
1st 6 Months
1954
1954
1953
$375,123
$359,565
193,693
131,403
107,000
PURCHASES
AND
86,693 /
SALES
OF
PORTFOLIO
SECURITIES
2nd Quarter
1st Quarter
2nd Quarter
1954
1954
$314,739
$246,514
226,370
Sales
(.HOLDINGS
and
OF
CASH,
U.
130,593
S.
GOVERNMENTS
SHORT-TERM
March
31,
31,
June 30,
assets
The
gated
$1,039,700,000
as
against
$928,458,000 at the end of 1953 and
$900,358,000 a year ago.
due
to
10
Gas Transmission
10
Gas Distribution
AND
*30
1953
1954.
♦Includes
Gas
45.28
stocks.
common
stocks
common
36.62
37.21
_
stocks....
common
31.80
17
23.97
19.88
21
funds
may
new
slightly
vary
members,
however, the figures for different
dates
etc.
are
from
quarter
Except
to
to
26.69
31.47
stocks used in the above groups,
gas
plus
stocks of
Sales of
shares by
new
the
for
1954
second
degree,
cludes
Averages
comparable.
compare
with
a year ago, as
follows:
'
Percent
amounted
July 16
mutual
group
of
quarter
7
sales
uniLfi/1
gain of $15,558,000
half of
the
over
United
..
a
up
Fund
share
also
increase
an
in
30;
redemptions, the Association
sales
for
the
first
half
Net
Sprnritipc
n
U.
S.
This
its
with
,/^LnnTn
$533,000,000
is
IS
for
first
nvailahlp
avaiiaDie.
not
noi
Of
nor-
r0cnLt,'v0lv
three months of
Open-end
companies'
tt
f
1954.
t
Corporation
investment
June
on
assets
30.
the
subsidiaries
a
of
net
investment
months.
climbed
increase
an
of
But
assets
in
$204,-
the
value
asset
for
the
.'first
"
'six
United
$2,065,036
$3,833,030.
year's
in
the
over
figure
which
by
I.D.S.
currently
of
licened
through
^ 'ast year'
issued
a
J,
-y;v
•
-.
■|
•*,
;
•
'■;'
'
-;Vv ' ^
of face
b(y
by' Investors
Common
Mutual,.
net
of
June
as
the
of
certificate
in
stocks
?y"
.-
'
1
; During
of
at
the
80%
at
Stock
the
companies
whose
quarter
its
holding
industry..
rails,
of
busi-
V
>
contingencies
minimum
June
share
on'
industry
tire
in
some
earnings
the
In
shares
outstanding.
nof
with
was
a-total
the
of
net
<;
uoim>
oi«>»
value
asset
an
of
the net
Net
June
paid
in
uninterrupted
come
on
and
tion
thp
tne
expendlflires
its own-ligtock
s
ing
amount
issuance
the- net
rnrnnm-
corpora-
exceeds
;+
Cwiwi
the
+Vi«
received by it from - the
of ^additional
shares
by-
amount of $9,272,987.
vc;,
An
inViestOr<iwhO
/
to
increases
combined
30,
of
1953
deduction
T
paid $104 for
& Foreign alone on
$99,132,202 and were
share
per
outstanding and,
value
second
of
of
first
after
h"'i;d"+,"n
m
preferred
de-
nf
tvm
in
the
$90.49
pbr
stocks
$10,000,000,
with
compares
30,
On
net
"
of
1953
to
asset
value
on
$90,107,918, equivalent
share of first preferred
per
share
of
common
per
and
$76.25
of
April 8,
call
for
48,800
stock
Net
1954 the directors authorized
redemption
shares
outstanding
assets
of
of
at
U.
on
the
$105
S.
June
first
ner
30,
less of
stock
ducting
International
&
at
the
outstanding
value
in
and,
after
liquidation
of
dethe
flrst
and second preferred stock in the
total amount of $34,995,000. to $13.67 per
Share
.
on
per
$9.31
0f
comm0n
june
*Si*ts
.
of
share
per
30.
stock
1057
u.
$59,099,504,
of
share
first
of
outstanding.
s
^
equal
preferred
common..
1.
to
$295.50
and
in recent years, reflecting
But recently the flow of dividend
have slowed down.
On the other hand, the
a
to
seems
stock offerings has diminished
new
burden
somewhat,, placing
the market.
on
concentrating exclusively on the
real look at t^e secondary issues. There
Possibly it is time to stop
still
are
may
take
a
plenty of utilities yielding 51/2-61/2%. and some of
be worthy of greater attention.
E. E. Smith Co. Offers
Harley Patents Stock
E. Smith Co., New York, is
offering "as as peculation" an is¬
sue
of
25,000 shares of capital
stock
(par 10 cents) of Harley
E.
Patents, Inc., at $1.25 per share.
The net proceeds from this sale
are
to be used
velopment
pany's
to pay for
and
sale
products
the de¬
the com¬
of
and
for
general
corporate purposes.
Harley Patents, Inc., was organ¬
on May 7, 1954
ized in New York
to
acquire all of the assets of the
Harley
Buckle
Division
of Sem-
bodja Corp. of New York, which
was
engaged
market
in
the
in
developing
the
States
and
United
Canada for the items invented by
h-"'
stock
.
large extent,s substantial gains usually result from
Some of the so-called "growth" has perhaps re¬
a
'"blue chips" and
1954
preferred
sh*re,
June 30, 1954 were reported at $68,981,189,
equal to $349.63 per share of first preferred
Others, like Florida Power & Light, have
of
stork.
the
To
amount of
S,
U.
were
$1,982.64
'he
$901.08
stock
dividends
repurchas-
in
w,,
$42,-
growth stocks are earning
four years ago, and these
or
increasing percentage payouts.
Corlyui-
Sh->re of common Stock outstanding.
*
In addition, since
FstahlishiVt^nt
of
amount
stockholders in
esiaonsninqni,
similar
to
and
June
frpi^ net ordinary in¬
$61,QjlO 663 from profit
investments^
its
11s
of
a
June
a
1954
total
■
qjiarterly
on
after
first
$158,409,-
capital; of $100,000,000 it
C "7,552,323
d""tino-
at the
reported
l.p29 with original
has distributed to
with
compares
value
assets
30,
This
y* i
Established!?in
year
was
deduction
a
construction.
indicated
value
of
investment in the af¬
Foreign's
preferred stock
Corporaticn
asset''V^ue
024.
after
they did three
as
sulted from regular dividend increases
Secur¬
United
now
bolstered by substantial bookkeeping credits for in¬
are
increases.
rate
combined net asset value
a
This
equivalent
Lehman Corp.
2oti-4scal
Foreign
Securities
taecuruies
on
same
so-called
of the
Some
cases.
earnings.
June
affiliate
&
its
and
of 5.1%
The price-earnings ratios of 16-18%
ties
$34,399,675.
.-4^2
The Lehman
&
asset
$114,807,747
Closed'-End News
end cf its
S.
net
level.
States
ended
year
average
ratios in 1946
representing
filiate.
amount
half
International
iiueriiauunai
$125J25Ml
U.
mortgage
71%
an
dustry, but it takes a very sharp pencil to figure just which utili'can
convert gains in gross revenues into increased
share
nf
Foreign
the
United
&
«
387,950
$609,462,-
new
$92,000,000,
&
Corporation
P°rati°n show
Qf
Services,
servicing 78,628
value
1952
1954,
States
otaies
.
Diversified
I.D.S. "made
U.vS.
30,
assets
tha real estate mort-
year-end
1953.
its
16.8
4.2%
gains.
1
:
Nobody questions the long-term growth potential of the in¬
;j?/o shares-" and ^33.65 at the. end
Reporting for
flfo rpa^ ^fnfp^rt"
emnlo'ved in
emPloyed in
field. Investors
at
of
R,mHin,(o
62
shown regular
per
reserves
Company
76
16.9
payout (71%) is lower than the 75% for all utilities.
Anticipated gains in share earnings may prove disappointing
about the
Ay.3,
:
are
16.5
average
the
"30","" l954of""$39^0
th<»-"/nnmnomc
This compares
•
66
79
(which were based on
expectations of higher earnings due to the ending of EPT) and
compare with an average for all electric utilities of 14.9.
The
reduced.
were
of the high
reminiscent
are
increased
also
were
public utilities and
360,000
'
f
14.7
16.2
of 4.2% compares with
for 135 electric utility stocks.
common
the
:
Averages
.1
4
In
at
ities
portion
fnwctnrc
approx.mating
88
3.7
The average yield
;
and
paper
Industry
value""
was reinvested
Investment
substantial
a
loans totaling about
York 5
69
25.0
4.6
Texas Utilities.
Tri-Conti-
steel
of
rubber
and
ocuiuiunw.
the
the
In"
ln "
?13.
<3 Well Street, New
71
16.7
4.9
_
be¬
_
second
doubled
Holdings
. ..
1940.
fhr.cp.yif
Inc:.
Request
81
16.1
4.5
_
of
end
the
'1
the
in
stock
in
to purchase »ddi-
and
excess, of.
mortgages.with
on
65
17.1
3.5
_
approximately 82%
assets
with
and ,bevera8e
reserves
^J-equired/: under
ica
/vailable
60
14.9
4.4
each
for
$413
year.
*%< .i( Investments
f„f0i
gage
June 30, 1954
17.9
4.8
_
T'toSmSntT^ral0 JSSSTSZ
or improvement in general business ac-
iees group a'moynted to $1,257,763,000. This;/ 5
total-iniRluded 'securities ' investments 'of';.?
■i With
Semi-Annual Report
73
4.4
.
recent
months
Tri-Continental
in its portfolio changes the
common
com-
'•
nnri
1854-1954
54
16.7
favored
volume! nental
Inc., /'Investors
were
compared
During
e
has
a
Syndicate
stocks
Investment
as
ginning
amount
.
f shareholders
,
Act of
Ctnttnntal
74
14.4
3.3
.
quarter the company
$10,289 for each $1,000 of
of
outstanding and
of preferred stock.
share
;
;
Total 1953 sales volume of shares
t
amply
.
67
17.8
4.4
.
$624(055.482.managed by IJD.S. 4u behalf '. Major categories of common stock hold•
of its subsidiary,- Investors Syndicate of'f'included; -oil
and gas. stocks,
for
i.
America,
Inc-, ^and"- the > three- affiliated
23i6% ^/ public- utilities
9.9%;
building
."«• mutual fundsr--'- v"-J,:. •r'" .- 9.7%; and electrical products 7.1%.,
;; ^ /• Total funds appropriated by I.D.S. for",
1
15.5
3.8
.
-
;
i
79
4.2
the
of
debentures
than
reached
end
assets
had
sales
more
representatives,
the
At
$1,466,731.
number
dlvid«hds paid^by the funds
months^ df :1954 totaled $15V2'
with
million
'with $12% million 'a '
a
million ' eomnareri
million,:'compared
65%
17.8
4.1
on
terest
for -the
Payout
U4.5
4.3
_
retained in the business.
were
distributed
30, 1954* Investors
Funds
Dividend
Ratio
4.4
.
pro-
vidin& for Possible Federal Income tax
PE
Yield
4.5%
Recent
stock
after
utility
on
Moody and Dow Averages reflect mainly
:
"'Y.V?United Funds
the Tour
the
past
common
share,
per
yield
;
largest
<•'
of
between the
40 bonds; now this difference has
the "old"growth" stocks
—though Houston Lighting is included in the Dow Average. Yields
on some growth utility stocks are now
getting fairly close to the
average bond yield as is indicated in the following:
1954 and the -1953
yearrend cash the- report disclosed. ' The three ' mutual-. - •. ( /
1
position Qf $263,647,000/:^;»re affiliates for which I.D.S; acts, ^ ^ c* . 'National Shares
/
by contract;-as investment manager and-"-'-National Shares Co
'. Sales
on
•'
amounted to $30.47
$2,608,-
were $274^68.000.,: ^M80ftparegyS!°4..te;.»«'
with $295,975,000. oriV March
?lv irar ed
.
yield
.
Net
*
of
income of
.
*
1.90%
spread of
line" utility blue chips—not the new and popular
reported
were
a
reported
company's 25 years of operations,
gain of $28,558,000 in the market
the
and
compared
of America, Ioc,/was $266,078,094,
Pared with 1952 certificate sales
Of $241,445,710.
-
/
on
in
Continental
$5,973,315,
Total 1953 saIes volume
•
ojr^
^
j
United
value
increase
-.certificates
holdings
c
^
short—term bonds on June
of
was
$7,908,055,
previous
neI
(ho
r
net
with the industrial.
1953.
2'330
$226,370,000, respectively,., for ,tne;.
first
30
Income of Investors Diversified ServInc., and undistributed earnings of
force
and
1W
th«t
was
.
an
and
were
with. $314,739,000
<K99f? 17(1 nnn
1953
Sales of face amount investment certificates and mutual fund shares, sponsored
$327,193,000 and sales $253,185,000
compared
the
in
-Tri-Continental
21%
narrowed to 1.16%.
Tri-Continental
$18.-
10
stocks and the average
J
were
106.03
time there
hiari
from profit on investc
ments, the report states.
six
to
the
pur-
quarter
$14,129,258
asset" value
A11 earnings
1953
Portfolio
FOrtlOllO
Chases for the Second
assets
:^
oqq ok
were
The company's share of the 1953 undisl
tributed earnings of its subsidiaries was
$2,009,989, an increase of $543,258 over
niifphasps
half
Fund's
117.16
net unrealized appreciation of investments,
a rise of more than 21% from the $25.21
^,or^ed aL
of.
yeTar aihd
39 " Jrom the $23.52 reported on June 30,
1952
and sales Of $367,-
the
assets
nf
and
and $91.87
v.
Fund's
tntol
0
/ '25
It is interesting to note that the recent average yield on the 15
utilities in the Dow average was only 4.39%, compared with 4.84% r
on the 30 industrials and 6.10% for the 20 rails.
A year ago at this
ctnrdr
066,
200,000 for the last half Of 1953.
Data
•
.
June
Qn
chams nf ranital
294 over the 1952 net income of $5,299,761.
The net income of I.D.S. alone was $5 898 -
to-
7 ? PU/C™Sr,eS
of
Science
wholly-owned
1953
$479,555,000.
romnarps
,
$3,032,402.
ices,
of
$641,932,000, whereas total
were
compa^^wrtiTVes^ii^?
IDS Income at Peak
(excluding
securities)
rpppivoH
49.08
270.96
The utility average has almost kept pace
con-
received a total Of $99.25 in dlVidends from net ordinary income.
$647,748.
--
period,
June
Net
(PYPlnHirw
bought
Government
tailed
sa'es
hmiuht
V
$1,495,240.
up
investment
y ^ S1X snares 01 Capital StOCk
witn a total net asset value of
$228.84.
During this period he
Continental
were
1054 ojv
7
59.57
339.96
—
4
~
his
'
■
1954, the Association revealed.
rr
on
891.000
Fund
companies for invest¬
portfolios substantially ex-
r^ded
$1,929,220
against
opdn-end
ment
rose
United
U i
J
retained
tinuousIy since then held
$6,567,175
Accumulative
period.
the
by
and
Accumulative
576 447,"
with
securities
---
United
...
1953.
of
of
v\/4
r.
and
year.,
$31,765,403, compared with $16,649,118. *
of
generally rising
redemptions
amounted
to
$193,693,000, compared with
$131,403,000 for the corresponding
Purchases
of
1953
United
markets,
period of
sales
United
$5,362,304
$9iv74i,428,
the
cb/\ttro/l
over last
Increase
Rails
" r, snar® OI capital slock oi ine
Income Fund's „CL a,OSCi,s JUU
4„
net assets June ju
30
"*
ended June
of
$360,235,
sales
were
in
period
a
Utilities
Year Ago
Industrials.^
share of caoital stock of The
one
Science^ Fund^ sales of $1,641,306
United
reported.
For the six months
and in
Fund shares still
Fund
.
Fund
$451,704;
sales
United
were
was
Income
up
Fund
first
1953.
There
Armimillorivo
were
$375,123,000,
were
30,
million.
largest comparative gain
.
For the first six months of 1954
total
June
on
Sales of United income
7
:
million
was above $151
Corporation when it was
Hthea largesf *of th™ f2ur showed but orifinally lssaed on Sept. 24, 1929
funds>
United
Accumulative
Fund
the
$184,500,000,
compared with $159,600,000 for the
T
$148
was
mid-July
to
like quarter of 1953.
18
integrated
10
The Dow Jones utility average is a mixed group since it in¬
11 electric utility and four gas utility stocks.
The Dow,
quarter
minor
a
20
.
funds
'24%
companies.
gas
274,368
of
Natural
stocks
common
$263,647
295,975
liquidations,
mergers,
Electric Power
BONDS
1954
number
precise
24
Increase
Year Ago
July 16
Purchases
at the end of the first half
aggre¬
Percent
1953
$327,193
253,185
Utility "Growth" Stocks Getting Too High?*
Utility stocks have been giving an excellent account of them¬
selves during the past year, following the decline of early 1953
which was attributed principally to rising money rates and re¬
sulting "competition" from bonds and preferred stocks. Following
are comparisons with a
year ago, for the Moody utility averages:
(Excluding U. S. Government Securities)
invest¬
net
12/31/53
-
Utility Securities
Companies
$190,623
Redemptions
December
For
$4,582,433
.
Public
'
$184,500
Shares
of
$1,090,000,000 since June 30, 1953.
ment
V'„
!
1954
open-end
companies rose to an
all-time high of $4,951,900,000 on
June 30, 1954, an increase of $805,-
Dec.
"
«)
Investment
3/31/54 \ ^
2nd Quarter
Sales
According to Association sta¬
tistics, total net assets of the 111
over
of
of
..
$4,951,1)00
with
the Association announced
Friday.
000,000
000*S
6/30/54
•
.
(In
Association
■
dustry
21 '■
(331)
l
Frank
B.
Harley
Surrey, England.
of
Camberley,
'
them
Th
Ofi
*-*'
J-
~
♦
-
'
/OOA\
V
The Commercial and Financial Chronicle..,
28
(332)
with
"1
their
News About Banks
of
the
NEW
OFFICERS, ETC.
at
CAPITALIZATIONS
meeting next month.
a
These banks
State.
John
and
Maher
Vice-Presidents in the Foreign De-
partment of Manufacturers Trust
Company,
New York, was announced
July 15 by Horace C.
on
operations of
exchange
has been
busi-
bank and in recent years
Ralph E. Erb has been made
for- Assistant Comptroller.
the
supervises the
Maher
i' Mr.
Charles E. Miller and Karl A.
Stad now are Deputy Comptrollers
and
Flanigan, President.
eign
Jr., Andrew D. Wilson, and Arr
thur J. Johnson. Alfred J. Tria
has
been
named
an
Assistant
Secretary.
liaison officer for the bank's
Mr. Edward A. Nash,
Total
Bank
New
Trust
York
as
the
of
resources
&
were $70,498,484.97
with deposits
reported as $65,307,844.28.
Banking Department of the
State of New York gave approval
July
on
Four
ant
stock
idated
The consolidated
July 2.
At
effective
the
the
will
capital
have
date
of
national
financing
government
various
of
He
programs
agencies.
joined
the Trust
Company
in
April, 1936, and was appointed an
%
of
Appointment
Donohue
01 d
r
Assistant
an
as
Ha
P.
Secre-
tary of Manufacturers Trust Com-
also announced July 19.
pany was
*
Mr.
ManuTrust in February, 1947.
Donohue,
facturers
In
to
came
March, 1953, he was advanced
of the banks
to Assistant Manager
He
Office.
at
Fourth
Avenue
present
Avenue
Philadelphia, Pa., died
per
ancj( in
pointed
an
dent
the
of
charge
Empire
the
of
ap-
Vice-PresiCom-
Assistant
Trust
Mr. Miller
New York.
pany
bank's
the
stockholders,
issue will
outstanding to
new
increase the shares
10OOOO.
is
in
investment
portfolio.
-phe
hank
total
capital
funds
of
the
of June 30,
1954 amounted
to
$2,073,251.42, which compares
with $i)970)334.95 a year earlier,
as
*
meeting
a
#
#
H.
the
elected to
Dwight,
Trust
Ju,y
Qn
company,
New
to
White
York, voted
tion
bank>s
the
H>
Plains,
recommenda-
a
stockholders,
that
the
of
stock
$500,-
Republic
than $139,000.
Mr.
❖
*
staff
*
Board
of the Federation
Company, New
nounced
it
York,
was
an-
July 15, by Thomas J.
on
Shanahan, President.
Georee
named
of
W
has
Morgan
Board
Colonial
Trust
been
Directors
of
Company,
New
York,
according
to
Arthur
S.
Kleeman, President of the banking house
#
*
Announcement
July
.
16,
by
made
was
A.
B
on
,
...
a r n e
t
and Henry R. Sutphen, Jr., Presidents respectively
of the Irving
John A. Byerly,
Fidelity, and C. A.
by
McClintock, President of Colonial.
shareholders' meetings have
been called for July 29 to consider
the ratification of
plan of merger which
was
approved by the boards of
both banks July 13.
joint
The
merged
It
is
contemplated
that
Mr.
Byerly, President of Fidelity since
1953,
October,
will
be
the
new
..
la54' a"d l£
£heI;
Chairman of the Board.
ander P.
of the Board
granted
visory committee.
the
authorities
is
will
division
stock
Dr' lHuShes said tha* under the
recommendation approved by the
board pa'.'
of C°unty T™st
? «.?«r
e, iathe-J
??
current $16par value and
" 1S exPected that' the annual cash
s^.ar.'e eSua*Pn^curren^
cas^ dividend rate of $2.
come
merger
institution
funds and
the
of
will be¬
trust
will place the
in
The
new
total
his
in deposits
of all
business
in
all
will
the
He
loca¬
present
Colonial, quarters on
Wood St. and Dia¬
will
be. known
as
the
Ave.,
mond,
York—of
banks
a
single institution to
as
Savings Bank, New York.
fective date of the merger
Aug. 2,
Mr.
1954.
Barnet
will
become
officer
chair-
of the board and chief
tive
of the
Mr; Sutphen
tive
John
will
H.
serve
of
and
Presi-
as
Hammett,
Vice-President
execu-
bank
new
Execu-
the
Irving
Savings Bank, will continue in that
capacity
after
the
will
be
composed
boards of the
The
merger.
Board of Trustees of the
of
new
the
bank
present
merging banks.
Combined assets of the two
.<
savr
ings banks exceed $147,000,000 of
which $132,000,000 represents the
savings of 82,600 depositors.
*
*
branches
are
In
in
Utica, New York, which was established in 1812, will join the
Marine Midland group of banks.
$232,000,000 and deposits
of approximately $200,000,000.
some
The
combined
trust
funds
of
Estate
Real
He has served
the Bond
as
De¬
Mr.
elected Presi¬
he was
'I*
100th
birthday. July
In
Isaac
it became
1867
tive
Harter
1918
In
bank
the
as
Charter, and in
Central
Savings Bank
merged
was
Feb.
On
Trust.
1,
office
branch
Road
Belden
and
opend Dec.
3,
tf
He is
a
Planning
Louis
the
Assistant
an
banking
keeper.
Harris
Bank,
Trust
ap¬
the
career
accounting
Assist¬
elected
Arlie began his
in 1921 as a book¬
He was later transferred
General Ledger Depart¬
had
Manager
served
as
from
1947
to
1952
assigned to the Cash¬
He became In¬
Service Division Supervisor
ier's Department.
Chicago, 111., in the bank's
securities
was
Mr.
before being
Savings
and
Trust
the
of
.
,
of that section
of
Cashier
was
Division
Arlie
ment and
pointed
of the bank's
1945. - • ,
specialist in the Estate
Cashier.
ant
to
been
Bennett
Department.
*
has
Assistant
1946 and is
Department in
Schneider.
Strawn
an
Assistant Trust Officer.
Ave.,
Keplinger, Edward A. Mahoney,
B.
1
appointed
He joined
the bank Oct. 1, 1935 and after
working through various depart¬
ments was assigned to the Trust
Fred D.
1952 on West
Bank, James L. Amerman, Chair¬
man
of the Board—consisting of
John
elected
the managing officer
Tax Department.
1951, followed
s
and in July of that
the Trust Depart¬
was
Trust Officer Dec. 31,
installed.
#
He
ment.
Harley J. Fast is President and
director
of
Canton
National
Merlin R.
of
1926
entered
year
where
Canton's first auto-teller window
and
9,
,
Assistant
was
advanced to
Mr. Butler joined
California,, N. A.,
Butler,
Officer,
Bank
Jan.
E.,
N.
F.
The
with the
1945, it
Avenue
of the bank's Security
Officer.
Trust
Mahoning
at
manager
Trust
became the Canton National Bank.
A
effec¬
latter
the
Officer
Trust
Charles
1936 Tjhe
&
Trust
State
are
Research Department.
was
merged with the First Trust &
Savings Bank, incorporated under
Company
San
regular
at their
part of 1951 and has since served
Sons,
Harter &
changed to Isaac
Bankers.
The
immediately.
sistant
Savings De¬
1901
the title
In
Bank.
of
A.,
Eugene H. Gray, Assistant Trust
Officer, was elected Trust Officer.
Mr. Gray joined the staff as As¬
Sons, Proprietors,
posit
N.
staff of the bank which
succession
Isaac Harter
Wikidal and
Trump,
Harter,
California,
of
meeting on July 13, authorized the
its
following changes in the official
having
Company, July 19, 1854.
a
V
*
Directors
Francisco, Calif.,
of
Bank
19,
direct
in
continued
Bank
since the founding by
was
*
of
Board
observed
Ohio,
Canton,
a
1949.
*
The
•
National
Canton
The
&
first employed
was
in
Republic
when he
^
as
Howell
Since that
time, he has worked in the bank's
City Collections, Auditing, Mort¬
gage Loan Departments.
by
ternal
department.
in mid-1953 and was serving in
Officials of the bank and of the
been succeeded
Colonial and Fidelity will bring Mr. Strawn has
that capacity at the time of,his
Marine Midland Corporation, Bufas Assistant Manager
of the sav¬
the new total to $385 900,000.
appointment.
falo, N. Y., disclosed that First
*
department
by Harold F.
1
•
Under the joint plan of merger, ings
Bank's common stock would be
Fidelity Trust Company will have Trieschmann, Assistant Cashier.
By a stock dividend effective
increased, and the proceeds, with
*
*
if
other funds, used to retire its
pre-
an
authorized capital of
$4,187,500
ferred stock which has been consisting of 418,750 shares of
value $10 each.
owned by the Reconstruction FiCorporation since
nance
1940.
The plan, which is subject to the
approval of the stockholders of
First Bank and the banking super-
visory
*
of
a
1952.
1920.
years
1936,
1950,
C.
contemplated.
*
*
*
The new bank will have total
The efAnnouncement was made on
capital,
surplus
and
undivided
will be July 20, of a plan whereby the
profits of approximately $27,000,First Bank & Trust Company of 000. It will have total resources
man
dent.
said,
the American Irving
as
in
annual
stock
dividends
which Colonial
, Office
of the Fidelity the following directors: Joseph M.
Savings Bank, New have amounted to 5% in each of Trust Company.
No changes in Blake, Bert E. Froehde, Edgar W.
the merger of the two the past two years, Dr. Hughes
personnel
of any
of the ten Jones, Charles W. Keplinger, John
into
be known
Manager,
stenographer; in
a
Savings Bank, New York and The
American
joined Republic's
elected
was
Cashier
continue: by another Jan. 16,
Tuscarwas at Wertz
Fidelity Trust Company, at
343 Fourth Ave. near Smithfield,
will be the main office, and the
Col¬
1946, he has served
October of 1946.
later,
he
became
Cashier and, in 1933, was elected
a
Vice-President of the Bank'.
was
tions.
Fourth
has
Dept.; Manager, Real Estate
Loan Department; and as Assist¬
ant Cashier; since January,, 1952.(
Mr. Pulley -joined Republic " in
through
way
note teller.
a
Three
trust
bank
new
Dean
Loan
a
as
Everman
in
Assistant
19 year of age.
was
worked
First
•
second
third
ad¬
banks in Western Pennsylvania.
present
It is also the intention of the
board to continue the payment of
of Fidelity,
Chairman
The
Alex¬
Reed, present Chairman
approval and that of New York
State
banking
Washington
of
Assistant
institution will be
Fidelity Trust Company.
as
Mr.
partment; as utility clerk; clerk
the Credit Department, and as
junior and senior analyst in the
banking ranks, becoming in turn
Credit
Department.
Mr.
Pulley
a
paying teller, receiving teller
was
elected Assistant Cashier; in
He
The
known
1936,
clerk in the Trust Department; as
became Chairman
of the Bank's board of directors.
be
™osa' Sop'
per,
16,
President and Mr. McClintock will
,,
dividend will amount to 53 cents
*
Robert
,
,
take place immediately thereafter.
the
to
0.
of Directors
Bank and Trust
Bank
letters to the shareholders of each
the.
in
lections, Transit, Credit and
dent, and served in that post until
of
V
first employed by
was
lection Departments. His first post
with the bank Was as a runner.
in
President
Wayne
.
Mr. Dean
$10 each; surplus of $500,000;
undivided profits of not less
and
July
on
Cashiers
Cashier.
bank
and
>'f
the
revealed
were
capital stock be split four
shares
f0r
one
currently
held,
Joseph E. Hughes, President, an-
been
has
of
and
Department,
held posts in the bank's City Col¬
as
Details
and vote upon
nounced.
Harvey
*
*
.
July 19.
on
old.
years
organization
Board of Directors of The County
,
,
44
was
plan to merge
' At
the present time there are The Colonial Trust Company,
gg^oo shares outstanding and if Pittsburgh, Pa., and the Fidelity
the proposal is approved by the Trust Company, Pittsburgh,
Pa.,
At
Miller has been
Company for Banking and Trusts,
He
e r.
000, divided into 50,000 shares of
common
stock of the par value
Assistant clerk when
he
share on a pro-rata
addition, the stockholders will have the privilege of
^25
hasis
Office.
Stanley L.
Jr.,
Clegg
Vice-President of the Pennsylvania
assigned to the 513 Fifth
is
W.
stockholders, it is planned to offer
new shares to stockholders
Assistant Vice-President in July, subscribing to additional shares.
1952.
John
h i
a s
E.
con¬
consolidated
solidation
old
Subject to the approval of the
was
one
C
Vice-Presidents
former Assistant
ef¬
was
Australia, 0f the Long Island Trust Com- Company of
Frank White, Chairman of the
South Africa a^d New Zealand,
pany,
Garden City, N. Y„ have increase J its capital stock
from
Board
of the National Bank of
He came to Manufacturers Trust called a special meeting of the $3,003,000
consisting of
120,120
Washington, D. C., died on July 18.
in July, 1936, and was appointed stockholders for July 27, 1954, to shares of the par value of $25
He was 87 years old.
an
Assistant
Vice-President in consider and act upon a proposal per share to $3,203,200 consisting
Mr. White, a native of Washing¬
1946.
to increase the capital by the is- of
128,128 shares of the same par
ton, had been in the banking busi¬
Mr. Waage is Territorial Super- suance of 11,500 additional shares value.
ness
for 69 years. He joined the
visor
in the
European division of stock.
and is engaged in the bank's operations in connection with inter-
Assistant
Assis-
named
were
Assistant
-
Dean, John L. Everman,: and
fected under the charter and title Ray J. Pulley. Charles W.
HoWell,
of "Cumberland County National in the bank's Mortgage Loan De¬
Bank and Trust Company."
partment, was named Assistant
to
Canada,
with
ness
an
Investment
close of business
of the
the
of
Jack C. Payne, in the bank's
were
stock of $100,000 consol¬
as
men
Named
with
Pa.,
meeting
Vice-Presidents, and
elected
and West Shore National Bank of
Lemoyne,
monthly
bank's Board of Directors.
The Camp Hill
Camp Hill, Pa.,
of $150,000,
Bank,
common
the Security Trust
Rochester, N. Y., to
9,
regular
common
of
v'''
*
#
with
First
Company of Utica,
of June 30, 1954,
*
President,
61 com¬
serve
127 banking of¬
with
Pa.,
Florence, President, following the
New
Company,
of $200,000;
National
common
fices.
The
that the Board of Directors
stated
munities through
Cumberland,
stock
National
County
Trust
and
Lemoyne,
Presently there are nine Marine
Midland Banks, all in New York
of Edward C.
A. Waage as
•The appointment
the
in
present directors and
The plan will be sub¬
mitted to stockholders of the bank
Bankers
and
REVISED
continue
will
bank
officers.
BRANCHES
that management
hands of the
CONSOLIDATIONS
NEW
Bank
present holdings.
It is expected
Cumberland
will continue
of Utica
Company
Thursday, July 22, 1954
authorities,
contemplates
par
Currently outstanding stock and
of its was outlined
the exchange
as
President
H.
it
was
announced
by
*
Fidelity has
*
"■
*
O'Toole, President
of Pullman Trust & Savings Bank,
Co. of
London, represented in New York
Chicago, 111.
by the J. Henry Schroder Banking
Bartholomew
follows:
The present
July 6, The First National Bank
Costello, manager oi of Oroville, Calif., increased its
the Personal, Credit Department, common capital stock from $127,has been elected Assistant Vice- 500 to $255,000.
Robert
an au¬
thorized capital of $2,500,000 con¬
J.
Henry
Schroder > &
Costello, who was former¬ Corp. and* Schroder Trust-Co., on
that First Bank will sell 1,935 000 sisting of 100,000 shares of par
Brooklyn, New York, on July 19, shares of its common stock (par value $25 each. Colonial has an ly Assistant Cashier, joined the July I & celebrated? its 150 th an-~
staff of Pullman Bank.in 1949.
niversary.
———
•
; Sp¬
announced .that eight officers have value
$l„per. share) to Marine authorized capital of $3,000,000
'
«
%
«
it was in 1804 that the brothers
been advanced and two depart- Midland Corporation for $5,500,000 consisting of 30,000 shares of par
ment heads.have been made of- and will retire its preferred stock value of $100 each.
The Rapid City National Bank* John Hairy and John Frederick
ficers.
by payment of $6,000,000 to the.: ;
Fidelity shareholders will re¬ Rapid City, S. D.„ increased its Sehroder, established themselves
common capital stock from $400,Gerald J. Peffert, Comptroller Reconstruction Finance Corpora- ceive
in London as merchants, in grairi,
259,000 shares, or ZVz shares
foij two years has been named Hon* The bank has also agreed of the new $10 par value stock 000 to $500,000 by a stock divi¬ coffee, tallow- and other' produce,
dend effective July 6.:
Vice-President and
Gradually, the firm shifted the
Comptroller, to pay the Reconstruction Finance for each share of $25 par value
*
*
*
Clinton L. Miller, Assistant Vice- Corporation whatever amount it
main
'
emphasis of its = activities
Fidelity stock presently held.. Co¬
The
Dime
Savings
Mr.
Bank 'oi
.
-
,
-■
..
.
President
made
a
since
1946,
has
been
Vice-President. New
sisiant Vice-Presidents
er^ W. P. Morse,
are:
As-
Rob-
may
recover
refund
t
claim.;
on
a
.pending
tax
'
The present common stockhold¬
Thomas, < Blake>ers." .'of the First Bank &
.
Trust
lonial-shareholders
will
receive
Promotion
of
five
the staff of the Republic
nial stock presently held.
riounced-
'
Bank
of
on
.
of
from
merchandising
to
merchant
bankings. It began to finance the
. in
was. an-? movement-. .of p merchandise
'3jj%"$d^:-"by Ffced -,Fi; many parts of the world, but frorrv
168,750 shares, or 5% shares of
such stock fox .each, share pf Colo¬
.
•
members
National
Number 5344
Volume 180
The Commercial and Financial Chronicle
...
(333)
early stage it developed special
an
ties
Latin
with
coffee,
nitrate,
wheat
moved
are
have
would
credits.
i
.
final
;
G. Keith Funston, President,
,
event of great
an
historical importance—that major
depressions are a thing of the past,
re-/.-ThisVisMn
sharp
......
,.
judgment, yet the evidence
far points to
so
In Half Year r
set
in
which
contrast
all
to
.
.
..
_
,
it
work
be
iorces
Major Depressions Are
A Thing of the Past!
possible,1
were
also
accompanied by a
reduction
in
taxes
and-
sharp
commerce
NYSE Increases Profit
i
expenditures
page
would
with the help of Schroder accept¬
ance
f>:
from first
some
international
in
Continued
Sugar,
which
commodities
the
of
America.
29
motion
economic
more
would
bring the
economy of the country to higher and higher levels in the future.
that
give
us
much
so
in
confidence
;
,
In
the
in
1947,
last
six
years
hooa of
tne
found
was
a
tne
111
factory of 1890.
understanding of
new
Sical
substances
The
universe.
about
\ne
wmch
rmv-
compose
changes wniph
v4hi«i
People Are Earning More Money
veals operations of the New York
States
addition,
our
'
United
we
have entered
the amazing Atomic
Age, a realm
0f
ab0ut the future?
...
the
under
power
average
Now, what are the forces operthe American economy
taken place in 4he relationship
between management and labor
and while this, at times, has been
marked by considerable conflict,
yet everybody must agree that
in
touay than
car
mating in
.
done
today is manual; u5% is done by
macninery arid power,
'mere is
prediction
defy
consumer
Stock
•
Exchange
produced
solidated net profit, after taxes,
of $180,030 compared with
$67,-
*
months of 1954
842 for
J
.
•'
•'
,
.
v/
v.,
curred
The volume of trading for 1954
-23% higher than last vear
and
the
was
greatest
by
in
previous
lasted
of
for
has
and
all
feet
that
member
charges.
Listing fees,
at
$1,369,152,
decline
moderate
indications
a
.
$194,602. Other
income
account
was up
$57,888
due
primarily to
Funston
en
of
member
will
in
printing
due
1954
and
is
if
plans
measures
tak-
a
a
llqi
are
Director Of
„
it
■
vOTIII3
,
.
"S iT cpfnno
1
confi-
great
us
com-
and
nasoeen
+
•
d
elected
a
growing
one
of the
some
Sofina,
Brussels,
leading
taken
in
the
'
V
past
had
rather ^numerous .and
were
spite of the readjustment in 1953-54, not
ajingle bank
withi
companies,
Tv/r
,1
i
*
r!winanv anH
ya
Compa
nun
the
Hirppfor of T phiffh
S
Co.
QmitL
omiui,
New
York
and
the
-*•;
American
firm
as
a
M.
H.
-Snodgrass,
of
coun-
Detroit
Sales
r+vf
f
v
t
w
The
amortization
financing
of
mortgages
■
i
HTusi
C. Frosty jrr.aiiu uh «.
Jr.r and Carl H.
Zuber, Vice-President of Ftet of
^ecte^director^of'ltetroirStoker
Co., according to William
Riecks, President.
H.
NEWPORT
BEACH,
Hammill
&
Calif.
Co.
—
was
gage amortized, but also a considerable
portion of the mortgage
credit of the country rests pn
VA.
The
(4)
th^
through
^
-
broad
social
security
legislation that was passed during
^
ican
people.
If
of
one
the Amer-
adds
to
this
j.bu^e savmgs must reach of
in the hands
one
conclusion
of
curity
the
that
the
the
economic
American
.
has
o
3331
of
ay is
^er
and
changes have
spending groups:
right
under
is
increasing
ing
j 5)53
work
our
and
,
at
born,
were
were
and
reported,
that the United States of Amer-
remodeling
or
w
of
addition
school
our
gtin
another
reason
for
confi-
more
new
fami-
dence_we have
estimated
ing
million couples,
37
liv-
facilities
not
trade-
larger
a
share
of
the market.
It
that
means
demonstrate
Yankee
not
in
we *
to
the
ingenuity and
dependent
industry
world
defense
on
that
vitality is
in£ for its-' prosperity;
spend-
that
ti?n is in the vig°r of the
the
rra-
open-
chil-
Yes, I say it takes eyes that are
looking toward the tomorrows—
nex(, few years; jn America
^ere
are
We
better
almost
need
70%
today
more
highways
more
highways*
Im
we
should
completely remodel
entire highway system within
.
few
next
Today's
years.
carrying
vehicles, 72%
are
almost
more
55
not backward toward the yes—
terdays—that will' partake of all
our':;hef exPanded opportunities and
the S°aIs-
and
fact
roads
million
than in 1940.
In this
room alone I see only
that sparkle with the urge
to help hasten the coming of the
eyes
The pressure for action to relieve
Sreat tomorrow
this
gram
congestion
has
become
in-
of
our
tense.
need
.
predicts
that our
grow in
the next 20 years to be one-third
greater than it is today.
Bureau
population will
gain
and
putting ideas to
dren under five years of age than
we bad in 1940,
*
lion people.
,
to
means
mindedness and individualism of
?very business serving the American consumer.
cities* Entire sections of
Census
efforts
It
strength and greatness of the
ica showed a net gain in population last year alone of three mil-
The
existing
ought to be almost doubled in the
..
—
Last year four
pace:
children
-
the new buying habits, the
goals that characterize the
America of today. It means that
we seek ever to trade-up in our
down.
1<)47
homes
our
'
,
million deaths
:
*t means that each of us has to
face UP to the new ways of liv-
marketing
.*'■>
market
We
..
.
must
rebuild
many
cities
our
mSdernizfng fS example
some
.
slums
are
problem.
authorities
the
cities'
number
one
new
suburbs
are
And,
being built.
that
say
In
12 largest metro-
politan areas 72% of this growth
was in the suburban areas.
We need to expand our entire
voluntary
hospital
system:
The
together
in 1953, over half increase in civilian hospital beds
married within the last 13 has fallen steadily, behind our
Not only are more people "growth in population. There are
getting
married,
they've
been still more than four million peo-
and
we
of
Sea^
are
proceeding with :the
construction of this building be-
cause.we have the confidence in
America's tomorrow! Yes, "the
?lter lou know' America,
better the future looks."
i
r»«
r
the
J
V
Birkenmayer Co. Formed
DENVER,
Colo. —Wilson ' C.
Birkenmayer,
Jr.
has
formed
Birkenmayer & Co. with offices
in the U. S. National Bank Building, to engage in a securities business.
se-
Pe^nle
a?..
xt1.
With King Merritt
years.
having
Also
more
children.
have
we
pie in 41 states without adequate
johs; Total
more
employment,
including
agricul^ure? in September 1953, was 62.3
mjnion. Non-agricultural employmen^ was 332,000 higher than in
hospital facilities.,;
We
must
industry:
1
modernize
Because
of
AUGUSTA, Ga.—William Gold
has
much
new
(Special „to The Financial Chronicle)
of
become
Merritt &
indus-
trial needs and developments,
we
face
affiliated
rett & Company
trend
outmoded
the
20 million higher
is upward.
Furthermore
we
must
build
new
homes.
Housing is
now a
$20
market,
already
larger
than the automobile market and
promises to be the big growth industry for many years.
Sixtypercent
20
of
our
homes
old: 50%
inadequate.
We need to increase
our
.
output
e'-trica, energy by 250%: With
billion
seven
or
of
are
SS—
1975 would be for 1,400 billion
kilowatt hours compared with the
generation of 389 billion kilowatt
hours in 1950.
And the country
has the natural resources—to
port
a
rise in
this magnitude.
electric
DALLAS,
of
Texas
-
—
William
J.
Garrett has formed Wm. J. Gar-
duct
Interurban
a
with
offices in
Building to
securities
™ ^fhave
a
business
con-
The
al
bran h 0Hice
2009 Fannin Street, under the-direction of R. E. Searl.
Wolfe Co.
p
.
sup-
energy
King
W. J. Garrett Co. Opens
than the 1939 average. Regardless
of
temporary
swings,
the
job
...
with
Co., Inc.
a continuous need for plant
modernization and for the replacement
of
industrial! - equipment which has become obsolete,
jg52> and
^ bf adlnVihe r9Twe\te° hufh ihref
security
economic
'47
following
about in
come
between
years
Under $4,000 from
$36,700,000 to $31,900,000
$4,000—$7,500 from
9,200,000 to 17,300,000
Over $7,500 from
2,500,000 to
4,900,000
Tlr the
individuals
Shearson,
ago
little known in this country. Today not only is every mort-
.
Shearson, Hammill Branch
rev-
very
Co.,
million
one
.1Jlthiis r.oon}
us
were
,
entire home
of the United States has been
olutionized. Two decades
Vice-
Stoker
military
-G fooQ ,ies and bigger families: Of the
of the stock market m 1929
in
part was caused by the
FHA ana
onn
John
:
the
bank credit
credit of the government
Elected Directors
President
?an
lapse
(3)
registered representative.
t V;
and
anuses ot nanK credit.
Raf«piv
oarncy
Exchanges have announced
that.Douglass E. Cope has become
With
of every modern
economy
which
Stock
associated
in
try' cannot under Present condi-
tions> be ,abused
,3mith, Barney & Co., 14 Wall
Street, New York City, members
of
role
plays
Q„
Coal & Navigation
Wifk
which
hag been separated from speculaAmerica ana tion in securities. One of the
nf
faus.es—and an important one—of
Triv
depression in the early 30s
i
a
credit,
important
an
intents m the
'
Furnnp
n/r
of the world's
is; one
in
answers
is
willingness of
.
new
;
astounding
an
so
Bank
^
population
V
likq
in£>
,
the
'
days ahead.
the
middle-income
of
alone
recognize the tremendous op-
short
question could
well
be
— how could it have hap-
One
'fields
U'ino
io°k at
;menca witn a pair ot tresh eyes
'53
Promises to become the decisive
market of the future.
very noses?
V"
ert
just this:
•
a
six
„
in
wp
portuniues that exist for all in the
truly revolutionary devel-
Beiorc'Taxes
fast,
and
ud
It takes only the
where
Group
so
to say
years.
$48,400,000 to $54,100,000
a
i^'such
In
point
a
The Bottom Group
The Middle Group
serious and adverse effect
The
on business activity in the coun- asked
try, have been largely eliminated, pened
a;
before.
u
Income
great
them
In closing this talk I would
opment is the way the increased
income has been distributed.
In
reduction
The Top
equip-
v
situa-
Group
I
Durable
non-residential
Tremendous Growth Ahead
political
reach
large-scale
this
...
(1) Bank failures which in the
?n In ®ite of the readjustment in
lntf^a^®fal
should
billion.
and
billion in these
to
(JJhange in Income Distribution
The
$100
Add
he had $220
power
by nearly 12% in six short
strong and hence if
are
ing,
ment
more
goods
more
had
Schools and hospitals, $40 bilHighway, $60 billion. Hous-
lion.
the
pay
2=
international
tion
to
out with
ever
spending
is how it breaks down.
.
construction, $300 billion.
He raised the per
capita standard of living in constant dollars
die group. We have a new kind
of middle class, big, prosperous
and constantly expanding. And
v.
early '30s.
c
the
with
provide.
$500 billion worth of goods
and services at today's prices. This
billion.
economy
is
growing
and
is dynamic.
The
forces operating in the American
economy
"
:
able
come
buy than he
real
:
;
was
and
money
American
bility of the American economy?
j
enumerate them, not parOcularly in their order of import-
1948-49,
headquarters
with
The
1947—taxes
spite of all the higher
spite of inflation too,
citizen
our
Soviet
of
in
bill and still
In many respects
so.
earmarks
in
measures
aire^or oiine with conditions as they existed
^
World War I and durinS the
Industrielles
tbonna;, it is annou
the
in
defense, for arms and aid for
allies,; for all the other costs
propaganda.
and
+
Entrepnses
has
True, he paid
than
enables
bers of New York Stock Exchange,failure has occurred. Contrast this
et
This is not
it
are
been
—
past
fi
the
area
of
Today,
the
largest
growth is right smack in the mid-
•
l>i
An
economy.
ance:
Leo Model Named
after
1953?
taxes
But
hostilities,
wbich have added to the sta-
ancj
of
members.
in
set
Korean
;
jn
man
taxes,
The cynics
carefully laid
bound to be crowned by
have
tbat
promotional literature for sale to
r
de-
future
vigorous,
a
what
ac-
production
of
have the opportunity to
1
of government.
its afterhuge defense
the
which
program
outbreak
our
just; these obvious
briefly outlined here, we
over
aver-
for
and
war
make
that
in
is
stationery
the
to
figure
primarily on
math and-on
plans in the knowledge that the American economy
us
.
.
„
to
give
the
$235,000 for the instala- they are
automatic
announcing! success.
the
future?
mee^
needs
after
age
if
important
very
American
bined
equipment in the quotation (bidask) division. Principal increase
T
the
dence
$302,700. "All other expense" shows a reduction of $122,107 under the 1953 figure which
count
two
analysis of these two factors
was
the
is bound to
economy more stable and less
in
and. for
charges
expenses
of
in
ef-
volatile, and (2) the potential developments and strength inherent
during the latter part of the year,
The
comparable figure for last
included
the
in the past to make the Ameri-
can
year-end
of
character
to
the
dollars
and
more
about
1953
But what happened to the
"
firow more comPelling every day.,
big bite
a
$180 billion: (That is in
of
taxes.)
Somebody may say that the prosperity of the United States rested
has to take into
one
velopments: (1) the
Keith
promotional literature.
The expenses for 1954 include a
provision of $608,337 for antici-
tion
in
are
recovery
United States
included
so far
activity
business
what
of
come
terms
spending
But
"taxes "too°k
national.income, but still—:
citizens carried home real in-
our
go so far as to say that
military
expenditures
were
.drastically reduced it would lead
Two Important Developments
to a sharp decline in business acIn considering the future of the
tivity.
increase of
year
and
of the
^ . WiiA Li War
Not..Due to War
if
,
all
together,
put
in
p
Prosperity
destruction than
set in in the not distant future.
an
reduction
was
in
:
number of other developments
of the past two decades have materially alteredthe '• economy of
the United States and have given
it an element of much greater stability than prevailed in the past,
a
accom-
nearly 12 years,
been
from
pated
Napo-
occurred
wars
the ..income
sale
oc-
in spite of the fact that the boom
the
the
the
history,
had
the increase in
showed
This
War 1/In spite
more
probably
up
part
shortly, after
after World
panied
$294,018, com¬
prising the
major
inflation, sueperiod of de-
a
of the fact that World War II
commis¬
sions
and
leonic Wars, after the Civil War
was
on
boom
pression and deflation.
according to Mr. Funston. .As a
result, the income from the charge
*
of
ceeded in turn by
period of 1953
same
.
.
riod
~
R
.
.
to
Admit
*
.
be admittedija
partnership in Wolfe
Beaver
^
...
&
Co.# 60
Street, New York City,
now over 20 years old; 50% of our thU magnitude.
homes are over 30 years old. This
We're makin
Vi^Lido under^"he-1 management world~
"
homes are over 30 years old. This
We're making greater techno- members of the New York Stock
of Francis J. Mitchell.
(5) A considerable change has has forced the wide-scale rebuild- logical progress: Only 5% of the Exchange on Aug. 1.
branch
office
at
any
)rld.
other
country
in
the
now
over
vears
our
30
The Commercial and Financial Chronicle.,.
(334)
Continued
mand at current levels in the con¬
from page 3
sumer
sector of
our
and,
economy
in fact, a modest improvement can
The
be anticipated reflecting the
Outlook ioz
level
of
ings; and from the fact that con¬
sumer
decline
to
were
some¬
probabilities are that
most of the first ranking compa¬
nies—and
a
good many of the
secondary companies — would be
able to pay out dividends at cur¬
what,
the
in
with
contrast
the
equities
of
this
type normally is of a longterm character. It not only should
is
but
maintained,
be
likely
to
increase further.
therefore
is
It
conclusion
our
'
(8)
Corporate
Assets
Growth.
that
shorter term,
financed
folios
tion,
i
by emergency amortiza¬
set
set forth above,
as
Political Factors. Any Ad¬
ministration, to stay in office,
(9)
must take
rapid action to support
the economy if deflationary de¬
velopments appear prospective. In
this
connection
it
is
somewhat
that
noted
lower
investment
ercised
in
making
set
despite the high plateau
summarized
as
business
cated
is
that
operating,
has
indi¬
For
of
the
in reflection
obtainable
return
of
a
"buyers'
mar¬
pronounced
Howtaxes in 1954 to
,
^lm^ar^r»
tober, 1953 estimate of $9.4 bilsavings,
lion; and compares with $9.1 toPurchases
$9.2 billion the two previous years.
i*1^ savings and
;aP^
Our
the
ex¬
above
are
Situation
in
con¬
of
that
confidence
sumer
At
particularly
durable goods.
buyers,
a
,
out
follows:
Business
The
if there is not further
discounts
been
ments-would
justifying the
forth
level shows neg¬
ligible change over the yast year
actual buying power has been go¬
ing up for reasons not readily re¬
flected
in the statistics, namely
lion in 1951 and 1952, and $11 billion irt 1950;The rate of savings,
.
pre-tax profits..
by
in most cases, it would
appear advisable to await more
favorable buying levels.
The basic reasons
:
While the price
in
ket" which enables favorable deals
commit¬
new
purchasing power has been
by the relative, stability
the cost of living.
cost control.
expressed as a percentage of disposabie; income, has been around
ever, net after
*8%, which is even higher than the
date has been running at an $18 7.3%. rate °* *952 and 1953.
The
billion annual rate, or only mod- fX?«age
ra*e °- sav*n&s in the
erately below the $19 billion net 1946-49 period approximated 4.6%
of 1953 and the $18.6 billion of'disposable income. It is inter1952. The comfortable cash posi-';
.8 to note that purchases'of
tion has
been
reflected " in // the ' Savings bonds have been running
steady increase in-dividend .pay-. a
a$t
_e like period of last
ments.
Last years payments of year, jbotK in absolute dollars and(
$9.3 billion approximated our Q;e- ,£iS0'.rm, rf.
P *° • redemptions,
has
There
decline
been
ments and,
conclusions
which
.
in
profits tax) be
excess
more'careful
lines
have
disturbed.
be
not
Mr. Burns, head of the President's
Council
of
Economic
Advisors,
on
that
time, caution should be
same
of
the
over
well-balanced port-,
along
up
should
prices
those
and
possibility
the
despite
The great growth in corporate as¬
sets—a good part of which was
helped
Demand of
secondary companies.
rent levels.
{■
and
disposable, income
probable reduction in the
extraordinarily high rate of sav¬
some
Business and Securities
earnings
high
ipise of the
Thursday, July 22, 1954
be
1954.
which
have
of insurance,
loan asso^ia-
.^^av:^?^ ,^5^eaSe over -!as^
payT
,.S?
greater is.^borne
•'
■
by the first quarter's figures., > ;C
$96: billion annual rate. .We V
Reduced Consumer
*
.
'
^
Debt
the aggregate for the, • The.
second : concomitant . has
Long-Term Outlook ; : ;i ;
year
will approximate this. keen the .reduction in consumer
favorable rate, and may be auge?*e was a alight increase
It is interesting to note that
every
forecast which has been merited further if the partial divi- *1":-^^/1^ -^^!: despite this, at the
dend tax credit proposal becomes'", end of .April, total consumer debt
made over the period of years as
to the longer-term aspects of our^ law. At this Writing, the outcome ^dtstanding
was $27.3 i billion,
Political cpn-.
billion from December,
economy, even though they.; ap-„ appears uncertain.
siderations portend that the divi- -1953.- This reflects repayments on
peared greatly optimistic at the
dend relief, if any, will
be of; instalment -debt previously contime, proved in actual results tc
,V ' f: touted, particularly m the field
be
unduly conservative. Giving minor consequence.
~i:
v of
consumers c semi - durables.
anticipate
full
consideration' to
the
growth
of
fConsutoer^ebt. ? While
high,
population, the broader base of struetion; has roughly J paralleled! nofTuTeT line 7n i^Utfnrr/Kfofa8'
Government should take
necessary
income, easy credit and the avail-: last year's favorable figures. It is
strong is
mcome
some deH ,?ne in
measures to increase employment,
questions: (1) Where * have we ability of funds, and the other fac¬ estimated that
the rate of
would not be
been?
etc.
(2) Where are we now? tors enumerated previously, there
is every basis for concluding that
(10) World Situation. We* feel (3) Where will we be (a) over
the long-term trend-of national particularly significant
the
recent
cutback
in
defense the shorter terms, and (b) over
.that pri-,
the longer term?
income, production, consumption,; vate starts have been movmg up; w^h *ho
spending (which, together with
change in the level of
Our economy has enjoyed the etc., will be considerably higher
lower inventories and some de¬
*La
5e v
consumer income.'- Consumer purover the next decade.
offsetting the decline; in public
cline in consumer spending con¬ greatest and the longest boom in
chasing power further will be
Heavy
construction has. augmente(j
This stems essentially
What are the reasons for the starts..
stituted the major reasons for the its history.
by the decrease in infrom World War II, a subsequent conclusions adduced above?' The ; been runmng well ahead of last coffle. taxes.
recent business decline)
This should be adappears
year. ..v In, addition, construction
war,' a small hot war answers lie in a supply and de¬
to have run its course and that, cold
yantageous to the consumer ascontracls
in light of the world situation, (Korea), and now a cold war. mand analysis.
r
suming the probability of no imvorable, and this has-forecastmg, portant
Since 1939 all the economic indices
some further step-up in such ex¬
change in the cost of livProduction: It must be-recog¬
value for a favorable future trend ;
have
reflected
the
tremendous
jng , ; . . 6
nized that this nation's ability to
penditures appears likely.
We
of activity.
Government source?
'
v
gains which have occurred in pro¬
also recognize that this country
supply goods normally exceeds have
raised their, sights and now
*A^n^on; sources have
might well be involved in the duction, consumption, gross na¬ demand. Barring only the abnor- r
estimate 1953;total construction at stressed; the increase in unemployIndo-China War, at a minimum tional product, disposable income, malities of war-time periods, when
aboui $36 billion, .slightly above
.which^ reached a \peak of
in terms
of supplying .materiel of the individuals, savings, wage huge military demand is
superim¬ last
year's all time -high; ; *
^
about'3.7 million in March. Since
and technical advice; and, at a rates, etc.
■
then there has been a decline-in
posed upon civilian .demand, we
Consumer Demaiid:-.The ability
At the present time the various always have been in a position
maximum, actually involving the
unemployment to around 3.3 miluse
of our armed forces in that indices of our economic activity historically where there has been t° buy .has been
maintained
lion in May. The current figures,
theatre.
We feel, however, that indicate that we are slightly be¬ a buyers' market. The FR£ Index* to. 1953 peak, levels.
;^his is. mdH will show some increase reflecting
-an
all-out world war with the low the all-time peak which was hit its recent low in March/ around cated by the Tact that liquid savgraduating-stude/its' who' will be
Communist forces is less than an attained last year.
There is ade¬ 123, and currently is around 125
ing|
looking for
has been vireven chance over the shorter term.
quate basis for concluding that compared with 134 average for" 1953: approximated^ $2Q° billion. tuaUy overlooked that normal un-
pick-up in the months ahead, the
of perspective, it
to
consider
three
purposes
f
^^^0U1sinM|a^:
unto^he totthrel yearf It? £
'
savings
KaS$$2
j* Ton^r%^!n^TeZ
awarded,hav^^^. ^a"
.
.
.
*
-
close
jobs./It
°f mdmduak at »he end pf
(11) Stock Market Largely be¬
cause
'
the factors
of
enumerated
above, it is pointed out that the
stock market is in a long-term
uptrend and that, fundamentally,
securities
do
not
appear
over¬
valued in relation to earnings and
peak of 137. It In:; addition^,
in our history.
The moderate re¬ is likely that the 10% decline will * income (what
adjustment which has occurred not be exceeded this* j^ear, and available
^
Since the peaks attained around that. the second half will see a
1954 will be the second
best year
reflect primarily (a) inven¬
tory-liquidation, particularly < in
year*
are
about 12 times earnings or far be¬
ting it another * way, the decline
low
in
the
relationship which
pre¬
vailed at the 1929, 1937
tops.
ratio,
and 1946
The present price-earnings
while above the 9 or "10
times
ratio
of
recent
of
market undervaluation, is not at
years
excessive levels.
production (about 10% as mea¬
by the FRB Index) has
been
considerably greater than
sured
the actual decline in consumption,
which is estimated at 3%-.5fe¬
lt always is more difficult to
predict the future than to issue a
statement
Supply and demand factors
favorable to the market.
In
are
our
opinion, however, stocks are ap¬
proaching the top line of the long
range upward channel that has
obtained for the past 50 years.
With this in mind, some caution
appears warranted from a
term
shorter
viewpoint.
There has been
alization
of
of
reasons
to
as
why
certain things have occurred in the
past. However, there is basis for
concluding that the decline of the
past several months bottomed out
March.
in
Since
then
there
been moderate improvement.
has
An¬
alysis of the situation does not
provide basis for predicting that
will be an important and
sharp upswing from current lev¬
els, which, are highly satisfactory
in historical perspective.
There
is likely to be some further inven¬
there
a
marked liber¬
legal rules
and
also
investment attitudes with
regard
to trust investments in equities.
Most of the states have changed
tory reduction1 but it would
ap¬
their laws from the old New York
pear
rule
tory decline has taken place. Cap¬
ital goods expenditures, according
the
or
"legal investments" to
Massachusetts rule of "pru¬
dent
investments."
There
creasing demand for stocks
part of pension funds,
that the bulk of the inven¬
is
in¬
to
on
the
continue
profit shar¬
the
not
tegral
part
of
sound
The impact of the in¬
creasing institutional demand for
planning.
There
are
lirfrpd has
'
$24?5^biiiibil%; tHe^ffrst
been ^an. important increase
Total empioy-
in
ment'ln May, i954r whs-67.8 mfl-
.Slrivf fbTihf
'compared. With .55.6
million in 1939.
three
demand,. namely :
the demand for durable goods by /
industry; demand by consumers
namely about
for goft goods and semi-durables; •
and
Also, commentators
Civilian employr
streams of
demand by government.
For
$l,64felt is inter*
employed.
sibcte 1939;pet" ?^
testing to note that
Capita income, evjeft aidjusting fOf' * Despite; the increase in unefneconomists consistent-, the
increase in ihe pritete level, has ployment/ tofal compensation : of
ly have forecast a rather* sharp
gone up by almOsr^fe^
'-employees in the'first quarter) of
decline in plant and equipment
Despite thte
income,*'
.waa
811 annual rate;of
expenditures.
They have been
total personal ' consumption ex9-°TOar?^ '.Wifh . a
consistently wrong. Such expen¬
billion annual rate for ^tbe
ditures thus far this year have., penditures currentlftiare ^estim^
ated
a
shade below^The $2^3.5 : ^?rst
an^ anTactuaI
been running only a shade below
billion annual rate -of/ the second /^Sh1*6
billion for the full
last year's all-time peak. Current
Higher - wage rates
estimates by the SEC and by Mc- quarter of last jrea*!; ,• Howevefj yeal; 1953.
the aggregate decliifite has been have largely offset the effects of
Graw Hill, the two leading author¬
less , than
that
commonly , dis- shorter working hours, and inities in this field, indicate a prob¬
.
:
able expenditure of roughly $27.5 cussed, having bteteifi^/about $230 creased unemployment.
billion" for) the
fjrst ^quarter ^ of
Government Expenditures: The
billioni or only about $1 billion
1954, up about; $2 billion from the demand by government for goOds
below last year's all-time peak of
first quarter, of 195^ and almost and services has
grown to be "-big
$28.5 billion. The plans of leading
exactly the same
^as; the average kusiness" and-is an important faccorporations show a budgeting of
for last year.
(AU figures at an- tor in the overall level of ecohigh level expenditures for the nual
rates;) The Total figure re- nomit:
activity. -Total government
long term. Too little attention has fleets a
very slight decline in exexpenditures the first quarter* of
been given by the public and econ¬
many years
inciea^:in
,
omists, alike, to the requirements
from new developments such as
atomic energy
and automation;
and
to the
prevailing intensive
competition,
which r necessitates
new and
improved plant, equip¬
ment, and products.
and
a
'sharper pe£eSe
dedtafe
shaker percentage decline
S
?"
crease
belne
at
a
annuli raHurtg
'f54 werf ^wn almost $5 billion
at annual rates from the
average
of 1953- This «sutted largely from
decline
$813bfllion
in
national
security
ex-
Penditures. -State and local
ex-
t
five
been only
The
pated not only for economic
sons, but in light of political
rea¬
con¬
siderations.
However, expendi¬
tures by states and municipalities
have
trend is likely to continue.
There should be stability of de¬
moving
up
and
this
ability
of
i
corporations
to
make
fied
flow
expenditures
Stocks from sources such as these
Consumption:
..force.
"suaUy faiI t0 K°int out that there
and
Federal
has been reflected in the superior
performance of the "blue chips,"
,
main
Iw
e-- j
ratio), and by large depreciation
further
are
provement.
been
level of pro¬
duction than the first half, in part (
reflecting a diminished rate of* in- :
ventory liquidation.
V ?
higher
conservative dividend pay-out
show
should
but
moderate increase is antici¬
in¬
portfolio
moderately
probably
to
levels,
some
Common
empioVnient, reflecting turn-over,
have ,etc., should- run about- 5% of
the
their readjustment and
likely
forecasts
good
vestors
type.
individuals
im¬
at
seen
this
idisposabte perspiial
1953
such expenditures is forti¬
by their improved net asset
position and by the large cash
various
have
of
a
the first ouar3™, X
ter of 1954 compared with $78.4
^ 1
*
billion average fbr all of 1953 and
believed that
a S76.3 annual rate the first quar$76.3 annual rate
,r J £ a ! 7
° 6 3 lHrt!ler
ter of 1953. Total retail sales for dec«ne in defense expenditures;
for; Lffe„nnQn„
.
the first five months pf 1954 on a
appears most probable,; in
seasonally adjusted'--basis, have
appropriations already
approximated the rate of the last
a^e* that exoenditures bv states
ing
trusts,
and
mutual
funds.
There has been a decided change
in the attitude of institutional in¬
stocks are'now accepted as an
and
for, spen^ft a t r
the middle to third quarter of last
at reasonable f manufacturing industries; (b) a
levels in relation to the present drop in defense spending; and (c)
]
yields obtainable on prime bonds. some cutback in consumers* ex¬
Stocks -today
yield about 1.88: penditures for durable goods. It
times the return available from is important' to note that there
has been only a very slight de¬
high graded bonds.
Historically,
this does not represent a danger cline in final purchases for con¬
Put¬
zone.
Similarly stocks are selling sumption and investment.
dividends; and
1953
from
retained
emergency
Without
question,
earnings, (a
amortization.
f3"
,
^
months' of
a
1953, and have
2.4% below the fav-
business has
entered a period of intensive com¬
petition which may effect profit
orable first five months of
margins.
flected
partly
creased
now
However, this is being
offset by price rises, in¬
labor
productivity, and
(particularly since the de-
1953.
The difference between income
and
has been resavings, which have
expenditures
in
been running at
about
$20
-
an
billion
annual rate of
compared
about $18 billion in 1953, $17
with
bil-
a.nd murucipahtms wil continue to
J*ise*
der^and for schools,
^?sP^a*s an<t highways is pro1
s*
Inventories: Changes in inventory show up in the figures on
gross private domestic investment,
which is an important compoitent
of
gross
national product.
Vir-
Number 5344
Volume 130
The Commercial and Financial Chronicle
...
(335)
tually the entire $6 billion decline
at
in
rates
annual
the
from
product
Continued
third
1953, and rough¬
comparable decline from the
quarter of 1953 to the first
quarter 1954, show up in the re¬
duction in gross private domestic
investment.
This,-in turn, stems
from
changes in inventory fig¬
last
the
inventories
six
years,
increased
were
the
with
year
past
ventories
increased
rwere
rate
of
1949.
in¬
at
the
third
billion
quarter- and
annual
rate
a.i ,$3
reduction
of
quarter 1953; • In the
quarter of 1954 inventories
first
reduced
were
of
annual
an
ratej
billion.
$4.8
While
inventories
require
may
moderate further reduction,
some
the
at
bulk of the readjustment ap¬
clearly
pears
Consumption
to
be
.
a
pickup in consumption should be
fully reflected in a higher level'
of production.
New Orders:
pickup
in
orders.
new
the fact that
new
from
levels
of
they
still
of
the
back
for
ago,
so
substantial.
are
reduction
in
down
are
or
year
reflected
Part
cut¬
a
government expenditures
defense
Money
purposes.
Supply:
quite
ap¬
parent that political factors neces¬
sitate easy money and that budg¬
continue to be
the rule rather than the exception.
To
the
extent
that deficits
are
financed
through
the
system,
the
is
result
banking
to
increase
the money supnly.
The following
indicates that the supply of money
has roughly tripled since 1939 and
Federal
of
of
have
made
/
Some people look
steel
industry
upon
as
confidence
weakened
quarter-cent
cut
Reserve
demoralized
and
in the
pound
per
enough to touch off
buying
a
business
price
would lower the cost of the
automobile
spree.
industry
will
be
System)
as
a
ready report
into
v
,
production
its
of
half
first
when
ingot
totaled
output
44,128,998
that
tons,
net
Meanwhile, production in the automobile industry,
the steel
one-fifth of all
made in the U.
steel
S.,
down only 10%.
was
of materials."
The
of
user
living off their inventories
users were
Iron
Steel
and
Year
and
1929
capacity
Institute
the
that
announced
to
tons
1,573,000
tons
forecast output
The
of
and
ingots
64.3%
steel
and
castings,
for
(actual) a week ago. It
65.4% or 1,559,000 tons.
would reach
annual capacity of
on
like week
124,330,410 tons
month ago
a
1,720,000 tons.
A
i)349
(July)
had
placed at 2,128,000 tons
figures for last
the rate
94.4%:
or
of Jan. 1, 1954.
as
72.1% and pro¬
production
was
operating rate is not
The
lower than capacity in 1954.
was
based
are
year
The
annual capacity
on
117,547,470 tons
as
plies
It
is
interesting to note that in
the past year the Federal Reserve
has
exercised
all
of
its
major
in
powers
the
direction
of
easy
In the middle of last year
again very recently, there has
money.
and
been
a
requirements,
which
increases lendable funds.
greatly
The
rediscount
duced.
tions
Also,
of
late
buying
has been
rate
market
open
have
side,
been
on
the
makes
which
further credit
re¬
opera¬
for
ease.
Is Up for the July I7th Week
power
The current figure represents an
the
above
the
over
like
preceding
comparable
in
week
week,
1953
or
increase
an
week
and
of
742,000,000 kwh.,
kwh. over the
771,000,000
Ili.—Paul
for
public
the
half
La
South
Salle Street, members of the Mid-^
west
Stock
formerly
Exchange.
with
Harris,
He
was
Upham
&
Co.
.
at
an
valuation of building permits for 215 cities
six months of 1954 was $2,629,615,770 or only 3%
the record high volume of $2,709,920,127 for the first
aggregate
past
than
of
It
1950.
2.70%
greater
than
the
comparable 1953
total of $2,560,676,211.
Building plans filed in New York City
during the six months' period had a valuation of $311,749,036 or
an
of
increase
was
27.3%
over
a
year
$244,844,536.
outside cities for the
ago
of
sum
Excluding New York City, permits in 214
cumulative
period amounted to $2,317,866,734,
Security Assoc. Adds
past month and
than for
WINTER
curity
East
was
&
is
PARK, Fla.
now
affiliated
Associates,
New
England
—
$2,315,831,675
Inc.,
Se¬
137-139
Avenue.
He
formerly with A. M. Kidder
Co.
for the similar period last
Business
Commercial and
Lynch Adds
year
with
gain of 1%.
or
a
with Merrill Lynch,
Fenner & Beane, Board
isbury is
Pierce,
Trade
of
now
Building.
been
added
to
the
staff
of
Goodbody & Co., Heyburn Build¬
ing.
failures
Moderately
rose
226
to
mortality remained 17% below the
of
$5,000
as
or
more
numerous
as
in
sales
half, and dealers' stocks
a
time.
of the
parts
many
have
improved in the
consequently lower
are
Case goods and bedding were in more demand
July 14 increased moderately
lagged;
dealers'
interest
in
•
moderate
as
ago in
the output of
over
week ago but
a
continued to be below the high level of last
year. The number of.
continued claims for unemployment insurance payments in the,'
week
ended June 26 declined 2% from those of the
preceding
week, and initial claims in the week ended July 3 increased by
50,00u persons, a rise of 19% oven the number, of the previous
week. Many workers not eligible for vacation
pay filed for bene¬
fits during vacation
periods, and temporary factory layoffs for
inventory taking added to the increase in initial claims.
Heavy construction contract awards increased 44% from the
preceding week and 63% from that of last year. Lum¬
from that of last week and 62%
Paper mills operated at 84%
v
from
week
pre-war
level
of capacity, 8 points below last
week's output and 15 points above that of a year ago. The
pro¬
duction of paperboard declined 44% from the level of the
preced¬
ing week and 10% below that of the similar
Meat
production
declined
last year at this time.
9%
this
week in
week,
1953.
,
1% ,-lower than
or
Flour milling decreased 8% from the output
of last week, or 3% above the year-ago comparative.
vehicle production
S.
125,210
week earlier.
the
cars
rebounded
trucks
and
The July 12-16
were
total
sharply this week
below
the
pace
set in
the
reflected
1953
same
as
an
built, compared to 98,982
a
26% increase
holiday-shortened July 5-10 count, but output
week,
was
over,
still 24%.:
according to
Ward's'
Automotive Reports.
The deterrents
this
to
week's
operations
were
Kaiser, Willys and Studebaker (South Bend)
ventory
taking
at
the
Thursday and Friday.
Lincoln-Mercury,
The Division
shutdowns of
cars
lines, also in-;
the only corporation
plants slated to put in 40 hours this week.
after two weeks of idleness
truck
on
car
for
Packard
was
back
"
manufacture..
front, Divco, Federal and White
week, but other truck makers picked
were
following last
This Chrysler Division and the truck unit were
Plymouth and De Soto worked four-day tricks.
the
plant
there early Thursday morning.
slated for five full days this week,
was
week's shutdown.
On
(Mich.)
Wayne
A flareup in the trim department at Dodge;
Main forced suspension of assembly
will resume
the
increased
last
192 from
to
175
and
year
1953 level of 54. Fifteen businesses failed with liabilities in
up
the slack
as an
.
out all.
were
estimated
turned out, compared to 14,439 a week ago. White
production next week, following the short curtailment
inventory adjustment.
Cadillac has pared the work-day from 10 hours to 9 hours.
Despite
Motors'
the
volume
high-priced
gave
her
leader's
54.9%
of
slight
car
cutback,
production
,
General
this
week.
excess
slipped to 3.0%.
The
same
The cumulative
vehicle
with
assembly is running 11%
in" wholesaling,
1953
were
casualties
slight in manufacturing and
in
construction
retail,
More cohcerns failed than
a
and
jrear
646
Canadian failures totaled
estimated
an
units
14%,
all lines.
24
as
compared with 23 in the
-
pre¬
these producers take
or
to
3,788,502
3,587,871
a
923)
car
completions
against
4,281,204.
Car
under 1953, with approximately 3,189,-
year
ago,
while truck erections trail by
about 598,856 against 693,333 at the
than in the previous week
is 17% under
,
behind the corresponding 1953 term,
Canadian plants produced 16%
vious week and 13 in the similar week of 1953.
saw
tally to date in 1954 shows that
and truck production is 12%
rises
from
week in 1953
45.5%, 20.1%, 27.3% and 7.1%, respectively.
against 17 in the preceding week.
the
service trades climbed sharply.
LOUISVILLE. Ky.—Abe Linker
has
industrial
when 94 of this size
were recorded. An
upturn also appeared among small casualties
under $5,000, lifting their toll to 34 from 21 but not reaching their
While
(Special to The Financial Chronicle)
furniture
Chrysler Corp. took 12.5%, Ford Co., 29.6%, and the Independents
twice
over
of $100,000,
Goodbody Adds to Staff
Failures Increase
1939.
Liabilities
were
CHICAGO, 111.—Warren K. Sal¬
unchanged from
was
Manufacturing Up
July 15 from 196 in the preceding week, reported Dun &
Bradstreet, Inc. At the highest level in eight weeks, casualties ex¬
ceeded sharply the year-ago toll of 148 and the 103 which occurred
of 272 in
(Special to The Financial Chronicle)
sup¬
The total volume of- industrial production in the week ended
ended
in 1952. However,
Merrill
some
Retail
week
a
18,456 jobs
David
with
finishing plants; only limited textile
ago; television buying
high fidelity phonographs improved.
compared
(Special to The Financial Chronicle)
Shultz
quiet this week due to vacation shut-;'
was
Regional furniture exhibitions opened in
country this week.
a
permit values expanded sharply during June and
$520,959,882 for the 215 cities reporting regularly to Dun
& Bradstreet Inc., again of 14.4% over the $455,523,853 for the
corresponding month a year ago, and was the highest June volume
ever recorded, with the one exception of June, 1950.
Comparison
with the
May total of $431,319,589 revealed a rise of 20.8%.
less
209
■
•
The volume of wholesale food buying
,
U.
Building
has joined the staff of Central Re¬
Company,
the apparel and textile
in
were
available in the markets.,
estimated
totaled
The
Miles
S.
buying
;
a week ago.
Hog slaughter was greater this week than in
the corresponding week of 1953 and is expected
tp continue rising.
1952.
Building Permits Near Record Volume for Half Year
(Special to The Financial Chronicle)
CHICAGO,
<
that of
increase of 766,000,000 kwh.
filed in New York City in June were valued
$39,149,744 off 9.5% from $43,264,650 in June last, year, but
increase of 10.7 above the May figure of $35,373,510.
Republic
V "
the year-ago comparative.
Applications
Joins Central
year's
ber output was down 28%
estimated at
reduction in member bank
reserve
>
level of the
distributed by the electric light
industry for the week ended Saturday, July 17, 1954,
8,951,000,000 kwh., according to the Edison Elec¬
tric Institute,
."V
•
>'•' <i
1
and
was
billion
202
'
'
'
"
were
of
of Jan. 1, 1953.
The amount of electric energy
174 billion
•_
Current
last
The textile trade
I
as
the actual weekly
ago
year
comparable because capacity
Electric Output
billion
1%V
'
•
.
lines..
an
industry's ingot production rate for the weeks in 1954 is
based
now
entire industry, will be at
currency
64
.
of capacity for the week beginning July 19, 1954,
1,534,000
against
been
of Jan. 1, 1954 for the
as
of 66%
equivalent
$54 billion
1.939
ended
operating rate of steel companies having 96.1 % of the steelmaking
average
percentage
deposits
from
creases
.
Total
week
year ago.
Wholesale Trade Down
than
,
American
the
in
/ The total sales of household goods decreased moderately this
week, although cooling devices were in heavy demand. Automo¬
bile purchases were below those of last
week, well under last
below the 57,945,936 tons turned out in the first half of last
year.
.*
downs of most mills and
here on, steelmaking in the last half of this year will exceed
the
trade
The volume of wholesale buying in the week ended
July 14
was slightly less than that of a week
ago and significantly smaller
than tnat of thq
corresponding week of 1953. The greatest de¬
new
weekly magazine of metal working states further,
"If steel production can equal the pace of the auto industry from
24%
retail
a
sales
j
Some steel sellers al¬
V
,
profitable in the
year's comparable figures.
;_4
...
This steel
of
of
Housewives decreased somewhat their
spending for food this
week.
Restaurants, particularly in resort areas, reported their 1
volume of business was above that of a
year ago.
an
gain in orders, specifying September and October
a
volume
A
whole.
going
steel
most
were
again featured by many apparel mer-;e
chants this week, and total
receipts were about equal to those of
it's reasonable to expect
into
launching
the
only about $9, hardly
......
will be ordering steel actively.
models and
be
to
estimated by Dun &
Bradstreet, Inc., to be from
was
last week.
upturn in steel demand as the summer fades away. The auto¬
an
was
of
of
car
With seasonal factors back into vogue,
mobile
dollar
Clearance
reason
a
expected
below to 3% above the level of
passing along part of the wage increase given
prices have remained remarkably stable
the maintenance of price stability in
why business as a whole has not
gone into a tailspin. Price cutting, they say, would not generate
any additional demand for steel. Declaring it merely would have
J
the
total
July 14
declining a year ago. Base prices
particularly firm. What concessions have been
largely in the form of freight absorption by
been
is
year
,
producers.
For the
Governors
The
Steel
have been holding
duction
MONEY SUPPLY
the
,
this
country's history.
since steel demand started
ever
almost quadrupled since 1929.
(Source, "Board
means
a
steel workers.
This shows that many
is
It
etary deficits will
as
'
.
a
Despite
orders
a
effect
;
delivery of cold-rolled sheets.
There has been
they did at this time a year ago.
weeks/vacation spending was high, and resort
business
proof that-business is sound, asserts "Steel," is the
with which the steel price increases were put into
smoothness
run¬
moderate
;
"
Another
downtown department stores and continued
over
to spend more for soft
goods than
As in the past few
despite vacations in the steelmaking and
steel consuming plants. By recovering, 5.5 points the ingot rate
reached
65%
of capacity. Thus bringing the rate to a high
of 73.5%.
Retailers reported that shoppers '
ago.
favored suburban
That recovery was made
of current
excess
Even
;
occurred
to
appears
ning at rates in
production.
have
;
-
the
in the fourth
Industry
magazine of metalworking.. Ingot output regained 5.5
points in the first full work week of July, the week ended July 18.
am,
$6.3
billion, but
this dropped to,a $3.1 billion rate J
in
Retail Sales Down
The dollar volume of retail sales in the week ended
July 14
dipped somewhat from that of the preceding week but was
slightly
above the volume of a year
the weekly
every
exception of
In the second quarter of 1953
annual
"
•;
The State oi Trade and
ly
Over
5
page
the
to
fourth quarter of
ures.
from
national
gross
31
same
1953 interval.
fewer vehicles this week (5,-
(7,087).
Thus far in 1954, output
1953, with 257,765 units to 311,820 in record
year
1953.
Chronicle...Thursday, July 22, 1054
The Commercial and Financial
32
(336)
The following
I
Indications of Current
••
latest week
week
Business Activity
statistical tabulations
or
Equivalent to—
Ingots and castings
oil
Ago
§1,573,000
94.4
of that date:]
Previous
Year
Month
Ago
(BUREAU OF MINES):
ALUMINUM
aluminum in the U. S.
(in short tons)—Month of May
2,128,000
1,720,000
*1,534,000
125,138
120,434
105,464
of May
72,194
$62,894
21,015
4,462,299
5,134,470
4,412,000
4,200,431
4,809,586
4,141,800
45,025
67,386
74,200
216,843
256,998
196,000
7,361,000
* 7,472,738
9,404,479
5,423,168
5,287,972
7,209.39S
30,620,000
29,000,000
*38,632,000
2,221,000
1,877,000
2,336,000
(short tons*
Stocks of aluminum
end
AMERICAN GAS ASSOCIATION—For month of
(bbls. of
RAILROADS:
freight loaded (number of cars)
freight received from connections (no. of
Revenue
Revenue
'
CONSTRUCTION
ENGINEERING
NEWS-RECORD:
U.
H,121,000
7,005,000
6,820,000
22,934,000
24,428,000
2.422,000
2,277,000
1,729,000
2,421,000
9,253,000
10,137,000
9,792,000
8,117,000
8,166,000
8,455,000
10,185,000
8,965,000
163,712,000
164,546,000
171,303,000
142,527,000
29,078,000
27,942,000
24,807,000
28,520,000
90,719,000
86,765,000
77,495,000
52,330,000
50,645,000
48,530,000
May:
7,267,000
23,762,000
23,888,000
89,860,000
47,154,000
Total gas (M
Natural
569,562
618,597
Mixed gas
552,975
585,620
721,454
561,193
697,583
478,396
;
Steel
IRON
$431,055,000
$298,511,000
$317,924,000
$264,210,000
254,577,000
127,027,000
lignite
(net tons)
INSTITUTE—For month of June:
COPPER
171,780,000
146,144,000
148,808,000
171,484,000
112,307,000
111,001,000
81,009,000
Refined
63,634,000
59,177,000
35,143,000
34,393,000
Deliveries
July 10
5,340.000
*1,455,000
7,560,000
July 10
347,000
63,000
551,000
6,913,000
590,000
.July 10
77
93
111
92
Copper production in U. S. A.—
115,402,000
85,089
*78,231
84,943
112,121
108,403
127,294,
106,252
111,005
139,300
69,181
82,111
58,120
$246,264,000
$276,821,000
$214,332,000
142,919,000
143,195,000
111,679,000
15,362,000
16,810,000
11,291,000
Domestic warehouse credits-
80,970,000
98,096,000
21,177,000
Dollar exchange
INDEX—FEDERAL RESERVE
•APARTMENT STORE SALES
AVERAGE
=
100
—
59,715,000
36,246,000
35,000,000
DUN
INDUSTRIAL)
AND
1
ACCEPTANCES
DOLLAR
148
207
196
—July 13
4.801c
*4.801c
4.634c
$56.59
$56.59
$56.59
$56.76
July 13
$26.58
$26.75
$28.08
Based
4.634c
July 13
June
BANK
-
30:
,
shipments
stored
goods
on
shipped
and
between
$44.83
(per gross ton)
lb.).
OUT¬
RESERVE
FEDERAL
—
__
Domestic
226
(tons
Exports
A
IRON AGE COMPOSITE PRICES:
steel
pounds)
stocks at end of period
pounds)
STANDING
8,209,000
8,850,000
8,165,000
8,951,000
.July 17
July 15
Pinlshed
of 2,000
(tons
copper
2,000
Imports
BRADSTREET, INC
Pig iron
of
2,OOo pounds)
fabricators—
S. A.
Refined
of
(tons
to
OF NEW YORK—As of
INSTITUTE:
output (in 000 kwh.)
(COMMERCIAL
(tons of 2,000 pounds)—
Crude
BANKERS'
'
KHSON ELECTRIC
(per
and
Pennsylvania anthracite (net tons)—
Pennsylvania anthracite (tons)
FAILURES
tons)—
of June:
In U.
Electric
(net
(BUREAU OF MINES)—Month
OUTPUT
COAL
112,844,000
(U. S. BUREAU OF MINES):
and lignite (tons)
SYSTEM—1947-49
products
Month of May.
176,478,000
coal
Bituminous
steel
of
Shipments
July 15
COAL OUTPUT
INSTITUTE:
STEEL
AND
and steel for castings produced
of June
ingots
July 15
and municipal
State
sales ((M therms)
Bituminous coal
July 15
July 15
July 15
construction
Public
•_
(M therms)—
..
,
construction
Private
(M therms)
sales
(net tons)—Month
ENGINEERING
—
therms i
gas
Manufactured gas sales
AMERICAN
July 10
cars)—July 10
construction
8,
6,515,700
6,495,400
6,441,400
6,280,700
July
(bbls.)
ASSOCIATION OF AMERICAN
Total
are as
Latest
Production of primary
9
July 9
Gasoline output (bbls.)
—July 9
BLerosene output (bbls.)
'Uiy 9
Distillate fuel oil output (bbls.)
- July
9
Residual fuel oil output (bbls.)
July 9
stocks at refineries, bulk terminals, In transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at
July 9
Kerosene (bbls.) at
!
July 9
Distillate fuel oil (bbls.) at
uly 9
Residual fuel oil (bbls.) at
July 9
C4VIL
of quotations,
cases
Ago
72.1
*64.3
July 25
output—dally average
condensate
and
Crude runs to stills—dally average
\
Week
.July 25
gallons each)
42
in
or,
v»or
PETROLEUM INSTITUTE:
AMERICAN
Crude
Month
366.0
(net tons)
Steel
Previous
Week
STEEL INSTITUTE:
Indicated steel operations (percent of capacity).
IRON AND
that date,
on
either for the
are
Month
Latest
AMERICAN
Dates shown in first column
month available.
month ended
or
production and other figures for. the
cover
Hcrap steel (per gross ton)
43,396,000
44,702,000
34,684,000
$588,626,000
$615,870,000
$428,213,000
foreign countries
Total
'
V.
(E.
MiTAL PRICES
QUOTATIONS):
M. J.
A
Electrolytic copper—
Domestic refinery at
29.675c
29.700c
' '
-
'
URBAN
\
/."
.
CONSTRUCTION
BUILDING
,
PERMIT
AREAS
VALUA¬
THE
OF
TION
IN
(U. S.
DEPT. OF LABOR)—Month of
(000's
S.
U.
omitted):
July 14
Lead
(New York)
Louis)
(St.
(East St.
Zinc
i
—
■'
A
*$887,732
$1,013,052
13.800c
14.050c
13.300c
New
residential
530,601
*488,739
11.000c
11.000c
11.000c
New
non-residential
304,932
*297,066
536,134
362,821
114,939
*101,927
119,04$
-
208
200
145
100.35 i
110.34
"
v..'...;
-..1M
Group
Group
Group
MOODY'S BOND YIELD DAILY
93.500c
93.64
99.93
100.40
110.15
110.15
103.47
:h
FAILURES—DUN
BUSINESS
INC.—Month of
115.04
107.80
112.19
112.19
105.69
Manufacturing number
109.97
109.79
109.79
102.63
Wholesale
104.14
104.31
98.25
108.88
108.88
101.47
Construction, number
110.70
110.52
110.52
103.47
Commercial service
111.44
111.25
111.44
2.46
2.51
2.96
3.i6
3.16
3.54
2.89
2.89
2.90
3.29
Retail
Construction
Commercial
3.04
3.05
3.05
3.41
July 20
3.17
3.18
3.18
3.59
3.50
3.49
3.50
.July 20
NATIONAL
Orders received
Unfilled orders
liabilities
July
July
July
—July
at end of period
(tons)
1949
AVERAGE
=
431.7
426.4
426.5
262,900
239,638
217,725
256,496
254,689
130,775
10
10
10
10
v
126,542
227.077
46
359,324
95
560,897
.
Odd-lot
—
of
„•>
723,761
553,322
$44,877,879
$34,123,978
$25,060,128
$51,125,583
1,014,840
9,040
984,723
1,005,800
975,999"
value
$45,735,376
$42,705,386
.July
Customers' other sales
Dollar
960,918
1,038,593
July
.July
July
—July
short sales
Customers'
sales-
314,280
324,830
dealers—
July
OF MEMBERS
ACCOUNT
3
sales
ACCOUNT OF MEM¬
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists In stocks In1 which registered—
Other
3~24~830
204,010
121,150
Hay,
217,850
232,170
296,110
329,250
11,134,000
10,820,180
5,162,870
5,376,350
1,131,710
986,670
594,520
1,216,320
260,670
808,450
959,670
481,070
1,006,570
1,220,340
574,800
326,720
272,790
381,970
198,120
,
177,070
9,300
258,640
26,500
374,500
157,230
282,040
401,COO
RYS.
303,340
339,425
276,820
379,070
238.888
102,810
73,680
47,740
Other
All
PRICES,
(1947-49
NEW
=
.
SERIES
—
S.
U.
DEPT.
1,979,860
295.200
334,910
1,424,585
1,726,845
1,719,785
2,061,755
1, 1954, as
110.2
110.0
110.0
110 5
95.9
*94.8
94.7
21,669,324
29,973,399
56,165,245
12,529,801
19,425,011
6,972,093
2,179,917
5,294,224
2,119,97(>
2.25
2.54
2.3$
$2,761,200
$20,077,450
.
——
—
AND
GUARANTEED
IN DI¬
SECURITIES
Junei
S. A.—Month of
.
105.6
*105.3
104.8
104.6
-
$45,463,200
97.4
July 13
94.3
93.7
92.9
114.2
*114.2
114.4
Net
114.5
—
(BUREAU OF
(short
•
:
.
.
■ '
4
*
'Revised figure.
10,074
14,845
11,339
tons)
Stocks at end of month
-
10,107
(short tons)
Shipments
i
1
MINES)—Month of
May:
Production
§Based on new annual capacity of 124,330,410 tons as
tNumber of orders not reported since introduction of Mon ihly Investment Plan.
purchases
ZINC OXIDE
95.9
July 13
^Includes 783,000 barrels of foreign crude runs.
against the Jan. 1, 1953 basis of 117,547,470 tons.
equipment)
MARKET TRANSACTIONS
TREASURY
RECT
.July 13
a
figure.
77,241,16a
41,972,854
Net sales
other than farm and foods
2,850,294
48,863,667
43,688,049
preierred stock
of income to fixed charges
OF U.
foods—
3*741,452
38,708,702
43.798,520
stock
common
Ratio
OF
July 13
111 commodities
80,091,454
1,111,252
'
1,948,960
113,790,62$
51,605,119
appropriations:
On
953,872
85,174,159
1
On
157,380
4,070,649.
75,160,113
2,987,726
—,
income
Dividend
16,351,936?
117,861,277
3,592,068
41,696,428
charges—:—_—
charges
Depreciation (way & structure &
July 13
Meats
Jan.
available for fixed
after fixed
19,137,767
88,766,227
3,429,020
——
Federal income taxes
1,536,280
$101,509,341
18,547,881
78,589,133
—
income
369,922
352,950
$69,628,460
Commission)—
operating income
315,572
1,596,010
243
April:
392,675
1,797,855
224
170
—.—
440,415
100):
products
*—"vised
(tons)
357,495
June 26
June 26
June 26
2,696.
185
$60,041,252
—
187
167
(tons)
431,175
sales
Processed
29,081
2,702
404,080
June 26
commodities
Farm
64,473
29,153
506,890
Commodity Group—
I
67,318
28,831
Other deductions
1,010,478
92,87?"
62,721
June 26
of members-
7,661.
INCOME ITEMS OF U. S. CLASS I
of
Income
Net
43,475
41.803
101,999
Miscellaneous deductions from income
Income
12,084
:
income
Total
2,057,221
(bushels)
(Interstate Commerce
Net railway
54,3.50
—
—
(12 States)
Month
166,530
23,400
23,300
326,640
Total sales
—
226,840
32,669
33,974,
13,019
(tons)
SELECTED
93,73,0
888,590
1,115,430
373,711
2,021,923
6,706
(tons)
(bushels)
Apricots.(3 States)
Total purchases
Short sales
WHOLESALE
-
3,35$
345,622
i
commercial crop
Grapes
18,114
3,793
(bushels)
Pears
4,12$
5,079
(pounds)
Peaches
29,851
18,690
dry field (100-lb. bags)—
Potatoes (bushels)
Peas,
bushels
44,374
27,232
(tons)
12,215.
48.336
lespedeza (tons)
dry edible (100-lb. bags)
Apples,
105,30$
11,752
.June 26
sales
Total round-lot transactions for account
LABOR
9,074,780
213,480
433,750
10,700,330
.June 26
Total sales
Other
396,060
8,678,720
off the floor-
Total purchases
Short sales
Other
496,990
10,323.190
52,529
107,494
i
17,99$
36,813
60,159
bags)
Sweetpotatoes
241,015
20,939
50,359
wild
Tobacco
.June 26
Other transactions Initiated
23,102
$17,703,452
121450
12,967'
278,05$
1,216,416-
372,519
(bushels)
$30,587,060
June 26
June 26
June 26
'
_
Hay,
204~010
877,511.
291,025
'
—
211,227
(bushels)
Flaxseed
259,644
1,544,674
(bushels)
(tons)
alfalfa (tons)
the floor—
sales
Total sales
(bushels)
739,917
18,654
(bushels)
(100-lb.
June 26
Total purchases
Short sales
758,440
1,168,53s
999.561
229,881
Barley (bushels)
Rye
3,176,615
988,321
all (tons)
June 26
Other transactions Initiated on
$408,00$
REPORTING
i
spring
Cherries
June 26
June 26
Total sales
(bushels
Hay,
,June 26
——
-
$618,000
YORK—
spring (bushels)
Hay,
FOR
h*
sales
$32,379,00$
3,311,493
beets (tons)
Hods (pounds)
Total sales
Other
$38,494,000
AGRICULTURE—
OF
DEPT.
Rice
(SHARES):
Total purchases
Short sales
1,759,000
$41,613,000
Sugar
June 26
June 26
June 26
TRANSACTIONS
NEW
Sugarcane for sugar and seed
Short sales
MOUND-LOT
2,961,000
(in thousands):
6,672
Total Round-lot sales—
Other
S.
444,171
450,843
TOTAL ROUND-LOT STOCK SALES ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
FOR
2,045,000
Beans,
pther sales
*
OF
CROP
—
Hay, clover and timothy
3~lT,280
Mound-lot purchases by
Number of shares
BANK
3,758
.July
Short sales
3,674,000
$656,000
_
-
704,887
708,645
8,724
JRound-lot sales by dealers—
Number of shares—Total
3,200,000
4,514,000
__
_
(bushels)
all
Winter
Oats
3
3
sales) t—
Odd-lot purchases by dealers (customers'
Number of shares—Total Bales
U.
Other
July
July
Dollar value
3.777,000
12,464,000
11,722,000
_
_
_____
(bushels).,
Durum
SECURITIES EXCHANGE
Number of shares
V
$11,179,000
4.499,000
11,739,000
(000's omitted)
30
July 1
all
Ail
SPECIALISTS
AND
$15,621,000
OUTSTANDING—FED¬
PAPER
June
BOARD
As
Corn,
106.06
106.95
106.53
106.80
July 16
ACCOUNT OF ODDON N. Y. STOCK
COMMISSION:
sales by dealers (customers' purchases) t—
DEALERS
EXCHANGE
817'
,
4,878,000
!
liabilities
service
PRODUCTION
CROP
STOCK TRANSACTIONS FOR ODD-LOT
LOT
74-
943
$18,454,000
..
..
__
RESERVE
of
As
98
408,682
84
417,331
INDEX—
100
..
liabilities
COMMERCIAL
Wheat,
OIL, FAINT AND DRUG REPORTER PRICE
_
Jzvzt
liabilities
Total
3.66
3.42
•
activity
93
.81
81
_
3.54
3.09
ASSOCIATION:
(tons)
of
liabilities
liabilities
Wholesale
ERAL
(tons)
Production
3.23
3.14
3.10
431.0
July 20
INDEX
PAPERBOARD
Percentage
3.23
3.14
3.09
July 20
.
Group
Group.
COMMODITY
MOODY'S
3.23
3.13
Group
Utilities
Public
_
3.36
.
Railroad
80
413
111
965
Manufacturing
2.47
3.15
.July 20
Industrials
_
_
number
Total number
.July 20
Baa
91
460
132
.
105.52
1.
July 20
.
89
455
__
number
Retail
July 20
,
corporate
Average
_____
_
number
108.88
AVERAGES:
Bonds
U. 8. Government
BRADSTREET,
&
June:
115.24
104.14
April:
construction
building
115.24
July 20
July 20
July 20
July 20
1 uly 20
__
29.825c
;;
112.37
i— July 20
Baa
Industrials
$950,472
13.800c
11.000c
July 20
.
Aa
Utilities
All
July 20
corporate
Aaa
Public
13.500c
——July 20
U. 8. Government Bonds
Railroad
14.250c
DAILY AVERAGES:
MOODY'S BOND PRICES
Average
93.500c
14.000c
July 14
at—
29.600c
96.750c
14.000c
July 14
at_
Louis)
29.600c
96.750c
July 14
at
at
29.675c
July 14
Additions, alterations, etc
Lead
29.700c
July 14
Export refinery at
(Straits tin (New York)
29.700c
(short tons)
{Corrected figure*. "*
12,827
16,24S
15,952
17,109
27,151
.Volume 180
Number 5344...The Commercial and Financial Chronicle
H. J.
Bank andlnsurance Stocks
Our
Reporter
By H. E. JOHNSON
This Week
Kidder, Peabody & Co., 17 Wall Street, New York, have re¬
with expectations.
The report this year is somewhat
v
data for 14 of the major New York
with
comparable information
of the
On the other
Sejeeted financial
is larger^
City banks
15
on
comprehensive in that
more
•the number: of companies reviewed
of the unexpected.
in all.
or a
short bond, did embody
near
keep intact the Treasury's game of surprise.
bank holding companies are
in
As in earlier
to earnings,
included in the review.
editions, the tables and comments with respect
dividends, book values, and stock market prices
the
opinion
has
of
division
a
This may be the reason for not
the refunding offer available at the time of the new money
shares at this time.
announcement.
The
"Bank
as
earnings should show
"Gross income is likely to hold near the post-Korea
expanding investment income should largely offset
loan interest.
level,
period last
the full
Net
evidently
"Present dividend
increases
rates represents only
"Yields
still
generally
disbursements
In spite of
secure.
appear
last
current dividend
year,
The demand is still very
these
securities
is
not
obligations, with
supplying the bulk of the funds that
paid
the
on
average
grade corporate bonds has widened in the last
the
in
longer Treasury
chases in the 2V2%
the
1965-70's
bonds, with the 1962-67's
up
getting
attention.
more
Despite
has been going on in the other eligible
It
is
credit.
allowed
an
85%
dividends received
indicated
that
deposit
the
institutions
selling at
considerably
a
2V2%
Stock
pur¬
than market prices.
more
The stocks
buying which
From
phia
attracted
are
"Although bank stocks have lagged the industrials, there
and
to be
for
ap¬
other conservative investors.
"Book values
reserves
are
stated
Current
yields
on
an
mediate term bracket
bank shares
on
ultra-conservative basis.
have been established which
reported book values.
,
* '
:
■
used
so-called 'cost-of-living' bond
to
the
Ned Silverman
many
of the characteristics of
during the past 15
than offset the increase in the cost of
years.
a
The divi¬
investors
ultimate price
living.'
One of
interested
in
because
good yields and
institutions
have
been
given
permission
to
equities including bank shares.
South
secu¬
a
Wetherly Drive.
invest
•
in
Where such institutions
are
certain
of
the
a
high-grade bond yielding 3.25%,-
available
after taxes
on
on
certain
quality
bank
1.56%
The
net
In the search for
yields currently going
seem
yield
...
on among
that this factor will become
portant consideration in the market for bank shares
as
•
.
-
institutional
a
more
im¬
time passes.
Eppler
L,
Com¬
1839 Broadway,
He; was
formerly with Supple, Griswold &
Co.
.
and Stewart
Scanlon
*
& Co.
*
'
I
•
With Hamilton Managem*t
'.-"(Special to The Financial ChronhJle)
a
modest
DENVER, Colo.—Jas. H. Coch¬
way
ran
mortgages and preferred stocks.
'
'
,
*
more
' V'
is
with Hamilton Man¬
now
Corporation,
445
Gra£&
\
/
the
the buy side. It is
are being let out and
being put to work in the
a
than
the
amount
of
these
sales
on
1
'
.
n
.
j
which
in
j*
-
-
U. S. TREASURY
*
'f
•
Active
STATE
I
obligations have been the center of
switches," because these
bonds have been moved out of the portfolios of insurance com¬
panies into positions of commercial banks, particularly those that
are
dealer banks.
It is.reported that the 2%% due 1960-65 has
been the issue of importance in this operation.
*. •
•
Although there is no question about the attractiveness of the
longer-term Treasury obligations there have been many instances
in
investors, it would
of
Avery
The partially tax-exempt
for the bond,
against 4.06% for the bank stock.
with
pany,
.
the sell side-in
on
CITY, Calif.—How¬
ard F. Sillick has become connect¬
ma¬
and
what is being characterized as "important
against the 4.40%
stocks.
the two investments would be
been
Partial Exempts
comparison is made
as
REDWOOD
being
:
attractiveness
subject to Federal income taxes,
a
are
Eppleir
(Special to The Financial Chronicle)
being sold in order to
V
longer-term securities.
the advantage of owning bank Stocks is very real.. In the example
presented in the Kidder, Peabody report,
are
fairly important way, mainly
reported that the middle-term obligations
?
*
With Avery
few issues in the inter¬
reports
banks have
t
as
Ned
—
Fire insurance and casualty companies have also been in
the various fiduciary
years,
a
the securities that
likewise
down.
interesting facts emphasized in the report is the
Increasingly in recent
among
are
market in
bank shares.
return
Calif.
ANGELES,
However, it is reported that the issues which have been sold by'.; agement
the savings institutions have been principally in. the intermediate ^
Street.
term range and by selling these issues, profits have been nailed'
possibilities of
appreciation." *;
the
are
Savings
\
position of institutional investors and the tax position of dividends
between
the opinion
It is indicated that the 1961
with the out-of-town banks.
"Bank stocks appear to have considerable0 attraction for con-
servative
on
Opens
rities business from offices at 1125
comes
that a considerable number of*
switches are being made from direct Treasury obligations into the
so-called agency issues, with income being helped by this opera¬
tion. It is indicated that the bulk of these trades are being done
"
4
Philadel¬
(Special to The Financial Chronicle)
ed
There
dends and the gain in stockholders' equity from bank stocks have
'
registered *
their
Silverman is engaging in
being sold and the proceeds
are
buy the 1959-62 issues.
make way for the 1959-62's.
not included in
are
to
turities
Sub¬
' ; ;
'
"Bank equities have shown
more
that
associ¬
now
a
office.
yield but also because of the prospects of price appreciation.
Accordingly, it is reported that quite
expanding demand for such shares by fiduciaries
an
should continue to attract the large institutional type of holder.
stantial
specialists
in
is
as
commercial banks.
LOS
of the money market
them
that the 21/4s due 1959-62 are attractive at current levels, not only
Average.
pears
some
-
■
announce
Converse
with
representative
'2%s of 1959-62 Seen Attractive
are
.
Exchange,
John H.
the premium is low.
comparatively low ratio to the Dow Jones Industrial
com¬
pay
With Eastman, Dillon
"Since Korea, earnings and dividends of large city bank shares
have risen
to
PHILADELPHIA, Pa. — East¬
man, Dillon & Co., 225 South 15th
Street, members of the New York
longest eligible bond because the tax-tree yield is favorable and
Corporate bond interest is fully taxable.
are
purposes.
to and including
the
both
be used
to
are
for
exploration and development costs
and
used for
general corporate
bonds, the September 2V2S
corporations receiving dividends from bank stocks (or other com¬
are
The net proceeds to
ated
1967-72 is still the favorite obligation of the
year.
the
15
per
panies
The commercial
banks, according to reports, have also been expanding their
for almost
of
preferred stocks)
an
There is
have been
market with
Furthermore,
or
Corp., both priced at
share. The shares
offered as a speculation.
being used in obtain¬
ones,
Cherokee
of
nium
the shorter-term issues
are
stock
common
cents
being made into the
are
funds, both the private and public
important
very
"The spread between the yields for bank shares and for high-
mon
sizable
having exactly
the buyers of the nearer-term.
bonds getting what is termed substantial buying.
century by the banks under review.
a
of
upon
Treasury
Pension
Continuity of income has been outstanding.
Consecutive dividends have been
three-quarters of
of
Uranium Mining Corp. and a like
number of shares of Mesa Ura¬
effect
issues, and the higher yield which is being
let-up in the switches which
no
& Co., of Jersey City,
J., are offering 2,000,000 shares
ing the higher income securities.
57% of 1953 earnings.
good.
are
rates
in
certain
distant
most
close to the record total of 1953.
numerous
in
adverse influence
should be
year
Uranium Shares
N.
shorter-term
obtained
above those for the
were
and earnings for
year
as
explore.
properties
leased
Tellier
the whole Government list.
for the
decrease in
Expenses and taxes should be reasonably stable.
operating earnings in the first quarter
same
any
upon
war.'
-
»
Range Dis¬
Colorado, known as the
of
raising
The pressure of funds seeking investment is having its
high degree of stability during
a
jr.
,
Tellier & Go. Offers
Market Pressure Continues
shown in the report are presented below:
the present transition period of 'neither real peace nor real
of
:
significant highlights from the Kidder Peabody review
bank stocks
.
Pewabic properties.
making the terms of
especially interesting and helpful in formulating ideas about bank
on
-
It has been rumored
considerable
been
corporate
general
develop
trict
to how the refunding of the maturing certificates should
as
be handled.
are
there
that
street
for
situated in the Front
the end of the month tends to
In addition to the above banks, selected data on four of the larger
repayment «f
for
costs,
and
The company plans to
cer¬
The fact that the exact terras of the offering
will not be made known until
for exploration and devel¬
opment
purposes.
-
mild element"
a
(par
,
per share.
The net proceeds are to be used
to pay
loans
hand, the statement that the Aug. 15 and Sept. 15
common
Mines, Inc. at 20 cents
in line
The total debt of the Government will still be \
long note
a
stock
cent) of Front Range Uranium.
and
tificate,
banks in the
larger
other important cities of the country, or a total of 29 banks
to
were
was
maturity of certificates will be refunded withveither another
shown together
are
1955,
deficit,
with the present limit after this financing.
{
issue of 1,495,-
an
shares of
one
Treasury that $3,500,000,000 of 1%
of the initial part of the
care
-
.
t
H. ,J. Cooney & Co., New York
City, is offering
anticipation certificates due March March 22,
be used to take
cently distributed the 1354 edition of their annual review entitled
i
"The Case for Bank Stocks."
-v v
«
v -.•>>
i*
Cooney Offers
Uranium Mines Shs.
000
The announcement by the
tax
-
Governments
on
By JOHN T. CHIPPENDALE, JK.
Bank Stocks
—-
33
(337)
these bonds have
been
sold
MUNICIPAL j
SECURITIES
:
-
in order to make commit¬
tax-free securities. It is reported that
have been sellers of the most distant
Government maturities in order to make way for corporate bonds.
ments
and
organizations
corporate
charitable
Also, these
institutions have made commitments in revenue
proceeds from the sales of long Treasuries.
same
bonds with the
Aubrey G. Lanston
& Co.
Notes
NSTA
INCORPORATED
15 BROAD
ST., NEW YORK 5
WHitehall 3-1200"
,
231 So. La Salle St.
-
-
45 Milk St.
CHICAGO 4
SECURITY TRADERS CLUB OF ST. LOUIS
The
^
Security Traders Club of St. Louis will hold their Annual
Summer Outing on
July 29 at "Leisure-Lea."
BOSTON 9
ST 2-9490
HA 6-6463
«
1954
Financial Chronicle... Thursday, July 22,
The Commercial and
(338)
&4
* INDICATES ADDITIONS
SINCE PREVIOUS ISSUE
Securities Now in Registration
Acme Uranium Mines,
Bldg., Denver 2,
REVISED
A J
shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For working capital.
Office — 172 South Broadway,
White Plains, N. Y.
Business—Entertainment and re¬
July 20 (letter of notification) 295,000
(Thursday)
July 22
Colo.
New
Alpine Uranium Corp., Salt Lake City, Utah
(letter of notification) 7,500,000 shares of com¬
mon stock.
Price—At par (three cents per share). Pro¬
ceeds— For mining expenses.
Office — 512 Zion's Sav¬
CALENDAR
ISSUE
NEW
Underwriter—Carroll,
Colo.
Kirchner & Jacquith, Inc., Denver,
ITEMS
(George L.) Associates, Inc.
if Bradley
Inc., Denver, Colo.
(letter of notification) 9,996,000 shares of com¬
mon stock (par one cent).
Price—Three cents per share.
Proceeds—For mining expenses.
Office—425 Ernest &
June 21
Cranmer
•
Underwriter—None.
fields.
lated
York, New Haven &
f
Plastics Corp.
Brilhart
1
.
>
•
£
•
Hartford RR.
June 28
Equip. Trust Ctfs.
—
(Bids
Boston
Utah.
Republic Uranium
——Bonds
Edison Co
(Bids
11
Common
Corp—
&
Co.,
pire on July 26.
Price—$1.75 per share.
Proceeds—
To repurchase 39,500 shares of its, common stock from
General
Acceptance
Corp. and for working capital.
$18,000,000
EDT)
a.m.
(Tec°n
American-Canadian Oil & Drilling Corp.
stock
(Monday)
July 26
Bldg., Salt Lake City, Utah. UnderwriterUranium Mart, Inc., 146 South Main St., Salt Lake City,
ings Bank
(letter of notification) 48,660 shares of common
(par 25 cents) to be offered for subscription by
common stockholders of record July
1 on the basis of
one new share for each three shares held; rights to ex¬
July 1
$6,180,000
EDT)
noon
$297,500
Inc.)
,
Sherman &
D.
(L.
United Public Markets,
(G.
(White
Buffalo
activities. Office—602 First National
Bank Building, Denver,
Colo.
Underwriters — M. A.
Cleek and J. Russell Tindell, both of Spokane, Wash.
(Hornblower
11:30
subscription
$25,000,000
EDT)
a.m.
ble class A common stock
—Debentures
Consolidated Natural Gas Co.>(Bids
Byrd Oil Corp., Dallas, Texas
shares of 6% cumulative conyerti(par $7.50) to be offered for
June 15 filed 260,000
85,000 shares
Weeks)
&
(Eisele
bank loans.
Central
Illinois
Price—At market.
Gleich
States Steel
United
Pro¬
(Morgan
purchases of common
501 Third Ave., Phoenix, Ariz. Under¬
&
Debentures
Office
—
Midland
Arkansas Natural Resources Corp.
(A.
J.
Grayson)
Northern Illinois Gas Co._______
Underwriter—Eaton & Co., Inc.,
(Charles Weinstein & Co.)
(letter of notification)
Office—Rison, Ark.
(Bids
11
a.m.
CDT)
between
.Common
381,542
and
63,489
Trans-World Uranium Corp
—For-working
shares
•
Automatic
June
Firing Corp., St. Louis, Mo.
(7/27)
$293,750
(letter of notification) $300,000 of seven-year
convertible debentures due Aug. 1, 1961 (convertible at
rate of one share of $1 par class A common stock for
(Bids
(Bids to be
Price—At par
(in units of $1,000 each). Proceeds—-For working capi¬
tal.
Underwriter—White & Co., St. Louis, Mo.
Dealer
Relations Representative—Geo. A. Searight, 115 Broad¬
;
(Bids
Debentures
$30,000,000
Mining Co., Lordsburg, N. M.
June 30 (letter of notification) 25,000 shares of common
stock (par $1) to be offered first to stockholders. Price—
$5 per share. Proceeds—For working capital. Under¬
writer—J. A. Hogle & Co., Salt Lake City, Utah.
Y-.
Co.)
duPont &
common
Common
Harrisburg Steel Co
—For
(Reynolds & Co.) about 200,000 shares
General Fund
Canada
(Bache
Co.
&
'
;
(Bids
■
V
"
(Bids
<:
-
by
(Bids
.Bonds
be
to
to
be
'
■'"•
•
4
com-
invited)
may
•
New
Indiana
l'.
to
be
'
11
Private Wires
to
all
offices
Y
cents)
stock.
'(Bids 11 a.m. EDT)
i
;
-
626,204
offered for
the basis of
on
Co.
-
-
>
1,252,408 shares of preferred
preferred stock
subscription by
one
share
stock (par
purchase war¬
common
stock-
of preferred and an
to purchase one additional share of preferred
Price—55 cents per unit;, Proceeds^For develop¬
None.
and working capital and general corporate
Office—Salt Lake City,,Utah. Underwriter -—
*
RY
:;.if Colorado Reduction Corp., Columbus, Ohio "1
July 8 (letter of notification) 1,800 shares of class B
common stock.
Price'— $25 per share.' Proceeds-J-For
Bonds
equipment,, and general, corporate purposes: Offic^—85
Columbus, Ohio. Underwriter—None, f
N. High St.,
'
Bonds
1
Comanche Uranium Co.,
;
Inc.
notification) 5,000,000 shares of capital
cent). Price—Four cents per share. JPro-
June 17 (letter of
.Preferred
$4,000,000
-
.■
ment* program
$16,500,000
.
and
be
purposes.
$30,350,000
Electric Co.__j
EDT)
Y
v
/-V.-Y....
invited)
(Tuesday)
•
^option
,
..Common *
r
to be
& Michigan Electric Co
;
N
to
holders
'
(Thursday)
invited)
a.m.
•>
Cleveland
50
*"
Preferred
stockholders—bids
September 30
(Bids
San Francisco
.
filed
June 24
-
" •;
^'
(Tuesday) . <
'•
Consolidated' Mining
Chief
Bonds
i
$7,500,000
England Electric System.
Indiana & Michigan
Philadelphia
-
$16,000,000
invited)
be
October 5
Chicago
Y
'
I:
__
September 28
(Bids
Pittsburgh
Okla.
>, ' Y"
June 24 (letter of notification) 6,000,000 shares of Capital
stock (par one cent). Price—Three cents per share;. Pro¬
ceeds—For mining expenses. Office—65 East 4th South,
Salt Lake City, Utah. . Underwriter—Cromer Brokerage
Co., Salt Lake City, Utah.,
, ;•
,/
"Y Y-';
'
(Wednesday) *
Oklahoma Gas & Electric Co.
•
Y./ Y YYY ■:
Cherokee Utah Uranium Corp.-
!___Bonds
$30,000,000
invited)
Ry
Underwriter—None.
ta!
1,
i
(Wednesday) V: ■;
September 14 (Tuesday)
.
Boston
.
Inc.,; Oklahoma City,
Industries,
$7,500,000
Louisville & Nashville RR....
»
ill.
Cherokee
rants
(Offering to
New York
Office—4334 Oak Street, Kansas
Underwriter—Paul C. Kimball & C04 Chi¬
Offering—Expected in August. *
*
"
<
\r
working capita!
May 10 filed 5,000,000 shares of class B non-voting com¬
stock (par 1 cent). Price—$1 per share. Proceeds—
For construction* operating expenses and working capi¬
Co.__2____
invited)
September 8
Western Maryland
v
determined
be
(Bids to be-invited) $25,000,000
(Bids
be
to
Southern California Edison Co..
(7/26)
Underwriter—To
2,500,000 to
August 25
★ Beach Harbor Publishing Corp. ( *
July 19 (letter of notification) 75,000 shares of preferred
stock ,(no par) and J00,000 shares of common stock (no
par). Price—Of preferred, $1 per^hare; of common, 25
cents per share. Proceeds—For working capital.
Office
construction.
cago,
v-
Niagara Mohawk Power •Cbrp._ili_i_____'.__Bonds
acquire properties and leases. Office — Blati
Bldg., Santa Fe„ N. M. Underwriter—Hunter Securities
Corp., New York-.
Edison Co.
Curtis)
Jackson
3,000,000 shares
Webber,
(letter of notification) 58,000 .shares of class A
stock (par $1). Price—$5 per share. Proceeds
City 6, Mo.
"
(1954) Limited;___Common
Paine-,
Arkansas Power & Light
,
June 29 filed $18,000,000 first mortgage bonds, series E,
due 1984.
Proceeds—To retire bank loans and for new
and
mon
ceeds—To
Boston
1
1
August 24 (Tuesday)
Gas
Underwriter— Noqer
and
between
.
N. Y. Underwriter — Albert Kravitz Co.,
Washington, D. C.
'
!
'
*
N. Y.
(Thursday)
August 12
New York,
•—Far Rockaway,
investment in stocks of subsidiaries,
corporate purposes.
Underwriters —
Century Acceptance Corp..
Inc., New York
/
(letter of notification) 191,700 shares of com¬
mon stock (par 10 cents), of which 170,000 shares are
for the account of the company and 21,700 shares for the
account of selling stockholders.
Price—$1.50 per share.
Proceeds—For mining expenses. Office—11! Broadway,
Corp., Santa Fe, N. Mex.
Dec. 23 (letter of notification1) 748,000 shares of common
stock (par five cents )f Price—40 cents per share. Pro¬
general
May 27
Basic Atomics,
Natural
,
Webber, Jackson & Curtis, of New York
Boston; and Loewi & Co., Milwaukee, Wis. ;
(Tuesday)
August 10
June 28
Basin
Underwriter—None.
Paine,
Common
and Francis I.
$18,750,000
.(Glore, Forgan & Co.
and
to,
for
and
.
United Funds Canada Ltd
Banner
advances
^..Bonds
EDT)
noon
expenses.
if Central Te'eo^one Co., Lincoln, Neb.
July 19 filed $1,500,000 of convertible subordinated de¬
bentures due May 1, 1969. Price—At 100% of principal
amount.
Proceeds—For construction expenditures, for
(Monday)
August 9
mining
For
$20,000,000
Pacific Power & Light Co
York, N. Y. (telephone BArclay 7-8448.)
way, New
invited)
Office—5916 Hollywood Blvd.,
Underwriter—None.
$2,655,000
Mo/untain States Tel. & Tel. Co...
each $2 principal amount of debentures).
capita!
ir Carpenter-Morrison Uranium & Oil Co., Inc.
Equip. Trust Ctfs.
EST)
noon
1
July 8 (letter of notification) 250,000 shares of common
stock.
Price—At par (10 cents per share.) Proceeds—
(Tuesday)
Central of Georgia Ry
30
V
*
Angeles 28, Calif.
Los
..Common
New York, N. Y.
August 3
outstanding.Underwriter — Merrill Lyireh
& Beane, New York. Offering—Tem¬
if California Test Bureau, Los Angeles;1 Calif.
July 2 (letter of notification) 1,000 shares" of class B
common stock.
Price—At par ($50 per share). Proceeds
$500,000
299,500 shares of com¬
mon stock (par 25 cents).
Price—$1 per share. Proceeds
—For expenses incident to drilling for magnetic iron ore.
June 11
and, together
shares,
porarily deferred.
Corp._ .Preferred & Common
Commercial
'
-
Fenner
Pierce,
(Monday)'
August 2
writer—None.
98,800
totaling
$50),
(par
presently
•
ceeds—To reimburse company for
stock.
Offering—
;
proceeds from proposed issue of $8,000,000 of new
first mortgage bonds, to redeem $8,000,000 3%% banda
$225,000,000
Co.)
14-day
$9 to
with
$147,500
Corp._____
Stanley
of one
—
stock
Common
Co.)
a
22 filed 105,000 shares of cumulative preferred
(par $50). Price—To be supplied by amendment
Proceeds
To redeem two
issues of $2.50 preferred
Bonds*
King Copper Mining Corp.
(D.
(with
stock
$25,000,000
EDT)
noon
.
April
RR
(Bids
California Electric Power Co.
185,000 shares
(Thursday)
July 29
held
Dowell, Chicago, 111. (latter handling books).
Expected in August.
.Common
& Co,, Inc.)
(Milton D. Blauner
^ Arizona Public Service Co.
July 12 (letter of notification) an undetermined number
of shares of common stock to be offered under em¬
ployees' stock purchase plan.
$299,360
(Wednesday)
July 28
$12.50 per share.
Underwriter—None.
common
Stout & Co.)
Libaire,
King,
Industrial Hardware Mfg. Co
Price—For preferred, $48 per share;
Proceeds—To reduce
Sept. 24.
on
&
shares
2.5
public. Proceeds—For payment of notes and accounts
payable and for working capital. Underwriters—Dallas
Rupe & Son, Dallas, Texas, and Straus, Blosser & Mc¬
-Debentures & Common
Pinellas Industries, Inc.
stockholders at rate
common
each
Price—$8.10 per share to stockholders,
standby).
$300,000
Inc. and Crerle & Co.)
(Gearhart & Otis,
being offered for subscription to holders of outstanding
preferred stock of record July 7 on 1-for-10 basis, and
the common stockholders to have right to subscribe for
the new common stock on a l-for-10 basis; rights to ex¬
and for
Common
Marion River Uranium Co
by
share; for
new
Angeles, Calif.
June 11 filed 32,669 shares of $3 cumulative and par¬
ticipating preferred stock (no par value) and 52,876
shares of common stock (par $1), the preferred shares
Arden Farms Co., Los
Under¬
writer—Hornblower & Weeks, New York.
Common
Co
Forge
ceeds—For mining
Proceeds—To 11 selling stockholders.
offering.
Debentures
:
$300,000
Co.)
&
(7/27)
85,000 shares of common stock (par $1).
Price—To be related to current market price at time of
filed
7
July
(Tuesday)
.Automatic Firing Corp
Un¬
L. I., N. Y.
"
Buffalo, N. Y.
Buffalo Forge Co.,
Debentures
$300,000
Co.)
&
derwriter—None.
$300,000
Co.)
Inc._
Walker
H.
July 27
Apollo Oil & Uranium Co., Denver, Colo.
May 27 (letter of notification) 12,500,000 shares of com¬
mon stock.
Price—At par (one cent per share). Pro¬
pire
Country Road, Mineola,
Office—Old
May 12 filed 1,500,000 shares of common stock.
Price—
($1 per share). Proceeds—For drilling expenses
and acquisition of additional properties for development
and exploration, and related activities.
Office—Dallas,
Tex. Underwriter—None.
At par
Common
Co.__:
Sulphur Exploration
•
•
.stock
'
"V
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp.; Lehman Brothers; Kuhn,
Loeb & Co. and A. C. Allyn & Co. Inc. (jointly); White,
Weld & Co.; Harrrman Ripley & Co. Inc.
Bids—To "be
received up to 11 a.m. (EDT) on July 26 at 182 Tremont
St., Boston, Mass. ,
Y
: Y
(par one
ceeds^For mining expenses. Office—628 S". State. St.,
Salt {Lake City, Utah. Underwriter—Uranium Martjlnc.,
146
Main St., Salt Lake City, Utah.
f
-
Commercial' Uranium Mines, Inc.; Denver,7 Colo.
(letter..of notification) 9,996,000 shares of pom-
June 21
moi^
stock (par one cent).
Proceeds—For exploration.
mer
,
Bldg., Denver, Colo..
Price—Three cents per share.
Office—704 Ernest & Cran¬
Underwriter-^CarroU, Kirch-
nei£&L Jaquith, Tnc^..Denver, Colo/ '
e.
^
-
j-
-
.
Number 5344
Volume 180
.-.
.
The Commercial and Financial Chronicle
.■*
A
(339)
^ Commonwealth Fund, Boston, Mass.
Gray Manufacturing Co., Hartford, Conn.
July 15 filed 3,500 Plan A units and 1,150 Plan B units.
June
10
filed
58,119
to
on
it Consolidated Development Co.
July 14 (letter of notification) 16,000 shares of non¬
voting common stock (no par) and 4,200 shares of voting
common stock (no par).
Price—$1 per share. Proceeds
—For purchase of building sites, construction and gen¬
eral corporate purposes. Office—2020 North Ave., Grand
Junction, Colo. Underwriter—None.
be offered for
the basis of
Price—To
be
of
snares
subscription by
June 11
&
stockholders
common
Proceeds
(par
one
West,
Uranium Co.
Price
cent).
—
New
10
cents per
For oil and
com¬
chester
Lighting
Co. general mortgage bonds.
•
Under¬
writer—To be determined by competitive bidding.
for
Corp.
Inc.; Morgan Stanley
Offering—Originally set
May 11, but has been postponed because of market
conditions.
No
date
new
set.
Proceeds—To redeem
37/s'%
Sept. 1, 1954,
on
debentures due 1978.
mined by
competitive bidding. Probable bidders: Halsey,
Inc.; White, Weld & Co. and Paine, Webber,
Jackson & Curtis (jointly); Morgan Stanley & Co. and
The First Boston Corp. (jointly). Bids—To be received
Stuart & Co.
up to 11:30 a.m.
(EDT) on
Plaza, New York 20, N. Y.
July 27
.
Gulf States
.
it Constant Minerals Separation Process* Inc.
July
(letter of notification) 200,000 shares of
voting capital stock. Price—20 cents per share.
May
-
•
Pro¬
principal .amount..
Proceeds
None.
Crown Uranium
10-year
Price—100%
Co., Casper, Wyo.
(letter of notification) 2,400,000 shares of com¬
(par 5 cents). Price — 10 cents per share.
Danaho
June
14
shajres of
ible
$625,000
of
6%
debentures
and
ments.
unit. Proceeds—For additions
Underwriter—None.
per
j
'*
,
Danaho
and
'
it Denver Northern Oil Co., Denver, Colo.
July 7 (letter of notification) 6,000,000'shares of
stofck. Price—At par (five cents per share).
Colo.
common
For
$20) which
may
Proceeds
—
July 14 filed 25,000 shares of
it Master Television, Inc. (N. Y.
14 (letter of notification) 1,000 shares of class A
$199,000 of 10-year 6% debentures.
Price—At par.
Proceeds—For working capital.
Office
—853
Seventh Ave., New York City.
Underwriter—
July
None.
McCluskey Wire Co., Inc., New Haven, Conn.
(letter of notification) $95,000 of 5% debentures,
series A, due July 1, 1962, and $95,000 of 6%
debentures,
stockholders
June 21
pay
Underwriter
series B, due July 1, 1970. Proceeds—To acquire assets
and business of H. & T. McCluskey & Sons, Inc. Office
—527 Grand Avenue, New Haven, Conri. Underwriter—
(8/10)
stock (par $2.50),
Barnes, Bodell & Goodwin, Inc., New Haven, Conn.
Merchants
Acceptance Corp., Worcester, Mass.
(letter of notification) 8,474 shares of class A
stock (no par) to be offered in exchange for
11,512 shares of common stock of Guardian Credit Corp.
To redeem
market.
common
1954.
&
Hercules Cement Corp.
.
•*'.
?
-'k
*
^
J £-.:*•
\
"
..
■
-'-'••
ifi
(d£SI)to
te
oSun^/TsS-ck
^
share
Price—$18
per
of
Merchants
Acceptance
expires July 30,
Underwriter—G. H, Walker.
share.
share.
Offer
Co., Providence, R. I.
ErieHMnforced Wastic Pipe Corp.
advances
($05,000) .and for
writers—Lee
Erie
from
general
June 28 (letter
•;
.
&
Steel: Corp./
purposes.
Proceeds-To erect a hospitai-la tfie
Borough of Paramus, N, J., and for working capital, etc.
- Underwriters—Stroud & Co:, Ind,ARey-^
nolds" & Co„. and Newburger & Co., all of
Pttiadelphia,
Pa.; and Warren W. York & Cot., Allentown, Pa..
^ Historic Georgetown, Inc., Washington, D^ C.
Forge
corporate
¥4O>00
^
July 7
notifica$iqp^ 200,000 shares of common
stock'(par five cents). -.jPricd—$L50 per share. Proceeds
of.notification) 20,000. shares of
Underwriter-None.
*
'*
Under*
.
.
,
ance
,
account
.
Louis
Financial Credit Corp., New York
^
Jan. 29 filed 250,000 shares of 7% cumulative
sinking
fund preferred sfock. Price—At par ($2 per share). Pro¬
ceeds—For
working capital. Underwriter—E.
tain & Co.f-lHC;, New York.
^
Genera! Gas
To be supplied
selling stockholders.
common
working caiptal.
Inc., New York.
JrJToun-
Inland
Proceeds ^- To
Underwriter—Kidder. Peattbdy &
by amendment.
It
Waterworks Corp. A
*
.fe"
(letter of notification) 29,600 shares of e9pmon
-stock (par $1).
Price—$10.1272 per share. Proceeds—
For investments in qr advances to certain of
sub¬
.
:
*
Underwriter—Milton D. Blauner & Co.,
Uranium, inc., Salt Lake City, Utah
June 14 (letter of notification) 10,000,000 shares of com¬
mon stock (par 1 cent).
Price — 3 cents per share. Pro¬
ceeds—For raining expenses* Underwriter—Cayias Bro-.
kerage Co., Salt Lake City, Utah.
—
-
shares, for account of
Price—$3 per share.bank loans and pay taxes, and fo*
'
.
stock.
Price—At'par^($5 per share).
Proceeds—For
manufactulre and sale of all types of merchandise. ot.
fice—1820 Grant St., Denver, Colo. Underwriter—None.
Underwriter—Kidder, > 4
Offering—Postponed in¬
•/
_
•
^
Monarch Uranium Co.* Salt Lake City, Utah
June 21 (letter of notification) 2,000,000 shares of
tal
stock
•Proceeds
capiPrice—Six cents per share*expenses.
Office—.530 Judge
(par four cents).
For
mining
Building, .Salt Lake City, Utah. Underwriter—James E.
Reed Co., Salt Lake City, Utah. '
-
—
Monterey Oil Co., Los Angeles, Calif.
Proceeds—To Lehman Borthers
(400 shares); partners of Lehman Brothers and members
(150,458); and The J^hman
of their immediate,families
Corp. (106,480).
planned.
•
'■*
Underwriter—None.
No general offer
-
'
..
•
Continued
on
•
•;
'
^
shares of common stock (par $1).
Price—At the market price then prevailing on the New
York Stock Exchange, or through special offerings or
Feb, 2 filed 257,338
»secondary distributions.
it Ja^gray Co., Denver, Colo.
* *
July 1£ (letter of notification) 5,000 shares of common
*
,
program.
—None.
Uranium,
Interstate
General
June 30
cago, IU.).
78,398
tain Securities, 508 Atlas Bldg., Salt Lake City, Utah.
Co., New York. Offering—Postponed indefinitely./
Office
Philadelphia, Pa. Underwriters —
To.wnsend, Dabney & Tyson; Schirmer/Athertori*^ Co.;
F. L. Putnam &
Cd.,*Ipc.;£hea *&• Co.; Inc.; and Hbdgdon
& Co. (aU^of
H^t<5]5,n&ass.); The State Investment Co.
(Portland,. Me.);,and McDougal & Condon,
and
Inc.
June 17 (letter of notification) 5,000,000 shares of capi¬
tal stock (par one cent).
Price—Two cents per share.
Proceeds—For mining expenses. Office—240 S. 2nd St.,
East, Sfilt Lake City, Utah. Underwriter—Rocky Moun¬
stock mar $5).
.
company
construction
^Mobile-Home Sites, Inc., Monroe, Mich.
July. 9 (letter of notification) 68,000 shares of common
stock. .Pricerr-r-At par ($1 per share). Proceeds—To con¬
struct, operate and maintain house trailer parks. Office
—803 JMadeau Road, Route 5, Monroe, Mich. Underwriter
Offerman, Vice-President.
Proceeds—To repay
Corp., Baton Rouge, La.
March J9 filed 100.000 shares of
of
,
redeem
Peabody & Co., New York.
definitely.
—
Spirks, Nev.
for
/
^
^
Outstanding first preferred .stock
($3,475,000)^ to repay $750,000 bank loans.^nd the bah-
.
it Eureka Uranium Corp., Cheyenne, Wyo.
.; Bldg., Sal| Lake City*, iffeah. Underwriter
Axthur
July 12* (letter of edification) 30,000,000 shares of com- ^Pett, 345 State St., Salt Lake City^Utah.,
.
•
mon
stock.
Price—At par (one cent, per share.).Pr®-^~aindustrial Hardware
Mfg. Co., N. Y. '(7/28)^
ceeds
For mining expenses.
Office—2215 Duff Ave.,
June 14 filed 185,000 shares of common stock (par 50
Cheyenne, Wyo.
Underwrite r- -Ufiderwriter^,' Inc.,_
cents), of which 106,6Q2 shares are to be offered for
,
Ll.
„
Missouri Public Service Co.
;
April 23 filed 50,000 -shares of cumulative preferred
stock (par, $W. Pr|ee—Tq-be supplied by-amendmenfc
Proceeds—To
_
-
comm^i^. ceQts) .to b& offered first to, atqckholdfeivand to gen_
era! public. Price—$2 per share; Proceeds—To increase
capital and surplus. Underwriter—None.,*-
•
_
'
DhsisakNteniiity Co., Pasadena, Calif,
Mareh 29 ^4,600v0^)tshares of cqmmgn stock (pac 85
stock,. Urice—At par ($1 per sharej. Proceeds—Fior res*
toration and remodeling of properties.
Office^JJOO Eye
St., N. W., Washington, D. C. UnderwriteiwNorJe.';
Inq,
sidiaries.
0.73
Guardian
^
„■
modernization.
Price—$10.60 p^ir share. Proceeds-For
expansion* and forking capital. Office—41 East 42nd
St., tl&eW York 17, N.JY; -. Underwriter—None.
—
of
—82 Beaver St., New York, Nr-Y. .-Underwriter — A. J.
40,555 shares of common stock (pdr $10)
Grayson, New-York.
* '
■
\
*
being offered for subscription by common stockholders.
-pi record
-Of record June 15, .1954, on the basis of one <new.sharer*s> Midland General -Hospital, Inc., Bronx, ftf- Y.
1954,
pi one *new .share - f
*or~ each lour. shares held* rights to e«pr$ on, Aug. 4. < MayU 7 filed 900 shares of common stock (no pz&:Price
,
*2^
,,wm&e plan;
Price
basis
for each
• Midland Commercial
Corp. (8/2)
July-6 (letter of notification) 3,000 shares of $6 cumula¬
tive,, convertible preferred stock (par $20) and-15,000
shades of common stock (par 10 cents>. to be offered in
unit$ of one preferred and five common shares.; Price
—$100 per unit. Proceeds—For working capital. Office
^tocl^. Priced—At
^
the
on
.-stock
presently out¬
Co., Lexington, Ky.
Proceeds—For investment.
28
■
'>tk'A-1_$1.
r
Underwriters—Gearhart &
June 22 filed
be purchased under
the* plan.
j(J»ly
expenses.
stock (par $100) and
Harrisburg, Pa.
tit Haydock Fund, Inc., Cincinnati, O.
$5,000,000 of participatidhs in ' Employee
Stock^Purchase Plan of Aug. 10; 1954, and 152,000 shares *
of Capital,stock (par
development
common
N.-Y. and SecUrity iarFd' Bond
^
*
(7/27)
Otis, Inc., New York; and Crerie & Co., Houston, Tex.
convert¬
Proceeds—To
par.
Co., New York.
Marion River Uranium Co.
June 14 (letter of notification) 300,000 shares 6f common
stock (par 10 cents).
Price—$1 per share. Proceeds—
Proceeds—Valley Investing Co., Inc.,
'
-■
•
standing bonds ($71,335);- to repay FDIC notes ($25;000)
working capital;- Office—301 Turner St., Utica,
Office—300 Kittredge Bldg., Den¬
Underwriter—H. Carl Aiken, Denver, Colo. ...
repay
gan &
and for
common
"July 19 filed
—T6
to
Uranium
for acquisition of additional properties. Under?
& Co., Houston, Tex., and Peter Mor¬
June
accrued interest.
expenses.
^it Detroit Edison Co., Detroit, Mich,
Tniv
reserve
it Hart & Crouse Corp., Utica, N. Y.
July 14 (letter of notification) $250,000 of 20-year first
mortgage 6% bonds due Aug. 1, 1974. Price—100% and
Refining Co., Houston, Texas
.
ver,
first
Price—At
,
filed
18
New York.
14 filed 110,000 shares of common stock
(par 10
cents). Price—$2 per share. Proceeds—For additions and
improvements. Underwriter—None.
mining
offered
public.
share.
writers—French
July 14 filed 186,683 shares of common
Price—To be supplied by amendment. Proceeds—To cer¬
tain selling stockholders.
Underwriter—Reynolds & Co..
improve¬
June
For
be
to
to
it Harrisburg Steel Corp.,
(par 10 cents) to be offered in
units of $50 of debentures and 30 shares of stock. Price
—$100
then
current accounts and for
working capital.
•i—Alex. Brown & Sons, Baltimore, Md.
375,000
stock
common
notes
and
Refining Co., Houston, Texas
filed
due
$10,000,000 of 3%%
$10,000,000 of 3%%
it Hagerstown (Md.) Gas Co.
July 12 (letter of notification) $100,000 of 5%
Proceeds—For mining expenses. Office—205 Star'
Bldg.,
Casper, Wyo. Underwriter—Forbes & Co., First National
Bank Bldg., Denver 2, Colo.
.
per
Corp., Denver, Colo.
1,000,000 shares of common stock (par 10
cents). Price—$1.25 per share. Proceeds—For explora¬
tion and development costs, purchase of
equipment, and
Co., Inc. (jointly); Lee
Higginson Corp. and Carl M. Loeb, Rhoades & Co.
(jointly); Stone & Webster Securities Corp. Bids—Had
tentatively been expected to be received up to 11 a.m.
(EDT) on June 15 at The Hanover Bank, 70 Broadway,
New York, N. Y., but offering has been
postponed.
For
stock
mon
Loma
Co. Inc.; Lehman Brothers; Merrill
Lynch, Pierce, Fenner
& Beane and White, Weld & Co.
(jointly); Salo¬
mon Bros. & Hutzler and Union
Securities Corp.; Kuhn,
Loeb & Co. and A. C. Allyn &
::
Jupe 11
mortgage bonds
cents
—
bonds due 1983, and for general corpo¬
Underwriter—To be determined by com¬
bidding.
Probable bidders: Halsey, Stuart &
petitive
machinery and
Office—New Bethlehem,; Pa. Underwriter—
equipment.
first
Price—Three
it Little Queen Mines, Inc., Atlanta, Idaho
July 12 (letter of notification) 6,500,000 shares of com¬
mon stock.
Price
At par (one cent per share). Pro¬
ceeds—For mining
expenses.
Underwriter—None, offering to be made through officers and directors.
June
of
cent).
one
—
rate purposes.
$200,000 of 6%
coupon, debenture bonds due July 31, 1964.
of
$24,000,000
(par
mining operations.
Office—402 Darling
Bldg., Salt Lake City, Utah.
Underwriter
Uranium
Mart, Inc., 146 S. Main St., Salt Lake City, Utah.
first mortgage
'
*
^Crawford Furniture, Inc.
July 13 (letter-'of notification)
14 filed
Underwriter '
Proceeds—For
'
^
June 1, 1984. Proceeds—To redeem
first mortgage bonds due 1981 and
non¬
ceeds—To Maurice Constant and Harry C. Hewell.* Of¬
fice—530 California Ave., Reno, Nev.
Underwriter—
None.
stock
York, N. Y., but of¬
Meeting—Stockholders will
Utilities Co.
Office—Las Vegas, Nev.
LaFortune, Las Vegas, Nev.
Liberty Uranium Corp., Salt Lake City, Utah
July 1 (letter of notification) 3,000,000 shares of common
at
fering has been postponed.
vote Aug. 17 on new issue.
Rockefeller
at 30
working capital.
—Lester L.
—
Brothers and Equitable Securities Corp.
(jointly); Kuhn,
Loeb & Co.; Glore, Forgan & Co. and W. C.
Langley &
Co. (jointly). Bids—Had
tentatively been expected to be
received up to 11:30 a.m. (EDT) on June 15 at The
Hanover Bank, 70 Broadway, New
like amount of
a
Underwriter—To be deter¬
York.
one common share.
Price—$10 per unit.
Proceeds—To build and operate a
luxury hotel and for
the prevailing redemption prices of
$105, $105, and $105.75, respectively.
Underwriter—To
be determined by competitive bidding.
Probable bid¬
ders:
Stone
&
Webster
Securities
Corp.;
Lehman
Natural Gas Co.
(7/27)
$25,000,000 of 24-year debentures due 1978.
Office—1519 Pine Ave.,
Gleich Co.,
Underwriter—D.
preferred and
'
Utilities Co.
preferred stock
#
Consolidated
June 25 filed
;
Gulf States
Proceeds
Prob¬
able bidders: Halsey, Stuart & Co.
& Co.; The First Boston
—
Utah.
Canada.
Vegas Continental Hotel, Inc.
May 17 filed 500,000 shares of preferred capital stock
(par $9.90) and 500,000 Shares of common capital stock
(no par—100 stated value) to be offered in units of one
May 14 filed 160,000 shares of preferred stock (par $100).
To redeem 50,000 shares of $4.50 dividend
preferred stock, 60,000 shares of $4.40 dividend preferred
stock, 1949 series, and 50,000 shares of $4.44 dividend
gage
Montreal,
Las
share.
York, Inc.
filed $50,000,000 of first and refunding mort¬
bonds, series K, due May 1; 1984. Proceeds—To be
applied towards cost of redeeming $27,982,000 New York
Steam Corp. first mortgage bonds and $25,000,000 West¬
April 7
—
expansion, diamond drilling, working capital
and general corporate purposes.
mining activities. Office
235
Atlas Bldg., Salt Lake City, Utah.
Underwriter—Rocky
Mountain Securities, 508 Atlas Bldg., Salt Lake
City,
Consol. Edison Co. of New
-
ceeds—For
Underwriter—None.
(letter of notification) 3,000,000 shares of
stock
mon
Oil
River
King Copper Mining Corp. (7/29)
(filed under1 Regulation "D") 295,000 shares of
capital stock (par $1). Price—50 cents per share.
Pro¬
June 2
by
general corporate purposes.
Green
•
(par $5)
share for each four shares held.
amendment.
Proceeds—For
one new
supplied
stock
common
35
page
36
and Financial Chronicle...
The Commercial
22nd
^Continued from page 35
Utah
Pubco
notification) 4,999,000 shares of com¬
three cents). Price—Six cents per share.
(letter of
stock (par
mon
June
to
Office—343 South State
St
Salt Lake City, Utah.- Underwriters—J. A. Hogle &
Co., Harrison S. Brothers & Co., P. G. Christopulos &
Co' W. D. Nebeker & Co., Thornton D. Morris & Co.,
and James E. Reed Co., all of Salt Lake City, Utah.
• Mountain States telephone & Telegraph Co.
Proceeds—For mining expenses.
"'IT
March
10
stock
Aug. 1,
Underwriter—J. P. Marto & Co.,
,
1
'
,
,
,
.
it Mew Jersey Power & Light Co.
July 20 filed $8,700,000 of first mortgage bonds due Aug.
1, 1984. Proceeds—$1,585,000 to repay bank loans, $5,500,000 to redeem 4V4% first mortgage bonds now out-'
standing, and $1,615,000 for construction program. Un¬
derwriter
by competitive bidding.
To be determined
—
Halsey, Stuart & Co.;
Probable bidders:
Kuhn, Loeb &
(jointly); Equitable Securities
Co. and Lehman Brothers
Union Securities Corp. and White, Weld &
(jointly); Merrill Lynch, Pierce, Fenner & Beane.
Corp.;
^
Corp., Carrizozo, N. M.
Mexico Copper
New
Co.
&
mon
on
Manufacturing Co.
(par $10), being offered for subscription by com¬
stockholders of record July 1, 1954; rights to expire
& Trust
Aug. 2.
"7
■
Co., Chicago, 111., up to 11 a.m. (CDT) on
'7:7
:
■
it Oil Productions, Inc., Charlottesville, Va.
July 7 (letter of notification) - .$150,000 of registered
notes (due $30,000 each Aug. 1, 1959 through 1963) and
/
Union Compress &
both of
•
"
Pacific Power & Light Co.
Ave., Omaha, Neb. Underwriter—Stew¬
art, Smith & Co., Inc., New York, N. Y. r
it United Public Markets, Inc. (7/26)
(letter of notification) $300,000 of 6% sinking
fund subordinated debentures, series B, due July 1, 1969.
w
July 9
Co., Norridgewock, Me.
poses.
writer—G. H. Walker & Co., Providence, R. I.
it United States Air Conditioning Corp.
19 filed 500,000 shares of common stock (par 10
cents). Price—To be supplied by amendment. Proceeds
For working capital.
Underwriters — Mortimer B.
July
'
Development Corp.,
-
who
to
resort-type, hotel. Under¬
•
*
'
common and/or preferred stock
held.
($100 per share). Proceeds—To reduce
ings.. Underwriter—None.
Stardust, Inc., Reno, Nev.
July 9 filed 621,882 shares of preferred stock (par $10)
*.£■:
821,882 shares'of common stock (par one cent) to be
offered in units of one share of each class of stock. Price
—$10.01
per
unit. Proceeds—For purchase of land and to
equip a luxury hotel. Underwriter—None.
'
construct and
.
25 filed
June
Price—At
time
on
fered
100,000 shares of
Series
17, and $500,000
•7/7-•
Series 5.
■
ceeds
market.
Shares
to
be
stock
offered
from
specific
the-floor
persons,
common
par
stock
shares and
ceeds—To
stock, for
one
to
(par $4).
to
Exchange, and may be of¬
firms or corporations in off-
and
300,000
be offered
common
shares
of
10-cent
in units of two
burgh, Pa.
are
stock
$1).
and
Underwriter—A. J. Shapiro,
Seattle, Wash.
Utah National Uranium
Mining Corp.
(letter of notification) 1,199,600 shares of com¬
mon
stock (par one cent). Price—25 cents per share.
Proceeds
For mining expenses. Office — 402 Boston
May 27
—
stockholders. Underwriters—John R. Lewis, Inc., Seattle,
'.
Wash.;
ment also covers
may
are
•
.
Nov.
(par 50 cents) to be offered in units of one $50 debenPrice—To be supplied by
imendment.
.
Co:, Boston, Mass.
*
-
7
■
•
7
West Coast
Pipe Line Co^ Dallas, Tex.
20, 1952 filed 1,125.000 shares of common stock (par
50 cents).
Price—To be supplied by amendment. Pro¬
Nov.
to build /
Underwriters—White, Weld & Co. and Union *
Securities Corp,, both of New York.
Offering—Post- 7
ceeds—Together with other funds, to be used
oipeline.
poned
*
;
private sales 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.
Offering—Postponed indefinitely.
,*
>
indefinitely.
Western
Office—34th Street and
*
Proceeds—From sale of units and 1,125,000
additional shares of common stock and
.
7 it Titan Manganese Mining Corp.
7-w't
Pipe Line Co., Dallas, Tex.
1952 filed $29,000,000 12-year 6% debenture!'
15, 1964, and 580,000 shares of common stock
ture and one share of stock.v
.
•
20,
due Dec.
by amendment.
forts" basis.
be offered from time to time (but do definite plans
given).
:
7
7
'
West Coast
„
.
and Coburn & Middlebrook, Inc. and Glidden,
Co., both of New York. The registration state¬
2,413,200 shares of common stock which
Morris &
Plains Oil & Gas Co.
May 24 filed 100,000 shares of common stock
Price—$4.75 per share. Proceeds—To. redeem
July 12 (letter of notification) 299,000 shares of com¬
Price—Of debentures, at parmon stock (par one cent).' Price—$1 per share. Proceeds
share. Proceeds—To construct '7—For mining expenses. Underwriter—A. L. Albee &
of stock, $4.75 per
plant and for working capital.
Under¬
facilities.
stock
Securities Bldg.,
,
,
(par
for parking
versity Ave., Provo, Utah.
for account of certain selling
be supplied
•
common
property
(letter of notification) 1,200,000 shares of com- ~
(par one cent).
Price—25 cents per share.
Proceeds—For mining operations.: Office—47 N. Uni¬
stockholders. Price—To
Proceeds—For exploration
and drilling, and payment of bank loans and advances.
Underwriter—Vickers & Co., New York, on a "best ef¬
line extensions and electric transform¬
equipment and machinery, exploration and working
capital. Underwriter—Barrett Herrick & Co., Inc., New
Pinellas Industries, Inc. (7/27)
*
June 15 (letter of notification) $250,000 of 8% convert¬
ible debentures due 1964, and 9,975 shares of class A
lease
Utah Moab Uranium Corp., Provo, Utah
mon
/
21 filed 455,000 shares of common stock (par 10
-cents), of which, 385,000 shares are to be. offered for;
-subscription by common stockholders at the rate of one
new share for each 4Y2
shares held; and 70,000 shares
share.
•
or
June 28
-June
par
preference
ers,
York.
v
Sulphur Co., Houston, Texas
Texas International
Price—$3 per unit. Pro¬
retire 40,526 shares of outstanding preferred
power
chase
writer—None.
Taylorcraft, Inc., Conway, Pa.
April 30 (letter of notification) 150,000 shares of 6%
cumulative convertible preferred stock, of which 100,000 shares will be offered to public and 50,000 shares to
creditors. Price—At par ($2 per share).-Proceeds—For
working capital.
Underwriter—Graham & Co., Pitts¬
Mining Corp., Santa Fe, N. Mex. «.
600,000 shares of cumulative sipking fund
stock
working
it Upper Third Street Development Corp.
it Supermarket Merchandisers of America, Inc.
July 15 (letter of notification) 199,700 shares of common
stock (par 10 cents). Price—$1.50 per share. Proceeds—For working capital and business expansion.
Office—
3219 "B" St., Philadelphia, Pa. Underwriter—Milton D.
Blauner & Co., Inc., New York.
/;;
/
/
-'0.'
;June 9 filed
^preference
\ 1'
houses.
Underwriter—None.
Petaca
property additions and
For
Building, Salt Lake Cityr Utah. - Underwriters—Carroll,
Philadelphia, Pa.
.
Kirchner & Jaquith, Ine., Denver, Coloi, and Cromer
April 15 filed a maximum of 139,662 shares of Common
1
stock (no par) to be offered for possible public sale /Brokerage Co., Salt Lake City, Utah.
Voss Oil Co., Newcastle, Wyo. /?t,V.'/7/•
during the period July 1, 1954 to June 30, 1955. Price—
At market. Proceeds—To selling stockholders. Under-1
July 1 filed 336,800 shares of common stock (par $1).
Price—To be related to market. Proceeds—To 40 selling '
writer—None. The shares will be sold through brokerage
Proceeds—To J. Paul Getty, President.
sales.
Underwriter—None.
Plainfield, N. J.
—
Sun Oil Co.,
the New York Stock
to
(7/29)
July 12 (letter of notification) 8,000 shares of common
stock. Price—At par ($25 per share). Proceeds—To pur¬
Sulphur Exploration Co.* Houston, Texas (7/26)
July 6 (letter of notification) 300,000 shares of common
stock (par one cent).
Price—$1 per share. Proceeds—
For mining expenses.
Office—1416 Melrose Bldg., Hous¬
ton, Tex.
Underwriter—L. D. Sherman & Co., New
York, N. Y.
borrow¬
time
Corp.
Co., New York.
of Investment Certificates,
7.7/v-7:77":.:-77-■;7/•7;/,:,//
.
common
Steel
Price—100% of principal amount. Pro¬
replacements and
capital. Underwriter—Morgan Stanley &
pension trust.
for
it State Bond & Mortgage Co., New Ulm, Minn.
July 19 filed $5,000,000 of Accumulative Certificates,
Corp.'
Pacific Western Oil
States
$225,000,000 are to be offered to the public and $75,000,000 are to be sold on or before Aug. 4, 1954 to United
States Steel and Carnegie Pension Fund, trustee of a
and
shares
Price—At
bank
Uni+ed
12 filed $300,000,000 serial debentures maturing
from Aug. 1, 1955 to Aug. 1, 1964, inclusive, of which
v
.
of
agreed to purchase
July
Telegraph Co.
May 7 filed 1,004,603 shares of common stock to be of¬
fered for subscription by common and preferred stock¬
seven
Inc. and George F. Breen of New York,
100,000 shares, with an option
buy the other 400,000 shares.
Burnside & Co.,
constructing and operating a
(8/9)
share for each
par.
Proceeds—For general corporate pur¬
Office—60 Dexter St., Pawtucket, R. I. Under¬
Price—At
(letter of notification) 2,200 shares of capital
Price—At par ($5 per share). Proceeds—For ex¬
July 2- (letter of notification) 5,000 shares of common
stock.
Price—At par ($10 per share).
Proceeds — For
Pacific Telephone &
one
Neb.
Proceeds—Td increase surplus. Office—
($10 per share).
pansion arid new equipment. Underwriters—E; H. Stan¬
ley & Co., Waterville, Me.; and Clifford J. Murphy Co.,
July 2 filed $30,000,000 fir^t mortgage bonds due Aug. 1,
1984. Proceeds—$24,934,542 to be used to refund all out¬
standing bonds of Mountain States Power Co. (merged
with Pacific Power & Light Co.), and for new construc¬
tion.
Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Blyth & Co., Inc. and White, Weld & Co. (jointly); Kid¬
der, Peabody & Co.; Union Securities Corp.; Lehman
Brothers, Bear, Stearns & Co. and Salomon Bros. &
Hutzler (jointly).
Bids—Expected to be received up to
9 a.m. (PDT) on Aug. 9.
7
/
holders in the ratio of
Insurance Co., Omaha,
2565 St. Mary's
Pacific Coast Securities
Park Ave.,
per
Benefit Fire
(letter of notification) 25,000 shares of common
stock .to be offered first to stockholders. Price—At par
11
writer—None.
/
June 14
it Savage Industries, Inc., Phoenix, Ariz.
(letter of notification) 4,000 shares of common
(par $1).: Price—To be supplied by amendment.
Proceeds—For working capital. Office—306 Heard Bldg.,
it Southwestern Hotel
Las Vegas, Nev.
shares of common
Memphis, Tenn.
United
stock
Portland, Me.
Warehouse Co.
(letter of notification) 30,000
(par $1). Price—$10 per share.- Proceeds—To 35
selling stockholders. Office — Memphis, Tenn. Under¬
writers—Leftwich & Ross and Mid-South Securities Co.,
notification) 2,500,000 shares of capital
stock (par five cents). Price—Six cents per share. Pro¬
ceeds—For mining expenses.
Office — Walker Bank
Bldg., Salt Lake City, Utah. Underwriter—Whitney In¬
vestment Co., Salt Lake City, Utah.
Somerset Telephone
^v
Ultrasonic Corp.,
-
Royal Uranium Corp., Salt Lake City, Utah
**
.
Cambridge, Mass.
1
June 28 filed 200,000 shares of common stock (par $5).
Price—$12.75 per share. Proceeds—For working capital.
Underwriter—A. C. Allyn & Coif Inc., Chicago, 111. Of¬
fering—Expected today (July 22).
,
// 7/7 77
June 14 (letter of
—
Underwriters—Arthurs, Lestrange; &
capital.
McKelvy & Co., both of Pittsburgh, Pa.
stock
Underwriter—None.
-
Co. and
June 25
Phoenix, Ariz. Underwriter
Co., San Francisco, Calif.
due
(par
$1).
Price—Of debentures, par ($30 each) and accrued
dividends; and of stock, $3 per share.
Proceeds—For
working
both of New York.
unit. Proceeds—For investment in pro¬
ducing oil property and for organization and promotion
expenses. Office—317 Fast High St., Charlottesville, Va.
Price—$250
•
sinking fund debentures dated July 1, 1954 and
June 30, 1969, and 10,000 shares of common stock
^
,
it Stavid Engineering, Inc. (N.J.)
July 19 (letter of notification) 4,324 shares of common
stock (no par.) and 202 shares of preferred stock (par
$100). Price—For common, $25 per share; for preferred,
at par.
Proceeds — For working capital. Office — 312
150,800 shares of capital stock (par 10 cents) to be of¬
in units of $125 of notes and 125 shares of stock.
fered
general
Proceeds—For development costs and
offering.
it Rockhill Productions, Inc.
15 (letter of notification) warrants to purchase
23,029 shares of common stock. Price — $2 per share.
Proceeds—To two selling stockholders. UnderwritersMortimer B. Burnside & Co., Inc. and Batkin & Co.,
derwriter—N one.
Bank
Montreal, Canada.
—
-
July
2, 1954. Price—$12 per share.
Proceeds—To
loans. Office—501 S. Market St., Galion, O. Un¬
/fc Northern Illinois Gas Co. (8/2)
July 16 filed a maximum of 381,542 shares of common
stock (par $5), the minimum number of shares being
63,489. Proceeds—To certain stockholders of Common¬
wealth Edison Co., in lieu of fractional shares issuable
in payment of stock dividend.
Underwriter—To be de¬
termined by competitive bidding. The First Boston Corp.
and Glore, Forga'n & Co., recently underwrote an issue
of 400,000 shares of this company's common stock, Bids
—To be received by the Continental Illinois National
Petro-Chemical Corp.,
Trican
Aug.
repay
Underwriter—Charles Wein-
New York.
April 30 filed 500,000 shares of common stock (par $1).
Price
To be related to the market price at time of
•
stock.
shares of common
(letter of notification) 20,322
* > i
Co., Inc., New York.
June
June 16
stock
stein & Co.,
it Riverside Plastics Corp., Hicksville, N. Y.
July 16 (letter of notification) 50,000 shares of common
stock (par 10 cents).
Price—$5 per share. Proceeds—
For machinery and equipment and working capital. Un¬
derwriter—G. H. Walker & Co., Providence, R. h
Underwriter—Mitchell Securities, Inc., Baltimore,
Md.;
North Electric
—
Bldg., Salt Lake City, Utah.
July 8
June 14 (letter of notification) 198,000 shares of capital
slock (par 25 cents). Price—50 cents per share. Proceeds
—For acquisition of power plant, improvement of mill,
development of properties and general corporate pur¬
poses.
Development, Inc., Albuquerque, N. M.
908,967 shares of common stock (par $1)
$1 per share upon exercise of
issued and sold at
corporate purposes. Underwriter — To be named by
Republic Uranium Corp., Moab, Utah (7/26)
amendment.
■
7;;7;
June 28 (letter of notification) 1,190,000 shares of com¬
mon stock
(par five cents).
Price—25 cents per share. 777 Trip-Charge, Inc., Pittsburgh, Pa.
7
7;
Proceeds—For mining
expenses.
Underwriter—Teden
July 8 (letter of notification) $150,000 of 6% convertible
Aug. 3.
working capital, etc.
Boston, Mass.
*/
July 17
filed
16
be
fective July 6.
Natick Industries, Inc.,
mon
it Trans-World Uranium Corp. (8/2)
(letter of notification) 1,175,000 shares of com¬
mon stock
(par one cent). Price — 25 cents per share.
Proceeds
For mining expenses. Office — 402 Boston
—
subscription warrants (dates advanced to
period Juiy 15 through Oct. 15). Proceeds—For general
corporate purposes. Underwriter—None. Statement ef¬
Ameri¬
can Telephone & Telegraph Co. Underwriters—To be de¬
termined
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Dean Witter & Co. and Drexel
& Co. (jointly); Morgan Stanley & Co. Bids—Expected
Natick, Mass.
(letter of nocilication) 58,800 shares of com¬
(par $1). Price—$5 per share. Proceeds—For
North, Petersburg, Fla.
Underwriter
Libaire, Stout & Co., New York.
outstanding
(8/3)
July 9 filed $20,000,000 of 35-year debentures due
1989. Proceeds—To repay advances from parent
to be received on
Avenue,
Eisele & King,
Uranium Corp., Salt Lake City,
Mount Peale
jl
June 29
'
Thursday, July 22, 1954
(340)
36
"standing
-
-
preferred
shares
($125,000),
(par $1)»
1,250 out^
-
to; repay bank
loan, etc. ($2,500); for purchase or acquisition of addi- <
tional mineral " interests, leases and royalties • in the
/
tive
United States and Canada and for other corporate pur-i
Office—Glendive, Mont.
poses.
& Co., St.
Rice
I
Number 5344... The Commercial and Financial Chronicle
Volume 180
(341)
bidding.
Probable
bidders:
Halsey, Stuart
&
Co.
Paul, Minn.
June 21 it
Beverage Corp.
was reported 160,000 shares of common stock
publicly offered—100,000 shares for account of
company and 60,000 shares for selling stockholders. Price
—In neighborhood of $10 per share. Proceeds—For
gen¬
eral corporate purposes. Underwriter—Ira Haupt &
Co.,
-
to be
New
York.
Proceeds
Ave., Price, Utah. Underwriter
inc.y 'Salt Lake City, Utah. - ?*-■'->
,
{
.
Havenor-Cayias,
»"?'
—
-Williston Basin Oil Ventures, Inc.' :
May .20 "(letter of notificatiop)/2,500,000 shares of com¬
mon stock (par one cent).' Price—Two cents per share.
Proceeds —For Exploration costs. Office—420 Fidelity
Bank Bldg., Oklahoma City, Okla. Underwriter—Tellier
& Co., Jersey Cjty, N. J.
;
: >
\
^ Yankee Uranium Co., Salt Lake City, Utah '.1
(lette/of notification) 12,400,000 shares of Com¬
mon stock (riarione cent).
Price—Two cents per shares
July 14
—JFor mining expenses. Office — 721 Judge
Bldg., Salt I\ake City, Utah. Underwriter — James D.
Reed Co., Sart Lake City, Utah.
v~
;
i
.
-
it Zenith Uranium & Mining Corp.
;
-■
July 12 (letter of notification) 300,000 shares of
/
>
common
(par one cent). Price—$1 per share. Proceeds—
mining operations. Underwriter—Sheehan & Co.,
Boston, Mass.
,
-
.
■
Prospective Offerings
the authorized
shares to
common
proposal to
a
increase
stock from
enable the company
4,000,000 to 5,000,000
to sell additional shares
Offering will
necessary.
construction
probably
be
made
to
new
construction.
Underwriters —'For
termined
by
competitive
bidding.
Probable
bidders:
Halsey, Stuart & Co. Inc. and The First Boston Corp.
(jointly); Morgan Stanley & Co.
Arkansas
it
Louisiana
Co.
Gas
reported Cities Service Co. may sell its
holdings of 1,900,000 shares of this company's stock.
If
Bold at competitive bidding, bidders may include Smith,
was
Barney & Co. and Blyth & Co., Inc. (jointly).
ceeds—To
redeem
construction
termined
by
and Drexel & Co.
General Beverage Canning Co. of Tennessee
June
15
300,000
it
to
share.
per
Underwriter
Tenn.
—
Elder
&
Co.,
Chattanooga,
"•
..
,
.
"
'
Underwriters—To
is planning to issue
and sell $2,000,000 of 15-year first mortgage convertible
bonds.
Underwriter—Equitable Securities Corp., Nash¬
Pulp & Paper Co.
be
de¬
28
it
reported
was
be considering
Underwriter—Lee Higginson Corp.,
financing.
new
New York.
•
Illinois
company
.....
Central
...
RR.
■,
...«
,
.
,
Co.
Inc.
•
&
and
—
For
investment.
Under¬
Paine,
Webber, Jackson &
(latter handling books). Sponsors—Vance, Sand¬
Co., Boston, Mass. Registration—Expected July 23.
Central
Bids
Co.
Bids—Expected about
will
of
be
Georgia Ry. (8/3)
by the company at the office of
received
J. P. Morgan & Co. Incorporated, 23 Wall St., New
York,
up to noon (EST) on Aug. 3 for the purchase from it
of $2,655,000 equipment trust certificates, series Z, to
be dated Aug. 1, 1954 and to mature annually to and
including Aug. 1, 1969. Probable bidders: Halsey, Stuart
& Co. Inc.; Salomon Bros. & Hutzler; Kidder, Peabody
& Co.; Blair, Rollins & Co. Inc.
Central
/Dec. 9 it
Illinois Electric & Gas Co.
was
announced company intends to
sell around the middle of 1954
an
offer and
issue of $4,00p,000 first
mortgage bonds. Proceeds—To repay bank loans and for
construction.
Underwriters—To be determined by
new
competitive bidding.
Probable bidders: Halsey, Stuart
Stone & Webster Securities Corp.; Kidder,
Peabody & Co. and White, Weld & Co. (jointly).
Co. Inc.;
City Title Insurance Co., N. Y. C.
May 20, it was announced that company is planning to
issue and sell not to exceed $1,000,000 of new preferred
stock.
Proceeds—For working capital.
Underwriter—
Chilson, Newberry & Co., Inc., Kingston, N. Y.
Colorado-Western
March 5 it
Pipeline, Co.
announced company has applied to Colo¬
was
rado P. U. Commission for
authority to build a $21,500,gas pipe line, in Colorado, to be financed
through sale of about 70% of bonds and 30% of equity
capital.
John R. Fell, a partner of Lehman Brothers, is
000
a
natural
Vice-President.
(7/29)
July 7 it
sell
later
tures.
was
this
plans to issue and
$40,000,000 additional senior deben¬
announced company
year
Proceeds—To repay bank loans
struction.
and for new con¬
Underwriter—To be determined
$12,000,000 of first mortgage bonds
bank loans and for new construc¬
—
&C°-IncJune
.yv
•
25,
L. A. Brown, President, announced
company plans to offer additional
common
stockholders this Fall
common
that
by competi¬
the
stock
to
l-for-10 basis (with,
Proceeds—For construc¬
on
a
—
New
,
.
England Electric System (9/28)
April 29 it
on
basis.
plans
company
stockholders next Fall
l-for-10
a
9,108,824
announced
was
common
There
to
additional
are
shares.- Proceeds
offer
to
common
outstanding,
was announced company plans to issue and sell
$25,000,000 of Consolidated mortgage bonds, series G, due
Aug, 1, 1980. Proceeds—To redeem a like amount of
prograpi of subsidiaries. Underwriters
mined by competitive bidding.
series D Consolidated 4V2s due 1982 now held
&
of insurance companies,
by
a group
Underwriter—To be determined
Indiana & Michigan Electric Co.
first
cumulative
ders:
(1)
by competitive bidding. Probable bid¬
Stuart & Co. Inc.; Union
For bonds—Halsey,
Securities Corp., Goldman,
Sachs & Co. and White, Weld
&
Co.
(jointly);. The First Boston Corp.; Harriman
Ripley & Co. Inc.; Kuhn, Loeb & Co.; (2) for preferred—
The First Boston Corp.; Smith, Barney & Co.; Lehman
Brothers;
Union
Securities
Corp.
Registration —
Planned
for
Sept. 3.
received
up
to
Kansas
March 8 it
11
Bids—Tetnatively expected to be
a.m.
(EDT) on Oct. 5
City Power & Light Co.
was
announced that company may sell in th«
latter part
of 1954 $16,000,000 first mortgage bonds. Pro¬
ceeds
To repay bank loans and for new construction.
Underwriters—To be determined by competitive bidding
Probable bidders: Halsey, Stuart & Co. Inc.; Lehman
Brothers and Bear, Stearns & Co. (jointly); Kuhn, Loeb
& Co., Salomon Bros. & Hutzler and Union Securitiei
Corp. (jointly); Glore. Forgan & Co.; Blyth & Co., Inc
and The First Boston Corp. (jointly); White, Weld & Co.
and Shields & Co. (jointly); Harriman Ripley &
Co., Inc.
Equitable Securities Corp.
Meeting—Stockholders on
April 27 aprpoved new financing.
—
Light Co.
later this year.
Proceeds—To repay bank loans and for
construction purposes. Underwriter—Previous bond sale
was done privately through The First Boston
Corp.
Kentucky Utilities Co.
June 21 it
was
reported company plans to issue and sell
$15,000,000 first mortgage bonds, series F. Underwriter
—To be determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; Harriman Ripley &
Inc.; The First Boston Corp. and Lehman Brothers
(jointly); Union Securities Corp. and Merrill Lynch,
Pierce, Fenner & Beane (jointly); Blyth & Co., Inc.;
Kidder, Peabody & Co. and White, Weld & Co. (jointly);
Equitable Securities Corp. Bids — Expected to be re¬
ceived in October
or
November.
For
—
—
construction:
To
be deter¬
Thalmann & Co. and
Wertheim & Co.
(jointly); Merrill
Lynch, Pierce, Fenner & Beane, Kidder,
Peabody & Co.
and
White, Weld & Co. (jointly).
expected to be received
New
Feb.
8
Orleans
it
Bids—Tentatively
on
Public
Sept. 28.
Service
Inc.
,
reported company plans to offer for sale,
$6,000,000 of first mortgage bonds due 1984 late
thfr
year.
Underwriters—To be determined
by competitive
bidding. Probable bidders: Halsey, Stuart & Co.
was
Inc.r
Equitable Securities Corp.; Union Securities
Corp, and.
(jointly); Lehman Brothers;
Kidder, Peabody & Co. and Stone & Webster Securities.
Corp. (jointly); The First Boston Corp.; White. Weld &
Harriman Ripley & Co. Inc.
Co.
•
....
New
York, New Haven & Hartford
RR.
(7/22)
was reported company will offer and sell
$6,~
180,000 equipment trust certificates.
Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler;
Kidder, Peabody & Co.; Blair, Rollins & Co. Inc. Bids
—Expected to be received up to noon (EDT) on July 22.
July 13 it
Niagara Mohawk Power Corp. (8/24)
July 12, Earle J. Machold, President, announced that the
company plans to issue and sell $25,000,000 of general
mortgage bonds due Aug. 1, 1984. Proceeds—To repay
.
bank
loans
and
for
new
construction.
Underwriter—^To
be determined
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Bostoh Corp.; Kuhn,
Loeb & Co. and Union Securities Corp.
(jointly); Morgan
Stanley & Co. Bids—To be received on Aug. 24.
,
Kansas Power &
May 4, D. E. Ackers, President, announced that the com¬
pany plans to sell approximately $10,000,000, of bonds
common
Probable bidders: Blyth
Co., Inc., Lehman. Brothers and Bear, Stearns & Co.
(jointly); Carl M. Loeb, Rhoades & Co., Ladenburg,
(10/5)
announced company plans to sell $16,500,-
Co.
Columbia Gas System, Inc.i
March 5 it
*
issue
To be determined by
competi¬
bidding. • Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc., White, Weld & Co/and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Blair, Rollins
stock
—$10
Proceeds
'
plans- to
company
tive
its
,
mortgage bonds due 1984 and 40,000 shares of
preferred stock (par $100).
Underwriter—
&
repay
Underwriter
tion.
may
To be determined
share.
that
tion program.
Hudson
formed in Canada to initially offer 2,500,000 to 3,000,000
shares of capital stock to non-residents of Canada. Price
per
reported
oversubscription privilege).
Underwriter
None/ Registration—Ex¬
pected in October, 1954.
:
>.•;.; »'
'
1
ville, Tenn.
000
writers—Bache
was
an
was
Central" Republic
Corp. (jointly).
it
8
and sell in September
National Fuel Gas Co.
Green River Steel Corp.
June 9 it was reported company
July 8 it
Union Securities
Montana-Dakota Utilities Co.
July
Proceeds—To
Telephone Co. of Upstate New York
July 2 it was reported company plans to issue and sell
50,000 shares of 5% cumulative preferred stock (par
$25). Underwriters—Paine, Webber, Jackson & Curtis
and Stone & Webster Securities Corp., both of New York.
^Canada General Fund (1954) Limited (8/12-16)
July 21 it was announced this closed-end Fund is being
and
(jointly); Kuhn, Loeb & Co. and Salo¬
Bros. & Hutzler (jointly);
mon
reported company plans to sell around
400,000 shares of common stock.
Price—$1
was
Aug. 24.
Corp.
„
.
by competitive bidding. Probable bidders? Halsey, Stuart
& Co. Inc.; Kuhn, Loeb & Co., Harriman Ripley & Co.
Inc. and Union Securities Corp. (jointly). Bids—To be
received up to noon (EDT) on July 29.
ers
Underwriter—To be de^
•
-
Pro-^
of outstanding bonds and
$4,900,000
program.
issue
competitive
Securities
Curtis
.
finance construction program.
termined by competitive
.
(jointly); Merrill Lynch, Pierce, Fenner & Beane and
i
Long Island Lighting Co.
April 20 it was announced company plans later in 1954
to
issue $20,000,000 mortgage bonds.
Proceeds —To
'
some
bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Leh¬
man
Brothers, Stone & Webster Securities Corp.- and
White, Weld & Co. (jointly); Blyth & Co., Inc., Equit¬
able
offering, in April,
*
June
Arkansas Power & Light Co. (8/24)
Feb. 8 it was reported company plans to sell an
of about $7,500,000 first mortgage bonds due 1984,
for
stock
-
General
Underwriter—None.
programs.
American Telephone & Telegraph Co.
June 30 it was reported the company is planning a huge
issue of straight debentures.
Underwriter—To be de¬
22
common
underwritten by Blyth & Co., Inc. and J. J. B.
was
bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.;-W. C. Langley & Co.; Blyth
common stock
(first to common stockholders); Kidder, ' -& Co.,Inc;and The First Boston Corp.
(jointly); Smith.
Peabody & Co. and Merrill Lynch,, Pierce, -Fenner &
Barney & Co.;
•'
»v: '■
' v' —
V :* ~
Beane (jointly). - For bonds, to be determip^
:b^com^r
Louisvilte; & HashviHe RR. (9/30)
~ J
? •
petitive bidding. Probable bidders: Halsey, Stuart & Car
*; July. 7ut. was/reported that the company, may issue and
Inc.; The First Boston Corp.; Lehman Brothers; Kidder,
sell' late ;irrJ.1954 $30,350,000 of new first and
refunding
Peabody & Co. and Merrill Lynch, Pierce, Fenner St
mortgage bonds due 2003: ~ Proceeds—To retire $24„i
Beane (jointly). Common stock was increased by stock¬
610,000 Atlanta, Knoxville, & Cincinnati Divisiony4%
holders on March 25 from 2,500,000 shares to 5,000,000
bonds due
May_ 1, 1955, and for general corporate purshares, and the preferred stock from 250,000 shares to
v poses. Underwriters—May be determined by competitive
500,000 shares.
.f"
'•••">:; i:
,
bidding. Probable bidders: Halsey, Stuart & Co. fijcf.;
Food Fair Stores, Inc.
Morgan Stanley & Co.; White, Weld & Co. and Salomon
June 18 it wasvannounced stockholders will vote
Aug. ••'Bros. & Hutzler (jointly).- Bids—Expected Sept. 30:
•
24 on increasing the authorized indebtedness from
$25,McBride Oil & Gas Corp.
!ik
000,000 to $35,000,000. In February; 1953, a $12,500,000
June 23,it was announced 1,500,000 shares of*capital
4% debenture issue was sold through Eastman, Dillon
stock will be publicly offered this month.
'Price—$1 per
& Co., New York. Proceeds — To refinance
$12,500,000
share. Proceeds—To finance
improvements. Underwriter
outstanding 4% sinking fund debentures due Feb. 1,
—Kramer, Makris & Co., Houston, Tex.1
;
r*
1973, and for expansion.
'
;
Metropolitan Edison Co. "
1 :
.y
General Beverage Canning Co. of Florida,
Dec. 16 it was reported
'
company may sell in 1954 about
June T5 it was reported company plans to issue and
$3,500,000 first mortgage bonds due 1984. Proceeds—iTar
sell 300,000 shares of common stock. Price—$1 per share.
construction program. Underwriters—To be
determinate
Underwriters
Roman and Johnson, Fort
by competitive bidding. Probable bidders: Halsey, Stuart
Lauderdale,
& Co. Inc.; White, Weld &
Fla., and possibly Aetna Securities Corp., New York. '
Co.; Kidder, Peabody & Co.
For
—
present stockholders. Proceeds—To subsidiaries for their
Feb.
common
—v
American Natural Gas Co.
April 28 stockholders approved
when
additional
some
,
-
stock
For
stockholders
common
,
Proceeds
;
1953,
-
ceedsi—Fbr development expenses. Office—17 South Car-
-
Hilliard & Sons and associates.
Florida Power
bon
*
-r
„
reported company plans to issue and sell
Underwriters—Previous
Corp.
March 27, it was announced that the company plans new
financing late this summer which would require issu¬
ance of common stock and probably
$10,'000,000 of bonds.
Whitelock Uranium Co., Price, Utah
June 24 (letter of notification) 4,000,000 shares of common^stock. Priced—At par (three cents per share). Pro7
was
stock, either on a l-for-9 or an a l-for-10 basis. At
April 30, 1954, there were outstanding 2,286,784 shares.
May 5 it
are
its
to
Cott
£ White Eagle Uranium Co.
July 12 (letter of notification) 3,000,000 shares of com¬
mon stock
(par five cents). Price—10 cents per share.
Proceeds—For mining expenses. Office—351 S. State St.,
Salt Lake City, Utah. Underwriter—Arlin Davidson, 39
Exchange Place, Salt Lake City, Utah.
?
Kentucky Utilities Co.
Inc.; Morgan Stanley & Co.
Underwriter—Irving J.
37
Northern
June
14
it
refunding
Pacific
was
Ry.
reported that company may consider a
in September. Underwriter—To be
program
determined
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; Blyth
& Co., Inc.
,
Northern
July 2 it
ance
gage
States
was
*
Power Co.
(Minn.)
announced company is planning the issu¬
and sale of
approximately $20,000,000 of first mort¬
bonds due 1984 in October of 1954. Underwriters—
To be determined by
ders:
Riter
competitive biddings. Probable bid¬
Halsey, Stuart & Co. Inc.; Lehman Brothers and
& Co.
(jointly); Smith, Barney & Co.; Glore,
Forgan & Co.; Merrill Lynch, Pierce, Fenner & Beane,
Kidder, Peabody & Co. and White, Weld & Co. (jointly);
Equitable Securities Corp.
and
Union
Securities Corp.
Continued
on
page
38
1954
The Commercial and■ Financial Chronicle... Thursday, July 22,
38
(342)
(jointly); Kuhn, Loeb & Co.,
Wertbeim & Co. (jointly).
,
*.
'* *
A. C. AUyn&Co. Inc. and
.
\
^ '
V
'
States Power Co.
Northern
(Minn.)
writer
•
Oklahoma
Gas & Electric
Coi
Light & Power Co.
Semrad, President, announced that the
company may raise new money this year through the
sale of $1,000,000 first mortgage bonds or frorti tempo¬
rary bank loans for its 1954 construction program, which,
it is estimated, will cost $1,661,000. Underwriter*—May
Lehman Bros,
(9/14)
by competitive
Corg.t Salt. Lake City
that this company presently
Pan-American Uranium
June 30 it was announced
be:handle#"by Kramer, Makyis" &; Co,*
Tex.
V.:'y
^v^Pemihina Pipe Line Co. (Canada)
.'
'- %
^April I4t1f was announced vcofftp£ity has been granted
."the fight to obtain a'permit t<5 buifd a 72-mile pipe
line to transport crtfde oil from the Pembina Oil Field
in Alberta »to Edmonton*
Financing will be handled
jointly by Mannix Ltd^ef- Calgary, Dome Exploration
(Westerri) Ltd, ofr Torontor and Carl M. Loeb, Rhoades
& Co..of New York'.
■
-
A- United Funds Canada, LtcL^ Toronto,
v
Canada (8/9),>-,; r-. ^
Vy~: '
'
'' - s
July 20 it was reported this dosed-end fund has filed
with .the SEC a registration statement covering a- pro-
/
;
<
posedlpublic offering of 1,500,000 shares of common stock
(par $1). Price—Expected to be $12.50 per share, froceeds%-For investment. Underwriters—Glore, Forgan &
*,Col and^ Francis I. dupont & Co., both of New York.
Rational Bank 4f Phoenix
share.'
Progas of Catfiadaf, fnc*
July 13 it'was anflouneed company
annoi|tnce plans to
between 20,000. and 40,000 shares.
#
r
;
(8/25) :
Southern California Edison Co--
July 10 it was announced company plans to
issue* and
.
Burnham &
-
April 12 it was -reported company'plans to finance its
1954
construction program- through temporary bank
loans, with permanent financing delayed until later in
the »year. Previously, the company had planned to float
an issue of $15,009,606 /irst mortgage bdnds, due 1984,
early in 195#. Underwriters—To be determined by Com¬
petitive bidding, Probable bidders: Halsey, Stiiaft <x Co.
Inc., Kuhi^Lofib & Co;; The First Bostort Cbfp.V Hftrris,
Hall & Co. Ine.; Harriman Rj^ey dt CO., InbraPA-Unioh
Securities Corp., (jointly); Lehmn ^rbthersf Kkjder,
Peabody & Co.; Blyth & Coyiaku and Stttith* Sarrifey &
.
-
-
/Co,
(joj^tlyjf. ! ; be
:
"
Resources of Canada Investment
Fund, Ltd.
April 2T thE £EC authorized the company to register as
an investment concern and to make a public offering of
"t-securities hr the United States.
petitive" bidding.
June 8 it
vote
was
t';'
J
■
*
■
5
„
announced stockholders will on Aug.
(par
delphia, Pa.
May 17 it
was
Co. JncU-'
Trans-Canada Pipe Lines,
reported company may issue and sell this
additional bonds and preferred stock* Proceedl-^For new construction. Underwriters*—(1) For
bonds to be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. inc.; Kidder, Peayear some
be
and debentures and
(inclined to recognize
as
for big pension funds
concerned.
is
views
appeared to make current
yields a bit more attractive to
buyers who had been reluctant
recently! to
consider
available
Things
new
it
were
looking
issue market
was one
which
this
of those
found
toward
dicated
by
sponse
which
interest
in
impending issues tending
dampen, temporarily at least,
investor
interest
in
recent
emis¬
sions.
which
were
was
underwriters
a
and
situation
dealers
confident would clear itself
with the passing of time.
prevailing yields
the
attitude
Co.
of
in¬
was
encouraging
re¬
Consoli¬
greeted
dated Gas, Electric Light &
Power
$40,000,000
Baltimore's
of
Well
over
half
this
issue
was
after the
soon
set and it was
that
said
it¬
This
,
offering
between
vided
was
evenly
di¬
and
15-
10-year
year
maturities, and it developed
that
buyers
the
went
pell-mell
while
maturity
longer
that
were
only
an
order
or
two
pon
term
issue
moved
for
the
along
10-year issue, with a
cou¬
yield 2.86^%, while the
debentures,
priced
carrying
at
a
100%
15-year
3%
rate,
to
yield
bank¬
into
in the
goodly portion
reflection
issues /that
been
had
hanging fire.
It
was
issues
reportedf that
that have
Tennesese
and
This
the
up
^Washington Gas
Consumers Power
leaves
a
Co.
few other recent
offerings still to feel the effect of
sentifnent. Listed in
the change in
that
category
Eastern
are' -'Columbia Gas
debentures,
Pipe
Lind
Panhandle
Co.'s
bonds,
along with those-of-Central
mont Public
Power &
Ver¬
Service, Jersey Cen¬
tral P*»wer & Light
Light.
1922
in
was
handled by
*
,
•
!
Next Week "Big Steel"/
From
until next
now
interest
-
Thursday,
will
focus
pretty much on U. S. Steel Corp.'s
projected public offering of $225,000,000 of serial debentures. The
overall issue is for $300,000,000
but the balance i& slated to go to
the Carnegie
It's
a
long
Pension Fund.
,
time, the late.'20s,
since Big Steel has had any fixed-
among
ffeen cleaned
Gass Transmission;
Gulf Power Co.;
Light
plans permanent
*
investment
receptive attitude of
found
recent
of
company:
financing
tbUe Shelves
clearing away of
System's
of 2%%, was priced at 99 to
were
more
investors
are
interesting operation.
an
The
turn basis.
The big
shaken
was
Corp.,
slowly.
offering terms
had
0j00,000 offering of debentures of
issue brought out on a 2.97% re¬
a
reported spoken for
market
afforded, the
division of interest in the $150,yield
liberal
shorter
35-year 3s,
point, as far as the banking fra¬
ternity is concerned, seemed to be
the
The
Indicating clearly that buyers of
securities are looking for the
new
Triple A rated
new
This, however,
amenable
more
occasions
several
to
The
week, but
rare
broad
in the
up
latteiimaturity,
pointed out, fitted nicely
many portfolios.
Clearing
most
bond
ers
GMAC Debentures
General Motors Acceptance
V
returns.
f
er—Previous
The
2.97%.
.
,
finnic!ing., Proceeds^-To retire bank loans. Underwrit¬
order.
the outlook for
supply and interest rates
This revision of
money
tiing Electric Co.
Junef 28 it. was announced
Dill<Hi,,Read & Co. Inc.
appeared needed to assure clear¬
ing away of the balance in short
far
financed
$219,000,000 of first mort¬
from buyers
as
arid sell $6,500,000: of these bonds.- Proceeds—To re¬
would be ap¬
it had long occupied.
more
V,---
and for future
Gundy & Co., Inc., both of New York.
Prospective buyers, it appeared,
■
ajlc^w Eoift^'
capital expenditures already made
improvements. Underwriters-^May be deby competitive bidding. Probable1 bidders: Haltart & Co. .Ine*; Union Securities Corp. and Gdpre,i
& Co.
(jointly);. Blyth & Co., Inc.£ Lehman
t*and Bear, Stearns & Co.,(jointly). # : V .
»
'
*
bonds. Underwriters—Lehman Brothers and Wood,
gage
approved
imburse^ company for
Ltd.
self loose from the "dead-center"
the facts
sue
through the Issuance of about $36,500,000 each of com¬
mon stock
■ ■ ■■ $'■'
a proposal to
Western Pacific RR. Co.
annouced that the Cost of the building
"of the prppojted cross-Canada gas pipeline
proximately $2927)0K),000, which; would
1
were
•
Co?}'and Blair;' Rollins &
&
early date 145,000 shares of converts
& Co., both of New York.
was
.,T
.
•Jund 30'stockholders-
(par $10). Proeeeds ^-r To retire Underwriters—Blair, Rollins & Co; Inc: and
March 26 it
■
;;
Peabody
Corp.; - Kidder,
& Co. (jointly):;
Emanuel Deetjen
f
be: Halsey, Stuart & Co; Inc.} The First Boston
ders may
ible preferred stock
arncfthe liuthor*$l)ifVott13,95(),00ir'shares to 2,-
Rochester Gas & Electric Corp.
and sale
Co.,
following mergef of Roberts & Schaefferi Co.). plans ta;
bank loans.
'
Western Massachusetts Electric Cflf.:J.V.J<$r*ry <* '■*■
JulyK;12 it was reported company is planning sale in
September of $6,000,0%0 debt securities. Proceeds- -f To
repay bank leans ahdf fon new construction. Underwriter
—If determined by competitive bidding, pKObabl^ (bid¬
/ Thompson-Starrett Co., Inc.
;
*
July t it was adqotittced new Thompson-Starrett
000,000 shares.- Underwriter—Stroud & Co., Inc., Phila¬
V
approving; issuance
Septf 8<
-
17
I
.
Meeting—Stockholders will vote Sept. 21
of new bonds. Bids—ExpEcted
Stanley & Co.
later m 1954 (in addition
j
to $25,000,000 bonds filed May 26 with SEC). Proceeds—
For new construction. Underwiters—To be determined
q by
competitive"" bidding.
Probable: bidders:- Halsey,
'$tuarf-& Co; InF.;'Stone & Webster Securities Corp. and
f^hite, Wfcld
'•
_
Maryland.Ry. (9/8)
1
July ^13 it was announced company plans to issue rand
sell $16,000,000 of first mortgage bonds due 1979.
Proceedir.TBR.To redeem. $12,632,000 of first mprtgafb^ids,
series B, due 1976, and the remainder used to reimburse
company
for expenditures for capital improvements.
Underwriter—To be. determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Morgan
on
Tennessee Gas Transmission Co.
May 24 it was reported company plans issuance
$50) from!4,000 shares to 50,00© shares,
ized class B common (par
•
of, $20,000,000 Of -debentures
;
.
^
1,
-* y
^
June 21 it was repdrted an-issue of about 260,000 shares
of common stock will be registered& with- the SEC. Price
-XTo he haiiied later.- Proeeeds-^Te selling stockholders.
Underwriters—A-. C; Allyn'*
CO. incr and Dempsey &
Co., both of Chicago, IBi
""
;
„
to.
increasing the authorized preferred stock
on
,
1*
"
~v
issue and sell at an
Ritter Finance
Underwriter—Eastman, Dillon & Co., New York.
rn
Standard Coif Products Co.
i
Pugct 9ound Power & Light Co*' •>L-:..
April 5 «ihe directors approved a program designed to
rpfund the tympany's long-term debt. Bidders may in*
elude Halsey, Stuart & Co. Ine.^LehmahJBrotherS; Stone
& Webster Securities CoS-p.
r.V'.3:r V
&
.
"
a
V"'
preferred stock (par $50), with/a dividend
rate of not to exceed 4.73%.
Proceed*—For new construction. * Underwriter—May be determined by com¬
of cumulative'
Public Service Co. of Colorado
v'.*.
' '-r*
be sold to the
stock to
^construction of
ic Southern Colorado Power
July 19 filed an application •
-PP Ur
Commission for authority to issue* arid sell 30,000 shares
proportions of two-thirds and one-third respectively,
afty^bi: tne% Gnsubscribed shares.
i.'
.
public. Proceeds—To
natural gas pipe line from the
ri Peace River field to western Washington and
art-
Co.'(jointly); Bids—Expected tojde received on Aug. 25.
-
,% & 'una**'.
i'-:
Wfst Coast Transmission Co.
«- 7
,
v * r"14, 1953, it- was announced company >now plaps to
issue $29,000,000 in l-to-5V2-year serial notes; $71,006,000
in 20Ty"ear, first mortgage bonds; and $24,440,00fr in»sub-ordinpted long-term debentures.and 4,100,000 shares of
Oct.
held (within oversubscrip-^..
Consolidated' Coppermines Corp. and
Co.,, New York, have agreed to purchase, in
Underwriters-
in September
may
Underwriter—If underwritten, it
may be Laird & Co., Wilmington, Del.
Two previous
offerings to stockholders were not underwritten.
-
issue-and
sell $30,000,000-of first and refunding mortgage bonds,
additi<friaf.Tl,2OO,O0Q shares of
stock-on, the basiS Of .slightly fess fharf one'neVT
company
issue and sell additional common-
stock<to stockholders.
Proceeds — For construction program. Uarferwriter—
To b^.determined by competitive bidding. Probable bidtion privilege), Pric?—AtjpSr
Cents pef feHfe'f e),Pro--' bers: Halsey, Stuart & Co. Inc.-; Kuhn, Loeb & Co.; Blyth
-deeds• For capital improvements and Wortdhg tapjtai.
& Co., Inc.; The First Boston Corp. and Dean Witter &
capital
it was reported
June; 14
sell
reported the directors plans to issue and
additional common stock (par $2.50), probably,
,
Wyiex let*Services^4nc»
-
June 24 it was
sell to its Stockholders an
-share for each four shares
Proceed?.—To increase Hpital and surplus .Un¬
0
'
' 70] .:/»Ci'
.
-
t
: :
derwriters.—William R. Staats & Co* and Blyth & Co.,
Inc., and associates. >f.
'
'• }"y ■■■'-<?. V > /-''
Smithy Barney & Co. and Merrill Lynch,
Pierce, Fenner & Beane.
some
(Ariz)
July J8 -Bank offered 200,000 additional shares of efctpi*tal stock' (par $5) to itockholders of record July 7 6n a
-l-for-5 basis; rights .td expire dm July 23. PricC—$22t per
Dxexel & Co.,
Shasta' Water Co.
refunding of the ^outstanding $6, pcefei
a
stock at an appropriate time, whep conditions waff
Underwriter—Union Securities Corp., New York. * 1
creased the authorized common stock
financing toy
Houston,
possible
proposals which In¬
-from ;5r,000,000 to
10,000,000 dh&res and the authorized indebtedness of*
the
company
from $25,'000,000 to $50,000,000. ' The
company has no specific financing program.
Under.- .
writers—Previous offering of $24,052;800 3% convertible^ebEhlufeS,. in September, 1953, was underwritten by
stockholders
27
.April
privately owned and financed, will haver authorization
fof the issualliefe df 9j0O<H000/shares of stock. Any public
^
1
*
V
approved
Scott Paper Co.
Underwriters—
Webster Securities
&
500,000 shpres
presently authorized but unissued $6 cumulative pre¬
without par value,-into 1,000,000 shares of anew*class of preferred stock, $50 par. value, mal
•
York.
Inc., San Francisco and New
Stone
ferred stock,
April> 28 it was' reported company plans to offer late
in 1954 (probably first tb stockholders) 800,000 shares of
additional common stock. Underwriter
Blyth & Co.,
1955.
and
of
bidding.
& Electric Co*
Sao Diego Gas
Co.
&
March 30 stockholders Voted to reclassify
Halsey, Stuart & Co. Inc.;
ders:
construction Esti¬
necessary to pay for new
Weld
CprPv bOth Of New^York.
Tri-Continental Corp.
*
Probable bid¬
Smith, Barney & Co.,
and Glore,- Forgan & Co.
(jointly); Union Securities
Corp.; White, Weld & Co.; Equitable Securities Corp. 1
determined
be
plans to issue and -sell
75,000 shares of preferred stock (par $100). Previous
preferred stock financing was done privately through
kuhn, Loeb- & Co., New York. If competitive, bidders
may include: The First Boston Corp.; Smith, Barney &
J^.Co.; Merrill Lynch, Pierce, Fenner & Beane; Lehman
Brothers and Blyth & Co., Inc. (Jointly). RegistrationExpected Aug. 1& JBids—Planned for Sept. 14. Com¬
mon Stock financing—First to stockholders, expected in
July 12 it was reported company
(
banl|: loans
mated to .cost about $11,000,000 for 1954.
St* Joseph
—
.^-^1
was
some
"
March 30, C. At
cumulative preferred stock (par $100). Under¬
May be determined by competitive bidding.
Probable bidders: Smith, Barney & Co.;
and Riter & Co. (jointly).
;
;
^
db
"to
Line Corp.
reported company plans later this fear
permanent financing to repay temporary
March^ig it
v.
White,
refund $20,000,000
July 2 it was reported company may
of $4.80
Transcontinental Gas Pipe
body & Co. and White, Weld & Co. (jointly); Salomon
Bros. & Hutzler; Shields & Co.; Blyth & Co., Inc.; The.
First Boston Corp.; Union Securities Corp., and Equit-r
able Securities Corp. (jointly). (2) For preferred stock,
The First Boston Corp.
37
Continued from page
and Missouri
-y
term debt in the hands of the .pub¬
lic.
And accordingly
for the
name
ditionally
the demand
is broad, spurred ad¬
by
the
type
of
the fi¬
nancing.
Earlier
in
the
week,
on
Mon¬
day, bankers will be bidding for
Boston Edison Co.'s $18,000,000 of
new
first
Illinois
mortgage
Central
And
bonds.
Railroad
on
Thursday will market $25,000,000
of new consolidation bonds. Con¬
solidated
Natural
Gas
has
$25,-
000,000 of debentures up for. bids
on
Tuesday while
several rail
equipments will found out a fair¬
ly busy week.
Number-5344
Volume 180
i
*
Continued
...
•>
«
from first
The Commercial and Financial Chronicle
*
\
*
•
page
•
.
(343)
•
bread than
A fe See
be
made
of
wheat. It may be that our
system of self government is always and incurably af¬
,
can
flicted with weaknesses
It
dence
such
upon
which
occasions
the
defeatist
attitude
that
the
~—
Politics!
Yet practically all debate
whether
upon.
this
or: that
would have had it take
its
provisions
on
the
measure
has turned
J|
'■
ST.
is
'
'——': 1'
"
■
a
the law
moment,
on
are
ter observable
means
who
SAN
measure
would be offensive to
of voters here and there.
at work.
Here is
a
we
measure
find the
we
same
sort
find
recall
we
have heard of
no
serious
attempt
to defend the present system on any rational
ground of
national interest. We can scarcely see how
any one could
even
attempt to do any such thing. "Polls" of farmers and
other inquiry as to what would produce a maximum farm
vote have taken the
place of inquiry into the merits or
soundness of either the
in the
■
.
existing situation
proposed legislation.
i*
staff
of
■.•
The farmer has
Calif.—Wil¬
or any
EL
du
with
L.
Mo.
has
E.
Robert
—
Zoernig
315 North Seventh Street. He
long, been sui generis in American
a
•
was
Edwards
DETROIT, Mich.
no
might
piece of proposed legislation which
opposition, it is the sweeping changes
be made in what has
become known
as
o
I.
d
p e n e
a
NOTICES
DIVIDEND
.
Street,; - under the
Geoffrey C. Ettlesen.
Financial
I
Public Service Electric
With Estabrook Co.
and Gas Company
Chronicle)
SPRINGFIELD, Mass.—Mary C.
Cormack
&
is
with
now
NEWARK. N. J.
Estabrook
Co., 1387 Main Street.
(Special to The Financial Chronicle)
—
Franklin H.
CLEVELAND,
Company, Union Commerce Build¬
members
of Don W. Miller & Co., Penobscot
Building, members of the Detroit
Stock Exchange.
and
Midwest
added
been
the
to
Ohio—Harry B.\
DIVIDENDS
QUARTERLY
Zornow is now with McDonald &;
ing,
of
the
York
New
Dividends of $1.02
a
share
on
4.08% Cumulative Preferred
the
Stock,
DIVIDEND
on
the 4.18% Cu¬
mulative Preferred
Stock Exchanges.
Stock, 35 cents
$1.04Va
a
NDTICES
share
a
share
the
on
$1.40 Dividend
Preference Common Stock, and 40
With E. E. Henkle Co.
cents
INTERNATIONAL
(Special to The Financial Chronicle)
E. E. Henkle Investment
eral
Securities
HARVESTER
Co., Fed¬
Saunders, Stiver
er
Stock,
on
1954, all
before September
or
30, 1954 to holders of record at
COMPANY
the
The Directors of International Harvest¬
Joins
share on the Common
payable
Building.
^(Special to The Financial Chronicle)
a
have been declared for the quarter
ending September 30,
LINCOLN, Neb. -r Clarence E.
Bord has joined the staff of
De
close
of
business
August
on
31, 1954.
_
Company have declared quarterly
dividend
No.
144
of
dollar
one
seventy-five cents ($1.75)
and
share on
the. preferred stock payable Sept. 1,
Dubray has become affiliated with 1954, to stockholders of record at the
I
Saunders, Stiver & Co., Terminal close of business on August 5, 1954.
Tower Building, members of the
GERARD J. EGER, Secretary
Midwest Stock Exchange.
\-
r;
/
Lyle McDonald
Chairman of the Board
I
per
•vV. CLEVELAND, Ohio—Gilbert G.
CROSSROADS
OF
EAST
THE
j
NATURAL GAS
j
j
COMPANY
:
DIVIDEND
•
■
Birmingham, Alabama
!
NOTICE
i
■
.
j
Common Stock Dividend No. 62
A
On
a
quarterly
per
I
share in
July 14, 1954,
•
of
dividend
fifty cents
U. S. currency was
no
declared
on
the
value shares of this Company,
par
business
of
of
40
per
'
record
share has been declared
on
the
Common
Stock
1954 to stockholders of
!
ord
of
5
i
the
close
July 31, 1954.
•
,on.
at
able to
recall, has even raised such issues.
Some tinkering with the measure here and there has been
engaged in, and then almost every vote has been counted
in favor of it—because the
proposal is regarded
as
good
pre-election politics.
It rarely serves any good purpose to ask for better
Southern
f
rec-
:
■
1954.,
'
!
,.
H. D. McHENRY,
.
Vice President and Secretary.
Dated: July 17, 1954
Secretary
Edison
California
Company
•
the close of business
August 31,
JAMES A. DULLEA
July 74, 1954
of
| Southern Natural Gas Com- [
5 pany, payable September 12, ■
•
at
|
|
cents
1954, to share¬
payable Sept. 4,
holders
dividend
,
;
■
DIVIDENDS
CUMULATIVE PREFERRED STOCK
4.08% SERIES
DIVIDEND NO. 18
CUMULATIVE PREFERRED STOCK
4.88% SERIES
DIVIDEND NO. 27
The Board of Directors has
authorized the payment
of the
following quarterly dividends:
25Vi cents per share on the
Cumulative Preferred Stock,
or
thoroughly unsound
compulsions and other provisions of .existing arrange¬
ments. No one in place of
political influence or power, so
■
■
4.08% Series;
SOUTHERN COMPANY
THE
5]
(INCORPORATED)
30% cents per share on the
Cumulative Preferred Stock,
4.88% Series.
The Board of Directors has de¬
for the drastic extension of
are
SOUTHERN
LIMITED
clared
a
2.0 cents
I
standing
quarterly dividend of
Serving the Southeast through:
the outJ
Alabama Power Company
per
ers
share
shares
stock of the
on
on
of
common
Company, payable
September 4, 1954 to hold¬
of record at the close of
business
THE SOUTHERN COMPANY SYSTEM
on
Georcia Power Company
Gulf Power Company
Mississippi Power Company
August 2, 1954.
L. H. Jaeger, Treasurer
Southern Services, Inc.
•
PVBLIC SERVICE
NOTICES
ALUMINIUM
are
.
has
social
changes as have been forced
being forced into the bill as originally proposedhave originated in groups believed to have
strong political
positions. There has been no serious discussion of the basic
«
Co.-
one
security. Such amendments
.
&
staff
has
innumerable other instances which
are
has had almost
we
*
'
-l9
Calif.—Francis
Joins McDonald Co.
Montreal
,be cited. If there is
as
Building.
&
(Special to The Financial Chronicle)
Nau
with
Orange
direction of
Joins Don Miller Staff
whistle stop
forget that Mr. Truman won the election that year,
simply afraid to undertake to undo any part of the
mischief that Mr. Truman is responsible for.
far
Pont
■
.
affiliated
now
Hornblower & Weeks, Union Com¬
E.
Inc.,
Co.,
&
"
branch office at 142 South
associated
*
formerly with A. G.
•
is
vWinter
Chronicle)
become
,
(■*■■■■.........■■■■■■■■■■■■■■■»■■■■■■■•
are
warrant
CAJON,
(Special to The
LOUIS,
DIVIDEND
not
or
(Special to Thk Financial Chronicle)
merce
.
ST.
Co>, Inc.,
CLEVELAND, Ohio—Gordon C.
Bundy has become connected
Zoernig Adds
Henske
&
'
BEACH, Fla.—
George W. Greer, Jr., is now with
King Merritt & Co., Inc.
E. L.
Weltner
Joins Hornblower & Weeks
PETERSBURG, Fla.—Cecil
*New du Pont Branch
PALM
(Special to The Financial
E.
A.
West 10th Street.
With Gerard Jobin
ST.
G.
Mo. —Robert
provision
campaign telling the farmer that
liked to stick pitch forks into their backs,
and promising that he would do wonders for the tillers of
the soil. He kept his promise, and now the
politicians can
about to
with
.
has been added, with Gerald R. Jobin Investments.
California Ltd., 242 Beach Drive, North.
(Special to The- Financial Chronicle)
WEST
"
his opponents
There
V
First
politics. Favor after favor has been granted him, memory
man runneth not to the
contrary. President Roosevelt
promptly proceeded to outdo his predecessor in office by
asking the farmer himself to determine what the rest of
us must do to help him out. President Truman in 1948
:
Beverly. Drive. A
CITY,
W. Alderson has become connected
Co., 140
(Special to The Financial Chronicle)
#
i
of
and
B. Hanauer &
KANSAS
,
The Embattled Farmer
-
conducted
(Special to The Financial Chronicle)
the
21
With King Merritt
little
situation which is
taking place in Congress? Groups
apparently without regard to the welfare of the
country as a whole are intently concerned with buying
the farmer vote by
perpetuating the current system.. So
can
to
added
which goes a
men
as we
Now With A. E. Weltner
Company, 300 Montgomery Street.
enough of the way toward alleviating a
necessity a stench in the nostrils of all real statesmen.
far
Cardwell
the
to
of
do
South
and Mid¬
York
Sons.
the rank and file of the legislators
whether or not some of the provisions
Turning to the agricultural bill,
of
New
been
Goodbody Co.
DETROIT,
Mich. — L.
Allen
Hurd, Jr., is now with Goodbody
& Co., Penobscot Building.
Exchanges.
FRANCISCO,
liam E.
now
among
contained in the mammoth
Yet what
the
"(Special to The Financial Chronicle)
the
is confined to
worry
of forces
Stock
unmercifully by "progressive" income tax
Meanwhile, about the only interest in the mat¬
schedules.
pro¬
HILLS, Calif.—Geo.
has
staff of J.
:•
"soaked"
groups
of
stands the
who advance it, since it is these men of
Devens
Co., 332 Main
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
First California Adds .j
recipient of dividend income is
earnings of the corporations of which
he is part owner. The argument that this is a matter not
to be regarded too
seriously since dividend recipients are
for the most part
wealthy men is, of course, a purely
political plea which should demolish the position of those
taxed twice
Joins
be
not
Kenneth
Street.
—-——1—:—-
BEVERLY
affiliated with Reinhoidt &
bers
could question, the fact that
no one
could
—
Hoover has been added to the
staff of Hanrahan &
With J. B. Hanauer Co.
LOUIS, Mo.-r-Olon B. Hailey
now
west
or
now
M.
of
systems
'."—v
Gardner, 400 Locust Stret, mem¬
understanding of the essentials of such matters, and with
a much
greater willingness to subordinate partisan politics
to real
statesmanship—promptly undertook to write into
the measure provisions which
by further increasing the
"progressiveness" of the income tax schedules would, so
they hoped,, curry favor with the rank and file.
The history of the changes proposed on dividend in¬
come is a
part of the. same political influence. No one
as
WORCESTER, Mass.
*
include certain other changes which are
not now in the bill. First of
all, influential leaders of the
opposition—some of them ordinarily credited with better
doubts for
situation
(Special to The Financial Chronicle)
politically powerful group
other form, exclude some of
some
Other
greatly improved by more courage on the part of the
fessional politician—or at least some of them.
With Reinhoidt & Gardner
1
(Special to The Financial Chronicle)
glaringly into evi¬
this.
as
Hanrahan Adds to Staff
democracy seem to be subject to much the same infirmi¬
ties, although the degree of their subjection is not always
so
great. For our part, though, we find it difficult to accept
distressingly, modest way tries to eliminate or reduce a
inequities in the existing hodgepodge
tax structure. Much more time is
required to study so com¬
plex and comprehensive a measure to assign its exact
place in the fiscal history of the country, but it is scarcely
open to doubt that the measure is a constructive one in a
broadest and deepest sense.
few of the obvious
Politics!
come
39
The
above
dividends
are
payable August 31, 1954, to
stockholders of record August
5, 1954. Checks will be mailed
from the Company's office in
Los Angeles, August 31, 1934.
p. c.
hale,
Treasurer
July 16,1954
TT\
.
Thursday, July 22, 1954
The Commercial and Financial Chronicle...
(344)
40
BUSINESS BUZZ
Business
on.
Behind-the-Scene Interpretations
from the Nation's
Capital
in cheek, knowing
won't work
magic statistical disappearance
of a part of the huge surpluses
,
variety of its phony work.
No. 1 on the list is that well-
financial
legal
testified to formally
As has been
legal" if
inherently fraudulent aspects of
the
before Committees,
scheme
vided by
are
of
millions
to
supports for corn,
(tobacco auto¬
matically stays at 90% under
the law) 90% on rice, 86% on
cotton.
Only wheat would go
down to 82V2% of "parity" sup¬
quarter under covered employ¬
ment for 18 months before re¬
thereby
and
ports
himself
won
$6.00
to the OASI "trust fund," he
and his wife, under normal life
expectancy would draw between
$6,800 and $6,900.
contributed approximately
Or
covered
OASI
to
maximum
the
take
If
tributor.
a
by what is now called
the maximum taxable
payroll from the very beginning,
1936, to the present, the maxi¬
mum contribution made by him- '
payroll deductions
self from
the contributions of his
employer
in a
like amount,
would aggregate approximately
1
$1,200.
individual,
65, with
wife, could be expected, under
This
particular
now
at
age
normal life expectancy to
an
draw
aggregate from OASI of $22,-
One of the foremost students
this subject in Congress,
he
when
off
greater ratio of
loans guaranteed by the govern¬
ment
credit with loans on new
housing,
a
thing
impossible
government fiat for
who
cars
along
with
the
same
the
a
of the housing in¬
that one would go on
way
increasing
by
wagon
his
jr",
temporized and didn't give
gress
of housing aids, al¬
in the way
though it
gave
credit
do
good
oldCongress.
a
Deal
doubtful
is
It
him enough to
to
Fair
fashioned
he wanted
all
Eisenhower
Mr.
the
the
more
books
the
on
receiving bene¬
and
fund
new
on
case
the theory
joined
with
it
theorized
the
radicals ' who
the
building
bold
the
wasn't
scheme
insurance
the
Mr.
of
method,
Tru¬
easy money
day
not consult
who
those
vance
financial crisis will
housing program; at
did
he
least
sible for this
Congress's Own
Byrd's
Harry
pro¬
posed constitutional amendment
to outlaw Treasury deficits ex¬
cept
child
in wartime
of
is the brain¬
himself
when, applied to
stitution,
tov get
beneficiaries1 j off
millions
back-fire
of
were
in ad¬
respon¬
legislation.
on
of
Investment Bankers Association^
Annual Convention at the
lic
the
borne
major
by
along
public
future
'
BOSTON, Mass.—Peter A.
lamone is
with
now
Sawith Palmer, Pol¬
Co., 84 State Street.
Paine, Webber Adds
,,
the
debt,
to
be
generations.
[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.]
public building is desired,
j
(Special to The Financial Chronicle)
the
for the cost of pub¬
buildings,
,
Palmer, Pollacchi Adds
the
ultimate load of social security,
and
Holly¬
wood Beach Hotel.
7]
(Special to The Financial Chronicle)
instalment plan. This will make
it possible
(Hollywood
Fla.)
ing most of its buildings on the
the
1954
Nov. 28-Dec. 3,
lacchi &
course,
the-
Hotel Roosevelt.
thing!
Eventually,
phony of the 2nd session of the
83rd Congress is the Adminis¬
tration's
lease-purchase
law.
Under this scheme when a Fed¬
eral
ties Administrators meeting at
buildings
government will wind up buy-
Postpone Building Costs
To Future Generations
the 7 final
National Association of Securi¬
FDR's
plan
the
to start
debt limit boost.
Probably
whatever
Firm*
Exchange
Stock
of
Sept. 27-30, 1954 (New York City)
buying
-
Federal
against
completed.
like
(Minneapolis
meeting.
the time
at
1954
Board of Governors of Associa¬
tion
during
that
three-year period. And think of
it, only $8 million is provided1
taxpayers'
necks.
The ByrdBridges
amendment
is
just
political
was
course,
instalment
the Con¬
the
cost
it has contracted to buy
Styles Bridges. Harry Byrd, it is
believed, knows that it takes
more
than a stroke of a pen,
even
of
for
except
Senator
and
Sept. 23-25,
Minn.)
experiments of new agen¬
cies, isn't going to cost much,
Oh, no. It is limited to a threeyear
program.
Then if after
three years Congress wants to
go back in paying for things as
it buys them, then all Congress
has to do is to stop the idea,
Constitutional Amendment
Senator
Hotel Claridge.
will
little
man's, and they killed it.
Is
National Security Traders Asso¬
ciation Annual Convention at th*
appropriate
instalment
This
health
compulsory
courageous
entire
for
,
Sept 22-26, 1954 (Atlantic City)
this
of
Congress
Heretofore it had to
the above,
was
ton, Pa.
year's instalments at a time on
the
public buildings it buys.
the conservatives,
it
that
Valley Country Club, Abing-
ton
appropriate only for one
have to
ex¬
pand.
In this
is
Philadelphia 29th
Bond Club of
annual field day at the Hunting¬
gov¬
buy the
purchase"
virtue
sweet
scheme
government subsi¬
new
dies, it would be bound to
to
"lease
a
the
and
arranges
on
The
them,
expecting
President
comprehended the baleful effect
of the housing scandals on his
new
when benefits will outstrip pay¬
ments and
the
Primarily because of the sohousing scandals, Con¬
President
the
lessen
called
They
postponing,
would
consumption of whiskey.
members into the OASI system,
thereby
1
dustry upon government in the
something,"
more
new
.»•
dependence
went
President and
enrolled
to old.
This
at once." That was
about the philosophy of the in¬
formed members of Congress on
forcibly^
prefer
people
generally
houses to old like they do new
individual. "You can't
Security."
like all
Once
of
out
without
all
"Social
business."
Sept. 17, 1954 (Philadelphia, Pa.>
agreement
over
a
period of
years, usually 20 years. In other
words, Uncle Sam is going on
the instalment buying plan.
gage
Eisenhower, and the Democratic
party
the
of
equal under governmentinsured and guaranteed mort¬
bewailed
OASI was
fight public ignorance,
value
the
to
made
country, come pay-up time.
me
a
(2) lower down pay¬
ments, and (3) longer terms of
repayment. The President also
insited
that used housing be
day, maybe a gen¬
hence, it would cause
incalculable
damage
to
the j
taught
(1)
property,
eration
"That
only
millions
President, however,
The
backed
.set up, some
.said this
government.
upon
same
governmentalism, was
aiming "to help private
fits
dustry
ernment
outright
dependence of the housing in¬
not otherwise be identified, \
told
how
two
elderly
ladies
turned
on
their
heels
and
the fact that the way
to
message
building
the
up
was
about
timid
little
a
was
with thousands
may
walked
technique
The
Congress, he proposed, among
things,
to
lessen
the
other
plus
retiring
housing
his
Bond Club of Chi¬
annual outing at Knollwood
Country Club, Lake Forest, 111.
cago
government will arrange
a private contractor to put
with
$25 million for this
spend only
FDR
Eisenhower
President
When
sent
the
rates. The President proposed to
reminiscent of that period when
Drink More Whiskey
Country
Calcutta
the Albany
a
Municipal
"Oh, he's a good customer's man—but I think he goes
a bit too far with that air of casual indifference!"
program.
To Go on Wagon
con¬
had been
person
"flexible" sup¬
ports between 82% and 90%.
Hill
Sept 10, 1954 (Chicago, 111.)
under the great victory
by the President when he
got in the House
Park
preceded by
Aug. 12 at
Hotel.
83% for peanuts
the mini¬
mum
contributor under OASI.
If
he
earned
only
$50
per
^
Denver-Invest¬
of
the
at
Club,
Dinner
85%
viding
law.
tirement,
frolic
pro¬
as
•
ment Bankers Association summer
Benson
Committee
House
the
,
(Denver, Colo.)
Club
Bond
this for
translated the effect of
St.
summer
Aug. 13, 1954
latest
recently
of
Traders Club
outing.
Security
Louis
very
Secretary
Agriculture
instance, take
For
the
not
is
Field
July 29, 1954 (St. Louis, Mo.)
the
of
it doesn't exist) in
aggregate
of
$2.5 "billion
existing surplus.
cally
Investment
In
called
(meaning statisti¬
aside"
"set
official evaluation, but
pro¬
were
cases
a
This
breath-taking,
though small-scale "housing
windfall" frauds in the magni¬
tude of hundreds of thousands
that
EVENTS
contain what is elegantly
fraud, the Federal Old Age and
Survivors' Insurance program..
«
COMING
accumu¬
government.
Under the flexible provision,
the
higher the surpluses, the
lower
the supports. The bills
by the
lated
and
commodities
farm
of
New
York, N. Y.
a
by
however, seems
observers to have
taken the cake for the volume
Administra¬
School of Business
bills con¬
gimmick recommended
President Eisenhower, the
tain
old-time
established
"National
tion, New York University,
price support revision
This session,
to
Ernest Kur-
now—Reprinted from
and Senate farm
House
Both
it is announced or in¬
the way
tended.
Jules Backman and
Surpluses
Aba Da Cabra on
either
it
well
full
Services-
Pricing of Government
Tax-Journal"—Jules Backman,
a
their tongues
away
trade.
fering with private
legislation. There is
certain amount of
solemnly passed legislation, en¬
cased in legal verbiage, which
the
Hon.
members pass with
little phony
always
given
be
could
Bookshelf
domestically, also without inter¬
puts out a
Congress
of
Man's
^4iu/ You
/
foods
WASHINGTON, D. C.—Every
session
•
•
B.
CLEVELAND, Ohio — Edward
Stvan has been added to the-
staff of Paine, Webber, Jackson &
Curtis, Union Commerce Building.
We suggest to investors
liberal
a
return
seeking
and
potential growth
arrive.
Kill Health Insurance
Merchandise Surpluses
Another
Entering
One
second session of the 83rd Con¬
the
the proposed farm
surplus disposal bill, described
on
this page a few weeks ago.
Congress made provision to sell
for foreign currencies
and/or
gress
was
V. S. commercial exports,
fere with private trade,
in
"dump"
American
or
the
red
was
a
corporation
surprises of
phony pro¬
'
•
\
Congress, the so-called
reinsurance"
scheme. 7
This proposed to
ernment
CAPITAL STOCK
assume
bilities
r*
have the gov¬
responsi¬
vast
in
the
coverage
of
health
insurance
schemes, both as to the risks
and the length of exposure to
the risk, or to provide for ven¬
tures into major health cover-
"private"
in
sur-
on
consternation
of
session
"health
inter¬
world markets to the
of competing
countries selling them commer¬
cially.
The
same
legislation
would also pretend that surplus
jpluses
snrp-os-tools
i
posal that didn't make the grade
give away farm surpluses whilst
.solemnly maintaining that this
would neither pare down normal
effect
Wedge
major phony of the
i
cial
or
it
would
be
provided
1
.
Carl Marks & Co. Inc.
FOREIGN
SECURITIES
50 BROAD STREET
TEL:
HANOVER 2-0050
•
SPECIALISTS
NEW YORK 4, N. Y.
TELETYPE NY 1-971
lews co.
Investment Securities
19 Post Office Square, Boston
Telephone
commer¬
commercially at universally low
■
Report available
age.
Obviously this isn't
«
V"
•
\
-
HUbbard 2-1990
9, Mass.
Teletype
BS 69
@FedFRASER