Full text of Commercial and Financial Chronicle : July 3, 1952, Vol. 176, No. 5130

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Reg. U. S

Volume

176

Number 5130

New York, N. Y.,

Pat. Office

Thursday, July 3, 1952

Price 40 Cents

Copy

a

-iT

EDITORIAL

I

As

Objectives of Manufacturing
Chemists' Association

See We

Movies Reeling Again
Associate Professor of Economics, Duke University

Some six

months after the outbreak of
trouble
jin Korea, the President, then
wrestling with a
Jraw materials situation arising primarily out of
;Sja sudden decision of many countries (with liberal
^financial assistance from the United States) to

^superimpose vast rearmament programs upon
',£i |their efforts to rebuild after World War II,
ap¬

%

pointed

Materials Policy Commission. To the
Chairmanship of this Commission the President
a

Jappointed William

S. Paley, Chairman of CBS.

J, This Commission
Jbroader and longer
^materials problem
defense
duties

needs."
and

was

as

In

further

of

elaboration

the

of

Reporting

on

year, Mr. Munson points out it is now
spokesman for "the Number One industry in the

the

United States."

Reviews recent

that "we cannot allow

our

great pleasure

annual

national

the report

were

eco¬

the

an

appreciation

When
lot

through

on

At

the

burned

biggest

down

sound

most

tne

significant

in

year

In view of the fact that

h
S.

able

to

attend

ference,

in

discuss
that

the

been

were

in

sOme

oOthe

received

Continued

uf

Everett

black

recently

reports
in

DEALERS

makers

could

matter

no

do

how

no

1946,

a

troubles

date

drew

big

box

office

The impression that everyone connected with
was

idly

by

menace

30

was

of being at least

way

buttressed

no

by

of television

brilliant
was

a

was

there

to

grosses.

Hollywood

minor genius

was

earnings statements.

distant

substitute for the movies

Nowhere

back

in which the picture

year

be

on
as

found

the

horizon.

There

a

prescient sage to
on

page

/

Oil

Hawaiian Securities

HAnover 2-3700

and

Securities
Direct Private

Dean Witter
14 Wall

COMPANY

and

BOND DEPARTMENT

THE NATIONAL CITY BANK

j. a. hogle & co.

OF NEW YORK

Members of all Principal Exchanges

ESTABLISHED

Commodity

Security Exchanges

50 Broadway

/

San

Francisce

').

Los

•

Boston

•

Angeles

Wires

Bond Department

Co.

&

Street, New York, N. Y.

Members of Principal

30 BROAD ST., N. Y.

Bonds

Mining

r
W/i es

Chemical
BANK & TRUST

Municipal

UTAH

Pacific Coast &

Municipal

Direct Private

•

Chicago

Bond

Honolulu

Salt Lake City

Dept. Teletype: N Y 1-708

Los

Angeles

THE

1915

New York
Denver

.

•

CHASE

NATIONAL
OF THE

CRY

OF

BANK

NEW

YORK

Spokane

NATIONAL BANK

STOCK & BOND
BROKERAGE SERVICE

Peace River

of INDIA. LIMITED

Natural Gas Co., Ltd.

CANADIAN

New England

Sherritt Gordon

BONDS & STOCKS

Public Service Co.

Bankers

to

tke

Government

in

Kenya Colony and Uganda
Head Office: 26,

Bishopsgate,

Mines, Ltd.

London, E.'C. 2

Banks, Brokers and Dealer9

Brandies

Burma.

In

India,

Pakistan,

Ceylon,

Aden,

Kenya, Tanganyika,
Uganda, Zanzibar, and Somaliland

Hardy & Co.
Members
Members
■

New

York

New

30 Broad

Stock

York Curb

St.

Exchange

Exchange

New York 4

Authorised

Paid-up
Reserve

DIgby 4-7800

Tele. NY 1-733




Bought

—

CANADIAN

Sold

—

Quoted

Capital
Fund

Goodbody

£4,562,500
£2,281,250

&

Co.

of

Grporatio/s

NEW YORK

request

Exchange Place, New York

t>,

N. Y.

105 W.ADAMS ST,

CHICAGO

IRAHAUPT &CO.
and

40
115 BROADWAY

upon

Members New York Stock

MEMBERS NEW YORK STOCK EXCH.

banking and exchange business.
also undertaken

PoMEnox Securities

ESTABLISHED 1891

£3,675.000

The Bank conducts every description

Analysis

DEPARTMENT

Protectorate.

Capital-.

Trusteeships and Executorships
Tel.

32

—

State and

Securities

for

sol¬
The

entertainment.

Continued

U. S. Government,

telephone:

"forthright
company's

your

Every picture they made,

wrong.

terrible,

comment

the

being met."

are

in

Stale and

which

Hollywood's
to

deluged with

are

which

Candid shots taken at the Annual Outing of the New York
Security Dealers Association at Hempstead Golf Club, Hempstead, N. Y., appear
on pages 23-26, inclusive.

PICTURES IN THIS

ISSUE

J. Mann

un¬

presented by Mr. Munson at the 80th Annual Meet¬
ing of the Manufacturing Chem:s+s' Association, Inc., White Sulphur
Springs, W. Va., June 23, 1952.

46

There

gray—either all is

as

cheerily/.regarding

items

page

go

is

companies

annual

throughout

on

could

we

time stockholders of the motion

picture

address

♦An

is

as

same

will

I

$1,500,000

white; currently the
after having looked
as last Fall.
It is difficult to pick up a trade
paper without finding some new note
of gloom from
Hollywood. At the
shade

But before preserving a detailed
listing of the high¬
lights of the past year, I should like to restate briefly
my concept Of the role which MCA should play as spokes-

have

all

or

white

Mid-Winter Con¬

report ioday

my

briefly

has

of you

insurance,

such shade

no

black

problems

some

of

Hollywood long has been noted for

during the

develop

loss

a

the extreme hues of its moods.
is

manner

ther fact that

Munson

the

have continued to grow

measures

Brothers'

Warner

on

causing

'

the

most

movie

into the television business."

regard

Mid-Winter Conference

capital

some

today's prices.

at

stage

investor

and

a stockholder was heard to mutter darkly, "If
could burn up the rest of the
company's property and

December,

that I

the

income

(insured),
we

expressing

in

For

again.

current

recently,

December, I reported
on the major
steps that had been taken by MCA
during the first half of the fiscal

Charles

many

page

to
year

Hollywood has good

the very long term, asserts

over

entire, history of MCA.

text

number of estimates
Continued

referred

quarter of

a

in

of its

one

unfavorable elements

as

companies offer good values

represen¬

latter half
of the year, and in view of the fur¬

excep¬

tionally thorough study and analysis of
;! facts bearing upon these matters. They
■14
a

I

the

as

cooperators in and

'chosen to limit their look ahead to

Association

past year—a

the

of the

well

«as

reasonable

the fine attendance at this 80th

over

year.

font of Government service have made

made

with

meeting. The truly impressive turnout here today
* is typical of .the enthusiastic
support
that

made public. It is evident that

!ja century, but have

muddle

to

satisfied

.

our

of the report of the Com-

jthe Commission and various

Chemists'

and

-mission, and the first three volumes

;!of

the favorable

out

collect

Manufacturing

on such materials."

summary

as

immersed in

now

extreme

gloom, Professor Mann
the long-term impact of Television
competition.

I know that I speak for all of the officers and directors
of

Useful Facts
a

to role

MANN

industry's future, concluding

chance

accomplishments, such

(1) transition of the Association

as

The task of the Commission,
^therefore, will be to make an? objective inquiry
jinto all major aspects of the problem of assuring
jjan adequate supply of production materials for
jjour long-range needs and to make recommenda¬
tions which will assist me in
formulating a com¬

Last week

in

Association in past

nomic expansion.

1

Points

activities of the Manufacturing Chemists'

of

moods

examines

<^hairman of the Board, Air Reduction Company

work;

the

^shortages of materials to jeopardize our
^security nor to become a bottleneck to

prehensive policy

recurrent

the

Commission,

*

EVERETT J.

Noting thai Hollywood is

industry; (2) the excellent Defense
(3) launching of effective public relations, and
(4) other activities in the public interest. Foresees new
opportunities for chemical industry.

study the

distinct from the immediate

to say

on

''to

By CHARLES S. MUNSON*

Retiring Chairman of Board, and President-elect
Manufacturing Chemists' Association, Inc.

tative of chemical

range aspects of the nation's

objectives

President went

directed

By

other

111

Exchange
Principal Exchanges

Broadway, N. Y. 6

WOrth 4-6000

Teletype NY 1-702-3

WHltehall 4-8161

Boston

Teletype NY 1-2708

Telephone:

Enterprise

1820

,

2

The Commercial and Financial Chronicle

(2)

The

WE-POSITION and

participate and give their

Rights

&

^^Tnis
Forum

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

Afaeridan Tel. j& Tel.
"iVifM

Security I Like Best
reasons

for /favoring

particular security.

a

P.

•

(The articles contained in this forum

Interstate* PoweK
a

4'»A

\

they to he regarded,

are

tllV'C**

be, nor
sell the securities discussed.)

offer to

as an

intended

not

are

and

GLENELG

Mineral Company—Glenelg
Edie

D.

&

Louisiana Securi

Co.,

New

York

City. (Page 2)

■

.

Bought—Sold—Quoted

has called a spe- Perkins Machine & Gear Co.Ben S. Lichtenstein,
meeting
for
Partner, B,
S. Lichtenstein & Co., New York
July 28 to authorize an increase
in indebtedness from $400,000 to
City. (Page 27)
$4,500,000.
Arrangements have

Northern States Power

Foote

Mineral

The

Southern Production Co.

Company & Rights

Company

business

Mineral

Foote

of

Company began about 75 years
ago in the procurement of minspecimens by Dr. A. E. Foote

eral

Puget Sound Power & Light

for

sale

company

stockholders'

cial

Vice-President, Lionel I). Edie &
Company, Inc., New York City

Pacific Gas & Electric

Southern

The

CATERER

P.

^en made 4o borrow $3 000 C00
(rom Pniladelphia bank s 1
t0 approval oi the debt
and to the governmen gu r

loan because ot the expanding es-

and

col¬
The

first

Corporation
Established

Associate

N.

Member

in

Y.

Curb Exchange

120 Broadway, New York

5

Teletype NY 1-583

BArclay 7-5660

pates

process¬

the

line

tization

The

of

the

and

lars

more

complex,
but
the company's
growth

Glenelg P. Caterer

until

slow

after

1930.

and Institutions, in

After that the growth of the weld-

A. T. & T. CO.

and

to

the

company's
both in dol-

physical output.

will

It

world's largest and most modern
lithium chemical plant at Sun-

bright, Virginia; and will construct a needed crushing plant at
the company's limestone quarry
and
ferro
alloys
for at Sunbright.
rod coatings. Sales InZirconium
also
is
a
widely

minerals

3y2% Conv. Deb.

welding

Due December 31, 1964

$695,000

creased

000 in

part

from

in

Prospectus

other
At

the

frfcpONNELL&ro.
Members

120

wide

The

Exchange

NEW

REctor

coatings,

of

the

com-

used

study

well

as

the

as

mineral

ele-

is

ae-

company

characteristics

an

their

the

YORK 5

2-7815

of

is

in

for

Of

a

technical

300

em-

than

Prop

decrees

their

or

unusually

an

i°n

sonnel.

per~

already has been spectacular,
own

lithium

Bassett Furniture

Industries

much

The

current

also

and

expansion

earning

in

size

Dan River Mills
There

abundant

are

lithium

39

TWX

in

eluding

Lynchburg, Va.
77

the

the

th(J

current

continued

controls,

and

rise

°1949

1947

in

seems to have

financing
for

nuclear

the

but it
tract

program

refining

after

into

They

operation.

is

the

a

and

probably
earnings.

of

reserves

earth's

crust,

in-

in this country,
difficult metal to ex¬

are

largest

producer

Earnings

of

lithium

of

1952

35

equalled
.

PRIVATE INVESTORS
403 W. 8th St LOS ANGELES




Teletype BS 259

r

3Yz

s, 1964 & Rights
(when issued)

Lighting & Pwr.

This is an annual rate ot
Assuming

3%s, 1967 & Rights

Southern Company

,

.

$D40.

*

Common

&

Rights

the operational

Looking beyond 1952, it is

of

facil-

war,

It

in"

on

the present program.
chemical

of

1953.

cult

for

is

the

Y.

Security

Broadway

Tel.

Dealers

Assn.

New York 7

DIgby 9-1550

Tel. NY 1-1932

sales

TRADING MARKETS

new

sched¬

summer

1955, it is not diffi¬

By

visualize

to

The

plant

uled for operation in

Southern Advance

of

$15-20,Mineral Com¬

Foote

Grinnell

with net income of $1,500,-

888 to $1,860,000, equal to $6

of

cash

Corp.
Corp.

per

Penn Fruit
at

the

of

end

boenning & co.
Philadelphia 3, Pa.

The balance sheet showed $997,-

000

Bag & Paper

Read Standard

better.

or

Capitalization

In

the

to

„

150

and

1951.

adjusted

Members' n.

pos-

1951 consisted of $190,000 of longterm debt, $140,000 of preferred
stock and 259,526 shares of cornsplit mon stock.

was

Cebsten & Frenkel

sible to visualize a considerable
further increase in earnings based

United

and

at

20

over

times

States

Nevertheless, 1952
The

market value of the
company does" Foote
much exceed

F

$10,000,000, and

Mineral's

o o

exceed

muc

Chairman

of

Mineral

Conrad

the

Net

Oper.

Ap. Net

Profit

Sales

Income

Margin

($0001

5.7

27

Meyer

ment
cals

pioneered

work

develop¬

zirconium

on

refractories, and has a
world-wide reputation as an au¬
thority on the less common min¬

40

erals

53

cals derived from them.

49

expand¬

the

and

metals

1943

3,921

5.4

52

President, Gordon
began with Foote

1944

2,879

2.6

38

gineer in

by major oil
companies in compounding lubri¬

1945—__

2,324

(Loss)

1946

1,951

2.7

43

1947

3,268

6.0

110

ceived.

It

is

as

its

yet

hardly

poten¬

been

used

capable

of

withstanding

range

T"^ tube manufacture

of

nickel

TV

and

in

ferro

It

electronic

1948

3,646

6.7

3,614

8.9

bleaching

has

cycle

in

goods"

the

such

1950

as

refrigerators, stoves, etc.

21.1

several

patents

have

been

15.4

prior

Chambers

431

Earnings

to

1947

are

Mr.

company.

545

8,077

new

significance in

of

bathtubs,

any

valuation of the stock.
for the

100% stock

25%

over

of

mon

sales

are

of

in 1949, and the 300%

dend in
of

paid

stock divi-

1951, earnings

common

Adjusted

equalled 73

per

share

cents

in

S.

Teletype

N. Y. Phone
COrtlandt 7-6814

on

N. Q. B.

zirconium

and

believed

OVER-THE-COUNTER

Mr.

to

own

company's

com¬

INDUSTRIAL STUCK INDEX
12-Year Performance of

35 Industrial Stocks
E.

Ogburn,

Jr.,

ViceBOOKLET

1848

Exchange

Philadelphia

en¬

President, in charge oL Research
and Development, joined Foote
in

Stock

Bldg.,

PH 375

assigned to the

Meyer

the

Phila.-Balt.

Pennsylvania

author

stock.

Dr.

current

dividend

Members

Chambers,
a

re¬

properties.

enameling

5,447

1951—

re¬

Ceramic compounds
incorporating
lithium
materially
reduce
the

"white

had

which

192

used

The

He is the

144

1949

1928.

H.
as

chemi¬

and

Samuel K. Phillips & Co.

of many technical articles and has

(d)49

is

equipment.

hypochlorite

markable

it

can

alloys

a

In

temperatures.

rapidly replacing lead.
place

con¬

chemi¬

and

7.1

but

Annuity 4%'s & 6's

Mr.

7.6

have

Lehigh Valley R. R.

as

figures.

these

1,607

is

American Dredging Common

President from 1936 through 1951.

2,649

lithium

of

H.

BOard

Company
is
who
served

Meyer,

1942

of

use

Talon Inc. Preferred

Control

potentialities

($000)

and

Cambridge Bldg. 3s 1953

~

Management and

likely much to ex$8,000,000 and the indicated

not

Pocono Hotels Units
A. M. Greenfield 5s 1954

ities.

1941

heat

Conv.

Houston

share.

7.2

Lithium

Barry & Myron Kunin

:

JTelephone WOrth 4-5000

American Tel. & Tel.

per

.

978

in

Y.

tax

cents

.

19)39'——

glass

majority shares

*

CA 7-0425
N.

Conv. Deb.

1940

wide

the

request

on

148 State St., Boston 9, Mass.
Tel.

in the first quarter of

cants

or

Circular

being

are

695

ing rapidly

in sound So.Calif, firms

HOFFMAN RADIO

in op-

liability.

not

its principal domestic
spodumene.
Foote
is
the

tialities

all

offices

V

the ad-

reduced"

share

the

again

stock,

from

The

i

branch

our

are

ing it in tonnage quantities.

•

to

J

nfSn
£eflect the bringing new often are
bugs^which facilities
in

lithium

expansion

price.

and

wires

oper-

the decline

in part for

has developed methods of produc¬

We purchase

to

found

particularly in 1950 and 1951 the
company
had a relatively large
expansion in sales and earnings.
The stock also has had a very
in

Direct

rate

erating profits. However, an un¬
Portant additional reason is the
^ost
§ the new spodumene (lithium) deposit at^Kings
Mountain and of opening a semicommercial pilot Plant at Exton,
^ennsy1 vania fmanuf
°f
^Y Jpn

000,000

During and

NY 1-1557

Orleans, La. - Birmingham, Ala.
Mobile, Ala.

in

,

company

slble

fact

The Earnings Record and Outlook

ceed

reserves

ore,
LY

, g50 and $1

During the first quarter of 1952,

pany,

1952

power.

Expansion Program in
Lithium

STRADER,TAYLOR & CO., Inc!

in

ities.

sales

The

Life Insurance Co. of Va.

lies

zirconium

*

Commonwealth Natural Gas

wpre

the present
basis, was selling at only Treasury bills included in $3,042,metals, particularly a little over $4 per share, and to- 000 of current assets, comparing
zirconium, promises day it is selling in the middle 40s with $1,216,000 .of current liabil-

further

and in

Camp Manufacturing

its

in

t

HAnover 2-0700

New

c£nt/in

lg48i 22%

^
.

dividends

in
the

and other's research into

lesser-known

American Furniture

521/

ig51

On

alloy it is used

an

use in atomic piles and
engines to speed fission.

large

Although the company's growth
Trading Interest In

flashlight

that it is resistant to the absorp-

60

equivalent, and technically trained

_

it is

government

more

personnel made up

in

tion of neutrons. It

provides

on

As

zirconium

Foote's

some

1951

in

est

elements

of

powder form

igniter

an

cash

jn

$2.34

1951.

in

and "breaking-in" difficulties will
to make jet engine parts.
Most bave been overcome, it appears
of the zirconium now being pro- reasonably to expect increases in
duced is being purchased by the the [ate °* earnings in subse-^
Atomic Energy Commission. The fluent quarters to possibly a $AEC has announced that its inter- ra*e by the end ot the year,

.

held

as

Much

undertaken

basis

industry.

used

In

bulbs in the manufacture of elec-

titanium

other

compounds.

research

or

behavior

and

zirconium,

number

a

and

ployees
Tel.

supplyof al-

intensive

and

widely

contractual

Exchange

BROADWAY,

rod

illustrative

lithium,

and

Curb

was

minerals

knowledged leader in research into

1917

Stock

as

and

of lithium.

tronic tubes.

welding

is

ments.

of

York

materials,
chemicals

of the lesser-known

Rights & Scrip

,949

has potential uses that rival those

time Foote

for

more

New

in large

different

pany's

York

war year,

lithium

one

loys

Specialists in

New

found mineral element, and also is
difficult to produce.
However, it

to

products.

which

Since

1933

$3,921,-

coating

as

ing 60
upon request

in
to

and

result of the demand for

as a

well

(When Issued)

,

$200,000

1939

1943, the

electrode

Subscription Warrants

LD

scheduled

is

double

ing'rod industry became quite
spectacular, and Foote became aggressive
in
supplying
various

and

cents

commodity

triple the output of lithium ore at
the Kings Mountain, North Carolina, property; will construct the

was
wao

relatively

rapid

capacity for lithium

used be¬

Exchange

St., New York 4, N Y.

ministration of them are respon-

finance

than

more

proc¬

giywui

vvill

000

ucts expanded,

esses

Dealers

^

1949,

...

$1.63

basis

same

in

cents

which this $3,0t)0,-

Tax

loans.

of the

The program

prod¬

came

Net Markets maintained for

82
an(j

amor-

decision.

should permit

ances

early

Members New York Stock Exchange
Members New York Curb

ate at capacity (sales were at an
annual rate of $8,000,000) but ths
operating profit margin was only
10.5%.
Government price and

favorable

a

antici-

and

assistance

savings by reason of accelerated"
amortization and depletion allow-

installed

1900's.

1920

financial

ing equipment
was

..

sential

industrial lab¬
oratories

New York Hanseatic

1948,

applied to the government for this

lectors.

Electric System

England

requirements for lithium
chemicals.
The management has

private

New

Steiner, Rouse i co!
25 Broad

1950

,

~
participating in part of the

or

to

universities,

Thursday, July 3, 13^2

Alabama &

Selections

,

Iowa Power & Light

.

Caterer, Vice-President, Lio¬

nel

to

.

Week's

Participants

Their

Foote

.

after

a

background

in

university teaching and research
Continued

on

page

ON

REQUEST

National Quotation Bureau
Incorporated

46 Front Street

27

\

New York 4, N. Y.

Volume 176

Number 5130

.

.

The Commercial and Financial Chronicle

.

(3)

3

LETTERS TO THE EDITOR:

INDEX

"The United Nations-

Why It Is Doomed
Letters

>

received

anent

article

by William A. Robertson

which he contended that the

United

Objectives

to Fail"

Movies

in

Nations, because of its

nondescript composition, among other reasons, is
incapable of achieving the objectives, including maintenance
UN, Mr.

country,

In

article

an

the

on

are

19, captioned

tions—Why

It
William

Fail,1"

Is

Doomed

A.

of the New York Bar,
forth the reasons why, in his
■opinion, the United Nations is

the

theory but for
to

prevention

of

the UN that

its

outstanding

Mr.

insurmountable
its
success,
mixed and

sition,"

was

he

wrote,

the

any measures
with historical

is

to

"its

that

entire

part of the

thus

from

the

prevent

jects

the

United

60

do not know their

Since

--

the

tomato.

icle"

has received

comments

subject

thereon
att

m

UN

is

an

that

tomato's is to

a

He

be

a

correct

Socialists

on

'

soapbox
Street—people don't like

as

Chairman of the
Board,
Commercial Credit Co.
I

have

read

tions—Why It
with

a

great

I am

Is

convinced than

ever

Bank

not

party to
of

writer

a

when

he

-

Does he

think

it

world

he'd

any

ing

From

restore?

super

face

in

hands

our

Man's

we

are

not

permitted
act

way

t

in

Mutual

he

the

I

may
best at

time

concern

our

i

s

Alexandef E. Duncan

our

country

taller

has

only

vote

one

compared with several by others,
as

Russia and her

as

a

satellites,

as

well

number of much smaller

the

order

dream

this true when

fully

of

country of
been

Our

world,
than

we

The

to

which

is

should

ever

a

in

na-

is the

a

only

military

to be strong
and in every

and Research;

8

•Whiting Corp.

31

News—Carlisle Bargeron

10

;

40

...

13

May_

Teletype NY

Corner

35

L__

KINGW00D OIL

41

L

(Walter Whyte

and

*

way

BELLE ISLE

5

Says)

38

You:
48

on

page

-Mr.

4

2

The State of Trade and
Industry____

Washington

1-1826

18

___,

Best.

Tomorraw's Markets

NY

38

Securities Now in Registration

Security I Like

&

44

___:

Salesman's

Exchange PI., N. Y. 5

1-1825

22

Offerings

Securities

Securities

40

47

Governments

Security

HA 2-0270

*

Report

on

Singer, Bean
& MACKIE, Inc.

8

___

'

The

Corp,

National Alfalfa

*

way

Continued

:

of the

Wilfred

undertaking.

I believe
always in "America First." I think
that

Recommendations

J

Reporter's

Railroad

ours

Associated Development

8

Public Utility Securities

and

trying

■

Angeles

Funds

Prospective

with every word of it.

regulate

welfare.

Especially

article

Field

Notes

and

that I have read

say

trouble with this
is .that we have

matters

which

to

Los

3lS

._

Investment

Observations—A.

,

BATEMAN

Robertson's

agree

on

any

wish

Mr.

37
48

News About Banks and
Bankers

Trust

any

and

6

1-3370

Cover

34

President, Branch Banking &
Company, Wilson, N. C.

o

we

think

D.

Philadelphia

Teletype NY

\
^

Securities

Our Reporter
H.

BO 9-5133

Direct Wires

Stocks..

Washington Ahead

NSTA

crying?

which

Broadway, New York

28

Bookshelf

government
under

61

-

be

Does

J.F.Reilly&Co.

22

47

Indications of Current Business
Activity

propositions except bury¬

our

21

<l__„

Einzig—"The Impact of Credit Restriction
in Britain"

any

concrete

20

(Editorial)

Dealer-Broker

Communism wouldn't have
attacked Korea? Does he have

be

20

27

Coming Events in Investment

cheaper to defend the country in
the

Sulphur

Wyoming Gulf Sulphur

Ass'n

Shelare

Insurance

Canadian

says,

would

and

Business

"Why UN Is Doomed to Fail," he
assumes
a
responsibility to indi¬
cate somewhere
why UN is doomed
to fail; and he hasn't even
come
close.

Pan American

16

Inflation Hedge

an

Mexican Gulf Sulphur
"

12

__.

think

States

should
form

Na¬

the

United
a

United

Doomed to Fail,"
/leal of interest.

more

tha.t

"The

as

Sulphur

us,

UN, which
certainly well within his rights
a
citizen, but it seems to me

that

6

Share Owners Estimated at
6^ Million; Funston Lauds
Value of Brookings
Institution Survey

As We See It

;

happened to Napoleon,
the hell with the
Kaiser, remember
what
happened to Samson;

is

DUNCAN

3

'_

to Defense

Regular Features.

in

Editor.

E.

Gulf

Plastic Upholstery in Wider
Use

who up to this time had taken no
part in the conversation.
I take
it he doesn't like the

ALEXANDER

■

j.

complaint

a

Quoted

Continental Sulphur

S.

and

of
the
communications
given herewith; others will
appear in subsequent
issues.—

■.»

■

Ownership Key to Free Economy

—Robert W.
U.

•

Incorporated

Wider Stock

•

complains it's big
The

$

Manufacturing Chemists'

Corporate Bond Issue With

irrelevancy

14th

on

Some

'

Downtrend in Orders and
Output Continues

look what

Question.

14

Sold

•

20

interna¬
A

3ought

12

Electronics Output Valued at
$4 Billion

hear from elderly Daniel De

you

Leon

Mr.

are

:•

Ward Named Chairman of

He ob¬

wars.

be it's little and exclusive.
Now and then he goes off into the
kind
of
glassy-eyed

minds."

and

in

e r

H. Bellemore....

on

Chemicals—Their Vital Contribution

would

number

a

the

inclusive.

said,

of

Outlook-^-Douglas

11

Progress in New Synthetic Fibers
Cited by C. W.
Bendigo

a

WALL
STREET, NEW YORK
Telephone: WHitehall 4-6551

10

Bullis

Chemicals Fan Out Through Whole
Manufacturing Field.

complains there are
disparities.
Same
com¬

ment.

own

l

Business?—Harry A.

Business

He

Nations.

appearance

Obsolete Securities
Dept.

Affecting Chemicals

-f

indictment, and shows

as

cultural

Robertson's article,-the "Chron-

"

that

he

nations

them

selling

99

9

William A. Robertson
article, "United Nations—
Why It Is Doomed to Fail"

reason¬

makes

abate the

or

national,

any

of

of

Wall St.

*

•

is made of small
pieces of stone—
UN's organic nature is to be inter¬

United States could
achieve
for the world than

"federation

line

99

7

Automobile Accidents—Roger W.
Babson_.___.___

conglomeration, which is a
little like objecting that a mosaic

conflict

independently,

CALDWELL

tional

more

.

practice.

at

obsoletes!

5

D. Sears

Big Government: A Threat to
Liberty and Progress
—Wheeler McMillen
^

no
appreciation whatever of the
fact that the UN did intervene and

and that of
by withdraw¬

world

A.

(Paragraph l)^nd

behavior.
Mr. Robertson concluded that
the United States
would serve
its own best interest

Acting

not

ing—if that's what this grotesque
outcry is—is not really worth our
soberly discussing. He reels off a
list of international incidents

compo-

membership

on

ing

in

success

Mr.' Robertson's

Another

nondescript

as

Chantler....

for

The Immediate

many, years
are

Ahead

Comments

weakness,

impediment

R.

Hackensack, N. J.

of Europe and
Asia, for example, which have
nothing in common and hence
can hardly be
expected to agree

the

a

What's

and

Editor, "Bergen Evening Record,"

including nations

-

—Ambrose

grand idea in

a

but naturally

.

his

__.

in real¬

Robertson.

4

Inflationary Forces—Thomas

The Tariff Situation

from

Nations

afraid they

WILLIAM

The

war.

internationalism—is,

ity,

of

many,

am

going to be

crowning virtue—

said

I

come

achieving any of
objectives, including

very feature of
hailed as its

its

League

WHERE'S CHARLEY?

.Cover

__

Cobleigh

—Robert S. Aries and Rudolf
M. Cziner

of

stated

AND COMPANY

Cover

Government Threats to Chemical
Diversification

different

United Nations is

_

-member

incapable

entirely

The

.set

its

so

Munson

~

*

ours.

to

Robertson,

good

more

the UN.

as

Chemists' Association
'.
.'l

Chemicals—Ira U.

A Review of

tions whose ideas and way of life

cover

of the "Chronicle"
of June
"The United Na¬

page

Suggesting

acting independently, could accomplish

in

page

Moscow and Our
Elections—The New Red
Herring
—A. Wilfred
May

Robertson argued that this

for the world than
any such body

Manufacturing

S.

'

Reeling Again—Everett J. Mann

Fashions

mixed and

of world
peace, which prompted its establishment.
U. S. withdrawal from

of

—Charles

llCHTHOT

"

Articles and News

May's twelfth

article in

a

Union appears this week.

:

GULF SULPHUR

series after his visit to the
Soviet
'

38

*

*
Published Twice
Weekly

For many years we

II LI t IIII LU

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4

The Commercial and Financial Chronicle

(4)

with

plastic gears, and a toy pig
with plastic ears. I'm writing with

Fashions in Chemicals
Quite

much

as

chemicals
field
When
talk

are

are

often

"Expanding Your Income"

about

oils

has

women's clothing, and houses,
style conscious; and fashion changes in this
briskly reflected on the boulevards of finance.

they

industrial

savants

market

security

talk

they
they
1

e

utilities

the

mean gas,

e c

start

or

but
they

water;
when

yakking
chemi-

about

in

plastics, synthetics and phar¬
So, if we want our

be turned
the latest, most progressive

chemical

Ira U.

Well

they're

s

year—chlorophyll.
Important Producers

out in

portfolio, to

The

most

gum

chemical

issues

those

but

maximize

the

which

growth

essential posed to
olfactorily

important

Mathieson Chemical.
It's
of

to

easy

any

one

see

that

of these

the

lab

story

leaders

could fill out a small book', but
Chemicals
are
compli¬
An
important part of the pro¬ because of its importance in the
variable, and the
duction of these mid-century mar¬ three
fastest
next time you proudly boast that
growing chemical
vels stems from the newest star
lines—plastics, fibers and mediyou own a "good chemical stock,"
on
the
industry
horizon — the cinals—American Cyanamid de¬
(which, I trust, has done well by
industry.
This serves a special note. With 1951
yoiw sit down and list the six petrochemical
mairLjzhemicals it produces. I'll highly publicized and well at¬ sales of $388 million, it ranked
wedding of the oil and fourth in size of the major chem¬
bet you can't do it —yet you're tended
supposed to be an informed in¬ chemical trade represented at the icals and earned $8.08 on each of

diffuse,

cated,

year-end

vestor!

Well,

let's

if

see

together we

ment

of

another

total

a

plant

invest¬

In tooth paste,

deodorants, it is sup¬
provide a "new look,"
speaking.

It's

a

$100

Edwin F. Peet

million green hornet but just why
the stuff makes everybody smell

Edwin F. Peet has been elected

plied by such leaders as Dow, du so sweet, when it never had that President of Burns Bros. & Den¬
Pont, Union Carbide, Monsanto, effect on cows and goats who ton Inc., 37 Wall Street, New York
and recently Jefferson Chemical, wallow in it, escapes me.
The City, dealers in Canadian securi¬
a joint operation of American Cygreen stuff, however, pushed up ties. Mr. Peet was for many years
anamid and Texas Co.; National National Alfalfa
common
(over a partner in the firm of F. B. AshPetrochemicals,
the
unit
con¬ the counter) from 3 to 13 in 18 plant & Co.
trolled by National Distillers; and months,
and American Chloro¬

cruiser.

given.

and

material for these plastics to¬

raw

most-profitable) mode, we day is ethylene gas, a petroleum
ought to buy not just any old derivative being produced or ap¬
(and

sections in
about as spe¬ this fabulously flowering indus¬
cific as a pol- try.
While the old standbys that
i t i c i a n
anproduce the sulphur, the nitrogen,
s w e r i n g
fi¬
a phosphates and potashes am
question from nancially correct, current glamour
Cobieigh
a
heckler on is more perceptible in orlon, and
dacron
and
plastic,
everything
patronage.
the savants should be for¬ from a shiny toy to a 40 foot
1

c a

few
more
chemicai
fashion
tie plates
to replace steel, and a
Keep on the lookout for
flooring dyed in any color to re¬ notes.

maceuticals.

tricity,

telephones

plastic case. For the future,
The "Green Hornet"
in plastic for car bodies,
The brief company notes above
furniture, building panels, pipes
and tubing, boats you never need give
you
something to ponder
to paint, bullet resistant vests, rail over but, before we quit, I have
pencil

$5.9

million

leum; when they talk about the
rails they mean transportation on
tracks; when
about

were

Burns Bros, in N. Y.

a

A
billion—up from $610 place linoleum or rubber tiles. chemical comets.
couple of
1925; and while the While you and I are dreaming years ago ammoniated tooth paste
whole trade appears to be grow¬ about these uses, the top chemical roared on the market leaving you
ing gross-wise almost 10% a year, corporations are deploying a mil¬ to repine how many fangs you
heavy chemicals are the drag, lion in capital to make 'em come might have saved if only it had
with the big dynamics supplied by true.
come your way sooner.
And this

about

petro¬

mean

1951

for

sales

Thursday, July 3, 1952

E. F. Peef Pres. of

plastic fountain pen, there are son stacks up weft* on finances,
five squeezable plastic bottles in growth, managements rewards to
the medicine
cabinet; the radio shareholders.

motor cars,

as

.

a

By IRA U. COBLEIGH
Author of

March 25, 1952 and see if you
don't agree with me that Mathie¬

..

phyll soared from 2% to past 26
in approximately the same time
period.
A
market
thrill
with

A. G.

Woglom Joins
Raymond & Company

chlorophyll!

Finally,
fashions

1946,

discernible

are

chemical

finance.

BOSTON, Mass.—Raymond &
148 State Street, have
announced that Albert G. Woglom,

In

Company,

12 chemical companies had

common

tion.

there

in

stock

as

Now there

1951, sale of

sole

capitaliza¬
formerly of A. G. Woglom & Co.,
In
has
become
$600 million of

are

over

only five.

chemical company debentures set
the senior debt style with coupon

associated

This rates
averaging 3^2%. Next most
year the stock has been split two
popular was the convertible 4%

organization.
Mr.
Woglom

its 4,168,000 common shares.

about
$2 billion, with
$300 million to be added for

their

with

(following the fashion of second
preferred, this investment will have the
Alkali which last year
chameleon
being
offered
by same teleBecause of this king size capital split two for
one, while
Pfizer, Victor, Pfizer and Merck. Even phone
the big lines were heavy acids, al¬
and
outlay,
acrylic
synthetic fibers Merck and Freeport Sulphur di¬
kalis, nitrogen, and coal tar de¬
by retaining 46% of earnings last teletype num¬
such as dynel and acrilan open up vided three for one).
•
bers as here¬
rivatives;
and
chemicals
were
year did not leave chemical treas¬
of growth which
Characteristic of the progressive'
consumed in 1925 in roughly this huge horizons
uries enough to grow on, so look
tofore;
New
might well parallel the spectacu¬ attitude of ACY is the recent pro¬ for more chemical
order:
financing like York to Bos¬
lar
leap of nylon consumption, jection of Mr. C.
W.
Bendigo the coming $100 million Dow con¬ ton private
(1) Pigments
from 20 million pounds in 1945
(new products department) * that vertible bond issue.
line
HAnover
(2) Dyes
to
probably 250 million pounds production of the new synthetic
2-4849, Boston
It has been the fashion of port¬
(3) Fertilizers
for 1952.
fibers will rise 30% in the 1950teletype
BS
folio managers to buy chemical
(4) Solvents
1953 period.
In 1950, total pro¬
shares
The March of Plastics
(5) Synthetic fibers
heavily in recent years. 189, and Bos¬
duction was 145 million
Albert G. Woglom
pounds; The
growth rate and researching ton telephone
The forward march of plastics by
Well, today, that order is vir¬
1970
he
predicts
a
billion
of new products have been the LAfayette
3tually unrecognizable.
First on is perhaps even more startling. pounds
of
non-cellulose
syn¬
8344.
These are
in addition to
our
1952 list would come syn¬ Using
as
a
base either phenol thetics; with special stress on the cause, but here as elsewhere in
the
thetic
market, selection
is vital. Raymond & Company's telephone
fibers, fourth, fertilizers; formaldehyde,
polystyrene,
o r aerylic fibers, in which'American
Draw a bead on the plastics, the
but numbers two, three and five polyvinyl chloride (fancy words,
CApitol 7-0425, teletype BS 259
Cyanamid is a leader.
fibers
and
the
wonder
would
be
brand
drugs,
new—plastics, these—hope I spelled 'em right)
and New York telephone WOrth
Somewhere around 25% of ACY
avoid crinoline managements, and
curative chemicals and synthetic plastics can be made, into films or
gross sales
comes
from Lederle
*
•* ".
you may wind up financially for¬ 4-5000.
rubber.
Three out of five, new¬ sheets; they can be made to stick
Laboratories, one of the smartest
comers on our
tunate, and boasting a safe de¬
like a super glue; built tough as
chemical style pa¬
research and merchandising out¬
posit box draped with the best
rade.
steel or bouncy as
ruhber; and fits in the
pharmaceutical trade chemical fashions!
they can be treated to resist heat, and creator of
aureomycin.
Just
The "Glamour" Issues
cold, water or acid. Just to switch another one like
that, and ACY
With E. E. Henkle
Another quarter century fashion from the general to the specific,
might start again to rornp on the
(Special to The Financial Chronicle)
note is a volume one.
Chemical there's an egg beater in my house market.
Because it spreadeagles
Gilbert J. Postley & Co., 29
the field, and cleverly combines
LINCOLN, Neb. — E1 i a s K.
New York City, an¬
Baker has joined the staff of E. E. Broadway,
science with salesmanship, Ameri¬
can't

throw

Protean

some

light

on

25

years

chemicals.

these

ago

in

1952..

one

Diamond

.

Werkmeister Partner
In Gilbert

Poslley

Investment
Company, nounces that John O. Werkmeis¬
Cyanamid may well belong on Henkle
Federal Securities Building.
chemical shopping list.
ter, Jr., has been admitted to gen¬
Of
the 50 most popular stocks held
eral partnership in the firm with
With Thomson, McKinnon
by 158 investment trusts as of
can

JULY

1, 1952

your

WE TAKE PLEASURE IN

ANNOUNCING THAT

which he has been associated since

MR. EDWARD H. NELSON
HAS BEEN

ADMITTED AS A GENERAL PARTNER
OF OUR

FIRM

12/31/51, ACY ranked

17th.

ORLANDO, Fla.

Not nearly so large but with a
brilliant growth record is Mathie¬

—

Newton R.

Prior

1937.

thereto he

was

with

Black has become associated with

Thomson &

McKinnon, 68-70 East Hickey, Doyle & Co. in that firm's
New

Chemical, major producer of Central Avenue.
and chlorine, and recent
entrant in petrochemicals through
absorption of Mathieson Hydro¬
carbon Co.
Complete capitaliza¬
tion after recent financing will be
$42 million in promissory notes, $4
million debenture
notes, 180,000
son

York

office.

alkalis

Bonner & Gregory
MEMBERS

YORK

NEW

STOCK

EXCHANGE

NEW YORK 4, N. Y.

30 PINE STREET

shares

of

ferred

4.25%

and

convertible

3,342,754

pre¬

shares

Semi-annual

Appraisals

Equipment Trust Certificates

of

common.

■MMaghaga,^

WE TAKE PLEASURE IN ANNOUNCING THAT

MR.

LOUIS

H.

WHITEHEAD

HAS BEEN ADMITTED TO OUR

FIRM

really burgeoned,
from $20.5 million in
oyer $91 million in 1951.
This big swing is somewhat mis¬
leading, however, as it combines
internal growth factors, with five
running
1946

PARTNER

Neergaard, miller
■

-1

■

members

new

york

stock

& Co.
;

JULY

1,

STREET

1952




lines

period.

Mathieson

Philadelphia School District Bonds

To

as

of June 30,

1952

has

methylate, agricul¬
tural chemicals, and hydro carbon
products—ethylene glycpl, ethy¬
lene oxide, and butane used in

Now available for

distribution

Write for your copy

synthetic rubber.

^change

Investment Advisers

44 WALL

original

in the

added sodium

established 1924
"

and

to

plant mergers
its

AS A GENERAL

City of Philadelphia

Net sales have

NEW

Mathieson is strong
with laboratories at

staffed
YORK

by

110

on

research

Niagara Falls

chemists

and

STROUD & COMPANY
incorporated

58

mechanics and operators;,with the
last word in apparatus and
equip¬
ment.

Here's

a

powerful

element, unreflected
ance

in

the

asset
bal¬

sheet. Get the prospectus of

PHILADELPHIA
NEW YORK

•

ALLENTOWN

•

9

PITTSBURGH

•

LANCASTER

'

J

Volume 176

•

I

l

rfftbtf

t>i' a

Number 5130

' ti* ^

.

a rs wr

"■

«iw W2.1"

•WfffWfl.wiT^rwI

I«M wtoWiUtmAa

www

i

The Commercial and Financial Chronicle

...

5

(5)

Steel

The

Electric Output

Carloadings
Retail Trade

State of Trade

Commodity Price Index
Auto Production

Industry

The

Business Failures

%,
as

;

American

election

J
of lower output,

reduced operations became

depending

directly

last

and during the week layoffs and

through
the

since

ever

dropped sharply in June
cut

February,

as

some

the

on

board's

seasonally

than—the

more

and about 4%

1935-39

adjusted index

214%

as

recorded

of—or

114%

a

It

if

even

the strike

is

settled

the

soon,

week that vacation and

inventory closures

are

shorten down time, and steel substitutions

his

being rescheduled to
being made wher¬

in

1944
formally

into

the

ravings of

few

who

rabble-rousers

a

ex¬

influence with the elector¬

as

whole.

a

Fair-Deal

From

abroad,

candidate Averell Har-

are

riman

by

some

miracle

settlement could be reached

a

Stalin's

alleged hopes that the
Republicans will win the election.
Our

this

week, states "The Iron Age" in its current summary, the worst
impact of the strike is still to come. After production is resumed
take

the

two

weeks

or

highest priority

again fill the

more

to

restore

the

After that

users.

the

previous

for

gem

of

steel

to

and

time

to

of

creating

welfare.

empty steel supply lines—including those of parts

article

spuriousness

take

flow

it will

has

again (in his Dallas
speech of June 27) "disclosed" Mr.

publication, they

Even if

will

finally

their

trying to capitalize for

are

no

ate

will be 11.4 million net tons of ingots.

even

and

prononents of General Eisen¬

benefit

ert

..

it

Mr.

From the domestic scene,

old-time

are

being tapped—for what they are worth.
But, notes
are fighting a losing battle. They can
longer forestall the steel famine; by week's end the strike loss

no

Commies

embarrassed

hower

Slitting and shearing operations are helping to
fully utilize stocks on hand. Conversion and gray market

this trade

V

the

warfare.

possible.

sources

trustees

ing

reserve

always

thority

the

over

of

appoint

its

us

all

acute-angled

entire

They

professors

in¬

and

their

are

names:

"Messrs. Sammis, J. Jackson,
Massey, Parkinson and Watson.
these

names

should

be

added

the

of such representatives of

Wall Street

as

President

M. Hartley

Dodge,

king Rocke¬

The

has' been

from

science

non—the

the
and

activities
see

They

of

the

to it that it

direct

university

serves

the in¬

terests of the monopolists."

Only

at

all

tional

point, after the
reader is half-way
through the
article, does he come to realize

admission

than

t

Eisenhower.

William

and

authors

book,

General
head

of

sensa¬

'Truman Merry-Go-

Columbia

of

"Thank

his

,you,"

he

try to read

in

the

a

years
I
a single book." "
perfectly clear that the

have not read
"It

is

.

bosses of Columbia

nominating

University, in

Eisenhower

for

the

concerned

interests

least of all with

of

science.

will of Wall Street.

cealed

approval,

York

With

the

'Times'

toward

spoke

continued

on

page

The domestic

as

auto

eye

on

keep such a watchful
election doings.

our

Moscow

output dropped about 3%.

industry wheeled out 91,886

and

matter of interest, and
particularly since the Moscow bu¬
reaucrats

General

publicans'

cars, compared with

94,347 last week and 116,263 in the like 1951 week.

as

is,to

Ike

vs.

Eisenhower,

the Re¬
front-runner,

twin

We take

pleasure in announcing that

Fremont w. robson

be

expected, is the most
Americans, whether
GOP's
or
Democrats.

villified of all

Steel

Output Scheduled to Show Slight Gain in

they

be

Dinned

Latest Week

+

The steel

day

nation

in

losses

through plant closings by steel

consumers

who

are

in

over the
visit in

the

only

press

the

to

villainous

hours

18

ears

my

recent

strike which started four weeks ago
today has cost
$1,500,000,000 in direct losses, estimates "Steel," the
weekly magazine of metalworking.
This sum, it adds, consists of
$178,000,000 in steelworkers'
wages, $583,000,000 in lost sales of steel companies and $750,000,000
the

into

radio,

during

(one widely circulated
picturing the General giv¬

cartoon

ing the

pleased to

announce

Two Wall Street, New York 5. N. Y.

and

S.f "satellite" babies,

U.

Italy, Greece, and Turkey,
are

F. It. Ash plant & Co.

activities

Continue(J, on page 39
We

us

my

Moscow, flaunted
and posters, second
"revelations" of our

warfare; was the
caricaturing
of
"Ike." The Russians' main "gripe"
is seemingly based on his NATO

of steel.

associated witii

now

a

germ

villifying

out

is

a

sooth¬

ing dollar-bath). Typical of their
propaganda technique as well as of

that

anti-Ike agitation is an outburst in

"Pravdathe

Mr. EDWIN F. PEET

which acts
the

of

has

been

elected

press,

President

as

daily newspaper
"the generalissimo"

government

which I brought back with
propoganda gem. The first

me as a

half

of this organization

of

two-column

a

taken up

with

Columbia
tailed

an

article

University,

Burns Bros. &
Dealers

37 Wall

in

Denton, inc.

"It is

Street, New York 5

no

with

de¬

opinion

Street,

accident

have

cans

Canadian Securities

Wall

that

that

off.

BURNS BROS. & COMPANY
Members

»f Canada

Toronto

•

the

University

by the resemblance of

capitalistic

Members: Investment Dealer's
Assn.

"This designation is Justified

only

—

Limited

Montreal




Toronto Stock Exchange

•

Winnipeg

to

a

Dig

enterprise,

Ottawa

Stockholders

June

30,

approved

tween

Knapp and The Ameri-

Webb &

the

1952

of

agreement

f

be¬
\

Superpower Corporation.

Descriptive Circular Upon Request.

Hettleman & Co.
Members New York Stock

Exchange

Members New York Curb

Exchange

private

but

also

.

by the generally kr»owr>
Columbia

University, like

other higher educational
•

^Superpower Corporation

Ameri¬

had a settled
Columbia
is 'the

"

BURNS BROS. & DENTON

INC.

of

long

Morgan University'," the article's
two-author correspondents sound

Dlgby 4-3870

Affiliated ivith

name

consummation

can

not

•

The American

is,

'documentation"

tool of

New

outburst against

showing
how that seat of learning is merely
a

WEBB 6- KNAPP,

controlled

-

tions

of

the

USA,

is

many

institu¬

under

the

direct control of the Wall Street

magnates."

ONE WALL STREET
.

of his

first steps: 'He threatened to dis¬

as a

Production suspensions due to steel
shortages and heat walk¬
outs had their effects last week

candidates

our

uncon¬

newspaper

regarding the Moscow atti¬

tude

parties

They"*

needed a faithful executor of the

public

Predictions for the automotive industry last week
by "Ward's
Automotive Reports" indicate for the months of
July and August
an
industry shutdown of from three to five weeks with layoffs
of up to 700,000 workers due to the steel strike.

the

post of Rector of the University,

issues,

suppliers and subcontractors.

"I

To tell the

nine

examine the

facts

book/

replied,

it.

last

became

University,
him

sent

on

the

to

now

Shan¬

the

Eisenhower

of

friends

New

.<

this

education.'

Round,' quote this episode: 'When

were

University.

con¬

or

dismal

completely justified.

Robert Allen

York

bia

ever

any

"And, to be sure, it is difficult
to imagine a man more removed

Company; George
Harrison, President of New York
Life Insurance; Douglas
Black,
President of the Doubleday and
Company Publishing firm; and
Sulzberger, owner of the New
the bosses of Colum¬

have

Ike, the Illiterate

shall

are

that I

making

General's

truth,

'Times'.

in

tribution to science

ington

Arms

Columbia

of

(Rector), he stated:

not think

do

feller and Chairman of the Rem¬

"Such

coat,
has been put

cap

Trustees

succeeded

these

are

Here

'I

the,
and

people en¬
dowed with such powers? Among
the trustees there is not a
single
scholar or teacher. They are all
representatives of monopoly cap¬
ital.

as

and

structors.'
"But who

cap

University appointed Eisenhower

train¬

elect

of

Board

au¬

the University

the

the

In

service

full-dress

general's

a

him.

for

military

a

strate-

phoney

disservice
Let

dwelt

this

The

'The

direction

the

process.

of

general is painted in

unusual

of

...

University.
Charter
?ays:

son-in-law of the oil

some

ever

that

,

Concerning the steel industry, "The Iron Age," national metalworking weekly in its current survey of the steel trade, stated this

more

recalled

disowning Communist backing.
Now again, this "red herring" is
being used in our pre-Nomination

a

quarter operations

be

place

on
him, and a doctor's gown
hangs from the shoulders of the
general.
In 1948, when the

so-called

the

To

was

the

buyers pointed1 out.

will

fellow-travellers,

future business outlook.
They said they saw little,
pick-up in the third quarter. The steel strike is cut¬
ting into output and jobs and shortages of the metal may affect

fourth

trustees of

University

The

clothes

and

the rights

are

the

disown

purchasing agents it is learned that industrial orders
and production dipped further in June, and
they hold a pessimistic
of

own,

our

of

powers

Roosevelt, who in the 1930s had
support from whereever it might come and refused to

From the

chance of

and

with

welcomed

sharp

further decline is indicated for

view

Com¬

front.

below May, 1951.

"Reflecting mainly the work stoppage at steel mills,
June," the board added.

"

Kellys, Prendergasts and Hagues on the home

fall of about 1% under April

a

on

villains

munists;
A. Wilfred May

average,

t i

a

and

other lines

was

i

o c

abroad, in¬
cluding Nazis

heavily into production.
May output of the nation's factories and mines

"Trulyunlimited

President

with

hower.

an

supervision

s

Friday that industrial
dipped in May and then

strikes in steel and

political

some

on:

and

the

of the university we saw a
large portrait of General Eisen¬

plausibility
to their
argument, the authors go

"guilt-by-as-

before.

sliding

b,y

facts to lend

point

''At the entrance to the library

Reflecting
the
characteristic
thoroughness in digging

up

this

At

hall

Russian

parties, in
charging

The Federal Reserve Board reported on

output,

t

ou

years

all

Although claims for unemployment insurance benefits fell to
lowest point this year, they were about 12% higher than a
year ago.
On the other hand, initial claims were less numerous
year

been

practiced

widespread in those industries
Compared with a year ago total

the

the

strate-

has

gem

industrial output dropped moderately from that
year's high level.
It was also about 10% below the all-time
high record set during
World War II.

than

week.

This

more

steel.

on

cam¬

paign stunt of smearing via accu¬
sations
of
popularity-with-the-r
wrong-people occupied our article

Total industrial production for the nation declined last week
a
result of dwindling stocks of steel.
It was the fourth con¬

secutive week

Eisenhower.

"Pravda" stooges "go to town" on
the General:

By A. WILFRED MA
MAY

Food Price Index

and

that its objective is the villainous

MOSCOW AND OUR ELECTIONS
The New Red Herring

Production

NEW YORK 5, N. Y.

Telephone: WHitehal! 3-8300

46

6

The Commercial and Financial Chronicle

(6)
I

Full extent of manifold
because requirements

for chemical products

complicated and hundreds of finished chemicals often
from

1950, are

stem

chlorine,

restrictive allocations,

or

in

serve

both

defense frequently
changes the ratio of demand.

United

in the

annually

and

peace

'

war,

which,

shift

can

its

lathes

the

on

be

chemical

requirements for defense planning
and
industrial development and

discarded

after

their purpose.

served

"That

is

why

facture

to military vehicles,

or a
tool

memorandum

a

and

their

derivatives

fan

of

out

through all manufacturing fields.

companying extracts from the

for

aren't

all

knowledge of
and

uses

the

chemical

one

these

a

rela¬

to

an¬

inter-relations

used

in

refrig¬

turn,

furic

carbon

acid,

both

is

highly

made

doubly dif¬

In

own

producers
on
each

dependent

a

the

sense

'industry is

best customer.' A pharma¬

of

is

facture

they

usually assimilated or
identity at some stage
processing or they may even

lose
in

TO

BROKERS

*

to

in

any

with

"Aluminum
dent

in

bath

a

is

sometimes

be

the

shortages
by a

overcome

basic

chemicals,
material

a

shortage of

one.

can

multiply and
spread swiftly through the whole
industry.
"For

example, chlorine is needed

to make

DDT, but it is also indis¬
pensable
for safe
and
potable

DEALERS

*

partially depen¬

of

are

stating the simple facts

to say

vide the kind of markets and
service that makes it
trade with us.

acid

bath.

"Sulfuric acid is used in almost

metallurgical

every

the

manufacture

ments,

processing

of

textiles,

An

experienced staff comprising 25 traders
ing firm markets in over 400 issues. Large

odd lots
•

A

blocks

i

or

securities

on

Hundreds

industrial

of

require sulfuric acid at

on

years

basis

of

trading

and

on

a

un¬

trading wire system with direct private connections
to
Boston, Philadelphia, Hartford, Providence, Port¬
land, Me., Cleveland, Chicago and Los
Angeles, as well
direct private

as

in

•

•

lines

leading trading

Working capital of
A

complete

•

manufacturing.
same diversely expanding
pattern can be traced with nearly
chemical.

any

"Sulfur, sulfuric acid, chlorine,
caustic soda, phosphorus, soda ash,
ethyl alcohol, benzene, naphtha¬

ammonia—to

basic chemical

and

on

in

financing

your

r£r™ntty to confirm
we know we

by

5

analysts

who

your

for

in local

your

to

transactions.

orders—we

ments

like

the

markets

opand

provide.'

of

and

finished

is

the

starting

qf the organic pig¬
It

toners.

is

a

com¬

145

manufacture

of

to

effort."
Chemicals Necessary to Other
Basic Industries

"All industrial production is de¬

pendent

of

crisis

when

is

ance

frantically

tions often arise from those whose

knowledge of the industry is in¬
complete:

accelerators

chemicals,

estimated

couldn't

just

few

a

perhaps chlorine,
nitrogen, be used to

fur and
trol

production

of

all

sul¬
con¬

chemical

end products?'

to

'If in

expanding industrial
a
whole, the place

as

start is with

steel and copper

aluminum,

would

and

and

sulfur

plish

nitrogen

ca¬

to

accom¬

a

corresponding expansion
industry?'
"Should the necessity for an¬
other sudden large-scale
expan¬
of

the

"The

BROADWAY, NEW

chemical

industry
arise,
Washington
might
again
ask: 'Why are so
many different
products involved and why is so
large an expansion needed? After
all, in the case of metals, there

with

metals

the

are

basic

and

YORK 5,

N. Y.

to

also dependent upon chemicals

get them into

form useful to

a

man.

"The
steel

of

manufacturer

and

ceramics, textiles,

rubber,

glass and

alloys, paper,

leather^ depends

the chemical processing of im¬

on

portant natural materials such
latex,

wood, sand

ores,

cotton, flax, silk and hides.
"Let's

how

see

chemicals,

S,

Jersey City
1

Clearfield

Albany

to defense.
Rubber

"Essential

for the

special quali¬

ties.

required
by
virtually
all
rubber products, both natural and
have

chemicals

tributed

substantially

is

extending

in

try

rubber

natural

and

synthetic

accelerated

meet

to

of

rubber

defense

rubber

"No

would

product

also

a

^av's ^ Co., Chicago,
&

effective

so

parasites

derivative

"Derivatives of
in

in

icals. Without sulfur, there would
have been

never
or an

canizes

rubber,

giving

elasticity

ness,

Antioxidants

long

rubber product

a

industry, because sulfur vul¬

make

duction.

tough¬

needed

to

of

natural

rubber.

Accelerators

time,

it

moldability.

are

life

the

and

speed

Reinforcing pigments

build

abrasion.

only three principal ones, and
few more are added, like
zinc,
lead,
tin,
nickel
and
chrome,
a

to

com¬

850,000 long

than

more

100 dif¬

ferent chemicals placed under al¬
location during World War II?'

'Why

now

do expansion goals

have

to

more,

including

be

of-a-kind
"In
asked

a

for

100

good many one-

cases?'

each
the

considered

war,
same

each

of

Washington
questions.

last

year.

duced

to

vitally
approximately 1,-

tons of natural rub¬

In

the United States

addition,

848,000

long

they

pro¬

of

syn¬

tons

thetic

rubber for all types

fense

products.

makes

it

aniline

the" colored

Synthetic

possible

for

the

of de¬
rubber
United

States to produce, if necessary, its
full needs economically via buta-

has
It

Continued

is

on

page

is

be

may

advertise¬

ments in magazines, in automobile
and

garden

hoses,

the

on

shelves of retail stores, and in the
medicine chest at home. Curtail

production of aniline and the

entire defense program and civil¬
ian economy will be affected.

"The

same

its

sort

of

pattern

ob¬

with

derivaties.

1-40

the

other chemical

Utica

are

ramifications

And

illustrative of
of

scores

of

products.
Expansion

Has

Members New York Stock Exchange and Other National
Exchanges
■

UNDERWRITERS and DISTRIBUTORS

BROKERS of

Special Problems
"Because

Cleveland

many

cessing plants
to

are

chemical*

pro¬

not convertible

products that may be

more

in

BANKERS

Established 1925

of INVESTMENT
Chemical
to

Morgan & Co., Los
Kraus,

INVESTMENT

their

Private Wires

•

and

wear

contributed

the

ber processed in

"

were

"Chemicals

man¬

plete.'

'Why

resistance

aniline.

of

pro¬

up
curing
faster pro¬

possible

against

sheep,

be

worth much without added chem¬

sulfur

proved

and

home needs.

sulfanilamide,

intestinal

of

producing

of aniline.
Aniline goes
into the manufacture of the whole

series

the

supplies
in

and

more

de¬

a

con¬

to

achievement of the rubber indus¬

and

Providence

Coast-to-Coast Wire Service
through direct private lines

Angeles, and Ball, Burge

tetryl

are

essential to industries most impor¬

and

natural

as

clay,

and

rivative

varied end uses

TWX-NY

Hartford

both

oil,

materials

depends. But metals and oils

gram
are

are

anthraquinone and its
derivatives,
with
beta-naphthol

4-2300

Boston

of

explosive

least

at

and

the chemical

sion

for

been

which the nation's defense pro¬

on

chlorine

more

and

rayon

have

account

"Together
chemicals

more

"

pacity

upon

process

broadest

of the total national product.

20%

synthetic,

"

'Why

in the

rubber, paint, glass,

as

industrial

ques¬

chemicals,

chemical

for¬

a

sought,

extent

some

The

definition includes industries such

tant

"In times

to

chemicals.

industries, which

synthetic rubber.

and




reasonable level qf consumer

boron, cobalt, mercury and
ganese, the list is practically

Spread

basic, direct acid,
sulfur, vat and oil-soluble dyes.
It is also the starting point in the

tains

Investment Securities

Port.and

the

Illustrates

Aniline

and

ponent

tires

would

Incorporated

Philadelphia

all

"

use.

funds

J. Arthur Warner & Co.

a

products.

products.

the

Telephone WOrth

in

if the
the industry is
be integrated into the defense

if

intermediates

found
payment

to you the excellent

can

120

discernible

not

are

econo¬

has

staffed

leading services and valuable file

unlisted

service

materials

raw

the nation's

$1,500,000.

than

unit

Arrangements available for
aid you

mention only , a

"From aniline, one of the sim¬
plest coal-tar intermediates, stem
literally hundreds of more com¬

plex

a

in

banks, brokers and deal¬

400

to

unlisted securities—all available

on

plants

against

an¬

however,

understood,

drugs, including
sulfapyridine, sulfathiazol, sulfaguanidine,
sulfadizine, sulfamethazine, and sulfamerazine.
Phenothiazine,
which

centers.

more

research

have available all the
data

stage

some

"The

vast

A

ers

processes

of

processing

built

nationwide

a

daily volume which itself aids in making good markets.
•

as

the

the problem. They must

anti-oxidants indispensable to the

traded.

trading "know how"

listed

maintain-

justified

understand

to

easy

mula to allocate materials in bal¬

hydrochloric acid and ethanol.

as

material for 51

following:

•

in

and

making other key chemicals such

Interlacing

swift and effi¬

chemical

new

ma¬

military, transportation, mining,
petroleum, steel, and maintenance

in

process,

of

dyes, pig¬
pharmaceuticals,
in
the

Aniline

that we can pro¬
advantageous for

we maintain to assure
you
cient service in the unlisted
market include the

do

Copper ores
are
concentrated
by sulfur-con¬
taining flotation reagents.

my

you to

The facilities and services

as

pigments
and
synthetic
Woolens are dyed in

sulfuric

a

in Unlisted Securities

we

sulfur,

be

time, alloca¬

same

goods.

—fan out into

Unlisted Securities.

to

be

and paper depend on

and

Wc know it is
important to you and your customers that you obtain
the best markets and the best
service for your customers' orders in

"But, at the

of

finished

think

cryolite

synthetic

lene, aniline, • phenol, beta naphthol, phthalic anhydride, methanol

BANKS

A Word about Your Orders

we

the produc¬

sulfur because it is made

on

few

And

and

which requires sulfuric acid. Pulp

manu¬

comprehend

simple switch, but with respect to

are

their

of ingredients
and

of

up

of alternative processes,

many

because

ability

keep

interlacings
within the industry itself. Because

main

manner,

manufacturers.

the

to

a

fantastically complex

can

same

chemical

beyond

"Metals are shaped and fabri¬
cated into myriad forms for
many
different end uses, but

this

rubber

petroleum,

white

changes

derivatives.

uct in

steel,

industries.

petroleum

detergents.

compounds from perhaps

individual

sulfur

they re¬
recognizable and weighable
as metals. Chemicals
usually can't
be traced through to the end
prod¬

the

do

so

.

industry can meet high defense
requirements, not wholly separa¬
ble from growing normal indus¬
trial needs, and provide reserve
capacity for contingencies.

must

It

sul¬

primary

but

"Thus an expansion of its total
plant is the only way the chemical

other demands, including those of
the atomic energy program, the

score

de¬

and

disulfide

acid, in addition to fertilizer
are taken into account.
Agriculture
depends on sulfur,

ferent

most

of carbon tetrachloride and hydro¬
fluoric acid, which in
mand

furic

production,

manufacturer,
for
ex¬
ample, requires hundreds of dif¬

product

a

sul¬

ufacture of rayon and cellophane.

other.

people think of refriger¬

effective chemical

and

sulfur

for

uses

sulfuric

nothing else.

tion of aviation gasoline, the man¬

v

task

ceutical

erators and air coolers is

dustrial

times be increased, but a
acid plant can make

terials

its

a

stood

can

fining of

important but rather

on

ficult because chemical

formaldehyde.

"Few

total

the

to

an

be under¬
only if the hundreds of in¬
of sulfur

relatively inflexible. To
extent production can some¬
are

tion of steel and other critical

effects of

the

grasped,

shortage

are

is

ants in terms of sulfur. Yet

importance

can

Directly or
indirectly, sulfur finds its way
into .the pickling of steel, the re¬

"The

generally not
product of phenol

as a

of priority

"The
economy

which

pated.

buildings and equipment.

recognized
and

plants
Chemical

Sulfur—A Key

plant

up

obscure products cannot be antici¬

icals most often lose their identity
in the finished product. A plastic
head

of

' If

a

battleships

Ttoe evidence is visual. But chem¬

distributor

intimate

industrial

other.

that steel is needed for tanks and
and

difficult. To effect

so

distribution

and

broad

all

re¬

tionship

trucks

the

materials, authorities must have

"It is not difficult to understand

and

shortage

equitable

port:

and

quickly to produce ordnance
parts, large numbers of chemical

released

The full extent of this
penetration
is vividly illustrated irj the ac¬

guns

typewriter

aerivatives.

planning of
by chemical requirements for defense
is so complicated and the problems
Manufacturing Chemists' As¬
sociation points out that chemicals of allocation of chemicals in times
use,
the

Thursday, July 3, 1952

.

maximum power of

presses from passenger car manu¬

production of dozens of vital

have

they

not

and

would therefore drastically curtail

Commenting

.

swers—or

j "Unlike the automobile industry

States, and the requirements con¬
tinue
to
mount.
A
shortage of

single intermediate.

a

in

of aluminum

duction

chemicals

most

chlorine, roughly twice the pro¬

consumed

diverse and

are

expansion of chemical
plants and facilities in time of
emergency is imperative. Although

bleaching preparations and dozens
essential both in
peace and war. Tv/o million tons

of

changing conditions,

overall

an

of other products

of chemical products hard to trace

uses

demand1 with

community, water supply systems.
It is used to make drugs, vat dyes,

Chemicals Fan Out Through
Whole Manufacturing Field

.

.

SECURITIES

BONDS, STOCKS, COMMODITIES

Home Office: Atlanta

•

Phone LD-1 59

14

"4LW

Volume 176

Number 5130

.

.

t afcOTji

t*rw

JfTftWl. 40ACSMHVP

The Commercial and Financial Chronicle

.

(7)

A Review of

goods of all types were in free
supply., Inventories were in a nor¬
mal relationship to sales and the
Cost of Living Index had
beqp
virtually stationary for a year.

Inflationary Forces

By THOMAS D. SEARS
Investment Counsel,

Predicting

Santa Barbara,

Calif.

The Government

leveling off of productive capacity and consump¬
future, West Coast investment analyst

a

ness

as

no

whole

a

inflationary pressures. Says profits from busi¬
are not
likely to rise, and in some cases, may

In

May, 1951, and again in Au¬

gust,

1951,

the

Financial

"Commercial

Chronicle"

detailed studies
forces.
In

my

and

inflation

careful

material
t

articles,
my August,
1951
study
the

with

d

p r o

year

in

ex¬

Thomas D. Sears

ofcon¬

cess

sumption

though

will

latter

record rate.

n

has
:

been

at

expansion

any

nual

since

and

quite thoroughly jus¬
stated,

as

inventories

be

where

a

helpful
where

in

in

have

we

and

are

*

material

will be made

would

ordinarily
(1)
period of liquidation to ings:
the economy into a more sumption;

call for

bring

been,

1

establishing
where we
headed.

are

we

Table

In

position.

:

such

any

(3)

The statistical
below in

<!(3) That the rapid build-up
in defense production will
prevent
occurrence

on

a

.

data

that

in

Establishing

Postwar

r

presented

are

general order.

Difficulties

large

scale.

three main head¬

on

Production;
(2) Con¬
Monetary Factors.

a

balanced

a

In the years which have fol¬
"(4) That if defense production
lowed World War II, one of the
as
scheduled there will
greatest
difficulties
confronting
relatively high rate of busi¬ the
economist in making his longness
activity in the winter of 1951term
surveys
has been that of
1952.
establishing a postwar norm as a
"(5) That the great and
rapid basis for estimates.
The
basic
,

our

capacity to produce figures of

will make it possible
to fit the de¬
fense program as now
into

ing

our

about

a

So

shortages

or

noteworthy

bringing

increase

distorted

by

the living costs.

covered

on

increase

in

expenditures
the

$60

billion

would call for

ing

unless

enue

defense

and

measurably

new

it be
a

aid

of

not

rev¬

opened up.
That the notential

tionary

infla¬

pressures have been

over¬

,"(8) That there is
threat that
may

our

outstrip

a

long

tendency

war

to regard

inflationary

trend

the post¬
as

•

exoraoly

an

in-

persisting phenomenon,

rate
of

at

were

$20

over

the

the

an

an¬

billion

in

base

period. Busi¬
expenditures for new plant
equipment had advanced by

ness

and

$8

of

billion

struction

and

residential

contracts

had

fear

left

us

been

accum¬

satisfied

anticipatory
shortages was

of

Statistical
with

the

studies

impression

first five months of
a

ing,

there

12-month

were

at

after

1950

period. A large
consumer

capacity in

were

postwar

been

com¬

principal exceptions
housing, household equip¬

and

boom

in
was

automobiles

Merchandise

and

If

in

the

normal

a

rate

A

base.

for

part

the

a pro¬

rise

is

ac¬

for
by price increases
during the period but, after ad¬
justment for that factor (15% in¬

in the Wholesale Price In¬

dex) and for the rise in farm out¬
put,

the

gain tallies closely with
increase in the Federal

14.5%

a

Reserve
trial

Board's

Index

Production

of

Indus¬

which

is

a

measurement of units rather than

of dollar value.

From

a-

production

standpoint,

this $56 billion margin would ap¬
pear to constitute a fair measure¬
ment of our excess productive ca¬
pacity at forced draft at the price
level which prevailed about July
1, 1951. During the 10 months

which

there

have

has

followed

been

no

that

date,
measurable

increase in unit production as re¬

vealed

by

Board

the

Federal

Production

Gross National
in

dollars,

lion,

Index

has risen
The

rise

some

in

1953, the

Quick Bids

on

•

DEALERS

Most

Southwestern Municipal and
Corporate Securities

by

$14

bil¬
the

industries

consumer

garding

the

flationary

which

the

plus

services

increase

and

of

this

Meanwhile,
duce

has

our

available

show

at

been

further

program

Creasing

our

of

most recent

that

billion

level

amounting to $14 billion,

the

Commerce

of

the

the

means

suggesting

that

J.

£rvin

John

C.

Stephen

Board's

Walter S.

Denning

each

Kline




Randolph 6123
DL

91

personal disposable income (in¬
after taxes, etc.) is now at
annual rate of $226.3 billion*
15.2%, above the base period

come

or

The lower rate of increase in dis

terms

of the

crease

from

armament

billion

the

present

rate

of

ceived

spending stimulus to the

economy.

the

rated

to

spur

less
it

in the

has

months

to

in

Furthermore,

are

Index

are

non-profit

v

pension

trust,

Our

years

the

following

year.

with

qualifies

insurance

us

as

securities

specialists in this

for

group.

Arden Farms Co. Com. & Pfd.

Arizona Public Service Com. & Pfds.
Bareco Oil Co. Common

Bullocks

be

that

is

the

about

segment

economy

were

of

Utility Deb. 5V2S, 1952

(Series

Specified)

Disney (Walt) Productions Com. & 4s, 1960
Fullerton Oil Co.
Interstate

Baking Corp. Com. & Pfd.

Pacific

American

Pacific Mercury

Investors

Television Mfg. Corp.

Plomb Tool Co. Common

Plymouth Rubber Co., Inc. Common
Puget Sound Power & Light Co. Com.
Seattle

Gas

Co.

Common

Tiffany & Co.
Universal

Pictures

our

Statistical

Co.,

if

the

country's
producing at its
ar¬

at by adding 15% to the
Federal Reserve Board's Index as

Information

Inc. Warrants
on

Request

ERNST & CO.
Members

billion

top potential. This estimate is
rived

2%% & 3% Pfds.

now

value of

$350

Common

Capitol Records Inc. Common

in

means

Inc.

California Electric Power

Central Public

and

New

York

other

120

Stock

Exchange

leading Security

New

York Curb

Exchange

and Commodity Exchanges

Broadway, New York 5, N. Y.

231

So.

Private

LaSalle St., Chicago 4, 111.

Wires

institution,»
or
welfaro

six

ex¬

within

identity

many

in¬
ami

in the
unincorpo¬

savings, as construed
Department of
Commerce,
in¬
premiums, payments on
mortgages or other indebtedness and a
thing
called
"statistical
discrepancy."
The figure also includes liquid savings
but actually the savings figure, as com¬
puted
by
the
Department,
is
not
a
measure
of
liquid
assets
available fcr
spending.

the

cludes

than

past

this

sources,

personal

TlNet

by

activity

come

the

we

been

of

business,
private

all

government

"personal"

as

funds.

It is thus apparent that

additional

from

Included

compilation
*

from

persons

transfers

business.

figure would add
$10 billion, or 20%, to the existing
Federal

by

cluding

expenditures to the $60

annual

Federal

Index

-

is attributable to

period. Personal expenditures
ordinarily correlate very closely
with the figures of disposable in maintained over the year to fol¬ come.
As
revealed in Table 2,
low at least. It is probable that the such
expenditures
approximate
$60 billion top has been set be¬ 95% of the disposable income in
cause thisiigure is
generally rec¬ times of relatively high busines;
ognized as the maximum burden activity leaving a residue calle«l
which could be - borne over and "net personal savings"! amountabove ordinary government ex¬
Continued on page 3$
penditures
without
dangerously
large Federal borrowing. The in¬
■"Personal income is current income re¬

the neighborhood of
in contrast with the present

would

Shilg
Bryce

un-incorporated busi¬
Department's figures

''stretch-out" plan, this ob¬
jective should be reached dur¬
ing the fourth quarter of 1952 and

productive

output rate approximating 220. It

Officers:

The

and sala¬

incomes from,

the

by July,
will
completed. This

Gross National Product in dollars

Dallas i,Texas

and

the

ultimate

that

total

our

in

also

Fraetojian Building

wages

of

figure,

defense

presented

survey

three-fourths

240

Corporate Stocks & Bonds

excess

period

objectives the rise in taxes. Personal con¬
sumption expenditures are now at
spending
pro¬
grams which
range
from
$55' the annual rate of $209.6 billion,
to
$60 billion per year.
Under 13.8% above the rate of the base

against

this expansion program

probably

Texas Municipal Securities

in

year)- :posable income

past

$257.9 bil¬

the

measure the
present annual level (and the in¬

during

20%,

increased

and

rents

of

of

rate

This figure is $43.4 billion,

nesses.

is; important to

crease

to -be

annual

about

ries

39%.

or

2) show personal,
running currently

pre-Korean base
reflecting higher

July'l, 1951

of

the

or

govern¬

$50 billion level. This
represents an increase from the

capacity by about 20% so that we
might have a "guns and butter"sized economy in which we could

Reserve

1924

income

pro-1

Commerce-

of

(Table

in-

industrial production

capacity

incorporated

ESTABLISHED

figures

increased

that

was

for

construction.

Department

a

capacity to pro¬

steady rate. It will be recalled

1952

m
Gompany

expenditures

Business

residential

first "quarter of 1952 and, by May,

It

for

(4) Individual expenditures for*

in¬

expenditures for defense, in¬
cluding foreign aid, were at the
annual rate of $47.2 billion in the

$36

expenditures

Business

the

ment

in

Gross Product expansion.

figures

Garrett

of

as

excess

government

employment, account for all of the

be

re¬

to

reappearance

forces—and

the size

were'

ex¬

plant and equipment.

(3)

question

our

post-'armament business picture as
well—will be suggested by relat¬

data

consumption

of government expenditures.

armed

of

(2)
new

arising from increased Federal

that

fact

(1) Personal
penditures.

expansion of inventories.
to

answer

be strong industrially and mili¬
tarily without denying the civilian
population. A recent Department

ORDERjS EXECUTED IN ALL MARKETS

pre-

Consumption
The

ing

on

are:

potential will be

excess

accom-

present

production facilities. These factors

$66

higher than that.

upward movement of wages
and salaries in all sections of the

a

pro¬

over

the

penditures will be relatively much

the

approximately matched the rising

at

excess

of

excess

be

can

our

increase materially and to place
insupportable demands upon our

Korean norm and, upon comple¬
' tion of the expansion program in
even

spending

pre¬

total,

during the period is ex¬
by declining activity in

plained

rate

our

but

Federal Reserve Board's Index did
not

of

figures
that the

the consumption side of the ledger
to ascertain if they are likely to

that the

may assume

in¬

will

and
prospective productive set-up, we

opera¬

Reserve

Product, measured

4.3%.

or

we

value

the

show

within

lion.*

pre-Korea

this

of

was

when

outlays

musLexamine the other factors

armament effort. The

counted

ment

DISTRIBUTORS

dated

15%

our

time

as

above

defense

foregoing reasoning has

validity,
dollar

capacity

that the first goal of our rearma¬

UNDERWRITERS

sented

at

during that
$16 billion in¬

total, these figures indicate

where

being prolonged by

credit.

easy

the

The

in

ment

the

of

expansion 'had

Inasmuch

exist¬

Korean

fully at work and
latter date (one year

Korea) one-half of

the

Federal

cease.

during potential to the size of, the

ductive output valued at $56 bil¬
lion per year in excess of the

population,

bulk

great

the
that

con¬

business inventories. In

the

pleted.

the

of

of
in

creases

was

the

The

plant

At

reasoned

time

months

Product

over

up

occurred

period

in

crease

needs that had been built
up dur¬
ing the war had been satisfied and

con¬

"(9) That among
investors there
is a

eco¬

which

factor.

the

wartime

part of the accumulated

range

capacity to

in

constituted such

capacity to produce

our

sume.

when

needs

a

that

estimated.
v

a

have

were

"(7)

forced-draft

(wartime) is fully

It is also necessary that
time of budgetary balance,

period

ulated

deficit financ¬

sources

legislation

reflected.

beyond and one
figure buying in

annual

some

reform

nomic pressure

basis and there will
be no signif¬
icant expansion in
total
money
supply during that period but that
any

to render them

as

period be one in which the re¬
distribution of wealth and income

cash

a

and

It

"(6) That the 1951-1952
budget resulting from
of Federal
expenditures will be
(prewar)
and

approximately

inflationary

useless in the postwar pe¬
is essential that this base

riod.

in

have been

prewar years

planned other influences
economy without creat¬ almost

acute

expenditures

crease

Norm

proceeds
be a

growth of

1950,

conflicts

"(2) That the high level of loans ,the interest of simplicity, the study

vand

June

national
economic scene has been packed
with
abnormality.
In the year
which followed Korea, a business
and consumer buying spree set in.
By mid-1951, personal consump¬
tion

made

postulations

that

is

ductive potential is now

Production

Since

for

passed

outbreak

adding 7.5%

1951.

1,

it

the

at

ence

rep¬

A condition of balance had

excess

have

July

date,

manufacturing

billion

out¬

to

seem

r>

months

statistical

even

the

as

relatively normal situ¬

a

$5 billion.
Defense expenditures
mg evidence, it now seems appro¬
by government (for military hard
bate
to review and
re-appraise •goods) had increased by an esti¬
the economic and political forces
mated $7 million. Production in
which are at work and to make a all quarters had been
stepped up
new estimate of our
position. The smartly but, in spite of avid buy¬

been

running

the

opportunities
■

the

sup¬

(particularly in

the presence of much

m

ction

u

in

leaders)

.vents have

"(1) That for

has

that

judgments were

tified

conclusions:

a

and

profit."

following

over

attitude

the

.Ten

basic

the
not

market

hese

of

holdings

weigh

these

period may oe caken

and

pleasant
That a

very

process.

does

involved

stock

the

a

profits

evidence

risks

in

closed

in

this

of

pre-

d

e

as

the

port

statistical

s e n

tnat

ation.

high

appraisal

trends

economic

and

to

accessory

summarizing
the

consider

high dividends

published

on

to

former

and

National

tive.

been re-established.

md

1950

of

increase

resenting

investments in equities.

new

value

changed
significantly for three
years.
The consumption level at

economy,

proach toward

budget,

in

Gross

the

money in the country had not been

Concludes top of boom has been attained in the
and recommends a much more sober ap¬

lower.

go

civilian

new

operating on
the national

debt had undergone no expansion
since
1945
and
the
supply of

tion trends in immediate

foresees

balanced

a

was

it stood
to

7

to

Los

Angeles

and

Chicago

«•' (8)

The Commercial and Financial Chronicle

Kewanee Oil

..

Thursday, July 3, 1953

•

Company—Study—Troster, Singer & Co., 74 Trin¬

ity Place, New York 6, N. Y.

Dealer-Broker Investment

—Francis I. du Pont &
Also in the
sibilities

Recommendations & Literature
It

understood that the firms mentioned

is

send interested

to

will

he

and

Co./l Wall Street, New York 5, N. Y.

issue is

same

a

tabulation

a

list of Special Situations

Crude Oil

of the

with

Reserves of 25

McGraw

pleased

Co.—Memorandum—E.

Electric

Hutton

F.

&

York 5,

N. Y.

Mohawk

Business Machines Corporation—Analysis—J.

lar

Co.,

Wall

14

Muntz TV, Inc.—Bulletin—O. B. Motter &

Street, New

reference

May &

Showa

to

Industry

Co.,

in Japan—Analysis with

Electric

particu¬

135 South

Industry

Co., Ltd., Nitto
High-Pressure Industry

Ltd., Toyo

chome, Kabutocho, Nihonbashi, Chuo-Ku, Tokyo, Japan.

&

Chemical

on

In

Ill

25

S. Aries & Associates, 400 Madison Avenue, New York 17,

June 30,
Broad

Certificates—Semi-annual

appraisal

as

9, Pa.

Also available is

a

of

Pacific
&

Investments by Foreign Residents in Japanese Securities—Tab¬

Street,

by industries—The Nikko Securities Co., Ltd., 5, 1chome, Kabuto-cho, Nihonbashi, Chuo-ku, Tokyo, Japan.
tabulation

a

of

Stock

of major listed stocks

range

Price

Index

Public

Products

American

is

a

Company'.

Taylor Oil &

Gas

Co.,

Republic

Company—Analysis—Conrkd, Bruce & Co. of Los

(Angeles 14, Calif.

Memorandum —pacific Northwest Co.,

to Chi¬

Cement Co.—Analysis and "review of the Cement
Industry—Lerner & Co., 10 Post Office Square, Boston 9,

Natural

Mass.

Shops—Bulletin—McCarley & Company, VanderHotel, Asheville, N. C.

bilt

Standard

Gas

System

—

Analysis

Kali),

—

Broad Street, New York 4, N. Y.
Sterling Oil of Oklahoma — Memorandum

Transcontinental Gas Pipe Line Corp. and Stone & Webster,
Inc.

Voorhis &

Co.,

25

Corp., 52 Broadway, New York 4, N. Y.

Texas
&

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

National

Quotation

Bureau,

Hunter Securities

nual

Club

of

Philadelphia

Coal

Company—Circular—S.
&

Oil

field day at the Huntingdon

Valley

Country
Pennsylvania.

Abington,

Club,

City, N. J.)
Bankers

Association

Annual Convention.

Oct.

5-7,

1952

(San

Francisco,

Calif.)
Association
Firms

of

Board

meeting

Stock

of

the

at

Exchange

Governors

Mark

Fall

Hopkins

(Los Angeles,

Calif.)

Firms

of

Board

Oct. 19, 1952

Co.—Memorandum—Smith, Barney

Co., 14 Wall Street, New York 5, N. Y.
on

Oct. 8-10, 1952

Stock

of

Exchange

Governors

Fall

Weinberg & Co.,

Also available is

Woodley Petroleum Co.

National

ciation

(Miami, Fla.)

Security Traders Asso¬

Convention

at

the

Roney

Plaza Hotel.

1

Wall

Street,
A

York 4. .New York.

and

Producing, Refining

Distributing Company

Private Placements—1952 Year-Book of Private Placement Fi¬

nancing—E. V. Hale & Company, 141

Sioux Oil Co.

West Jackson Boule¬

vard, Chicago 4, 111.
Problem of Inflation—Discussed in

"Employee

Benefit

Plan

short bulletin

new

Bulletin"—issued

by

NSTA

entitled

Johnson

&

COMMON STOCK

Notes

Inquiries Invited

Higgins, 63 Wall Street, New York 5, N. Y.
sji

»:«

*

JAMES M. TOOLAN & 00.

Allis-Chalmers

Manufacturing Co.—Analysis—Paine, Webber,
Jackson & Curtis, 605 North
Broadway, Milwaukee 2, Wis.

American
-

Airlines,

Inc.—Brief

analysis—Faroll & Company,
Street, Chicago 4, 111. Also available are
United States Freight Company.

209 South La Salle
data

Bank

on

of America—Booklet

fornia

Investment Record—First Cali¬

on

Company, 300 Montgomery Street, San Francisco 20,

California.

Chicago

BOND TRADERS CLUB OF CHICAGO
Traders Club of Chicago, Inc. held their 26th an¬
day at the Chevy Chase Country Club on June 28.
275
members and guests were in
attendance, with the temperature
about equal to the average golf score—101.
However, relief was

obtained
In

Carpet

Frobisher
111

Gypsum
Limited

Also available is

an

—

—

Aetna

Securities

Chrysler — Analysis
Beaver Street, New York
4, N. Y.

Boston

vs.

The

guests

Corporation,

GOLF

WALL

CO., Inc.
STREET

NEW YORK 5, N. Y.

EVENTS

Guests
Prize:

SUGAR

1st Low Gross—Mark

Ronson Table
1st Low

—

5, N. Y.

Teletype NY 1-2630

LAMBORN &
99

Stuart

(Cowen & Co., N. Y.)

Lighter

Net—(Peoria System*) T. Spoehr__

H. Hentz & Co., 60

71
Raw

—

Refined

—

Liquid

68

Exports—Im ports—Futures

Members

Radio—Circular—Raymond & Co., 148 State Street,

Cup & gr-yrite

9, Mass.

1st Low Gross—Dave Schwanz (Schwanz & Co.)
Umhrella

International Cellucotton Products
Mitchell &

Kansas

HAnover 2-9335

Car Bag

Analysis

STREET

YORK

swimming pool and the air-conditioned bar.
golf prizes, 40 other prizes were awarded,

Scores for the golf tourney follow:

analysis of

Co.

Broadway, New York 6, N. Y.

General Motors

Hoffman

the

a delightful
luncheon was served in the patio.
enjoyed southern fried chicken for dinner.

Co.—Analysis—Eastman, Dillon & Co., 15 Broad

Street, New York 5, N. Y.
National

in

WALL

NEW

addition to the

and

Authority Revenue Bonds—Analysis—CrutCo., 209 South La Salle Street, Chicago 4, 111.

Cinerama, Inc.—Analysis—P. de Rensis &
Company, 131 State
Street, Boston 9, Mass.
Firth

67

The Bond

nual field

,

Transit

tenden &

City

Co.—Memorandum—Remer,

Reitzel, 208 South La Salle Street, Chicago 4, 111.

Southern—Analysis—Cohu

&

New

Co., 1 Wall Street,

York 5, N. Y.
Also available is a
Scranton Spring Brook Water Service
Co.

memorandum

on

2yfd Low Gross—J. Allen

Carafette

(A. C. Allyn & Co.)

Net—(Peoria System*) Paul Bax (1st Boston)__
Ronson Table Lighter
2nd Low

Net—(Peoria System) W. Webber (A. G. Becker)

Net—(Peoria System)D. J. Guild (A. C. Allyn)_
Net—(Peoria System) D. Muller (Harris Upham)
5th Low Net—(Peoria
System) Bob Strauss (Daniel Rice)
4th Low

6th Low Net—

Kewanee Oil

*

.

9th

T enriessee Production
on

Request

Members

74

N

Y

Security Dealers




(Only
Bogey.)

golf prize to

one

any

71

New

York

71

New

71

Commodity

York

Chicago

72

72

"The

holes

will

holes

is

Peoria

be

the

person,

(Ames Emerich)

not including the Blind
...

Association

Trinity Place, New York 6, N. Y.

York

New

Stock

Exchange
Exchange

Exchange,
Board

Orleans
And

Exchange

Curb

Cotton

of

Cotton

other

Inc.
Trade

Exchange

Exchanges

Dozen Golf Balls

Closest to Pin from 9th tee—Art Benton

Troster, Singer & Co.

Members

71

v

1

H. Hentz & Co.

71

Low Net—

(Peoria System) R. Wernecke (Paul H. Davis)
Net—(Peoria System) O. Strong (1st Natl. Bk.)

1856

>

70

New

10th Low
"Prospectus

Established

68

.

(Peoria System) L. F. Winterhalter (1st Natl. Bk.)
7th Low Net—(Peoria System) R. S. Reed
(Ames Emerick)
8th Low Net—(Peoria
System) Erzberger (Smith Burris)

Natural Gas & Oil

67

,

3rd Low

Primary Markets

DIgby 4-2727

72

75

1st Low

Half Dozen Golf Balls

*

'

an¬

meeting at the Ambassador Hotel.

tion)—Descriptive circular—Hettleman & Co.,
New York 5, N. Y.

Averages, both as to
a
13-year period—
46 Front Street,, New

over

Inc.,

Bond

Association
—

Street, New York 5, N. Y.

Pacific

memorandum

a

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

Sept. 26, 1952 (Philadelphia, Pa.)

Webb & Knapp, Inc. (formerly American Superpower Corpora¬

used in the National Quotation Bureau

market

Assurance

60 Wall

Transmission

and

Life

Sun

Industry—Analysis—Hill Richards
Co., 621 South Spring Street, Los Angeles 14, Calif.

yield

Municipal Bond Club of Chicago

Saco-Lowell

ican Natural Gas Co., Tennessee Gas Transmission
Co., Texas
Eastern Transmission Corp., Texas Gas Transmission Corp.,

Jones

Rocky

-

Summer
Country

Hotel.

Shamrock Oil & Gas Corp.—Sutro Bros. & Co.,
Broadway, New York 5, N. Y. Also available is a review
the Pipeline Companies, with special reference to Amer¬

120

Gas

Denver

annual field day at the Knollwood

American

Riverside

Corporation,

of

Sept. 28-Oct. 1, 1952 (Atlanta

Co., 210 West Seventh Street, New York 7, N. Y.

—

Club

Mountain Group of IBA
Frolic at the Park Hill

Country Club.

Exchange Building, Seattle 4, Wash.'

Gas Co. and

&

Savery Hotel).

Service

Angeles, 530 West Sixth Street, Los

curities Exchange.
Natural Gas Industry—Review with special reference

Natural

at the

Aug. 22, 1952 (Denver, Colo.)

Investors—Memorandum—Dempsey-Tegeler

Pope & Talbot, Inc.

and

the Tokyo Se¬

on

York 4, N. Y.
Also available
Puget Sound Power & Light Co.
New

on

Indiana

Packard Bell

ulation

of

at the

Sept. 19, 1952 (Chicago, 111.)

Chicago & St. Louis—Memorandum—Hirsch & Co.,

Broad

Cellucotton

is

Mass.

Company—Analysis in "Business and Financial
Digest"—Loewi & Co., 225 East Mason Street, Milwaukee 2,
Wis. Also in the same issue is an analysis of International

Laird, Bissell & Meeds, 120 Broadway, New York 5, N. Y.

cago

Day

Co.—Analysis—Ira Haupt & Co.,

Pabst Brewing

semi-*

(June 30, 1952) of City of Philadelphia and

Fire and Casualty Insurance Stocks—Analysis of 1951 results—

weekly price

Field

Annual

Club.

Service

Company—Analysis—Cen¬
tral Republic Company, 209 South La Salle Street, Chicago
4, Illinois.

Philadelphia School District Bonds.

available

Street, Boston 9,

Broadway, New York 6, N. Y.

Northern

1952—Stroud & Company, Incorporated, 123 South

Street, Philadelphia

annual appraisal

Also

ciation

Bond

Street, Chicago 3, 111.
Electric Association—Bulletin—Estabrook

Public

memorandum

New York.

Trust

15 Broad

New York,

Industries—

Process

Co.,

New England

the same issue is a discussion of Japanese Foreign Bonds and
Japanese Taxes and The Foreign Investor.

Chemonomics—Newsletter

La Salle

New England Gas &

Co., Ltd., Nissan Chemical Industry Co., and Electric Chemi¬
Industry Co., Ltd.—Nomura Securities Co., Ltd., 1, 1-

Equipment

July 22, 1952 (Des Moines, Iowa)
Iowa Investment Bankers Asso¬
Wakonda Club (with headquarters

Associates, 500 Fifth

National Lead Company—Analysis—William Blair & Company,

cal

R.

Field

Investment

Avenue, New York 36, N. Y.

•

Chemical Fertilizer Industry
Chemical

&

In

Com¬

61 Broadway, New York 6, N. Y.

pany,

Company, 32 Broadway,'New York 4, N. Y.
Witter

EVENTS

pos¬

companies.

parties the following literature:

Aircraft—Review—Dean

COMING

May Department Stores—Data in current issue of "Gleanings"

Handicap

drawn
basis

after

for

the

System will
play has been

handicap.

be used
for
handicap purposes.
Nine
completed, and the score on these nine

N. Y. Cotton

Exchange Bldg.

NEW YORK 4, N. Y.
CHICAGO

DETROIT

GENEVA,

PITTSBURGH

SWITZERLAND

Volume 176

Number 5130

...

The Commercial and Financial Chronicle

(9)
point

Government Threats to

position,
tains

Chemical Diversification

(5) utilization of

in which anti-trust laws

appears

and

have

so

American

in

arisen

government circles
of

suspicion

even

some

the trend

over

business

firms

to

attitude

ings

reports

tivity,

dominate

business

the

trend

and

lines.

imply
that* such competition-killing motives

No

hand,

business

mounting

mantle of

the

firms

cases

in

the

In

suspicion

on

what

the

-

are

secrets.

Inc.,
but

the

businessmen

ernment

When

where

interference

to

this

lack of offense
cases

weak

In

are

in

ysis

business.

jections

are

of

der.

of

such

conflict, such

communication

the

Since

industries

between

business
seems

the

reasons

to

be

chemical

have

seen

show

tries.
are

the

in

power

process

be

well

inevitable.

to

demonstrate

Continued

some

of

on page

18

the

told

concentration

types

many

Sales

figures,

and

of

New Issue

indus¬

of

assets,

etc.,
Merger and

retold.

$7,953,000

diversification movements are de¬
scribed and detailed. The point is

repeatedly brought out that
nomic

is

power

being

eco¬

City of Camden, New Jersey

concen¬

trated.
In

has

fact, overwhelming evidence
brought to bear on this

been

2.60% Sewage Disposal Bonds

contention.

Yet, the only thing
by the evidence presented

proven
Dr.

Robert S. Aries

diversify.

Rudolf M. Cziner

In hearings before the
Sub-Committee of the

Judiciary

is that large companies are

larger

and

curring at
these

that

mergers

oc¬

rapid rate. Even

a very

contentions

refuted

are

of

real

come

exist.

and

to

extent

some

do

However, the general tone

and attitude

attendant to the

cussion

of

far

critical

too

this

cerning the
American

subject

dis¬

been

severe

and

has

con¬

motives and

aims

of

„

both principal and interest and reconvertible into
coupon Bonds at
the expense of the holder.

Interest Exempt from Federal Income Taxes under

is

to

capture economic power for

future misuse.

These Bonds, issued for

real

City of Camden, and the City has power and is obligated to levy
ad valorem taxes upon all the taxable
property within the City for the payment of the Bonds and interest
thereon, without limitation of rate or amount. In addition, the Bonds are

Very little, if any,
evidence, however, has been
brought forth to show that such

control and its abuse

the

are

the aims

Sewage Disposal
legally binding general obligations of the

purposes,

.Up to this time, little attention
Meaning of Diversification
been given by the business
What exactly do we mean
by
society to the impending threat of
diversification?
In the report on
future anti-trust action resulting
the Merger iVovement
(1948), the
directly from a negative attitude FTC
defines div^sification in a
on the part of our lawmakers and
negative sense. Concerning itself
government officials. It seems that
only with mergers, the FTC states:
business becomes interested only
"In the complex industrial so¬
when new legislative and admin¬
ciety of today, mergers and acqui¬
istrative restrictions threaten ' to
sitions take a wide variety of dif¬
become
effective.
an

The

ancient

of preven¬

ounce

ferent

and

sometimes

completely
which have

opposite

directions,
tion, however, should apply
traditionally been designated as
equally to the enactment of gov¬
horizontal, vertical, and conglom¬
ernment

intervention

in

business

the

moment

I

affairs.

The

situation

at

erate.

that

big business,

that

diversification

nomic

either

leads

eco¬

tions: (1)
toward

forcing

presents

with

in

leads

(2)

and

opportunity

an

cost

competition,

losses

direc¬

the; diversified

sell below actual

in

to

order to

recouping

the

under-cost

line

through profits from other

parts

the

glomerate
in

materials; and

the

acquisitions

which

there

is

no

there is

laws

states

that ".

.

the motives

.

be

case

of

Consequently,

argument has fallen on

include

risks, to invest large
idle liquid capital, to add

(italics ours)
such diverse incentives as desires
spread
of

which

can

be

handled

existing sales and distribu¬

tion

personnel,

to

increase

Yields

Yield

Maturities

1957

Price

1.95%

1968

2.30%

1962

2.00

1969

2.35

1963

2.05

1964,

1.65

1970-71

2.15

2.40

1972-73

2.10

1965

1.55

1958

or

1961

2.45

1974-76

1959

1.75

1966

2.2D

1960

1.85

1967

2.25

(Accrued interest

to

be

2.50

1977-79

2.55

.

1980-83

added)

100

1984-87

2.625

(price)

,

•

next

sentence,

the

Such contention may have some

but the general




can

be

very

Commission

are
offered, subject to prior sale before or after publication of this
advertisement,
for delivery when, as and if issued and received by us and subject to the approval
of legality
by Messrs. Hawkins, Delajield & Wood, Attorneys, New York City.

The National

City Bank of New York

B. J. Van Ingen & Co. Inc.

factors,

conglom¬

acquisitions

a

simple drive

to obtain greater economic
power."

Again, the italics

are ours.

Halsey, Stuart & Co. Inc.

Fidelity Union Trust Company
Newark, N. J.

Boland, Saffin & Co.

L. F. Rothschild & Co.

W. H. Morton & Co.

First of

Barr Brothers & Co.

Bramhall, Barbour & Co., Inc.
Van Deventer

They

Brothers, Inc.

First Securities

Company

Chicago

Shearson, Hammill & Co.

McDougal and Condon
Incorporated
June 30, 1952

Dolphin & Co.

A. Webster Dougherty & Co.

°

M. B. Vick and Company
,

Michigan Corporation

Wm. E. Pollock & Co., Inc.

MacBride, Miller & Company

...

Ira Haupt & Co.

J. B. Hanauer & Co.

Incorporated

of

erate

producer.

The above Bonds

the

continues:

companies
selling below cost to eliminate the

diversified

course,

1.25

grouped together in the company's

small

validity, of

un¬

to

"But in addition to these
there is present in most

of

1954

to

.

appear

advertisements, etc.", in the

Harvester

years ago.

1.10%

derlying conglomerate acquisitions

International

fear

.

position of the FTC and other
agencies. Although the FTC report

number of products which

the

.

est

against full-line forcing
violations as exemplified by the

main

.

discernible relationship
."
which seems to indicate the weak¬

with
can

effective

the

1953

Maturities

no

Against products

Diversification

nearly 30

Prices

to Yield

those

are

in the nature of the business

sums

Anti-Trust Laws Effective

anti-trust

Maturities

discernible

to

business.

Current

$213,000 August 1, 1987
Prices

con¬

It is exactly this idea that ".

The main

seem to take two

full-line

it

$260,000 each August 1, 1978-86, inclusive

and

that diversification

company

of

raw

PRICE

$240,000 each August 1, 1968-77, inclusive

1.35

ulti¬ relationship in the nature of the
control, business between the purchasing
by the Government or by and the acquired firms."

arguments

stifle

to

OR

$180,000 each August 1, 1953-57, inclusive

1.45

ward the

system and the water system

$210,000 each August 1, 1958-67, inclusive
.

1955

institutional

to

industrial management.

that

is bad,

se,

per

concentration

mately

the idea

on

Due

1956

in

valid and

<h»

are

engaged

are

fur#ier secured by certain

sewer

AMOUNTS, MATURITIES AND YIELDS

Horizontal acquisitions are
those in which the firms involved

roughly similar
seems
to be a direct conflict in lines of
production; vertical ac¬
attitudes, neither of them either quisitions are those in which the
completely correct or completely purchase represents a movement
erroneous.
On one hand, the Gov¬ either forward toward the endernment is basing its contention product
stages or backward to¬
against diversification

in the opinion of counsel named below

special covenants and provisions with respect to the operation of the
of the City and the revenues derived therefrom.

businessman.

has

adage about

Existing Statutes and Decisions

pany expansion and diversification

of

businessmen.

to

by

some recent studies by Adelman.
Representatives and in
With such facts, the Government
reports
by
the
Federal
Trade
Commission, the "dangers" of di¬ brings in the theory that "bigness
versification have repeatedly been is bad" and implies and charges
that the major motive for com¬
emphasized. Such dangers can be¬

House

Dated August 1, 1952. Due August 1,
1953-87, inclusive. Principal and semi-annual interest (February 1
and August 1) payable in Camden, New
Jersey, or at The National City Bank of New York.
Coupon Bonds in denomination of $1,000, registerable as to principal only or as

getting
are

for
or¬

widespread

hearings and in the FTC reports,
statistics are abundantly presented
to

in

diversification movements, it may

incom¬

petent, public and government ob¬

Diversi¬

of

diversification

and

added the ob¬

even

has

too

government and business, an anal¬

of diversification which

inefficient and

All

everything except the in¬
public should know.

view

lack

relied

defense

diversi¬

enough effort to explain

reasons.

about

warnings against gov¬

on

to know

formation the

company

have

seem

often, diver¬
sification, either by merger, pur¬
chase, or original establishment, is
explained by numerous statements

In the face of government

attacks,
mainly

comes

business

motivates

not made

While concentrat¬

considered

Situation

fication; and (2) Management

company

opinion."

fication

were

diversification.

counteracting

the

eral public does not

singularly

generally ignored
All too.often,
underlying motives in diversi¬

"public

in any, of the possible malpractices

of

been

of

situation, therefore,

down to the following essentials:
(1) The government and gen¬

have

nessmen

which constitute the dire end-re¬
sults

the

on furthering the progress of
their own companies, the busi¬

extraneous

cited

are

therewith

ing

to

urge

in

diversification.

vious

toward

diversification.

ineffective

American Home Products
engaged

to

seems

cloaks

management has

competitors, companies
engaged in auxiliary lines of ac¬

accompanying past hear¬

and

economic
one

acquiring

gencies. Gives illustrations applicable to chemistry industry.
distrust

motives, but

for
on

denoting

Essentials
The

"drive to greater economic
power."
On the other side of the scale,

appears

American Home Products
Co.,
is accused of
nothing else

excess

Within the past decade, a,gro\V-

a

cations,

gain
power.
Neither statement, how¬
ever, is backed up or disproven
with solid facts.
The prize ex¬
ample of diversification cited, the

capacity; (6) utilization
of research facilities; (7) extenson of a
line; (8) creation of
unexpected demand; finally, government requests in emer¬

ing

Commission

qualification

against diversification, and lists as principal
motives underlying trend: (1)
stability of earnings; (2) better
profits; (3) use of waste and by-products; (4) search for raw

materials;

drive

fication through acquisitions is
merely cited in its various ramifi¬

main¬

conjecture,
but states with
certainty and little

effective

were

which

diversification

Therefore,

motives in

Engineering consultants discuss motives for diversification by
business concerns, as well as basis for adverse attitude of
gov¬
cases

position

simple

a

the

of R. S Aries & Associates

Cites

that

power.

Consulting: Engineers and Economists

toward the trend.

very clearly the basic
of
the
government's

a

to have real business

is

By ROBERT S. ARIES & RUDOLF M. CZINER

ernment

out

arguments

9

Thomas & Company

Gregory Harrington & Co., Inc.

(10)

10

The Commercial and Financial
Chronicle

sented detailed and very effective

types of production in the indus¬
try and included both large and

By AMBROSE R. CIIANTLER*
Synthetic

Organic

small

Chemical

Manufacturers Association

and calls for united action to
prevent its abolition.

Price

of

tariffs that

ticular

interest

during

of

were

to

the

two

concluded

i

1951,
in
a

be

The

second

of

were

Ambrose R. Chantler

an

Germany, that became effec¬
Oct.

1,

chemical
from

pound

ad

duty,

and

cut

7c

a

to

25% ad
3V2C a pound.
On
some
special products the duty
became
20%
ad' valorem
with

Ht^c

pound
reductions

per

These
to

and

Germany

not

duty.
limited

but

apply to other
countries as well, with
exception
of the iron-curtain
nations.,
In<a

recent

analysis, the Tariff
Commission points out the exten¬
sive

over-all

valorem

reduction

rates

that

has

from the time of the

the
in

Trade
the

in

ad

occurred

inception of

Agreements

program

early thirties through the

latest

conference
at
Torquay.
Using as a base the 1949 dutiable
imports falling within the Chemi¬
cal, Oils and Paints schedule of
the Tariff Act of
1930, the analysis
shows
the
average
ad valorem
rate on these items to have de¬
clined

Again
ports
on

from
on

in

95.7%

fore

the
was

the
this
of

was

22.4%
basis

schedule,
the

10.9%.

1949

the

dutiable

im¬

ad

provided
the

in

valorem

basis for ad

they

bases

duties

are

of

the

it

open

valorem

rates

intermediates"
chemicals

and

when¬

are
competitive with
products.
This would

taken

away

major

a

organic industry
to

serious

from abroad.

prop

and

left

the

House

of

the

presentation.

industry
2 of

was

Specifically

with valuation of

which

concerned

with

imports; Section

eliminated

Selling Price
Section

as a

20

American

valuation basis,

dealing with

con¬

version

of

items

ciations

were not opposed in any
those sections of the Bill

to

that

dealt

currencies.

with

The

methods

Asso¬

of

sim¬

plifying appraisal of imports.
In

brief statement.

Finance Committee

plification Bill will be passed by
Congress at this session.
In the coming year the outlook

is

for

extremely active competi¬
foreign sources.
The
of Europe's chemical inr
dustry is more than enough to
meet
European needs, and the
tion

addition

to

the

also, in

from

American

market

increasing

can

pressure

surpluses.

The

world economy

anticipate

from

world

instability of the
with its devalued

Association

that

and opportunities for
manipulation all serve to
intensify the competition, and the

eign
year

the

American

industries.
the

worked

two

closely

During

and

the

Associations

together

For¬

on

past

a

Taft

their

domestic

leadership in

domestic affairs

has prevailed to an
increasing
extent since the
early '40s and under Truman
has come to prevail almost
Carlisle Bargeron
completely. He has
come to be the
unquestioned leader of the coa¬
lition composed of
conservative Republicans and
Southern Demo¬
crats which dominates
Congress. Congress is supposed to be
repre¬
sentative of the
country as a whole and I am quite sure it is far
more
so
than the syndicated
newspaper polls whose conductors
would like very much to
take over the
legislative job. Under the
circumstances, you would thing there would be no
question about
the most available man
for the
Presidency; certainly there should\
not be the nonsense
that his opponents
spread.

There
would
or

are the
propaganda polls, for
example, that Eisenhower
better in the South than Taft and
probably carry a state
Yet Taft has been the
leader in

run

two.

Congress

than half of the Southern
representatives.
tual

leadership, too,

not

He has had more
influence
Speaker Sam Rayburn.
In

sort

some

of

a

the

firm

name

of

Gearhart, Kinnard & Otis, Incor¬
porated,
York
Inc.

45

City,
has

Nassau

to

been

Street,

Gearhart

&

announced.

New
Otis,
Fred¬

erick D. Gearhart Jr. is president
and Edward V.

Otis is vice-presi¬

dent and treasurer. Albert Kruhm
is secretary.

having been placed privately through the undersigned.

more

intellec¬

political pap.

'

newspaper

popularity
votes in

contest

I

the South

have

no

than Taft.

you would find men like

there

doubt of his

victory

The

South

is

would

be

no

Eisenhower.

over

not

in this category, of
course, so it makes not
the slightest difference
whether Taft or the General
would

most* votes down there.
in a single state

get the
would get
enough to make a dent
applies to Texas about which there

Neither

is

so

is not the
candidate, the South is going to remain
regular. This means that the
political leaders from the
Governor
on down to the
courthouse gang are
going to see that.it remains
regular. What is not
generally known among the Eisenhower
prop¬
agandists apparently, or if it is
known, they are carefully conceal¬
ing it, is that there is no
outpouring of voters in the South in
November, in normal times. Their political
contests—for Gover¬
nor, Senator, and
Representative—have been decided in the
pri¬
maries. In November
only the professionals turn out.
With Tru¬
man not
running there will be "normal times" in the
South in this
Presidential election. "Abnormal
times" were such as
occurred in
the Smith-Hoover
campaign of 1928. There is
nothing like that in
prospect this year. But what it will
mean to the
country, the coun¬

try's loss, if the Eisenhower
candidacy should prevail, is this: Taft's
party at that.

will have

years

It is

The

great

been

fact that this

a

repudiated by the party in
appears for purposes of record only, these securities

an

Harry Byrd, Walter George,
Congressmen Gene Cox and Howard
Smith, in fact, nearly all of the most
influential political leaders of
the South,
working for Taft and in this case

own

announcement

probably

the House, I venture to
say, than

over

battleground

leadership all these

This

of

It has been

the power of

If Truman

Formed in NYG
of

on

doubt the General
would get more
But if the South were a
fair

much commotion.

Change

based

one

and this

Gearharl & Otis Is

scene.

it is amazing that the propaganda

can't

have

tariff problems, and they will con¬
tinue to do so as the need arises.

the

on

way

win in November has taken
such a hold in the face of
the inescapable fact
that his political
philosophy, his

currencies

price

my

candidacy is designed
this, but if it is successful it will
opinion, minimize the check that

existed
In

output

the Bill dealing with

rates

by Mr. Chantler at the An¬
nual
Meeting
of
the
Manufacturing
Chemists'
Association,
White
Sulphur
Springs, W. Va., June 23, 1952.

As

Associa¬

the

injury in dumping and counter¬
vailing duties; Section 13, dealing

and

a

the

be¬

CJ/emical Man¬
Association made a

ufacturers

Section

done,

filed only

between

Representatives in
August 1951 and the Manufactur¬
ing Chemists' Association and the
Synthetic Organic
joint

provision
Committee.

two Associations must be vigilant
undercutting to
try to equalize cost differentials

Hearings were held before the
Ways and Means Committee of

way

♦Remarks

a/d

purpose

American

14

to
of

procedures.

finished

have

not

tried

the

Senate

The Senate

wentifar beyond

Bill

coal-tar

on

only if gov¬

other witnesses

or

reintroduce

tions

computed. Of special importance
to the industry was a provision
abolishing American Selling Price

ever

specific
are

which

many

made

has not yet acted on the Bill and
there seems
to be
considerable

which

major revision

the

be

are

prevent

has

be¬

doubt whether any Customs Sim¬

stated
a

as

appearance

intro¬

the

for

most

on

were

valorem

specific

valorem

fact

on

1951, duties

intermediates

40%

should

this

the

development of in¬

Bill

to

the

tee

ostensibly for tfle-purpose
simplifying customs

In
its

agree ment

tive

with

scale

was

Associations

the

tatives

reduc¬

In

full

it

tempestuous
supporters of

hopeful, of course, of extending this
check to the wild manipulation
of our foreign
The Eisenhower

serious

most

two

the House of Represent

in

and his
reforms; it has kept the
Truman's back to the mat. The

fore the Senate Finance Commit¬

terest concerned the Customs Sim¬

na¬

sub stantial

with

a

the

ex¬

effect of these reductions.

plification

made.

that

reduc¬

of

duced

tions

concerned

the

away

of

to

tions in which
tariff

the

of

a

to

hear¬

as

affairs.

and

ernment

g reements

with other

effect

at

reason

Senate

Taft

position

of the industry is upset
rise in imports of key inter¬
mediates.
The industry has good

n

the
called

passed by the
Since the American Sell¬

balance

resulted
series

a

the Bill

on

by

of

spring

1952

threat to the industry,

The

Torquay could be
tremely serious especially if

which

22,

Committee

the

far

intermediates.

organic

long-range

the

April

for

ing Price provision of the origi¬
nal House Bill had constituted
by

program.

tions

confer¬

or

There are, of course, thousands
of

know the Tor-

ence,

time

one

another during the Trade Agree¬

industry

the

you

quay

ings

sources.

have been reduced at
ments

par¬

past year.
As

On

If General Eisenhower should
get the Republican nomination
and win in November, this
country, it appears to this writer, will
have lost that opposition which has
operated so effectively as a
balance in domestic affairs since
the early '40s. There is no
telling
where we v/ould have been
by now without it.
It was an opposition that
checked Roosevelt

eliminated

was

victory
industry.

Finance
House.

international developments in the
field

provision)

important

—an

chemical

Foresees

extremely active competition in chemicals from foreign
on

the News

By CARLISLE BARGERON

Section

on

I should like to comment

Washington

Ahead

manufacturers.

the Bill as finally approved
by the House of Representatives,
14 (the American Selling

affecting the

as

tendency toward lower ad
competing imported chemicals. Defends
American Selling Price basis for
levying of ad valorem rates,
rates

Thursday, July 3, 1952

.

In

Mr. Chantler reviews recent tariff
developments
chemical industry, and points out
valorem

From

testimony. These members com¬
prised a cross-section of various

Affecting Chemicals

President,

.

presentation, representatives from
eight member companies also pre¬

The Taiiff Situation
As

:

repudiated and by

leadership

his

in effect,

was,

1948, but the repudiation didn't
stick.

Dewey meteor burst

and

left the

Taft

leadership still

standing there.
It is

NEW

strange to me now that the
Republicans would have
any
hope of^success by
repudiating their "Mr. Republican." But the
fact is they don't
hope to be successful as
Republicans. They

ISSUE

frankly and avowedly

their appeal is almost

$15,000,000

trying to establish

General American Transportation

Corporation

a

Democrats

to

help

new

political

Frankly, I believe
Deal

Due

serially

to

out;

effect,

it would be better
to have the
New Deal or
with such an
effective check as the

continue in office

Taft-led

Republicans and Southern
Democrats
Republican victory with such a
check

than

diminished if

Dated July 1, 1952

them

are, in

monstrosity, a sort of watered
down version of the
New Deal and when
you think of the
Tobeys,
the Bill
Langers and the so-called "liberals"
in it I am not
so sure
that it would be so
watered down.
Fair

Equipment Trust Certificates, Series 50

expect the

wholly to the Democrats.
They

P.S.—Just for

July 1, 1972

opponents rail

a

laugh, this

is

a

Taft

against, say it would be

a

so-called

not stilled.

"foreign policy" which
a

to win:

catastrophe if he

his

were

"

'We had two
divisions of

Russians, of

Kuhn, Loeb & Co.
July 2,1952




spenders

troops in Germany, not

course, but to act

came

up

with

the

as

idea

against them and bowl them

over

divisions must be sent

to

these two additional

too; under the
than two.

over

an-^cupying
that

like

to

stop tlie

The global

the

Russians could
house of cards. Two

back-stop them.

divisions could,

circumstances,

a

force.

Taft

of course, be

four divisions

move
more

pointed

bowled

were no more

out

over,

effective

Volume 176

Number 5130

.

.

The Commercial and Financial Chronicle

.

(11)
gone down.

What's Ahead for Business?
of

the

Prominent industrialist, in
commenting

on changed economic
let-up of excessive consumer spending, ac¬
companied by greater individual savings, gives as reasons for
optimistic business outlook: (1) improved situation for meet¬
ing Communist aggression; (2) high rate of defense
produc¬

a

again permit expansion of output of

(6)

that

exports, and

more

create

Advocates

If I

were

easier.

You

draw

chalk talk

a

today would

for

I

see,

you

artist, my

come

would

series

a

lot

a

like

of

to

quick

charms

the

sota

freeze

and

sizzle

there

takes

a

our

pictures

that

dure

together

may

our

to

serve
s

e

w

an-

is

there
was

sota

$64

a

question,

persons

agree

echo

on

the complete

the

some¬

we

up

Harry A. Bullis

and
in

had

a

told

the

When the hands of the clock

the

of

the

bright pictures in
today is your own
It is

area.

a

big country, this land of ours—so
big that you will refer to me as

Easterner, although in Minne¬
that term for the

reserve

cliff

dwellers

of

fact

thai

country

the

makes it all the

that

Manhattan.

is

so

is

the

here

in

outstanding

you
your

who have

industrial

observed

watched

development.

how,

during the

California became

saw

your

upward

zoom

We

1940's,

of the lead¬

one

ing industrial states. We

plant capacity

and

employment figures multi¬
ply. We have'always been thrilled
your

to

read

about

the

'49ers—those

hardy pioneers who set the stage
the great. progress you have

for

made—but

and

you

want

to

present-day
other
things

Among
built

up

here,

you

tie-ups.
a

have

you

in

We

saw your

into; the

move

front

an

ucts in the nation.
year

I

am

cotton

your

told that

crop

alone

valued at $350,000,000.

was

And of

course

from the tops of

Minnesotans,

we

our

thousand

there

is

lakes,

keep

something

too

citizens

many

move

to

this

of

In

we

out

here

Cali¬

stalwart
to

California,'

Meeting
Commerce

San

your

doubt

climate

by Mr. Bullis at
sponsored by the
of

Francisco

tories

a

Lunch¬

Chamber

San Francisco and
Commercial
Club,

Francisco, Calif., June 27,

1952.




was

business

a

can

the

San

were

She tore up
several, then

finally
inspiration. She handed the
telegram to the clerk. The mes¬

got

Consumers'

up.

the

-

little

rising, and consumers'
in the first quarter set

are

past

has

of

of

The

main

testimony.

we

can

the nation's
right

This

rising,

so

total

purchases

are

since Korea
ation.
with

of

output

v

is

consumers'

been

in

bad

a

due to over-accumulation of
inventories by retailers—now
reduced.

Semi-durables,

television

household

sets,

radios,

appliances

went

similar experience.

make

in

its

expansion,

defense

it

been

scheduled.

tell

its

picture

of

talks

the

on

tell it

we

subject.
our

to

the

great

; Nevertheless,

I

understanding

in

this

country.

Furthermore, I

believe that the job must start in
the
schools—in
the

elementary

schools, if
lieve

please—and I be¬

you

business

make

can

achievement.

believe that

May Survey of
con¬

we

can

Therefore,
expect

It is

I

important for educators

understand

con¬

stability in our economy
during the months ahead, particu¬

versa.

larly in terms of prices and em¬
ployment. Personal buying power,

of

The

our

little

endeavor,
prejudices

hurry.

It will require real work

sell.

And, in my opinion, the
companies with dynamic and ag¬
gressive sales • organizations that
really going out and selling

are

their

products

seems

will

be

the

If prices rise a

buying

lated after the

will

summer

be

must understand

We
the basic opinions and
of
adulthood
are

can

rearrange

opinions,
change them.

these

but

convictions
seldom

we

My company has been
a

lull.

This announcement is neither

an

offer to sell

nor a

teaching, integrated into
The project has

Continued

on

page

solicitation of any offer to

buy securities.

The offering is made only by the Prospectus.

and

500,000 Shares

Far

the

potential America. It is
pride that I join the rest of
America in saying, "More power
to you!"

Blockson Chemical

with

*

*

Common Stock

Business Conditions
Now, let's take
business

why

a

conditions

quick look at
and

find

Company
,

c

(Par Value $7.50

per

share)

out

businessmen have been

some

pessimistic about business.
We

will

the

all

last

the

buying

year.

A

the

Price $29.00 Per Share

changed in

year

American

goods

that

agree

of business has

and

people

because

of

half

a

were

antici¬

pated shortages.

Today they
much.

there

Goods
is

not spending so

are

are

plentiful, so
about buying.

A copy of the

Prospectus

Underwriters

as

may

may be obtained within any State from such of the
regularly distribute the Prospectus within such State.

hurry
People get greater satisfaction in
The records show that
no

saving.

have reduced their

At

an¬

spending rate by $6V2 billion.
the same time, their incomes

have

increased by almost a like
amount; so their rate of saving
has leaped forward.
Savings rose

by $12 billion,

as

These

dead

the

to
in

have
its

the

events

stopped

Lehman Brothers

inflation

tracks,

year,

the

Federal

Reserve.

For

a

most wholesale prices have

Blyth & Co., Inc.

Eastman, Dillon & Co.

Harriman Ripley & Co.

Lazard Freres & Co.

Incorporated

which

supported by
accord between the
Treasury

and

Glore, Forgan & Co.

spending fell by
•

are

Goldman, Sachs & Co.
The First Boston Corporation

Smith, Barney & Co.

Stone & Webster Securities Corporation
r

Union Securities Corporation
June 27, 1952.

experi¬
of basic

program

the social studies.

stimu¬

en¬

system of risk and

and

economic

probable, both business and

consumer

ones

menting with

as

women

formed at the adolescent and
preadolescent level. In later life we

.

most

bit,

to

vice

of profit and loss.

know that

But people are not in
any

and

moulding the minds

this American

cession.

and

men

trusted with

together with expanding military
production, will tend to offset re¬

to

business,

prosper¬

the

some

contributions here.

a

bf

of

that
in the'

years to
comd will depend on
what business does to raise the
level of economic

San

empire

busi¬

believe

testimony to the future

a

We

story, but

other

what is ahead for business

tinued

Francisco,
mighty and industrious, thriving
West, is

to

story to

we

levels

yes

dopes
—you're talking to yourselves!"

that
is

it

times

many

saying

This probably accounts
for the recent article in "Fortune"
which says, in effect, "You

together

gain

how

been

nessmen.

oper¬

This

that

usually

productivity,

production

know

has

businessmen do tell

them,

coming into

are

don't

more

countries

out-produce

increased

successful.

According to the Department of
Commerce

the

■*"

can," the lovely girl

*

way,

a

to

out-organize them,

This

great

consumers'* incomes.

has

ex¬

rules

for

the American public. I have made
people suffer through a dozen or

will
probably yield about two-thirds of

goods reached n%w highs in both
the first two quarters of 1952. But
the rate of buying of
many kinds
of
durable goods is down. The
trade

soul,
new

words
.

I

requests

defense

duction which

the

year

program

our

Even

through

I

The additional facilities for
pro¬
have been created

on

lias

and

But

know

business

and

that our economic structure
will not collapse, but is
strong and
flexible enough to adjust to our

boost
in
the
Federal government's total
outlays
for national security. It should be

as

Korea

continue

can

the

such

billion

and

this

of

must

we

calls

as

15

said, "but don't you think if I
said 'yes' 15 times he would think
I was too eager?"

is

requirements.

defense, production
for
a
$14 billion

being

in

continue.

that

rising, although at a slower pace.
is rising right now.
Operating
figure, of the railroads are elo¬

textile

Defense

year's spending

threats

that

inventories

cause

meantime,

that

elected.

clear to the Communist

It

noted

Red

We

has

total production has kept

quent

which adds $14

The

"I

is increasing and Al¬
military organization
is
improving.

So,
months, * the

accumulating

the

send

price.

same

lied

adjustment.
In

could

word—

one

name.

clerk, a helpful
plained* that under the

production

correcting.

twelve

the

her

The

whichever politi¬

program,

Europe

the

splurge.

situation

been

consisted of only

"Yes"—and

she

factor

.

changed.
A reduction of $15 billion in the
rate

an

sage

record.

to the rate of this

was

ahead

buying

needed

message.

world.

The

in

a

high

that

really

a

good
show

'

consumers'

Keeping ourselves strong
single contribution
to

a

is

once

wcfrld's trade

the

to

the

the

three

corner

Current Business, residential

w$6Vz billion.

*An address
of

we

and

productive

make

can

ous

seem

eon

if

world

by

up

expected

party

nual

We have

our

a

is the greatest

consumers

our

that fact!
,

of

friendly exchange of

high,

at home.

snow¬

confess

must

fornia climate after all.
seen

con¬

world

needs

jn volume mostly requires

of

famous

drifts, and from the shores
ten

a

in

great

especially

To make the

San

agricultural producer,
with the greatest variety of prod¬
last

maae

powerful.

goods among nations.

ago

state

the

peaceful

have

state and your city.

as

have

and

Your growth potential is

.unlimited,

course

great

-

that shipping through your
port
will not be subject to capricious

Francisco,
and
you
have greatly increased
the financial importance of
your

rank

back,

so

for

industry
have accumulated huge

deposits

the

across

day. It is to be hoped your
water front situation will stabilize

pioneers.

steel

great

a

your

shout

interest

of

one

compliment

fellow citizens

your

being

bank

I

cup

comes

is

cal

boosted by $15 billion after
This advance
in inven¬

output and employment right here

and prosper, marvel at

grow

said

You

than ever, have
an

fense

parade

our

Cali¬

glows bright and attractive in the

us

trade,

again

it

the

to

go

lakes,"

that

mighty

and

big,

that

echo

sinews

more

have

national setting.

Those of

and

Yes, San Francisco today is rich

The

so

remarkable

more

picture

your

fornia

loud

"and

-

'Which Johnson?'"

cern

the

grand San Francisco

we

it

our

a

Korea.

wonderful

'Johnson'

You,
The San Francisco Area

sota

the

mouth.

your

America

an

Minneso¬

"You

of

The

just half past five.

nation:

the

of

me

'When, you
toward the cliffs,

too.

name

water.

in

our

of

Minnesotan,

pointed to seven, the clock struck
six, and the old man knew it was

of

moun¬

valleys.

one

hands to

been

inventory

the

for

What is the outlook for the
year

caught
Total inventories had

ahead.

in

have

reminds

echoes

shore

You will'find, in these word
pictures, something of the irregu¬
larity peculiar to a clock owned
by an old man of my acquaint¬

One

have

they

few clues.

.

behind

you

The Minnesotan countered with
his tale of the lakes, and said

-

ance.

far

clear," he said.

along

pick

can

this,

out

back,

You

shout your name
the
echo
repeats

but

line

is

between

of

though

do have in Minne¬

we

lakes.

This

tains,

will

where

en¬

and
the
The
Californian.
Californian boasted of his moun¬

two

perhaps

It

summer.

Despite

it

leader

parade had turned
blocks

Anybody Listening?

.

winter,

growth

gain

ahead?

after.

Minne¬

tan

No

answer,

the

new

measured.

months

be

during the second
Business outlays for new

purchases
a

of

Total construction

to

and

inconles

United

In

situation

thing

is

discussion

ever

one.

of

be

can

nine

rate

machinery

who kept right on
marching down
the
avenue
even

has shown sizable

though

tains.

if

it

first

the

Is

My next picture begins with the
story of the lovely young girl who
came into a
telegraph office. Her
eyes were dreamy as she reached
for a blank, and tried to
compose

increase

quarter.

obvious

the

in

climate.

rate

One

business?

That

in

amount
an

other

slowing down

in

housing starts to in¬

new

found

was

in

an

first
were

were follow¬
Because of today's political and
ing the consumers' upward march military
uncertainties,
we
are
of buying.
Then, a lot like the. almost sure to continue our de¬

established.

What is ahead
for

'em

population

,ne

question,

been

and

the

of

Korea, businessmen

tough constitution to

growth,

the

r

has

States,

economic

populace.

'em

is

the

this

crease

England, India,
Bolivia, Japan,
and

embarrassed

we

enough

as

There

in

.

although

difficult

8%

1952, and there

rose

of

second quarter.

much

economy,

are

for whatever

cause

For

isn't

our

Australia.

consumer

more

slump in

Argentina,

education.

remarks

quarter

-

yet there

as

countries, such

(7) technological develop¬

products.

new

But

to buy.

conditions

goods; (3) the curbing of inflation; (4) rapidly
increasing
population assuring expanding markets; (5) prospect of tax
ments

struction

general lack

of the will

Board, General Mills, Inc.

conditions due to

reduction;

understand why
businessmen

and

taxi drivers have been
pessi¬
mistic. They sense a

-

tion which will

can

and

By HARRY A. BULLIS*
Chairman

I

bankers

some

U

»

White, Weld & Co.

*

*

*

29

\

12

The Commercial and Financial Chronicle

(12)

clining business trend in 1953 and

The Immediate Business Outlook

1954,

University

Boston

is

omist

stability is
misleading, Prof. Bellemore points to diversity of trends in
different industries. Sees military spending as main prop of
present business boom, and predicts a leveling down of invest¬
ment in private plant and equipment.
Looks for a general
picture of

current

cyclical decline,
For the last 15 months

production, Has

period

enjoyed

relative
stability
following the

of

inflationary

initiated

surge

by the Korean
analythat

picture of

parent
stability, as
a

p

shown

by
of

indexes

following

the

for

ness

h

o

1

e s a

1

e

and

consumer

is

prices,
somewhat

their

considerably

very

while the
consumer
may have accumulated
s[x months to two years supply of
hard

However,

goods.

nylon stockings, or shoes, or sugar,
he had purchased 15 to 20 years

supply of usable life of refrigeror
washing-machines, and
50

to

years

usable

of

supply

life in the form of residences. The

soft goods section of
is

the economy

thg major factor in the

never

business

cycle because consumers

to extremes

of durable goods, as a result of boom

decline

in

the

a

very

demand

products in 1951

serious
their

for

and 1952, while

producers of machinery have

joyed booming business, and
other

do

not, for

very

long periods, go

in their purchases of

such goods. However,

optimism,
consumer

of war,
purchasing may anticior

the

in the case

fears

pate normal demands for

num-

a

en-

ber of years into the future. It is

many

only natural that future business

conflicting trends could be

cited.

will

suffer to the very extent to

which business has been borrowed

With

Korea,

the

outbreak

buy goods and build
inventones

J19? 5LC-

ket. The

newed

before

war

in

out

to

up

their

the

own

hoarders

n<ie *° corner the mar-

entrance

the

into

Reds

of

rushed

consumers

surge

of the

war

of

Chinese

off

set

consumer

re-

a

inven-

k00m

ing

props

to the postwar

have

been, consumer buydurable goods, the con-

of

struction of plants and equipment
by
12

businessmen, and,

in the last

months, the increasing

ditures

for

expen-

defense,

tnry building. Suddenly, however,
the-e

consumers

discovered

they had accumulated

a

able stock of goods, and
even

that

a

in

bit

chagrined
spite of their

that

Little Change in Next Half Year

consider¬

they were
to observe

valiant ef-

forts to denude retail stores, sup-

plies continued in relative abundance, and refrigerators and other
goods could then find few takers.

The

address

by Prof. Bellemore

at

the

of

over-all

business

activity as a whole should not
chahge very much in the last six
months of 1952, when compared to
the first si.x months of this year,
although divergent trends will not
ke as evident as heretofore. However,

♦An

trend

be

not

is

whether

Or

that consumers

so

be high-pres¬

can

in¬

the basis of nothing down

and three years to pay.

It is being
demonstrated, however, that even

leaked

have

out,

discussed

be

far off from

demand

how

of

practical reality these
actually be. I am,

that

and not about

that have

of the

some

in¬

goods,

cyclical peak has been
in all the'major factors

a

reached

(short of all-out

years

durable

consumer

cluding housing, and the construc¬
tion of plants and equipment. Now

about effective
military in the

the

by

two

war)

perpetuate the boom which up to
now has rested on the production

can

indicate

may

therefore, talking
next

perhaps

or

here,

are

supported the boom,

a

fantastic figures which have been

cold

babied about. One factor alone

defense demand does not warrant

should be mentioned. Short of allout

the

assumption

that

the

tail

of

defense spending can wag the dog

the military will ask for

war,

analysis of the real facts of

hesitates to spend these appropria¬

of aq economy of the size to which
we
are
accustomed. Of course, if

tions for large quantities of

one

appropriations,

huge

but

then
mili¬

in

obsolete

which

ment

The

tested.

of

terms

equip¬

already

is

new

being

so-called

adjustment.

that
barring all

by

the

is

timism.

expand

our

anywhere

at

post-war

rate,

one

can

unbridled op¬

This is especially true

discovers

he

the

that

in the

recession

1952,

will

to

excused for his

be

quite

of

year-after-year

spend¬

consumer

ing is coming to

as

temporary

close. Finally,

a

be

if, and when, defense expenditures

experiencing close to the peak de¬
mand of the Defense Department.

actually begin to decline, will not

is

It

hard

is

tail

out

It

end

the

near

stretching

out of the defense program is not,
is generally supposed, a civilian

likely

that

continue

productive capacity

as

inspired

believes
can

we

war,

believe

to

going

we

be

to

that

able

to

the decline

the

only accentuate

eral cyclical

a gen¬

decline that will al¬

ready be very much in evidence?

wag

the most lax terms of all time are

not

to

durables

sumer

now

clear

of

sufficient
inventories

proving

top-heavy

con¬

hand.

on

It

doubtful
if
over the next couple of years the
tremendous amount of plant ca¬
extremely

appears

pacity,

C. W.

tually be utilized in spite of the
easiest of credit terms. The higher
of

probably

savings

is

not

Bendigo, of American Cyanamid Co., estimates produc¬
newer non-cellulosic
synthetic fibers next year will show
three-fold increase. Says installed production capacity now
approximates 400 million pounds annually.

tion of

and man¬
producing
goods can ac¬

durable

consumer

rate

Progress in New Synthetic Fibers

materials,
available
for

and

power

a

Speaking at the 50th AnniverMeeting of the American

sary

Society

for

Testing Materials in
City on June 26, C. W.
As far as the second prop of
Bendigo, of the
the boom is concerned, investment
New Product

purely temporary.

in

private

these

He insisted that there must be less

emphasis
fiber

is

Development

tent

can

unques¬

Department,
American Cy¬

ishes that

are

a

cyclical peak.

that

fiber content because

on

content

and

equipment,

and

plant

,

New York

expenditures

tionably reaching

be

can

misleading

be

to

bound

increasingly
confusing.
He also pointed out
that the significance of fiber con¬
be

There is

complicated

by fin¬

applied to textiles.

are

industry will

anamid

Com-

question, he said, that
the current thinking in the indus¬

spend in the neighborhood of $24

pany,

pre¬

try

billion in plant outlay for

dicted

that

formance and

between

1950

fications and

is estimated

year,

1952.

some

time

built

We
in

plant

will

the full
discover at

that

1953

we

equipment

and

have
ca¬

pacity capable of producing all the
consumer goods that we produced
in the peak demand year 1950,
plus additional new plant capacity
all

meet

to

the

demands

of1 de¬

fense, short of all-out war. As far
as the third prop is concerned, de¬
fense
be

spending,

depended

this

upon

alone

must

to prevent the

contraction of the boom.

this

not

restric¬

all

remove

in debt

now

come on

the real question which must

asked

to

credit

on

sured to mortgage fheir future

It

from the future.

major

tions

consumer

economic
alrdady see the hand¬
on
the wall, and have

in

rushed

creased

sectors of the economy.

of textiles suffered

planners

of the

the

goods,

tures

Thursday, July 3, 1952

.

and that defense expendi¬
going to be able to

the dog,

funds.

Incidentally, the few figures that

tary equipment which are already

prop

concerned,

is

writing

first

the

as

durable

1951 consumers in-

1950 anc}

in

far

boom

years.

misleading. There has
actually
been
a
considerable
diversity of trend among different
Producers

As

or

year,

the Boom

Props to

con-

many

good,s discovered in 1952
that sales made in 1950 and 1951
had been at the expense of busi-

25

prices,
Bellemore

consider-

ators

w

of defense
spending
(barring all-out war) can¬
not prevent a serious decline in
business, particularly in business
profits.
prop

alone

sumer

production,

H.

supplying

industries

the

of

three

all

able forward buying by consumers,

industrial

D.

result of the very

a

opinion of this econ¬

the

props
that
have
been
supporting the
boom must be continued, and that

the

terials and manpower and

demands

that, if the boom is to con¬

tinue,

however, inventories of both soft goods and

^

indicates
the

As

A

incident.
closer

sis,

economic

should military demands recede.

our econ-

if measured by the index of

omy,

over-all
a

apparent

by the prop of defense

more

spending.

Institute of Finance

It

Contends

emphasis to a

in

type of boom supported more

and

Economics Department,

Chairman,

Director and Economist, American

shift

the

mark
new

By DOUGLAS H. BELLEMORE*

simply

will

it

whether

or

.

.

Military
This

Outlays

economist

maintained

that

duction
the

The

pro¬

300%
C. W.

total

installed

constantly

the

military in
its estimates will always greatly

fiber

price

relationship

the various synthetic

fi¬

change, Mr. Ben¬

a

claimed. Today the acrylic
fibers, Orion and Acrilan, are the
highest priced with nylon and

fibers will in-

a

speci¬

on

digo

synthetic

with

de-emphasis

bers is due for

newer

crease

per¬

on

maintenance

present

between

all

of

Bendigo

Dacron

pacity of over 400,000,000 in place
next year. By 1970, Mr. Bendigo

the rate for the noncellulosic
synthetics
should be
near a billion annual pounds. Dur¬
ing this same period the produc¬

somewhat

future

near

ca¬

declared,

Over-Estimated
has

of

is towards emphasis

content.

the

1953

and
rate

no

it

lower.

the

In

be

can

expected
that acrylic staple will be priced
less

than

nylon and Dacron and

eventually that the price of acrylic
staple will be second only to cellulosic staples.
Mr.

Bendigo

pointed

out

that

ican

26,

long

1952.

boom,

and

usher

in

de-

a

overstate

its

demands

for

ma¬

synthetic

proximately double. President
Truman's Materials Policy Com¬

abroad parallel those in the United
States to the extent that the in¬

mission has forecast United States

^""•'sSTdi BtZ^Z':r-BAoTtZ: period will mark the end of a
Association,
June
Mass

tion of cellulosic fibers should ap¬

creased rate in 1953 will be three
times greater than the production
in 1950. He emphasized that

fiber consumption at 7,500,000,000

If all the fore¬

pounds for 1975.
All

of these Shares having been sold, this advertisement appears

as a matter

of recdrd only.

going figures are correct, the evi¬
dence is that not only wool but
also cotton will feel the

NOT A NEW ISSUE

the

impact of

There

synthetic fibers.

in the United States several fibers

with not only

Detroit Steel Corporation
1

*

•-

■

,1

■

wool-like properties
but many
points of superiority
over wool. Mr. Bendigo said that
he was referring principally to the
acrylic fibers but also included
In addition to rayon

there
on

New York Stock Exchange

least

at

are

and acetate,

ten

other

im¬

portant synthetic fibers being pro¬
duced in the United States. There

also

are

being

States

per

Share

fibers

new

are

cates

significance of

qAllen

&

Company

part of the
With

their
Mr.

July 1,1952




so

many

specific

fabrics with
The

year

down

in

ease

be

ease

the

for

entire

producing

of maintenance.

195£, he said, will go
history as the

textile

plant started,

Acrilan

plant

began

the

This year the

tions, X-51 acrylic fiber

fiber

underwent

and

at

least

the

acrylic

on

the

privately.

two

fibers

mill

engineered

for

characteris¬

of maintenance.

an¬

evaluation.

other

were

for

tion

this
of

o

trie<

In addition, the parti

considerable

until

types

being

ally acrylic fiber dynel

being in blends,

opera¬

was

nounced, Industrial Rayon's acrylic

of

fibers and with

use

for

and

many

fibers

performance

tics and for

acrylics
field

year.

Bendigo maintains that textile
will

in

warmth

staple

consumer.

principal

products

nylon for apparel and industrial,
glass fibers for industrial uses,

Orion

which compli¬

new

in

fabrics, in¬
apparel,

for

large

understanding

any

acetate

being produced in

with but

United

United

materials the textile industry has
work

in

creases^

the

increases

industrial

for

rayon

in

foresaw

no

forms,
all of
which adds to the large variety of

to

future

he

acrylic fiber

different

several

the

For

States,

These

counterpart.

,C

15%

29

are

several

imported

types of fibers that have

Price

today
foreign companies
producing nylon fiber, 27 produc¬
ing glass fibers, 9 producing poly¬
vinyl chloride fibers, 6 producing
there

and

the polyester.

COMMON STOCK
Listed

developments

is no
question, according to Mr. Ben¬ polyvinyl alcohol types, and 4
digo, that wool consumption will foreign companies producing pro¬
tein staple.
drop now that there are available

45,000 Shares

■1

fiber

year

was

slate<

expansion.

U]

principal produc

acrylic fiber has been ii

filament

form, but the big futur

for

acrylics,

the

staple.

he

said,

is

ii

\

Volume 176

Number 5130

The Commercial and Financial Chronicle

...

(13) % 13
Francis

S.

News About Banks

two

officers, Arthur B. New¬
George
F. Sheppard,

and

Assistant

BRANCHES

NEW

OFFICERS, ETC.

| .and'Bankers

REVISED
CAPITALIZATIONS

man

Secretaries.
Branch

was

*

Board

Directors

of

tional
held

regular meeting of the

City

Bank

of

of

The

New

Na¬

York,

July 1 Saxon C. Barnes,

on

Advisory Board of Chemical Bank
&
Trust
Company's newly en¬
larged office at 46th Street and

U.

Avenue,

announced

Baxter

New

York,

Chemical

Mr. Denton is
East

Side

a

direc¬

Trust

Co., U. S. Fire Insurance Co.
Treasurer

director

and

Deposits
Cash

S.

curity

of

Loans

&

and

Real

COMPANY,

YORK

C. Barnes

James

Total

F.

Jaffray

resources.

Deposits
Cash

U;

IRVING

curity

517,505,655

Total

resources-

22,210,532

Cash

736,179,246

*

S.

York

on
July 1 celebrated the
anniversary of its branch
banking system in the Far East.

On July 1, 1902 The International
Banking Corporation, which sub¬

W.

John

Pyne

became

Singapore,

C. Slagle

affiliate

an

City

Bank,

in

and

Manila

later

and

that

F.

is

assigned

to the

Bank's

Jaffray, Pyne and Slagle will
tinue

with

NATIONAL

CITY

NEW

con¬

their duties in various

of

Henry

the

Bank's

Hollister

Mueller

Wriston,

B.

and

Domestic

Cox,
Walter

formerly

Cashiers,

P.
B.

Assistant

Vice-Presidents.

Also

that

at

meeting Stephen C. Eyre was ap¬
pointed
Assistant
Cashier
and
James

F.

Langan was
Branch Manager.

a

Total

profs.

15,630,929

15,079,913

Cash

*

*

S.

curity

TRUST

Loans

resources

$

69,429,912
*

Deposits
Cash

Following
the

June 26

on

of

directors, Law¬
Marshall, President of

C.

rence

meeting

a

board

the Bank of the Manhattan Com¬

of New York announced the

pany

promotions
Thomas

J.

Stumpf

of

to

Mr.

James

Jones

G.

and

Arthur

Assistant

Brush

will

Brush,

S.

Govt, security

Undivided

remain

in

charge

of the bank's Bayside Office. Both

Mr. Jones and Mr. Stumpf are at
the bank's Main Office at 40 Wall

OF

THE

MANHATTAN

NEW

COMPANY

S.

and

1,260,315,376
1,148,526,545

Govt,

curity

Assistant

Cashiers:

438,747,509

Martin

J.

320,634,110

293,396,770

Duncan

McManamy

THE

and

CHASE

Total

J.

Logan

807,747,807

714,937,905

178,780,808

resources

Cash

and due

248,022, 394

S.

bills disct.

284,801, 218 296,235,449

profits..

10,476, 779

*

COM¬

*

9,833,746

*

Mar. 31/52
$

Total

resources

Cash

and

Undivided

U. S. Govt,
Loans &

*

PUBLIC

COMPANY

OF

and

due

NEW

U.

S.

YORK

$

127,252,302

and

due

Mar. 32, '52
$

454,819,315 452,505,467

416,912,533

142,671,531

129,997,542

from
-

Govt, security

holdings
Undivided

and

June

OF

NEW

132,607,142

148,636,157

169,169,305

164,784,489

4,759,540

4,495,712

resources-

Loans

19

President

&

53,633,415

A

Co.

14,185,284

*

nearly

*

21

Dime

#

proposal for the merger of
Fidelity-Philadelphia
Trust

the

of

Philadelphia

and

announcement

is

has

been

stockholders

of

approved

507,207,963

521,943,464

profs.

18,170,849

17,657,153

*

and

from
S.

banks..

Govt,

*

*

NEW

branch

service

years

Savings

which

Bank

of

time

he

this

year.

The

Olney, and will enable

Deposits

Trust

Cash

had

Total

tinuously with its London office.
made

was

Assistant
was

He

Dec.

banking
British

born

was

30,

1894,

and

with

career

in

S.

ing
facilities
to
the
complete
banking services already offered
by the Olney bank."

tired

on

July 1.

tirement,
watch

his

a

To mark his

associates

presented him with
and

set

luncheon, while

at
a

re¬

the

wrist

of

luggage at a
the Dime Club,

The "Inquirer" added:
"With this merger, Fidelity will
obtain i.ew deposits of nearly $10,-

Continued

on

not

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

an

for

World

years

Ltd.,

828.986,707

discts.

814,092,487

805.451,639

47,087,076

45,415,453

*

his

and

during the

War with the British

THE

HANOVER




Prospectus may be obtained in any State in which this announcement is circulated from only such
of the undersigned and other dealers as may lawfully offer these securities in such State.

NEW

30, '52

YORK

Mar.

HALSEY, STUART &. CO. Inc.

31/52
$

Total

resources.

Deposits
Cash

and

U.

S.

Govt,

curity
Loans

1,732,401,,629 1,694.022,625
1,559,262 ,326 1,525,914,288
498,005 ,973

535,387,,985

543,325,386

__

603.239,,294

567.201,235

115,492,,791

115,011,839

un¬

profs.

AUCHINCLOSS, PARKER &. REDPATH
WM. E. POLLOCK &.

bills

discounted

& CO.

478,593,523

se¬

hold'gs

and

WEEDEN

INCORPORATED

due

banks

divided
4

The

*

BANK:,

Ju$ie

Surplus and

Army.

782,840,721

was

the Bank of

Africa,

four

834,507,473

Undivided prof..

&

June 1, 1982

se¬

822,718,054

loans

Due

due

hold'gs

from

West

Mortgage Bonds, Series E, 334%, due 1982

$

England

began

England Power Company

Price 1007/s%o and accrued interest

Mar. 31/52

June 27,1952

to add

bookkeeping assignment to VicePresident, George N. Mauger re¬

from

2,732,503,686 2,675,901,010
2,521,084,890 2,475,853,596

banks

Govt,

curity

elected Vice-President of the bank
in 1050, continuing also as Man¬
ager.

and

from

con¬

U.

he

resources.

us

trust services and expanded lend¬

advanced

COMPANY,

J

Bankers

Manager of that office and
made Manager in 1943.
He"

TRUST

ad¬

general

was

Dated June 1,1952

YORK

same

"The merger with the Bank of
Olney will give Fidelity an estab¬
lished business, held in high re¬
gard by the entire community of

*

June 30/52

1927

Company

*

MANUFACTURERS

since

served

First

se¬

hold'gs 1,232,757,394 1,105,955,363
discts. 2,196,947,098 2,154,668,682
Undivided profs.
67,414,226
64,276,527

the

vices quoted Howard C. Petersen,
President of Fidelity, as stating:

&

with

1933

1,477,139,774 1,473,757,543

curity

Loans

Manager of its London

and

New

due

by

institutions,
Philadelphia
"Inquirer" of June 18, which notes
that the consummation of the plans
will give the Fidelity its third new

31/52
$

Na¬

both

$5,000,000

THE

the

tional Bank of Olney, at Philadel¬

55.929,856

46,351,638

14,205.284

profits..

bank to

Mr. Young

Board of Directors.

52,369,310

48,493,730

discts

The

of the

Young.

has been elected Chairman of the

from

*

The

5,697,633,277 5,446,879,594
5,236,752,682 4,988,540,257

The

of Bos¬

that Richard

announce

J.

OF

of

Bank

H.

Jr.,

Mar;

is

*

directors

YORK

30/52

on

branch of the

a

*

of

succeed Roy A.

$

52,973,701

due

_J.

Undivided

bank

profits..,.

the

Bank

Chapman, formerly Executive
Vice-President, was elected on

232,386,601
194,537,887

Brooklyn, during

YORK

413,597,353

banks

board

ton, Mass.,

Govt, security

After

$

S.

Cash

U. 8.

with

resources

as

Merchants National

Mar. 31, '52

193,738,611

i

MIDLAND TRUST

Deposits
Cash

Deposits

*

June 30, '52

Total

under

occurred

it is learned from the

224,256,496

resources

holdings

NEW

Y.

N.

Rushville

The

Y.

N.

Trust Company

latter

the

Rushville

Rushville,

*

YORK

$

107,614,007 102,042,733

MARINE

$

June 30, '52

Total

Govt, security

THE

of

16.

The

4,390,416
11,078,117

*

NEW

Loans & bills disct. 241,264,745 234,625,327
Undivided profits
10,569,024
10,320,044
*

the

of

Security Trust.

BROTHERS, HARRIMAN & CO.,

AND

banks

holdings

*

of

merger

operated

now

77,969,341

4,110,582

11,240,909

Mar. 31/52

124,135,663

...

81,026,495

—

profits..
#

from

banks

*

Rochester,

phia,
BANK

523,284,686 517,949,124
471,371,123 465,853,639

Deposits

677,626

Bank

name

*

NATIONAL

resources.

of

-29,729,114

bills disct.

Undivided

BROWN
THE

The

security

holdings
383,721,990

144,425,037 126,189,322
4,551,218
9,237,570

profits

2,580,255

720,239

.1/

64,008,495

383,366,867

_______

4,217,600

profits..

due from

banks

security

holdings

177,625,750 140,457,307
142,114,593 105,130,541

Deposits

from

Loans & bills disct.

Mar. 31/52
$

$

249,130,399 230,494,935

Govt,

18,439,543

discounts

&

*

161,457,727

holdings

CITY BANK FARMERS TRUST COMPANY,
NEW YORK

822,316,337 789,021,773
768,889,837 736,321,616

banks
U.

Loans

244,537,407

due from

YORK

$
Total

11,702,437

17,899,186

William

NATIONAL BANK

Deposits

(England) office, died on June 26
in London.
Mr. Oxley had been

first

808,394,185

June 30/52

Deposits

43,182,513

16,147,165

P.

June 30/52

Loans & bills disct.
on

Kenneth

June

U.

se¬

discts.

and

served

have

Jesse

MacLean, T.

365,673,655

*

on

NEW

This

Lawrence,

Roland H. Oxley, Vice-President
of Bankers Trust Company of New

In

OF

$52,541,004

from

U. S. Govt, security

U. S. Govt, security

Undivided

Dec. 31, '51

banks

June

$

*

EXCHANGE BANK TRUST
PANY

Mar. 31/52

COMPANY,

48,110,516

Cash and due

State

YORK

re¬

$57,755,101

resources

with the Security
CO., INCORPORATED,

16, 1951,

'52

Deposits

1 014,047

*

720,985,261

Loans &

was

Y.

N.

appointment of the following

new

Cash

hold'gs

&

Undivided

,

district,

$

due

banks..

York

1,031,799

resources

and

TRUST

BROOKLYN,

8 179,307

*

Deposits

July 1. The bank also announced

Mar. 31,'52

1,225,720,756

from

U.

*

COMPANY,

associated with the

$

Loans

CORN

67,466,631

of New York it was announced

CITY

1.341,227,802

resources.

Deposits
Cash

*

Cash

idents of the Chase National Bank,

YORK

June 30,'52

Total

8,325,614

Surp. & undiv. prof.

Cash

COUNTY

11, 894,060

discounts

&

was

charge

until his

Sickler.

Street.
BANK

250,375,792 214 482,561
329,352,458 326, 661,403
11,544,381
10, 845,625

profits

KINGS

Undivided

banks

holdings

U.

F.

Treasurers.

8,011,149

11,566,661

&

Total

due from

Loans & discounts-

been appointed Second Vice-Pres¬

the

8,056,208

holdings
Loans

March

on

post he held

holdings

banks

in

tirement this week.

due from

$

214,887,587 205,376,337

*

Ohio-Pennsylvania
of

YORK

Dec. 31, '51

June 30/52

741,468,953 694, 584,024

and

banks

Robert R. C. Pape and Robert J.
are

and

NEW

2,180,010,102 2,044,908,441

*

Park, who

*

Mar. 31/52

1,541,981.993 1,573,995,277

__

Deposits

31/52

826,341,806 777, 830,844

bills

discounted

appointed

Mar

accounting

June 30,

$30,489,532 $30/
,504,330
28,126,241
28,,180,602

Y.

$

Total

hold'gs 1,547,303,755 1,500,631,261

and

N.

of

Vice-President

*

COMPANY, NEW

resources

J. P. MORGAN

COMPANY, NEW

June 30/52

YORK

se¬

Undivided profs.

*

*

$

6,025,683,556 5,883,765,872
5,541,640,663 5,406,887,533

banks..

Govt,

Total

*

June 30/52

due

and

from

U.

573,621,119

24,
1941,° he
Comptroller.
He

3,027,312

353,777,886

discts.

YORK

elected

7,756,900

3,109,811

328,641,872

OF

$

resources.

Deposits

appointed Assistant

were

BANK

June 30/52
*

districts
Division.

8,372,903

June 30, '52

382,368,675
575,134,810

TRUST
THE

bills disct.

U. S. Govt, security

YORK,

world.

Fifth Avenue Branch, and Messrs.

418,754,843

Oct.

on

21,604,294

security

TRUST

had been associated for

named

which

holdings
Loans &

he

Nov. 3, 1931 as a general book¬
keeper. On June 16, 1939, he was
appointed Assistant Comptroller,

Total

se¬

hold'gs

&

NEW

same

year

and John

Barnes

11,486,171

24,593,322

U. S. Govt,

Cash

of

estab¬

opened branches at
Hong
Jaffray, Eben W. Pyne Kong and Yokohama. Today the
bank has 12 Far Eastern
branches,
C. Slagle, formerly As¬
sistant Vice-Presidents, were ap- in addition to 44 other overseas
branches located throughout the
pointed Vice-Presidents.
Mr.
James

36,366,302

10,332,160

due from

banks

CLINTON

1,348,035,845
1,312,738,905 1,200,907,639

banks..

Govt,

50th

Eben

38,680,831

Cash and

$

*

U.

City Bank of New

branches

$42,048,442

YORK

due

and

from

20,922,768

*

National

$44,456,351

resoruces

Mar. 31/52

1,460,520,479

Deposits

Total

Undivided profs.

the

COMPANY, NEW

519,835,433
429,623,550

lished

80,464,256

se¬

sequently

Dec. 31, '51

Surp. & undiv. prof.

82,184,218

TRUST

due

The National

Total

1,397,599,413 1,344,024,899

31,'52

457,248,130
720,131,190

&

746,245,313

YORK

June 30, '52

$

hold'gs
discts.

Loans

755,314,385

June 30,'52

1,857,270,375
1,707,538,687 1,690,155,971

banks..

S.„Govt.

798,640,249

which

and
NEW

bank,

plate. Leaving an export-im¬
port
firm
in
Manhattan
with

on

4,026,012

*

CO.,

*

1,873,104,534

-

and

from

16,618,1

*

the

engraved sil¬

an

years, Mr. Mauger joined the
staff of The Dime Savings Bank

37,2973

4,112,335

SCHRODER TRUST

of

group

Mr. Mauger

30

10,151*

41,288,964

Deposits

714,650,111

profs.

Undivided
Mar.

$

Saxon

11,796,215

18,200,248

se¬

discts.

curity

June 30,'52

• -

■

♦

*

Loans

TRUST

89,184,040

62,569,123

due from

banks

Mar. 31,'52 V
$

due

hold'gs

Undivided

CHEMICAL

NEW

100,018,512

67,690,817

and

employees'
gave
ver

$

Surp. & undiv. prof.

OF

3,085,389,645
2,624,548,347 2,652,410,154

banks

Govt,

U.

&

Cash

3,059,578,614

......

and

from

Estate Board of N. Y. Inc.
BANK

Total resources

Deposits

holdings

$
resources.

Chamber of

Savings Banks

Mar. 31, '52

U. S. Govt, security

$

Commerce,

CORP.,

YORK

June 30, '52

Bank

tor

the

NEW

YQRK

by N.

Chairman.
of

it

June 26

on

Jackson,

New¬

COMPANY

June 30/52

Total

Madison

SCHRODER BANKING

Loans & bills disct.

Willard K. Denton, President of
The Manhattan Savings Bank of
New York has been elected to the

was

J. HENRY

*

TRUST

NEW

the

Mr.

Manager.

*

GUARANTY

At

President

$

new

man

CONSOLIDATIONS
NEW

Bancroft,

of Excelsior Savings Bank of New
York announces the election of

CO., INC.

page

46

14

The Commercial and Financial Chronicle

(14)

,imi

'■'*21

Vwf viliiilvilli

■■

side- .'
Threat to U. S.

Liberty and Progress

By WHEELER McMILLEN*
Editor "Farm Journal" and "Pathfinder"
*

Contrasting chemical industry's contribution to man's welfare
through agriculture and industry during last two decades with
and

McMillen

unprogressive

if this trend of power

warns

of

practices

continues, it

'

destroy

can

States

have

tamely

have

we

accepted

the

From

of

an

optimistic

marvelous

far

point -of

stand ready for

we

knowledge

of

the

have

„

the

become

cata¬

that

the

elements

Government.

so

We

limited

extremely

We

tions

is

-ends

only

limitations

liberties,

man's

life,

man-

body in. the

made

com¬

these

things

We

past.

In

to

have

been

how

create

enough

McMillen

Wheeler

that

far

so

almost

any-

thing loose can be carried to almost
any
place on earth.
The

almost any

economic surpluses of

be carried to other l°ca-

can

area

where

tions

they

JNeariy

production

powers

oeen

Literacy

dramatic.

these

all

mitted
no

com-

equaiiy

the in-

on

is

lnier-

the level of education cqn
expected to rise at a fairly
rapid rate. Health advances, to
which
chemical
products
have
crease,

_

blessing.

'i

-

jn

ily more wis

1amiam

y.
,

with

So

better

better
better

health,

communication,
greater knowledge of nature's laws and
materials, the future of man on
earth
during
the
years
ahead
would seem to offer an approach
education,

better

better transportation and a

to

in

fields

all

but

grow,

Achieve-

perfection.

Utopian

merits

bound

are

will

progress

to

done.
What

are

the obstacles that will

delay the rapid
that

ress

and broad prog-

clearly possible.

is

Wars organized by governments
and
the
world-wide
efforts
of

bureaucracies

to

the

manage

af-

fairs of men—affairs which Americans have

superbly demonstrated
managed far better by

be

can

free

individuals—are

formidable

threats.

the

regulation

however,

of

and

social

Security

TVA,

regulated

system,

greater

i«g

i

t

WS.SOVaVjune

Chemical
24

of

11**11

Manufac'tur"

the
Association and

thetic

man-

Kjf

R/f

themjofntyBanqUTeTJ
Chemists'
Organic

is

products

are

is

War

the

Syn-

Manufacturers

1952."P Ur

pr,ngs'

the

job.

^

rightly

tury ag0

taken

of

No

one,

closer

toward

any

Utopia

of

the :elec-

people

many

the

are

illusion

of

must

also

be

to government,

up

"The chemical industry is con-

developing experimental
which create
manifold

stantly

products,

new

outstanding

uses.

accomplishments

in this iine has been the

ment.of
to

new

a

natural

Industry

the

develop-

'cold rubber,' equal
in

rubber

many

spects, better in some.

...

of

One

re-

Last year,

ican

industry has created

neH' l0.bs' §lven

synthetic
human

drugs

for

suffering,
0f

sources

troleum
5er

us

remarkable

the

relief

developed

industry introduced polymers

ma+erial

raw

perfected

upon

HI F. EBERSTADT
39

Broadway

&

request.

in

svnthetic

man-made

new

rub

fibers

than

more

20

million

more

Americans.




such

perts

steps

Color,

assembly.

permanently i

plastics,
molded

plastic

molding

instance, is
t e d in

for

details

and

replaces

lextues

Plasties
'

.

"The first synthetic yarn was
SpUn in the United States in 19i0.

.

bv

contributions,

its

than

complished by
billions
which

constructive

has

all

been

the

ac-

taxpayer
has

government

spent under the pretense of agricultural aid.
By adding to the

1941' tbis fiSure bad grown to

J19ea^ntnh^n^n^ted/ta^1^^®d
2,200,000^000 pounds of plastic ma-

tenals. plastics are now among
°Hr billion-doilar-a-year indus-

tries'

the year contributed materially to

"World War II use of plastics
eased shortages, improved end

lives, the balance of constructive

products,

achievement

these synthetic materials. The industry
expanded
tremendously,

is far

the side of

on

is

the

ernment?

matter

What

great

has

is

the

danger?

always

with

gov-

source

of

The

human

aspired

toward

progress in arriving at Utopia. At

time.a lust for

same

power

is ever present iri a few ambitious

These

men

are

forever

promising bits of Utopia. Gaining

but,

proved

^ldl^ary

the

worth

.

,

governments

ted

to

extend itheir

far,

on

the

progress,

evitable

nretense

thev

a

are

but

/

lightness

ligniness,

,

strength, flexibility, corrosion resistance, transparency, low moislure

absorption,

adaptability

to

,]Yld®*y varying climatic condi-

They

Russian

in-

collapse,

indigestion

and certain in

in

navigational

For the

financial, commercial

and technical aspects of the

CHEMICAL

PROCESS
INDUSTRIES

ask the specialists in the

to

war

equipment.

in

functional

Plastics

parts

of

time to

§ears

and'electrical equipment—

behind.

their

Predictions

*.

,

.

.

„

plastics in place of metal

history,

collapse, if

or

bas

costs

frequently trimmed

eliminating

or

wood

by

materially reduc-

manufacturers,

process

in:

Merger and Consolidation Studies.

•

New5 Product Analyses.
Techno-Economic

are

production

billion

on

pounds

will

annually

closelv

executives

chemists

and

have

with

help

better

drape

Techno-Economic

•

numer0us

freshness,

their

contribute

Selection
ment

and

the

and worsted

of

Projects

strength

of

woolen

Another

and

processes

tries

aid

you.

"know-how'

enough
to
resist
abrasion
and
withstand
the
strains
of
highof

companies.

pro-

'sizes,' rayon yarns before
weaving.
Bonded
together/ the
fine
filaments
become
strong
or

for

Let the Aries experience in

the

We

requires
your

.

no

Invest¬

for

new,

Our

chemical

chemical

furnish

and

yarns.

Com¬

Company Expansion.

tailoring quali- esses ranging from
ties to suitings. Another chemical
tonnage chemicals
increases

of

technologists

made

fabrics retain

original

Audits

Pro¬

panies.

textile

contributions to the products and
processes of the textile industry,

They

for

by

,

"Working

Studies

Use.

spectus

reach
•

jggo.

indus¬

complete

proven

fine

proc¬

organics

investors

to

integrated

additional

to

and

service

research

oh

part.

Without

obligation,

write

for

our

newsletter Chemonomics.

fabrics

gives flame resistance, protection

R.S.ARIES & ASSOCIATES

.

short

life.

m other items where nothing else partial

We,'

and

underwriters and investors

are

shells, bombs1 and, rockets'as well speed looms,
in radar equipment, assault
"Chemical treatment

Sena0de0S'
boots, gog-

chemical

.

•

far

nQt

fibers

as

dictatorship
all

re¬

supplies.

copper

fibers —viscose, ace-

n0ncellulosic

newer

"-ions, ana resistance to salt water, tects,

permit-

one

to

•

nebTiet liners, jungle
powers
too Sles»
medical
kits,
small-arms agamst moths and mildew,
of hastening
"Ordinary cotton bags have
covers,
propellers,
binoculars,

have

destiny.

see

civilian

™

^t[ng ^fandhrd^ fo^8
^
a

go

be

and

% ,
battleship
alone
tor
instance, Synthetic resins control shrinkmere are more than 1,UU0 ditter- age and impart wrinkle resistance
en US(r? 0 wf
'1?- an airplane» to woolj cotton, rayon and blends.

"Defense uses for plastics range
from 'dog tags' and buttons to

necessary

economical

1

"Cellulosic

of

requirements abthe output, in a

defense

tate, and cuprammonium—account
fQr the j3ulk of this volume. The

that

.

wealth of the peoole, creating new
sources
of
wealth,
and
saving

of

tailings from earlier mining
and thererby increase

"One of the first offspring of
industry.
consult ARIES &
the chemical industry, the plastics in 1951, 21.6% of all textile fibers
indus1:ry attained importance only were of synthetic origin. The ASSOCIATES.
*n
*as*. decade- Thirty years chemical industry's production of
a^° Producti°n of plastic materials nearly 1.5 billion pounds of high
The
Aries
organization has served
was a meaSe^ 5,944,133 pounds, quality man-made fibers during

needs.

the

agents

work

it

operations

liquids.

prod-

consumer

ef¬

more

flotation

made

several

one-piece, light-weight,
carboy for shipping

a

loc., estimated that 4 000 compa-

We

easier. Newer,

chemical

have

one-piece

a

"Polyethylene,
the
squeezebottle plastic, has recently stepped.
as

ficient

are

be assembled,

Society of the Plastics Industry,

decades,

men.

many

"Most copper ores are low
grade,
but concentration by methods such
as chemical
flotation have made

metal parts that previously had to

two

?he

as
1,000,000 tons of
have been produced from
in this country in a year.

ores

machining,

as

Often

in.

American agriculture during these

our

"As

copper

n c o r p o r a

shapes

filling peak

race

agree that this figure was
probably doubled during 1951.

.

painting is not needed,

so

Intricate

42^,356,692 pounds. For 1951 the

case

Cicy

ing

betterment of

for

more

What

by^ steel producing and

companies
$310,000,000. Though cur¬
figures are not available, ex¬

rent

—

—

<ain defense and

The chemical industrv alone has
d0ne

Five years ago,
for

expenditure

fabricating

unbreakable

he-

impr0Ved food production so that
today 8 million fewer farm people
feed

steel

special highly-

reached

of cruelty

—

qualities.

of

CO. INC.

New- York

millenium

a

on

annual

.

and

Once

available

into

dicate further advantages for cer-

new

P™dUCed-

ing. is

gov-

darkness.

u

actually

the price and terms of offer¬

kind
and

Sam? *2°'years»,the Amer~ of oil-extended rubber, which in- out
chemical

•

power cannot afford to wait for
the slow process of work
by which
bits of
Utopia can

shares, including

of

painting, polishing, finishing and

for the public good.
Governments
try to
hurry up
Utopia with short cuts. Men in

describing the Com¬

forces

which induce

processes

chemicals

a

but

a long list of chem¬
variety of purposes,

a

recovery

coal.

or

-ts

Achievements of Chemical

as

and its

evil

total

or

only

Copper

aiene and stryene from petroleum

new

power

pany

the

plenty;

desired

not

processes

cf

use

for

including

ernmental power will carry man-

—

————;

and

Through
Whole Manufacturing Field

cen-\rubbers

power,
they are never able to
fulfill their promises.
They rationalize their evil acts of

A Prospectus

whether

the

peace

involve

chemical

the steel to take

little
still-distant

Chemicals Fan Out

Federal debt

a

$259,000,000,000

cbarged

half

a

and

strong

a

-

international

wars>

involvements, and

from

away

business

Two

icals

to work his way each year a

that

of

'also the

man

permitted to continue laboriously

might bring, will do

■■■:

series

everywhere in the world—will be

undertak-

task.

accept
■

whether

America—perhaps

in

man

individual

himself

Too-

to

whether

determine

manufacture

years

Continued from page 6

than those which
—v"

powers

®

coke

"The various operations of steel

decade of deci-

a

mid-century

easy

change, which
1952

launched
subsidized

and

agriculture and given labor unions

obstacles,

bureacracy
both

—,
«t

two

inevitable.

are

man-made,
made,

these

delude

These

full

no

one-year

no

of

chemistry.

Neither

of

rescue

business, established the so-called

come

must be

gradually because work

re-

we

the precedents of history.

willing
■ ■ /

'

increased

_

lor

hie
nis

and
ana

himcpif
him sell

fnr

nro

care

will

should

last 20 years government

jias

contributed, enable man

notably
fr

al-

The

unmixed

an

be

to

have

freedom,

liberty will be
ing,

This is indeed

sometimes managed to

ready
ve»"e

it has

but

,

with

heated in

are

stances.

fortunate.

evils,

proved

means

limestone,

.

a

by

concentrated

nave

we

relatively

universally
in

States

mixed

ores,

upon

alloying sub¬

,

century ana

a

experience

stitutional

possible

the

of steel with present-day qualities

Decade of Decision
sion.

tions of

in

chemicals, production,

.

his-

under Con-

his

It has done

United

of

half

take- not

torture

times

many

the

were

Advances

rriunication

world's

fho

Af

and

but

process.

aH:oi ine woxias

is

changeable.

be in de-

may

"n

1

tvt

,

mand.

its

Our government has not yet com-

physical
power to remake the surface of
the earth, if it needs doing. The
arts of
transportation have advanced

of

it will throttle progress,

proscribe

nat¬

know

Gov-

but neces-

Fortunately, with
a

few purposes.

a very

upon

power, or

reac¬

s.

really is.

necessary,

ural and

pound

recog-

The usefulness of government de-

thou¬
of

for what it

for only

sary

thousands

sands of

become

on

tory would point to disaster.

important

inva-

steps toward

many

logical forecast based

any

A

tremendously

ernment

have observed

upon

gov-

^

government

nized

of

earth.

dan-

of

In this" decade of decision it has

gen¬

logued

and

estate

Limit Power of Government

t ion. We

era

evil

most

ernment.

earth than any
previous

his

state—the

gerous

We have

progress.

greater

in

man

future

a

"WithouY

not

,

view,

Steel

Too many people

which that great document is current of air to
produce pig iron
the concentration of power in the built.
which contains as much as 4% of
Federal Government—power that
The Constitution puts into a carbon and
smaJJer amounts of
belongs to the states and belongs legal charter the greatest single
silicon, phosphorus and sulfur.
to the people—and we have taken
conclusion of all human history—
"Steelmaking involves removal
so many steps toward the concenthe simple sentence that is the of some of the carbon and other
tration of the Federal power ir.
Golden Rule: "Do unto others elements and the addition of the
the
executive
department, that as Ye would be done by."
correct amount
of
have taken

concept of American liberty and progress. Points out useful¬
ness of government
depends upon limitations of its power.

Thursday, July 3, 1953

.

si°ns of freedom as inevitable would be impossible. Steel might
yet reached the stage of absolute manifestations of some imaginary well
be, called an outstanding
government, but we are on our "wave of the future." 1
product of metallurgical chem-*
way.
If it were not for the treWe must make more personal istry.
mendous.vitality which American efforts
to
re-indoctrinate
the
"Through a chemical reaction in
freedom
already has shown, 1 American people with
genuine the blast
furances at the very be¬
would say to you tonight that 1 understanding of the United States
ginning of the making of steel,
-contemplate the collapse of the Constitution and the principles of iron
in America,

United

Mr.

government,

.

security without the responsibili-

ties of liberty.

Here

To

restrictive

destroyed from the out-

not

a

lnT&<lf
Threat
•

Governmpnt: A
Government: A

Klff

.

chemical

A

chemical

CONSULTING ENGINEERS
a

treatment,

•

acetylati0n,
structure

alters
of

cotton

the
so

^ba^ ^ becomes extremely resist
tant to heat and rot, lasts 12 times
as

long.

&

ECONOMISTS
I

SPECIALISTS
CHEMICAL

IN

PROCESS

INDUSTRIES

400 Madison Avenue, New York IT, N.Y«

Volume 176

Number 5130

..

.

The Commercial and Financial Chronicle

»

(15)

/

"Although most metallic
is obtained
trates

from

the

furance

by

siderable

ore

copper

concen¬

methods,

quantities

con¬

used

process,

a

equipment is
electrolytic
impure copper

an

dissolved in

are

chemical

a

solution and pure copper is plated
the cathodes.

on

Magnesium

produced

before

World

II, but only to the extent of
thousand

tons

a

War
few

a

Demand

year.

industry and the
production difficulties

of

cessed

with

the

at

by chemical

a

at

by

the

through¬

as

chemical

precoat.

Coating
lacquers
used
by
the
industry produce' such ef¬
fects as high gloss, or the
appear¬
and

melamine

"The

chemical

scores

heat-sealing

industry

and

simplify

paper-

They

range

processes.

used

turns

quantities of caustic

in

pulp-processing

to

mobility
pendent

applications

"The

the

rate

of

modern

is

war

chemical

contribute

plasticizers for

and

continuous

In

paper specialities.
processing and produc¬

paper

tion,

chemicals

servatives

in

used

are

pulp

as

pre¬

stock,

mill
coating compounds; for
grease-proofing and surfacesizing;
water and

as

heat

a

fo1'

transfer

medium

to,

way

of

it?

the

nation

is

sur¬

defense
to

smash

transportation.

trucks,

buses,

Automobiles,
highway
trailers

and

railroad trains carry men and
material to and from the battle
and

industrial

have

invincible

t

this

na¬

and

su¬

tubes,

antioxidants. Modern lubricants of
kinds are given desired char¬

acteristics

"Silicone insulation makes trac¬

by

chemical additives.

"Plastics put

fronts.

Take

away

enemy's tanks and planes and
ships and he is impotent. The
an

safety into safety
glass. Acrylic plastics are used for
shatter-

longer; keeps them running
24 hours a day in
spite of over¬
loads, heat and high water. Sili¬
cone

and
breakage-resistant
glazing. Instrument panels and fit¬

tings

oils and greases remain prac¬

tically unchanged by tropic heat
artic cold, make
conveyer sys¬

speedometer

tems operable without continuous

maintenance, offer a
potential
saving of $45,000,000 a year in the
bearings
of
industrial .motors
alone, make permanent lubrica¬
a

from

dials,

to

ance

terior

hydraulic fluids and in¬

upholstery, provide protec¬

tive coatings for wings and fuse¬
lage."

practical reality.

of

ing magnesium involves the elec¬
trolysis of fused magnesium

chloride,
is

large

a

derived

from

part

which

of

water.

sea

Mag¬

nesium

hydroxide is precipitated
brine by the use "of
and the hydroxide is con¬

from

ocean

lime,
verted

to

chloride

by

''Still furthef

hydro¬

action

of

chlorine

with

% Hi ll

methane

natural gas.

or

"This

important

more

■

liberated

from

its

curring oxide in
fluorides

in the

is

naturally-oc¬
bath of molten

a

(synthetic

cryolite)

United

prior

States

100.000

1940

to

in

averaged,

tons.

During the

was

ililiiiipi

than

hol

Petroleum

fed

into the operations which

produce

petroleum, fourth prin¬
cipal industry in the country.
I "The industry uses an estimated

$250

million

materials

drilling

worth

mud

even

chemical

in

preparing

more

key part

At

today and will play

the

important role in the

sion program

is already under

our

TerreHaute, Indiana, Plant

time

way at

of

of

moving

tons

acidic

Output of Nitroparaffins continues
at

production of Ammonia and Meth¬

development of

anol from natural
gas.

markets for these versatile chemicals.

capacity at Peoria, Illinois, with the

of

Phenol

impurities,

NOW. ..6

CSC

increase

helps
of

is

the

in

flow

refining

of

the

duces

petroleum

sulfur

■

s
■:

Al-

crystals.

Add to this CSC's activities in the

pharmaceutical, agricultural

and

all

animal

nutrition,

chem¬

automotive

potable spirits fields. Together

thes|e product divisions establish

the

sound, broad base for the

com¬

pany's development in the future.*

crude

oil

pro¬

bihion

two

annually. An

estimated 80 million barrels of this
volume
might
be
left
in
the

ground, without

DIVISIONS

chemicals.

Q

•

wM
::%W:

\

r

!j#Lj

from

industry

approximately
of

derivatives, Acetone, and

M..

of

manu¬

additives.

remove

m

oil.

gas.
Tetraethyl lead is
used to impart anti-knock
proper¬
ties to gasoline.

barrels

new

as

derivatives, Ethyl Alco¬

in

natural

"The

and

major

and'

used

the

lube-oil

kanolamines

uses

PRODUCT

-

acid

lubricating oils and in
facture

new

a

caustic

purposes.

"Hydrochloric
to

and

ical,

Sterlington, Louisiana, to double

yearly in tne
petroleum, for re¬

refining

wells

all-

an

high.

and

supply for such products

bulk Riboflavin

production of Methylamines from

petrochemicals has reached

ahead. A $20,000,000 expan¬

consumed

are

other

an

a

leader in the

a

alone.

"Thousands
soda

of

annually

of CSC's activities

years

"Large quantities of chemicals
are

PETROCHEMISTRY is

esti¬

was

800,000 tons.

petrochemistry is just

fermentation

of

Butanol and

tenfold.

during 1951

more

of

this

war

lower-grade bauxite were
developed. Primary aluminum

mated at

field

source

of

production

>

the

Chemical processes permitting the
use

blueprint

Of course,

part of the picture at'Commercial

for expansion

around

increased

figure

doubling the production

!:Solvents. CSC is still

by

electric current. It is refined
by a
somewhat similar method.
Yearly

production

than

) of Formaldehyde by the end of 1952.
V

metal

war

in~Cali-**^

fornia. Here the program calls for

;

Aluminum
{

expansion is' taking

place at CSC's Agnew Plant

chloric
acid.
/This
necessitates
large chlorine plants, since the
hydrochloric acid is made by re¬

m*-.: p i
,

;

r+fp*

'

-

I

,"
/''/
<

...

V

'
C

i

J

■itflFf-

INDUSTRIAL CHEMICALS

Butyl, Ethyl & Methyl Alcohols &

Derivatives—Nitroparaffins &
Derivatives-Ribofiavin, U. S. P.

PHARMACEUTICALS
.

AGRICULTURAL CHEMICALS

Antibiotics—Penicillin & Bacitracin,

Commercial-grade Ammonia, Nitrogen

Veterinary^, Products, Hypotensive
Products, Lipotropic Agents, & Blood

Solutions, Insecticides-Benzene

Volume

Hexachloride & Dilan®

Expander

4

Pulp and Paper

"Paper, as essential to the mili¬
tary as ammunition, could not be
made

without

chemicals.

starts

paper

assure

latively
woods

long
and

stronger
assist
of

a

in

paper.

fibers

mixed

woods,

outperform

r§3!I»»

make
also

producing a clean sheet
By controlling pitch in
surfaces

paper

becoming spotty.

fibers

M

M--M—/ #ms -3

yield of re¬
from hard¬

Chemicals

paper.

pulp, they prevent
from

1-1% II

wood
pulp.
pulping agents,

good

1

mm?

Most

with

Chemicals supply
which

«.

felt

Synthetic
on

ANIMAL NUTRITION PRODUCTS

AUTOMOTIVE

Antibiotic Feed

Peak® & Nor'way® Anti-Freeze,

Supplements—Baciferm,

Duoferm & Penbac, Vitamin Feed

Supplements-Riboflavin & Choline

SPECIALTIES

POTABLE SPIRITS
Neutral Spirits & Whiskies;
Rackhouse Barrel Storage

Radiator Chemicals &
Other

Automotive

Products

paper-

making machines.
"Moisture
tant
used

in

some

for

resistance
paper,

paper

cups

is

such

impor¬
as

and

that

tubular

containers, Kraft bags, check and
ledger
papers.
Synthetic-resin
sizes

chec-K

resistance
some

to

paper,

absorption,
ink,

increase

water.

like towels




Again,

and

tis¬

COMMERCIAL

SOLVENTS

CORPORATION

GENERAL OFFICES: 260 MADISON AVENUE, NEW YORK

16, N. Y.

for

horn

for mak¬

process

plastics.

used

are

buttons,
escutcheons and direction lights.
Chemicals add overall safety to
aircraft, contribute flame resist¬

or

tion

molded

are

Thermoplastics

year.

\ "The principal

mats,

all

in industrial output.

preme

Tires,

blades,
engine
mounts,
pedal pads are improved with,
chemical rubber accelerators and

rolling

made

year.

wiper

trucks,

battle

in

every

of

tion motors and generators last 10

cripple
a

production

times

"Perhaps the quickest and
est

which

tion

and

odor-masking.

program

the

improvement

aircraft, automobiles,
tractors, locomotives and
stock

of rubber saves automobile
manufacturers millions of dollars

industry's prod¬

to

"Chemical curing in the produc¬

,

tion

the

and

de¬

chemicals.

on

ucts

formalde¬

of products which help

improve

making

bleaching,
from
phenolic resins for

laminations to coatings for

paper

Transportation

hyde resins impart wet strength to
paper
used
for
military
maps,
paper cartons, bags and towelling.

to

for

and feel of leather.

"Urea

out

chlorine

melamine and

turned out

was

peak

war

250.000 tons

pro¬

well

paper

soda

water

required
as

a

from

magnesium

to

business, take on
deeper color and reproduce more
and
legibly when pro¬

from the vast

sea

paper

the nation's

expanded the total capacity of the
country's
magnesium* plants
to
300,000 tons per year. Derived
cesses,

causes

clearly

from the aircraft

solution

absorbent.

very

water

papers,

ance

"This newest of the light metals
was

tion

electrical

by
whereby

up"

Armed Forces
out

in

be

chemical

rapidly.
"Blueprint and other reproduc¬

refining of metal to be

accompnsneu

anodes

must
a

extracted

are

by cnemical means, generally in¬
volving sulfuric acid.
"Final

sues,

Here,
"drink

15

—

16

(16)

i

The Commercial and Financial
Chronicle

presumed that industry would

Chemicals—Their Vital

vert

held

its

tion

80th

Annual

For example:

Conven¬

the

and

public

with

cents worth

cal

into

haps

industry in the defense pro¬
gram.
Besides outlining results
and achievements
of this rap¬
idly
expanding
industry,
the

memorandum

Chemicals

and

Such

the American way

of

the

or

of

in

its

processing

the

an

significance

be

become

can

SERVICES IN THE

basic

Contrary

un¬

A

In

1910

cial,

managerial,

velopment of
in

status

potentials.
of

the

you—

of

a

We

and

of the finan¬

technical

company,

a

are

future

appraisals

specialize

ment

proc¬

thorough examination

company's

present

in

operations.

surveying

possibilities

for

we

Col¬

the

years,

the

as

industry
basic, vital

a

invest¬

expansion

and diversification.

popular

belief,

1914 it

times

States

pro¬

much

as

Germany

sul¬

twice

and

alkalis

as
England, but
dependent chiefly on
for nearly all organic

were

dyestuffs,

fine

other

chemicals

and

so-

many

drugs.

combines

company

cuss

of

engi¬

one

service for the invest¬

house and

the chemical
process

company.

In

the

last

25

chemical

years,

manufacturing has been expand¬
ing at

an

average

compared

year,

annual

rate

with

of

an

growth of 3%

10%

your

needs

on

a

fidential basis without

to

completely

dis¬
con¬

obligation.

for

all

in¬

the

Germans at

And

CONSULTING ENGINEERS

it

far

farm

use

products,

chemicals.

from

corn,

chaff,

com

Sorbitol

furfural

is

from

never

"The

forget.

war

against Germany was
against Japan is
being won, because of the superi¬
ority of the industry of the United

the

won,

war

States.

The industrial strength of
America has been the
dominating

addition,

they

chemicals

156%

are

an

normal

of chemicals

In

000,000

for

more—than

the

postwar expansion

large
estimated $6,400,-

expanded production
the chemical
industry will

spend between 1951 and 1955. Na¬

Resin

...

ap¬

than

to

American

be

can

this

industry;

the

it

this

would

war

said

war,

to

was

writer

have

been

industry failed in the

tremendous demands put upon it."
If this

ican

be said of all Amer¬

can

industry,

applicable

it

is

the

to

particularly
chemical

dustry.

in¬

V

Special Defense Responsibility

for

which

Plastic

decided

feels

more—industrial

an

element

one

have

lost had that

was

man¬

example.

at

thrown into high
gear by the outbreak of hostilities
in Korea.
This accounts in

machining

finishing operations.

De¬

Magnitude of Expansion

grain

save

S.

were

general level of all industrial pro¬
duction since 1935-1939.

measure

may

the U.

to

Commerce,

war.

more

War I, and it will be even
applicable in the future. If

more

any

during

made

ways.

by, eliminating

of

40%

The

different

chemicals

"This comment is far
World

sales

Production of all chemicals has

Sqnthetic Resins and Plas¬
Supplement Critical Metals in
of

for

increased

cobs.

hundreds

store

the rate of about $18 billion.

(3)
tics

sales

1951, according

con¬

able

department

partment

agricultural wastes to valu¬

did,

their

with

a

own

from

have

wounds

Chemical
to

two

ECONOMISTS

the

billion

IN

PROCESS

INDUSTRIES

400 Madison Avenue, New York
17, N. Y.

development
dollar

of

atomic

the

bomb

projects, and continuing service to
the Atomic
Energy Commission,
well-known.

50%

agents

are

stock

in

dustry,

which
come

of

age,

war

is

(1) Synthetic
was

to the American

treme

measure

disaster.

Rubber

undertaken

Costs

in

1942

were

Produc¬

as

an

to

high.

U. S. forces

among

ex¬

avert-

Many

necessity
are
expansion is

essential

to

defense.

portion of the cost of

in

the

War

riod— instead
20

Chemotherapeutic
chemical fortification

find

helped increase live¬
poultry production.

and

of

sources

up

new

materials.

raw

from

recovery

sludges, smelter
oilwell

open

Natural

diminishing supply of
is being supplemented

free sulfur

by

Extend

strategic

the

tive

between

and "sour"

gases

New

gas.

petroleum
for

A

facili¬

new

ties is allowed to be amortized for
tax purposes over a

of

five-year

the

give

defense

us

an

capacity

10

incen¬

that

peacetime.

Dr. Vannevar Bush has
pointed
should the United States

out that

again

become

involved

in

global

war, we could not hope to match
the
forces
in
manpower
which

might

be

arrayed

against

nose-count

mere

vail,"

in

us;

would

we

far out-numbered.

"We

can

be

pre¬

Dr. Bush warns,

beyond

increase

certain

in

up 56%, representing together an
increase of approximately
2,000,000 tons per year.
This alone is
greater than the total output of

aluminum

after

been

metal.

calls

The
for

expansion

completed

plans

for

nitrogen,

that

program

additional

an

phenol requiring no sulfur or sul¬
furic acid have been
developed.

1,000,000
tons by 1955. Styrene
capacity in
1953 will be nearly twice what it

Glass fibers

was

are

as

processes

good

or

better

material than imported
Synthetic fibers have made
independent of silk, have made

us

possible
proved

longer-lasting tires, have
superior in

dustrial

and

uses,

the selection of
A

billion

countless

have

year

will

oils.

Huge expenditures for research
been the biggest factor
in
In

of

the

chemical

number

of

in¬

scientists

and

engineers employed in
search, the
industry
leads
others.

re¬

all

The latest estimate shows

research
annual

personnel.

cost

of

above

and

supporting

The

average

maintaining each
laboratory,

chemical

a

salary,

is

reck¬

oned

at

at $8,500.
Expenditures by
industry can thus be estimated

about

roughly
spent

$275,000,000

20%

by all

of

U.

the

S.

yearly,

$1.1

billion

industry.

Out of this sustained
research
products and processes of
military
are

born, which can be
developed
when ' war

Up Over Five-Fold
Since Pre-World War II

Constantly searching for and
developing more and better prod¬
at

lower

industry has

cost,

the

shown

postwar growth.

The

chemical

phenomenal

seasonally-

adjusted Federal Reserve Board
index of production for all
chem¬

73.7

soda

chemical

tougher,
and

industry.
The
stronger,
faster,

of

lighter-weight weapons
supporting goods and

all the

services,

depends

products

upon

of the research laboratories.

1951

lbs.

to

the

per

177.9

increased

lbs.

from

16

up

scarcely

Every product of the chemical
industry goes to modern war in
some

respect.

Some

of

its

war

products, like certain branches of
the

Armed

Forces,

front.

Just

fighter

can

work

each

as

the

at

front-line

function only if he is

supported

by

rear
echelon and
service troops, so chemicals which

used

are

backed

in

combat

by

up

a

vast

be

must

network of

and

chemical

industry supplies.

services

Modern warfare has

which

a

the

voracious

appetite for explosives, which the
chemical

industry

makes.

The

Added World War

a

ripple—an

vilian

goods

major

difficulties

forts

production
if

CHEMICALS

PHARMACEUTICALS

without

NAVAL STORES

ef¬

taper off.

STEEL—ORES

Chemical Power for Peace

or

industrial

forces

increasing

and

of

all

time.

improving its

In
own

products and their applications,
as

those of

other

it

IMPORT

War

The chemical industry must now
be reckoned among the
greatest

well

Overseas Brokerage

indi¬

defense

as

industries,

generates incalculable
power
for the nation's
economy in peace
war.

&

EXPORT

When time and
accuracy is
essence

our

of the

"Tex"—Two-Way

trans¬

atlantic

teletype — connection with
leading industrial and business con¬
cerns

in

Gt.

Britain

and

Western

Europe makes possible instantane¬
ous and
complete negotiation of all
types

of import and export trans¬

actions.

America's defense potential de¬
the vitality of the in¬
dustrial economy. Implicit in
this
power
is the capacity to create

A complete transcript of carbon
copies of all messages is furnished
with
every
transaction, numbers,
specifications, etc., are therefore

better

recorded

for

Available

to

rives from

and
more
food, housing,
clothing and higher living stand¬
ards

than

had

men

and

before;

women

the

have

advancing

ability to prevent and check dis¬
ease,

lieve
time

fortify and prolong life, re¬
suffering; and at the same
to
keep ourselves so well

armed

that any aggressor will be
deterred.
The following very clear and
significant statement is excerpted

from

an

article

by

Hanson

W.

Baldwin, military analyst of the

.

Chemical Industry

capacity was swal¬
by the civilian economy

cation that current enormous
pro¬
duction may be absorbed in ci¬

or

...

Direct Defense Function of the

chemical

ever

Production

ucts

II

with

output of

1939 and

lbs. to 41.3 lbs.

lowed

fats and

growth

from

rose

Caustic

pound

have
the

Between

capita production of sulfuric acid

clothing and fab¬

synthetic detergents this
conserve

in¬

widened

the

on

production

products

insulating
cork.

enemy

responsibility for main¬
taining technological advantages
over
a
potential enemy will rest

1950.

in

an

Major

products.

Chlorine and caustic soda will be

have

anything

achieve."

can

will

program

enormous

for

an

expansion

expansion

pe¬

usual

years—to provide
for

The

e s.

Chemicals
Resources
and

essential

people:

tion

mortality

looms.

examples of
chemical in¬

the

reduced

(5)

value

few

a

deemed

of feeds have

swiftly

Results and Achievements

Here

in peace and

•

contribu¬

in

of

where

may not be needed in

the

companies'

adjuncts

Certificates
granted

War I,

the, S t at

practically nothing in just

years.

tional Production

in

or

out

industry

tin

in Korean War to
2%—from 4%
in the World War
II, 8% in World

over

of

effective

game., 32,500 professional and

tremendous

rubber

conserving

therapy.

synthetic

two

are

found

dollar

ways

&




As

for

Net

be

worker in

R.S. ARIES & ASSOCIATES

CHEMICAL

pe¬

than

(value per working day), 108.

as

also

dustry.

By World War II, this country's
chemical industry had
grown so
strong that it was ready to beat

are

SPECIALISTS

production

vert

a

average

dustry.

tions

We shall be pleased

increase

greater

coal,

147;

go

wartime expansion which reached
peak in the creation of a billion-

"know-how"

finance and chemical

neering into
ment

the

during the 1935-1939
far

be stated

restated, emphasized and reemphasized, so that Americans

January

necessary to keep food
production at high levels. This is
a
two-way street because chemi¬

rics.

a

Aries

a

increasingly

Thus,

United

as

Germany
chemicals,

de¬

its present

industry, and

Included

the

his

substantial chemi¬

a

three
acid

called

company's plants and
and

esses,

the

a

Paul
Continentals

has

to

the

much

as

for bulletins,

complete evaluation

have

$2 billion.

experi¬

and investors literature.
for

as

riod,

sulfur

foresee, chemicals will

be

can

added

(4) New Drugs Combat Disease
and lengthen life
expectancy. An¬

night

valued at $60 million.
By
tad grown to more than

duced

prepare

of

will

medical

Ameri¬

industry prior to World War I.
early as 1865, production was

As

furic

can

the

own

America had

and chemical engineers. These reports

We

great

present

Washington. It should

and

will

384

January 1946. Industrial chem¬

production today is, in other
words,
five-and-a-half-times
as

must

ahead

tibiotics
and

production

Over

into its

enced and integrated staff of economists

or

43%

a

of

in

ness

American

'efense support.

cal

privately

nitrogen

are

defense:

to

since

recently

:ome

complete consulting service

useable

the

defense

allied

luite

R. S. ARIES & ASSOCIATES

are

Much

coatings

devel¬

illiance has added strength and
itature to both the nation and the
:hemical industry, but not until

Industries of

prospectuses

to

vital

onial. mill.

?

an

acre

agriculture.

gears

economy,

Revere supplied the
vith gun
powder from

Chemical and Process

biased financial analyses by

total

industrial

chemical

oeen

THE FINANCIAL AND TECHNICAL

needs for

to

and

chemical products and
processes,
with their
multiple uses, have

We Invite You to Find Out About

your

II

plicable to World War II

power

self-sufficiency. Expanding

American

meet

War

prolong life of industrial boilers,

the

dominant

economy,

to

jig¬

true picture
of chemicals.

larger
1952,
it

World

war is
plain;
far, it has been overlooked

so

ican

ar¬

may

or almost
negligible but in¬
variably the chemical makes the

designed

countless

(the

yet,

1952 production index for iron and
steel was 261; for bituminous

vol¬

a

548

lesson—indeed, the

major lesson—of this

"only by a
Authority "cer¬
superiority in the use of weapons
food packages.
Plastic piping is tificates of necessity" for chemi¬ of defense
and offense that will
issued
or
cals,
a
pending,
total
rapidly
expanding
industry.
multiply our manpower effective¬
more
than $2,500,000,000.
Ion-exchange resins treat water,

the

small

a

take

much

a

(June 15, 1945):

opment of this century, has fur¬
thered progress toward Amer¬

article.

We offer

the

move

war

January

industrial

January

II

"One major

and decisive factor in this

and

a

Perfusion of chemicals

economy.

or

to

pieces to form

throughout

the American industrial
complex,
to defense mobilization and to the

The cost of chemicals in

a

Vigorously Expanding Chemical
Industry—A National Asset

ufacturing. The proportion, while
impressive, does not indicate the
high importance of chemicals to

ticle

but it would

peace,

saw

products

of)1ife in

In

War

of 27%

that shown by other major indus¬
tries.
In comparison the

harvests.

multi¬

be

can

showed

New York "Times"
during World

in

ical

as potatoes and tomatoes.
New
weed killers result in
bigger grain

plied by the number of chemical
products and their applications to

comprise 6 to 7% of the total dol¬
lar volume of United States man¬

civilian

examples

for

such

for

represent

for

Thursday, July 3, 1952

.

Recentlyintroduced organic fungicides are
greatly increasing yields of crops

death.

umes

allied

disease

to

index

.

yield
pesticides

cals

follows:

and

chemicals

they often spell the
difference between rapid recovery

and equipment.
text

Man-made

each

(1935297

peak was 412), which is
increase over the index

If the nation is

according

The

increase.

synthetics

'

more.
Fertilizers and
will make this possible.

its retail price; ten
of nylon is fabricated

hosiery that sells for $1.5

fed

standards,

American

small fraction of the cost of medi¬
cal care, yet

provements, and in synthetics
of basic materials to create bet¬

portion of the

of

combating

ments, in military material im¬

A

1%

pair.

memorandum furnishes data on
its direct defense functions, par¬
ticularly
in
health
improve¬

weapons

the

1946.

The population of the

limited.

are

be

to

per¬

rate Background Memorandum
of the role played by the chemi¬

ter

by

purposes

clear.

lands

of

elabo¬

an

used

the index of 234 for

over

reached

certain

products

100) reached
January 1952, an increase

country continues to grow; tillable

the cost of insec¬

allied

chemicals

come

is only one-third of 1%
his'farm crop volume; the cost
of the dyestuffs used in a civiliansuit or military uniform
is

Sulphur Springs,
Va., has furnished its members

equals

vastly superior.
(2) Agriculture's Increasing De¬
pendence on Chemicals has be¬

farmer

White

at

and

1939

are

synthetic materials for health and defense.

ticides

icals

for

of the industry and its special defense
Notes chemical industry now. supplies basic

Manufacturing Chemists'
Association, Inc., which recently

re¬

tne

after

rently cheaper than natural, and
at the same time it is
equal to the
natural product in many
respects;

of expansion

The

rubber

But the picture
today is dif-r
ierent.
Synthetic rubber is cur¬

Background Memorandum issued by Manufacturing Chemists'
Association, Inc. points to our vigorously expanding Chemical
Industry as a national asset. Outlines results and achieve¬

responsibility.

natural

war.

Contribution to Defense

ments

to

.

permanent

reference.

Manufacturers
Wholesalers

and

Brokers

Located Throughout the U.

Via Phone

or

S.

TWX-Teletype

INTER-GULF CHEMICAL
& SUPPLY CORP.
Overseas

Brokerage Dept.

509 Madison Ave., N. Y.22 Plaza 3-5282

Teletype NY-1-2345 "TEX" PKL-NY
Branch—Houston,

Texas

Htl'Vl

Volume 176

Number 5130... The Commercial and Financial Chronicle

dramatic

most

development,

the

is

course,

atomic

of

weapons,

the

industry has
amazing

making

but smokeless powder, the propel-

curement

lant,

War

ancT TNT, the disruptant,
have long been the mainstay of
military explosives.
Ammonium

nitrate mixed with trinitrotoluene
is the amatol of World War I. Am¬
monium

is an important
charge, much used
for armor-piercing explosives. An
important
newer
explosive
is
KDX, first used in World War II
picrate

shell-loading

constituent of

as a

demolition, ar¬
tillery shell, and bazooka charges.
Torpex (a mixture of RDX, TNT
and aluminum)
is a highly ef¬
fective

underwater

Half
and

couple

a

and

dozen

a

explosive.

other

of

score

combinations

mixtures
used

are

for

depth

bombs, aerial bombs, in¬
cendiaries, trench mortars, rock¬

are

Pro¬

problems of the Korean

have

focused

attention

on

this revolution within the chemi¬
cal
:

industry.

In

World

als

and

other

In World War
ural

rubber

of

leather,

fibers,

rubber,

replaced

and

metals

natural

in

some

cases.

As

natural

materials.

should cut off imported tan¬
nins, the chemical industry has
already in use a synthetic organic
tanning agent, based on phenol,

that could fill the gap with com¬

seriously

short

of

copper, nickel and other stra¬
tegic metals, we went over to syn¬

thetic rubber and eased the met¬
als shortages by improving recov¬

from low-grade

ores

by chem¬

to

.

^

aircraft

Jet

synthetic

a

that

bears

fueled

are

chemical

mix¬

little resemblance

conventional

fuels.

Vinyl resins have made possible
plastic cocoons which protect vital
of

parts

the

silk

such

for

hosiery,
new

continue

many

tanks, planes, guns.
to

fibers

ical

give

man-

superior

per¬

took

over

of

many

the jobs

uses

plastics

by

and

other

syn¬

infancy.

virtually inexhaustible, cheap

kinds of

war

heads,

made from

and

materials.

for

Proximity
example,
were

brass in World

Of A. G. Becker Co.
CHICAGO, 111.—Arthur W. Cur¬
tis has been elected

its

synthetic chemi¬

dent

of

A.

G.

explosives,
used

in

even

for

corporated,
Street,

the

120

South

firm

many

years.

war¬

constructive

enemy.

Yet production of

for

of

age

only

the

explosives
small

a

direct

ac¬

percent¬

defense

items

which the industry supplies. Dur¬

ing

World

War

II,

ranking:

a

American chemical concern, oper¬

ating

number

a

plants,

turned

of

government
the
largest

out

quantity of munitions
ufactured

by

ever

man¬

Yet

company.

one

this volume amounted to less than.

25% of that company's total
time

production

plants and
ated

for

in

both

war¬

its

plants which

own.

it oper¬

the government. The

mainder

re¬

made up of,hundreds

was

of different chemical products for

military
The

essential civilian

or

thousands

of

uses.

commercial

products of the chemical industryhave

wide

a

functions.
that

1,500

of

been

defense

estimated

chemicals

outfit

to

platoon;
to

has

different

required
cals

variety

It

200

individual

launch

are

infantry

an

chemi¬

battleship.

a

Nylon yarn and staple go into
military apoarel, parachutes, tire
cord for planes.
Nylon moldingpowder is used 3S a tough;,jacketing on Signal Corps, field wire.
Tetrafluoroethylene resin
insu¬
lates

wire

exposed

to high tem¬
Polyethylene molding:

peratures.

powder

is

insulation

roethylene

the

primary

wire.

field

Trichlo-

degreases

Melamine

Army

for

used
on

resins

metals.
turn

dinnerware,

in

up

map

papers,

shotgun

shells,

tainers.

Textile

resins

military

jackets,

shirts,

sleeping

fiber

insulates

bag

liners.

aircraft,

textbooks,

Glass

tanks, ships,
windings.

con¬

improve

motor

generator

strengthens laminated

and

also

It

plastics in

aircraft construction.

Acrylic plastics are extensively
used in aircraft cockpits, sighting
domes, gun turrents; cast in prisms
for tank periscopes; in sheet form
for
radar
plotting
boards
and
glazing in prefabricated military
buildings.
The chemical industry supplies

cordite, dynamite, nitroglycerine,
sulfa drugs and other pharmaceu¬
ticals, varnishes and finishes for
helmets, tanks, caskets and shells.
-Polyester
rated

in

which

resins

glass-reinforced plastics,

have

as

the F-86

in

gineers

footbridges,
them

many

as

jet plane.

80

86

pipelines,
housing.

for

and
The,

landing

incomplete

different

from
B-29

a

cue

nylon and

synthetic fibers, all
tory.
to

and

boats and

single

survey

chemical

revealed

first

grown

chemistry
now

the

...

new

in the labora¬

and improved fibers, fabrics

new

for greater

quantities of textile chemicals.

Closely associated with the textile industry for
60

years,

Mathieson

chemicals than
the

ever

now

supplies

before.

only manufacturer that

more

basic

Today, Mathieson is
can

furnish all the

a

yard wide...

following: caustic soda, soda ash, liquid chlo¬
rine, ammonia,

and

triethylene glycol.

Currently, with market conditions uncertain,
a

dependable

your

source

you may

be able

consulting with

Superfortress. One chemical
counted
325
different

/

Materials

Production

of the older proces¬

sing chemicals continues unabated,
but

new

basic

raw

materials which




to
us

any

of these chemicals,

buy to better advantage by
iiow.

Mathieson Chemical

Corporation, Baltimore 3, Marylandi

company

Synthetics Replace Conventional

of supply is important. If

production requires

a

military items which required its
plastics.

of soda,, nitrate of soda,

sulphuric acid, ethyleneM^xid^, diethylene glycol

products

plant going into

hypochlorite products, sodium

chlorite, bicarbonate

finishing methods and to chemical manufac¬

turers

pre¬

Navy

were

from

Today the American Textile Industry looks

chemistry for

uses

Army en¬

other small craft.
An

Modern fabrics take tlieir
viscose and acetate rayon,

plastics for pontoons,

use

fabricated
uses

incorpo¬

are

All chemical and

teson

Co.

La

announced.

building, mining,
land-clearing—than were hurled

counts

&

In¬

Salle
Mr.

Curtis has been with the firm for

purposes—road

against the

Vice-Presi¬

Becker

products of the chem¬

were

a

War II

required 38 man-hours each.

In many cases

Curtis Elected V.-P.

industry in large quantities.
Qne company found that more

time,

raw

turn them into what

ical

of

con¬

tinue to grow in its ability to take

ets, rocket propellants, and flares.
All demand

Synthesis

It will

most desires.

techniques, and by jumping formance.
Now they are molded of polyproduction and perfecting proc¬
Tin, a critical metal in World sterene, completed in about IV2
esses for
chemically-p r o d u c e d
aluminum and magnesium. Plas¬ War II, is being replaced in some hours.
tics

is still in its

made from phenol, promise
bring new efficiency to an old

cloths, fuse

parachutes from

and

made

find

First-rate filter

uses.

ropes

to

be tailor-made to obtain

ins,

fibers,
100% in

virtually

can

specific characteristics.

fleet, materials and
Foundry res¬ man

art—simplifying machining and
already used saving man-hours. Parts molded
the place of from plastics are replacing la¬
items as women's boriously machined parts in many

Synthetic

cals

"moth-ball"

pletely satisfactory results.

II, deprived of nat¬

and

thetics.
with
ture

example of increasing in¬
dependence of foreign supplies, if
an

war

War

I, the United
States Army was equipped largely
with wool, cotton, rubber, leather,
natural nitrates, the common met¬

ery

explosives,

developed
progress.

.

18

The Commercial and Financial Chronicle

(18)

Continued

from

.

Thursday, July 3, 1952

.

line

ceutical

9

page

.

when

the

of

some

co-products of chlorophyll extrac¬

tion,

like phytol, a vitamin E
become more important.
Publicker, in another case> sells
dry-ice, since carbon dioxide gas
is an important waste gas
from

Government Threats to

source,

Chemical Diversification

alcohol

Atchison, Topeka & Santa Fe
The

rail

market

continues

to

good account of itself,
:>olstered by the generally favorible May reports that have been
give

a very

appearing in the
tinued

The
earnings

press.

in

increase

con-

has,

in

turn, furthered expectations of
1 substantial number of dividend

increases in the current year.

fact

that

June

//ill in many

affected

by

it

will

not

last

The

a

longer and that to

built up. As of
the end of last March, net working
capital amounted to $125 million
(over 15 times combined annual
fixed and contingent charges) and
cash items stood at $129.5 millionr
The excellent physical condition

much

considerable

a

particularly strong financial po-

sition

at

very

At the same time,

ture until 1995.

being taken in stride. Presumably
there
is
widespread
confidence
that

traffic lost as a result of
will eventually be reeouped. With all of the market

has

been

the modest debt

degree

of the property,

the

structure, and the

strike

strength,
that

however,

the

it

is

strong financial
position
all
contribute
toward the optimism with respect

notable

speculative issues
sffik have not participated to any
great extent. Largely the buying

to

has

high

more

concentrated

been

very

the eventual dividend

Analysts

wonder

just

company

the

on

earnings,

of

out

Equipment debt is nominal and
with
rspect
to
non-equipment
debt, all callable issues have been
retired. There are less than $200
million of non-callable 4s left
outstanding, and these do not ma-

least
instances be severely
the steel strikes is
earnings

financed

been

can

do with

the

what

continuing
than pass

other

earnings

outlook.

stocks of roads enjoying a high, or
good, investment standing.

diern

Among the stocks that has been
consistently in good demand is

operating in a strong growth ter¬
ritory. Thus, the traffic trend has

at least

Atchison, Topeka & Santa Fe, considered by many analysts to be
the prime investment issue in the
field.

stock

The

ran

quite

up

sharply early last week in anticipation

of

dividend

increase

an

The

rate.

boosted

the

but

in

was

from

$1.00 quarterly to $1.25, was considered
disappointing
in
some
quarters and immediately following

the

nellinf?

was

short

livcH

however

Kofn

tho

before the
flirting with

was

.stock

stock.

sinking spell. The

a

$ r" ?Jilong
f
it
not

and

the

announcement

experienced

again up
a
new
high. Based on earnings
prospects for the current year
was

most

analysts feel that last week's

increase
not

in

the

regular

change the
of paying

years

policy
a

rate will

of recent

year-end extra.

Santa Fe has had

an

outstanding

Fe

Santa

been very

continue

has the

enabled

advantage of

good and is expected to
Good physical

so.

rjon and the

the

road

improvement
As

ciency.

in

handle

to

the company or

a

this

marked

operating
added

an

condi-

equipment have

new

expanding traffic with

the

dividend

increase,

along to stockholders.

effi-

attraction,

its wholly owned

subsidiaries have substantial

holdings

with

uranium

land

the business objectives underlying
diversification
by
citing actual
in

cases

favorable
far

~n

thi~

oil

and

VPar

Ma£

to

^bstant'iad gains
&

$440

$4.48 compared

earlier. for in
looked More

are

investigations
the

resent

known

tives

the

contingent interest. It has spent
huge sums during the past decade
on
property improvements and
new

equipment, including

stantial

diesel

respect

a

examples

Even

with

equipment purchases
the entire program has

One

such

of

of

the

best

diversification

be found in the early history

can

of the Food

ical Corp.

Pump

In 1928 the Bean Spray

Company,

one

the

of

best

because

share.

with

compare
d

$13.83

This

would

realized

ohvio!J«lv

of

part
In

this

diversification,

the

process

in
thp

icals

in¬

than

and

excellent

Another

this

metal

Koppers and to produce coke and
their

for

tars

Mining of Canada were

forced to convert their destructive

dioxide

sulphur

the

and

special pyrites burners to

stalled

Utilization of Excess Capacity

tars

their

coke

is faced
Steps to
unproductive prob¬
have often placed such firms
"unrelated
fields."
In
its

into

cookers for the

canning industry.

Within

a

short

plastic

constituent

monomer and a

of synthetic rubber.

The

company,

firms acquired
companies which fabricated vege¬

therefore, finds itself not only in
the sale of ovens and the operation
of

time,

the

merged

its

markets

States.

across

The

which

the

United

industry,

canning

generally
over-exthe 1920's, was hit

was

earn

citrus fruits had

of

a

rise in

The resultant of these

phenomena had the

company

$1,300,000 in the period 1930

1933,

ruptcy.

instead
Such

a

facing

of

bank¬

lesson in avoiding

factor

had much influ¬

shares.

ence

probably

one

economic

with

lems

on

the

company's

later

di¬

capacity.

eoccess

simplest form is a carpet cleaning
establishment which has a

Chile

of

the

-

etc.,

In

problem
in

ested

in

another

of

from

very

coke

oven

severely limited

are

opera¬

by the

production of the coke itself.
A

similar

has

search

competitive

more

A number of such firms

the least.

utilized

have

for

materials

raw

placed the National Distillers

A rubber tire manu¬

facturer, having acquired a cotton
mill for use in tire manufacture,
faced with the

was

posing of cotton goods in the reg¬
ular textile markets after the com¬

Industrial

1951, Na¬

in

sales

capacity, caused by seasonality,
general decline in the use of a
chemical and other factors, has

Chemicals

tional

obtained

sition

for

pany

now

in

better

a

this

line

wide

alcohol.

The

manufactures

po¬

com¬

also

a

of

converted to rayon for use
The problem of excess

pany

tires.

chemicals, including
metallic sodium, detergents,
etc.
But basically, National had to en¬

forced

pany has

the

economic

more

synthetic

companies into

many

Research in

possession of

sifications

chemical process

had

ments

make

Sinking Fund 6% Bonds, dated March 1, 1929

source

Sinking Fund 6% Bonds, dated May 1, 1930

digesting

Chil$ Guaranteed Sinking Fund 6V£% Bonds, dated June 30, 1925
Chile Guaranteed

Sinking Fund 6%% Bonds of 1926, dated June 30, 1926

After

led

with

Chile Guaranteed Sinking

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

oratory

Chile Guaranteed Sinking

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

decades

31, 1926

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

A, dated September 1, 1929
City

of

City

of

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

7% External Sinking Fund Bonds of 1930, dated May 1, 1930

In accordance with

Treasury Decree No. 3996 of the Republic of Chile, dated June 9, 1952, notice

Republic, Schroder Trust Company,
Broadway, New York 15, New York. Copies of the Offer and of forms of letters of acceptance and
transmittal may be obtained from said Fiscal Agent.
57

Republic of Chile

Dated: June 30,

1952.




de la Deuda Publica.

from

for

this

of

furfural.

develop¬

process
was

to

still faced

Through three
research, , technical
promotion, furfural

of

and

as

a

major chem¬

ical

building block, with current,
striking rapidly to¬
wards a 100,000,000 pound annual
consumption
rate.

This

become

that

verted
raw

chemical

most

in

to

has

Quaker

the

company has con¬
of its production to

materials not

able

business

important

so

the

ordinarily avail¬

company's

cereal

operations.

by-product of coking opera¬
tions has put a
company like U. S.
Steel

into

the

In

chemical
some

reluctance).

co-products, there is

lent chance that

business

an

chlorophyll

excel¬
man¬

ufacturers may enter the pharma¬

on

readily.

The

companies pride

the extent of their

an average of
three cents out of every sales dol¬

research, spending
lar
of

such

for

and

belong

naturally,

The fruits
expenditures,

purpose.

work

such

these

to

com¬

panies for the fullest possible

ex¬

ploitation. When, in 1920, the Car¬
bide and
started
tion

Carbon Chemicals Corp.

acetylene

waste gas,

the

into

research

of

produc¬

from

refinery

its research and devel¬

opment people found methods for

recovering and purifying ethylene.
With this reactive chemical, Car¬
bide

and

the

Carbon

became

of

one

most

important American
chemical firms, although its par¬
ent company's business was mainly
in compressed gases, dry

cells, cal¬

cium carbide and carbon products.
The

of

result

research

C's

C ' &

made

the

intensive

the

company

foremost

producer of anti-freeze
(Prestone) and permitted it to in¬

troduce

the

in

revolution

dustrial alcohol field,

the

in¬

synthetic al¬

cohol from petroleum sources. The
company

Is continuing its

lent research

ing

more

work.

than $11

After

excel¬
spend¬

million, it

is

close to commercially start¬

very

A

(probably with
By Caja Autonoma de Amortizacion

I

discovery

hulls

established

Oats

is hereby given that the Offer of the Republic of Chile, dated December 7, 1948, to holders of dollar
bonds of the loans listed above, will remain open for acceptance until December
31, 1953.
Holders of dollar bonds who desire to accept the Offer should deliver their bonds
together with form
letters of acceptance and transmittal to the Fiscal Agent of the

Experi¬

War

chemical.

service
was

Chilean Consolidated Municipal Loan

com¬

the

of

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

the

problem of disposing of
chemical, at that time a lab¬

the

of
of

the

to

the

extensive

Mortgage Bank

ber

World

ment, the company

Mortgage Bank

Mortgage Bank

oats,

chemicals

scarce

Chile External Loan

of

of

sizable disposal prob¬

a

during.

Chile External Loan

Mortgage Bank

problem

lem in its waste oat hulls.

of

Guaranteed Loan of 1915, dated December 8, 1915

the

of

orocessor

a

of

of

is

waste-, by-, and co-products. The
classic example in this field in¬
volved the Quaker Oats Company.

Republic

Mortgage Bank

By-Products

fertile basis for chemical

diversification

Republic

Water Company of Valparaiso 6% Bonds,

rather

themselves
Use of Waste and

pany

Sinking Fund 6% Bonds, dated September 1, 1928

field.

a com¬

fostered chemical diver¬

the

in

new

markets.

in order to protect

position

Sinking Fund Bonds, dated February 1, 1927

Chile External Loan

problem of dis¬

Corp. into the production
of synthetic alcohol, alcohol from
petrochemicals. By acquiring U. S.

Chile 6% External

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

proces¬

chemicals, many of which are not
even closely related to the
clean¬

ing business.
and

new

Products

As

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

unused

the

sing space during the "off-season"
inter¬ for mixing and packaging house¬
since hold and small industrial specialty

petrochemicals,

chemicals

the

aspect

materials,

raw

is becoming

Koppers

tions

producers

States.

A very

following Loans:

season

running from April to about Octo¬
plants, but is one of the ber.
For
the
remaining
five
active
chemical,
rubber, months, business is slow, to say

these

Sinking Fund Bonds, dated October 1, 1926

of

fer¬

All too often, a company

Chile 6% External

Republic

the

for

demand

the

tilizers.

from

Chile

Chile

its

plant,

Koppers, working

the

of

of

acid

of

with

of

Republic

location

remote

chemical lines.

Republic

of

sul¬

the

for

distances

shipping

into

fumes

Because of the short

phuric acid.

account, finds, satisfy

own

itself 40 years later manufacturing

Republic

Republic

of

producers into the fertilizer
Such companies as Con¬

cators of pressure

on

Holders of Dollar Bonds of the

example

business.

solidated

its

to

com¬

type was the entrance of the

alcohol picture

Notice

local

eliminate such

overdependence

of

lit¬

move

in

enacted

measures

a

by the conservation

ovens,
during the last war ex¬
the West, merged panded to the processing of ben¬
to
with Anderson-Barngrover, fabri¬ zine
styrene.
It thus has a

i951> and obviously justifies the
recent market enthusiasm tor the

Republic

for

munities.

ter

virtually

serious

a

development

products,

erally forced

development,

rather

in

machinery

on

a

pri¬

they recognized
excellent opportunities exist¬

marily

established firms in orchard spray

months. Most importantly,
wheat crop in the service area Eard by the depression. The effect
the Food Machinery Company
J® exceptionally good this year and
1S one. of the mo.st important could have been disastrous, but at
m the road's economy, that particular time, the consump¬

$18

and

Machinery and Chem¬ rubber, plastic materials and other

anded during

sub-

to

fleet.

to the execu¬

business

chemical

the

tered

be discussed readily.

diversification.

to

and

not rep¬
announced

may

companies

can

reach

charges

sta-.

research

the company converts the
ized
to
much
better
advantage acid for shipment to farming areas
Stability in the face of changing through diversification. The Kop¬ to ammonium sulphate, a good
economic
conditions, both short pers Company, founded in 1914 to fertilizer constituent.
This busi¬
and long ranges-is probably the fabricate and sell the new coke
ness has become so profitable that
most
important consideration of ovens
developed
by
Heinrich the
company
subsequently
in¬

observer)

two

fixed

with

importance

involved. creasing economic power, was in¬
strumental
in
bringing
a
new
Motives Underlying
competitive force into an estab¬
Diversification
lished industry.
It obviously is an impossible job
Raw materials form the basis for
to discuss every motive underly¬
numerous diversificationjnoves in
ing diversification, but the most the chemical
process ^industries.
important ones (or rather those The raw materials used
by a com¬
most obvious to the independent
pany, for example, may be util¬
of

popularity.

full

and

officially

unknown

or

tion

its

equal

policy of the company named. The the
do, however, exemplify the ing in this
reasons for
diversification, either industries.

Wltd other traffic considerations

cover

by-, and co-products is

problem which requires extensive

cases

ln thJr territory also favorable, it
ls estlmated in some quarters that
earnm&s for the full year may

to

operations.

discussing these business aims, bility ot operations is probably the economic utilization. Latest move¬
cases cited for illustrative pur¬
search for better profits. A num¬ ment has been the recovery of
poses are based on the authors' ber of petroleum companies en¬ pulping wastes into useful chem¬

hflVP

POmnared

fermentation

Often the disposal of these waste-,

the

tory has it failed in

year

Of

Revenues so far this year have
inprpaspd

of

business.

industries.

packing machinery, citrus
packing machinery and apple more
held UP very wel1 and share earn~ processing machinery. With these plastic,
in*s for the five months through acquisitions, the company enlarged United
*
Rpvpnllpq

lines

table

potentialities,

,

other

into

In

record. Never throughout its hisany

chemical

the

versification

ing coal hydrogenation plants, the
raw

material

Research,

source of

of

the future.

course,

was

the

major force behind the growth and
diversification of
from

the

duPont

Co.

gunpowder to its present po¬
The importance of research

sition.

Volume 176

Number 5130

...

The Commercial and Financial Chronicle

(19)
has

become

that

the

has

established

Products

recognized Allied

well

so

American

Cyanamid Co.
special

a

New

Chas.
be

Chemical,
Pfizer

producers of

Division, because of

Development

Co.

whose major function is to intro¬
duce new chemicals and products

of the

to

industry, new chemicals usu¬
ally developed in the company's

the

as

destined

isonicotinic

to

in

research

facilities.

made

TB drug

from

raw

potential

production

captive

sched¬

From bank¬

use.

which

be

can

materials

ment

they

by Grace.
emergencies and gov-'
requests have often put

National
eimment

Another important consideration

a

chemical

process

diversification is

new, diversified lines of activity.
The whole dye-stuff industry was

tribution

literally forced

session

R.

a company's pos¬
production techniques

of

W.

staff

Grace

and

organizations.

and

Co., which im¬
and know-how.
The experience ported guano and nitrate fertilizer
American Cyanamid gained in de¬ from Latin America, formed Naco
signing chemical plants for its own Fertlizer to market the products
use
permitted the company to in¬ domestically. To use their organ¬
tegrate within its organization the ization to better advantage, the

icals
At

the

Pont

still

were

well

world

into

ment.

was

relatively

a

step for
duPont to apply part of its tech¬
nical experience with nitrocellu¬
lose in

easy

establishing the important

Rayon Division of the
1920.

Similarly,

company in

this

the

manufacture

of

sulfuric

specific

was

Similarly,

a

enter

to

new,completely
industry, based on the
a

There
reasons

pany
a

are

obviously many other

for diversification. A

not be able to

may

isting plant, it may have excess
funds available, take advantage of

pe¬

favorable interest rates, etc.

Present

production

of the

company

plant

with

plans include

ammonia

the

major

and

a

urea

portion

of

during

the

Other chemical firms

volved

in

atomic

last

war.

became

energy.

up

an ex¬

troleum refiners entered chemical

million

com¬

pass

good opportunity to buy

acid and superphosphate fertilizer.

$20

gov¬

instrumen¬

*

govern¬

number of

hand,

Isn't it time that busi¬

nessmen

correct

Right

distillers, in fact,

Annual Field

Some

may

have

DES

Investment

Bankers

July

22,

1952,

at 'the

quarters will be Savery Hotel.
Activities

for

the

of breakfast in the

Savery

Hotel,

rayon undoubtedly was
of
help in making nylon textile fiber
a
reality.
Subsequently, duPont

various other

used its extensive know-how in
chemical fibers to good advantage
in

expanding

Orion and

this

business

Dacron

into

fibers.

An

increasingly more important
utilization
of
experience
and
know-how has been in the estab¬
lishment

of

joint

companies

by

leading manufacturers in different
fields.

For

Chemical

example,
the Dow
and
Ethyl Corp.

Co.

formed Ethyl-Dow
specifically for
the production of ethylene dibro-

mide,

important constituent of

an

anti-knock fluid.
its

experience

istry

and

Dow contributes

in

bromine

production;

chem¬

the

Ethyl
Corp. its close familiarity with the
ethyl fluid business.
Similarly,
Dow formed with Corning the

Dow-Corning Corp. for the
duction and

pro¬

sales of silicon prod¬

ucts, with Dow again contributing
its

chemical

and

experience

process

Corning

its

long work with

glass and silica.
Similar tie-ups have been made

between

stone,

Cities

Service

Mathieson

Tennessee

and

and

Gas, American Viscose

and Monsanto Chemical.

ter

Fire¬

Chemical

The lat¬

effort, the Chemstrand Corp.,

will

Monsanto's

use

chemical

know-how

can

Viscose's

the

production

synthetic
ments

fiber

fibers.

further

and

use

in

of
develop¬

Such

fuller

of

a

"value"

means

and

and staff is also called to mind

hydrogenation business
improvement
of

underlies

a

lated" fields.
serve

as

a

at

CyanCompany, for example, is found in

this

includes the

tangible assets of

cash, marketable securities and
counts

and

the

into

diversification.

can

Founded

in

1802

black

powder, the company
added dynamite to. its line in 1880,
with
a

smokeless

little

two

introduced

steps

cellulose
became

powder following

decade later.

over a

These

duPont

utilization, a fact which
important after World
Thus,

from

black powder, duPont established
its synthetic fiber

business;

two

businesses not related in the con¬
ventional sense, but highly inte¬
grated as far as chemistry and the
chemist

are

is

also

of

ami d's research and

raw

materials and

operating plants and equipment at
country and abroad;

of

vertical

the

Often

as

integration,

may

the investment in research and devel¬

degree in

one or more

chemistry,
physics, biology, medicine, biochemis¬
try and other fields;

and service;

the

a

Cyanproduction staffs

branches of science

supplies vital to efficient production

38 locations in this

specialized knowledge

than 1800 members of

...

and there

are

..

.

the creative

imagina¬

tions that

sought and developed new
drugs like the sulfas and aureomycin;
that
recognized the tremendous po¬

opment facilities upon which future

tentials

growth and

and

progress

largely depend;

and it includes the

Company's invest¬

ments in associated

companies estab¬

lished to further chemical
new

processes,

products and related develop¬

ments in

fields of kindred interests.

in

chemicals like melamine

acrylonitrile, which had remained
undeveloped for generations.
These

are

among

the intangible "values"

that

contribute,, perhaps more than any
others, to making American Cyanamid one
of the

outstanding leaders in the chemical

field.

unexpected de¬

often

diversification.

product

more

concerned.

The creation
mand

of

ac¬

to

War I, when the
company entered
the raven business.

as a team;

there is^ilso the

...

receivable;

the investment in

for example, the skills, tal¬

experience of an
organization of 23,000 people working

"unre¬

example of such

are,

who hold
...

items of "value" that
in the balance sheet.

many

and cumulative

together
...

solely for the domestic production
of

ents

are

appear

there

...

American

-

men¬

The duPont Co.

good

not

the statistics of the financial statement:

by

product line often

entrance

But there

do

tioned previously.

extension

things

people.

One measure-of value
amid

the
impending entrance of the
Carbide and Carbon Corp. into the

Product

different

company

management and staff.
The effi¬
cient utilization
of
management

coal

term

different

Ameri¬

marketing

permit

economic

more

extensive

experience

and

The
to

basis
a

a

for

result
new

find sufficient out¬

side demand to make its operation

important

with

respect

to

sales

and

assets.

was

cited alrove. Pulp mills, which

Consolidated Mining's
venture into the fertilizer business
set up

small chlorine units for in¬

ternal

consumption, in

some cases

have expanded their output of the
chlorine gas to take care of local
demand. The Barrett Division of




AMERICAN
30 ROCKEFELLER PLAZA, NEW

COMPANY
YORK 20, N. Y.

consist

and

dinner

Club, golf, tennis

V '-"71^-

La. !*■.'>...,'..J

day

morning at the

lunch

experience

with

Day

Wakonda

Club, Des Moines, Iowa. The head¬

and

pharmaceutical

Association

will have their annual Field

they

the

Day

MOINES, Iowa—The Iowa

at the Wakonda

entered

situation?

Iowa Inv. Bankers

had in mind public opinion when

in¬

this

sense. Some com¬

already eyeing several

are

unrelated

This de¬

the

of

negative

a

hard work of duPont.

explo¬

undertaken at the

request

tal in

diver¬

sification.

duPont. Many such companies ex¬

du¬

war

an

their way.

on

velopment

It

mainly

On the other

ernment action is also

pect

war.

sives manufacturer. After the war,
the important dyestuff operations

company entered the dry mixing
fertilizer business, later expanding

independent clients.

first

at the request of the Federal Gov¬
ernment.

lucrative duPont products as a re¬
sult of anti-trust action against

heavy chem¬

beginning of that

was

Chemical Construction
Co., which
does design work throughout the
for

upon

producers by the

manufacturer

panies

into

company

diversification is the most ef¬
ficient utilization of sales and dis¬

Of equal importance to chemical

the Blockson Chemical Co., business.
Unfortunately, in most
of phosphate cases, the
public is left unaware
chemicals, is recovering uranium of the real motives behind

now,
a

ing and shipping to fertilizer and
discovery chemicals covers unrelated move¬

the fortuitous

new

this

uled for

acid

control.

extensive

well

as
are

19

activities.

0

The Commercial and Financial Chronicle

(20)

.

.

Thursday, July 3, 1952

.

I

rushing to buy due to temporary

Automobile Accidents
By ROGER W. BABSON

Commenting

trians.

relief

persons on
of

death

The

as

has

friend

a

Suggests using
highway monitors.

-automobiles

rough t to my attention this week
oth
the
economic loss to the

the personal loss to

with

the

This
most

acci¬

bile

mo

industry

First, let

that

admit

these

acci¬

tions.

of

Great toll-roads,

lion

should study super-highways, un¬

parking, outdoor the¬
and allied developments.

aters

of

num¬

motor

deaths

may

have increased

Statistics

only

8,000

tion.

9

by

many,

When I

to

deaths

these

of

collisions; and about

one-third from non-collision acci*

In¬

dents,

were

such

off

running

as

the
deaths

road. About 10,000 needless

the

was

due

were

mar-

the result of hitting careless

this had increased to pedestrians.
These new super-highways and
automobiles, one of

million

Today there are

in

trucks

this is

opera¬

miraculous

^a

improvements
should

save

Unfortunately, most of the roads
were

out before

laid

is

the

roads

collision

accidents,

gasoline

time,

as

and

well

as

mainte¬

and

(The only group to suffer

investors

which

existing

in

reduce

non-collision

nance.

today

and

were

industry.

used

year,

When I was a

there
automobiles
in

owned.

Truly

killed

persons

last

were

times this number injured.

bout 45 million automobiles and
bout

40,000

there

one-third

stitute of Technology,

which I

about

automobiles

that

many

Massachusetts

States!

estimated

is

Accidents

Over

with

ly

nited

It

on

the

proportionate¬

Roger w. Babson

ied.in 1900,

mil¬

derground

ber

four

super¬

pro¬

vehicles, alt h o u g h
the

nly

and

per

with the

the

propor¬

highways, costing nearly $1

portionately

at

road-building

in¬

not

creased

ileage operated.

new

a

tremendous

mile, are being built.
Those
looking
for
employment
opportunities or business profits

deaths

dental

have

me

automobiles.

primarily responsible for
accidents.
We, however, are

entering

now

dents.

of

number

so

in

many

railroad

people

stocks,

are

now

the

supply

Manu-

in

streets

place

any

the

or

to

Readers should
to

sections, and
traffic
lights

doing

tion'sBOth

A

once

caught

are

traf¬

more

New

Source

Green¬

Mr.

the

William

Ward

.

135,864,666.16

.

720,131,189.89

.

25,544,956.09

7,254,054.81

—.

Loans and Discounts

:

Banking Houses Owned:
Customers' Liability

on

445,273.02

Acceptances-

Accrued Interest and Accounts

the,

Receivable

fighting

are

should

be

whether

over

made

Relief

names

available

as¬

the

was

vies, Food Machinery and Chem¬

Carbon Corp.; Charles S.

_

—

Reserve for Contingencies
Reserves for Taxes,

Dividend Payable

Expenses,

W.

Fisher of

gent, Diamond Alkali Co.

Glen

Output Valued at $4 Billion

McDaniel, President of the Radio-Television Manufac¬

ered

its

at

tion

who

28th

Annual

Conven¬

men

It is

July 1, 1952

1,270,000.00

Acceptances Outstanding (Net)—

27,389,676.85

Other Liabilities

1,385,011.05

Deposits

,707,538,687.43

.

,873,104,534.48

Chi¬

on

June

can

Mr.

26,

Glen

production to rise well

McDaniel

pressed

it

ex¬

view

$145,485,231.45 in the foregoing

expect

"The
and

for

for

radio,
and

other
ments

the end of 1952,

now and

set

the

going rate

electronics

of

communications
the

lion

seg¬

of

Moreover, we
electronics
military
over 50%

year ago.

between

of the outlook

the

a

was

after which it will level off.

an op¬

timistic

military is

on

annual

an

production
$2Mi

now

basis.

bil¬

Civilian

production, plus the manufac¬
of
replacement parts and

ture

electronics in¬

accessories,
lion and

are

individuals

a

few hours
their

now

on

would

work

day; but

con¬

without

a

time

pay.

marked places.
these

of

The

"Safety

pres¬

Monitors"

this

on

This is indeed

stated:

Daniel

"Since

production

Glen McDaniel

the

like

others in the United States,
undergone a series of rather

names

of

the

those
traffic

tive

many

upon

the

fail

rules,

to

fines

inspired

by

consumers,

the

the scare buying of
dealers and manufac¬

we

all-out

for

It is
do

can

indica¬
called

if

production

for

Arme^JServices."

reduce

who

gigantic

exceeds

II.

War

of what

has

the abrupt changes.
The immediate
accident toll. By taking
reaction, of course, was a boom

tremendously

billion.

record of

which

ing, World

the Korean war our industry,

rate to $4
a

peak output of the industry dur¬

of

outbreak

adds about $1V2 bil¬
brings the overall indus¬

try production

topic, Mr. Mc¬

dif¬

at

very

ing

G. H. Pfau Joins

Milwaukee

Company

be collected which would turers.
This was followed by a
materially reduce the cost of re¬ rather severe dedline in sales in
MILWAUKEE, Wis.—Joseph T
I am very serious the first half of 1951.
Late last
about this suggestion and
hope Summer, following the modifica¬ Johnson, President of The Mil¬
waukee Company, announced that
that serious thought will be given tion of
Regulation W, business
G. Harold Pfau joined the com¬
to it by local officials.
again began to improve although
pany in the capacity of a Corpora¬
lief assistance.

it

John G. Lee Joins

Goodbody & Co., 115 Broadway,
York City, announces that
as

of the boom pro¬

none

"During the pa§J year sales of

Goodbody & Go.
1

reached

portions of the year before.

join the firm on
of its cotton

manager

radio and TV sets have been rela¬

tively good except in comparison
with
the
post - Korean
buying
spree.
Production,
inventories
and sales have been

the

in balance on

The industry

whole.

position

excellent

is now
to in¬

in

stead¬
ily as new markets open
and
present markets expand when the

cotton

has

second

business

for

29

just been elected

term

as

President

New York Cotton

years

to his
of

the

Exchange. S. T.

an

crease

its output and sales

issuance
tion

station

TV

of

construc¬

resumed by the
Hubbard, who has been in the
cotton business for 45 years, first Federal Communications Commis¬
as

partner of Hubbard Bros. &

a

Co.

and

since

1939

as

a

partner

of

Goodbody & Co. will continue

as

partner in charge of the firm's

permits

is

\

sion.

industry has every reason
to be optimistic as to the imme¬
diate future, but it should not ex¬
pect

of the New York Stock

be

any

sales.

sudden

Instead,

a

upsurge

tion

Consultant

in set

gradual rise

can

on

July

1.

Mr. Pfau entered the investment

field

in

Milwaukee

in

1919

with

the Second Ward Securities Com¬

the

pany,

the

securities'

Second

affiliate

Savings Bank.
was merged with

the First Wisconsin National
he

was

First

Vice-President

a

of

Ward

After that bank

Wisconsin

Bank,

of

the

Company,

and
partner of R. W, Baird
& Co., Inc. Mr. Pfau left Milwau¬

later

kee

was

in

In

a

the

been in

fall

of

1950

and

has

the West since that time.

joining The Milwaukee Com¬
he will be with

pany,

"The

general commodity business.
Goodbody & Co. are members
Securities carried

than three times what

more

in

dustry. Speak¬

and

8,093,682.34

etc.-

and

Munson,

Koppers Co., Inc., and J. A. Sar¬

H.

the

4,816,944.78

Carbide

elected President of

department. Mr. Lee has been in

22.210,532.03 $ 122,610,532.03

Union

Air Reduction Co., Inc.; Dan Rugg,

"Safety Monitors" in uniform.

July

75,000,000.00

Undivided Profits

Corp.; F. J. Emmerich, Allied

relief

women

John C. Lee will

Surplus.

Asplundh, Columbia-South¬
Chemical Corp.; Paul L. Da-

Laughlin,

Air

of

Electronics

television

New

$25,400,000.00

expiring May 31, 1955, are:

Munson,

Association.

cago

increasing

organize the able-bodied

ence

$1,873,104,534.48

Capital Stock.

the

Chemical & Dye Corp.; J. W. Mc¬

S.

the

old-age

and

to

greatly

are

3,356,533.94

LIABILITIES

for

-

the latter and the politicians

5,754,075.68

—

elected

T.

ern

Ward

directors

Reduction

Board

Co., who

-

Other Assets

F.

M.

Secre¬

as

.

term
E.

could

Other Bonds and Investments—

Treasurer.

continues

of
deaths, modern
turers Association, predicts still further
progress, but warns
increasing the length of
against expecting sudden upsurge in electronic equipment sales.
life.
This situation is being met
by pensions, social security, relief,
In his annual report as Pres¬
date is eight times what it was in
and
old-age
assistance. Unfor¬ ident of
the
Radio
Television the
three months following the
tunately, politics has seriously en¬
Manufacturers Association, deliv¬ outbreak of the Korean conflict.
tered

observe

State, Municipal and Public Securities-

of

Carbon Corp.,

are

death and

457,248,130.14

W.

ical

do.

can

ferent locations to prevent people
from crossing the streets except

$517,505,654.75

Co.

Chairman
of

number

drugs

the

_

J.

President

-

Charles

increasing

are

They should be stationed

.

Vice

succeeds

problerrrtoddy is *

While axitomobiles

would

Obligations

Mr.

Officers

of Traffic

finding work that the aged

at

U. S. Government

Goodrich

Jr.,

meet¬ / New

brier Hotel.

obey carefully
where they exist.

Those who

the

at

inter¬

at

to

One economic

tribute

Cash and Due from Banks

Inc.

fic officers.

only

ASSETS

anrlpal

ing on June 23

only

used to employ

These

of business June 30, 1952

President

tary.

should be fined, and the

so

was

Vice-President of

a

re-elected

Crass,

is

Co.,

was

at

Inc.,

F.

B.

Associa-

crossing of streets should be

money

&

tion.

should be trained to do this. Diag¬
forbidden.

Pfizer

Richardson is

driver

Children, at home and at school,
onal

Chas.

of

Union Canbide and

re¬

J.)

Vice-Presi¬

elected

McKeen

Associa¬

resolve at

streets

cross

Mr.

The

injured.

were

were

dents.

McLaughlin,

10,000 pedestrians being killed,

200,000

ardson

In addition

auto

them down.

(N.

Co.

John E. McKeen and W. S. Rich¬

Chemists'

without

unfortunate

runs

Oil

named Vice-Chairman.

facturing

gard for themselves, their families
who

Standard

of

(

cross

Pedestrians

regulations.

as

At the close

President

named

was

traffic

disobeying

from

people

and

CONDENSED STATEMENT OF CONDITION

Chairman
the

Now here is my suggestion: Let

Broadway, New York

Co., Inc., was elected

of

us

165

who

de

Pont

brains and self-control to prevent

and relief.

Founded 1824

du

Board

only to school costs. A
large percentage of the tax dollar
now
goes
to old-age assistance

COMPANY

Ward, Vice-

I.

the

is second

TRUST

&

H.

E.

of

each year; in many cities the cost

&

of

necessary

measures

sistance

bank

President
Nemours

SPRINGS,

SULPHUR

Va.—William

W.

Every

public.

Chemical

Munson

S.

Association at recent convention
WHITE

Obey Existing Police Rules

dreamed

even

Charles

Succeeds

the next pedes¬

trian to be needlessly killed.

is

needless auto-

student

were

Any reader of this

be

may

Manufacturing Chemists' Ass'n

these
could

cent

up-to-date community
of.
The
improvements in these has traffic
lights and traffic offi¬
roads have not begun to keep pace
cers.
but neither of these safety

relatives from

and

ountry

column

protection for highway traffic.

more

as

of

towns and

per

be eliminated.

accidents, Mr. Babson sees need for more and better roads as
well

Ninety

in cities and

are

economic loss due to avoidable automobile

on

Ward Named Chairman of

high defense earnings.) Very lit¬
tle is now being done, however,
to
reduce the deaths of pedes¬

a

number

of former associates of the Second

Ward

Securities
officers

are

now

kee

who

Company,

of The Milwau¬

Company.

expected in 1952 and for sev¬

and

deposited

to secure

public funds

for other pur{x)ses required by law.

Charter Member New York

Clearing House Association

Member Federal Reserve System

Member Federal Deposit Insurance Corporation




Exchange,
New York Cotton Exchange and
other principal security and com¬

eral years
"In the

curities business since 1891 and in

statement are

at

few

the commodity business since 1935.

have much to be

Kirk have become associated with

industry's

Eisele

thereafter.
military field, the in¬
modity exchanges. The firm has dustry's record during the past
been actively engaged in the se¬ year is even more impressive.
A

It

has

26

offices.

Marcus

Good-

body, senior partner, has been ac¬
tively engaged in the business for
more

than 50 years.

statistics will

show that we

proud of in the
retooling for the na¬

With Eisele & King
(Special to The Financial Chronicle)

ST.

PETERSBURG, Fla.—

Robert

T.

&

tion's rearmament.
"Government officials advise us

that production of
commtinications

electronics and
components

to

Co.,

7217

Beaches.

Bowman

and

King, Libaire,

Gulf
Mr.

Thomas

Stout

Boulevard,

Bowman^was.

&

Gulf
pre¬

viously with A. M. Kidder &' Co.

Volume 176

s,Number 5130

..

The Commercial and Financial Chronicle

.

(21)

the

A Bond Issue With
An Inflation

Hedge

Edward S.

Christiansen, President
of Christiansen Corporation,
pro¬
ducer of metal alloys, tells of
'inflation Provision Deben¬

new

ture"

be

to

sold

to

method

employees,

"In

addition

tection of

maturity
protection

is

tual
in

interest

applied

to

value.

revolutionary method of in¬
financing which provides

the

investor

industrial

ployee

protection

of

avails

and

of

changes
Index

being of¬
the

Gregory,

30

Pine

Pledger Co. Adds
LOS

been

added

for

ers

ANGELL'S, Calif.—Jerome
has

been

Edward

admitted

H.

to

Nelson

general

partnership and will contact outof-town correspondents and deal¬

(Special to The Financial Chronicle)

Goldsmith

that

He

the

was

Vice-Presi¬

a

dent of Clement A. Evans & Co.,
Pledger & Company, 210
West Seventh Street, members of Inc., Atlanta, and is a director of
the Los Angeles Stock Exchange. the Southland Oil
Co. He was also

be

staff

to

Mr.

of

Goldsmith

min¬
with

100%.

Cantor,

was

previously

Fitzgerald

&

Co.,

Fevygl & Co. and Daniel Reeves &

"Thus, protection of purchasing
power
is provided all along the

associated

with

Kidder,

& Co. and Distributors
from

Co.

1940

Mr.

to

Peabody

Group, Inc.

1950.

Nelson's

Weekly.Firm Changes
The New York
has

to

the

the

a

announced

on

July 1 by Ed¬
ward S. Chris¬

Joseph Klein retired from
in

Berk,

Co. June 30.

Transfer of the

bership
Walter
proved

Walter

M.

M.

Giblin,

Jr.,

Corp.,

Chicago,

pro¬

alu¬

of

vote was cast

and

magnesium al¬

S.

E.

of
was

for free competition.
From THE GUARANTY SURVEY

casting alloys, and other
products for the foundry.
Christiansen

Corp.

also

is

the

company of four whollysubsidiaries:
Magnesium

owned

Co. of
America, East Chicago, Ind.,
leading fabricators of wrought

magnesium

Corp.,

products;

Chicago,

Alumicast

manufacturer

of

Guaranty Trust Company of New York
MAIN OFFICE

FIFTH AVE. OFFICE

aluminum and magnesium
perma¬
nent mold and die
castings; Indus¬
trial
Smelting Corp., Chicago
Heights, 111., secondary smelter of
nonferrous alloy ingot; and Tita¬
nium Co. of America, East Chi¬
cago, Ind., recently organized to

Madison Ave.

ROCKEFELLER CENTER OFFICE

MADISON AVE. OFFICE

Fifth Ave.

Broadway

140

at

44th St.

LONDON

at

Rockefeller Plaza

60th St.

at

50th St.

BRUSSELS

PARIS

J. LUf HER CLEVELAND
Chairman of the Board
WILLIAM L. KLEITZ

Condensed Statement

President

prod¬

"Upon the issuance of these de¬
bentures, Christiansen Corp. be¬

ALFRED R. THOMAS
Vice-President

of Condition, June 30,1952

THOMAS P. JERMAN
V ice-President

produce

wrought

titanium

ucts.

the

comes

first

company

in

the

history of American financing to
issue

debentures

provisions

with

based

ers' Price

'escalator'

the

on

Index," said Mr. Chris¬

tiansen. "No other bonds
been

Consum¬

issued

which

ever

could

in

Cash

DIRECTORS,
G. ALLEN

of the Board, Duke Power Company
F. W. CHARSKE

U. S. Government

Chairman,

Union

Pacific Railroad Company

Price Index."

Public Securities

W. PALEN CONWAY

tion

Provision

has

been

1972,
are

he

$100 in

The

issued

debentures

in

multiples of
totaling $300,-

amount

proceedings

with
and

the
the

in

Securities'

Illinois

Securities

preliminary to

Act

the

of

Law

1933

as

offering of

plan is unique," said Mr.
Christiansen, "because the value
of the debenture

at

maturity will
proportionately affected by the
rate at which average retail
prices
be

of

goods

and

services

usually
bought by moderate income fami¬
lies in large cities change. In other
words, the debenture value at re¬
tirement will proportionately re¬
flect

changes

in

Price Index for
Families

the

Consumers'

Moderate Income

in

Large C i t i e s—the
Combined Adjusted Series, pub¬
lished by the Bureau of Labor Sta¬
tistics of the United States Depart¬
ment of Labor.
"The escalator

debenture
of

mum

100%.

provision of the

provides

150% and

for
a

a

maxi¬

minimum of

This, in effect, provides

Though in
the

$100

maximum

a

can

rise

to

value of $150, in a

a

pe¬

riod of

falling prices it cannot drop

below

its

original

face

value

of

$100."
Of

considerable




significance

Credits Granted

9,000,000.00

,

67,341,914.49

.

.

13,002,738.17

Mortgages

«

13,541,156.04

183,643,256.40

.

$3,059,578,614.59

Obligations

Acceptances

on

Receivable

STUART M. CROCKER

15,173,080.56

Chairman

of the Board,
The Columbia Gits System, Inc.

Bank Premises

CHARLES E. DUNLAP

'.

...

Total Resources

JOHN W.DAVIS
of Davis Polk
Wardwell Sunderland&KiendI

.

•

.

.

*

•

8,371,447.20

.

.

President,

The Berwind-Wbite Coal Mining

LIABILITIES

Company
GANO
T he J. G.

DUNN

President,
Wbite Engineering Corporation

WALTER S. FRANKLIN

$100,000,000.00

Capital

President,

Surplus Fund

The Pennsylvania Railroad Company

200,000,000.00

Undivided Profits

LEWIS GAWTRY

CORNELIUS F. KF.LLEY

Chairman

'

of the Board,
Anaconda Copper Mining Company
WILLIAM L. KLET

Total

82,184,218.20

•

Capital Funds

.

$

.

Deposits

382,184,218.20
2,624,548,347.54

President

CHARLES S. MUNSON

Foreign Funds Borrowed

Chairman

of the Board,
Air Reduction

.

.

525,000.00

,

$

Acceptances

Company, Inc.

Less: Own

WILLIAM C. POTTER

15,568,396.17

Acceptances Held for

Investment

GEORGE E. ROOSEVELT

1,892,695.75

.......

of Roosevelt & Son

$ 13,675,700.42

CAgROL M. SHANKS

President,
The Prudential Insurance Company

Dividend

of America

Payable July 15, 1952

Items in Transit with

EUGENE W. STETSON

Chairman,
Executive Committee,
Illinois Central Railroad Company

.

3,500,000.00

.

Foreign Branches

J 1

1,778,190.54

*

KENNETH C. TOWE

Reserve for

President,
Company

Expenses and Taxes

.

•

Other Liabilities

a

period of rising prices

debenture

65,584,367.14

,

Accrued Interest and Accounts

American Cyana mid

'one-way street' for the investor.

1,397,599,413.36

.......

Real Estate Bonds and

the debenture.
"The

.

.

714,650,111.81
755,314,385.82

,

•

•

$

President,

City of New York

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

has initi¬

accordance

.

Stock of Federal Reserve Bank

The Presbyterian Hospital
in the

Obligations

Other Securities and

CHARLES P. COOPER

it

maturing July 1,

stated.

an

as

4V2%, 20-

a

Christiansen Corp.

ated

a

is

named,

being

000.

Debenture,"

debenture

year

Plan—Infla¬

.

.....

Loans and Bills Purchased.

Executive Committee,

J. LUTHER CLEVELAND Chairman
of the Board

"Christiansen

Hand, in Federal Reserve Bank, and Due from

Chairman

value with rises in the Consumers'

The

on

Banks and Bankers
GEORGE

have

gain

RESOURCES

>

23,320,360.66
10,046,797.23

Chairman
of the Board, International

52,321,048.85

^ $ 3,05 9,5 78,614.59

Total Liabilities

THOMAS J. WATSON

Business Machines Corporation
CHARLES E. WILSON

Assets carried

Trustee,

The Ford Foundation

ROBERT W. WOODRUFF

.

fiduciary

at

$277,770,465.76 in the above

powers, to secure

public

moneys as

statement are pledged to qualify for
required by law, and for other purposes.

Chairman, Executive Committee,
The Coca-Cola

Company

a

to

me

Erne

approved on June 2

die

parent

was

Exchange

Peiffer

P.

Christiansen

loy ingot, zinc

me

Giblin:

by the Exchange June 2

Transfer of the

Lowder

Exchange

of

facing the necessity of choosing between regulated
monopoly and free competition. In the Sherman act the

dent of Chris¬

pa

Greenberger

is

tiansen, Presi¬

follow"

changes:

bership

admission

Stock Exchan

announced

nership

formerly

the

to

firm.

New York Stock Exchan

Experience is making it increasingly clear that labor
monopoly is as inimical to free enterprise as any other
kind
of monopoly. Again after sixty-two years the nation

to

against
inflation was

base

&

announce

has

proportionately ad¬

a

Bonner

com¬

Street, New York City, members
of the New York Stock
Exchange,

the

wili

maximum of 150% and to
of

is
of

nies.

deter¬

reflecting changes in the Index
imum

Debenture

employees

a

as

minum

rate

previously reported

the

hedge

ducer

interest

was

the Chronicle of June 19.

to employees of Chris¬
tiansen Corp.'s subsidiary compa¬

semi-annually. This results
a

to

pany and

vary

in

as

firm

Gregory

in¬

vestment

tiansen

fered

along

payments will

Bonner A

em¬

low-risk
serve

with

power

Provision

justed face value of the debenture
a

dustrial

purchasing

Consumers'

forth."

is constant, the ac¬

with

the

Index, With, 100% minimum to a
maximum rise of 150% in face

all

set

The Christiansen Plan—Inflation

providing prd-

Price

amount

because

Consumers Price

to

provided

itself of 4M>%

mined

A

route, within the maximum limi¬
tations

the way in the interest payments,"
he said. "Though the interest rate

be based

a

interest

purchasing power at the
date of tne debenture,

with provision that payments of
interest a? well as principal will
on

which

upon

payments will be based, said" Mr.
Christiansen.
V.

Member Federal Deposit Insurance Corporation

is
■

am

''

"
'

-

,

22

The Commercial and Financial Chronicle

(22)

reported in June.

Downtrend in Orders and Output

Continues

composite opin¬
purchasing
agents
who

According to
ion

despite relaxing of credit controls.

of

a

the

comprise

rials

Survey Committee, whose Chair¬
is Robert

man

Swanton,

evidence
material

inventories

Another

companion
materials with the available steel.

about

Repeating

Employment, both in numbers and

Aims

shortages

hours

worked,

labor

unrest

Wine hester

•

A

■'/<

^

lyx

Co., Di¬

vision
I

Oiin

of

d u s t

n

r

ies,

Inc.,

New

Haven,

Conn.,

the

first

of

v

1952

with

.

purchas¬

sUde

and

future.

controls

credit

reach-back

has

that

jn

view of the
Relaxing of

pessimistic

a

of{

_

production,'

and

orders

immediate

ends

ing executives
reporting
a
further

Robert C. Swanton

industrial

half

not

caused

in

a

pickup
and

of manufacturing orders
production. The steel strike,

bulking large in this picture, is
taking its toll of production
and jobs, a condition which will
also

accelerate

additional

each

with

day the steel mills
more

turing
tailed

and

are down, as
initial manufac¬

more

operations
or

must

discontinued.

be

cur¬

The steel

as

down.

Industrial

and

other

strikes

change of

the year

of

ments

to any

to

items

are

prices

ing

taking

an

and

Even with
steel

more

are

for

an

this

general

longer

periods.

early resumption of

production,

depressing

the

move

we

Considerable switching is being done in other Treasury obliga¬

tions, but with the
2%s of 1958.

are

basic

Heavy Buying by Deposit Banks
Thus, the center of the stage is still occupied by the 2%s due
6/1/1958, with no indication that this issue will surrender its posi¬
tion of importance for a while yet. Volume and activity continue
to be sizable because there are quite a few of these bonds that
must eventually find permanent homes.
As already noted, com¬

material

numerous.

forward

Policy

cautious

policy

banks are still very much interested in this obligation
despite the fact that a large amount of them have already been
purchased by these institutions. Just how many of the 2%s have
mercial

commitments

con¬
running 90

already been purchased by the deposit banks is purely a matter of
guess work.
However, estimates are being heard here and there,
with many of the opinion that the total is somewhere in the
neigh¬
borhood

coverage.

and

coupled with

indi¬

employment,

same

epidemic of labor
the forecast of a

an

controversies,
slow

With

Summer

seems

to

be

firmed, and industrial buyers

proceeding accordingly.

recorded

from

all

closing

may

materials

in

This would mean, according to these
market followers, that at least another $1,000,000,000

will still have to be taken

over

by the deposit banks.

Issue in Heavy Demand

are

To

•

be

the initial rush to buy the

sure,

new

Fremont Robson With

production
running

F. B.

price reductions
plentiful supply

Ashplant Go.

Fremont W. Robson has become

associated with F. B. Ashplant &
Co., 2 Wall Street, New York City.

increase to move surplus and

Mr.

Robson

formerly with
Co., Inc., specializ¬
ing in bond trading.

deep cut in unworked

was

to take them

A. E. Ames &

purchased material inventories is

2%s.

Also,

and

is still around to acquire aflot more of the
non-bank buyers that had subscribed to the

many

issue and had
bonds that

to arrange

butright had

no

bank credits in order to

problem, whereas others had
for them in full. The com¬

pay

banks, according to reports, were not
credit to carry the new bond because it has

DIRECTORS

J. P. MORGAN & CO.
NEW

YORK

Condensed Statement of Condition June 30, 1952

change of heart on the part of certain owners of the 2%s is under¬
standable, since the coupon rate is attractive, and the demand for

Committee

HENRY C. ALEXANDER
President

I.C.R.ATKIN

ASSETS

'

Vice-President

PAUL C.

CABOT

Cosh

on

Hand and Due from

President State Street

Investment

Cotporation

BERNARD S. CARTER
President

Morgan & Cie.
Incorporated

CHARLES S. CHEST ON

this obligation should continue to be
good, which, with the
of time, should be translated into

Stock

$178,780,808.04

Banlcs

248,022,393.85

Grenfell

Sp

Market action of the 2%s of
and better than
expectations,

1958 has so far been impressive
although there have been times when

(including Shares
Limited and

Co.

some

12,835,839.61

Morgan 8' Cie. Incorporated)
Loans and Bills Purchased

JOHN L.

H. P. DAVISON

Vice-President

Accrued Interest, Accounts Receiva ble, etc...

less, it
the

4,848,581.73

Banking House.

3,000,000.00

Liability of Customers

on

new

$808,394,184.94

Company

Chairman Morgan & Cie.

All

President New York Life
Insurance

Other

Official Checks Outstanding
Account*

L.

F. McCOLLUM

Company

been

Payable, Reserve for Taxes, etc....

Credit Issued

'.

Capital

25,000,000.00

.

Surplus

30,000,000.00

Undivided Profits

*

10,476,778.89

$808,394,184.94

Corporation

Insurance

United

States

Government

securities

carried

in the above statement
to secure

$185,039,143.12

arc pledged to
qualify for fiduciary powers,
public tnonics'as required by law, and for other'purposes'.

-

JOHN S. ZINSSER




System

Member Federal Deposit Insurance

Corporation

ceeds of the sale of
common stock.

300,000 shares

After the applica¬

issue, notes payable to banks will

$5,000,000 of New England Power

at

interest.

accrued
award

of the

competitive

The

issue

sale

on

group

June
a

25

bid1 of

bonds

redemption

redeemable

are

at

prices

ranging

from

100.96% to par.
Proceeds

series

E

the proceeds of

bonds,
of

the

sale

estimated

of

to

the

be

be applied to the

not e

s

payable

to

the bond

be

approximately $*3,500,000.
During the five - year period

1947

through

1951,

expenditures of the
taled about
pany

construction
company

$52,700,000.

estimates

The

to¬

com¬

that construction

1952 will be about $11,-

400,000.
New England Power Co. is

en¬

gaged in the generation, transmis¬
sion, purchase and sale of elec¬

tricity for light, heat,

from

$5,000,000, will
payment

of

costs for

100.30%.
The

Member Federal Reserve

banks, which were reduced in
June, 1952, by $7,500,000, the pro¬

tion

regular redemption prices ranging
from 103.88% to par and at special

rtford Fire

Chairman Sharp & Dolune Inc.

giving the rest of the country stiff competition in the
acqui¬
of the new 2%s.

group which offered on June 27

won
at

THOMSON

Company

to let them decline
very much
the Pacific Coast, it is
indicated, have

Halsey, Stuart & Co. Inc. headed
a

and

Chairman Finance

Committee tl

on

mortgage bonds, series E,
314%, due June 1, 1982, at 100%%

Vice-President

Chairman General Motors

not inclined

Co. first

JUNIUS S. MORGAN

JAMES /..

are

Halsey Stuart Group
Offers Utility Bonds

17,797,836.35

Company

SLOAN, JR.

2%s and

4,134,308.72

Acceptances Outstanding and Letters of

President New York Central

ALFRED P.

To be sure, there will

the trend unfolds, but this is

$720,985,260.98

GUSTAV METZM AN
Railroad

a

as

The deposit banks

sition

15,776,671.68

Vice-President

President Continental Oil

new

yet.

$ 98,946,923.54
606,261,665.76

Company

THOMAS S. I.AMONT

and

more

Dealers, according to reports, have really sizable positions in

the

LIABILITIES

Incorporated
DEVEREUX C. JOSEPHS

though

as

sizable and

a normal
It is differences of opinion that make a
good
trading market, and allows buyers and sellers to get in and out of
their securities.
A good market
appears to be in the making for
the new bond.

17,738,559.23

CHARLES D. DICKEY

Deposits: U. S. Government

more

filling

RICHARD R. DEUPREE

D. JAY

volume

price movements
aggressive. None the
steady gradual uptrend is forecast for
bond, with the opinion rather general that the 101 level

seems

bit

a

market procedure.

Chairman The Procter & Gamble

N.

have felt that the

will be reached in the not too distant
future.
be backing and

Letters

of Credit and Acceptances

Vice-President

operators

could have been

284,801,217.93

COLLYER

Chairman and President
The B. F. Goodrich Company

Price Level of 101 Forecast

1,650,000.00

of the Federal Reserve Bank

of Morgan

concerned.

56,716,784.55

Municipal Bonds and Notes

Other Bonds and Securities

passing
higher prices for this security.
Financing by the Treasury, if and when it is necessary in the
future, will most likely be of the short-term variety. This should
not
be
unfavorable as far as the new
six-year obligation is

:

United Stales Government Securities
State and

to extending
compensating

as far as
they are concerned.
The decision by some non-bank
buyers of the new 2%s to hold
new bond, rather than take a
quick profit, most likely means
these securities will be out of the market for at least six months
in
order to establish long-term capital
gain.
The reason for the

Vicc-Cliairmaii

ARTHUR M. ANDERSON

some

the

R. C. LEFF1NG WELL

Chairman Executive

averse

features

IN CORPORA Till)

Chairman

new
new

a part, if not the entire amount of
them, have decided to hold them. Those

allotted to

mercial

GEORGE WHITNEY

an

jntended to sell

were

that bought the 2%s

•

bond created

especially those that had not acquired nearly as many bonds
as they were
expecting to buy. It was hoped in not a few instances
that the quick profit takers would be inclined to let
go of their
bonds, after holding them for only a few days. In not a few cases
this was exactly what did take place, but these eliminations went
on in
such an orderly fashion that prices were not disturbed to
any extent by these transactions.
Probably more important than the way in which the specula¬
tors disposed of their bonds was the
big demand which was there
cers,

distress stocks.
Another

$1,500,000,000.

uncomfortable feeling for many commercial bank investment offi¬

to three weeks in July,

one

of

money

con¬

during the past few months. With
the greatest number of plants yet
operations for vacations,

idea in mind, that is to make way for the

same

cannot

inventories,

con¬

competition
is
sharper turn than

it is expected that

Summer

which

cations of declining orders, prices,

prices

selling below ceil¬

for

which

Steel

strike

in

extremely

30-60-day

and

even

Commercial banks are the main buyers of the new
although they have acquired a sizable amount of these
bonds, there are more of them yet to be bought by these institu¬
tions. The appetite of the deposit banks is still large
enough, ac¬
cording to reports, to take care of many more of these bonds.

tinued in June, 97%
days and under, with the trend to

June, with a
slight tendency to level off. Many
more

strikes

other

on

in

sag

as

land.

issue and

effect on general em¬
immediately.
Threats

Buying

Commodity Prices

tinued

the

of

the

ployment

The

increase in prices resulting

material

months.
new cause,

a

the

of

reports,

decline of

The steel pinch became

settlement

will depend upon settle¬
wage and price contro¬

Industrial

June

the

accentuated

industries

them.

from

are

into July.

of

and the public's reaction

versies,

be

with

three

past

will

the

in

line

noticeable late in June, and early

see

a

what

July by plant vacations,

to

seem

pickup in the
third quarter. Their consensus is
that conditions in the last half of
little

in

reverse

buyers

they have merchandise with which they can do business
It is no longer purely an order market dependent entirely
upon the Central Banks for sponsorship.
The interest in the 2%s
of 1958 is very broad, running
prefty much the length and breadth
cause

again.

drop in industrial pay

shows

the

Much

selective.

very

rolls

of

is

shortage will be minimized some¬
in

seeks

industry

stocks

apparently are in the offing. Buy¬
ing policy is of shorter range, and

a

reflected

is

down,

Governments

on

By JOHN T. CHIPPENDALE, JR.

Employment

Raw
again

sharply

balance

,

newly floated 2%s of 1958 have had a very favorable ef¬
fect upon the whole Government bond market. Volume and activ¬
ity have been increased sharply by the new offering, and as a
result, traders and dealers are back in the saddle once mlwe, be¬

to
inventories

controversies,

of

to

J

,

Thursday, July 3, 1952

The

some

are

Reporter

balance.

in

showing the
Augdst,

expected to be lower in July.

are

Director

Purchases,

stocks
books

production schedules due

labor

still down, with
of levelling off.

are

keep

order

prices generally weak and uncer¬
tain

quarter.

the committee re¬

Price trends,

ports,

With

carry

may

to

Our

management

and

intake of other mate¬

heaviest decline since last

^

shortages

of

well into the fourth

Business

NAPA

C.

effects

dwindle

reduces the

pick-up in manufacturing orders and pro¬

no

duction

.

The steel strike

reduction this month, as steel sup¬

plies

Purchasing Agents, headed by Robert C. Swanton, indicates
there has been

.

is the cause of the severity of the

of

Survey Committee of the National Association

Business

.

resale
impor¬

power

and

other

tant

paft of the company's busi¬

ness

is the sale of electric energy

purposes.

An

for resale.

6

Volume 176

Number 5130

..

.

The Commercial and Financial Chronicle

New York

(23)

Security Dealers Association

Harry R. Amott, Amott, Baker & Co., Incorporated, President of New York Security Dealers
Associa ion

John

J.

O'Kane, Jr., John J. O'Kane, Jr. &
Past

Charles

M. Zingraf,

President

of

the

New

A.

Gammons, Bradley,




Gammons

&

Mt.

New

Security Tracers

Richard

J. Beall, Wellington Fund, Inc., New York; Horace I. Poole, Eisele & King,, Libaire, Stout &
Co.; Arthur E. Schwartz, Bache & Co.; Roi.crt I. Herzrg, He zcg & Co., Inc.; Bill Sherwood,
V
~
Hal rja .en <£ Co.

John

Co.; David Morris, David Morris £ Co.,
Security Dealers Association

Laurence M. Marks & Co., Vice-President of
of

Paul

York

Association

Connell, Amott, Baker & Co., Incorporated; Stan Rogg~nburg, Roggenburg & Co. (Stan celebrated
his birthday at the outing June 27); Harold B. Smith, Pershing & Co.

Edwin

L.

Frank

W.

York

Co. Inc.;

Harry MacCallum, Jr.,

Vernon, N. Y.

23

MacCallum

&

Co.,

Beck, Commercial & Financial Chronicle; Joe Monahan, J. A. Hogle & Co., New York City;
Hal E. Murphy, Commercial <ft Financial Chronicle

Aigeltinger, Aigeltinger &
Frank

Co.; Samuel Weinberg, S. Weinberg
«ft Co., Advertising Agency

Kiernan

& Co.;

Samuel D. Mallin*

•

.

24

^

•

The Commercial and Financial Chronicle

(24)
•

(

" •

%

Rankin, R. M. Horner & Co.; Hanns E. Kuehner, Joyce, Kuehner & Co.

Irving L. Feltman, Mitchell & Company; Robert E. Eble, Mitchell <& Company

Andy Blank, Walston, Hoffman & Goodwin;

John

Robert M. Topol, Greene and Company

Butler, George L. Collins and Bill Bastian, all of




Geyer &

Co. Incorporated

.

.

Thursday, July 3, 1952
•

•

(

Holds Annual Summer

T. Reid

.

'•

-

■

Don

W.

Arthur J.

'

.

'

'1

Outing

-

Steele, Steele and Company; John P. Germain, Stanley Pelz & Co., Inc.

Burian, Daniel F. Rice <ft Company; H. K. Greenfield, Greenfield & Co. Inc.

Mel

S.

Wien, M. S.

Wien

&

Co., Awarding Prizes

Charles H. Dowd, Hodson & Company, Inc.; Bill Kumm, Dunne & Co.

r

Volume 176

Number 5130

.

.

.

The Commercial and Financial Chronicle

(25)

Friday, June 27, 1952

Howard

DeVan, Bache <fi Co.; Jack Maloy, D'Avigdor Co.; Charles M. Kearns, Kearns & Williams

Ely Batkin, Bat kin & Co.

'

George A. Searight

Frank L. Hall, Gersten & Frenkel; Frank San Fillippo,
Hodson

Lester

Milton

Pinkus, Troster, Singer & Co.; Robert Franklin, M. S.




Maurice Hart,

Frenkel, Gersten & Frenkel

Wien & Co.

New

&

Gersten

«fi Frenkel;

George

R, Brown,

Company, Inc.

York Hanseatic Corporation; Frank Dunne,
New
York Hanseatic Corporation

Eugene Stark, guest

Dunne

&

Co.;

Jim

Canavan,

25

26

The Commercial and

(26)

At

Arnold

Edward J.

Thomas

P.

R.

Hanson

and

S.

Wellmer

Hanson, Hanson £




Rabe,

F.

J.

Rabe

&

.

.

Thursday, July 3, 1952

Co.

George J. Koch, Lasser Bros.; Gordon H. Stokes, guest; Edwin R. Koch, guest

Hanson

Walter Brill,

Dealers Association

Farley, President of Hempstead Golf Club; John Miller, Amott, Baker & Co.,

J.

.

Hempstead Golf Club

Enright, Executive Secretary, New York Security

Frederic

Financial Chronicle

Geyer & Co. Incorporated; Jack Havens, accordionist

John

Incorporated

Charles

H.

Dowd,

S.

Hodson

Reitenbaugh,

&

Co., Inc.,

Coodbody

& Co.

Chairman of the Outing

Committee

Number 5130

Volume 176

The Commercial and Financial Chronicle

...

(27)

Wider Slock

Further interest in the future of

Ownership Key to Free Economy

this company may be inspired by
the
increasing number of side¬

Robert F. Shelare, partner of
New York Stock Exchange, in

Hirsch & Co., members of the
explaining a New York Stock
Exchange film, tells Staten Island Rotary Club, when all people
have

direct stake in

a

brief

a

June

of

Staten

preceding

24,

the

picture,

"What
Us

on

showing

of the technicolor motion

wmm

the

Island

Makes

Tick,"

duced

pro¬

by

New

the

York

Stock

Ex¬

"In

tions, such
the

to

answers

many

ques¬

where business gets
with which to work,

what

is a stock, why there are
stocks, what is the relationship of
capital to labor, how and why in¬
vestors

what

buy and sell securities and

all

this

really

adds

change, Robert

'What

F.

striking contrast between the

Shelare,

partner
Hirsch

&

a

of

Co.,

members

of

Makes

on

plaining
F.

why

made and

was

expressed

ex¬

the picture

Shelare

the view that

broad

a

general distribution of corporation
stock

ownership

of the

population would be

porting factor
economic

in

a

sup¬

preserving

our

system.

"Although
the

press
,

all classes

among

Exchange,

this

film

does

ex¬

apprehension one
may have that it will glorify capi¬
tal

any

the

at

"Rather,"
given

Mr.

he

said,

is

labor

Shelare

deserved

a

of

expense

erroneous,"

stated.

"labor

too

of

tribute

nation.

our

certain

And

basic

the

so

facts

under

as

capi¬

the

Spring

of

include
a
small
metal
bending
machine, the "Vita" mortar gun,
gear

mechanisms

picture

for

automatic

windows, and

sub¬

some

earnings.
the

have

can

government

total

a

by

large

$30

per

some

of these to form

of

source

business

fight to protect and

ership possible.
fore, that

fers

policy to expand this portion of

sion

the business

a

through the addition

an

own¬

surest

and

way

perpetuate

democracy.

knowledge

effect

solid

The

of

these

government

on

a

decisions

*412

directors, officers and other

employees
lieved to

as

own

outstanding
many

plan

for

based

be¬

are

stock.

added, "I should only

execute orders.

function

It is not

advise

to

broker's

a

which

stocks

should buy and sell, but may

respectfully
sell

liberty,

suggest

that

short

your

the

pursuit

or

of

its

bonus

employees,

a

common

of

business

was

but

its

present

was

adopted

you

life,

your

of

and

Due

U. S, Government Obligations

of

S.

LICHTENSTEIN

of

The

gears.

State

$1,541,981,993

,

.

1,547,303,755

Perkins
It

Machine

has

prime

seemed

factor

success

&

is

personal

in

Gear

For

Loans

for

gears

World

to

many

precision

engines

and

any

the

company's

management, and from

experience and knowl¬
edge
Perkins

Machine

%,i"U,,

&

Gear

v,

and

particularly

propellers

that

great

the

between

plant

200%

was

Securities

1943

past 11
the

shares.

present
years,

aircraft

19,373,005

of

field

this

my

company's

stock,

one

which
e

of
the

is

xceptional

averaged

$5.71,

the

is

It

this

in

understood

the

first

five

running

ration
cents

of

an

per

regular

despite

The

shares

was

of

recently increased from

months

of

1952

fense

of

program.

United

volume

of

5,000

shares

of

preferred stock.
Perkins

Machine

has established

tation

as

a

an

&

Gear

Co.

enviable repu¬

dependable

manufac-




in

Hamilton

and

cipal

issue

rate

a

extra

embarked

17,500 shares to 35,000 shares and
small

at

of

better

dividend of 25

of

.......

29,624,883
8,244,192

.

,

,

3,312,000

.

$144,000,000
(7,200,000 Shares—$20 Par)

Surplus

156,000,000

Undivided Profits

$6,025,683,556

.

(member

Chairman

of the Board

Total

69,429,912

.

.

W'm. Gage

federal deposit insurance

369,429,912
$6,025,683,556

.

assets are
or

deposited

permitted by law.

corporation)

Chairman of the Executive Committee

President

W. Randolph Burgess

Howard C. Sheperd

Brady, Jr.

CITY BANK FARMERS TRUST COMPANY
Head

Aircraft

of

are

orders,

the

the

and

Statement

'*22

tained

from

of Condition

as

of June 30, 1952'

ASSETS
Cash

and

Due

Banks

from

LIABILITIES

....

U. S. Government Obligations.
Obligations

of

.

.

State

and

and

Municipal Securities

.

.

Advances

in

and

Ban/i Premises

Total

.

.

4,270,248

(Includes Reserve for Dividend $288,548)

17,720,880
2,497,086

Capital

Securities
.

.

.

1

$10,000,000

Surplus

.

.

\

,

,

10,000,000

.

11,240,909

600,000

........

2,704,635

........

Undivided Profits

2,809,794

$177,625,750

.

Total.

.

.

,

.

.

31,240,909

$177,625,750

$11 .793,974 of United States Government Obligations are deposited to secure
$1 ,480,603 of Public Deposits and for other purposes required or permitted by law.
FEDERAL DEPOSIT INSURANCE

large

government machine

.$142,114,593

81,026,495

4,110,582

Federal Reserve Bank

Other Assets

.........

Reserves

.......

Real Estate Lo\ns

Stock

Deposits.

2,147,782

Other Securities

Loans

$ 64,008,495

Other Federal

Agencies

current
a

the highly, specialized

stockpiles.

separate

functions

trust

-

prin¬

equipment required has been ob¬

tool

City Bank of New York for

administration of

(MEMBER

of

of

the
de¬

Pratt & Whitney
Propeller divisions

sources

portion

by
strategic

upon

its

Office: 22 William Street, New York

Affiliate of The National

25

porary
phenomenon, but results
the long range aircraft pro¬

the common is only subordinate to
a

40,479,778

......

Dividend

7,000,000

,

•••••••<'.

earnings

the company is engaged is no tem¬

government

number

22,772,623

Capita i
,

.

.

deficit.

a

that

quarterly dividend

gram

stock.

Other

the

The type of work in which

cents.

in the
Lichtenstein

and

Interest,'Taxes, Other Accrued
Expenses, etc.

9,000,000

,

have

share in addition to the

inherent
S.

11,303,097

for:

International

of

present

shares

fact that 1949 resulted in

leverage

B.

17,428,469

from

common

18,712,000

.

Branches

with

decided

was

on

common

is responsible for the recent decla¬

preference for

18,033,483

,

Unearned Income

the

Many
into

Transit

in

vUnearned Discount

for

since entry into

or

earnings

upon,

number

For

factors

enter

20,056,902

(In Foreign Currencies)

Reserves
.

equivalent to $21.89

were

the

are

other

Portfolio

Foreign Central Banks.

ex¬

than $7 per share per annum.
The
betterment of earnings no doubt

spect.

to

and,300%'

in

re¬

$38,090,385

.

the

fortunate

this

Due

in

was

is

Co.

ances

for aircraft

gears

volume of work in this field

on

that

Bills.

*

2,180,010,102

.....

and

$5,541,640,663

,

Accept¬

Figures of Overseas Branches are as of June 25.
$496,901,145 of United States Government Obligations and
$19,692,700 of other
secure $400,945,247 of Public and Trust
Deposits and for other purposes required

the

II,

on

to

company was called upon to pro¬

in

me

Total

washing

War

Liability

Items

Federal Reserve Bank

in

Other Assets

However, at the be¬

of

of June 30, 1952

as

••••*.«•

99,094,844

.......

Discounts

and

manu¬

employment increased to
Illustrative of the leverage
factor mentioned earlier, earnings

Co.

Company, 44

Branches Overseas

Deposits

31,222,804

535,399,509

,

form

corporate
1926.

56

Chairman

of the Board

W. Randolph Burgess

Vice-Chairman

CORPORATION)

of the Board

Lindsay Bradford

President
Richard S. Perkins

the

asso¬

Street, New York City.

Less: Own Accept-

Municipal Securities

and

Other Securities

1902,

and

City

of Condition

Other Federal

Bank Premises.

Partner, B. S. Lichtenstein & Company, 2,800.
New York

of

now

Office: 55 Wall Street, New York

,

Agencies

Banking Corporation

established in

in

appliances.

panded
BEN

co-manager

ciated with Terry &
Wall

high

ances and

Obligations

machines and other types of home

so

stock.

of defense business
a

as

LIABILITIES

Banks

from

your

it specialized in the

facture

duce

delphia

has trading department, is

-

Real Estate Loans

precision

has ginning

company

incentive

an

For

percentage of gross
Half of this bonus is paid

profits.
in

the

all

on

group

common

years

maintained

a

around half of the

present levels.

Cyrus H. Polley, formerly with

expan¬

currently

guaranteeing

at

Coffin, Betz & Company of Phila¬

ASSETS

Cash, Gold

the

earn¬

Terry & Co. in N. Y. G.

share.

a

unlimited

assets,

Gyrus Polley Now Wi

of

because it of¬

and

Statement

benefits

commission broker,"

pure

Mr. Shelare

years

continued and

as

Security I Like Best

General Chemical Company and
Pennsylvania Salt Manufacturing
Company.

source

Head

which must perforce be favorable
for us in business.

turer

attractive

67 Branches in Greater New York

Stock

for

be

the basis of

plant

excess

$20

on

our

And

per

conservative dividend

a

THE NATIONAL CITY BANK OF NEW YORK

Ownership

Manager

almost

practically

to

Continued from page 2

Research

in

is

common

potential

Acceptances

as

stock

spreads among all the people, that
knowledge will have a wholesome

you

50c

preserve

It follows, there¬

the

strengthen

I

of

is

share, in contrast to the

Company

of other exclusive products.

the

ings and particularly management

were

like Perkins Machine & Gear

the future. It is the management's

Customers' Liability

and

valuation

market price around

for

earnings lead

that

just declared payable Aug.

should

stock

an

nation of small share-

a

is

owners

"As

and

equipment, the book value of

I

important

believe

1, 1952 is

$2,250,000.

period, yet all fixed assets

common

management looks to the develop¬

about

carried at only $736,113 at the end
of
1951. Despite this extremely

conservative

the

share

the

expanded

capacity was acquired
company in the postwar

the

the

ment of

of

cost

to

me

II,

company's plant several times at

and

and

War

This extra

machines. All of these items have

markets

World

years to come. These

a

happiness."

The

During

contracting for automobile repair
potential

level of earnings for at least three

meas¬

industries, they

our

prac¬

American

our

is

debatable

and employ¬

people

about

talism.

Freedom

the system that makes such

never

industry and ownership
ticed

all

direct stake in
will

these

a

of proper market valuations,
but in this case it is supported by

ure

other.

and

ers

its

for

Exchange has tried to get across
to all kinds of people
realistically,
entertainingly, and as a public
service

the

Capitalism's

"When employees

is

great contribution to the develop¬
ment

and

American

viewpoint of the Stock

mere

Slavery, on
the
one
hand, and the actual facts of Capi¬

Stock

Robert

a

munism's

talism

Ex-

provides

promises of Communism and Com¬

the New York

change,

Us Tick'

to

up

manufac¬

Coiling Machine
producing practically
any type and size of spring for ex¬
perimental work, etc. Other items

as

money

being

among

capable

'

undertaking to supply down-

to-earth

Chief

Perkins

our

before

address

Rotary Club

specialities

tured.

industries, they will fight to preserve
system which makes such ownership possible.

the
In

line

Book value is

27

28

The Commercial and Financial Chronicle

(28)

2

individual holders. Second, on the
average the number of separate

Million

Investigation by Brookings Institution, instigated by New York
Exchange, reveals that most persons buy stocks to make
a
profit; men outnumber women as stockholders; one of
sixteen adults owns shares in at least one issue; and holders

There
000

are

approximately 6,500,-

individual

held

stock

States.

They

are

million

share¬
on

the organized stock

one

stock

or

more

an

individual

other

or

tenth fam¬ counts as one shareholding; thus,
ily. These are among the principal a person who owns shares in five
conclusions of the study entitled stocks has five shareholdings. The
"Share Ownership in the United number of shares in the 16,655
States" made public this week by stock issues classified as publicly
The
which
tion

held

of

the

New

The

the

the

ings

H.

population.

the

the

of

Kimmel

ings research staff

sults

ians,

project. The special field sur¬

vey

on

held

the

First,

a

sharehold¬

number of

in

re¬

of fiduci¬

names

investment

companies,

surance

ing—common
the

institutions

foundations,

and other

non-

of

names

parable
New

York

total.

for

is

made

number of

the

on

shares, the

ranks

Pennsylvania.

basis

is

only

25,000

Individual

At the other

of

held

other

age

of

all

share

as

owners

59

to

share

shares

in

60

people

owners

but the

group,

of

are

account for al^-

over

many

portion

estimated

Individuals

range.

old and

the 50

An

group.

age

is

in

is

this

as

tended

relationship

ownership

and

relative

number

estimated

an

college but did not

four-year

the

of

18%

Those who at¬

owners.

a

com¬

rank

course

proportion

State and

tion

$124,135,663.01
107,614,006.85

Municipal Securities

Other Securities

.

.

i

•

Loans and Discounts

•

•

•

F. H. A. Insured Loans and

Customers'

•

is

•

did

•

«

11,279,692.01

•

241,264,745.24

♦

Mortgages

4,552,939.99

Stock of the Federal Reserve Bank

Banking Houses

.

2,690,439.55

is

901,500.00

2,388,725.62

.

Accrued Interest Receivable

935,828.62

Other Assets,

430,708.59

,

$523,284,685.55

15%.

not

-

•

Surplus

Influence

influence

10,569,024.41

July 1, 1952

....

ownership.

Of

family units with incomes of
$10,000 and over, 55% include one
or

share

more

For

owners.

the

$5,000 to $10,000 bracket, the fig¬
is about 20%.

ownership
lower

is

7%.

over

brackets

there

In

the

further

are

declines, but it is of interest that
than

more

incomes

200,000

of

less

families

than

with

$2,000

own

rank

owner¬

share

are

supervisory

second:

Professional

technical

$40,619,024.41
378,125.00

*

19%

of

fields

workers

rank

and

—

individuals owning shares is high¬
est in the Far Western States—

.

1,571,295.38

3,129,546.44

Deposits

471,371,122.96

12%

families

second with

10%

and

6%

with

9.6%

and

accounts

number

share

of

are

4%.

over

for

4.3%.

and

The North Central States

region

$523,284,685.55

for

for individuals. The Eastern States
rank

723,156.17

the

third

This

largest

owners—both

family and individual. The South¬
United, States Government Securities carried at

$16,146,212,98

are

pledged to

and for other purposes as

public and trust deposits,
required or permitted by law•

secure

ern

FEDERAL DEPOSIT INSURANCE CORPORATION

for families and 3.3%

dividuals.
Share




Throughout Greater New York

superb

for in¬

<

is

more

fre¬

,

basic

able

in their

of the

the

rural

communities.

Cities

of

25,000 to 100,000 show the highest
proportion of share owners. Rural
areas

have

the

smallest

propor¬

achieve the goal of

can

we

making

this

*.

pansion

existing

of

plants,

new

better

G.

•

nancial

Keith

Funston

in

'typical share-

a
'•

wealthy share
are

share

own¬

owners

extremely modest fi¬

circumstances.

There

are

.%
share!/owner

farmer,

executive,

an

plumber,

may

be

man

in his

a

housewife,

or an un¬
The share owner

in her 20s

woman

a

be

may

a

affcraftsman

laborlr.

skilled

or

a

6|s.

Mr.

Wis¬

"The
been

said

he

was

par¬

for the first time since World War

fact

that

1,300,000 indi¬
viduals purchased their shares in
past three years, nearly 390,irf 1951 alone, he as¬

of them

serted,

could

survey

made

full

with

which
have

not

such

complete

cooperation

of

several

corporations, banks,
dealers

other

and

se¬
ex¬

sav

than 15,000 people

H.
as

member

of

j

indicates

Whitehead

has

re¬

Vice-President
the policy

Securities

and

committee,
Research

&

Corporation,
become

to

a

general
partner

of

Neerg aard,
Miller

&

Co.,

44 Wall

Street,

New

York

the

of

N

ew

Stock

York

Exchange.
White¬

Mr.

head has been

in

that

securities

the

business for 25

more

and

and

years,

1950

ticularly impressed with the num¬
ber of people who bought shares

the

high praise not

organizations

cooperated in the vast operation.

from

put your finger."

Funston

The

the

engaged

"The share owner lives in

you

their

City, members

eight\tgrade.

to the

for

National

share owners ,with college degrees
and share bwners who didn't get

000

biit

signed

there;

are

more

Neergaard, Miller Go.

'no/'

are

and

who

II.

Mr. Funston had

as

put

to

only for the Brookings Institution,

Louis

that.

"Tmere

That search

fruitful

more

to

new

r.

suc&gM|gnn,e(s
hold
IrWpP*

a

learn how
to work."

on

is

make

Whitehead Partner in

all

"the
shows

there

ers

people
money

facilities

to

products.

be

30,

clearly

share-

"Industry is constantly search¬
ing for money to finance the ex¬

com¬

survey

of

nation

a

owning capitalists.

1943
was

Louis H. Whitehead

to

sole

I

proprietor of Louis

Whitehead

H.

Co.

Formerly

a

member of the faculty of Syracuse

University,
years

for

the

past

several

Whitehead iias been

Mr.

lecturer in Special Courses at
New

York

successor

to

Institute
the

of

a

the

Finance,

New York

Stock

Exchange Institute.
Whitehead's

Mr.

people

admission

are coming to realize
ownership of a share in
American
enterprise is not re¬

Neergaard, Miller & Co.

stricted to millionaires.

to

icle" of June 12.

more

that

"In

viously

cooperation with theLsecuripraMically

of

our

mast

porations,"

he

progressive

added,

"the

years

NEW

New

the facts about the risk and bene¬
fits of stock

is

a

Stock

ownership, why there

Exchange and what it

does for the

nation, and how the

the

pre¬

"Chron¬

(Special to The Financial Chronicle)

cor¬

„to tell

reported, in

was

With Howard, Weil Firm

ties industry, as well as

with

towns

job that still has to be done

before

nothing of the
who were
gracious enough to supply infor¬
mation in the field survey."

production.

June

country's

our

We know, too, the size

changes—to

^

ownership/of

M

shares

common

best interests and in

own

economy.

J.

small

in

the best interests of

intensively in recent

and

them financially

of

invest

to

more

f

els e,"

the

of age who do not own

years

stock—many

thousand

|

n

"Above

in

41,510,000 people between 30 and
49

curities

in- t;:

rmatio

o

6,500,000

are

the first time, that there are some

York Stock Exchange has worked

cities

that there

now

We know, also for

quent in medium-size cities than

larger

guide to the future. We

a

United States.

the

long-needed vand

"has

said,

success." he pointed out, "without

:'f

exam-

supplying

all

ownership

owner

a

pie of research /

f

Exchange

he

capitalists

in

and

26 Offices Located

of the nation's share

population

'group is lowest with less than

8%

MEMBER: N. Y. CLEARING HOUSE ASSOCIATION
FEDERAL RESERVE SYSTEM

Exchange,
the Brookings Institution

termed
survey

doctors, lawyers,

others—are fourth with 12%.

about

Stock

map

5,272,489.33

Less;' Own in Portfolio

York

per¬

Reserved for Interest,Taxes, Contingencies

Other Liabilities

New

Funston, President of

consin, in New York, in Maine, in
Georgia, Tdxas—any place on the

in

The proportions of families and

.$4,700,^1.82

Keith

pro¬

share-owning

and

*

with

third

13%, and those who render
services

in¬

1,791,221.24

......

the

own

Unearned Discount

Acceptances

G.

"The

Operating

*

know

create

Study's Value Lauded
By Exchange Chief

shares.
The proportion of share

Stock

the

should

In the $4,000 to

$5,000 range the incidence of share

sonal

Dividend Payable

share

on

direct

a

the

shares.

.

*

mented

Income

dividuals in this classification

30,050,000.00
.

of

The level of income has

officials

16,815,625.00

Undivided Profits

■

executives—about 45%

$13,234,375.00

.

but

four-year

a

for

less equally divided.

Funston

owners.

Capital

for

college

complete

device

rate enterprise does not imply that
the wealth of the nation is now
or

for

survey,"

the

in

remarkably
successful.
It
remains true, of course, that this
widespread ownership of corpo¬

propor¬

that

ship is highest for administrative

LIABILITIES

stake

been

more

Guide

given us

peo¬

tapping
the savings of the people, the cor¬
porate form of organization has

about

the

one-half

attended

course.

ure
.

about

who

27,090,436.07
•

Liability for Acceptances

.

of high school,

years

•

of

directly, and in¬
directly—through holdings of life
insurance
and
savings accounts.

or

of college work have

owners;

share

next;

«

clearly

numbers

direct

a

ownership of

by the general public.

"The

a

pro¬

Those who had four

largest

share

those

•

duction

more

Enterprise
whole

a

vast

as

has done much

cent increase in

shares

group

Among those who comoleted four

•

than
merely record the sizable and re¬

owners

struments—both

somewhat

direct

a

share

years

plete

.

share

the

that

declared

Funston

survey

Six

years.

corporations by virtue of owner¬
ship of bonds and other credit in¬

Viewed

acceptance."

Mr.

acquired

in

as

Exchange,

owners

the general public has a substan¬
interest in the operation of

shareholdings and

owners

to

A

Stake

have

is

tribution
and

the

that the Stock
making some con¬
that
understanding

great pride

earlier.

tial

Nevada

publicly
stock issues are relatively
frequent among people of
59 years of age than in any

more

are

U. S. Government Securities

ple

that for Wyoming 31,000.

the

Cash and Due from Banks

or *

study

shows that

of

order

same

the estimate for

extreme

education.

RESOURCES

or

became

became

1951

The

little

a

obtains except that California out¬

between

June 30, 1952

1944

—

take

Exchange

since

more

to 60 years.

CONDITION

or

continuously
II

"As President of
I

all

one

have owned

other

any

The proportion of people
who own shares rises with age up

STATEMENT

of

Pennsylvania, California, Illinois, ownership of business enterprise.
In addition to
and
ownership of stocks,
Massachusetts. When com¬

more

OF

during

The next ranking States are

There

CONDENSED

tance.

own¬

two-thirds

one-fifth

cent

per

smaller.

Office, 37 Broad Street

account

stock issues.

during the past three

is

one-fifth of the United States

oyer

owning

of NEW YORK

War

About

Broad

than

State—about 6 million and

most

Main

-World

com¬

women

accounts

shareholdings

years

COMPANY

for

stocks

in the

efforts are

our

owners.

issues

more

that

dicate

not

again during that year.

27%

AND TRUST

is 160. The

men

estimate

this

The Public National Bank

average

preferred—in

and

owners

more

sharehold¬

per

115.

50 to

and

which the study of share

in¬

companies,

shares

of

share

three

every

or

Approximately

approxi¬
own slight¬

men

hold ten

ers

names

are

women."' The

by

number

aries including trustees and guard¬

Brook¬

director of

was

between

owners

factors.

two

from

are

share

of

number

substantial

share-owning

difference

large

women

four shares for

over

parison

change, is a comprehensive anal¬
ysis of the ownership of private
industry and the composition of
Lewis

5

the number of shareholdings and

Ex¬

Stock

York

almost

at

billion.

investigation,
prepared at the invita¬

Brookings
was

estimated

is

ly

owner

share owners in every

the Brookings Institution.

and

men

mately equal, but

by

exchanges and
over-the-counter. Each holding by

one

three

Only about 8% of all share

of

holdings in stock issues traded

One in every

the adult population

issue, and there

30.3

are

than

the survey in¬

"The findings of

right direction. It is a truism that
with understanding
goes
accep¬

more

Shareholdings' in the

be more

increas¬

diffused through

widely

in

Those with

owners.

and

is based was conducted

There

members of 4,-

are

shares in at least

owns

United

shares

owning

for about 72% of all share

sions.

benefits of capitalism can

ac¬

issue account for 46% of

one

all share

by States and geographic divi¬

.Thursday, July 3, 1952

.

ing share ownership.

Individuals

only

they

individual

the first time include'breakdowns

Stewart, Dougall and Associates,
Inc., of New York City.

publicly

the

in

750,000 family units.
16 persons in

of

owners

issues

own¬

1,630,000

of shareholdings by type of holder

age group.

owners

individual

by

Materials relating to share own¬
ership presented in this study for

Study lauded
by NYSE President Funston, who cites evidence of wide diffu¬
sion of public's stake in business enterprise.
frequent in 50-59 year-old

most

owners.

owned

for

count

is 4.1.

ers

Stock

are

tion of share owners, but

issues

U. S. Share Owners Estimated at 6*

.

ORLEANS,

La.—Wilmer

Thomas has become

Howard,

Friedrichs

Weil,

connected

Labouisse,

& Company, Hibernia
Building, members of the New
Orleans and Midwest Stock Ex¬

changes.

Number 5130

Volume 176

.

.The Commercial and Financial Chronicle

.

29

(29)

Continued from page

11

the

\

<

unbounded

future,

and

the

of

form

with

endeavor

grade
school
administra¬

that
youngsters in the fourth, fifth, and
sixth

grades

can

all

economic

and

the world.

over

the

encouraging

steel

to

has

case,

note

the

sounded

death knell for another very dan¬

understand and

such basicxeconomic
freedom of choice, the
importance of
investments, the
function of capital, and the pro¬
duction miracle of industry and
labor working together.
We are
teaching a brand of Americanism
appreciate

gerous

concepts

That

as

control by arbitrary

control

impose
plant
It is

its

the

was

power.

to

power

increases while the

wage

property was "in seizure."
dangerous power, and

or

most

a

removal

is

important step

an

in preserving the

kind of

here that is not selfish propaganda

ment

for

govern¬

democratic

capitalism work best.

particular

any

tion.
lof

It

is

the

sand

the

under

was

under

from

our

The

amazing

about

thing

ness?"

this

sibilities.

If

all

this

of

work

kind

in

We

*will

understand

over,

gener¬

What Price

purposely

price controls?"
can
say
it any

like.

Call

trols?"

it "WHAT,

or

call

Direct

controls

They

con¬

the

time

because

they

felt

I

jacket the

The luxury
has added

These

government.

ing

controls

kept the government print¬

type

in

used

War

II

was

dug out of the mothballs to print
the

regulations.

new

Of

»

are

phony.

a

hounds

the

these

course

direct

controls

We started out with

allegedly chasing the

Now, in this time of slight
deflation, the fox is chasing the
The

control

masters

with the inevitable law

up

of supply and demand.
can

be!

we

How stupid

their
and

*

accomplished
We raised taxes

emergency

purpose.

controlled

controls

It is now

removed

achievement,

resulting

It is time that

this

penalty
wiped out

and

premium

will

she

and waste.

In normal

on

the

times,

over

two-thirds of all funds for growth
and better equipment are derived
from

In

the

also

this

period

have too great

now

will

of

reduced

war,

billion level.

We have taken this

in

stride

the

excessive

can

profit

motive

ernor

on

be

reduced.

again

up

our

so

that
the

Let

be the

gov¬

the great American free

market.

economic
the

bite

we

control,
on

impose another
we

freedom.

are

ap¬

where

economic

we

sh/ws that inflation is not
inevitable. We have learned a

good de«l about how to stop it.

and

that they can develop to
where they can take
their place in the world
economy

the

so

providing

goods

large enough to take
which

may

production
mands

are

should

up

in

appear

when

Want

be

Cultivate

the

edu¬

to

the

up

Cultivate

productive

American

vate the

met.

to

out

of

Gentlemen,
shade

get,

of

we

green

have

we

are

(6)

States

rapidly.

sus

putting

Economic

has

We have

as

of
the
growing
many people

been

as

to

expected

we

shows that

we

children

under

than

had

had 55%

five

in

more

of age

years

Here

1940.

is

as¬

that business will have an

surance

expanding future.
At

(7)
rate of

tions

the

1954

should

increase

total national

our

I

produc¬

national income will con¬
expand sufficiently so
that by the time military expendi¬
reduced

by 10% or 20%,
actually
balance
the

can

budget.

'a

There

expanding

is

our

There

(9)

'

govern

we

behalf




are

of

Loans, Bills Purchased

Mortgages

ment in

possibility

a

of

markets.

overseas

are

industry.

tremendous

research

tation

limitless

to

There has been

expansion in indus¬
and

mass

product

adap¬

markets.

This

research

.

...

entirely

.

.

.

new

double

and Bankers'

Acceptances

.

.

.

814,092,487.16

.

15,034,660.99

.

'

Other Keal Estate

Customers'

13,715,812.16

Equities

256,817.40

Liability for Acceptances

Accrued Interest and Other Resources

13,968,971.05

........

7,498,737.08

.

$2,732,503,685.54
LIARILITIES

Capital

.

.

Surplus

.

.

'.

.

.

.

.

.

.

$50,390,000.00

.

69,444,000.00

.

47,087,076.28

.

Reserves for Taxes, Unearned
Discount, Interest, etc.

Dividend

Payable July 15, 1952

Outstanding Acceptances
Liability

as

Endorser

Other Liabilities

.

.

.

.

.

.

.

lines

of

within, the

are

just

a

for optimism.

$

166,921,076.28
17,908,342.32

.

1,637,675.00

.

.

14,883,999.57

.

*

Acceptances and Foreign Bills

on
.

..

.

.

.

.'

....

.

.

.

9,137,542.77

930,160.03

.

Deposits

2,521,084,889.57

|S2,732,503,685.54
United

States

Government

public jurids and

secure

and

trust

other

Securities carried

deposits and jor other

»IR E <
EDWIN J.

BEINECKE

at

purposes

$141,605,428.62 are pledged to
as required or permitted by law.

Chairman, The Sperry & Hutchinson Co,
EDGAR S. BLOOM

President,

Steamship Co.

RABE

Chairman
Trust Committee
HAROLD

MacLELLAN

C.

RICHARD

New York City
President, United Biscuit Company
HAROLD V. SMITH
of America

FLA NIG AN

President
M.

F.

PATTERSON

Co.

WILLIAM G.

KILPATRICK

KENNETH

Chairman, Dana Corporation

JOHN

C.

Senior Vice-President

President, George A. Fuller Company
CHARLES A. DANA

HOR ACE C.

Director, Cluctt Peabody <6 Co., Inc.

President, Scranton & Lehigh
Coal

Simpson, Thaclter & Bartletl
HARRY

R. CRANDALL

'

R. PALMER

GEORGE J.

OSWALD L. JOHNSTON

CHARLES C. CLOUGH
LOU

C.

Director, Phillips Petroleum Company

Corporation

Mclaughlin

Executive Committee

JOHN L. JOHNSTON

Chairman, American Home

v.

Chairman

Chairman,' Lincoln Savings Bank
oj Brooklyn

AI.VLN G. BRUSH
Products

george

Gerli & Co., Inc.

FREDERICK CRETSCH

Chairman, .New York and Cuba
Mail

TORS

PAOI.INO GERLI

JOHN.

T.

President, Home

MADDEN

President, Emigrant

FRANKLIN

President, United Stales

Industrial

Savings Bank

Lines Company

President, John

Clyde Estate

L.

A.

V AN

Insurance

ROMEL

Chairman, National Dairy
Products Corporation

JOHN P. MAGUIRE

JOHN GKMMELL, JR.

P. Maguire

&

Co., Inc.

HENRY

C. VON

ELM

Honorary Chairman

products

Head Office: 55 Broad Street, New York

next

ten

MOIli; TIl.VX

100

BANKING

Member

These

3,595,050.00

.

Banking. Houses

and

reasons

84,499,699.93
92,141,908.25

.

will continue to develop

will

822,718,053.66

.

.

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

Administrative Vice-President

possi¬
bilities for technological develop¬
a

.

.

30,474,014.53

possible and the
should be al¬

to

(8)

.

Other Securities

is

tion and

we"

Stock of Federal Reserve Bank

tax

lowed to expire in June, 1953.

are

.

reduc¬

tax

some

be

profits

believe

Mortgages

planned

presently

further

no

By

excess

834,507,473.33

State, Municipal and Public Securities

military expenditures there

be

need

U. S. Government Insured F. H.
A,

by

have

Furthermore, the 1950 cen¬

we

$
......

population

The

United

RESOURCES

<.

few

of

Federal

OFFICES

IX

Deposit Insurance

City

OIIEATEH

NEW

Corporation

my

Add to them

•DEFENSE IS YOUR JOB TOO—BUY

U. S.

DEFENSE

only

and

shade

going to get, lady,

of Condition—June 30, 1952

.

driver

window

the

let's go!

so

Condensed Statement

.

and

lady

let's go!"

so

looking

the

"That's

COMPANY

.

The

big burly truck driver stuck
head

TRUST

.

coupe.

corner

truck

MANUFACTURERS

U. S. Government Securities

big,
driving

little

red.

the

and

was

a

street

a

showed

of green you're

other

Again, culti¬

will learn by

we

to

came

sign

go

little story: A

a

driver

lady in

a

hollered,

foreign point of view. In

this task

the

his

parts of the world?

de¬

They

'the

workman's

enterprise

truck

must

we

positive attitude.

a

stopped. The sign turned to green,
but the lady still sat there. Finally

productivity

the

I close with

burly

stopped

Want to spread the blessings of

the slack

military

educators

point of view.

When that is

trade

overseas

schools?

curve?

services

or

with

work

preachers—and

behind

cator's point of view.

point

Undivided Profits

years.

well-being,
blow
in

Far

to

the

—

stability during the past

year

mitting the free market to
a

the

Want

have had

growth -industries. It is said
that
consumption
of
electricity

economic

and

we

controls multiply very fast. Every
time
we
block
an
unnecessary
control and move closer to per¬

striking

East

and

Backward

we?—is

and

forward with

i

The fact that

(5)

trial

Every time

are

again expand the production

may

public

spending and tightened
public fiscal policy,

and

point

of civilian goods,

we

It is time

loose

taxes

ex¬

burden of taxes,

both direct and indirect.
we

be at the $60

soon

expansion

tinue

monopolizes.

short
a

join

Our production for defense

(4)

purposes

tures

earnings which the

profits tax

cess

East,

the

of

assist

so-called

have

working together

businessmen,
workers, farmers, school teachers,

Cash and Due from Banks

pay.

in economic
union.
Of course, I realize that
the European Defense Command
still has to be ratified by the vari¬
ous parliaments.

taxes.

profligacy

on

Nations

time

same

the

has

brought into military union with

The

particularly,

tax,

should be repealed.
we

these

revise these devices.

profits

excess

and

effective.

were

time to

credits,

the

learned—or

Communists

Western Germany has been

1965.

war

conflict

the

to

European allies to organize.

now

On the other hand, the indirect
and general controls adopted in
the

Korean

are

working long hours to revise their
price
schedules
downward,
to
catch

at

over

for

reasons

my

aggression does not

fox.

hounds.

and

win

and

proaching

World

that it is necessary to cultivate
other fellow's point of view.

optimism

concepts,

the West and the chances are that

busy rolling out regu¬

presses

lations in bulk, and the fine agate

are

The

(3)

they would strait-

thousand Federal employees

have

global

(2) We have successfully helped
our

proposed,

and millions of dollars to the cost

of

that

I

of direct price controls
many

have

give economic and mili¬
aid to our Allies in Europe

keep

the business situation

long-range

on

(1)

price controls

economy.

one

tinue to

must

America

troubles will multiply.

demonstrated

time-

thwarts

were

The

apply the

painfully in
great lesson we
so

We

optimism:

same.

adjustment.

and

wage

learned

we

the past.

we

slo¬

a

gan—The Best Is Yet to Come, If
We All Keep Working Together.

Ocean.

control
a

that

economic

normal

opposed
at

not

merely

mechanism

clock

is the

do

are

lessons

this,

have

we

if the caul¬

Here

prices.

One
con¬

of

all

tary

is
I
recognize the tremendous political
and economic importance of the
countries bordering on the Pacific

you

way

price

to both

answer

have is how to

through

point of view.

our

In General Mills

in

Americans have got to

living must

be extended to other peoples.
we

And

will have to make

we

in order to sell

international affairs boils

My

CONTROLS?"
The

back to the level of the Mid¬

be reactivated.

problem

ments that

and

overseas,

rough going

our

based

it,

it "What price

express

graft the tree

dle Ages.

continue unbalanced. Some
segments
of the
economy
may
move forward while other lag.

picture is
I

for

men

Better

to the other fellow, by pre-condi¬
tioning ourselves for the adjust¬

may

Controls?

ambiguous.

some

see

In any case,

real

the

The title for my next

You

the

answering

Undoubtedly

may

dron of

cooperation

education, the coming

"What

when

My last picture is one of

ahead.

industry will do

meaning of free enterprise.

3

It's the same

up.

must

their people to defend
themselves against the hammer of
Communism, which would beat

long-range optimism.

is that educators like it!

We believe it has tremendous pos¬

ation

shut

goods

not

are

encourage

move

their creditors need.

great game of poker you

or

today

way

we

countries

to

forward, we must
help the free world. Trade must

by

question, "What's ahead for busi¬

program

with

up

more

We

stock

people.

As

done,

In the

put

said

Creator.
(

makes

Reasons for Optimism

climate

fathers

endowment

our

which

freedom,

economic

founding

our

fac¬

or

story of America,

achievement

:which

group

and

freedom

of

of Eden.

our

for¬

move

fruits

restricted to this American garden

goals of higher living

new

standards
more

that
the Supreme Court, in denying the
President the right of seizure in

proved

have

We

ishing!

is

It

The results have been aston¬

tors.

freedom

progress

school

and

teachers

human

cooperative

a

The

re¬

that

assurance

nation will continue to
ward to

taken

and

America, and you have
justification for faith in the

sound

What's Ahead for Business?

strength

of

sources

BONDS.

YOHK

Co.

the

only

going

to

The Commercial and Financial Chronicle
30

.

.

Thursday, July 3, 1952-

.

(30)

and the laying of der constant scrutiny in order that
on which the any matters affecting the chemi¬
future
officers and directors of cal industry may be dealt with
MCA
can
bulfcl with complete promptly and effectively.
confidence.
Third, early in the year we faced
the problem of whether, in going
rate of progress,

Continued from first page

Objectives oi Manufacturing
Chemists' Association
the

for

man

great

and dynamic

hide

Industry—"Number
One" Industry in U. S.

Chemical

is

It

the United States.

Number One both in dol¬

We

are

lar

volume

the

our

industry is the Number

One industry of

and in importance to

We

country.

basic

the

are

basic
industry depends. Without chem¬
icals, there cannot be a ton of
steel, or a gallon of petroleum, or
industry on which all other

of

pourid

a

there

be

aluminum—nor can
adequate supply of

an

food, clothing, or housing, for the
American people and for the peo¬
ple of the other nations through¬
out the
world whose economies
interdependent with our own.

are

Since
this

industry does possess

our

importance, I
should hide

enormous

mot think that we

be

to

the

to

able

report

that,

under

leadership

outstanding

the

patting ourselves on
back. In short, I think that we
pursue

But there is

corollary consid¬

a

I wish to mention in

eration that

largely

an

transition

a

which

role

the

from

MCA

played during the 79 years of

has

its

internal role addressed to

the in¬

who

those

for

target

nationalization

American

on

in¬

We have only to look at
experience of the steel

dustry.

the recent

strike

leum

recent

the

industry—and

illustration of the

prominence

single industry may not be

a

too

good

industry
I

an

thing—to

same

realize that too much

for

part

in

be

may.

petro¬

thing, either for the

a

for the country..

or

fully

am

aware

of the view¬

As

item,

second

a

necessary

for

me

it is hardly

to point out that

and the
controls flowing out of this pro¬

the mobilization program

gram

life

were

of

a

our

with
foresight
rather than hindsight, MCA estab¬
lished

with

gram,

we

served

has
the

in

adhere

pro¬

the

to

structure

committee

functional
that

expanded

our

should

well

so

us

Air Pollution

past —the

Committee, for exam¬

Abatement

ance

special

on

product com¬

or

mittees— of

Committee is

one

the

ing

example.

Dur¬

this problem was
a
decision
which

year

resolved

Plastics

the

which

by

places primary reliance on func¬
the

committees—but

tional

mula that

for¬

adopted allows suf¬

was

ficient flexibility for a small num¬
ber of

special

in

tee

successful

continued

the

over,

product commit¬
cases.
More¬

or

appropriate

major factor in the functioning of the Plastics Com¬
industry during the mittee was specifically safeguarded

past year. In order that the chem¬
ical industry might meet mobili¬
zation

ahead

intangible—a basic ple—or whether we should shift
within our association over and
place our primary reli¬

would spokesman for the chemical in¬
put the shackles of socialism and dustry.

ing

in the working out

during the year a Defense

Fourth,

launched

public relations program as an in¬

I

year;

of

What

am

your

believe

tween

we

ment

the
of

a

are

we

enough.
officers and directors
nearly

have sought to
I

pace

members feel

our

going

during the
also aware that

a

fast

achieve, and what
succeeded

have

in

h i

s

n

g

and

ton Subcommittee.

of the control sit¬

With the easing

been the

has

Committee,

Policy

sparkplug in this pro¬
He has been ably assisted

principal
gram.

the mobilization prob¬
lems facing us lessened—but it is

of the Public
Relations
Policy and
Advisory
Committee and by our public re¬
lations counsel, Hill and Knowlton. Rather than go into a detailed
discussion of the subject of public
relations at this time, I am going

cal

year,

substantial

and

Public Relations

Chairman of the

uation towards the end of the fis¬

good to know that Bill Rand and
his associates are continuing to
keep the mobilization picture un-

extremes—the
sound

its Wa

attain¬

middle ground be¬

a

to the work of this Committee

Business Established 1818

the

by

members

PRIVATE

address

later

will

Merck

Mr.

overall

his

In

today.

discuss

public relations

pro¬

&

Co.

BANKERS

attaches to such registra¬
tion.
Our registration is merely
a frank avowal
of our legitimate
stigma

interest in
lation

PHILADELPHIA

BOSTON

YORK

supporting good legis¬
and our equally great in¬
in

the year,

Statement

PARTNERS

on

Hand and Due

Banks

from

United States Government Securities

State, Municipal

.

.

Other Marketable Securities

.

7,146,737.29

.

.

Loans

and

Discounts

Customers' Liability

48,493,729.89

on

Acceptances

13,489,484.28

.

Other Assets

1,185,933.06

Purchase
of

and

of

EBt^xsits—-Time

Acceptances:

.

.

.

.

was a necessary

corollary
program

the

to

and
ex¬

which

on

year.

we

Even

portion of the Lobbying

a

been

has

declared

i,i78,ooo.oo
in

Portfolio

Accrued Interest, Expenses, Etc.

Capital

for

Contingencies

...

.

Surplus

.

.

.

in

Federal Court
involving the National

case

a

of Manufacturers,

Association

continue

to

we

registra¬

our

pending final adjudication cf
case
by the Supreme-

tion

NAM

the

Sixth,

we

operations

have streamlined our

by

centralizing all

staff work

the

of MCA

of

in Wash¬

$193,738,1611.11
14,478,595.26

334,006^>
1,500,000.00

$ 2,000,000.00

12,205,283.54

tant

symposia—an Air Pollution
Conference, an Inter-

Abatement

Industry Conference

Chemicals

on

in

Foods, and other meetings of a
similar nature—and we have laid

plans for going ahead with addi¬
tional constructive sessions of this

type during the coming year.
Government Assisted in Obtaining
Personnel

the

assisted

have

we

government, to the maximum pos¬
sible

in the recruiting of

extent,

ernment

agencies.

been of great
—but

I

is

though
lose

it necessary to
strengthen the Washington office
from a personal standpoint and, as
you know, Bob Taylor has joined
the firm of

Hill and Knowlton as

executive

to

the.

account

effective

the

functioning

and

more

$224,256,496.23

lems
will

As

go
required by law $r,600,000 u.s. Government securities are pledged to secure public deposits.

we

have

encountered

and

continue to encounter as we

ahead with our expanded pro¬

gram.

Seventh, and closely interwoven
Private Bankers and subject to examination and regulation by the Superintendent

of Banks of the State of New York

by the Department of Banking of the Commonwealth of Pennsylvania. Subject to supervision and examination by the Commis¬
sioner of Banks of the Commonwealth of Massachusetts.

items I have
already mentioned, we have en¬

with

many

of

the

gaged as our General Counsel the

Washington firm of Fowler, Leva,
Hawes &

Symington—and, in ad¬

dition, Marx Leva, former Assist¬

this

that

with

even

us,

control' picture

and

I

hope

has

will

you

not

sight of the need for giving

continued support to men like Bill

Curtis,

who

have

active

larly

in

been

this

particu¬

recruitment,

program.
I

am

all

much tempted to

very

port to

in

you

of

the

re¬

greater detail

otheer

could be cited

on

that

examples

in connection with

the work of MCA

during the past
printed annual

a

report is being mailed to you to¬
day from the Washington office,
I

shall leave the

to that

to

report.
this

read

all

will

additional

report

be

and

accomplishments

of

of

you

broad

the

many

commit¬

our

would take

describe

me

the

during the year—-accomplish¬

ments that
to

that

so

of

aware

program

tees

detail

I Urge each of you

of the Association's services

scope

and

than

here today.

is

time

more

available

to

But I do want 4o

all of you, and through

express to

to your company representa¬

you

tives

the

on

committees,

my

ap¬

preciation and that of your other
officers

for

dled

well

the

many
difficult
assignments that have been han¬
so

by

the

committees

and the committee members dur¬

ing the
So

year.

much

for

Ahead of

past.
year,

the

that

year

there lies

us

a

is

new

with

new
opportunities.
I
that you will give to
your
Chairman the same fine sup¬

am sure

port

have

always given me,
equally sure that not
only the coming year, but all the
you

and

I

years

am

that lie

increasingly
its

ahead, will

both

service

to

industry and the
the

MCA

see

successful

program - of

in

the

coun¬

related

pro¬

gram of

making clear to the Amer¬
people the natuie, the im¬

ican

portance and the greatness of the
chemical industry.

\

flaf'S

charged with responsi¬

organization, capable of

stress

still

Ward, Felix Williams and Frank

Oity Celebrates

59 Years

bility for handling the MCA ac¬
count. The net result has been a
smoother

14,205,283.54

and

the

of

help in this regard

want

problem

eased,

Many

companies of MCA have

try, and also in

dealing with the expanded prob¬

Securities




Ninth, during the year we spon¬
a number of highly impor¬

sored

chemical

This step has made

Advisory Service

nd

of the mostMCA has ever

one

was

conducted.

new

Vice-President
...

.....

•

as

December,

successful meetings

ing separate Washington ang New
offices as in the recent past.

Investment

,icensed

the Mid-Winter Conference of last

unconsti¬

tutional by a lower

York

$192,560,611.11

.

Less Amount

Sale

Securities

Custody

Deposits—Demand

Reserve

Brokers for

conclusion,,

this

of

ington office, instead of maintain¬

LIABILITIES

Credit

the

under

Court.

Limited Part tier

op

though

intend

W. A. Harriman

...

panded

Act

47,328,495.00

.

.

$224,256,496.23

Commercial Letters

registration

embarked during the

53,633,415.41

.

Other

and

Public Securities

$ 52,978,701.30

.

Knight Woolley

Acceptances

our

desirable

Cash

Stephen Y. LIord

•

pending before the Congress,

Lobbying Act

ASSETS

Thatcher M. Brown

were

and

Moreau D. Brown

Loans

legislation.

representatives of MCA
on
many measures that

testified

oj Condition, June 30, 1932

and
During

harmful

opposing

unworkable

Deposit Accounts

fruit

year—but since

terest

FACILITIES

annually—and

than

rather
first

the

further discussion of

registered
under
the
"Federal
Regulation of Lobbying Act." As
I am sure all of you realize, no

Brown Brothers Harriman

H. D. Pennington

ally,

member

ing at too fast

Fifth, and closely related to our

Ray Morris"

today's world makes it desir¬

in

able for MCA to meet semi-annu¬

personnel for the emergency gov¬

public relations program, we have

Kingsbury, Jr.

events

tegral part of the transition I have

gram.

Thomas McCance

we

year

already mentioned* George Merck,
both as President of MCA anu as

address,

F. H.

the

in

chairmanship of Bill Rand—
and I feel'that MCA owes much

the

E. R. Harriman

early

Eighth,

concluded that the tempo of

able

MCA has been proceed¬

his

Louis Curtis

for MCA.

feel that

this subject until Mr. Merck makes

Prescott S. Bush

ship has proved a very happy one

Mobilization Committee under the

to defer any

NEW

Committee.

zation

Tenth,
a

the
Mobili¬
This relation¬

of the Defense

Chairman

of this formula.

have

we

has

Assistant to the Chair¬

as

of MCA and Assistant to

man

Relations Program

A Public

problems

served

Defense,

of

Secretary

ant

point of some of our members who

achieving, is

past year.

the first

dustry itself—to a new and more
articulate
external role
as
the

not

during the

past year,

that I would mention, and
the item of greatest importance, is
thing

Charybdis of so much self-praise
that we become a bright and shin¬

on

been made

specific

lifetime—which was primarily an

some

Advisory Committees, a very sub¬
stantial start towards telling our

the

to

now

of the

events

Chemical

middle course
between the Scylla of public igno¬
rance
of
our
industry, and the

George

story has

not sprairr

wrists by

of past

Merck and his associates
the Public Relations Poiicy and

Turning

bushel, I

light under a

our

should

do
our

I am glad

light under a bushel.

we

also feel that we should

that the

belief

firm

my

that

feel

I

for
Industry

MCA—Spokesman

it is this:
should not

and

connection,

this

While

industry we represent.

chemical

foundations

solid

m

Orient

The National City Bank of New
is celebrating the 50th an¬
niversary on its branch banking
system in the Far East. On July 1,

York

1902

The

International

Corporation,
became

City
in

an

Bank,

Manila

later

which

Banking

subsequently

affiliate of the National

that

established
and
same

branches
Singapore,
and
year

opened

branches at

Hong Kong and Yoko¬
hama. Today the bank has 12 Far
Eastern

branches,

in

addition

44 other overseas branches

throughout the world.

to

located

Number 5130

Volume 176

The

..

The Commercial and Financial Chronicle

.

(31)

Blockson Chemical Co.

Impact of Credit

Publicly Offered

Goldman, Sachs & Co. headed
nationwide

By PAUL EINZIG

writers

Dr.

who

Einzig reviews recent British policy of credit restrictions
designed to halt inflation trend. Concludes, though figures show

<

common

only slight contraction in bank loans in first half of

;

group

ical

the

year,

policy is having favorable effect on currency and price
■1 stability. Blames Labor Party Government for creating too
much money

by

credit.

easy

the

to

new

on

public

Cp. at

a

public

issue of

the company.

-

ing

sold

government's

advances

during

new

monetary policy on the vol¬

the first six months following

shares

of

per

share.

represents the first
any

securities

The shares

by certain

to hold after the

bank

offered

price of $29

The offering

of the effect of the

of

under¬

27

stock of Blockson Chem¬

of the company

adoption.

147

June

500,000

LONDON, Eng. — The British Bankers Association has just
published some detailed figures indicating the nature and extent
ume

of

a

"

•p

stock

of the capital

company.

are

of

be¬

stockholders

a

including the soap and detergent
industry, as important components
of synthetic detergents and soaps,
and

as

household

business has grown rapidly in re¬
cent years and today the company

water

is
of

the

of

one

sodium

leading

phosphates

United States.
net

producers

sales

in

tne

In the last 10 years

have

increased

from

$2,859,188 to $26,019,379, due in
large measure to growth in the
physical volume of the company's
sales.

For 1951 net income before

income

taxes

after taxes
The
used

$8,164,146

was

products

variety

a

of

try as a viscosity reducer of muds
to-facilitate

drilling of oil wells;

disinfectants,

as

fungicides

the

company's

business

curred in sodium

To

rearmament.

4%

from 2%

in March.

to bear

are,

industries,

the

increased

use

synthetic detergents.

its

.^WORLmwiDE BANKING^

the

end

Bank

rate

was

in November and to

The Treasury brought pressure

the banks to induce them to curtail

on

their advances.

plaints

that

to 2Vz%

From every

the

about

side

we

hear

com¬

"credit

squeeze."
Business
firms and private individuals alike have been
pressed by their bank managers to reduce their
overdrafts.

New

wculd-be

borrowers

find

it

increasingly difficult to obtain the credits they
require even if they can offer adequate secu¬

THE

rity.
In

'

called

the circumstances the result of the

so-

£2,003.8
per

CHASE

"credit

Dr. Paul Einzig
squeeze," as shown by the fig¬
ures published
by the British Bankers Associa¬
tion must be regarded as
distinctly disappointing. Between No¬
vember, 1951 and May, 1952, the total of bank aavahces'declined
by a mere £ 13 million. As the total outstanding at mid-May was

million

the

NATIONAL BANK

decline

represented a little oveh^one-half
An analysis of the various categories of advances shows

cent.

OF THE

that advances to industry actually increased during "the" period by
£28 million. This was offset by a decline of loans to retail
trade,
financial
credits

OF NEW YORK

CITY

..

institutions

to

armament

and private individuals.
The increase of
industry can largely be accounted for by growing re¬
requirements. It seems on the face of it that the net

STATEMENT OF CONDITION,

JUNE 30, 1952

result of six months'

setting

the

deflationary policy was little iftoM-than off¬
inflationary effect of a credit expanSioh' needed in

RESOURCES

connection with rearmament.
The picture is somewhat less
discouraging""if5*we spiit the,
period of six months into two periods of three months each. Up to
the middle
it

of

February bank advances

bound

was

to

take

little

a

policy produced its effect.

time

continue^Jto increase,

before

Between

the

the

government's

middle

Cash and Due from Banks

as

U. S. Government
State and

the middle of May there was
actually a decline of Bank advances

by £52 million. Admittedly this

was

largely the

fdSult of the

solidation of the short-term indebtedness of the British

Authority through the issue of

a

Other Securities

Mortgages

were used for the
repayment of bank lidVarices. Allow¬
ing for this, the results of the "credit squeeze" during-the second
quarter of the Conservative regime, though better than during the
first quarter, cannot be regarded as impressive.

In

order to be able to do

it is

necessary

to

justice to Mr.

compare

Loans.

This

was

more

prices since the

1,232,757,393.74
310,548,457.00

•

.

331,571,914.82

.

62,485,411.74

........

....

,2196,947,098.41

.....

.

11,955,791.57

.

Butler's "p'olicy, how¬

the figures for 1952 with the

than 10% of the total.

to the effect of the rise in

.

....

Accrued Interest Receivable.
Customers'

cor¬

responding figures for 1951. During the 12 months-ended midMay, 1952, there was an increase of total bank advances by £211
million.

.

Electricity

public loan, part of the proceeds

of which

ever,

Municipal Securities

''

con¬

$1,477,139,773.97

♦

.

Obligations

new:-,

of1 February -and

.

•

36,732,690.06

.

Banking Houses

Itrwas°dttributable

beginning oMie

Acceptance Liability

Other Assets

Korean

29,608,306.55

.

.

.

.

.

.

7,886,438.98

.

conflict.

Had it not been for the deflationary measures taken since-November, 1951, this rise would have continued, for the adjust¬
ment of the volume of bank advances to the
higher requirements
due to higher prices is far from
complete. It is one of the objects.
of the official monetary
policy to prevent the completion. of the -A'",
adjustment. The fact that during the quarter ended May, 1952,

there

was

an

actual

small reduction

in the total shows

that, ip g.;

$5,697,633,276.84
LIABILITIES

Deposits

negative

sense at any rate, the monetary policy has been^" success¬
It has succeeded in
checking credit inflation even if it has not
succeeded in bringing about credit deflation to
any noteworthy
extent.

.........

...

$5,236,752,681.97

ful.

Foreign Funds Borrowed
Dividend

Had the policy of credit restrictions been
adopted at the be-^;
ginning of 1951 when the government of the day decided in favor ~
of a rearmament
program of £4,700 million, the monetary position'-^
would be
incomparably sounder today. The increase in bgflk ^d-<.
vances
by over £200 million could have been prevented., This
would

have

effectively check the rise in prices during 195T, and, '77
even more
important, it would have corrected ther"pre- ^
vailing abnormal state of over-full employment. Labor and ma¬

What is
terial

could

gram

without

secure

have

been made

having to

give

available
up

wages

and

rearmament^proprices in order to

Restrictions at

r^afmament. The

abourthe

true

nature

a

Payable August 1, 1952.

.

.

.

2,960,000.00

...

.

30,564,414.63

Reserves—Taxes and

Expenses

Other Liabilities

15,402,123.67

.

«p

Acceptances Outstanding
Less: In

Portfolio

.

.

.

41,053,062.08

..

.....

3,944,470.80

.

Surplus.

Mr.

Gaitskell, like so many.?,?
others, was hypnotized by the definition of inflation as "too much"
money chasing too few goods."
He regarded the rise in prices
during 1951 as the inevitable consequence of the higher cost of
imported raw materials. There was evidently not too much
money;

in

fact, if anything, there was too little, owing to the rapid increase
monetary requirements due to. higher prices.
He concluded
therefore that there was no monetary inflation.
\

.

$111,000,000.00

(7,400.000 Shares—$15 Par)

time when he was embarking on larg&sflies in the prevailing misconception
inflation.

•

Capital Stock.

answer
of

,

Capital Funds:

It may well be asked why Mr. Butler's
predecessor at the "Ex- ;
chequer, Mr. Gaitskell, who is also a sound man, did not resdrt
scale

.

.

for the

them in competition with civilian requirements.

to credit

7,431,239.00

.

.

.

.

189,000,000.00

.

Undivided Profits

67,414,226.29

367,414,226.29

-c

$5,697,633,276.84

„'

in

_

In reality the credit expansion witnessed during

1951

con¬

stituted monetary inflation .even
though it was not the cause but
the effect of the rise in
prices that took place largely through non¬
monetary causes. It is true the origin of the rise was non-mone¬

tary.

It

was

fed, however, by the absence of

in the volume of credit that followed it.

ability

a

resistance to the rise

The late government's in¬

unwillingness to check the rise in prices by means of a
credit squeeze must be
regarded as constituting an inflationary
monetary policy in the passive sense of the term.
or




— --

United States Government and other securities carried
to secure

public and

trust

at

deposits and for other purposes

$576,754,165.00

as

were pledged
requited or permitted by law.

t

Member Federal

has

oc¬

tripolyphosphate

The object of that monetary policy

achieve deflation and thereby to arrest
rising trend of prices at the same time as
releasing workers and materials needed for

and

bactericides; as laundry scouring
agents; for fluoridation of water;
and as conditioning agents for fer¬
tilizers.
The greatest growth in

which has been brought about by

$2,874,146.

was

company's
in

and

detergents; for boiler
treatment; in the oil indus¬

the

raised

industrial

and

cleansers and

who will continue

offering approxi-

oqtgrowth of
business established'in 1926. The

to

was

of the

The company is an

Slk.

Restriction in Britain

mately two-thirds

31

Deposit Insurance Corporation

of

household

32

(32)

The Commercial and Financial Chronicle

Continued from first page

Movies
.Temsjrk,
200

as

years

ventories of old films to television.

their
of

But the

JUnC

j

deluge followed

•

t

the

owners'

neighbors

e

simultaneous

iiri

nationalism

Stockini?
strirt

limitation

funds
the

noon

fUmfttia?
into

TmnorteH

a

m°m ^

that

mifrht

from

have

the

U.

S.

Sherman Anti-Trust

abTJssman

delivered

company

tfen of Paramount,
Brothers

idie

production

mount

Twentieth

and

divorced

be

facilities.*
RKO

and

have

plight of the picture makers

shows

steady

a

decline

earnings from the $7.90
in

com-

1946

the

to

1951.

per

decreased

from

high

present

thented Paramount Theatres

of

Jan.

1,

two

new

1950.

RKO

companies

of

established

a

later.

year

steadily
63 to its

of

17.
As

/

general rule, the earnings

a

tom in 1948, and a

expenditures, but it

ment has

Paramount

have

may

that

weathered

into separate units,
reorganizations should be
completed within the next two
and the

for

remain

needed

to

may

these

extraor-

a

was

executives

of

ignored

1946, it

in

by
was

movie

reported

hack in those days the Society
Motion
Picture
Engineers

wanted the

industry heads to

re-

quest from the Federal Communications

Commission

the

rights to

certain TV channels.

As of today,
which is operat-

5^A,lns
g
interest

substantial

s'has.

in

operation.

ens,

In

situation like

a

statistics

past

little,

mean

every intelligent investor are
whether or not the bottom may
have

been

reached

companies,'

by

which

and

certain
of

the

119955

Thp

mm-

tn
ctirl tn what' it
u? 'LO bl"

intpndc

the

During

past

two

company has purchased
°n th« open market for a price of
about
$21.50
a
share,
957,000

shares of its own
As

common stock,
result of this action, the per

a

share

have

earnings

increased

abou^'2£% over the figureinwhich
would have been shown
1951
ing-

Paramount, likewise, has moved
to keep in step with television. In
addition

to

owns

the

28

a

Allan

television

its

station,
cent interest in

per

B.

Du

Mont

It also

owns

ented

against

have been

television,

unwilling

make films for

or

or

and

unable to

to sell- their in-

interest

cent

a

color

in

Chromatic

tube

that

is

Tele-

adapt-

coior

50

Kings County Trust Company
346

FULTON

STREET

per

cent

Earnings

BROOKLYN 1, N. Y.

the

conjunction

with

shows,

way

operas,

country

the

across

and

on

atre

interest

in

Interna-

knv

on

.

.

of

use

scale

laree

the

Undivided Profits

$720,000.00

the close

of business

on

* outside

Cash

on

Cash

in

LIABILITIES

Hand

$

Banks

V. fi. Gov't Bonds

1,976,924.34
14,170,239.09
17,899,186.27

W. Y. State and

6,488,368.10

Bonds

10,143,381.10

Stocks

818,602.20
1,183,596.80

Bonds and

Zxians

on

MortgagesCollateral,

Demand and Time—
Bills
Heal

1,066,965.77
3,150.634.51

Purchased
Estate

Other

$

485,000.00

Assets

500,000.00

Surplus

7,500,000.00

Undivided

City Bonds
Other

Capital

Due

Profits

720,239.48

Depositors

48,110,515.50

Checks Certified
Unearned

51,618.02

Discount

11,303.97

Reserves for Taxes,
Expenses and

Contingencies
Official

372,203.14

656,807.72

Checks

Outstanding

—

204,616.63

$57,755,101.32

SAVE

Member Federal Deposit Insurance

FOR

YOUR

INDEPENDENCE

-

BUY

U.

Corporation
S.

SAVINGS BONDS




,«The Red

Badge of Courage," points

up

in

the

According to the story,

idealistic

production
B

with most movie

common

Schary

was

by Louis

opposed

was

trial

After much

Mayer.

and

cutting, and revamping in

attempt

an

Dore

tailor it

to

public

to

companies, Fox is cutting costs, taste, the picture scored a dismal
Ad of its outstanding preferred failure and reached a low point
stock

retired during 1951 with

was

when

consequent betterment in earningg fQr the c0mmon stockholders,
w

Brothers

is

its

issue

moving

it

with

on

shown

being

Esther

an

end it

the

In

to

was

picture

second

as

double

a

a

bill

Williams vehicle,

discoverd that

was

out-

Nicholas Schenck, the real MGM

standin„ stock in keeping with its

boss, had known the picture would
be a box office failure, but had
allowed
Schary to make it in

t

d0wn

large

dimini«£itlg

Ppoier

earnin£

6

,

of

|

4

At

shares

^ end^ 1M9 7 295,^0 shares

^

been reduced to the present jnumnurchase
market

q

hag
•

.

..

hold

earmarked
an0+uer

q£ gtock

in

i

st0ck

bv

Schenck's conclusion,

Although
with

rphe

controversy

The few art
turned

1950

Art

out

art

lengthy

to

produce

speak

of

films

being

for

tele¬

vision, the great difficulty in the
way of such production is the high
wcli

"rC'VuT*

.feature

2?

one

people

movie

Probably

Ld prestige pictures the minimum for which an acL Hollywood have ccptabie feature ftim can be made
acclaim from intel-

some

but

annarentlv

As

profit

Universal

between
a

Television

confidence

some

able
vs.

and

Coexist?

be

retire-

ments \

and profit has been

Movies

Can

nQW

additional

Profits

picture like

shares

this control will

and

increased

a

that again," is said to have been

the outstand-

cent of

ver

will want to make

the

$i5)000,000

qaq qq0

"I don't think he (Schary)

rience.

com-

Wa^er

(The

24

shares

of

Currently the

example
p

an

great part to

MOTION

a

the

'

18 abo,ut $400,000. With presentc^ay television coverage, it is
doubtful lf an advertising budget

by

attributable

in

series

of pictures

PICTURE

withstand

can

staged

recovery
was

little

This
is

does

such

not

entirely dark.

few

years

a

mean

cost.
the

future

Within the next

it is contemplated that

COMPANIES
Twentieth
RKO

Loew's

Republic

Century-

Universal

Warner

Pictures

Fox

Pictures

Bros.

$7.90

$5.32

$2.62

4.81

3.11

3.02

,4.29

3.59

1.62

(4.28

1.45

1.43

3.26

1.45

1.46

1.47

2.10

167

$4.00

$3.52

Paramount

$2.00

$1.56

$0.38

0.82

1.08

1.17

2.58

1.47

$2.73

1.86

1.52

2.33

0.14

1946

$0.50

1.50

1.00

1.50

—

—

$2.00

1.00

—

0.20

2.05

0.09

mm

mm

mm

'

'

'

—

—

—

0.41
0.05

—

—

—

$0.09

i

—

—

——

—

—

—

—

-*•

—

mm

mm

mm

mm

mm

mm

3.00

—

—

1.50

2.00

1.56

2.00

___

—

0.75

1.38

2.00

0.50

1.50

$2.00

0.50

1.50

2.00

1.00

2.00

1.06

2.00

0.60

,

1.00

Average price:
1946

22

33

12

50

37

1947

17

23

6

30

21

15

1948

10

17

3

22

11

11

1949

11

16

23

9

13

1950

12

16

22

9

13

3
20

-

4

20

12

outstdg.

27

4

4

20

12

13

i3y4

24

4

4

1-31/2

11 y4

i2y>

$35.04

$4.90

$16.85

$0.81

$7.73

$24.25

$17.39

$3.87

44.31

Net quick assets per share__

17

11%

Recent market

26.98

28.52

1.28

9.13

35.72

20.99

20.56

V!

available.

960,498 5,619,785

$23,497

$36,876

$67,171

$16,705

$21,735

165,353

190,323

53,934

55,368

—

670,669 5,142,615 2,342,116 1,817,860 3,914,913 2,769,485

46,511

Excess curr. assets over total
liabilities (000 omitted)
Gross receipts
(000 omitted):

♦Not

I

of the art film>

mak-

error,

5.33

No. of common shs.

•

Yorkerregarding the

troversy.

.

0.40

Book value per share

$57,755,101.32

«flew

beautiful detail the art-profit con-

owners-

$5.22

1949

June 30,1952

The recent senes °£ artlcles in

^

/?

1950

ASSETS

from

.

of salvation for theatre

means

Columbia

share:

1948

at

far

during the

success, even

a

?

u

was

J,US\War
ft fJv S*
haS bee" temPt6d 1 * y gf

reouire

^

wltho

Wilson

Dividends:

'

Statement

being

process

will

"picture

Qrable "

theatre

1949

$7,500,000.00

.

otto

on,

■r-

per

1950

Surplus

may

yZanuCk's

+

LEADING

1946

$500,000.00

.

^

be interesting to recall
Darryl
remark at
the
time he made "Wilson."
"If this

OOOperthe-

the

and

so

1947

.

quickly be esti-

mated.
Unfortunately, during
1950, Universal dabbled with a

it

the

1948
.

Since most pictures are
profitable if they gross 1.9 times
cost,
Universale profits on Ma

Kettles might have^turned.

United

1947

Capital

500,000.

sensitive production of the fantasy, "Harvey," and dropped a
good share of the profit that the

P°ssible t0 televise Broad"

wi»

Datronage
p
8

,

owns a

tional Telemeter Corporation,

and

in

able to converting an ordinary received
black-and-white television set to Jectuals

Additionally, Paramount

342, 344

twofold

a

This process is being de-

veloped

50 per

a

panies

ranks

throughout

Labora-

vision Laboratories which has pat-

their

is

are

a

the

tories, Inc.

held

they

developing
Eidophor, a Swiss invention for
televising in color entertainments
to be shown on large screens in

a

Twentieth Century-Fox and Warner Brothers.. So
far, these comhave

to television

First,

de$2,-

production of this picture, whose

^viPmpkinT

industry

Paramount,

Century-Fox, the

be

about

can

gross

and Pa Kettle can

At Twentieth

£?JIn

it

Loew's,

outside in-

so many

terests.

to

shown i6 be enthusiastic about the

entertain-

tpiovicinn

others will fall by the Wayside.
The "Big Four" of the movie
are

ownership of

ordinarily

upon

As the number of theatres cons taining this type of equipment

7he q^stions that must be asked cm the. shares previously'outstandby

a.ny solidly,

television

Meanwhile, 14,000,000

constant

the present one, where an entirely
new mode of competition threat-

be

hnll
t
Although the challenge of ♦ i
telewj/.on

almost

four years from 1948

through 1951.*

companies,

time

absorb

fvneof

years,

remained

is

1? f®, ™Jwil Petition with television could be

structure.

have

it

facing several FCC hearings
the legality of its

c

n

llTnntin,,«

y

aimed at the small-town

and

grows in number> successful com-

*

:an

lowered grosses.

It is noteworthy,
too, that the prices of the stocks

business that

of

«««

the failure to cut costs in line with

reorganiza-

these

considerable

succeed-

nrevail-

th

,

®

The low 1948 earnings

years.

Nevertheless, the prob- during the

and expenses of

and

ing

of

reorganizing

Uon

.

bot-

small improve-

been shown in

costs

In"vie maiting.
show may be accounted for by the deParamount has been vigorously
other crease in foreign business and by at
work tightening its capital

.the worst of these and may
better future earnings.
The
companies are in the process

years.
ferns

has

make

,:LP fu
2a*

n

*
J

■

0f most movie companies hit

are

*verv oroducNew YorkVitv
he®t ^o«^?hfe LL
of New York City.

the

^nthe

price

*

These divestitures involved heavy
appears

1946

a

™a^<

tion

in

recorded

ptoi with this ruling; Paramount
split into Paramount Pictures and
as

^ ®

share in
The price of the stock has
$1.47

pictures, costing about $500,-

000,

determine

♦

vividly illustrated by Twentieth
The accompanying

table

from

Para-

overiiead
The

as

pended

cut theatres

inter¬

as

The

television

answer

Kettle,"

Pa

go on

his telephone line; So

over

the

one.

and

do those of Little
Orphan Annie of the comic strips,

his

to

"Ma

minably

f he prevail on any large scale will requne
^ Philosophy seems to be that years. The Robinson-Maxim fight
" qqU?i?
1952» waa broadcast

Century-Fox.

The

attached

featuring

whose adventures

feature movie sent

a

ȣ ffolflys'work costs^amount

de-

The Financial Picture

Act decision

box

a

Thursday, July 3, 1952

.

if 3 W

^ "°et T°Ugh" P°"Cy
Similiarly, the

f; D®1..® attacked.

is

Century-Fox

to

at-

which

to 20 cents from 37V2 cents.

thlm-

A

in

dividend.which had States.

increase his inventory folm
liberately
other
ehtdemand? are
face of declining ni
befog attacked

as

RKO, Loew's,

May 28,

on

rernained unchahgedforT^%-years,

M.'

.fed the Department of Justice to
direct that the exhibiting faciliWarner

upon a program

than^he wtimpictmTin- adoPted a''get tough'-policy with

other

cent.

was

unlikely source
Supreme Court.

an

^rterly

the

same

antici

showings

per

blow

second
such

hpen

foreign

dropped off by 50
A

the

release the sam

appears

the directors voted

1952>

rw

'SStEX
gross^usiness tha/rea- if* m'y om^nvT mVTaood
,aa
company in 1947 a go

wmnhiv

team

t'

k

duce36

ttaMbe

patei

to frdVe embarked

of retrenchment and

rLt'e

ln

and

f m

Twentietb

had

near-

be

trade

of

The MGM management

♦

be

could

countries

worry 'over

funded debt
been "° and the amount of outstanding
its prod- capital stock.

a

number

security

alleging overcapital-

are

with

rate that term maturities

in

•

Some

to

set

successful has Paramount been in

to

system.

analysts

a

coin

a

to him

been

device

a

television

a

set and have

now

star

continuing to jzation,

and

resulted

foreign

of

inflation

of

waves

compa-

in mak-

the

away

TnUld suff^es\ ther(Vhad
falling off in demand for
1S ^arrying
inventory
uncompleted

The
where

subsidiary

about to engage

is

to

will enable the set owned to drop

the leader of the industry and has
been noted for its development of

>

yet Hollywood is

Swk i»a«i HpHafprf6H^fllvwnnd'q Prodace Pictures at

5£?JSSliPnt ^Jntimism
Sh.
i„
S'

where

are

ing short films for TV.
Loew's (MGM)
has long

and untold numbers

owners

fr0m theatres.

iu

in

nies

television sets are in use throughout the United States, keeping

ieUige."

i

tached

versal

Reeling Again

did Louis XV nearly
earlier, "After us, the

J

Telemeter

Exceptions have been reported in
file actions of Columbia and Uni-

.

.

165,858

163,803

65,750

63,778
42,043

$39,495
*

96,618

$1,477
24,316

33,409

$30,265
*

57,703

Volume 176

Number 5130

.

.

The Commercial and Financial Chronicle

.

;

v
today's 108 television stations will
increase to
sets in

of

operation will grow

50,000,000.

It

to

there

and

2,000 and the number

today

fewer in

are

than

there

this class

will

be

in

the

Can anyone envision

future.

impact on all products that appeal
ytflder coverage will tP youth within the next few
of
producing a jjLars?
When the wartime babies
good feature film not incompatible start to come of age and enter
that this new,

the

make

with

costs

the

audience

be secured.

can

Another

might

local

to

■

advertisers

for

use

by) a single television station.
test

conducted

was

Angeles

where

area

actually shown by
TV stations for

in

One

the

Los

film

one

was

young ladies would permit
them to'sit home in front of the
television set rather than

going to

downtown

runs.

station paid different ren¬
dependent upon the newness

of

the

point

film,
is

the

important

market

that

not

was

but

saturation

reached

showings.

merit

the

burns

its

are

which

in

appalled
television

up

of continual

playing in front of the
cameras, their routines
and
developed over a period of

TV

acts

have become old-hat.

many years,

It is doubtful if either

public
week

the

long

can

after

-

they

the

or

withstand

the

barrenness

week

-

of

Significantly,

all

too,

the television

on

in

not

dropped
been

Peabody has
half - hour
Herb

its

for

which

it

had

paying $40,000.
The cover¬
was
inadequate
for
the

age

amount

The

Cluett,

show

of

money
being spent.
of the one-hour Milton

cost

Berle

approaching

A number of cancella¬

tions of the "good" TV shows and
the

substitution

of

inferior

an

product could well drive the

au¬

dience back to the theatre.
As regards

the quality of 19511952 television shows, Harriet Van
Horn, well-known columnist, has

commented, "The
advent of 20

struck

me

saw

and

the

Six

remaining

eight occupy varying strata in the
gray zone of mediocrity."

Many

television

viewers

have

commented that after the novelty
of their new sets wore
off, they
have found themselves

turning on
mainly to watch sport¬

their sets

ing events

or

outstanding

few of the week's

a

dramatic

presen¬

tations.
If
1920s

and

recalled
to

harks

one

back

to

the

late

early 1930s, it will be

that

radio

was

The

greatest

inventory

the years.

over

The

tremendous

a

Spectacle
that

nature

television.
est

Show

entertainment

cannot

the

severely cut movie
Telephone companies

almost

hours

oldtimers
100

may

grown

men

calls

no

7:00

of

Earth"

on

sales

way

of

and

between

7:15

p.m.;

recall as many as
standing about a

will breathe

lowbrow

some

ad

novel;

over

the

it may become as boring as
of the adventures

of

nauseum

alike

sigh of relief when
marginal picture eventually
finds its way to an unmourned
a

grave.

Devices

of

the

type of Phone-

Telemeter

and

strong out

onetime

popular

radio entertainers.

Certain

way,

why sell

limited
when

product to

your

of

number

the

sales

TV

outlets

is

cannot

and

many
years
away
be counted upon to

help

The

motion

the

stocks

3,000

have

of

of

movies

the

1930s.

is the
This

problem

drive-ins).

been

made

being

the

small

serious

most

of

their

support from the under-30 group,




time,

same

Sold

view of the declines in the price
movie

of

the

3,800

theatres

actually produce
of the industry's rev¬
enues, and the closing of 5,000 to
10,000 theatres will actually af¬
fect overall grosses by 10 per cent
less.

or

is

satisfied

stocks, the

percen¬

of

by Allen & Eo„

A

The

with

reasonable

cur¬

the

has weathered

worst is known,

was

oversubscribed

Jones, Holman Co. Adldfe
(Special to The Financial Chronicle)

offer good values at today's prices.

Hollywood

offering

and the books closed.

PORTLAND, Maine

eco¬

Wilson

has

joined

the air

Street.

-ESTABLISHED 1853-

REPORT
At the Close of

OF

CONDITION

Business, June 30, 1952
ASSETS

Cash in Vaults and Due from Banks
U. S. Government Securities

.

$249,130,399.80
*

.

.

....

.

.

.

.

.

383,366,867.10

.

.

State, Municipal and Public Securities

Future

for

number

A

likely to

the

of

Producers

producers

are

.

.

31,438,593.37

Federal Reserve Bank Stock

1,200,000.00

Other Securities

out of business, with
two of the weaker sisters
faltering
even

go

It

now.

is

probable, too,
that
the
movie
companies will
produce fewer features, but these
may be assured of bigger audi¬
The

ences.

recent

statement

Real Estate

849,940.00
144,425,037.68

Mortgages

Customers'Liability
48 Banking Houses

383,747.31

on

Acceptances

.

will produce no marginal
pictures, but will concentrate on
sure
things, seems long overdue,
and one wonders why it has taken
seems

long to reach what

inevitable decision.

an

When the dust from the current

squabble settles, Hollywood
down

come

(1)
to

The low-budget, art picture

be

shown in

the

"sure

Capital (750,000 Shares of $20 Par Value)

try,

two

as

years

many
ago.

sure

are
enjoyed by the
they show.
Advertising
publicizing a feature picture

average

downtown

movie

anywhere from $7,000
$40,000 for a Broadway open¬
ing, and this expense ordinarily
to

runs,

be

charged

gross.

the

sure

With

a

much lower

number of weeks.

picture may

against
its

one

longer

seater may amortize

a

$15,000,000.00

4,551,218.55

Taxes, Expenses, etc.

Acceptances Outstanding
Less: Held in Portfolio

.

.

$ 49,551,218.55

1,726,499.05

.

.

...

.

$ 3,978,339.48
1,829,557.89

.......

2,148,781.59

Deposits

768,889,837.90

(Includes

$37,910,113.55 U. S. Deposits)

$822,316,337.09

Memorandum:
U. S. Securities

pledged

to secure

deposits and for other

purposes as

required by law

$63,211,252.54
BOARD

ROBERT

A.

DRYSDALE

JOHN

OF

H.

DIRECTORS

PH1PPS

JOHN

Senior Partner

DUNHAM

B.

launching cost

over

Thus, the art
not be dead, but it

EDMUND Q. TROWBRIDGE

E.

SHEREU

BRUNSON

Chairman

S.

WALTER

McWILLIAM

Steamship Co.

NICHOLS

ALICE E. CRAWFORD

Chairman, Nichols EngineerResearch Corporation
HENRY A. PATTEN

MYRON BULL

President, A. II. Bull

McCUTCHEN

Consulting Engineer
C.

R.

President

Drysdale & Company

there

as

The

which

the

.

coun¬

today are operating prof¬
itably, and this is due to the long

in

.

~

30,000,000.00

Reserve for

seaters

runs

2,033,413.00

audience

470 of these in the

twice

or

7,598,805.60

,

'

Undivided Profits

seater"

capacity of 300 to 750, and today

were

.

Surplus

relaxation rather than excitement.

are

.

98,904.14

LIABILITIES

houses where the appeal will be to
a
mature audience which
seeks

an

.

$822,316,337.09

may

to

.

..........

of

company

so

.

1,790,629.09

.

Other Assets

Barney
Balaban,
President
of
Paramount, that from now on his

Hollywood

.

.

Accrued Income Receivable

WILLIAM

C.

HOLLOW AY

Estate Trustee

Chairman, W. R. Crate &
E.

Company

HERRICK

LOW

First Vice President

Senior Vice President

HERBERT
RALPH
Retired

PETERS, JR.

J.

STURSBERG

CHARLES W. NICHOLS, JR.

Treasurer, The Livingston
Worsted Mills, Inc.

The Corn Exchange Safe Deposit

President, Nichols Engineer¬
ing & Research Corporation

Company

60 of the 78 branches located throughout the

Member Federal Deposit Insurance

—

the

Ben B.
staff

of

Jones, Holman & Co., 57 Exchange C

Loans and Discounts
The

the

secondary offering of 45,000
tage of return on investment does
shares of Detroit Steel Corp. com¬
not appear bad.
mon stock
(par $1) was made on
The near future should
see
a
June 30 by Allen & Co., members
period of backing and filling in of the National Association of
movie stocks; over the short term
Security Dealers, Inc., at $15.87%
little price appreciation can be per share.
anticipated. For the investor who

it may sound at first

as

It has been estimated that

one

Detroit Steel Stock

in

Trust Company

inde¬

83 per cent

must

pictures draw

the

At

summer.

absorption of pictures, this is not
blush.

that

is

From the standpoint of

week's

tion

50

anywhere

pendents.

rollments

It is an old
axiom that youth likes to go out;
age likes to stay home.
The mo¬

from

cents

Century-Fox
is
re¬
organized into separate producing
and
operating
companies
this

Estimates

that

casualties

is already troubling the
colleges which have seen their en¬

declining.

25

Corn Exchange Bank

house costs

end

majority

but if

one,

dictum

a

from 5,000 to 10,000 of these will
close their doors
permanently over
the coming years, with the main

foresee

the

minority

Ibsen's

will

are
presently about 22,000
picture theatres in opera¬

and

birthrate

a

Fate of the Theatres

point that has been
generally overlooked by those who
low

to

income, and over the years,
capital appreciation, it would seem
that some of the movie companies

Investor Action

tion in the United States (includ¬

ing

resolved,
"forthright

always wrong, it is
cents of the United Paramount possible that taking the minority
Theatres dividend, and the antici¬ position may be a profitable line
for the patient investor to follow.
pated cut in total dividends when
reduction

rent

A

are

is

accepts

the

stations

soon

pictures

Another

Skiatron

eventually will bring movies onto

tion

be

the

Twentieth

good example here.

and

in

not

pictures to
television, plus the reluctance of
the film companies to give their
competitors a boost.
And, any¬

there

and

a

somehow

old

of

the operators of the Fresh
Air
Taxicab Company.
Television to¬
new

provides

should

sure,

culminated

have

cut by Loew's,

that

finger.

a

The "sure seater" has

day is

on

financial

recent

muddle through again.
The pres¬
ent incursions of the TV business

manner" the movie moguls would
have us believe.
This view, to be

to be borne out by

appear

Hollywood's

controversy

lifting

33

cleared, somehow Hollywood may

though

statement

panies

union difficulties now stand in the

YMCA or hotel lobby listening
intently to the latest adventure of

years

seen

The successful "Great¬

entertainment:

reported

be

of

this

of

nomic storms in the past, and now

larity of Amos 'n' Andy in those
years

epic star¬

would

truth

in the current motion picture-TV

early

attendance.

The

cynic has remarked that the
only sure-fire investment hedges

producing several
specialized but profitable types of

popu¬

will go on regardless of which side
wins.

or selling them could be tre¬
mendous without the movie com¬

ing

expected

bring about the downfall of the

movies.

its

pictures that has been

accumulated

the
Six

being first rate.

awful,

were

season

TV shows.

new

as

is

usual

so

is

program

$100,000.

hole

feature

It

reported that advertising can¬
cellations are troubling television

Shriner

Hollywood's

the

There

is

front.

is

executives.

an

the

Perhaps

The TV Competition Is No Utopia

serene

(3)

increase 20-fold.

comedy routines.

same

Pa Kettle vehicle to

stations, the earnings from simply
dusting off old film cans and rent¬

and

may

their best acts, jokes,
gestures, so that after a season

and

no

indicate

attention

way

movie

Hollywood's Greatest Ace-in-Hole

of

is

hit, but it
from Ma and

the value of $1 each.
If and when
these pictures are sold to the TV

con¬

considerations

top TV entertainers
at

all the way

Highbrow

ace

There

American Telephone & Telegraph
and Eastman Kodak. Their profits

sure

not yet be
demise.
Today's

Hollywood

approaching

the

immediate earnings.

other

that

of

for

the home television screen, but the
mass
use
of this sort of projec¬

an

films when the contemplated 2,000
TV stations come into operation.
that

vary

hit" picture

audience.

mass

definition
can

"sure

ture over the period of one
year.
Many of the hit pictures of former
years
are
being carried on the
books of the picture companies at

21

This would indicate

are

the

The

vision,

the

reshowings of good feature

There

(2)

industry practice has been to
amortize fully the cost of a pic¬

during

almost limitless audience for

tinual

A

boom of terrific
proportions could
easily develop during the 1960s.

Each
tals

movie.

different

seven

total of 21

a

the

a

aimed tat the mass audi¬

ence.

courting time, it is doubtful, ring a lissom actress whose chief troubles which
if the swains so desired, that
talent lies in an unlifted bosom.
in the dividend

even

possible development
the leasing of certain

be

films

their

that

coverage

cannot be

the

impossible

not

(33)

:

operates

vaults in

City of New York

Corporation

)

34

(34)
The Commercial and Financial Chronicle

.

Thursday, July 3, 1952

..

llllllllllllllllllllllllilllllll!IIIIIIIIIIIXIIIIIlllli.niil

Mutual Funds

Mutual Fund Notes

TOOK
By ROBERT R. RICH

ri

,

Prospectus
your

upon

request

investment deuler,

NATIONAL
RESEARCH

or

Investment

from
from

SECURITIES

llllllllllllllllllllllllilllllllllllllllllllllli

L&Jive

Companies

Two of the nation's

CORPORATION

company
in assets,

and

be

one-third of

have left Wall Street

while

other

New

as

billion dollars

a

York

investment
if

leaders

company

they

not

were

swore

they

would

immediate tax

granted

low tax

investment
area

company

which

groups,

both

moved

to

the

of New

Jersey, were escaping New York State's high
York City's
record-breaking taxes which were

taxes, and New
again doubled within the last several
days.

FUND
of

Group Securities, inc.

A Balanced fund
•4II

One

of

the

investment

company groups to leave, the
edged Hugh W. Long &
Company,, said that on the basis of
dividend and capital
gain income, their New York State and
taxes amounted to
$180,000 compared with total taxes of
$27,000 in New Jersey.

or

Distributors Group, Incorporated

Street, New York 5, N. Y.

only

our

choice to

in

believe

move

will

everyone

recognize

shareholders' income

our

ties,

our

responsibility in conserving
every way we possibly can."

in

The closed-end investment
company,
and its affiliate, U. S. &

U. S. & Foreign Securi¬

International Securities, with assets
$125 million, left New York about 10
days ago for Morristown,
Jersey, where they now occupy their own
buildings. C. Doug¬
las Dillon, President of
U. S. & Foreign
Securities, said that, with
the tax differential between
New Jersey and New York as one
substantial reason, the
company had planned to leave New York
as early as last winter.
"However," he said, "you can quote me
when I say that if we had
not planned last winter to
leave Wall
Street, we most
certainly would plan to leave now as a result of
of

New

,

New York City's increased
taxes.

STREET

Calvin buIlock

easier."

GENTLEMEN: At
me

a

no

obligation please send

prospectus on

Canadian Fund, Inc.

•

the

supervision

we are

breathing

its

Secretary-Treasurer,

minster
and

now

and

Diversified

Hugh W. Long & Co.

The investment company execu¬

tive,

whose

have

more

companies
than

California

real

said there

m to

on

ing.
are

Interest

an

either

The
on

was

Habas,
no

Funds,

In

building except for

work

of

T.

investments

Coast financial and

at

in

plans

for

rebuilding of
relationships and

economic

sound

with

"We

a

left

planning

peaceful

our

may
,

in

offer

/ou an

companies.

Our

j Guide enables
*

a

Program
ownership interest

as many as 100 or

Mutual

more

Income

Orient."

postwar

mostly

to

both

government

Asia

the

economic

chance

in

or

Europe

"The result has been
almost continuous state of un¬
on

and

chaos

and

plunder behind

As

the

Assets

share

nearest

S.

U.

ing and compared with total net
of

$23.11

a

Included

279.650

of

in

determining the

country's

ships

future

with

larger part

Asia

after

the

of

course

trade

relation¬
a

military

is established and some de¬
gree of political
stability has been
achieved in Korea and other trou¬
peace

economic

ductivity

and

leadership,

be

dramatized

to

can

the

of

certainly

rest

of

the

world

as a unique
example of what
the American system can accom¬

plish," he said.
average

produces

cash

California
income

than $15,000 per
year,

farm

farm

of

per

marketing

country.

revenue
in the
Total California agricul-

Wall

to

30

Bond

investment

the

such

principally of
more

as

cyclical

agricultural

possessing a higher degree
stability, such as the chemicals,

containers, glass

Y

TOTAL NET assets of The
Putnam Fund of

George
Boston, showed

increase during the past quar¬
ter
from $54,800,000 to a new
an

high of

over

asset

$57,000,000, and the

value

per

share

refurbishing and paint¬

and

the

are

order

George Putnam, Chairman
Trustees, reported that

the

Fund

increased

common

investment

stocks slightly

our

at

offices

5, N. Y.

Parker

Manhattan Bond Fund, Inc.
and

Company

incorporated

on

third floor.

1952

Telephone: LLizabeth

pleased

4-1770

departments, he said,

the second and the

sales

4-

\

The

company reported
was

handled with¬

to announce that

from

63

offices

Wall Street, New York 5, N. Y.

r
to 51

has become associated with

our

us

Parker Road

Elizabeth 5, New Jersey

Executive Vice President

your

name

and address.

"*

Mutual Fund
Department

Kidder, Peabody & Co.
Founded 1865

Members Neva York Stock

Uptown Office
CF-5

10 E. 45th

Exchange
St., N.Y. 17

^Urray Rill 2-7190




Fundamental Investors, Inc.

KING MERRITT &
CO., INC.
270 PARK AVENUE, NEW
YORK 17, N. Y.
Telephone: MUrray Hill 8-8840
OFFICES

FROM

COAST

TO

COAST

Investors Management Fund, Inc.

Investors Management Company
June 50,

1952

Telephone: ELizabeth

of
the
in

during the

Diversified Funds, Inc.

June 50,

rose

from $18.80 to $19.09.

Elizabeth 3, New Jersey

Fund,

with

last.

groups
of

Westminster

HAROLD J. RYAN

as

compared
Nov.

machinery, automotive accessories,
building supplies, coal, industrial
machinery,
railroad
equipment
and steel; and increases in those

Announcing the removal of

Planning

in

groups,

Street, New York

Hugh W. Long

$2,-"

$2,247,779

Fund

the necessary

the first floor,! the officers

are

as

on

consisted

Announcing the removal of
48

was

of

importance to be done

research, accounting

We

with

in the report that

reductions

more

highest

assets

changes during the past six months

net

"The

net

Hugh Bullock, President, points

pro¬

diversification

enterprise, California

assets

82.53%

natural gas, paper
and utilities.

ble spots.
"In

total

appreciation

compared

net

about

stock

a

to

out-,;

Nov. 30, 1951.
Holdings of common stocks on
May 31, 1952 amounted to 84.08%

Coast

entitled to

equal

538,806

on

on

have

are

in

unrealized

of the Orient, he em¬
phasized, the people of the Pacific

neighbors

$12,451.6112,
share

standing shares six months earlier.

out

economic

equal to $23.62 a
577,391 shares outstand¬

assets

Commu¬

it."

report just issued.

were

on

this side of the Iron

us

suited to your needs. For
your copy
and our Free Mutual Fund
booklet,
mail this advertisement with

and

pointed out.
an

different

to present you with
Fund
investment best

'to

during World War II," Crabb

West¬

100 Stocks
A Mutual Fund

business

leaders^ "should be consulted fully

any

pany's

semi-annual

in

were-

high for the end
fiscal period in the com¬
history, according to the

F.

any

the usual amount Of
business this week, which
out confusion.

in Over

Bullock

May 31, 1952

even

Bond

one,

Manhattan

Vice-President of Manhattan

on

$81,000,000

estate

headquartered. In the other, at 31
Investors, Investors Management Fund

alteration

department is located

currently

mortgage
alone;' stressed that

Investors Management
Company are located.
In New
York,
the former
group was at 48 Wall Street and the
latter was at
63 Wall Street.
J.

of

a new

and

Eugene

REPORTS

assets

are

Parker Road, Fundamental

City

NET

last days of last week
and the

occupies two former mansions.

Parker,

OPEN-END
TOTAL

$13,638,379,

Chalker, Hugh W. Long & Co. completed its
moving operation to
company

entire nation,
Chairman and

of

from
of

Elizabeth, New Jersey, in the three

Nome.

Address.

is,

'

Under

JNEW YORK

As it

the

on

Curtain

but it is also our
duty.
''Although we recognize the problem New York
City now has
raising revenue for its various
municipal departments, we

mar¬

keting income."

Fund, Ltd.

nist

responsibility to our shareholders throughout the 48 States.'
When—at the cost of
very little, if any, inconvenience to our com¬
pany operations and with no decrease in
the efficiency of service
to our nation-wide
network of- investment
dealers, we find we can
save in city and state
taxes
substantially over $100,000 a year, it is
not

is nearly

revenue

President of Investors Diversified

1951

—our

marketing

8% of the nation's total farm

Services, said in Los Angeles Tues¬
day.
*"•

gilt-

city
only

of

era

tural

only for the Pacific

also

Crabb,

certainty

Hugh W. Long, who heads the open-end
investment company
cluster of Fundamental
Investors, Manhattan Bond Fund and Di¬
versified Funds, with assets
of $235 million, in
Commenting to
"The Chronicle" on his
company's move to Elizabeth, N. J.,
said,
"In moving the
headquarters of Hugh W. Long &
Company from.
Wall Street to
Elizabeth, N. J., we had only one motive in mind

prospectus on request

E.

trade

New York City,
acting upon permissive State legislation which
amended Article 2B of the General
City Law, recently raised its
gross receipts tax on financial businesses
from two-fifths of one
percent to four-fifths of one
percent—800% greater than th"e tax
rate of early 1946 and
400%'greater than taxes now paid by ordi¬
nary businesses in New York
City.

not

but

Earl

West

The

ADMINISTERED

Coast

unprecedented

an

progress

City's in¬

financial businesses proved a last
straw,

on

by Christmas

gone

over

relief.

THE FULLY

63 Wall

produce

largest and best-known investment

syndicates, with

creased taxes

from your investment dealer

help

NewYorkasCit) Tax Proves Last Straw

&

120 BROADWAY, NEW YORK
5, N. Y.

A

REAL "ECONOMIC PEACE" with
free
Asiatic nations could

4-1122

ail

Number 5130

Volume 176

.

.

as

'

ji

'

uruwMMj Mkitfrtw

MlihWl

l

ktuKKiuuutNLiM

T

The Commercial and
Financial Chronicle

.

(35)
quarter from 60% of the total
March 31, to

largest

62%

in insurance

were

investment

in

June 30. The

on

stock

common

purchases

stocks, with the

this

field

ing from $1,140,000 to
New

additions

stock

section

on

the

to

of

increas¬

$2,250,000.

the

common

Fund

were

Aetna Life Insurance

Stores

can

Light

Co., Ameri¬
Co., Florida Power &

Corp.,

and

Illinois

Central

R.K. Co.
As

of

June

30,

the

10

largest

common

stock investments of The

Putnam

Fund

included

four

oils

(Pure, Standard of N/J., Con¬
tinental, and Cities Service), three
railroads (Seaboard, Atchison and
Rock
Island),
one
chemical
(Union
Carbide), one building
company (National

public

utility

Lead) and

(General

one

Public

Utilities).
IN

A

COVERING

the

six

months ending May 31, 1952,
Group Securities, which embraces
5
general mutual funds and 17
specialized industry funds, shows
net

assets

of

$56,338,000,

Shares outstanding totaled 8,747,366, compared with 9,225,847 last
November.
The

company
reported
that
of the decline in assets was

in Steel

Shares, about 50%

repre¬

senting

market decline and the
balance profit-taking
by share¬

holders.
The
The

Common

Stock

and

Securities'

general funds
registered asset gains for the pe¬
riod, while 15 of the group's 22
funds

showed

net

a

decline

in

assets.

The

Common

Stock

Fund

$3,577,$2,526,620 last

718 compared with

November.

Net

$8.40

was

value

asset

compared

$8.30 at the fiscal year-end.

ment and

Total net assets

The

on

share

May 31,

were

$7.89

the period

were

the

period

as

of

one

time of considerable tension
domestic

fairs.

and

ported

the

herewith

achieved

have

without

I

of

type

of

demand

shares

for

from

the

people

Company has made available
"Group Securities, Inc. Periodic

Investment Plan" under which

an

investor may arrange through his
investment dealer to purchase ad¬
shares

at

convenient

in¬

tervals.
NET

assets

of

Knicker¬

bocker Fund at June 30, 1952 were

$16,405,960 compared with $15,067,429 a year ago, Karl D. Pettit,
reported.
June 30,

on

The

1952

asset

$6.02

was

share.
PERSONAL
WALN

National

HARE

will

Securities

as

Vice

a

Hare

join

&

has

been

in

mu¬

business for the past 15
and

Di¬

and Institu¬

will

He

make

his

the home office,
Broadway, New York City.

120

released

1952,

Street, Boston

PROSPECTUSES

FUND

of

Street,

rently

is

Boston,

dated June

17,

on

7,

fund's

1952.

that

from

SHARES

its

is

53

cur¬

prospectus

This new prospectus,
information regarding

Selected

new

of

19,

Mass.

dealers

contains

the

available

9,

for

June

on

prospectus

AMERICAN

releasing

page

Boston

new

a

Prospectus

State

SELECTED

Investment

Plan

which

enables

lected

American

basis.

Prospectus is available without obli¬
from
135 South La Salle Street,

gation

Chicago

BOND

MUTUAL, Inc.

a

per

shareholders

1952

to

June

30,

of

share payable

quarterly
one-half

July 21,

of record

as

of

1952.

H. K.

purchase

on

Se¬

systematic

a

I

know

some

of

say

we

business

as

a

selling is just as
game as golf, and in

Boston

June

on

most

bunkers,

It is

results

the

and

under

conceiv¬

every

He must have the

and the "know how" to

cover

from mistakes he is

to

make.

this much

Is

re¬

bound

different

different in selling.

which

the

dub

of

out

sale

a

salesman

the

The salesman has his lifetime

his

golf

as

Changing busi¬

course.

conditions

ness

his

are

hazards.

need for various "shots."

sions

his

are

wind

Depres¬
rain.

and

Vance,

Sanders & Company,

Boston.

This

hard to
are

of

question

Success

should

Making the Sale
In

making

think

the

sale I like to
good fly-fisherman.

the

of

The stream is his territory and the

June

26

covering

GENERAL
filed

Boston,

registration

a

500,000

Fund,

on

statement

shares

Underwriter:

of $1 par cap'tal
Vance, Sanders & Co,

NATIONAL SECURITIES &
on

June

covering

26

filed

a

Research

registration

shares

40,000

of

Trust

DE VEGH Mutual Fund

Mutual

Fund.

FELL,

Minneapolis, Minnesota

Corp.

statement

First

to work

He

on

particular day.

any

approaches

the

pool

studies

the

wind

not

be

top golfers because they have

selects

he

he

gently

filed
"nn

a

"00

registration
shares of

statement

capital stock.

June

25

covering
No

under¬

writer.

finds

one

trout

in

style which

a

They

is almost

have

learned

the various shots necessary to get
of bad or unusual lies.
They

it

casts

care¬

STOCK F01YD

PROSPECTUSES OF THESE TWO INVESTMENT FUNDS MAT
FROM

YOUR

INVESTMENT 'DEALER

the

on

water.

a

and

keeps

doing
which

the

this

until he
appeals to the

pool

is

he

fishing.
When the trout strikes, the good
fisherman

doesn't

it

drag

in

and

born

with

practiced

& HOWARD

If

on

the

methods

styles

and

rainy

or windy day they
round, did they blame
it on conditions and
say it couldn't
be done?
Of course they didn't!
a

Instead

they found out how to
play in the wind and the rain.
Then

had

they

practiced

learned

until

what

they

they are
any condi¬

now

overcome

problem which may come
That's why they are good.

or

practices

and
the

on

blames
course

Can't

hasn't
when

time for

any

he does

Montgomery Street

SAN FRANCISCO

'bad

playing
hear him

on

every¬

The

dub

lesson, so
practice he is just
a

increasing his ability to do every¬
thing wrong.
That's why he is a
Haven't you
(seen

in the

man

Take

selling

the

any

The

game

Sub¬
for Hogan and
will see that things

names

about the

life.

same

'game?

profession or
arid pick out the top men.

same

in all walks of

successful

man

is

sue-,

cessful because of hard

work and

intelligent

Like

good

thinking.

golfer,

shot

he

when

he

thing

a

or

finds

the

hand,

shot

he

"What

says,

other

misses

333

his

or

you

blaming his poor game
thing b u t
himself?

the

'•




or

messed up a

until

BOSTON

BOSTON

ability

puts it in his creel with the
pleasure one gets from a job well
done.

He

and

little

if

prac¬

thinking.

any

hasn't

studied conditions, so
just blunders up to any pool and
starts to lash his line out with the

of
"snagging"
something.
(He usually gets an old shoe.)
He

doesn't know whether he

is fish¬

ing for trout, salmon

catfish.

He is

results.

poor

in

just fishing, so

the

Can't

or

usual gets

as

hear him

you

(salesmeeting)

camp

that

he

on

misses
did

answer.

never

I

a

do

asking this

when

anybody.

the

the

On

dub

asks any¬

He tells what

Fly-fishing
Can't

you

to

pool,

wrong to

all who will listen.

That's why he is and always will
be

a

dub.

a

bushes

thought on
salesmanship and reduce our
handicaps as salesman, as golfers
do in

golf.

Duncan Gray Elected

By B, J. Van Ingen Go.
Duncan

elected
oi

also

has

its

dubs.

one blundering up
crashing through the

see

making

enough

noise

to

every trout in the neighbor¬
hood?
Can't you see him
grab

C.

J.

rs.

Ingen
1' qrn

Co.

S+

^

e e

t.

York

ic

City,

was

announced
B.

been

Wil-

57

New

has

Vice-President

Van

&

Inc.,

Gray

Assistant

by

Van

J.

Presi¬

Ingen,
de-*

Mr.

Gray

has been

tne

asso¬

with

nrm

1934

since

has

and

been

a

J",

.«

o V

mem-

f

A

<Q

C. Gray

Duncan

scare

the

first fly he comes to, tie it
carelessly and then lash it down

on

the

ping

water

if he

whip¬
Chinese Communist? Can't

a

as

were

hear him cussing the weather

you

the stream, the fish and his luck?
Can't
you
hear his excuses in

that

camp

that

the

that

when

the

the

fault

may be
fisherman

good

trades pools with him the next
day
with
the identical
result,
llhat's why he will always be a

fisherman.

dub

returned

when

1945

active

from

duty

he
a

as

navigator with the 8th Air Force.
Last

he

week

elected Secre¬

was

tary of The Municipal Forum of
fiscal

the

for

York

New

year

1952-53.

night

convinced

his

when he finds
fisherman
has
limit?
He isn't even

dicate
department since

syn

good

his

caught

Hugh W. Long Go.
Offices Now in N. J.
Diversfied Funds,
tan

Bond

Fund,

W.

Long

and

Inc., Manhat¬
and Hugh

Inc.,

Company,

Incor¬

porated announce the removal of
their

The Salesman's Approach

Why is this much different from
the game of selling?
As I said
above, for
his

his

stream the salesman

a

territory.

has the

area

work.

Like

salesman

For

pool he

a

selected for his day's
the good fisherman,

before he makes
tions

move

a

studies

the good

business

(weather

plans

condi¬

to

offices

Westminster

wind!

and

"and

Wall Street, New
At

the

same

York.
Fundamental

time

Investors, Inc., Investors Manage¬
ment
Fund, Inc., and Investors
Company

Management
removal
Parker

their

of

Road,

When

he figures out which fly to
try—his flies being the particular
appeal he believes will waken the
prospect's interest.
If the man is

pect)

elderly
the

and

retired,

problems

income

and

him.

he

discusses

those who

of

how much he

If

this

does

need

can

not

do

get a

strike, he changes flies and talks
about
has

the

been

tax

situation and

done

to

reduce

what
taxes

to

31

Elizabeth, 3, N. J.

from 63 Wall Street,

New

announce

offices

New York.

,

approach accordingly.
he reaches the pool (pros¬

at

Parker, Elizabeth 3, N. J. from 48

his

for
was

two in

or

your

ciated

which had made others successful.

OR

INCORPORATED

24 Federal Street

this

They learned from
top golfers.
They looked
for advice, and then tried out and

wrong?" and keeps

EATON

ticing

he

Ther

knowledge.

weren't

Snead and you

BALANCED FILM)

the

"Dub's" Lament

who hasn't done much

man,

move.

a

which

by
brute strength, but plays it skill¬
fully until he brings it to the net

cut

are

EATOIV &• HOWARD

The

and

fly, but if he doesn't
strike he changes to another

perfected

stitute their

EATOIV & HOWARD

when

Let's now follow the dub sales¬

He tries this

get

automatic.

fly

a

believes will be attractive.

studied the game, worked hard at
it until by long practice they have

dub.
on

is

me

pool the part of it he has decided

Next,

Hogan and Snead

answer.

conditions.
CANADA

to

so, because there's a dub
almost every crowd.
Let's all put some

weather before he makes
Method

score

'•writer:

which

order is signed.

It

No card."

up.

fully,

In golf there is also the chronic

the

gently into clear
finally into the landing

may

window.

dub who won't take advice, never

wiih

net,

by main strength.

him

hope

from selling?

easy.

and it looks impos-

no

right

the

Securi¬

statement

the rocks

guides

water and

ability to

nerve

Sam

or

looks

game

salesman makes

good

easily

Hogan

the

dub

a

s:ble.

time in
will in golf.

your

Ben

and

Follow
The

of

as you

Follow
Snead

filed

26

He

,

up.

of

carefully and skill¬
He doesn't try to drag him

night?
Can't you hear him blam¬
take a niblick to get out of
ing the stream and the pool (ter¬
much of a
some situations, but the good sales¬
the bait
many ways
like it.
There's a man has that shot, too. A seven ritory),
(leads)
and
/ight and a wrong way to play it. on a hole doesn't discourage a everything but himself? The dufc
salesman is no different from the
If you do it well
by using the good golfer, nor does a period of
right technique and tools, you get poor sales discourage a real sales¬ dub golfer or the dub fisherman.
He won't learn to do his
a
job right,
good score, as you do in golf. man.
Both just put on a little
so will
If you are careless and
always remain a dub.
sloppy, use extra "steam" and finish with a
Did I hear some man
the wrong tools and won't take
say, "So
good score, while on the score¬
advice
from
the
"pro," you'll board the dub has written "Picked my prospects are fish?" Probably
game, but to me

tion

Bradford, President

OBTAINED

do

Exchange
Commission
covering
shares
of
$1
par
capital
stock.

stock.

MUTUAL, INC.

BE

it

who

C4

prospect

The good golfer must

clubs

able difficulty.

the

about

men

people

speak

equipped to

and

Investors

on

FUND

10,000

a

and

to

Shares

REGISTRATIONS

registration

ties

Notice of 47th Consecutive Dividend.

investors

Illinois.

3,

SEC

cents

with

the

other

City.

date.

Directors

think

to

it

To

in

game

It must be

Different types of people create a

shouldn't

on

headquarters at

Putnam Fund Dismreoroto, Iwc

declared

discuss

and

the

the

Vice-President

as

NEW

seventeen

I don't

salesmanship.

greatest

love

I

Research

President

-

rector of Hare's Ltd.,

FORMULA

of

you

Why is it?

PROGRESS

July 1, 1952, Henry J. Simonson,
Jr., President, announced Tuesday.

&o4ton

of

the

kicks

FUND

has

it's

world.

spend

TOTAL

tional Research Ltd., both of New

Board

selling and

me

infla¬

the

York

Mutual

of

been

who set aside money for some fu¬
ture need.
To meehthis demand

Mr.

have

selling our Investment Ad¬
visory Service, but just the game

departing from

awareness

company's

E.

conditions.

get

time

the dan¬

played under all kinds of weather

we
our

it well.

Increased

per

much

dis¬

u

the game changes.! Like
fisherman, the salesman plays

over

over

kind of terrain.

every

mean

re¬

tion, the report states, has created

value

how

think about "selling."

men

quired."

new

wonder

a

conservative positions which
the management felt the times re¬

a

been sent

Organiza¬

column this week.—J. D.

af¬

results

has

this

seriously.
A
golf course is built over rolling
country with lakes, woods and

as

Sales

Babson

Through his courtesy
privileged to use it in

are

the

years

dividend

tion.

both

international

However,

the

to

" 'ner¬

prosperity', for it has been

Hills, Mass.,

bulletin which

a

ton, Chairman, and Herbert R.
Anderson, President,
character¬

PUTNAM

The

Inc., Wellesley

rise

No

to

strike.

fully.
Moral for Salesman

Think

swings

being all in cash and so on
flash of interest shows he's

a

a

his

Selling

following has been writ¬

ten by Mr. E. O.
Handy, Sales
Manager of
Babson's
Reports

included Electrical

The report, by Kenneth S. Gas¬

tual fund

50 State

The Game of
The

he

inflation and

Now
the

compared

Shares, Petroleum
Shares, Tobacco Shares and Util¬
ity Shares.

vous

got

By JOHN DUTTON

Equipment

ized

of

gers of
until

Among specialized industry
funds, those showing an asset gain
for

Then

cussion

with $7.87 November last.

Corp.

£7/e

through "capital gains."
yet?

$6,610,635 compared with $6,195,151 on Nov.
30, 1951. Net assets
per

35

was

currently in a con¬
position, with 61% of its
in
cash, U. S. Govern¬
high grade utility bonds.

holdings

per

with

Fund

be

President,

showed total net assets of

share

to

ditional

Fund

Fully Administered Fund of

Group

stated

servative

a

decline from $60,472,277 on Nov.
30, 1951, the end of its fiscal year.

most

Administered

in

REPORT

total

Fully

*

*

White, Weld Branch

HAGERSTOWN, Md. — White,
Weld & Co., members of the New
York

Stock

Exchange

and

other

principal security and commodity
exchanges throughout the country,
announce
the opening of a new
branch office in Hagerstown, Md.
The

new

office, under

the man¬

agement of Carl S. Wittmer, Jr.,
is located at 41 Summit Avenue.

The Commercial and Financial Chronicle

(36)

38

..

Thursday, July 3, 1952

.

0

Continued

from

is

A Review of

By WILLIAM J. McKAY
In

dian

corporation
that

revealed

it

earnings,

taken

have

taxes

is

big a bite out of
gains in income as in the United
States. According to a statistical
summary of the Bank of Canada,
earnings of Canadian corporations,
when lumped together, were mod¬
estly improved in 1951, but it
was necessary for the average cor¬
poration
to
increase
operating
profit $6 to net an extra $1 largely
relatively

bill

as

the

because

70

about

took

in

increase

the

tax

out

cents

additional charge for

ation absorbed

depreci¬

further 12 cents.

a

The result has been that

a

number

of Canadian companies, because of
heavier

taxes

and

charges, reported

a

depreciation

of Canadian cor¬

taxes

revealed

was

re¬

Presidential

the

of Toronto/ in

Bank

of the

ager

his

of

meeting

Canadian

the

Bankers Association at

Speaking

Quebec.

before

Address

Montebello,

of the impact
accompanied

of low interest rates

taxes and operating
banking business, Mr.

higher

by

costs in the

"We all know

that, unlike other

countries, there has been
increase

rates

in

in

but

face

gen¬

no

banking interest
for

many

years,

of

steadily rising
do not know how long

costs, we
this

in

Canada

the

Then

in

of

pointing

costs—staff

out that

items

three

of

the

banking

salaries, taxes and in¬
savings deposits—had

and

panying this, however,

to $506,-

000,000 from $335,000,000,
of approximately

ciation

jump

a

50%, and depre¬

climbed

to

from $213,000,000.

other

rise

was a

in income tax provision

$243,000,000

Investment and

non-operating

income

to¬

taled

$54,000,000, against $52,000,-

000.

Bond

interest

payable

was

more

on

than

doubled

between

1944

1951," Mr. Gillett continued:
"In most businesses, when costs
go up, selling prices follow, but
that has not been true

recently of

interest rates in Canada.
rates have

Lending

in the United
in Britain and in several

States,

gone up

other countries.

We have tried to

keep them from going up in Can¬
ada, but, frankly,"T do not know
how much

longer

we can

succeed."

Mr. Gillett also pointed out

that,
contrary to widespread belief, in¬
come

ers

returns

to

not

were

bank

high.

stockhold¬

"Unreal and

$3,000,000 higher at $41,000,000.

ambiguous" estimates of 14% and

After all charges there remained
for the companies enumerated a

16% dividends
the

nominal

calculated

were

rationing

than

at

to

date.

In

case

in 1950 and early

Business

much

a

rate

average

spent at some later

force, /the

in

are

accumulate

difficult to finance than

more

and

expenditures

on

has

tion

of residential construc¬
terrific during the

perioflf' A lag set in in

1949

which

eral

was

in
,

been

postwar

action

cut short by

was

in

reducing

Fed¬
cost

the

of

borrowing for home construc¬
tion.
The
Korean
development

1951.

for new

be plant and equipment have been at
de¬ an unprecedented rate since mid-

All
however,
that the peak in private residen¬
provided
the

of

additional spur.

an

figures indicate,

population, 1950. The degree to which indus¬ tial construction has been attained.
whole, tends to spend virtu¬ trial plants have been expanded Housing
markets
are
growing
ally all its current income, to eat has been touched upon in earlier more competitive, prices of older
into its savings, and to borrow paragraphs of this study. The sums houses
are
softening
in
many
against future earning power. The expended by business for plant areas and, although 1952 should
expansion since the close of the see a relatively high level of hous¬
same
holds
true
in
periods of
pression
as

periods,

the

a

the

past

and

also

to

to

figure

a

tive facilities at the close

The

first

of plant

period

of 1945.
expan¬

in this regard are those

number

as

to

which show
the

of

wave

cur¬

needs.

fully as large
in immediately

,

pansion in the past two years in
mortgage loans and con¬

than

home

giving the
private housing starts

of

sion had spent its force in 1949 but

proportions
set
Following such ab¬
after Korea.
The present annual
periods, there are always
rate of such expenditures is in ex¬
compensatory swings to the other
cess of $24 billion.
This probably
side of the normal or average.
represents something approximat¬
The present rate of consumption
ing a peak and, from this point
expenditures
($209.6 billion per
forward, expansion will be at a
year) is a little below the usual
considerably lower rate. The rea¬
expectancy in that the "savings"
sons are, first, that nearly threefigure is now 6.93% of disposable
fourths of all projected increase
income in contrast with a 5.13%
has
already been attained and,
average for prosperous years.
If,
in the months ahead, the savings second, that the rate of business
profits is in a definite decline.
figure should recede to normal,
the spending total might rise to a Capital expenditures by business
correlate closely with the total of
figure of $214.7 billion. It would
corporation profits after taxes. It
not
be
surprising,
however,
if
there were some delay in closing is, therefore, quite possible that,
the gap since a much larger than by next spring, the level of capital
expenditures will have shrunk by
average part of the "savings" fig¬
as
much as $5 billion per year.
ure
now
constitutes debt reduc¬
Capital outlays are the regenera¬
tion rather than the building up of
tive factor in our economy and a
liquid savings. This fact is mani¬
fest when one notes the huge ex¬ change of this magnitude is bound
to have considerably more effect
rent

ing construction, it is not at all
likely to exceed that of 1951. Per¬
haps, the most conclusive figures

another

borrow

well

as

amounted

only about 12% below the total
undepreciated value of all produc¬

shortages, restrictions and
higher prices, the people
(and
businesses as well) tend to spend
current earnings and savings from
satisfy anticipated

have

war

scare-buying when, in fear of fu¬

the

sums

Business

value of shares.

par

The pace

normal

continue."

can

Inflationary Forces

ture

Gillett stated:

eral

when

restrictions

greater

G.

Leonard

by

terest

operating profit of 424 Cana¬
dian corporations last year
amounted to $1,305,000,000, which
represents a 22% increase over
1950 for the biggest improvement
of this postwar period. Accom¬

other

Vice-President and General Man¬

1951, the
Bank of Canada reports the total
for

war-time,
savings

net

.,

higher operating

virtually all quarters.

ing to about 5% of disposable in¬ high level of personal indebted¬
come. Discrepancies arise only in ness now prevailing, such antici¬
buying would be much
periods
of economic stress.
In patory

Gillett,

total

earnings

poration

'

and

cently

decrease in net

earnings last year.
In its summary

costs

of

effect

The

of

each additional dollar earned while
an

Canadian Bank Rates Discussed

studying the trend of Cana¬

there

of goods on hand

excess

an

that

indicates

downtrend

a

Canadian Securities

in

fact that commodity prices are

7

page

would

suggest.

inventories have been

1950.

steady decline since
of a peak in late

Hence, it is safe to assume
economy will receive.no

the

that

further
in

a

attainment

stimulus

this

sector

tinuation

of

a

increases

from

that

and

the

con¬

steady decline is

a

likely development in spite

more

of recent liberalization of borrow¬

ing

terms.

In

the rate of

then,

summary,

Federal

probably

expenditures

will reach its peak within the next
six months.

indications

At the

point to

increase in
decline

in

no

consumer

business

time, all
significant

same

spending,

a

expenditures

for

expansion, and a decline in the
rate of residential construction. If
these

projections

are
correct, it
highly unlikely,
by
the
token, that the Federal Re¬

seems
same

Board

serve

Production

Index

will

of

Industrial

much beyond
figure of 222 already at¬

the peak

go

tained.

The present rate is in the
neighborhood of 214 due to strikes

in the

steel and oil industry. We
sumer
credit
as
set
forth
in
at an excessively high level for
Actually, 1951 statistics showed an Table 1. That
are, in all probability, sitting at,
part of the war
almost a year and no significant
ly better than 7% more than the exceedingly modest return aver¬
or very close to, the peak of ac¬
spending in the scare period which
reduction
in their size
net profit of $531,000,000 for 1950.
has oc¬
aging between 4y2 and 4%% on was based
tivity to be expected from the re¬
upon borrowed money
curred.
I have made reference to
Sharing in this overall increase, shareholders' equity investment, has now become a
armament
period.
The rate of
charge against
the fact that inventories increased
stockholders
of
these
Canadian including the premium paid to current income
expenditures by government now
and, as such, is
by over $16 billion during the will be the
companies last year received in buy most bank stock and the prof¬ defined as
principal determinant
savings. Thus, it cannot
dividends $328,000,000, compared its put back in the business as
year following Korea, reaching a of
all-over
contribute
to
activity
and,
since
any
expansion in
total of $70.7 billion in
with $322,000,000 in 1950.
rest or reserve funds.
August, these are not scheduled to rise by
personal consumption but rather
1951.
The latest figure is $69.9 a
In breaking down the study into
Mr.
Gillett,
in
his
figure which is likely to exceed
address, will be a deterrent until the in¬
billion. Inasmuch as we have pro¬ the
individual industries, the Bank of stressed tremendous
declines in business and per¬
expansion of debtedness is reduced to a normal
net profit of

$569,000,000,

or

slight¬

Canada's figures show that

ings

earn¬

lower for 14 of the 29

were

listed, with 12 groups re¬
cording increases and three show¬
ing
no
change vin
earnings.
Rubber, pulp and paper, nongroups

ferrous

metals,
petroleum
and
telephone companies were among

the firms reporting the most head¬
way

year.

most

profitwise

Earnings
severe

during

the

reductions

in the

past
were

textile, machin¬

ery, retail trade and

service store

catagories.

staff and

the

operating facilities which level.

Canadian

banks

had

vide, in order to keep

up

to

pro¬

with the

demands for banking services from

gest

personal

no

significant

consumption

tures need be expected

rise

from

veloped
years,

of

In

areas.

the

past

10

he pointed out, the number

Canadian

ployees

chartered

had

bank

Even so, with the

and

Mrs.

Morris

David

&

Co.,

Morris

52

Air

Liner, "President,"
for an extended
trip ot England,
Scotland, Norway, Sweden, Den¬

Helsinki.

They

will

return

to

New York in August.

Ken Howard Welcomes

June 2, "D. J." Howard—for Don¬

ald James, not Dow-Jones.

1-1043,

With Waddell & Reed
(Special to The Financial Chronicle)

Waddell

A.

&

HILLS,

Griese

is

the
as

rearmament

program

expansion is concerned.

One may further infer that
in

a

"guns and butter"

we are

economy

April 1, '51

Oct. 1,'51

April 1, '52

319.5

329.5

339.7

(units)

195

222

218

220

J units)

231

277

271

282

(units)

181

199

192

183

(units)

145

158

167

164

Spending

(per year—billions of $)

16.8

28.0

42.0

47.2

Rate of Business Spending—new
Rate of Residential Construction

plants (peryr.—billions of $)
(per year—billions of $)

16.0

19.4

23.3

24.2

17.8

18.8

22.9

17.7

(peryr.—billions of $)
(annual rate—billions of $)
(annual rate—billions of $)

184.2

208.8

204.0

209.6

214.5

245.5

253.6

195.6

216.5

224.9

..(billions of $)

18.6

23.6

21.5

Wholesalers Sales

(billions of $)

5.6

8.8

10.1

Retail Sales

(billions of $)

11.3

12.9

12.4

12.1

Sales Index___(adjusted—billions of $)

99.5

105.0

107.0

105.0

21.3

Durable

Nondurable

Mineral Production
of Govt.

Rate

Production

Goods

Index

Index

Goods

Defense

of Personal

Index
Index

Consumption Expend,

Income

Disposable
Manufacturers S'aTes

Income

FRB Department Store

Manufacturers New Orders

,

257.8
■

226.3
22.9

8.04

(billions of $)

19,1

28.5

Manufacturers Unfilled Orders

(billions of $)

23.4

55.3

62.8

63.2

Manufacturers Inventories

(billions of $)

2.9.5

35.9

40.6

42.7

:

*

Inventories

22.9

(billions of $)

Money Supply (billions of $)—
Currency plus deposits

7.3

10.1

10.1

9.9

(billions of $)

-

Inventories

14.4

20.7

18.9

18.7

192.2

i

Calif.—

now

with

172.4

183.7

187.3

13.3

19.2

20.7

21.1

42.6

48.8

52.6

*55.1

17.07

19.4

19.4

19.6

Consumer Credit

Outstanding

—

Commodity Prices—
Spot Commodity (Moody)
Dow

Jones

Farm

.

=

100

457.4

437.5

183.C-3

178.43

247

311

291

288

183.3

176.7

174.8

185.7

205.8

207.4

208.8

170.2

184.5

186.6

188.0

223.46

Jones Industrial Stock Average..
Dow Jones Rail Stock
Average..

246.63

272.56

267.22

54.72

Dow

♦Estimated

522.1
207.36

156.8

Dow

Jones Utility Stock Average
Moody Yield 120 Domestic Bonds

400.2
147.83

—

Futures.

Product, 1910-1914
Wholesale, 192-3 = 100...
Retail, 1935-1939 = 100
Cost of Living BLS Index

Reed, Inc., 8943 Wil-

shire Boulevard.

of

far

have

objec¬

Home Mortgage Loans

New York 5, N.Y.

BEVERLY

tive
so

we

the

Commercial Loans (101 banks).

Kenneth
J.
Howard, resident
partner for J. A. Hogle & Co., 50
Broadway, New, York City, is the
proud father of a second son born

Arthur

The

construc¬

275.0

Industrial

Wholesalers

Two Wall Street




the months which lie ahead.

-—

FRB

Retailers

New Addition

Boston », Mass.

likely that inven¬

for

substantially achieved

June 1,'50

Personal

American

fifty Congress Street

burdensome,

expenditures

tion, the inference is that

(billions of $)

Personal

France,- and then to the
opening of the Olympic Games at

ny

very

Gross National Product

Wall

mark,

WORTH 4-2400

at all

sonal

TABLE I

Street, New York City), will leave
Net York July 4 aboard the Pan-

incorporated

is not

con¬

years

Comparison of Economic Indices

FRB

Trip to Europe
(David

Allies^ Co.

it

this

over

increased

61%, and the number of banking
increased by 486 to a
total of 3,776 branches and subagencies.

Mr.

A. E.

are

have

offices had

CANADIAN BONDS

CANADIAN STOCKS

inventories

em¬

by

country.

Rate

Corporation

and

we

increasing population, an ex¬ point forward unless another wave tory accumulation will have any
panding economy and newly de¬ of scare
buying should sweep the bearing upon our consumption in

on

Municipal

during the past two

an

FRB

Provincial

more

sumed

in

expendi¬

FRB

Government

than

duced

These facts strikeingly sug¬

that

...

.....

79.69

43.50

42.21

46.17

2.86%

3.04%

3.10%

°

85.29

93.29
' -

49.75

" 3.17%

Number 5130

[Volume 176

..

.

The Commercial and Financial Chronicle

and, with any marked decline in in hand. Thus, one might,with reason expect that with the whole
we shall have more "butter" than
economy coming into a high plawe can use.
teau and facing, sooner or later,

the other hand, our
normally competitive
strongly suggests that
business, as a whole,

the rate of expenditure for "guns,"

The

of commodity prices

course

s^k forth in Table 1 bears out

as

conclusions.

these

retail prices

peaks

in

spring

the

early

all

In

the declines since

attained

were

of

except

1951
time

that

and
have

amounted

to over
17% in Spot
Commodity Prices, about 16% in

7%'in

Futures Prices
and

ucts

Prices.

4.4%

The

Farm Prod-

in

Retail

Wholesale
is

Index

now

about

1.4% higher than in the
spring of 1951 but it is doubtful
if

this

figure

prices

reflects

the

lowest

retail

at

quite accurately
since, by Bureau of Labor stand-

ards,'price

changes

have

must

decline from this level, the spiral whAch kas been in progress
may ultimately go into a much
*ess steep incline and tend to flatten
out- The fact that inare

and more industries

more

return to a
atmosphere
profits from
cannot rise

If

the

tax

re-

were

difficult to pass on will make the moved, earnings would improve.
bargaining position of labor much On the other hand, the tax is not
less powerful. We now have a
condition of full employment or
even> perhaps, one of over-emPayment snd, in this instance as
An
Projections for general
business activity, the long-range
indications point to a somewhat
lower figure even though this may
be a year °r two away- In any
event> increasing labor costs are

at all likely to be removed until
expenditures for armament can be
reduced very materially. Thus, it

somewhat fatuous to ex-

appears

pect too much relief on this score,
With all signs pointing rather

conclusively to the fact that the
top of the boom has been attained
in the civilian end of the economy

and is at hand in the armament
period in any article before they not likely to re-ignite the infla- program, it would seem that a
have any effect on the Index
A tionary flame.
Neither, on the much more sober approach should
great deal of finished merchan- basis of the facts at band, does it be taken to new investments in
dise has been available at sacrifice ?ee,m ,Hkely that
money supply equities. Some of the investment
prices as a result of special sales' 1S facing any sizable expansion. It roses colored by the
blush of
efforts at the retail level
In the *s true that' on a cash basis, there growth during 1951 have wilted in
light of evidence which has been may be a deficit of $6 or $7 toil- the warm atmosphere of competideveloped in earlier paragraphs, h°n
flfal. 1?5?:1.?5.3- „.To th® tion. This is a situation which is
it is not difficult to recognize con- extent that this deficit is financed likely to continue and it seems
firmatory evidence in these per- by sales to banks, the inflation wise
that investment accounts
sistent price declines
They indi
Pot^ntial is increased. On the should continue to carry a liberal
cate rather clearly that surpluses ?thei; •?a"d' "
m,ustAe.
backlog of reserve funds and that
are
appearing in many types of bered that Federal indebtedness is the equity end of the portfolio
goods and have even extended not the only factor affecting the should be brought into a conservainto certain materials called "crit- ?izf °f A moaey suPp1?' P[ivate tive aliSnmentleal" a short time ago. It means mdeotedness financed
by banks
, . _
,
that a more normal competitive
a
ike mflationary effect
IS HOW
atmosphere is in process of res- from mi? Poiat forward,, aeiense
s
toration in the business world. It
°an,s ta industry are much more
Ul Ik l(| (iff Marrilt
been

in

effect

19342065

over

30-day

a

also means that profit margins are

undergoing
profits are

Inventory
longer contributing
earnings rises and, in many instances, have been replaced by inventory losses. A definite resis-

to

tance

to

squeeze.

a

no

advancing

prices

has

developed and profit margins are
being pinched.
The increases in

cost, due largely to labor rises, are
readily passed on. In other

not

words,

the

statistical

which indicates that

evidence
total pro-

our

ductive

INS" *'"&

bkely to contract than expand
Inventory loans will be reduced
and Private bank indebtedness is

Harold J. Ryan has

be

unwise

to

ignore

the

270 Park Avenue,

New York
City, special-

jn

£1derable amount of bank indebtf^ness incurred for working capI aj; PurP°ses is now being funded
*n
°PfJ}
on long-term
kasisAll of these forces will
seiTe+i0 restrict the roooey supply
and they seem hkely to weigh
nearlZ
heauVl1^ ln the-1? m°"-hS
wtuc" Aie
as ^
in~
Ef:ase .,m Fec*eral indebtedness.

Fe, ,eraI

serve Bank seems to

J10,

and

goods.

It uutb not
does not
11

probable inai
pioDaoie that

seem

inflationary gap will develop
out of the production-consumntion

any

ratios

bor

Jp|Mt

tn

,

.

rmif*hlv

1,af?d Federal deficits
might be monetized. A la-

shortage

virill

dg

further
scale.

still

and,

in

difficult

these
to

increases

It may be

exists

in

in

most

cases,

resist

the

the

wmp

A^ust

Hfife
J|j
Wjk

Neither

wage

Qf

activity

ijon

to

assiirp

ever, that in industries such as
the textiles where depressed con-

ditions exist, these wage pressures
have not been difficult to keep

r

...

1932__

1935-

d° n°f

seem

themselves

;

1937.

1938
1939

1947^
1948—
1949

1950__
1951

....

Haroia

j.

for two years
been

Ryan

116,740,000,000
132,440,000,000

146,950,000,000
151,060,000,000
158,910,000,000
169,490,000,000
188,350,000,000
186,420,000,000
204,260,000,000

222,600,000,000




Much of the

difficulty in this connection arises from the

counting changes which
the

and

occur

ac¬

with variations in premium volume

resulting adjustments in the unearned premium

reserve.

during

period

which
+bp

acmev,ecl „tiie

est of

clarity

"The
written

we

quote from that report.

premium

charges

the fire

by

income

and

at the

made

in

connection

casualty companies

time the insurance

with

insurance

not taken

are

they

as

subsequently taken into earned premium

into

mium Reserve

this

are

re¬

up

are

income

the term of the policy*$ontract. No deduc¬

over

tions from the amount of premiums set
up

for

written, but

liability termed 'Unearned Premium Reserve.' These

earned

are

is

in the Unearned Pre¬

permitted for the commissions paid to agents

business, the state taxes

such

on

premiums

or

for

any

other expenses incurred when policies are issued, although
sepa¬

liabilities

be

must

set

up

for

to be carried

expenses

effect of

as

an

asset.

incurred

expenses

until

These requirements have the

charging immediately against

in connection with the issuance of

while the
company

premium

on

a

earned income all expenses

policy at the time it is written,

such policy is reflected

only as it is earned

"In any

greatest

such

Likewise, the insurance laws do not permit these prepaid

as

income to the

the term of the policy contract.

over

period of increasing premium volume, this method of

accounting produces less underwriting profit (and conversely, pro¬
duces

more

ume)

than would result

rently

as

r3HSP0rl3ll0H
j

n

1

J

nGSotistGd
&

Loeb

the premiums

Co.,

if such

are

period of decreasing vol¬

any

expenses

earned.

prepaid expenses is not reflected

were

charged

concur¬

Also, since the amount of such
asset, there is

as an

correspond¬

a

ing equity that is not included in the stated surplus. It is apparent
that to obtain

announc.ed

Kuhn

underwriting profit in

I

i

Pl3C6Cl PflV3lQIV

it hss

thst

of

in

through

the sale

of

of 3%% and will mature serially
quarterly installment to and ineluding July 1, 1972.
The equipment covered by the

as

frust

Savings

% of Disposable

and casualty

for the

a

clear

picture of the underwriting results of fire

companies for

a

given

adjustment must be made

year,

equity which arises from the practice of prepaying expenses

incurred in

obtaining

cars

CEnniSti. °* 1>738 new tank

and 97 lTCW hopper Cars.

RorroH ^nH Rnmn^iiv

1,820,000,000
—1,380,000,000

u3ii6II 3110 uOITip3l1y

3.9
2.9

—1,180,000,000

AnitAiinpa FyiiAlldnil
MliilOUIllfC CApdllOlUII

—

The

Tex

DALLAS

240,000,000

new

business."

3.0

3,580,000,000
3,930,000,000
950,000,000
2,700,000,000
3,690,000,000
9,760,000,000
25,570,000,000
30,190,000,000
35.400,000,000
27,980,000,000
12,000,000,000
3,920,000,000
10,460,000,000

5.5

10,690,000,000
17,200,000,000

.

.

5.5

.

.

Steve

^Inning and WaUer S Kline as
vfre-PreJdents for Garrett and
r™

PrLtnri
Praetorian
an

na n v

B uildine

Building,

1.4

Company,

3.9

was announced June 23, Mr. J.
Ervin Shilg, President. These new
executives have a wide acquaint-

4.9
10.5

21.9\

ance

and

considerable experience

22.8

24.1
18.6

7.5
2.3
5.5
3.4
5.2

7.7

point the pamphlet goes

m the securlty investment field.
Until recently all were associated
Bailey,

&

Scott

Part of the study is given to a discussion of other terms such

net

operating earnings and liquidating values.

trations

are

.,c

•

+hp

•

flrinntt,

Securities in the various a
represented by Garrett and Company.

In addition, illus¬

given of the methods used in calculating these various

items by the use of actual 1951 statements of different companies.
The pamphlet serves its purpose

well, which is to aid in

un¬

derstanding the financial reports of fire and casualty insurance
It fs recommended reading for all investors interested

companies.

in insurance shares.

•

Wm. E. Pollock Go.
Elects Richard Ward
Wm.
Pine

been

E.

Pollock & Co.,

Inc., 20

INSURANCE STOCK
Analysis 1951 Results

that Richard J. Ward has

elected

dent of the

-

FIRE & CASUALTY

Street, New York City, an¬

nounce

assistant vice-presi¬

Circular

on

Request

firm.

Joins Marshall Staff
(Special to The Financial Chronicle)

Company.

They will specialize in Corporate
Cflni

to explain the statutory*

underwriting ratios, liability loss reserves, investment income,

as

f:p1fl

with

on

appoint-

Drvce

1,750,000,000

'6,250,000,000

From this

Income

4.5%

I

The First Boston pamphlet explains these changes and in the inter¬

"Adjusted Underwriting Results."

2,890,000,000

.

intelligent understanding of

an

tificates bear dividends at the rate

$3,720,000,000

75,740,000,000

accounting aspects

Certainly this part of

insurance operations is to be obtained.

Vice-

executive

as

.

tu d

tjon

likely to reassert
a njajor way.
On
v

Savings

92,010,000,000

and

underwriting results and the meaning and method of computing

Personal

6-3,090,000,000
71,050,000,000
65,460,000,000
70,160,000,000

explanation of the financial

the business must be understood if

rate

.

H

—

an

underwriting phase of the business.

tificates, series 50, dated July 1,
1952, to two institutions. The cer-

Disposable

1931

of the

fafAOna y pressures

'

$82,480,000,000
73,680,000,000
62,970,000,000
47,810,000,00045,160,000,000
51,630,000,000
57,970,000,000

For this reason the report of The First Boston Corp. is devoted

primarily to

$15,000,000 equipment trust Cer-

Personal Income

1_

regularly engaged in other phases of the securities

funds, is generally understood and requires little explanation.

paid.

operations,
Previously,

'

of the

area.

Personal

1330

•

capacity,

Mr. Ryan will
be
active
in

Geneml American Transporta-

Record of Personal Savings and Disposable Personal Income

1936

new

in

1929

to the account-

cipal activity of insurance companies, namely the investment of

policies and

RlfC

SL.a

^

TABLE

as

among some

As The First Boston Corp. pamphlet points out, this confusion

expanding

|j§|^

any

Hpetpp

a

even

arises from the underwriting phase of the business. The other prin¬

sales and coordinating

m

Defense produc*-

significant, how- stabilization in this general

are

This is true

business.

A

|||^

u6Di Altli I

it measurable decline in the all-over

some

people who

t%

the

on

lack of understanding

a

are

J

general tempo of

hand, do they point to

misconceptions and

ing aspects of the business.

Ehe country' rising from $500-000
to «8'500.000-

partic-

not point to any sizable

months.

0ther

Because of the character of the insurance industry, there exist
many

percentage growth of any fund in

business during the next six or
ojgbt

There was a considerable demand for the first edition
which
required three printings. In view of tjrie continued interest in the
subject and the fact that certain changes have taken place in the
last four years, the 1948 edition was revised and
brought up to date.

premiums

his

In

and consumption trends.
the

published in 1948 under the

dent.

IgjBL

..

they relate to productive

in

earlier report

an

"»

fr JPiJl

*

president,

10uShly the same general

of

^U

-

.

IMP'NiB

the

t^nera!

edition

title.

same

as a

;

'

Distributors

,

material which paragraphs
has been
in
earlier

ipaH(!

^r'Xle

c0?

lndustnes

•

.

presenteu

as they Mw exist
Therefore, in seeking for an indication
ularly as
of a possible rekindling of the incapacity
flationary fire, one must look to
They do
other sources, namely, increasing
increase

which

.

revised

originally

associated with Value Line Fund

Summary

Insurance Stocks

Corporation of 100 Broadway, New York
City, one of the large investment banking houses, recently pub¬
lished a pamphlet entitled "An Aid to Understanding Financial
Reports of Fire and Casualty Insurance Companies." This is a

stockholder
and executive
Vice-Presi -

as

'

,

a.
Yie.w as evidenced-by
ac^10n m easing credit restrictions

,

—

Boston

quired by the insurance laws of the various states to be set

.

Monetary and Labor Factors

First

JOHNSON

earned

in recent weeKs.

consumers'

This Week
The

E.

fUin(j shares,

.

international aspects of the slumps
which have come in commodities

H.

lists in mutual

*

capacity is in excess of
our normal
consumptive capacity Thus,
seems that there is not
is being confirmed by trends in any im™ment danger of a resurcommodity prices. In this connec- &en.ceiof mflationary forces in jjhe
tion, it might be said that we Eei7od, Y?
£ akead. .The
would

By

socjatecj w^j1 King Merritt & Co.

,in^ grRduaiiy liquidated. A con-

.

become as-

37

Bank and Insurance Stocks

significantly above the present
levels and, in some instances, will
go even lower. The excess profits
tax places a barrier against measurable earnings expansion in most

a

creased costs

(37)

Laird, Bisseli & Meeds
Members New York Stock Exchang*
Members New York Curb Exchange
120

MILWAUKEE,
Tag

is

now

Marshall

Company,

Water Street.

BROADWAY, NEW YORK 5, N. Y.
Telephone: BArclay 7-3500

(L.

A.

Wis.—Ernest J.

affiliated

Bell

with The
765

North

Teletype—NY

Gibbs,

1-1248-49

Manager Trading Dept.)

Specialists in Bank Stocks

■

;

38

(38)

The
.

Commer^l and Financial Chronicle
On

Tomorrow's
c

again

Markets
Walter

influence

its

assert

in points.

hazard

Whyle

I should

if

far

as

at this time.

*

I

as

,

care

either

way) will, be

take.

Of

course

•

news

if

if

article
time

not

that

at

time

Utility Securities

if

if

if

Southern

second largest electric utility on
electricity to a population of 2,850,000
in central and southern California, including Long Beach, Santa
Monica, San Bernardino and Santa Barbara. Truck farming, fruit
growing and packing, oil production and refining, and diversified
industry
(tires, cement, chemicals, airplanes, automobiles and

tion of the market. Two weeks

machinery)
The

I changed my opin¬
change was due to

ago, or so,
ion. The

trial

the market itself rather than

period

amounts

together at the

came

form

some

of

gazing.
I

crystal

seem

individual

or

to be

a

the

reason

Neither

move

doesn't

occur.

reaction.

They just stand still, backing
and filling usually within a
five-point range. When that
happens it frequently indi¬
cates a delayed move and it
is at such a point that the tenunit habit comes into play.
❖

if

no

stock

equity ratio.

for both

of

1951

private and public enterprise.

the

capital structure

(of which about one-third
stock.

common

(net

proceeds

picked
a

kind of habit

have.

markets

some

But it can't be followed

blindly.

In fact I know little

about the market that

followed

if

if

In any event

ten-month

cided and
most

tion
go.

a

the ten-week

periods coin¬

move

followed al¬

immediately.
now

My

be

blindly.
if

and

can

The

ques¬

is how far will

they

is that the in¬

answer

$26

in

was

two

convertible

is¬

issues of preference

jmprove the equity position.

common

stock record

Share

already

within

of their

touching

intermediate
the

latter

(they're

if

the

But

highs.
be

to

now

range

I figure

about

280

about 275).
if

the past decade:

over

Dividends

recent

move

Paid

$2.81

$2.00

35-32

1950

2.97

2.00

stop at

Take
and

two

I

any

2.99

1.75

think

1.83

1.50

way

wrong.




do

my

coin¬

not

President, Elliott
I

have

article

read

Company, Inc.

Mr.

"United

on

Robertson'^

Nations"

with him that

agree

should withdraw.
views

are

and

country

our

Mr. Robertson's

sound, although I

very

do not believe that either

party will make

Price

Range

of

Van

A.

In my

ion,

of

Two

priceless
Nations

articles

have

the

on

appeared

in

the "Chronicle" that I think
every
American should read. I hope you

making reprints in

are

be

can

used

College

a

by High School and

youngsters.

articles

(William

After

A.

Mr.

Robertson's

United Nations—Why It Is
Doomed to Fail") in the presence
of our two daughters, our
High
School

girl

said

chance

a

she

to

would

read

it

sure

her

to

history class and watch the

teacher

have apoplexy. The other article
I have reference too is- the one

by O. R. McGuire

sult of the in¬

on

—who usually decide on
basis rather than on

However, I have

Corporation,

1.60

1.50

27-22

The article by William A. Rob¬
ertson on the United Nations is a

1943

1.43

1.50

25-22 *

very

1942

1.57

1.50

22-15

do

1941

2.33

1.75

28-17

from

50

to

60-cycle

frequency

large part of the sys¬
during 1945-48, with total

charges to expenses of some $34 million. A year or so later one of
the company's important
generating plants, located in an oil field,
started to sink into the ground and the
company charged $2 million
in 1950 and again in 1951 to
repair this "subsidence." However
this particular loss was about
offset by the net income from oil
properties owned by the company.

to

a

i

far

the

was

due

principally to excellent
hydro conditions (expected to continue through the
year) and
omission of the "subsidence"
charge. In April, however, the com¬
pany issued 800,000 new
shares, an increase of about 18%, so

that

the

resulting dilution may substantially offset the indicated
gain in earnings during the balance of the year.

UN

President Mullendore in the 1951
Report to Stockholders indi¬
that the company intended to ask for
an increase
in rates.
It is estimated that the
company earned a return on investment
last year of less than
5%, compared with the usual 6%. Should the
company eventually prove successful in such an

in

world

earnings might improve sufficiently (if other factors
remain un¬
changed) to warrant an increase in the dividend rate.
(The present
payout is only 66%, well below the general
average.)
However
any future conversion of the preference stocks
would
common

share

re¬

earnings.

The stock is currently
selling around 35 to yield 5.7%.

Kohler

Stuyvesant Fish died at the
of

69

Fish

after

was

a

age

a
long illness.
Mr.
former member of the

New York Stock Exchange and

partner of Callaway, Fish &

Co.

a

George

to

Admit

ft.

Glock will become a
partner in Kohler & Co. 63 Wall

Street,

New

York

City, members

of the New York Stock
Exchange

in

act

on

July 10.

would

withdraw
to

make

nations
so

have

a

influence

in

who would deem it

or

able

were

mean

gradually
it

to

as

clear

to

just why

doing.^

E. HOPE NORTON

President, International

Products

Corporation
agree with many

of Mr. Rob¬
conclusions, and it seems
thought and effort is

that

me

directed

toward

rather

war

than peace.

HON. JOHN SPARKMAN
U.

S.

Senator
I

do

from

not

;

Alabama

with

agree

•

Mr.

that

he

has

provoking

produced

article.

a

I

do

developed to the point of ulti¬

While
forth
W. M.

Mr.

*

.

if

we

were

free

way.

to

I

'

interesting
article

Nations with the

on

happens,

on
as

He

I

have

various other

to

known

subjects,
Na¬

are

all

may

doubt, that it will continue
pe¬

B. M. EDWARDS

Chairman
South

I

gets-a wide circulation.

of the Board, The
Carolina National
Bank,
Columbia, S. C.

have

read

"The

United

tions—Why It Is Doomed
thoroughly and think
son

be

congratulated
presenting this view and I hope

the article

enough to

We

riod.

100%.

that of the United

is

"wishful

Robert¬

and very
the United

Mr. Robertson'-for many years and
have always noticed his keenness
well

justify its existence.
in

set

the United Na¬

its good works in the interim

greatest interest

and endorse his views

of mind

be

may

tions has already done

be

'

I have read William A.

it

it.

has

ideas, and

hopeful, although its destiny

Moody's Investors Service, N. Y. C.

convincing

•

,

prog-

JOHN MOODY .V,

very

Robertson

very sound

thinking," I think

'

ress.

some

although

Jarman

independent

an

'

C. K. PRESTON

Assistant to the
President,
Bell & Howell
Company

believe that is the road

on

will

we

mate success.

countries,

to

as

af¬

that the United Nations
has succeeded but I believe it can

of

other

tions.

that

to

other

we

be

standard

son's

re¬

mean

cannot

not argue

the

living

As

Stuyvesant Fish

be

raising

application, share

tend to

affairs,

the

world,

e

would
we

constructive

advisable
and

of

peace

of

are

misun¬

more

the

t h

be

handling of
situation through a

group

more

maintaining

quarter

might

that

foreign

new

value to other

Improvement

the

time,

change in Administration

a

thought

of

countries

earnings of
$3.03 vs. $2.82.

we

world

this year, and which would
a much more
capable

mit

the

be

if

Robertson's conclusion I must ad¬

States

could

it

in

are

this

at

My hope would be that
have

While

Cer-

United

we

and

ford.

Mr.

1 y

n

wrong,

conditions in the

percussions

read

Rob ertson

t

or

Nations,

this

to

careful

very

withdraw

confused,

It would

good

conclu¬

In the first quarter of 1952 the
company reported
94c vs. 72c last year. The 12 months
figures were

for

United

now

I agree with

reaches.

factual

come

after

chaos, and which

this.

thoughtful analysis.

the

politi¬

a
a

derstood and result in serious

to

37-27

sions that

Weir

one.

ertson's

JARMAN

Americans

T.

the "Amer¬

General Shoe Corporation

all

Ernest

cal

ican

35-27

and

competency of
the people in the Administration

"The

Chairman of the

a

whole

this, natural¬
ly, is the re¬

form that

1.50

the conversion of

in

handling

the

so

1.64

was

serious

mistakes
the

when

Nuys, Calif.

40-30

One

opin¬
have

we

should

HARKER

1.50

income taxes.

he

has to say.

I

Company's earning power has been affected by two sub¬
items which, however, were
partially offset by

what

study: Right
ROBERT

MAXEY

expense

ex¬

agree

with

the

MRS.

1.50

The

read it with

con¬

conclusion,

subject.

1944

tem

tent,

this

1.83

.

a

siderable

political

issue

an

1.95

1-

1945

stantial

and, to

problem
WILLIAM A. ELLIOTT

31-25

1946

is

you'll be

matter

"The

thought

international

36-30

1948

such pat figure.

points either

don't

the

of

interest

great

37-32

1949

probably too well developed
to

in

subject

provoking, and I have

made

Way of Life and the UN"
which also appeared in
your issue
of June 19.

Approximate

Earnings
1951

duce

if

for

way

cide with those held by Mr. Rob¬
ertson.

like

cated

dustrial averages are

all-important

an

Harker had read the first of these

debt, 25%

800,000 shares of
million) has raised the

Gradual conversion of the

Following is the

What

up over many years as

50%

underway,
budget for 1952 being $80 million. The big Etiwanda steam
station, scheduled for completion early in 1953, will add 250,000
KW capacity.

thing. Basic
trading rules are much more
something I

was

The recent issue of

about

not

Therefore, it is obvious that
views

company's $118 million

the

such

I've mentioned is

the

The company has had a huge construction
program

if

fundamental than that.

the

in

city within the company's territory has

1947

no

section

to

and

room

stock will also

Before you start accepting
this ten-unit thing as a rule
let me hasten to assure you
there's

with

have

we

entitled, nevertheless, it is
beginning in a new direc¬

are

new

some

sues) and 25%

some

the

this

due

while

the

on

United Nations" is indeed

thoughts in the mat¬

that,

United
are

preferred stock

way:

stocks

For

move.

does

1933

the end

common

indicate

in

apparently

compared

*

explain it this

can

Since

Shasta

as

At

Markets

population

large Federal hydro developments in the area,
Keswick in the huge Central Valley project
(see Prospectus). Since these Federal plants may give preference
to municipalities and co-ops, they
may prove competitive in the
future. However, growth in the area is so
rapid that there would
such

.

*

%

trivial

are

There

I suppose all this
sounds either cabalistic or at
least

the

plants,

DUFF

had the full collaboration to which

undertaken the development of a municipal electric
station, though
unsuccessful efforts have been made in some cities to do so.

time.

same

of

power

revenues.

ten-month

and

half

wholesale 11%.

is served by
availability of
cheap hydro power from Hoover Dam, but there is little indication
that these will encroach on the Company. According to the recent
common
stock prospectus, the company during the past decade
lost only $185,000 in annual revenues due to "annexations"
by
municipal systems and while it may lose another $300,000 these

municipal

II.

area.

Company's business is virtually all electric. The indus¬
provides !25% of revenues, residential 34%, farm 9%,

Almost

external reasons. For
some
unexplained reason,
markets move in cycles of ten
—ten days — ten weeks—ten
months
(if
projected suffi¬
ciently I suppose it could even
be ten years). Two weeks ago
ten-week

my own
are

load

commercial 21%, and

to any

the

cle,
ter

we

WEIR

Chairman of the Board,
National Steel Corporation
The article by William A. Rob¬

JAMES

Relative to Mr. Robertson's arti¬

a

T.

"

'

own

U. S. Senator From Pennsylvania

California Edison,

the Pacific Coast, supplies

the principal activities in the

our

at

peace.

quite aware that while
I
looked
favorably on the
heavy industry stocks, I was
pessimistic on the greater por¬

are

attending to

HON.

tion

Southern California Edison Co.

I'm

staying

ertson

as

its

and

on

to Fail"

ERNEST

concen¬

with

May,
From
that
point I think Chronicle.
They are presented
discussing the steel situa¬ stocks will
again advance and those oj the author only.]
tion, I said I thought the steels
were a
buy despite the unfa¬
vorable publicity they were
being subjected to. I won't
belabor the point except to
refer you to the prices of Big
By OWEN ELY
prices today.

minds

our

expressed in this home and
necessarily at any business.
those oj the

views
do

coincide

in

Public

Why It Is Doomed
along that line; then

way

v;-

trate

[The
if

Back in the middle of

Steel

"The United Nations-

to go

that a reaction may upset all calculations, but
(again take two that's a chance you always

about it.

=

if

That's

Continued from page 3

approach the 300

guess

a

about 270

to

points

By WALTER WHYTE

at that time

will figure.

formation

limiting

Says—
=

setback, however, the

a

preceding

Thursday, July 3, 1952

.

presents

gent
sorry

and

it

in

forceful

that

I

will

a

to

Na¬

Fail"

Mr. Robert¬
very

intelli¬

manner.

I

have

agree

to

am

Volume 176

Number 5130

..

The Commercial and Financial Chronicle

.

(39)
much

with

of

he

what

but

meanwhile -I

the

has said,
hoping for

best.

am

weaker nations to seek

many

curity

by

other

alliance with

the

all

se¬

only

strong enough to be

power

Mr.

a

HON. A.

L.

counterweight to American mil¬
itary might.

MILLER

U. S. Congressman from Nebraska
The

article, "United Nations—
Why It Is Doomed to Fail," is ex¬
cellent and

that is well writ¬

one

Mr. Robertson, its author, has

ten.

certainly done a good job of rep¬
resenting the reasons why United
States
the

would

United

be

better off out of

Nations.

But the

"free nations"

have

again after

over

third world

a

war.

Robertson

is

obviously

a

close student of American history.
Let him consider the perilous con¬
dition of our own country in the

no

monopoly of the destructive forces

fateful

of

of

modern

science.

nist

nations

sons

to fear

have
us

as

them, and the
build
and

these

Commu¬

under

years

the

Articles

compared with the previous week's total of 94,347
(revised) units,
and 116,263 units in the like week a
year ago.
Total output for the past week was made
up of 91,886 cars and
trucks built in the United States against
94,347 cars and
24,901 trucks (revised) last week and 116,263 cars and
33,623
trucks in the comparable period a
year ago.
Canadian output last week was

25,849

Confederation, before the Con¬
stitution was adopted.
The Fed¬

trucks.

have to'Tear

eral

incentive

we

power;

powerless, hamstrung by the lim¬
itations imposed by the jealousies

power,

of

placed at 5,190

same

military

two,' centers

of

rea¬

to

Government

the

separate

weak

was

states.

and

But

built.

In the preceding week
7,039 cars and 3,030 trucks
In the like week last
year 4,837 cars and 1,382 trucks

Business Failures Move

the

T.

BEATTY

President, United

issue of June 19, and agreed

with

his

conclusions.

Further¬

provided

he

more,

immense

an

the week ended June 26 from

Bradstreet, Inc., reported.

swing,

Specialties Co.

I read Mr. Robertson's article in
your

leaders of those days did not sug¬

gest that therefore the experiment
in
independence was a failure,

an

amount of

background material
the subject.

on

ward

arms

rushing

are

headlong

mankind

themselves

find

can

G.

a

the

only

clusive

Bogota, N. J.
William

A.

Robertson's

article,
"The United Nations—Why It Is
Doomed to Fail" (in the June 19
issue of the "Chronicle") will be
welcomed
all

by

those

are

who

world

the

war.

the

as

Fed¬

*»

ent,

is still easier

it

is

at

to

the

British

wise

which

has

world

are

other

as

has

on

that

foundation, modifying and
changing it in the light of expe¬
rience, than it would be to start

will

out

been

problems—our's

give

us

us

as

which

have

we

an

fearful

the

of

dangers
ward
we

hastening.
Conscious of

llfei
fjm iipifi

our p°wer

*

protect

flL ■■

selves

our-

in

our

homeland,
G.

Wm.

there

Lightbcwn®

un-

doubtedly

:

widespread feeling that
once

is

from

the

outer

world and enjoy the peace
prosperity which our material

and

and

resources

make

geographical position

possible.

doubtedly,

There is also, un¬
feeling among many

a

that

the

most

tion

the

United

valuable

States

to world progress

of

government

and social

organization

countries

by

to

show

demonstrate

superior

other

upon

of

force,
example

by

results

make

can

is, not to impose

conceptions

our

contribu¬

of

free

but
the

institu¬

tions and voluntary discipline un¬
der democratic procedures.

may

for

yearn

and

chance

a

the

results

we

caught

are

our

achievements,

in

up

web of cir¬

a

which

back.

The

enjoy

there

is

except by going forward
; "•
" /?

escape

—not

quiet,

relax and

from

cumstances
no

to

of

and

peace

...

United

Nations,

like

the

League of Nations before it,

was

set

was

because

up

the

world

faced

with a
problem, and the
problem win not be solved mere¬

in

structure

of

world

of

A

disposal by modern science.
If

"free

the

nations"

had

monopoly of those forces,
could

we

tinued
we

count

rectitude

a

alliances, or even
Unfortunately,

as

Mr.

recognizes,
and

solutely."
States

that
we

in

further

mild

Wholesale

be

corruption, but

■

the

our

rest

we

we

corrupts ab¬

exception to

of

pretenses

could escape

could

the
of

scarcely
world

virtue

to
se¬

riously. We should end up as the
most
feared,
and probably the
most hated, nation on earth, and
the more powerful we became the
more

certainly

we

would




for ,.a

was nearer.

were

The union retreated

union

be

drive

in

the

Dun

&

Bradstreet

wholesale

%

Commodity Price Index Touches Lowest

pendent union last week estimates

$10
and
the

The

ton.

a

expects

company

steelmaking costs will

to

go

up

absorb part of the increase

government fob permission to raise prices to cover
rest, this trade journal states.
As the strike ^ore on, two-thirds of the chances to order the

major forms of- steel at regular prices for delivery in the fourth
quarter of this

year

had vanished.

Carryover.. ,of unfilled orders into the third quarter, which
begins tomorrow, is equivalent-to 11,000,000 tons of finished steel,
says the National Production Authority.
This amount is equal to
two

so it can't help wipe
This leaves only the fourth quarter to take up
Two months of that quarter will be needed to erase the

out the carryover.

already accumulated.

Thus, with two out of the three
months in the fourth quarter committed for
carryover, two-thirds
carryover

of the chances for

getting on the books for fourth-quarter delivery
shot, continues this trade weekly.
Near cessation of scrap usage

during the steelworkers' strike

knocked down the prices of steelmaking grades of scrap last week.

Dealers generally dropped their offering prices $3 to $5
there

ing

few takers.

were

scrap

The

fixed
has piled

American

a

ton, but

with
up

Iron

Since

scrap.

the

mills

have

been

in dealers' yards, concludes "Steel."

and

Steel

Institute

announced

that

the

operating rate of steel companies having 93% of the steelmaking
capacity for the entire industry will be at 12.3% of capacity for
the week beginning June 30, 1952, equivalent to
256,000 tons of
ingots and
for castings. In the week starting June 23, the

ste|l

rate

11.8% of capacity

was

tons.

:;'.J

A month ago

Car

■■

(revised)

and

output

totaled

246,000

■

output stood at 38.7 % or 804,000 tons.

Loadings Rise On Increased Grain and Grain

Products Shipments

Loadings bf

freight for the week ended June 21, 1952,
strike, totaled 643,860 cars, ac¬
cording to the Association of American Railroads, representing an
increase of 12,817 or 2.0% above the preceding week, due in the

which

main

were

to

affected by the steel

the increase that took place

in the loading of grain and

The

week's total represented a decrease of 189,082 cars, or
below the corresponding week a year ago, and a decrease
of 166,111 cars, or 20.5% below the comparable period in 1950.

22.7%

Electric Output Continues to Advance Due to
Warm Weather
The amount of electric
energy

distributed by the electric light
industry for the week ended June 28, 1952, was esti¬
7,317,817,000 kwh., according to the Edison Electric In¬

power

mated

at

stitute.
The current total was 63,759,000 kwh. above that of the pre¬
ceding week when output amounted to 7,254,055,000 kwh. It was
420,017,000 kwh., or 6.1% above the total output for the week

ended June

30, 1951, and 1,202,698,000 kwh. in excess of the output
reported for the corresponding period two years ago.
«

United States Auto Output Falls 3% as a Result of
Steel

Passenger
according

Grain

markets were unsettled
during the week with prices
generally seeking lower levels. Wheat was irregular with prices
easier, largely reflecting heavy receipts of new Winter wheat at

southwestern terminals.
Wheat arrivals at principal markets last week
totaled approx¬
imately 19,800,000 bushels, almost double the volume of the
pre¬
vious week.

outlook

deterioration

for

Winter wheat remained

excellent

but

some

was

reported in Spring wheat due to continued
dry
Corn was depressed as a result of
liquidation influenced
by favorable crop prospects, increased marketings of old
crop corn,
and continued pressure of CCC stocks.
Export business in corn
weather.

remained light.

stockso of

Oats declined with corn, under pressure of
large

Canadian oats at Chicago and other lake
ports. Rye
showed independent
strength and closed slightly higher. Sales of
all grain and
soybean futures on the Chicago Board of Trade last
week reached a daily
average of
000

week

a

36,900,000 bushels, against 39,700,previous, and 30,200,000 in the same 1951 week.

Cotton

advanced steadily most of the week but
declined
sharply at the close. Weakness at the finish was due
mostly
to long liquidation and
stop-loss selling. Early strength was influ¬
enced by increased
activity and higher prices in the

goods market
and reports of weevil infestation in
parts of the belt. Sales of the
staple in spot markets increased
slightly for the week and were
well above a year ago. The Bureau of
the Census report on cotton
consumption for May was below
expectations, totaling 687,000
bales for the four-week
period. This compared with 832,000 bales
in the
corresponding period last year.

Trade Volume Spurt Checked

as

The recent rise in retail trade

period ended

on

Heat Wave HitSv

was

Country

checked somewhat in the

Wednesday of last

week as enervating heat moved
While the demand for most
goods
substantial rises were reported for

into many parts of the nation.
narrowed during the

week,

seasonal merchandise.

some

With the help of

hours,
of

a

%

reduced-price promotions

many retail merchants

were

and

late shopping

able to better the sales figures

year ago.

Retail dollar volume in the week
was estimated to be from"
1% below to 3% above the level of a
year earlier.
Regional esti¬
mates varied from the
comparable 1951
•

levels by

New

the following:

England —2 to +2; East —3 to
+1; Midwest —2 to +2;
Northwest 0 to +4; Southwest
+2 to +6; South 0 to +4 and Paci¬
fic Coast +1 to
+5.

revenue

grain products.

and

week ago, and with 312.90 at this time last
year.

Before the strike, steel mills were becom¬

comfortably

closed,

The index closed at 291.35

rather

months'.output at capacity production.
The third quarter was already sold
out,

the slack.

low for the year and the lowest level since late October
1950.
on June
24, as compared with 294.14 a

new

The

the

ask

The daily wholesale
commodity price index, compiled by Dun
Bradstreet, Inc., continued downward the past week to reach a

back to work by July 7.

One steel cbmpany which signed a new contract with an inde¬

Pax

Blinded by patriotism,

might think

take

no

Industry

sys¬

a

decline

a

Some steel company officials were expressing the opinion the

>

corrupts,

power

power

world

An all-powerful United

would

rule.

expect

demands

how¬
himself

Robertson

"all

absolute

con¬

upon a

Americana.
ever,

a

if

motives,

might dispense with
of

and

the

upon

of their

organization and rely
tem

its

|f

the destructive forces put at man's

In

price index this week brought the June 24 figure to
$6.39,
from $6.41 a week earlier. The current index
is the lowest in six
weeks, and compares with $7.02 on the corresponding date a year

^

supply picture is growing blacker there

steelworkers would

co¬

problem is, how to control

were

of

last year, they were
comparison with the
down 38% from the 264 rec¬

1950.

The index represents the sum total of the
price per pound of
31 foods in general use and its chief function is
to show the gen¬
eral trend of food prices at the wholesale level.

shop, and a poll by "The
Beaver Valley Times," a " newspaper with a heavy circulation
among steelworkers in the AUquippa, Pa., area, showed that 88.3%
of the 798 turning in ballots were "in favor of accepting the steel
industry's offer and returning to work.

operation.
The

5

page

break in the steel strike

a

some

ly by pretending that it doesn't
exist, and tearing down the halffinished

from

While the steel

signs

are

Unfortunately, the situation is
not that simple, and much as we

in

ago, or a drop of 9.0%.

our strength, so He
the wisdom to solve

The State oi Tiade and

a

should

we

withdraw

more

similar week
156

food

&

to¬
to be

of

Level Since Late October 1950

Continued

which

seem

While

the

God

been

living, and

in

total

rose
moderately to 163 in
in the preceding
week, Dun &
casualties remained below the

Wholesale Food Price Index
Drops to Lowest Level
In Six Weeks

the tensions

under

Moderately Higher

well

as

them if we approach them
spirit He would approve.

the

level of 1939, failures
orded in that year.

a

leadership the

occurred

than

151

prewar

since.

ever

countries'—and

given

which

188

heavier

leaders

hammered

needs
today.
There are
problems to solve, yes! But they

pres¬

build

to

world

of

weary

and

and

It is that kind of

And, imperfect

peace.

the United Nations

return

in¬ inspiration to the world

eral in form and limited in power
and scope to the one field of pre¬

serving the

under

men

were,

Constitution

prob¬
an

organization,

status

great

they

solution to

should

we

flag. No, they pooled their knowl¬
edge, tackled their problems like

the"

substitute for

that

colonial

commonsense, the
humanity, and the
spiritual understanding to devise

decency,

The

LIGHTBOWNE

and

within

lem, therefore, is through
WM.

to¬

inevitable final collision

an

unless

Soviets,
already in full

race

were
were

Commercial and industrial failures

the United States and the

with
JOHN

and 2,440

cars

built.

the

same

their

up

The

39

Shortages and Heat Walkouts

production in the United States the past week,
to" "Ward's Automotive Reports," totaled 91,886 units,
car

v°lume of trading in

ii

many wholesale markets

was

virtu¬

ally unchanged in the week and continued to
be very slightly
above the high level of a
year ago, but about 10% below the alltime

record

reached

in

the

first

quarter of

1951

when

the

war

scare

spurred buyers to increase their
inventories. Wholesale
modity prices last week fell to the lowest levels since

com¬

October 1950.

Department store sales
the

Federal

1952,
week

Reserve

on

a

countryside basis,

Board's index for the week

as

taken from

ended

June

21.

6% above the like period of last
year.
In the preceding
gain of 9% was registered from the like
period a year ago.

rose
a

For the four

weeks ended June
21, 1952, sales rose 5%. For the
period Jan. 1 to June
21, 1952, department store sales registered a
decline of 3% below the like
period of the

preceding

year.

Retail trade in New York last
week declined about 16% below
the level of the like week
a year ago, due
largely to the extreme
heat.

According to the Federal Reserve Board's
store sales in New York
City for the

index, department
weekly period ended June 21,

1952, decreased

preceding week

10%
a

below the like period

decline

of

8%

was

of last year.

recorded

from

In the

that

of the
similar week of 1951, while for the four
weeks ended June 21,
1952,
a decrease of 12%
was registered below the level of a
year

For the period Jan. 1 to June
21,

1952, volume declined 10% undei

the like period of the
preceding year.

40

(40)

The Commercial and Financial Chronicle

Indications of Current

Business Activity
indicated

following statistical tabulations

latest week
week

Latest

STEEL INSTITUTE:

AMERICAN IKON AND

The

Week

Previous
Week

or

or

month available.

month ended
Month

Ago

on

(percent of capacity)

operations

July

12.3

6

11.8

38.7

•'iJrude

condensate

and

Crude

to

July

6

256,000

246,000

——

—

June 21

stills—daily

(bbls.

average

6,155,000

6,148,850

804,000

————

100.8

BANKERS'

(bbls.)

116,805,000

21,802,000

(bbls.)————.
—..June 21
Distillate fuel oil output (bbls.)
June 21
llesidual fuel oil output (bbls.)
June 21
/jtocks at refineries, bulk terminals, in transit, in pipe linesFinished and unfinished
gasoline (bbls.) at
June 21
Kerosene (bbls.) at
June 21

2,179,000
10,387,000

10,298,000

8,595,000

9,017,000

121,613,000

121,993,000

21,865,000

21,086,000

60,905,000

57,944,000

42,822,000

40,889,000

output

.——-—-

———

oil

Residual

oil

fuel

ASSOCIATION

at-

June 21

at

(bbls.)

June 21

(bbls.)

AMERICAN

OF

freight loaded

Revenue

freight received from connections

(number

ENGINEERING

of

22,107,000
2,570,000

AVAILABLE

CONSTRUCTION

U.

June 21

643,860

(no. of cars)__June 21

570,570

—

631,043

562,746

DUE

TO

137,036,000
25,758,000

OIL STRIKE

41,586,000
761,647

637,049

832,942
683,352

Pennsylvania

SYSTEM—11)47-49

JSlectric

$316,705,000

output

202,536,000

141,984,000

133,465,000

154,348.000

162,581,000

163,743,000

174,348,000

AVERAGE

East

(in

114,564,000

90,100,000

120,186,000

118.280.00C

48,017,000

73,643,000

54,162,000

44,077,000

Total
New

BRADSTREET. INC.

739,000

742,000

752,000

900,00(

ERAL

18,000

♦21,300.

111,000

152,30C

As

105

92

98

June 28
—

♦116

7,317,817

7,254,058

6,810,727

steel

Pig iron (per

163

151

136

—-June 24

4.131c

4.131c

4.131c

steel

Rcrap
WJSTAh

(per

PRICES

$52.77

$52.77

$52.77

$52.6)

June 24

$39.50

188

Copper

$42.00

$42.00

In

$43.00

4itraits

tin

(New York)

V.ead

(New

Bead

(fit.

York)

Louis)

24.200c

24.200c

33.575c

27.425c

27.350c

121.500c

121.500c

S.

RESERVE

BANK

AVERAGE

=

(average

daily),

113.31

July

112.56

112.75

112.37

Stocks,
Stocks,

seasonally

EDISON

Month

109.60

109.42

109.42

104.14

103.97

104.31

103.47

Revenue

107.27

107.09

107.44

106.39

109.60

109.42

109.60

108.34

113.50

113.50

113.50

112.93

108.16

of

2.62

2.59

2.68

3.17

3.16

3.21

Contracts

2.94

2.93

2.93

2.99

1

3.03

3.03

3.02

3.04

1

3.19

3.20

3.20

3.27

July

_____

Group

1

3.50

3.51

3.49

industrials Group

3.32

3.33

3.31

3.37

3.19

3.20

3.19

1

2.98

2.98

2.98

434.8

433.9

435.8

(tons)

DRUG

AVERAGE

=

of

period

192,889

165,162

173,687

210,043

208,998

205,632

244,969

June 21
end

191,104

June 21

at

85

86

83

103

June 21

PRICE

374,791

393,144

360,887

572,952

June 27

REPORTER

EXCHANGE—SECURITIES
sales

by

dealers

EXCHANGE

(customers'

140.6

140.3

139.8

purchases by dealers (customers'
sales)—
Number of orders—Customers' total sales
Customers' short sales
of

other

short

other

24,953

23,084

27,418

693,174

631,418

781,195

Bales

Short

$37,526,319

$35,559,018

$27,801,830

$37,475,320

21,888

21,912

20,185

23,438

99

114

94

228

June 14

21,789

21,798

20,091

23,210

June 14

603,346

587,365

536,288

654,333

June 14

3,128

4,002

3,623

8,541

June 14

sales

value

>tound-lot

All

600,218

583,363

532,665

645,792

$25,152,770

$24,732,110

$32,200,684

$28,161,326

182,200

173,270

163,080

173,030

June 14

sales

by dealers—

.

.June 14

Other sales

>

purchases by

173,270

163,080

173,030

.June 14

) found-lot

182,200
299,390

305,270

246,420

337,410

dealers—

ON

THE

NEW

YORK

Total

Round-lot

Piece

JUNE

258,050

153,140

216,040

298,510

june

6,353,400

4,221,100

5,670,510

5,916,550

6,611,450

4,374,240

5,886,550

6,215,060

june

TRANSACTIONS

FOR

ACCOUNT

OF

BERS. EXCEPT ODD-LOT DEALERS AND
SPECIALISTS
Transactions of specialists in
stocks in which
registered—
Total purchases
Short

sa es

Other

Women's

Home

Other

620,610

678,800

transactions

initiated

124,880

86,750

121,150

150.030

540,770

326,330

456,690

494,380

June
on

the

floor—

665,650

413,080

577,840

644,410

Total purchases
Short

165,650

74,780

134,100

141,600

9,000

7,200

11,600

18,000

Total sales
Other transactions
Total purchases

.June

Short
.

initiated off

154,760
163,760

93,050

150,500

143,380

100,250

162,100

apparel
and

June

sales

228,605

247,980

'

wear

_

Cotton

_

_

...

_

.

Sheets

-

Women's

PRICES,

NEW

=

and

housedresses

and

__

_

__

_

SERIES

—

U.

S.

DEPT

__

__

and

Children's

Furniture

_

—

coverings

—■—

Electrical

.

WASHERS

STANDARD

SIZE

AND

220,030

LAUNDRY

MANUFACTURERS'

TION)—Month

VEHICLE

PLANTS

IN

108.6

109.1

113.6

114.9

U.

of

{Includes 626,000




barrels

of

foreign crude

runs.

112.3

112.5

113.1

106.6

117.7

118.9

126.2

253.942

8,938

24.200-

36.109

32,292

529,585

482,973

416,155

639,272

112,833

373,231
109,173

135,415

597

569

819>

$2,924,150

(19,860,300

(11,411.50a

FROM

of

motor

of

April:

:

coaches

passenger

cars

:
—

MARKET TRANSACTIONS

S.

217.211

MANU¬

NumbeT

U.

102.9.

23,812

trucks

AND

107.4

100.7

12,652

(AUTOMOBILE

motor

RECT

106.3

100.7

213,668

SALES

of

TREASURY

103.2
104.5.

ASSOCIA¬

(units).

FACTORY
S.

102.8

101.8

HOME

(units)

of

OF

108.2

—

(units)

FACTURERS ASSN.)—Month
Total number of vehicles

Net

112.3:

108.1

May:

washers

Number

"

IRONERS

(AMERICAN

—

171,140

110.9

102.T

112.3

105.9

household appliances

China

ironers

June 24

102.9
102.9

101.5

9

dryers

June 24

102.3:

100.4-

102.8

Luggage

of

109.6,

112.6

102.9

of

107.3

103.8

108.6

112.3

sales

105.5

104.5

108.6

102.9

Shoes

sales

108.2
.

other than farm and foods

104.4

Underwear

Factory
Factory

June 24

110.3:
102.8

100.2

wear—

1,068,380

112.0

106.6

110.6

102.4

100.2

caps

983.315

111.2

106.6

110.6

619,651

110.7

103.3

102.4

126,720

Meats
....

and

102.3

109.2

106.6

and neckwear

196,630

June 24

Processed foods
AH commodities

Shirts

Number

commodities
Farm products

93.T

100.2

*

1,116,919

AD

100.2
107.9

96.8

100.2

sales of

1,147,380

97.5

107.9

109.2

Factory

OF

100.5

97.5

_

apparel—•

Floor

124.5

95.3

96.6

_

_

_

Underwear
Hats

102.2
121.7

107.3

—

brassieres

Furs

289,590

100 ):

113.3

101.4

341,590

Commodity Group—

104.0

120.3

-

comforters

38,390

927,350

92.9
113.0

94.6

95.3

and

348,516

917.316

90.7

110.5

apparel__

Aprons

103.3
106.3

112.1

Domestics—

MOTOR

101.3
105.9
108.4

90.5

..

310,126

1.088,456

106.0

110.0

__

_

32,770

748,613

101.8

105.9

_

goods

202,513

621,893

107.4

97.5

106.2

94.6

___

_

wash

235,283

1,214.950

105.6

97.3
106.2

__

__

goods—

62,750

1,018,320

1.665.
1.474

108.0

385,540

IIZZIIIIZZZZIZIjSSS

sales

•Revised.

___

_

_

322,790

52,000

$1,585

*1.741

•1.530

101.1

Children's

June

.June

sales

LABOR—(1947-49
•

139,261

purchases

WHOLESALE

_

_

...

June

Other sales
Total

256,129

•$1,654

105.3

__

_

__

June

Other sales

Short

_

Rayon and silks
Woolens

HOUSEHOLD

Total sales
Total round-lot
transactions for account of members-

Total

_

_

161,380

}ur|e
the floor—

39.3

PRICE

Radios

June
June

sales

Other sales

40.7

4i.a

38.5

(COPYRIGHTED)
_

__

___

furnishings

Piece

RETAIL

Socks

405,510

jMne

♦39.8

♦40.8

1.743

_

—...June

57.93

1.536

Shoes

<

sales

69.60

*58.91

$1,658

_

apparel

Infants'

695,140

sales

Total

$64.55

*71.03

40.0

Clothing including overalls

MEM¬

♦$65.83

40.8

Hosiery
june

268,165
234,435

1:

index

goods

Men's

Men's

sales—

Other sales
Total sales

•209,231

*230,682

38.8

...

^

Shoes

Short sales

ROUND-LOT

210,118

Underwear

EXCHANGE AND ROUND-LOT STOCK
TRANSACTIONS
FOR ACCOUNT OF
MEMBERS (SHARES):

45,329.211

241,743

.99

goods

_

SALES

47,027,590

71.11

1935-39=100

—

OF

Corsets
STOCK

47.141,561

59.60

PUBLICATIONS

Hosiery

•June 14

TOTAL ROUND-LOT

31

(AMERI¬

manufacturing

Blankets
June 14

26,149,240

$462,576,500

CONSTRUC¬

Durable goods
Nondurable goods

Infant's

sales

Dollar

25,800
717,829

June 14

sales

Customers'

March

28,708,163
$514,575,300

$66.32

manufacturing

AS

June 14

sales

shares—Total

Customers*

at

STEEL

STEEL

manufacturing

INDEX

June 14

Odd-lot

Customers'

OF

____.

Composite
June 14

Number

28,452,603

Hourly earnings—

COMMISSION:

value

123

$504,333,900

of May:
(tonnage)—estimated
(tonnage)—estimated

FAIRCHILD

purchases)—

111

93

of

closed

Nondurable

150.2

June 14

Dollar

omitted)

customers—month

Durable goods

INDEX—

100

«TOCK TRANSACTIONS FOR ODD-LOT ACCOUNT
OF ODDLOT DEALERS AND SPECIALISTS ON N. Y. STOCK
Odd-lot

(000's

ultimate

Durable goods
Nondurable goods
All

June 21

"132

ultimate consumers—

Hours—

Production (tons)
Percentage of activity

(tons)

All

486.1

ASSOCIATION:

100

116

Earnings—

3.01

1

♦94

•96

LABOR—Month of May:

3.26

-,July

INDEX

NATIONAL PAPERBOARD

0)1, PAINT AND

1

1

July

COMMODITY

95

FACTORY EARNINGS AND
HOURS—WEEKLY
AVERAGE ESTIMATE —U. S.
DEPT. OF

3.54

July
July

Group

to

STRUCTURAL

Shipments

July

(926-36

2.62
3.17

1

July
—..—

1
1

July

Baa

100

96

adjusted..

96

112

seasonally

TION)—Month

July

Aa

96

May:

INSTITUTE:

INSTITUTE

July

A

of

ultimate customers

FABRICATED
CAN

;

60.39G

1947-1949

—

adjusted

March

of

from

Number

DAILY AVERAGES:

;

Y.

March

July
July

Average corporate

118,113

61,223

115

ELECTRIC

July

U. fi. Government Bonds

N.

Month

—

Kilowatt-hour sales

July

Aaa

OF

]00

unadjusted

July

YIELD

107,355

FED¬

(average

109.24

Industrials Group

113,513

FEDERAL

Sales

114.46

"Unfilled orders

DISTRICT,

17.500c

110.15

received

SALES—SECOND

RESERVE

19.500c

114.46

i'.

96,541

98,402

period

15.000c

109.97

Orders

of

15.000c

112.55

MOODY'S

end

monthly), unadjusted..
daily), unadjusted...

109.97

Utilities

pounds)

at

pounds)

DEPARTMENT STORE
ERAL

2.000

stock

copper

of-2,000

(average

'uly

Public

(tons of

Sales

97.26

Railroad

A.

16.800c

93.63

Group

♦89,479

■

17.000c

114.27

*■

pounds)

2,000 pounds)

Sales

Group

93,024

A.—

106.000c

98.30

MOODY'S BOND

2,000

of

S.

15.000c

98.30

Utilities

U.

May:

14.800c

AVERAGES:

Baa

335.8

(1935-

121.500c

Average corporate

•

U;

of

(tons

in

of

15.000c

A

♦342.4

105,362

INC.

May.

14.800c

July

Public

of

16.000c

Aa

$364,000

51,611,204

COMMODITIES

15.800c

IJ. a. Government Bonds

Railroad

OF

June 25
DAILY

$544,000

94,492,653

YORK—

June 25

PRICES

62,762,259

373,311,922

97,593

NEW

June 25

at
at

Vlinc (East St. Louis) at
MfrRODY'S BOND

24.200c

35.700c

June 25

at

24.200c

June 25

—

$436,074,181

53,123,323

362,893,938

to customers—

(tons
June 25

refinery at
refinery at

(tons

Refined

Refined

Domestic

$416,017,261

55,351

OF

omitted).

BRADSTREET,

production

Deliveries

IClectrolytic copper—
Export

&

1939=100)—Month

M. J. QUOTATIONS):

&

BANK

(000's

PURCHASES

DUN

Crude

ton)

gross

(E.

May 31

CONSUMER

4.131c

June 24

■

63,235,404

89,934,949

OUTSTANDING—FED¬

COPPER INSTITUTE—For month

June 26

lb.)
ton)

(per
gross

13,227,984

64,662,004

331.1

City__

PAPER

RESERVE

of

*

York

New

COMMERCIAL

6,897,800

DUN

—.

25,697,622

14,389,885

$510,000

States

City

of

10,902,001

YMON AGE COMPOSITE PRICES:
Finished

United

York

8,950,000

June 21

INDUSTRIAL)

69,327,616
23,473,164

346,486,791

:

Pacific

—

AND

119,283,493

$408,633,113
62,146,322

...

Central

•7.245,000

kwh.)

000

40,102,936

88,883,606

54,746,260

Central

;

Mountain

INSTITUTE:

(COMMERCIAL

$28,422,880

40,096,944

70,765,478
28,934,927
11,681,194

Atlantic

7,835,000

100

$35,249,093

CITIES—Month

Atlantic

South

—June 21

=

$416,977,000

&

RESERVE

INDEX—FEDERAL

$422,254,000

34,087,156

DUN

—

162,357,000

June 21

(tons)

SALES

33,232,000

84,435,336

VALUATION

May:
England

Outside

(tons)
STORE

ELECTRIC

of

New

June 21

anthracite

Beehive coke
)D!PARTMENT

FAILURES

$307,813,000

June 26

municipal

Federal

*

$305,727,000

June 26

and

COAL OUTPUT (U. S. BUREAU OF MINES):
Bituminous coal and lignite (tons)

)S»ISON

$365,117,000

June 26

Public construction

836,000

48,444,000

$18,042,004
105,940,758

...

PERMIT

BRADSTREET, INC.—215

South

June 26

9,717,000

6,337,000

between

countries

BUILDING

67,181.000

Jun(i 26

——

14,418,000

43,104,000

shipped

West Central

construction

State

foreign

and

12,529,000

10,482,000

36,574,000

stored

101,957,000

7,172,000

$429,710,000

goods

on

$258,666,000

134,932,000

6,500,000
credits.:

$210,951,000

136,303,000

9,295,000

ENGINEERING

construction—

S.

Private

Based

Middle

cars)

Ago

$196,747,000

Dollar exchange

8,806,000

Year

Month

OUT¬

shipments
warehouse

NEWS-RECORD:
Total

ACCEPTANCES

I

Domestic

Domestic

RAILROADS:

Revenue

*XVIL

2,015,000

OF NEW

Total

—

Distillate fuel

WAS NOT

of that date:

Previous

FEDERAL RESERVE BANK
YORK — As of
May 31:

6,649,000

2,208,000

average

(bbls.)

are as

—

6,192,050

6,762,000

22,258.000

output

Kerosene

DOLLAR

Exports
June 21

Gasoline

either for the

are

Month

Ago

of

———June 21

runs

of quotations,

cases

Imports

output—daily

gallons each)

42

tons)_—

(net

Thursday, July 3, 1952

Latest

INSTITUTE:

PETROLEUM

oil

in

or,

.

Year

STANDING

castings

ingots and

AMERICAN

Dates shown in first column

that date,

Equivalent to—
iSteel

.

production and other figures for the

cover

%

steel

.

GUARANTEED

A.—Month

of

IN

503,036

DI¬

SECURITIES

May:

sales

Net purchases

;

-

Volume 176

Number 5130

The Commercial and Financial Chrmicle

...

INDICATES

Securities
Abbott
June

26

Laboratories, Chicago,

filed

not

to

exceed

Now in

Canada

shares of

common

stock

Admiral

each

This

shares

exchange

of

offer

Canadian

will

expire

Manager— Dempsey & Co.,
fective

June

Admiral
on

Aug.

Chicago, 111.

stock

30.

McCarthy

held.
Canada General

Dealer-

(Bache

Statement ef¬

Co.

&

Aegis Casualty Insurance Co., Denver, Colo.
(letter of notification) 75,000 shares of common
stock (par $1).
Price—$2 per share. Proceeds—To ex¬
Office—Suite

Building, 930 17th Street, Denver 2, Colo.
Aegis Corp., Denver, Colo.
★ Allen

(Leon B.)

June 30

market.

of

11

(Willis E.

South Jersey

&

Co., Inc.)

Gas Co

Common
11

stock

Debentures

stock

(Smith, Barney & Co. and The First Boston Corp.)

(par $1).

1952

July 9,

Peerless

company,
108,847 shares by underwriter and 666,171
shares to be reoffered under rescission offer. Price—70

Pittsburgh & Lake Erie RR

cents per share.

Texas Gas Transmission

(Bids

Dennis &

Casualty

noon

CDT)

«»

•

Common

Co

Co., To¬

(Dillon,

Christiansen

Investment Co.

July
of

—To

repay

and

bank loans and

for general corporate

Brown

Postponed

&

Sons,

Baltimore,

Md.

Common

payment value in dollars and the dollar value of the
debentures at maturity to increase proportionately with

Blue

Ridge Natural Gas & Oil Corp
(Whitney-Phoenix Co., Inc.)

Webber,

(Paine,

the Consumers' Price Index for Moderate Income Fami¬

Curtis)

&

lies

July 14,

Offering—

1952
Common

(Harrinan

Large Cities — Combines Adjusted Series (all
Maximum payment value is 150% of original

amount

Ripley & Co., Inc.)

borrowed; minimum payment value is the face
Price—At par (in $100 units).
working capital.
Office —1515 N. Kil-

amount of the debentures.

Proceeds—For

July 15, 1952

of
12-year 3M>% convertible debentures, due July 31, 1964
(convertible through July 31, 1962, into common stock

patrick Ave., Chicago 51, 111. Underwriter—None.

Common

Bailey Selburn Oil & Gas Co., Ltd
(Reynolds

& Co.

Chase Chemical

beginning Sept. 30, 1952, at $136

per share, payable by
of $100 of debentures and $36 in cash), being

<
•

subscription by stockholders of record June 16

Weir,

Young,

McLeod,

and

Cinecolor Corp., Burbank, Calif.
May 9 filed $452,350 of five-year 5% subordinated sink¬

Inc.)

—Common

Co

debentures due May 1, 1957 (with common
offered for sub¬
scription by common stockholders at rate of $1 of de¬

ing fund

Aigeltinger & Co., Vickers Bros.)

Commonwealth Edison
(Bids

10:30 a.m.

stock purchase warrants attached) to be

Bonds

Co., Chicago, 111
CDT)

at rate

of $100 of debentures for each seven shares
held;
rights to expire July 31, 1952. Price—At par. Proceeds
—For advances to subsidiary and associated
companies.

Underwriter—None.

in

items).

Co._

&

Deere

indefinitely.

offered for

Jackscn

pur¬

American Telephone & Telegraph Co.
May 22 filed between $490,000,000 and $510,000,000

surrender

Corp., Chicago, III.

June 27

(letter of notification) $300,000 of 41/k% Chris¬
tiansen plan "inflation provision" debentures, the pre¬

Underwriters—Kidder, Peabody & Co., New York,

Alex.

10, 1952

Huntington National Bank of Columbus—Common

Illinois

May 16 filed 100.000 shares of cumulative prior preferred
stock (par $100) later reduced to 50,000 shares
by amend¬
ment.
Pytee—To be supplied by amendment. Proceeds
poses.

(par 10 cents).

working capital.

of New York.

Co., Inc.)

&

(7/15)

(letter of notification) 291,000 shares of com¬

Price—$1 per share. Proce$&?
Office—Newark, N. J. Under¬
writers—Aigeltinger & Co. and Vickers Brothers, both

—For

Common

Corp

Read

23

stock

mon

Equip. Tr. Ctfs.

(Bids noon EDT)

;•

ronto, Canada.
American

Chase Chemical Co.

June

& Co.)

(Geyer

Proceeds—For prospecting, drilling ex¬

Underwriter—I. Nelson

Pro¬

selling stockholders. Underwriters—Blair F. Claybaugb
& Co., Harrisburg, Pa.

Chicago, Rock Island & Pacific RR._Equip Tr. Ctfs.
Ameranium Mines, Ltd., Toronto, Canada
May 28 filed 2,079,871 shares of capital stock (par $1),
of which 908,845 shares are to be offered to
public by

etc.

Price—40 cents per share.

(par 10 cents).

ceeds—To Robert M. Allender and Judson M. Bell, two

Under¬

writer—None.

penses,

Ltd., Toronto, Canada

Century Natural Gas & Oil Corp.
April 30 (letter of notification) 80,000 shares of common

EDT)

a.m.

Under¬

investment.

Proceeds—For

Cardiff Fluorite Mines,

Common

Burnside

(par $1).

500,000 shares of capital stock

market.

May 22 filed (amendment) 300,000 shares of common
stock (par $1).
Price—$1.25 per share.
Proceeds—For
development expenses and general corporate purposes.
Underwriter—Frank P. Hunt & Co., Inc., Rochester, N.Y..

EDT)

a.m.

Staley (At E.) Manufacturing Co

investment.

filed

writer—Vance, Sanders & Co., Boston, Mass.

& Co.)

Pyramid Oil & Gas Corp

E. & C.
Underwriter—

(Bids

common

Proceeds—For

Reuss

Bonds

(Bids

702,

26

June

Bonds

Georgia Power Co

Fund, Inc., New York

filed 476,000 shares

Price—At

Common

Paine, Webber, Jackson &; Curtis)

Oils, Ltd

June 4

business.

it Canada General Fund, Inc.
Price—At

Devon-Leduc

upon

tributor.

Fund, Inc
and

open-end

come

July 8, 1952

19.

insurance

completion of financing, when
Vance, Sanders & Co., Boston, Mass., will become dis¬

Common

V. Christie & Co.)

(B.

To be¬

Business—Closed-end fund at outset.

New York.

(Glenn), Inc

(McLaughlin,

pand

(7/8)

Inc.

—

July 7, 1952

Corp., Chicago, III.

two

General Fund,

ISSUE

1,350,000 shares of capital stock (par $1).
Price
$10 per share.
Proceeds — For investment in
companies doing business in Canada. Underwriters—
Bache & Co. and Paine, Webber, Jackson & Curtis of

NEW ISSUE CALENDAR

June 2 filed 41,669 shares of capital stock (par
$1) being
offered in exchange for common stock of Canadian Ad¬
miral Corp., Ltd., at rate of one share of Admiral stock
for

REVISED

June 17 filed

the Abbott Laboratories Stock Bonus
of the company under a

PREVIOUS

ITEMS

•

III.

$655,000

ADDITIONS

SINCE

Registration

"participations in
Plan," and 200,000
to be offered to key
employees
stock option plan.

4<T

(41)

(Smith,

Debentures

Jackson & Curtis)

Webber,

(Paine,

for each

two

shares

common

held.

Price—At

Proceeds—To purchase voting control of Cinecolor
(Great Britain), Ltd. and for working capital.
Business—Two-color film process.
Underwriter—None.
Warrants
Will
entitle
holders to
purchase 452,350
par.

Barney & Co.)

General Acceptance Corp.__

Statement effective June 9.

bentures

Debentures

Dow Chemical Co

—

Ampal-American Palestine Trading Corp., N. Y.
June 16 filed $5,000,000 of 15-year 4% sinking fund de¬
bentures due 1967 and $497,000 of 15-year 4%
sinking
fund

debentures

inations
ment

of

and

$100

due

machinery.

culture and

1966.

each).

commerce

Price—At

Proceeds—To

par

(in

purchase

Israel.

(Allen

Suntide

(George

July

Andowan Mines, Ltd., Port Arthur,
Ont., Canada
May 8 filed 500,000 shares of common stock (par $1).
Price—38 cents per share.
Proceeds—For exploratory
drilling and improvement on present holdings.
Under¬

Seaboard

Finance

Rochester, N. Y.

Underwriter—Smith,

Barney

Decca

&

Records, Inc

(Bids

(3:00

Byrd

13

Oil

(Dallas

Underwriter—Axe Securities Corp., New York.

(7/15)

July 23,

Office—Calgary,
Alberta, Canada. Underwriter — Reynolds & Co., New
York, will underwrite 600.000 of the shares in the
Young,

Weir & Co.,

Ltd.,

The

First

program.*

Office—131

Underwriter—None.

Lafayette

St.,

Baton

•

acquisition

of

additional

leaseholds, for
drilling expenses and working capital.
Office—Waynesboro, Pa. Underwriter—Whitney-Phoenix
Co., Inc., New Yprk.
■
.




noon

Edison

Co.,

Chicago,

be

Co.)

Bonds & Preferred

St., Chicago 90, 111.

New York.

market.

on

page

1952
Bonds

invited)

^ Bond Fund of Boston, Inc.
June 26 filed
10,000 shares of
Price—At

(7/15)

Co. Inc.; Glore, For-

Continued

(Bids to

III.

19 filed

EDT)

September 9,

capital

Proceeds—For

stock

(par $1).

investment.

Under¬

writer—Vance, Sanders & Co., Boston, Mass.
•

Ridge Natural Gas & Oil Corp. (7/10)
(letter of notification) 1,175,000 shares of com¬
stock
(par 10 cents).
Price—25 cents per share.

June 23

exploration and

Preferred
&

Arkansas Power & Light Co

being made.

Proceeds—For

(Bi^s

Rouge, La.

Blue

mon

Drexel

Pennsylvania Electric Co

f

* Bettinger Corp., Waltham, Mass.
June 24 (letter of notification) 75,000 shares of common
stock (par $1), plus 75,000 warrants to purchase
3,7,500
shares at $5 per share, to be offered in units of one share
of stock and one warrant. Price—$4 per unit. Proceeds
—For working capital. Office—Gore & Grove
Sts., Wal¬
tham, Mass. Underwriter—Auchincloss, Parker & Redpath, Washington, D. C., and New York, N. Y. Offering
—Now

1952

and

None,

^Community TV Systems, Inc. (Del.), N. Y.
June 27
(letter of notification) 100,000 shares of 6%
cumulative
preferred stock
(par $1.50) and
100,000
shares of common stock (par 50 cents) to be offered in
units of one share of preferred and one share of common
stock. Price—$2 per unit. Proceeds—For general corpo¬
rate purposes.
Underwriter—Singer, Beane & Mackie,

August 5, 1952

Rouge (La.) Water Works Co.
(letter of notification) 6,314 shares of common
Price—$42 per share. Proceeds—For expansion

18

stock.

Boston

—

the New York

on

Exchange.

Adams

Ripley4& Co., Inc.)

Pennsylvania Power & Light Co

Baton
June

1952

July 29,
i

States; and McLeod,
40,000 shares in Canada.

Underwriter

time

to

& Co.; The First Boston Corp., New York. Bids—To
be received up to 10:30 a.m. (CDT) on July 15 at 72 West
Debentures

(Harriman

time

gan

Deere & Co

ceeds—For general corporate purposes.

from

Probable bidders: Halsey, Stuart &

Loeb, Rhoades & Co.;

Carl M.

be sold

due

Common
& Son;

to

(no par).

$40,000,000 first mortgage bonds, series O,
July 1, 1982. Proceeds—For construction program.
Underwriters—To be determined by competitive bidding.

EDT)

Straus, Blosser & McDowell)

1,000,000 shares of class A stock (par $1Price—To be supplied by amendment. Pro¬

United

June

Common

.

shares of common stock

Proceeds—To Mt. Oliver & Staunton

Commonwealth

Co._
Rupe

filed

Canadian).

p.m.

filed 39,475

Co., the selling stockholder.

Stock

Preference

Hammacher, Schlemmer & Co

Price—To be supplied by amendment. Proceeds—For in¬
vestment.
Office —730 Fifth Ave., New York, N. Y.

Bailey Selburn Oil & Gas Ltd.

Coal

shares

EDT)

noon

11

Price—At market.

—Common

:

Utilities Co

Gulf States

Houghton Fund A, Inc., New York, N. Y.
25 filed 1,500,000 shares of capital stock (par $1).

Price—At 99% and accrued interest.

Colorado Fuel & Iron Corp.

Meeds)

&

share).

June

Common
Bissell

(with warrants attached to

writer—Emory S. Warren & Co., Washington, D. C.

1952

(Reynolds & Co. and Laurence M. Marks & Co.)

Axe

June

Corp.)

Bryn Mawr Trust Co
(Laird,

1969

due

debentures

Pro¬
offices and subsidiaries.
Office
—1028 Connecticut Avenue, Washington 6, D. C.
Under¬
per

Preferred
Boston

Washington, D. C.

ceeds—To acquire loan

Co

July 22,

Co., New York.

June

1952

Common

(The First

Credit Corp.,

purchase 3,750 shares of class A common stock at $15
per share and 750 shares of class B common at 25 cents

(Smith, Barney & Co.)

Atlantic Refining Co. (7/16)
June 25 filed 1,000 000 shares of common stock
(par $10).
Price—To be supplied by amendment.
Proceeds—For

expenditures.

nated

Atlantic Refining Co._

•

capital

Citizens

( $1 per share). They are

1, 1955.

April 10 (letter of notification) $125,000 of 6% subordi¬

Common

F. Breen)

16,

stock at par

common

exercisable to May

& Co.)

Dillon

Petroleums, Ltd

agri¬

shares of

Co.)

Debs. & Common

(Eastman,

Trans-Canada

equip¬

&

Refining Co

Underwriter—None.

writer—Frank P. Hunt & Co., Inc.,

—Common

Development, Inc

denom¬

Business—Development of
in

Pubco

Byrd Oil Co., Dallas, Texas

June

cents)

24

filed

of

account

180,000

which

and

shares

100,000

80,000

sold

of

shares
for

(7/22-23)
common

will

account

be
of

stock

(par 25

for company's
certain

stock¬

holders. Price—To be supplied by amendment. Proceeds

—For

working

capital.

Underwriters—Dallas

Rupe

&

Son, Dallas, Tex.; Carl M. Loeb, Rhoades & Co., New
York, and Straus, Blosser & McDowell, Chicago, I1L

Boston

New York

Philadelphia
«

Pittsburgh

San Francisco

Private IVires to all

offices

Chicago

Cleveland

42

42

(42)

The Commercial and Financial, Chronicle

Continued

from

Consolidated

June 25

stock

Inc.

Industries,

(letter of notification) 200,000 shares of com¬

March 17

Proceeds—For con¬
sulphuric acid, fertilizer and wood sugar
Office—174 North Main Street, Salt Lake City,

stock.

mon

ic Electralab,

41

page

plants.
Utah.

Price—$1

share.

per

of

struction

Underwriter—None.

Continental

Underwriter—None.

Continental

Royalty Co., Dallas, Tex.
(letter of notification) 120,000 shares of com¬

March 18
stock

(par $1). Price—$2.50 per share. Proceeds—
purchase royalties and mineral deeds, oil and gas.
Office—740 Wilson Building, Dallas Texas. Underwriter
Southwestern Securities Co. and Hudson Stayart & Co.,
Inc., of Dallas, Texas.
mon

To

Dean Co., Chicago, III.
April 10 (letter of notification) 4,000 shares of common
stock (par $10).
Price—$16.50 per share.
Proceeds—
To

T.

A.

Dean, trustee under the will of J. R. Dean.
Drive, Chicago 11, 111.
Under¬
writer—Boettcher & Co., Denver, Colo.
Office—666 Lake Shore

Deardorf Oil Corp., Oklahoma City, Okla.
April 14 (letter of notification) 2,000,000 shares of com¬
mon stock.
Price—At par (10 cents per share). Proceeds
—For working capital. Office—219 Fidelity Bldg., Okla¬
homa City, Okla. Underwriter—None.

ic Decca Records, Inc. (7/22)
July 2 filed 258,883 shares of capital stock (par 50 cents)
vo'be offered for subscription by stockholders of record
July 22 at rate of one new share for each three shares

•held; tights to expire
by amendment.

on

Aug. 8.

Price—To be supplied

Proceeds—To increase stock

Universal Pictures

interest in

Co., Inc.

Underwriters—Reynolds &
Laurence M. Marks & Co., both of New York.

Co. and

* Deere & Co., Moline, III. (7/14)
June 25 filed

691,276 shares of

stock

common

Price—To be supplied by amendment.

(par $10).

Proceeds—To

re¬

duce bank debt and provide additional
working capital.

Underwriter—Harriman Ripley & Co., Inc., New York.

★ Deere & Co., Moline, III. (7/23)
$50,000,000 of 25-year sinking fund deben¬
tures due July 1, 1977. Price—To be
supplied by amend¬
ment.
Proceeds—To repay bank loahs and for expan¬

June 25 filed

sion program.
New York.

Underwriter—Harriman Ripley & Co. Inc.,

Deerpark Packing Co., Port Jorvis, N. Y.
(letter of notification) 235,000 shares of

(par 10 cents), and $50,000 of debentures due July
Price—At par. Proceeds—For worxing capital.

capital.

Flathead

Peak

Uranium, Ltd. (Nev.)
April 7 (letter of notification) 600,000 shares of common
stock (par one
cent).
Price—50 cents per share.
Pro¬
rehabilitation

and

development program.
St., New York 17, N. Y.
Co., White Plains, N. Y.

Suite 839, 60 East 42nd

—

Underwriter—Gardner &
•

Devon-Leduc Oils, Ltd.,
Winnipeg, Canada (7/8)
May 23 filed $1,000,000 of 10-year 5% convertible sink¬

ing fund mortgage bonds, due June 1, 1962. Price—100%
of principal amount. Proceeds—To
repay bank loans and
for general corporate
purposes.

Underwriter—McLaugh¬

lin, Reuss & Co., New York.
Doman
June

Helicopters, Inc.

18

(letter of notification) 30,000 shares of capital
(par $1), with warrants to be sold to stockholders
Price—$3 per share. Proceeds—For working
capital. Office
545 Fifth Ave., New York
17, N. Y.
others.

—

Underwriter—None.
Dow Chemical Co.
June 24 filed

July 1, 1982.
ceeds

•

held; rights to expire

—

Barney & Co., New York.

Proceeds—For

stock

at

shares

Smith,

Duggan's Distillers Products Corp.
May 29 (letter of notification) 94,807 shares of common
stock
to
be offered first for
subscription by present
stockholders, each purchaser of 100 shares to receive a
of

50

shares

from

the

holdings

of

Charles

A.

Massis, who is the principal stockholder. Price—75 cents
share.

per

Proceeds—For

working capital. Office—248
McWharton St.,
Newark, N. J. Underwriter—None.
Duquesne Natural Gas Co.
May 28 (letter of notification)

shares of

common

stock

(par

subscription by stockholders
of

one

new

held, two

common

new

held and six

common

new

of

maximum

a

of

92,783

cent) being offered for

one

record

share for each five

.tune

13

common

at

rate

shares

shares for each preferred share

shares of

of preference stock held

common

(with

stock for each share

an

oversubscription priv¬
ilege). Rights expire July 15.
Price—$1 per share. Pro¬
ceeds
For working
capital. Underwriters
Bioren &
Philadelphia, Pa.; Hourwich & Co., New York; and
C. T. Williams &
Co., Inc., Baltimore, Md. Unsubscribed
shares (not exceeding
75,000 shares), will be publicly
—-

•

$1.25

per

Corp., Baltimore, Md.
common

(approximately $15

share). Proceeds—To

holder.

Price—$20 per
Underwriters—

share

one

13.

construction.

of

Gar Wood for each

Underwriter—None.
1

•

'

three

Statement

ef¬

v-V-/-

.

Acceptance Corp., Allentown, Pa. (7/15)
June 24 filed $3,000,000 of 15-year 5% convertible sub¬
ordinated debentures due July 1, 1967.
Price—To be
supplied by amendment. Proceeds—To redeem balance
of
15-year 4%
convertible
subordinated
debentures
amounting to approximately $753,000 and for working
capital. Underwriter—Paine, Webber, Jackson & Curtis,
New York.

J. M.

Curley, the selling stock¬

Underwriter—Hornblower




&

Weeks, New York.

on

July

Proceeds—To

construction.

for

each

shares held;

16%

Price—100%

7.

of

loans

bank

repay

Underwriter—Halsey,

Chicago and New York.
*

principal

and for

new

Co.,

Inc.,

&

Stuart

Statement effective June 18.

Huyck

Contract

Corp.

15,500

shares

of

5%

cumulative

Calif.

stock

(par $100) and 50,000 shares of 5% cumulative
convertible preferred stock (par $20) to be offered in ex¬

change for stock of Securities Investment Co. of St. Louis
at

rate

of

1 1/10

shares

of

common

stock

and

share of $20 par preferred stock for each S.I.C.
share and one share of $100 par

as

executrix of the last will

Bechtold,

^industrial Wire Cloth

one-half
common

and

Office—San
'

.

Products Corp.

(letter of notification)
per share.

May 16

Price —$7.50

stock.

deceased).

Underwriter—None.

1,700 shares of common
Proceeds — To Kenneth

Foust, the selling stockholder. Office—3927 Fourth St.,
Wayne, Mich. Underwriter—Manley, Bennett & Co., Detroit^Mich.
Inland Oil Co.

(Nev.), Newark, N. J.

(letter of notification) 599,700 shares of class A*

25 cents).

Proceeds—For drilling and

(par $2),
preferred

convertible

Errol

of

Francisco.

comthdn stock (par

(formerly Industrial

Bancshares Corp.), St. Louis, Mo.
May 26 filed 110,000 shares of common stock

Betchtold,

MacBoyle
testament

Feb/*26

General

Price—50 cents per share.
equipping well and for work-"

ing capital.
Office—11 Commerce St., Newark,
Underwriter—Weber-Millican Co., New York.

N. J.(.

*

Instant. Beverage, Inc., Omaha, Neb.

May„ 6 (letter of notification) 30,000 shares of common
stock; (no par). Price —$5 per share. Proceeds —For
working capital.
Office—2716 Country Club Avenue,"
Omaha, Neb. Underwriter—None.

preferred stock for each

S.I.C. $100 preferred share.

International Technical Aero Services,

Underwriter—None.

offered

of

for

domestic subsidiaries

and

for other corporate

Underwriter—None. Company to act as its own
dealer-manager, with Merrill Lynch, Pierce, Fenner &
Beane as clearing agent. Bids—For about
25,000 shares
purposes.

to be determined

ders

may

Inc.
notification) 300,000 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—For
working capital. Office—International Terminal, Wash¬
ington National Airport, Washington, D. C. Underwriter
—James T. DeWitt & Co., Washington, D. C.
Feb. 15 (letter of

stock (par $5)
subscription by common stockholders
of record July 1 on the basis of one new share for each
15 shares held; rights to expire on
July 23. Price—$21
per share. Proceeds—To repay notes, invest in common
be

by competitive bidding. Probable bid¬
include Lehman Brothers; Merrill Lynch,

Jersey Yukon Mines Ltd., Toronto, Canada
Match'20 filed 200,000 shares of common stock (par

Price—$1

per

share

$1).
Proceeds—For

(Canadian funds).

capital/payments on property account and option agree¬
ments, purchase of machinery and operating expenses.
Underwriter—None.

Johnston Adding Machine Co.,

Carson City, Nev.

Pierce, Fenner & Beane; Blyth & Co., Inc.; Kidder, Peabody & Co. Proceeds from this sale to be used to reim¬

March 5

burse

chase tools and materials and office equipment.

stockholders

entitled

Georgia Power Co.

to

fractional

shares.

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc., Morgan Stanley & Co., The
First Boston Corp., Lehman Brothers,
Kuhn, Loeb & Co.,
Blyth & Co., Inc. and Kidder, Peabody & Co. (jointly);
Shields & Co. and Salomon Bros. & Hutzler

(jointly);

Union

Securities

Corp. and Equitable Securities Corp.
(jointly); Harriman Ripley & Co. Inc. Bids—To be re¬
ceived up to 11 a.m. (EDT) on
July 8 at office of South¬

Services, Inc., 20 Pine St., New York 5, N. Y.

Junction

(7/22)
filed 50,000 shares of cumulative
preference
(par $100). Proceeds—To repay bank loans and

17

stock

construction

program.

Underwriters—To be

deter¬

mined by competitive bidding. Probable bidders:
& Webster Securities
Corp.; Blyth &

Stone

Co., Inc.; Lehman
Corp. (jointly); Glore,
Forgan & Co. and W. C. Langley & Co. (jointly); Lee
Higginson Corp. and Carl M. Loeb, Rhoades & Co. (joint¬
ly). Bids—To be received at noon (EDT) on July 22 at
Irving Trust Co., One Wall Street, New York, N. Y.

City

Feb. 29 ..(letter of

($1

per

Under¬

(Kansas) Telephone Co.
notification) $294,000 of first mortgage

4Y2% bonds, series A, due Feb. 1, 1977 (in denominations
of $1,000 each). Proceeds—To retire bank loans. Under¬
writer—Wachob-Bender Corp., Omaha, Neb.
Kirk

March

Uranium
24

common

For

Corp., Denver, Colo.
of notification) 1,000,00^ shares of
30 cents per share.
Proceeds —
work.
Office — 405 Interstate Trust

(letter

Price

stock.

exploration

—

Building, Denver, Colo.
White Plains, N. Y.

Gulf States Utilities Co.
June

150,000 shares of capital
share). Proceeds—To pur¬

(letter of notification)

Price—At par

stock.

writer—None.

(7/8)

June 6 filed $20,000,000 of first
mortgage bonds due 1982.
Proceeds—For new construction.
Underwriters—To be

Underwriter—Gardner &

Co.,

Lapaco Chemicals, Inc., Lansing, Mich.
March
notes

18

(letter

notification)

of

200,787

(each note convertible into $1

Price—90

each.

cents

and investment.

Proceeds

Office—1800

—

par

For

convertible

class B stock).

working capital

Glenrose Ave.,

Lansing 2,

Underwriter—None.

Mich.

Brothers and Equitable Securities

•

Gyrodyne Co. of America, Inc.
June 16 (letter of notification) 40,376 shares of class A
common
stock (par $1) being offered for
subscription
by all stockholders of record July 3 on a share-for-share
basis; rights to expire on July 10. Price—$4.25 per share.
Proceeds—For working capital.

Office—Flowerfield, St.

James, L. I., N. Y. Underwriter—None.
Hamilton

Land Co.,

Reno, Nev.

April 14 (letter of notification) 300,000 shares of capital
stock.

Price—At par (10 cents per share).

acquire

ore

Proceeds—To

dumps and for oil leases and royalties.

fice—139 North Virginia
Nevada Securities Corp.

Hecla

Eastern Stainless Steel

per

of

United.

new

St., Reno, Nev.

Of¬

Underwriter-

share.

April 7 (letter of
notification) 4,000 shares of
stock (par $5).
Price—At market

amount.

General

—

'

offered at

rate

of

fective June

for

bonus

July 16.

on

expire

to

(F. C.) & Sons
May 16 filed 60,000 shares of cumulative convertible
Kidder, Peabody & Co. and Merrill Lynch, Pierce, Fen¬
ner & Beane, both of New York.
_prior preferred stock (.par $50). Price—To be supplied
by amendment. Proceeds—To redeem $5 class B pre¬
Front Range Uranium, Inc., Denver, Colo.
ferred stock and for working capital.
Business — Me¬
June 2 (letter of notification) 500,000 shares of common
chanical fabrics for industry and blankets and apparel
stock (par one cent). Price—50 cents per share. Proceeds
cloth. Underwriter—Kidder, Peabody & Co., New York.
—For exploration
and development expenses. Under¬
Offering—Postponed indefinitely.
writer—Vickers Brothers, New York.
Idaho Maryland Mines Corp.
Gar Wood Industries, Inc., Wayne, Mich.
June 6 filed 200,000 shares of common stock (par $1).
Price—At
market
May 23 filed 95,460 shares of common stock (par $1) to
(on the San Francisco Stock Ex¬
be offered in exchange for United Stove Co. common
change). Proceeds—To selling stockholder (Gwendolynshare.

due

Price—To be supplied by amendment. Pro¬

rights

•

shares

stockholders of record June 17 at rate of $50 prin¬

mon

cipal amount of debentures

share for each five

new

a

Lighting & Power Co.
May 29 filed $14,258,650 of 3V4% convertible debentures
due June 30, 1967, being offered for subscription by com¬

Corp., St. Petersburg, Fla.
June 6 filed 309,360 shares of common stock (pan
$7.50)
being offered for subscription by common stockholders
one

Underwriter—None, sales to be
including officers and directors,
commission of 10 cents per share sold.

development, etc.
through agents,

Houston

Power

of record June 30 at rate of

Thursday, July 3, 1952

787,736 shares of common stock (par 10
Prioe—50 cents per share. Proceeds—For min¬

who will receive

Co., Monroe, Wash.

Price

Florida

.

Inc., Seattle, Wash.

Placers,

made

600,000 shares of common stock (par
— 50
cents per share, Proceeds — For
equipment and drilling purposes. Underwriter—None.

ern

(7/15)

$100,000,000 of convertible debentures

For expansion
program. Underwriter

—

Underwriter-

determined

stock
and

Petroleum

Mass.

.

filed

9

cents).

ing

filed

21

10 cents).

stocks

Office

St., Cambridge,
Sheeline, Boston, Mass.

Paul D.

to

mon stock
(par 10 cents).
Price—$1.25 per share. Pro¬
ceeds—To repay RFC loan of
$41,050 and for working

ceeds— For

First

General Public Utilities Corp.
June 4 filed 531,949 shares of common
com¬

June

common

•

March 21

Devil

Kixon

50,000 shares of

1962.

Office—105

March

Oil

Co., Houston, Tex.
May 14 filed $26,000,000 of interests in The Thrift Plan
for employees of this company, together with 400,000
shares of capital stock (par $5) purchasable under terms
of the plan.

1,

Inc., Cambridge, EVfass.

(letter of notification)

.

Jan.

17

stock

$18

notification)

(par 25 cents).

per

selling
non,

Mining Co., Wallace, Ida.
(letter of

share).

shares

Price—At market

Proceeds—To

stockholder.

New York.

3,000

Mrs.

M.

of

capital

(approximately
K.

Pollard, the

Underwriter—Thomson

&

McKin-

LaPointe-Plascomold

Corp.

May 29 filed 230,485 shares of common stock (par $1), of
be offered for subscription
by stockholders of record June 18 at rate of one share
which

for

190.485

each

shares

share held,

are

to

and 40,000 shares

are

to be issued

exercise of stock options by officers and employees.
Price—$2.75 per share. Business—Manufacture of televi¬

upon

sion

accessories.

Lawton

Underwriter—None.

Oil

Corp., Magnolia, Ark.
June 9 (letter of notification) 100,000 shares of common
stock (no par).
Price—$2.25 per share. Proceeds—For
exploration work. Underwriter—W. R. Stephens Invest¬
ment Cp., Inc., Little Rock, Ark.

\ic

Leidy Prospecting Co., Renovo, Pa.
27 (letter of notification) 2,000 shares of capital

June

stock

(par 10 cents).

share).

Price—At market (about $1.62 per
Proceeds—To Harry Caldwell, the selling stock¬

holder.

Underwriter—None, but Josephthal & Co., New
York, will act as broker.
ic Loven Chemical of California, Newhail, Calif.
June 24 (letter of notification) 100,000 shares of capital
stock to be offered for subscription by present stockhold¬
ers
at rate of one new share for each 7% shares held.
Price—At

capital.

par

($1 per

share).

Proceeds—For

Office—244 S. Pine St., Newhail, Calif.

writer—None.

working
Under¬

-

Number 5130

Volume 176

.

.

The Commercial and Financial Chronicle

,

(43)
^ M J M & M Oil Co., San Francisco, Calif.
(letter of notification) 364,695 shares of capital
subscription to present stockhold¬

June 25

stock to be offered for
ers

at rate of one share for each seven shares held. Price

—78 cents per

ties

share. Proceeds—To acquire new proper¬
development work in the Mountain States
including the Williston Basin and the vicinity of

and

area,

the

for

Santa

Francisco

Clara Valley.
Office—15 Sansome
4, Calif. Underwriter—None.

St.,

San

cents

share).

Proceeds—To T. E. Myers, the
selling stockholder.
Office—15 South First Street, Ge¬
neva, 111.
Underwriter—Reynolds & Co., New York,
and Chicago, 111.
per

Price—At par.
tor

Jockey Club, Albuquerque, N. M.
common stock

(par $1,000).

Proceed—io construct racing plant and

working capital.

Porter

Miller

Underwriter—None, but Dr. Frank

Los

ot

Angeles,

Calif., will be "engaged
public." Statement effective
April 5 through lapse of time. Amendment necessary.
to sell the securities to the

North
June

Magar Home Products, Inc., Geneva, III.
May 22 (letter of notification) 3,000 shares of common
stock (par one cent).
Price—At market (approximately
75

New Mexico

March 17 filed 1,255 shares of

American Acceptance Corp.

18

shares

of

General

class

A

stock

Finance

the preferred stock

be

to

Corp.

offered

preferred

in

and

exchange for
stock,

common

share-for-share basis, and three
shares of North American class stock
(or $9 per share in
on

a

cash for each General common share.

Martin

(Glenn L.) Co.
May 29 filed 761,859 shares of

common stock

(par $1) to

be offered for subscription
by stockholders of record on
June 30 (other than Glenn L. Martin) at the rate of nine
shares for each 10 shares held; rights to

expire

22.

Price—$6

per

on

July

share. Proceeas—For partial repayment

of 4%

convertible notes. Underwriter—None.
effective June 23.

Statement

if Mason Plan, Mobile, Ala.
June

23

tures.

(letter of

$300,000

of 6%

deben¬

Proceeds—To expand oresent fa¬
cilities. Office—115 St. Michael
St., Mobile, Ala. Under¬
writer—None.

Markets, Los Angeles, Calif.
(letter of notification) 5,000 shares of preferred

stock

(par $50) and 5,000 shares of common stock (no
par) to be offered in units of one preferred and one
common share.
Price—$60 per unit. Proceeds—To pay
expansion costs. Office—4383 Bandini Blvd., Los An¬
geles, Galif. Underwriter—None.

McCarthy
June

12 filed

(Glenn), Inc., Houston, Tex.
10.000,000 shares of

Price—$2 per share.

—

(oar 25

stock

common

Proceeds

(7/7)

For

drilling of

exploratory wells, acquisition of leases and for general
corporate purposes.

Underwriter—B. V. Christie & Co.,

Houston, Tex.

if McGeary-SmiOi
June 25

Inc.

(letter of notification)

(par $1).

•

;

—

Office—1905

purposes.

Fairview

Ave., N. E., Washing¬
ton 2, D. C. Underwriter—Ferris &
Co., Washington, D. C.
if Mead Corp., Dayton, Ohio
June 25 (letter of notification) 3,700 shares of common

stock (no par). Price—At the market.
Proceeds—To the
-Talbott Corp., the selling stockholder. Office
118 W.
First St., Dayton 2, O. Underwriter—None.
—

Metals & Chemicals
Corp., Dallas,
13 filed 200,000 shares of

•June

capital

cents)

of

public.
and for

i

which

190,000

shares

will

be

stock

(par

offered

to

10
the

Price—$3 per share. Proceeds—To repay debt
development of mine properties. Business—Min¬

9

(letter of notification) 12,500 shares of common
stock (par $1). Price—$3.25
per share. Proceeds—To W.
Ray Johnston, the selling stockholder. Underwriter—F.
C. Masterson & Co., New York.

Price—At

bonds

pansion. Office—208 Third Ave., South,
Seattle, Wash.
Underwriter—National Securities Corp., Seattle, Wash.*#^
Morrow

(R.

D.)

Co., Inc., Pittsburgh, Pa.
May 5 (letter of notification) 10,000 shares of 5%

the

on

New

York

Stock

Peerless Casualty Co.,
Keene,

N. H.

(7/9)

July 1 at the rate of 5/12ths of a share for each
held; rights to expire on July 21.
Price — To be
supplied by amendment. Proceeds—For working capital,

share

—

unsubscribed shares.

if Seaboard Finance Co., Los Angeles, Calif.
(7/16)
26

stock

(no

filed

150,000

shares

value

for additional

working capital.

Underwriter—Graham &

Co., Pittsburgh, Pa.
Motion Picture

May 22 (letter of notification)

20,487 shares of common
stock (no par), being offered for
subscription by stock¬
holders of record May 22 at rate of one share for each
four shares

held; rights to expire

on

—

distribution facilities.

Underwriter—Howard, Weil, La-

bouisse, Friedrichs & Co., New Orleans, La.
Mt. Vernon (O.)
Telephone Co.
June 2 (letter of
notification) 2,000 shares of 5% cumu¬
lative preferred stock to be offered
initially to present
.preferred stockholders. Price—At par ($100
per share).
Proceeds—To repay temporary bank loans.
Office—
.15 E. Gambier St., Mt.
Vernon, O. Underwriter—None.

Mullins

Manufacturing Corp., Salem, Ohio

June 9 filed 82,000 shares of
-be
issued
to
certain

common

supervisory

stock option

plan.

stock

Y.

100,000 shares of capital stock

market.

Proceeds—For

(par $1).

investment.

Under¬

^Pennsylvania Electric Co., Johnstown, Pa. (8/5)
June 25 filed $9,500,000 of first
mortgage bonds due 1982
and

45.000 shares of preferred
stock, series F

Proceeds—For

construction and to repay

new

(par $100).

bank loans.

Underwriters—To be determined by competitive
bidding.
Probable bidders: (1) For
bonds—Halsey, Stuart & Co.

Inc.; Kidder, Peabody & Co.; Union Securities Corp. and
White, Weld & Co. (jointly); Kuhn, Loeb & Co., A. C.
Allyn & Co., Inc., Equitable Securities Corp., The First
(jointly); Smith, Barney & Co. (2) For preferred—Smith,
Barney & Co. and Kidder, Peabody & Co. (jointly);
W. C. Langley & Co. and
Glore, Forgan & Co. (jointly);
Kuhn, Loeb & Co., Lehman Brothers and Salomon Bros.
& Hutzler

(jointly);' Harriman Ripley & Co., Inc.; Union
Securities Corp.; The First Boston
Corp. Bids—To be
received by company at 67 Broad
up to noon

employees

&

Research

under

a

5

stock

Corp.

—

writer—National Securities & Research
Corp.

Mining Co., Salt Lake City, Utah
notification) 600,000 shares of common

(par 5 cents). Price—10 cents per share.
For expansion of
operations.
Underwriter

Brokerage Co., Salt Lake City, Utah.




St., New York 4, N. Y.

Aug. 5.

on

Finance Corp.
(letter of notification) 60,000 shares z-i commoD
(par $1) and 30,000 warrants to purchase 30,000

of two

stock (warrants exercisable at
$7.50
prior to April 1, 1954).
Each purchaser

common

share

per

on

or

shares will receive

common

$5 per share.
Oklahoma

warrant.

one

Price—

Proceeds—For working capital.

City, Okla.

Office-

Underwriter—George F. Breen,

New York.

New York.

Shawmut

Association, Boston, Mass.
(letter of notification) 200 shares of common
(no par). Price—At market
(approximately $19
per share).
Proceeds—To Walter S. Bucklin, the
selling
stockholder.
Underwriter—Paine, Webber, Jackson &
Curtis, Boston, Mass.
April 30

if Shawmut Association, Boston, Mass.
June 25 (letter of
notification) 600 shares of common
stock (no par).
Price—$19 per share. Proceeds—To sell¬
ing stockholder.
Underwriter—Paine, Webber, Jackson
& Curtis,
Boston, Mass.
Signal

Mines, Ltd., Toronto, Canada

March 17 filed 600,000 shares of

Proceeds
—

Cromer

stock of which

common

500,000 shares are for account of
company.
Price—At
($1 per share).
Proceeds—For exploration and de¬

par

Office—E. Main St., Jewett City,

Power Condenser & Electronics

Conn.

Under¬

Corp.

May 2 (letter of notification) $285,000 of 10-year 5%
income notes due May 1, 1962, and
11,400 shares of com¬
mon stock (par $1), to be sold in units of one
$1,000 note
and

30 shares

of

Proceeds—For
Boston, Mass.
Pubco

June
of

stock.

common

filed

common

Price—$1,000

working capital.

Office
Underwriter—None.

Development, Inc.

25

subscription

60

—

per

unit.

State

St.,

(7/15)

warrants

for

605,978

shares

stock

(par $1) to be issued to holders of
presently outstanding stock purchase warrants at rate of
one

of

new

warrant for

common

stock

additional share for each share

one

owned

on

the

record

date.

The

new

exercisable at $1 per share between Jan.
1,
1955 and March 31, 1955. Price — To be
suoplied by
amendment.
Proceeds—To retire
are

existing indebtedness

and

purchase additional oil and gas leases.
& Co., New York.

Underwriter

—Allen

(par $100).
new construction and to
repay short-term
borrowings.
Underwriter—To be determined by com¬
petitive bidding.
Probable bidders: The First Boston
Proceeds—For

Corp.: Kidder,

Peabody & Co. and Blyth & Co., Inc.
(jointly); Harriman Ripley &5 Co., Inc. Bids—Only one
was

dend

received

June 23, viz: 100.02 for

on

5.60% divi¬

a

by Kidder, Peabody & Co. and Blyth & Co., Inc.
was rejected.
Statement effective June 16.

This bid

May 28 filed

173,136

shares

of

common

being offered for subscription by
rate of

June
share.

17;

one

new

with

share for each

rights

to

Proceeds—For

expire

new

Allen & Co., New York.

July

stock

(par $5)

stockholders

shares held

8.

construction.

Price—$8

on

per

Underwriter—

Statement effective June 17.

Pyramid Oil & Gas Corp. (7/8)
June 5 (letter of notification) 162,000 shares of common
stock (par 10 cents). Price—$1.50
per share. Proceeds—
development

of

oil

and

gas

holdings.

Office—825

First St., West Palm Beach, Fla. Underwriter—Willis E.
Burnside & Co.,vInc., New York.
St. Louis Midwest

Co., St. Louis, Mo.

May 29 filed 55,000 shares of
be offered

to

management

a

limited

and

affairs

common

group

of

capital.

Underwriter-

(7/8)

154,230 shares

of common stock (par
$5j.
Proceeds—To The United Corp., the
selling stockholder.
Underwriter—To be determined by competitive
bidding
Probable bidders:
Kidder, Peabody & Co. and Allen &
Co.
(jointly); Lehman Brothers and Bear, Stearns & Co.
(jointly); Merrill Lynch, Pierce, Fenner & Beane and

White, Weld & Co.
Bids—To

be received

at 70 East 45th

tive June

(jointly); The First Boston Corp.
to

up

11

a.m.

(EDT)

on

July 8

Street, New York, N. Y. Statement effec¬

24.

Southern Co.,
Wilmington, Del.
May 16 filed 1,004,510 shares of common stock
(par $5)
being offered by company for subscription
stockholders of record June
each 16 shares
per

share.

sidiaries

by

19 at rate of

June

on

common

share for

held; rights to expire July 10. Price—$12.75

Proceeds—To

increase

in furtherance of

their

investments "in

construction

Underwriter—Lehman Brothers, who
sue

one

18.

Statement

effective

sub¬

programs.

awarded is¬

were

June 4.

Southern Discount
Co., Atlanta, Ga.
June 17 (letter of

notification) $100,000 of 5% deben¬
Price—At par. Proceeds—For
working
Office—220 Healy Bldg., Atlanta, Ga.

tures, series F.
capital.

Southwestern Porcelain Steel
Corp.,
Sand Springs, Okla.
June 11 (letter of
notification) 6,000 shares of capital
stock (par $10).
Price—$12 per share.
Proceeds—For

Staley

Underwriter—Walter
(A. E.)

F.

Hurt, Tulsa,

Manufacturing Co.

Okla.

(7/8)

June 17 filed $12,000,000
sinking fund debentures due
July 1, 1977. Price—To be supplied by amendment. Pur¬
pose—To retire 3% debentures due 1959 and for
general

corporate purposes. Underwriters—Smith,
and The First Boston
Corp. of New York.

Barney & Co.

Storer Broadcasting Co.
May 19 filed 215,000 shares of common stock (par $1),
of which 200,000 shares are
being sold by certain selling
stockholders (170,000 to be offered
publicly and 10,000 to
certain employees; and 20,000 shares to the underwriters
under option agreement) and the
remaining 15,000 shares
being reserved for sale by company to certain employees.
Price—Of first 200,000
shares, to be supplied by amend¬
ment; of 15,000 shares by company, $10.62^ per share.

Proceeds—For general corporate purposes. Underwrit¬
ers—Reynolds & Co., New York, and Oscar E. Dooly &
Co., Miami, Fla. Offering—Temporarily postponed.
•

Suntide Refining Co.

(7/15)

June 23

will

offered

*

*

*

filed $7,000,000 of

19-year debentures due July
1, 1982, and 1,200,000 shares of common stock (par one
cent) of which the debentures and 700,000 shares of stock
be

publicly in

units

of

$50

of debentures

to a
group of selected persons and 280,000 shares will be sold
to the underwriter. Price—For
units, to be

supplied by

amendment and for 500,000 shares of stock.
$2 per share.
Proceeds—To finance operation of
refinery. Underwriter

—Eastman, Dillon & Co., New YorkM
if Tennessee Gas Transmission Co., Houston, Texas
June
20
(letter of notification)
approximately 6,000
shares of common stock (par
$5). Price—At market. Pro¬
ceeds—To be distributed to
the company's

in

writer

—

N. Y.

connection

certain holders of record of
common

stock

as

of June 20,

with

20% stock dividend.
Under¬
Stone & Webster Securities Corp., New
York,
.

if Texas Drilling Co., Houston, Tex.
June 24 (letter of notification) 999,000 shares of common
stock (par one cent).
Price—30 cents per share.
Pro¬
ceeds—To repay lease cost and for organization
expenses
and working capital.
Office — 514

Bldg., Houston, Tex.
Co., Inc., New York.
Texas
June

Gas

City National Bank
Underwriter—Dansker Brothers &

Transimssion

Corp.

(7/9)

19

filed 350,000 shares of common stock (par
Price—To be supplied by amendment. Proceeds—To

$5).
re¬

bank loans and for expansion program. Underwriter
—Dillon, Read & Co. Inc., New York.

pay

stock

of persons

Midwest

working

outstanding

common
seven

and

Jersey Gas Co.

June 6 filed

1952,

•

For

South

costs

and five shares of stock,
220,000 shares will be sold

Public Service Co. of New
Hampshire
May 28 filed 50.000 shares of preferred stock

bid

•

expansion.

if Plastic Wire & Cable Corp.
June 25 (letter of notification) 10,000 shares of common
stock (no par) to be sold to holders of stock
purchase
warrants.
Price—$6 per share. Proceeds—For working

at

June 26 filed 40,000 shares of First
Mutual Trust Fund.
Price—At market. Proceeds
For investment. Under¬

stock

(EDT)

Petroleum
Feb.

j

(par $1), to

Underwriter—None.

Securities

Nev-Tah Oil &
June 12 (letter of

Price—At

N.

Public Service Co. of New Mexico

if Muskogee Industrial Finance Corp. *
June 24 (letter of
notification) $200,000 of indebtedness
certificates, to be issued to liquidate outstanding loans.
Underwriter—None.
if Rational

filed

writer—None.

June 30.

Price—$8
per share to stockholders and $8.50 per share to
public.
Proceeds
To expand
company's film production and

per

Northeastern Securities Ltd.

B%Vegh Mutual, Fund,

25

warrants

Advertising Service Co., Inc. (La.)

convertible

$35

velopment

June

cumu¬

preferred stock.
Price—At par ($10
per share).
Proceeds—For financing of Master TV an¬
tenna systems in apartment houses on a lease
basis and

of

preferred
share). Price—To
supplied by amendment.
Proceeds—To reduce cur¬
rent indebtedness. Underwriter—The
First Boston Corp.,
par—stated

be

Lnueiwriter—Geyer & Co., inc., New York.

•

lative convertible

—

time

writer—None.

10-year
(in denominations of $500 and $1,000
10,000 shares of common stock (par $10).
par.
Proceeds—For working capital and ex¬

convertible

and

•

capital.

Monty's Stores, Inc., Seattle, Wash.
.May 16 (letter of notification) $100,000 of 7%
each)

to

June 20 filed 100,000 shares of common stock
(par $5) to
be offered for
subscription by common stockholders of

shares of

Tex.

ing in Costa Rica. Underwriter—Beer & Co., Dallas, Tex.
Monogram Pictures Corp., Hollywood, Calif.
June

time

Boston Corp., Shields & Co. and R. W.
Pressprich & Co.

Laboratories,

50,000 shares of common
Price—$2.50 per share. Proceeds
For
purchase of equipment, expansion and general
corporate

stock
'

from

Hugo F. Urbauer and Ina C. Urbauer, deceased.
G. H. Walker &
Co., St. Louis, Mo., for

★ PelL

Mayfair

cents).

offered

Exchange. Price—At the market. Proceeds—To Barney
Balaban, President, and Tillie Balaban, his wife, who
are the
selling stockholders. Underwriter—None.

record

notification)

Price—At par.

June 3

if Paramount Pictures Corp.
June 26 filed 38,500 shares of common stock
(par $1) to
be

wills of

Underwriter

stock

.

•

Co., Inc., St. Louis, Mo. Price—To be supplied by amend¬
Proceeds—To purchase 55,000 shares of Midwest
Piping common stock owned by the trustee under the
ment.

June

(letter of notification) 14,010 shares of 60-cent
series preferred stock
(par $5) and 24,543

dividend

43

(par $1) to

active in the

Piping

&

Supply

Continued

on

page

44

44

The Commercial and Financial Chronicle

(44)

Continued from page

American President

43

Genera! Production Co.

Texas
June

4 filed 2,SOU,000 shares of common stock (par 50
cents). Price—To be supplied by amendment. Proceeds—
To buy property for oil prospecting.
Office—Houston,
Tex. Underwriter—To be named by amendment (prob¬

announced Riggs

was

the government and the Dollar
iryterests. If stock is
sold for $14,000,000 or more, the ,stock would be divided

not

equally between the two parties? the Government to then
dispose of its holdings. Registration—Expected within

ably Hemphill, Noyes, Graham, Parsons & Co., New York.
Offering—Tentatively postponed.
Thor

Corp., Chicago, Id.
June 11 (letter of notification) 13,400 shares of capital
stock (par $20) to be issue 1 in connection with stock

Arkansas

share.

Proceeds—For

working capital. Office—2115
111. Underwriter—None.

54th Avenue, Chicago,

S.

Tiger Tractor Corp., Keyser, W. Va.
May 13 (letter of notification) 180,000 shares of common
(par 10 cents). Price--$1 per share. Proceeds—
For working capital. Office—East and Mozelle St., Key¬
ser, W. Va.
Underwriter—None.

(Calif.)
issue and sell in
October about $8,000,000 to $9,000,000 of first mortgage
bonds, series H, due 1982. Proceeds—For repayment of
bank loans and construction program. Underwriters—To
be determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Paine, Webber, Jackson &
Curtis; White, Weld & Co.

Underwriter—None.

Trans-Canada Petroleums, Ltd. (Canada)
(7/15)
May 1 filed 1,000,000 share-} of common stock (par $1)

April

Uarco

common

stock

(par $10).
Price—At market (estimated at $20.50
per share). Proceeds—To George Buffington, the selling
stockholder.

eral

Chicago, III.
(par $5), is¬

stock

(par 50 cents).

Price—At market.

as

(7/22)

announced stockholders will vote

was

increasing authorized
shares

50,000

common

stock

July 15
(par $5) from

shares.
The additional 20,000
shares would be offered for subscription by common
stockholders of record July 9 on a 2-for-5 basis. Offer
is expected to be made on July 22, with rights to expire
on Aug. 22.
Price—$25 per share. Proceeds—To retire
50,000 shares of 4J/2% cumulative preferred stock (par
$5), and for working capital. Underwriter—Laird, Bissell & Meeds, Wilmington, Del.

common

Proceeds—To

sellirg stockholder. Underwriter
—None, but Francis I. du Pont & Co., New York, will
•

agent.

Washington Gas Light Co.

12 filed 104,915 shares of common stock
(no par),
being offered for subscription by common stockholders
of record July 1 at rate of one share for each seven

to

tion.
and
•

California

May 8 it

70,000

construc¬

Underwriters—The Fi-r« Boston Corn., New
York,

Johnston, Lemon & Co., Washington, D. C.

West

Consolidated Gas,
Baltimore
Dec. 24 it

being offered, for subscription by stockholders of
Virginia Water Service Co. (parent) of record
share for each

common

5 Vz

of

common

stock of

stock

con¬

parent; and

shares for each $5

an

was

Carolina

May 19

cf Shea & Co.

stock.

<

Central
March

Zeigler Coal & Coke Co., Chicago, III.
June 19 (letter of notification)
7,000 shares of common
stock (par $10). Price—$13.25
per share. Proceeds—To
R. M.
Rogers, trustee for Nancy Leiter Clagett and
111.

Fall

Natural Gas Corp.

&

line

of

4

Hudson

it

was

Gas

&

reported

Electric

Corp.

Probable bidders: Halsey, Stuart & Co. Inc.: White.

plans the sale this
mortgage bonds. Latest

about

in

March,

1951

St., Chicago,
Co., Chicago, 111.

May 15 stockholders increased authorized

shares.

Prospective Offerings

sary

common

stock

announced that

common

writer—Watl in g

stock to

Lerchen

&

5% stock dividend. Under¬

Co.,

Detroit, Mich.

Allis-Chalmers Manufacturing Co.
May 12 it was reported company may do
nature

of

which

has

not

yet

Pro-

authorized

common

Ouo shares

and

approved

a

warehouse facilities.
stadt &

been

^WIIH
a

equipment and terminal and
Traditional Underwriter—F. Eber-




neces¬

over

the Cin¬

$7,600,000, of which $6,000,000 will be raised through the sale of bonds and by
issue of capital stock of which the
purchase of about $1,900,000 has been pledged. Underwriter—For bonds: Hal¬
sey, Stuart & Co. Inc., Chicago and New York..

determined.

waiver of preemptive
rights
additional shares. Proceeds

Co., Inc., New York.

financing

of $8,500,000.

June 5 this corporation was formed td take
cinnati Enquirer for the sum of

financing,

proposal to increase tiic
stock (par $5) .from
330,000 to 430,-

to subscribe for
any of the
—To finance purchase of

additional

excess

Cincinnati Enquirer, Inc.
some

Underwriter—Blyth & Co., Inc.
American Barge Line Co.
May 27 stockholders Epproveu

that

will be in

July 9 for the purchase from it of $2,400,000 equipment
trust certificates, series N, to be dated Aug. 1, 1952, and
to mature in 24
equal semi-annual instalments from Feb.
1, 1953 to and including Aug. 1, 1964. Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler;
Bear, Stearns & Co.

1,000,000 from 750,000 shares,

as a

oeedki—For additional
working capital.

the

con¬

being given to the possibility of equity
On Feb. 18, stockholders voted to increase the

and to issue 37,500 shares

estimated

year

Rock Island & Pacific RR. (7/9)
Bids will be received by the company at Room 1136, La
Salle Street Station, Chicago 5, 111., up to noon (CDT) on

was

financing.
authorized

Chairman,

It is

this

it Chicago,

Aoroqulp Corp;
sideration

First Boston

Weld
(jointly); Hairufian

Corp.

Ripley & Co., Inc. and Alex. Brown & Sons (jointly).
and John C.
Legg & Co (jointly) handled latest common stock fi¬
nancing, while White, Weld & Co. handled last preterxed

stock sale.

Proceeds—For

construction.

new

Copperweld Steel Co.
April 30 stockholders approved
authorized

the

indebtedness

a

from

proposal to increase
$5,000,000 to $15,-

(none presently outstanding) and the author¬
preferred stock (par $50) to 137,727 shares from

000,000
ized

shares,

which

are

all

outstanding.

Traditional

Underwriter—Riter & Co., New York.

.

—

Kidder,

Peabody

&

Co.

and

Mitchum,

Tully & Co.
Duquesne Light Co.
May 13 it was announced stockholders will vote July 8
increasing authorized preferred stock (par $50) from

on

800,000 shares to 1,000,000 shares. Underwriters—To be
by Competitive bidding. Probable bidders:

determined
First

Boston

Corp.; Kuhn, Loeb & Co. and Smith,

Barney & Co. (jointly); Lehman Brothers; Kidder, Pea¬
body & Co., Merrill Lynch, Pierce, Fenner & Beane and

White, Weld & Co.

(jointly).

European American Airlines, Inc.
June 11 it was reported company plans to raise an addi¬
tional $400,000 of equity capital.
An issue of $200,000
of capital stock was just recently placed privately at
$7.50 per-share. Underwriter — Gearhart, Kinnard &
Otis, Inc., New York.
Food Fair Stores, Inc.
was announced stockholders will vote Aug. 19
increasing authorized indebtedness from $12,wu0,000

on

to

and to increase the authorized common
2,500,000 to 5,000,000 shares. No immediate

$25,000,000

stock from

issuance of either debt securities

or

of

common

stock is

contemplated. Traditional Underwriter—Eastman, Dillon
& Co., New York.

Glass Fibres, Inc.
April 7 stockholders voted to increase authorized com¬
stock from 1,000,000 shares (approximately 938,000
shares outstanding) to 1,250,000 shares to provide addi¬
tional stock for future expansion needs. Traditional Un¬
mon

derwriter—McCormick & Co.,

Globe-Wernicke
March

Citizens Utilities Co.
June 16, Richard L. Rosenthal announced that
company
anticipated doing some permanent financing in 1952,
and it was planned that this would be in the form of

mortgage bonds and debentures. No
nancing is presently contemplated.

time

Chicago, 111.

Co.

stockholders

26

common

stock fi¬

to

increased

authorized

common

time

dividends

stock

and

the

giving of stock
Underwrite!*
—May include Westheimer & Co., Cincinnati, O
Previ¬
ous public financing handled by W. E. Hutton & Co. and
W. D. Gradison & Co., also of Cincinnati.
rights

or

warrants to present stockholders.

Haloid Co.
18

it

was

reported

company may

issue of convertible preferred

sell this Fall

an

stock. Traditional Under¬

writer—The First Boston Corp., New York.

it Hammacher, Schlemmer & Co.
Bids

Central Maine Power Co.

(par $10) from 2,500,000 shares to 3,250,000 shares and
preferred stock (par $100) from 300,000 shares to 330,000

Jan. 4, Don T. McKone,

Co. and The

June

company

$5,500,000 first
bond financing was
done privately
through Kidder, Peabody & Co.

East Van Buren

Underwriter—Farwell, Chapman

issue and sell

during 1952 to an amount suffi¬
cient to raise approximately $22,000,000. Underwriters—
For bonds to be determined by competitive bidding.

shares (par $5) to 600,000 shares (par
$7), placing the company in a position to consider from

—

•

Thomas Leiter. Office—21

stated that company plans to

both stocks and bonds

stock from 300,000

sought FPC authority to a new 40-mile
estimated to cost $3,150,000, to be
financed by the issuance of $1,600,000 first mortgage
bonds, $750,000 15-year debentures and $800,000 common
stock. Traditional Underwriter
R. S. Dickson & Co.,
Charlotte, N. C.

Saginaw, Mich.

notification) 1,800 shares of capital
Price—$8.50 per share Proceeds—To Thomas C.
Harvey, the selling stockholder. Underwriter—Merrill
Lynch, Pierce, Fenner & Beane. Saginaw, Mich.

subscription by stockholders

company

transmission

Wickes Corp.,
June 9 (letter of

reported that 1,820,857 shares of common

be offered for

to

Co., New York.

common

Underwriters—Allen & Co.

are

of Palmer Stendel Oil Corp. on a l-for-2 basis. Price—
At par (25 cents per share). Underwriter—Burnham St

preferred share convertible into
shares of parent; rights to
expire on July 10.
Price—$2 per share. Proceeds—For drilling expenses, etc.
5%

plans to issue and sell

Canadian Palmer Stendel Oil Corp.

April 18 it

share of

parent held; six shares for each $5 preferred share
vertible into six shares

company

stock: Probably William R. Staats & Co.; Lester,
Ryons & Co.; and Walston, Hoffman & Goodwin.

con¬

West

one

reported

was

for

vertible preferred stock (par
$1), of which 289,394 shares

June 25 at rate of

was

Electric Light & Power Co. et

May 20 it

Co.

Stuart & Co. Inc. and Merrill Lynch, Pierce, Fenner &
Beane (jointly); Salomon Bros. & Hutzler. Underwriters

Virginia Production Co.

May 28 filed 300,000 shares of 10-cent cumulative
are

Electric Power

between $4,000,000 and $4,500,000 first mortgage bonds
by competitive bidding and about $2,500,000 of preferred
stock and $2,500,000 common stock probably through
negotiated sale.
Probable bidders for bonds: Halsey,

Price—To be
new

will

be required during the latter half of 1952.

June

shares held; rights to expire on
July 18.
supplied by amendment. Proceeds—For

Co., Inc., New York.

Connecticut Light & Power Co.
March 1 it was announced that it is presently estimated

The

Charles S. Payson, the

act

may

(Canada)
company plans to issue and sell

it Bryn Mawr (Pa.) Trust Co.
on

it Vitro Manufacturing Co.
June 30 (letter of notification) 1,000 shares of

stock.
Underwriter —

new common

V

37,727

company

issue of about 1,000,000

June 26 it

Underwriter—None.

purposes.

of

program.

derwriters

announced

was

shares of common stock. Pro¬
drilling and exploration costs. Registration
-^-Expected early in June with offering later in month.
Underwriter—Lehman Brothers, New York.

exercise

corporate

may

ceeds—For

prior to April 1, 1962 of stock
options granted to designated employees. Proceeds—To
be added to general funds of company and used for
gen¬
upon

company

City Electric Co.

it

28

Co., Ltd.
May 6 it was reported

Underwriter—Kidder, Peabody & Co., New

June 9 filed 65,470 shares cf common stock

Dillon Read &

construction

Creameries of America, Inc.
April 14, G. S. McKenzie, President, stated that the com¬
pany may do some long-term borrowing in about two
months to finance expansion program. Traditional Un¬

an

suable

reported

was

Banff Oil

York.
Victor Chemical Works,

For

planned in 1953.

filling. Underwriter—George F. Breen, New York.
of

—

sell about
$4,000,000 of preferred stock some time this Fall.
Pro¬
ceeds—For construction program.
Underwriters—Prob¬
ably Union Securities Corp. and Smith, Barney & Co.,
New York. Debt financing for approximately $3,000,000

Proceeds—For exploration and

2 800 shares

9 it

Atlantic

(reduced to 500,000 shares by amendment filed June 20).

Inc., Chicago, I I.
(letter of notification)

ot less than 200,000 shares

The First Boston Corp., Alex. Brown & Sons

Associated Telephone Co., Ltd.

•

May 5

l

&

June

—

share.

with

Proceeds

Pierce, Fenner & Beane; Blyth & Co., Inc.

it Trade Center, Inc., Oma'ia, Neb.
26 (letter of notification) 1,000 shares of capital
stock. Price—At par ($100 per share). Proceeds—To buy
or
lease real estate on which building will be erected.
Office
c/o David S. Lathrcp, 636 Electrical Bldg.,

per

was announced company expects to enter tha
permanent financing market about the middle oi 1952

April 26 it

Securities Corp., and Central Republic Co. (Inc.) (joint¬
ly); Lehman Brothers and Stone & Weester Securities
Corp. (jointly); Union Securities Corp.; Merrill Lynch,

June

Price—$1.50

Light Co.

Underwriters—To be determined by competitive bidding.
-Probable bidders: Halsey, Stuart & Co. Inc.; Equitable

stock

Omaha, Neb.

Power &

(9/9)
June 20 it was reported company plans issue and sale of
$15,000,000 first mortgage bonds due 1982. Proceeds—For
new
construction.
Bids—Tentatively scheduled to be
received on Sept. 9.
Registration—Planned for Aug. 4.

options offered to certain key employees. Price—$13 per

Thursday, July 3, 1952

that approximately $11,000,000 of additional capital

the next two months.
•

.

Columbus & Southern Ohio Electric Co.

Lines, Ltd.

National Bank, Wash¬
ington, D. C., will advertise for bids within 90 days for
the sale of the stock of this company at an upset price
of $13,000,000. Proceeds—To be divided equally between

June 12 it

.

.

(7/22)

to be received up to 3 p.m.

(EDT) on July 22 for
the purchase from the Attorney General of the United
States of 660 shares of $7 prior preferred stock (no par),
660 shares of $7 preferred stock (no par) and 440 shares
of common stock (no par), representing about 15% of
are

the issued and outstanding capital stock of the company.

Honolulu (City and County of)
May 20 it was announced it is planned to issue and sell
$6,000,000 bonds for construction of the Kalihi tunnel,

$5,000,000 bonds for public school program, $1,600,000
bonds for public improvements and $1,000,000 for flood
control.

it Huntington National Bank of Columbus
June 24 it

was

(7/10)

announced stockholders will vote

July 9
increasing the authorized capital stock from $3,000,000
(par $100) to $4,000,000 (par $20), five new shares to be

on

issued in exchange for each present $100 par share held.
is expected that the additional 50,000 shares will be

It

offered for subscription by stockholders of record
July 9
on a l-for-3 basis; rights to expire on
July 24. Price—

$36 per share.

Proceeds—To

plus. Underwriter
Columbus, O.
Idaho

Power

—

Co.

Feb. 27 T. E. Roach,

increase capital and sur¬
Paine, Webber, Jackson & Curtis,

'

President, announced that the

com¬

pany's present plans consist of the sale this summer ot
about 225,000 additional shares of common stock (par

$20), but

no

preferred stock.

Price—At

a

minimum at

Number 5130

[Volume 176

..

The Commercial and Financial Chronicle

.

$35 per share net to company. Underwriters — Latest
common stock financing in April, 1949, was handled by
Blyth 6c Co., Inc.; Lazard Freres & Co.; and Wegener
& Daly Corp. Proceeds—To repay bank loans and for
construction
'

ings. Underwriters—For bonds may be determined by
competitive bidding. Probable bidders: Halsey, Stuart A
Co. Inc.; Morgan Stanley & Co. In case of common stock
financing there will be no underwriting.

program.

New Jersey Power & Light Co.

llhnois Central RR.

Commission authorized
to issue and sell not exceeding $25,000,000

May 26 the Interstate Commerce
the company

of consolidated

mortgage 30-year 4*4% bonds, series D,

1, 1982, of which $13,000,000 thereof will be
sold presently and the remaining $12,000,000 on or about
June

due

(45)

April 1, 1954, at par and accrued interest to seven insur¬
ance companies. The proceeds are to be used to pay, in
part, $26,684,500 of outstanding bonds maturing in the
period 1952 to 1955, inclusive.

April

it

reported company plans tentatively to
issue and sell $3,200,000 of bonds, $1,000,000 of preferred
8

was

stock and

$400,000 of common stock (latter to be sold to
General Public Utilities Corp., parent). Underwriters—

To be determined

by competitive bidding. Probable bid¬
Halsey, Stuart & Co. Inc. (bonds only); Kidder,
Peabody & Co.; Smith, Barney & Co.; Union Securities
Corp.; Carl M. Loeb, Rhoades & Co.; Salomon Bros. A
ders:

Hutzler.

New York P. S. Commission for

bonds, 7,500 shares of pre¬

sell $750,000 of first mortgage
ferred stock and

an

permission to issue and

unspecified amount of common stock.

Underwriter—Blyth & Co., Inc., New York.

Light Co.
Jan.
4
company
announced that it plans to issue
and sell in 1952 about $12,000,000 principal amount first
mortgage bonds (this is in addition to present preferred
Kansas City Power &

and

stock financing. Underwriters

common

—

To be de¬

competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Glore, Forgan & Co.; Blyth
& Co., Inc. and Lazard Freres & Co. (jointly); The First
Boston Corp.; White, Weld & Co. and Shields & Co.
(jointly); Smith, Barney & Co.; Kuhn, Loeb & Co., Sal¬
omon
Bros.
& Hutzler and Union
Securities Corp.

termined

by

(jointly); Equitable Securities Corp.; Lehman Brothers
Stearns & Co. (jointly); Harriman Ripley A
Co., Inc. Proceeds—For new construction.

and Bear,

Laclede Gas Co.
See

Mississippi River Fuel Corp. below.

June 11 company
Commission to issue

shares of

and sell 10,000

$10) $1,450,000 of bonds and $300,000 of prom¬
issory notes. Proceeds—For expansion program.
stock (par

Lone Star Gas Co.

It is also planned to spend about $31,000,000
in 1952 for additions to plant. Previous financing was
done privately.
$4,010,200.

Maracaibo Oil

Exploration Corp.
May 5 stockholders voted to increase the authorized $1
par value capital stock from 500,000 to 600,000 shofes. No
financing presently planned. No underwriting Was in¬
offer to

in

Middle
Oct. 31

it

East
was

capitalization
securities

stockholders last October.

common

Industries Corp.,

the

—

Beane.

April 1 company applied to FPC for authority to con¬
a 384-mile pipeline system from west Texas and

struct

eastern New Mexico to the Panhandle area of Texas at

near

N. Y.

future and

estimated cost of $58,180,000.

for convertible notes and

ties Corp.;

and Glore, Forgan & Co., both of New York.

30 stockholders

a

to

register Its

with the SEC preliminary to a large publit

Exploration Co., Houston, Tex.
1
March 21 it was reported early registration is expected
of 125,000 shares of common stock. Proceeds—To go to
certain selling stockholders. Underwriter — Moroney,
Beissner & Co., Houston, Tex.
Minabi

Mississippi Power & Light Co.
March 14 it was reported company plans to issue and
sell in November an issue of $8,000,000 first mortgage
bonds. Underwriters—To be determined by competitive
bidding. Probably bidders: Halsey, Stuart & Co. Inc.;
White, Weld & Co. and Kidder, Peabody & Co. (jointly);
Blyth & Co., Inc.; The First Boston Corp. and W. C.
Langley & Co. (jointly); Equitable Securities Corp. and
Shields & Co. (jointly); Merrill Lynch, Pierce, Fenner
& Beane; Union Securities Corp.

proposal to issue and

For expansion. Underwriters — Goldman,
Co., New York, and Piper, Jaffray & Hopwood,
Minneapolis, Minn. Offering—Publicly expected in July
or August.
' ;
V
—

Sachs &

(7/9)

quisition

would

cost

about $20,000,000,

with Laclede

cash or stock of Mississippi
River Fuel Corp. In exchange for their holdings. If con¬
trol cannot be acquired, Mississippi then will sell the
stockholders being offered

248,400 Laclede shares it now holds. Underwriter—Prob¬
ably Union Securities Corp., New York.
Nevada

Natural

Gas

(EDT)

on

July 9 for the

purchase from it of $8,850,000 equipment trust certifi¬
cates to be dated Aug. 1, 1952 and to mature annually

1

applied to FPC for authority to con¬
struct a 114-mile pipeline from near Topock, Ariz., to
Las Vegas, Nev., at an estimated cost of $2,400,880, to
be financed by sale of $1,600,000 first mortgage" bonds,
$500,000 preferred stock and $402,500 commonystock,

Feb.

8

company

1953-1967, inclusive. Probable bidders: Halsey,
Stuart & Co. Inc.; Salomon Bros. & Hutzler.
'

an

it

26

was

announced

company

now

contemplates

additional issue of first mortgage bonds and common

stock

in,

equal amounts, either late in 1952 or early in

1953. Underwriters—For bonds to be determined by com¬

petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Equitable Securities Corp.; Kuhn, Loeb & Co.; The
First Boston Corp.; Merrill Lynch, Pierce, Fenner &
Beane; Kidder, Peabody & Co. and White, Weld & Co.
(jointly). Proceeds—To repay bank loans (estimated to
be $11,500,000 at Dec. 31, 1952).
New
Dec.
nent

England Telephone & Telegraph Co.

20, F. A. Cosgrove, Vice-President, said a perma¬
financing program will%ave to be undertaken, fa

1952 to repay

about $43,000,000 short-term bank borrow¬




to

cost

$184,989,683.

Underwriter—-Kidder, Pea¬

Toklan Royalty Corp.

June 27 it

pected to

reported that early registration

was

a new

rants attached.

was

ex¬

issue of $1,500,000 debentures, with war¬
Proceeds—To retire bank loans and for

other general corporate purposes. Underwriters—Granbery, Marache & Co. and Burnham & Co., both of New
York.

Transcontinental Gas Pipe Line Corp.
was reported
company plans issuance

March 14 it

sale this Fall of

issue of convertible preferred stock.

an

Underwriters—Probably White, Weld & Co.
& Webster Securities
Corp.,. New York.

and Stone

United Shoe Machinery Corp.
24 company announced it
may

June

be necessary to
borrowing in the reasonably near future in such
as may be
necessary from time to time to fi¬
its working capital needs.

resort to
amounts

Utah Power At

Light Co.
it was reported that
company may issue and
September about $10,000,000 of first mortgage
bonds and 150,000 shares of common stock.
Proceeds—
To repay bank loans and for new
construction. Under¬

June
sell

3

in

writers—May be

determined

by competitive bidding.
(1) For bonds—Halsey, Stuart & Co.
Inc.; White, Weld & Co.; Lehman Brothers and Bear.
Stearns & Co. (jointly); The First Boston
Corp. and
Blyth & Co., Inc. (jointly); Union Securities Corp. and
Smith, Barney & Co. (jointly); Salomon Bros. & Hutzler;
Kidder, Peabody & Co. (2) For common stock—Blyth
& Co., Inc., W. C.
Langley & Co. and Glore, Forgan &
Co.

(jointly); Union Securities Corp. and Smith, Bar¬
& Co. (jointly); Kidder, Peabody & Co. and Merrill
Lynch, Pierce, Fenner & Beane
(jointly); Lehman
Brothers; The First Boston Corp.
Virginia Electric & Power Co.
May 26 it was reported company plans issuance and
sale later this year of
$20,000,000 first and refunding
mortgage bonds. Underwriters
To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
—

Inc.; Kuhn, Loeb & Co. and Wertheim & Co. (joint¬
ly) ; Stone & Webster Securities Corp. and
Harriman*
Ripley & Co., Inc. (jointly); Union Securities Corp.:
Salomon Bros. & Hutzler.

Washington Gas Light Co.
Jan.

12

Power Co.

16, R. R. Dunn, President, announced company
plans to raise about $40,000,000 of new money in connec¬
tion with its $62,000,000 construction program in thi

mon

April

Probable bidders: Halsey,
Stone & Webster
Securities Corp. and Union Securities Corp. (jointly);
First Boston Coup.;
Kidder, Peabody & Co., Merrill
Lynch, Pierce, Fenner & Beane, White, Weld & Co. and
years

Stuart

1952,

1953 and

1954.

Co. Inc.; Lehman Brothers,

&

Salomon Bros.

(jointly); Kuhn, Loeb & Co.

& Hutzler

and Blyth & Co. Inc. (jointly);
Harriman Ripley & Co.. Inc.

Dillon, Read & Co. Inc.;

Pressed Steel Car Co., Inc.

April
the

17 stockholders approved a proposal to increase
common stock from 1,280,000 shares to

authorized

3,280,000 shares (1,045,500 shares presently outstanding).
new shares would be issued when directors decide,
in connection with diversification program.
No imme¬

diate

financing

Traditional Underwriter—

is planned.

Kuhn, Loeb & Co., New York.

that

company is

$4,500,000 from the

considering plans to

sale, of additional com¬

stock to its stockholders

(there are presently out¬
standing 734,400 shares). Underwriters—The First Bos¬
ton Corp. and
Johnston, Lemon & Co. handled the offer¬
ing last

year

bank loans

to stockholders.

and

other

Proceeds—Together with

funds to

take

care

of

proposed

$6,000,000 expansion program. Offering—Of about 150,000 common shares expected in June.

Washington Water Power Co.
Jan. 9 company applied to the SEC for
bank borrowings of

authority to make
$40,000,000, the proceeds to be used
to finance
contemporarily, in part, the company's con¬
struction program. Permanent
financing expected later
this

Probable

bidders: (1) For stock or bonchc
Inc.; Smith, Barney & Co. and White;
(jointly); W. C. Langiey & Co. and The
First Boston Corp. (jointly);
(2) for bonds only: Halser.
year.

Blyth
Weld

&

&

Co.,

Co.

Stuart & Co. Inc.

★ Westcoast Transmission Co., Ltd.
June 14 the

Light & Power Co.
May 21 stockholders authorized an increase in funded
indebtedness by $1,500,000 as needed by Dec. 31, 1954, to
finance the company's construction program in part It
is also planned to issue 5,000 authorized shares of pre¬
St. Joseph

ferred stock (par

reported

about

raise

Potomac Electric

$100).

Sapphire Petroleums, Ltd.
May 20 it was reported company may do about $2,000,000
of new financing (including an issue of convertible der
bentures)
Proceeds — For acquisition of properties and
for development expenses. Underwriters — To include
Frame, McFadyen & Co., Toronto, Canada.
.

Scott Paper Co.

if New England Power Co.
June

mated

Aug. 1,

Co., Las Vegas,

Pipe Line

Nevada

Texas-Ohio Gas Co., Houston, Tex.
17 company applied to FPC for
authority to con¬
a 1,350-mile natural
gas transmission line extend¬
ing from Texas intq West Virginia. The project is esti¬
Oct.

struct

Co.

The

Mississippi River Fuel Corp.
W. G. Marbury, President, on May 26 announced that
company will attempt to
acquire control of Laclede
Gas Co. as authorized by directors on May 22. This ac¬

increase in author¬

266,000 shares to 350,000 share®.
Traditional Underwriter—Shields & Co., New York.

increase

Proceeds

Bids will be received up to noon

offering, the funds to be used to build new industrial
projects in Israel.

an

stock from

common

ney

approved

$4,500,000 to $5,000,000 of common stock and
indebtedness of the company by $5,000,000.

sell from
to

Probable underwriters
stock; Stone & Webster Securi¬

Pillsbury Mills, Inc.

June

ized

Probable bidders:

Permian Basin Pipeline Co., Chicago, III.

•

areas.

Standard Forgings Corp.
April 25 stockholders approved

nance

if Pennsylvania Power & Light Co. (7/29)
June 26 it was reported the company was planning early
registration of an issue of 100,000 shares of preferred
stock (par $100). Proceeds—For new construction. Un¬
derwriters
The First Boston Corp., New York, and
Drexel & Co., Philadelphia, Pa.

if Pittsburgh & Lake Erie RR.

announced company plans to expand Its

in

Niagara Mohawk Power Corp.
May 6 stockholders voted to increase authorized com¬
mon stock by 1,500,000 shares
(11,094,663 shares pre«ently outstanding). This places company in a flexible
position with respect to formulation of future financial
programs. Earle J. Machold, President, said bank loana,
totaling $40,000,000 to be outstanding at Dec. 31, 1952,
will be permanently financed early in 1953. Under¬
writers
To be determined by competitive bidding.
Probable bidders: Morgan Stanley & Co. and The First
Boston Corp. (jointly); Merrill Lynch, Pierce, Fenner A

an

April 1 the FPC authorized the company to acquire addi¬
tional properties at a cost of $5,598,129 and to build an
additional 69.5 miles of transmission line at a cost of

volved

ly 1953-1967, inclusive. Probable bidders: Halsey, Stuart
& Co. Inc.; Bear, Stearns & Co.; Salomon Bros. & Hutzler.

common

Alabama,

Georgia and Mississippi service

•

RR.

May 5, it was reported company may issue and sell $12,000,000 of equipment trust certificates to mature annual¬

—

Ohio
received permission of the Ohio P. U.

Lake Shore Gas Co., Ashtabula,

Southern Natural Gas Co.
March 3 company filed with FPC a
$76,000,000 expan¬
sion program to bring natural gas into its

body & Co., New York.

New York Central

^ Jamaica Water Supply Co.
June 26 it was reported the company has applied to the

45

April 24 stockholders approved a proposal to increase
the authorized common stock from 3,000,000 to 5,000,000
shares, and the authorized indebtedness from $4,000,000
to $25,000,000. The company said it will announce later

ers

Canadian Board of Transport Commission¬
conditionally authorized this company, an affiliate

of

^Sunray Oil Corp. and Pacific Petroleums, Ltd., to
a $111,240,000 natural
gas pipeline on the Pacific
Coast, providing gas reserves were found sufficient to

build

maintain such a line.
It was stated that
$88,000,000 of
first mortgage bonds have been
conditionally subscribed
for by The First National Bank of New
York, The Pru¬
dential Insurance Co. of
America, The Mutual Life In¬
surance Co. of New York and the New
York Life Insur¬
ance Co. and another

$28,000,000 is to be provided by
$28,000,000 of junior securities. Un¬
derwriter—Dillon, Read & Co. Inc., New York.

the issue and sale of

Western Light & Telephone
Co., Inc.
April 11 stockholders increased authorized common stock
from 400,000 to 500,000
shares, the additional shares to be
issued

as

funds

are

needed for

new

construction. Dealer-

Managers—Harris, Hall & Co. (Inc.), Chicago, 111., and
The First Trust Co. of Linclon, Neb.

any

if Wiihead Royalty Co.-Texhead Royalty Co.

&

June 20 it

plans for future financing. Underwriters—Drexel
Co.; Merrill Lynch, Pierce, Fenner & Beane; and
Smith, Barney & Co.

notes

and

was

reported sale of

an

issue of 3%

income

stock

is planned in an amount sufficient to
$300,000. The notes and stock would be sold in
units. Price—$20 per unit.
Underwriter—Rotan, Mosle&
Moreland, Houston, Tex.
raise

Southern California Edison Co.

April 18 it was reported company plans to obtain :between $25.00(^000 and $28,000,000 of new capital through
the sale of additional securities. Proceeds—For new con¬
struction.
Underwriters — Probably The First Boston
Corp.; Harris, Hall & Co.
Fall.

-

"

"

(Inc.) Offering—-Expected, in
'
t
'
...
-

.

.

...

if York Telephone & Telegraph Co.
June 21 the Pennsylvania P. S. Commission
authorized
the company to issue and sell $1,245,000 of bonds.
Pro¬
ceeds—For

new

construction.

>

46

(46)

The Commercial and Financial
Chronicle

Continued

jrom jirst

As

We See

politicians could do better!
Many more broadly similar attitudes or conclusions
could easily be cited.
Subsidies to this and that are in¬

It

Of course, all such estimates

are

open

it is

as

to all sorts of

sought

deal of

It

this

enterprises, will give these volumes
study—and that is as it ought to be.
to us,

seems

document

a

though, that

more

less

or

a

And

if

reader

sidious
the

the

real

tual

as

"First,

.

We
*

,

believe in a minimum of
interference with these
patterns of private enterprise. But to believe in a mini¬
mum of interference
is not to believe that this
minimum
must

be

private

set

and

at

zero.

public

essential to

our

"Third,

.

.

the

.

strength

is

co-existence

not

of

is

everything

problem.
fail

we

It

...

to

is

work for

this
a

about

say

Commission's

rise in

the

chances of

democracy to

the

standard

the rest of the free
world, we thereby
the further rise of our
own,
and

world over."

of

that

Now

we

think

prosper and peace to

these

report,
to

beliefs

we can

extract

the

see

unpleasant,

such assertions

smack of such stuff

gf

we

as

these.

the Fair Deal is made of.
"color" the

If

some

remaining sections of

only hope that the
he

wants

reader will find

and

leave

the

.

behind.

a

the

put

work

as

would

may fail to bring out
be profitable at that

much

price. Mine
operators may not expect the
price to stay high; invest¬

ment

conditions,

or

attitudes

of

this

or

foreign

on

vol¬
has

.

.

Columbia Uni¬
in

the

govern¬

the

development of
adoption. Research

may not repay any one

enterprise.

depressions, in the past, have demonstrated

that the

price system cannot handle all
problems.
The
guide to public action must therefore be a
study of where
the private market works
so
imperfectly that something
must be done about it."




...

June

18

from

if

the

*

if

and

hated

taking

froln

the

tool

the

their

while

in

the

stooge

secret

for

cerned

over

the

Republican

party

or the

No

Red

likewise,

Moscow, I found
ingly large

As

to

if

our

claimed

book

in

larity-disclaiming
the

Kremlin

("as

a

stboge for

a

respect to
man's

the

Senator

grounds

National

either

years

the

on

national
tions

it is
domestic

ago,

of-.Uncle

the

could

GOP.

Joe's

At

warrant

has

for

better

suit

end¬

New Deal-Fair Deal

spending

and

Virginia last Friday in which

sion

the

communism;

dize, and
tain

from

free

infiltrate

the

June 30

membership

velt-Truman
at

and

programs

Yalta

and

in

in

drop

sufficiently

atomic\ bombs

Iron

re¬

Cur¬
an

Russian

cities if the Soviet should
dare to
start

a

*

System. He is
to take up

our

the

infla¬

war.

While
the
Kremlin
may
not
have consigned the
Senator to its

Federal

Reserve
of

Bank

Minneapolis
P

them

r e

sident

Truman
accepted Mr.

concluding
outpouring of

Powell's
resignation irr

appeasement of Red

letter which

a

China.

thanked

Surely attempted staging of the
est

mere

phony

technique!

Mr.

Warburg Director
Warburg, member

banking firm of
Co..
has
been
director of Forty Wall
Street
Build¬

a

ac¬
an

In

ra

the
t i

corpo¬

Mr.

o n.

Warburg
also

the

Los

Angeles & Salt
Lake

Railroad,

trustee

a

American
tical
M.

Warburg

and

of
op¬

Company
a

director

of the Ameri¬
can

Museum

to
to

the

a

letter

June

to

26,

the

Mr.

President

Powell

an¬

Minneapolis Re¬

Bank officials

that he take office

anxious

were

as

President

July 1.

on'

-

,

"Having served for
employee

and

bank, I have
sire

30

years

officer

natural

a

of

as

that,

strong de¬

to

serve
as
its
President,"
Powell told the
President.

Mr.

is

director

a

of

was
appointed
Reserve
Board

nounced that the

an

Pell, President

out

dated

serve

of

Powell

unexpired term of
the late Lawrence
Clayton, which
expired last Feb. 1.

&

ing, Inc.,
cording to

F.

Powell

Federal

serve

of the investment

elected

S.

flation.
the

Loeb

leadership in
combating in¬

for
Oliver

smear

Kuhn,

the

latter for his

purposes represents

Frederick M.

of

President of

of

Eastern

cont

the

position

they possi¬

in

on

resigned his

on
the
Board
of
Governors of the Federal Reserve

Mr.
Ihe

Powell,

Federal

while

Reserve

Chairman

of

Voluntary

Credit

the

serving

on:

Board,

was.

Committee

on

Restraint, and,

in this
capacity, was active in

ordinating the
throughout the
and

screen

efforts

of

nation

credit

applications.

in

to

risks

co-

banks
restrict

and

loan

with

line

the

policy to curb inflation.

of Natural

History, the Boy Scout
Council of Greater New York and
Greater New York Fund.

Edward Mathews Adds

the

(Special to The Financial
Chronicle)

and

powerful to
on

has

Asia

Korean

our

blood

Joins du Pont,

Rus-

countries; and to maintain

Air Force

he

what

—

plums handed

since

Europe,
with

BOSTON,

Homsey

Gordon

(Special to The Financial
Chronicle)

propagan¬

the

that

Kremlin's

can

Minneapolis J

announced

bly be less pleased with the Roose¬

satellite

yoke of
to

S. Powell

inter¬

portentous

after

he

countries

Oliver

preference

the

and

supposing that he

City*

Presidency of Fed¬

eral Reserve Bank of

anticipation of capi¬
talist collapse than the
persistent

In

(they
University

to

Salt Lake

Federal Reserve

by John H. G.

their reading of his
speeches
miss nothing) as at the
of

;V

designs and

surely there is

latterly gained in favor

member of

a

Resigns From

asser¬

or

home

ren¬

"superficiality

McGaughey

as

&

Will Assume

due

difficult,

fronts, to follow his

surpris¬

foreign policy,

And

Mr.

Bank of

before

ex-Ambassador Harri-

on
his
intelligence,
disapproval
on
the

of

si:

popu¬

on-the-spot experience

ing six

for

contest

dering disapproving verdicts. One
high official, while
complimenting
expressed

30.

serve

the board of directors.

in

announcement

unloved.

that

June

party's

this

judges, with all

number of Russian and

on

fective

Powell

Democratic

standing

reverse-popularity

their

regret
McGau-

R.

President of the bank, ef¬

as

continues to

Jjs

Polish officials have read
his lat¬
est

ghey

with

W.

capitalists

their investments

Rose

is

announced

1

big business money-interests with
their
investments
in
Western

Taft

111.,

retirement of

Western

if

that he is
really a Dem¬

weapon"),

the

Asia.

"Prav-

surreptitiously smuggled in¬

the

atur,

Effective July 1 the Utah First
Europe,
National Bank of Salt Lake
Senator is alleged to
City;
the money-bags con¬ Utah, changed its title to the First

interested

bosses, have similarly gone to
work
on
Ike, flaunting various

to

directors of The Millikin
National Bank of Decatur at Dec¬

NATO, Taft is

of

if

The

graphical quibble:—the General is
called

Planning

Exchange Bank of Philadelphia.

the

da"

as

Estate

was

Officer of the Girard Trust Corn

geo¬

electioneering
cue

formerly

-sji

periodicals,

customary

appointment of Frank R.
Shippen
as
a
Trust Officer. Mr.
Shippen

Seemingly the most cleardifference in their reputation
the Soviet is one of a

in

.$4,000,000,"

piece concluded.

endeavor

devising better methods,

of

as

to

current

or

that would benefit all

of

the

.

urged our government to
pudiate the Yalta agreements

And

re¬

service

ments, may impede production or slow
export expansion.
Inventors may turn too late
to

long years may elapse between
better
techniques and their actual

a

research

than

ij:

no

as

the

at

more

shallowness."

"Increasing prices

USA

scientific

war

amount

Other

Taft,

Thus:

if

Philadelphia National Bank
Philadelphia announces the

of

doghouse occupied

university has tion?
Abroad—how

at

the propaganda

coloration

thoughtful reader will easily detect the influence
type of philosophy upon the
thinking of the Com¬
mission at various
points. "It (the free price
system) pro¬
duces good
results,", says the Commission at one
point,
"when judged
by its service to the public interests—but
not
always perfect results." Copper
production is taken
as
an
illustration to make the
Commission's meaning

if

$200,000 through
sale of $100,000 of new
stock.

General, because of
responsibility
for

Europe.

The

production

The

military

to

year

the
latter's

way

of this

clear.

versity

ocrat

disquieting,
They definitely

even

the

the

increased,

research

living of

reign the

of

stories

as

facts

of

for

it is sufiiccient to say that
government ap¬
propriations alone for
military

if

hamper and impede
equally lessen the

Eisen¬

University

personnel

scale.

sharply

materials

Disquieting Implications
implications in

Columbia

been

ume

hope will

belief

of

process of the militar¬

preparing for

have to

we

students.'

arrival

search work at the

also

believe that the destinies of the United
States and the rest of the
free non-Communist world are
we

first

mobilized

than to

the

forces

large

great
but

only desirable

This belief

this

students

on a pure¬

soldiers

army

training

armed

we

color

an

lishments,

preservation.

inextricably bound together.

"the

ization of Columbia
University
became extensive in scope. Like
other higher educational estab¬

.

.

.

students

footing. In his

address to

hower, the

the

.

the

immediately put

"With

.

increased

$100,000

man."

mu¬

continues

gem,

by

York

into

clearly stated:

very slummiest

cut

with

concerned,"

military

an

share the belief of the American

we

Military

phasized the necessity of blood,
sacrifice and death, was rather

con¬

people
principle of Growth (capital in the original).
"Second, we believe in private enterprise.

in

if

certainly far from being "Stalin's

newspaper
[possibly
the Communist
"Daily Worker"]
noted, 'in which Eisenhower em¬

as

President's Materials

are

a

Eisenhower's

as

relations

New

At the

the

receive

The capital of the
Northwestern
National Bank in
Philadelphia was

proposals with which

feared

versity Eisenhower called them
'my soldiers.'
'This speech,'
a

part:

only

wrote."

speech to the students of the uni¬

or

"This report can have
significance
victions held by the members of the

Policy Commission

Columbia

far

were

ly

Security."

2V2

will

Fidelity capital stock
shares of Olney
capital

if

teacher

any

propagandize a
inimical to free en¬

Camp
"As

Crop Up

Commission is set forth
giving "significance" to the document. Here it is in

and

Shareholders

share of

of these

large
against subtle, in¬

guard

comparatively small

%

to

propaganda

of credo of the

on

one

again and again and again interlarded.

immediately

Made

Fair Deal ideas
crop up
the report which carries
the title "Foundations for Growth
and
sort

be

to

in

Olne.y Bank

for

be

to

are

capital.

the

stock."

hope that the student

fail

philosophy
terprise,' the 'Times'

repeatedly in the first volume of
a

are

began

were

outset

by which they

socialistic suggestions

facts

miss

Paley and his associates.

At any rate, New Deal

our

not

who

^ wonder if this Materials Policy Report is not likely to
be used for
purposes which certainly we could not sup¬
port and which may or may not have been in the minds

Fair Deal Notions

increase
of

MOSCOW AND OUR ELECTIONS
—The New Red
Heiring—

find running through
subtle planned economy
we

taint.

Mr.

means

a

The

good

involving vast stockpiling (to use a current euphemism)
not for
military, but for civilian protection, cause us to

of

And Bankers
000,000 with

Continued jrom page 5

meat of the report is to be extracted
Reports which have of late been coming
from Washington about a
program being readied there

of

it is

so

volumes will

philosophy which must be carefully discounted by the
free

the

as

reached.

any

own

well

as

13

page

News About Banks

to be

firm opinion on that subject.
It would appear to us that a
study of this kind, some sort
of informed look ahead in this
field, particularly when
done by an impressive
array of specialists and recognized
authorities, has its place. We feel certain that many tech¬
nicians in many fields, and
many business executives
carrying the responsibilities for the long-range planning
of their

Thursday, July 3, 1952

.

Continued-jrom

cluded in the
therapy the Commission seems to have in
mind, subsidies, that is, which are
alleged to have def¬
inite and determinable effects
upon the operations of the
private economy, and which involve also a
determination
by Government of the desirability of economic ends

hazards—no matter by whom made. We shall undertake
no
appraisal of them at this time. Much more study would

required to develop

.

As if the

page

(or should we say, guesses?) about the situation
expected to be in the 1970-1980 decade.

be

.

BOSTON,
Gallagher
with

du

Mass.

has

—

Charles

become

Pont,

staff
F.

53

of

State

has

Mass/
been

Edward E.

Street.

—

Murray

added

to

I.

the

Mathews Co.,

associated

Homsey

&

Com¬

Two With Gibbs & Co.
•

pany, 31

the

Milk

Street, members of

New York

Exchanges.

and

He

with J. Arthur

Boston

was

Stock

previously

Warner & Co., Inc.

(Special to The Financial
Chronicle/

WORCESTER, Mass.

—

Evelyn

M. Jamieson and
Michael J. Mur- "

phy have become associated with
Gibbs & Co., 507 Main
Street.

.

Number 5130

Volume 176

The Commercial and Financial Chronicle

.

.

.

first

30-year bonds on
due to be opened

mortgage

wnich

bids

(47)

are

Plastic Upholstery in Wider Use

around July 15.

With Paul C. Rudolph
(Special to The Financial Chronicle)

Plastics
Operations

Large "Standby"
The

business

by the

of several

will

carrying

month's

swelled

in

through

offerings of equity

be

Coatings and Film Association reports 10% increase
use of
plastic upholstery for furniture in 1952, and estimates
15% of chairs are now covered with plastic materials.

A 10% increase in

se¬

curities, mostly to stockholders on
"rights." In most such instances
bankers will be underwriting the

go

into the records

of

the

from

year

probably will
the slowest

as

standpoint of

a

activity

in
the
corporate
new
capital market. Not a single debt
issue

of

substantial

reached

the

Considering
period
trend

the

of

haps,

fact

events,

that

by

4th

July

the

observ¬

better,

of

them,

was

operations

Neither

handling
keen

are

undertakings

for

the

in

circumstances.
The grist of the

the

took

form

the

of

railroad

two

Louisville

Railroad and
for the

Co.

shares

1,000,000
which
the

will

be

public,

waved

of

new

offered

of

l-for-7

basis-is

equity

undertakings

on

&

Nashville

which

little

continue

had been

here
to

loose,

Wall# Rejoins
Central Ijjationa! Corp,
And Gottesman Co,
Ira

Wallach

D.

has

there

that

was

such

is

tral

National

Corp.,

buyers

to

rush

100

sales

Park

would

be

this

of

agreement

furniture

upholstery

in the

up

year

second

the

over

Of Association

would

remain

first

members

the

expectation

of

plastic

re¬

in

part

the

for

Prer/ident
of

which

he

of

watiach

on

based

of

new

It

papers'

and woodpulp.

he has

For

stock

ern's chief executive officer

pend¬

acting temporarily

ident, which

Order

election

few weeks ago.

resigned

new

Pres¬

accomplished in

was

of

a

Harold

Holden

a

Mr. Wallach also

of Royal
fairly heavy volume in Lace Paper Works, Inc., of Brook¬
new
offerings from an overall lyn, N. Y., principal subsidiary of
He remains a di¬
standpoint.
The
total
will
be Eastern Corp.
of
Eastern
swelled by several large under¬ rector
Corp. and a
as

whole

a

may

prove

a

President

as

of

which

have' been

placed"

member of its executive

felt that plastics

was

anticipated rise

of

the

of

use

President

uses

percentage

DIVIDEND

of

A

quarterly dividend of 35c
share on the Capital
par value $13.50 per

per

share,

uphol¬
as high

run

NOTICES

Stock,

that

are

plastic

pieces would

has

been

declared,

payable September 30, 1952,
stockholders

to

of

record

August 29. 1952.

THE UNITED GAS IMPROVEMENT CO.

Joins

King Merritt & Co.

MIAMI,
mond

Fla.—Edward L.

has

affiliated

become

King Merritt

JOHNS
June 24,

HOPKINS, Treasurer

1952

Philadelphia, Pa.

Ray¬
with

JOHN

&

MORRELL

A

Halle &

Ballard,

partner

CO.

of

One-Half Cents

($0,125)
the

Steiglitz, New York City,
will

be paid

share

per

on

capital stock of

John

passed away June 22.

j

dividend of Twelve

and

C.

&

DIVIDEND NO.
92,

Arba C. Ballard
Arba

Morrell

&

Co.

July 30, 1952, to stock¬
July 10, 1952, as

holders of record

DIVIDEND

plastic

NOTICES

shown

on

the hooks of the

Company.

George A. Morrell, V. P. & Treas.

SUPERHEATER, INC.
Dividend No. 194

REYNOLDS

RtvnOLDf

A

quarterly dividend
of seventy-five
cents
per share on all the outstanding stock of
the Company has been declared payable July 29,
1952 to stockholders of record at the close of

tlfFo

(75c)

NOTICES

in

Baltimore,

plas¬

50%.

as

upholstery, particularly in living

DIVIDEND

partner

June 24.

away on

COMBUSTION ENGINEERINGExtension

3d,
Co.,

business

lfT)€T-QLJl

W.

OTTO

METALS

SK

1952.

July 15,

STRAUSS,

COMPANY

Treasurer

C77Vi

Reynolds Metals Building
Richmond 19, Virginia

AMERICAN VISCOSE

CAN

STOCK

COMMON

AMERICAN

CORPORATION

A dividend of ten percent (10%) on
the outstanding common stock of the

COMPANY

Company, has been declared payable

Dividend Notice

COMMON

1952, in common stock of
Company, to holders of record at
close of business July 23, 1952.
Scrip certificates will be issued for

August 8,

STOCK

the

Directors
cose

clared
and

at

dividends

on

19S2 a quarterly dividend of
per share was declared on the
Common
Stock
of
this
Company,
payable
August IS, 1952 to Stockholders of record at
the close of business July 24, 1952. Transfer
books will remain open. Checks will be mailed.

their regular

July 2, 1952, de¬

on

twenty-five

share

June 24,
thirty-five cents

of the American Vis¬

Corporation

meeting

On

of

cents

dollar

one

($1.25)

the five percent

(50^)

X
ATCHISON,

THE

stock, both payable

common

the
on

Aug. 1, 1952,
record

share

on

at

to

per

The transfer books will not be closed.

EDMUND HOFFMAN, Secretary

per

SANTA

cents

resulting fractional shares.
Resulting stock and scrip certificates
will be mailed by Bank of the Man¬
hattan Company.

(5%)

cumulative preferred stock and

fifty

the

New

York,

N.

on

July 16, 1952.

25,
of

will

checks

Common

able

orders

be

Capital Stock
therefor

D.

C.

at

DILLARD, Secretary
(

Y.,

Vanadium Corporation

1952.

Dividend

WILLIAM H. BROWN

commit¬

ALLYN

Dated, June 26, 1952

AND

COMPANY

June 26, 1952.
The Board of Directors has this day declared
a
dividend
of
One
and
Dollar
Twenty-five
Cents ($1.25) per share, being Dividend No. 158,
on the Common
Capital Stock of this Company,
payable September 2, 1952, to holders of said
Common Capital Stock registered on the books
of the Company
at the close of business July

shareholders of

the close of business

TOPEKA

RAILWAY

FE

mailed

who

to

of

holders

have filed

America

suit¬

this office.

WILSON,

Broadway,

Assistant Treasurer,
New York 5, N. Y.

director of

Rayonier Inc.

bulk of the

Md., passed

included in

were

count, the estimates

120

a

Legg,

Legg &

almost exclusively.

the

stered

Secretary

Mr. Wallach is also

Moreover, and what is equally
important from the bankers' point
of view, it now appears that the

C.

C.

Otturowa, Iowa

tee.

in registration.

every

market.

manu¬

a year,

ing the selection of

holstery

com¬

ration, of Bangor, Maine,
facturers of fine business

of

furniture sales and also would

continues
director

out

the

patterns, tex¬

was

East¬

a

tic upholstery

at the recent Furniture Market in

to
1951.

these

chairs

If these dinettes

up

a

as

d.

of

1.5

dinette furniture which

com-

July,
He

by the Associa¬

John

upholstered in plastic ma¬
terials.
The 15% upholstered in
plastic does not include chrome

increased

was

Vice-Presi¬

a

the
to

both

panies,

as

•

Made

Exec¬
Vice-

been

and

estimated

John

(Special to The Financial Chronicle)

in

been

well established.

that

John C. Legg 3rd

This

year.

are

increase its share of the total up¬

and

more

little

funds

10

past

A.

Building.

Co., Inc., Cham¬
ber of Commerce Building.
the favorable reaction

Chicago.

utive

ira

cor¬

to

tion

same.

upholstery in the

would share in the

elected

the

new

a

pension

by

takings

half

general

last six months of 1952

New
City, in-

has

issues

n<ew

Quite

banks.

month

sales

plastic

The

rejoined

dent

after

less restricted to

July

that

was

vestment

disposi¬

no

ing to observers, activity is

few

There

ume

panies.
He has
however, in¬
resigned as Executive
show no dis¬ Vice-President of Eastern Corpo¬

obligations.

buying

estimated

volume, 20%
judged that 1952 would equal 1951,
and 20% predicted a decline from
last year's volume.

York

which

contrary. For the present, accord¬
or

60%

business

Avenue,

undertakings
wind up
the

to

moment,

stitutional

position

in

the

seems

now

It is

Of

in

Calif.—Charles

dolph & Company, Bank of Amer¬

attrib¬

part to the greater
styling that has been given these

trend

to previews

to their idea of prices.

the

porate

reporting,

gains

been

JOSE,

La Franboise is with Paul C. Ru¬

in large

of

basis

poll of member companies.

those

uted

tures and constructions introduced

than

off

issues

having unsold

For

the

on

furniture, has

materials

companies felt that business vol¬

Inc., woodpulp
chemical merchants, and Cen¬

confident that the market will
up

Association

SAN

ica
room

&

Gottesman &-Co.,

Rather it appeared that banking

come

pre¬

the Plastic Coatings

and

sponsoring syndicates.

are

1952

was

1951

in

porting, 80% predicted gains rang¬
ing from 5 to 30%. The remaining

Ira

the sticky side.

on

turn

groups

done

a

by

furniture

with

compared

half.

inter¬

do

work

recent

bit

a

to

more

to

of

remnants

tion

being

standby-:fcasis.

a

sold

were

investment

that

had

Even

the larger

among

as

for

bankers,

Beyond
to

having

their

yesterday.
ests

directly to

shareholders

Illinois Terminal Railroad

both

common

preemptive rights.
Bristol-Myers Co.'s offering of
199,872 shares of common on a

issue of $1,660,000

an

"standby basis"

a

Topping the list is Atlantic Re¬
fining Co.'s projected offering of

issue mill

new

equipment trust issues, $9,750,000
for

Film

on

per¬

bankers

nor

launching

the

or

lack

borrowers

the

holiday

understandable.

readily
such

the

shortened

was

of

ance

proportions

offering stage.

dicted

operations
The current week

upholstery

of plastic

use

47

involve

business in sight will

sales to

be

handled

on

a

negotiated basis.
Underwriters

operate

naturally have to
best as they can and

as

consequently they seek

brought

in

out

issues

new

competitive

bid¬

Samuel

siderably

such

operations is

more

on

satisfactory

held

TYPE FOUNDERS

The Directors

Formed in Detroit

a

NOTICE

Daystrom, Incorporated
(formerly ATF Incorporated) on June 30,
1952, declared a regular quarterly dividend
of 25 cents per share, payable August 15,1952,
to holders of record
July 28, 1952.

Dow

Chemical Co. assured that

the total of
current

than

might

would

look

otherwise

for

vertible

which

of

debentures,

should

get

due

around

tration which should reach market

shares

Jfily 23 after the

And
deals

of

$10

the

wealth Edison

company

marketed

par

heading
in

24,

O.

Secretary.

BRAND,

1952.

*

-

| trials Handling Equipment

INSTRUMENTS

DAYSTROM

Locks

LAMINATES

Builders'Hardware

VALE & TOWNE

quarterly dividend of 75c
capital

the

Meanwhile Deere
& Co.,
has
$50,000,000 of debentures in regis¬

previously

IF
3:0C

Checks will

DAYSTROM

September watch for Daystrom s smart,
new
mutti-purpose dinette sets.

The Board of Directors has this

691,276

common.

the

offing
Co.'s

competitive
is

Common¬

$40,000,000 of




256th Dividend

DETROIT, Mich.
ment is made
Don

W.

—

Announce¬

of the formation

Miller

&

stock

of

the

per

share

Building, members of the Detroit
Stock

a

regular

On

the outstanding

on

July 15, 1952. Books will

of

at the close of business

Treasurer

LEE TIRE & RUBBER COMPANY OF NEW

and A.

Bruce

Associates of the firm
B.

are

Collier.
Robert

Mill, Herbert H. Schultz, Rich¬
T. Van Atter, and Floyd J.

ard

Williams.

Conshohocken, Pa., Lee Tires and Tubes

256

(50<£)

per

earnings,

past
on

at

the

Oct. 1, 1952,

close

of

Sept. 10, 1952.

YORK, INC.

F.

Iflypif

by

Directors

of

to stockholders
mv

Youngstown, Ohio, Industrial Rubber Products

Cavan,

of

payable

■

REPUBLIC RUBBER DIVISION

No.

declared

Board

out

A. S. POUCHOT

L.

was

1952,

26,

cents

the

June 25, 1952

Exchange. Partners are Don
W. Miller, Blanche M. Hel, Frank

fifty

share

not be closed.

M

June

dividend

Corporation payable August 1,

of

Co., Penobscot

since 1899

day declared

1952, to stockholders of record

Don W. Miller

time, naturally will swell the
aggregate.

has

June

Tire CORPORATION

to

same

around

at

record

1952.

FURNITURE

LEE Rubber &

con¬

And Atlantic Refining Co.'s of¬
fering of 1,000,000 shares of addi¬
common,

August 8,

been

market around July 16.

tional

of

stockholders
m.,

August

payable

better

have

$100,000,000

subordinated

30-years,

p.

pe

stock

common

mailed.

Dated

expected when it went into regis¬
tration

to

of sixty cents
the

offerings for the

new

month

Corporation,

of Director,

Board

a dividend
declared on

B.

DAYSTROM

it

In

the

1952,
be

was

it

of

rule.

Swelling the Total

today,

o'clock

ELECTRIC

meeting of the

a

share

DAYSTROM

DIVIDEND

Notice

Dividend
At

AMERICAN

of

Don W. Miller & Go.

Lexington Avenue, New York 17

OPERATING UNITS:

Co.,

con¬

as

420

Vice&

rector of that company.

negotiated lines since the

on

return

First

Gottesman

Inc., in charge of its commercial
operations, has been elected a di¬

ding. But they prefer to do busi¬
ness

Dauman,
of

of record

business
"

DUNNING

Executive Vice-President and Secretary

THE YALE & TOWN! MFG. CO.
''■■■■■•:•••-

-

-

_____

The Commercial and Financial Chronicle

48

.

Thursday, July 3,1952

..

(48)

BUSINESS BUZZ

Washington...
A

Behind-th«-Scene Interpretations
from the Nation's

•1<,£!iit^

TCT&-

X Cr

xl■ W\A/

Capital

lii^te-53^#sv»

•p'

\^g\W§

gl

y*

,

aua*^ii^c«My

//'* i

iiv •

mmmmmmmm
^ ^ »ir

ise

14$ «

811

V*'

amounted to all
to a censure

what

WASHINGTON, D. C.—What is Congress
Truman shooting at any¬ practical

purposes,
of his conduct.

Harry
way?

Among sundry other little topics

attempt to build up a record of
legislation upon which
his successor and the rank and file

(3)

and

for election;

could stand

There

cloth—$2.95.

two classes.

who
and

ington

8,

Affairs

Public

—

C.—cloth—$2.75.

D.

Foreign Traders

for

edition

second

—

—

Irving Trust

New

Company, 1
Wall Street,
York 5, N. Y.—paper.
Growth

Insur¬

Government

of

States—Frank

United

ance

in

the

Lang

—

Reprinted

March-

from

1952 issue
of "American
Security"—Chamber of
Commerce of the United States,

April

Economic

Washington, D. C.—Paper.
High Cost of Conflicting Public

Policies—Associa¬

Transportation

tion of American Railroads, Trans¬

portation Building, Washington 6,

They think that maybe Tru¬

of it.

Dies

Book

Fact

say,

other things, precipitate a man, after adopting the Leftist
sharp issue with his opposition on point of view, although originally
a couple,
or perhaps even a few a tolerable conservative, may have

Edward

Press, 2153 Florida Avenue, Wash¬

in private, "he's nuts,"
don't try to make much out

are

Street Curtain

the Wall

Behind
—

those

into

388 New¬
15, Mass.—•

Boston

Street,

bury

There are, of course, a large
such as when will
the Reds open up with their artil¬ number of people who have come
lery in Korea, who will get whose to believe that Harry is invincible,
that no
matter how many
nomination and so on, this is a and
voters he antagonizes or no mat¬
live subject for discussion
on
ter how much of a failure he de¬
Capitol Hill.
What a President, who is al¬ velops in his legislative program,
that
nothing matters.
If Harry
legedly retiring from office, usu¬
Truman is not running, however,
ally does on the eve of a Presi¬
dential election, is to try to set a it is odd to many Congressmen
why the President should leave
course of political conduct which
will offer the maximum advant¬ such a legacy of party disunity,
and frustration to a
age as he sees it for his party and bitterness,
for the No. 1 man on the ticket successor. It would seem that the
scandals of the Truman Adminis¬
of that party, his successor.
If any kind of conventional po¬ tration were a sufficient normal
litical strategy were followed, the handicap to overcome.
Those
who
try to figure out
jj?ilring President should try to
€he best of his ability: (1) to heal what
Harry
Truman
is
doing
discord within his own party; (2)
divide themselves pretty sharply
of speculation,

achieved

Loeb—Barron's Pub¬

M.

lishing Company, Inc.,

*

*

*

Survival,

for Investment

Battle

The—G.

^

D.

C.

among

principles, to provide a basis
of argument against the opposi¬

come

tion.

may

basic

ft*i members of Congress

of both

it, Truman has done
just about everything imaginable
to increase the dissension between

parties

see

Oil Record, The—1952 Edition—■
"I

am

efficient!—It's just that you always

so

love
with his political merchandise. He
unwittingly

fall

to

in

ask

for the

letters

I've

seem

to

Petroleum Industry
New York

misplaced!"

ington 5, D. C.—fabrikoid—$6.00.

love his pro¬

have come to

Projects, 1420

Avenue, N. W., Wash¬

There
is no
dispute but that without giving a firm commitment
for its own sake, and to heck
with the party.
Truman, giving no credit what¬ he would head a third-party ticket.
*
*
*
ever
to Gov. Dewey for perhaps Then the man against whom they

gram

Proceedings of the First Inter¬
Conference

national
turers

—

of

Manufac¬

Association

National

of

revolting,
Mr.
Truman,
view, making an ineffective campaign, were
Manufacturers,
14
West
49th
the conservative and the left-wing however, Mr. Truman's conduct of figures this was the gimmick seemingly abdicated. Finally, Sen¬ Street, New York 20, N. Y.—cloth
Russell
made
it
clear
he
which slayed 'em.
The President ator
elements of his party by siding the last several weeks makes a
—$3.50.
:
has given no indications of being would take no walk even if the
only with the latter. His record very definite, if peculiar kind of
1948
civil
more tender toward Congress just
rights
plank
were
Share Ownership in the United
of legislative achievement is seen sense, to many Congressional ob¬
because
it was organized
by adopted this year by Democrats.
States
Lewis H. Kimmel
The
as meager.
Instead of picking one servers. They have no more au¬
another

From

point

of

—

—

or

of

few issues as the basis

a

even

has

he

fight,

a

made

almost

everything an issue. He seems to
have chosen
legislative frustra¬
tion

superior to the success of

as

hht program in

Congress.
*

*

♦

President Truman's recent
of creating

ord!

rec¬

dissension among

information

thoritative

the

than

he

than

Democrats,

was

the

toward

"Republican Eightieth
office boy, the cop on the beat, or
gress."
somebody's maid.
*
❖
*
What
an
amazing number of
MC's

the Hill will say private¬

on

In

With

Con¬

were

in

tration

.

this

known

a

States

the

Righters

complete state of frus¬

has

almost

been

as¬

negation, with
no
enemy and no trusty can¬

nomination.

Democratic

the

seek

movement.

will

Understanding Our Free Econ¬
omy

light of this possibility, didate.
States
Righters
are
trying
They
the

ly, however, is that they are con¬ the
have, however, come to
vinced Harry Truman means to rather frantically to breathe life
fear that either Truman will run
run.
They don't mean that he will into the moribund Dixiecrat or, judging by his actions, Truman
In

6, D. C.—paper—$1.50.

and

back

a

strict

radical.

So the

expect him to con¬
wires between the capitals of the
This movement, carefully nur¬
tinue to maintain emphatically up
tounding. He has kicked in the
old Confederacy have been burn¬
tured for four years, was aimed at
teeth the
attempt of Chairman to a point, his private and public
ing with long distance calls. Gov.
purloining several Southern states
Frank McKinney of the Democrat¬ oosture of refusing to consider a
from the Truman column on the Hugh L. White of Mississippi tip¬
ic National Committee and others third-term nomination.
ped the word the other day, before
supposition Truman
would run
The point at which Truman will
to work out a compromise on civil
the state Democratic convention,
this year. By subtracting electoral
rights. He again vetoed the bill to stop maintaining his hostility to votes from the national Democra¬ that the Southern conservatives
J3erriocrats

Brookings Institution, Washington

fact, they

were
give states control over the tide- the terrible burden of the Presi¬ tic
again contemplating a third
ticket, the southern conserva¬
is that point
where the
an issue deep in the heart dency
tives would indirectly help to de¬ party, and that he was backed by
of Texans, as well as those of leaderlcss, drifting Democratic na¬
the Governors of South Carolina,
feat Truman, elect a Republican.
California, Louisiana, and Missis¬ tional convention has, in a manner
Georgia, Louisiana and Texas.
If
Truman
were
of speaking, gone through 10 days
defeated,
so
sippi.
Dixiecrats will stick with Rus¬
The veto of the immigration bill and 50 indecisive ballots. As one might be depreciated the left-wing
sell through the Democratic con¬
Senator anonymously pointed out, crowd around him, and the rightwas also a major achievement in
vention in Chicago. If they revolt
creating dissension. It is not only "even Truman will begin to look wing group would be appreciated it will be
by separate action later.
the South which disliked this, but awful good to the Democrats by in relative significance within the
They will stick with Russell be¬
Democratic party.
also a great deal of the northern that time."
The ultimate
cause
they are, as it were, stuck
mid-West.
This
veto
probably
of the
Mr.
Truman's conduct toward goal was the restoration
with him. Whether later they will
two-thirds rule in 1956, thereby
pleased only those Democrats of his
own
party,
Congress,
and
find a new standard bearer, re¬
the large cities.
legislation
would
then have a giving the South a chance to veto mains to be seen.
As for Truman's seizure of the
radical northern
meaning in terms of this specula¬ any upcoming

(An Introduction to Econom¬

ics)—for secondary schools—Fred

Fairchild

Rogers

Shelly—D.

Nostrand

250

Fourth

Inc.,

pany,

Thomas

and

Van

New York 3,

J.

Com¬

Avenue,

N. Y.—cloth—$3.96.

Witness—Whittaker Chambers—
Random House, Inc., 457

Madison

Avenue,

N.

New

York

22,

Y.—

cloth—$5.00.

lands,

put

to attempt to
the union shop, it is

Democratic

Presidential

aspirant.
possibility.
across
ex¬
This conspiracy suffered a num¬
For
one
thing,
Truman
has
tremely difficult for most on Capi¬ olayed it straight down the line ber of blows. One of the first was
tol Hill to figure how this has for the radical
wing of his party. that Senator Harry F. Byrd of
proved to be a net advantage for This extreme radical wing is at Virginia would not lead the re¬
the Democratic party or how it
minority, but to that group, to volt because he would have to
steel

industry

Truman's successor

will help Mr.
the

as

Presidential

candidate

on

the Democratic ticket.

tive

Hubert

tive achievement has been, for

all

home

to education,

aid

compulsory

insurance, and so

has,

on,

hollow

again

By his steel seizure the Presi¬
dent risked getting only the shell

fore

of

a

Defense Production

Both

tension.

the

Act

military

ex¬

and

appropriations were
substantially. At the time of
writing, a cut of a great deal
more
than 50%
in, his proposed
program of 75,000 units of public
housing was almost a certainty.

foreign

aid

cut

Far from
approve a

dustry,

persuading Congress to

The

President

got




from

his

those
hand

convention,

second

boys
until

be¬

and

and

the

thing
to

has

Truman

reconstruct

for

campaign pattern of
Mr. Truman

Four years ago

the

were

of

the

rescue

cement

ut h e r n

Analysis
a

review

try

of

this

of

the

available

Available

on

Company and
Cement Indus¬

request.

around

14^/2

re¬

Then

the

semi-leftish

Senator

Investment

Securities

"Chronicle's"

coincide with

own

Square, Boston 9,Mass.

Telephone

Teletype
BS 69

views.)

tack
a

that Congress

bunch

enemies

whom

them.

only

of

of

bums

the

Harry

-

NV

Trading Market* in

Kingwood Oil

FIRM TRADING MARKETS

before

chasing around the country

with

of
o

LERNER & CO.

(This column is intended to

in

1948.

sisted

S

he

went

seizure of the steel in¬ from

the

have

of

has been

himself

fast-growing

California.

from the Democratic

so help him Bess, that he
yield to no draft.

done

pressed.

in

(common) STOCK
producer

HUbbard 2-1990

notaries,
will

nomination,

Mason-Dixon
unbelievably de¬

the

leading

the

certifies in public
the

be

CLASS B
A

and may or may not

will

Truman
the

Senate.

changing his Richard B. Russell of Georgia ac¬
delegates have cepted the favor but, however,

His convention..
perennial "Fair Deal" repertoire of
By his devotion to the left-wing,

of course, failed.

the

would

RIVERSIDE CEMENT CO.

Harry

practical purposes, almost nil.

health

in

below

line

SUGGEST

the

until

gone

seat

Presidential

spirits

WE

10 Post Office

of

chance

mind

his

Vice

Fair Deal

a

Potential

Appreciation

flect the "behind the scene" inter¬
pretation from the nation's Capital

Humphrey and the entire

left wing, they will not give up on
a

Mr. Truman's record of legisla¬

sacrifice

Should Russell take

For

Large

con¬

who

peepul,

could

FOREIGN

SECURITIES

South Shore Oil Cr Dev.

Beneficial

r.ARL MARKS & P.O. INC.

Corporation

m

FOREIGN

SECURITIES SPECIALISTS

50 BROAD STREET...NEW YORK 4, N. Y.

TEL. HANOVER 20050... TELETYPE: NY 1-971

Hill, Thompson & Co., Inc.
Trading Department

70 WALL

STREET, N. Y. S

Tel. WHitehall 4-4540