The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
UNIVERSITY
OF MICHIGAN
ESTABLISHED 1S39
-JUL 31 1953
The Commercial
B8SINESS ADMINISTRATION
4.
UBEABY
.
Financial
Reg. U. S. Pat. Office
Volume 178
New York
Number 5242
EDITORIAL
Additional Commentaries
A
Another "Hoover Commission" is about to be¬
"An Inside View of the
In his article
gin
two-year study of the Federal Government
a
its
and
It will
ago
functions
tions" which appeared
leading to recommendations.
recalled
be
that
some
half
dozen
ex-President Hoover performed
William
years
similar service for President Truman. Certain of
his recommendations (not
always unaltered) were
law; others have not. The terms of
enacted into
reference of that
Nations.
take
do with whether
or
others
turning
over
—and,
one
of its
Mr.
not functions now
ent in
The
brought
are
-
of
meetings and re¬
During the spring
months, corporation managements have presented ac¬
counts of their stewardship to stockholders and, in the
The
that
times stated
prospect .in
while
ahead.
happen in
are
precisely
how much weight its
findings are like¬
by
ly to have with the politicians who—with deep re¬
gret be it said—control final action. It may
Continued
on
be said
page
SECURITIES
are
more
remarkable for""
and
taxes
other
considerations
D.
Thomas
Sears
Sen.
U.
L.
whose busi¬
ness
it is to seek out, interpret and to evaluate such
phenomena in the economic and business world, these
references to increasing competition and the return of
a "buyers' market" are deserving of more attention from
investors than they have received to date.
Several in¬
dustries have already felt the effects of over-supply of
Burdick
on
Continued
22
lies..,
which
period
In the minds of many
earth, want to trust
the destiny of this great republic to temporary revolu¬
tionists? I am sure the people of this country, when fully
government
the
peculiar to this extraordinary period.
at any
expected to go in these
.
postulations are found to be reflect¬
ing trends which have been opera¬
tive for many months but have been
hidden from casual or superficial view
tell,
to
some-
pressed, there has been, nonetheless,
a
frequently recurring refrain with
reference to narrower profit margins
and more keenly competitive mar¬
kets.
More
often
than
not,
these
The
given moment, who is in con¬
trol of their governments.
Do the people of the United States,
who for 156 years guarded and pro¬
tected the only absolutely people's
have
opinions of the business
what is not said than for what is ex¬
numerous
so
difficult
corporation
While for the most part, these
statements
Council today is
countries which
be
annual
ww -y
coup
would
it
of
season
usual guarded language,
many
revolutions
these
which have already gone through some
Finds capital goods industries maintaining
ports has recently drawn to a close.
d'etats or other re¬
versals of policy, and of course their
tenure continues only until the next
revolution; and history shows that
simply discontinuing some
groups
profit margins, because of sales vol¬
but foresees increased flood of production in these
lines producing pattern already set in textile, drug and
distilling industries, in which full competitive markets
cause lower profit margins.
in control got there by revo¬
lution and
of profit in
major industries, with particular emphasis on
ume,
Dakota
which,
Calif.
Barbara,
changes in margins
the least erosion of
given today
facts
out
stability of their own.
no
powers
stage and with the information at pres¬
or
Security
up
have
must suppose, the desirability of the
hand, it is not possible to know
matters
has
Robertson
made
to state and local governments
how far the Commission is
po-
later issues.—EDITOR.
in
known, give us a clear picture of what can
a world government, which the Unit¬
ed Nations is fomenting.
^
present activities.
At this
appear
discusses
adjustment.
HON. USHER L. BURDICK
of the activities of the Federal Government
Federal Government
will
U. S. Congressman from North
by the Federal Government are really
appropriate governmental duties. It will also, ac¬
cording to dispatches from Washington, take
under advisement the wisdom or appropriateness
some
More
expressed by Mr. Robertson.
undertaken
of
those
The "Chronicle" of July 23 contained some of the
received relative to the views and opinions
and
Sears
various
letters
Washington, it will consider a good
more than the old body
was permitted to
into account, including some questions which
to
of
detailed the record
Robertson
Mr.
Mr.
the United Nations.
from
have
Santa
instability, featured by wars, revolutions and
revolts, for each country and contended that in view
of the record, it is worse than futile to expect them
to make any contribution to the peace objective of
Although the matter is not at all points as clear
and specific as it might be, the "Hoover Com¬
mission" now about to start functioning will work
under broader terms of reference. According to
deal
Investment Counsel
in the "Chronicle" of July 2,
Robertson, Member
litical
Commission limited it to sug¬
gestions for changes in the organization of the
Federal Government designed to improve the ef¬
fectiveness and efficiency of its operations.
word
A.
Buyers7 Market
By THOMAS D. SEARS
United Na¬
of the New York
Bar, described the political conditions that have pre¬
vailed
(and still prevail) among those countries
which are currently, or within the past six years
have been, Governors of the World by virtue of
holding seats in the Security Council of the United
somewhat
a
Copy
a
Profit Margins in
On "United Nations" Article
We See It
As
Cents
Price 40
7, N. Y., Thursday, July 30, 1953
on
page
"
Continued
28'
REGISTRATION — Underwriters, dealers and investors in cor¬
afforded a complete picture of issues now registered with the SEC
undertakings in our "Securities in Registration" Section, starting on page 31.
on
page
20
NOW IN
porate securities are
and potential
Chemical
Slate and
Bank
&
*i
Municipal
CORPORATE SECURITIES
Trust Company
Complete corporate and
personal trust facilities
Correspondents in all
parts of the world
19 Offices in
New York City
Bonds
COMMODITIES
Founded 1824
Bond Department
Dean Witter & Co.
14 Wall
Street, New York, N.
Y.
THE NATIONAL CITY BANK
Common Stock
on
Principal Commodity
Members of
and Security
OF NEW YORK
Exchanges
San
Francisco
Los Angeles •
•
Boston
•
Chicago
Honolulu
Bond Dept.
T. L. WATSON &.
Members New
American
CO.
To
1832
Active
York Stock Exchange
Stock Exchange
Members
American
Tol.
Broad St.
DIgby 4-7800
Stock Exchange
New York 4
Tolo. NY 1-733
Denver
Spokane
other Western Cities
NATIONAL BANK
OP the
Brokers
CANADIAN
Power Co.
BONDS & STOCKS
COMMON
New York 4, N. Y,
Telephone WHitehall 4-6500
WIRES TO
MONTREAL AND TORONTO
Goodbody a Co.
;
Teletype NY 1-1843
Bridgeport
DEPARTMENT
Teletype N Y 1-2270-X
DIRECT
gO Broadway,
Orders
CANADIAN
Bruns
Perth Am boy
MEMBERS
115
NEW
BROADWAY
NEW YORK
YORK
Central Maine
Executed On All
Canadian Exchanges at Regular Rates
G.
city of hew
f
Maintained
and
SECURITIES
Hardy & Co.
30
Banks
to
,
4
CHASE
THE
CANADIAN
Roqumnt
York Stock Exchange
Markets
Dealers,
NEW YORK CITY
_
Los Angeles
and
Commission
H.
New
Teletype: NY 1-708
& co.
1915
Principal Exchanges
50 BROADWAY •
Salt Lake City
Over-tlie-Counter Trading Dept.
Members
ESTABLISHED
r
Commodity Exchange, Inc.
Circular
CaThogle
Members of All
ESTABLISHED
Corporation
ft!
MUNICIPAL BONDS
Net
Alleghany
1
YORK
STOCK
1 NORTH
EXCHANGE
LA SALLE ST.
CHICAGO
Analysis
Pqmcuon Securities
Grporatiozi
4Cf Exchange Place, New York b, N.Y■
WHitehall 4-8161
request
IRAHAUPT&CO.
Members
and
York Stock Exchange
Principal Exchanges
New
other
111 Broadway,
WOrth 4-6000
Teletype NY 1-702-3
upon
Boston
N. Y. 6
Teletype NY 1-2708
Telephone:
Enterprise
1820
2
The Commercial and Financial Chronicle
(346)
The
and
WE POSITION
IN
TRADE
participate and give their
American Marietta
reasons
for favoring
they
are
Common
Copeland Refrigeration
he regarded,
to
offer
as an
particular security,
a
intended
not
are
Gammack & Co., New York
Light
Easton
President, G. A. Sax ton & Co., Inc.,
New York
Company, Easton,
Pennsylvania, Capital Stock
Tiie
Southern Production
City
Trust
Pa.,
Easton
is
Trust
State
a
Co.,
Bank
Tucson
Easton,
founded
Taylor Oil & Gas
On
in
1390 and may well have been one
of
the
to
institutions
which
a
Strong Cobb
Gas
Electric
Power Common
the
previous
of
ferred
h
w
ba
k
n
both
shares
producing
business
buyers
therefore of
for
York 5
Teletype NY 1-583
hope
There
sign
is
Easton
ter
63
Hubert
F.
Atwater
years,
intends
Specialists in
is
af¬
which
retire
to
is
from
profitable and growing.
1917,
increased
from
January when
Members
American
120
Stock
dend
in
value,
50c cash in
BROADWAY, NEW YORK 5
dend
the
July,
in
as
the
divi¬
regular
paid.
was
by
This
payment
of
that the divi¬
so
paid in 1953
rate
Tel. REctor 2-7815
stock
to
last
at the
was
in
the
ings
first
were
increased
book
June
on
Trading Interest In
$2.40
of
of
per
more
or
The
record
dends and
Bassett Furniture Industries
the
last
been
Camp Manufacturing
as
and
utility stocks to
the appreciation pos¬
all
of
has, of course,
securities
This
romance.
proven
to be
com¬
pletely wrong in the past several
years. By the same token, in the
type of mafket which many peo¬
ple
seem
to
feel
we
are
pppFoaching,
one
be
hesitancies
certain
tainties,
have
ing
in which there vVill
power
stock
the
would
uncer¬
and light
to
seem
greater liklihood of be¬
steadying
a
and
strong
a
company
Book Value
End of Year
industrial
of
devoid
$4.98
$1.50
$68 28
5.02
1.25
64.80
time
.80
61.28
influence
in
an
possibilities.
4.86
.55
1948___
3.81
Book
value
the
upon
58.09
Many
54.33
the
at
end
of
each
25,000
shares
of
stock
outstanding.
devoid
of
sections
same
appreciation
of
the
country
An Attractive
<|(r ing assets
lior-ttto*
about
Gas and Oil
leading
been
the
leading if
State
in
Arizona.
the
To
be
specific,
return
is
approaching 5%
Speculation
an
well located
owns a
with
are
offices
about
★
bank
Substantial
reserves
for depre¬
year
and
replacements
no
Morgan & Co.
New York 5
i
1-2078
is
today
of
net
balance
out
earnings,
to
capital
There would appear to
unrealized
investments
losses
that
stock
Company,
of
in
are
quately covered by
The
paying
the
loans
not
be
or
ade¬
reserves.
Easton
of
Tucson
has
a
ited this figure does not represent
the population of urban Tucson of
about 168,000.
These figures show
growth
even
the
over
census
figures of 1950. The growth
of the
area
the
a
to
both
southwest
to
as
general
is
population
importance
impressed
visitor to that part of the
each
on
successive
in
upon
coun¬
traded
market.
for
in
Undoubtedly,
which
that
occasion.
expenditures
Tucson
past
the
in
several
grow.'
The
stock
is
over-the-counter
weather
one
for
is
Tourist
around
and
during
be
to
what
as
about
Light
&
the
some¬
Y
•
'
•
Gordon Graves & Co.
Electric
30 Broad Street, New York 4
brief background
a
Gas
Tucson
Power
this
serves
V;.
'
Company
The
area?
which
and
enlarged sales.
est
utility
with
minor
said
that
the
asked
for
years
ago
a
is
has
never
increase.
rate
a
and
it
Two
received
25-year franchise from the
new
City.
Arizona
exceptions
company
the
grains,
for
the
is known
re¬
all
cases
cattle
area.
and
for
appearance to the
many
hay
desert-like
a
Of
of
its
barren
uninitiated still
provides
grazing
raising industry in
course
this
section
widely for its deposits of
around
Tucson.
Tucson
center
with
is
the
It has continued
to expand
endowed
with
excess
ca¬
pacity.
transportation
Southern
Pacific
*° i
mm
<51
u.i
Blffl
| mm
^
to
*
occasions
in
of
common
the
con¬
last
and
$2.44
was
the
shares,
share has
per
mounted
^'Sav
year
share
per
*
■<&.
in¬
past,
sizable increase in
a
net
the
on
500,000
shares
$2.39
360,000 shares the previ¬
ous
on
for
been
end
of
of
the
which
shares
not
compared
as
Much
year.
to
earning
is
shown
earned
had
outstanding
against
the
NORTH and SOUTH
shares
by
March
$2.55
31,
1953
360,000
on
CAROLINA
MUNICIPAL BONDS
■F. W.-
figure
500,000
on
outstanding March 31,
as
shares
CRAIGIE&CO.
RICHMOND, VIRGINIA
Bell System
1952.
and
total
and
of
of
sales
commercial
industrial
33%.
gas
these
is
residential
although the
use
demand
The
revenues
for
has
been
that
at
the
current
Over-the-Counter
in¬
creasing steadily.
Dividends are
paid at the rate of $1.60 a share
so
Teletype: RH 83 & 84
Telephone 3-9137
Of the company's
revenue, elec¬
tric power and light provides 67%
the
Specialists in
VIRGINIA—WEST VIRGINIA
put in operation by the
1952
and
therefore the
earnings
of $2.64
Since 1932
addi¬
these
provided
were
above figures do no reflect much
benefit from 1952's financing. A
continuance
of
this
growth
in
of
Ci
m
rfi
number
price
of
Quotation Services
for 40 Years
about 30 V2 the yield is 514%. This
yield is somewhat under that ob¬
tainable
utility
son
the
on
number
a
commons.
for
natural
of
a
ho«R '"Of
company
sufficiently ahead of the growth
of the City to anticipate its grow¬
ing needs without being severely
pinched and yet is in no sense
such
WHitehall 3-2'840
It has the low¬
in
rates
two
of
and
Telephone
company
continues to record peak demands,
increased numbers of customers
crops
cotton,
Bought—Sold—Quoted
bases
known
trade.
years
:
With this
up
abundant
Common Stock
where around $35 million annually
and
will
no
doubt
continue
to
made
produce
Company •
pay¬
business
best
estimated
are
bulk
now
growth.
is
the tourist
great
in
offices
one
this
makes
the
Tucson
of
which
vegetables,
gion which
branch
country.
The land in the vicinity of Tucson
consists of fertile irrigated sec¬
selling at a large a wide assortment of minerals
discqunt from book value, affords which have been
produced for
a
satisfactory return with oppor¬ periods going
back
200
years
tunity
Ideal flying
the
tional
the
Trust
Its
of
facilities
as
our
base,
important Air Force
corporated
and
.
$1,800,000
the
72,GOO in 1940 to an
estimated 190,000 in 1953. The in¬
City
Oil
employed
are
of
tions
the
funds.
about
substantial
to
Commonwealth
Air¬
About
about
around
tinually
building and antici¬ try
one-third
adding
usually
repairs
The
Teletype NY
community,
thereto.
request
Dlgby 9-3430
Company
are
charged each
pated
31 Nassau St.
and
banking house
which
ciation of the
Peter
Trust
established
fully rented.
on
on
should not decline in the foresee¬
able future.
Easton
month.
company's net
capital. population of 50,000, but because
loans and this incorporated area is so lim¬
of
The
totals
now
which
from
wires
is employ¬
cluding
of
growth
times
\r.te
serves
Prospectus
65
Va¬
$17.9 mil-
were
discounts
The
Canadian
up¬
the remainder Christmas and
cation Clubs.
E
civilians
the population of Pima
continued
a
which
Union
remarkable
County, of
Tucson, the second large
ward trend and are now
$19.1 mil¬ city in Arizona, is the county seat
lion.
Of these $11.3 million are
and
the principal source of the
savings, $7.4 million general and
county's population, has grown
Deposits show
Hughes
several
has
NY 1-1557
Orleans, La. - Birmingham, Ala.
Mobile, Ala.
Direct
industrial
the
the
not
the
St., New York 4, N. Y.
re¬
II
one
Exchange
Exchange
-
In
spite of the necessity for
providing additional financing on
and
Stock
Stock
in¬
small
industry. A
on
been
Company
overly
shown
York
American
are
trends since the end of World War
have
given in the table is based
year as
then
investment list, while at the
not
has
year
investors
many
considered
have
1950.4.91
Lynchburg, Va.
TWX LY 77
oi
has
years
Dividend
li949___
STRADER,TAYLOR & CO., Inc.
divi¬
eacu
follows:
1951___
Life Insurance Co. of Va.
LD 39
lor
calendar
Per Share
1952
Dan River Mills
50%
earnings,
Earned
Commonwealth Natural Gas
share
.
book value
five
and
than
of
the
on
shares
above market value.
American Furniture
earn¬
$63.87
was
30,
1953
share
per
number
value
Too
be lacking in
half
long-
a
with stocks of the util¬
ity industry.
sibilities
In
opinion,
my
same
1952.
about
growth potential not usually
associated
arrival
per
more
to discuss but the issue has never¬
term
five
importance
in the classifica¬
plants
the
the
of
some
stock of the company we are
theless,
four
roll
Stolie
Carl
was
shares
10%
a
dividend
followed
was
25,000
addition
cash
$1
Exchange
Exchange
lacks
relatively
permanent installation.
a
a
se-
and
e
of
thousand
appeal of the previous
Capital, Surplus, Undivided
suggestions. It is perfectly obvi¬
Profits
and
Reserves
(excluding
ous, in contrast to the action of
reserve
for
Income
Taxes)
on
these
two
stocks, that no near
June 30, 1953, amounted
to $1,term
price enhancement of such
756,427.83. The Capital Stock, 27,degree is likely to occur in the
500 shares of $10
par
ffipONNELL&fO.
t
a
which
has
New
television
at Davis-Monthan Air Force
dramatic
The
Rights & Scrip
d
business
a
city
one
ing several thousands.
that
more
New
HAnover 2-0700
over
and, what is important to
number
craft
a
perhaps
bit
and
scene
is
to
situation
Trust
Company,
a
attention
The
stations
tion oi the aircraft
na¬
given
the
people.
station
for
employment
radio
cent
ture. This time
no
that
Members
3,000
are
and
volatile
early
liquidation.
an
Steiner, Rouse & Co.
dustries but of special
natural gas
price to in¬
a
providing
a
at
selling
are
2)
Manufacturing consists largely of
the
in
(Page
Bought—Sold—Quoted
&
—
scheduled for completion this fall.
17,
dicate that the
Exchange
Stock
at
Light
Stock
ditional two television stations
McGee Oil In¬
dustries
many
Electric
Common
the electric light company, an ad
at 20 and Kerr
e n
he complained
1920
120 Broadway, New
York
were
those of Hugoton Production
Associate Member
New
this
officer
Corporation
Since
the
in
column the recommendations
New York Hanseatic
BArclay 7-5660
had
appearing
that
Stock
occasions
prominent
United Utilities
Established
Gas
Co.
Members
Boston
re¬
New
Stolie,
President, G. A.
& Co., Inc., New York
City.
Light &
Rights
&
Co.,
Stock
Corp.
bank
At¬
25 Broad
two
privilege
&
Louisiana Securities
Pa.,
F.
Saxton
which this writer has
on
Easton,
Hubert
—
Gammack
Carl
City
Alabama &
City. (Page 2)
Tucson
STOLLE
CARL
Co.,
Stock
water,
York
and
Selections
Trust
Power
Polaroid Corp.
United Gas
Easton
nor
sell the securities discussed.)
to
HUBERT F. ATWATER
Natural Gas & Oil
American
he,
to
1953
Week's
Participants
Their
Capital
(The articles contained in this forum
Boston Edison
Common
This
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
American Maize
Pacific Power &
Security I Like Best
.Thursday, July 30
..
this
is
discounting to
future
certainly
a
in
of
other
Pgrt of the
that
this
good share
Continued
there
rea¬
is
a
National Quotation Bureau
Incorporated
some extent
picture
of the
Established 1913
but
rea-
46 Front Street
CHICAGO
on
page
9
New York 4, N.Y.
SAN
FRANCISCO
I
Volume 178
Number 5242
The
The Commercial and Financial Chronicle
...
(347)
Prospects for Prosperity
By
INDEX
W. W. TOWNSEND*
President, Townsend-Skinner & Co., Inc., New York
■
•
Predicting
valley of depression
a
the heights
of
the rug and
debt.
The
reached, Mr. Townsend
of fiscal foolishness cannot be swept under
cautions 20 years
Korea and
to build up greater liquidity
keep in mind the fact that even a slow-down
might hurt them, because it would hurt their customers/ Says
long-term prosperity outlook is good.
fear
possible
any
mis¬
were
understanding because of what is
of
to
fiscal
swept
sequences
outlook
prosperity
these
lem
for
is
-
In
is
for
that
con¬
and
story
of
who
reached
of
achieve
W.
reach
W.
goal
Townsend
In
order
to
had
to
they
of
the
perilous
steeply
rose again
heights, which they finally
attained.
The analogy is apt.
stand
of
There is
be
one
in
The
uncertainty.
the heights
only
see
not
concerned
They
us
this
is
the
about
no
is
us
exist
making
are
all
and
crossing
without
to
loss
limb. Not all of those will
or
with
lieve
ticipated
averted
done
is
and
their
chances
the
either
existence
We
end
or
of
of
which
in
the
than
would
it
weeks
the
tude
its
from
they
it
evils
those
have
Federal
of
months
or
the
John
most
outlook
his
were
good—but
Abstract
before
the
of
a
talk
Michigan
Loan
League,
July 21, 1953.
by
Mr.
State
atti¬
it
because
plainly just what
very
he
money
money,
with
had
it and how good that
do
Mackinac
Island,
have
us
bank
to
about
ever
Industrial
National
Redeemable Dollar
Movie
Leon
Ohio
•
Continued
but
no
on
page
York Stock
As
•
We
Bank
See
and
It
Boston
•
Manchester, N. H.
Private
Wire
.
•
to
1
•
•
Business
22
__
Cinerama, Inc.
Chicago
i
Nashville
•
21
Bookshelf...-
Coming
CROW ELL,
LOS ANGELES,
Investment
From
8
17
27
Business Activity
Current
Mutual Funds
Observations—A. Wilfred
&
24
•
r-.
May...
MACKIE, Inc.
HA 2-0270
23
About Banks and Bankers
News
Singer, Bean
13
of the News—Carlisle Bargeron
Exchange PI., N.Y. 5
40
Teletype NY 1-1825 & NY 1-1826
5
—
35
Our Reporter's Report
Our
Reporter
on
we
16.
Governments..
Prospective Security Offerings...
Securities
22
___
Corner.-.
Salesman's
Market
The
Security
and
.
.
.
Like
I
GIVE
17
Securities
Public Utility
Railroad
33
___.
—
—
Best...
I
11
2
...
5
Industry. J
You
Washington and
INVESTMENT IN
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CANADA
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not
available
this
week.
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COMMERCIAL and
FINANCIAL
Drapers'
much to
has
Canada
plete
/
CONQUER
CANCER
31
_
You—By Wallace Streete
The State of Trade and
TO
29
—
Every
Glens Falls
'
13
Investors' Dilemma"—
Washington Ahead
Indications of
Field.-—
Recommendations
Dominion
* Worcester
WEEDON & CO.
CALIFORNIA
Johnson Oil and Gas
*
^
in Investment
Events
Einzig—"British
TELETYPE N. Y. 1-5
•
Kerr-McGee
■s
36
—
Securities
Dealer-Broker
WILLIAM
•
Does kin Products, Inc.
Cover
—
4, N. Y.
Schenectady
Delhi Oil Corporation
Stocks
Insurance
Man's
Canadian
'
(Editorial)
HERBERT D. SEIBERT,
Exchange
ST., NEW YORK
TELEPHONE HAnover 2-4300
Albany
19
Levenson
J.
REctor 2-9570
Spencer Trask & Co.
New
Go Hand-in-Iland,
Regular Features
PREFERRED STOCKS
Members
Los Angeles
*
19
_
Yalley Electric Corporation Places Largest Single Issue- 36
_
BROAD
18
Monetary
on
Canadian Delhi Petroleum
25
25
Survey
NYSE Governors Approve New Commission Rates
WILLIAM
:
Board
Sales of Candy
Attendance and
Says
The
specialized in
Conference
Teletype NY 1-3370
Philadelphia
"Column
Mich.,
9-5133
Direct Wires
every
what
known
tell you
Broadway, New York 6
Policy Fear Further Debt Monetization in Absence of
Published
have
61
18
Serious. Business Decline This Year, According to
The
figure
since
figures and
has
them
of
one
am
and
with
had
bank
had
have
We
analysts
1
For many years we
Philadelphia-Baltimore Stock
Securities Now in Registration
Figures
Watching Bank
Townsend
.
No
Securities
is.
money
they
Savings
the
factual
with his
which to
It
compre¬
Public's
Q.
a-
hence.
completely
and
of
reports
much
how
who maintained
they
that
many
J.F. Reilly &Co.
18
Merge
to
infor¬
the
he did last week
lesser
were
were
18
_
re¬
evil
because
Military Training.
puolishes
the
as
business
earliest,
and
And
been
have
16
of Universal
(Boxed)
as
It is the balance
more
the
in
report
have
the
there
*
and
all
hensive
the
losing the last W/orld War.
of
is
deliberately
in
many
lesser, by comparison,
evils
the
on
BO
;
of
report, if you like,
banking system.
It con¬
spells out
we
behind
later
Alegre Sugar
13
...
About
condition
few
nothing else.
era
an
indulged
Punta
...
Incorporated
Exchanges
is
there
preceding week
the
week
Report.
the
able
who
approaching
Warning!
Washington and
ap¬
mation which will be made avail¬
of
of
who recognize the
be
may
of
consists
business
during
tains
the existence
recognize
dangers
no
those
of
7
never
information
information
the
of
reaching the heights beyond are
likely to be somewhat better than
are
Serious
sheet, the earnings statement and
but
be¬
chances
but
collects
the
the
Reserve
three-quarters
about
who
probably
money.
trail
a
all
one
that
danger cleany an¬
and
A
making
ours
money
Reserve
garding
meet
whatever,
realists. They
Newport Steel
Be Simplified
(Letter to Editor)
Eisenhower Orders Restudy
is the track of the rabbit
Once a week the
members
life
mishap
no
are the
that any
they
*
(Letter to Editor)
Price of Gold
snow.
Federal
that
of
that
as
the
in
prep¬
negotiate
the
of
with
leaves
plain
arations possible to minimize their
hazards
of
and
full
and
land
done
not
*
Carroll Dunscombe Takes Issue With Frederick Shull
it,
some of these
be resolved. In
can
15
__
Spitz Argues Taxing Dividends Is Not Double
exact
an
method
which
by
Empire State Oil
Growing Business
—
checks, every one of which clears
through some banking institution
are
the pessimists.
Some
realize that those dangers
They
is
are
one
Fresnillo Company
difficul¬
economists,
error
Company
14
Members of Economists' National Committee
fair
90%
and are
valley.
regarding the dangers that might
be
encountered
in
the
crossing.
of
similar
in
Buda
12
Registration Requirements to
Taxation
nothing that we do except,
perhaps, to say our prayers, which
the optimists. Some of
of dark forebodings
are
are
1(1
Funston
George Potts
Richard
almost
helpful helicopter which can take
us
across
that valley.
Some of
us
9
Policies—Charles L. Clements
Money
sis
SEC
doubt.
is
4-6551
8
because
or
constantly
often
Keith
—W.
the last time
theirs
uncertainties
cautiously and on
bridge, nor will
There
is
STREET, NEW YORK
~
do—
do
for the cynical defi¬
an
economist as a man
of
proach
no
constructed.
will
he
which
There
in plain view
are
must be crossed
foot.
who
attainable, but the valley
are
are
nition
today at the edge of
obscured by
heights beyond
and
WALL
Gains Tax—Most Damaging to the Investor
the
responsible
somewhat
mists
the
that
assertions
"deadly"
as
obsoletes !
Obsolete Securities Dept.
99
7
Queer Document—John W. Beck__
Mutual Funds—America's Fastest
who
what
should
did
he
science,
for
distance before it
valley
do
he
the
And
none
your
5
6
—Hon. W. Walter Williams
world,
Public,
estimation,
is what
believe
the
We
as
Can We Get America to Live One-Third Better?
unpre¬
the
Q.
because
ties.
most
in
John
encountered
he
pas¬
extended
and
the
sits
factor
as
their
in
ridge which descended
a
Sound
to
—G.
to consequence
middle of that argu¬
there
that
somewhat lower crest and
a
negotiate
rather
a
Return
cause
the
in
either
Everest.
this
May
1
The Korean Armistice—A
'•
Peculiar Dilemma
a
may
or
may
not
economists believe
the
Mt.
of
known
finally
some
and
which lies im¬
the economists
peculiar dilemma. The
their profession is such
dictable
the
men
sage
faced
ahead
from
ment
the
read
then
con¬
they almost are compelled to
argue
Most of you
have
4
;
Wilfred
But
Union-Management Conference No Panacea of Labor Peace
problem
a
nature
some
cern.
to
in
are
garding which
basis
the
mediately
re¬
there
Hodge-Podge—A.
Outlook—Charles B. Shattuck.^
Estate
THE SEVEN DEADLY SINS
3
4
.—Clarence E. Bonnett.
prob¬
those
be
must
Economists in
term
outlook
Townsend-.-
be mitigated some¬
can
They
The
rug.
W.
Cobleigh.-..
U.
Telephone: WHitehall
years
cannot
be
how
is
Real
The Capital
It is the
near
crest
the
face
Prosperity—W.
for
experienced.
very
good.
Cover
Tight Money Policy Unwarranted—Marriner S. Eccles
United
States
two
under
we
what.
in
Buyers' Market—Thomas D. Sears
a
Agricultural
Tito's
The
Twenty
foolishness
longer
term
good.
never
follow, it should be established
early in this discussion that the
-
il
and
of
•
•
Business—Roger W. Babson
Urges savings institutions
reserves
For
Prospects
Can, Can—Ira
of rapidly increasing public and private
warns
in
•
.*
have to be passed before
may
prosperity is
new
a
.
Profit Margins
page
AND COMPANY
'
■
liCHIfilSTtlH
B. S.
Articles and News
3
1922
Securities
ST. JAMES STREET
WEST,
MONTREAL
Tel.
Members
of
UNiversity
The
6-2463
Investment Dealers'
Association
of Canada
/
-
4
The Commercial and Financial Chronicle
(348)
Thursday, July 30, 1953
...
■
|
able fields, American Can
is a
highly respected company, and its
common an equity of
quality, and
market stability. Not spectacular
Can, Can
By IRA U. COBLEIGH
Second
only to American Can
in industrial stature, is Continental
topical review of the two major units in the metal container
industry, American Can and Continental Can.
A
which has
Can
ber
of
rate
of
existence
The
show
Broadway
a
the same name as to¬
day's title is sheer coincidence.
Whereas that alluring theatrical
production
by
stresses
quite
a
synco¬
pated swing,
our
will
opuS
rather
em¬
phasize
the
swing to cans
Ameri¬
the
in
can
home, and
the current
market
swing
ing World War II;
earnings
pany
strictions
for
and can com¬
meager. Re¬
of tinplate
were
the
on
use
existed not only as a war
cans
but off and
measure,
of
had
been
till the
on
restrictions
These
1952.
end
slackened
sufficiently,
however, by 1950 to permit splen¬
restoration
did
of
Perhaps by now we're ready to
manufactur¬
U. Cobleigh
get just a little more specific and
who
those
heading
the
find
a
for
And
ers.
bit brash, re¬
Two Large
talk
the
about
not
Continental
is
They
in
encased
tin
industry
as
a
phrase
with
the
can't
the
get
powder
from
from
a
milk
or
rived
a
container
a
On
for
made
by
the
iced
and
may
by
to the
(in
tuna
tea;
well
a
service
oil
a
quqrt of
lunch on a
You
dinner
came
your way
drive
you
salad
tooth
frozen
breakfast
at
company.
station
and
consist of
a
your
soup,
glass of beer—all from
For
cans.
bride, a can opener is
necessity ranking equally with
a
with
use
each
in
cans
is expand¬
passing
day.
For
example, of all the packaged beer
sold, roughly 25% was in tin cans
—five
and
billion
of
them
for
1952,
increasing this year. Dog food,
earlier, is also a large
relatively new consumer; and
mentioned
and
a
new process
now makes
possible
the canning of whole milk. In the
soft drink field, National Phenix
Industries has introduced
line
new
a
whole
delivered, not in the
"pop" bottle, but in a
this demand, mind you,
traditional
All
can.
is
in
the
addition to the backbone
of
industry which has provided
for
decades
growth
food
examples
of
both
stability
and
to
can.
earning power, the
Metal containers for food
provided roughly two-thirds of in¬
dustry gross revenues in 1952.
Tin
The industry flagged during the
due to scarcity of tin and
vital military needs for steel (the
basic tinplate ingredient), so glass
containers moved ahead a bit dur¬
tin
the
largest
containers
in
It
about
turns
U.
S.
out
half
production.
of
total
also
It
is
a
large factor in the fiber container
field
milk
for
American
the
as
frozen
and
Can
has
bell-wether
rather
it
has
impressive
plant
the
no
trade;
in a most
expansion
engaged
additions
1945
have
account
by
its laurels
on
of
postwar
Since
food.
been
content to rest
means
totaled
to
$180
million and still further expansion
is projected.
For
$622
1952, American Can grossed
million
and
carried
$27.4
million
ratio
down to net income.
of
net
to
4.4%
and
is
rather
a
9.7%.
This
works
gross
from the prewar year,
the percentage was a
Continental
As
has
worked
out
this
the
removes
need
for
out
far
re¬
frigeration, milk can now, for the
first
time, be exported to the
tropies. Hottentots may now be
homogenized!
Leadership, too, has been
sales have been
can
largest
drums. It also is
ducer
of
handsome
About
Can
in
capitalization, American
(12/31/52) $73 million
had
funded
debt, $41.2 million
in
(which started its
lophane bags;
sion
of
now
of cork
to have
been
consider.
000 shares of
seems
completed, and
for such commitment
to
ties
is
of the
one
which
guished
D
yet
—
they
may
are
as
There
150,-
$3.75 preferred sell¬
I
not fearful
am
of any
crash
serious
from
a
Korean Peace.
It
is
that
fact
a
large
a
number of in¬
dustries
Mar¬
people
who otherwise
would
be
un¬
employed
of
reader
rectly
every
column
knows
is directly or
in
engaged
Studies
Almost
this
who
someone
that
show
indi¬
work.
war
the
inefficient
workers add up to much less
ing at 94 to yield 4%. Then there's
one
the
total of
would
think,
than
to a
probably
two-way item—the $4.25 con¬
vertible 2nd preferred (selling at
120) which can be exchanged at
any time up to Nov. 1, 1961
for
employed today.
The
poorest workers of this group will
two shares of common, and
lose their jobs if the Korean War
there
ends
finally
3,243,797 shares of com¬
are
listed
NYSE and currently
52, and paying $2.40.
This equity has
been appearing
on
"growth stock" lists, and you
mon
quoted
hear
at
talk
of
($4.22 in
$9
1952) blossoming out to
within the next five
Be
years.
tinental
has
quite
in
one
is
Con¬
may,
good
a
earner
long while, and only
(1922) since 1915, has
year
mail
to
oh
it
as
been
a
failed
check
that
the
out
rent
dividend
a
common.
market
preference
creasing, and
many
the
for
so-
million
women
working, so that they have to
rustle up some quick meals when
three million
or
This is less than
persons.
5%
of
total
and
These
be
inter¬
not
those who
or
in
wages
starts.
war
people
their work
asking
are
other
no
will
ested in
of
excess
their real worth.
earnings
$10
or
for
share
per
only two
By far the greater fear of
employment will
are
working
largely
forms
goods
on
installments
on
credit.
of
sold
other
or
This
includes
automobiles, refrigerators, televi¬
sion sets, homes and other things
of which there is now a surplus.
There may be a considerable turn¬
over of employment when the Ko¬
affair
rean
is
those
from
cleared
estly
hardships to others. In other
words, we are slowly changing
from
Good workers, in¬
their jobs and earn¬
in
striving
to
than
more
to
war
a
a
economy
peace
and
every reader of this column
should
conscientiously
consider
how
will
it
whether
affect him or herr
banker, manufacturer*
wageworker, or sales
a
merchant,
clerk, remembering that all of
The
consumers.
are
the
of
us
purchasing
is gradually
dollar
increasing;
prosperity is holding
up
better than anticipated;
al¬
though, of course, it is impossible
for the dollar to increase in value
unless present abnormal wages at
least
level
off.
1
Wageworkers fail to realize that
their
increased
past
war
wages
during the
have been due to
years
machinery. War always stim¬
new
ulates inventions which either
duce costs
If
draw
we
re¬
improve the product.
or
line
a
showing
the
money spent on research and new
machinery
by any company, it
will usually show how much the
company can pay in higher wages.
None
to
of
the
The
realize
us
inventors
wonderful
products,
and
what
of
our
owe
we
country.
machines,
new
come on
about to
the market keep me from
being
pessimist.
a
processes
With Fusz-Schmelzle
(Special
ST.
to
The
Financial
LOUIS,
Mo.
Chronicle)
Eschol
—
R.
Perry has become connected with
Fusz-Schemlzle
Bank
&
Building,
Co., Boatmen's
members
of
the
Midwest Stock Exchange.
both
up,
the instal¬
ment business.
ployer
the
engaged in war work
and those dependent on
terested
that
seen
in Korea will bring an im¬
proved situation to many to offset
peace
un¬
those
to
come
who
Inventions
are
working.
now
Stimulate
therefore, will be
power
war
ginal
It,
are
benefiting
give their em¬
dollar in value
a
Citizens Sees. Adds
(Special
to
The
Financial
Chroniclx)
GREEN BAY, Wis.—William H.
Payant
is
Citizens
Securities
connected
now
with
Company, 224
of
they get home,
the
in
Average.
AC
dividends
Current
against
w-J
common
faithfully
indicated
$2.25
per
for
this
its
of
or
many
order
net
a
its
4%
expansion
in
Stock
find
for
Exchange,
yourself
of
one
placing
these
of
Can
Continental)
or
an
container
certificates. A few shares
(American
you
for
that is!
openers,
of
American
tion
has
joined
the
Investment
Deetjen
Co., 120 Broadway, New York
City, members of the New York
Stock
New
Exchange.
He
will
cover
York, New Jersey and Penn¬
sylvania.
Ottawa
panic, but rather a con¬
panic, due to an excessive
boom in jobs, mortgages, and a too
rapid increase in wages.
Avoid
debt
TWX: NY 1-1467
Winnipeg
The
Financial
Malmstone, Jr.
with Loewi &
Street,
Midwest
Stock
is
now
Company, 225 East
members
Exchange.
of
5, N. Y.
SUGAR
Raw
Refined
—
—
Liquid
Exports—Imports—Futures
anything else.
or
further
a
check
find
I
for
1953
the
the
of
the
upon
that
Product
United
estimated
is
DIgby 4-2727
Gross
at
$360 billion.
over
that
agreed
with
spend
ally
so
least
at
a
lasts,
we
billion
$30
national
on
means
It is generally
long as the cold
Russia
will
Established
should
security.
This
decrease of only $20 bil¬
This
cease.
1856
annu¬
H. Hentz & Co.
lion if active fighting on all fronts
Members
figure of $20
New
York
Stock
Exchange
billion is less than 6% of the total
American
Stock
Exchange
given above.
New
Cotton
Exchange
the
seen
three
am
years
peak
we
business
of
unlqss further
On the other
optimistic
more
ation
ago.
I still insist that
employment for the next two
breaks out.
associated
NEW YORK
possible.
States
or
Chronicle)
MILWAUKEE, Wis.—Thane O.
Mason
•
if
Pay your bills
promptly and don't waste time on
and
to
next
STREET
market
have
rates
the
WALL
sumers'
National
Corpora¬
before,
99
a banking panic,
panic, or a stock
railroad
a
war
Securities
doing today.
are
said
have
situation,
Emanuel, Deetjen
&
•
I
they
as
panic will not be
As
D. E. Barton Joins
Department of Emanuel,
Benton, inc.1
Montreal
easily
TV
profit-
Canadian Exchanges
as
in
field, its $133 million working
(1952 year-end), its re¬
and
York
earn¬
eminence
capital
search
then
in
Present
$34 is around
Because
New
earnings
yield, and roughly 15 times
ings.
the
1923.
is
year.
in
$1.40,
since
share
been
paid
has
rate
it's
as
As
distin¬
Industrial
improved
an
of
the
up
ones
future
past,
one
day, when the morning
gong
starts the trading on the
important equi¬
make
o
37 Wall Street, New York 5
taxable
-
bonds
expan¬
three-fold choice
a
a
CO., Inc.
mon
Burns Bros. &
•
non
prod¬
Can
life
insurance, and
Roger W. Babson
requisite
Continental
investors have
investment
accounts,
work.
caps.
Financing the
increase
regular commission
Toronto
best
bank
from
Joins Loewi Staff
to:
the
in
fiber
and
ucts and crown
(Special
Wires
that
is
Wars
as
still
for every
dollar received, have
Cherry Street, members
cans are bound to
nothing to fear.
Midwest Stock Exchange.
popularity and use.
exemplary dividend record as a
Korea Has Not Been Too
7% preferred, in 1903 and was split Our population is, of course, grow¬
4-for-l
in
Expensive
1952)
and
10,886,000 ing but the sale of cans is actually
shares of common. The preferred growing
faster
(not
counting
It is not healthy for the mo¬
"canned" music). If the can
has been an investment blue
in-, rale of the country to have in¬
chip
LAMBORN &
for some 30 years, while the com¬ dustry continues as sturdy in the
efficient people able to get jobs
$1.75 preferred
STOCKS
DIgby 4-3870
believe
today
business and
containers, of cel¬
paper
"marginal" workers, and
among
still cautious
am
trend of
substantial pro¬
a
of
improvement in carry- called "defensive" issues we can
through for 1953 is a reasonable find lots of points in favor of cans.
What
expectation.
with
city population
in¬
Government, Provincial, Municipal
Corporation—External and Internal
Tel:
the
the world's,
now
manufacturer
Sticking to our two selections
1939, when for today, and viewing the cur¬
BONDS
on
Although I
to
recorded;
cry
Canadian Securities
at
unemployment
some
considerable turnover of employment in industries
dependent
on instalment business.
a
Douglas Ernest Bartow formerly
Orders Executed
for
its
An
quotation
war,
been
of
probably, the world.
1952, and
projection
Scarcity Hurt
with
technique for canning whole milk.
wish
America and,
to
book.
And the
ing
a
has
Co.
manufacturer
program.
fish
today's
cook
Can
can
ham and peas, washed down with
a
order.
great many years, Ameri¬
a
cream
in
can).
your
ditto your coffee. The
quite possibly ar¬
can;
office
your
on
can,
juice
orange
from them. From
the day you
start
you
spray
brush
can
routine. Let's get on
topic, cans. You just
away
time
may
that
in
splendid
are
For
ing
Can,
private enterprise.
However, enough of this open¬
followers
Mr. Babson, though cautious as to trend of
business, says he is
not fearful of any serious crash from a Korean Peace. Looks
num¬
of
and Continental is
whole, but about the two impres¬
sive units which, between them,
deference to the fact that dog food
increasingly
market
a
growth, its plant expan¬
sion, and research. In the last year
beer
Producers
turn out 75% of its total produc¬
member, it might have been more
tion. These two, as listed in the
so.
For
instance, suppose
we'd
headed it up "Rin Tin Tin" out of sub-title, are American Can and
plate!
impressed
earnings; 1951
was
also highly profitable, with stressed at
Continental under Gen¬
some slippage in
1952 due to the eral Lucius D.
Clay, Board Chair¬
prolonged steel strike. This year, man. By judicious plant expansion
with no strike in the offing, a
($104 million of it) and aggressive
4% better price structure, and tin
selling, gross rose from $213 mil¬
in fine supply, there exists occa¬
lion in 1946 to $477 million in
1952;
sion for can optimism.
and it's still growing. Big gains in
favoring the
equities
of
leading
can
Ira
By ROGER W. BABSON
but solid.
Wall Street"
Author of "Winning in
Korea and Business
than
I
was
a
few
Instead of flying
a
Commodity
Chicago
New
war
Orleans
And
situ¬
signal."
I
/
would
*
fly
a
V,
of
Cotton
other
N. Y. Cotton
months
Inc.
Trade
Exchange
Exchanges
Exchange Bldg.
NEW YORK 4, N. Y.
"danger
CHICAGO
the/signal,"
Exchange,
Board
hand, I
the
on
York
"caution
)
DETROIT
GENEVA,
PITTSBURGH
SWITZERLAND
Volume 178
Number 5242
The Commercial and Financial Chronicle
...
its height 27 to 29%
Steel
The
Tito's Agricultural
Production
Electric Output
Retail
State of Trade
h
"
'
.
Auto
Industry
for
nation
as
whole
a
Index
Production
Business Failures
production
as
moved
ahead
from
United
States
reported
bureau's
This
Department
the
past week
of Labor's
that living
Labor
costs climbed to
a
A rise of 0.4% ^carried the
Retail food prices led the uptrend in the latest
They advanced 1.4%
Steel
business is
"The
Iron
so
the mid-May level, wiping out
over
most of the decline that took
experts,
of
0.2% above the previous record, reached last August and
again in November.
period.
Bureau
price index to 114.5% of the 1947-49 average.
consumer
was
place earlier this
Age,"
national
A careful
check by
appears
the
on
the
other
to fourth quarter will be much larger than
Since the industry is still producing at a good
that over-booking is largely to blame for delay in
filling orders.
to
socialize.
A
conflict
meeting the tax bill.
Anotner
exists
because
farming
the
workers
socialized
tial
have
ant
this trade authority asserts,
the
riod
A.
instituted
lnsuiuiea
the' socialization
side.
of
ton,
magazine notes.
bac'co.
Office of Defense Mobilization says this sharp reduction
doesn't indicate any cutback
in military use or needs; instead it
"letting go" of controls. Many contractors and subcon¬
tractors
are able to place orders in a free market instead of
having
through red tape of applying to ODM for priority.
Manufacturers of defense goods have not been picking up all
use.
Steel inventories in defense plants
the steel set aside for their
are
generally at least adequate with
inventory accumulation noted.
instances of very large
some
When steel supply finally does catch
with
up
demand,
extremely competitive. Most expansion and mod¬
ernization programs have been carried out with lowering of com¬
will continue to do
for
so
livered
time, declares this trade
some
the first
from under conversion costs.
not
mill
of
the
big three
paper.
will
sources
to
get
The company is confident that
able
be
could not be de¬
or
fill
to
its
requirements
after
Business failures
three
over
rose
The
years.
17%
in June to 817, the highest toll in
lifted casualties 22%
increase
year-ago level to a figure exceeded
in only
above
the
counUy!
released
land
pioduction
sun-flower,
beets
hemp
of
cot-
and
to-
'
a
Forced
result-
oi
(5) Bureaucratic parasitism and
the habit consiantly to call on the
State for financial help
(cited in
Communist Party's Directives
Nov. 1951).
the
After
Behind
(6)
(
the
Tito-Moscow
all
others
?!500 cot
years after completion of the
c untry s industrialization
(J) But most import int'y given
needling
sian
and
that
Kremlin
show
to
they
could
the as a reason, also in the Party Diout- rectives, was "the non-existence
communize the Communists, the °fr^3rie"a
accordin§ t0 work
number oi collectives during the P
'
12 months of 1949 jumped from
With the lack of incentive as
,
.
.
reward for individual effort, there
•
Collectivization was forced by was a tendency of all output to
the imposition of quotas on prilowest common deprewar.
Likewise, at that time vate farms, and then collectivismg nominator.
production of the industrial crops them if they were not met; and
Collapse of Production
showed disappointing results. Such through
the imposition of disThus the failure of the Soviet
negative results arose, in the main, criminatory taxes,
system of the Kolhozen, resulting
corn
production fell to below
because, the direction being from
above, little interest
by the growers.
was
all
and
production, then
nf
of
niirrhasinf*
its
power
channel,
high
nign
as
as
temptation
the greatest part
nowpr
purchasing
industrial
itc
For
J? or
v
as
as
thp
toward
toward
tne
maintaining
oossible
possiDie
there
mere
benefit of the budget.
for the
solution
°ne
farm
offset,
prices
are
of the free peasant,
pushing
pusning
loophole,
a
him
mm
with his
into
into
the
me
only
umy
collective organization.
ati
agriculture,
of
period
only
with
run¬
loss, led to the Decree
a
t
BasjcaI]v
this
new
jaw waijzes
uasicany, ims new law legalizes
the breakup of the cooperatives,
Al
nermission
to
thp
this giving permission to tne peasants
who wish to leave the kolhozes to
to escape
voluntarily", into
enter
,
fo
,
.
nrivate husbandrv-
the other hand,
on
!
on
the social-
izing side it curtails private holda maximum of ten hectares
Nevertheless, at the maximum jngs to
onJy 22-23% of the farms w r
(24.7 acres). The peasants' stam-
collectivized — that is, as Peas- pecje_ijke response to
an run.
Working Cooperatives owned ^ couectiVes entirely,
an(j
get
or
out
5
to
Wp(=fprn
fvnp
the State farms, that
Western
^Pe of cooperative, was
6%
on
the nationalized larms.
Thus, price interventionism has is,
The
liabilities
involved
in
failures
June
were
almost
nf
ronnerativp
Continued on page 30
00
Newport News Shipbuilding and Dry Dock Company
un¬
changed from the high level established in the preceding month.
They amounted to $32,379,000, half again as heavy as a year ago
the
and
largest for
Except for
a
any
Quarterly Statement of Billings, Estimated Unbilled
June since 1934.
Balance of Major Contracts
dip among casualties with liabilities of $100,000
more, failures of all sizes increased from the previous month
and a year ago. The sharpest relative rise appeared in the $25,000
and Number of Employees
or
to
While there
was
an
increase
in
a
20-year peak.
a
failures from
month
June 29, 1953
$24,811,647
$24,788,936
$40,952,699
18,806,842
16,241,653
28,583,105
Hydraulic turbines and accessories
in
ago
June 23, 1952
1,581,986
906,804
2,632,461
.
2,565,329
3,214,502
5,318,661
5,508,366
••••••
$47,765,804
$45,151,895
$77,486,926
$69,452,722
Billings during the period:
Shipbuilding contracts
all
industry and trade groups, the more notable upturns occurred
in construction, which had the highest number in any month on
record, and in retail trade, where casualties were the heaviest
since
.
Ship conversions and repairs
1950, "Dun's Failure Index" further noted.
output in the United States in July is expected
units, a 32-month high, "Ward's Automotive Re¬
ports" said.
It will be the best output for any month since
October, 1950, when 660,430 autos were built.
Industry shutdowns
next
Totals
616.000
were
expected
to cut into output in the
At June 29,
Estimated balance of major contracts
Halting production Aug. 3-10 will be Chrysler
Car Co. and Briggs Manufacturing Co.,
body supplier. Nash, which has been idle three weeks, wi)l
close Aug. 17 fbr a "two-week annual vacation," this trade organ
Packard
the
Motor
auto
stated.
The
Latest
output
count,
including
built this year, about 60%
cars
1952
period.
week,
last
shows
3,756,849
ahead of the 2,343,879 in the like
Truck production holds only
an
8%
edge
over
any
to
employees at the close of the period
Company reports income from long-term
.
.
—
r~
137,876
cars
were
Continued
on
page
26
1 953
At June
23, 1952
$306,025,717
16,134
shipbuilding contracts on the percentage-of-completion basis; such income for
period will therefore vary from the billings on the contracts.
possible adjustments resulting from statutory and
Contract billings and estimated unbilled balances are subject
contractual provisions.
the
built last week,
2,034,516
16,263
•
•
By Order of the Board of Directors
comparable 1952 period, with 722,947 against 672,008.
^Ward's" pointed out that
24,874,300
$248,687,120
period
Number of
$37,035,540
unbilled at the close of
few weeks.
Corp.,
June 23, 1952
'
Automotive
to total
Six Fiscal Months Ended
Three Fiscal Months Ended
June 29, 1953
Other work and operations
$100,000 liability class where mortality reached
My 22
1953
of
into the
by their inhabitants—plus
The rate of failure
rose to 35.8 a year for every 10,000 enter¬
prises, according to "Dun's Failure Index." This seasonally adjusted
rate was somewhat above the 30 in the previous month and the
31 a year ago, but it remained well below the 55 in
June, 1941.
but
Zad- return to private nusoanary, but,
a
thpir ianfio
pp
1941.
prewar
96%
and
collectives
the
gy jast
dilemma was available, nameiy to
kept
pov-
1934-38
ning at
of
production
available- namelv to
rfi]
As
relatively low, with more erosion
the
M
°lrf consequences, aeatn inciuaea.
C>nly
collapse
farm
one-third
death included
,
an
of
a lax>
conseauences
the
in
with
cusation of sabotage with all the
over-
through its control
distribution, has also hurt
subsequently.
bur-
been
temntation
in
pricing,
is great to divert
have
peasants
that they have been faceu
with the alternative either ostarving or not delivering, which
latter choice would entail the ac-
The State's indirect say
over
The
shown dened with such heavy forced deliveries to the State or with so big
June, 1949, since
one
but
break
were only about
Active farms at break-time, but
immediately thereafter, with Rus-
1,500 to 6,900.
In the sector of wheat and
acreage,
ertv
eriy
September, "The Iron Age" reports.
for
crops,
sugar
nricos
out
The firm has cancelled all conversion
yet reached the melting stage,
before the fourth quarter.
regular
industrial
prices
become
may
the
This
used
<3iih<?pmipnt1
of auto
producers finds the major ones still pushing
production to the hilt. Reports of sales trouble do not apply to the;
bigger producers, since they are still using conversion steel and
that has
then
agricultural
petitive costs in mind, states "The Iron Age."
Chrysler
mechanization
was
the
market will be
5-Year
o
Year
a
a
maintained bv the increase of
Fourth quarter steel set-asides for direct defense and
military
programs are reduced sharply from previous levels. Set-asides for
fourth quarter total 1,837,000 tons
compared to 2,279,000 tons in
the third quarter. This is a decline of about
450,000 tons, this trade
with
marketing and got better prices in
*he
^stances of scarcities
(e^cepting during periods of
rum°us drought),
Spain of the 11 leading European
(June, 1948) there was not much SP3i!1tri1es m farm mechanization.
collectivization;' agriculture being Officials agree that an effective
&rt f stPnPhild mechanization program will take
Before
May
Acreage of wheat and corn
cut, but the same total yield
was
was
Wilfred
1947-'51,
regime
regime
—
diminution
severe
Break
the pe¬
For
a potensupplv for
as
labor
Collectivization
Plan
disappointed
by fourth quarter "quotas," smaller than they had expected. Al¬
though the bulk of steel production is free from controls, producers
are
still using a voluntary quota system of
distributing steel to
their customers.
Large carryovers are holding quotas in check.
A check
regarded
of
to
farm
the
satisfactory
production re¬
are
that
In contrast, the private farmer
felt better, because he had a free
choice (theoretically at least) in
products available for export.
substantially
unable to place orders for all the
tonnage desired are
,
are
source
deterrent
been
industrialization
been
able to achieve
frankly
annoyed by persistent reports that the steel market is beginning
io
decline, or is due to decline shortly. Manufacturers who are
to go
major
has
sults.
Some steel consumers,
a
which,
together with the introduction of
attractive
places,
man xui
the needs of their family and for
regime's
never
"The Iron Age" this week indicates that
carryovers from third
had been expected.
means
Introduction of mechaniza¬
(3)
tion made for surplus labor
.
t
farms
end of the year, it adds.
The
out.
accounting" in 1952,
BELGRADE, YUGOSLAVIA— led to both collectivization and
undermined wage scales.
Agricultural policy, as in industry, falls in production,
in Yugoslavia has been motivated
(4) The individual's morale was
Also
the
individual
peasants,
by two conflicting ends—produc- who still compose three-quarters undermined by working as on a
tion
on
the
~
"
"
~
A
J
of the' rural producers, "
have less team of horses without opportune
one hand, and
incentive for producing at the un- ity to display individual initiative,
hankering
year.
good it again threatens to embarrass the
metalworking weekly, states
this week. There is
nothing in sight—not even the Korean truce
—to indicate anything worse than a moderate decline before the
clip, it
Transplanting of the work¬
which, in practice didn't work
(2)
ers,
Yugoslavia's Domestic Economy
on
Hurried organization under
(1)
"economic
high in the month ended June 15.
new
Series
a
system
pressure.
workable solution.
Part III of
disappoint¬
collective
the
slowly but steadily emerged. The
main causes appear to have been:
is indecisive and ineffective hodge-podge, indicating
only complete break, not compromise, with socialism is a
the
Failures
of
elements
with
ment
of the arable
in the socialized sector.
Collectives'
The
result
that
was
Many
•
zigzags between socialization and private production in
regime's policies. Concludes that, as in rest of the economy,
pered output.
The
'
cessive
f
holiday levels of preceding weeks. It was markedly above the
year-ago level, at which time labor-management disputes ham¬
Statistics
'
of disillusionment over the system of
collectives, with its production failures. Traces numerous suc¬
higher tendency prevailed the past week in industrial output
the
'
-
Mr. May lists causes
J
A
'
'
Trade
Commodity Price Index
Food Price
and
Hodge-Podge
land
By A. WILFRED MAY
Carloadings
5
(349)
'-
R. 1. FLETCHER, Vice President and Comptroller
(I
The Commercial and Financial Chronicle
(350)
in
The Real Estate Outlook
the
of Real Estate Boards
President, National Association
just
of
a
groups
;
.
*
■
,
*iion
ib
rough
in tthe
two distinct ways:
increase in the extent
real
ox
erty
prop-
owner-
ship,
and
im-
through
in
provement
condition
the
of
every
of
real
type
estate;
The
relation-
ship
of
these
factors to gen-
basically
t a
cause rather
of
B. Shattuck
Charles
Much
Of
,
the
.
_
policy
I'omic
•
In
of
eC0*
government
our
this.
ccognizes
the
early '30's, when ecopump-priming
was
the
principal undertaking of the Fed-
stimulation of
Lome pioduction and home buygovernment,
mg
the
looked
was
to
arm
on
wide
a
The
market
estate
follows
jn
as
shot
a
in
of basic
range
So it proved to be. And
first
private loan ever in¬
the1
the
by
Administation
•of
repairing
Federal
Housing
m
it
as
economy
has
World
been
as
t°
we
the
end
of
II.
War
investment,
,
all
hL ^
imo
• j
Jit•irfmonf'
...
fref
th
hl«h ln
t? A-
jn
ment
for
h
if
flrst ,hal£
making
a£
Potential
There
niere
ral
tial
is
and
of
-
half
new
may
be
the
and
is. that
records
During
f#
..
the
8
first
e
fhr0"gh°ut the
tional product
in
h,rS
by nbUSin .SS in°uflays
nlan.
at, ar
,'Sf, levaLo1
c
tblS„aT.e„ P„e ,°.d
'aggregate outlay
for
is
1953
The
of
now
in this category
expected to sur¬
the total for last year.
pass
in
upsurge
commercial
will
1952
lie
than
relaxation
teriMs
1953
expected
of
in
was
the
even
following
credit
and
ma-
controls
last
fall,
the
Department of Comrecently reported.
"rnted States
merce
Private
expenditures
.sidential
construction
3.i ghest
record
on
y-June
for
period.
for
new
-
were
the
Janu-
any
recently
."lual
the
of
made,
by
d
estate
National
of
activity,
stable price situation. Real
ate boards in 264 communities
a
-rJuded
in
the
survey generally
pect the present sustained
high
Jcx el of home
production to
i
true
1
with
a
7~r~;
ir.ttuck'at
.IS
nd'
stable
h
c°S
I aMn
ped
uo
corporate
1953
will
Our
wui
greater
a
than
were
Levels
stronger
the
end
and
securities
of
the
tremendous
iremenaous
that
a
m
prices
in
the
ior
are
+1S 1>S
4.
serve
oin
previously
accepted
O]3!01
j
feel
We
field
a
re-
than
more
trends
economic
the
?f the leal
We
ob-
that effect
are
obliged
oApuplic policy
directs healthy tne fundaeconomic
because
of
en
s.
mental
importance
of
real
^e nronosHhree
the
is
currently
consumer
using
king and
advance his standard of living,
Range
price
situa-
d*Un'i
v (> r s
i
Prospects
The total population of Ireland
is about three million. Our
popunow
at
the
rate
ty" B l'is i-' ?f f.b0Ut tba' ma"y V" ^ ,ThiS
Conference, Stanford, Cal., July
is
25.
1S the ^OSt baSIC Of all Stimulants
to
a
dressed
itself
forth with
account
Solve
a
slums,
and
have
we
healthy and solid expansion
come
proposal which takes
a
of
all
the
past
J
These goals
We believe that it
°
•...
m
NAREB
A
nrngmm
,*,Jnvn,rn^ir!f
rehabilitation
taken through
servation
program oi
^
of
nf
housing,"undTr-
neighborhood
programs
con-
that will also
eliminate slums and
restore
good
environment and amenity quality
to older urban areas.
,
'
.
n
market
that
1
dl
f
for
w
will
1
real
give
estate
1
e
the
long-term
financing
has
and
lacked
facilities
nee-
the
1
c
it
provide small in-
the
the
area
benefit
*
PrnmPnt
this
in
Gov-
nmoram
ernment
piogram
be
fn™em in tnis profram would be
ln tnis.
would
i„cnro
0 insure
miin)
municipal bonds issued
flgajne.t
=nPPial
against
assPssmPnt
lion*
special assessment liens
that the bonds would be readily
markPtahlP
.
aD
,
This
at
W
a
intact
interest rate,
.
low
interest
rate
would
be
on to.the assessed property
10
We will also ask
years
Federal Government to
FnveTmenrir
can
directly, swiftly, and equit-
the
built-in
contains
limitations
none
that
of
have
characterized
the
the experiments of
It is based on local re-
past.
sponsibility
and
servation
constS
new
local
ments
erty
owners
grants
rather
than
by
Fed-
of
Con-
appropriations:
Briefly,
here
proposes*'
WeT wili
..j
t
income
who
.,sk
the
studied
it
borhood
conditions
anything
yet
hoped
for,
authorizing
w^tl?in
areas
even
previous
under
pro-
grams,
Need
for
Central
a
National
IMortgage Association
in
Perhaps the greatest deficiency
the organization of our real
estate
industry is the absence
a
sound means-of channeling small
ipfriq
create
commisdc-
and
savings into real
estate financing. We
propose
each
such
that
this long-felt need be met by the
~
"L
creation of a system of regional
by a Cel
Association,
from
to
chartered
Mortgage
purchase mortgages
members of the
mortgagee
associations,
the
for
of
secondary mortgage market and
city that
extensive improvement, and
make a neighborhood conplan
beyond
or
a
plan
statp
to
neigh-
far
attempted,
than
our
cities
of
im-
of
program
a
this
is capable
and
rather
what
ac-
tax' purposes,
has
that
agrees
investments
is
con-
allowing
enact'enabling legiL- mortgage associations
Central National
t
tion
for
stimulating
initiation
limits
within
by
provement to housing and
instead of Federal directions* payment of costs by benefited
properaj
moderni-
or
neighborhood
areas
the
encourage
celerated write-off of such invest-
Everyone
because
it
within
plan
with
the
issue
of
debentures against mortgages held
e
public,
Serving as a secondary market
to which lenders could sell their
neighborhood. This plan will in- mortgages held, the new system
.
....
,
firm
0f
STcity
enforcement of
of associations would stabilize the
mortgage market and provide a
na.ncfes' requirements as structural sections ot tne country tor lenders
to health c°n^ant fs^pl^^ou°nftrfyU?orSlenders
safety, sanitation, and
acjequacv of buildings under which
desiring
owners of
loans.
dUL4Udcy ui uuiicungs unaei wniui
their
property are required,
own
fj* .n
to
exoense
ow,.
bring
expe4nse' ia
^ot,
wd|
piace
]ien
a
the cost
that
work
the
on
to
the cHy
done
and
for
property
are
other
as
required
public
to
nuis-
abated,
be
neighborhood conservation
plan wil1 include
improvement
"npiuveineiu
Program
a
schools
to
iu
of
parks
seiiuuis,
paiKs,
ordination with
the
so
program,
be
Pnnntrv in
narticular
has'resulted
paper
and
others
obtain loans.
where
mortgage
home seek-
being
unable
to
Persons desiring to
law
that
rehabilitating
neighborhood
its
Under
the
National
would
the
charter and
Central
Association
determine
the
number of regional mortgage
as-
sociations and set up regulations
for their operation.
/
,n„nH
It would also
anH
Pnnqprva-
which the regional
enforce-
uPon
the
tions would
city
part
while
plan,
Mortgage
Uvfsystem o?apm^^Toper?y
^carded^ut'Tn
the
thp
ers
hnttlp-
only a small amount available
could purchase debentures.
be
them, just
thP
rural and remote sections
in
invest in real estate but who have
rehabilitated,
the
wiu be required to remove
owners
well-secured
hreak
f Dr0Derties
e
too
wnnld
It would break tne Dottle
dilapidated and neg-
In
are
lected
the
make
to
Tt
inadequate'Tu^e^of^
"omply!
or cannot
order
neck
nf
of
prop-
Regional
would
be
associa-
purchase mortgages,
associations
mortgage
chartered
originally
erty owners are being required to
where most in demand, and they
|mprove tbeir structures.
would
be
permitted
to
set
up
city will branch or district offices within
ngnts to their regions. The minimum capiIn the case of talization of each regional asso-
Under th.is Plan
have. certain limited
acquire property.
structures that are clearly a source
01 disorder and obstruction to
carrying out the plan, the city
will have power to purchase the
mortsaees
industry
iUUUSip
in
with
The role of the Federal
of
housing,
get the job
abjy
of
Proposals
iargP
dis-
of
acquisition against
owners
accordance
to
unfit
ment
are:
in
property
attempts
done
will
,
,the~cost
assess
essary property
the
problems
griveous
blight, and
sfirnumtiHg value
L?lrJ7±em
production and distribution.
nmH.wi
benefit assessment
a
zation
estate
tional economy we
aJ economy,
propose thiee
distinct measures to safeguard and
wiiOies^t-e
as
trict, and
This is the Problem to which
the real estate industry has ad-,
The
the
area
and in reconstruction
ances
leveling, and the cost-
economy
Long
into
us
every price range
commodity
tiat
a
averaging
slightly
below
last
year's level. This is the process
crown
m
industry.
enter
by
.
to
brought
hniKinff
housmg qfanrinrHc
standards.
sponsibility to do
last
of-living index maintained by the
Bureau
of
Labor
Statistics
is
our
of
oi
M
the
directly
through Washington. So
we propose that the
city consider
the
neighborhood
conservation
to
significant dent
backlog work that has to
the
servation
Deduction
pioauction
home
be ^one-
predict
on
scale
a
make
widespread boosting of hous-
estate
with
economy;
snuauon
Of
ot
mg standards
corporate
based
to
will
Housing
standards and making it no^ihlp
ciaras, ana making it
possipie
to put in motion a concerted drive
ex-
healthy sign of stability
this
in
tieular
sid
Re¬
market
year
jpvpl
level
outmoding
iyo.^.
Poor
npw
ew
a
an
on
wide
,L?u?LL Tnese commissions will
sions.
fine^the ^xact^boun^ari'A
of
World War II has
to
year.
reached
were
Standard
homes, and it
houLg unItsmTce
dividends, net working capital of
corporations, and the total of new
security offerings all at volumes
year.
our
total
at
eliminating the circuit&
approa"^"capable ot'bei,^ 3W
duplicated
sufficiently
need
Higher
folks
route
-IS,
urocram
of
close
earnings,
in
dential construction.
business analysis,
the basis of existing
net
represented
of
the
favor
timiifimnt
a
none oi
possibly exceed, the dol-
vo,ume
from
so
th^nexAven yea^to community conservation
in
L,,..r or
equal,
in
predicts, on
trends, that
half' the
t11lUy„t,.'att,ca",DC'
all
and
enq
Corporation, with
cellet record
lation growth
r
by trie
Securities
equal
may
-
~
t
National
con-
"in.
'
work
for
pav
from the folks at home
by
of the Federal tax collector or
way
no^of thepatterns^o^'acUon"^^: passed
improve-
Standards
Pxneeted
thoughout the
billion
of
repair and
giant output of new
Electric power output is at an alltime high. Savings bv individuals
are expected to hit'a new high
it is
semi-
real
our
high level
a
"so
implications
T sociation of Real Estate
Boards,
'»ws
a
general trend of strong
mand,
d
continue
nrodurnd
cooperation
this
to
money
come
cleaiance
subsidy.
compared
are
piparanno-
.
Federal
of
some
dollar volume
is
experiexperi-
produced a significant
?
gressional
estimates
ci,,m
J
Federal
ment
in-
con-
at higher levels than they
relatively
as
wi+h
indicate that the total dollar vol-
index
credit
of
cities.
our
•
that
manuiaciurers
consumer
think
to
homes
are
.
concluded
survey
~y>Prket
>-
of
fuller recognition of constructive strengthen
(
Current Real Estate Market
A
1 n c ° m e,
ana
We
activity involved in alteration,
repair, and mod-
There
A gross na$358.3 billion
vear,
vol-
trivial, because it is relatively less
dramatic, a small job here and
permanufacturers'
incomp
so,ai
search
construction
buildings
first six months of
greater
t
accustomed
dollar
billion.
impiovement,
year.
of
js forecast for this
sales,
.
vnf.Z• •" ™prfesf ve
of confidence
the future
vote
•
$12
Research
it
tinue higher than the
,
vions
•
annual
there.
production
Securities
contrast,
producing
more
dwelling units per
an
ernization
ahead of the 1952 figure, and
mid-year forecast of the Na¬
Corporation
that
937,000
consecutive
about
of
ume
n
-
are
.
industrial
In
a
draws to
Board
units.
fifth
an-
in
with
million
with
year,
J—, ehanS?,s> with $346.1 billion for 1952.
S
I all preRetail trade, employment,
first- six SS " broke y ,!" the
months
.
we
a
attained
the
r„
,.o
j
for
highest
1925
in
dwelling
year
indication available,
stronger position than
,
The Federal Reserve
^
was
now
in
The
production
period
General Economic Indicators
dex 1 of
million.
a
nual
close?
ever.
annual
of
some
redevelopment,
has
i
1'
<
^t
been
1
whiPh
"
n
aveiage,
production of homes was less than
an
ag
ln
s a long over-
u
has
1
a
Gtt
w
1
u
There
the
as
It
organization
oigamzation
very
ti-v
national
ij}
tne
is
the
redevelop-
acquisition of property cornfrom?
Obviously it has to
ing
1 Ci1VK obllgatlor} tbat bas j:0 ba
supply,
the
n
a market.
met to save the solvency and the
readily
recognized
in
Where
for
a year,
they enjoy from the conservation
home pro-
new
is
element
,
Wnri
suitable
year
of
acquired
so
program.
yardstick the total
duction, which
And how will the general econ¬
By every
it will be in
use as a
as
will
expand
and urban
housing
offer
care-
fea-
cuy
fully stimulated drive for wholeimprovement in the housing
supply is not simply a move to
mentation
to
to
the 19d0's. A
saie
the
be
can
our
for
property,
estate>
we move toward
material
material,
is
deal
great
a
for stable business conditions
poten-
improvement
volume
urrie
look when this
that
in
than
rea]
These three proposals, in them
mnv
that may not
even
within
even wiiniri
'manpower
manpower
money
Let's
stimulating force in the national
economy js undiminished,
omy
01
of
condition
reports.
that
Build America Better Program
ysiaie poien
that
not
industry, and that
own
voiumt
volume
dollar
evident
estate
understood
"""ersiuoa,
re-
as
xeai
real
land
We
they .selves, have
years
Rehabilitation
one
absorbed
These market characteristics all
indicate
of
in
in this situation
this situation
pur
invest-
acreages
development,
is
ib
fullv
IUIiy
be
part-time
estate
of
form
power
light, and
industries—and of tax col-
a
particularly
lew
very
it.
other
trie
and building, providing it sells
this
construe-
appliance,
major
commercial
the survey
tional
Higher Levels Than Last Year's
n
of "real
popularity
a
owner
the
plan,
have authority to acquire trie land
ous
the
in
school
property
with
tne
ment within
weaken
ieciors*
real,
prices
of the
be
In
ure,
class of real estate,
well
since
and
uel,
strong one
for tbe city worker and is an inCresting
element
in
the
farm
real
estate
market.
A
growing
a
now
national
spect, so that it may withstand
the recurring political attempts to
requires
Ti]l b(: Pr°fP^S °L rGal, iurm?Stat-C
biokers, and thexeaftei of
the
of
higher
-pbe attraction
home.
force stimulating solid growth
out
predict
farm continues to
for the purpose
was
a
There are many reasons to be¬
lieve that real estate will continue
as a
one-fourth
about
ports
{bis
just
sites
tion.
majority of the communities,
a
ancj
the
School-age children
mighty demand for real
a
estate
There is aq undersupply
one-story industrial buildings
0f
arrival
new
school
strong
same
a
existing local, state,
of
right of property ownership,
as
we
have always known it in
this country, intact in every re-
larger
a
national
a
coordination
tures
man
IieM
with
impact
ianuly lor
a
of
of
sound
groups to seek constitutional guarantee of the preservation of hu-
room.
make
pattern.
industry.
sured
the
advance.;
the
of
as
more
industrial
for
'vacant lots, and
nomic
•oral
house
vacancy
a
this
feels
estate
represented
report
survey
of
demand
'
.1
•.
ancj
we
as
Formation
federation
the sixties, and real
always, will be a fore-
as
runner
rate of only 1% or less in commercial property
which
is refleeted by an active market for
this class of property with prices
steady or trending up.
economic
eral
expansion is
■'
*.
communities
Most
in
an
a
contribu-
its
expansion in
to
•economy
1.
the national
makes
estate
\ '
output
(3)
toward
estate,
and (3) formation of federation of property owning
for purpose of protecting their property rights against
political attack.
gages;
Heal
a
a large program of housing improve¬
secondary market for real estate mort¬
industry should be: (1)
ment; (2) creation
at
as
national
in
move
construction activity
vestors with a means of
investment in real estaie.
productive
robust,
vance
higher level
than last year, and states a recent survey of current real estate
market shows a general trend of strong demand, high activity,
and a stable price situation. Looks for continued population
growth along with higher housing standards to maintain and
increase real estate values, and says major goals of real estate
Mr. Shattuck pictures
1
in the
Coupled with
economy
ahead.
strength
that our economic system has developed, it promises steady ad-
By CHARLES B. SHATTUCK*
yL
national
the
years
Thursday, July 30, 1953
.1..
structures, or acquire them
by
ciation
wcu]d be subscribed initiUnited
States
Trea's-
ally by the United States ireas
ury.
As subscriptions from private
sources
increase,
an
appropriate
elTlinent domain, for In cases of
the purpose
of
removing
them.
formuia w0uld be provided where-
3iUm
by
properties when the sites
needed
for
newi
development
are
in
,
the
Treasury s
...
participation
would be gradually retired, simi-
Number 5242... The Commercial and Financial Chronicle
Volume 178
(351)
lar to the plan of the Home Loan
Bank
System.
Each mortgage association would
foe
Tight Money Policy Unwarranted
first
mortgages
the
Against
property.
of
improved
on
tures for sale to the
Former
The
buying
view of the
of
the
Federal
National
Mortgage Association and the
of
tirement
the
stock
up
™arbet
growth of the supply of goods and services which
has
caught
need
for
with increased supply of
the
"tight
re¬
Federal
subscribed
Reserve
there
money,
was
2/8%
hard money" policy pursued by the
Treasury during first five months of
and
folio
could
be
transferred
to
the
Central
National
under
trustee
market
money
for
a
account
CNMA
management.
would
the
account, but as re¬
gional associations are chartered,
manage
that
of
part
which
the
real
covers
particular
ferred
the
of
portfolio
in
estate
would
area
to
FNMA
be
a
stable
a
To
economy.
achieve such
trans¬
condition
a
$4%
and
billion
reporting banks
holdings of govern-
and
reduced their
ment securities and
by
$4.7
billion.
there be at all
ade-
the price of government securities,
supply
would
of
which greatly unsettled the government security market, thereby
mortgage
would
not
insured
be
solely to
to housing
or
mortgages, but would deal in
those who will
all
of
important
Property
of
real
of
property
individual
defend
to
owners
rights.
property
It
should consist of existing national,
local
and
property
associations
of
owners
and
busi¬
with
real
prop¬
concerned
nesses
erty.
primary
of
purpose
organization will be to
constitutional
will
it
such
secure
which
guarantees
prohibit laws that would lim¬
confiscate
or
the
income
of
S. Eccles
the
deflation
nessed
which
during
an
spending
and
Federal
other
real
This
!
of
a
lion
for sound
our
policy
on
ment,
policy
on
will
c.nordi-
the
monetary and credit
a
nronert^
rebuilding
of
cities, and improvement of urban
chapters in
manv
as
possible.
as
federation,
would
now,
as
have local
communities
These chanters would
consist of local federations oe
rious
organizations
real
rights.
Local
would
be
interested
ownership
property
real
va¬
boards
estate
encouraged
in
its
and
become
to
and members, together
local groups, of such
sponsors
with
ot^er
local
federations.
right
The
——
the
of
■
individual
to
is everywhere un¬
and
property rights
property
own
der
attack,
of
have
tailed
recent
in
rights
erty
been
years
own
our
the
are
of tho^e who seek
cur¬
Prop¬
count.rv.
central
issue
to flp«*rr>v crdo
free institutions.
than a maiority of
government and
Since
rnf-e
families
our
real
our
for
country
their
individual
real
of
matter
property
basic
own
use
own
defense of
for t^at of others,
and
a
in
property
rights is
concern
to
our
(Special
to
The
Financial
R.
Chronicle)
Geggie has become associ¬
with
ated
Harris.
Upham
&
Co.,
232 Montgomery Street.
Mr. Geg¬
with
Bourbeau
gie
&
was
formerly
Douglass in
Los Angeles.
Reginald A. Ward
(Special
to
Reginald
the
bond
Financial
A.
Ward, manager
department
of
at the age of 56.
our
was
it
apparent that the only way
in
discontinued
this
essential
in
June,
govern-
and
private financing could
be satisfactorily provided was by
money
jn
much
of
more
or
money
public
in
grew
a
combination
three
of
(1) Purchasing government
in
the
Federal
onen
of
the
the government as well as tho¬
of
supply
monetary
'
experience should make
private
available
information
ing
Most
its
procedures
considerably
of
given
which
require
statement,
this
any
information
attention
of
amount
that
SFC
e
registration
'IT ,7=.
The
Drocedures
„
mostly and cumbersome.
The complaints all point, it is explained,
billion
to
the
proliferation
new
SEC
subcommittee
Chairman is Senator Prescott B.nli
(R
Conn ^ who was a part„-;f.
0f Brown Brothers Harriman <3c
Co. before he came to the Sen&ta*
^
of
July 30, 1953
$360,000,000
*
<
huge growth of private bank
credit
the
since
1946,
and
consumer
especially in
mort¬
housing
fields.
credit
However, the
supply of goods
and services pretty largely caught
up with the growth of the supply
of money
about a year ago, so
gage
growth
that
Ohio
Valley Electric Corporation
the
in
First
Mortgage and Collateral Trust Bonds
the cost of living or average
price
level
stable
been
has
since
that
relatively
time,
with
V'A% Series due 1982
a
slight downturn since the end fof
the year.
growth
As
for
as
the
a
of
with the
the
production
the
for
than
more
dynamic
same
in
the
A
growing
like
expansion in
economy
an
3%,
total
period
same
5%.
quar¬
about
was
growth
was
have
money
currency
quarter of this year,
ago
year
whereas
supply
deposits and
first
compared
ter
matter of fact, the
a
the
in
demand
or
should
We
our
on
no
total
the
a
ceiling
supply than
production
and
employment.
In the light of this development
the
tight
or
hard
money
pol¬
icy pursued by the Federal Re¬
and
Treasury
five
my
opinion
months
was
of
during
the
the
in
unwarranted.
year
"Summary cf
at
the
July
12th
20,
an
address by Mr. Eccles
Stanford
Stanford
1953.
Business
Confer¬
University, Stanford,
Cal.,
Underwriter
I
Distributor
Dealer
Energy Commission.
American Gas and Electric Company
Investment Bonds
Appalachian Electric Power Company
Indiana & Michigan Electric Company
The Ohio Power Company
The Cincinnati Gas & Electric
and Stocks
Company
Columbus and Southern Ohio Electric Company
The Dayton Power and
Light Company
Kentucky Utilities Company
ii
Louisville Gas and Electric Company
Ohio Edison
Company
Pennsylvania Power Company
The
Southern Indiana Gas and Electric Company
The Toledo Edison
Company
The West Penn Electric Company
Monongahela Power Company
I
II
The Potomac Edison Company
West Penn Power
on or
before January i, i<g57-
FIRST
BOSTON
CORPORATION
Company
New York
Subject to the provisions of Purchase Agreements negotiated
bv The First Boston Corporation, certain institutional
investors have entered into commitments to purchase the
above Bonds in instalments
ence,
Corporation, formed by the
utility companies listed below, will supply the
entire electric power requirements of the Ports¬
mouth Area Project of the United States Atomic
ours
money
total
the
upon
put
more
Ohio Val>ev Electric
by
that the job will be done investors, it is said, and coufd
for ^ bY Congress, it is reliably easily be dispensed with,
reported.
However, until this Congress*
In other words, the assignment tbe Chairman of the Senate Bankof a staff member of the Senate m§ subcommittee with immeaBanking Committee to sit in and a^e jurisdiction over SEC mattoiu
observe on SEC's efforts to sim- was more interested in expandmsj
plify its procedure, is something than in contracting SEC jurisd'.jmore than a routine performance, tion. He was Senator J. Allen Frecvr,
For a considerable period, the dr(D. Del.), sponsor of t. ,a»
Senate
Banking
Committee,
it "Frear Bill" to extend SEC
is said, has been receiving reports diction over smaller corporation !,
fi¬
bank
not:
may find
since the war, or the cheap¬
ening in the purchasing power of
the
dollar, was
brought about
lar^e
is
anyway
during
nancing of government deficits
during the war period as well as
growing
SEC
registration
its
for
and
the
our
them.
to
inflation thus created
jw
of
Congress May Act If Commission Doesn't
lending to the member banks; (3)
reserve requirements of
Three
needs
economy.
WASHINGTON, D. C. — If the
SEC doesn't succeed in simplify-
the
banks.
and
present
the
■'
banks,,,11
Reducing
member
under
SEC Registration Requirements
To Be Simplified
market;
Reserve
markets
thought
money
rapidly than the goods
services
and
of
the
one
ways:
securities
postwar
of
Model.
passed
which
ment
The
and
war
amount
first
Chronicle )
The
Roland & Stone, New York,
away
the
the
serve
-
of
supply comparable to the
growth in the national product
to prevent deflationary conditions.
SAN FRANCISCO. Calif.—Mor¬
ris
policy
conditions
money
Upham
therefore, no surprise
the tight or' hard money
was
free
to
conditions of heavy Treasury
deficits and refunding is as un~
realistic and impractical as
the policy of maintaining a pegged
during the-next several months, it
was,
when
maintaining produc-
source
hands
must
With Harris*
the
year.
stability.
and
nation.
during
employment
During
The
environment.
national
It
Federal Reserve Funds.
broad
raised
be
to
last six months of the
policies
such
the
meet
tne
is
period
The
System,
to
money
all
thus
and
Recent
crop move-
on a basis the
necessary
Federal
Reserve
Commercial 'foredit being made available to the
credit, either public or pri- banking system. This could be done
the
of
financing the large
in
money.
Federal
ing to $3 to $4 billion. This made
a total of $12 to $13 billion of new
supply. Such credit, however, is
dependent upon the availability of
with
orderly
of
fiscal
a
vate,
conservation
visualized
of
and
as
property.
the
use
the part of the Federal
and
goals of the industry bv working
values,
only by in-
the part of the govern-
of economic
for
the
ex-
farms,
homes,
program
tion
These
money.
supply through
and
>
defini-
management and
money
timed
best
be avoided
can
telligent
the
is
to
organization
its
nate
the
cash
capital
The
created.
was
returning
*
requirements brought about by
the fall and holiday trade amount-
which
power
and
so
$9 billion
to
unmanaged
or
was
un
ments and inventory and currency
solvency
national
value
by
wit-
20
past
bank
Government,
maintain
the
borrowing
have
we
the
$8
un-
Tlio
member
1° abandon l£
of
the
countrv
Sins
managing the governelsv money ^
mGnt SeCUnty market S° aS U
yer presyure to yQp contfacting meet the fiscal requirements of
deficit during the last six months
of this year, as well as the need
thus provide a money having
uniform or steady purchasing
necessary for
unlimited
inflation and
an
market.
supposed to
1913 when the Federal
ou^
g0
free
market
Reserve
0f
free
or
the
of
money
banW
credit,
obvious
the
and
of occuoancy without the owners'
prohibit
been
years
private real Droperty without just
compensation or establish rights
and
have
This
of both
excesses
Reserve
consent;
should
Serves
that this policy which events had
made largely unnecessary could
not be continued very long because
of the need
of financing
would avoid
cesses
The
an
Vlarriner
requires
of
It
manag-
able to
continued
federation
a
increasing the problem of
lnS the Public debt.
byin-
or
™,t
market.
Owner
estate
of
re-
services avail-
steps,. the
formation
real
in
to
the goods and
Groups
state,
it
use
We feel that in addition to these
real
of
lationship
Federation
the
in
money,
the
hands
types of mortgages.
stability
an
quate
confined
mortgages
that
long-term
.
times
The
re-
quires
lin¬
money
{.
+ave w?s dlrlmi,s §overnment security market,
^ as ,SUC^ ?5£ J5- " d
The public debt is alt°gethe]r
J*®®1""™8. ®r too large in size and its influence
fXntfn f
on our supply of m0ney and til£>
Xjtarva/c»p£ i stabi.Hty of our economy is too
hLw l/'t
dominant to permit the Federal
associations
ultimately
be
privately
owned by mortgagee members and
regional association
management.
new
un~
money
time
same
and
a^?nff°™y
effects
this policy were to substantially increase interest rates and
bring about a sharp decline in
for
idea
.
loans thereon
Further
supported
consumer
or
either
is
longer term securities in
slightly above the
The- Federal Reserve chose to
Provide nearly $1% billion of the
necessary credit by 1 educing rer^<imrements of membei
declined
currency
the
in
a,Price to yield from
expanding
mortgage
credit, which
already excessive.
are
During this period, largely as a
result
of
this
policy,
demand
deposits
week
raise
to
it
tight
a
at the
offering
not
credit
undertaking to finance government deficit.
The objective of our democratic
capitalistic
society is to maintain
maximum
employment and
production within the framework
each
Treasury
that
termediate government securitiesr
0r
refund
short-term
debt
into
loan freely to member banks who
Mortgage Asso¬
ciation
while
tight
a
bills
at
to 2/4%,
the
create
dertake
of
amount
to
Reserve
market and
by the Federal Reserve
necessary
apparent
realistic to
In addition,
the Federal Reserve banks should
op
Says it is unrealistic to greate
year.
Federal
discount rate of 2%.
no
are
foy the Treasury/ The FNMA port¬
it
provide
This should have been
the
Treasury
Former "New Deal" Federal Reserve Chairman contends, in
public would
plan envisions the liquida¬
tion
provided
Chairman, Federal Reserve System
deben¬
issued.
be
Reserve
to
necessary
ing system.
Chairman of Board, First Security Corporation, Ogden, Utah
portfolio
purchased,
mortgages
Federal
such
was
the essential government and private financing through the bank-
By MARK IN ER S. ECCLES*
permitted to purchase all types
of
of
dollars
credit
7
Chicago
Cleveland
1
Boston
Pittsburgh
Philadelphia
San Francisco
8
The Commercial and Financial Chronicle...
(352)
the
Nothing
Recommendations & Literature
It
the
Liberty
Co.,
Broadway, New York 6, N. Y.
Co., 39
Railway Company — Progress report — Link, Gor¬
Peck & Co., 208 South La Salle Street, Chicago 4, 111.
Resources—Booklet
Area
Salt Lake
Banks
Idaho, Wyoming, Colo¬
Power & Light Co., P. O. Box
National
899,
New
of New
Companies
York—85th consecutive
Central—Bulletin—E.
York
15
offer oppor¬
tunities—Zuckerman, Smith & Co., 61 Broadway, New York
Pennsylvania Railroad
,
Banks
comparison
Corporation, Barnett
Companies—Semi-annual analytical
Trust
and
Simpsons
1953—B. V. Christie and Com¬
30,
of June
as
Ltd.—Data—Stanley
York
New
and
performances
Companies—Earnings
as
5, N. Y.
Heller
Also in
the
an
parison between the listed industrial stocks used in the Dow-
over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
yield and market performance over a 13-year period —
National
Quotation Bureau, Inc., 46 Front
Street, New
Stocks—Reappraisal—Sutro
New York 5, N. Y.
United
•
•
I.
du
Pont
&
Co.,
Corporation
Bros.
& Co.,
Street, New Haven
New
Mr.
Hardy
—
Co.,
&
30
same
failure
called
by
Durkin,
of
the
plan, to agree
—
—
New York 5, N. Y.
bulletin
Also available
Western
are
memoranda
on
Penn¬
Co.
Superior District Power
Co. and
Edna, Texas, Waterworks & Sewer System Improvement & Re¬
funding Revenue Bonds—Circular—Rauscher,
Milam Building, San Antonio 5, Tex.
Pierce & Co.,
Corporation, Ltd.—Review—
Ross,
1, Ont., Canada.
Transmission
E.
New
62
as
without
years
Likewise, there
were
a
long
series of conferences between the
iron and steel workers' union and
the
iron
these
steel
and
the
over
manufacturers
1863 to
1903, but
disrupted at times by
years
were
coal
industry
(anthracite
and
bituminous) are well known. In
-
man¬
the
place
is
in
many
bargaining is
Companies
&
Producing
York
6,
N.
the
con¬
conferences.
have
written
in
been
Too
misled
agreements;
too
building
more
enun¬
two
men's
and
women's
industry
extensively
in
any
try.
enlarged.
(in
con¬
should
agreements, solve the problem of
conflict;
and
".
(2)
common
.
.
de¬
alike dictate the futility of
appeasement.
." Union officials
cency
.
the
.
repeal
of
the
Taft-
Hartley Act and the restoration of
pro-union Wagner Act [Presi¬
dent Meaney
of the AFL admitted
that the Wagner Act
the
side
was
frankly
unionism]. On the
officials of the Na¬
Association
of
Manufac¬
The
record
other indus¬
be
greatly
affect
the
consumer.
participation would at ileast
lessen
the
probability
of
collu¬
bargaining, which consum¬
mation, however devoutly wished
is hardly to
for,
be expected
while collective
bargaining is the
vogue.
G. D. Murdoch With
Dempsey-Tegeler Co.
(Special to The Financial Chronicle)
LOS
ald
ANGELES, Calif.—G. Don¬
Murdoch
have
John
and
become
O.
associated
Alsup
ith
w
Dempsey-Tegeler & Co., 210 West
Seventh Street. Mr. Murdoch
But what does this record show?
formerly
of
manager
the
was
under¬
production and continued services
writing department for Morgan &
Co. Mr.
Alsup was with Akin-
to the
Lambert
Industrial
peace?
Uninterrupted
at the lowest pos¬
consumer
Co., Inc.
sible cost? For years the building
industry has led all others in the
number
and
of
the
strikes.
steel
Coal mining
industry have been
George R. Frost Joins
Gross, Rogers Firm
noted for their "labor wars," and
the
stove
industry
has
been
plagued
"stoppages
by
unauthorized
or
of
strikes.
(Special to The Financial
work"
LOS
When
R.
appeasement gains seem too little,
strike losses mount, and the con¬
sumer
of
hand,
profes¬
to par¬
sive
engaged
collective
could
get together and, by working out
sense
Such
garment
has
bargaining than
nections): (1) that representatives
industrial
the
"mediator,"
conferences which
any
vitally
so
taken place for over 40 years. The
pays
only
had
rupted
to
endure
the
of
has
Gross,
become
Rogers,
associated
Barbour,
has not
consumer
production
Frost
with
Chronicle)
ANGELES, Calif.—George
Smith & Co., 559 South Figueroa
Street, members of the Los An¬
geles Stock Exchange. Mr. Frost
inter¬
was formerly an officer of
Floyd
again.
Moreover, the
goods
and
services,
restricting production and boost¬
ing the price. In addition, notably
A.
Allen &
Co.
prices because of the collusion of
be
Act.
ground
There
for
is
no
agreement.
must
yield—there must
"appeasement"—who will do
one
it and at whose expense?
Settlement of labor
between
in
the
States
years.
Probably
the
of
between
the
stove
conferences
the
molders'
paid
union
and
building
higher
officials
industry
the waterfront of
disputes by
union
and
concomitants
Collective
in
United
has
and
on
cities, graft
our
Geoffrey G. Whitney
in
(Special
of
that
The Financial Chronicle)
City, passed
away.
bargaining
collusion.
was
Joins Oakes & Co.
collu¬
bargaining, and appeasement
■
(Special
for
many
placated
most
noted
false and wicked bargain of trad¬
ander has
are
those
ing
&
union
manufacturers'
t,o
Geoffrey G. Whitney, partner in
Harris, Upham & Co., New York
and corruption were the inevitable
sive
the
but
association
association officials has been tried
series
Y.
the
upon
understandable
persons
the
by
industry, collective bargaining has
different
common
Y^ycurity Dealers Association
Trinity Place,
producing
strike.
and have
Taft-Hartley
Troster, Singer & Co.
effect
serious strikes. Conferences in the
principles
Bonnett
conferences
Members: N.
erroneously characterized
1891,
contradictory
C.
Some
Gas
dating from
been
industry-wide collective bargain¬
ing, and no weakening of the
Operating Utilities
the
Union condemnation of the
ticipate in
tion,
turers advocate the elimination of
Trading Markets in—
74
collective
and the like—are entitled
consumer.
directly
tional
Natural
of such
ciated
on
of
One
objections to indus¬
the labor wars, especially
against the "cutthroat com¬
petitor." Genuine representatives
has
other
(b)
officials.
and
lessen
President
the
by
secret
standings have been. Publicity of
the conference proceedings might
agement
the
in
union
few know what the secret under¬
the
labor
demand
International Cellucotton Products Company—Analysis in cur¬
rent
issue of "Business and Financial Digest"—Loewi &
(a)
inade¬
solve
common
Knowles & Co., 330 Bay Street, Toronto
Act
show
of unions and management
Wis¬
public
between
light of the revelations which
might be made of what takes
conferences to
Kidder,
Light Co.
Canadian
Hartley
quacy
& Co., 120 Broad¬
Union Telegraph
problem
the
Eisenhower
—
Consolidated Grocers Corp.—Memorandum—A. C. Allyn & Co.,
122 South La Salle Street, Chicago
3, 111. Also available are
Players
Taft-
the
Co., 25 Broad Street,
"
Eisenhower
tends to
Dr.
&
Labor
the
1
Columbia Gas—Memorandum—Hirsch
Lake
general
worked out
serious
try-wide
Orleans, La.
amendments to
on
Ira Haupt & Co., Ill
Colonial Airlines, Inc.—Analysis—Pershing
on
the
association
most
Co.,
8c
problem.
Analytical brochure
Analysis
of
the
under
Corporation—Analysis—F. S. Mose-
—
real
the
case,
of
conferences
10, Conn.
conference
Secretary
Broadway, New York 6, N. Y.
consin Power &
point
agreements
and labor at expense of
Peabody & Co., 17 Wall Street, New York 5, N. Y.
memoranda
Haupt & Co., Ill
"arbitrator,"
Vacuum Oil Company, Inc., New
Burlington Mills Corporation
and
any
will not be solved from the view¬
consumer—not
ley & Co., 14 Wall Street, New York 5, N. Y.
4, N. Y.
In
Seal.
sional
Co.—Analysis—Gerstley, Sunstein & Co.,
121 South Broad Street, Philadelphia 7, Pa.
Bohn Aluminum and Brass
laws,
union "cutthroat" manufacturer.
of the
Chemicals
sylvania Railroad
Co., 30 Pine Street,
bulletin are data on
persistence of strikes where such conferences have existed,
afforded for collusion between managers
The
Supply
Central Maine Power Co.
minimum-wage
even professional goons have
entirely eliminated the non¬
not
and the opportunities
Broad
Corp.—Memorandum—Sills, FairHarris, 209 South La Salle Street, Chicago 4, 111.
New York
and
Bonnett, in pointing out shortcomings of nationwide laborconferences and agreements, calls attention to
York Central Railroad, and Pennsylvania Railroad Company.
Firm
home
the
those
•
Circular
—
also reviews of Socony
Famous
dress¬
a
than
management
Co., 14 Wall Street, New York 5, N. Y. In the
way,
migration,
No Panacea of Labor Peace
.
Blockson
hired
re¬
laws against "tenement factories,"
Union-Management Conference
American Natural Gas Company—Brief review—Orvis Brothers
are
machine
or
"minifoni"
120 Broad¬
America—Memorandum—Hemphill, Noyes &
Co., 15 Broad Street, New York 5, N. Y.
Hospital
&
Co.—Memorandum—White, Weld
1
Aluminum Co. of
&
price
who
efficient
more
sumer.
/ Street, New York 4, N. Y.
&
this
Hence, the industry had to
its collusive
Corp.—Memorandum—Emanuel, Deetjen & Co.,
Broadway, New York 5, N. Y.
man
Illuminating
Elm
74
Gas
American
of
women,
dressmaker. But restriction of im¬
Manufacturing Co.—Memorandum—
Blair, Rollins & Co., Inc., 44 Wall Street, New York 5, N. Y.
Street, New York 5, N. Y.
Alleghany
be
By CLARENCE E. BONNETT
outlook—Francis
on
Tobacco
120
com¬
sewing
the
to
maker.
Burkart
Inc.-F.
4, New York.
Railroads—Bulletin
Alabama
the
themselves
up-to-date com¬
Jones Averages and the 35
way,
victims
,
Over-the-Counter Index—Folder showing
Wall
sorted
Broadway, New York 6, N. Y.
Textron
Stocks—Comparison and analysis of 17
30, 1953—Laird, Bissell & Meeds, 120 Broad¬
of June
&
same
Standard Power & Light—Memorandum—Ira
City Bank
New York 5, N. Y.
York
the
more
fixing than
N. J. Sewerage Authority—Descriptive folder on
$1,400,000 revenue bond issue—Boland, Saffin & Co., 20 Pine
Street, New York 5, N. Y.
Tokyo, Japan.
way,
&
Runnemede,
dividend
payments of major companies during period ended May 30,
1953—in current issue of Weekly Stock Bulletin—The Nikko
Securities Co., Ltd., 4, 1-chome, Marunouchi, Chiyoda-ku,
issues
more
encour¬
even
dustry against the "cutthroat
available is an
Western Railroad,
Incorporated—Analysis—Van Alstyne,
Co., 52 Wall Street, New York 5, N. Y.
Riverside Cement Company—New analysis (Report C-20)—
Lerner 8c Co., 10 Post Office Square, Boston 9, Mass.
First National Bank Building, Houston 2, Tex.
York
allowed
methods,
petitor." Men, however, have been
Also
Companyf, Peoria & Eastern Railway,
Continental Can and Crown Cork
New
notoriously
was
The garment workers*
however,
efficient
61
Noel 8c
Building, Jacksonville 1, Fla.
Japanese
Company,
The
processes.
,
Florida Bonds—Bulletin—Pierce-Carrison
pany,
&
was
aged them, but "policied" the in¬
New York 5, N. Y.
York, Susquehanna
Street,
of New
agreements
unions,
Hutton
Revere Copper & Brass,
Industry—Study—Riter & Co., 40 Wall Street,
5, N. Y. Also availabe is a study of Schering Cor¬
poration.
Houston
F.
appeasement
against the efficiency of
inefficient.
and Tennessee Central Railway.
Drug
New York
Broad
analysis
Depressed Stocks—List of thirty which appear to
6, N. Y.
Cor¬
Republic Steel Corporation—Analysis—Eastman, Dillon & Co.,
Broadway, New York 5, N. Y.
Ethical
Securities
Broadway, New York 6, N. Y.
Corporation, 120
quarterly comparison—New York Hanseatic
Corporation—Bulletin—Aetna
Home
any
recently,
industry under the confer¬
ence
poration, 111 Broadway, New York 6, N. Y.
City 10, Utah.
Trust
and
the Utah,
on
rado area—Dept. K, Utah
stove
about
in
Until
way.
the
of
said
is
rights
machines and
new
Milwaukee
man,
whatever
directed
'
competition
Anti-Trust Act
consumer's
favorable
much
Corp.—Memorandum—Miller Securities
Textile
Metal
the following literature:
send interested parties
to
&
Building, Philadelphia 7, Pa.
Trust
will he pleased
that the firms mentioned
understood
is
Corporation—Report—Hecker
Maxson
L.
"awful"
Sherman
when applied to the conferees.
are
Pacific Land Trust.
W.
how
the
and
Co., 14 Wall Street, New York 5, N. Y. Also available are
memoranda on Gulf, Mobile & Ohio Railroad and Texas
only to hear or read
proceedings" to
"conference
learn
Lehigh Valley Railroads-Bulletin (No. 134)—Smith, Barney &
Dealer-Broker Investment
has
One
Co., 225 East Mason Street, Milwaukee 2, Wis. In the same
issue is an analysis of Safway Steel Products, Inc.
Thursday, July 30, 1953
and
associa¬
"the
aggressor
honor for security."
"security" of fixed prices
at the expense
of the
by
the
But the
was
all
consumer.
to
MIAMI,
The
Financial
Fla.
—
Chronicle)
Estelle
Alex¬
joined the staff of Oakea
Company, Ingraham Building.
Miss
Alexander
with Bache & Co,
was
previously
Volume 178
Number 5242... The Commercial and Financial Chronicle
Continued
Closing of New Jersey Highway Authority
Garden State Parkway Bonds
The Korean Armistice—
A
(353)
Queer Document
By JOHN W. BECK
Korean Truce
scores
"queerest document in all
as
Holds
make.
what
has
lie
The
queerest
document
in
document
is
armistice
•.
alleged
be ">
to
the
between
all
This
United
Nations
•
an
or¬
ganization
the
on
bring
about
(a
the
unification
short
of
shares
for
ernment
armies
and
the
of
beyond all reasonable limits
No
who
one
has
studied
munist methods will be
Com¬
foolish
so
ist
aggressors
on
the
other
hand.
With
just
Co
i
m u n
in-
t
ag¬
s
gressors
are
signing?
w e
Nam II signed
lor what is left of his forces, but
there is no North Korean gov¬
ernment; and two-thirds,
of the people
North Korea
who
are
will
or more,
where
Parallel
they
from the Communist rule
fled
or
sur¬
rendered for sanctuary.
•
When the terms of the armistice
will
drafted, however, the bandit
who claim
aggressors,
connection with any
ernment,
Irom
United
enforced
armies
existing gov¬
demanded
the
guarantees
Nations,
be
to
by the government and
of
the
the
prevent
United
States,
recognized
ment of Korea from
self
official
no
to
govern¬
established
or
continue
is
govern¬
same
and
bandit
ag¬
left free to reorganize
aggression under new.
eralship. In the future the
can
say,
agreement
the
gen¬
Red
present armis¬
"We who sighed the
Panmunjom
at
have
nothing to do with this new ag¬
gression. These are new 'volun¬
teers'
who
Agrarian
fighting for
now
are
reform.'"
Who
nay,
and just what could the
UN
and
the
United
States
do
in
instance?
an
instead
eign
a
in
a
the July
20 is¬
the
world-wide
stalemate,
scend
dynamic for¬
would tran¬
new,
which
the
political
if it did not tran¬
even
38th
way
Parallel."
of The National
management
good
conscience
ridding
herited
Mr.
National
of
Bank
science."
becomes involved in
an
agreement
It
can
away
of
is
The entire
in late
The National City Bank of New York;
New Jersey Highway
man
and
force, if
nec¬
from attempting to protect
banditry in its
efforts to reunify the Republic
of
Korea.
will
six
in
be
South
and
have
to
done
million
that anything
Korea,
properties
been
re-invest
North
Koreans,
with
which
from
driven.
the
These
ever
about
now
lands
they
lands
and
properties north of the 38th
Parallel will, under the terms of
this
them
a
new
so
agreement as we
far,
know
automatically go
as
reward to Red banditry.
Justifying
It
Surrender
argued
that political discussions will take
place which will be designed to
can
immediately
be
H. J.
of
ST.
and Paterson to Cape May.
&
The
York offices of The National
J.
Mo.—H.
LOUIS,
Lange
Co., Inc., has been formed with
in
Boatmen's
the
to
specialize
funds. Officers
Orrie de Nooyer, Secretary,
ceremony
over-the-counter
Lange Go.
Building
President,
are
and
in
Bank
mutual
Harry J. Lange,
J.
Bert
took place in the New
Lange
formerly
was
an
officer of
Slayton & Co., Inc.
City Bank of New York.
'
f
not an
offer
to
;
sell these securities.
#
Tliey
are
subject to the registration and
of the Federal Securities Act. Information about the
issuer, the securities, and the circumstances of the offering is contained in the
prospectus
is
which must he given to the buyer.
NEW ISSUE
in¬
that
away
CORPUS CHRISTI REFINING COMPANY
questionable
do it "in good con¬
the
though
even
and
war
820,000 Shares Common Stock,
gets
will not be
(Par Value 10 Cents Per Share)
i
ridding himself of the
dilemma.
The
dilemma
.Eisenhower
in
which
in
still
all
we
find
obligation,
our
which
finds
Trice $1.50 Per Share
Mr.
Mr.
ourselves—
by
treaty
Eisenhower,
and
Business: The company
crude
all
United States Presidents who fol¬
The
been
in
war
won
Inchon
as
Korea
long
landing,
ago
if the
free
of
that
States
had
were
and
will
the
if
to
back up its own commitments and
traditions.
All of this has been
verified
in
is essentially engaged in the operation of
oil transportation system, and
products. The
Christi
company
own
purpose
of exploring and de- ^
production.
writing by several of
The common stoek herein
offered
represents
financing
pany.
is
in
by
the
new
com¬
This common stock
expected to be traded
the
over-the-counter
VICKERS
BROTHERS
market. This
been
offering has
underwritten by
field Generals who have oper¬
ated in Korea.
Instead,
we
shameful
sentatives
tral"
tures
to
while
deal
are now
New York 5,
52 Wall Street
the
of
repre¬
so-called
"neu¬
hovering like vul¬
waiting for the UN
death
DIgby 4-8040
witnessing
spectacle
from
nations
blow
to
Presi¬
of the prospectus
Name...
the Common Stock of Corpus
Address.
Please send
relating
to
me
i copy
Christi Refining
Company.
dent Syngman Rhee and the little
Republic
he
•
has acquired all of the slock of the Corpus
our
the
a
sales organiz-
manufacture and dispose of petroleum I
Exploration Company for the
veloping its
a
the
as
organization
Government
an
numerous
It could still be
United
refining plant,
ation, to purchase, process,
have
if the UN had the will to win
or
our
could
and
times since then.
won
,
himself—
charter, to the i United
So long as that treaty
founded.
Is
Queen,
Vice-President and Secretary. Mr.
Treasurer, New Jersey Highway Authority; and Frank
Morse, Lehman Brothers.
Light & Power Co.,
the
Formed in St. Louis
Authority; Bayard L. England, Vice-Chair-
(temporarily) of that particu¬
lar problem through surrender, he
it,
It is unlikely
in
offices
rid
government of Korea and restrain
itself from further
Bank
D. K. Pfeffer, Vice-President,
are
a
Lehman
1954.
bandit aggressors low him, will be bound to the dic¬
they have been tates of that organization, even
It
appears
that they though they destroy our honor
desert
the recognized and wreck our nation.
that government by
National
give
perform¬
market.
completed and in operation
the
an
a
should consider Tucson
Electric
traded
projected $285,000,000 Garden
165-mile parkway will be
protect the
against whom
essary,
First
The
and
Standing, from left to right
the
true
sign
can
it
Obviously,
signs
exists,
States,
bqt
war,
Nations.
to
York
New
the initial public financing for the
"Life"
away
himself
dilemma.
whether he
he
to
investment
Re¬
under
sign
Eisenhower
the
continue
should
the U. S. has not won,"
war
that the UN, and through that or¬
United
that
Gas
Chicago. The sale of the bonds, which are state-guaranteed, marked
circumstances cited above, "Pres¬
ident Eisenhower can
(now) in
ganization
agree
Bank of New York,
City
prospectus requirements
editorial
same
observes
Such
is that if you
operating utility
territory that is just
a
you
Authority
Brothers, The Chase National Bank, Bankers Trust Company, First
This is
the
Highway
Authority Garden State Parkway Bonds, Series A, under the
examining the campaign speeches,
"Life's" analysis appears to be the
shocking truth.
through
fighting.
Jersey
a
State Parkway to extend from Paramus
.
policy
in effect, is
to
.
was
scend
is
What is happening,
the
we
with
ing his campaign, Mr. Eisenhower
promised only to end the stale¬
mate in Korea; he did not promise
victory.
"What he promised
could
say
such
that
dickering
editorial
further
new
tice
intended
of "Life" points out that dur¬
thus
signatories to
it
sponsibility?
first
gressors are
ac¬
bandit group utterly devoid of re¬
Red
Korea
they make, these
be
can
New
check from banking representatives of the
nationwide group which recently marketed the New Jersey High¬
received
24
i
accept responsibility to
North
ance
the
of
Commissioners
Two
July
Dilemma Stands
guarantee that the bandit aggres¬
of
the
these political talks be
held,
China will abide by any agreements
sors
al¬
that
believe
Korea
shall
In
no
has
million
sound
satisfactory
defending it¬
Bandits Protected
Since
of
ment will
against them.
ment will
it
complished by political approach.
And again the question immedi¬
ately arises, with what govern¬
.
were
which
ever
unification
sue
38th
that
enterprise
south of the
now
a
suffice to take from Red
ever
An
a
in
which
ready annexed. None but the most
resided in
once
permit
be
beginning its real growth and one
imagine that political talks
naive
what
John W. Beck
to
as
of
conclusion
My
want
"
United States,
and Commun¬
to
one
to
stock
interpretation of honor.
an
number
actual
outstanding.
split occurred in 1948.
fered, be stretching the imagina¬
tion
the
outstanding is not large in
for
two
armistice.
by the gov¬
stock equity
of the capital of the
consideration to splitting the stock
argument will, when of¬
hand,
implemented
one
common
38%
over
that
procedure
the
further im¬
a
company.
It would seem logical
the management should give
of
honorable
justified
also be haz¬
relation to the present size of the
force)r
said, too, that this con¬
which
an
hope of
company
stitutes
Such
the
shares
means
It will be
in
While the
is
Predicts unified
Korea
estab¬
guess may
provement in the dividend.
agreement to protect bandit
an
record
has
company
arded that part of the reason may
Korea will not be accomplished.
history has been executed.
A
wonderful
the
this
lished.
by agreements they
whom they have been fighting.
aggressors
in
which
happened is that, through the UN,
the U. S. becomes involved in
lies
son
history," and says under it no established government will
accept responsibility to guarantee that bandit aggressors of
North Korea and Red China will abide
2
page
The Security
I Like Best
Financial Editor of "Daily Oklahoman," Oklahoma City, Okla.
Mr. Beck
from
9
this
honor?
-awy-Or1
-
N.Y.
The Commercial and Financial Chronicle
10
Thursday, July 30, 1953
...
(354)
the process of using these controls flationary
pressures
are
dead.
Within recent weeks, the Presi¬
which, in turn, as they were intended to be used,
and
other
Administration
has helped America to lead the that is, to have as in so far as dent
spokesmen
have
indicated
that
possible, a stabilized economy.
fight for a free world.
the budget will not be balanced
Is it not time that we and our
The major vehicle being used
in the fiscal year beginning July
business friends understand that by the Eisenhower Administration
1. If this occurs, it will mean fur¬
we
can
never
get any place by in its drive for a stable economy
ther deficit financing
and suqh
trying to subsidize ourselves and is its vigorous pursuit of a "sound
dustrial
CHARLES L. CLEMENTS*
By
Savings and Loan League
President, United States
i
and Loan League, after laying down
Head of U. S. Savings
principles to be followed by savings institutions, calls attention
widespread interest in national problems of monetary and
credit management, because of the 50 millions of savers.
Federal Reserve
The
last
taught
have
decades
two
that in
who
shall
produce it,
be
who shall
what
'
1
ine regard in
much
much
and
finally,
on
training
the great issue
the
than
worse
average
a time, or piece¬ present program of sound money
party to the piece¬ really began back in March, 1951,
vivisection of the American when the Federal Reserve Board
cialized,
at
one
we are a
meal
of free enterprise and in¬
dividual opportunity.
It was Ben
—in
drew
its
Franklin who made the statement:
ment
bond
"We
together
hang
can
hang
or
There
are
for
reason
many
savings
and
loan
of
war
and
(3) Our reputation as savings leagues and the fact that we must
peace, whether and
loan executives will not be not only be on guard against so¬
we
shall live much better and not much worse cialistic legislation in Washington,
or
die.
than the soundness of our mort¬ but also in the 48 state capitols in
How people
compelling
reason
for
gage loans and other investments. another
feel,
what Somehow people have a way of having strong state savings and
believe
they
and
how
vote
Cfaas.
Clements
L.
findmg,
they
really
means
to
more
(4)
us
and
making
than
much
security
as
managers
leagues
It
States
strong
a
as
be
hope that
business, state by
our
lic
and
that politics carry
lot of anticipation and a lot of
legislation
the
with
kind
and
We recognize
lending
direct
housing,
socialistic
of
same
the
govern¬
things
Two
the
wake
action:
this
of
First, government bonds then out-
Standing dropped below par and
have stayed there and; second, in¬
terest rates on Treasury issues of¬
since
fered
that
have
date
risen
These developments
much
ficial
effect
and
the
upon
average
which
inflation
They
of the "push¬
accom¬
panied the unlimited Federal Re¬
serve
bond
The
tion
is
of the
support
government
market.
Policies
of
In
uncom¬
the
its
new
tenure
so
in
far
Administration
office,
has been
working to reinforce and strength¬
dollar
are
commend¬
the
public
in
are
in¬
and they are entitled to
support.
For the sound
money
policy, the high officials
of the Treasury and the Federal
Reserve Board deserve the thanks
of millions of Americans who
savings
cies
other
and
own
poli¬
savings.
insurance
accounts,
forms
of
The victims of inflation—the wid¬
of
ows
pensioners,
veterans,
war
the aged
who had planned to live
out their
lives quietly on accu¬
mulated savings—have found new
champions in Washington. At long
last, the rights of those who live
relatively/ fixed incomes have
on
recognized.
The
storing
stability
the
is
to
clean
fight
of
and
in
intelligent
The
fusion
way
program
that
management
unwinding is, also, far
desirable
has
more
tjian the red-tape,
dictation
and
that
abortive attempts to
through
re¬
currency
our
inflation.
credit
been
to
the
by
pursued
course
Eisenhower Administration
flation
New
the
Administration
Administra¬
new
terest,
public
the
The
of
be,
inflationary.
the
making in the direction of
they
able,
would
clearly
moves
sounder
a
a
bene¬
realizes.
he
than
the abolition
button"
have had
dramatic
more
meant
development
a
course,
been
steadily.
and
promising attitude that has char¬
acterized the program of your na¬
of
market.
happened in the money mar¬
in
nature
any
decision—with¬
support
American
League.
is
against creeping socialism will
fought in the state capitols and
tle
have
state, will meet the issues of pub¬
Adequate loss reserves.
Sound
well
as
quite possible that within
the next few years the major bat¬
I
(c) Liquidity.
cannot be
much worse than
better or
and I
ih vestments
mortgage loans. 1
(b)
business
American
of
that you
(a)
backward as a group if,
while making a dollar, we lose a
potential ally. The future
public, the only insur¬
are:
from us—obviously, we are
loan
United
are.
have
going
methods,
our
While the Federal Savings
Loan Insurance Corporation
ance
•out of business or vote our money
away
what
out
insures the
In fact, people can put us
money.
state
strong
historic
an
ket
separately!"
attitude of our em¬
ployees.
and
know, there has been an increas¬
system
held
shall
and
for of¬
which we will
by the public will not be
better, neither will it be
(2)
be
wear,
we
eat
excuse
an
fending the minority.
it,
consume
as
money"
policy some call it a
"hard money" policy.
As you all
ing amount of speculation over
against socialistic
legislation of the advisability of this program,
any nature affecting any segment and for the saKe of clarity, i will
of the nation's business?
If you spend a few minutes talking about
and
I,
as
businessmen, permit it.
In the first place, I think it
business in this country to be so¬ it; ipannrtpnt
to
r^lDp
t.hp
be meal,
not
should
prevails
misconstrued
consumed
and
democracy the majority's
a
opinion
what shall
/
However, the fact
appointed few.
that politics can deter¬
mine what shall be produced and
us
time
not
support of government bonds at par,
resume
competitors either at
state level?
Is it
that
we
businessmen
or
everywhere take a concerted stand
money" policies of Eisenhower Administration,
efforts of some members of Congress to have
Praises "sound
decries
our
Federal
the
to
and
progress
socialize
Policies
Return to Sound Money
mainspring of their in¬
the
been
con¬
marked
curb in¬
direct
controls.
Furthermore, it is not too much to
say that
the restoration of con¬
fidence
in
our
the
around
is doing
currency
in
good
more
financial
circles
globe than
any single
tional organization during the last en this program of sound money
understanding and a
policy move or gesture.
with a series of courageous and foreign
disappointments.
However, what 60 years.
attitude of the American voter.
Two examples are worth our at¬
the American people think of us,
Since
Two of the
There is not a single business¬
politics and government far-sighted actions.
our
services,
our
attitude,
the have so much to do with our most significant things it has done tention.. The first is in recent
man who does not influence many
weeks there has been a flow of
soundness
of
our
program
will, future, and since we can only in¬ to date are:
people, perhaps many more than
gold back into the United States,
3ie
thinks.
If a great body of through the years, be the deter¬ fluence government by influenc¬
First, it has begun the conver¬
revising a trend of many years.
businessman would take an active mining factor in what politics will ing people, it becomes obvious that sion of part of the maturing pub¬
The second is that the Canadian
do for us or against us.
the prime objective of our trade lic
interest
in
debt
from
short-term
into
politics, starting in
dollar, worth $1.02 in American
It is, of course, difficult to say
their
own
communities
and
organizations, the U. S. League long-term issues.
the
economic
what
of
constructive
states, they could be one
own
the greatest and most
forces in our country
attitude
the
of
and the government
the
people
will be in the
depression, in
the
and
better
state
it
Second,
the
raised
has
inter^
of
est rates on government — guar¬
event
of
another
and better understanding of peo¬
today. Busi¬
anteed
and
insured home mort¬
terms of government support. Our
ple includes better understanding
a vote
gage loans.
government
has in the past 20 of people in competition to us. If
of confidence each day through
To put it in a
few words, the
the medium of the cash register. years bailed out the different seg¬ we would oppose restrictive legis¬
ments of our economy,
in fact, lation as vigorously for the other policy of the new Administration
They know that the only thing
bailed the world out until it has fellow as we would like him to is based on the belief that it is
that makes a cash register ring is
wiser and less costly for the Fed¬
bailed itself in debt to the extent do for
us, perhaps he will be more
the confidence of the public which
eral Government to pay more on
of some $265 billion.
inclined to come to our aid in the
comes as a result of honest service
the public debt and thereby avoid
If we in America as farmers,
event
our
business should come
and honest values.
As a natural
inflation than it is for the govern¬
merchants,: manufacturers and under attack.
result
of their
background and
ment to sponsor inflation through
professional men are going to con¬
training they could bring to gov¬
a
tinue to insist that the Federal Public Interest in
"cheap money" program
and
Monetary and
ernment at home and in the na¬
then pay inflated prices for all the
Government
take
all the
losses
Credit Management
tion's capitol the factual approach
incurred by our business groups,
goods and services it buys.
As spokesman for some 16 mil¬
* that
has become a matter of habit
isn't it only logical that the gov¬
This
is, in my opinion, good
with businessmen in business life.
lion thrifty and home-loving fam¬
ernment will eventually conclude
ilies,^ perhaps comprising some 50 reasoning—reasoning that is in¬
It has been said that any foun¬
that ,if government must absorb
dicative of the fact that we have
million people, we in the savings
dation, no matter how much de¬ the losses, it must, of necessity,
in the
new
Administration men
and loan business have a direct
cayed material there may be, is also take the
profits. If you and and
who
respect and appreciate the
continuing interest in mone¬
safe so long as there remains suf¬
I and the balance of us continue
need
for retaining the value of
tary and credit management. It is
ficient
sound
material
to carry
voting for such a program, there
not a questioq of whether or not savings.
the load.
Our savings and loan
is
only one
logical conclusion,
It
is
true
that
some
we shall have Federal money man¬
persons
industry represents approximately rf-T7ornment ownership of every¬
agement — we
already have
it have expressed deep concern over
one-third of our population,' and
thing.
the monetary policies of the na¬
through the Federal Reserve Sys¬
.more important, we represent the
nessmen
are
America.
families
These
They
are
your
While
it
number
of
is
that
true
socialistic
quite
ideas
a
have
been
quite thoroughly discredited
in Washington, a lot of them are
now seeking more fertile fields in
the capitols of the 48 states.
The
proponents of these schemes are
has made
business and mine what it is,
and
perhaps have made a greater
other group being aided in too many cases by
toward the material progress and business people like you and I and
contribution than any
sound economy of
Principles
Savings
In adjusting our methods, our
thinking and our attitudes in an
orient
to
ourselves
closely with the thinking,
more
under¬
standing and needs of other
ple, I believe there are a
principles upon which we
quite well depend.
(1)
racy
In
a
such
believe
peo¬
right
few
on
can
as
our
the
republic is,
decisions
of
afraid
their
of
support from
and
Republicans alike.
only concern therefore is the
intelligent application of controls
and
over,
management of,
As trustees for the home-loving
families
who
counts with
and
to,
back to
have
must,
our
savings
arrived
years
*An
are
now
we
at
after
state
the
endeavor
than the decisions of
address
by
Mr.
a
Clements
seifbefore
to
pay
customers dollars that
will be worth
as
much
a
face
to
A
own.
lot
competition
of
our
col¬
are
in
today
the
form
of
Federal
or
laws, is the direct result of
hind
our
few years
mortgages—the
home.
can
support
Obviously
any
extremes of inflation
.
or
go.
the
Our
present
and
credit
the
premise
controls
some
business
on
They do not
their
seem
competitors.
to understand
deflation.
extreme will be the
more
collapse.
of
should
prevent
Our experience has been that
the further inflation is allowed to
monetary
demand
groups.
Ameri¬
we
to
measure
to impose unfair, unjust,
ill-advised
and
burdesome
re¬
the
open
better through the
ac¬
us,' we naturally want
strictions
majority
discussions
credit.
are
teaching what is
the apparent fact: namely, that a
great part of restrictive legislation
leges
representative democ¬
that
competitors, who
our
Associations
effort
result
a
hence as at the time they were
thinking
entrusted to us.
We are, there¬
too much about imposing restric¬
tions on competition and too little fore, vitally concerned, first, with
the matter of uncontrolled infla¬
about fighting socialism at home.
Tooi many of these ideas are today tion; and second, with deflation
which automatically follows un¬
being sponsored
by jealous or
controlled inflation, destroys the
timid business groups, jealous of
their competitors, or just down¬ monetary value of the security be¬
this country.
for
as
Democrats
Our
the great Ameri¬
middle class which
tem,
Socialistic
Laws
million fami¬
16
ple, can and perhaps will be the
foundation of the America of the
can
state
of
Threat
of
lies, perhaps some 50 million peo¬
future.
be
based
on
be
used
credit in time of
system
controls
that
of
are
such
for
contracting
inflation, and to
the Southeastern Croup Conference of the
United States Savings and Loan
League,
that
expand credit in time of deflation.
Baltimore, Md.
of
The
competition is the life blood
business, that competition has
Administration
today
is
in
tional Administration.
include
sons
some
for
98
in
cents
can now
American
Of course, it would be less than
fair
not
"sound
had
to acknowledge that the
money" program has not
deflationary impact in some
However, I think that
perhaps the vast majority of us
are
in
favor of making adjust¬
a
quarters.
now
in
order to provide
stability in the future. The
ments
more
trouble
take
No
adjustments.
lose busi¬
wants to
individual wants to take
no
city
no
defense
to
wants
payroll.
must underestand
lose
However,
a
we
cannot make
we
(adjustments
nationally,
without
making a good many personal ad¬
justments in our own communi¬
ties.
Opponents of the
tration
they
say
present
These per¬
are
opposing
susbtantial
new
Adminis¬
supporting
policies, but
are
cies.
foreign
economic
our
poli¬
By this, they mean they
opposed to the attempt to cut
are
ex¬
they will penditures, balance the budget and
capital move toward a more stable econ¬
and
financing.
But why should omy.
not the line of reasoning adopted
In
our
present great struggle
by the Administration also apply for world peace, it is hard to tell
the rise in interest rates,
have
in
to pay more
these
cases?
for
It
new
would
be
bet¬
what
we
have
won
so
far
on
our
ter, in the long run, for a business foreign policies, either under the
or
an
industry to pay slightly Democratic or the Republican ad¬
more
for its working or expan¬ ministration.
The one great ca¬
sion
than
capital
to
get
"cheap
money" and then face further in¬
flation
in
operating costs.
Complaints
in
for
cess
thing
Quarters
Political
tastrophe
that
our
the
Kremlin
and that is
If
the
would
our
mean
is
enemy
suc¬
the
one
is
relying on
economic collapse.
has not been won by
foreign policy, then converse¬
lost
plaints from political quarters on ly it can be
by the col¬
the sound money policy.
About lapse of our economic system.
We
ten
of
are
days
also hearing some com¬
ago,
eral
of
Reserve
20
some
Congress urged
members
th^t the Fed¬
resume
its
support
bonds
at
par.
is almost incredible
to think that just as some devas¬
tating blows are being struck at
inflation,
that
there should be
some
in
public life who would
government
Frankly,
have
of
us
it
re-mount
the
treadmill
inflation.
In
this
connection, it would be
premature to say that all the in¬
war
our
It is quite obvious that Presi¬
dent Eisenhower realized that the
foundation
of the
arch
economy
of
The- success
efforts
ciates
of
free world
is
the
or
structure
based
failure
stabilize
and
our
States.
of
his
determine
whether
will
be
maintain the
nomic
the
and
America
eco¬
military leadership of
world.
imagine
to
the
asso¬
economy
will
able
the
on
United
by himself
to
the
the
It
would
tragic
be
>
to t
wants
usr
individual
our
loss,
of
none
individual
ness,
a
is,
our
realize that with
businessmen who
had
funds.
accustomed to
home-loving
thrifty,
few months ago,
money a
should be
people,
leagues,
understanding
hard
to
consequences
Volume 178
Number 5242
The Commercial and Financial Chronicle
...
(355)
if
they
should fail in
this
great
little attention at
undertaking.
I heard
caution
silly story
a
the radio
on
found himself
■when
he
and
on
he
found
had
shoe off.
one
was
By WALLACE
un¬
able to determine whether he
STREETE
was
them
putting
off!
There
on
taking
or
at least
are
people
today trying to
decide
something just as silly —namely
whether
they will go behind the
Curtain
Iron
support free
or
en¬
terprise and the free world.
The
kind
maintain
of
in this
what
termine
.
.
government
.
we
country will de¬
the
people will be.
choice of
And
these
the kind
of
What consolation there
was
coming
in the stock market's behavior chose
this
week
was
mostly of a
was mildly
encouraging that the Korean
this
along.
to
Instead
lead the way
week
on
down way off
handy but
the
not
necessarily correct theory
through to what
here
in
of
this
politics
play out from
during the the
country
we
determine the kind of
will live in not in
10
20
or
years,t
feel
I
the
express
of
the
savings and
of
the
whole
ing
President
Eisenhower
effort
sacrifices
establish
United
States
The
has
savings
his
a
order
loan
in the
business
13
major depres¬
five wars and is
influence
than
ever in both of its chief
phases of
activity—thrift and home owner¬
ship. If it is necessary for us to
take
few
a
adjustments
business, if it is
in
for
necessary
dents
who
due
to
the
to
do
and
and
so,
it
owe
customers
our
nature
very
we
to
to
to
us
of
our
ourselves,
the
nation
the
encourage
other fellow to do likewise.
I feel
that
I
the
express
was
senti¬
have
the least
that
a
few
a
adjustments, if necessary, politi¬
cally or otherwise, in order to
establish
and
economic
maintain
system
in
sound
a
the
United
States of America.
Following
sum¬
speech
few
a
Eisenhower's
nights
ago,
the great papers in this
had the following to say:
"Mr.
pose
Eisenhower
support
or
Congress
for
did
of
one
country
not
pro¬
proposals in
relief at this
any
tax
time; neither did he promise that
the budget would be balanced in
1953-54.
It
seems
fair
to
assume
that he did not hold out any such
hopes
because
could not do
tellectual
If
ever
when
complete
honesty might be
phase
in
control
of
of
more
to
credit
the
it
is
with
do
the
and
integrity
of
the American currency.
savings
operative
bank
and
loan
and
business
is
co¬
now
approaching the $25 billion mark.
The obvious potential of
ness
will
double
in
success
in
depend largely
ness
and
our
obligation
our
box
ballot
what
our
busi¬
justifies the forecast that
Such
we
the
next
the
business
upon
our
we
decade.
will
willing¬
ability to discharge
and
to
others
in
our
practice,
not
preach will determine
quence
*
at
offices
what
our
the
—
we
conse¬
among men.
na¬
con¬
*
have
the
fared
of
far
bullish
a
growing interest in
the
group.
Pacific Western
Oil, notably, has been able to
peace
'!•
[The
views
article
time
do
*•
with
coincide
at any
of the
They
Until
it
the Korean
those of the author only.]
•!•
-Fahnestock &
CHICAGO, 111.
One
as an
the first half of the
posted
when
the
talks
illustration of how
industrials
than
On
*
*
*
far
were
Co.
was
on
in the
what
most
Street.
Mr.
Sorenson
was
'formerly with
Mitchell, Hutchins
and
&
on
vestors
Mutual
handle
such
Fund
James H. OliOlaf
A.
Sorenson
phant
&
❖
set
up
*
business
years.
for
more
v*.
Joins A. B. Hogan,
(Special
The Financial
to
BEVERLY HILLS,
Inc.
Chronicle)
Calif.—Peter
A. Boukidis has been added to the
staff
of Arthur B. Hogan, Inc.,
Waynescrest Drive, members
of
the Los
Angeles Stock Ex¬
change.
1673
With Shearson, Hammill
(Special
to
The
BEVERLY
Financial
HILLS,
Chronicle)
Calif.—Ru¬
dolph Wih'l has become affiliated
The coppers were
no
alties of the week.
Anaconda
and
lows
on
the
Kennecott
broke
unsettled
casu¬
to
new
with
Shearson,
9608
Santa
Wihl
Mr.
Hammill
Monica
was
conditions Hemphill,
&
formerly
Noyes
&
Co.
in the world markets for the Shields & Company.
hold¬
Offered
NEW
the group of goods industries was certainly
deliberate. Despite
some of
seeking new low
the spirited arguments against
ground and a base on which
such a policy, particularly as
to make a stand was some¬
joined
as
a
speculation
ISSUE
299,950 Shares
Western-Nebraska Oil Co., Inc.
it relates to the
steels, recent
chilling to the optimists,
market action lends merit to
although hardly surprising in
such a course.
light of all the uncertainty
❖
❖
*
raised by various and conflict¬
Steels have somewhat more
ing "surveys" of how bad, or
good, the automobile business champions than the other
will be for the rest of the groups which is probably due
in part to the earnings reports
year.
*
*
*
that show business was good.
,i(
i
_
Common Stock
i
Offered
At
$1.09
Per Share
Send for offering
circular
The
highly-touted rails Comparisons, however, are
outstanding disap¬ faulty because of the steel
pointment. They had been re¬ strike last year. Nevertheless,
garded widely as being the the seemingly logical apprais¬
logical leaders on the upturn, als to show steelmakers could
particularly with the flood of do well on considerably less
the
good earnings statements
capacity operations get
Israel & Co,
MEMBER
National Ass'n Securities Dealers
111 Broadway, New York 6, N. Y.
Co.,
Boulevard,
issues
than
se¬
than
❖
#
generally, 8.6%. Significantly,
25
are
investments.
showed leading
peace negotiations in the his¬
holdings, in order, to be utili¬
tory of warfare.
ties, 18.5% ; oils, 14.2%; food,
sj:
10.9%; retail stores, 10%;
Little Bullish Comfort
tobaccos, 9.6%and chemicals,
were
Co.
curities
*
*
to
with
what
drawn-out
what
Co.,
prior
that
respectively;
disproportionate amount „fact that soft drink issues
The report
Like the market
135
South La Salle
early this month, ignoring the
of attention centered
probably
Chicago
He has been in the investment
sents.
on
ted
a
office,
more¬
been able to do well in strong
markets, adding as much as a
arrived, the stock market, like
Although
its
commitments couple of points. Now it is half
the politicians, didn't seem to
total only $3,500,000, it drew
a dozen
know quite how to take the
points above the low
the spotlight because of the
despite the lackadaisical ac¬
fait accompli, particularly
top-flight thinking it repre¬ tion elsewhere in the market.
since there was little left to
the
i
the firm
The issue made its low of 108
Policy
to
were
a s s o c
the best it could hit
165 and 118
Olaf
become
with
$5 payments in 1950 and
was
Mr.
Sorenson
has
aver¬
normally popular with inves¬
changes in the various aver¬
the savings banks are doing
tors during the hot weather,
ages were also induced at that
in
the
common
stock field
and did little for a couple of
time.
*
*
*
through the Institutional In¬ weeks. In the last week it has
discount
A.
$4 dividend.
a
announce
that
lower
present. This,
last year,
The Savings Banks' Equity
A
at
over,
extra to boot.
suddenly resumed late in
presented as
With Fahnestock Co.
year, pav¬
dominating market factor all
year, at least from a statistical ing the way for an increase in
basis. Best volume of the year the regular dividend and an
was
those
are
lent
*
this
necessarily
earnings reports started ages don't show the full mar¬
actually arrived, by Douglas Aircraft which ket, Coca-Cola sold as high as
more
than doubled profit in 200 in 1946 when the Dow
peace has been the
*
to
in
expressed
not
Chronicle.
Soft Drink Strength
excel¬
the
and
fol¬
Olaf A. Sorenson Now
dull.
aircrafts turned in
cancellations
contingent.
chart
reduced
were
averages
Considering that they logi¬ go into
gyrations occasionally
cally might be the No. 1 can¬ even when the market was
of
of the
most
lowers
has been around to in¬
dicate
Less Aircraft Worry
didates
fact,
long-depressed stal¬
market is far more willing to producers will fare well des¬ wart of bygone
trading, Cocatest the June lows than it is pite Korea is being borne out Cola, has been
showing a bit
to
fulfill the hopes of the both by the offical contract of life
recently. Often cited
in¬ Motors
another,
having
preservation
The
SjS
Chrysler and General
where
important than
the
time
a
most-
honesty the major groups offered little ings were listed in the steels,
be the watchword,
it is in the way of solace. The fact motors, building or machinery
issues. This slight to the heavy
there is any one area of that
tellectual
that
he
definite
a
ture. Industrials and rails
intellectual
government
in
that
with complete in¬
so
was
complete
should
knew
honesty."
there
now—if
he
Technicians found little in
their charts of
,
But when the actual event
Mr.
long
watching the highs and lows
which are some 8% below the of the
previous week trying
highs of early in the year. to ferret out a hint to the fu¬
Some
slim
evidence, other ture. And that is carrying it,
than the
savings bank prefer¬ down to a real fine point.
selling, the
a
perform¬
mer-rally could get going ance that was comforting to
a
.great measure. A minority
again. Instead, the week's ac¬
tion seems to indicate that the view that the prime airframe
was neces¬
before the stalled
ments of the savings and loan in¬ March. The climactic
selling
dustry in this country when I say that ended this
pressure
that we are willing to stand up
marked up the year's broadest
and
be
counted
in
support of
President Eisenhower in his market. The widest one-day
statesmanlike effort to make
*
than
ence,
Sj!
held
Korean settlement
our
encourage
our
customers
to
take a few adjustments and losses
rather
now.
issues
worse
active list to add that much to
*
consoling to the rather
large group of market stu¬
to
business,
*
None of this
to sary
America.
greater
a
in
and
survived
today
in
make
economy
of
weathered
sions,
to
now
sound
a
loan business
cpuntry in support¬
statesmanlike
few
on
bit
sentiments
a
and most
the
its value.
sfs
we
but for the next 100 years!
I
break¬ ances'at the head of the
range
surely
world
a
was a
trading
a
downside.
next few years will almost
but
The
we have will depend sorbed;
that the weakness was outstanding in that it was
the stability and strength of that did
crop up didn't at¬ able to drop a point in a cou¬
our economic
system. That is why
tract heavy liquidation and
ple of days against the fact
we cannot allow parties or politics
to injure or impair our economic that there was little follow- that it took
repeated appear¬
kind
market
the
red metal.
It inspired some
caution among the other nonferrous
metals
which
reac¬
tinue to hover roughly mid¬
high standing of oils in way between the June lows
that investors were cool to¬
this professional
lineup was and the recovery highs, leav¬
armistice had been discounted ward them because of an end
something of a surprise. This ing room on either side before
well in advance,
to the
leaving little
military and defense group has been under
pres¬ they do anything decisive. In
surprise selling to be ab¬ business. New York Central sure for
months
negative sort. It
government
The
time when
not
in 1951 which is
they
upon
system.
a
prevalent
cepted, made their best prices
them
billlion
one
in
so
throughout the economy. Nor tion, however, failed to do
does it help that most of the
much to the aluminum issues.
❖
*
leaders, Republic Steel ex¬
*
shoe
one
He
only
THE MARKET... AND YOU
Skelton, namely, that he
so terribly confused
by Red
is
11
Tel. DIgby 9-3484-5-6-7
with
and
'
VA
The Commercial and Financial Chronicle... Thursday,
(356)
-
against
The
best
Capital Gains Tax—Most
Damaging to the Investor
All
Suppose
Your
divorces
venture
which
from
$1,000 to $5,000 annually,
period of five
capital assets transfers, and thus enlarge
think
that
of
we
L.rgest organized
-3t
i'
in
are
the
nation's
securities
good position
a
the
.<orve
effects
of
the
t
s
u
he
i
r
tdKing
taking
by
oy
1
a
ui
of
M'die
share
large
Jdige
J
a
Let's
power.
ize,
too, the
tespon-
rreat
real¬
i b i 1 i t
4
tee
y
law
f
o
and
—
we
his
tried
have
now
The
view to sug¬
a
Ameri-
securities.
own
G.
gesting
tax
reforms which
Keith
most
Funaton
most
shortage
to
revenue
of
capital
venture
It is important to
that the
tfew.
capital
gains
latest year
a
taxes
a
in
for which
-available—42%
had
degree
insatiable
—$6
be¬
$5,000. And 74% of the capital
gains returns were from people
annual
incomes
under
Capital
present
Gains Tax
described
be
as
dynamic factors in American
Capitalism—venture, capital
industrial growth.
The
plant
policy
of
taxing
fastest
does not have
a
"growing
nations
Capital Gains Tax.
something
I
just
The
Capital
damaging
laxes
to
the
.shackles
the
Why does
ftinds in an
answer
risk
not
Tax
investor
will
to
untried
is clear:
onlv
for
it
had
a
share for
share.
a
realizes,
But, be-
profit
a
the
Cap-
on
pay a
that profit.
on
tax, since
share
swap
ally
He
invest-
his second
only
share-forhim neither
a
nor
makes
—
This
poorer.
.
When
levy
a
demonstrated
unfairness of
of the
when
that the home
provided
you
of
18
holding
six
a
of
home
all
"gain"
a
vestor in
ilar
within
fairness,
a
on
the
Why,
the in-
year.
shouldn't
securities
be
given sim-
consideration?
Rise
Value
in
quickly became apparent,
in 1943 the Capital Gains Tax on
individuals produced
$266,000,000,
and in 1944 the amount jumped to
$354,000,000.
The
1944
figure,
has
moreover,
been
succeeding
every
topped
in
For
year.
the
1944-1951, inclusive, receipts
Capital Gains Taxes from in-
years
0f
dividuals
averaged
better
$660,000,000 annually.
Of
than
general rise
securities prices over the last
,
cnntributed to this
in
10
rev_
„i:„
rise.
However, the shorten¬
opinion, the principal reason
the improvement in the tax
my
for
of
There
is
unquestionably
market
the
with
pace
the
month—would
one
this
equally
purpose
into the
short-term trader
categ0ry are jn and 0ut of a security within a period of days, or,
at
or three weeks.
Congress wishes to
most, two
If- the
Federal
crease
in¬
and
revenues
at
time encourage the flow
the
same
of
venture
equity
and
capital
funds, the shortening of the hold¬
ing period to three months offers
real opportunity.
a
Second: The effective rate of the
•;
tax
capital gains should be cut
on
in half.
any
tax
capital gains
asset held for more than six
an
that
If
months.
percentage
reduced to 25 from 50%,
als
for
income
as
50% of
purposes
on
individual taxpayers
include
must
would
acquire
were
individu¬
freedom
more
to switch their investments. There
be
incentive
real
a
investors „rea^ze
dollars
of
thus
profits,
"paper
for
killions^of
°f the tax collector. Probably most
ment would increase in popularity
to absorb
a
"
"
equity invest-
all,
important of
:
:
investors, 1
having' taken 1 "
longwith. delayed profits, would reinvest
large volume
buying or selling
in prices—has been
impaired
tremendously
by
the
Capital Gains Tax. Every person
as
their capital in new ventures,
building
laying
tax
industry has
climb in livinS costs- The invest- been suffering a private depresor wj10 sens 100 shares of stock sion jn the midst of great national
which he acquired then may get prosperity. Such a depression if
for
more
in the future.
The
amount
losses which may
of
capital
be offset against
should
income
to
business and
groundwork
the
revenue
Third:
thus
sounder financial struc-
a
ture for American
time the turnover of shares
that the securities
so
.
Most of the individuals who
well.
creased
kept
at
even
or
accomplish
ordinary
about
.
...
.
..
liquidity
of
the
that is the ability of the
The
change
some
-
pres-
rate
capital assets has been,, more who buys or sells stock may be
lllusory than real, as Congress ac- affected adversely thereby. For
knowledged in the case of home
-
^
,
,
securities
inactive
and
either
little
the rise in value
holding period is desirable
a
to enable the taxation of the snortterm professional trader at ordinarY income rates, the fixing qi
the holding peiiod at thiee months
unfreezing present capital holdin§s an(* increasing the revenues
thin
markets.
very
a
between"
connection
direct
of
Capital Assets
If
n
a specu¬
investment pature.
or
would
yield.
ent
lative
At present,
the
course
is of
whether the holding
shorter
period
market
,
Illusory
In recent years,
the
1942,
the
sale of his home pays no tax if present Capital Gains Tax
the proceeds are invested in an- and holding period and our
in
was
minimum
in
late
effect
of time capnai assets are nt q
little, if anything, .to ^ao
fall
.
period
from
months,
beneficial
who makes
owner
kind of
same
the
to
•
i
ing of the holding period was, in
Committee
awareness
than offset capital gains.
more
enue
richer
the
he pref-
company
ment—actually
amassed
$5,000 from
be
$1,000
in¬
an¬
nually, with the carry-over period
continued at five
vears.
™
a
i
,,
.
here
essary
debt
gross
billion
will
by
War II
of,vested
inr«nmp
less
poorer
dollars
he
in-
orisinallv
the
on
with
debt.
For
the
debt
a
[aw js
o£
'Growth
ninoor,
YL-,
of
Gains Tax
incur
realize
tax.
a
to
Such
profit
a
tax
a
can
and.
only
breed inaction.
are many
thousands of investors who are re-
fusi^^
selves
because
ing
h'JSSK:
could, in a period of declin¬
security prices, expose the
Government
enue
.
Recommended^ Revisions of.
period
for
determining whether or not a gain
is to be taxed as ordinary income
S favi at rtnital
or
or is to be taxed at capital gain
is to be taxed at capital gain
in
1950
on
dis¬
the $245 million net
close that, of
allowable
tions are:
holding
rev¬
we are
data
available
latest
The
the Law
Consequently, our recommendaThe
substantial
to
Consequently,
losses.
suggesting a more modest program
—one
designed
to
give
fairer
treatment to the average investor.
,
.
_
First:
lusing to impose this tax on them-
panital-
of capital.
able at this time.
nor,
tax collector-makes the final'
Unquestionably there
ot
the Capital Gains Tax law retards
frrowth
Capital
company s n0, ttie law, the government
the Tax Retards Capital
o
the
capital loss should be the same as
the tax that would be required on
a capital gain of identical amount,
That
would
constitute parallel
VSS'" ever,
niag'^.r°
J* l°£c,?'1
that the investor himself—
decision
t
general public.
*
It is my deep conviction that
any Capital Gains Tax cannot be
defended on any basis of justice,
•
y'
thp
the
buy
and
ended
•
u
dead. welSht on
How
he takes the
ci0thes
than
' actually
a penalty on thrift and I realize as a practical person, that,
' an aPProach to capital confisca- because the Government needs
emphasis is nee- tion.
,
,
huge sums of money, some form
the dangers ingy
fai. the
most
incongruous of Capital Gains Tax is inescap-
when World
was
T
a
$190
fewer
shelter
1952Lalmost double3what!. ™».**
dose of
it
reassuring to discover food<
than
his
enterprise?
thp
in-
Just
,
1
nor
terprise
venture.
investor risk
an
.
all corporations in this coun-
more
the
because
company-
industry dias better
He gets $50
,
try
work1
is
for
have to go_ into debt to meet
may
this
all Federal enar",ngS~muSt be met come wnat the
of
owned
another
that
Gains Tax
herent in over-burdening any en-.
feature
Gains
most
six
problem from
has
gets
Damaging to the Investor
..
gains
The present loss provisions of
ot equity securities
™bt financing6 bv'retained- earn-'!£0re dollars for h's lnvestment continued indefinitely, can result the tax_law are completely onefn« and bvdeDreclatfon charees ' h"
P£"?' B"iV ,u!?less -hls only in a lowering ot the services sided. Equitably, the tax deducConsequently, RRjh.fhs)'lare,s almost doubled in price, provided by the industry for the tion permitted as a result of a
it is neither sur--the dollars he
*-if
that
in venture enterprises.
Most
capital
tax revenues, while comtells us that a lower
sense
ownership. The rise in securities listed on the Exchange has hovprices in the past dozen years has erec| around 13%—a record low—
y
prising
can't
money^ to
re-
p billion, $500 million of that toS?i!
mon
^
understand. The unfortunate effect
of the tax is that too many people
refuse to put their
,
determining
creases
vestment and speculation and to
favorable tax
treatment than speculators. It is,
however, impossible to draw any
sharp line between lnveshnent and
speculation, Certa*"ly
® ^
give investors more
facilities
existing
M
capital
Why this tax is perpetuated in this
country—why we persist in treat¬
ing capital gains as a form of income—is
.
,
for
and
signed to distinguish between in-
'.
of
than $23 billion
mpre
was
and
income is rejected in vir-
as
world's
The
for
for new
year
eauipment
and
placement
-
tually every country in the world
—■Canada, for instance, one of the
.
new
annually,
billion
by corporations last
Iron
an
Curtain which divorces two of the
gains
for
ductively. The total capital spent
can
most
$8
to
has an
capital
economy
nation's labor force to work pro-
'
The
law
need
the
a
over
stock he sells, he must
other
.ea^h year's normal addition to the
$10,-
qqq
-
instance, just to provide the tools
and
equipment necessary to put
low
with
established
And
American
are
incomes
govern-
debt financing.
on
The
1950—the
figures
and
enterprises, to meet their capital
needs, are relying to an unhealthy
privileged
@f all individuals reporting
only
officials.
ment
bear in mind
Capital Gains Tax is not
tax which affects
economists
leaders,
he
same*
he
such
and the nation's investors.
the
ers—also at $50
its
best interests of our econo¬
ing the
lief
cause
for
r gove^t ^Ue 'Sard"my
revenues.
reduced
at
proceeds in the
ital
disturbing result of
this premium on inaction is not
the injustice done the individual.
Actually, the prime sufferer is the
national
economy.
The
acute
with
problem
b
to
this
approach
would
who
industry and freezes in those
who
of
$6,000
only
-his holdings and invests the entire
those
out
have
than six months because of
mpre
any
■
freezes
can
onjy
stock
pr0Spects.
like to become partners in
Commit¬
your
sell
to
short, the Capital Gains Tax
In
offset
to
may
another angle. An investor decides
his capital and
We
0ff
look
It. TnJ reduce his earning
w,in the
E-°
fgrowth poten¬
tial.
you
period.
year
Capital Gains Tax.
the
knows
a
cost
you
that
loss—and
York
New
wrjte
can
as
Exchange—is locked in in
the same way. He also hesitates or
declines to take a profit because
in-
•ountry's
<\
the
on
invests
such
—
Stock
this
on
who
securities
listed
more
from the tax.
revenue
seasoned
those
to ob-
Capital
investors
?.nd
carry-over
a
conservative
The
in
mar-
Gains Tax law
>o
with
Says lower tax rate would induce
years.
used
gains
There is, I know some opinion
the holding period was de-
that
have no capital effective tax rate would produce
gains, the less can be used to off- an even greater volume of taxes.
set only $1,000 of income the year
jn the years 1938-1941, for exthat the loss occurred, as well as
ample, the law called for a minithe same amount in each of the rnum
holding period of 18 months.
five
following
years.
In other jn that period, Federal tax collecwords, an investor who takes a tioris
from
capital
gains
were
$7,000 capital loss in a given year, small and in two of the years—
with no offsetting capital
gains, 1940 and 1941—capital losses actu¬
by one-half, and (3) increase the maximum capital loss
offset
be
can
But, if
years.
period from six to three months; (2) reduce the rate of the
tax
at
shares
your
that year or in the five following
(1) reduce holding
to:
as
so
loss
capital
any
capital from industrial growth, Mr. Funston
tax law be amended
proposes
Iron Curtain
an
sold
aren't
capital—and by his inaction,
the
government's
tax
reduces
too late.
and
securities
which, at his
basis
a
Paradoxical as it may seem, the
you
$19,000.- You have to sell Capital
Gains Tax law doesn't
them and the best price you can even promote the tax collector's
then get is $12,000. You take a $7,- best interests. Cold statistics show
000
loss.
What
happens
then? that a shorter holding period for
By G. KEITII FUNSTON*
Gains Tax law
on
little
too
profit.
President, New York Stock Exchange
Calling the Capital
loss
is
July 30, 1953
capital
losses
reported
taxable returns
of in-
dividuals, 68% were reported by
persons with. gross 'income under
$10,000.
Even
though the present law
^
selves because they regard it as rates should be reduced from six
they regard it as rates should be reduced from six
permits a five-year carry-over of
4nJ his ranlfal nwnS h.rf
It a capital investment turns too punishing. A lower rate months to three months.
•inrp it ^o ^ri
•'
if- out t0 be successful—and a profit would induce many such investors
A shortening of the holding pe- losses, an investor in many cases
iru+oi off i4 increasing his 1S realized — the government to take their profit and pay the riod from the present six months does not have capital gains in foliirnWi°
future. claims as its share-up co 92%, de- tax.
to three months would: improve lowing years against which to off8 power.
which he expects to
bv
earn
niTt
£"
"
rr
pending
However,
axation
siven
of
the
present
capital
gains
upon
the
investment
length of time
heavy
the
causes
tax bracket of the investor.
If
the capital asset is owned for not
the most venturesome inves-
is
held, and
the
Equally unrealistic is the provi-
sion
of
of
tax
•
to hesitate to make risk investjnents in new
or
the
subject
to
law
the
oniy
if
nfore
that
the
profit
a
capital
gain
asset
is
rate
sold
is
considerably the liquidity of
capital markets. More active
curities
the
markets
issuance
would
and
sale
our
se-
facilitate
of
new
than six months, the profit
held
taxed at the straight income tax
rates applicable to the particular
seller. If the investment is held
This
collector, although he insists
curred in less than six months, a small proportion of all securities
regardless of the fact that both business. They pay taxes on their
business judgment and common short-term trading gain at ordisense tell him to take his profit. If nary income tax rates.
Its effect
be is in a high income tax bracket, on the public, however, would be
™ore
for
than
six
months,
set unused losses." The present
allowable loss deduction of $1,000
a
year
was
ordinary income
1942.
Since
against
established' in
then the real value of such a sum
has deteriorated considerably.
promising. If he does
brought a natural and inevitable
By increasing to $5,000 a year
•£>ke the risk and the investment
result: Time has usurped the role
the
allowable
loss
deduction
proves successful, he is slow to for
,m9re tban six months the of judgment.
against
ordinary
income,
you
realize profits which must be di- profit is taxed at a rate running
An
investor
will
hesitate—or, would not change the tax status of would—at least for all except the
\>ided with the tax collector.
UP to 26%..,
refuse—to realize a capital gain on the securities
dealer, nor of the larger investor—remove much of
It is the
risk-taker, the ventureShould
the
investment
turn the growth that his capital has un- short-term trader whose transac- the present "heads you win; tails
nome investor, whom our tax
laws sour, that's another story. The tax
dergone if the improvement oc- tions represent, in any case, only I lose" pattern of the present law.
enterprises
:
natter
—
no
how
phould encourage, not
discourage,
instead, the present law acts to
:ock in
r.hus
A
statement
Ways
House
p.
than
of
and
his
capital
dynamic.
Mr.
Funston
Committee
Representatives,
C., July 28,
present
you
by
Means
1953.
upon
being a full partner in all gains,
drastically limits his participation
static in any losses.
To the saver, the
investor,
making
rather
<±»e
the venturesome
before
of
the
Washington,
,
law
looks
like
a
"heads
win, tails I lose" proposition
—the
government
taking
a
good
part of the profit from successful
ventures
but
providing
provlsi-on
of
the
law
has
equity securities—thus strengthening our present economy and assuring our continued prosperity
and growth.
A three-month holding period
permit
the
it is almost certain that he will not
to
sell until six months have elapsed,
freedom of
But
relief his
by
waiting,
he
repudiates
own best judgment, endangers
three
investor
action at
months which he
only at the end of six.
the
now
Tax
Would
Increase
Revenue
We
believe,
as
the first two of
I have said, that
our
reepmmenda-
of
tions—shortening the holding period and halving the rate of tax •
has
would actually increase Govern-
same
the end
Reduced
ment revenues—by reason of the
Volume 178
.The Commercial and Financial Chronicle
..
the
additional
Increasing
the
loss
Denies Taxing Dividends
Is Double Taxation
offset
initially
involve
some
loss—we estimate, on the
of the latest available fig¬
revenue
basis
ures,
a
maximum of $250 million
Even if this loss were not
a
year.
offset
completely
from
revenues
proposed
by
the
the
I
would be—that would be
price
to
that
to
entire
our
would
Chronicle:
The claim that taxation of divi-
,
from
result
adopting dends declared
by corporate con¬
a tax program designed to encour¬
cerns
is double taxation, as pre¬
age investment in American pro¬ sented in
your recent issue
and
ductive enterprise—and to make
containing the views of G. Keith
America a nation of share owners.
Funston, President of the New
York Stock
Corpus Christi Ref'g
arbitrary
in
Offered
Common Stock
City,
Brothers
offering
are
share
of
York
New
$1.50
at
per
issue of 820,000 shares
of
(par
cents)
10
Corpus Christi Refining Co.
The net proceeds from this fi¬
nancing
will be
corporate
general
used Tor
purposes.
Corpus
Refining
Christi
essentially
Co.
in the
engaged
opera¬
tion of
a
crude refining plant,
transportation system, and
oil
is
an
a
of petroleum
mental
products.
The
com¬
certainly
as
a
govern¬
proper
holder
declared
the
dividends, introduces
as
shareholder
of
those
has
legal
but
the
as
funds,
no
profits,
as
shareholder
a
right
has
receipent
corporate
to
legal
a
right
dividends, as declared by the
porate directorate.
No
i
how
matter
the
io
cor¬
than the
FT.
SAN
•
The
to
Financial
Frank J.
Work &
Kihm
is
now
in
There
option
is
cor¬
stock¬
share
of
at
Shady
19,
Aug.
Twin City
Field
and
ment
Oaks
taxed
at
Mountain
Rocky
frolic
as
a
Hotel
(Aug. 20) and Park Hill Country
Club
at
Albany
15,
bond
Country
will
Club.
precede
cocktail
A
Sept.
14.
not
from
National .Security Traders Asso¬
the
metal
of
Stock
basic
clean¬
would
metal
about
is
dividend
over
of
as
be
is
not
and
to
stockholder
per
a
on
fiscal
ing.
tion
Nov. 29-Dec. 4, 1953
any
Investment Bankers Association
of America Annual Convention at
Beach Hotel.
June 9-12, 1954
Investment
Canada
Dealers
share¬
substitute
double
common
and sound
sense
latter
being
me
different
in
cumulative
not
free
illogical
to
statement
pretends
do.
Sincerely
Association
Convention
Jasper Park Lodge.
at
shed.
This
tice
members of the House.
or
they join in the general chant that it probably doesn't
much and they
mean
Carlisle Bargeron
having been accomplished by a Re-"
President, however, you hear no
publican
must
have added the hue and
that the armis¬
cry
by no means be turned into a deal to let Red
China
into the United Nations.
types
dividends
of
the
or
same,
tax on fiscal
nothing,
were
as
of
the accumula¬
without paying
dividends
earnings do
The
Financial
Grimm
with
Funston's theory
is
would
escaping it.
no
that
1
to
my
if
&
Co.,
from
the
would
be
65
East
But
people
as
Co., 135 South La Salle
Mrs. Marcum was previ¬
is
&
Co.,
or
man
I
South
111.
Salle
La
—
Taylor
Bernard
&
Co.,
am
man
a
determined
what it
The
F.
105
Street.
Financial
III
-liams
joined
Midwest Stock
of the conviction that while there may be some
flare-ups in the months to come, the armistice
of that conviction because
Investors
man
when
he
puts
that he
Open
Inc.,
offices
at
has
52
Broadway, New York City, to en¬
gage
in
of
the
a
securities
E. Brinn is a
firm.
a
boisterous
He is
a
mind to something.
his
quietly
He has
that the Russians
has put his mind to this and
which
in
situation
in itself, go a long
we
find
less insoluble the problems are.
after the Korean problem
up
world affairs,
in
If this froth is removed it would be amazing
part demagoguery.
how much clearer and
mind come
ourselves
froth composed of one part bombast and one-
The Presi
•
in this light and he has to
with something thc)t we would have never had
Very likely his ignorance ox
politics was a help,, to him and it will
dealings with the Russians in the
great global spree based
business.
principal
be
a
help to him in his
future. In short, I believe that;
upon
a
synthetic
manufactured
or
nearing an end. Eisenhower
As a matter of fact, neither
military might of Russia is
entertained
never
was
such fears.
high brass of the military but, because
the
brass, they have gone
the high
is
although
there
will
may
be
armisth'O
some
intend to stand for any foolishness, that
if
shooting breaks out again there will be plenty of it and
i'.
best, that he does not
the
have done so.
for thinking the Korean
rough going at times,
information from those who know Eisenhower's thinking
last,
the
of
along in the expressions of feat*.
They would have been foolish not to
will
fear of Russia
the day and because it served the purpose
the politics of
Exchange.
with
determination
a
He is not
him, know the kind of man he is, will,
is to no small extent
does
the staff of
Consultants,
formed
there is
stick.
given to shooting off his mouth.
One of the strongest reasons
been
the
being offensive or treading upon the doubtjj
has
Chronicle)
&
Long
back to the
toward taking this nonsense out.
our
Company, 257
Short Street, members of the
Russell,
West
has
not likely
are
Personally, I think if;
had under Truman or the Democrats.
With Russell Long
to
'
destined to do unless
seems
fear of the
(Special
see
lfiind to cutting out the nonsense in our global affairs. ~
fact
The
my
Taylor Staff
The Financial Chronicle)
with
-frA
districts which
Eisenhower's part to make it
Mr.
Burr, Inc.
CHICAGO,
don't
majority of only
a
whole.
a
For one, I am
dent went
Shea
that is
it without
do
the
know
&
Stearns
They have
Republicans make out a better case than they have been making.
111. —Mrs. Saralyn
joined the staff of
Bear,
I
circumstances
the
is^ 3
the Republicans
next week
thing to have the House swing
terrible
a
Democrats.
has
with
held
Republican members next year.
will stick.
Staff
to
were
and under
House
the Eisenhower record.
The betting in Washington today
and North Carolina
Virginia
return
to
way
B. Marcum
to
armistice has been achieved, and full
#
(Special to The Financial Chronicle)
CHICAGO,
(Special
patience
happen in the
may
eight vacancies and, of this majority, four members come;
put his
Bache Adds
elections
the
lose
with
10
The
ously
considerable
the President and to the Republicans.
how the result could be otherwise.
on
Chronicle)
Robinson Avenue.
Street.
an
to
took
Regardless of what
Senators have got to run next year on
There
•
ORLANDO, Fla.—Lee L. Timby
Lawrence
position.
Following Mr.
To
Every Republican member of the House and several Republi¬
can
could
With Grimm & Co.
is
And at
Korea.
for this belongs
credit
backsliding and
to
in
made
future, the fact is that
Maine,
July 25, 1953.
receive Investors Consultants
permit a common dividend,
or the corporation
is withholding
dividends
to
increase
corporate
cash
sadly lacking in the
small accomplishment at all that' Mr. Eisen¬
any
and determination to do it.
or
and
are
feeling of party unity or of team spirit.
any
has
hower
Biddeford,
common
declared,
criticizing them for viewing the situation realisti¬
simply pointing out that they
am
have
to
LEXINGTON, Ky.—Roger Wil-
to
I
mind, it is not
of
Fortune's Rocks,
preferred and
continue
no
not
not
am
They should be making all sorts of capital out of Korea and they
yours,
(Signed) RICHARD SPITZ
shareholders.
would
er
very
responsibility
enterprise theory, or
we would
not be eroding the free
enterprise system as sloganizing
the
Joins
not
(Canada)
Annual
individual
we
the
have
may
accumulated
payment. The common sharehold¬
(Hollywood, Fla.)
the Hollywood
if
for
the years.
preferred holder, in time
stress, could look forward to
of
least
at
for at least
having sincerely tried to bririg the war to an
end, and lor, if nothing else, having accom¬
plished at least a temporary stop to the blood¬
divi¬
more
logical
The
Exchange
Firms Board of Governors Meet¬
of
better and
a
basis of benefit and
to
t
Association
relations
corporate
I ^daresay
most
to
stocks, viz., junior and senior calls
for dividend payments, as in the
.
of
beneficial
and Coffin &
(Louisville, Ky.)
for
opposed to his saying
as
and
logic,
well in
so
public
managers
talk
and
presently
earnings"
"double taxation
holders,
earn¬
one
is
of
not sound
may
is
that
pungent public flavor)
quite some benefits. to
a
a
holding
Wakonda
not
dissatisfac¬
are
there
dends" that has
after it
vacuum
a
payments,
case
13-16
there
subject to taxation as be¬
a
common
Oct.
and
approach
presently
velop more inequity between the
corporate shareholders, but
Iowa Investment Bankers Asso¬
v
dividends
Funston's
and
same
Sept. 17, 1953 (Des Moines, Iowa)
President
their
for
accomplished this much,
having
about
do
for
the
to
taxation
(which
Mr.
Besides, the very inequity of
Mr. Funston's proposal could de¬
ciation 20th Annual Convention.
Club,
and
same
"double
Bache
and
Sept. 16-19, 1953 (Sun Valley, Ida.)
ciation Field Day at the
ings
the
double taxation of earnings,
a
dend
party
earnings
inference
share
basis, clearly indicates presently,
party at the Omaha
and
—
recipient shareholder.
the
participant
does not receive, as a comparison
of earning statements and
divi¬
Bankers
egg
earnings
"double"
dividend
the
Thus,
dividend declared to
shareholder, corporate earnings
which
Association of Omaha and Lincoln
annual
case
and
-
taken
considered
and
calling
which
Investment
Nebraska
metal
still
as
ing
(Omaha, Neb.)
1953
a
is the logic of
the basic
call
and not
(Aug. 21).
Sept.
are
(which is what must
shapened into
er
the
dividends
nothing
(Special
untenable
Group-
the
or
as
profit
To
Bond Club of Denver annual sum¬
mer
same
people
same
convenience
raw
a
is
before
the
dictate
taxable.
(Denver, Colo.)
Aug. 20-21, 1953
the
may
shapened by the purchaser into a
vacuum cleaner which is also sold
at .North
Day
that
declare
the
one
probably would develop a corpo¬
rate
profit;
the
aluminum
ip
Tourna¬
know
we
is
in the case of alumi¬
and the sale of the same very
num,
Club.
Country
IBA
Golf
chicken
dividends,, and
and
share
individual
Therefore, how
ground,
Security Traders As¬
Annual
sociation
be
there
or
the logic of factual deduction.
(St. Paul, Minn.)
1953
the
first,
was
such in the
;f
as
of double taxation)
Marengo, 111.
admiration
Instead
taxed
are
be maintained to make out
Farm,
doubtedly have been moved by the same cau¬
tion and doubt but they would nevertheless
have coupled this with expressions of great
praises of him from Republican Senators
the
of
responsibility
taxed
the
of
corporate
Lane
coun¬
the
junior
or
earnings
are
and
twice
La Salle Street Women Summer
The
would un¬
whether
is with¬
wisdom
directors
and
The
Luncheon
and
corporate
hands
(Chicago, III.)
1, 1953
it*.
try's attitude being what it is they
of
thing
Aug.
gotten some glorifi¬
cation of their President out of
tion
shareholder's
holder.
Field
the Democrats would have
right of stockholdership, not
claim
Investment
under
propaganda ability of the Democrats; not only that, but they seem r
dividends
EVENTS
of
bet your boots that had this
a Democratic President
can
come
sometimes
individual
dividend
Presently,
COMING
taxation
But you
armistice
dends"
as
Mr. Funston,
also illogically records, for unlike as to
senior stock agreements as to how
and what shall be paid.
E.
double
no
large.
and
the
as
is
pretty much the attitude of the country
received
the
The
corporate
Co., 100 Bush Street.
In
not,
dividends
of
payment
do
earnings by the taxation of divi¬
dends, or "double taxation of divi¬
must
from the
moneys
to
for the declared dividend
Calif.—
with H.
the
Corporation
because
utterances of caution and doubt as might well be
are
that is
I
the
Chronicle)
FRANCISCO,
the
in
difference,
the
into
insight
cally.
a
Joins H. E. Work Co.
(Special
be
better
no
common
as
.with McCoy & Willard of Boston.
•;
shareholder who
shareholders, that "earn¬
of
than
they
at
is
or
shareholders, but the directorate
does, sometimes to the satisfaction
of
holder.
LAUDERDALE,
Fla.—
L. Trudeau is connected
Henry
is.
resumed, usually;
in the corporate fiscal re¬
port to
ings
earnings.
There is no
relationship
between
corporate
earnings and a declared dividend,
Chronicle)
Financial
dividends
bit different position
a
common
will
stated
corporate
The
his
gets glossy and optimistic reports
as to when the common share div-'
dividends
originate, there is the earmarking
of corporate funds and the actual
as
to
getting
certainly in
other corporate funds and
or
transfer
(Special
taxation, is
the senior share-"
as
there
character, between the Republicans and the Democrats
their utterances on the Korean armistice.
From both sides
make-up
is double
indeed, trite,
justify
ings
poration
With McCoy & Willard
of both
tion
idends
profit
cannot be
action.
of the
tion.
and
earnings and cor¬
porate dividends are one, or part¬
ly one, of the same earnings of
the corporation and hence, taxa¬
The payment out of those earn- *
at this time."
pany has
acquired all of the stock
Corpus Christi Exploration
Co., for the purpose of exploring
and developing its
own
produc¬
view
earnings
questioned
sales
organization, to purchase,
process, manufacture and dispose
in
to be
untenable
seems
fact.
of
stock
an
common
Exchange,
The taxation of corporate
or
Vickers
Perhaps
Editor, Commercial and Financial that corporate
economy
of the News
By CARLISLE BARGERON
shareholder's share in corporate earnings.
for the tremendous
pay
benefits
Washington
Ahead
it'
modest
a
From
Spitz, member of New Jersey and Maine Bars, holds
dividends are received as a right of stockholdership, not as the
changes
think
w
Richard
in
gain
other
although
—
EDITOR:
THE
>
allowance to $5,000 a year would,
however*
TO
LETTER
capital transac¬
tions such changes would encour¬
age.
13
(357)
/
taxes that would be collected
new
on
Number 5242
be
effective.
this—and
nonsense
as
for
The Russians and Chinese
undoubtedly know
Syngman Rhee, it has been made
is to be tolerated from
him.
plain that no
\
The Commercial and Financial Chronicle
Can We Get America to
Better?
Commerce
occur,
will occur on a wide
affecting tens of thousands
and
producing
enterprises
thousands of products.
of
is
biles
well
a
as
a
be
can
seen
chemically
that required far less
to
way
material
man-hours
natural
The
known.
development of nylon
produce
to
than
produce
its
faces
need not be uased on war or
even defense production programs,"
or on
paternalistic gov¬
ernment spending," Commerce Department executive points
out objective can be attained by increase in both output and
consumption with less human effort. Cites recent improve¬
ment in character and efficiency of production equipment and
lists
and sale
tion and
be made to
President
of
world
the
for both
prospects
and
economy
a
econ¬
of
fears
the
a
free from
omy
And,
war.
sumption.
as
Humphrey has
more
in
from
would
On the
peace.
contrary,
we
expect
that American
business,
W. Walter Williams
will
the
advance
of the American
people provided they are free, to
pursue the paths of peace without
paternalistic government direction
and mounting government debt.
goals
long-run
and most
valuable capital asset is the people
themselves, free to spend or not
to spend, to invest,' and to work as
they choose; The growth in popu¬
lation, the increase in productiv¬
ity, and the associated increase in
Our greatest resource
the
production of goods and serv¬
offer
ices,
raise
all
the
challenge to the ingenuity
business to provide
new
of
great opportunities to
standards of living for
people. The future offers
our
American
an
an
of
volume
increased
and
increased velocity
actions
to
of
output
of trans¬
of the
the needs
serve
American people and to
luxuries
make the
the necessities
today
of tomorrow.
The
past
of
years
and
60
have
years
despite
been
growth
economic
accompanying
an
in
growth
Throughout
power.
slumps—continued
real
growth
accom¬
(1) Every effort must be made
to
develop an investment con¬
sciousness for the great mass of
the
people. Here
—
pros¬
job is being done by advertising.
This is often educational advertis¬
this
Administration
that an
ing
fiscal
in the total
of one-third
increase
capita consumption
per
of goods
American
the
for
services
and
people would require an increase
of somewhere in the neighborhood
of
the
century
past
two,
or
in¬
an
of this magnitude over the
crease
two
occa¬
next decade would have been
be¬
magnitude
incredible.
in
The
are
average
productivity
not at all
increase
the last few
over
decades has been between 2lk and
3%
year.
per
The vast increases in energy
from
electricity, coal, oil, and gas
continue to be applied to
must
the economic system
we
and
equipment since the last war
most intensively since Korea.
We
have
seen
an
ment. We have
and
enormous
by world
quality
many
of
into
velopment
this
government
achieved
with
a
This
saddling
ourselves
faces
our
prosperity
up
ever
need
not
to
in¬
be
op war or even defense pro¬
duction
programs.
further
perity
does
and
We face
challenge that
not
paternalistic
ing,
that
was
debt burden.
Administration
based
conflict
on
spending,
heavy
challenge
creasing
the
by
very
But
system.
prosperity, based
and
the
economic
depend
government
that,
given
the
up
to
pros¬
stream
of
application of power is
hour
in
of
the
work
hour.
Some
know
when,
it
will
atom
companied
have witnessed
new
in
the
de¬
metals
in
electric power,
natural gas and
We need
continue.
energy
coal.
business
to the
many
answer.
Right
now,
of the changes in
complish this increase
enterprisers
than
\
*An
before
the
can
of
do this job better
drafting
minds
government
can.
address
by Secretary Williams
Association
of
Advertising
Agencies, White Sulphur Springs, W. Va.
the
must
the
be
con¬
growth of
and
our
and efficiency in these
developments are far from ex¬
of
out
are
production methods which will
millions
ways
of the
ability
we
rate
who
is
are
boards, or are
our
scientists,
on
in
our
with
his
television
we
automobile,
his
appliances.
labor-saving
vitally essential
nomic
and
familiarity
on
set, bathtub, and a host
of the
part
A
eco¬
ele¬
ment:
that
as
productivity in¬
creases,
we
do not merely use
more
of
the
old
products,
we
invent
To
been this
system has
new
ones.
potentialities for
metals
ample
to
This
is
are
good
a
ex¬
initiative
private
of
at
simplify and lower costs
electronics
modern
of
new
many
examples:
Germanium
(1)
indi¬
beyond,
and/or minerals. Here
two
but
and
1953
grayish
metal,
reminiscent
crystal
set,
is
devices.
semi-conductor
of
the
replacing
old
vacuum
of
development
in
the
products
new
is
difficult. It would have been pre¬
carious
to
with certainty
predict
in 1933 that television would have
been
great and growing industry
from 1946 to 1953. It would have
hard
to
role
eventual
in
grasp
of
the
1910
automobile
the
and the motor truck in the Ameri¬
system of life.
certain
to
now
We
point
can
end
consumer
products which will surely repre¬
strong-growth industries:
sent
ways
to
parts
that
to
means.
able to do
can
find
would
greater
a
require a
number of
produce
by
any
Every time that we
this, every time that
machine that
can
be
made with considerably less manhours
of
which
it
creased
work
than
replaces,
we
the output
per
the
work
have
in¬
man-hour
of the economy.
ac¬
(5) There must be continued
the development of new and more
materials
which
either
the durable
Kyanite,
and
We may expect to find con¬
expansion in the area of
(1)
tinued
television.
one-half
At
the
moment, about
of the nation
has
access
to television stations. Construction
There
erable
is
imported
an
refractory
ma¬
linings
of
non-
glass, and
furnace groups for many
Research
and
experiment
years.
ferrous
metals,
that
proven
called
steel
have
synthetic material
a
mullite, produced from do¬
mestic
materials,
be
can
is
superior
to
for
room
expansion
consid¬
produced at lower cost.
United
itiative
States
sion
technological in¬
licking the shortage of
is
diamond
ground
of
nesses
Hard
bort.
parts
a
been
can
(2)
terial, has been used for fire brick
kyanite, in most applications, and
ahead
lies
what
see
metal
preci¬
fine
thick¬
to
thousandths
of
inch
an
normally ground with grinding
wheels impregnated with diamond
are
dust
particles.
United
States in¬
dustrial
ingenuity has already be¬
gun to meet the challenge of in¬
adequate
diamond
supply.
A
small business in Chicago has de¬
veloped a new type wheel that
80%
uses
diamonds
fewer
and
with only
slight changes in exist¬
ing machines makes this improved
wheel
last
even
electrolytic
an
costs and
Several
longer by using
that cuts
method
diamonds
saves
welL
as
using
processes
dia¬
no
monds at all have been introduced
for
grinding
hard
metals.
This,
which have
recently been developed serve to
and
other
processes
of contribute to national
security and
reduce dependence on foreign dia¬
as
the kitchen monds
and, in the process, have
scarcely
been created a whole new area of mar¬
in
the
area
electric appliances. The market for
such
appliances
has
dishwasher
touched.
The
machine
is
automatic
replacing
washing
the
ket
demand.
ket demand.
{
.
non-
automatic type, and there is room
here also for an expansion in mar¬
The food-waste
dis¬
poser, a kitchen item, has great
potentiality. Several communities
have eliminated garbage disposal
service, and every home in these
communities
is
equipped
with
food-waste
disposer
units.
The
potentiality of this industry is
In
the next decade, we can ex¬
pect
continuing additions to the
of products available to the
fund
is
Research
this
make
at
a
manufacturer.
high
ductivity
to
and
should
the
encourage
and manufacturer to in¬
in
expenditures
crease
level
Rising pro¬
lowered costs of
possible.
production
consumer
the
and
consumer
This
areas.
tremendous.
all
snowballing
nature
,
many
demonstrates
of
the
techno¬
logical developments.
Finally, it is in connection witht
these
new
profession
products that your own
has a most important
I have heard stories of
role.
men
the street corners
(4) We may expect a consid¬ passing out $20 bills and having
erable play in the next few years no takers because the public be¬
for
motions of human hands
Anyone
ness
community and
find
energy
automaticity to
production itself. We have learned
to make machines to replace the
productivity
tunity, and the climate, the busi¬
,
tinued
man-hours
enterprise in this country has no
as
how
of
power
petroleum, fantastically
ingenuity and
changing
sufficient effi¬
(3) Continued improvement in
ciency that millions of the man- refrigerators, both as to size, perT
hours
now
being
used
in the formance, and utility provides an
mining of coal, the drilling for opportunity
for
a
considerable
oil, and the construction of hydro¬ short-term expansion in this in¬
electric dams
would
be
greatly dustry. The freezer has a potential
a
only ask whether our other
higher
present
today,
will
We
from the
this
of
source
a
vast
familiar with the vital process of
doubt
the
have
will
we
and hausted. We have found
the
enter
available
in
creases
sources:
can
basic ma¬
steel, and
man-
run
huge
chemical
petroleum
and services. All facilities
with
only
a
relative
necessarily been ac¬ handful of people. We have in¬
by proportionate in¬ vented giant presses which stamp
has
inventive
spend¬
of
which
and
the
and we do not
but I am sure that
occur,
derive
increase
an
of
day,
itself.
power
to
brings
productivity
of goods
this
upon
oppor¬
copper,
we
growth
enormous
chemicals
output
most
as
aluminum. And
billions of dollars of public funds
tremendous
a
the
our
terials, such
an
the
seen
in
acceleration
put
of production
process of
This
distribution.
and
revolution
have seen an
improvement and enlargement in
the scale and diversity of plant
and
to
dependence
(2)
imagination
and
beyond
proceeding every year, and every
credibility. But the recent his¬
increase in the number of horse¬
tory of the American economy
power
applied with each manhas shown that increases of this
yond
erder of
change
including
policies,
deficit spending.
continued
economic
government
develop¬
are
(3)
outside of
the whole history
goods, for we
what we make in
new
a of new television stations, even¬
rational tax program, which will
tual introduction of color televi¬
permit America to continue to sion on a broad
scale, will provide
grow and reach higher standards a continuous and
growing market
of living without the support of
for this product.
in our output.
50%
In
great
of
During part of this time,
the
too,
growing good
a
elements
these
all
If
put together, we find
are
triggered
were
conflict.
On
income.
periods
sions,
prongs
formation:
capital
perity has been manifested in the healthy expansion of the machine
people's capacity to buy more and tool industry with continual in¬
novation in the character and ef¬
more goods and services, through
diminished.
their capacity to earn more and ficiency of our productive equip¬
(4) There
more
these three
of
first
historical trends show that
(2) There must be incentives to
an increase in standards of living
corporations to induce disposal of
is invariably accompanied by an old plant and investment in new
increase
in
the portion of our plant equipment, processes, ideas,
total
income which is used for concepts, and economic responsi¬
services, such as education and bilities. The Treasury officials of
recreation.
must
for
cates
work
consider the problem
us
making
of
by
Furthermore,
great
economic
Consciousness
ment
The
over,
agriculture,
and labor,
be
Now let
of
ican
Widespread Invest¬
increase
in shorter
work hours, in longer time spent ing at its best. It must be con¬
until
virtually
all
the
in
education, and in leisure to tinued
enjoy the goods and services that people with savings get the habit
of being a capitalist.
we can effectively demand. More¬
panied
and
can
should
profit.
production
undoubtedly
basis possible.
addition
Must Develop
one-third in¬
American
and
1900
Between
use.
private in¬ make. You all know that we tubes in
many electronics devices.
comes,
both corporate, and per¬ would find the daily course of Its
proven value is such that there
sonal, which permit investment, living two centuries ago barely has been
organized a vast search
production and distribution at a recognizable to the modern Amer¬
plan for sources of this material.
be
crease
making and distribution of goods
and services on the most optimum
(3) We must provide
the long run, more
In
can
nothing
fear
to
people.
can
less human effort. A
we
growing system of plant and
our
consumed only if
goods can be produced with
goods
have
the goods and
the American of challenge relates to the im¬
people over the next decade in¬ portant factor of capital formation.
crease
by one-third their stand¬ Here seem to me to be some of
ards of living? It is obvious that the ways in which the business
this can be done only by a great community must meet and solve
problems
of
developing
increase in our output and con¬ these
how
Now,
Secretary
shown,
^
Done?
Be
It
Can
How
his
in
charted
has
speech,
American
the
services v/hich
represent our optimum produc¬
tion and distribution potential of
develop investment consciousness of masses.
Eisenhower,
must
(2) We must make and we
sell
(1) accel¬
production
of goods and services to optimum point, and (3)
of private incomes which permit investment, produc¬
distribution at a profit. Holds every effort should
provision
vision
formation.
three-pronged challenge that must be met:
in rate of private capital formation; (2)
as
eration
recent
the
increasing prosperity
ever
our
active
look
accelerate pronged challenge reminds us of
present rate of private capital the big job we have to do in the
(1) We mbst slightly
challenge that
extent
some
Metals
sum,
met:
to the
up
this is demonstrated
by a Glossary of
published
by "Fortune"
magazine in January 1953. Prior
to 1900, some 16 basic metals were
to
in
competitor, silk.
The second prong of this three-
Asserting "this Administration
metals alone,
is the three- Putting Production and Distribu¬ 1953, 30 additional metals were
brought into regular use. The out¬
pronged challenge that must be
tion on Optimum
in
Here,
WALTER WILLIAMS *
Under Secretary of
will
for this difficulty
reason
is that they
front
Live One-Third
By HON. W.
the
and
changes
these
where
a
Thursday, July 30, 1953
...
(358)
14
expansion
on
home
air
market
for
scarcely
been
standing
well.
as
conditioners.
this
product
tapped,
window type and
both
The
has
the
the system type
which
lieved
on
that
volved.
some
The
same
trick
was
in¬
thing is true of
The American peo¬
these new things but
they also want to be shown.
The
new
products.
ple
want
is made a part of the fur¬
invention of television would have
circulating cold air through¬
out the home. The cost, can prob¬ little meaning to our industrial
ably
be
reduced
as
demand economy if a perfect set remained
nace,
in the inventor's workshop or if
increases, and improvements in
design take place. The market for the completed sets remained pack¬
aged in the manufacturer's plant.
this item is scarcely touched.
It is vital to the process that the
(5) Aluminum as a substitute
wood
in furniture, in baby
carriages, etc., is in its infancy and
will probably increase in use over
the next few years. Aluminum in
such items as storm windows, gut¬
for
profession
advertising
function
the
all the
of
us
who
new
can
will
of
serve
educator
so
in.
that
things which lie ahead
be
uncovered
want
them.
to
those
Aggressive
advertising and selling campaigns
will contribute both to increasing
considerably over the short-term. consumer and business expendi¬
The
non-corrosive
qualities
of tures for new products and for
aluminum plus its lightness, make maintaining well established in¬
it appealing to the consumer in dustries at high levels.
The important contribution to
many areas.
be made
by distribution to our
Continued technological devel¬
opment
work
increase pay-off, growing economy, of course, ex¬
tends
beyond the field of new
in value added to our national
ters
the
and
etc., is on
should increase
downspouts,
upturn
and
less
or
are cost
to
produce
than the
being translated into the machines materials they replace, or increase
and factories which will turn out efficiency
by avoiding unneces¬
We must overhaul our*
the product. It is not easy to put sary waste. 'The great improve¬ security and to our expanding in¬ products.
Continued on page 23
ment in rubber tires for automo¬ dustrial
plant. In the field of ;
your finger
on
the exact spots
Volume 178
Number 5242
The Commercial and Financial Chronicle
...
(359)
by the fund on the day of liqui¬
eral
dation.
Mutual Funds—America's
realize this tax
Usually there is
mission
fee
or
no
charged
com¬
must
the
for
of
privilege of liquidation.
Fastest
Growing Business
Richard J. Buck
Co-Manager,
liquidating value lis usually
determined
by taking the total
value
market
assets and
Caracas, Venezuela
Co.,
&
the
of
ber of fund shares
Mr. Potts, in pointing out the
mutual funds is
rapidly expanding operations of
creating thousands of new investors each year,
describes origin
and development along with the functions of
these investment institutions.
investment funds
i
Out
and
of
the
economic
1199402876530
social
of
upheaval
encom-
passing the roaring '20's and the
more quiescent '30's has emerged
'
vital
and
dynamic
'new
financial
in-
a
invest-
Quitely
and
this
new
end
mo-
mentum
at
an
a
tremendous
and today
pace
ranks
fastest
collected
the
from
in-
share-
$200
growth
has
consistent
shown
as
creating
thou-
of
be able to realize
profits from the
of
103
leading
sale
of securities
and such
the
are
on
distributed
funds:
882,191
1,311,108
1,409,165
1,505,762
1,973,547
2,530,563
3,129,629
672,543
722,118
842,198
938,651
1,110,432
*4,000,000
•
497,875
580,221
*1,500,000.
1,284,185
these
were
years
For example,
1947, the total volume of transon
the New York Stock
declined
almost
one-
Yet in the same
194-3.
assets
mutual funds
of
almost
million,
$100
while the number of shareholders
100,000.
well, therefore, to consider
increased by about
It is
what
is
significant
„
into
which thousands of investors have
cash
in
their
together
order
The
advantages that are available only
to
large
of
possessors
sums
investors
alike
have
professional investment management and continuous
the benefit of
supervision
small
at
,
ment
a
investment
vestor has
the
jn
fund
must
Internal
Revenue
mutual
investment
example, the
,
,
The
all,
the
provides
very
business
sole
of
fund, therefore, the number
oustanding shares is constantly
changing i-
as
in
shares
and
as
liquidated.
of
all,
new
money
are
investment
tions and
redeemed
or
the closed-end
company
business
whose func¬
simi¬
lar but whose outstanding securi¬
ties available for purchase by in¬
are
are
fixed
at
very
certain
a
number of shares—like in any
dustrial
or
business
or
investment
end
in¬
corporation.
sales of closed-
company
GROWING
FASTEST
income and safety.
comes
This is the chief point
difference with
Thus, purchases
Fed¬
company followed the ex¬
ample of the British predecessors
and placed primary emphasis on.
invest¬
i
<
In the
roaring '20's, particularly
after 1926, a flood of investment
companies appeared on the Amer¬
ican
Some
scene.
panies
type,
of
the
were
wherein
selected
which
not
the
duration
trusts
a
the
formed
were
medium
of
be
of
com¬
trust"
investment
the
management
could
these
"fixed
a
portfolio
changed
trust.
for
Other
primarily
speculation.
as
Many
banking firms formed trusts which
Continued
shares
INVESTMENT
on
page
25
MEDIUM
HOW MUTUAL FUNDS
HAVE GROWN
wealthy
such
january. 1,
1942
.
IN A DECADE
january 1, 1952
as
$2,530
Shareholders
In
total
In
Ihcutandt
net
assets
Millioni of Dollari
are
of
an
open-
fund
(or
company) is to invest
its shareholders in
of
of
American
cor-
To justify its existence,
investment
mutua}
better job
fund
must
of managing
curities than the investors
can
se-
do
themselves,
Unique Redemption Feature
Mutual
stock
investment fund
a
is
redemption
unique
in
investing.
the
A
shares
feature
field
of
shareholder
may withdraw at any time from a
mutual fund by simply present¬
ing his shares to the fund or
.
,
tio.n-
ceives
profit
The shareholder then re-
the prevailing liquidating
which may , show a tidy
loss on the investment,
or a
.
Delta
substantially
ment
open-end mutual
companies,
investment
securities
is about one-
...
appearance. These early examples
of the modern American invest¬
$3,129
the in-
as
securities which
funds
for
investment companies made their
ment
an
which
funds
AMERICA'S
shares, an inproportionate interest
the
a
beginning of the 20th Century,
investment
company
idea
started slowly here. In the period
the of 1890-1920
only a few American
the
by the fund,
investment
d0
or
fund
a
mutual
enci
vajue?
management
of
In
vestors
for
special tax treatment of open-end
certificate of mutual
many
owned
annual charge for invest-
-Dehasi?'teo1
a
Due to
the
factors.
'
in
United
of
market, where
directly affected by
is
the
proportionately custodian of the fund for redemp-
For
charge.
s
average
pay
Status
specifically
industries in
fashion
institutions
one
price
cf
capital
invest-
insurance
or
Thus, in
of
mutual
a
on
"over-the-counter"
invested
Much
Scottish
the
funds
many
of
large
0f
banks
which
their dollars, large
By pooling
small
that
spread over many
same
vestments
or
of
are
and
the
much
of provide
money.
and
such
Federal
Code
1
or
one
and
surplus
investment
gain
to
securities
a
terms,
pool
a
are
combined
The
porations.
JO
simplest
in
funds
brought
is
to almost any newspaper,
the
funds?
Mutual Fund.
a
Expressed
do
media
does the fu-
ture hold for mutual
What Is
offer
funds
What
possess?
mutual
not
capital
gains dividends since the retention
of security profits makes a good
backlog and acts as a cushion for
share prices in declining markets.
However, the Federal Income Tax
Tax
half of one 'percent.
Thus, the
management fee for one year on
$2,000 of net assets would be $10
—less than a year's subscription
What
development.
mutual
do
other -investment
that
not
this
behind
financial
features
probably
funds
mutual
permits such funds to be relieved
actions
increased
of
out capital gains in order to
avoid payment of income taxes.
***
exchanges
on
the
British
of
invested
a scarcity of enterprise
capital in the United States until
supply, demand and other market
pay
'
shareholders
the
.majority
Law
*W!
mdht fund
year
The
.would
341,435
421,675
653,653
national
issue
ac¬
Early American Pattern
*
'
293,251
312,609
,
486,850
—
\
,
individual
able to
were
hnudreds of millions
American
may
an
the
once a year, near the fiscal
year-end of the particular fund.
296,056
$447,959
401,611
profits
shareholders
to
usually
,
Number of
—_
practically
invest¬
Mortgage Company, and Scottish.Mortgage Company.
the
i
which
In
.
Shareholders
_u___
and
the number of mutual fund shares
Profits
medium,
farm mortgages!,
States, and therer
are companies in existence
today
whose
names
give evidence oJ
this, such as the Scottish Investors
outstanding.
no
limit to
periods of generally risingsecurity prices, mutual funds may
(Thousands)
——•
fund
Invest-
Mutual Funds
Open-end
is
the
shares
of
Association
Companies
ment
of
of
pro¬
share¬
each
this
world.
in
be purchased at this
public offering—a sharp contrast
to the purchase of a large block
by
open-end
There
companies
was
direct relation to the value of the
assets
to
later British
were
this
the public
portfolio.
security
Security
the following tabubased on a report of the
lation,
as
cost
Through
and
ob¬
be
low
throughout
of
be
can
amount
by the
in
received
income.
the past 12 years,
over
its
open-end mutual investment
has ever missed making a
regular distribution of investment
and
vigorous
been
tain market trends.
third from
varying
income
shares
offering price which is generally
determined once or twice daily.
The offering .price is always in
number
Total Net Assets
of
Exchanged
purchased is known
net
by declining volume of
securities business and by uncermarked
although
holder.
Scottish
ment
could
pounds 1 which
funds
be
companies
relatively
a
portionate
management
which
at
investment
fund
particularly significant that
open-end mutual fund assets have
shown a steady growth over this
period in view of the fact that
certain
accounting. And the in¬
be expected to be regu¬
at
cumulate
price
mutual
may
with
^Estimated.
It is
lar,
The
bookkeeping
No
1949—
*
come
these
Unlimited Supply
thus
Scottish
managers
tained
quar¬
—
first
may
formed.
money
responsibility
investment
these
figures
include
considerable duplication.
This
;1942
.
tax
and
a
although
National
Growth
year
the
company
The canny Scots readily saw the
advantages of pooling their sav¬
ings to total a sufficiently large
amount
so
that
experienced
of the fund.
holders of open-end mutual funds
expanding investis
fund
for
are
many
The
•
other
no
over
new.
William I organized the
Societe Generale de Belgique. The
cus¬
perform
not
King
were
However,
have
is
idea did not gain wide acceptance
until 1880 to 1890, when several
company to act
the cash and
and
deter¬
demand,
Development
spreading the risk
important
These
and
traced to Belgium in 1822 where
of
duties.
custodians
However,
shareholders
burdensome
share-
of
similar
at the 1952 year-end was 1,500,000
in dividends.
rapidly
number
to
busi¬
usually maintain
trust
and
investment
of
todians often register shares, make
disbursements
of
dividends
to
in-
than
more
able
of
estimated
securities.
many
.their
securities of the fund.
saving the shareholders consider¬
over 790%
from the
S447 million at the 1940 year-end.
The
funds
or
vir-
this
fund
mutual
and
to
of
securities
divest themselves
to
as
price
a
supply
The basic idea of pooling money
in order to secure the
advantages
Ac¬
managements
conduct
custodian
a
1940,
In
were
Today,
figure
earlier
year
of
is dis¬
shareholders
usually made by the
terly— four times a
million from
$870
as
fund
growing
America.
the
growth
one
as
0f
of
increase
rata
pro
distributions
in
gained
has
three-quarters
bank
a
separate items of income from
its
open-
funds
manage¬
expenses
about
so
Mutual
The fund may receive hundreds
this country.
Year-End
in
100
are over
investment
the
the
funds
at
—
by
Origin
share¬
capital gains tax.
shareholders
of
mutual
of
to
Custodianship
income,
operating
and
income
payment of Federal income taxes.
in the fund.
Their combined net
assets
at
the
1 9 5 2
year-end
reached the $4,000,000,000 level—
business
25%
securities
This
mined
of all investment income and
cap¬
ital gains in order to avoid the
cent per annum)
per
tributed
reporters of the
this new financial
of
deduction
one
by
cause,
Toctay there
fu-
ror,
ment institution
„
are
fund.
fee
(usually
Hollywood
and
being used, and with
"stupendous
—
the
by
outstanding
with the net asset value per share
of only secondary importance.
paid out to shareholders,
cordingly,
inter¬
or
to
of
the
not
most
mutual
a
the
on
after
same
by
used
agents
payments
ment
influence
The
market.
into
comes
through dividends
held,
al-
colossus.
without
million
est'
industry
industry
important
an
progress
ment fund.
This
stock
superlatives
of over $4
billion—and in 1952 the more than
*This
is
the
good
tual
unknown.
million
ready
press
mu-
American
in
business.
Open-end
in
holders
and
on
dustry has net assets
one
—investors
Income
fund
year
between
buyers and
without affecting the cor¬
poration or the number of shares
these would be subject to a maxi¬
Investment Income
bright.
net
made
are
sellers
Likewise if capital gains
are
it
lack of market
stock issue.
,
is
income
holders.
might prevail if one had
large block of an individual
a
investors each
new
colossal"
open-end mutual funds
tually
of
stitution—the
W. George Potts
dustries
sands
since
their
of
as
growth of mutual
and calls their future prospects
cauldron
shares
to
fund, it is subject to tax, and ac¬
cordingly, most funds pay out all
net
num¬
outstanding.
no
order
any portion
retained
by
If
income
nesses
for recent rapid
reasons
investment funds
fund
there is
In
exemption, a fund
minimum of 90%
pay out a
net investment
mum
such
mutual
the
important advantage
an
mutual
of
means
imposed by SEC and explains various types
Gives
of funds.
Describes regulation of
This is
;
fund's
dividing it by the
its
taxes.
shareholders.
The
By W. GEORGE POTTS*
j-
income
Iff
•
•
&V*aSp£ Mar,
,u
1953.
depending
on
the
market
value
of the underlying securities held
1942
1943
1944
1946
1945
Courtesy of Dreyfus & Co., 50 If road way, S'.Y.C.
•
W'hili-liall
-
1947
>4110
1948
1949
1950
1951
1952
SOURCE. Naiioool Allocation ot Investment Compamc*
16
The Commercial and Financial Chronicle...
(360)
TO
LETTER
thing they
EDITOR:
THE
and
is
Takes Issue With Mr. Shull
purchased
change in gold price
to be
appear
arguments for
says
based
on
our
generalities. Denies
Uv
Shull
^ ii»
attack
s
oi
that appeared in
Chron-
of tim
issue
25
G
'Thron-
Pnrtnpv
11)
Tune
Inne
an.
Price
the
on
Phiiiry
iHp" nf
Jhe
littip
cn
cle" in his capacity as Chairman
of the self-aDDointed Gold Stand-
3
I
™?t the
trition and
some
present
as
exist
hidden
back
reserve
same
if
as
for
attitude is being maintained toward the whole
has been
light.
are so
maturity extensions
which, up to now, has been most expressive in the intermediate
obligations. There has been also a noticeable amount of
buy¬
ing in the longer term obligations, although there is some question
now
to
into
wealth
oTthei?
the
and
blood
interest
the
of
mu
,
Those
United
.
who
.
be obtained
power to
been
States.
the^ added
^t et; a
o
l
try assumed the p s
had to protect and suppot
world, and have t
e
p
y
activity results in, regardless
regard is
power
such
any
«
the
or
position,
discovered
we
sustain
subsequently
unable
were
meet these burdens from the
to
levy
of excessive taxes and had to bor¬
and
row
50%.
depreciate
so
In
order
our
avoid
to
money
crushing
the taxpayer or the goose that was
resuP;
tbe
continue to be
should
we
by
such
force
means
^
when
was
large
1800
in
California.
Yet
present
our
of
p0SSible
payment makes it imto mine gold, and ...ore
that
once
was
considered of
mercial value
it
at
these
be
can
com-
has to be writ-
now
because
off
cen
t^
be
reserve
in
doubled
value
iua
iUa
proportion the
same'
'
.
Mr.
Shull
the
cost
prices
is
mine
to
than
more
only
an
gold
s
benefit them-
to
mines
mken^°illfes t0 Sh0W hlS'Want
Knowledge.
or
Our
Constitution forbids taking
private property for public use
without paying just
compensation,
but when the government fixes
the price of private
property and
him to
requires
ernment
far
at
less
sell
that
than
to
the
mg it, the Constitution is
regardless
whether
of
erty is gold
gov-
price, which is
cost of produc-
the
violated,
the
prop-
anything else.
or
Due to the tremendous increase
in
costs
at
$35
mine
the price
since
that
has
was
fixed
for gold, only
ounce
per
rich
a
can
mined with little expense
be
that
can
attempt to
ore
that
wealth
great majority have been
forced to close and those who remain in
operation do so on a margma
basis and only because the
result of closing would be still
more expensive.
The old Eureka
Nevada will cost
$5,000,000
over
could
be
obtained
and
the
market
that
HitHiU ep^
^ f
Churchill plan,
geK:
which had to be renamed the Mar-
sha„ p]an ,n
^ appeared
just dewater it, if the price of
metal justifies an attempt to re°Pen
those
recognizes
the
gold
aid
what
mines
but
even
is
with
following
and
fact
tact
Sthat
that
States
than
to
be
cannot
that
great
a
therefore
gold
to
this
is
the
as
countries
majority of
were
nearer
no
when it started. So the cards
were
had
to
be
shuffled
different
Aid"
and
a
a
name,
the
was
again
brought out under
similar plan
"Trade,
so
a
is
this
shall
have
the
without any duty and
guarantee
for
When
this
in effect
all
they
been
Standard
in
to
the
hook,
tunately
for
he
payer
will show
we
For-
American
the
you.
tax-
shown.
was
England
had
zinc that
from
mines
an(j
0n
stockpiled
that
purchased
her.
gave
was
many
of
ancj
a
paid low
zinc
the market at
appears
less
produce
it,
had
made
were
producers and
we
mines
those
the
partial
provided
50%
they
so
dollar
paper
they have now?
in
get
wyjllKX
the world pulled that in
ulQl
year;
same
to
broke,
to
close
would
1953
own
for
them
new
have
for
the
destroyed,
tax-
back
at
rS <5ton!fQ
Gold Standard
a
.
t
SG
tho
...
aPP°mt®d
aPPear
to
management
means
by
she keeps
money
aence
by
having
devalued, have
and the yield to
result, the longest bond
certain
the 314%
on
even
though it does involve
On the other
hand, the yield
obligation does not make it
buyers of Treasury
obligations
as
some
attractive
as
of
the
inter¬
Big Banks Buying Intermediates
B. G.
Phillips Offers
middle maturities
some
offering "as
of
stock
(par
Oil Concessions
Co., New York,
speculation"
a
1,000,000
time
this
are
being bought mainly by the
to
seems
indicate
some
com¬
lessening of the
stitutions
now.
now
an
obligations.
shares of com¬
$1) of Peruvian
Co., Inc. at $2
and
There has been, according to
advices, a broaden¬
ing of the interest in these issues with the smaller out of town in¬
Peruvian Oil Shares
B. G. Phillips &
banks
cautious attitude which has been in the money markets for
very
putting larger amounts into the intermediate term
The big money center banks,
however, continue to be
the
leading buyers of these securities.
The
for
per
the
maturities
purchases of
the
in
between
principal
is
ciation.
given
reasons
the
attractive
yield after taxes, along with the prospects of eventual
price
share.
™
maintaining
l
an
.g *
^
office in New
®W
no
their
confi-
in that
money and the
Some of the commitments
in
the
in the intermediate
appre¬
term gov¬
through switches, with tax losses being
longer term higher coupon issues and the proceeds
York City' received concessions fo
going into the less distant
od and Sas exploration land
after tax yield still being maintained.
the
Pacific
Sechura
of
coast
Peru
near
in
>
&eSnura aislricl-
Concessions Co.,
40-year
conces-
sions with options for 20-year
tensions
on
There
the,
district
three
large
ex-
tracts
of
are
not
the
case
84616> according to the
market
registration statement which
was
.
Tax
tne
Prospectus
gas
exploration
aiscioses,
these
and, if such
resources are
substantial
quantities,
only and develop them.
a
comparatively favorable
interest
concerned but,
around
as
far
of these bonds coming into the market
short
time
ago.
is reported, however, that
It
as
the
according to advices, there
many
were
as
a
was
good
recently made available
switch operation.
swaps
continue
to
with the commercial
furnish
volume
and
activity
and
Short-Terms Seen for
..
discloses
of
same
a
to
the
re¬
23 by the
.
Drosnectus
a
the
with
savings banks according to
ports the most active ones in this field now.
.
The Aug. 15
The major purpose of the issue,
the
as
be
are
ones
size amount of the 2%s due 1958/63
iensions on inree iarge uacis 01
land with a total acreage of 120'"
issuer's
to
seems
partially exempts
through
is
is
to
to
time and
countnes who have been swindled
again
coupon
a
mediate term maturities.
DUNSCOMBE
price
a
,,
LeaSue
slight premium above 100.
a
after taxes
paid.
wise
paying
mercial
mines cannot operate on.
+,
As
continues to be taken in good volume
'
pur!
buv
in Forefront
maturity is still attractive to them.
to
C0S- !ab°r W0Uld have the market declared effective July
our
as
The
mon
purchases
Florida
29
issue
these
advantages that could be
314% due 6/15/78-83 continues to be the
leading issue as
the longer term bonds are concerned because
there are a
taken
zinc that had been purchased
his own
money, so that the
who produced it with low
maintained
that
buyers of the 214s and it is believed
„1JC
Signed)
are
It
purchased at higher
in which certain state funds have been
ones
great many buyers that want the 314 %
/q;0.npfj\
CARROLL
sized
Individuals have also
far
licking.
a
good
principal buyers
averaging prices.
were
some
took
some
The
pension funds, private trust accounts and
The 314s
so^e
June
been
bonds.
The
the
X11
Stuart
have
214%
obtained from the estate tax
angle.
got as much as
one dollar for every hundred they
had before and
got more but
all
1964/69s being among the
have been rather substantial because of
two
over
a
214%
been
countries
UVC1
likewise
making their largest commitments recently.
al¬
each
for
Seven
is
funds, it is reported, have been doing their buying of
prices have been the
nice
past
thev
the
as
there
for the
the private
The state
the
a
There
the 214% issues with the
purpose in mind of
own
has
it
state funds.
one-
with
as
ernments have come about
lost all the
was
again had
been
market
tion
Furthermore, the American
paver
the
sions Co., Inc., a Delaware corpora-
marginal
markets
in
dumped
wSuld
labor
despite the fact that
have
League
dollar
our
following
Buying has been mainly of the scattered
Last year, Peruvian Oil Conces-
time, and the
mines
our
wealth
and
only
variety
at this time.
ready suffered. Would they prefer
money be called in and de¬
new
commitments.
money
we
that the market
others
of
new
ones
orders
wages
money
was
one
lot
purchased
was
with
The
result
It
are
the
valued
to have the best
seems
non-eligibles, with such issues
they claim support
correspond
value
somewhat
a
According to reports, the 2y2s due June
favored
suffered—by raising the price
gold
obligations, with
being in evidence in the 2V2% obligations
now
is indicated that issues of the 214s which
Gold
an(j those who
not
was
wen received the threat then
was,
if you don't gobble this bait off
ones
United
United
purchases
raw
apprf -iate ^ citi?ens of those raise working caPital lfor oil and
this
important
very
reportedly important interest in the market for the other
the
no
taken for public use and which is
far more than the
price that is
Is
some
and
right to
we
market
a
produce.
can
subsidy,
payment of its actual value that i<5
Canada? By such
levels
backing
December 1967/72 have been
going into strong hands in
fairly sizable amounts and it is indicated that a good part of these
se-Q their products in, this
country
with
far
is
her
procity involved but only a
way
street to destroy our
not
What
answer.
pian intends is that low cost labor
countries
not,
^ri^'the"
price
the
for
cost
This
called
the
sets
the
closed.
be
it had not done what
bullion
payment pays
known as cost
balances
plan of a country
products and can
only exist by exploiting low cost
labor. Such people have no purchasing power, there is no recithat has
supplies they
have
Peruvian Oil
unlawfully chased," and the market that
such Inc> now holds
part of her gold mines have been
forced
as
getting °" their feet than the^
produced-
Canada
tQ gfit .( ^
promised
was
to
such mines produce is
taken but in partial
of
favorable factor from the volume
angle.
though the 314% issue
even
source> the market for their claims point out how we can
■«* mines would be injured-the harm has already
lead and
operate.
The
in
reached
through the medium of tax switches which
had in the immediate past.
by the sale of the products
of her mines, and it would seem
this country could do far better
By this plan we economy.
ourselves
of
the
new
Let the
deprive
the taxpayers became restless
.
statement, this is
idea or plan of those who
own
have
the form
expected.
commitments in the longest Treasury
obtained.
&
SS& 50c"
Canada
a
enlarged interest
ours,
loss
onH
be
securities
Long Bonds in Demand
budget, is able to reduce taxes and
discharge her debt although the
per
capita was far larger than
of
gold
these
consolidation in
Institutional operators in the money markets continue to make
4uantities of g°ld were Produced by following her example than
wasnnecesesaryand prices'doubled from that
and triced!
But if our gold re- the
^
purchase,
onu
large
any
3pain brought over a lot of gold
,0 Europe from the New
World, or
method
0,10
to
money
of
boost to th* entire business world.
He can gee what bappenecj when
^bat
actfvitv'resultTin
such
discovery
a
amount of gold it has resulted in a
..
,
desired
filling should
trades consummated
that is the leaven that ourselves into a world wide de¬
discount raises our national income and it pression.
What sanctity is there
the reoorts anTthtmkfof cmpo- makes no difference whether that about the price that was set on
rations
that
own
and
operate new wealthi comes from the mines, gold 25 years ago when the cost
mines in other countries or banks farm, forest or oilwell; it must be to Produce it was nominal cornthat have international commit- maintained
and expanded.
He pared with what it is today. Even
ments as they are unable to take should also
remember or satisfy then it was probably way too low
a position as to what is in the best
himself that everytime there has in comparison with the price set
weakness
not
or
amount of
According to reports, there have been
why
or
whether
certain
a
stream
well
he
economic
explain why,
can
to
as
where
the amount of gold mined constantly continues to diminish and
ber that it is the flow of new League
of the better feeling
term
Mr Shull should also remem- possibly the Gold Standard
,
going to crowd them out of the lime¬
are
Nonetheless, there is tangible evidence
which has been in the market in the form of
mined, and all those countries
to
would receive the stimulus that
the flow of new wealth that those it would produce, without costing
mines produce and she maintains the taxpayers of this country a
the market for the supplies such dime.
mines purchase and the market
The results tell the picture and
the Payrolls of those who
employed produce.
and
ones
of the other issues
any
newly
were
list, although there
To be sure, the short-term securities
there are no indications yet that
profit taking.
some
still the fairhaired
are
into circula¬
it
Governments
on
Despite the vacation season, and the rise which has taken
place in prices of government obligations, there continues to be a
fairly active market in these securities. A generally constructive
would
the gold mines that are able
operate with cost aid, she gets
Frederick
annnnrt
tn
was
price
Reporter
By JOHN T. CIIITPENDALE, JR.
open
Chronicle":
.ha™
a
Our
tion and the result would be much
national income.
Editor, "Commercial and
th
The
everything else, the effect would
be to bring a large part of this
the
Financial
the
there as long
prices
continued
to
forest into the economic bloodstream that is the leaven that
raises
there
that
stay
gold price will benefit only gold producers, and
is the flow of new wealth from mines, farm and
contends it
and
ounce
assurance
no
increase in
an
hoarded.
and
disappearance of gold for
such purpose is in considerable
amount. If for instance the price
of gold was increased to say $70
per
Dunscombe, of Stuart, Fla.,
Carroll
rely upon is gold
can
in violation of the law, it
so,
annual
On the Price of Gold
Thursday, July 30, 1953
to
lands
found in
exploit
an
August Financing
maturity financing is getting
announcement is expected very soon.
The
more
attention and
consensus of
is that there will be another short-term issue offered in
for the maturing
certificates.
opinion
exchange
It is believed that the yield will be
attractive to short-term buyers,
the principal holders
of the
August
2s, because it is indicated the Treasury does not want to have
anything sizable as far as attrition is concerned.
Volume 178
Number 5242
Mullaney, Ostrander
Biiiish Investors' Dilemma
Public
Govs, of I.B.A.
Utility Securities
By PAUL EINZIG
on decline in market value of British Government
bonds, Dr. Einzig points out, as result, good-class industrial
equities have increased in popularity among investors, although
income yield of equities is only slightly higher than that of
irredeemable government bonds. Holds situation may change
Commenting
By OWEN ELY
Trend of Rate of Return
Arthur
&
Andersen
Public Accountants,
marizing
903
commissions
the
on
utility
over
rate
have recently issued a study sum¬
handed
decisions
rate
by
down
the years 1915-1952, in which the
base
"Public
was
York City, the well-known
New
Co.,
Certified
The
involved.
was
information
regularly published in
Utility Reports," which are
with end of cold
Individual
i-.
Lee H. Ostrander
MUlianey
CHICAGO, 111. —Paul L. Mul¬
laney of Mullaney, Wells & Com¬
and
pany,
H.
Lee
Ostrander
of
William Blair & Company, both of
Chicago, have been elected Gov¬
of the Investment Bankers
ernors
Association
of
America
and
or.
allowing language.
a
of the
result
and average
Group of the Asso¬
They will take office at
returns allowed
the close of the Association's
annual
held
1953
convention, which will be
Nov.
29
to
Dec.
in
4
Holly¬
wood, Fla.
Mr.
Mullaney is Chairman of the
Legislation Committee of
State
the
Association, and President of
"The
Club
Bond
of Chicago.
Mr.
Supreme Courts;
also for all state commissions and the Federal Power Commission.
It is unfortunate that the data
could not be tabulated for each of
regulatory commissions,
the 40-odd states in which there are state
for reference purposes in ap¬
such data would be valuable
Ostrander is Chairman of the Cen¬
tral States
praising the relative degree of "toughness" of regulatoin in dif¬
Group.
ferent
earning
Cook, Rennemo With
brief
Archincloss, Parker
PHILADELPHIA, Pa.—Auchincloss, Parker & Redpath, members
of principal stock and commodity
.
exchanges,
announce that Francis
Thomas J. Rennemo
A. Cook and
associated
now
are
with
them
as
registered representatives in their
Philadelphia office, 1421 Chestnut
Street.
Rennemo
Mr.
be
will
in
charge of the firm's municipal and
corporate bond departments.
Mr.
Cook
securities
ment
following
Wharton
business
graduation
in
School of Finance,
the
Uni¬
Rennemo, previously asso¬
ciated
with
the
entered
Harris,
&
Hall
Co.,
investment securities
He is
business in 1945.
the
graduate
of Wisconsin State University.
a
However, the care¬
remarks")
and
commissions indicated
state
contained in
book contains five charts
the margin.
on
period 1915-52,
1952 there were
Thus, in
pared with
mission
record number of decisions totalling 76 (as com¬
a
50 in
the previous year)
decisions,
Federal
five
Supreme Court, one State Court
follows: 64 state com¬
as
Commission,
Power
five
State
of Appeals, and one U. S. Circuit
Court.
accompanying table shows the data for all utility com¬
It is interesting to note that the high
panies for the entire period.
10.90%, while the average return was between 6.2 and 7.7%
downward
trend corresponding
not conducive to
Deal
New
(1) the depression, which was
to
high earnings; (2) the anti-utility attitude of the
which
Administration,
111.
reflected
seems
in
the
sharp
the
Aim, Kane,
'Rogers & Co., 39 South La Salle
"Street, announced that Willis
Martin has joined the investment
securities
and
Sales
ing
firm
Aim,
Martin
Manager.
Kane,
was
upturn in the high rates of return allowed from 6.50% to
On
Before join¬
Rogers
Co.,
&
the
other hand,
its low in 1947 at
The average return reached
5.36%, and recovered to 6.16% in 1951 and 5.95%
With interest rates
with the
tion
more
rising sharply in the past 12 months, and
liberal attitude of the
perhaps having
effect
some
Washington Administra¬
new
the
on
State
it
Commissions,
Department
with
Kidder,
Peabody & Co., and prior to that
he
was
associated with the
National
pany
Bank
and
Trust
First
Com¬
appears
likely that there will be a gradual rise in the allowable
return.
Funds
This is also being urged
as
a
belated recognition of the
inflationary factor in the rate base, since some old utility plants
could
not
be
reproduced
for
than
less
two
or
three times
the
As an example of more liberal rate of returjn in the
original cost.
of Evanston, 111.
it
Florida Power Corporation has just been allowed a
increase which permits a return of 6.45%.
current news,
rate
Average
High
the
%
%
%
4.00
1934
6.07
6.90
4.00
5.70
1935
6.24
7.00
4.53
1936
6.39
8.00
5.50
1937
6.06
6.50
5.50
1938
5.89
7.00
4.15
3.10
High
Low
%
%
%
1915
6.20
9.00
1916——
7.32
10.46
in
the
of
their
to
were
pressure
inflationary situation.
of interest rates
reduction
of
be highely
course
holders
to
Loans.
the
under the
1952
of
their
But
bene¬
Government
would
meat
be
poison of holders of equities.
Even
though the psychological ef¬
fect of a removal of war fears may
cause
on
"peace in
a
time boom"
our
most markets this would prob¬
change, to
trade
recession, however moder¬
is liable to cause a fall in
from Govern¬ equities, wmle the rise in Govern¬
ment stocks ment Loans is likely to be of a
to equities.
Since the abandon-' more lasting nature.
ment of Dr. Dalton's policy of sup¬
Should, on the other hand, the
over
ate,
Einzig
porting the prices of Government
loans in 1947, and more particu¬
ol
outcome
trie
feelers
peace
be disappointing, the
prove to
larly since the abandonment of armament race would have to
the cheap money policy in 1951, tinue
to
the
detriment
of
the
re¬
con¬
the
Government Budget and of Government Stocks.
loans, and of fixed interest-bear¬ The inflationary boom would be
ing securities in general, has resumed and the prices of equities
declined considerably. Their quo¬ would stand to benefit by it. It
popularity
tations
of
substantial de¬
registered
therefore, that the decision
seems,
This
of
investors
whether
to
prefer
long way towards un¬ ,equities or Government Stocks
dermining the faith in Govern¬ depends on the view they take on
ment stocks as the ideal invest¬ qeace
prospects. This is not an
ments
for those
seeking safety economic question and investors
look
to
economists
for
rather than high yield. Moreover, cannot
even those investors who can af¬
guidance. All that economists can
has gone a
the Stock Exchange
ford to ignore
of their Government
fluctuations
have
stocks
the
of their fixed
power
incomes.
Another reason
why good-class
industrial equities have
increased
been the con¬
solidation
of
the
Conservative
Government's position. It is now
popularity has
that the Con¬
remain in of¬
fice till at least 1960. This-means
that business firms can depend on
a friendly and helpful attitude on
the part of the Government, in¬
stead of having to put up with a
hostile Government. It is reason¬
able to expect some relief in the
burden of taxation and the relaxa¬
tion of the unofficial ban on divi¬
believed
widely
servative Party will
for the above reasons
in
that
existing
circum¬
stances the difference between the
ments
that
yield of first-class industrial
equities is only slightly higher
today than that of irredeemable
the
to be too small.
appears
Hitherto
have been dealing
exclusively with the international
political factor and its possible
repercussions
on
the
business
situation
values.
we
and
Stock
on
is
It
Exchange
however,
necessary,
to bear in mind
also the domestic
political factor. Should the peace
be successful it would
attempt
greatly strengthen the position of
the
Conservative
which
would
,equities.
be
it
Government
bull
a
Should
fail
tempt
the
point for
at¬
peace
would
probably
weaken the Conservative Govern¬
ment's
position
point
view
of
and
it
from
would
tms
tend
to
mitigate the rising trend of equi¬
ties
increases.
It is
is
say
af¬ yield of the two 'classes of invest¬
adversely
been
by the depreciation of
purchasing
that
tinued
would
result
from
rearmament. On
hand
the
con¬
other
the
improvement
of
the
prospects of Socialists would be
bull
a
point for Government Loans
because
a
to
return
cheap
money
There is a
is
the
declared
policy
of
the
induce the
Socialist Party. Indeed the latest
Government to introduce legis¬
trend
of
thought
among
the
lation making it lawful to invest
Socialist financial experts is that
Trust Funds in good-class equities.
the
official
monetary
policy
There
is
no
likelihood of the
Loans.
Government
afoot
movement
Treasury yielding
but the
to
in this respect,
fact that such
gives
a
pressure
indication of the
an
prevailing trend.
The
Low
Year
Average
Year
de¬
whether
is
switch
Dr. Paul
exists
Summary of Court and Commission Cases on Rate of Return
be
for
at the
justification
interest,
in ably be short-lived. Once the re¬
anticipation of joicing is over the possibility of a
dend
'
in 1952.
Manager of the Mutual
10.00%.
the low rates continue to move downward,
dropping to 2.00% in one 1950 case.
Vice-President
as
1940s.
Beginning in 1946 and continuing to 1952, there was a sharp
—
They
to
cide
in
Beginning in 1930 there was a
(with the average around 7%).
1930s and
Aim, Kane & Rogers
CHICAGO,
tude.
percentage return in the period 1915-1930 ranged between 8.00%
drop of 1933-34; and (3) the abnormally low interest rates of
Willis Martin With
ing their atti¬
fected
The
raised
of ficial
consider¬
r e
clines and wide fluctuations.
showing the high return, aver¬
return and low return for each year of the
and
versity of Pennsylvania.
Mr.
("allowing language
1936
from
potential
together with the number of decisions in each category.
invest¬
the
entered
the
15-97 of the book, where the cases are arranged by years
The
age
of
compile such data if he wishes to by exploring the
can
excerpts
pages
with
analysis
the
of different utility companies.
power
ful student
connection with
in
states,
be
would
there
any
would
necessity
have
missions, then for U. S. District Courts, U. S. Circuit Courts, U. S.
would
prices
and
longer
no
faced with the
The
all courts and com¬
Supreme Court, State Courts of Appeal and State
race.
of
downward
Any
transportation, telephone,
gas,
trend
are
the data described above for dif¬
of utilities—electric,
groups
in
autumn,
investors
which show the trend of the
water and total. The data are tabulated first for
since
the
during the period under review.
The statistical tables present
ferent
Ministers
return allowed for each year by each court or com¬
The book includes graphs
mission.
the
proposed meeting maintaining interest rates
of Foreign high
level to which they
All cases were summarized by the court
Central States
ciation.
improvement of
an
international political relations as
shows the number of cases reported, the highest, lowest,
summary
and rearmament
LONDON, Eng.—In view of the
possibility of
allowed,
commission having jurisdiction and by the class of utility.
the
by
reviewed for rate base, return
were
cases
war
or
rate of return
the
of
source
courts
Washington, D. C.
raui
17
(361)
The Commercial and Financial Chronicle
...
question is, how would the
should
aim
rates
from
the
at
insulating
Government
on
interest
rates
interest
securities
on
loans
to
private sector of the national
economy.
are
Gaitskell
Mr.
colleagues
his
and
engaged in studying
1920
6.95
9.00
2.40
1939
5.86
6.67
1921
7.58
10.00
5.00
1940
6.08
7.00
5.28
1922
7.26
8.00
5.00
1941
5.86
6.50
5.00
termina¬
methods of insulation applied in
tion of the cold war and of the
other countries and there can be
rearmament race. There can be
no doubt that should they return
no doubt that Government Stocks
to office, they would try to apply
would stand to benefit by it. Apart
them in Britain. This would mean
from
its psychological effect, it
that even to the extent to which
would enable the Government to
a Socialist Government would ap¬
reduce
arms
expenditure which
ply credit restrictions to check an
would be helpful from a Budg¬
1923
7.69
8.50
5.00
1942
6.33
6.60
5.75
etary point of
1924
7.44
8.00
4.96
1943
6.12
6.50
5.50
important,
1925
7.30
8.00
5.50
1944
5.92
6.50
5.00
probably
be
1926
7.40
8.00
6.00
1945
6.22
7.29
5.00
reduction
of
1927
7.40
10.90
5.25
1946
5.91
6.50
5.00
of
1928
6.56
8.00
4.00
1947
5.36
7.41
3.12
would
1929
6.98
8.00
5.60
1948
5.59
7.40
3.50
necessary
1930
7.08
8.00
4.95
1949
5.79
9.00
4.00
of business
1931
6.94
8.00
5.50
1950__
5.72
8.17
2.00
the termination
1917
AREA
RESOURCES
BOOKLET
on
request
Salt loke City 10, Utah
8.00
6.00
6.59
8.00
5.60
1919
P. O. Box 899, Dept. K,
6.97
1918
6.58
8.00
4.40
.
,
^
._
1
situation be affected by a
by a
Bank Rate and
interest rates in general. This
1932
6.73
7.70
5.67
1951
6.16
8.86
3.66
race.
1933
6.37
8.00
4.64
1952
5.95
10.00
4.14
see
6.48
10.90
2.00
but
•
miJ Mil
:
•i-
'
i-J
•"*
Total-
view. What is more
change
would
the
become
possible and even
a
result of a decline
as
activity resulting from
Nobody
the
it
accompanied
the
of the rearmament
is
possibly fore¬
can
extent of
such a decline
generally
there would be some
assumed that
decline. If so,
boom,
inflationary
would
rates
be
on
ernment
It
any
made
to
an
keep
attempt
interest
Treasury Bills and Gov¬
Loans at a low level.
seems
therefore
certain
that
development in domestic poli¬
cies
or
ation
in
that
chances
the
the
of
return
to
widen
the
office
yield
and
equities.
of
Party
the
to
tend
to
strengthen
Labor
would
discrepancy
tne
situ¬
international
would
between
Government
Loans
I
The Commercial and Financial Chronicle
(362)
Ia
U. M. T.
Eisenhower Orders Resfudy of
President, in statement nominating Gen. Julius Ochs Adler,
Warren Atherton and Dr. Karl T. Compton to National Secu¬
operating
military training
a
issued from the
President Dwight
Eisenhower on July 23rd, in
In
statement
a
White House by
O.
tion
the nomina¬
he announced
which
Gen.
of
Ochs
Julius
Adler, VicePresident and
:
General
■:
Man-
"New
York
Times";
ahead
to
members
of
Security
Eisenhower
Pres.
President
the
program,
re¬
vealed that he has directed a new
report sub¬
the question by Dec. 1.
study be made and
mitted
on
text
a
manpower
to
United
I have nominated to the
T.
I
of
must
in
desirable. But
time.
same
data
the
reduction
recent
in
the
in
of
Marts to
equally
are
City vote for
un¬
make
inescapable, unless certain
At
would interest
hope so.
warning
the
new
Board
Conference
reveals
that
Stock at $1 a Share
three
submitted
have
I
iiames
whose
gentlemen
the
to
Israel & Co., of New York City,
offering publicly an issue of
299,950 shares of Western-Nebras¬
ka
Oil
Co., Inc. common stock
are
Senate, serving with the two mil¬
itary members, Lieut. Gen. Ray¬
mond S. McLain (ret.) and Ad¬
miral Thomas C. Kinkaid (ret.),
will complete the membership of
this commission.
Upon his con¬
firmation by the Senate, I shall
designate Mr. Adler to be Chair¬
(par 10 cents) at $1
speculation."
a
The net proceeds are to be used
to pay
to
submit
to
not
me
than
later
Dec.
1, 1953, a report which shall
include, but not be limited to, (1)
examination
an
the
for
men
inequities in
of securing
forces'
armed
our
the
and
serves
of
method
present
burdens
re¬
imposed,
with suggestions to
remedy these
inequities; (2) the feasibility and
desirability of operating a mili¬
tary training program to supply
lease
for
as
producers,
capital.
The
in
of
cost
drilling
the Grabowski and Spren-
on
leases, cost of equipping
ger
requesting the commission
mortgage assumed on Gra¬
bowski
well
man.
I am
share "as
per
Feb.
on
4,
1953
for
exploring for gas
and oil and development of likely
and
gas
pany
oil
The
prospects.
com¬
intends to conduct operations
initially in the State of Nebraska.
The
corporation
undivided
an
has
one-half
of
in
recent
a
a
re¬
1953, according to 189
executives
industrial
cooperating
by
conducted
survey
the National Industrial Conference
Board.
acquired
interest
in
ness
last
the
conducted
be
half
on
will
panies reporting believe that their
competi¬
of
backlogs at year-end will be any
larger than at present, while more
than
twice
that number believe
1953
more
a
tive basis.
Prospects
for
Forty-three
second
the
that
in
1953
change from current levels.
the
reveals that
generally attribute
declines in backlogs of orders to
increased
productive
capacity,
government contract terminations,
to
ex¬
comparable 1952
with 29%
decline
a
The
in
new
of
rest
will be reduced.
anticipate no
backlogs
remainer
co¬
the
expect
compares
volume.
order
their
The
orders booked
half of
forecast
who
new
the
This
period.
of
percent
total volume of
ceed
Orders:
companies
operating
in
New
Up—Trend Down
the
in
The
the
NICB
survey
concerns
the
stretch-out
contracts, and
the removal of restrictions on use
of
advanced
their inventory-sales
permit
regular
rapidly
from
I
am
training
forces
to
expand
to
also
me
tive
to
requesting the Office
3
by
Dec.
report
lanpower
ously
1953,
1,
the
on
to
defini¬
a
excessive
Eighty-four
on
requirements
our
fjr
agricultural, scientific, pro¬
fessional, technical
and
skilled
r.rsonnel.
I
am
vill
of
this
that
nation
it
that
is
the
the
re-
jonsibilities for its defense should
1
e
shared
as
equally
as
possible
1 y all of its citizens.
And yet as our veterans of Ko33a
return
home
they find them-
fplves under legal compulsion to
j
uoulder a
gation.
f.iry
six-year reserve obli¬
only effective mili-
Our
reserve
under
this
present
.'■ystem is—and apparently will
main— composed almost
liirji
1,440
erating
County, consisting of 2,766
in
acres.
re¬
wholly of
who have already served the
have
did not reveal
cancellations
orders.
of
companies
experienced
all
coop¬
report
percent
they
of
increase
no
cancellations, while
another
report that cancellations have
5%
metals.
the
Of
Although 30%
ing
companies
higher
a
as
Championship
LOS ANGELES, Calif. — Parbusting Ted Richards, a week-end
golfer
who
spends
the
rest
creases
the
39%
remainder
half
Almost
industrial
of sales than
have
lowered
ratios, while
report
of
the
firms
inventories
inventories
report
that to date the in¬
change.
no
expect
reduce
to
Last
Half
Sales
Period
to
of
sales
York
Stock
Ex¬
change, walked off with the top
honors at Seattle,
Washington,
by
winning the National Public Links
golf
crown.
"Steady Ted" outfinished
low
l-uo
Californian,
in
the
Richards fired
over
final
bel¬
Cooper,
round.
69 morning round
the par 71 West Seattle
lay-
out, and
noon
Irving
36-hole
a
a
a
35-37-72
tour to
take
on
the after¬
the match.
•
A
of
Top
Same
'52
Hogle & Co., 507 West 6th Street,
New
second
will exceed
half
of
of reporting
that
dollar
those
1952.
the
for
from
Aside
expected higher physical vol¬
ume of business, increased selling
prices are most frequently men¬
an
tioned by
executives optimistic
the
outlook.
sales
given
strikes,
are:
material
output
Other
avoidance
elimination
of
of
on
reasons
major
most
relation
-
number
f
to
and
increasing
the
and
investors
of
volume
staffed
1 ly
u
meet
rising
of
trading here."
Frank
L.
Newburger, Jr., of
Newburger
&
Co.,
headed
the
Philadelphia committee which had
been negotiating for the merger
during the last two years.
"In the opinion of our commit¬
tees," Mr. Newburger said, "the
both
in the
is
merger
that
interest of
best
exchanges.
cilities
Many of the fa¬
will
afforded
be
Washingt'on financial
the
to
commu¬
nity through the merger are al¬
ready established in the Washing¬
office
1,
the
of
It is
1951.
Philadelphia-
Exchange
Oct.
opened
that with
expected
the merger, use of these facilities
will become more widespread and
will
mark
important
an
the expansion of the
Baltimore Stock
It
is
will
Exchange."
expected
become
step in
Philadelphia-
that
the
effective
merger
Oct.
by
1.
The final
plan, however, must be
approved
by
dicate
in
relative
a
to
ernors
rise.
Watch
on
and
must
members
Approximately 25% of cooper¬
companies report some lag
collections,
although
in
the
majority of cases it is very slight.
ating
Thus
far
ticed
slow
the
tendency
collections
mainly
or
has
among
toward
been
no¬
of
voted
Investment
policies.
OMAHA, Neb.
Omaha
More than half of the executives
before
taxes
merger
—
The
Bankers
and
their annual
the
ex¬
can
be/
Association
Lincoln
bond
Party
Nebraska
will
hold
party Sept.
15,
1953, at the Omaha Country Club.
A
cocktail
party
Favorable
by
Philadelphia
Bankers Annual
of
reveals that the
credit situation is being watched
more closely, although only about
6% of the cooperating companies
have actually revised their credit
survey
profits
be
the
Gov¬
Nebraska Investment
chronically
Board's
estimating
of
constitutional
change before the
marginal accounts, some
Outlook
Board
consummated.
foreign customers, and customers
with small working capital.
In most instances, however, the
Profit
the
certain
Collections
raw
shortages and increased
of military supplies for
the government.
equipped
sales
slower
(billings) in the second half
1953
supervised,
during the next half year as com¬
pared with only a fifth which in¬
in
relatively small.
majority (59%)
executives
predict
members
the actual
be furnished with
facilities,
professionally
modern
cooperating
companies
in cancellations have been
of
a
the vote that
will
changes
securities salesman
in the Los Angeles office of J. A.
as
Exchange,
Stock
local financial com¬
the
and
munity
Baltimore
Control
of the cooperat¬
percent
a
ago,
year
Close
remaining
most indicate
Golf
tors
ton
Inventories Under
actually declined.
Ted Richards Wins
the week
i
confident
consisting of
simultane¬
operate
a
id
program
Neb.,
acres; and an undivided interest
in the Earl lease, also in Chase
,
)
change.
no
The NICB survey
interest in the Day lease in Chase
availability of
military training program
supply our active duty mili¬
tary personnel, including an
nalysis of the impact of such
.
Dundy County, Neb., consisting of
1,120 acres; an undivided one-half
County,
strength
peace
<i Defense Mobilization to submit
to
see
Cancellations
in
strength.
war
cooperators
in
Washington
substantial change in
no
Twenty percent have expe¬
rienced no change.
Only about 20% of the com¬
ciently
lease
Washington
stated in announcing
a
year
ago,
while 35% of the
companies report increased back¬
of
Grabowski
Under the plan
the
merger,
trading activities of the Washing¬
ton Stock Exchange or reporting
of quotations is contemplated.
Backlogs—The Peak Is Past
"Present local
procedures will
Forty-five percent of cooper¬
remain
practically undisturbed,"
ators report current backlogs of
he said, "and Washington inves¬
unfilled orders are smaller than
The
Cheyenne Board
notes,
however, that 47
trained non-veteran reserves while
County, Neb., consisting of 220
companies expect the trend in
at the same time continuing in¬
acres; an undivided one-half in¬
bookings to be downward in the
duction for service; and (3) the terest in
the Sprenger lease, also
second half, while only 24 believe
relationship of such a programs to in Cheyenne County, consisting
that their bookings will rise.
the
building
of
a
strong
and of 1,840 acres; an undivided oneequitable
citizen
reserve
suffi¬ half interest in the Jones lease in
the
Exchange.
exchange will operate as a branch
the Philadelphia exchange.'
G. Fenton Cramer, President of
logs.
The Board notes, however, cooperators generally feel that busi¬
organized
was
indication
same
of
purpose
little
mainder of
working
for
is
There
serious business decline in the
Volume
corporation1
Delaware
the
and
are
Stock
on
despite narrowing margins.
•exercise civilian control over such
The
higher profits
mem¬
of
Industrial
expected,
of 189 manufacturers by the National
survey
Phila¬
meeting of
Washington
the
of
the
of
the
A
of the
branch
a
special
a
Stock
We
No Serious Business Decline This Year!
Western-Nebraska Oil
program.
it
Capital-
which wilF
July 21, it was
voted to merge the organization
with the Philadelphia - Baltimore
size
existing on the National Se¬ duce suggested remedies for the
inequities which have long char¬
curity Training Commission.
The National Security Training acterized our military manpower
•Commission was created by pub- policies.
tic Law 51, Eighty-second Con¬
gress,
to study and submit na¬
tional security training plans and
Merge
merger,
Exchange, held
this
by
delphia Exchange.
(George G. Hagedorn).
Perhaps
for
Phila.-Baltimore Stk.
now
a
compensated
selling prices.
Members of exchange in
"Hoover Commission."
men¬
Washington and the
indebtedness
requested of this matter can pro¬
Dr.
not
bers
the
Karl
and
costs
facturers
our
light
the
manpower
of
frequently
by
continue, thus reducing the
are
just
companies.
business finance."—National Association of Manu¬
however, reviewed
have,
they
some
most
increased
com¬
a
changes occur in the general economic climate.
This, then, is the central problem of present-day
personnel requirements
military training program
products
New
companies expecting
profits in 1953 are lower
volume of shipments and increases
or
Inflation
re¬
increases
ensue:
business
"All three of these alternatives
would be avail¬
our
active-duty
supply
fill the vacancies
to
following results must
increase,
"(3)
standing forces, and I am
hopeful that the studies I have
Atherton
Compton
Ochs Adler,
Julius
Senate
Warren
must
military
a
or
one
The
doubts, and have
them publicly, that suffi¬
able
and
tioned
Business expansion must cease, or
burden
consumer
such
additional capacity will bolster
Causes
that, unless the supply of
capital is increased, either
real
1952.
lower
"(1)
re¬
reported.
profits in
had
cient
Eisen-
President
of
iMwer's statement was as follows:
otates
no
against
of
no
assumed
in
going to market and the operation
.
bination of the
re¬
stronger
is
equity in¬
or
"(2)
has
profits,
by proprietors
risk-taking
one
replying
survey
sistance
real burden of debt.
have
at the
The
venture
society.
voiced
to encourage
as
"The final conclusion is
inequities appear to me
directly contravene some of
the most basic principles of our
I
of
companies
reveals that while
some companies
feel that higher
priced will contribute to improved
The
avail¬
equity capital—in the
vestment.
These
Training Com¬
mission, the five-man board cre¬
ated to work out a military train¬
ing
has
done
The
partners—have been only trivial in amount.
economic conditions have evidently not
been such
to
National
the
and
burden
has
contributions
per¬
a
than
fewer
pects are poorer than
General
our
who
man
New
four
of
as
actually decline.
that
notes
com¬
although
believe that their 1953 profit pros¬
sources are
form of stock issues and investment
reserve
defense
training,
and
out
borrowing for financing its expansion.
able.
obligation.
serve
be
fornia,
the
no
service,
of Cali¬
erton
of
NICB
tends
question then is what alternative
today also to carry the
national
ceived
no
requires
system
our
future
Ath¬
scale
system
soldier of
and
chusetts,
Warren
World
war,
thousands of our
young men have not yet assumed
any
military obligation to our
country. Men who have not been
inducted for Korea not only es¬
cape the ordeals of that conflict,
ent
ex¬
the
exceed
figures,
note that profits
many
other
any
impossible to regard with complacency a con¬
tinuation of the dependence of business on large-
both.
to
1952
cent of sales will
debt, like
it is
Korean
the
or
Thus
Massa¬
of
in
II,
forces. Thus, no
also find that under the pres¬
I
Dr.
TCarl T. Comp¬
ton
War
parable
to intensify inflationary
matter how the question is viewed,
of credit
pansion
program.
they also undertake
obligation.
of the
ger
nation
Wanting!
"An increase in business
rity Training Commission, reveals he has directed the Commis¬
sion to make a new study of the feasibility and desirability of
them
expect
A Serious
Thursday, July 30, 1953
...
on
party will precede the
Sept.
14. '
Harry
R.
Greenway, Vice-President of Cen¬
tral
man.
Republic Company, is Chair-
Number 5242
Volume 178
The Commercial and Financial Chronicle
...
56 Economists Fear Further Debt Monetization
In Absence of Redeemable Dollar
Members
Economists'
of
National
Committee
monetization of Federal debt at low interest rates will be
United
ex¬
coin
ceedingly great unless dollar is made convertible into gold.
Commending the Treasury's efthe
the
fund
to
Federal
market,
open
interest rates,
monetary economists
issued
ment
in
July
on
state-
a
27
banks
to
loanable
the
for
of funds required at whatever rates
group
a
of turning to savers rather
course
prevail in free markets,
recom-
States
its
or
securities
The Treasury should pursue the
in
though at than
even
higher
debt
securities
in1 coin.
fHARWOOD
the
to
equivalent of
of
the
his
mended domestic
redeemability of era} Reserve authorities are to be
the dollar in gold as a means of commended for the
progress being
strengthening
the
government's made in freeing the Federal Recredit and holding down the in- serve
System from domination by
•terest cost of the debt.
the Treasury and in substituting a
The
text
of
the
statement, program of maintaining an ordersigned
by 56 members
of
the jy government securities market
349:
greatly facilitated
The
.
J.
handicaps
Economists'
National
Committee
for
Monetary Policy, follows:
on
A
Statement
Good
A
Market
56
by
Members
Government
Outside
requiring that the Federal
one
Reserve
and
on
System
artificially
maintain
high
fixed
which
under
prices
for
such securities.
Bond
Banks
(III)
of
irredeemable
an
The United States Treasury
(I)
savers
marketing of its securities
tively low rates of interest should
commended
forts to turn from
the
in
its
for
banks to
ef-
be
since monetization of Federal debt
the
As
banks
for
to
thus
the
increases
its
stantially
interest rates sub-
higher
than
those
that
prevailed when it financed itself
in such high degree by selling its
debt to banks in
exchange for deposits and Federal Reserve notes,
Proof
that the
interest rates, at
Treasury could borrow
which the
from
banks, have been artificially
is revealed by the fact that
low
the
Treasury has been compelled
from
to
turn
in
such
the
to
savers
high degree
banks
for loans
at
those rates.
maintained
in
found
fine
A
i
statutory
people
our
in
people
deemable
such
in
low
the
artificially-
interest
rates
that the
gov-
$35
its
low
bonds
at
interest
then
a
5%,
per
with
blessed
re-
a
and confident
currency
interest
on,
government bonds will be paid
in
currency
tend
to
lower
at
redeemable
purchase
rates
such
make
bank
of
than
return
to
tive
markets.
in
free
Freed
and
to
is
the
from
straints of such interest
government
competi-
invited
re-
rates, the
borrow
to
spend freely; the currency
is expanded improperly since, it is
'created
Federal
against
the
debt;
purchasing power of _the peoples
currency
tends to decline; ecodistortions
nomic
the
artificially
the
and
eral
interest
defective
excessive
the Fedand
deposits
of
notes
an
be captured
irredeemable
at
de-
or
currency.
debt
commercial
by
payments
oh
Jan.
lowed
bv
recession
business
and
ana
the
To
that
extent
States Treasury
and
fund
to
Federal
in
United
is able to borrow
and
debt
invest
to
the
refund
inducing
by
its
existing
securities
savers
at
pre-
rates in free open mar1kets, it is able to return to proper
and prudent methods of financing
its needs and to avoid adding to
vailing
the
.unfortunate
which
have
expected
tice
of
consequences
arisen
flow
to
and
monetizing
unwisely pursued by
ment
in
recent
may
be
the pracFederal debt
ffom
our
govern-
particularly
years,
Officials
are
now
of
the
endeavoring to return to
methods of Federal finane-
proper
ing should have the support of all
administration
who desire correct
of Federal fiscal affairs. The
tion
er
of
or
those who
the
commercial
banks
recommend
a
monetization
and
rates,
to
as
the
turn from
Federal
Re-
and who
continuation of debt
to
savers,
at
interest
rates
did,
artificially
low
p<
of
and
Chicago,
1895),
immediate
of
specie
702;
«The
resumption
payments
Jjc
was to advance the pubcredit( which made it possible
rapjdly fund all the bonds of
United States then redeemable
50nds bearing 4%
a
|n
rate
much
terms
of
interest"—
below pre-1879
an
irredeemable
rates
cur-
renCy
p.'"705:
which
large
less
class
of
investors,
were
and
tories, and
difficulties
confronting
V. VAN
University
SICKLE
Wabash College
V.
ORVAL
WATTS
Economic Consultant
Altadena, Calif.
EDWARD
LINCOLN
Smith
F.
WILLETT
College
as
to
Part I.
tWith reservation
as
to
Part II.
Executive Editor, The
Commercial and Financial
tWith reservation
as
to
Part III,
Chronicle, New York City
^Approves Part II.
A.
the like."
The
TRANT
*With reservation
real estate,
houses, fac¬
build
JOHN
Wilmington, Del.
road bonds and stocks;
to
E.
B.
Louisiana State
Harding College
Searcy, Ark.
government obligations. They pre¬
ferred to speculate, to buy raiL
mortgages,
Mercersburg Academy
JAMES
J. L. LEONARD
EDMOND
STONESIFER
$CHARLES S. TIPPETTS
The University of Pittsburgh
buy
R.
Mt. Union College
MONTFORT JONES
the
to
they
;
Brooklyn College
GILBERT
Morgan State College
very
a
SPAHR
IJWILLIAM H. STEINER
HUGHES
one,
principles in issuing money,
was
the distrust of
inclined
THOM HOLDSWORTH
per¬
the
SHIELDS
New York University
Highlands University
greater
including
WALTER E.
FREDERIC A. JACKSON
wider
W.
University of Florida.
University
New Mexico
departure of the government from
men,
MURRAY
Administration,
The University of Miami
fallacy
a
many
The
our
bating the problems arising from
Federal
debt
WILFRED MAY
§Approves Parts I, II.
interest
rates
ceedingly
artificially low
promise to be ex¬
under
great
circumstances.
of
possible.
for
are
to
the
of
abled
to
market
terms
of
a
and
the
Treasury
its
is
the
cur¬
en¬
in
currency.
Congress should provide promptly
for
redeemability.
Without
its
bonds ^cession
pouring.in from alI parts benefits, the Treasury may be
Eu" forced to return to the banks for
further monetization of the Fed¬
lope fatter jan. i, iaiyj.
When the Treasury was borrow- eral debt. Our government should
ing from savers and banks dur- profit by the lesson so clearly il¬
ing the period of irredeemable lustrated in 1879.
Greenbacks, particularly during
that part of the Greenback period
SIGNED
in which the gpvernment distinguished between its promises to •$JOHN F. ADAMS
Temple University
Pay in coin or. in lawful money
CHARLES C. ARBUTHNOT
other than coirx^ a common differWestern Reserve University
ential in terms pffered or paid by
the government-.was 6% on bonds
JOHN W. BECK
payable in coin as against 7.3%
Oklahoma Publishing Co.
when payable ,,ip currency. (This
JAMES WASHINGTON BELL
is.
illustrated
by
the
fsfiS To
Conspls q(
R„fapl
A
1865^1867 and jg68
Rav]^v
_
rh
f^ nf
^
BELLEMORE
University
New York City
w
R{£
♦
a
£ J?' Jg?,
' J, }>
T
slty^Press, New*York, 1931, ApPendix, folders;5#and 6.)
The principlerbf higher interest
for government bonds
pay-
redeemable
currency
was
rec¬
FREDERICK
A.
BRADFORD
Lehigh University
CECIL C.
CARPENTER
University of Kentucky
ARTHUR
W.
"Movies
together
CRAWFORD
Chevy Chase, Maryland
WILLIAM W. CUMBERLAND
Theatres
cessions
seem
and
to
go
butter,"
Corporation
of
of
Con¬
and
the
America,
Theatre
Inc.,
told
7,000 candy manufacturers at the
70th
Annual
Convention
National
Confectioners'
tion
session
at
a
in
in
ate
the
promoting
Mr.
grams,
know of
movie
Levenson
University
up a
a very few
years built
volume that represented over
25%
of
all
the
all the bars sold
retail
through
outlets in the
coun¬
try," he stated.
Meeting the Threat of TV
"A
cooper¬
attend¬
pro¬
said,
"I
to increase
few
ago, the theatre
hit by the advent of
television; sales dropped and the
industry
yearsi
was
candy bar manufacturer also suf¬
because
fered
millions
of
consu¬
being kept from the
the sale of candy bars than by in¬ point - of - purchase."
Steps were
taken in two directions:
first, to
creasing the attendance in mo¬
attract to the stand a larger per¬
tion-picture theatres. Our poten¬
tial increase in attendance is prob¬ centage of those who were inside
ably 100%, and any amount that the theatre; second, to make a
it is increased will reflect itself larger unit sale to those who were
in
no
surer
way
candy sales because of the di¬
rect
relationship between attend¬
Almost
were
mers
buying.
"The first
was
accomplished by
adding to the appeal of the candy
and sales."
ance
100% of the candy sales
stand
wherever
possible
and
by
the
low-price
judicious
use
of
impulseexciting trailers and short inter¬
candy bars more
effectively, theatre owners in re¬
by making available higher priced
items, particularly in attempting
in
made
ture
the
average
theatre
are
in
moving pic¬
the
missions. The second
To merchandise
cent years
in
made large investments
in
conspicuous lobby locations, mod¬
ernized lighting effects and added
glamorous
stands,
set them
attractive attendants. To build
re¬
peat sales, quality
of¬
10
♦CHARLES A. DICE
"the sale of candy in thea¬
1935,
tres within
Waldorf-
through its advertising
ance
the
of
With this new approach to mer¬
chandising, which got its start in
Associa¬
Astoria, New York City.
Urging the industry to
fered.
State
candy
bread
Chairman
Owners
Ladenburg, Thalmann & Co.,
Ohio
and
like
Leon J. Levenson of the American
New York City
The
no surer
way of increasing sale of candy bars
by increasing motion-picture theatre attendance.
bar field, he noted.
loan
PP- 165-169, Robert A. Love, Fede.rai Financing ^Columbia Univer-
a
Boston
H.
ERNEST L. BOGART
f
rates
Northwestern University
DOUGLAS
than
our
securities
redeemable
ciation there is
nation
redeemable
a
f efforts and strength of the
department it was impossible to
keep up Wlth thp subscriptions for
and
Candy Go Hand-in-Hand
J.
Levenson, Concessions Chairman of the Theatre
Owners of America, Inc., tells National Confectioners' Asso¬
bene¬
only if
to
enjoy
able
are
Leon
much
as
obtained
be
people
Treasury
Of
best
difficul¬
The maximum
rency
?
the
These
ties should be minimized
as
fits
Movie Attendance and Sales
huge volume of
a
at
"My published
through banks, as able in irredeemable currency as
21 members of compared with those on the same
Resolution of May class of bonds-payable in coin or
Congress in a
11, 1953, is regrettable.
was
magnitude, but
cherished.
sons
blessings
From his
example,
for
bonds
monetization of
York
n<
effect
object to high-
rising interest
Treasury endeavors
serve
posi-
in
New
Vol
who
Treasury
vestments
Business Organizations
Chicago, III.
present Treasury officials in com¬
differential
since 1941
theory
Conference of American
Small
High Point College
JwHAROLD
SAXON
University
H'R. HARLAND SHAW
GEORGE H. HOBART
JOHN
St., New York City
GLENN
Yale
HAUHART
Southern Methodist
their
truth they
0j jroriy Years'in the House, Senand Cabinet (The Werner Cd.,
These economic distortions, if not
degression
The
with
76 Beaver
OLIN
Emeritus, School of
Business
had
of watering the*
circulation in order to quicken in¬
iri his Recollections
a^e
banks.
effectively checked, tend to culminate in unhealthy boom, fol-
did.
thinking
after resumption of spe-
wj10 observed
arising from the purchase of Fed¬
eral
things
And in
unfortunately,
This fact was clearly illustrated
{-,y ^he Treasury's experiences be-
by
and
numberless
of the gravest
government se-
there
If
wealth, however, could
accumulations.
the
rates
qualities
quantities
Reserve
created
are
low
do
sound
c^e
of
owners
relatively low rates of interest by
and
bonds.
Dean
in
ties for them to purchase, then the
bonds would have been sold; the
the
of
its
the
hesitate
to
nothing beside public securi¬
their
not to
are
use
and
Non-
2, 1879, as
eminent
frees
itself
from
the
revealed, for example, by John
pressure which savers should be
Sherman, Secretary of the Treasable to exercise through interest
ry> March 9> 1877—March 3, 1881*
rates determined
buying
distrust
to
many
irredeemable.
investors in
curities
gold
securities
led
government
College
College of the Pacific
University
F.
RIDEN, JR.
LELAND REX ROBINSON
tHUDSON B. HASTINGS
WILLIAM
PHILLIPS
University of Iowa
tO. H. RITTER
Ridge, III.
Yale
A.
West Virginia State
American Institute for
Economic Research
States From 1861 to 1885 (D. Appleton and Co., New York, 1886),
Book I, p. 107: "The issue of paper
money
NEAL
E. C. HARWOOD
by
purchases when
is
currency
such
in
To induce them
those required
upon in part as fol¬
Albert Sidney Bolles in
his Financial History of the United
lows
GARIS
Park
PHELPS
CHARLES L. PRATHER
The University of Texas
University
Economic Consultant
were
W.
The State
ALFRED P. HAAKE
relatively
of
rate
v
PATON
CHESTER
University of Southern
California
commented
been
that the principal of, and
flow- fore
consequences
ings from the fact
are
of
rate
of gold,
ounce
predating
evils
The
the
at
demands
of
use
ment must pay
.
and
unsound procedure,
an
people's savings, it
be expected that the govern-
is to
enhanced,
general should be greatly beneTreasury
turns
from fited,
if this nation's currency
free and open markets were promptly made redeemable
by banks is
and
could and should be lessened,
ury
the prospects of success in selling
its securities "to savers at rela-
be
to
ROY L.
cur¬
A.
University of Southern
California
FITZGERALD
University of Texas
and New York
j
University of Michigan
Alexander Hamilton Institute
a
at¬
illustrated by our Treas¬
ury's attempts in 1864 to sell some
'
is
it
rency, as
of
The problems of the Treas-
when
tempts to market its securities in
terms
ANDERSON
PALYI
PARKER
CLYDE
*|MAJOR B. FOSTER
.
labors
1 W.
University
The
j
University of Pennsylvania
•
Buffalo, N. Y.
v
government
$FRANK
ICHARLES C. FICHTNER
was relieved, and refund¬
ing at lower rates of interest was
University
NIEHAUS
Chicago, III.
,
vestors
R.
MELCHIOR
ELLSWORTH
Yale
New York, 1918), 6th ed.,
"The apprehension of in¬
p.
W.
MURPHY
University of Colorado
,
FRED R. FAIRCHILD
History of the
(Longmans, Green
States
FRED
Co., Inc.,
Tarrytown, N. Y.
Financial
and Co.,
University of Rochester
E. W. Axe &
authorizing the
issue, Davis Rich Dewey observed
United
(II) Both the Treasury and Fed-
D.
|
S.
Seton Hall
Brigham Young University
the
United
been made in law
in
College
AUSTIN
WILLIAM F. EDWARDS
States,
other provision had
except when
The Pennsylvania State
University of Texas
The
19
$DAVID H. McKINLEY
§WILLIAM E. DUNKMAN
in
all
DOLBEARE
♦tJAMES C. DOLLEY
The
payment
B.
University of Florida
Writing of the consequences of
passing the Act of March 18, 1869,
which pledged the faith
of the
Policy point out difficulties confronting Treasury in avoiding
forts
ognized
by
Congress
when
it
passed the law of March 18, 1869,
promising to redeem all United
States
Monetary
on
(363)
a
The
cents
to
shopper
with $5 or
candy
consumer
with
spend is just
for
value
was
as
5
or
much
the one
as
$10, Mr. Levenson said.
to convert
as
10-cent sales
many
as
was
was
achieved
5-cent sales to
possible. This
done in most theatres by re¬
ducing the number of 5-cent items
was
carried
ber
of
larger
sell
Mr.
and
increasing the num¬
items, and in the
houses by attempting to
10-cent
15-cent
and
Levenson
tioners.
25-cent candies,"
told
the
confec¬
Financial Chronicle... Thursday, July 30, 1953
The Commercial and
■J
(364)
20
expansion of production, for one
cause or another, to a point where
dustrial productive capacity must excess supplies have exerted pres¬
be increased by some 20% to the sure upon prices and have resulted
much
narrower
margins
of
end of achieving a "guns and but¬ in
Generally speaking, the
ter" sized economy iri which we profit.
could be industrially and militari¬ actual changes in volume of sales
ly
strong
without denying the have not been great in the afore¬
distorting the supply and demand
ratio was the decision that our in¬
Continued from first page
Pioiit Margins
forces:
large expansion of productive facilities. A close study of the oper-
,
(i) Great
also
raU"s\l)eS maPrket"CtTt £v also
perspective
equipr
^pment> aut0 and other duraWe
to an investing public
accustomed to
£°ods\
forced-draft operations
(4) Accumulated
become
has
■which
u
^
^
t
began
needs.
Economic Conditions
Increased
16)
weight of over-sup¬
ply of products are largely those pears not to be an accident for a
operating in the capital
goods recent study by a well-known
ply /demand relationships in most
industries have been profoundly
might be styled
disturbed by what
ing and distillers groups encoun¬
tered similar conditions. A few
ships have been attended by wide
p r i n c i p a 1 exceptions were in
housing, household equipment and
automobiles where the boom was
changes in the commodity price
structure, the wage rate, the cost
Merchandise
unnatural
as
non-recurring
or
relation¬
stimuli. These disturbed
of
living
and,
latterly,
continued
the
prolonged
being
the basic
by
plant.
the
stimuli
these
endow
to
for
It has become hard to be¬
force.
lieve that these conditions
a
had
not
are
Then
of
permanent
a
we are
sition
emerging into
now
period
where
supply and demand
to exert
Actually,
nature.
increasing
the
are
a
demand relationships
by ab¬
In the year which
followed June 1950, a business and
consumer buying spree set in. In¬
pressure on our
dividuals
in
some
The
which
profit margins of 34.4% in the
However,
period.)
effects
erosive
the
der
un¬
of
keen
competition, surplus stocks and a
minor decline in sales, the
companies in Gorup I suffered a
subsequent shrinkage
in profit
margins in 1952 amounting to an
very
figure
average
also
was
in
the
a
There
37.6%.
of
contraction in margins
Group
companies
II
it averaged only
but
17.1%.
sharp
In this connection, it is important
relief
already to note that, in Group I, four out
suggest other of five of the industries in 1952
to
yet
economy
come.
recording margins of profit
their
average
experience
were
below
These
the
in
identical
have
may
our
197
figures
set
are
percentage
to show
up
changes—up
down—which have occurred
industries
different
and
41
over
long period of
a
Con¬
years.
versely, in Group II even though
has
been
a
in 14 there
shrinkage in
and
com¬
margin in every industry except
machinery, the margin of profit
panies with respect to sales,
gins of profit and pre-tax earn¬ in 1952 remained well above the
ings per share in the years 1949 to average long-term experience
1952, inclusive.
The
companies in every group except chemicals.
of
brought much higher market
of
these
price
normal forces.
of
rather
place and
top
presented below
are
in
no
the
margins.
profit
tables which
changes
dence
in the economy were upset
beginning
from
already occurred
in
the
tion. By late 1952, there was evi¬
again the
supply and
tran¬
laws
Korea and
erosion
taken
p^es f°rmines P™d"cts bringing
the back into produc¬
high cost
reestablished.
came
has
there
sales
of
there
or
that
shows
service
companies operating in 30 indus¬
tries recorded an average increase
had
A condition of balance
year.
been
shrinkage
little
been
date
to
statistical
creased demand for lead and zinc
Prices and living
had been virtually stationary
costs
has
changes
balanced budget.
extraordinary longevity and
•with
in such groups, even though
forth
production had grown up to its definite effect
upon the sales of
money supply. The money supply
farm equipment. Similarly, in the
riod
of national emergency has was no longer rising because the
mining industry, the sharply in¬
been protracted and intense has government-11 was operating on a
tended
or
set
ply. 'inventories were in normal declined
and, within a few months,
relationship to sales. The country's
this condition began
to have a
rate. They have also been
attended by rather large changes
in the margin of profit in most
"businesses. The fact that the pe¬
»«oney
con¬
both. In some of these
latter groups, civilian demand for
durable consumers' goods makes
up
a
good-sized portion of the
total. It is interesting to note that,
struction,
During 1952, evidences of agri¬
cultural
surpluses began to ap-
of all
in relatively free sup-
kinds were
and profits for
manufacturers
Prices fell
leading
plant
armament,
dwindled.
credit.
easy
goods
and
drug
a
level of expendi¬
high
for
tures
industry
had been built-up during the v/ar found that competition had
be¬
had been satisfied and the great come
increasingly keen in the
bulk of the post-war plant expan¬ field of anti-biotics, where there
sion
had
been
completed. The had been a terrific expansion in
the sup¬
the close of World War II,
fields where the demand for their
shortly afterward, the floor cover-
later
profit
ating
sales widened by 35.2%.
felt the
date
first to reach this P°sition and>
months
In both groups, oper¬
as a
percentage of
(This ap¬
two groups.
which have not to
groups
price products is being sustained by
and
accumulate
to
demands weakness began to develop. The
textile industry was among the
export
background material for a for rehabilitation and relief.
discussion of this type, a brief re¬
m Fasv credit nolicv
(7) Lasy cieait poncy.
view of economic events and con¬
By
1950, the picture had
ditions is illuminating. Such a re¬
view makes it abundantly clear changed. A large part of the acthat during the
years following cumulated consumer needs which
As
An
show that increase in sales
not
The
„
A Review of
competition.
years.
by uj,
demand
jn production. The productive
«s a
normal and everlasting ex- business for new and larger plant ou^put jn some lines, principally
j>ectancy, and wide profit margins facilities, labor-saving machinery, consumers'
goods, by mid-1951
.as
a
felicitous companion piece etc.
had attained a size where it had
■to this condition.
(5) Inventory
replenishment outstripped demand. Inventories
regarding
experienced any inventory
problems or felt the full impact of
1952,
covery
tog prominently in the increase
The very rapid speed-up in demand was eventually accompanied
by an equal or even greater speed-
balanced dlvl.aua*s *0*
a
had
which
been any significant re¬
Group I, however, the subsequent
in the price of the prod¬ decline in sales from the peak
ucts of these industries, with the
year has averaged 11%
whereas
result that margins of profit have there has been no measurable de¬
now fallen to or below the normal
cline in Group II. With respect to
margins established in a freely increases in profit margin, there
competitive market in these in¬ is likewise a remarkable similar¬
dustries over a long
period of ity in average experience in the
has
lines with inventory profits figur-
demand by in-
(3) Accumulated
It may
help restore
to
any
analysis of the tables will
volume
of varied considerably industry by
population.
fact, on a unit basis, today's level industry, but that the average in¬
The response to this extraordi¬
of production in some cases is as crease
in
Group I was almost
nary upsurge in spending (within
_
_
great as it was two years ago. It identical with that of Group II
\2 months our productive output is noteworthy, however, that there from 1949 to the peak year. In
growth in the nations
.ating records of leading companies money
supply, resulting from increased by $56 billion) was a
«n these industries during the past
monetization of war deficits.
precipiate
rise
in commodity
three or four years, may possibly
^) Large accumulated savings prices. We had again a "sellers'
afford some sort of preview of frovm the war years, individual and market" and profit margins exwhat could be in store for those corporate
panded very sizably in nearly all
«erve
have experienced
decline in sales and
not, at the close of
yet
as
if
mentioned groups. As a matter
civilian
following
balance by the
from a out of
resulting
products
their
in a
Bayers' Market
which
little
accumulating
Their
metals.
has
been
surpluses
very
decline
in
sharp from
among the largest and
and, in each instance,
occupy a leading position in their
respective fields. Some! industries
deterioration
in
the
posi-
are
strongest
excluded
been
have
that time forward.
The
selected
mar¬
from
tables, I have marked with
asterisk those industries whose
margins
With
above
average
in
increases
to
respect
earnings
the
still
are
experience.
mean
or
the
notably rails, utilities and
insurance. In these fields, the sell¬
study,
f*on of some of the above named
industries has stemmed from over-
bought in anticipation of
In the
an
share before taxes,
experience of the
per
average
ing price of the service or product
companies in Group I closely ap¬
is
not
directly
responsive
to
proximates that in Group II, the
changes in demand and supply but increases
being 75.7% and 79.3%,
ished
materials
against possible trends resulting in the creation is set by regulatory bodies. Also
mo longer growing in force.
respectively. The subsequent de¬
future shortages and, on a larger
.
no
figures are presented for the clines in
In the pre-Korean years of the
per ^hare earnings (pre¬
scale, the government began to
excess manufacturing capacity, following industries because the
tax) have no similarity. In Group
j^ost-war period, the supply/de- stockpile strategic materials. Of Basically, however, the weakness
changes in their profit margins
I, earnings have dropped by an
«**and relationships were thrown equal or greater importance in in each case has arisen from the particularly, and sales to a lesser
average figure of 45.6% against a
extent, were not remarkable or
15.2% decline in Group II.
Statistics—Sales, Margins, and Pre-Tax Earnings—1949-1952
significant during this period: con¬
One can be reasonably sure that
<HtOUP I: Industries which have already felt effects of one or all of following: over-production, decline tainer, food, grocery chains, vari¬
under the conditions now in pros¬
in price of products, etc,.
ety chains, tobacco and depart¬
pect there will be no significant
's-,
ment stores. The auto tire, house¬
% increase
% increase
profit
and
price
where
the
structure
and
stimuli
unnatural
are
future
for
needs
durable
^
goods,
Businesses stockpiled raw and fin-
optimistic
projection
existing
of
.
in
% increase in
to hi. yr.
of
Subsequent
on
sales from 194E>
Subsequent
sales to 1953
1950-51-53
.
per
in
earnings
hold
sh. (Before
1949 to hi. yr.
profit
pre-tax
1950-51-53
margins to 1953
Subsequent
% decline in
taxes) from
% declines
to hi. yr. of
% declines in
1950-51-53
in
profit
margin
sales from 1949
earns,
sh. to 1953
per
equipment, motion picture,
equipment, radio and rail¬
way
equipment
industries
all
showed
wide
changes in sales,
office
an
industrial
in
increase
that
we
can assume
heading into
are
of at least
for
output
indefinite time. We
period
a
moderately lower busi¬
8.7
+ 17.0
—21.8
+
£>teel
+51.4
+ 51.4
—10.7
+ 45.0
—42.5
+ 110.0
—53.6
activity. This assumption is
profit margins and pre-tax earn¬
well grounded
in the following
ings and if included in the list
facts:
The
residential
building
would only serve to supplement
boom has definitely turned down¬
and confirm the evidence as re¬
•Textiles
+22.0
—13.7
+ 53.5
—58.2
+
92.5
—61.7'
vealed in the broader fields chosen
+34.9
+ 34.9
—11.0
+35.2
—37.6
+ 75.5
—45.6
for this study.
Agricultural Equipment
—16.0
+ 17.0
J3rugs
+45.4
+39.0
• >ead
&
Zinc
Average
LIST
OF
+ 15.0
—33.0
+
21.8
—40.0
5.7
+ 45.5
—32.8
+ 106.0
—35.0
48.5
—37.6
—
—
COMPANIES
FOR
EACH
INDUSTRY
An
ABOVE.
Harvester; Drugs: Abbott Laboratories, Merck, Parke Davis;
Jgead & Zinc: American Smelling, St. Joseph Lead, Consolidated Mining; Steel: Bethlehem, National, Allegheny-Ludlum;
Mills, Celanese.
Analysis of Sales Volume
This study
dustries
shows that
in¬
peak in
some
their
attained
Also in
as
1952, experienced the full impact of competition
% inciease
in
% increase in
sales from 1949
to hi. yr.
of
1950-51-52
+ 20.8
+ 37.5
+ 45.2
+ 58.5
Electrical Equipment
in
profit
margin
persh. (Before
Subsequent
% declines
taxes) from
% decline in
% declines in
to hi. yr. of
in profit
1949 to hi. yr.
sales to 1953
1950-51-52
margins to 1952
1950-51-52
on
+ 20.2
None
*—28.8
+
+31.6
*—27.0
+
67.5
—18.6
+ 23.8
—24.3
+
81.0
—26.0
None
+ 35.4
—22.8
+ 111.0
—19.5
—
1.2
,
*—
7.0
None
+ 51.0
None
+32.2
+ 11.5
None
+ 53.8
*—23.9
+32.5
Average
•Above
None
+ 43.6
*—13.4
+37.1
mean
margin
'•
°r'
*pmen
.
:
+
None
98.0
—
+
4
None
77.0
—25.2
+
79.0
—
*—17.1
+
67.2
—17.0
.5
+ 35.3
—17.1
+
79.3
—15.2
—
OF
COMPANIES
FOR
EACH
Building
INDUSTRY
Supplies:
Copper:
ABOVE.
Johns
Anaconda,
Manville,
Kennecott,
U.
S.
Gypsum,
Phelps
Dodge;
Electric, Square D, Westinghouse; Machinery: Caterpillar, Food Machinery, Ingersoll Rand;
pears Roebuck; Oil: Gulf, Phillips Petroleum, Socony Vacuum;
6.0
+ 25.5
emicals .-Allied Chemicals, Monsanto, Union Carbide;
General
t*J
7.0
+ 106.0
now.
LIST
r
*
None
Chrys!ler, General Motors, Nash Kelvinator;
'
earns.
sh. to 1952
—17.4
3.9
—
+ 34.2
+20.2
pre-tax
per
27.4
+ 73.5
_______
age
earnings
Subsequent
sales f»-om 1949
Subsequent
Paper:
leveled
tion
is
is true with respect to pre¬
American
Electric
Mail Order:
Crown Zellerbach, Kimberly
earnings.
ture
in all
cases
in
are
its
high
are
plenti¬
out
upon
relate
and
the
Administra¬
seeking to cut them by a
substantial figure. Exports
decline.
the
of
strained
Hence, the percent¬
increases
figure of
is
Inventories
goods of all kinds
the margin of profit widened fairly
quickly than in others. The are in
tax
% increase
expansion under
necessity
ful. Armament expenditures have
more
some,
yet have experienced little, if any, decline in sales and which had not,
at the close of
and
of
stage.
same
Statistics—Sales, Margins, and Pre-Tax Earnings—1950-1952
Industries which
Industrial
certificates
sales earlier than others.
•GROUP II:
ward.
final
Agricultural Equipment: J. I. Case, Deere, International
Textiles: American Viscose, Burlington
ness
by
debt
The
credit
country
years
and
been
pi!h;g debt
of
the
struc¬
has
Fedaud
Re¬
1949 with those of serve Board has been actively
the peak year of 1950,1951 or 1952. working—and w th some si ccess
stop the dangerous spiral.
The percentage decreases in all —to
instances relate the peak year with We are in a position from which
further expansion in the economy
1952.
the
The
vided
includes
two
those
have already
or
can
hardly take place r,t any
are
di¬
Group I early date and from which some
industries
which contraction is a logical expect¬
studied
industries
into
groups.
ancy.
felt the effects of one
all of the following conditions:
Industries Which Have
Already
1
capacity,
Undergone Adjustment
product and in¬
This being the case, tbr recent
tense competition.
The steel in¬
history of companies
dustry is included in this group, operating
not because of any of the above and industries which have a heady
undergone an adjustment is of
reasons
but merely to illustrate
especial significance. It tflords
the effect of a small drop in sales
suggestion' of what may be iu
over
-
production,
over
-
decline in price of
resulting
from
work
'
stoppage.
Group II includes those industries
store
for
those
joying .the
groups
fruits J of
a
st.U
en¬
Volume 178
market."
of
The
in
even
Number 5242
industrial
ble for
of
that
high rate
a
activity, it is possi-
number
a
experience
shows
record
midst
the
The Commercial and Financial Chronicle
...
of industries
decline in sales
a
aging 11%. It also shows that
conditions
have
to
aver-
as
increas-
become
ingly competitive, there has been
a
shrinkage
of
profit margins
back to
below the average ex-
or
of
long period of time,
This narrowing of profit margins
has produced
in the industries
penence
studied
45.6%
an
average
shrinkage of
in per share profits
This is
taxes.
The
a
erative
but
within
a
very
before
large figure,
profits tax is still
excess
is
scheduled
months.
six
op-
to
The
which
the
earnings
after
excess
In
of
this
matter,
earnings per share were off
Ingersoll Rand sales drop
24%, its margin of profit
was
for
32% under the
was
result
ings
following tables, I have
presented
data
on
major corn-
was
share.
per
Montgomery
Petroleum
The
By
earn¬
situation
This Week
and Phillips
considerably less
earlier paragraph, consumer ex¬
penditures for non-durable goods
ning measurably above the
did
gins
which
their
operations
of
have
10%
long
a
I" have
reduction
in
not
pe-
these
of
from
in
out
1937
there
was
companies.
of
26 %
This favorable investment position has also received
increased
from supervisors of trust funds and in the effort
by
states to liberalize investment
regulations with respect
attention
These influences
of
the
excess
profits
tax
Jan.
be
about
Federal
hypotheti-
the
average
dustry.)
income
taxes
in
rate
a
of
for
to equities, insurance stocks have
generally been given preferred
consideration. Ima number of
instances, specific legislation has
been passed
Montgomery Ward
34.8%.
Phillips
similarly
30% below the
in-
various
decline in per share profits
margin
of
the
mean
and
pre-tax
markets.
brought about a
in margin below
shrinkage
the
for
fell
In
this connection Massachusetts and New
Jersey recently
enacted laws permitting savings banks in those states to
purchase
insurance stocks which meet certain requirements.
than
more
or mean
and
profits per share fell 31.3%.
The eligibility requirements of the Massachusetts statute
pro¬
insurance company—
/
Summary
Schedule
.•
Auto
Sales
share—1952
per
"Less
10 %'
Mean
Estim.
After
Oil
$144.06
$52.96
per
84.27
129.66
14.3%
17.9%
8.2%
9.46
15.08
10.56
5.62
4.73
7.54
5.28
*4.16
6.07
6.82
6.34
5.98
of
11.8%
12.81
earlier
study
5.36
the
1952
+5.6%
—3p.6%
+19.0%
—11.6%
the
-
The
supply/demand
been
unusual
obtained
this
on
would
be
little
a
in
stimuli
at
demand
of
excess
side
and
the
of
on
profit margins in almost every
industry in periods of 10% or
greater
order
that
for
sales
the
mobile
listed
usually
ratio.
mean
and
30.5%. In the mail
The
auto-
groups
such
heavy payprofits tax that, under this method of estimate, the
projected earnings per share
of
ers
are
excess
the presence of these stimuli
in
drop
in each group would
show the following results:
company
Schedule
General
,
Johns
Less
share—1952
pre-tax
After
50%
Actual
Ward
outbreak of war
Phillips
$
Percentage
•At 26%
$80.19
$166.80
72.18
155.20
of
11.9%
15.1%
,sh._
27.2%
7.6%
The
in
the
14.8%
11.76
8.27
19.63
11.37
9.81
5.68
*4.87
6.26
7.14
10.08
7.41
5.17
—42.0%
—2.7%
—23.4%
—5.8%
of
gram
was
of
has, of course, no way of
whether or not a 10%
tailment of capital expenditures
became the order of the day. Sums
drop in sales is more or less than spent for new construction by ina
reasonable expectancy.
By the dividuals and corporations fell off
same token,
one cannot say with
10% from the preceding year and
any assurance that the long-term
expenditures for capital goods and
ratio of profits to sales will be equipment dropped 27%.
Investmaintained in the presence of a ment in inventories declined very
knowing
rearmament
our
dedicated
enlarging
our
capacity to
into
a
of over-supply,
developed, profit
gins
local
creased
uidation,
declining
bank
loans
and falling commodity prices. The
change in the rate of spending of
the general public, however, was
not remarkable.
there
was
personal
Actually,
1938,
less than a 4% drop m
consumption
expendiin
tures from the 1937 level. Similar-
Ly' fuers°nal 1+ncom+e' as computed
by the Department of Commerce
was
only 7.6% under the levels of
1937
prosperous
Consumer
ex-
governments
little
a
bit
actually
in
1938
in-
the 1937 figures,
however,
rp^g stucjy js not made with any
0£ suggesting that the ex-
perjence 0f 1933 will be repeated,
However, it is not impossible that
tapering
price
our
0perating'
loss,
sales
1938
of
the
—
'38
from
five
experience
1952
pre-tax
1938
decline
%
from
share of stock.
*At
the
case
Petroleum
—22.0%
—24.0%
none
—5.8%
$60.28
$61.00
$166.80
$46.61
4.1%
18.6%
5.8%
produce all
$9.47
$11.34
$9.67
$2.83
$1.24
—82.5%
$5.67
$4.83
their
products. They will feel
increasingly the
pressures
of
com¬
—44.0%
—34.8%
1
$4.80
than
*$3.55
—31.3%
under the
margin of profit one-third
share
mean
decline
of
Paul
stock.
and resulted in
in
earnings
Johns
•
*
Fire
Marine
&
Insurance Company.
Westchester
Fire
Insurance
Company.
The New Jersey legislation has three principal
requirements.
(1)
1
the
business
in
Company must be authorized to
New
transact
insurance
Jersey.
Capital funds including special surplus funds should at
least equal $20 million.
(3) Cash dividends
of
the
five
The
previous
the stock must have been paid in each
on
preceding the date of investment.
years
no
provisions of the New Jersey statute
official list of stocks
lished,
the major
of
most
are
insurance companies
liberalization of legislation
believed
to
in these two states, together
with other recent changes, should help to create
in the stocks of insurance
are
'
,
The
broad and while
meeting the requirements has been pub¬
qualify.
a
wider interest
companies.
NATIONAL BANK
OUR
Bankers
to
the
Government
Head
Office:
In
India,
Pakistan,
ANALYSIS
at
City
Bank Stocks
26,
Will
Ceylon,
Aden, Kenya, Tanganyika,
Uganda, Zanzibar, and Somali-
&
17 N. Y.
in
Bishopsgate,
London, E. C. 2
Branches
MID-YEAR
COMPARISON
of INDIA. LIMITED
land
a
suggestion that in
market,
the
high
profit
a
buyers'
margins
which have obtained will not per¬
Motors,
Company.
Company.
be sent
on
request
Burma,
the statistical record carries more
of General
Insurance
Kenya Colony and Uganda
output. The evidence available in
on
—54.5%
St.
petition in the marketing of their
,
.
54.5%
a
able to
10.3%
—34.0%
34% drop in sales was attended
by
now
than the market will take
of
Phillips
Ware}
tax.
In
a
26%
are
ap¬
—
building,
oil indus¬
even
or more
C
Montgomery
tax—
'52 earns.
automobile,
tries
per
$5.77
earnings
after 50%
The
earnings
Rand
margin
Earnings
kets.
steel, copper, and
Ingersoll
Margin—1938
There is thus a strong pros¬
that, the
pattern
already
startling results with respect to
10.1%
'37
Fund
the full force of competitive mar¬
1952
are
Springfield Fire & Marine Insurance Company.
ap¬
companies mentioned
th
Johns
for
to
following insurance
a
of
$57.14
adjusted
begun
of
the
Phoenix Insurance Company.
in¬
pros¬
situation
t
Manville
exDerience
in
are
evidences
other lines which have yet to feel
those
Motors
1952
have
off
further
no
demand
where
economy might
go
through pect
acjjustment, in the next year or traced in the textile, drug and
so
proportions as great as in
distilling industries may, in some
1938 In
event the application
degree at least, be repeated in
of
the
General
sales
pear.
where
in
and
point,
a
of
Northwestern National Insurance Company.
mar¬
an
Schedule
%
creases
pect,
reached
now
stocks
eligibility requirements and
Insurance Company of North America.
(2)
have
j^ea
d^ppeUdei7.6%, howevlr, against a(b°J,e is produ,f'"e J*50™ rather
only a 3.8% decline in
expenditures for non-durable goods. Cur-
We
the
above
Merchants Fire Assurance Corporation.
tained.
over
that
the
meet
Hartford Fire Insurance Company.
squeezed and
were
understood
Great American Insurance
the
situation
is
Firemen's
flooding stream
of production. In some industries,
such as textiles and drugs, a con¬
dition of shortage gave way to
weakness
senior
Federal Insurance Company.
time, these
facilities began to pour their
new
output
other
proved for purchase by the Massachusetts savings banks.
pro¬
of
earnings
moderate sales decline.
Actually, sharply. As a matter of fact, the declined. In other
industries, not¬
it probably will not. It may be of change in inventories represented
ably those tributary to construc¬
some interest, therefore, to transa more sizable figure than , any tion, consumer durable goods and
late the actual experience of some other component of the Gross Na- armament—or all
three—the tide
recession year to present figures, tional Products computation for
of demand continued to rise rapid¬
The
1937-1938
period has been 1938.
1
ly enough to meet the increase
chosen for this study. In that pe- (
Expenditures by the Federal in output and relatively high mar¬
riod, there was a short but sharp Government and by State and gins of profit have been main¬
recession in business in this coun-
It
companies
task
course
or
security outstanding.
pro¬
the
to
preceding the date of investment.
There must not be any preferred stock
na¬
by gov¬
prodding, for the initial
ernment
phase
tax.
try accompanied by inventory liq-
(8)
celerated and accentuated
6;59
4.13
Dividends in cash must have been paid in each of the
ten years
of plant expansion
increase
duce. In the
One
property damage.
(7)
tion's productive facilities was ac¬
—6.4%
decline
in Korea. In the
an
wave
a
in.
set
44.54
5.88
per
profit,
$4?.48
69.56
tax
share—-1952__
per
$77.28
sum
ever-widening de¬
mand for goods of all types and
a
highly satisfactory margin of
Petroleum
77.89
profit margin—%
Estim.
Montgomery
Rand
$86.54
10%
Mean
Ingersoll
(6) At the end of the immediately
preceding year, the capital
including voluntary reserves shall be at least 80% of the
of all unearned premiums on fire
and allied risks, plus onehalf of unearned premiums on accident
and health policies and
policies covering liability for personal injury or
funds
month period which followed the
B
Manville
Motors
consolidated
profits per dollar
earnings would be 11.6% and in
of sales in nearly all business rose
the oil group, the decline would
to levels considerably above the
be 22.4%.
normal experience. This was par¬
Application of this same hypoticularly pronounced in the 12thetical * condition to
a
leading
presence
Sales per
(5) Of the twenty-five largest companies, the company, on a
basis including subsidiaries, must be
among
the
twelve having the highest
operating profit ratio for the previous
five-year period.
;
.
and
the
pressures,
well
drop
classification, the
Massachusetts*
pany
those
of
indicates
machinery
above
the
on
examination
decline
margins
below
probably
are
side
in
(4) At the end of the immediately preceding year, the com¬
must have been one of the twenty-five largest American
fire insurance companies as measured
by total admitted assets,
and a majority of its stock must
be owned by more than five
shareholders.
re¬
sulting in rising prices and all of
reported in 1952.
In the
the other phenomena peculiar to
building equipment group, howa
sellers'
market.
Tables
have
ever, the shrinkage in profits per
been presented to show that in
share would be
postulation
liberal
insurance
(3) Not over one-third of net premiums written must have
been for automobile
liability lines in the same five year period.
the
equation
fire
year
lines.
non-re¬
work
In the five
period immediately preceding the date
of investment, not less than
50% of net premiums written by the
company and its subsidiaries must have comprised fire and allied
following the end of
II. Throughout most
eight-year period, there
this
of
—22.4%
Be authorized to write
(2)
War
curring
results
(1)
relation¬
years
World
tax.
26%
paragraphs of this
a discussion
ships in industry and business in
have
•At
vide that the
devoted to
are
46.67
9.1%
tax
over
66.14
sales
6.41
$
Actual per share—1952
•Change
Mail Order
$93.63
share
profit to
50%
The
Mach.
$73.48
140.49
ratio
pre-tax
A
Bldg. Equip.
$156.09
permitting institutions such as savings banks to invest
portion of their funds in certain fire and casualty issues.
a
Petroleum's
norm
more apparent and with the needl
additional capital, wider publicity has been given
position of the various companies in the industry.
attracting
to the investment
however, a period of inventory
liquidation, falling prices and in¬
competition
Insurance Stocks
insurance business has become
was,
tense
—
The shares of the larger companies because of
their long
records of earnings and dividends have been
accepted as desirable
issues for pension funds.
At the same time the growth of the
very
It
JOHNSON
investment interest in fire and
casualty insurance stocks
has broadened considerably in recent
years.
-
in the sales volume
two
E.
The
an
significantly in
levels. Thus, it is
strange that
little decline
projected
sales
pointed
decline
not
1938 from
characterized
over
years.
mar-
As
H.
of
Ward
was
different.
1, I have subjected the
earnings to a 50% levy,
(In the oil industry, I have applied a 26% tax since this appears
re-
Bank and Insurance Stocks
and the
mean
44% decline in
a
panies in five industries which
have not yet experienced any materjal
adjustments in sales and
whose margins of profit are run-
experience,
any
and
82.5%.
jn
to
for that
in prospect
be
may
by 22%, its margin
profit fell 66% below the mean
of
ination
Hence, the significance of
pre-tax figures as reported
Translation
sales declined
of them,
some
on
here.
or
of
sales for the margin shown
in 1952. Then, assuming the elim-
moved.
the
affairs
1952 levels and have substituted
the long term mean ratio of prof-
future,
however, this cushion will be
the
to
its to
reported in
are
taxes.
declines
a
have already occurred, for
press
experience
companies and industries not yet
encountering fully competitive
conditions points up the possibility that very substantial earnings
ri0d
die
profits tax has served to disguise
many
of the earnings
declines
per share
cal
a
per
Mansville
sist and that they
a
measurable
power.
will experience
decline
in
earning
Protectorate.
Authorised
Paid-up
Reserve
Capital
Capital
Fund
£4,562,500
£2,281,250
£3,675,000
Laird, Bissell & Meeds
Members New York
Stock
Exchange
Members
Stock
Exchange
BROADWAY, NEW YORK 5, N. X.
Telephone: BArclay 7-3500
(L.
A.
The Bank conducts every description of
banking
and
exchange
Bell
business.
Trusteeships and Executorships
also undertaken
American
120
Teletype—NY
Gibbs,
Manager
1-1248-49
Trading Dept.)
Specialists in Bank Stocks
The Commercial and Financial Chronicle..
22
(366)
rail
lower priced
attracting greater speculative interest in the past
week or so.
However, even with
the increased
buying they have
been doing very little pricewise.
This is particularly surprising in
in
are
Eastern looking forward to between $11.50
£ar more constructive to the
and $12.00 a share, before funds, cornmon stock than would be the
spectacular year-to-year earnings this year.
payment of sizable dividends at
gains in recently issued June and
Despite the prospects tor nigh
time
Moreover, as debt and
six months'earnings reports. June, earnings (perhaps close to 50% of cbarges are reduced the day when
of course, reflects the serious ad- what the stock has been selling
rp,triotione
wiii
be removed
verse influences of the steel strike
for) there is little likelihood of the restrictions will be removed
a
year ago but even discounting anything spectacular in the way moves closer.
.
the /case
major
the
of
*
Continued from first page
It
We See
As
dividend
necessitated by the
sinking funds
provided for in the
company's
debt readjustment plan of a few
going to remain high in the final years ago.
Nevertheless, it is
quarter, the second half should pointed out by analysts that use
show a continuation of <the yearcash for such purposes works
to-year earnings gains. While the ^oward
consistent
improvemanagement apparently remains merd 0f ^he road's credit standing
conservative with respect to earn- ancj fundamental status of the
ings prospects, many analysts are junior equity. In the long run it
policies
the
conservative
heavy property and
Baltimore & Ohio
of
resumed
with a
expected
generally
is
The
1953.
year
$0.75 a share and a
distribution, or perhaps
similar
which have been reporting
roads
■
of
payment
$1.00,
road
last
late
dividends
stocks have been
The
dividends.
of
Some
.Thursday, July 30, 1953
i
_
with
confidence, however, that unless the Commission is
given substantial responsibilities of this sort, its oppor¬
tunity for real service will be rather severely limited.
This would be true
even
if the Eisenhower Administration
to prove
the exception to the general rule of the past,
and proceed to take positive and constructive action upon;
were
receiving the report of the body. This idea—and practice,
for that matter—of having an independent
group study
the organization of the national government, now grown to
,
<
mammoth
proportions, and recommending reorganizations
would eliminate duplication of function and waste"
which
of all sorts is
least.
of
set
half
one—a
a
century old at the very:
study after another and one'
one
after
recommendations
and
with
old
an
During that time
forgotten.
another
have
been
toyed:
"
>
.
months results
that factor the six
More Is Involved
continuingWfrend "toward^greater NYSE Governors Approve
New Commission Rafes
operating efficiency.
There
be
can
,
earnings, also reflecting
that July
year's steel strike, will make
good reading. Probably the
.
favorable comparisons will conThe Board of Governors of the
tinue into August and even in the New
York
Stock
Exchange has
last five months of the year there approved a new schedule of minilast
very
should be
in
material contraction
no
earnings.
cast
a
road
the
For
as
year
a
safe to forehew all-time high in rail-
whole it
now
appears
Some of the big-
earnings.
gest
gains
percentage
in
1953
earnings will be witnessed in the
speculative
more
of
group
car-
riers.
feeling
railroad
growing
is
among
in
and
the
improving earnings
Also,
speculative
sentiment
is
quite apt to strengthen as it becomes
apparent that the Korean
truce
not
is
to
going
sharp cut-back
any
raent
program
industrial
result
our
in
bring
or
appreciable
any
recession
m
arma-
with .it
in our
One of the
that has been
in the past week or so,
but which
selling well below its 1953
high percentagewise, is the
stock
mon
of
Baltimore
in
0ver-all
an
week
com-
poi[cJ
or
so
that
stated
indicated
writing. Howago Mr. R. B.
of
the
preliminary
June
net
road,
figures
of $3
income
million which would represent an
increase of nearly $2 million over
the like month
a
earlier.
year
about
of
dSing
of
ble to encourage
added
transactions
As compared with a year ago
Baltimore & Ohio did not, as did
own-
$1,000
involving
wnilif]
,PQt:
widespread
of industry," Mr. Funston
"commissions mn
most
ersbip
hp
or
„nehingeri
or
The first provision relates to
execution on
the Exchange
the
of
than 1,000 shares of a single
security for a single account,
either on a single day or pursuant
to a single order. The rate after
the execution of the first 1,000
shares would be 80% of the regular commission. The second provision relates to the execution on the
Exchange of both the purchase
and sale of a single security for
a single account within fifteen
more
'
,
.
.
,
,
of the customer, been delivered
°V/t or transferred to his name,
The commission on the liquidating
transaction would be 50% of the
regular commission plus $2 50 for
100 shares or $1.50 for an odd-lot.
rates apply. Neither of the lower
.
* The schedule includes two in- rates of commission provided for,
novations: a discount on volume jn sub-paragraphs (b) and (c) of
transactions and a discount on section 2 (a) (1) (iii) is applicatransactions completed within 15 bie to a "bunched" order.
If a
days.
The proposed new rates call for
amendment to the Exchange's
1,375
firm
person,
A
members
must
vote
on
majority
of
whom
firm
member
a
account
is
for
acting
caries
minimum commission, unless the
members firm is advised that the
a
majority of those voting must
for the amendment tq
effective. Members have
two weeks in which to vote; if
a
majority has not voted within
that period, the voting is extended
automatically for another t w o
ultimate
approve
the lower rate of commission,
weeks.
in both the Majority and Minority
become
i
rates
have
cated in
and
been
entitled
floor
and
to
brokerage
revised
as
indi-
Sections 2
represent
areas.
is
customer
Clearance
(b) and 2 (c)
increases in most
These rates
were
suggested
the
c
less,11 would be the
aid
of
But when all that
opening
result
months
As
a
report' plus minority
recommendatlons> were sent to the
CHICAGO, 111.—Smith, Barney
earninlq at thP mit«Pt
cnml membership for their comments.
—
-««««.", u«u,w
lowertin tw
The Board evolved the new sched- & .Co. announced that Charles R.
in the e^lv month, nf tow More ule after studying the Committee Wilson has been appointed Manrecent
months
however havo reP°rt and analyzing the views of ager of the Municipal Department
task
resumption
a
X
declines
have
made up and
management
o7?hf:,nS
been
based
at
than
more
on
the
announcement
ings for the six months
cated
modest
earlier
recent
earn-
indi-
are
roundly $13 5 million
or
.nearly $3 million higher than for
the first half of 1952
The
year-to-year
Baltimore & Ohio's
increase
in
earnings
in
the first half of the year is
equivalent
to
approximately $1.15 a
share
full
on
share
stock. In the
the
road
of
$9.74
If
to
the
do
no
lost
a'
work
share,
reserve
of
year
more
than
performance of last
would
reported
sinking and other
funds.
were
common
1952
earnings
before
the
the
year
1953
match
year
out to $10.89
a
this
share
the firm's Chicago Office, 39
a lar§e cross section of the mem-
South La.Salle Btre®t .His Previ"
bership of the Exchange-
Commissions under the proposed ous associations in the investment
schedule wiU be determined much banking bus ness included 14
as they are today-based upon the years with Glore, Forgan & Co.,
amount of money involved in 100 where for a time he was in charge
shares or less. However, for simthe Municipal Department, and
Plicity> the commission for a *lve years with The Milwaukee
round lot or odd lot is in an even Company. Since 1950 Mr. Wilson
doliar amount.
The maximum has, been investment counselor
commission on any single round- Wlth the United Insurance Comlot or odd-lot purchase or sale Par,y ln Chicago.
would be $50- The maximum per
share rate for odd-lots would be Osborne Nichols Joins
but the Present $6 minimum
F. S. Moseley & Co.
per transaction would be retained.
Commissions on transactions involving less than $100 would be
as
mutually
agreed.
Where
amount of money involved
round-lot or odd-lot is the
the
in
a
same,
Osborne D. Nichols is
.
now
Article XV, as proposed there are
provisions for two special rates.
was
of what
traditional American ideas
with
ought to be.
The question is
mission of the sort
of the
small
govern¬
an
now
one
open
as
to whether a Com-'
being launched
can
in the nature;
far in this direction and have its rec-:
ommendations accepted by the politicians who have thecase
final say.
go very
The personnel of the Commission is apparently
a
view to giving its conclusions political
,'
with
chosen
potency. There seems to be an admirable balance between
the
two
political parties
on
the
one
hand and between
politicians and more aloof students of government and
social philosophy in general on the other. Such a group,'
one would suppose, should be able to formulate a national
policy in such matters as.these which would command the*
support of intelligent men.
*
But what is
of it if it
being asked of it—or what is being askedis expected to deal definitively with these more
basic
questions—is hardly less than the formulation of a,
If that program is of a sort to save this
country from the damnation to which it has been sentenced
national program.
by New Deal and Fair Deal nonsense, it would have to be ;
sold to
large elements of the population which still cling
Utopian notions of Roosevelt and his followers. This
to the
is
essentially
and the
task for the Eisenhower Administration
a
Republican party, and for those enlightened and-
disgusted elements in the Democratic party which are sick
and tired of lyhat the Roosevelts and the Trumans have:
If
asso-
Task
for
the
Administration
the
program
design of President Eisenhower is to have a
formulated such that he can undertake to lead his;
party to
accept it or the larger part of it—and one in ¬
cidentally which the so-called conservatives of the Demo-.
cratic party could be persuaded to support—one must
applaud the effort and wish it the utmost success. Neither;
the President: nor any of the others must for a moment,
however, overlook the fact that the task of seeking and;
gaining followers for such a plan must be the work of the
statesmen of the country—in this instance the President
of the United) States and those immediately around him,
-
along with influential men in both houses of Congress. It
is
precisely here that Republicans at both ends of Pennsyl-;
vania Avenue have been most inclined to wince and relent'
and refrain.
rather
than
They have,
more
some
Let
.
us
so
it has often seemed to
us,
been
reluctant to proceed with vigor in this area
of the abler and
Democrats such,
constructively minded
Senator Byrd.
more
for example,
as
not deceive ourselves. We still have
a
Veterans
ciated with I. b. Moseley & Co.,
14 Wall Street, New York City,
Administration which is spending billions of dollars in get¬
members
ting and holding the good
of
the
New
York
and
owe
and August, and growing
evidence that steel
operations are
Hoover Commission.*
has been ac¬
ment
that
in July
new
today is cutting back the functions of government to
accord
0
earnings trend
the
be done in this way
by comparison with what is needed. The paramount
A
what
^n
can
effective and successful with the
as
complished, it would quickly be found that it
indeed
Smith, Barney & Go.
majority
more
body such
some
n
in the
(progress without doubt. It will,:
done to their party.
in
traffic^ declined appreciably
some
suspect, make more as time passes.; Its efforts, doubt¬
we
an
the member firm must charge the full
of the Exchange
the proposal and
making valiant effort to get some meas¬
efficiency into Federal Government oper¬
ations. It has made
the
others,
its comP®tito!;s» start out
a Special Committee of Ex- Committee reports tfent to
iw J!1 ^yrtS1^eu
iar ™ai?ner* change members and allied mem- membership earlier.
Hnin
wlvSi! •
??n bers studied the question of comwith
Sii/?ec0-n+
missions for nearly a year before
and
With
dlcfrl i
winter, submitting their findings to the G. R. Wilson Joins
ters r Lrk nff1nvpn?nHlqU^
Board last APril- The Committee's
io w
for
corporation
or
of order and
ure
today
great deal more than this. The present Adminis- \
a
tration has been
,
<
•
a
involve
In no transaction may both special
1
iower »
Ohio.
&
yet been released
President
of
revenues
firms. If approved, the
rates would become effective Aug.
Constitution.
ever, a
mem-
member
June had not
White,
increase
commission
in
an
as
the
to
approval, Keith Funston, President, announced July 23.
Th'e new [schedule of rates, Mr.
Funston
estimated, would result
The final figures for this road for
at the time of this
sub-
and
rates
schedule
bership for their approval or dis-
economy.
speculative issues
attracting the attention of traders
it still
of the Executive Branch of the Federal Government
calendar days, provided that the
17, instead of Sept. 1 as previously customer identifies the liquidating
contemplated.
transaction and that securities
picture.
«Tn keening with the Exchange's
Purchased have not, at the request
other
financial circles, that the market
is not apt permanently to ignore
analysts,
the
mitted
15%
The
commission
mum
Butj the vital problems of reform and reconstitution
l
_
Keith Funston, President of New York Stock Exchange, estimates new schedule will bring in 15% additional commission
revenues of member firms.
Membership to vote on proposal.
but
question
no
Nichols
was
formerly with A. M.
Kidder & Co.
i
by
will of veterans who must know stretch of the imagination does their country,
thislcind of special treatment. We still are pour¬
no
them
ing billions abroad in many kinds of extremely dubious
undertakings. We still are subsidizing the farmer to the
Volume 178
Number 5242... The
Commercial
and Financial Chronicle
(367)
tune of billions of dollars. We still have such
meddling organizations
Commission
of its
We
still
social
and
have
well
as
an
as
its direct activities
be extended almost
higher productivity
indefinitely.
of ex-President Hoover
of
really
can
cope
with the hoe
his output
with the problem
from
14
page
NEW
can
OFFICERS, ETC.
fully in the
of
The
Chase
greatly increase New
York
run
a
tractor.
National
has
Bank
announced
appointments
new
to
and
,
of
five
promo¬
Vice-President
1
to
greater
Com¬
education
for
young men and women to prepare
for a life work, is
adultweducation,
Mr. Craver
are
lic utilities
department, Mr. Clark
in the bank's pub¬
in the bond department. Ward K.
Moore and Louis B. Roth, also of
vocational, managerial and cul¬ the bond department, were
tural, which can lead to better pointed Assistant Cashiers.
jobs with their greater earnings
'!•
*!»
Can We Get America to
Chattanooga,
manufactur¬
yarn
according to the Philadelphia
"Inquirer."
ers,
ft
ft
ft
t
The
were
Kennedy Buell, William C. Clark
rising trend of productivity is the and Harry S. Craver,
previously
increasing proportion of our in¬ Assistant Cashiers. Mr. Buell and
spent for education.
of
its official staff. Advanced
on
Second
One of the processes to assure the
panion
Bankers
and
CAPITALIZATIONS
advanced
man-hour until he
per
BRANCHES
REVISED
tions
comes
Continued
CONSOLIDATIONS
NEW
would enable him to
great service in getting us started in that direction.
a
News About Banks
the
has the skills and education which
getting rid of these octopuses. They would, however,
do
of
American production methods.
It
is difficult to see how the man
that set up now under the direction
as
to the root fact
and abilities, to share
We must confess to considerable doubt whether
any
such Commission
But to
workers, by virtue of their skills
the list might
so
which
power
put at their disposal.
matter, the way we bring about
this improvement is by the train¬
ing and education which allow all
outrageously extravagant compulsory
security system in operation. And
improved machines
increased
get down
included.
are
the
the
are
costing billions of dollars if the indirect effects
operations
of
cause
outrageously
the Securities and Exchange
as
capital of the Upper Darby
National Bank, of Upper Darby*.
Pa., has been enlarged from $875,000 to
$937,500, the increase, as of
30,
having
been
brought
June
about
by
stock
a
dividend
of
$62,500.
ft
ap¬
*
*
Frederick Deane, Jr., of ArlingT—
ton, Va., has been named Assistant
'•»
power.
sources
Live One-Thiid Better?
For
to
as
we
improve
find that
these
use
our
re¬
The
the
to
appointment of Hugh F.
as
an
Assistant Trust Of¬
abil¬
own
President of The
Virginia,
according
Bank
to
ot
anr-
an
Coyle
nouncement on July 27 by Thomas;
ities, we
we have gen¬
ficer of The Public National Bank C.
Boushall, President. Mr. Deancv
erated
an
asset
which
itself and Trust
keeping with the standards of ad¬
Company of New York will begin the new assignment at
becomes one of the sources of ris¬
distribution analogies to the con¬ vancing
selling
techniques, in¬
was announced on
July 24 by E. the bank's 8th and Main Street?*
cept of efficiency in production. cluding intelligent tie-in with the ing production and rising stand¬ Chester
Gersten, President.
office in Richmond on Aug. 3. A.
ards of living for the Nation.
What we are looking for is in¬ advertising
and other merchan¬
*
ft
*
native of Boston, Mass., the new
While education may be consid¬
creased distribution productivity, dising programs of their firms.
The
Harvard andt >
First
National
Bank
of assistant attended
ered by some as an end in
whereby the dollar effort does a
itself,
(Nassau
County)
New majored in economics. In 1951 he*
Increased Income Through
it is not that aspect to which I Inwood,
more efficient job as measured in
York, now has a capital of $350,- was awarded a Master's degree?
Increased Investment
address your attention. Rather, it
reduced
unit
distribution
cost.
000, the amount having been in¬ "with distinction" from Harvard
aims
toward
This will end up in more goods
Now
the
third
technological
im¬
prong
of our
creased from $250,000; part of the Graduate School of Business Actand services being sold at lower three-pronged, challenge
has to provements, improved technical
increase—$50,000—resulted from a ministration, where he had beewt
unit prices.
do with the matter of increased skills, improved managerial capa¬
This has been our
stock dividend while the further accepted at the end of his junior
long-run road to success in mass incomes with which to provide for cities at different levels of re¬ addition of
$50,000, came from the year.
increased investment, production sponsibilities.
:fe
*
*
production, mass distribution, and
sale of new stock. The increased
It
looks
to
healthier
mass consumption.
and distribution. A maximum use
people, capital became effective June 23.
Barron F. Black, of the Norfolk*
of
healthier
of the labor force potential is one capable
*
*
relations,
ft
Distribution
and
Va.
law
firm
of
advertising
Vandeventer,
of our economic frontiers.
This is whether these be as between em¬
are thus on the threshold of their
A stock dividend of $10,000 has Black
&
Meredith, has beea
not only in the role of people as ployees and employers or as be¬
served to increase the capital of elected a member of the general
greatest challenge—to understand
tween
merchandisers
and
con¬
producers and consumers, but in
and execute their economic
re¬
the First National Bank of Glen Board of Directors of The Bank,
distribution
thinking and develop
sponsibilities
the
in conformity with
production, investment
high
and
consumption
able
by
our
necessity if
we
utilization of
is
country
our
is
for
full
This
resources.
in
the
a
the
assure
needed
now
attain¬
This
to
are
sales
necessary
targets
economy.
period
in
their role of income
meet the
tion
sumers.
To
earners.
It
production and distribu¬
goals,
earnings
must
can
Upgrading of individual
power, related as it is to
apace.
earning
Head
looks
of
ment
grow
the
to
greater
the fruits
the
enjoy¬
Ameri¬
of
earning power,
large degree to improved tech¬
nology—newer, better, more pro¬
ductive machines—bears most im¬
All
in¬
creased drive for
a
productivity, in¬
efficiency in distribution.
creased
of this then
is
to
realize
the
ever
increasing American poten¬
for the ex¬ portantly in achieving its goal.
Better technical skills, improved tial through the incentives of pri¬
advertising and sales¬
vate capital and free
enterprise.
manship are perhaps greater than technology, reduced work stop¬
at any previous time.
One reason page, whether by better laborimproved
for this is the need to satisfy 28 management relations,
which
opportunities
ercise
of
million
in
people in
more
1950,
1960 than
compared with
as
ulation increase
tween
1940
reason
is the
of
and
19
the
a
Another
in the world
■demonstration of
and
dynamic econ¬
and
SAN
the
atomic
of
use
the
electronics
new
vestment
be
can
stated
that
qualified
merchandisers, salesmen, advertis¬
ing men, research and sales ex¬
ecutives
are
among
the
most
incomes
fore.
the
which
did
not
Brix
.
i
•'
York
and
for
LOS
M.
of
National
ft
As
of
ANGELES,
Anderson
*
July
Rutherford
Rutherford, N. J.
increased its capital from $500,000
$750,000 by a stock dividend of
$250,000.. Earlier this year
the
Rutherford National obsorbed the
North
Arlington National Bank of
North Arlington, N. J., an item re¬
with porting this having appeared in
the Angloour issue of April 2, page 1446.
ft
National
has
Pa.,
Bank
with
added
to
those
who
in
the
qualified to enter
are
stance
instance
after
profession
now
—
The
possibilities
ities
are
considered
and
unlimited,
as
opportun¬
I
am
sure
had
of
the
were
stockholders
of
The ironic and inconsistent part
this
entire
situation
is
that
while
creased
Bast
productive capacity
our
has
units
in
excess
decade,
numbers
fbeen
sales
our
of
power
salesmen
increased
30% in the
not
in
been
in¬
of 100% in the
apparently
has
between
only
25%
and
period. We
or
minimize
same
temporize
in
able
to
take
better job
a
is
of the responsibilities we must
one
of
It is tough on the
who loses his job. To make
face.
But
the
drive
must
go
for the continued reduction of
on
un¬
factories, mines, offices,
government,
machines
tasks.
through
and
even
of
systems
for
such
For then the machines must
be
built,
must
be
sold,
must
be
vital
responsibility of all of us in serviced, must be operated — all
isalesmanagement, to stimulate and higher operations than the un¬
effect substantial
•efficient
distribution
products to the
markets
increases in the
in
many
our
of
old and
expanding
to
ductivity
great
strides
improve
of
sales
the
have
With the
new
econ¬
implication of increased unit
ductivity,
greater
earning
is inherent in the
While
made
skilled jobs supplanted.
more
omy.
been
sales
personnel,
pro¬
The
upgrading of earning
will
be
in¬
greatly
education of
people, much remains to be done
ple
each
in the stimulation and
motivation
son's
sales people to improve
more
many
their
selling
"know
how"
ih
Financial
one
ANGELES, Calif.—Julian
has
become associated
Walston
Spring
with
Co., 550 South
He was formerly
Hexter &
Co.
Co., A. W. Morris
Daniel
and
Reeves
Co.
&
that
effort
is
hour
able
a
per¬
because of the processes or
skills and
abilities
as
well
as
be¬
Pres¬
Consho¬
merger plan
Conshohocken will receive
of
shareholders
National
will
retain
their
present certificates.
"The
subject
is
merger
shareholders
banks
both
of
to
approval
and
of
Day Co. Adds
to The
BOSTON,
Financial
Mass.
—
is
approved, Mr. Potts said, the entire staff
National
First
of
at
their
of
Conshohocken
present
posts in
will
the
en¬
*
the
New
ft
York
and
July 24 issue, the Phila¬
"Inquirer"
delphia
reports
National
Bank
approved
Philadelphia
of
plans to
increase
to engage
in
a
ers
Road
securities business.
Wall
Street
from
in
offices
New York
nen
is
a
a
Securities
securities
at
City.
44
Wall
at
for-3.
$30
on
increased
from
effective
June
$600,000,
23.
became?
Details
of the*
to
enlarge the capital
peared in our issue of May
page 2226.
With
of
by
a
21^
*
*
addition
an
$100,000
ap¬
to
its
capital
dividend^,
stock
Commercial National Bank ft*
the
Muskogee,
from
increased
Okla.,
of its
amount
capital
on
ther
June 36*
$400,000 to $500,000.
ft
ft
^
As of June 19 the First National
Bank
Trust
&
in
Co.,
AshevilHv
N.
C., reported an increase of
$100,000 in its capital by the sale*
of new stock, bringing the amount
of the capital up to $300,000 fron*
the previous amount of $200,000-.
ft
ft
ft
A stock dividend of
the sale of
about
the
an
$25,000, arwl^
stock also to the*
new
of
amount
$25,000,
has
brought
increase in the capital oJt
First National Bank of Padw-
is subject to
stockholders and
Comptroller of the Currency.
by
*
*
Co.
is
more
•
He
the
was
was
formerly
Bank
at
from
tion
from
additional.
ft
The
&
on
74 years of age.
an executive of
Standard-Coosa-Thatcher
*
Lubbock, Texas reports as of June*
29
a
capital of $1,500,000, theamount
having
been
increased;
*
Philadelphia, died
ft
National
000
the Swarthmore National Bank
Street, July 18. He
Robert H. Bren-
ft
First
The
the
than twenty-five years of
Trust Co. of
effective June 25.
come
ap¬
basis of 1-
The plan
proval
of
business
principal of the firm.
share
a
William A. Thatcher, a director
Wall St. Sees. Co.
engaging
of th#*Liberty National Bank of Chicago.
plans
capital
$1,000,000—part of the addi¬
($300,000)
having resulted
a stock dividend,
while the*
sale of new stock provided $20(V-
of additional shares to stockhold¬
GROVE, N. J.—Brown,
Engel has been formed
Westland
ft
ft
$1,000,000
that
the bank's capital stock from $3,-
Brown, Barton & Engel
55
States^
cah, Texas, from $100,000 to $15(1-
ft
758,750 to $5,000,000 through sale
offices at
United
well in various^.
as
•.•t
The.
the directors of the Central-Penn
have
Boston Stock Exchanges.
Barton &
Maritime Law-
the
of
000, the latter amount having be¬
its
In
L.
Day & Co., Ill Devonshire Street,
of
the Conshohocken office."
charge of
Day has joined the staff of R. L.
members
its counsel. Mr-
as
and he is active
of
Chronicle)
Robert
of the*
other organizations.
the
larged bank and Mr. Horsey will be elected
of Philadelphia National in
R. L.
(Special
serve
Association
Comptroller of the Currency. If the merger
by
produce
of
the
Vice-President
our peo¬
of
to
Bank
under
share of Philadelphia National for each
of Conshohocken held. Philadelphia
continue
with
power
National
that
share
&
Street.
said
shareholders
Chronicle)
Fleg
with
&
to The
CEDAR
power
advanced
training and
so
pro¬
jobs.
new
cluding wholesale and retail sales¬
of
LOS
F.
in
use
the
can¬
this
(Special
skilled and low-skilled operations
in
on
First
of
hocken,
Fleg With Walston
will
and
First
Conshohocken,
Philadelphia Na¬
phia National and Donald P. Horsey,
new
a
process
existed.
person
him
.you agree.
or
Chairman
named
*
of Philadelphia
by
both banks
ident
machine
apparently
iby many as comparable to medi¬ eliminating jobs, only to create
cine, banking, engineering or law. many more jobs than theretofore
this
been
bank's Advisory Board in Norfolie.
of
the
approved
!jt
merger of the
a
tional Bank
Calif.—James
been
ff
July 21. In its is¬
ceed without violent changes in the staff of First California Com¬ sue of July 22 the Philadelphia
United States today—and in the
Incorporated,
647
South "Inquirer" said;
the course of the economy.
1
Over pany,
world today.
Never before have
these 60 years we have seen in¬ Spring Street.
"Frederic A. Potts, President of Philadel¬
there been such opportunities for
"commodities"
needed
¬
by Thomas C. Boushall, Presi¬
of the bank. Mr. Black alsp*
American Bar and
ft
the
1
Exchanges.
Chronicle)
ac
announcement July
dent
has
to
Bank.
Financial
an
the
Plans for
to The
Virginia, at Richmond, Va.,
cording to
$250,000 having brought
Black is a member and former
increase, as a result of
President of Norfolk and Portal
which the capital was raised, as
mouth Bar Association, a mei**of
July
20,
from
$500,000 to
ber of Virginia Bar Association^.
$750,000.
about
previously
First California Adds
(Special
capital of the
First National Bank of Mt. Vernon,
N. Y., is announced, a stock divi¬
dend
of
10
ft
An increase in the
' ■".
be¬
continuing adjust¬
ment, but this is always a sign of
healthy growth when it can pro¬
Stock
was
California
Doubtless, they also create
need
New
Schwabacher & Co. and
.
personal
Francisco
Mr.
develop¬
exist
the
San
chemical
therefore
and
of
ft
National Bank of
Chronicle)
FRANCISCO, Calif.—Mar¬
members
products
new
Financial
Montgomery Street,'
possibilities of private in¬
processes,
to The
tin H. Brix is now with Dean Wit¬
ter & Co., 45
the
to
competitive private enterprise.
It
to
pursuits of ments, create new opportunities
under conditions of free and for profitable employment and in¬
devoted
peace
a
(Special
steady gains in real wages,
earning power.
dustrial
our
today, and the importance of
which
upon
*
Joins Witter Staff
are
individual
The
vastly increased role
of the United States
omy
build
in
other factors—these
or
cornerstones
pop¬
million be¬
1950.
health
(Nassau County), N. Y., on
July 13 from $170,000 to $180,000.
made possible by the
economy
upgrading
of
Co.
the
of
new
Crocker
San
from
ft
ft
capital
$8,000,000
First
Francisco,
$6,000,000 by
National
Cal.,
a
of
Bank
increased
stock divi¬
effective
dend of $2,000,000, became
July 3. Details of the plans to erv-
large
our
the
capital
issue of
were
given in.
July 2, page 24.
*
/
24
The Commercial and Financial Chronicle
(363)
V
...
1953
Thursday, July 30,
%
The
Now E. M. Saunders, Ltd.
in the
with offices
will
By ROBERT R. RICH
Metro¬
semi-annual
Building.
in
Shares,
share-
to
report
months
six
first
"The
NATIONAL'
"Bond
downward
STOCK SERIES
been
has
irregularly in progress since 1946.
old. Stock prices, after
highs for some years
early January,
have
subse¬
quently followed a moderate but
making
new
from your dealer or
NATIONAL
RESEARCH
SECURITIES &
CORPORATION
the report says,
have
the time, the means, the sources
Established 1930
120 Broadway
new York 5, n. Y.
•
———"'mm&mm
■-
.■■■■■■■»■■»««
other
hand, the mone-
value of all the goods and
services
produced in the nation
leached
all-time high in the
a new
months.
six
The
agedlom^o/m
Ife
^ Si
except that of World War II. Cor-
1952,
.
there
.
are
cautious,
with
are
"Such
1928
FOUNDED
come
your
or
be
in
the
.
.
the
liberal
yields,
.
—
Kodak
some
term
caution, it is
the
stocks
M—1-"%"—
Northern Natural Gas
believes
tries
the managethat common
provide
excellent
American
in-
Shell
Oil
the
com-
pany
tne
in
its
three
quarterly report for
months
ended
8,500
Shoe
^'ooo
Corp
Com
ler Corp
con.
m.
Nat.
___
Bk.
•
Tr„
Chi
owens-iiiinois Glass Co
long-term
average
growth
of
earnings,
Shawmut,
trend
subject
be
~
in
in
common
stocks; 9.19%
in
eon-
report
8.24%;
to
food,
6.01 %;
building,
4.71%; beverage, 4.69%:; and auto-
rulings, the Fund will still be re-
quired
Other of the larger groups
included electric utilities. 10.73%;
oils, 7.69%; electrical equipment,
Canadian
15%
Henry T. Vancej President, says:
accordance with
these new
mobile, 4.03%.
t
share-
withhold from
—
0f
5,800
23,000
inc.
in
.
THE...MINNESOTA'Fund Annual
13U
Payment of the 16th consecutive
the
fimitaUonS119 and
3®
Rayonier,
the
to
"In
aoo
Boston—
better
the
'
nadian companies will no longer sets.
2^o°S
of the stocks in port-
have
~
million.
Report covering the last fiscal
opinion of our year was sent yesterday to shareSold
counsel, any amount so withheld holders residing in more than 20
5 00Q
may
be used by United States states. The report shows that the
500
shareholders as a, credit against Fund's assets have increased to
1,100 Fpdprai income taxes within the over $1,200,000.
Consumers Power company—
Nat.
to
slightly in excess of
Notes—$9,560,ooo
s LES
n
Ch
June
pattern of the Trust.
said
, The report showed investments
diversified among 82 different se'J
n"
■
— net
curities with 89.79% of — assets
funds
17/400 fr0m net investment declared
holders^^15^% of dividends income.
Machinery
Almost 40%
be
{our
withholding tax.
5,500
W~"
versmcation
than
was
However,
30,
1953, calls particular attention of
sharehoiders to the present di-
folio
in3the
o(
CANADA
8,452
and
largest open-end investment
•%iil
$99
'
700
INVESTORS *uui«n onuc mutuutttt,
General
Motors Accept.
oldest
30,
rose
asgets
16,900
rr.
imvpctapc
nation's
in the 12-month period
June
June 30
Company
?T°^thf nA Co' 77
United
Aircraft
-United
Trust,
Airline
seaboard
vestment attraction."
MASSAniTKFTT*
the 807,828 shares then outstand*and with $15,135,481 on Dec*.
1953, when the 31, ^nnr^Uai!
Ju 3 s^are on
from 7,793,132 to the 882,764 shares the*1, outstand¬
number of shares
greatest
was
outstanding
5,000
leading American indus-
still
•.
To°oo
'
AvTaiionll—"IIIII
no.
will demonstrate
ment
j
D
year-ena.
'
Middle so. utilities—
_
°'*M'
represent sound values which time
stocks of
ended
11,000
Pet.- Co"
Mid-Continent
portfolio
.
The
issued
2-9°°
K™ger company
confident
the
rnore shareholders and 3% more
nntctanHinp
than
at
the
'Shares outstanding than at the
.chnrpc
»
New"Jersey^nc
.
very
in
+
GENERAL FUND, in vertible and other prefer reds; and
13',9Cio its first annual report to share- the remainder in cash.
3,2oo
holders, expects that as a result
Among the industry groups rep20000
ta* rulings recently received, resented in the common stock
"siooo in the near future dividends and holdings, the largest—in railroads
21.000 interest from its holdings in Ca- —amounted to 10.82% of net as-
Shares particdegree in the near
that
share of the
acceptance
of
mutual
an
investment medium."
A 9% increase in assess was re-^
At
the
nresent
time the four corded
by the Fund in the 12
f
,
have outstanding 10 172 123 months ended June 30, 1953.
The
.
consisting of 5 547 361 of increase brought total net assets
*
' T
f d. 1398494 0f on that date to $14,984,542, equal
United Accumulative'fund; 2,506,- to $15.84 a share on the 945,259
76"l "of United Science fund, and shares outstanding. This com719,577
of
United
Continental ^ares with $13,653,174 on June 50,
fund
1952, equal to $16.90 a share on
as
3|85°
Co.———
American
ipates to
W. Linton Nelson, President, re*
ported that the Fund now has 6%
.
ing 10,172,123 shares.
Fo°d Mach. & chem
"Thus, while the management of
Selected
growing
moo
Eastman
this week.
Reed
Mr.
sr
14.788
Co.
industrial Ray,9a Corp.
.
the
closed
FUND
DELAWARE
„•
xr
•
3,60o
Co.......—
Edison
comm.
managers,
'proportjonate
.
th
ouuu
15,000
"
present earnings after taxes.
.
,
with regional and
u
e
8,000
gSSa Klic utim
;
10%; pipe lines, 5%; railroads)
4%; chemicals, 4%; steels, 3%;
automotive, 3%, and utilities, 3%.
said the four funds have made
100
Aluminium Ltd.
are
.
.
percentage of total assets: oil,
18%; forest products, 12%; mining, 12%; stores, 10%; finance,
/'shareholders of
«exCeDtional strides and have had
Bought
& Dye—
well covered in most instances by
,
purchases of
value
represent,
and
that for
notes
quarter covered
Allied Chemical
at moderate
properties they
also
company-
future.
today
of
portion
some
purchases
basic
By historical standards, stock
prices seem comparatively low in
relation to earnings. Dividends afford
In
funds
report
to
are
ratios to the probable book
of
ad-
.
with
Canada General Fund wds
classified as follows, in terms pf
of
investment trusts in the
di^sionM
at
stocks by the Trust were almost
three times greater than sales of
stocks. Portfolio, changes for the
three months ended June 30, 1953,
were as follows:
necessary
as
faced
sell
"Stocks
investment dealer
philadelphia 3, pa.
the
to
be
may
adjustments
can
confidence
Prospectus from
The
who have mis-
short period ahead.
a
was
same
good
are
their capital."
the
respect
justments which
the four.
even
nArtiArr
com
for
investments
people who
many
many
givings
for
imroctmonte
dividends.
of
true
the
and
companies
investment
profits after taxes were
probably a little above the first
of
However,
counsel.
that the shares °* well-managed
p
it
freer econ-
.
THE NUMBER of
to do this work
limited few do
necessary
vestment
porate
half
investment
the
or
n
u
a
l- .f
£ V
keen.
ness
avfr" T?* ^ relativelVmallf<clasds
™7
f°^
1935 39
Tnet hi^
'
index
FRB
share, declared July 7, 1953,
At the June 30 year-end, the
major part of investment portfolio
first half of this year with more
successfully.
A
United Funds grou<p has increased shareholders
and
more
shares
have
the
time, the means and from 8,089 to 52,500'. in the last outstanding than at any time in
other essential resources or can five
years,
Cameron
K.
Reed, its 15-year history, according to its
afford
to
retain
specialized in- President, announced today.
semi-annual report made public
acumen
tary
last
s5jS;;KiK;«M»«»
the
information
of
persistent downward course.
"On
transition period to
a
vestois,
in
Prospectus
year
totalled 19 cents a
including the dividend for
the final quarter of six cents a
.
Commodity prices declined further
in a trend which is now more than
two years
INVESTMENT FUND
A MUTUAL
which
move
invest-.
late
until
fiscal
n^ent companies are able to pro- 0my with less government control
Vld? investors-with expenenced and more dependence on the
H<fkThan forces of supply and flemand. We
^"f.b
,and'"I
may expect a return'to more nor^m manlw mal conditions with nearl.V a11
{SSI own investments. °rvw In consumer goods now in ample
their
Tew in- SUppiy and competition for busi-
the
continued
prices
Fund
the
share,
sajd jn part: "We seem to be in
other seasoned open-end
nomic trends.
year-
securities were
Canadian
for
bought
of business generally the report
and
Trust
Investors
sachusetts
n0
juiYi 1952.
Dividends from the
net earnings of the Fund for this
five
the past
investment in their shares, Mas-
1953
of
period of conflicting eco-
a
vola-
more
,
holders says:
were
the
while
30
end
cyclical issues, including
share. As
had 15,395
report states that
marks the fiscal
The
june
re-
airline,
aircraft
manufacturing,
years.
automobile and auto parts, cement,
The quarterly report also em- paper,
railroad equipment, and
phasized the fact that through steel shares.
' . ■
redemptions for
of
President
American
Selected
of
RUBIN,
P.
in
were
and
principal
The
stocks.
ductions
tile
EDWARD
of June 30, the Fund
shareholders.
telephone, tobacco and electric
utility
the
politan
the
under
Saunders Lim¬
the name of E. M.
ited,
Limited
conducted
be
asset value of S8.62 per
summary
in? common stock
during /the six months:
principal increases were in
The
formerly known
King
Saunders,
henceforth
this
gave
shifts
holdings
Mutual Funds
announced that the in¬
vestment business
as
M.
Canada—E.
TORONTO,
Saunders
report
the
of
General Motors Accept. Notes.—$7,970,000
the
Internal Revenue Code.
"This
will
mean
that,
for
quarterly dividend marks the bethe ginning of the Fund's fifth year
■
firsHimeT^bh Tmerican
of
company
can offer a
managed portfolio of
Canadian securities which can be
operation.
Total dividends for the last fis—
cal year amounted to 36c a share
purchased on the same tax basis from investment income and 34c a
as individual Canadian securities." share long-term capital gams,
Canada General Fund for the
The percentage of assets ingood
appreciation
possibilities
boosted total net assets year ended June 30, 1953, reports- vested in leading upper midwest
CKleallSationseCThe bZe on June 30' last' t0 $252,483,390 total net assets of $18,456,416 with'companies is larger in Minnesota
kof about ;25% accormL m the f™m $246,183,017 at the close o£ 2.140,809 shares outstanding, a net-Fund than for any other mutual
triesS returning5"a
(I™ 8
income
average
higher than
and
with
A $6,300,000 GAIN in assets was
*
rate
Wellington
d
six
%nths
of
Fund
l953
in
The
.
report,
believed
are
better
than
bility
as
whose
favorable
Total
Net
1'
v>'»F
GENTLEMEN: At
jC-i
me
a
-
had
These
no
obligation please send
Canadian Fund.
gains
Nome.
City
per
share
shares
outstanding.
of
14,789
in
shareholders
was
any
of
1953
ciation; and 11% in cash and gov-
ernments. A total of 30 industries
was represented
in the portfolio
first made up of 321 different secu-
were
the
the
lar-
first half-year period
the
Net asset value on June 30, 1953,
company,
average
Manhattan Bond Fund, Inc*
w
percentage
P R O S P E C
ES
AVAILABLE
FROM
YOUR
ON
LOCAL
THESE
MUTUAL
INVESTMENT
FUNDS
DEALER.
OR
rities.
the was equivalent to $19.58 per share
reported.
Redemptions of on 12,897,173 shares outstanding,
shares for the same period were This compares with $20.87 a share
at
a
lower
than
normal
level, on the 11,794,699 shares outstand-
history of the
on
Diversified Investment Fund
invested in high grade
Trust
based
Diversified Growth Stock Fund
assets in common stocks as cornpared with 64% at the beginning
of the year.
Of the remainder,
24%
Fund
2*1
over a year
-
months
gest for
Diversified Common Stock
r; i>
30
new
Net sales of shares for
in the
Address.
Fundamental Investors, Inc*
n
of 108,000.
The
Fund
closed the semitime last annual period with 62 %
of net
same
value
2,080,817 in shares
ago.
six
The report noted that the Fund
had added some 12,000 sharehold-.
ers in the half-year to bring the
total number to an all-time high
high points in the bonds and preferreds; 3% in bonds
history
and
represent and preferreds selected for appre-
are
Trust's
and
prospectus on
asset
25,993,533
Jnewyork
Trust
June
On June 30, the Trust
107,375
shareholders
and
street
BOLLOCK
the
ended
$18.60.
wall
.
of
1952> accordin2 to the Fund's
semi-annual report transmitted.to
shareholders this week,
$483,406,247, compared with
year.
was
less
conditions.
assets
quarter
$474,449,498 at the
iiii one
sta-
under
even
business
net
the
were
have
investments in companies
should hold up
earnings
relatively well
for
to
income
average
ing
on
Dec. 31, last.
Cleveland
Chicago
Los Angeles
Hugh W. Long and Company
San Francisco
Incorporated
Westminster
at
Parker, Elizabeth
3,
New Je-;ey
Volume 178
Number 5242
The Commercial and Financial Chronicle
..,
lurid, according to Albert M. Shel¬
don, Jr., President of the Fund.
Continued
assets
rations
in
invested
are
list
of
leading
located
Mutual Funds—America's
a
At
fiscal
the
Fastest
the
vested in
preferred
stocks
with
compares
The years from
72%
a
stock position a year ago.
common
are
and
currently
most favored
common
the
group
in
regard
future
to
credit
expansion
system,
.
and
in
the
rates,
money
of
amount
enormous
the
in
short-term"
years,
of two such
as con-
for
some
•
DOLLAR COST averaging with a
less volatile fund has its attrac¬
tions
for
investors,.
many
says
the July "Shop
Talk," a dealer
publication of Distributors Group,
which
believes
istered
its
Fully
Admin¬
Fund fits both the
vative
beginner and
completer
of
ment
good
satisfied
invest¬
plan.
."A
the
conser¬
periodic
a
tematic
ple
tend
tive
proportion of the
'budgeting'
in
be
to
their
kind
highly
of
sys¬
peo¬
conserva¬
selection
of
invest¬
ments," "Shop Talk" states. "They
may
be alarmed rather than at¬
tracted
by
the
trust,
the
prospect
early
the
and
vehicle
vestment
the
panies
There
with
funds
are
higher
also
medium
provide
to
income
of
a
return
in
are
the
composed
of
list
to
accept
attached —
risk
funds
are
broad
return—and
position
a
incumbent
there
of
a
dividend-paying
stocks.
common
mitments
in
adequate
either
stocks
million
a
com¬
sales
tal
of
com¬
there
them
For
mutual
are
vestment
clusively
in
well-being of share¬
holders and
the security of in¬
vestment
company assets.
Now,
the
investor
may
possibly
lose
money in mutual investment fund
shares through a drop in security
prices but he is,very unlikely to
lose
because _pf
dishonesty
of
in
as
premium
tive
to
instead
Fund, in their June
"Keeping Up," call at¬
tention
to
the
dividends
past
of
stock
during
the
in
among the se¬
Fund's portfolio.
the
Suchy-Federal
in
cies.
of
This Act
Machines
Corp.; Sprague Electric Company;
Eastman
Kodak Company;
Mallory (P. R.) & Coj, Inc.; General
Controls Company; Weston Elec¬
trical
Instrument
Corp.; Clevite
Corp.; Clark Controller Company;
and
Hammond
Instrument
Com¬
pany.
value
.
.
.
.
.
bulletin
is
then
makes
this
"A
growth industry or
company may be defined
growth
tor
in which the increment fac¬
larger
than
that
economy as a whole.
for
the
Bringing this
down to individual companies, the
definition is modified as follows:
A
growth
which
has
an
of
the
in
in
one
net
income
increment factor, over the
larger
than
that
of
a
of companies representative
industry
as
outward
expression
company
over
while
is
company
the increase
long-term,
group
SEC?1ihas
the
by
funds
to
much
the
cash
increased
whole. The
a
of
a
growth
the longer term
tend
dividends
moderately,
to
sap^e way
mutual
in
expand
as
the Con¬
gressional investigations and cor¬
rective
legislation early in the
of
the turning point
industry,
life-- insurance
the
.
which
now
financial
has become one of the
of
bulwarks
the
nation.
are
the
long
tors'
and
acceptance of this in¬
This regulation
vestment meqium.
actually
the
welcomed
has';, been
managements
furidsy
vestment
by
of mutual in¬
The basic idea
is sound and the costs appear rea¬
in
sonable
dered.
can
be
full
facts
viev/'Of
services
that
from
vestment fund shares are
in
accounts
trust
New
and
disclosureOf
as
required
all
the
by
material
is
regula¬
given
to
plowing
investment
in
certain
he
Many Types of Funds
trustees
mutual
purchase
vestment company
accounts—some by
"Prudent
permit
states
in¬
shares for trust
amendment to
Rule,"
Man
and
Tennessee,
adopted
without
"Prudent
specific
ing capital and plant which is
Continued
on
page
The mutual fund,
re-
26
is
not
ment
a
panacea
evils.
-&o
unfortunately,
for
one
all
invest¬
mutual
fund
prove
trustees
have
Cost
been
of
are
well
so
purchased
mutual
by
Acquiring
initial
the courts.
Funds
Mutual
purchase
fund
of
shares
de¬
book
"Other
People's
is
that which
mutual
is
made
public offering price which
includes' al sales charge, like the
of
everything
that
we
buy.
con¬
This does not mean,
panies have been
What
There
the
of
are
com¬
honored.
so
the
relatively
industry
Future?
is
mutual
new
the
on
'•
indications that
many
fund,
threshold
of
greater growth.
even
A
recent
the
New
showed
nationwide survey by
York
Stock
Exchange
that
only about one in
ten of the some 63 million
every
-
adults
in
this
country
corporation securities,
including mutual funds. Three o&
now
owns
ten
survey
employed
showed, are
holders
principally
every
adults, tlte
not share¬
because they
unfamiliar with the nature off
are
and
had
nite
in
considered
Many had
for
reasons
these
income
than
such,
defi-,
no
not
owning cor¬
large number
enjoy more,
larger savings
porate shares. 'Yet
of
shares
corporate'
never
a
Americans
have
and
before. Inevitably, many
ever
of these will become mutual fund;
.
educa¬
salesmanship ofr
potentiality of the market
be further visualized from the
fact
that
liquid
demand
savings of indi¬
S.
(currency,
the
in
viduals
U.
deposits,
deposits,
time
savings and loan shares and U. S.
Government
securities)
reached
$186 billion at the 1951 year-end
increase of over $6 billion
The
.
number
of
securities
upon
the market is very large.
small investor to make
a
an
intelligent selection from these
—indeed, to pass an intelligent
judgment upon a single one—
is
ordinarily
impossible.
He
lacks the ability, the facilities,
the training and the time es¬
sential to
Unless
little
the year earlier figure. Some
economists
For
.
The
can
over
managers.
".
through the
tional efforts and
a
proper
his
investigation.
purchase
than
better
is
to
be
gamble, he
a
the
billion
predicting
are
$200
by the end of 1952.
Some
of these monies will seek place¬
in
ment
and
investment
the
way
Inflation will
With
continue to exert
traditional
the
"mu¬
the American family.
on
pressure
market
will, prefer the
of investing.
many
tual"
havens
for
not returning sufficient in-,
to offset rising living costs
money
come
and
and
taxes, more
infl^1
more
tion-conscious investors will peek
advice of an expert,
who, combining special knowl¬
edge with judgment, has the
a
facilities and
mutual funds for this purpose.
a
incentive to
make
reasonable
tunity
for
Another
—Louis
prospect
dynamic
fund
mutual
oppor¬
appreciation in
Many will choose
rising markets.
thorough investigation."
and
return
some
for
the
is
investment
D.. Brandeis, Late
Associate Justice Supreme
pension fund, now growing, in the
Court oj the United States.
aggregate, at a rate of about one-
The
backbone of the growth of
mutual funds has been the small
investor—with
and
propably not
000.
The
years
little
as
than $10,-
more
marked
$500
as
trend
in
recent
tional
many
in
income
favor
groups
of
higher liv¬
Medium-sized
investors
mutual funds.
to
think
to
curities and
fund
industry.
The
American ingenuity.
missions to
with
that
this
Many
diversify his
own
se¬
to obtain suitable
re¬
an
investment firm
idea
to
America has become the greatest
nation
earth because our sys¬
on
the incentive to put
money
justify constant super¬
A mutual fund, however
to
anyone
to
and
—by combining this amount with
interest
many
others—is able to
system
Life.
—
a
con¬
to
our
the
funds
surplus
put
t-hus
in
Mutual in¬
provide
practical method for
and
work
olirselves and
work.
to
funds
venient
provides
enterprise
free
of
tem
on
account of this size are not suf¬
of
A
plan more flexible—and
now
it is an important segment
of the American financial picture,
vestment
funds
open-end
the
with
fied
our
vision.
example
century old idea of spreading in¬
vestment risk was adopted—modi¬
supervision from investment firms.
The fact is that the potential com¬
ficient
invest¬
mutual
open-end
search information and investment
ah
up
make the
$20,000 to $50,000 have also been
investor
add
bright future for the mutual
a
of typical
ing costs.
would
year.
a
prospects
the
ment fund is but another
to accumulate surplus funds
attracted
to
brief,
na¬
has enabled
for investments despite
In
the
toward redistribution of
lowkr income
half billion dollars
at trie
cost
com¬
practical evidence of
—an
is
an
mu¬
Some
upheld
of
of
fund shares under such rules and
haye
idea
amount
funds.
investment
tual
basic
rules capital would be sufficient for
Man"
mention of
mutual investment
a
management.
by investment company
lowed
North
Massachusetts,
Washington,
Wisconsin
and Pennsylvania.
Twenty-one other states have
Dakota,
turned
however, that all investment
fol¬
per¬
investment
mutual
to
investment
earnings into expansion of work¬
may
In this quotation, Justice
espoused
savings banks
by
Thirteen
funds.
An
back
pos¬
profes¬
was
not talking
about
funds, although the theory
states.
tions.
stress
quite
of
Brandies
legal for
some
Hampshire regulations
mit
the
his
mutual
mutual in¬
ren¬
the industry
prosper with the
Accordingly,
thrive
It is
needs which
Money."
with
some
by court action, statute or
regulation
has
done
judicial opinion. These states are:
a high level of
Colorado, New Hampshire, Okla¬
integrity in the operation of mu¬
homa, Kansas, New Jersey, South
tual
funds
and; has resulted
in
Carolina,
Maine,
New
Mexico,
am ever increasing
public confi¬
dence
retains
one
the
1948
fidence in professional investment
pay
scribed by the late Justice Brandeis
in the following
quotation
implica¬
range
fact
to
count
in
years,
managemnet of its ac¬
the investment manage-,
investment dealers.
Legality As Trust Investments
in
the
ment of
Mutual funds have filled inves¬
However, it is rea¬
that profes¬
provide
to
the
money
needs
There
many
over
shareholders
*
tions
for
sound.
will
Federal
much
is
particular
caused
and
prosper
to
results
because
have
more
University,
with
perhaps
the
largest endowment fund ino the
world (over $200 million), after
operating the account themselves
employed
the
or
individuals, insti¬
to obtain profes¬
sional investment management is
low
achieve an investment
than the average in¬
by
tutions and endowments. Harvard
investments.
vestor.
Act.
passed after several
years of study
and investigation
by Congress. The passage of this
Act, which provided for continu¬
ous
supervision of the industry
off
sales
would
one
that
also
inves¬
single investments
many
made
funds
substantial
million dollars
a
been
investment-
pooling
experience and facilities for
likely to
objective
1940
was
that
management
grown
assume
managers
tors and
of
investment
attracted
sales
gathering financial data are more
..
.
to
Mutual
have
superior-to results obtained by
"amateur" management of invest¬
ments—and
in
such
cases,
the
appre¬
.
these objectives
investment
their
poli-
age" with*sthe passage in
the Investment Company
century caused
The
comment:
as one
.v/T, '
,
or
The mutual fund industry "came
of
Business
that
achieved.
be
State
sional
action
ternational
surance
the
management
practices
that
sional
.
volve
supervision of
compared
.
capital
sonable
investment
it
The
year.
results.
on
sible
their investment objective
ciation in rising markets
regulation, .however, does not in¬
Companies represented in the
portfolio which have taken such
include, according to the
bulletin, Telecomputing Corp.; In¬
and
charging
be
period
tirely
ex¬
may
tion
Adequate Regulation
or.
splits
months
seven
curities
number
and
as
investors.
cover¬
Whether the sales charge or fee
high or low depends en¬
.
investment risk.
1920's.
of
of
seems
company op¬
bulletin,
management as well
and, accordingly, i4
attracting many in this group of
insurance
period
first
the
membership.
...
Electronics
in¬
vestment
spreading
fire
on
entire
amor¬
of
join a lodge or country club—
should be amortized over the
it
be—whether it is
.
«.
emphasis on current income
.
,
emphasis on minimizing fluctua¬
to secure the benefits of
broad diversification to spread in¬
during
or
life
charge in itself may prove
volatility or apprecia¬ to be a
"good investment."
tion in rising markets
(with, of
course,
a
concomitant
risk
of Reasons for the Growth of Mutual
faster than average depreciation
/ Investment Funds
in
declining
markets).
Others
Mutual Investment funds have
hold
so-called
"growth" stocks.
money
evidence
the
initiation fee
The open-end * feature of con¬ Others
are
known
as
"Class"
stantly a v a M a b 1 e new shares funds which invest, for example,
coupled with a redemption feature in steel shares, oil shares, or other
is thus the American concept of industrial groups.
Whatever an investor's objec¬
the basic original idea of pooling
in
spread
entire
maximum
management.
erations
and
the
charge may
Some funds
stocks.
one
charge should be
by the investor as a capi¬
over
age
bonds.
preferred
have
half of
one
sales
against the
-Other mutual funds invest only
.
or
involve only
may
investment—much like
in¬
invest
funds which
more
expense
tized
a
concerned with
.
Television-
offer
charge may be
A purchase of $1
charge of
treated
price swings, and prefer the con-%
Opbn-end
mutual
investment priced stocks for maximum vola¬
Fully
Administered funds must
register with the Se¬ tility
.
partial hedge against
Don't press speed on the
or any other invest¬
curities and Exchange Commission inflation
man who wants to drive
carefully. and are also subject to State laws ment goal—the investor is likely
/'And when any periodic plan¬ and
regulations. The purpose of to find one or more mutual in¬
ner achieves his goal or
retires, a the Federal and State regulations vestment funds with similar ob¬
conservative
position
becomes is to
protect the interest of the jectives. There is risk of course
more
important to him than an shareholders and to eliminate the in the ownership of any market
aggressive one."
abuses in investment
securities, so there can be no as¬
of
constant professional
provide
other features
pany—a
real
or
sales
or
This
servative
SPONSORS
funds
percent.
conservative
backlog to balance their account.
desire
estate, may
Fund.
THE
the Prospectus
few
only about 2%.
entire
with
Investors
far
income
maximum
a
open-end
investment
A
purchase of $100,000
a
the
more
the
who
the
a
fund.
of
case
over
investors who may require
For
This in¬
the
herent
the
securities.
pergonal affluence than
own
will
high-grade
of
securities
somewhat
forged
was
the
—
more
were
their
consisting
quality
resulting
manaagements
so-called
many
that
conservative balanced
are
balanced-
chaos
investment fund—is
Then
'20's.
combination
a
safeguard capital.
from the trusts of the roaring
cry
■■
and is set forth in
one
no
stocks which are intended to
mon
American
mutual investment fund.
wide
of
of
American version of
new
with
continue
to
time."
the
as
than is available from high-grade
crucible
corrective legislation,
position
key industries
likely
are
little
in
of
types
nor a
struction and automobiles
suggests
that favorable business conditions
the
of
mutual
strong
was
more
fidence
decline.
present
assets
needs—just
bonds, preferred stocks and com¬
following the market crash
of
1929, the abuses of. investors conr
supply of credit
that has occurred, is sufficient in
itself to precipitate a major busi¬
"The
their
of
or
funds
shrinkage
Fund
contraction in the
ness
value
Out
appre¬
rates
the
and
all
There
The Modem,Mutual Investment
comparison to anything
1931, Neither the rise in
long- and
initial
selected and the amount invested,
nearly coincide with his ob¬
jectives.
pronounced than their
growth in the-'preceding boom.
in
prior to
failed
the
even
eco¬
banking
of
ciably higher than in recent
is< low
one
the stock market
American investment trusts. Many
level
though
even
This
will be suitable for all their shares at net asset value. A
shots on a golf course. There are purchase of a
few hundred or a
many
types of funds and it is few thousand dollars will include
important that the investor select the maximum sales charge.
In
November, 1929, to midwere
tryifig times for such
trusts
potential
present
without
charge may vary from % of
1% to 9%, depending on the fund
most
1932
nomic conditions, i The report to
shareholders states, "There is still
an
fee.
an
may
golf club
break in
by the Fund.
Minneapolis Associates, Inc., the
manager of the Fund, and E. W.
Axe & Co., Inc., the investment
counsel, both appear to be opti¬
mistic
will fit
were
preferred stocks, 42% in
This
Utility
nothing more than a dump¬
ing pool for their- own unsalable,
underwritings.
By
the end of1
1929 there were over $7
billion
of assets in investment companies
with about 675 active companies.
in¬
stocks, and the balance in
common
cash.
shares
liquidated
or
com¬
charges and
fund
normally
commission
Growing Business
year-end May 31,
were
in
further
no
sales
or
25
sales
country.
47% of the Fund's assets
be
corpo¬
throughout
usually
are
investment
,
diversified
There
15
page
missions
However, he emphasized that, to
reduce risk. the majority oj: the
Fund's
from
(369)
gain
free
an
to
active
enterprise
American
Way
o£
'
*86
<370)
Continued from page
5
date
Industry
Wholesale Commodity Price
outlook.
the year, it
a
There
quite
tonnage is not being snapped up
plates and most sizes of structural are
about as strong as ever.
size bars,
large
the national
Fundamental
u
Investors,.
leading grain markets were mixed last week.
showed considerable improvement, re¬
Dive rsifiedi
Manhattare
and
as
supplies, and subnormal disappearance, in
Not only are fourth quarter orders being booked at a sur¬
prisingly brisk pace, but market confidence is supported by the
fact numerous consumers, dissatisfied with,,their allotments, are
market,
iaside.
Far
holders
for
are
dependent on warehouses and importers for tonnage to round
requirements. Generally, the belief prevails that sup¬
ply-demand balance is not too distant in many products, and that
The American Iron and Steel Institute announced that the oper¬
companies having 93% of the steelmaking
industry will be at an average of 96.7%
of capacity for the week beginning July 27, 1953, equivalent to
2,180,000 tons of ingots and steel for castings as against 94.4%
{revised), or 2,128,000 tons a week ago. For the like week a month
ago the rate was 91.8% and production 2,069,000 tons.
A year ago
the weekly production was placed at 891,000 tons and the operat¬
ating
steel
of
rate
capacity
for
-
186,393 bags,
470
a
Car
Loadings of
increased
revenue
69,960
cars,
or
the coal miners' annual vacation was in effect only one day that
week, according to the Association of American Railroads.
Loadings totaled 791,414
above
increase of 182,414 cars or
week when loadings were
affected by
cars
an
the corresponding 1952
the steel industry strike but a decrease of 13,964
1.7% below the corresponding 1951 week.
30%
or
cars,
further advance, bringing current
high ground since January, 1952.
new
a
The
four years last week, although a
easier tone developed at the close due to increasing buyer resist¬
This
the
Receipts on Monday of last week were
while Thursday's were the heaviest since
during the week.
ments
lighest in
1948.
year,
a
a new all-time high record and an increase
kwh. above the previous week. The preceding high
registered on June 27, 1953 when output totaled 8,446,-
ij.93,000 kwh.
The current
the
over
kwh.
total
was
a
Spot
cotton prices moved in a narrow range and recorded
net gains for the,week. Helping to support values was
Forward
and
early Fall months showed an increase in volume. Sales in the
ten
sjpot markets last week were reported at 87,000 bales, up
sharply from 44,500 a week earlier, and 48,000 in the same week
a year ago.
Domestic mill consumption of cotton during-the fourweek June period totaled 742,000 bales, according to the United
comparable 1952 week and
over
increase
an
of
new
crop
cotton for delivery in the late Summer
1,455,166,000
Output Expected to Reach 32-Month
Automotive
output
last
week
the
advanced above
previous
industry
turned
out
with
137,876 cars last week, compared
137,186 in the previous week. A year ago, because of the
steel
strike, the weekly production
only 29,882
was
A year
ago
truck output
was
•week.
Truck production amounted to 2,407 units last week,
2,578 the week before and 1,255 in the
year
against
ended
and
industrial
July 23
from
148
failures
in
somewhat
increased
to
in
184
the
preceding week, Dun &
Bradstreet, Inc., reported. At the highest level in four weeks,
-.casualties were considerably heavier than a year ago when 137
occurred, and they were even with the 1951 toll of 184. Con¬
tinuing far below the
prewar
level, failures
the 291 recorded in the similar week of
Concerns
.sharply to
A
decline,
with
down 37% from
Wednesday of last week.
than a year ago.
on
credit terms continued to
consumer
on
failing with
liabilities of $5,000 or more climbed
from 94 in the previous week and 119 last year.
the other hand, occurred among small failures, those
under
$5,000,
which
fell
to
23
from
54
a
week
18 in the comparable week of 1952.
Wholesale Food Price Index Records New
shopping
Retail
dollar
weeks,
the
Dun
&
sharp
advances
Bradstreet
scored
wholesale
in
sales
the
food
two
price
continued
centers
volume
to
in
week
the
was
to
+4; Southwest and South -f-2 to
experience
larger
estimated
by Dun
&
-f6; Northwest and Pacific
Coast -f3 to -j-7.
There was a mild increase in consumers'
The unusually large demand for
lightweight
cially
seasonal
clearance
suits,
encouraged
for
sales
first three weeks of July
the
a
year
few
a
to be
were
more
wear
men's clothing, espe¬
retailers to postpone
weeks.
at 16
V}sta Avenue, Lynchburg, Va.
REPORTS
THE
MID-YEAR
United
States
rities
reports
of
Foreign Secu¬
&
Corporation
United
and
States
Securities
affili¬
its
International
&
Corporation
show
of, June 30, 1953 com¬
with $132,753,674 at the
These figures
as
pared
same
after
are
675
of
date last year.
deduction of
a
$34,399,indicated value
representing
U.
S.
&
Foreign's investment
iq the affiliate
of June 30 and
as
Net
Federal
buyers prepared for the Fall season, the dollar vol¬
rose
country-wide basis,
on a
as
taken from
Reserve Board's index,
trade
in
New
York
the
adversely af¬
fected by very heavy rains and, as a consequence, trade observers
estimated that the period would reflect little or no change from
past week
was
S.
30
an
the weekly period ended July 18,
increase of 5% from the like period of last year.
a
&
Foreign
amounted
to
f
equivalent to
were
outstanding
and,
like increase of 5%
was
1953, an increase of 7%, w£s reported. For the period
Jan. 1 to July 18, 1953, no change was registered from that of 1952.
de¬
after
ducting the value in liquidation of
the
first
and
second
preferred
stocks in the total amount of $15,000,000, to $76.25 per share of
common
stock outstanding.
This
June
with net asset value
30,
of first
per
share
per
preferred stock and $92.68
share of
United
net
on
$106,287,989,
of
1952
equivalent to $1,062.88
assets
stock.
common
States
International's
&
June
on
30
099,504, equivalent
were
$59,-
to $295.50 per
share of first preferred stock out¬
standing and, after deducting the
and
$9.31
in
liquidation
second
share of
per
asset value
alent to
share of
in
$35,950,000, to
common
stock
$68,015,585, equiv¬
was
share of first
per
stock
and
States
$12.52
per
stock.
common
United
first
the
stocks
On June 30, 1952 net
$340.08
preferred
of
preferred
outstanding.
&
Foreign
owns
approximately 99% of the second
preferred and 80% of the
stock
of
U.
S.
reports
lowance
has
&
capital
appreciation
tions have
that
state
ized
common
International.
been
eral
year ago.
According to the Federal Reserve Board's index department
July 18,
U.
June
on
The
above 1952.
a
i
of
assets
durables.
for the week ended July 18,
1953, rose 2% from the level of the preceding week. In the pre¬
vious week an increase of 11% was reported from that of the sim¬
ilar week of 1952.
For the four weeks ended July 18, 1953, an
increase of 4% was recorded. For the period Jan. 1 to July 18,
1953, department stores' sales registered an increase of 5%
that of
deduction of $41,549,906
exceeded that for the whole month
slightly in the week and it continued
moderately higher than the level of a year ago. Inventories
slightly above the level of a year ago with the larger rises
consumer
a
combined net asset value of $114,—
807,747
value
reported that volume in
reported from
that of the similar week of 1952, while for the four weeks ended
rose
his headquarters
the total amount of
of wholesale trade
ume
some
purchases of apparel
ago.
In the preceding week
preceding
index
department.
make
compares
Bradstreet, Inc., at from 1 to 5% above that in the corresponding
week of 1952. Regional estimates varied from a year ago by the
following percentage New England -fl to +5; Midwest and East
1953, registered
High
Since Oct. 16, 1951
the
be important in the
store sales in New York City for
'*
Following
Clearance sales were
durable goods.
Outlying
Retail
161
liabilities
ago and
were
1939.
of its mutual
Mr. Williams
Manager
as
will
$901.08 per share of first preferred
less frequent
Relaxed
of
the
the
lieutenant from
a
he became associated
$90,107,918 and
special promotions of seasonal specialties, C9nencouraged to increase their spending slightly in the
period ended
in
earlier period.
Business Failures Continue Moderate Advance
Commercial
firm,
stock
were
Department store sales
week
Slightly Higher Trend
Stimulated by
sumers
As many
companies made 8,917 cars last week, compared
with 9,022 in the previous week and 4,988 cars in the like 1952
After serving in the
as
year ago.
This
Scattered retailers of children's
Canadian
of
Carolina
South
&
Scott, Horner and Mason,
prominent
southern
investment
a
only 6,450 units.
•was
Navy
represented a daily average of 37,150 bales, against 37,400 in May
and 34,800 in June a year ago.
cars.
United States truck production last week totaled 26,396 com¬
pared with 26,769 the previous week.
S.
1942 to 1945,
similar
last week.
week, states "Ward's Automotive Reports."
The
Durham
a
0
High in July
native of Lynch¬
Secretary-Treasurer
somewhat below expectations, and
States Census Bureau.
15.4%
or
the like week of 1951.
U. S. Auto
growing areas.
drought condition in major
severe
year-to-year gains in volume than the urban stores.
gain of 1,132,196,000 kwh.
U.
ate
October,
represented
was
is
CLOSED-END
sharply higher following most erratic move¬
finished
Cattle
In Past Week
of 251,224,000
point
burg,
ance.
All-Time High Record
of electric energy disributed by the electric
industry for the week ended Saturday, July 25,
1953, was estimated at 8,460,427,000 kwh., according to the Edison
Electric Institute.
1
Vir¬
mid-
states.
alone
power
of
state
adjacent
five
in
Mr. Williams, a
funds
to
somewhat
their highest levels in
amount
light and
prices to
Chicago hog market sent values up
receipts in the
Light
Trade Volume Registered
Electric Output Sets New
south
organi¬
with
registered
trading in
freight for the week ended July 18, 1953,
9.7% above the preceding week when
a
ago.
year
Lard
the
Loadings Show Further Gains
sharp gains. Warehouse stocks of cocoa rose to
new high for the year, and compared with 122,-
recent
moderate
ing rate was 42.9% of capacity, due to a general steel strike.
home
his
and
Railroad Co.
entire
the
in
ginia
in
out current
procurement of items in continued tight supply will ease progres¬
sively as the weeks pass, "Steel" observes.
zation
the
represent
Ernest Williams
the
the recent sharp price rise. Slow demand
the actual market resulted in a slight dip in cocoa values fol¬
lowing
caution placing
ments
48s
in
states. He will
who had been resisting
more
orders, shying away from fourth quarter commit¬
conversion and premium-price steel, though some still
domestic flour/
than.
.
doesn't neces¬
being thrown
reservations for last quarter are
from it.
Consumers certainly are displaying
improvement was noted in the
assets
share¬
Long
featured by chain baker purchases following several
months of extremely cautious buying. Soft wheat flour bookings
also showed improvement but interest in other flours was small.
Coffee continued strong, aided by broader demand from roasters
<3
sarily follow all
of
more
80,000
previous week, and 43,600,000 a year ago.
Despite the growing optimism in steel circles, it
more
than $200 mil¬
concerned, pressure on the mills appears
pressing for more tonnage.
funds
with
lion
Considerable
...
Fund,,
mutual
Spring wheat due to
weakened
markets at Kansas City
corn
and
Funds
Bond
market.
reports of damage to
of
.sponsor
the prospect
of huge
who had been predicting a noticeable recession in
consumption toward the fag end of the year are now revising
demand estimates upward. Actually, insofar as hot- and cold-rolled
sheets,
The company is
announced today.
wheat
some
were
Cash
many
paper,
in
for
Williams
Vice-President
of
Hugh W. Long and Company was
resident
view of smaller
hog numbers, tended to lower values. Trading in grain and soy¬
bean futures on the Chicago Board of Trade was more active,
totaling 597,400,000 bushels for the week. This was equal to a
daily average of 59,700,000 bushels, compared with 49,700,000 the
previous quarterly openings of order books. Still, con¬
interest exceeds expectations. As a result, states this trade
some
sumer
PROGRESS
Ernest
OF
rust infestations.
stem
quickly as
as
of stock
The index closed at 284.13 on
week earlier, and 289.21 on the corre¬
large movement of red Winter wheat to
notes.
Forward
intervals in the form
dividends or stock splits.
at
fleeted
flecting increased activity in domestic flour business. Both the
Minneapolis and Chicago cash wheat markets were strong despite
to anticipate
remainder of
quarter delivery orders there appears little reason
much, if any, letdown in high-level activity over
as
demand
Mill
!
peak for the year.
Movements
the market currently, mid¬
best vantage point for appraising the
But from the way the mills are booking fourth
the
be
not
new
a
against 281.66 a
sponding date a year ago.
July 21,
metalworking, the current week.
may
to
j[
Mutual Funds
as
the
index
25
ELECTION
gradual upward movement over the past few weeks has
Dun & Bradstreet daily wholesale commodity price
A
lifted
products in most cate¬
gories is giving impetus to a rising wave of cautious optimism
as to last quarter prospects, says ''Steel," the weekly magazine of
Persistently strong demand for steel
195$
.Thursday, July 30,
PERSONAL
Index
High for 1953
Establishes New
.;
Continued from page
current
the like
represents the sum total of the price per pound of
31 foods in general use and its chief function is to show the general
trend of food prices at the wholesale level.
Rate This Week
Considering seasonal influences in
mark a
year ago.
Scheduled To Hold at a High
Steel Output
summer
a
Chronicle
The index
in the like
against 137,186 the week before, comparing with 29,882
1952 week, when the steel strike crippled production.
on
The Commercial and Financial
slightly from $6.74 on July 14, to $6.75 on July 21, to
new high since Oct. 16,
1951 when it stood at $6.77. The
number shows a gain of 2.4% as compared with $6.59 on
-
The State of Trade and
steel
4
>']
gain
elected
made
tax
as
to
on
no
for
al¬
Fed¬
unreal¬
the corpora¬
be taxed
*as
"regulated" investment companies
and
under
existing
lieved of
that tax
vestment
profits
law
are
re¬
realized
in¬
distributed
as
on
capital gain dividends.
•
.
Volume 178
Number 5242... The Commercial and Financial Chronicle
(371)
The
Indications of Current
Business
week
Activity
Latest
AMERICAN
IRON AND STEEL INSTITUTE:
Indicated
steel
Equivalent
Steel
operations
AMERICAN PETROLEUM
42
oil
and
gallons
output
(bbls.
average
oil
Residual luel
unfinished
and
(bbls.)
Distillate
fuel
ASSOCIATION
(bbls.)
(bbls.)
2,069,000
891,000
6,550,600
117,088,000
*6,515,700
7,267,000
7,063,000
(number
of
23,542,000
23,014,000
2,547,000
2,371,000
2,301,000
10,739,000
10,237,000
10,102,000
10,128,000
8,965,000
8,701,000
and
143,820,000
144,053,000
149,535,000
*28,991,000
26,586,000
OUTPUT
(U.
94,912,000
90,253,000
47,779,000
47,154,000
721,454
812,578
562,345
664,996
$253,497,000
$264,210,000
$484,411,000
$278,166,000
July 23
140,584.000
148,808,000
272,118.000
112,913,000
115.402,000
212,293,000
=
FAILURES
81,009,000
158,928,000
118,133,000
34.393,000
53,365,000
29,227,000
_______—<i2__July 18
9,200,000
*6,910,000
9,820,000
6,610,000
COMMERCIAL
AGE
steel
Pig
'per
iron
Scrap steel
METAL
18
669,000
520,000
689,000
*9,997,080
1,639,789
7,209,396
castings produced
7,162,460
5,947,450
•
June
Including
alloy
(net tons)—Month of May
of
period
(tons of
82,422
(tons)
93,000
91,500
112,000
18,300
jty*>July 18
84
92
111
82
8,460,427
8,209,203
8,446,193
7,328,231
184
148
195
137
/
*80,459
83,797
84,250
*86,043
74,076
92,452
j
(tons)_
*94,280
33,144
38,722
41,494
43,271
I
OF GOVERNORS OF
'
FEDERAL RESERVE SYSTEM—
(in thousands)
$142,173,000
$145,641,000
39,115,000
37,390,000
*31,437,000
2,876,000
2,783,000
3,244,000
530,000
*538,000
113,100
134.3
„•
136.5
125.4
,
$133,032,000
687,000
_____~^fJ-July
_.
(BUREAU
OF MINES)—Month
of June:
Bituminous coal and lignite
Beehive
coke
(net
(net tons)
(net tons)
tons)
CONSUMER PURCHASES OF COMMODITIES-
RESE^E
100
AND
INDUSTRIAL)
DUN
&
BRADSTREET, INC.—
(1947-1949=100)—Month of June
?£M
J&tfJuly
COPPER
Crude
23
PRICES
(E.
July 21
ton)
gross
4.634c
4.634c
4.634c
.
4.131c
In
Refined
July 21
ton)
M.
&
$56.76
$56.76
$55.26
$52.77
July 21
1
_.
J.
$44.83
$44.83
$42.17
$40.75
refinery at
Export refinery at
(New York)
(East
St.
.—July 22
July 22
i
•_.
.
at
Louis)
at
;
29.075c
29.550c
29.650c
80.500c
93.500c
121.500c
29.700c
29.675c
24,200c
Government Bonds
13.750c
13.500c
13.550c
13.300c
13.300c
11.000c
11.000c
In
15.800c
11.000c
15.000c
16.000c
13.500c
July 28
93.34
—July 28
103,80
103.64
102.46
109.97
—July 28
108.70
108.34
106.39
114.27
July 28
106.04
105.69
104.48
112.19
corporate—
—
Aa
93.64
98.26
93.00
July 28
102.63
102.63
101.47
109.42
July 28
98.41
98.25
97.94
104.14
—July 28
102.13
101.80
100.32
106.92
:
Baa
Railroad
Public
Group
.
Utilities
Industrials.
MOODY'S
Group
July 28
103.47
103.47
102.30
109.42
July 28
105.86
105.69
104.83
113.31
—
Group
AVERAGES:
DAILY
YIELD
BOND
84,728
A.
(tons
of
80,392
117,929
92,151
139,520
2,000 pounds)
stock at
copper
end of
♦146,215
98,416
52,762
70,856
(tons
period
pounds)
2,000
♦93,197
124,480
pounds)
2;0Q0
LINTERS
AND
In
public
storage
of
June
of
as
Linters—Consumed
Stocks
OF
COM¬
BALES:
month
June
month
741,929
27
of
June_
674,773
1,770,113
1,224,947
4,737,480
1,823,358
122,924
99,363
131,298
1,068,936
COTTON SPINNING
1,122,303
559,695
19,824,000
20,013,000
19,440,000
22,814,000
22,844,000
23,183,000
19,824,000
20,013,000
19,453,000
9,330,000
9,489,000
8,102,000
466.4
474.4
435.0
116
*115
111
109
of June 27
as
*114
105
(DEPT. OF COMMERCE):
Spinning spindles in
place
June
on
27.
Spinning spindles active on June 27
Active spindle hours (000's omitted) June 27
Active spindle hours per spindle in place June
DEPARTMENT
747,789
1,660,823
4,050,356
of June 27
as
June
27
STORE
SALES
(TEDERAL
-
RE¬
SERVE SYSTEM—1947-49 Avcrage=10()) —
Month
of
June:
Adjusted
Government Bonds
DEPT.
—
consuming establishments
Cotton spindles active
Aaa
'
pounds)
•58,126
of
Lint—Consumed
=
MOODY'S BOND PRICES DAILY AVERAGES:
Average
June:
of
fabricators—
MERCE—RUNNING
35.225c
78.750c
.—July 22
—
29.675c
—July 22
—July 22
___July 22
.
at
at
(St. Louis)
Zinc
2,000
of
(tons
to
S.
COTTON
York)
month
QUOTATIONS):
Domestic
Lead
U.
of
copper—
Straits tip...'New
(tons
Refined
Deliveries
lb.)_=
(per
INSTITUTE—For
Copper production in U. S. A.—
DUN
—
INC.______
(per gross
Electrolytic
S.
end
at
COAL OUTPUT
COMPOSITE PRICES:
Finished
U.
for
of
products,
Pennsylvania anthracite
(in 000 kwh.)
BRADSTREET,
A
10,371
ELECTRIC INSTITUTE:
Electric output
U. S.
steel
steel
Month of May
147,360,000
80,540,000
32,373,000
INDEX—FEDERAL
AVERAGE
80,803
18,086
INSTITUTE:
130,806,000
Avptfuly 25
STORE SALES
SYSTEM—1947-49
102,071
21,015
9,419,000
STEEL
Unfilled orders at end of period
MINES):
(tons)_____
105,464
end of May
521,546
.
^__July 23
OF
May_;
Slab zinc smelter output, all grades
2,000 pounds)
Shipments (tons of 2,000 pounds)
609,000
i
£l__July 23
(tons)
DEPARTMENT
791,414
__A__July 23
;
(tons)-.
Ago
AMERICAN ZINC INSTITUTE, INC.—Month of
May:
49,596,000
621,519
and
of
stainless
THE
BUREAU
AND
tons)—-Month
and
77,361,000
43,937,000
July 23
Pennsylvania anthracite
coke
82,701,000
I
ti^July 18
S.
of
(short tons)
BANK DEBITS —BOARD
___J.
and lignite
IRON
ingots
(net
25,123,000
July 18
of cars)__July 18
(no.
____
i.
tons)—Month
Shipments
117,380,000
29,644,000
Steel
ENGINEERING
—
municipal
Bituminous coal
8,778,000"
18
construction
State
Federal
short
Stocks
cars)
Year
Month
OF
8,779,000
construction
construction
(BUREAU
AMERICAN
*■
NEWS-RECORD:
Public
(in
RAILROADS:
CONSTRUCTION
of that dates
Previous
MINES):
Production of primary aluminum in the U. S.
6,819,000
25,002,000
2,257,000
July 18
freight loaded
S.
ALUMINUM
6,078,350
r_„c.July 18
at
freight received from connections
U.
6,470,300
24,488,000
A-July
at
at
AMERICAN
ENGINEERING
Lead
*2,128,000
__*.July 18
(bbls.)
oil
OF
gasoline
Revenue
IRON
§2,180,000
July 18
Revenue
EDISON
2
July 18
at
oil
Residual fuel
Beehive
42.9
(bbls.)
output
Kerosene
COAL
91.8
July 18
;
output (bbls.)
oil
are as
Month
Ago
*94.4
July 18
refineries, bulk terminals, in transit, in pipe lines-.-.
Private
Ago
§96.7
July 18
(bbls.)
fuel
of quotations,
cases
either for the
are
of
(bbls.)
(bbls.)
output
in
or,
Stocks of aluminum
output—daily
average
Dates shown in first column
that date,
Latest
2
r__July 18
Kerosene
Total
Week
production and other figures for the
cover
Year
INSTITUTE:
stills—daily
Distillate
CIVIL
Month
on
Aug.
;
each)
Gasoline
Finished
month ended
Aug.
(net tons)
condensate
Crude runs to
Stocks at
month available.
or
to—
ingots and castings
Crude
or
Previous
Week
capacity)
(percent of
following statistical tabulations
latest week
Ik
.
27
for
Without
1
seasonal
variations
seasonal
July 28
2.99
2.96
3.01
2.62
:—-———July 28
July 28
-.July 28
3.52
3.53
3.60
3.17
3.24
3.26
3.37
2.94
3.41
3.48
A
———July 28
3.59
3.59
3.66
3.20
Baa
__—July 28
3.85
3.86
3.88
3.50
——-July 28
3.62
3.64
3.73
3.34
Durable
July 28
July 28
3.54
3.54
3.61
3.20
Nondurable
3.41
3.46
2.99
July 28
425.1
corporate
Average
-
—
Aaa
:
Aa
—
—
Railroad Group
Public
——
Utilities
Industrials
MOODY'S
Group
—
_:
INDEX—
COMMODITY
national
Orders
Group
received
of
Unfilled
Paint
oil,
1949
AVERAGE
195,839
175,234
210.031
214,656
141,246
258,844
81
54
98
July 18
581,573
598,538
509,322
i—
*
(tons)
end
at
drug
and
July 18
—July 18
—-—July 18
_
.
activity
orders
of
1
period
reporter
price
168,607
80
417,253
LOT
DEALERS
EXCHANGE
Odd-lot
sales
July 24
AND
SPECIALISTS
(customers'
Number
of
orders—
Number
of
shares—-——
—
value
Dollar
Odd-lot
106.20
*106.06
106.22
>
Customers'
short
Customers'
other
of
20,882
29,863
short
812,955
651,861
——July 11
total
$27,231,578
$25,060,128
$35,232,660
$30,376,295
July 11
17,594
16,506
23,995
Customers'
other
-July 11
102
193
61
^
Short
sales
Round-lot
sales
Total
23,802
20,004
450,843
681,345
549,530
11
3,398
6,672
7,105
2,058
11
464,415
444,171
674,243
547,472
11
$18,344,134
$17,703,452
$6,710,431
$23,265,275
:——
July 11
126,710
122,150
178,930
160,850
126,710
122,150
1~7~8~930
ACCOUNT
—July 11
SALES
STOCK
ItOUND-LOT
AND
OF
MEMBERS
ON
THE
STOCK
NEW
247,510
303,410
217,850
sales
Other
SIZE
(VACUUUM
sales
INTERSTATE
Index
LIFE
of
CLEANER
ASSN.)—Month
of units)
COMMERCE
MANU¬
197,506
—duly
4
210,580
213.480
264.820
185,250
duly
4
4,311,210
5,162,870
6,879,460
5,665,070
4
4,521,790
5,376,350
7,144,280
Total-sales
118.7
of
OF
INSURANCE—Month
PAYMENTS
Other
sales
;
transactions
Total
initiated
on
the
Other
purchases
Other
the
Total
410,630
481,070
674,110
457,890
499,430
574,800
781,740
561,060
——
endowments
Matured
Disability
payments
payments
—
——
__——_
values
Surrender
___________
177,070
157,330
4
4
4
9,600
9,300
22,800
4,900
81,030
157,230
192,480
177,160
4
90,630
166,530
215,280
182,060
July
4
196,615
238,888
255,915
220,860
July
4
62,500
54,350
56,070
42,180
4
296,824
315,572
296,294
273,983
4
359,324
369,922
352,364
316,163
—
-
transactions for account of members—
sales
LABOR
NEW
(1947-49
—
SERIES
—
U.
186,500
4
738,484
953,872
1,162,884
909,033
4
949,384
1,111,252
1,349,384
1,059,283
July 21
:
PRICES,
—
157,380
July
.
Total sales
WHOLESALE
788,085
July
sales
Other
4
4
111.0
*110.5
109.6
111.2
July
—July
purchases
Short
S.
DEPT.
1,133,205
1,010,478
160,900
,
893,170
150,250
OF
as
of
Jar..
1,
1953
as
farm and foods
'Includes 675,000
against the Jan.
97.4
95.2
109,6
108.3
*104.8
103.2
109.2
90.8
113.8
114.0
112.0
-JuLv 21
1
figure.
98.9
July 21
commodities other than
'Revised
29,175,000
58,826,000
55,895,000
37,479,000
61,975,000
55,142,000
$365,145,000
$336,714,000
$2,000,000
$2,075,000
$1,684,000
521,000
537,000
487,000
639,000
582,000
$3,072,000
$3,235,000
$2,803,000
$25,421
19,627
*$25,122
*19,452
$23,595
19,550
$45,048
*$44,574
$43,144
26,314
*26,838
23,247
$29,943,000
$29,843,000
$28,767,000
23,399,000
—
21,802,000
22,924,000
20,891,000
23,282,000
24,776,000
23,220,000
INSTITUTE
—
of
Month
May
omitted):
——
_II——
-
INVENTORIES
(DEPT.
Month
OF
of
COMMERCE)
(millions
May
SERIES—
NEW
of
SALES
&
dollars):
Inventories:
Durables
Nondurables
Total
Sales
MONEY IN CIRCULATION—TREASURY
of
—As
May
Month
101.8
_July 21
114.5
barrels of foreign crude runs. §Based
1, 1952 bash of 108,587,670 tons.
95.9
114.5
on
new
annual
capacity of 117,547,470 tons
31
of
DEPT.
(000's omitted)
CEMENT
PORTLAND
(BUREAU
OF
MINES)
May:
(barrels)
Production
mills (barrels)(at end of month—barrels)
Shipments
Stocks
from
25,248,000
TREASURY
S.
Net
21,829,000
92%
DI¬
SECURITIES
MARKET TRANSACTIONS IN
AND
U.
94%
97%
Capacity used
RECT
July 21
foods
Meats
All
:
products
Processed
8,367,000
35,049,000
585,000
INSURANCE
LIFE
Industrial
Net
commodities——
Farm
8,867,000
58,118,000
PURCHASES
INSURANCE
OF
100):
Commodity Group—
Ail
$150,656,000
36,314,000
8,834,000
$355,232,000
___
——
Group
127,800
101,190
:
sales
Total sales
103,170
floor-
*
sales
Total round-lot
544,510
107,630
duly
transactions initiated off
Short
719,960
93,730
—duly
duly
duly
—
sales
Total
594,520
88.800
—
sales
Total
$164,114,000
37,168,000
LIFE
OF
—
floor—
sales
Other
490,280
July
-July
purchases
Short
4
duly
sales
Total
$158,288,000
TO
of May:
benefits.|
MANUFACTURERS'
duly 4
July 4
.duly .4
'
sales
Other
118.4
of
MEM¬
specialists in stocks in which registered-
purchases
Short
119.8
57,485,000
middle
at
average=100)
Total
ACCOUNT
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Total
206,939
5,850,320
■
Transactions
252,404
35,339,000
Employment
Railway
POLICYHOLDERS—INSTITUTE
OF
—
FOR
■
COMMISSION—
INSURANCE—BENEFIT
(000's
:
TRANSACTIONS
U
June:
of
(number
(1935-39
Death
LIFE
(SHARES):
sales
ROUND-LOT
9,254,000
6,740,000
CLEANERS—STAND¬
Ordinary
i
15,994,000
*7,030,000
251,670
YORK
TRANSACTIONS
duly
Short
;
.
VACUUM
Policy dividends
sales—
Round-lot
1
__.
Total
shares
of
goods
160,850
July 11
—_______—_——,s:—July 11
__—.—
ROUND-LOT
EXCHANGE
FOR
16,374
467,813
purchases by dealers-
Number
TOTAL
goods
Annuity
sales
Other
132
17,492
11
dealers-
by
shares—Total
of
Number
——July
±_July
—July
—July
1
sales
Durable
June
:—
sales
Round-lot
*17,131,000
*10,101,000
6,964,000
employees In manufac¬
manufacturing
20,065
sales
!
sales—
129.1
23,128
553,322
July 11
Dollar value
-
21,541
sales
Customers'
104.1
♦152.0
turing industries—
All
Factor
597,225
__
share?—Total
*111.8
17,077,000
of
5,375,000
111.3
10,113,000
number
7,497,000
*5,621,000
150.1
manufacturing
Estimated
.12,872,000
*8,213,000
5,551,000
13,767,000
——;
______
♦13,834,000
8,216,000
goods
FACTURERS'
sales
Number
i
•
workers)
Employment Indexes (1947-49 Avge.=100)—
All manufacturing
'1
Payroll
Indexes
(1947-49
Average=100)—
ARD
STOCK
COMMISSION:
(customers' sales)—
sales
of
SERIES—Month
(production
goods
HOUSEHOLD
———
orders—Customers'
of
Y.
N.
DEPT.
S.
109.94
purchases) —
—___———July 11
."—July 11
—__———
purchases by dealers
Number
ON
EXCHANGE
SECURITIES
—
by dealers
ABOR—REVISED
Nondurable
STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODD-
.
*
April:
'
manufacturing
201,443
.
index—
100
=
435.9
414.4
426.6
op
PAYROLLS—U.
AND
All
All
(tons)
(tons)
Percentage
1
3.40
3.05
association:
paperboard
Production
3.39
EMPLOYMENT
adjustment
GUARANTEED
A,—Month
of June:
sales
$20,077,450
purchases
UNITED
STATES
BUREAU
(000's
OF
$1,526,900
$1,438,700
$1,393,900
$1,473,000
901,700
1,012,200
834,495
AND
omitted):
Exports
Imports
$35,881,000
IMPORTS
CENSUS —Month
of
May
EXPORTS
—
•
—
■I
The Commercial and Financial Chronicle
*6
see
^Continued from first page
^
is
of
or
prefer,
overwhelm- hence, profit is hound to' result
from a continuation of the project.
the plan of the United Na¬
What may be needed is a better
it.
ingly
been
evidence
Goodwill or Public Rela¬ through vetoes, harrangues, etc.,
Department with its mem¬ that Russia sa.ys one thing, but
does another—thus slowly awak¬
bers constantly visiting the whole
round of membership countries. ening deluded nations to the true
character
nation has its newspapers
and periodicals and other means
of communication, so it is fair to
Every
nations
in
everyone
united
It
is
in
for
neighbor as thyself,
doing
check
these
to be
prove
A.
W. G. Stratton
It
AYERS
R.
President, Detroit Institute of
world.
In reading Mr. Robertson's word
description of the principal coun¬
ties that make up the United Na-
tions, one can easily understand
why the United States stands out
♦is a beacon light in this so-called
''
president,
by
mixed.
I
was
Nations
CHAMBERS
several
by
spent
interested in the article
working with high
officials in Western
Europe, North
Africa,
and
years
government
Like
R
our
officials
in
ica.
Washington,
these
men
o
bertson's
of
deals
largely with
to
complex
permit making defi¬
states
that
think
they
im¬
not
the
entire story.
Like
m a n
In short—you
of
or
I
on
111.
regard Mr. Robertson's article
"An Inside View of the United
Nations"
as
distinctly informative
I
<3»id instructive, but
I
see no rea¬
"throw
to
son
in the
sponge"
aban¬
and
to
don
the
inal
of
orig¬
purpose
its
organi¬
inter¬
With
varied,
so
and
the
stituent
bers
selves
the
their
con¬
experi¬
ences.
it is not
surprising
witness
and
>»armony
to
view
the
the
among
lack
Also
to accept
much prefer
by the U. S. A.
Na¬
and
Raymond T. Burdick
towards its members.
the
longer
I
listen to
the
gardless of errors in the organiza¬
tion
and
management
of
the
United
of
pose
members
However, it must be real¬
Nations,
it serves
a ,pur¬
which the world needs.
that
the
a
any
sovereignty to
But
important national
a world organiza¬
do
I
believe
a
common
that
the
author
the
Universal
a
Postal
the various other techni¬
cal and scientific bodies
on
Organi¬
and Agriculture
or
or
Corporation,
organized
a
long
time that the United Nations
not
was
going to work, but never be¬
fore have I
run
across
which proved the
point
any
so
article
well
as
Mr. Robertson's does.
people of the
well
d
In¬
strument Corp., Newark, N. J.
I
was
has
in
by Mr. Robertson.
He
certainly marshaled his facts
a
in
much interested in
very
the article
a
to
way
most
vincing
present this subject
think
were
discuss
the
curity
real
problems
diffi-
this
11
period,
am
con-
Alwin
F. Franz
vernment
vital
matters
our
in?,
relationships ins
of
world
govern¬
ment.
The article is
sis
of
timely; its analy¬
situation
the
and
the
im¬
serious. How¬
ever, because the United States isconfronted with such problems in¬
plications
Coun¬
with in¬
people
thro ughouf
cil,
formed
general
coun¬
strengthening
Se¬
country,
ment
will continue to make progress
Nations, and
more
particu¬
in
our
try faces very
g o
to
the
of
United
larly
I
full
fidentour
if
program
the
Secu¬
agree
but I
ner.
I
abilities
in
that
c u
man¬
the
rity Council.
in
con¬
con¬
or
the
am
not
inistra-
v e
of
Electrical
Weston
m
does
view
world
ditions
it
re¬
a
assuring
of
but
prepared,
present
t i
President,
William A. Rob¬
entitled, "An Inside View:
the United Nations," is very-
of
a
EARL R. MELLEN
the
world scale?
I believe that the
quite
The article by
ertson
Earl
R.
Mellen
are very
exactly
the
reason
why
the*
spirit
of
confident
leadership
should be the keynote of our po¬
sition among the nations of the*
world.
We know our system of*
in agreement with Mr. Robertson's
endorsement of Eisenhower
democracy works, we know our
last fall were keenly aware of the analysis.
economic system of free enterprise*
Having, however, concluded
importance of the UN
as
one
is sound; we know the American
weapon
in our national defense that the Security Council cannot
people want ultimate world peace~
is appreciated that many may feel
in the manner in
result from these talks.
Rather armament. I believe the people or be effective
•discouraged at such little progress. the United Nations appears to be this country repudiated isolation¬ which it is constituted, the next Therefore we must assume the*
role of a patient
but confident
To
meet
people
is to know a place where world opinion can ism and "going it alone."
Mr. important point is what to do as
leader
and
by example rather
them! To know them is to under- be expressed and formed, then the Robertson infers that if the Se¬ an
alternative.
Obviously,
the
than talk help bring stability to>
«*land them! To understand them individual nations remain "free" curity Council is not a world leg¬
only conclusion you can reach is
ized that all these differences and
♦misunderstandings
existed,
per-
world
needs
meeting
United States in their overwhelm¬
where one nation
can
T»aps even in a more pronounced
(State its views and hear those of
*!egree, before the formation of others.
Probably it is a good
the United Nations, therefore it
thing that few majority decisions
A
the:
east
justified.
Iron
I have been sure for
you
the
Food
or
Union
tion.
view¬
undestand the
role of the General Assembly or
of the Economic and Social Coun¬
cil or the Trusteeship
Council?
Is he aware of the important work
of the World Health Organization
Does
zation
linquish
this
policy.
na¬
believe
not
do
oppose
Perhaps naturally more
publicity is given to those attack¬
ing something than to those who
defend an idea or organization or
tions of the world are ready to re¬
I
who
far
near
ALWIN F. FRANZ
says
propa¬
point.
the
tions
those
as
re¬
garding
But
anti-UN
much
organization as be¬
ing in the best selfish interest of
this country and of the world do
not speak or write as frequently
disappointed
"policy"
viewpoint
is
of theto
New York City
type of world
been
have
I
to
thereof and of their respective na¬
tions.
world.
reported developments, admittedly
them¬
at second hand through radio and
equally
press, the surer I become that re¬
cultures
and
justice
and
in the
peace
well
others
the
in
and
Nations.
United
ganda going on at present, both in
the Congress and otherwise.
Un¬
fortunately those who favor this
for
mem¬
at variance in
Fred P. Rondeau
great
a
force
United
zation.
ests
United
McLaughlin
H.
everything Mr.
regarding
the President, The Colorado Fuel andl
with
agree
Robertson
There
idea
potential
in
Chicago, 111.
be
that
the
the
Washer, Esq.,
Chicago,
with
conditions,
and
certain
wonder
would
does,,
dangers
F. W. PAUL
complishments
of a positive and beneficial nature
President, McCrory Stores Corp.,
which have occurred so far.
New York City
I
he
comments;
o n
with Mr.
n u m e rous ac¬
the
case
Mexico-
his
seem
y
better
than
will readily gather
D.
Nations would
Rondeau &
;
a
for
R. E. WOOD
the
in¬
be
clined to make
Robertson's conclusions.
of
Ambassador
Henry Cabot Lodge or President
Dwight D. Eisenhower or Secre¬
tary of State John Foster Dulles
than that of William A. Robertson.
started
FRED P. RONDEAU
would
in the UN, believe
I disagree
that
and
I
though
far
should support and strengthen
it,
Mr.
with
in¬
Al-
member of the UN?
Charter
I
of
record
Sears, Roebuck and Co.,
I
others,
a
that;
long
a
stability.
in sowing discord and
increasing "areas of unrest" if we
not
the
in
ernments
have
studied
iar
some
are
nitude
easier task
were
the dan¬
hands of gov¬
not
a
im
of placing power of such mag¬
south
and
portant truths, yet I am inclined
to
Would
have
action?
much
very
world
without
Communists
Russian
if he is famil¬
Fort Collins, Colo.
Robertson
Mr.
nite conclusions.
^
and
myself
Robertson expresses and
ger
Chairman of the Board,
UN
Mechanical College,
and
too
deliberative
we
History,
and
find
Robertson has
Agricultural
Colorado
will
,*gree that the art of politics
international
economics
is
seem
that I believe
Head of Department of Economics,
1
summary.
"inside"
an
It does not
Council
Sociology
I
agreement with the pessimism Mr.,
effectively
more
allies,
the Security
whether
his
think ,you
think the
misleading.
at¬
meetings
Ayers
R. T. BURDICK
a s
in
done
H. Chambers
R.
A.
Mclaughlin
h.
President, Homestake Mining Co.»
San Francisco, Calif.
bilaterally with each country?
without
Council and over¬ General As¬
looks completely other important sembly.
It is
not
clear
aspects of the United Nations.
/Robertson has
•flUordon
to be
seem
respect.
donald
opinion being on "our side"—in
short, without the use of UN
machinery, discussion and joint
Security
the
Mr.
as
Security
tended many
gov¬
neatly
I
is
weakening the organization*
in any
Does he think that we can fight
Communism
au¬
thor had
article,
in abil¬
ity and ethics.
Therefore,
I
cannot classify
ernments
the
if
as
Mr.
o n.
place
article
the
view of the UN.
course,
vary
foreign
t i
of
It does not
interna¬
a
first
the
In
title
favor
through the collective agency of
the UN, rather than to have to
Trust Co., Wilmington, Del.
pre¬
Regardless of the accuracy of
analysis, is it not preferable to
deal
President, Equitable
me
L. HOLLAND
Senator From Florida
S.
u.
deal with them and their problems
full
the
SPESSARD
HON.
but some of his data seem
his
tell
comments
generations of certain nations
not
to be incorrect and mislead¬
me
ing.
J. B. JESSUP
tional cooper-
Amer¬
South
ertson's
nations is
to
comment
story.
vious attempts
at
1
opening
my
of
imperfections
news,
a
that I do not think that Mr. Rob¬
it
but
than
ful
supplying
and
member
numerous
training ground for the
Hence
success¬
more
is
Robertson's analysis of the
Mr.
has
to
seems
me
of
and people.
interests
business
weaknesses
the
that
to
seems
process.
weak¬
many
nesses,
I
valuable
United
the
Robertson.
Mr.
tainly I rec¬
ognize
that
Foote Mineral Co.,
A.
the views ex¬
Robertson
is
to
Nations
Cer¬
Philadelphia, Pa.
DPilliam
reaction
My
pressed
aggalaxy of nations.
GORDON H.
Detroit, Mich.
Technology,
It
United
'*
>
the plus side.
and patience to
live in a complicated
on
learn how to
be
I have from its inception been a
in
and
City alone, for strong supporter of the United Na¬
example, from UN personnel, ex¬ tions believing that it offers the
ceeds the total cost of our national world its best hope for world ac¬
cord
and
peace.
I
would not;
contributions to the UN.
will
'aggressions,
well
may
around New York
time
takes
countries
certain
questioned as attempts are made
to change over rapidly the habits
one
been stated that the
dollars received by Ameri¬
actual
can
of
result
long-run
members of the United Nations to
all—
of
the
degree of cooperation among
some
the
fulfill
we
so
greatest commandment
Love Almighty God.
think
mention
to
It has
get.
have caused Russia to invite
"minor" wars among others. If so,
I
of
countries
most
ing the UN is infinitesimal when
applied to the entire population of
this country or its national bud¬
may
for all people must
God's will to know
good
result.
and love thy
countries, where they do not im¬
standing and for which
there appears to be very little in
the way of thanks for what we
have done.
Similarly, this whole
subject of technical assistance to
prove our
belong.
like
into many different
to pour funds
other matter—the cost of support¬
were re¬
True,
public statements
of
errors
some
if not now,
and
continuing
of
wisdom
the
about
ques¬
admittedly im¬
organization
to
world
we
would
I
to get at the facts.
intimate way, quired
a more
eventually,
that
and
which
other ways,
in
eign
dangerous
more
present
perfect
this might have come
but no mil¬
True, all
about
the
the world
that the peoples of all
must thusly come to know itary battles with Rusia
be
other
many
relations with for¬
countries which are being
our
questioned by many people. Cer¬
tainly there is considerable doubt
patriotic
men
mentality and
cannot
also
are
phases of
welcomes the
by Russia, but
one
is far
course
than
mankind?
presume
Gov.
tive
of
enemies
these
of
the UN
period of
a
century.
a
There
.
ening action and that the alterna¬
tions
of Illinois
State
Governor,
over
that
position
Great Britain held for
tioned, feel that the UN
must be
made to work by gradual strength¬
staffed
G. STRATTON
JiION. WILLIAM
no
the veto
Americanism
how effective has
accumulated
the
feels that
one
intensely
integrity,
whose
having all the best of
Who knows
of
many
Russia, whichever you
were
No
perfect;
abuse
world opinion.
For a
time it did look as if the forces 'of
evil
"governing" body and its
are
"governors" of the
a
world?
in forming
•nfomned, will reject
tions.
is
the
superseding
members
the United Nations has been
tant
intelligent and responsible per¬
state that the Security Council
an
son
between
reason
too aarly to form judgments (at
least for me), but some day we
will be able to decide how impor¬
Nations" Article
On "United
revival of the rule
nations.1 It is
a
emerge
of
Additional Commentaries
'
Thursday, July 30, 19531
...
(372)
ing
is to love them!
islature, it must be like the French
they would be
ground
the world.
These rules apply
to the United States
i»iembers
of
the
as
to
United
all the
Nations,
to
combine for effective action in
small
groups
From such
with like interests.
joint action I hope to
i
Directory of 1795.
me
That seems to
to be utter nonsense.
How can
that the United
a
States must take
American
position of dominant leadership
in
in this respect
of
in world affairs
—
products are needed
building the industrial strength
other
countries;
we
are
also-
Volume 178
Number 5242
The Commercial and Financial Chronicle
...
(373)
dependent
for
these
upon
CHARLES
countries
needed materials. For
example, the United States is the
largest steel producer by a wide
margin, but it is not self-sufficient
in
many
all
the
materials
raw
used
in
steel
making, particularly the key
in steel alloys as
manganese, tungsten, tin and
metals required
nickel.
our
action
and
purpose
essential; it is
that
is
firm conviction
my
country
must
be
kept
strong and high levels of produc¬
tion
be
must
to
are
Mr.
to
gives
an
cellent
maintained
continue
if
we
position
our
leadership and command the
spect of other countries.
of
Electric
is
to
UN,
as
set
up,
no
f
e c
com¬
mended for the effort he made to
marshal significant historical facts
each
the
100%
am
Mr.
Robertson.
UN' should
there
views
ruler.
I
know
such
con¬
as
structive
been
trated
one \
the
Ernest R. Acker
frus¬
nation
consider
another, I do not
generalization a fair
or
his
one, nor am I willing to concede
at
this
time .that
the
Security
Council has failed in its purpose.
*
Although
agreement
It
is
by
perfectly
I
cannot
with
agree
certain of Mr. Robertson's conclu¬
mrnmmmm
mm
boils
the
fact
to
It
is unfortunate that Mr.
ertson
spent
entire
an
Rob¬
study and research in order to
pare
this
paper,
for
year
pre¬
While
I
have
claim
no
being
an
pert
to
I
abiding
in
present
our
government's
A. E.
with
policy
regard
the
to
United
Arthur K. Atkinson
Na¬
tions.
join
I
U.
action.
or
in
of
of
the
it
the
is
the
result
article
am
of
sure
lot
a
of
as
it is
lic
and
am
disappointed with
stand
we
alone.
cannot
how¬
agree,
ever,
Bank of
of
the
United
clusion
that
Louis
is
is
and,
clumsy
in
much
have
more
to
gain by trying gradually to reform
it
and
make
it work than by
adopting
an
attitude of complete
ELLIS
CRAWFORD H.
to this world.
LAIRD
DEAN
of
C. Gruwell
the
The Merchants National Bank,
Topeka, Kan.
in
the
tlnited
Security
Nations
the
of
nation
to
the
scribes
ences
A.
Robertson
United
in
Nations.
glowingly
so
the
pertaining
He
the
de¬
differ¬
governments of
Certainly America
surrender
one
any
iota
must
of
group
ence
is
avenue
discussion
to
tion."
of
never
her
to those nations
which..freedom is unknown...
more
has
country
but it
can
been
for
the history
100
years
be said that
or
revo¬
sov¬
of nations,
particularly
the
in
lution
.results
in
progress
or
complete.
It could
Arnold
&
Company,
King Merritt Adds
(Special to The Financial Chroniclk)
BENICIA, Calif. —Sherman W-
Campbell has been added to th«*
staff of King Merritt & Company,*
Inc,
were
Blanchard Adds
grow¬
(Special to The
BATON
Chicago
in
their
at
present
apart
to
as
their
past
Lura
M
Main
Staff
to
Financial
ROUGE,
Chroniclk)
La.
—
s
Miss
Butterworth
the staff of Carver
has joinerBlanchard, 121*
«;trppt
Cruttenden Adds
his¬
(Special
quoted at sub¬
are
to
The
Financial
Chroniclk)
the
to
as
far
it
have
last
researched
remaining deci¬
the balance sheet
as
the
you
of
If
real
outstanding
an
definite
bought,
this
situation
a
will
man
if
and
it
Financial
Chroniclk)
Investment
Company,
_
,
^
_
1
New Y Ofk btock LxchangC?
Weekly Firm Changes,
J
°
The New York Stock Exchange
has announced
changes:
the
following
bargain,
reason
it.
on
Columbia
offering.
merit
The
Columbia Building.
to believe
your
time.
have
con-
to
BANGOR, Maine—Franklin WEaton
has
joined the
staff
oi?
won't be welcome
you
second
a
cause
future
Otherwise
the
(Special
great deal about every-
a
victions that
in
is
had also bet¬
you
With Columbia Inv.
But
you
or
George Hepburn, member of th«*
being Exchange,
will
withdraw
from
not waste partnership in William R. Staater
& Co. July 31.
for
(Special to The
different issues.
keep
Newcomb
buying
many
of
some
to
But
don't try to change
Don't
offer
investments.
ThPCP
inese
Elli«
H.
thinP*
tnings
but sometimes
I think the United
retailing
ple
Nations, like
the League of Nations, will soon
be a thing of the past and the
customers
United
are
bag.
States will be
The
purposes
intended
have
ried out and the
dated
holding the
for
not
sooner
which
been
it is liqui¬
the better it will be
Americans.
'
1
-
it
car¬
>
fbr all
" »
be
if
we
those
we
Joins Paine, Webber
(Special
They
would
and
academic
academic
forget how sim¬
investments
can
only classify
of
our
prospects.
who
fall
will
associated,
to
The
Financial
?
Chronicle)
LOS ANGELES, Calif.—Alan G.
all
ail
arp
are
become
merly with H. M. Payson & Co.
them
investors.
has
Schirmer, Atherton & Cov
634 Congress Street. He was for¬
them
course
Chronicle)
with
They
cheap stocks.
know if you
this type of mer¬
good
are
Financial
PORTLAND, Maine—Arthur II
like it the other way.
was
some
though that progress is far from
satisfactory
some
of
better
into
in Mr. Robertson's
Chile, for example,
that
thing else contributary to the
Refer¬
and it is called "a land of revolu¬
That
and
ter know
of
Crawford
given
made
in the
chandise from time to time.
that exami¬
well be made.
can
the
countries,
and
philosophies behind them.
companies
conservative
our
associated
ereignty to
It is in this
404 North Camde*^
Drive has been changed to Lloydt
...
have
be out of
country or the instability of
William
much
very
has
dollars
ing or making a come-back.
He
„
...
bought New York City real-estate
They
its government.
was
who
man
millions of
just
all proportion to the small size of
interested in
reading the informative article by
I
one
over
coun¬
Council
can
HILLS, Calif.-^-Th**
Arnold, Case Sr.
0f
name
Company,
gate very thoroughly, they buy
emotionally and often spread out
smaller
countries, makes the latter almost
dependencies of the former. Thus,
tries
President,
.
BEVERLY
past 25 years through the exercise
of patience and his
ability to ana¬
,
.
Then there are people who only
Brooks D. Weber, general partbuy penny stocks or long-shot ner, became a limited partner;
)
speculations.
They seem to be Davies & Co. July 1.
congenital accumulators of lowWith Schirmer, Atherton.
priced stocks. They don't investi¬
large
the influence of the smaller
W.
know
lyze
_
Now Llovd Arnold Cou
They
time
Co., New Orleans, La.
enor¬
Hugh
them
industry and fi¬
pick securities
very carefully and what they buy
is usually thoroughly
investigated.
nancially.
have
President, Pan-American Life In¬
powerful
very
doesn't
frustration).
surance
x_
companies
that
susbtantial founda¬
concerned, and
It
we
of
he con-
P
°™n investment busir
n Francisco,
ness ln
tion both in their
mal
Ruthenburg
respects, self-defeating, but
think
people who
in capital
Some
Chronicle)
^
growth
a
down
the United
value.
mainly
situations.
isn't
and
peace
interested
gain
Financial
,
fjrm
are
The
ducted bls
basis
years.
Likewise, there
had
countries
has not accomplished the
purpose
for which it was created;
namely,
from
stantial prices in the market.
if you bring him a situation
con¬
many
Today's
world, con¬
sisting of four
less
securities
split and today
with Mr.
R obertson's
implied
of
number
they reoffering of highly specu-
an
lative
when
to
MILWAUKEE, Wis.—Victor Oby memory. •, He has fabulous Langen is now with Cruttenden &
profits today in common stocks Co., First Wisconsin National Bank,
that he bought for a few dollars
Building. 1
and that have been split and re-
mously power¬
Frankly, I
ceive
(Special
C.AT
SAN FRANCISCO, Calif. Mar,nJ
S.' w' ^as be5;01Te assocl—
.Waldron & Company^,
Puss Building. Mr. Judge was for—
mei*ly manager of the trading de—
P^tment for Lauterwasser & Co
pi"!or0 thereto was with HIP.
it
tions.
the United Nations and feel that it
do
anything but safety
perturbed
standards an&
investment,
their
to
which
GRUWELL
the
a
con-
who
income cannot be blamed for
being
for
as
..
tory, their present capitalization,
territory served, etc., and do
the
degree
by Mr.
Na¬
and
are
and
and
them
em¬
phasizes
so
principal
ful
printed
name
who
worth;
he can take most of the
major
railroads of this country and pick
of this repub¬
I
DONDERO
Congressman From
un-
look
fractions
unique
characteristics
the
into
five
was
not
several
wholly with¬
by
firm's
in-
also
Martin Judge, Jr. Now
With Waldron & Co*
not
offering cir-
investors
I
Board,
Mr. Robertson's
Nations
United
servative
painstaking study. This .document
bonds
underscores
out
or
A.
stimulates
RUTHENBURG
View
one
which
informative, and I
that
Frankly,
way
found
very
Nations,"gives
a clear
insight
faced
article
York, under the title
the
peace.
GEORGE
S.
bring
I
its
problems
who
Michigan
to
in
thoughtful discussion pre¬
by Mr. William A. Robert¬
the millions of
other meetings with our diplomats
that a way will be found for a
HON.
C.
others
cither in the United Nations
lasting world
no
necessary
Inside
•
hope
that
continued
conferences
through
States
Arizona, Phoenix, Ariz.
"An
did
requirements.
People
have
Servel Inc., Fvansville. Ind.
opinion that the United
of New
among
Robertson is to be thanked
Chairman
President, First Nat'l
sented
their
thereon.
is:
Scherr, Jr
I
son
It
now.
1
LOUIS
United
HUGH
trying to arrive
are
Nations
bring about Peace
his
is
it
they
this useful discussion.
well covered in the article
The
basic question is not either
to
nothing to do
hs
prefer
Robertson.
faith
national
habits,
fact, in national ideologies.
United
Mr.
is going the
League of Nations.
an
Na¬
own
their
one
They
had
cular and
are
ex¬
have
do
in
for
me
think
he
yout
and
and
spec¬
offering which
they
nations
Nations
eign relations,
in
men?
much talk and
for¬
on
United
the
Is the world ready for a union of
nations and will such a union of
prevent the spread of
Communism. There is entirely too
not
that
needs
line with their
of
because*
that
requirements,
preferences
a
tor
I
1 usion.
accounts.
know
their
feel
that you take their business
seri-
number of his most conser¬
vative
to
ously enough so you will not makes
offerings to them that are out oif
began to receive a
strong unfavorable reaction
a
offerings
want
understand
should be use#
care
all
do
vestment
firm
could write much more of my
which leads to such
a
hopeless opinion on this subject but I do
c o nc
the
as
people
salesmen
i
But
making
doing
to
the
security and
in
made
highly
a
to Your Customer
be noted.
remem-
the
to
my
revolutionary
so
are
their
with whom they have been
business on a conservative
at
that
to
ulative
I
firm
general mailing on
top
fit
in what
of
in
there
is
oc¬
without
that
these, however. It is a very
simple one to ask. Its answer lies
nothing
It
that
it
proceeding
ever
It isn't possible
view for
my
say.
seems
or
contortion.
The
the world and
have
certain
a
for
and in
support
we
that
Some years ago
that
very
of
down
securities
saw was an
has
in-
they
offered
All
behavior
their
observe
One of the most important services which clients
expect
of their advisors is that
from
uncomfortable.
cli-
fications.
these
with
your
they fall into several major classi-
rela¬
a
tions to become real and operative
without some violent changes in
«
-
United
effort
President, Wabash Railroad Co.,
St. Louis, Mo.
would
on
bloodlessly
e
have
support
K. ATKINSON
which
will
you
suitable
human
a
absolutely no joint effort on the
sions, I have found his article in¬
part of all the United Nations to
teresting and informative.
ARTHUR
soberly drawn
a
one
basis
philosophies,
Nations. It
in the UN by the action of
United
ents
vestments
in
curred
set-up
a
we
pro-
posals have
the
Offerings
win catalogue
prefei ences as to
you
picture, however? No great change
the
stupidity
that
many
e
through
While
the
association
an
equal
some
expressed
so
s
o
Fit Your
If
with
people
h
w
world
is
ber
and
smaller nations is
JR.
that
are
few
characterized
a
present
SCHERR,
in
the
amazing
By JOHN DUTTON
the
it
needs.
tively
Savings Bank of
with
be
of
composition, is
in
I
Security
vote
case,
thesis that
Council
notion of
Brooklyn, New York
on
to
that
appeal to many of isolationist ten¬
dencies; or others to whom 'he
Diehl
the
of
EDWARD
Council of the
as
out
The Dime
countries
the
Charles
that something constructive
of
represented
in
Vice-President and Treasurer
ntention
that
said
In
Is there not another side to this
Rob ertson's
o
be
Robertson's
conclusion
day. I still
A.
Securities Salesman's Corner
and it cannot be useful because of
United Nations set-up.
agree with Mr.
e
is
coun¬
its
tranquil¬
than the
How¬
I do not
ever,
dangerous
voices of
as composed
today is doing
nothing for the world at this time
peace
come
of
line.
Security
aining
may
more
Nations
maint
hope
might
Mr.
in
was
Far
through the intimi¬
dation of these smaller
countries,
whom it could crush in an hour.
ef-
tive
be¬
ing strength
be
more
its
to support his conclusions.
to
appears
that
wholly comprehensible that Rus¬
sia could muster considerable vot¬
for
the
tions
be
who
time that
now
dicta
as
instability,
admission
Russian
opinion that I
had
up
this
tries abroad out of whose mouths
comes
Russian
philosophy and
League of Na¬
Corporation,
Robertson
the
the
some
and
Poughkeepsie, N. Y.
Mr.
ap¬
and
ex¬
of
set
of
Chile
should lose its voice in the United
back¬
ground
lity
President, Central Hudson Gas
review
complete
very
world
re¬
ERNEST R. ACKER
&
be
be
cause
Nations.
Robertson's
pears
have
Unity of
not
DIEHL
President, Empire City Savings
Bank, New York City
There
into
all
Pa§e has become connected wit&
_
.
Tonircrm
Paine, Webber, Jackson & rsii-ti**
Curtii*.
626
South
Spring Street.
With Standard
Investment
(Special to The Financial Chronicle)
three of the above classes,i or two
PASADENA, Calif. —Raymond
overlapping R. Greaves and Byrle Lerner have*
cases of people who will "cut off
become associated with Standard
a
corner" for a speculation once Investment Co. of California, 8T
of
them.
in
a
There
while.
are
These
things should
South Lake Avenue.
-
-
t
A
The Commercial and Financial Chronicle
.Thursday. July 30, 1953
..
(374)
30
vr>
partner,
did what my former
Skinner, did and what has
this business of ours pos-
Dana
made
It
sible.
the
relieved
also
has
of
us
to prophesy—and I
more
confidence
in
necessity
have
no
prophets
the
in
the
has
than
individual
average
There
country.
is, however, a definite advantage
which
to the possessor
accrues
of
that
is
and
information
advance
the
exactly what is to be found in
of
not
are
you
la-
machine
for
success
many
didn't
who
one
know
asked them if there
l M
better
any
was
any rea-
they couldn t put the
9011 ,wh,y
the point of the needle that
eye in
jf
have
and Dana
In
capacity
greater
a
willingness than
begin to build up,
greater
a
capacity,
we
in
economy,
our
an
in
before
Never
we Rad both these distorexisting side by side. Those
bave
j-ions
there
bank
isn
single
earning asset which
the liability of someone else,
t, a
isn t
have benefited tremendously from
distortions.
these
0£
Qne
They
Debt
Consumer
of
the
If the mounting pyramid of con¬
down
slowed
is
debt
sumer
as a
second step, the
automobile work¬
the
of
could
or
month's in¬
to decide whether this
valley and the objective analysis
what
of
million
150
people
are
actually
the
for
or
If incomes
reduced and
requisitioned
are
to
glass factories of Toledo
Pittsburgh.
and
This is
counsel of despair but
no
avoided
thrift
but
in
It
is
managers
their
even
hurt
the
institutions
that
part of what lies in that
a
breakdown.
a
hoped that the breakdown
stantly
Conclusion
this is
of
ance
must
be
be
of the
keep
minds
the
slow-down
a
to
can
con¬
fact
might
them, because it would hurt
their customers.
of1 those
in
themselves
find
may
a
situation where withdrawals equal
or
exceed new deposits. Therefore,
it
would
the
be
to
seem
Continued
froYn
5
page
pay
savings, who are the managers of
the thrift institutions in the coun¬
try,
steel
Pennsylvania,
Akron and
at
of
repayment
are
debt, the custodians
that
the
to
and
plants
going to go for living ex¬
is
penses
debt.
spread
Ohio
the
who
have been
living from month to month on
the extension of credit will haye
come
of
rubber
those
stopped,
savings
history
our
perfected wbo are engaged in the promotion
something of the
thrift
and
home
ownership
did
a
down with it.
economy
the sewing machine was
sort.
have
we
the inverted pyramid of credit which
the usually grows too big, topples over
It wasn't until some- and sometimes brings the whole
seamstress.
incomes
mills
Growth
get somewhere
endeavor to
the
needle
down
through
cloth and back up, as
did
their
in
years
in
it is correct
but
essence.
the fact, but than willingness, savings pile up
endeavoring to and business slows down. If we
sewing
without
bored
a
outrageous oversimpli-
of
were
the
call
I
Perhaps
trifle.
aware
perfect
l
what
was
who
those
for Prosperity
credit fication
and
monetary
tremendous
Center.
down
if,
shift is also eliminated, the
doing with their money
ers
may be reduced to the point
may serve to dispel some of those
where they will find it difficult mists of
uncertainty.
sheep and the goats, the savers
The future outlook
is bright;
and the borrowers. There must be to meet their fixed charges. It is
to be hoped that-they have sav¬ the
—in
fact, we know there is—a
heights
are
attainable
but
What Business Depends On
ings against which they can draw, only if we proceed with care,
Reduced to its essentials, busi- very substantial overlap. The re¬
but
if they
do the withdrawals with cautious optimism .and with
ness
depends upon two things, distribution of wealth, which was
will come out of the funds in your
a
figure of speech in 1932, is an
every
possible provision against
One is the capacity to spend and
custody.
the dangers which may develop.
accomplished fact today.
Sixty
0ne is the willingness. The ideal
Beyond this point, the impact If they do not develop, the pre¬
situation is where capacity ex- percent of the disposable income
in this country has gravitated into of a letdown in.,, the automobile cautions outlined at this time may
ceeds willingness by a slight marcould
be
tremendous.
the hands of those families with business
prove to be very cheap insurance.
gin s0 that savings are assured,
industry
today
consumes
incomes of
between
$3,000 and That
We must remember, among other
ancj in which willingness is just
$7,500 per annum, but these are 20% of our steel, 70% of our things, that we have an Adminis¬
about enough to absorb the proglass and 70%; of-pur rubber. This tration in Washington committed
duction of goods and services so the families which owe 65% of
the consumer debt, according to means that not only Detroit, Flint, definitely
to a slow-down and
that there is no serious impact on
Pontiac, Lansing--and Soutn Bend committed also
as
far as lies
the
price
structure. That, of figures established by the Michi¬
gan
University Research Survey might be affected but the slow¬ within their power—to the avoid¬
whole course, is
Dana's contribution to the
economics
nated and
third
to
—
banking figures.
field
equal challenge to
an
state that they are
entirely separate and that the na¬
tion
has divided itself into the
credulity
The Prospects
ever
would be
It
3
Continued from page
Tito's Agricultural Hodge-Podge
generally
as
ment and planning are preferable 1
as it was
ideologically; the eventual result, :
the regime.
surprising
disconcerting,
to
in the absence of sufficient incen¬
of
part
Socialist Backtracking Again
tive and responsibility, may well
to establish
Once again manifesting a rever- be unworkability and permanent
we
are
looking today at another somewhat larger liquidity reserves
one
0£ those inverted
pyramids than
sal-of-policy, the 10-hectare limi¬ dependence on Western aid.
might now be considered
If the bank figures, as published,
(3) Indication that only a com¬
credit
which
is
growing by necessary. The danger may be tation has stripped the indepen¬
are
inverted, with assets substijeaps and bounds and about which averted but not unless it is rec¬ dent farmers ofe pieces of land plete break — not compromise —
tuted for liabilities, you hav® hewith socialism, is workable.
very pttle concern is
being extotaling
300,000>* hectares.
This
ognized as a danger and steps are
more
you the balance sheet, the
land will not be distributed to the
presSed
taken so that it may be averted.
SERIES CONCLUDED.
earnings
statement
and,
again,
'
landless peasantry; but to assorted
Coming back to the piling up of
the condition
report not of the
debt, which stood at
installment debt for the purchase cooperatives and^other state-ma¬
banks but of the banks' customers,
f^l JV Y1 a
u
ftno?
nipulated combines.
who happen to be the largest co- ^ar II and was about 60% of the of automobiles, that should be a
Thus, now that the smoke has
subject of particular interest to
operative enterprise the world has sun>
stato,
a^
cleared away, it* seems that the
those living in the State of Michi¬
everknown.lt is called the United f.ral
eb. \ ls. n0,w a ,0oi,
regime, despite v^the preliminary
States of America.
*
ion> which is almost 20% greater gan, where the automobile indus¬
v
than the sum total of state, local try is not the only industry, by step back, has extended its social¬
SAN FRANCISCO. Calif—Fred
A. Marshall has become associated
Can
?nalyzed by and Federal debt. Not all of that any manner of means, but is cer¬ izing movement here.
there
is
a
nor
coujd be hurt by the
other because
deposit liability which
of someone else.
plain
-
sense
common
,
.
„
.
...
...
,
\
,
Fred A. Marshall Now
With Golvin & Sline
.
.
.
.
IMS!*.
,s
dure
og
o
ratio
analysis
,
without
®sess(?r
_0
a £e®r?S,
mlcs; I can speak without
ccused °* indulging in
grapes
vyhen I tell you quite
wim
wouldnt give a
eC°n- i11?- fUDi Sf
V
i
sociologist looking
-hforfnii y S ou SJ an?
would
ap tbem
r an
?
,
«
.
,
•
rt
nxmv
riav
if
opsf'C!5
t
+£af Y
that type
nf
of
to
a
matter for
The
long_term
debt need constitute
gerioug
concern
anJt
^aanmanage
exf)er^
Y
who
could
keep his nose out of a subject
Metaphysics, which some¬
*cJ
has
defined
deliberate
as
science
a
of
u
^
~
■
now
?
vn
X.
armm
-the debts that produce no
income out of which they can be
President of General
repaid)
which
absorb
serious
concern.
come>
is
byagig
the
for
the
At
total
close
of
Of
this,
War
debt
consumer
billion.
$5.6
World
II
was
billion
$2
six
first
Motors, with
the
million
5.5
this year.
cars
of
that
estimate
an
new
passenger
Production for the
months
of
1953
this
meet
to
is cut
demand,
originally
In
the
contributed
cases
some
land
beihg
held
the
land.
in the
name
The
(Special
State
Farms
enter¬
are
prises in which the title is held by
the
State.
All those
who
are
C'thanC't a complete
th
a<?
Those
never
stoc^ market
t
advantages of
analysis.
Its
dis-
can
equally
tell
you
obvious,
what
any
market will do
do
not
think
or
today or tomorrow,
knp^w and we do not
anyone
'else
knows
market will look like
two
hence.
npithAr
™e
«
Our
what
a
year
instrument is
minroonnnn
H®
to
JsfToo uVotT Juse lor
their respective shares
of the market. By the end of Jurie
con-
because private wealth and
cern
each
All
.
by
farm
mortgage
ratner
f
+
a-
•
ot that prefatory discussion
way
of
justifying some
flat
assertions
which
private
debt,
debt
of the
the
is
citizens
life insurance
estimated
are
sum
$99
companies, the total assets
to
of
be
our
$363
billion
^
•
.
The assets of
* personal problem.
one individual can-
ever' The °fher 26 million families
owe at)0ut
apiece, on the
on
nothing
more—and
nothing less—than the
advance information in the bankmg figures.
So much
for that.
The
to
Lynch Co.
Financial
Chronicle)
MINN.—Milton J.
is with J. A. Lynch Com¬
CLOUD,
Betzold
em¬
Inc., 1616 St. Germain.
pany,
With King Merritt
that
of
it
output. The independents'
is
inefficiency
Thus,
£;■
not
to tell you
Kaiser and Nash
are shut down, Hudson and Pack¬
ard
have
reduced
their output,
while Studebaker and Willys are
necessary
the
economy,
struggling
to
regain
the
ground
plier
because of a long sup¬
strike which cut pff their
share
of
they lost
partly
Our
on
this
on
the
between
as
to
The
Financial
Chronicle)
Kuehl
has become affiliated with
Loewi
&
was
Co.
of
Milwaukee.
He
previously with Wayne Hum¬
& Co.
With Paine,
agri¬
(SDecial
surveying
LONG
well
fronts,- from
may
East
$
this experimental
ratory,
30
Company,
APPLETON, Wis.— Edward C.
mer
%
$
industrial
cultural
as
economic labo¬
be summarized as fol¬
lows:
(1)
(Special
over-al| general conclusions,
the
joined the staff of West-
and
Street.
Broad
setup
collective,
transmissions.
impact of all
Bolin has
the
partly private—with
f}
*
Chronicle)
With Loewi & Co.
of
sectors
(ihdecision?)
three.
that
Financial
The
to
COLUMBUS, Ohio—Clarence A.
ineffec¬
agricultural
hybrid
partly State,
all
(Special
;
other
in
and
Chronicle)
With Westheiraer Co.
,
re¬
of
Financial
Merritt & Co., Inc.
previous demon¬
our
per
stration
a
than
rather
accompaniment
The
to
SALISBURG, Mo.—Eugene Fine
has become connected, with King
heimer
tiveness.
is
agriculture has
on
the
to
"fluidity"
gentlemen
The
hold
extended
overall
last
month.
It
Socialist
(Special
As with "the Communist re¬
J.
to
The
Webber
Financial
Chronicle)
-
BEACH, Calif.—William
Case, Jr. has become associated
Paine, Webber. Jackson &
with
Curtis, 147 East First Street. Mr.
Case was formerly a partner in
&
Arnold, Case
of consumer debt. That savers in your institutions is dif¬ gime in the USSR, Yugoslavia has
Beverly Hills.
obviously means that ficult to estimate but the fact that found it necessary to call on nu¬
families owe very little and there will be some impact of con¬ merous capitalist deyices, as in the
average,
Com p a n y
of
average
some
based
94%
share will be further reduced this
some
are
for
bil-
of
reserves
you
which
estimates
News"
account
week's
Including all of the assets in
lion.
may hear in the next few minutes
ana
to 89% and the "Auto¬
year ago
share dropped from 13.5% to 11%
in
a
year
and their shrunken
total
the
non-
t
nf
a
will
nPk °
be requisitioned to pay the
'it is
S debts
another. Twenty-six milweek
us? o„eJe,£e lion families owe no debt what-
top of the next hill
^ is
laxed;
motive
Trough which
look
been
this share had jumped from 86.5%
expand
tbe accumulation of liquid assets
eluding all of the farm and
the
are
purchase of automobiles.
have increased tremendously. In-
consciousness.
are
bank-figure
advantages
f
t
coScLusness
public's
pubhc s
any
^ST.
p
less production, more unemployment, less earnings, less divi-
We
With J. A.
of
was
.
by
It
Company, Inc., Rand Tower.
is paid, the
rent
no
the collective.
3.2
was
million units. If production
back
will
market
an
tne
the
,
—
installment debt. Today that figures for the last halfi of 1953 ployed, frorh the manager down
*2 thev ; s«of mass total is $27.6 billion and of that would be 2.3 million cars, a re¬ to the lowest worker, have salaries
frnm
nZ
f
total $20-085 billion is installment duction of almost exactly 28%. If paid to them.
The private farms are subject
w LTa
fse t0 consequence debt. The rapidity of this growth it is not cut back, the problem of
l n!B
iT primary con- ig indicated 5y the figure* pub_ overproduction will simply be¬ to rigid and some time^ confisca¬
oS5C-0ndary conse' lished for the month of May, 1953 come more critical than it is at the tory taxation.
The recent March "escape" de¬
Tohn
Q
Pnhil 1Jhnl aiin which consumer debt increased present time and the choice here
a
already in- by $544 miUi0li> of which $429 seems to lie between a slow-down cree reduced the number of col¬
lectives from 7,000
(in January,
u
.ffU see million was installment debt— and a breakdown.
an
inventory log-jam building up and of that total $3()6 miuion wag
The big three, General Motors,
1950) to 2,200.
After all its various zigzags, the
that i
hanking figuresbe tollowed installment debt incurred for the Ford and Chrysler, are determined
you know
WlU
hpfnr
Colvin & Stine. 310 Sansome
with
Street. Mr. Marshall was formerly
there dre three classifi¬
Los
home loans can be had a very long article in which
Angeles representative for
handled. Our corporations have the headline was "Auto Industry cations of farmSr^O) the collec¬ Knickerbocker Shares, Inc. and
tives (peasants' Working co-ops); prior thereto was with Lord, Abborrowed too much and have not Sees A Decline; Split on When
0btained enough money in the and How Fast." The sub-head of (2) State farms;iiand (3) private bett & Co. and Carter & Co.
f0rm 0f venture capital—but that, that article was "Factory Sales farms.
The collectives* technically are
too> ig a sjtuation which is not Chiefs Optimistic as Buyers' Mar¬
With King Merritt
unduly alarming. It is consumer ket Returns
Dealers, Over¬ owned by the members; with the
(Special to The Financial Chuonicle)
debt, the money owed by individ- stocked, Are Uneasy, Cut Profit earnings prorated according to
MINNEAPOLIS, Minn —Ole M.
ualg wbo baye aCqLljred today's Margin Sharply." The article goes the contribution of labor. Rent is
satisfactions out of tomorrow's in- on to
King Merritt &
quote Mr. Harlow Curtice, paid in kind to "the member who Minge is with
the
self-bewilderment.
t«
;
Present Setup
So
called
one
•v
tainly the principal industry. The
New
York
"Times" on July
20
economic theory. As seR_amortizing
U£nG
th
bG
d.
.
and
.
owe
a
great deal,
many
too
much.
It
would
the
is
to
be
a
challenge
credulity to state that the
and
sequence
borrowers
are
to
savers
identical.
warrant
If
overtime
almost
pay,
obvious
discussiop.
too
extended
on
which
the
While Yugoslavia's current
"democratization" and de-central¬
ization,
with
down
confidence,
is
elimi¬
C.
(2)
automobile workers have counted
such
C. D. Green
incentive category.
as
of
wel.Uas the
authoritarian
watering-'
manage-
Douglass
Harris, Upham
City,
at
passed
Green, partner in
& Co., New York
away
the age of 71.
at
his
home
Volume 178
Number 5242
The Commercial and Financial Chronicle
...
(375)
Securities
★ INDICATES
Now in
Registration
Acteon Gold Mines Ltd.,
Vancouver, B. C., Can.
April 22 filed 250,000 shares of common stock (no par).
Price
SI per share (net to company).
Proceeds — To
purchase equipment and supplies. Underwriter—M. H. B.
Weikel, Los Angeles, Calif.
lative
preferred
stock
common
stock
(par
(par
$5)
to
$25)
be
in
July 31
(Dean
cumu¬
units
of
of
Gilbert
&
Consumer
class of stock.
Price—$30 per unit. Pro¬
working capital, etc. Address—c/o Hamblen,
Brooke, 912 Paulsen Bldg., Spokane, Wash.
American
Independence Life Insurance Co.,
Houston, Texas.
July 14 filed 50,000 shares of preferred stock (no par)
fered
to
stock
common
commissioned
officers
of
ices of the United States in units
class
of
the
uniformed
of five shares
Proceeds
—
writer—None.
San
Francisco. Calif.
•
to
&
Co.)
$299,000
Common
—
bank
C.
K.
loans
&
&
&
(Van
Inc.)
shares
Inc.,
(Bids
of
August 10
(Bids
be
to
Texas International
(Vickers
be
to
held
&
in
Underwriter—None.
Brunner
-:-
(Bids
Common
(Bids
corporate
Office
purposes.
Proceeds—For investment.
Boston
Edison
to
be
Preferred
Co.
invited)
Bonds
$30,000,000
(Monday)
be
&
(Bids
to
invited)
be
invited)
September 1
bonds
be
to
September 2
to
Common
—
underwriting)
15
208,321
Louisiana
to
be
shares
(Tuesday)
Common
invited)
Power
&
(Eids
26 filed 246,866 shares of
capital stock (par $25)
being offered for subscription by stockholders of record
July 16. 1953. on a l-for-10 basis (with an oversubscrip¬
about
150,000
shares
Light Co.
EDTi
noon
Telephone
Bonds
$12,000,000
(Bids
(Bids
17
Preferred
to invitedi
about $5,000,000
(Tuesday)
Bonds
—■
(Bids to
invited)
be
6
October
Power
Co
(Bids
Mississippi
be
to
.Bonds
invited)
$4,000,000
In amounts divisable
—For
parts.
stock
(par
retire debt.
the Tribune
July
1 filed
Aug.
$1).
Price—$1.35
share.
per
Proceeds—To
1,
business and financial publication of this
multibillion dollar market,
is the most
productive medium for advertisers;:^
For facts that show how
you can get more from your adver¬
Tribune representative.
Office—504
Underwriters—Gearhart
W.
ext
Jiang|||
Euclid
&
Otis,
McCoy & Willard, Boston, Mass.
Ave., Springfield, O.
Inc., New York; and
Budget Charge Accounts, Inc., Yonkers,
$1,000,000 of
capital
N. Y.
due
1960, of which $225,000 principal amount may
be offered in exchange for a like amount of five-year
10%
subordinated
seven-year
debentures
i
At par (in denominations of
Newspaper
The Tribune gives to the market tables of the
leading stock
the largest circulation
given them in America.
If*
TRIBUNE
new
by $100.
construction
and
Price—At
working
share.
Pro¬
Proceed^
par.
capital.
ceeds—For
Under¬
general corporate purposes. Office—1 Green
Underwriter—None.
Place, Cincinnati 38, Ohio.
the
rate
of
one
telephone
more, 111.
new
($10
share
per
exchange.
for
share).
each
Underwriter—None.
four
ceeds—For additional
to reduce
bank
loans.
due
notes
Aug. 1, 1956.
Price—
$100, $500 and $1,000). Pro¬
working capital, but
Underwriter—None.
shares
held.
Proceeds—To construct
Office—112
West
Elm
St.,
Syca¬
<
Estate
of
Grace
A.
Dow.
Underwriter—Smith, Barney
Co., New York.
Continued
rrm.
The World's Greatest
per
Underwriter—Eisele
★ Continental Electric Equipment Co., Cincinnati, O.
July 21 (letter of notification) 13,224 shares of class A
stock (no par).
Price—$12.50 per share. Pro¬
&
j'p
offering a new issue? Do you want to publicizerydur
services in the marketing of securities?
*"
Through the Chicago Tribune, you can reach effectively ancLat
one cost both investment
markets in Chicago and the
midw^C—
professional buyers and the general investing public. The
leading
CHICAGO
Price—$1
★ Dow Chemical Co., Midland, Mich.
(8/4-5)
July 23 filed 400,000 shares of common stock (par $5).
Price—To
be
supplied by amendment.
Proceeds—To
$12,000,000
(Tuesday)
★ Buckeye Incubator Co., Springfield, Ohio
July 27 (letter of notification) 215,000 shares of common
your agency or
(par 10 cents).
Cooperative Association,
Kansas City, Mo.
July 22 filed 200,000 shares of 6%
non-cumulative
series "A" preferred stock (par
$25) and $5,000,000 of
20-year 5V2% subordinated certificates of indebtedness.
Price—At par
Underwriter—Allen & Co., New York, and
Mohawk Valley Investing Co., Inc., Utica, N. Y.
1
tising, call
stock
DeKalb & Ogle Telephone Co.,
Sycamore,-III.
Jurie 24 (letter of notification) 25,695 shares of common
stock, to be offered for subscription by stockholders at
$o0,000,000
(
ing
Are you
Shelley & Co., Denver, Colo.
ceeds—To open new branch offices.
& King, Libaire, Stout &
Debs.
(Thursday)
September 22
July 21
"
invitea)
be
Duquesne Light Co
(8/18)
-
to
Co
Duquesne Light Co
per
filed 100,000 shares of common stock (par $1)
$1 500,000 of 15-year 6% subordinated
convertible
debentures due July 31, 1968.
Price—To be supplied by
amendment.
Proceeds'—To repay bank loans and to
pur¬
chase machinery. Business—Manufactures air
condition-
Telegraph
&
September
Proceeds—To repay bank loans and for new/con¬
struction.
Underwriter—The First Boston Corp./N. Y.
★ Brunner
and
Under¬
Consumer Credit Corp.,
Tampa, Fla. (8/3)
July 15 (letter of notification) 300,000 shares of class A
Hills
Pacific
Manufacturing Co., Utica, N. Y.
per
common
Price—At
Price—$45
$5
and
writer—None.
Duquesne Light Co
(Bids
Common
(Wednesday)
stockholders—no
September
Co.
privilege); rights to expire Aug. 3.
of
Consumers
invited)" $35,000,000
Duke Power Co
Underwriter—None.
share.
rate
Co., New York.
$8,000,000
Bonds &
for
I.
common
Bonds
(Tuesday)
Duke Power Co
(Bids
i
$3,300,000
&
(Offering
Eq. Tr. Ctfs.
Light Co.___
June
tion
at
stockholders
★ Colorado Uranium Mines, Inc., Rangely, Colo.
(8/4)
July 20 (letter of notification) 2.000,000 shares of com¬
mon stock
(par 1 cent).
Price—15 cents per share. Pro¬
ceeds— For working capital.
Underwriter — Tellier &
Co., New York.
(Tuesday)
to
I
Woodside, L. I.,
Underwriter—Royal Securities Corp., New "York.
market.
Inc.)
$750,000
(Bids
—
if Axe-Houghton Fund A, Inc., New York
July 28 filed 550,000 shares of capital stock.
Co.)
&
Power
Wisconsin
Under¬
to
Colo-Kan Fuel Corp.,
Denver, Colo.
(letter of notification) 940,000 shares of class A
stock (par five cents).
Price — 9J/2 cents per
share.
Proceeds—For drilling expenses and
equipment.
Office—711 E & C Bldg.,
Denver, Colo. Underwriter—
(Thursday)
August 31
if Automatic Electric Windows, Inc.
July 17 (letter of notification) 299,850 shares of common
stock (par 1 cent).
Price—$1 per share.
Proceeds—For
Y.
20
Denver & Rio Grande Western RR
writer-—-None.
general
sold
June 29
*__Debs. & Common
California Edison
(par $1).
Ga.
be
Blvd., Los Angeles, Calif.
writer—Lester, Ryons & Co., Los Angeles, Calif.
$4,500,000
(Tuesday)
August 25
Southern
★ Augusta Chemical Co., Augusta, Ga.
July 27 (letter of notification) 5.000 shares of common
stock (par $1). Price—At market
(but not less than $3.08
per share1.
Proceeds—To Henry I. Gilbert, the
selling
Augusta,
to
$1), of which 8,000 shares will be
notes
—6040 West Jefferson
Co. and Mohawk Valley Investing Co.,
$1,500 debs, and 100,000 shares of stock
(Geyer
be supplied
by amendment.
Proceeds*—To
bark loans, etc.
Underwriter—Van Alstyne, Noel
& Co., New York.
660,
$2,750,000
&
Price—To
Address—Box
off
E.
repay
stockholder.
pay
share, 5,000
employees and
25,000 shares will be sold publicly. Price—$5.25 to stock¬
holders and employees and
$5.62% per share to public.
Proceeds—To repay debt and for
working capital. Office
Equip. Trust Ctfs.
invited)
to
shares
Debentures
Co.)
(par
issued
invited)
&
stock
common
(Wednesday)
be
to
August
Atlas Plywood Corp.,
Boston, Mass. (8/5)
^
July 14 filed $5,000 000 of 5% sinking fund debentures
stock
Coleman Engineering Co., Inc., Los
Angeles, Cal.
lv8 (letter of notification) 38,000 shares of class Ai
shares
American Fidelity & Casualty Co
Underwriter—Reynold*
common
Proceeds—To repay advances from American
& Telegraph Co., parent.
Underwriters—To;
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.; Morgan
Stanley & Co.; The First Boston Corp.; Harriman Ripley
& Co. Inc.
Bids—Expected to be received on Aug. 11.
$7,650,000
Manufacturing Co
(Allen
Co., New. York. Offering—Temporarily postponed
150,000 shares of
1984.
common
Proceeds—For working capital. Business-
and
cumu¬
par
be determined
Corp
Lemon
August 18
$4,000,000 of 5% convertible subordinated
debentures due May 1, 1973. Price—To be
supplied b?
N.
Finance
August 12
March 31 filed
1968
15,
Equip. Trust Ctfs.
Gulf, Mobile & Ohio RR
Loan
(Johnston,
(with oversubscription privilges). Price — At par
($10 per share).- Proceeds—To purchase stock of three
due
Price—At
June
State
&
stock.
Proceeds—For
credit
Telephone
August 11 (Tuesday) '
Chesapeake & Potomac Telephone Co. of
Baltimore City,
Debentures
Arizona
amendment.
Under¬
,
(Monday)
400,000
construction
Chesapeake & Potomac Telephone Co. of
Baltimore City (8/11)
July 10 filed $15,000,000 of 31-year debentures due Aug.
150,000
Sulphur Co
Bancorporation, Phoenix, Ariz.
July 17 filed 150,000 shares of common stock to be of¬
fered for subscription by common
stockholders on the
basis of three-quarters of a new share for each
share)
Manufacturer of tires and tubes.
and
Equip. & Trust Ctfs.
Brothers)
For
—
St., Lincoln, Neb.
—None.
$3,225,000
invited)
Proceeds
12th
($10
working capital. Business—
financing and commercial financing.
Office—60 East 42nd St., New
York, N. Y.
Underwriter
stock
EDTi
noon
share.
convertible preferred
share).
Individual
$300,000
debs,
Louisville & Nashville RR.___
- for
working
Co., Inc., New
Armstrong Rubber Co.
lative
(Wednesday)
Alstyne, Noel & Co.) $5,000,000
per
Office—144 South
writer—None.
per
_____Debs. & Common
(Bids
banks.
'
Common
Co.,
$11.60
was
costs:
★ Charge-It Systems, Inc., New York
July 20 (letter of notification) 30,000 shares of 6%
Common
..Common
Atlas Plywood Corp
York.
State
15
$787,500
Co.) $300,000
August 5
and
Pistell
(par $3.50) to be offered for subscription by em¬
ployees. Price—$2 less than the market, which on July
Notes & Stock y,,
Inc.)
common
stock
(Tuesday)
Pittsburgh & Lake Erie RR
repay
★ Central Electric & Gas Co., Lincoln, Neb.
Juiy 27 (letter of notification) 12,000 shares of
$2,000,000
Corp.)
securities
(Barrett Herrick
75,000 shares of common stock (par one tent) of
Bradco, Inc., to be offered in units of $100 of notes- and
10 shares of stock.
Price—$105 per unit. Proceeds—For
acquisition of stock of two companies, who will borrow
Underwriter
Common
$300,000
Washington Natural Gas Co
and
remainder
Co.)
(Smith, Barney & Co.) 400,000 shares
Applied Science Corp. of Princeton
(8/4)%^
May 21 filed $750,000 of 6% guaranteed sinking ftind 10year debenture notes due April 30, 1963, of this qdjftipany
capital.
Noyes
(Tellier
★
the
&
Dow Chemical Co
me|sell-
<5^
Stout
(C. K. Pistell & Co.,
||i|
Underwriter—First California
Class A
Libaire,
Colorado Uranium Mines, Inc
★ American-Marietta Co., Chicago, III.
July 20 (letter of notification) 4,500 shares of ebmmon
stock (par $2).
Price — At market
(approximately $22
per share).
Proceeds—To Grover M. Hermann,
ing stockholder.
capital.
Valley Mining Corp
serv¬
outstanding notes and for drilling expenses and working
Underwriters—Dallas Rupe & Son, Dallas, Tex.;
Carl M. Loeb, Rhoades &
Co., New York; and Straus,
Blosser & McDowell,
Chicago, 111. Offering—Postponed.
(Monday)
August 4
of each
'M$|.
;
shares
Applied Science Corp._
-v
Price—$495 per unit.
Payment may be
equal monthly instalments of $13.7S;$ach.
For
general
corporate
purposes. .Under¬
36
12,100
Preferred
(Miller
to be of-
par)
Co.)
Fruit Co
stock.
in
made
(no
&
Corp
King,
(Hemphill,
Sun
50,000 shares of
&
ing fund mortgage bonds due Nov. 1, 1962, to be offered
subscription by common stockholders at the rate of
$100 of bonds for each 28 shares of stock held (for a
14-day standby). Certain stockholders have waived their
rights. Price—At par. Proceeds—To repay $1,014,500 of
Common
___
Witter
Credit
(Eisele
Penn
Underwriter—None.
and
REVISED
for
(Friday)
August 3
one
share of each
ceeds—For
ITEMS
V
ISSUE
Oct. 22 filed $1,750,000 of 10-year 5%% convertible sink¬
NEW ISSUE CALENDAR
Wallace (William) Co
shares
2,400
and
offered
PREVIOUS
Byrd Oil Corp., Dallas, Tex.
—
★ Aluminum Tubing Co., Spokane, Wash.
July 20 (letter of notification) 2,400 shares of 8%
ADDITIONS
SINCE
•
<31
may
be used
on
page
32
32
The Commercial and Financial Chronicle
(376)
June 2
Inc., Moline, III.
May 21 (letter of notification) 25,000 shares of 6% pre¬
ferred stock. Price—At par ($10 per share). Proceeds—
To redeem first preferred stock and for working capital.
Office—2519 Fourth Ave., Moline, 111.
UnderwriterMarry Hall Co., Safety Bldg., Rock Island, 111:
Eagle Super Markets,
Baker, Ore.
July 24 (letter of notification) 100,000 shares of common
^tock (par 10 cents). Price—$1 per share.
Proceeds—
iFor working capital. Underwriter—None.
-A- East
Eagle Mining Co.,
Stockton, Calif.
July 20 (letter of notification) 430,000 shares of common
.stock. Price-At par (20 cents per share). Proceeds—To
-cancel debt and for working capital.
Office—823 Fast
Main St., Stockton, Calif. Underwriter—None.
Fairfield Mining Co.,
Inc., St. Paul, Minn.
May 8 filed $1,600,000 first mortgage lien 4y2% bonds
to mature $40,000 annually from 1955 to 1994, inclusive.
3Price—At 100% of principal amount. Proceeds—To con¬
Fairway Foods,
tract
Gas
Fallon
Underwriter—None.
warehouse.
new
Corp., Denver,
notification) 3,616,000 shares of Class
A. common stock. Price—At par (five cents per share).
Proceeds—For drilling wells. Office—528 E and C Bldg.,
Denver, Colo. Underwriter—E. I. Shelley Co., Denver,
Inland Western Loan
Iron
Fenimore
issued
Life Insurance Co. of Phoenix.
Proceeds — To develop and ex¬
pand company's loan and finance business. Underwriter
—None. An additional 300,000 shares have been and are
being offered for sale in Arizona at $1 per share to hold¬
ers of
Commercial's special participating contracts, the
proceeds of which are to be used to activate the company
by Commercial
Price—$1.50 per share.
in the loan and finance business.
(letter of notification) 35,000 shares of common
July 20
stock (par 10 cents).
—For
July 14 filed 1,001,896 purchase warrants to purchase a
3ike number of shares of common "B" stock (par $1) to
2,003,792 common stock purchase
warrants exercisable until July 31, 1953, for the same
toe issued to holders of
amount of common shares, on
stock
the basis of one "B" com¬
purchase warrant for each two common stock
purchase warrants exercised.
The "B" warrants will be
exercisable at any time after
Jan. 31, 1954, and be good
1955. Price—$1.25 per share. Proceeds—
For field exploration and diamond drilling.
Underwriter
until
Aug.
1,
—None.
Fidelity Acceptance Corp., Minneapolis,
Minn.
July 15 (letter of notification) 9,200 shares of class E
*5% cumulative preferred stock. Price—At par ($25 per
.share). Proceeds—To reduce bank loans. Underwriter—
t^tock.
Co., Minneapolis, Minn.
Telephone
$35,883,300 of
Aug. 1, 1973, to be
stockholders at rate of $100
filed
26
tures due
of capital
shares
stock held.
Proceeds—To
corporate
purposes.
(letter of notification) 4,000 shares of common
Price—At par ($10 per share).
Proceeds—For
Business—Makes a formula for pro¬
gressing fresh meat. Office—726 Paulsen Bldg., Spokane.
"Wash. Underwriter—R. L. Emacio & Co., Inc., Spokane,
working
Price—To be supplied by
bank loans and for
repay
Underwriter—Blyth
&
Co.,
Offering—Indefinitely postponed.
Inc., New York.
capital.
1
Dynamics Corp.
May 12 filed 250,000 shares of common stock (par $3),
supplied by amendment. Proceeds—To re¬
pay bank loans made to acquire a block of 400,000 shares
/>f Consolidated Vultee Aircraft Corp.
Underwriter—
Xjehman. Brothers, New York, to handle U. S. sales of
shares, while Greenshields & Co., Inc., will handle Cana¬
JPrice—To be
dian distribution
of
portion of the offering.
—Temporarily postponed.
Offering
a
Georgia RR. & Banking Co.
June
filed certificates of deposit for 42,000 shares of
stock. It is planned to vote on a voluntary plan
17
•common
of adjustment under which it is planned to segregate the
business of the Georgia RR. Bank & Trust Co. and the
railroad business and to place the company in a position
where it can obtain additional funds in the near future.
rSee also First Railroad & Banking Co. of Georgia under
'^Prospective Offerings" below.
Grand Bahama Co.,
tures and $1 per share for stock.
construction.
Business
Ionics, Inc., Cambridge, Mass.
30 filed 131,784 shares of common stock (par $1).
be supplied by amendment (between $8 and
Hotel
Proceeds
and
For
—
new
land
Gray Manufacturing Co., Hartford, Conn.
May 1 filed 55,313 shares of capital stock (par $5) to be
offered for subscription by stockholders on the basis
-of
one
new
share for each four shares held.
Price—To
be supplied by amendment.
porate
purposes.
Proceeds—For general cor¬
Underwriter — None.
Offering —No
-definite plan adopted.
Great
International
Development Corp.
July 6 (letter of notification) 299,000 shares of common
■stock (par 10 cents).
Price—$1 per share.
Proceeds—
For drilling expenses
and working capital.
Office-
...
Suite 1514, 50 Broad St., New York, N. Y.
-—Baruch & Co., Inc., New
Underwriter
share). Proceeds—To pay mortgage debt and for
equipment. Business — Research arid development and
subsequent commercial exploitation in the field of ion
per
exchange chemistry.
Underwriter—Lee Higginson Corp.,
New York and Boston
til
some
time
in
March
(Mass.).
Offering—Postponed
■'
September.
(Kan.)
un¬
Telephone Co.
(letter of notification) $206,000 of 4Y2% first
mortgage bonds, series A, due Feb. 1, 1977. Price—100%
and
interest.
Proceeds—For general corporate
Underwriter—Wachob-Bender Corp., Omaha,
accrued
purposes.
Keystone Helicopter Corp., Phila., Pa.
(letter of notification) 295,000 shares of com¬
mon stock (par 10 cents). Price—$1 per share. Proceeds
—To purchase helicopter and equipment and for work¬
ing capital. Office—Land Title Bldg., Philadelphia, Pa.
April 23
(par 10 cents).
Price—7 V2
cents per
working capital.
share.
Pro¬
Office—725
Spokane, Wash. Underwriter—None.
Hartford Special Machinery Co.
1
(letter of notification) 7,500 shares
June
stock
to
holders.
be
offered
Price-r-At
for
par
of
common
subscription by present stock¬
($20 per share). Proceeds—To
purchase equipment and for working capital. Office—287
Homstead Ave., Hartford, Conn.
Underwriter—None.
Hotel Drake Corp., New York
June 12 filed
13,573 shares of capital stock (par $5) and
3&39,325 of 4% 10-year cumulative income debentures
due Aug. 1, 1963, to be offered for
subscription by stocks
holders in units of
ture
per
aor
one
share of stock and
a
$25 deben¬
(with an oversubscription privilege). Price
—$30
unit.. Proceeds—To repay $300,000 bank debt and
working capital., Underwriter—None
wells
purchase
to
and
writer—M. S.
shares to be
200,000
share of stock and one warrant.
one
drilling of addi¬
wells. Under¬
purchase producing
Gerber, Inc., New York.
it Oakite Products, Inc.
July 22 (letter of notification) approximately 23,760
shares, but not in excess of 24,000 shares (par $5) to be
offered to employees.
Price—$11.88 per share in cash
or $10.63 in instalments.
Proceeds—For working capital.
Rector
St., New York 6, N. Y.
Underwriter
—None.
Oil
Finance
Corp., Warren, Pa.
(letter of notification) 1,250,000 shares of com¬
mon stock
(par 1 cent).
Price—At the market (about
4 cents per share).
Proceeds—To Anderson Oil Co., the
July 16
stockholder.
Office—217
Hickory
Liquor Register, Inc., Roslindale, Mass.
July 3 (letter of notification) 2,100 shares of common
stock (par $5). Price—$16.50 per share. Proceeds—For
working capital for device to dispense and record drinks.
Office—596 Poplar St., Roslindale^ Mass. Underwriter—
Coburn & Middlebrook, Inc., Boston, Mass.
Overland
Oil, Inc., Denver, Colo.
June 10 filed 600,000 shares of common stock (par 10(f)
to be offered for subscription by stockholders (except
the original
incorporators) at rate of
each two shares held.
one
working capital.
Palestine Economic
Wilmington, Del.
of common stock (par 5 cents)
to be offered for subscription by common stockholders of
record May 8 on a share-for-share basis "as a specula¬
tion." Price—To be supplied by amendment. Proceeds—
|
For expansion program. Underwriter—None.
600,000 shares
^ Lorain County Radio Corp., Lorain, Ohio
July 27 (letter of notification) 1,250 shares of common
stock (no par). Price—$40 per share. Proceeds—For ex¬
pansion costs. Office—203 W. 9th St., Lorain, O. Under¬
McCarthy
McWilliams
Dredging Co., New Orleans, La.
July 15 (letter of notification) 3,800 shares of common
stock
(par $10).
Price — At market (approximately
share).
Proceeds—To
selling stockhold¬
Underwriter—Bacon, Whipple & Co., Chicago, 111.
per
Miami
etc.,
Pro¬
Underwriter—None.
Corp., New York
Proceeds
—
For
(par $25).
development
and for working
capital.
of
Under¬
writer—None.
•
Pecos
Exploration Co., Dallas, Tex.
1,725,000 shares of common stock (par 5b),
of which 1,150,000 shares are being offered for subscrip¬
tion by stockholders of Leon Land & Cattle Co. on the
June 17 filed
Pecos share for each Leon share held
one
July 20
(with
as
of
oversubscription privilege); rights to
expire Aug. 5, and up to 575,000 shares are to be dis¬
tributed as a property dividend on the basis of one-half
an
share of Pecos stock for each Leon share held
on July 20.
share. Proceeds—For drilling ex¬
penses, etc.
Underwriter — None, but Beer & Co., of
Atlanta (Ga.), New Orleans (La.) and Dallas (Tex.) will
cents
per
solicit the exercise of warrants.
Pedlow-Nease
July
(letter
9
29
held.
at
Chemical
Co., Inc.
notification) 2,000 shares of capital
to be offered to stockholders of record
of
(no par)
June
of
rate
Price—$10
capital.
one
share
new
share.
per
for
each
five
Proceeds—For
Office—Lock Haven, Pa.
shares
working
Underwriter—None.
Penn Fruit
Co., Inc., Philadelphia, Pa. (8/3-4)
July 15 filed 40,000 shares of cumulative convertible
preferred stock (par $50). Price — To be supplied by
amendment. Proceeds
For development program and
working capital. Underwriter—Hemphill, Noyes & Co.,
New York.
Phillips Petroleum Co.
11 filed $25,000,000 of participation in the com¬
pany's Thrift Plan and 444,444 shares of its common
June
qtock purchasable under the plan
at
be
current
a
Window
Corp., Miami, Fla.
July 9 (letter of notification) 150,000 shares of preferred
stock.
Price—At par
($2 per share).
Proceeds—To
market
placed in effect
Powdercraft
prices.
on or
It
on the open market
is contemplated plan will
about Aug. 1, 1953.
Corp., Spartanburg, S. C.
3
(letter of notification) 5,000 shares of capital
($10 per share).
Proceeds—For
working capital. Business—Makes machine parts. Office
746 Hayne St., Spartanburg, S. C.
Underwriter—Cal¬
houn & Co., Spartanburg, S. C.
Price—At par
stock.
(Glenn), Inc.
per share. Proceeds—For drilling of
exploratory wells, acquisition of leases and for general
corporate purposes. Underwriter—B. V. Christie & Co.,
Houston, Tex. Dealer Relations Representative—George
A. Searight, 50 Broadway, New York, N. Y. Telephone
WHitehall 3-2181. Offering—Date indefinite.
er.
industry,
June
writer—None.
$12.62y2
Israel
share.
per
share for
new
Price—40 cents per share.
—
Lone Star Sulphur Corp.,
May 8 filed
Warren,
St.,
Underwriter—None.
Pa.
stock
Underwriter—None.
Providence Park, Inc., New Orleans, La.
July 7 (letter of notification) 33,333 shares of common
stock (par $1).
Price—$3 per share. Proceeds—To de¬
velop and.improve property for cemetery. Office—516
Carondelet Bldg., New Orleans, La. Underwriter—Woolfolk & Shober, New Orleans, La.
-A- Reddy Beverages, Inc., San Francisco, Calif.
July 24 (letter of notification) 300,000 shares of common
stock.
Price
—
At par
working capital.
($1
per
share).
Proceeds
For
—
Underwriter—None.
Ridley Mines Holding Co., Grafton, N. D.
1 filed
June
par
($5
per
120,000 shares of common stock. Price—At
share). Proceeds — For working capital.
liquidate obligations and for payment of current accounts
and working capital.
Office—5200 N. W. 37th Ave.,
Miami, Fla.
Underwriter—Atwill & Co., Miami Beach,
^ Russell Reinforced Plastics Corp.
Florida.
July 17
of
ceeds—For equipment and
Paulsen Bldg.,
tional
Price—33
July 17 (letter of notification) 600,000 shares of
common
to
warrants
Price—75 cents per unit. Proceeds—For
basis of
3
* Grizzly Gold Mining Co., Spokane, Wash.
-stock
and
Price—$28
Michigan Consolidated Gas Co.
May 15 filed $20,000,000 of first mortgage bonds due 1978,
Proceeds—From sale of bonds, plus proceeds from sale
York, N. Y.
shares
offered in units of
March 6 filed 100,000 shares of common stock
cents). Price—$2
development.
Underwriter—Gearhart & Otis, Inc., New York.
—
Ltd., Canada
1,000,000 shares of capital stock (par 20£
Canadian)
and subscription warrants for 600,000
shares, which statement was amended May 20 to 200,000
June
June 12 filed 10,000,000 shares of common stock (par 25
Ltd., Nassau
Feb. 3 filed $1,350,000 20-year 6% first mortgage conver¬
tible debentures due March, 1973, and 1,565,000 shares
of class A stock (par 10 cents).
Price—Par for deben¬
Underwriter—
filed
ceeds—For
'Wash.
General
(about $3.25 per share).
Muntz, President.
Price—To
$9
1953
Co., New York.
Northland Oils
Nov. 21
selling
& Telegraph Co.
20-year convertible deben¬
offered for subscription by
of debentures for each 20
Nebraska.
Seal, Inc., Spokane, Wash.
Flavor
Fischer's
May 19
share. Proceeds
Office—79 Wall St., New York,
per
Underwriter—George *B. Wallace & Co., N. Y.
Junction City
"M. H. Bishop &
Price—$1.37 V2
working capital.
Y.
June
L. D. Sherman &
Office—19
j
•
ir International Industries & Developments, Inc.
other
Ltd. of Toronto
Mines
& Finance Corp.,
W.
Earl
Thursday, July 30,
—
Phoenix, Ariz.
July 2 filed 2,500,000 shares of class A non-voting com¬
mon stock
(par $1) to be offered to present and future
holders of Special Participating Life Insurance Contracts
amendment.
Colo.
mon
Office — 509 Bank St., Wallace, Idaho.
Underwriter—Mine Financing, Inc., Spokane, Wash.
Proceeds—To
capital.
ating
International
(letter of
June 25
(letter of notification) 160,000 shares of common
Price—25 cents per share.
Proceeds—For oper¬
stock.
N.
Colo.
stock (par $1). Price—At market
Idaho
Hunter Creek Mining Co., Wallace,
31
Continued from page
...
215,000 shares of
common
Underwriter—None.
common
Proceeds
L.
(letter of notification) 20,000 shares of class B
stock (par 5 cents).
Price—$2.50 per share.
For working capital.
Office — Lindenhurst,
—
I., N. Y.
Underwriter—Aetna Securities Corp., N. Y.
Saint Anne's Oil Production Co.
stock (par $14) to American
Natural
April 23 filed 270,000 shares of
repay
Price
Gas Co., parent, for $3,010,000, to be used to
bank loans and for construction program. Bids—
A group headed jointly by
Halsey, Stuart & Co., Inc.,
Harriman Ripley & Co., Inc. and Union Securities Corp.
entered the only bid on June 15 for the securities—
100.125 for 5s.
This bid was rejebted.
Reoffering had
been
planned
pany
sought SEC authority to borrow $20,000,000 from
on 3Y4%
notes pending permanent financing.
banks
at
101.875
to
yield
4.87%.
July
^ Mr. Petroleum, Inc., Denver, Colo.
July 27 (letter of notification) 500 shares of 6%
lative
preferred stock.
Price—At par ($100
Proceeds—For operating Costs.
oilmen's magazine.
ver,
Colo.
Business
—
per
6
com¬
&
$5
Harris
per
of
share.
common
Proceeds
Chicago, 111.
—
To
Offering
—
Expected
today
(July 23).
'
Schlafly Nolan Oil Co.,
Inc.
March 25 filed 150,000 shares of common stock (par 25b).
Price—$4
per
share.
Proceeds—To
purchase
and
sell
leaseholds, royalties and producing properties, to pros¬
cumu¬
share).
Publisher of
Office—1717 East Colfax Ave., Den¬
Underwriter—None.
Muntz TV Inc., Chicago,
stock (par $1).
acquire stock of
Neb-Tex Oil Co.. to pay loans and for working capital.
Office—Northwood, Iowa. Underwriter—Sills, Fairman
—
III,
June 19 (letter of notification.) 12,000 shares of common
pect for oil and gas and to develop and operate produc¬
ing properties.
Office—Mt. Vernon, 111. Underwriter—
Co., New York. Offering—Indefintely
L. H. Rothchild &
postponed.
Scillitoe
'i
(Edgar L.), Inc.
(N. Y.
May 25 (letter of notification) 298,000 shares of comr
mon stock (par one cent). Price—$1 per share. Prdcecda
Volume 178
Number 5242
...
The Commercial and Financial Chronicle
(377)
—To acquire
plant, machinery and equipment; and for
capital. Office—10-15 Spruce St., New York.
working
Business
U. S. Airlines,
Inc., New York
May 28 filed 1,000,000 shares of common stock (par 5
Manufacturer of electronic and electro-me¬
devices. Underwriter
Nielsen &
—
chanical
Co., New
—
York, N. Y.
cents).
—For working
capital,
Otis, Inc., New York.
Offering—Temporarily postponed.
^ Silex Co., Hartford, Conn.
common stock
(par $1)
subscription by common stockholders
on a one-for-one
basis; rights to 67,187 shares had pre¬
viously been waived. Price—To be supplied by amend¬
offered
be
ment.
for
Proceeds—To
convertible
redeem
debentures.
75%
of
stock.
Price—At
holders of record July 28 on the basis of
one new share
each six shares held.
Rights will expire Aug. 17.
Unsubscribed shares will be offered to officers
and em¬
Underwriter—None.
ployees for
(10 cents per share). Proceeds—
Address—P. O. Box 1088, Wallace,
Underwriter—None.
par
lative preferred stock.
Vault Co. of
—
To
stockholders, $2.15
per
—
To
advances
repay
from
share in U. S. and $1
per share in Canada. Proceeds—
For general corporate
purposes. Underwriier—Sidney S.
Walcott, President of company, Buffalo, N. Y.
on
May 1,
Office—Old Country Road, Belmont, Calif.
derwriter—Dean Witter & Co., San
May 5 but rejected.
market.
138th
St., New York.
•
—
Underwriter—None.
Barrett
Corp. (8/11)
July 14 filed $2,750,000 of 5% 7-year sinking fund sub¬
-supplied
loans.
debentures
by
due
April
1,
1960.
Proceeds—To
amendment.
Underwriter—Johnston,
Lemon
Price—To
reduce
&
ington, D. C.
May 7 filed
be
debentures
due
July
30,
1963
*
Technograph Printed Electronics Inc. )
(letter of notification) 99,906.2 shares of
June 26
smon
stock
holders
of
.•share for
"3,
(par 40 cents) being offered to
1955.
record
each
July 13,
two
shares
1953
on
a
common
basis of
Ida.
com-
stock¬
one
new
held; rights to expire March
Price—$3
•activities and
per
share. Proceeds—For licensing
improving patent position and for work¬
ing capital. Office —
^Underwriter—None.
Texas
191
Main
St.,
Tarrytown, N.
Y.
International
Sulphur Co. (8/10)
400,000 shares of common stock (par 10
•cents). Price—$1 per share. Proceeds—To finance cost
•of drilling test wells of
sulphur reserves. Office—Hous¬
ton, Tex. Underwriter—Vickers Brothers, New York.
June
29
filed
Texota Oil
Co., Fort Worth, Tex.
June 21 filed 250,000 shares of common stock
(par 1^).
JPrice—$5 per share.
Proceeds—To repay bank loans
«nd
for
general
corporate
purposes.
Underwriter
Piper, Jaffray & Hopwood, Minneapolis, Minn.
—Expected in August.
—
Offering
Textron Incorporated,
Providence, R. I.
June 25 filed 4,930 shares of 4%
preferred stock, series A
<par $100) to be offered in exchange for the 19,719
shares of 5% cumulative preferred
stock, series A (par
-*$25) of Textron Puerto Rico, a subsidiary, on a one-fortfour basis.
Offer to expire Sept. 30, 1953.
,
Tyte Products Corp., Westboro, Mass.
July 15 (letter of notification) 145,000 shares of class A
common
stock (par $1) (with detachable warrants for
145,000 shares). Price—$2 per share. Proceeds—For land,
Ibuildings, machinery and equipment for manufacture of
jpaper containers.
Office—9 Grove St.,
Westboro, Mass.
Underwriter—Armington & Co., Boston, Mass.
<•
United
Gas
Corp., Shreveport, La.
June 26 filed 1,171,863 shares of
common
stock (par $10)
Ueing offered for subscription by
the rate of
record
one
July 23
rights to expire
new
common stockholders at
share for each 10 shares held as of
(with
on
oversubscription privilege);
Aug. 14. Price—$21 per share. Pro¬
an
ceeds—For repayment of bank loans and for
struction.
Underwriter—None.
new
con¬
United Mining &
Leasing Corp.
Central City, Colo.
May 4 (letter of notification) 115,000 shares of
stock.
Price—At par
common
(10 cents per share). Proceeds—
For mining equipment. Underwriter
R. L. Hughes &
—
Co., Denver, Colo.
and
one-half
common
Webb &
Broadway, New York, and 136 Locust St., Jerome,
'Underwriter—Miller Securities Co., New York.
authorized
ceeds—To
1
will
year
be
that
proposed
debt
be
from
used
to
Th&
Underwriters—Smith,
Bar¬
Manufacturing Co.
June 25 it
sell
debenture
$60,000,000.
$75,000,000 to $150,000,000.
Pro¬
help pay for a $100,000,000 con¬
struction program for
1953.
ney & Co. may head
group.
Bates
around
timing of the financing are still to be
Stockholders voted May 5 to increase
the
determined.'
was
reported company planned to offer and
additional shares of common
stock.
Pro¬
750,000
ceeds—To
purchase
writers—Probably
properties in the South.
Coffin & Burr, Inc.,
Under¬
Boston,
and The First Boston
Mass.j.
Corp., New York. Plan Opposed—
Consolidated Textile Co.,
Inc., is opposing the proposed
Blair
$1.28
cumulative
share
of
common
for
each
con¬
Puget
share to holders who do not elect to re¬
of $27 per share. Underwriter—
Knapp, Inc., New York
June 29 filed 3,000,000 shares of common stock
(par 10
cents), of which 100,000 shares are to be offered after
effective date; the
remaining 2,900,000 shares will be
offered from time to time
prior to July 15, 1954. Price—
At market. Proceeds—To William
Zeckendorf, President
and
Holdings Corp.
24
it
was
announced
company
sell
plans to issue and
publicly $2,000,000 of convertible debentures. Pro¬
ceeds
For development of
Stanwell Oil & Gas
Ltd.*
newly acquired subsidiary.
—
Underwriters—Blair, Rollins
& Co. Inc. and The First
California Co.
Central Hudson Gas & Electric
Corp,
June 16 Ernest R.
Acker, President, announced that com¬
pany plans to offer (1)
approximately 140,000 shares
common stock to
stockholders at rate of one new share
for each 15 shares
held; (2) 20,000 shares of
selling stockholder who owns 11,567,804.7 shares.
Business—Real estate and other interests. Underwriter
—None.
>
common
employees; and (3)^$6,000,000 of convertible de¬
bentures to public. Proceeds—To
pay off bank loans and
for construction
program.
Underwriters—Probably Kid¬
der, Peabody & Co. and Estabrook &
Co. (jointly). Of¬
fering—Expected early in September.
Central Maine Power Co.
Jan.
2
year
of
it
was
reported
$10,000,000
plans
company
common
sale
later
thlo
stock
(in addition to $10,«
March 10,
1953),
after distribution
by New England Public Service Co. oH
000,000 of 1st &
its
None.
Sun
;stock (par 10 cents). Price—$1
per share. Proceeds—For
•acquisition of mill and working capital. Offices — 150
of
ceive cash at the rate
1277
Valley Mining Co., Jerome, Ida. (8/3-4)
Aug. 9 (letter of notification) 299,000 shares of common
shares
pre¬
ferred
Sound
Pro-
—
1,088,940
the proposed merger into
company of Puget Sound Pow¬
& Light Co. on the basis of one-half share of
(convertible
—
Co., Inc., N. Y.
er
Stemac, Inc., Denver, Colo.
July 21 (letter of notification) $200,000 of 10-year 6%
•convertible
&
vertible preferred stock (par $25) and
1,088,939 shares of
common stock
(no par) to be issued in connection with
Wash¬
-*^©n basis of one share for each $100 of debentures).
\ceeds
For machinery and equipment. Office
Cherokee St., Denver, Colo. Underwriter—None.
Herrick
—
Washington Water Power Co.
bank
Co.,
—
—
State Loan & Finance
ordinated
Price—At
Proceeds—For investment. Underwriter—None.
Washington Natural Gas Co. (8/4)
July 20 (letter of notification) 300,000 shares of common
stock.
Price
$1 per share.
Proceeds
For working
capital.
Office
Clarksburg, W. Va.
Underwriter
(letter of notification) 300 shares of preferred
par ($100 per share).
Proceeds—For
•acquisition and production of screen plays.
Office—
announced
nature and
this
stock to
Francisco, Calif.
Price—At
W.
Un¬
i( Washington Mutual Investors Fund,
Washington, D. C.
July 24 filed 250,000 shares of capital stock.
July 22
120
(William)
ment.
^ Spectrum Arts, Inc., New York
:stock.
Wallace
Co., Belmont, Calif. (7/31)
July 7 (letter of notification) 12,100 shares of
capital
stock (par $10).
Proceeds—For machinery and equip¬
American
was
later
June
—
cap¬
Refining Co.
it
exact
April 24 filed 660,000 shares of common stock
(par $1)
of which 550,000 shares will be
offered in the United
States and 110,000 shares in Canada. Price
$1.02 per
Telephone & Telegraph Co., the parent. Underwriters—
To be determined
by competitive bidding.
Probable
Tfoidders: Halsey, Stuart & Co.
Inc.; Morgan Stanley &
•Co.; Kuhn, Loeb & Co.; The First Boston Corp. Bids—
Received
America, Davenport, Iowa
27
issue
financing.
•
Proceeds
Atlantic
March
Toronto, Canada
Columbia, S. C.
1977.
—
—
^Underwriter—N one.
Southern Bell Telephone &
Telegraph Co.
April 9 filed $30,000,000 of 24-year debentures due
Underwriter—
—
share; to
working
(no par) and 45,891 shares of $6
preferred stocfe
(no par), both callable at $110 per share.
Underwriters—
by competitive bidding. Probable bid¬
ders. Blyth &
Co., Inc, and Equitable Securities
Corp.
(jointly); W. C. Langley & Co., and The First Boston
Corp. (jointly); Kidder, Peabody &
Co., and Merrill
Lynch, Pierce, Fenner & Beane
(jointly); Union Securi¬
ties Corp.
To be determined
capital. Underwriter—A. J. Boldt &
Co., Davenport, la.
Walburt Oils Ltd.,
Southeastern Fund, Columbia, S. C.
Price
share.
March 2 (letter of
notification) 10,000 shares of common
stock. Price
$10 per share. Proceeds
For working
June 26 (letter of
notification) 116,016 shares of common
.•stock (par $1) to be offered to stockholders
through
transferable warrants; unsubscribed shares to be offered
per share.
Proceeds—For
Office—Palmetto State Life Bldg.,
per
Proceeds—For
gpetitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp. and Harris, Hall & Co. (Inc.)
<jointly); Blyth & Co., Inc.; Kuhn, Loeb & Co. Bids—
Expected to be received about Aug. 25.
ital.
$8.50
Price
At par ($25 per
share).
working capital. Office—3460 Wilshire
Blvd., Los Angeles, Calif. Underwriter—None.
Proceeds—For 1953 construc¬
Underwriters—To be determined by com-
jpublic, $2.37 V2
—
it Universal Finance Corp., Los
Angeles, Calif.
July 27 (letter of notification) 12,000 shares of 6% cumu¬
foonds, series E, due 1978.
to public.
Price
York, N. Y.
None.
^Southern California Edison Co. (8/25)
July 27 filed $30,000,000 of first and refunding mortgage
tion program.
30-day period.
a
Proceeds—To reimburse
treasury in connection with re¬
demption July 1 of 821 shares of $7 first preferred stock.
Office—535 Pearl St., New
develop property.
Idaho.
Underwriter—Gearhart &
stock
for
outstanding 5J/2%
^ Silver Buckle Mining Co., Wallace, Idaho
July 20 (letter of notification) 500,000 shares of common
To
etc.
Proceeds
United States Radium
Corp.
July 17 (letter of notification) 10,603 shares of common
stock (par $2) to be offered for
subscription by stock¬
July 24 filed 201,563 shares of
ito
Price—To be supplied by amendment.
33
gen. mtge. bonds sold
holdings of Central Maine Power
Co.
common
stock*
Probable bidders: Blyth &
Co., Inc. and Kidder,
Peabody
& Co.
(jointly); Coffin & Burr, Inc.; A. C. Allyn &
Co.,
Inc. and
Bear, Stearns & Co. (jointly); Harriman
Ripley
& Co., Inc.
ir Central-Penn National Bank of
Philadelphia
July 24 it was reported Bank plans to issue
its
and
stockholders
sell to
additional 124,125 shares of
capital
(par $10) to be offered on a l-for-3
basis. Price
—$30 per share. Proceeds—To increase
capital and sur¬
plus.
an
stock
Central Power &
Light Co.
it was reported
company may issue and sell
60,000 shares of new preferred stock.
Underwriters—To
be determined by
competitive bidding. Probable bidders:
Stone & Webster
Securities Corp.; Lehman Brothers
md Glore. Forgan & Co.
(jointly); Blyth & Co., Inc.*
Harriman Ripley &
Co., Inc. and Smith, Barney & Co*
(jointly); Salomon Bros. & Hutzler.
1
Columbia Gas
System, Inc.
April 6 it was announced
company plans to issue and
sell later this
year $40,000,000 of new
debentures.
Pro¬
ceeds—To repay bank loans
and for construction
March 2
,
West Coast Pipe Line
Co.,
Dallas, Tex.
Nov. 20 filed
$29,000,000 12-year 6% debentures due Dec.
15, 1964, and 580,000 shares of common stock (par 50
cents) to be offered in units of one $50 debenture and
one
share of stock.
Price
To be supplied by amend¬
Proceeds—From sale of units and 1,125,000 addi¬
tional shares of common stock and
private sale of $55,000,000 first mortgage bonds, to be used to build a
1,030
—
ment.
mile crude oil
pipeline.
Co. and Union Securities
Underwriters—White, Weld &
Corp., both of New York.
fering—Postponed indefinitely.
«
Of¬
West Coast Pipe Line
Co., Dallas, Tex.
1,125,000 Snares of common stock
Nov. 20 filed
(par 50
cents). Price—To be supplied by amendment. Proceeds
—Together with other funds, to be used to build pipe¬
line. Underwriters
White, Weld & Co. and Union Se¬
curities Corp., both of New York.
Offering—Postponed
—
indefinitely.
Western Safflower Corp.
April 9 (letter of notification) 240,000 shares of common
itock (par 25 cents). Price—$1.25
per share. Proceeds—
To construct plant. Office—First National Bank
Bldg.,
Colorado Springs, Colo. Underwriter—E. I.
Shelley Co.,
Denver, Colo.
,
Williston Basin Oil Exploration Co.
June 17 (letter of notification)
1,000,000 shares of com¬
mon
stock
(par 10 cents).
Price—Expected at around 30
Proceeds—For working capital. Office—
209 Atlas Bldg., Salt Lake
City, Utah. Underwriter—J.
A. Hogle & Co., Salt Lake
City.
cents per share.
pro¬
gram.
Underwriters—To be determined
by competitive
bidding. Probable bidders:
Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co.
subordinated
convertible debentures due Oct.
15,
1956 to be offered
exclusively to stockholders. They will
be convertible into
common stock at
$12
per
Denver & Rio
July
sell
7
it
Prospective Offerings
Fidelity & Casualty Co. (8/20)
July 8 it was stated registration is planned around
July 28 of about 100,000 shares of convertible preferred
stock (par $5) to be offered for
subscription by common
stockholders about Aug. 20 on a share-for-share
basis;
with about a
14-day standby.
Price — To be named
later.
Proceeds—For working capital.
Underwriter—
Geyer & Co., New York.
Arkansas Power & Light Co.
March 20 it was announced that
company may consider
refunding the outstanding 47,009 shares of $7 preferred
was
$3,300,000
Grande Western
reported that the
RR.
share.
(8/31)
company
additional
,
proposes
to
equipment trust certificates^
Halsey, Stuart & Co. Inc.; SalomoD
Probable
bidders:
Bros. & Hutzler.
Detroit Edison Co.
March 24 it was announced
company plans to issue an
unspecified amount of convertible
debentures due 1963
(about $55,000,000 to carry an interest
rate not
exceeding
4%) which may first be offered for
subscription by
stockholders. Proceeds—To retire bank
loans and to meet
construction
costs.
authorized the
•
Duke
July
9
new
Meeting—Stockholders
debentures.
Power Co.
company
on
April 14.
Underwriter—None.
(9/1) "(9/2)
announced
it
plans
to
issue
and
sell
mortgage bonds,
1983, and 208,321 additional shares of common
stock
due
$35,000,000
latter
to
l-for-20
American
„
it Consolidated Textile
Co., Inc.
July 22 the directors authorized an issue
of $1,000,000
5%
first
and
stockholders
refunding
of
record
Sept.
2,
basis); rights to expire Sept. 18.
1953,
(the
on
a
Underwriters
—(1) For bonds, to be determined
by competitive bid¬
ding. Probable bidders: Halsey, Stuart & Co.
Inc.; Mor¬
gan Stanley & Co.; Stone &
Webster Securities
Corp.;
The First Boston
Corp. (2) For stock, no underwriters.
Proceeds—For construction
program.
Bids—For bonds,
expected to be opened on
Sept. 1.
* Duquesne Light Co.
(9/13-17-22)
July 17 it was reported
company is planning issuance
and sale of
$12,000,000 of first mortgage
bonds, about
100,000 shares of preferred stock
(par $50) and about
150,000 shares of common stock.
Underwriters—May be
determined by competitive
bidding. Probable bidders:
(1) For bonds only:
Halsey, Stuart & Co. Inc.; Drexei
Continued
on
page 34
'
The Commercial and Financial Chronicle
(378)
34
(jointly); Kuhn,
C. Allyn &
Inc. (jointly); Glore, Forgan & Co., White, Weld &
Harriman Ripley & Co. Inc. (2) For preferred stock:
Co.,
Co.;
Equitable Securities Corp.
and
Co
&
Expected to be received up to noon (EDT)
Registration—Planned for Aug. 11.
33
Continued from page
Co., Union
&
Loeb
Securities Corp. and A
Corp.; Kidder,
The First Boston
Pe5b°dy & w°V^erpn
and White, Weld & Co.
(jointly); Kuhn, Loeb & Co. and Smith, Barney & Co.
(jointly); Blyth & Co., Inc. (3) For common stock, fhe
First Boston Corp. and Lehman Brothers (jointly), Blyth
& Co., Inc. and Merrill Lynch, Pierce
Fenner & Beane
(jointly); Kidder, Peabody & Co. and White Weld & Co.
(jointly); Carl M. Loeb, Rhoades & Co. and Wertheim &
Co. (jointly); Stone & Webster Securities Corp.; Kuhn,
Loeb & Co. and Smith, Barney & Co. (jointly), Union
Securities Corp.
Bids — For common stock, expected
about Sept. 15; for preferred stock about Sept. 17; and
Pierce, Fenner & Beane
Lvnch
for bonds about Sept.
22.
Associates
announced company plans sale of $7,000,000 collateral trust mortgage bonds due 1973.
Under¬
writers—To be determined by competitive bidding. Prob¬
able bidders:
Halsey, Stuart & Co. Inc.; Estabrook &
Eastern Utilities
nn.
,
Feb. 20 it was
Securities Corp. (jointly); The
Boston Corp., White, Weld & Co. and Kidder, Pea-
Co. and Stone & Webster
First
Co. and Harriman
body & Co. (jointly); Glore, Forgan &
Ripley & Co. Inc. (jointly).
First Railroad & Banking
/
Co. of Georgia
announced that this new company will
of Georgia Railroad & Banking Co.
in exchange for each share held, one share of the new
company's stock, the right to subscribe within 30 days
May
it
4
shares at
additional
13
for
was
stockholders
offer
trust 5%
collateral
effective
become
$4.10
$250
a
1, 1990; the offer to
bond due May
upon
share and
per
acceptance by 95%
of the out¬
An additional 210,000 of the new shares
would be purchased by the underwriters, plus any 01
the unsubscribed shares. Proceeds—To retire $2,190,000
standing stock.
of Georgia
an
&
Railroad & Banking Co. debentures held by
insurance firm. Underwriters—Johnson, Lane, Spact
Co. and Joseph Walker & Sons.
General
April 27
Telephone Co. of Kentucky
it
reported early registration
was
is
expected
of
50,000 shares of cumulative preferred stock (par $50).
Underwriters
Probable
Paine, Webber, Jackson &
—
Government Employees Corp.,
March 18 stockholders authorized
preferred stock (par $100) to
an
Washington, D. C.
issue of 3,000 shares
cumulative divi¬
dend rate not to exceed 6% annually. The management
states that, under present plans, these shares will be
issued
carry a
the growth of the corporation warrants.
as
Greenwich Gas Co.
May
the Connecticut P. U. Commission authorized
to issue and sell $200,000 of first mortgage
bonds and $483,000 par value of common stock
(the
latter first to stockholders). Proceeds—To retire bank
7
company
i
loans. Underwriter—F. L. Putman &
Gulf, Mobile & Ohio RR.
Bid^
Co., Boston, Mass.
(8/12)
expected to be received by the
are
company
on
Aug. 12 for the purchase from it of $4,500,000 equipment
certificates.
trust
Probable
bidders:
Halsey,
Stuart &
Co. Inc.; Salomon Bros. & Hutzler.
Illinois
July 9
Bell
Telephone Co.
company
to issue and sell
to
stockholders
parent,
owns
stock).
all but about 4,000 shares
Proceeds
Indiana
July 23
—
To
retire
of
it
&
to
parent
Michigan Electric Co.
reported company is planning issuance
$15,000,000 first mortgage bonds due 1983
and probably also $5,000,000
of preferred stock, late
in September or early in October. Underwriters—To be
and
sale
purchase
cates to mature
Stuart & Co. Inc.; Salomon Bros. & Hutzler.
sey,
Maier
April
it
18
was
of
determined
by competitive bidding. Probable bidders:
(1) For bonds: Halsey, Stuart & Co. Inc.; The First Bos¬
ton Corp.; Kuhn, Loeb &
Co.; Union Securities Corp.;
announced
was
of four
rate
shares for
new
Gas
Co.,
Inc.
pay
$800,000
bank
loans
and
for
new
construction.
Underwriter—Central Republic Co., Inc., Chicago,
111.
Long Island Lighting Co.
April 21 it was announced that company this Fall plam
to issue and sell in the
neighborhood of 600,000 sharei
of
new common stock to be
followed in the latter part of
the year by an issue of about
$25,000,000 of first mort¬
bonds
gage
series
May
(this, is in addition to 100,000 shares of
preferred stock, par $100, offered
publicly on
7). Proceeds—To repay bank loans and for new
C
construction.
Underwriters
(1) For common stock,
probably Blyth & Co., Inc. and The First Boston
Corp.
(jointly). (2) For bonds to be determined by com¬
petitive bidding. Probable bidders:
Halsey, Stuart & Co.
&
Co., Inc. and The First Boston Corp.
(jointly); W. C. Langley & Co.;
Smith, Barney & Co.
—
Louisiana Power &
June 10 it
seH
in
was
Light Co.
September
$12,000,000 first mortgage bonds.
Underwriters—To be determined
by competitive bidding.
Halsey, Stuart & Co. Inc.; Kuhn, Loeb
Probable bidders:
9°. v Lehman Brothers and A. C. Allyn & Co., Inc.
4w£ay)*; Co. /•
White' Weld & Co- and
Shields & n
<► T.
(jointly); Salomon
Bros. & Hutzler; W. C.
The first Boston
Corp., and Glore, For-
Rean?
(J.o'jt'y): Merrill Lynch, Pierce,
JlfnW a,nd Co.,
Kidder, Peabody & Co. (jointly);
pley &
Fenner &
Harriman
Inc.; Equitable Securities Corp.
Bids—
Bids—Expected, about Sept. 15.
stockholders
25
approved
issuance
(N. J.)
and
sale
to
stockholders of record June 9 of 70,000 additional shares '
of capital stock (par $5) on the basis of seven new shares
for each 20 shares held following
split-up of present-
outstanding
$25
40,000
par
shares
into
200.000
$5
par '
'
.
Tex.
•
Mississippi Power Co. (10/6)
July 20, L. P. Sweatt, President, announced company
plans to issue and sell $4,000,000 of 30-year first mort¬
gage bonds due 1983. Proceeds,— For construction pro¬
gram.
Underwriters—To be determined by competitive
bidding.
Probable bidders; Halsey, Stuart & Co. Inc.;
Union Securities Corp.; Equitable Securities Corp. and
Pittsburgh & Lake Erie RR.
Bids
•
it
sell
50,000
stock
(oar
•
stock,
which
&
ton
N.
E.,
,
proposing
to
extending
construct
from
Colorado
Estimated
to
the
a
San
market
overall
1,466Juan
areas
capital
in
cost
the
project is $186,000,000, including $2,000,000 for
working capital. Financing is expected to consist of first
stocks.
pipe
line
bonds
and
the
Fall.
some
con¬
Underwriters
Stone
&
Webster."
.
announced company (in addition to above-
proposed stock offering) plans to issue and.
$30,000,000 of debentures. Proceeds—For 1953
program.
Underwriters—To
be
determined
preferred
Morgan Stanley & Co., White, Weld & Co.,
Equitable Securities Corp. (jointly); The First Bos¬
Corp., Harriman Ripley & Co. Inc. and Goldman
(jointly). Offering—Expected later in 1953.
Western Massachusetts Companies
June
30, H. J.
Caldwell,
President,
would
provide the company's
>
-
stated
studying plan to issue and sell additional
which
trustees
common
are
stock,
electric subsidiary
with sufficient funds to retire not exceeding one-half of
an
$8,000,000 bank loan.
A total of 978,527 no par com--
shares are presently outstanding.
Offering — Ex¬
pected before end of 1953, subject to market conditions.
Underwriters
May be The First Boston Corp., New.
mon
Westinghouse Air Brake Co.
July 8 it was announced stockholders will
on
Aug, 25
increasing the authorized indebtedness to not
exceeding $50,000,000 at any time outstanding.
Financ-i
ing b^ing considered to pay off $30,000,000 bank loans
owed |by Le Tourneau-Westinghouse
Co., a new sub-"
sidiary, and for working capital.
Underwriter—The.
vote
Albu¬
.
mortgage
before
—
Pacific Northwest Pipeline Corp.
Jan 29 company received FPC permission to file a third
Northwest.
was
Sachs & Co.
Under¬
arranging for long-term financing. Underwriters—May
be Glore, Forgan & Co. and Kalman & Co.
Pacific
Pipe Line Corp.
may issue
company
stock
Co. Inc.;
and
25 FPC authorized company to issue a maximum
$4,000,000 unsecured promissory notes to banks, the
proceeds to provide funds to temporarily finance the
company's 1953 and 1954 construction programs prior to
of
Merrill
Securities
York.
will
Central Avenue,
and
preferred
construction
of
in New Mexico
Gas
reported
was
sell about
June
Basin
Inc.;
Union
of
mentioned
N. M.
line
will
year
May
reported company plans to issue and sell)
was
United Gas Corp.
Otter Tail Power Co.
Application
it
May 1 it
offered
transmission
Co.
—
White, Weld & Co. and
Securities Corp., both of New York.
register
mile
4
vertible
cumulative
be
substitute
&
and
Transcontinental
May
company
to
querque.
Underwriters
by competitive bidding. Probable bidders: Halsey, Stuart.
this
with
Office—5003
later this
cumulative
debentures.
Probable
bidders:
Halsey,)
Inc.; Stone & Webster Securities Corp. and;
Whitej Weld & Co.; (jointly).
Co.
Ormond Corp., Albuquerque, N. M.
March 10 it was announced company plans
nationally.
of
—Probably
Price—At par ($20 per share).
writer—The Ohio Company, Columbus, O.
of
company
shares
Stuart & Co.
authorized by Ohio P. U. Com¬
issue
cort
Tennessee Gas Transmission Co.
$20,000,000
it Ohio Consolidated Telephone Co.
an
Beane
&
July 20 it
publicly in the United States and
Canada. Underwriter—Morgan Stanley & Co., New York.
SEC
estimated
Lynch, Pierce,;
Corp. (jointly);;
Lehman Brothers; Blyth & Co. Inc., and Stone & Webster
Securities Corp. (jointly).
stock at $10 per share
the
Ripley
Fenner
000,000 of 5% debentures and 1,400,000 shares of common
was
$100).
Harriman
000,000 of 4V?% first mortgage pipeline bonds to insur¬
ance companies and other institutional investors and $9,-
company
an
preferred
be determined
by competitive bidding. Probable bidders: White, Weld"
& Co. and Kidder, Peabody & Co.
(jointly); W. C. Lanf-:
ley & Co and Paine, Webber, Jackson & Curtis (jointly)
*
that
at
Electric Co.
and
plans to
finance its proposed 1,300-miles pipeline from Canada to
the Pacific Northwest by the issuance and sale of $66,reported
was
&
issue
planned to issue
and sell 250,000 shares (par $100) this Fall. Proceeds—
For expansion program. Underwriter—Blyth & Co., Inc.,
handled recent common stock financing.
23
Florida
and
Rehearing by FPC to be held Aug. 10.
an¬
shares of preferred stock, of which it is
Northwest Natural Gas
Georgia
announced
July 17 Harry H. Siert, Treasurer, announced that stock¬
holders will soon vote on authorizing an issue of 750,000
March
Alabama,
$8,141,518.
was
Corp.
reported that company may, later in 1953,
issue and sell $20,000,000 first mortgage bonds (following
private sale of 75,000 shares of 4.40% preferred stock,
par $100 in February and $5,000,000 of 33A% debentures
due 1991 in April). Underwriters—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; The First Boston Corp. and Glore, Forgan
& Co. (jointly); Blyth & Co., Inc. and Smith, Barney
& Co.
(jointly); Hemphill, Noyes & Co. and Drexel
& Co.
(jointly); Kidder, Peabody & Co. and Salo¬
mon Bros.
& Hutzler (jointly); Lehman Brothers; Har¬
riman Ripley & Co., Inc.
Co.
was
announced a FPC Presiding Examiner i
decision, subject to Commission review, author¬
the company to construct 335 miles of pipeline
Dealer-
Proceeds—To retire bank loans.
Natural Gas
Georgia Natural Gas Co.
Southwestern Gas
was
Northern
on
April 29 it
Price—To be
(8/5)
received
it
in
offering.
it
be
a
izing
New York State Electric & Gas
Feb. 27,
19
of
Manager—The First Boston Corp. served in last common
stock
South
filed
& Electric Association
July 24 company sought SEC permission to issue and sell
194,916 shares of common stock (par $8) to be offered
for subscription by common stockholders at the rate of
share for each 10 shares held.
(EDT)
noon
Feb.
it New England Gas
new
to
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.
(jointly); Merrill Lynch, Pierce, Fenner &
Beane; Kidder, Peabody & Co.; The First Boston Corp.
Bids—Expected to be submitted on Oct. 6.
Registration
Expected Sept. 4.
one
expected
are
by the company up
Aug. 5 for the purchase from it of
$3,225,000 equipment trust certificates to b'e dated Sept.:
1, 1953, and to mature in 15 years.
Probable bidders:
to
Drexel & Co.
the
(9/15)
announced company
expects to issue and
shares.
shares on a 5-for-l basis; rights to expire Aug. 14. Un¬
Exploration Co., Inc., Houston, Tex.
subscribed shares to be offered to public. Price—$15
per ■
April 8 it was announced company plans to issue and
share.
Proceeds—To increase capital and
sell $1,000,000 of convertible debentures.
surplus.
Proceeds—Toy
Permian Basin Pipeline Co.,
finance development of oil properties in Ecuador. Under¬
Chicago, III.
Feb. 4 company filed an amended application with FPC 1
writer—Kidder, Peabody & Co., New York.
for authority to construct a 163-mile pipeline
system at
Milwaukee Gas Light Co.
an estimated cost of $40,269,000.
Financing may be done
July 7 company sought SEC approval of a bank loan
privately. Underwriters — Stone & Webster Securities of $9,000,000' the mature Aug. 1, 1954. These borrowing,
Corp. and Glore, Forgan & Co., both of New York. Of
plus retained earnings, are designed to finance expansion
the stock of this company, 51% is now owned
by North¬
pending formulation of permanent financing prior to
ern Natural Gas Co.
!
maturity of notes. Probable bidders for bonds: Halsey,
Stuart & Co. Inc.; Glore, Forgan & Co. and Lehman
it Petroleum Service, Inc. (Texas)
Brothers (jointly); Smith, Barney & Co. and Blyth &
July 22 it was reported company is considering doing
some financing this Fall.
Co., Inc. (jointly); Kuhn, Loeb & Co.; Kidder, Peabody
Underwriters—Probably Aetna
Securities Corp., New York, and Garrett & Co..
& Co.; Harriman Ripley & Co. Inc.
Dallas,
preferred stock.
12 it was reported company may issue and sell
about $4,750,000 first mortgage bonds. Proceeds—To re¬
common
Menabi
mission to issue and sell 75,000 shares of 6%
May
Underwriter—
by
Stuart
Securities
June
plant.
July 23
Natural
bank loans.
determined
Peoples Trust Co. of Bergen County
share. Prcoeeds — To help finance a new bottling
Underwriter—None.
•
per
To repay
be
to
Pacific
Price—$5
share held.
Harriman Ripley & Co. Inc.
Kansas-Nebraska
<
stock to its stockholders at
each
—
to
Corp. (jointly). Stock would be of-*
stockholders, without underwriting. American •
Telephone & Telegraph Co., parent, owns 91.25% of
will offer 400,000
company
common
Boston
(2) For preferred: The First
Corp.; Lehman Brothers; Union Securities Corp.
Union
fered
Brewing Co., Los Angeles, Calif.
additional shares of
bonds
Thursday, July 30, 1953
competitive bidding.
Probable bidders: Halsey,
& Co. Inc.: Morgan
Stanley & Co.; White, Weld & Co.; Lehman Brothers and
it of $7,650,000 equipment trust certifi¬
in l-to-15 years. Probable bidders: Hal¬
from
Proceeds
For
^Louisville & Nashville RR. (8/10)
1
the company on Aug. 10 for the
outstanding
indebtedness
Underwriter—None.
company.
•
i
sought Illinois Commerce Commission
568,703 shares of capital stock (par $100)
(American Telephone & Telegraph Co.,
held.
Sept. 15.
on
Bids will be received by
nounced later.
Curtis and Stone & Webster Securities Corp.
of
...
i
and
common
Underwriters—White,
Weld & Co. and Kidder,
Peabody & Co., both of New York, and Dominion Secu¬
rities Corp. Ltd.,-Toronto, Canada.
First
on
Boston
Corp., New York.
Wisconsin
July IB it
.
Power
&
Light Co.
(8/31)
reported company may issue and sell $8,-mortgage,bonds, series G, due 1983. Pro-;
was
000,006 first
ceeds-§-To repay bank loans and for new construction.
Underwriters—To be determined by competitive bidding.
Probaple bidders: Halsey, Stuart & Co. Inc.: Smith, Bar¬
ney
Co. and Robert W. Baird & Co.
(jointly); Union
Corp.; Salomon Bros. & Hutzler: White, Weld
Kidder, Peabody & Co. (jointly); Glore, For-'
gan & Co.; Equiiable Securities Corp.; The First Boston
Corp.^ Bids — Tentatively expected to be received on
Aug. 31.
/
"
*
Securities
& Co. and
Worcester Gas Light Co.
April 2 it
was announced company has applied to the
Massachusetts Department of Public Utilities for author-,
ization to issue and sell $3,000,000 of 20-year first mort¬
Pacific Telephone & Telegraph Co. (9/15)
July 2 it was announced company plans to issue and
sell $50,000,000 of 31-year debentures due Sept. 15, 1984
and 1,004,603 shares of common stock at $100 per share
gage bonds. Proceeds—To retire bank loans, etc. Under-!
writers—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; First Boston
in-the
Corp.; Blyth & Co., Inc.; Kidder, Peabody & Co.
ratio
of
one
new
share
for
each
seven
shares
Number 5242
Volume *178
The Commercial and Financial Chronicle
...
(379)
West
Coast
utility companies
taking the lead in
setting up plans for entering the
money market early in the fall.
Pacific
Telephone & Telegraph
to
appear
Co.
has
proposed
the dullest week of the
'mis was
in the corporate underwrit¬
ing field and the prospect is for
of
more
the
ahead.
in
same
Aside
the
from
period
the
of the
For the moment,
to
much
in
less
are
vacation-minded
seem
to
they
People
and
don't
the
sale
It
also
probably
ratio
at
satisfied
the
to
to
be
Tel.
sell
set
&
W. J. ROSE,
do
little
Shelves
Pittsburgh,
At
of
scattered
orders
as
overwhelmingly
side.
appear
-
the
on
declared
Stock
NOTICES
those
inclination
no
whatever
to
Rector
Street,
COMMON
The
a
Board
the
start,
flection
continues
in
find
to
gradual but
an
are now
102V2 and hard to find.
keted at
100 and also
start, is
of
and
week
largely
far
slow
mar¬
as
the
the
form
a
W.
10,
are
be
of
business
On the
due
are
Common
Dividend
August
1953.
10,
market
40,000
group
shares
preferred
of
7,
MANUFACTURING
L.
Hilyard,
Framingham, Mass.
Cents
Forty
94 of
September^
per
share
tribution
same
a
stock
A
I09TH YEAR
a
group
secondary
&
is
61
ISonUtvd
No.
174
Broadway,
share
stock
stand
receive
already
any
of
ceeds.
is
the
of business
out¬
does
company
the close
at
pro¬
has
payable
September
L.
reported
go
into
making
registration
new
for
This issue, to
carry a 25-year
maturity, is expected to reach the
bidding stage late next month, its
application to the California Pub¬
lic Utilities Commission said.
Pro¬
ceeds will finance new construc¬
tion.
DIVIDEND
the Board of Directors, as
by
follows:
CUMULATIVE PREFERRED STOCK
of
record,
No.
$.81 Va
per
September
1,
$.60
per
tember 30,
of
record
E.
25^
Green, Secretary
September 15,
Commercial
Financial
July 27, 1953
of
Cumulative
ucc
A cash dividend of
Fifty cents
share on the outstanding
capital stock of this Corporation
per
ord
at
the close of business
KENNETH H. HANNAN,
Secretary and Treasurer
a
Directors
share
per
de¬
has
quarterly dividend
United States Lines
of
the outstand¬
on
tive
Company
25,
1953
of
Company
a
Beard
of
declared
per
Preferred
record
tember
as
2,
The
1953
of
on
750 OFFICES
~lXddn
RAHWAY, N. J.
Series
to
Quarterly dividends
Hooker
July
22,
dividend
B,
the
payable
stockholders
business
Stock
Company
to stockholders
per
of
on
quarterly
a
87^2 <f
of
Sep¬
Hooker
July
22,
dividend
share
on
payable August 28,
of
record
August
3,
a
share
common
WodtiALLil | NDUSTRIESI | NC.
on
the
a
stock,
share
on
A
$3.50 cumulative preferred
$1.00
a
share
31
the
on
as
of
the
of
share
stock,
on
second
and
pre¬
$1.06V4
1953
close
a
2nd
ferred
stock
have
on
been
at
the
de¬
of
record
regular quarterly dividend of
share on the Common Stock
has been declared payable August
31, 1953 to stockholders of record
August 14, 1953.
30^
Sep¬
11, 1953.
per
AND CANADA
John H. Gagf
July 28, 1953
Irer
Treasurer
August
A
October 1,
of business
close
Stock has been
14, 1953.
1953 to stockholders of record
tember
stockholders
to
the $4.25 second pre¬
clared, payable
Preferred
declared payable September 1, 1953
its
1953.
WILCOX
$4.00 convertible
ferred
regular quarterly dividend of
^ per share on the 5% Con¬
vertible
Dividend
Directors
($.50)
20<t
of
of
Sec¬
Secretary
"Benefictaf
MERCK & CO.. INC.
stock,
of
Common Stock,
IN U. S.
<►
of
1953.
Cumulative
ANSLEY
OVER
22,
Cumula¬
1953.
Cents
business
Its
1953
declared
The Board of Directors has authorized
payment of a quarterly dividend of
fifty cents ($.50) per share payable
September 4, 1953, to holders of Common
Stock of record August 21, 1953, who on
that date hold regularly issued Common
Stock ($1.00 par) of this Company.
CHAS. F. BRADLEY, Secretary
One Broadway, New York 4, N. Y.
Preferred
.the close of
Beard
CLARK
Treasurer
Dividend
Directors
Stock,
25,
of
B
quarterly
on
Electrochemical
of
July
September 2,
Company
a
share
A.
Hooker
dividend
$4.25
Second
Electrochemical
1953
Fifty
Treasurer
its
on
Series
Common
1953.
on
quarterly
business
Stock,
Stock
DIVIDEND
the
of
payable September
stockholders of record as of
to
the close
Common
August 11,1953.
on
THOS.
Preferred Stock,
September
Philip Kapinas
of record
July 23, 1953.
Preferred
Directors
share
per
August
3, 1953.
Dividend
of
declared
The
business
the
GREENBURGH,
The transfer books will not close.
ELECTROCHEMICAL
Board
$1.9625
payable Sep¬
close
De¬
August 14, 1953.
ing Common Stock, payable on
Stock
The
share
1953 to stockholders
at
Box 716,
at
NOTICE
of
COMPANY
share
are
Clerk, experienced.
Board
clared
1953
$4.25
1946
Quarterly Dividend of
record
32
i
Cumulative
$3.25 Dividend Series of
The dividends
New York 7, N. Y.
on
ended
September
on
carbon corporation
and
CORPORATION
DIVIDEND
1953
Dividends have been declared
Position Wanted:
25/ Park Place,
business
close.
not
PRODUCTS
The
Electrochemical
DIVIDEND NOTICE
year
payable
profits of
Union Carbide
(50(0
twenty-five cents (25(f)
per
share,
payable on September 15, 1953 to
ond
Chronicle,
Sep¬
books
Treasurer.
Street, New York 17, N. Y.
COMMON
loan corporation
COMMON STOCK
and
G.
business
transfer
CORPORATION
60 E. 42nd
$1.05
Order
of
The
NATIONAL DISTILLERS
BENEFICIAL
quarterly period ending
September 30, 1953)
and
close
1953.
JOHN
WEST INDIES SUGAR
HOOKER
(for
Trader
1952,
net
payable
stockholders of
to
Company will
ers
1
Assistant
31,
1953, to stockholders of
September 1, 1953, to stockhold¬
$30,-
of
Railway Company has today been
Company for the fiscal
15,
One-half
value
par
has been declared, payable Septem¬
ber 1, 1953 to stockholders of rec¬
July 28,
bonds.
and
2,596,400 shares
cents per
declared,
Treasurer
Harry
preparations
on
without
J. J. MAHER, Secretary.
NOETZEL
July 28, 1953
as
as
is
the
9,
at
is
to
at
of the
1,
1953.
Southern California Edison Co.,
000,000 of
record
tember
capital stock of The Borden
stockholders
they appear
cur¬
likely that corpora¬
tions will be taking a
good look at
things in the early fall.
it
Sixty-two
share
N. Y.
6,
fifty (50c)
been
The. Board of Directors has this
day
declared
a
quarterly
dividend
of
Secretary
July 28, 1953.
1
favorable
August 14, 1953.
W. C. KING,
not
If market conditions
continue
COMPANY
York
New
September 23, 1953,
share has been declared
Per
the
Dye Corporation, payable
holders of record
of
Per
Stock
July 8, 1953
the Com¬
on
Stock of Allied Chemical
September 10, 1953 to stock¬
dis¬
(62V2(0
Common
cember
COPPER
($.00) per share
has been declared
block of 400,000 shares
Dow
Chemical Co.
the
of
the
MIAMI
1953, to stockholders of record
Quarterly dividend No. 130 of
Sixty Cents
mon
dividend
Gents
Southern
Company,
Penn
NOTICE
declared out of the surplus of
(60(Q
of
this
to
day,
in
standing
DIVIDEND
New York, July 28, 1953.
the close of business August 7, 1953.
stock.
offer
Company
the "A" Common and
on
A. B. Newhall, Treasurer
President
E.
the
to
Railway
of 30 cents
record Aug. 10,1953.
N. Y.
Brooklyn,
on
7s
is
Bickham, Secretary
sn
Southern
VotingCommon Stocks will be paid
Sept. 3, 1953, to stockholders of
A dividend of
hemical
bankers have on
issue of $5,000,000 of Atlas
Corp. debentures, plus
150,000 shares of the company's
common
W. D.
1
"A" Common and Voting Common:
s-Srof rscM<i
Treasurer
IHed
APi<
an
1953.
COMPANY
A quarterly dividend
An interim dividend of sixty cents
of
to
Aug. 10, 1953.
cow-ant. -nc.
DIVIDEND
Wednesday,
rently,
at
busi¬
July 28, 1953
Plywood
September 10,
stockholders of record
the close of business
August
1953,
close of
Harry
the
payable
pany,
Preferred
Checks will
offer
of
of Directors today
quarterly dividend of
share on the outstand''
a
Debenture Stock will be paid Sept.
3, 1953, to stockholders of record
Fruit Co.
Since
50$ per
Corporation,
to
close of
McCASKEY, JR.
Secretary
manufacturing
are re¬
to
Board
dividend of $2.00 per share on the
opera¬
common
day another
same
to
convertible
The
declared
1953.
be mailed.
concerned,
secondary
bankers
1953.
19,
GREENBURGH, Treasurer.
DIVIDEND NOTICES
share has been declared upon the
California, Water & Telephone Co.
of
August
on
JOHN G.
Company, payable in cash on September 1,
to
July
28,1953
Debenture: The regular quarterly
regular dividend of Seventy-five Cents
per
No. 170
of
BALGOOYEN,
and Secretary.
(^j|^ NewYork3,N.Y.
111 Fifth Avenue
(75tf)
pay¬
declared
1953, to stockholders of record at the close
120,000 shares of
And
business
<■'
vised,
slated
dividend
a
the
President
jfc dnvzMJZtm,
A
Dividend
ing capital stock of this Com'.'
1953.
192nd
INCORPORATED
cents
Common Stock of The American Tohacco
On Monday, unless plans
tap
share has been
(10(f)
busi¬
1953.
the
tion.
slated
A.
ten
of
three-eighths
cents
the $4,375 Cumu¬
of
1,
S.
OIL COMPANY
Y.
N.
6,
able September 14, 1953, to stock¬
holders of record at the close of
Company
bid
largest of these will take
of
the
at
promises
issues
new
and
on
September
on
Y.
100 xk
of equity offerings as
one
close of
declared
Stock
D7no
100% asked.
Next
of
record August
Vice
July 24,
selling at
issue,
qouted at
now
N.
York
1953,
and
share
per
Preferred
the
per
dividend
24,
1953, declared a
dividend of 15 cents per share on the Common
Stock for payment September
10, 1953 to the
sec¬
Common¬
wealth Edison's recent
6,
New
July
example of what has been
fortnight ago,
York
persistent
happening. Consumers Power Co.'s
recent 3%s, brought out at 101
a
Common
Corporation,
re¬
improvement in prices in the
ondary market.
As
also
r.ine
at
1,
DIVIDEND
Directors
held
H.
Scarcity, even in recent offer¬
ings, some of which were slow at
New
STOCK
cf
meeting
stockholders
sell.
lative
ness
at
the
payable September
35,
1953,
stockholders of record at the
COMPANY INC.
necessary to pay
show
Board
($1.09375)
are
the market price
holding bonds still
September
dollar
one
Those seeking bonds find it
since
on
The
AMERICAN & FOREIGN POWER
Two
the
on
of
reoord
buying
SOCONY-VACUUM
July 13, 1953.
A
Pcnna.
meeting of the Board of Directors
Allegheny
Ludlum Steel Corpora¬
tion
held
today,
July
23,
1953,
a
dividend of
fifty
cents
(50c) per share was
a
the
some
or
bare, except for
positions and such
are
trading
Broadway,
Allegheny Ludlum Steel Corporation
payable September 30, 1953,
to
Common stockholders of
*
small
SOUTH AMERICAN GOLD
61
scriber.
DIVIDEND
Foundry Company
Secretary.
July 29, 1953.
held
Since
owns
and
JOHN W. BRENNAN,
Secretary & Treasurer
Secretary
1,004,603
later.
Tel.
Board of
The transfer books will remain
open.
& PLATINUM COMPANY
preferred
or
New. York, N. Y., July 23, 1953
The
Directors this day declared a
quarterly dividend of seventy-five cents
(75tf)
per share on the
outstanding Common Stock
of this Company,
payable September 21, 1953,
to stockholders of
record on August
31, 1953.
United States Pipe
VANDERSTUCKEN, JR.,
a1
of the outstanding common,
naturally will be the major sub¬
of trading.
way
E. F.
NOTICES
Pipe and Foundry Company
the close of business August 10, 1953.
ness
nothing in
1953, to stockholders of record at the close
of business August
26, 1953.
on
er
90%
it
share
per
mid-
common in the
share for each
hew
one
common
date
a
to
$100:Jpar
of
\ forty-one cents ($.41)
divi¬
a
additional
Eublic has beentodeclared payablerecord
Septem10, 1953,
the holders of
brought
about
DIVIDEND
dividend of 25 cents per share on the Com¬
pany's capital stock, payable September 15,
r
plar%
shares of
and
Dividend
the Common capital stock of the
Company
issued and outstanding in the hands of the
of
debentures, due
Month
Slock
The Board of Directors has declared
dend of $1.00 per share and an
»Aregular quarterly dividend of
In the circumstances
care.
are
circles
issue."
new
ii|w
September.
ev^n an idea American
underwriting
a
fi¬
which.|v\vill be filed with
market
seven
observer
as one
put it, "there is not
prevalent
market.
money
new
f
includes
next
sues
sections
Common
agericy for its
of
NOTICES
TEXAS GULF SULPHUR COMPANY
//
the Securities arid Exchange Com¬
mission
usual
smattering of small municipal is¬
there was little doing in other
1984,
DIVIDEND
AMKIKICAN HAS
AXD liLECTKIC COMI'AXY
\:i
plan
$50,000,000 of
year
State
$150,000,000
nancing,
in
NOTICES
Lnited States
received the sanction of
the California
This
DIVIDEND
be
35
M. E. GRIFFIN,
f
Secretary-T reasurer
'
^
Chronicle
The Commercial and Financial
36
...
Thursday, July 30, 1953
(380)
Life
Mutual
000,000.
John
Hancock
Insurance
Co., $10,-
and
$15,000,000,
BUSINESS BUZZ
1
of
sale
The
$60,000,000
notes,
bearing 4% and maturing Jan. 1,
1967, was arranged through The
First National Bank of the City of
York, acting as agent for a
New
of 12 banks and two pension
group
The
funds.
5
largest participants
jkrthe bank loans, each supplying
otherwise Demo¬
crats
may
kick it over, but
certain
highly-placed
GOP
leaders figured they had a deal
vertently
out which will remove
worked
issue" which has
Republicans into
who are his violent parti¬
and
those who aro his
the "McCarthy
the
those
sans
be
to
happen
now
em¬
given
ment quietly be
a
year no new
following
and
tions
two
out
three
or
juiciest scandals of the Truman
Administration,
not
yet
un¬
covered. From now until either
probably
the latter, McCarthy and staff
would work quietly, diligently,
-and
silently
acquiring
solid
evidence on these alleged scan¬
fate
fall
January,
or
themof
hearings before the Senate In¬
vestigations
subcommittee
of
dals. They would prepare
•fielves
the
for
pretty round
one
Senate Government
tions
Opera¬
Committee, of which Joe
McCarthy is Chairman of both.
This would afford
lief
for
White
the
great re¬
a
for contracts entered
into before next June 30 to pro¬
vide economic aid and for three
years more
assigned to
of the
be
would
♦us staff
House, it is
years more
politically
'"slay"
Joe. Another group, so
far having the upper hand, says
this would only please Demo¬
alienate
and
Repub¬
sure
rise to a par¬
tial misconception that Congress
"has killed all new, foreign aid
This has given
after this
)•»'
said he wants to study the
has
while Congress ar¬
hopes to cut down the
foreign aid, it wants
dently
volume of
maze of
terms which has evolved out of
to
1948, the military aid law of
truly
amazed
tax
through
the
at
the
the
slipped
way
repealer
Sentiment
in
and
Means
Senate.
fiad long been built up for it
the
House
Ways
at the
spending. •
Only
the
Finance
voted
that
be
Committee
to
re-examine the
removed
ing pictures,
some
committee
wisest
thing
from
tax
mov¬
members of
thought
the
would
committee to forget
be for
the
it, for other¬
wise when the bill reached the
floor the fur and the watch boys
would
be
there
making
an
equally good
-on
case
for tax relief
their commodities.
However, when
liam
F.
with
additional
Beck Worries Many
A
F
L
of
that
thing
and
come
if
he
the
happen," and
the
influence
-•motion picture lobby.
of
is
a
the
latter
Corporation Places
Largest Single Issue
steps, and this would have been
deflationary.
is
this
All
The First Boston
out fully
spelled
in the lead article in the Board's
Should the
"Bulletin."
current
Corp.
arranges
$360,000,000 bond sale. Banks
take $60,000,000 in Notes.
market get the idea that
the young lady of Constitution
Avenue has been seduced back
ated financing
ing
money
an
program,
money
easy
Details of
be
may
ket is closed.
quo,
Under
be
will
the
be
truce
impossible.;
the U. S. will
unable to build up
tary
power
in
Korea,
its mili¬
whereas
will be able freely to
build up across
the Yaiu River.
the U. S. would
not contemplate a full-scale ac¬
tion without cooperation from
Furthermore,
allies,
which
is
unlikely under any
estimated
moves
on
succeeds,
most
is credited
200,000-kw units, for
bined
capacity
AEC
has
kw—the
the
He
huge
regarded
circum¬
power
of
Federal
why
It
interested
it
Reserve
give its
boosted
that
stability,
it
in
is
the
prevention of both inflation and
deflation,
that
the
a
the~electrie
.
_
utility
„
industry."
Whea
J
.,
.
Business
Man's
diffu¬
atomic
new
Portsmouth, Ohio,
arranged the sale of $360,000,-
000
of
3%%
first
mortgage
and
1,
in install-
collateral trust bonds, due Jan.
1982,
be
to
delivered
NrS°!!"
m+6?lUn^ Jt?' 1'
?vedsale
the
was
companies,
and
made to 29 insurance
savings
two
banks.
mann
—
Austria
Credit
Anstalt.
funds Vienna, Austria—cloth.
pension
seven
Commentary to the Johnstone
Report-Dr. George Zimmer-Leh-
The
six
largest participants in the loan
are:
Metropolitan Life Insurance
Co., $125,000,000; New York Life
Co., $42,000,000; EquitaSociety of the
Insurance
We have
ready for distribution
our
ble Life Assurance
States,
$42,000,000;
The
SUPPLEMENTARY
ANALYSIS
OF
RIVERSIDE CEMENT
COMPANY
Class B
(Common) Stock
We
growth
believe
this
issue
will
be- of
FOREIGN SECURITIES
interest to those
Firm
t
ings compared with about a 10 times
»\
seeking capital gains.
The stock sells at about 4 times
earn¬
«
Trading Markets
earnings
ratio
for
this
industry
in
general.
I
by about $2 bil¬
explains
in
has
contract
into by
require¬
Mutual
I
dignified and restrained
reserves
1,800,000
sion plant near
(This column is intended to re- United
could be¬
labor
Board has spoken out to
bank
for
single
single customer in the history of
by 15 pri¬
companies to
fleet the "behind the scene" inter- Northwestern Mutual Life Insurpretation from the nation s Capital
fl,on ... An_
,,
.
and may or may not coincide with ance Co., $20,000,000, the
the "Chronicle's" own views.)
Life Insurance Co., of New York,
powerful
yvith having remark¬
the
contracted
largest
com¬
a
2,200,000 kw.
for power ever entered
ments of the U. S. Atomic Energy
I
In its
of
wheels,"
FR Speaks Out
language,
Madison
capital
maximum
electric utility
supply
has
Qualified observers point out
this
The
is
the
issue of securities
Commission's
McArthur
and Van Fleet.
that
single
a
vate
resume
Generals
by
1956.
in
watt units and the Cheshire plant
five
Ohio Valley, formed
that the U. S. will
the kind of an all-out war pro¬
posed
operation—includdirect placement
and
year
completion
part of
and
commenced
requirements of $440,000,000—all
undertaken by private capital—
of the Ohio Valley Electric Corp.
the status
but will pitch in and fight
merely
largest
the
the
No Ail-Out War
not
$420,000,000 negoti-
(Ind.)
was
in ln
operation, the two power
the history of the business—were stations are expected to provideannounced today (July 30). This AEC
a
total
of
15,000,000,000
amount is the major portion of kilowatthours
annually,
of
surprised some
Friday afternoon after the mar¬
they
a
Valley's
generating
last
for.
Co.
station will have six 200,000^kilo-
"just about every¬
leader in the United States.
lion.
to
head of the
Teamsters union, to
Beck,
the labor of
was
to
Valley Electric
Ohio
of
December
ple worried in this town. They
think that Beck means to control
version
tribute
a
stances.
greatly expand the scope of his
union, has got very many peo¬
was good and
withdrew his amendment. This
something which is "never
and
Treasury
in credit had it not taken these
self-proclaimed ambition
David
Ohio
the
would
drastic contraction
the
of
have forced
as
able ability and energy.
amend¬
needs
Edison
Madison,
at
scheduled
seasonal needs of business,
UN
the
ments, everybody
supposed
busi¬
Senator Wil¬
Knowland,
Acting
Majority Leader, asked everyf»ody to please be nice and not
toad it
whole
ness.
of
plus the seasonal
economy,
the Reds
\
it will make new
foreign aid appropriations avail¬
able for fiscal 1955, but it wants
The
also
admissions
the
a
results of the
Probably
provided.
couple of days before
a
-should
that
was
take
to
wants
also
It
Committee, and in the House a
-closed
rule
preventing
addi¬
tional tax relief
Security
and the Mutual
Toledo
Cheshire, (Ohio)
in
the
Act
Cooperation
Economic
fresh look
Congressional observers were
complex
the
junk
the
plants,
won't last much longer, Mr. Squeegee—
They're on the last hand now!"
"The meeting
the commies,
Actually,
The
Construction
reports that if a truce, once es¬
tablished in Korea, is broken by
"new
a
foreign aid.
Act.
Movie Tax Repealer Surprises
jnovie
Co.,
West Penn Power Co.
will do so,
deal" on
provide
and
Edisora
and
President does not
if the
Pennsylvania
Potomac
tric
There have been a number of
do this, the Congress
Co.,
The
two steam-electric
ify the program. The Congres¬
sional
action
guarantees
that
even
Co.,
Mlill
afresh and mod¬
entire problem
1950,
•
President
However, the
do this.
Power
iiaiti
into
year."
Literally Congress did seem to
of
lican votes.
for contracts entered
aid.
into for military
isaid. One group of White House
advisers would like to
crats
basic foreign aid law.
Payments can be made for two
Meanwhile Mr. McCarthy and
♦mnt
the
under
made
be
can
existing
other.
or
fiscal
contract authoriza¬
voted that after this
&
Co., Southern Indiana Gas & Elec¬
did to the for¬
authorization bill Con¬
On the
gress
a
assignment abroad to study
•^something
Ohio
*
Power
next year.
program
trip to
after
oblivion,
interval,
decent
an
iiiiiis®
completely
fresh approach
toward the entire foreign aid
supporter of Gov. Steven¬
liureaucratic
Indiana
a
during the last campaign,
would as part of the arrange¬
Cincinnati
Power
Dayton
"**' j
quent actual appropriation, was
to assure itself that it can take
son
The
Electric
Co., The
and
Light
Co.,
Michigan Electric Co.,
Kentucky Utilities Co., Louisville
Gas and Electric Co., Monongahela
Power Co., Ohio Edison Co., The
m*
gii
Deal"
the
of
Agency,
said to have been an
Co.,
Ohio
Southern
eign aid authorization, however,
as distinguished from the subse¬
official
Appalachian Elec¬
are:
Power
Gas & Electric Co., Columbus and
publicly
as
Assures "New
Intelligence
was
tric
appropriations.
targets,
Central
companies
opposing the President, foreign
aid would scarcely get a dime of
McCarthy's im¬
an
important
Mr.
of
«l»olicy-making
«3pen
themselves
record
What Congress
One
parents of some of them. The 15
with Con¬
If Congress voted on the
foreign aid appropriation by a
secret ballot, so that individual
members were not required to
mittee.
mediate
m
is also
gress.
in key positions in the
Eisenhower Administration. The
•communist-fighting job in the
-Senate would be turned over to
the Jenner subcommittee of the
.Senate
Judiciary
Committee,
the "internal security" subcom¬
of
tric
for its own sake
lar
balance
plied
on.
so
$20,000,000,
of
the
up
capital requirements, will be sup¬
by the 15 sponsoring elec¬
utility
companies
orv
the
automobile
the
or
makes
Ohio Valley's estimated maximum
which is extremely unpopu¬
one
ployed
who
farmers
capital
Equity
which
without rousing
cut
can
This item incidentally,
tapering
•off on his exposure of commies,
alleged
commies, or commie
sympathizers, especially those
McCarthy would begin
who
clear-cut vested in¬
group.
Hence
item which Con¬
no
Co., Pitts¬
burgh.
domestic
gress
the
tional Bank and Trust
the one
is
it
Senator Joe
deal
this
velops
terest
workers, and
equally violent opponents.
Under
it is noted that this is one
of expenditure which de¬
item
Bank; Irving Trust
Co., and manufacturers Trust Co.,
all of New York, and Mellon Na¬
cut foreign
sition of Congress to
aid,
Hanover
The
with the dispo¬
In connection
or
•divided
-410)000,000 are: The First National
Bank of the City of New York;
Interpret Foreign Aid Votes
WASHINGTON, D. C.—Inad¬
PARL MARKS & CO- INC.
i
Send for
I
Report C-20
Foreign Securities Specialists
I
i
50 Broad Street... New York 4, N. Y.
%
Tel: HAnover 2*0050
i
Teletype NY 1-971
LEANER & CO.
10 Post Office
Square, Boston, Mass.
Tele. HUbbard 2-1990
Tel. BS 69
of
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