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UNIVERSITY OF MICHIGAN jun 15 1953 PUBLIC UTILITY ISSUE MSMSJ UMMIUMnm k- 1 >:■•■• Re?. U. S Volume 177 Number 5228 New York Pat. Office Cents Price 40 7, N. Y., Thursday, June 11,1953 Copy a EDITORIAL Atomic Power and the Progress and Prospects We See It As the part of Washington commenta¬ tors to determine and to explain the current sta¬ tus of what is labeled "the Eisenhower program," are the center of attention almost everywhere. The Washington scene is hardly unprecedented, but it certainly is giving rise to a medley of con¬ flicting and confusing diagnoses. On more than j Efforts Of Elechic Power on daily newspaper an reader with the the More By WALKER L. CISLER* Retiring President, Edison Electric Institute President, The Detroit Edison Company President, Atlantic City Electric Company Chairman, Edison Electric Institute Power Retiring Edison Electric Institute President reports developments of past year in electric power industry. an adequate power supply ahead, despite rapidly increasing demands, and holds electric industry's progress has become synonymous with national prog¬ ress. Calls for a sound water resources development policy, and pleads for fair competition from government proprietary business. Concludes "by our example today of better performance under free enterprise there will be assurance of a free society tomorrow." account which would leave impression that those who "Picketing" Comments After praising work of Atomic Energy Commission, Mr. Cisler points out we are reaching point where atomic fuels for electric power may be possible on commercial basis, and competitive industry should play part in bring¬ Says it is responsi¬ bility of electric industries to determine how atomic fuels ing its vast capabilities into being. may fit into generation of electric power, and reviews technical, engineering, economic and financial problems involved in this development. Gives data on energy much In Much greater responsibilities. more would for the on few matters PICTURES depth that I feel The questions are within time group Commission should we send to Continued we page ISSUE—Candid war¬ the who atomic control of the military authori¬ In the intervening years the Com¬ discharged its responsi¬ bilities wisely and well. It recognized the fact that in¬ evitably atomic energy must be an important factor in has Continued 32 by Mr. England before the Twenty-First Annual Con¬ vention of the Edison Electric Institute, Atlantic City, N. J., June 1, 1953. THIS under and ♦Address IN that came ties. We on without that fervently believed energy development should continue under rigid secrecy have them? and the mission sometimes asked why do whom and November, both Walker Cisler conventions time. Commission came into being 1946, and on Jan. 1, 1947 assumed a complex organization hastily built up as a wartime activity and devoted almost entirely to mili¬ tary nfatters.! And there were many in of worthy of attention. are a The Why Do We Have Conventions? 37 page greater a short ical, more businesslike, and more imaginative private power. Our companies have never been finan¬ B. L. England cially stronger, service-wise more capable and earnings-wise more at¬ tractive than they are today. I want to touch upon a another Continued with opment to its present position in so understanding because of these op¬ posing forces. We know that the an¬ swer to "cheap government power" is cheaper, more 'reliable, less polit¬ cripple or wholly destroy the President's plans are rapidly gaining in strength and are likely in the end to leave the White House impotent and embarrassed; on the same day in another part of the same edition of the same newspaper, he has discovered "stories" or analyses by equally well known correspon¬ dents saying that all this that is apparently threatening the President's program is no more, or certainly little more, that sound and fury one reason or future of atomic fuels for the genera¬ use first to rec¬ ognize the part which the Atomic Energy Commission, and particularly its present Chairman, Mr. Gordon Dean, have had in bringing this new devel¬ dustry has been undermined by the growth of socialistic policies and the 20 years of attacks by proponents of government power. But I, for one, believe we grew strong, we recog¬ nized our weaknesses and are facing industry, finance, governmental and labor circles. The symposium, the "Chronicle" believes, should be extremely helpful in clarifying thinking on one of the most important public issues of the day. discussing the tion of electric power, it is most appropriate has been said about the way our in¬ in of atomic fuels. resources Today the electric industry in the United States has great opportunities and along with these opportunities Starting on page 3 of this issue we present some expressions of opinion received in connection with the "Chronicle's" symposium on the question of whether the Taft-Hartley Act should be amended with respect to picketing. As was true of commen¬ taries previously published, those appearing in to¬ day's issue represent views of individuals prominent « Survey Committee on Forecasts occasion of late the citizen has found in his one Electric Industry By BAYARD L. ENGLAND* on page 30 address ♦An by Mr. Cisler before the Twenty-First Annual Con¬ the Edison Electric Institute, Atlantic City, N. J., vention of June 1953. 4, shots taken at the 29th Annual Field Day of the Bond Club of New York on June 5 at the Sleepy Hollow Country Club, Westchester, N. Y., appear on pages 25, 26, 27 and 28. State and in WESTERN U. S. Government, State and Municipal Securities telephone: Municipal OIL & MINING Pacific Coast & Bonds Hawaiian Securities HAnover 2-3700 Direct Private Wires Chemical BANK & TRUST COMPANY Bond Department 14 Wall THE NATIONAL CITY BANK Street, New York, N. Y. Members of Exchanges ESTABLISHED Ur nCW lUnn - Salt Lake City San Francisco • Los Angeles Boston • • Chicago Bond Honolulu of Canada, Ltd. T. L. WATSON & CO. established To 1832 Members New York Stock Exchange American Stock Circular on Exchange Request Active Banks and Brokers Denver ^ Los Angeles Spokane J Orders CHASE BANK NATIONAL OP THE CITY OF NEW YORK Cities Executed On CANADIAN BONDS & STOCKS SECURITIES Commission THE Maintained Markets Dealers, CANADIAN Commodity Exchange, Inc. t Dept. Teletype: NY 1-708 YORK CITY and 10 other Western Net Ford Motor Company 1915 50 BROADWAY • NEW f- V J. A. HOGLE a CO. s Members of All Principal Exchanges AC MCU/ VADIf Principal Commodity and Security ; Co. Dean Witter Public Service Co. of New Hampshire COMMON All Analysis upon request Canadian Exchanges at Regular Rates Over-tke-Counter Trading Dept. DEPARTMENT CANADIAN H. G. BRUNS DIRECT Hardy & Co. Members New Members York Stock Exchange American 30 Broad St. Tel. DIgby 4-7800 Stock Exchange New York 4 Tele. NY 1-733 WIRES TO MONTREAL AND TORONTO Goodbody 50 Broadway, New York 4, N. Y. r Telephone WHitehali 4-6500 Teletype NY 1-1843 Bridgeport Perth Amboy ^ & Co. ESTABLISHED 1891 MEMBERS NEW YORK STOCK EXCHANGE 115 BROADWAY NEW YORK 1 Dominion Securities grporaxkm 40 Exchange Place, NORTH LA SALLE ST. CHICAGO Teletype NY 1-702-3 New York b, N. Y« WHitehali 4-8161 ira haupt&co. Members New York Stock Exchange mnd other Principal Exchanges 111 Broadway, WOrth 4-6000 Boston N. y. 6 Teletype NY 1-2706 Telephonei Enterprise 1810 y r r •: ■, t ■* < 11A u-JJ-iO.V' 2 m (2510) ci*v" The Commercial and Financial Ci ' . !:'• • ' ' ' ' ' ' i/%le :* * ' , ?*;n; ' *M ' ' Thursday, June 11, 1953 '■». * •••'-. ' ' _________ wt The POSITION and Security I Like Best IN TRADE Phillips Petroleum* 3.70/83 Southern Natural Gas* 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 participate and give their reasons for favoring particular security. a Week's Participants and Their Wheeling Steel Corporation—Leon Levy, (The articles contained in this forum 41/2/T3 they are Air Products to be regarded, as an intended not are be, to Partner, Oppenheimer & Co., New York City. (Page 2) nor offer to sell the securities discussed.) Albemarle Colorado Interstate Gas Iowa Southern Utilities Partner, Oppenheimer & Co., N. Y. Members New York Stock Exchange Associate Members American S. E. Manufacturing Stock — Berkeley Richmond, Va. Morris Plan, Pfd. Southern Union Gas request on sells at ratio and its Associate American Exchange 120 Broadway, New York 5 BArclay 7-5660 value than other any leading steel At company. 37 it yields Teletype NY 1-583 Rights & Scrip This Leon during the 1930s. so high profit margins products, imprbvement since the ffiPONNELL&ro. Members New 120 Exchange Stock gins Exchange Stock York American of increased Before World industry BROADWAY, NEW YORK 5 Tel. REctor 2-7815 War little were the war the is a efficiency. profit mar¬ than better the contrast, In three past Wheeling Steel down II average. during looking are for: A Preferred years able to bring was Alabama-Tennessee Natural Gas Co. Commonwealth Natural hard believe Dan River Mills Moore Handley Hardware Co. Scott, Horner & Mason, Inc. Lynchburg, Va. Tele. LY 62 LD 33 Pocono Hotels Units Cambridge Bldg. 3s 1953 Leeds & Lippincott Units Dredging Common Bush Terminal Bldg. Common Transportation Samuel K. Phillips & Co. Stock Exchange Pennsylvania Bldg., Philadelphia Teletype N. Y. Phone PH 375 COrtlandt 7-6814 $ 1 8 2 contributes to stability.. Its sales less cyclical than those of basic steel products. In fact, dur¬ are ing the gether depression, earnings to¬ depreciation always with exceeded the expenses; experienced cash loss. however, profits year, held company were back a share, has other tractions, looking at¬ because government 1856 Members Stock New Exchange Stock Cotton York Commodity Chicago New Orleans And Exchange Exchange Exchange, Board N. Y. Cotton of Cotton other t Inc. Trade Exchange Exchanges Exchange Bldg. NEW YORK 4, N. Y. CHICAGO DETROIT Common bemarle Co. 6% company until and Old Common V Gehsten & Frenkel Members 150 N. Y. Security Dealers Ass'n Broadway New York T Tel. DIgby 9-1550 ' Tel. NY 1-1932 rec- organized in was recently earnings cyclical and comparable in and downs with other paper such you Missouri Pacific of companies. B u t LAMB0RN & CO., Inc. 99 WALL STREET* NEW YORK 5, N. Y. highly cyclical periods in the industry are not likely to paper Berkeley Al¬ Paper William* be Manufacturing preferred at current mar¬ There have been repeated. new many ered in recent been such per uses there has amazing increase in an capita use SUGAR years, of fallowed board so of paper discov¬ paper and such by a Raw — Refined — Liquid paper huge tion prohibited Wheeling Steel from supplying its own Fabricat¬ ing Division with full $125 million PITTSBURGH GENEVA. SWITZERLAND within all and trees in are steel the become 15-20 been Should the its plants, South where merchantable in Some timber lands years. have of reach easy cut three over new times. method for mak¬ ing chemical pulp that cuts wood ize, up to 50% would reserves be material¬ automati¬ //Industrial D. the Bulletin" of Exports—Imports—Futures DIgby 4-2727 \' / , re¬ improvement "Continuing research has and will contribute sub¬ stantially to its future growth. Despite the advent of plastics and other material, "the pulp and industry ranks sixth in new value of goods produced, with an annual output worth $6 billion. printed kraft, wrapping, con¬ verting and specialty kraft papers. (2) Hollywood, manufacturing ab¬ Annual sorbent much paper, plain U. S. consumption of paperboard is now and paper about 31 million tons, 14 times as in 1900. Some experts as believe that it may reach 42 mil¬ lion tons by 1960. While sales blotting. (3) River¬ side, manufacturing asphalt, lam¬ almost entirely out of retained inated, waxed, saturated and other of some paper products are closely earnings and depreciation. Senior water-proofed kraft papers. This related to population growth and capitalization increased by only mill houses the company's multi- business conditions, new develop¬ $22 million. Consequently, divi¬ wall sack operation. (4) Halifax, ments from research promise a dends of necessity, have been kept manufacturing kraft, sulphate steady increase in the per-capita low. They have averaged little pulp and kraft wrapping, con¬ consumption of many others. over one-fourth of earnings for verting and "Packaging now accounts for specialty papers. the past three necessity for a years. But the conservative divi¬ All four plants are dend policy will no longer exist by the end of the year. fore, Wheeling's finances are unusu¬ ally strong — working capital was or $76 and million on Dec. 31 last and current assets were almost five times current liabilities. Further¬ more, cash the outlook is for a large inflow next year due to de¬ preciation and accelerated amorti¬ strategically located with regard to raw mate¬ rial and to markets, and, there¬ subject to economic con¬ Independent of either rails are trol. trucks the company uses delivery to customers made within $6,300,000 a few hours. modernizing both can be Recent and ex¬ pansion program is virtually, com¬ pleted. • ' -.... v- New paper mill '' - about "t ■ ■ i 45% of the paper used, with printing papers including newsprint, tak¬ ing some 30%." In 1949 chose to the cut paper prices industry rather than production when demand leveled off but strated that that experience Prospectus on request' cutting does not immediately stimulate demand leads rather to the . Continued Gordon Graves & Co. 30 Broad Street, New York 4 Telephone " expecta- page 14 NY 1-809 410 Pan American Bank Bldg. Miami 32, Florida N. Q. B. OVER-THE-COUNTER ' INDUSTRIAL STOCK INDEX 14-Year Performance of 35 Industrial Stocks FOLDER ON REQUEST i National Quotation Bureau1 Incorporated 46 Front Street on Teletype WHitehall 3-2840 demon¬ price J. building at Hal- and paperboard but , Bought—Sold—Quoted ishing, Plants are (1) Brown's Island, manufacturing natural, colored cover Company Common Stock kept the pulp and paper industry flour¬ paper and Oil Little, Inc., May, 1953, carries following timely comment: cally doubled. and enameled Commonwealth Arthur and regulations regarding steel alloca¬ is scheduled for virtual completion in 1953. It was paid for H. Hentz & Co. American Foote Mineral large outlook outstanding an manufacturing and The buy and new Power Shovel / ups stop may The were and consumption program York has The per offices ex¬ of the War. Unlike list of end products. Its manu¬ expansion of productive capacity, major steel companies which facturing break-even point is long-term market growth is well have greatly expanded ingot ca¬ around a low 60% of capacity. assured and it is not at all likely that the industry will cut selling pacity, Wheeling Steel concen¬ Timber reserves, vital to a trated on improving its raw ma¬ prices * to accelerate growth of paper company are adequate to terial supplies, reducing costs and meet all consumption but rather fall back present or foreseeable on less than capacity production; replacing old, inefficient opera¬ future needs. ^The proficiency of tions with relatively low cost its tree farming policies are such nor is it likely to be an industry left "holding the bag when defense modern ones. that the company is guaranteed a spending is cutback. It is now a Principal customers* are 'the sustained, if not perpetual, supply favored industry. In 1915 per cap¬ automobile, building and contain¬ of raw material. It does not meas¬ ita consumption of paper was 100 er industries. The company also ure .its reserves by comparing lbs. In 1952 it was 390 pounds. It is distributes a large part of its them in size with the size qf estimated that by 1955 we may be finished products through jobbers. states, as some giant companies using 33,000,000 tons of paper in The Fabrication Division, as well do, but Albemarle's are large, the United States. as making for are economically located high profit margins, they The New classic a Executive Chief 1887 is branch our Pfd. ample Whose current Asset value to Marion come bemarle share: wires This quirements. Established Direct since the end never 2039 Phila.-Balt. Birmingham, Ala* Mobile, Ala. save only National company. It is fully integrated growth in fundamental demand improvement was from forest to finished product that, while some temporary level¬ brought about by plant and equip¬ and supplies source material to ing off may be expected in the ment expenditures of $125 million customers manufacturing a long near term because of recent major Steel. Last Members President Gottwald is ord. amount of $45 per NY 1-1557 New Orleans, La. - Albe¬ flight management. is largely due to his inspiration and initiative. He is a leader and co-worker, and, in good labor relations, Al¬ to St., New York 4, N. Y. said that three the company share, Exchange Exchange most Gas Co. 3-6's 25 Broad greatest of these was men. marle has top Stockholder. earning Stock major company Trading Markets Phila. once man things entered into the success or failure of an undertaking—men, methods and money and the to to net before taxes than any American very a Paying per York company. A wise larger percentage of sales ket priqe of $85 per share. other Albemarle is. not al marginal a indus¬ New Members American Stock HAnover 2-0700 making value the semi-finished reflection you and tion of steel output manufactured into the Members of management that has through. He has traveled the road all the way from laborer $6 Levy in part due to the large por¬ are Since 1917 in fastest and of one $643: are the Fourdrinier, book is not was most mod¬ security of a deep rooted aristocrat, in a growing industry: With par value of $100 and the widest in the industry. While widest try, WILLIAMS Paper Manufacturing Company 5% Preferred Senior profit among earnings to Albemarle If efficient, margins would Beloit ern and new a high quality shareholders more in line with sheet of paper at a low unit cost. The start up of this machine in policies followed by other steel companies. The stock is listed on January, 1953, about doubled the the New York Stock Exchange. paper making capacity of the en¬ The today whose This of Richmond, Va. relatively low cost operation Specialists in share. a ifax houses tire less Wheeling an $4 Bought—Sold—Quoted Steiner, Rouse & Co the would appear justi¬ BERKELEY well known is that to facts is will amount to year share. Therefore per a generally are rate 8%. generous What Member $8 bring distribution followers. 1920 Stock price-earnings larger discount from a book stock common appreciated by steel stock Corporation Established Steel lower a These New York Hanseatic charges next over fied in raising the annual dividend Wheeling Puget Sound Power & Light *Prospectus Steel 6% Pfd. Williams, (Page 2) already granted indicate that depreciation management Wheeling Metal & Thermit Michigan Gas & Electric Certificates zation. LEON LEVY Louisiana Securities Paper Co. Brown-Allen Chemicals Copeland Refrigeration Alabama & Selections NewYork4,N.Y. Number 5228... The Commercial and Financial Chronicle Volume 177 (2511) 3 What Do You Think? INDEX More Picketing on LlCHTOSTEin B. S. Articles and Nevjs Page AND COMPANY Restrictive Credit Policy and the Banking Outlook • Additional opinions, given symposium on On : , not the Taft-Hartley Act should be amended to curb picketing. question of whether the„ cover "Chronicle" > "Chronicle" with connection in of page 21, under the caption, "What Do \ You Think?" attention was called of or is, that the May —A. Wilfred Diversion of Stock ' truth" does not win every Just battle in the competition of ideas/' who as also picket property rights and civil liber-, ties and thus should be curbed, just (2) those who, holding the poxt and opposite view, argue that pic\ keting is an essential compo-. nent of the strike weapon to ]" secure human rights. To help clarify thinking on the subject, the Editor of the "Chronicle" invited brief comments on the question. Some of the cornmunications that have ceived been in given were re- the so ■i we able to accommodate in are today's issue the following addi¬ tional be opinion. of expressions Others will given in subse¬ quent issues. S. U. Committee Labor and Public Welfare Senate Few would v out, long run the competition.-in views presented , by the pickets,/; management and public opinion generally will serve to bring about 'a better'solution than if picketing were completely prohibited.;. ' • to Congress To the • ■+>-' me I vio- desus- boil t, pec STREET, NEW YORK 13 Haile Mines 14 a n Articles its; to —Walker Incorporated Taca Corporation 23 .. _ on Utility Industry / Electric Industry Cinerama Inc. ~ Cisler L. Cover ... 7 / Coal Incorporated _* 61 12 ._ BO Main Source of Energy for Electric Power as Expansion—C. N. I J.F. Reilly&Co. 9 Vfrants to Know Chandler —Marvin Phillips^ ' > Broadway, New York 6 9-5133 14 at Utility Regulation—Eugene S. A New Look > •. . Cover Generating Interest in Utilities—Ira U. Cobleigh d < <$> i ________ What the Security Analyst • • Profits—J. R. Hartman Building Up Utilities is to continue to be re- picket L v. 20 ._ ~ rela- o Lear Business Under Our Competitive •—-Bayard L. England of labor Getchell Mines 18 System'—Hon. Sinclair Weeks_-^./ - • system 17 ... Lending and Municipal Bonds Progress and Prospects of Electric Power- : Teletype NY 1-3370 Direct Wires Loughlin. 15 Philadelphia Los Angeles * Walter Sammis, President, Harold Quinton, Vice-President, 22 Electric Institute of Edison Electric Industry Should Take Lead in Improving Public Relations—Charles im- Oakes E. 35 • not necessary of (More letters in "Chronicle"" More on Picketing Walter P. Reuther to use these sanc- .tioHS- most of t;e time, but the riffkt to use them is essential to the existence of collective: bar- gaining. Absent the union's abil&Y to picket and strike,, and on the When does a reguia- no reai bargaining, because barpicketing overstep the gaining impiies power by each of become an improper the parties to withhold assent if infringement of a right of free the offered terms are not satis- Sympcjsium whether: Taft-Hartley Act should be amended . Delhi Oil wi$f respect Getchell Mine, Inc. Policy of Federal Reserve 19 1: • Cinerama, Inc. 3 Morris A. Schapiro Praises Flexible .. ». / on picketing) to regulation. ' • ' »«> • Hycon Mfg. Regular Features Kerr-McGee Cover (Editorial) As We See It Deb. 4 U. S. 56 Business Man's Bookshelf 1968 Airlines, Inc. * Securities Canadian Vz 38 and Insurance Stocks Bank of bounds and speech? Of simple test there is no yardstick by which an answer to this course or find can difficult believe, however, that if picketing is kept peaceful and orderly, it is a legitimate means by which individuals may exercise their right of free speech. Frequently it is virtually the only means available to a group of persons by which they can WALL Telephone: WHitehall 4-6551 1953 Second-Half of ____ Atomic Power and the the other side of the table absent proper type the employer's ability to say "no" and degree of L0 anion demands, there could be tions . 09 11 Bodfish —Morton / D.J& by some other t i down to ques- we dogs touch! Reeves Soundcraft query equivalent to asking whether collective bargaining is to be kept or supplanted ' T on of bate tion will Obsolete Securities Dept. 10 ._ ________ Newspapers^—Roger W. Babsori_—______ . is chief issues • - __ Dubious in Now—A Fair Break for whether the right to picket is to be sustained violence, The Smith Voss C. Outlook of Industrial Organizations, Washington 6, obligation collective barprevent gaining,. It is such Alexander and cats on else e an H. nobody - nce,«and .p lement a certainly goyr%Strike, are inernmuent -h aBT^&gral parts of 1 * * ~ WALTER P. REUTHER President, / ^ r pletely spected. unco n trolled, The rights to can develop strike, and to mass that quote 9 Purchases to Stock Exchange Block Gold—Philip Cortney,-; Urban Mortgage com into CAN "'/ •• picketing picketing, Mass degree. some f .6 - _. Interesting Tax Rulings—Victor R. Wolder__ also do I believe that in/; so the deny, I- believe; that whether freeboth the right dom of speech and the duty to regulate ______: —W. W. Townsend has government to —Walter Business sumption that most of the time, the long run, "truth" will win Senator from New Jersey Chairman, ' We in • HON. H. ALEXANDER SMITH ____ Building Trends and the Building Materials Industry • general philosophy anid system of free speech on the as- V' our "Chronicle" of May 28, on page 3; others in the June 4 issue starting on the cover page, and, The Price of But just as"we sup-. ■" causes. CAN 5 .: ^Considered—Harold J. King.. lines will sometimes be respected in unworthy or un¬ feel CAN v Generating Interest in Utilities—Ira U. Cobleigh— subject of thought on the (1) those that it infringes op, Coronation the -.- to two schools of picketing: of May. a-/— Roger F. Murray must and can afford to take in the protecting free speech. ; — Consequences 4 Outlook for Money Rates and Fixed Income Securities this may in fact occur, it is a risk we interest of Economic The though sometimes —Fred F. Florence : question. -1 make their views do !" known. picketing is kept orderly If the (perhaps limited to x numbers in a picket line) I believe that property rights and the right of a man to work can be be protected.. Of course it can be argued that since exercises opinion public violates . disabilities on picketing, -Picketing is then part and pareel of the unions strength m collective bargaining If concerted action is essential to fortify the workers strength in support of a, collective bargaining demand, Picketing to proclaim this fact in an effective way is equally essential* Now as to picketing and prop- lawyer, but I do not understand that any- picket lines, one has a "property right" not to matter how orderly, have truthful statements made crossing no the From Washington Ahead My answer to this HA 2-0270 specialized in — — —- 44 Observations—A. Wilfred May__ — _____ Report Our Reporter on PREFERRED STOCKS Salesman's The Market . . . 36 ____ 34 Corner.— 49 —.___ 8 and You—By Wallace Streete Security I Like Best The 22 ____ Railroad Securities The State of Trade and h0UR 45 _____ ——~52 Offerings——-----• : 2 :____ _____— Industry. 5 _ By the author of the HOW TO I 56 Washington and You__ best-selling MAKE A KILLING IN Members New York Stock . Exchange - ;1 Drapers' Gardens, London, land, c/o Edwards & Smith. Twice Weekly COMMERCIAL and The I CHRONICLE FINANCIAL DANA ary COMPANY, Publishers BROAD Boston • Manchester, N. H; Private Wire • to •- Nashville • Glens Falls • Schenectady • Worcester CALIFORNIA 2-9570 HERBERT D. SEIBERT, Editor & Publisher j Subscriptions Possessions, matter office Febru¬ at New I WALL 111. 135 South La Salle United States, U. S. Territories and Members of Union, $48.00 per year; In bf Canada, $51.00 per 'year. I STREET 1 v , St., (Telephone STate 2-0613); prophetic profile of profit-laden stocks covers | issues, rails, electric utilities, chemicals, atomic I Other Publications securities, etc.—by name. It gives advice on buying and selling, explains the uT'"s needful for cess—Timing, Tenacity. 10 and Quotation $33.00 per year. ' rate of — the fluctuations exchange, remittances I list of ■ common By IRA U. COBLEIGH "sawy" that spells prof- ■ it! Get your copy NOW] _ Just clip $2 to this ad ■ mail to _ Monthly, (Foreign postage extra.) Note—On/ account of the Record a stocks, and 20 speculative ■ hopefuls for 1953. Here's and Bank I Technique, PLUS "forever" sue- _ ■ I Thursday (general news and ad¬ issue) and every Monday (com¬ plete statistical issue—* market quotation record?, corporation news, bank clearings, state and city news, etc.). Every Offices: in 9 This 3 Other Countries, $55.00 per year. vertising 3, pest Fan-American Dominion- Chicago the Subscription Rates to 9576 Thursday, June 11, 1953 '^Other at Place, New York 7, N. Y. REctor TELETYPE N. Y. 1-5 CROWELL, WEEDON & CO. LOS ANGELES, Chicago • second-class as 1942, York, N. Y„ under the Act of March 8,1879. ST., NEW YORK 4, N. Y. TELEPHONE HAnover 2-4300 25, AND IT. bank Company Reentered IN C., Eng¬ Copyright 1953 by William B. Dana I B. E. STREET KEEP WILLIAM DANA SEIBERT, President 25 WALL Column not available this week. Reg. U. S. Patent Office Spencer Trask & Co. . __________ Public Utility Securities Securities 5 55 —____ Governments^—___ Security Prospective ______ — —— Our Reporter's 25 Park Albany Exchange PL, N. Y. 9 42 News About Banks and Bankers Mutual Funds WILLIAM * 40 47 Activity Teletype NY 1-1825 & NY 1-1826 Published ; - MACKIE, Inc. & of the News—Carlisle Bargeron.... 10 Indications of Current Business Continued on page 16 and For many years we have Singer, Bean 36 about him. As a union officer and rights property right to work. 8 Dealer-Broker Investment Recommendations Einzig—"France's Devaluation Dilemma" Securities Now in Registration such erty rights, I am not a great pressure in preventing peo- ple from picketing, factory. ; y Now, all of this may appear to be verY elementary but it is a P^je of wisdom that still needs to be learned in some quarters if one can iU(fge frorn the tendency toward imposition of increasing 54 Events in Investment Field Coming In for for¬ eign subscriptions and advertisements must be made in New YorX funds. David McKay Company, Dept. 5 225 Park Avenue, Inc. New York 17, N. Y. i 4 The Commercial and Financial Chronicle... (2512) expansion Restrictive Credit Policy And the Banking Outlook in country our securities. that will bring us higher standards of be living than believe in ation at have ever ex¬ we perienced. banker, in appraising prevailing situation, reason to believe good business condi¬ for at least six months, but warns current In "tight money" policy of Federal Reserve should be pursued a more cautious pace, since drastic changes have produced at Continue to for The psychological reaction. Calls attention to unevenness of our economic growth and advocates strengthening the banking structure through more equity capital and careful screening of credits. Adds business also should re-examine its international situ¬ The over-all in war Russian of war dominate to the and Korea, not lives of than our evi¬ little is the of dence likelihood ' of It is American our continue people upon which economy. There other values depend. all of our shocking reflection upon to be fearful of and to fear that a peace¬ a intelligence our peace, early ful solution of the world's prob¬ change of such lems would bring about such serimagnitude as Xous deflationary readjustments in any to justify our tour own domestic economy that believing ?it will create a serious period of there will be depression, and be harmful to the any appreci¬ well-being of our people. War, able relief •preparation for war, and safe¬ from the bur¬ guarding > against war, are de¬ den it imposes structive elements in our econ¬ upon us in omy, destroying the wealth and maintaining energy intended to be used for and F. Fred Florence preserv¬ ing the essen¬ the tial ments of President require¬ riod national our security. and Eisenhower has very appropriately stated that his fore¬ most responsibility to the Ameri¬ can people curity. While look their national se¬ might we confidently to some tremendous diminution outlays of tain strong and costly defense throughout the long years ahead to meet any seeds of tions ' have that even national emergency. distrust among been if sown peace which would entail of a na¬ so deeply is achieved, long period negotiation, it will still be rec¬ ognized that only in our inherent military and general economic strength and stability will we be assured of There is could of in the prosperity the come Peace greatest ever pe¬ known, greatest blessing that to America and all the people of the world. Only in periods of peacetime, when our people pursue their normal lives of war, can the maintaining the peace. nothing that the Amer¬ . . .. our efforts to safeguard the very lives of our people. While there are naturally inherent risks in expanding our economy and in the utilization of our nat¬ ural war *An the in resources economy, address Illinois maintaining a the risk therein is by Mr. Bankers' economy. is to be and loans. in crease banks soundness With the the total throughout loans the of in¬ great of United States, which is a natural result of the tremendous growth that has taken place, it is now more im¬ portant than ever before that bankers not be misled by the fine record of collections in the loan portfolios that they have been ac¬ of of the American cash its expenditures will income cash billions 10 are in of a painstakingly For on our a our quite country are orderly and cautious of time. Na¬ Government; therefore, the interests involved by more dollars. of business sounder basis than that of transition During boom periods the seeds always sown for the difficul¬ are ties of the succeeding eventual downturn, and it is during periods of downward fluctuating activity in monetary policies. It would be fine if in administering to the that credit and financial problems increase and multiply. If we take income tax and other payments patient you could bring about his Treasury in the Spring of complete recovery overnight, but year. But in the interven¬ too drastic remedial applications ing time the expenditure of such might cure the ailment, but leave these problems into consideration to in the full fiscal be year reduced that figure the heavy by the next a tremendous by our National Government, which will require borrowing that ' will take our gross national debt to the highest figure in history; certainly. can¬ not fail to have a stimulating im¬ pact upon' business during ;* that period. Even assuming a peace in Korea, expenditures of our Na¬ the patient in a state of shock. sum American Banking Is American banking has - able cause Sound for pride in its justifi¬ accom¬ time American full fiscal year at a rate business, and the approximately 5% of that requirements of our Government on American business, have been presently prevailing. largely financed by banks. Bank¬ We have a tremendously rich ing has gone through these pe¬ and resourceful nation, both in riods, and met the requirements material assets and in the inherent of the great expansion that has strength and innate wisdom of our taken place, to where the loans American people. It is the pri¬ of the chartered banks of our mary responsibility of all busi¬ country reached the unprecedent¬ the nessmen to During the 1947 occurs. the Col¬ lector of Internal Revenue and the Treasury Department the need for for bad year recognized establishing reserves in-banks, with a debts a within nesses impact when the downturn plishments. We have gone through current reduction in Federal In¬ period of national defense, come Tax. This was embodied in World War II, and then the post¬ the issuance of MImeo 6209 by the war period, followed by the Treasury Department, under Government will continue Korean War, during all of which which banks tional for discharge of our daily work, materially lessen their will we on to maintain their busi¬ sound basis to be able a weather serious ed total of approximately 000,000,000 at the end of last were create reserves on permitted to the of basis their past 20-year loss experience ratio, multiplied by present loans outstanding, with a current ceil¬ ing of three times At the end of 1951 of that amount only about 45% all had basis insured commercial banks established reserves on" the permitted. It understand $75,- why number of banks year. have not taken is difficult to such large country advantage of the in a this changes in our economy. ■ , people desire more than a those billions of dollars in a war just and honorable settlement of economy, as contrasted to an era our international problems with of peace. The expansion which its attendant peace to the world, we have experienced would ap¬ but in our ardent desire and pear relatively small compared prayer for peace we cannot afford with what could have been ac¬ relax Administration the liquidity periodic To have met the demands so ade¬ opportunity to establish reserves When quately has been a great achieve¬ in their loan account as operate our businesses upon provided truly great achievements and ment, but to have met these de¬ under the that sound basis we need not mands regulation aforesaid. expansion in this country take within the framework of Since the be alarmed about large losses that oc¬ the future. our place. ' banking system, and yet find curred in banks in this Those who have made the most country that in American banking there is With the great increase in pop¬ during the years 1930-33, on the careful, painstaking and intelli¬ still some reserve of ulation that hds taken place in lending basis of the formula now gent study of this country, its being this county, and the conserva¬ resources and potentialities, agree power available to the sound busi¬ used, covering a 20-year period, ness tive appraisals that it will con¬ enterprise of our nation is it will be seen that banks are be¬ that over the long pull in the an even greater achievement. With tinue in the generation ahead, ing faced with the situation generation ahead, there is every loans at we are assured of greater need unprecedented high lev¬ evidence of a degree of prosperity whereby their loan portfolios have for our productive capacity and els, and in spite of a firm mone¬ been expanded, while from this that has not heretofore been ex¬ tary policy by our Government ability. We have been negligent year on the applicable ceiling is perienced. The thing for us to in the development of authorities, there is still within great high¬ do is to being reduced. Sound banking keep our houses in order, private banking the ability to ways and construction of new policy and good business judg¬ maintaining the kind of policies adequately meet the legitimate ment would schools, hospitals, and other pub¬ dictate the use of this in the administration of our af¬ needs of American business. * lic and private works needed for reserve formula to the fairs that will highest ex¬ The safely insure our the experience in the postbetterment of our people tent permitted. The American business to where it can go into Korean period taught us that fun¬ which will create higher living Bankers Association is on record that great period with the strength damental consideration of standards. supply strongly in favor of a to achieve its fair share further in¬ of the and demand are still operating in crease in the amount of We should visualize the poten¬ reserves opportunities and development our markets, and that as long as tialities in the that can be accumulated in expenditure of fear ican to national our the best and ent their we funds for national defense or war, the lack of confidence among the more important nations of the world should cause us to main¬ The of be mankind. of usher without forward the of is benefit would half best the nerves, first the tional exceed comparable to the risk of the human In ernment's will ation, is for people, commended in its desire to main¬ fiscal year beginning July 1, cur¬ rent estimates are that the Gov¬ financial structure. own of times our well current our months. unfavorable an be appraisal of the tain the purchasing power of the prevailing situation there appears dollar, and the soundness of our customed to throughout this pe¬ to be logical reason to believe money. At this time our National riod of inflation and expansion in that good business conditions will Government is the really great which our country has been going continue for at least the next six borrower of money. The finances for an unprecedented long period there is logical tions will continue all of welfare Business Good At Least Six Months says will interest categories than President, Republic National Bank, Dallas, Texas Prominent Southern it we have ever enjoyed received past, and greater develop¬ by cautious and thoughtful busi¬ in science and all other nessmen whose primary consider¬ the ments By FRED F. FLORENCE* That would appear to wholesome, and I confidently Thursday, June 11, 1953 Florence before Convention, Louis, Mo., June 3, 1953. St. that lie ahead. the immediate war No does not threat hang of over our all-out order to maintain heads, a stronger banking structure for our country. Cer¬ and consumers will tainly the Government should rationally and allow normal have great concern about the Possibly one of the most sig¬ supply and demand forces to set strength of the banking structure, nificant subjects now before us the pattern of economic activity. and it should foster and encour¬ is the Monetary Policy currently Many businesses have encountered complished for the betterment age constructive and sound meas¬ being pursued by the Federal this fact in a period of rising de¬ ures that would of our people with those billions permit banks to Reserve System. It is commonly fense expenditures, full employ¬ of dollars directed into con¬ grow stronger. It should also be referred to as a "tight money, or ment, and record levels of income. the structive channels. pride of each bank, its direc¬ Certainly re¬ restrictive policy." It has proven Their experience has engendered tors and adjustments will take place and to be effective to officers, to have the a high degree, the attitude of caution in viewing maximum will have serious effect upon some amount of reserves set possibly more so in the reaction the outlook for the future. aside for possible bad debts that segments of our economy, but to same by the masses of our with peace the over-all welfare is permitted by Internal Revenue Reasons for Exercising Caution people than the Board of Gov¬ Department regulations. of the American people will be ernors One of the fundamental reasons anticipated. As an instru¬ Authority under Mimeo 6209 genuinely rewarded by a sound mentality against inflation I for the necessity to exercise cau¬ strongly approve of its applica¬ tion is the unevenness of our eco¬ was a constructive step in the tion, but I do suggest that the nomic growth. Not all industries right direction, but it should be policy be pursued at a somewhat nor geographical areas can be ex¬ promptly augmented to meet risks Drastic "Tight Money" Philosophy Needed ; businessmen act inherent in the cautious unprecedented pace. Following pected to share in the progress of "easy money" policy of pre¬ our country to the same degree, total of loans held by our banks. more the vious We are pleased Administrations for the past 20 years, the sudden drastic changes have produced a psy¬ Chairman of the Executive Committee Federal see that Reserve BOSTON CHICAGO Coojxmxtian Street, New York banks naturally varying ways. Board or an ket is maintained. 25 Broad in This will necessitate increase reserves double the to a formula to more than reserves national welfare in which our regarding our economic It is just sound busi¬ Government should have primary ness policy for us to take our concern. downward fluctuations in the bearings, and calculate the risks bond market appear abrupt, and on More Capital Funds Needed the course ahead. The at¬ raise some question as to whether In Banking mosphere of caution by bankers it should be construed as charac¬ Another important factor vital is dictated by sound judgment and teristic of an orderly market, even a desire to keep banking's credit to our banking structure is the under prevailing conditions. There house in order. necessity to increase capital funds has been1 Some indication' recently to keep pace with the great growth This is the time for bankers to of a slight softening of the Federal that has taken place in scrutinize loans, in-, all applications for Reserve policy in its application credit vestments, and resources. A bank's with very should (Xnwiuum SecitailtcA individual affected Therefore, it is the responsibility presently au¬ chological reaction that does not of the lending officer of a bank thorized. In the end it will re¬ dound to the to appraise benefit of our augur well for the over-all best carefully the environ¬ ment in which his bank is interest of our country. * operat¬ Government, and as a matter of ing. It should be clear to all of practical application, is not any The United States Government us, however, that this caution special favor to banking but is bond prices should not be pegged, should not be the basis for alarm wholly in the best interest of our but the to announce the election of Joseph w. Dixon as and are 4 PHILADELPHIA - to short-time U. orderly mar¬ Recent drastic S. fears well-being. great Government care and special consideration to the inher¬ Continued on-page 24 Volume 177 Number 5228 ... The Commercial and Financial Chronicle (2513) million 21 Steel The The Economic Production spendings in April and May. Boost Electric Output 01 the Coronation Carioadings Retail State of Trade Trade Commodity Price Index Food Auto and Consequences Industry Price set-hack a continued but which there has been long queuing-up at 10 shil¬ lings admission. And there is the boom to television set sales (like that from the American political qualitative, was Analyzing attendance statistics in detail, concludes ~ spending largely represents mere acceleration in lieu of sizable net gains for years as a whole.. Cites various temporary inflationary stimuli to the economy." t Notes importance nf TV, both as to set sales and interference K slight a be moderately to higher than the level : and close to the near-record peak attained in.reLabor management disputes slowed output in some cetn weeks. ~ - Steel : , ingot production last week averaged 99.6% of capacity and was substantially higher than a year-ago when work stoppages hampered output. Strikes in : suppliers' plants cut automobile production substantially the past week, but output is expected' to rebound sharply this week. LONDON, after-looks as at for Abbey conventions), on the instalment technique. Confirming the infla¬ tion to consumer spending is the concurrent fall in savings depos¬ with Coronation attendance. lines. sideshows the evinced by Americans. ^ ago year real, such _ of a unassurable, fillip to consumer spending; on eating, liquor, on traveling to and from London, and Mr. May at the Coronation in London notes greatest relative increase in tourism and industrial production last week suffered Economy supplied interest, both quantitative and Failures J V : Aggregate the if Production Business to The Coronation By A. WILFRED MAY Index tourists' of pounds 5 its. is fitting even more negative result, since Among its economic phases also "Chron¬ they indicate a smaller year-tois the push given to the building icle" of this week's "doings-ofyear increase than the number- trades' repair section. Although the-Queen" should confine itself of tourists. At 90 million pounds there is full employment in house to their rela¬ they will exceed 1952 by only building with 300,000 starts an¬ tively un- 12%, against 1950-51 -s increase of nually attained, the repair end glamorous fis- 47%. The disproportionately low has been depressed. Also there is cal a s p e c t s. receipts are largely due to, the the stimulus given to the textile ,f'(T h _i s, o f shorter period of time spent by trade, in the production of extra course, is not the visitors, as on the numerous Union Jacks. The official banners to imply that cruise liners standing by espe¬ alone consumed 8,000 yards of that this Eng. It — the report, to . : Cease fire in Korea will not herald a decline in the steel market, states "The Iron Age," national metalworking weekly, the current week. All signs point to a very high level of business 1 through the third quarter it adds, with perhaps a moderate de¬ cline (not.a recession) in the last three months of this year. Con¬ sumer demand is believed virile enough to support production of than more million 110 tons steel of in 1953. • The previous 105.2 million tons produced in 1951. high for the industry was , any negotiations by streamlined committees are reaching the serious bargaining point and may enter the home stretch next week, this trade weekly further states. The agreement will c o of the reasons steel will remain hard to year if there is even no strike Steel order books of producers are on major or with large carryovers second quarter orders. Some of them behind on important tonnage products. more are a Since are their still Mills • • order are not able to accept all orders that customers place—even for delivery three months hence, it continues. : want to Although major users are hopeful they will not have to rely expensive conversion steel after August, they are not con¬ vinced their hopes will be realized, this trade weekly notes. on The defense program not the strongest factor supporting is market, since greatest pressure is coming from manu¬ facturers who are finally free to produce and sell all the civilian the steel goods they can, declares "The Iron Age." • its market the supply-demand balance will not come to rest on 100% of capacity; it will dip below. But that will not happen until the conversion high cost producers have to give up charging premium prices; mills have trouble filling their order books, and new orders do not keep pace with production and cancellations, bloom it is Coronation any e British ship competition. sales, In "income the event, any the t h items, is surely in the black. t,. whatever the personal grouches of the few Bevanites, a Government have would even on the of basis construction with TV, a the situation — as boxing and baseits 11—through with The into got American the interference - attendance, by both do¬ citizens mestic For wooden and foreigners. cubic feet example, people remained in France their stands lumber, the annex at the Abbey, comfortable absorption of the pro¬ the decorations, furnishings, fab¬ ceedings over the TV set in the rics (50,000 yards of rayon), car¬ Festival its Britain of two years with its catering to the Roy¬ ago, alty. *; , 10,400 of public appraising the stimulus to pets, 120,000 cushions and electric dollar and other foreign — ex¬ lighting totaled 1,438,000 pounds, change earnings, your correspond¬ with another million pounds in ... — has fortunate been tq enlist the cooperation of tl)e British Travel and Holidays Association, a quasi-government the has which agency, data firm regarding actual number of past the visitors and companies, agents at home and abroad. Like Americans statistical The firmed by my Receipts, tion toric 000 seat including sales, .. radiant rode, day in her golden of revenue a vast part of the human to the task aggregated 513,- juster, kindlier pounds, leaving a net cost of place—but This cost figure and without more follow¬ that had hit Automotive production last week began to rise again, .v.. ing settlement the previous week of labor disputes Ford and Chrysler. much. con¬ show that ' A continued strike at Borg-Warner Corp.'s Muncie, Ind., plant, still hurting the output of Nash, Hudson, Studebaker, Willys and Kaiser, according to the agency. was and Chrysler operations, where suppliers' strikes bit deeply into production and cost losses of many thousands of cars and trucks," said "Ward's." "Higher production hopes rest mainly on Ford Corporate outlays for new plant and equipment this year may exceed the $27,000,000,000 which was forecast last April according by the United States Department of Commerce and the Securities and Exchange Commission. One official estimated such to a survey expenditures might reach $28,000,000,000. That would be 000,000 above the previous high set in 1952. The survey said plant and ; new records in the second equipment spending would attain On a seasonally 400,000,000 in the second quarter and $28,700,000,000 of $28,- in the subse¬ The yearly pace in the March quarter was countries. all val consumers, says on evi¬ steel products are anticipated by "Steel," the weekly magazine of metalworking. recent flurry of advances resulting from upward adjustments in extra cards is about over, are the believed in the making. , ; „ -. from current negotia- Continued on page ALFRED M. MR. vious year. of ERLICH But in connection with the dol¬ result, lars-earning crucially a Canadian limiting factor is that these large increases to a great extent rep¬ acceleration resent have would that of come (Brokers, dealers and institutions only) Billing in U.S. funds if required business in Securities any¬ through the year. The full v year's estimate for U. S. visitors is way 16%, 24% from against 1951 an to Private wires to Toronto 1952. and other principal Canadian cities increase of And not only England, but France, Spain, Italy and Germany as well are 70 Pine Street, New York 5, N. Telephone: WHitehall 4-3262 Cable Address: Watwat Y. getting all-time high tourist book¬ ings. The Coronation's stimulus !to functions somewhat as same impact, the in "Christmas partially WATT & WATT bor¬ the 41 Members flattening-out of the tourist traffic here will correspond drastic January to lull in retail .trade..,.:,,,.. The£ estimate of the itures^ *>£ the 'visitors -Vf:' Jl'fij Toronto Stock Exchange Winnipeg Grain Exchange Montreal Stock Exchange Investment Dealers' Association of Canada 'rot 6 ^Spending Limited These, it is expected, will follow promptly upon any wage boost stemming under the management in U. S. visits over the pre¬ revisions in base prices While Incorporated more of crease June increases from rowing from the future. The post- This Week Further price are than in trade fairs; Trade" Scheduled at Fractionally Higher Rate 19% Americans interested in parades the 1951 Festi¬ Britain prompted no in¬ dently the Steel Output WATT & WATT 10% from Eu¬ countries, and ropean th£ economy $27,200,000,000. > total of less than crease the formation of We announce May, about a quarter "gate," increased a 40% over 1952; against an in¬ the of but and third quarters, adjusted basis, the scheduled outlays indicate annual rates quent three months. $1,500,- number- of The April and full industry turned out 110,387 autos last week, 9% more than the 101,466 in the preceding week and about 18% above the 92,956 in the like 1952 week, according to "Ward's Automotive Reports." The however, Americans. by . expend¬ shows an JORDAN STREET, TORONTO, gentle changing economic aspects very the family of making the earth a visitors from the United States in authority. and coach peoples, expressing the dedication . is, of course, well covered by trade all of these things may happen ,. through the ranks of her cheering of expenses i'f .$ $ first-hand observa¬ the Continent, on as from 1,925,000 pounds. Parades data, entertainment and y,./ f household, crowned, royal the government departments. careful future estimates based on supplied by shipping airlines and travel of Hotel Truly:—Her Majesty on the his¬ outlays for the military forces, ex¬ penses Paris' of lounge lazy George V. For ent flaunting by far the greatest foreign inter¬ est in the Coronation was evinced or and put on just as elaborate a show. Witness the elaborateness of even before the end of this year. But the end of the steel honeymoon will not neces¬ sarily signal an unhappy future for the industry, concludes this Some in set expenses— the of b visible the materials of the total for of with Coronation, statement" a ever-controversial The addition to the swelling of its The Income Statement to celebration of or to ap- b 1 c a s the gen¬ eral economy was adduced by the 4% decline in the country's proj- on airlines, at 38 million pounds, will be only 9% more than last duction resulting from the extra year, because of the new United day's paid holiday. V -V? States, Italian and Dutch liners which have recently The Incidence of TV come into British occasion; since it is quite generally agreed gone; points out. 1 i are important an information does catch up with steel industry the When sions May p Labor already operating at capacity, the only way they can get books current is to drop a full month's quota to customers, this trade paper asserts. . they all cere¬ conclu¬ Our W lUred A. bunting. Inflationary effect and of national are practically filled Most mills will enter the third quarter undelivered month cted e sacred get through products through the third quarter. of was nation days. Fare payments monials.) the of that the defense program is pretty well set, declares "The Iron Age." Even if the shooting stops, steel requirements will remain about the same—at least through this year. About 12% of industry capacity will continue to be employed in filling these needs. .. n cially for the two or three Coro¬ with this most authority. most n a- mo¬ tivation > likely provide a wage increase of around 10 cents an hour; followed by a price increase of about $4 a ton, according to this trade Some m terialistic Steel wage * ONTARIO its v 6 The Commercial and Financial Chronicle (2514) demand for investment funds from have and elapsed the their Federal historic 1951, yet of March more bond market .h i story has been com¬ into pressed this period than into the preceding dec¬ ade. The past .•four have months set a particularly last the pace in of unfolding an erratic, at times securities. dis¬ dull By comparison, market has been haved, Market Has I have been orderly, and • a the well be¬ thoroughly affair. known a find time bonds at tions been become has a market. cash given present, the about about the same ever, amount. ' was the in securities from time to time. explanation for the rapid yields is to be found changed character of the the bond market. ing the balance of the For the most of the Hous¬ course. Government's taxable new credit, and offered 30-year 3*4% bond- look attractive. By raising the rate to 4y2% on FHA insured and VA guaranteed tutions itself to funds. The tendency then, in this small gathering are mortgages, the gov¬ ernment also has made it hard for sav¬ rate which should pro¬ duce a growth in assets of $12 bil¬ lion this year. While these insti¬ tutions have become tremendously a compete for" nonbank, period of high demand is for in¬ vestors and to to be be attracted elsewhere unresponsive the to Treasury's offerings. In summary, as long as private demand stays high and the Treas¬ ury is also in the competition for funds, long-term tinue to rise. rates will con¬ Ultimately the sup-" ply and demand situation in the capital market will determine the point at which an equilibrium is established. Taking into account corporate bond borrowing, state municipal financing, and real size of the adjustment which has estate mortgage volume, it would taken place, however, must be appear that for 1953 as a whole attributed to the the there is fairly close balance be¬ supply of and demand; the for long-term funds. This approx¬ in which manner and Reserve Federal and additional factor: an aggressive tween the ltd a the 'Treasury have presented a united imate balance has not been evi¬ return dent because of the acceleration free market. While the Treas¬ of offerings stimulated by Treas¬ in Dur¬ rfront year, 0 not the are to yield up to 3% fully tax exempt at the long end, do not make the ings at tinued to provide the market with funds by 1 purchasing short-term The govern¬ ing bonds backed by the Federal savings banks, savings and associations, and pension funds. We know that these insti¬ con¬ rise in bond to at buyer loan what Reserve outlets only competitors, of tual reached in March Federal as institutional Corporate borrowers bond ponderous mechanism of our thrift system, composed of the life insurance companies, mu¬ five 1951, points to increase their yields by only temporary support was given 0.35% and a representative index to the bond market by direct pur¬ of municipal bond yields rose by chases of long-term issues. How¬ serve mortgages. estate ments. during the last thirty years amounted to fixed prices, the when, apart from war panic and thrift institutions, which had ac¬ money crisis situations, we have cumulated much larger holdings witnessed so abrupt a change in effective over extended periods of than they really wanted, could bond prices. What occurred in the comfortably meet private borrow¬ time, they cannot respond quickly public utility new issue market be¬ nor is there any important elas¬ demands and readily make tween January and May is with¬ ing ticity in the flow of funds over a commitments for months ahead. out precedent for periods of steady few weeks or months. economic activity. The withdrawal of support from High quality Consequently, the rapidity of bonds, those usually rated AA, the Government securities market bond market changes, the lack of sold to yield 3,25% in January, came in two distinct steps, which 'continuity in prices, and the dis¬ 3.40% in February and March, accounts for the change in the orderly conditions which have '3.50% early in April, and as high gradient of the bond market de¬ prevailed at times can all be as 3.90% in May. During the same cline. After the accord between recognized as the typical charac¬ period, the longest marketable the Treasury and the Federal Re¬ teristics of a cash market. The declined had good spread a prefers other pre¬ There convertible some real and Thus, great long as the Federal Re¬ stood ready to buy long- Government fac¬ a have agencies the large, was inadequate vigorous expansion in as serve a not the financing in which bank credit employed but it is not im¬ portant currently. For a supply of funds, the market must rely on equipment outlays, working capital requirements, and real estate mortgage debt. How¬ A thrift the years, prewar was plant and ever, to has very meet market dominantly pegging operations of 1947 The flow of savings, .al¬ though to of buying, since the are during the wgr leading a real' appetite only for corporate obliga¬ and reservoir no banks since and bond early postwar years, and 1948. Become unable World a term Governments Roger F. Murray organized, but extremely in¬ teresting market for fixed income stock Bond the is Surfeited with gov¬ rough. ernment securities pro- policy of the monetary authorities is restrictive rather than expansionary, the tor, modest increase in rates was permitted. Virtually indefi¬ nite expansibility was provided to the bond market by the well- Cash Market reached Reserve accord The in only there commercial When private investment activity quick¬ ened been a n- the management individual bond War II financing purposes. Forecasting no change in monetary policy unless business hits a slump, Mr. Murray finds current rise in bond yields attrac¬ tive to fixed income investors, while the incentive to buy equi¬ ties has been substantially reduced. Finds government bonds in generous supply, with likelihood of increase in long-term issues attractive to investors. Says preferred stocks are within buying range, and, because of closing of gap between bond and stock yields, fixed income securities are gaining in favor. than two years since the Treasury for frozen was debt Since meeting the small demand for money, and yields declined al¬ most continuously until the rate structure complementing of the Treasury. gram prob¬ lem in Vice-President, Bankers Trust Company, New York more nounced sources. In the 1930s, there was no By ROGER F. MURRAY* Hardly thereby private Outlook for Money Rates And Fixed Income Securities .Thursday, June 11, 1953 .. a carrying the out was firmly stating its inten¬ ury announcements, but it should tight than it otherwise would have sion to get on with extending the become apparent asthe market gested by current events include: market because credit or its equiv¬ been by reason of a $0.8 billion 'maturities of the debt, Federal completes working through the (1) Why have the changes been alent was available when neces¬ increase in the Federal Reserve :Reserve-< officials were empha¬ congested new issue calendar. so great, so In my opinion, 1953 is rapid, and so difficult sary to meet an expansion in the securities portfolio. Similarly, in sizing the fact that this operation likely to to predict? * v ; demand for investment funds. In 1952 the market was eased to the would be conducted without help witness a leveling off, and 1954 (2) What do supply and demand the extent of about $0.9 billion of net in the form of market some decline, in this support, aggregate de¬ 1920s, individual bond buyers factors suggest for the outlook? ' mand from private sources. What System purchases of Governments. were important and there existed -r The notice given by the authori¬ (3) What will be the part played a the Treasury and the Federal lieThis easing of the money mar¬ strong investment banking sys¬ ties early in the year as to what serve will by the monetary authorities? do is more difficult to tem for the distribution of new is¬ kets was discontinued in 1953, the program would be, accom¬ (4) What are the implications sues. predict, but perhaps we can make Also, the commercial banks however, and no steps were taken for the various categories of fixed panied by the Treasury's need for some educated * were surmises. a factor at times and their to assist Treasury refunding op¬ income securities, namely, Gov¬ money before the June tax col¬ ■' l'' until mid-May, when expansion of credit provided the erations lection period, was all the warn¬ More Credit Restriction Ahead? ernments, municipals, corporate modest purchases of bills were market with a degree of "bonds, and preferred stocks? elasticity. started. ing corporate financial officers The actions of the Treasury and Meanwhile, the outflow (5) Finally, how do fixed in¬ Salesmanship and bank credit of needed wand they went right to the Federal Reserve since the first gold and the increase in cur¬ come securities look in compar¬ •work. Only the time required for of the combined to bring'out the supply rency in circulation were reducing year have ,been entirely ison with equities? bank reserves. So far this year, 'processing registration statements consistent with a program of of funds so effectively that bond and the restraint of underwriters fighting the inflationary pressures •An address by Mr. therefore, the Federal Reserve has Murray at the An- yields were in a stable or declin¬ •nual Meeting of the Boston followed a policy of permitting kept the whole year's new-monev generated by a budget deficit at a Security An¬ alysts Society, June 4, 1953. time of full utilization of re¬ ing trend despite the increasing market forces to restrict credit, offer offerings from coming to The program -market before the middle of April. sources/ has also Alerted to the fact that the Treas¬ been designed to postpone, if pos¬ some portion of the high ury would be a vigorous competi¬ sible, level of capital goods activity to tor for the stable flow of thrift This announcement is neither an offer to sell nor a solicitation of an offer to buy any of next year or the year after, when money, borrowers raced to meet these securities. The offer is made only by the Prospectus. a backlog in this area might be their requirements as soon as pos¬ ! sible on the correct assumption highly desirable from the stand¬ point of economic stability. The that the laggard would pay the 1 The principal questions past sug¬ fair three decades amount of there elasticity was to credit a situation was made less ury the " ' ' ' ' " r . .. : ' " activities higher A. K. U. ALGEMENE KUNSTZIJDE UNIE N.V. \ > • ' 4. American Depositary Receipts ! for \ i American Shares . American 5 ' of 20 American Shares for each Chase National Bank of the a par ' • Receipts. repre¬ value of 1,000 florins each ordinary share City of New York, as are to at a be made, Deposit N. Y. or with the of; ' ' ' was apd Supply T - ' borrowers terest rallies and de¬ reflecting the ebb and flow new corporate borrowing. A gradu¬ was ally established in the absence of Treasury borrowing at long-term. Under these offering of 30-year > A obtainable from the Depositary. have A pre- circumstances, $1 billion of even 3*4% bonds as a funds had on the the com¬ of anticipated effects rate' structure borrowing. Thus for we now eager As a if this should desir¬ appear able. Rather, the goal has been to permit rates to be determined by the demands for investment funds in a period of peak eco¬ The results reflect nomic activity. The new a com¬ Administration- has been quite explicit in stating its willingness and intention to take all useful private combat have the Treasury adding a portion of its large requirements to the very time the price for money set by the paratively free market. new petitor for the limited supply '' June 10, 1933. Will precarious equilibrium on Sub-Depositary, Nederlandsche Handel-Maatschappij, N. V., are alike. range, Vijzelstraat, Amsterdam, The Netherlands. Copies of the Prospectus lenders with intermediate and the holders of in the 32 Reserve rates as its primary objec¬ tive, although some value is seen in having higher rates in effect Between June 1951 and the end because they permit more room of 1952, bond prices fluctuated for easing rates at some future within a relatively narrow payment of charges as stated Prospectus, either with the Depositary, The Chase National Bank of the City of New York, at its principal trust office, 11 Broad Street, New York 15, may Federal Demand Balance? i Deposits of ordinary shares and cash market react sharply. Once clines , the extent year dominantly Where the be issued by The Depositary under Agreement dated May 14, 1953 between it and "A.K.U." such ' ' Depositary Receipts in registered form for American Shares senting ordinary shares of "A.K.U." of rate * » - this rates been taken to keep credit tight and to compete with private in the long-term mar¬ bound to con¬ ket have actually been employed fidence was impaired, the de¬ in a firm but not aggressive man¬ clines spread to all sectors of the ner. They seem drastic only by market and the heavy volume of comparison with the long pursuit new financing required pricing at of extremely easy money policies a new level. during the past twenty years. The program does not have raising in¬ w ' . in which it evoked from bor¬ sponse rowers (United Rayon Manufacturing Corporation) V ' Thus rate. rise the of of and the Treasury have been quite is at¬ effective in checking any possible tributable in large part to the tendency for a "confidence boom" "open-mouth" policy of the to develop. authorities and the prompt re¬ The various measures which the begin. a available measures recession High on if one the list of to should these measures, ranking perhaps just below tax reduction, is a material bidding for nonbank funds. easing in the credit situation. The competition has monetary authorities are fully result, the : Volume 177 Number 5228 .. .The Commercial and Financial Chronicle prepared, therefore, to reverse completely the restrictive policies of recent months if business the Building Up Utilities Profits downturn in a activity should become clear, however, that visible. reverse present pol¬ icies simply on the basis of a fore¬ cast, hunch, such It ent long as return picture remains strong, pres¬ policies will remain in effect, in be necessary substantial cash or deficit. I would suggest that the behavior of bank loans will be the most reliable usually „i As ..u in the fall is occurs expected, a 1 should look for During the first 50 service - . relaxation of some permitted of the tnat the hand, if the rise tends to exceed seasonal proportions, in the nate vide from the keenly prevailing competitive conditions in the capital markets. appeared taken required. generation of with Off ones new of in¬ sales. inflation were we capacity able to up demand for energy rose material shortages and to view (b) Postpones at vestment necessary. (d) Improves public relations. Increases It increase the return before economies revising by economic We indeed are fortunate to be in an industry the use of whose ef- produces product practices such situation, there was time is This announcement is neither ' an *■ of Much bring normal, sharply slowed our has benefits that a kindly feeling toward the company which supPlies the energy is most natural, Then, too, as we carry on an. aggressive sales program to encourage the use of appliances, we developments which have taken place tend to increase those resell existing owners of these cost factors which are influenced appliances on the many benefits The rapidly ' offer to sell nor The ■ will be able to extend matur-. ities in tioning size, equipment of inadequate dissatisfaction increased of use may energy. i i a .' ■ Continued on solicitation of an offer to buy any of th§se Debentures. / ._■1 .. » longer-term distribute a re¬ • ;V /* v" .% If, •' is¬ modest effort to absorb Even #• .4 maturities the $150,000,000 carried public debt would result in a very large volume of offer¬ ings. On balance, therefore, even the investor who is quite pessi¬ by the General Motors Acceptance Corporation mistic about the business ou.ttlook should not bull expect a market Five-Year 4% Debentures Due 1958 in long Governments. A special reason for caution about the present level of prices is the probability that the rise in short-term With the current high - credit, short-term Due 1953 July 1, 1958 rates has not yet been completed. Dated June 15, demand Interest payable January 1, 1951^ and each July 1 and January 1 thereafter for - rates should continue to rise closer long-term rates. This process of adjustment, however, inevitably secondary effects upon the to has Price 100% and Accrued Interest market for all Government securi¬ We have ties. on seen a number of occasions that the shifts in short and intermediate rates have had important secondary effects upon the market for long bonds. Unless the anticipated tapering off of business activity comes sooner than I expect, there may well be unsettlement further ket for long in ment It bonds may in the as word of caution is more to the offer mar¬ the adjust¬ however, be, Copies of the Prospectus may be obtained from only such of the undersigned as may legally these Debentures in compliance with the securities laws of the respective States. rates continues. short MORGAN STANLEY & that this applicable trading desk than the in¬ The adjust¬ DILLON, READ & CO. INC. vestment committee. ments, still to take place may CO. THE FIRST BOSTON CORPORATION KUHN, LOEB & CO. well of quite moderate propor¬ with what has al¬ ready happened. Furthermore, I suspect that we may be only a few months away from reaching the time when long Governments '/prove BLYTH & CO., INC. EASTMAN, DILLON & CO. DREXEL & CO. tions compared will prove definitely attractive the long-term in¬ GLORE, FORGAN & CO. GOLDMAN, SACHS & CO. Incorporated KIDDER, PEABODY & CO. purchases for MERRILL LYNCH, PIERCE, FENNER & BEANE vestor. Municipals The Need More Buyers HARRIMAN RIPLEY & CO. LAZARD FRERES & CO. LEHMAN BROTHERS SALOMON BROS. & HUTZLER - kind of a market situation of new in the re¬ SMITH, BARNEY & CO. STONE & WEBSTER SECURITIES CORPORATION created by a record volume issues is clearly seen dismal trend for municipal bond prices during re¬ cent months. Despite the fact that sumption of UNION SECURITIES CORPORATION a present y'elds are attractive to a Continued en page 44 June 11, 1953. follow Thisi type of situation, however, is also offer is made only by the Prospectus. market which would be a to wide by kilowatthour output much less which they receive from them, The than those which are influenced only situation in which increased use of our service does approach- by kilowatt demand, ing.-.when we will again have In most cases the incremental not tend to improve customer adequate reserve capacity. This additional investment in distribu- good wilt is that in which an. reserve capacity will have been tion system to serve desirable new inadequate job has been done. i installed at a unit cost well above loads from existing lines is rela- If a store owner relights but inthe system average and further tively low as compared to the stalls only half as much light as rate increases may* be required average distribution investment. he should or installs air condi¬ The fairly sharp decline in a private borrowing, and the Treas¬ sues. improvement of ing equipment. . ready an deterioration in the gen¬ some should be ury been of public relations, • be has effect program, namely, on resorting can our last that too little at¬ given to this aggressive sales is possible tention . eral the (c) Provides the growth factor which makes additional in-f a preceding background picture of: so rapid that • the capital markets, the point oni we found it which one can be most positive isi necessary to that Government bonds will be^seek rate inavailable in exceedingly generous« creases. Sales to offset further inflation and to The incremental distribution and supply. This statement appears presented no problem oecause ihe provide a return on this increased transmission operating cost is also true regardless of how'the busilow. prosperity resulting from a pent investment ness picture develops. If the pres-r ' • Increased sales of energy for Rate increases which have been ent very high rate of activity coil-/; *Aa address by Mr. Hartman before granted in the past have been such uses that do not adversely tinues, the. debt management pol& -.s°.n Electric institute, Atlantic accepted by our ,customers affect the system load factor ap1CV . „,uu ~,„4ii icy of the Treasurv will he nnr- ™e of the Treasury will be pur because they were in phase with preciably will produce increased City, N. J., June 3, 1953 sued by competing with private borrowers in the long-term mar¬ ket. If, on the other hand, there is avoids or necessity for rate increases. or increased output, already been done along these lines and it is not my purpose to discuss this phase of the question. ca¬ of the to net down the installation of generat- II, however,the " necessary reserve hostilities broke out in Korea. The World War In drawing conclusions from the; was our had reached 27%. Before Following Government Bonds in Generous on which, by the end reserve the . to draw us war, able and. it equipment Rate investment fected and gross in 'all departments to be sure that spread satisfaction. The customer all operations are being conducted w^o buys a dishwasher, a dryer in i the most efficient manner in or an air conditioner receives such, our output at a rate faster than we could provide generating pacity was offset crease* , units to further rate increases. creased for flation^ by in¬ ; Supply (a) Increased rate It is our responsibility to an¬ alyze the situation most carefully to" determine what steps can be the increased an aggressive sales program and accomplishes many things— less systems and expand our we and earnings appears future to net return on the investment. revenues. Hold demand for durable goods in- up position effect relief no to- It fortu¬ being working together to keep the money market tight and to pro¬ of use of our long series utility industry we should be prepared to see the Fed¬ eral-Reserve and ;the Treasury a rate; reductions, the pressure on bank reserves. On other years of our industry, the increased we — reaction Certain more ^ than i- i now temporarily anticipate a much distribution If the seasonal rise which moderate on higher cost, the system investment per unit of capacity will rise. resorting to rate increases, Mr. of; load conditions is guide to the credit policy of the future. years in- checked can replace each company work up a careful analysis of various types of loads in order to achieve a load which will improve net earnings. Points out this is a factor in improving public relations, and urges more merchandising of electrical appliances. Holds improvement of load factor is major re¬ sponsibility of sales manager and constant careful analysis appropriate with financing the connection investment before The going been Hartman urges subject to whatever modifications may on many trend. has increases. Asserting under present conditions it is responsibility of a utility to examine what economies can be made to increase the busi¬ as so favorable 1 some reasonable to suppose, seems therefore, that ness start may now. which be to we Edison Electric Institute educated guess that or decline a months from ,for Vice-President, The Cincinnati Gas & Electric Company Chairman, Commercial Division General Committee they will not inflationary flation By J. R. HARTMAN * It is 7 (2515) WHITE, WELD & CO. page 46 * 8 1 I . The Commercial and Financial Chronicle... (2516) Corporation—Analysis—H. A. Riecke & Co., Inc., Minute Maid Mountain Fuel Supply Dealer-Broker Investment 120 New understood is that the firms mentioned will send interested parties to the following literature: 61 Manufacturers—Analysis—E. F. Hutton & Company, N. Broadway, New York 6, N. Y. Booklet—Utah ment K, Salt Utah, Power Wyoming Idaho, & Colorado— & 11 Casualty Insurance Company — Co., Pacific Building, Salt Lake City 10, Utah. Also avail¬ able is information on Ute Royalty and English Oil. High Dividend Payers—Leaflet—Bache & Co., 36 Wall Street, New York 5, N. Y. and Power Company—Annual describing Ebasco serv¬ Incorporated, Department T, 2 Rector Street, New York 6, N. Y. of New Stock in the yield and National York National Quotation Bureau THE MARKET... AND YOU market performance Quotation Bureau, over Inc., 46 Averages, both as to a 13-year period — Front Street, New Investor dissatisfaction with the Winning The Ira U. Cobleigh — $2.00 — Dept. 5, McKay Company Inc., 225 Park Avenue, New York 17, N. Y. — long-range outlook tinues * * Aeronca Manufacturing Company—Analysis—Hecker Liberty Trust Building, Philadelphia 7, Pa. Alabama Gas Corporation — Bulletin — & Co., Leff Bros., 25 Broad Street, New York 4, N. Y. Badger Paint & Hardware Stores—Memorandum—The Mil¬ Co., 207 East Michigan Street, Milwaukee 2, Wis. Baker Brothers, Inc.—Bulletin—Eisele & King, Libaire, Stout & Co., 50 Broadway, New York 4, N. Y. waukee Canada 39 Southern South La Central Railroad Broad Eastern Oils Limited—Bulletin—Leason Salle Street, of & Co., Inc., Chicago 3, 111. New Jersey—Analysis—Hirsch & Co., 25 Street, New York 4, N. Y. Utilities 25 Broad Associates—Analysis—Kalb, Voorhis & Co., Street, New York 4, N. Y. Electric Bond & Share—Review—Ira Haupt & Co., Ill Broad¬ way, New York 6, N. Y. Also available is a brief review of Transamerica. Formbrite—Publication B-39 Anaconda's new Formbright sheet, strip and wire—General Offices, American Brass Company, Waterbury 20, Conn. on made evident. in¬ & Petroleums Company, available is 15 an of Canada Broad of New York '5, N. Y. Also New Superior Oils of Canada Limited. Graham Paige Motors Corp. William Street, New York — Bulletin DePasquale Co., 55 5, N. Y. Jujo Paper—Data in current issue of "Stock Bulletin"—Nikko Securities Co., Ltd., 4, 1-chome, Tokyo, Japan. Also available Meidensha and Nippon Oil. Lion Oil are Marunouchi, a brief data Co.—Memorandum—Hemphill, Street, New York 5, N. Y. McQuay, Inc.—Report—Loewi Milwaukee 2, Wis.]' Miami Copper Company — & Chiyoda-ku, on Ajinomoto, Noyes & Co., 15 Broad Co., 225 East Mason Street, Review Sutro Bros. & Broadway, New York 5, N. Y. Minneapolis, St. Paul Bulletin (No. Co., 120 & Saulte Ste. Marie Railroad Company— 129)—Smith, Barney & Co.," 14 Wall Street KfiW Corp., Oil ayailable are memoranda on Gulf Mid-Continent Petroleum Corp., Sinclair Oil Corp., Skelly Oil Co., and Standard Oil Co. of Ohio. advanced enough look cash than the to Troster, Singer & Co. Security Dealers Association Trinity Place, New York 6, N. Y. can to help them. Gen¬ are not going down, there anywhere relief from the follow armistice, what can but continued tension profits appears to have many billions annually, to the mounted sharply. distress of the taxpayer, with¬ press ❖ * Consumers s!« Are out any The factors in the outlook for which relief in sight. * Optimistic Benton objective is "to promote a understanding of the func¬ tions of the specialists' system and have to ❖ Exchange, including all sections membership and the in¬ vesting public." The specialist has the duty and responsibility of maintaining an orderly market by narrowing the the of gaps between bids debits reveal that level of tivity is the general business as ac¬ high as it was at the top of the seasonal peak last December, quite a re¬ markable, accomplishment. If some business 8 psychological fears over the statistical background is fur¬ ther unusual at this the year, for about May constitutes season of normally from to midsummer one of the few are Price, Evans & Go. Formed in Toronfo TORONTO, nor reasons motivating their pressure against the — Price, act as dealers in government, municipal and corporation bonds. Officers are William H. Price, Jr., President, and Jenkin Evans, The Jenkin with new firm Evans is & Phila. Inv. Women Plan Celebration PHILADELPHIA, Pa.—The In¬ vestment Women's Club of Phila¬ delphia will celebrate the end of their * * that the new shown by Ad¬ the entirety. * Further Decline There will then the club the Tuesday, be a will buffet and attend Playhouse In The Park to play Bala June see the the "The Male Animal." A. B. Newman Now With Scharff & Jones, Inc. (Special to The Financial Chronicle) NEW ORLEANS, La.—Ariel B. Newman has become associated Charles King Admits Probable potent. Wide swings without statistical backing Scharff & Jones, 219 Caron- * not On June 4th William H. ter admitted Schus¬ to partnership in Charles King & Co., 61 Broad¬ way, New York City, members of the American Stock Exchange. only prob¬ was King Merritt Adds (Special Port¬ virtually in folios sufficiently solid not to seems be panicked by mob rule, and There on selling has been Mr. Newman was contra-seasonal adds weight delet Street. formerly a partner in Weil & to gravity of the situation. Arnold. wide recovery of last Novem¬ are possible, but more ber and December, now has able than otherwise. been taken back at season Club 30th. with * Depressing 1952-53 Country is ministration; , Canada Evans & Co., Ltd. has been formed with offices at 366 Bay Street to scared, In the thin, regulated mar¬ only one other place to loqk, and that is kets of today psychological Washington. The expression considerations are especially its 350 members. Co. Mr. Price was formerly with Mills, Spence & Co. in Montreal. Contra-Seasonal Selling con¬ periods which really can be investors counted upon to produce a be looking elsewhere for good strong uptrend. The fact There in are eligible for mem¬ bership, and the association now affiliated to rising trend. Pur¬ were dumped last week, di¬ by ultimate consumers rectly against the strongest never have been better. They upward trend of net earnings, are demonstrating full confi¬ both at hand and in prospect, dence in the quantity and of any group in the whole stability of their incomes. market. The domination of must offers specialists has chases sumers and the stocks in which he specializes. All regular and relief "Big Board" stable neither with relationship the facilities of the use Vice-President. ❖ Thus the psychology of the public is re¬ sponsible, and which it can marketplace continues ad¬ control, have remained on a verse. Even the rail shares Bank closer those who the of confidence in the eral taxes ahead firmly general outlook will shift suf¬ ternational aid evidently is to ficiently for the worse to de¬ be continued at the rate of Tax Picture Primary Markets of The steady price structure. TAYLOR OIL 74 count upon make Korean attractive more risk. * Y. constructive investors earnings on the international scene, in which developed these swings any event in sufficient quan¬ in the first place have not tity to force armament spend¬ changed by significant pro¬ ing on a sustained wartime portions, but the fear that the basis indefinitely ahead. In¬ DELHI Members: N. which Profit-taking has been persis¬ ings before they can be spent tent in everything which has by the share owners. After a the KERR McGEE Benton, Organized in 1948, the Associa¬ they just cannot and neither is anything exciting over the in sight any second half of 1953, and per¬ intolerable burden of double haps even longer ahead. taxation on corporate earn¬ Limited—Analysis—Burnham Street, analysis nothing dicates that brass General H. was named re-elected Treasurer. was STREETE see * \ be to con¬ action of the market David . the on Exchange. He John J. Phelan, of Nash Co. tion's 4, New York. Street Specialists better Utility Stock Analyzer—Complete data on 75 public utilities— Geyer & Co. Incorporated, 63 Wall Street, New York 5, N. Y. in Wall WALLACE By York Co., Jones Averages and the 35 over-the-counter industrial stocks used elected President of the was Vice-President, succeeding Leonard Wagner, of Wagner, Stott & Co.; William A. Coleman, of Adler, Coleman & Co., was elected Secretary to suc¬ ceed Kenneth R. Williams, at Wagner, Stott & Co., and Thomas W. Bartsch, of Travers & Bartsch, report—Vir¬ ginia Electric and Power Company, Richmond, Va. showing an up-to-date com¬ parison between the listed industrial stocks used in the Dow- Specialists Haupt, head of Ira Haupt & Thomas Inside Story of Outside Help—Booklet Over-the-Counter Index—Folder the of are Association & Electric those presented as author only.] N.Y.S.E. Ira & National Life with They Haupt, Pres. of succeeds Utana Basins Oil—Information—W. D. Nebeker & Virginia coincide Ira Co., Analysis eocpressed in this necessarily at any not analysis—Lerner & Co., 10 Hill Richards & Co., 62 South Spring Street, Los Angeles 14, Calif. Stocks—Brochure—First do those of the 9, Mass. — a many sight. views Chronicle. Service Corporation — Analysis — Schneider, Hickman, Southwestern Life Building, Dallas 1, Telecomputing Corporation Corporation, 100 Broadway, New York 5, N. Y. ices—Ebasco Services, [The Texas. Wall be opment does not yet appear Sterling Drug Inc.—Analysis—Eastman, Dillon & Co., 15 Broad Utilities—Study Boston Hampshire—Analysis—Ira Haupt & Cement Company—New & will of the downward devel¬ tom time Street, New York 5, N. Y. McKinnon, there tough period while the sellers article Bernet giving data on 88 companies—Carl Loeb, Rhoades & Co., 42 Wall Street, New York 5, N. Y. M. Fire ■ Y. Seismograph L^Jce City 10, Utah. & runf Gas, 62 Henry Street, Binghamton, & Post Office Square, Boston Street, New York 5, N. Y. Electric Electric State Riverside Light Co., P. O. Box 899, Depart¬ Stocks—Analysis—Thomson Beverage and out satisfactorily in the long annual report—New Gas—1952 & Co., Ill Broadway, New York 6, N. Y. Department of Admissions and Outside Supervision, Ameri¬ can Stock Exchange, 86 Trinity Place, New York 6, N. Y. Resources—In |f ■ ■ Electric Public Service Co. of New discussing associate mem¬ bership, eligibility, cost and capital requirements, and out¬ lining commission benefits available to associate members- Area ■" r - Montreal, Que., West, Street, James should1 work work off their stock. The bot¬ Limited—Bulletin—L. J. Jackson & Com¬ St. State York York American Stock Exchange—Booklet N. Y. selective sound on to be in New Aircraft 132 Ltd., Canada. ; •'" pany, up but Richman & Britain Machine Company—Analysis—Bond, New Calumet Mines, he pleased P. F. Fox & Co., 5, N. Y. New York Broadway, set principles, Co.—Special Analysis Co., 37 Wall Street, New York 5, Recommendations & Literature It Street, Philadelphia 2, Pa. Walnut 1519 Thursday, June 11, 1953 is to The Financial Chronicle) PONTIAC, Mich—Luke Arama now with King Merritt & Co., Inc., 53 West Huron Street. Number 5228... The Commercial and Financial Chronicle Volume 177 (2517) a greatly increased ingenerating capacity-2.858,000 kw. at the 1952 year end. 875,000 kw. capacity is scheduled to be added by the end of 1954. nancing Generating Interest in Utilities By IRA U. COBLEIGH Author of "Winning in Some topical Wall Street" Sustained investment in operat¬ AGC opines that, here, where in else security buyers have many run Not ity of. afoul that util¬ commons have been im¬ pervious to market 1 c be¬ they cause haven't. h de- ines, They had, a v e however, lot a build to in serves new will that and substantial most important financing. For able were bonds on 1945-52 will to ican in mortgage in the bonds same to¬ factors day. And as for the commons, if pitching for a given outfit has been paying out them, that 75% and more of net, what lure of Ira U. Cobieigh bound, were the over earning it hold can shares? due these Among dividends, course, to out in and, power, dividend increase a increase to years of propelling forces were (and are): <1) steady increase in popula¬ possible a of buyer Gas the you portfolios of new Of the New a like may It nestles many of the pacity in 1952 which 86% a total on considering the year earlier was While at 18 %, paying the yield is roughly 6.5% and the payout of 1952 net, a very high 84.5%, another look is re¬ 295,000. $1.20, For 1952 net, results represented only a 4%% return on quired. rate base here; to expect (closer to from the rea¬ Here again, 6% valuation. Given defenSeto' from vou on Jos. Dixon Appointed William Rosenwald, of to in Naturally, em all. as nely, how- ican Securities can Corporation, Broad St., 25 New York City, have announced the election of Joseph inves- brief W. as Chairman of kilowatt can't executive the cover facts we c omm ittee. Mr. Dixon has suggest that, in might, however, i- r e s dent of Amer¬ de- financial Current Board, P Dixon a this Chairman the and E. F. Con- tor's shopping list, sketch such by Corp. American Sees. and allowing sensible a switching nffpn*P defense to offense. earnings from a 40% capacity increase by the end of this year, P. G. & E. would seem to belong somewhere hp find von u^ittingly better treat¬ at the meters, mav as something better than 4.7% ment favorable treatment return, that is) State regulatory body. a sharp* for clearly and has excellent Power good because of the one out. ought we ever, is a company definitely serving rate increase so that it ca- quite was pay earn son specific about companies falling in the above three-way category. It would be slide over this massive increase, Central Maine I'd rather not get earlier criteria, our suggested. It added 60,000 kw. the of 1975 mMkerdefens« awfnV I flipping Dow Jonef mSnbrh if residential revenues nrennnrielate Also if thl territor?.^ is zooming 1^ Florida South thl Luthwest ind coast' then m£ht 1 pansion of capacity would seem to deserve. At 37 y4, the yield today is 5.38% assuming payment of the $2 dividend. For 1952 per share net was only $2.31, so, by look at Central Maine Power is a unbroken record an by given considerably less attention than its size, the territory and ex- England companies, capacity low Of the very large companies Pacific Gas and iAectric has been about Amer- Electric. and management, the common here (listed NYSE) selling at 24, paying $1, and yielding a meek 4.1%, tric shares leading investment trusts. the above 4% yield rates and split- you If utilities to know more new be yield These to want and way. your fine a dividend payments for 31 years has risen im- give some investment substance to dividends the along ups companies good 3-3%% a era. have will many sell income stock quality in re¬ capital in the next couple of years—that utility is somewhat vulnerable. And of its problems the of lot generating capacity, have to go to un¬ for derwriters adequate up net tory, most every¬ broken skein of declarations going market, the all the way back to 1910, with a as the ing electric utilities equities dur¬ For ing the past 30 years would have answer is a selective one. provided a lot of insulation against example, a utility that has been the headaches paying out generously, that has failed bigger dividends in the not distant future. A growing terri- pressively from $18,248,000 in 1946 to $27,340,000 in 1952 during which time gross has doubled. As a dividend payer AGC has an un- house comment on the suitability of elec¬ equities for market defense. power tric and stalled 9 Joseph W. Dixon addition to the above, you peruse been an offi- the pertinent data about Florida Cer and director of American Seconstructive to delineate tion; (2) improved plant effi¬ of course, add protection to the Power, Consumers Power, Dayton curities Corp. since joining the ciency and vastly increased ca¬ some companies whose foresight $1.20 dividend and reduce the Power & Light, and Long Island organization in 1949. pacity; (3) enormous increase in in financial planning and gener¬ percentage of payout to more Lighting. demand (electricity sales have ator far doubled the last decade); in (4) treatment by considerate rate more construction, place preferred position at a It ment. is, of course, them the in mo¬ true that utilities regulatory bodies, based on the the nature of electric concept of a 6% return on fair continuously requires expansion valuation; (5) virtually no credit to plant and capital since these Appropriate increase in net would, standard Central proportions. no qualities. ; ; Houston Lighting and Power you pay your bill companies, being public monopo¬ plant closes, or your TV lies, can never make or retain net paid out the lowest percentage of net in 1952 of any major electric set won't even bring in station earnings sufficient to finance re¬ patterns; (6) aggressive nation¬ quired growth. So all must build, enterprise, a modest 54.3%. Genwide sales of electric appliances and all must, on fairly frequent erating capacity was almost douhas trebled household juice buy¬ occasions, sell securities. But some bled in 1952, a factor which should ing in the last 20 years (television have both retained more earnings alone has added $200 million a and timed their financing and augur well for expanded earnings in KW sales). building In addition to all of these forces for forward motion, utilities have that their needs so less acute. are ones whose And those recognized ties. Even in defensive will give In up. 1932, when business generally fell off 50%, electric sales revenues The first talk about $12 billion in generating plant expansion is planned in the next four years (maybe we'll see Field, Richards & Co. (Special to The Financial Chronicle) trary. Ohio CINCINNATI, E. has Strautmann — This electric^ generation by electric power would expand 260% ciated with Co., In(?. is not an ojjer to sell nor a solicitation of an offer to buy of these securities. The offering is made only by the Prospectus. I really wanted to one Texas Utilities but was out of deference to June 10, 1953 NEW ISSUE regulations of fense sagged only 13%. A second de¬ quality has been the relative facts market stability of instead which amine the prospectus covering re¬ utilities under they tended to sell on a yield basis somewhere betv/een 1% and 1% % higher than preferreds the on same property the SEC will cent intimate no be hereby offering shares financial quoted and exhorted of you are to ex¬ common new interest knocked rates this nice Worth, hat. plus ferreds went Wichita Falls, and Waco, other communities in rapidly growing Texas. Company paid out less than 60% of net in while, dividends for Utility bonds went down, the pre- down, leaving, for a lot of commons without a benefit of their traditional full 590 spectus and 1952. see the Get pro¬ for yourself what advantage yield-wise over their a progressive watt producer they seniors.; So in the recent weeks have, deep in the heart of Texas. we have observed the price ero¬ American Gas and Electric, at one sion and mounting yields of com¬ time the Tiffany item in the Elec¬ mons portrayed in the accom¬ tric Bond and Share galaxy, is panying table. Having current we ' * taken view of J this the V - bird's-eye utilities, are to conclude that the second or Decca Records Inc. 40%, which offering, I might legitimately observe, no doubt contributed significantly to (which in turn sold on a 1% higher yield than the bonds the decline in Texas Utilities re¬ ahead). This was roughly the re¬ corded in our table. Comment will lationship which existed for sev¬ be limited to saying that this dis¬ eral years until this Spring, when tinguished company (through its new and higher government bond subsidiaries) serves Dallas, Fort little equation into a cocked 318,625 Shares at the largest electric holding CAPITAL STOCK _ and now nice question and the Chairman a will gladly accept an answer from June 9, 1953, which rights expire at 3:30 Time, on the floor. Hearing none, Indicated Comnanv Dividend company Pub. Service of Colorado__» Price through chase any period, % . - may Price 26% $1.40 30% 2.60 51% 5.0 Subscription Price to Warrant Holders $9.20 per Copies of the Prospectus may be writers named in Share obtained in any State only from such of the several lander-; lawfully offer these securities in such State. the Prospectus and others as may 1.80 35 y4 5.1 33 1.20 24% 4.9 24% 1.00 25% 3.9 .70 13% 5.2 Laurence M. Marks & Co. Reynolds & Co. 50% Electric Northern States Power Tamoa Elec. Texas Utilities -24 46 5.2 45 2.00 38 5.3 37 :.7o _ „ Bachej& Co. } ■ 17% 5.0 16% 2.20 38% 5.7 34% 1.88 45% 4.1 40 y4 Bear, Stearns & Co. . " ' 12% 1 ' Long Island Lighting Minnesota Power & Light. ■" 2.40 Pacific G. & E * subscription offer shares of Capital Stock as set forth in the Prospectus. 6/5/53 Yield Commonwealth Ed.'L - agreed, subject to certain conditions, to pur¬ unsubscribed shares and, both during and after the stock, it 4.5 Cleveland ... in the Prospectus. earlier fi¬ Delaware Power & Light Houston Lighting & Power- ; . com¬ is about to common 3/31/53 „ - serves a offer additional he has provided a-- Shares record P.M., Eastern Daylight Saving June 25, 1953, as more fully set forth The several Underwriters have diana and though this V::; Rights, evidenced by Subscription Warrants, to subscribe for these by the Company to holders of its Capital Stock of have been issued Michigan through Ohio, Kentucky, Tennessee and West Isuming some continuance of vis¬ Virginia, into Virginia. It boasts ibly unbuoyant markets of late, one of the most progressive man¬ utilities will persist in the ten¬ agements in the business, presided dency of their bids to fade? That's over by Mr. Philip Sporn. Al¬ defensive platoon quality of these has been overrated; and that as- . Par Value 50tf per Share v.; population of over 4,000,000 in an integrated power grid running east from In¬ pany 4 ... ;• asso¬ Field, Richards & Co., Union Central Building. Mr. president's Materials Policy Com- Strautmann was formerly Vicemission (1950) predicted that President of J. D. Chambers & atomic announcement any William become T the a and power a householder Quite the con- ought quali¬ to perform best at this wobbly depression, light juncture on the Dow Jones Chart. is about the last thing Let's see if we can pick out a few. well long-term sag. Wm. Strautmann Joins now are shares common letter defensive your year market not or writers give the nod to utility equities of this ilk, at the moment, the leaders of this industry see either losses: or Whether traded over the counter, appears to have attraction on an income basis, and fairly evident Maine, Crowell, Weedon & Co. • ' r ' Carl M. Loeb, Rhoades & Co. 10 The Commercial and Financial Chronicle (2518) of member Diversion of Stock Block Purchases Public reporting of the number From Washington Ahead of the News acquired, and the prices same, by specialists in off-Floor block purchases is not planned. Only as these shares are filtered through the auction mar¬ To Stock Exchange Considered paid HAROLD J. KING, Ph.D By King examines rule of New York Stock Exchange new On June It the New York Stock Exchange instituted a rule which promises to affect the securities business to than is erally much greater extent a gen¬ real¬ ized. Its ber is may, Floor Govern- purchase r, the of Floor the Ex¬ change, for an which block King indirectly interested, or of J. is he directly Harold in account stock a which in hei a is registered, without executing the purchase orders at prices his on book the by such block. specialist divert to of lion transacted was over ommendations the - counter. - the of Special Committee Auction 15, of this tion It on Market, place to be carried auction unless it be enabled market his not machinery, the resources en¬ negative effect a on were have to net quick the as¬ pur- account> by firms in the Recommendation Trading make with The he arrangements for a specialist off-Floor Floor Governor to stock is not to be in engage purchase of an block a forthcoming of un- less the Governor "shall have determined that the regular market on the Floor of the This Exchange announcement is got to Listed policies ties of be facility is weeks off and of them, expected any practical of the think is leaders From almost the on the beginning, the to study this The relieves the a block* of sam^ in an■ of nudged him, urging effect, "Now is the time to show you are boss. Give an 'emphatic no,' to him. It will restore your lost prestige." The General did this and then the Taft speech and there getting his dander off-Floor is informed Previously he had been was it developed he had not the required to fill at his purchase price all such purchase orders on learned the truth. his was that special offerings, but to other situations and opportunities which mav come tention in to the his activities. With the specialist ondary not an offer specialist's normal • , carrying a bid at or above that price. Exchange offi¬ course of engage in see- distributions if he to sell or a solicitation is improve the of specialists. income be a of-an offer seen. reaction of the country generally will be one of tremendous relief and silent gratitude towards the man who brought it about. It will reflect an essential difference between the President and his predecessor. He moves quietly without fanfare and withchip on his shoulder. His predecessor was boistrous and a mood a "tell to somebody off." way never Which is the better way? Company ; were to the effect that Eisenhower's personal It will make the because ment Price 101.295% and accrued interest we that have a t. circulatedfrom only such lawfully offer these securities in such State. brought ! (Special to The end an Financial to this .business from offices at 210 West ■V- HALSEY, STUART A CO. Inc. STROUD & COMPANY MULLANEY, WELLS &. COMPANY .THE ... THOMAS &, COMPANY - COURTS & CO. ILLINOIS CQMPANY INCORPORATED STUBBS, SMITH & LOMBARDO, INC. June 11,1953 formerly with W. Ross Campbell.; - ^ (Special to The LOS ^G. Financial ANGELES, been added 7 ~ . will treat (Special the r .V!; . to The Financial Chronicle) > ANGELES, Calif.—Harry Colmery, Jr. has become af¬ W. filiated with William R. Staats & Co., ^640 members . with ' , Chronicle) South of the Spring New Street, York and Angeles Stock. Exchanges. Bethke With Walston Calif. —Cecil Gardner, Sr. and have ; . LOS Morgan & Co. Add 7.: to Peter Mayer the staff of Morgan & Co., 634 South Spring Street, members of the Los Angeles Stock Exchange! Mr. Mayer was formerly with Edger- ton,:Wykoff & Co. ' *+• fiasco Los STIFEL, NICOLAUS & COMPANY - » was ... INCORPORATED STJERN BROTHERS &. CO. , * With Wm. R, Staats Co. 7 Chronicle) ANGL'LES, Calif.—S. Niles Gates is engaging in a securities He \ -. . . V LOS Seventh Street. x. holding shine brighter than it has for many years right to assume that the same even tempera¬ S. N. Gates Opens is was sun " announcement . problems which remain. _, State in which this stock ¬ up, considerable disappointment was developing towards the party as a whole. Then without any advance advertising or build up; amid, in fact, a lot of jibes of "We thought you were going to end the Korean War," an armistice comes Due June 1, 1983 SCHOELLKOPF, HUTTON &, POMEROY, INC. -V-" • a whole. Here, they have been going along for months appar ently getting nowhere. While reports from around the country Series due 1983 Dated June 1, 1953 as may \ This shining example of the different ways of doing things should embrace, in the minds of the people, the Republican party ? up! of the undersigned and other,dealers One way effected an accomplished anything. as Mortgage Bonds, 4 any , Their attitude will be "Let the Presi¬ doing all right!" The truce, of course, will not be that glorious victory which brings form uie snooting of fireworks, tne playing of bands and dancing in the streets. In fact, the New Dealers will find plenty to criticize about it; there will be charges of appeasement. But the to offering is made only by the Prospectus. be obtained in . stop to the restlessness among the Republican It will certainly lift his stock to a high point a among the American people. dent alone; he's buy these securities. to ■ to members of Congress. indus¬ rc^ama a of the editors and Its effect in diverting to the Exchange transactions now han¬ ovcr-ine-coUiHci' , a Korean truce, the President will position to tell these Warwicks that his way of doing things bring results and he thinks it best to stick to it. In short, the accomplishment should bring an end to the captious criticism seems try. dled imagine what he thought when he are indications this advice to make the General unsure of himself in his new can Nevertheless, there With the accomplishment of be in mean new securities tending You getting was field. possibilities It cannot seriously doubted the advice he before the incident. books business for the at- permission, though, may Gulf Power not read slightest justification for his up. The General had v. ,000,000 IRA HAUPT A. CO. that, to be Their campaign leadership. ridiculous head a in new specialist of the obligation of clearing his book for a given stock, when he acquires purchase. writer v anyway. a few weeks ago over the so-cailed Taft "go it alone" incident. There was not the slightest provocation in the Taft speech, no reference at all to "going it alone." But these guardians of the General problem, always in may timing for it Administration has been new "strong," to show his "forcefulness" accomplishment; the Truman Prospectus best on it It should be noted that the rule change." steps have not yet been taken to ascertain the extent to which can more out The They will be • The First have. to able to face the people without any apologies. A tax reduction wait until next year, until the eve of the elections when the expects to report to the Board of Governors on it shortly. Ex- • few,, if ago Korea, the members of Congress—the whole accomplishment in hand and one that a few an in this respect came to securi¬ the truce in a ments, to facilitate specialist deal¬ ings." A new committee was es¬ on possibly With . hands and this added to the own leaderless, disharmonious party. a specialist capital requirements, or alternative financing arrange¬ made with the the Exchange may same listed were the defensive. A group of editors who consider they made Gen¬ eral Eisenhower President have felt it was their responsibility to nurse him and they were continually harassing him to do what they wanted him to do, couseling him to do this and that bona fide so distributions next -year years. may Committee again run taking things in their were picture of creditors. Special tablished in Securities: Amendment of rules and as of pressure groups plaining that it They Exchange representatives indicate member firms may care to parthe object of such business ticipate in the type of distribu- cials state this relieves the spe¬ is to improve the auction cialist of the obligation to fill re¬ market, tions envisioned, by adding to its breadth and The rule is not designed to ap- tail orders at wholesale prices. liquidity. ply to secondary distributions or The new rule should definitely a by organized cn Carlisle Bargeron was all very well for the President to be counseling against tax reduc¬ tion at this time because he didn't have to run again for four that Permission of pounced have who margin type so with loud cries of injustice and charges of patronage grabbing. On Capitol Hill impatience wes being; manifested towards the President. The party wasn't accomplishing what it had promised to accomplish. Members of Congress requirements, the "leverage" of the specialist, though, is limited Only by the 0f ^he Committee reads: obliga¬ It is to be nor- have from an auc- stock, QWn member "Off-Floor an the which specialist Broadening the Auction Market dispose of recommended "An increase in to of amounts for empi0ying published outside on in for now Everything they attempted to do was the subject of criticism by a hold-over New Deal press. It made them fretful. Cabinet officials seeking to effect changes in their departments liquidity of the auction market. > Present regulations require the his is through same redistribution." specialist Aby his franchise. Although the transac¬ tions provided for by this rule are mal ties up his re¬ .(including credit) in offr purchases. Only in those cases They had been cut of office that they were in they seemed not to be able to accomplish anything. believes that the chaged the on long and extent joyed by the specialist are rela¬ tively unlimited would his offFloor purchases of blocks of stock year. not frustrated. market the to specialist Floor However, the JanuReport ieads: «xhe Com_ sj[zable rec- the specialist. considered entirely separate from those dealer-function obligations imposed auction sources is not supposed to forthcoming gbouid Exchanges Broadening on does the the restricted party—will have Speciaxist to purchase mittee Exchange officials point out that rule is permissive in charac¬ It as of be ^ 0ff_Fi00r block the ter. con¬ corr lg being adopted pursuant to the the such liquidity |.jon market. por- a now relief to the country; it will take Exchange officials emphasize only 100 shares of each of the that a specialist will not be per¬ stocks for which he is registered mitted to retail, or wholesale, off (equal to the marKet value of 50 the Exchange a block of stock he shares, in the case of ten-share acquires in an off-Floor purchase. unit stocks). As the Federal Re¬ The Floor Governor's permission serve Board has exempted him attempt Exchange business Jan. will rule • specialists jntent to retail , the the new will not only bring a feeling of tremendous a heavy load off the back of the Republican party, put them back on their feet, give them time to get a good fresh breath and develop some confidence. * They have been chafing at the bit, growling at each other, flying off at tangents. They felt restrained and the sets equal to the market value of be for , This rule represents an to at above the per share or paid price this * A truce in Korea What is not clear block. special¬ By CARLISLE BARGERON that stock's price range and volume; (b) attempts made to dispose of the stock on the Floor; (c) the condition of the specialist's book, and Floor quo¬ tations for the stock; (d) tne spe¬ cialist's position in the stock; (e) public interest in the stock, and (f) the number of shares and market value of the particular with prior ap¬ proval of a •off affected. be definitive "broadens" business how would the trading the v is (a) reads: ist of auction market. a fair and orderly mar¬ Such determination is to be based on considerations The main part of the rule "A ticker prices, absorb the particular block tribute to that market's liquidity. of stock, and that the purchase On the contrary, it would seem, will aid the specialist in main- other things being equal, that the ket." 353. the almost self action v.h.ch adds to its vol¬ ume cannot, within a reasonable time and at a reasonable price or P taining num¬ is any purchases outside usual auction market procedures. 1 for will ket designed to tap over-the-counter market by handling stock block .Thursday, June 11, 1953 . tion of Securities Dealers. of shares Dr. . National Associa¬ the ' ' v (Special -LOS W. to Financial Chronicle) ANGELES, Calif.^Robert Bethke with The has Walston become & Co.. Spring-Street. •'He was with Akin-Lambert Co. affiliated 550 South formerly . Number 5228 Volume 177 ... The Commercial and Financial Chronicle (2519) 11 A the The Price of Gold comitant ■■V; ''l By PHILIP CORTNEY* huge paper inflation money during World War I and the rise impossible war President, Coty, Inc.* of prices enormously since 1938, while the would double the currency value world's gold stocks and current of the existing monetary gold re¬ gold output have lagged far be¬ serves; the output of gold outside hind. (A comparison with 1926 as the United States, assuming a re¬ con¬ made maintain to the it pre¬ relationship between gold and currencies (once paper base a paper Asserting revival of free international trade and exchange restored, Mr. Cortney lists ments a that price change to $70 the • v- < ' I asked to was speech today I the views Council less not expressing either the U. S. of of or state that in my am the NAM and still of those the gold standard. gold standard is ernment. goguery the cized the best brains on the money Two Problems and ■ credit. The price present faced are we One is to re¬ international an cur¬ inspiring confidence to the peoples of the free world, and the second is the social and political rency. Philip Cortney with emotionalism country, is an issue which necessity of avoiding a strong de¬ a consequence of paper flationary trend of prices as a re¬ debauchery during big sult of the checking of inflation. my arises disorder problems: establish the consider we with two been loaded When monetary of gold, while it has by wish easy money or science in of in them governments want to meet budgetary deficits by mone¬ tizing government debt. * who I consider sons exer¬ as money made gold). the The United an States the expansion . could maintain financed recon- credit govern¬ of or simply because relationship between pre-war tered by wish the was I express my conviction, by Prof. Charles Rist and international economists, that the 1929 de¬ pression-would not have been the confuse for quest a gold quest for devaluation of a the dollar. so intense is usually currency a designed to take care of the lack of balance between internal prices world prices, while a wide * swings Lack Great of * to sell it , * Understanding of "Gold Price" Issue Why is there such lack of Britain's price a widespread understanding of the gold issue among economists? bankers Professor or lion in 1951. Over the prolonged so ity. The restoration international requires trade domestic and fiscal policies compatible with in¬ ternational liberal solvency, and more policies, pri¬ the part of the United commercial marily on States. But a country It world¬ the price of adjustment in for is a all like Great other countries. fact, however, that the ing and value of world trade has increased the result of with the normal a "the only $33,000 million. Only a sub¬ situation in stantial "gold 000 million, whereas the existing the make them adequate for international of that the needs have terms of dollars have doubled or trebled, and when the in monetary trebled The qnly result of ihternational can shrinkage and constant a balances in a trade instability in the of payments. A rise This announcement is not been offer to sell or a allowed and money of As what would possible if the condi¬ excess in any relationship to the pro¬ duction of gold. The great mistake? after World War I was to try to maintain simultaneously the war Continued on page solicitation oj an offer to buy these securities. $25,000,000 re¬ sult of the official American price of being gold fixed $35 at international issue. since 1939. This haopened Besides, I can't ascribe sanctity to the figure of $35 an ounce, as of the that fact per Company of Baltimore in spite annual the Refunding Mortgage Sinking Fund Bonds First pro¬ duction of gold in the same period has actually decreased, which some people do, knowing well that would normally tend to increase this figure was established by its purchasing power. A readjust¬ former Secretary Morgenthau in ment of the price of gold should tossing a coin at breakfast time. be made to bring the purchasing Series Y 3%%, due June 1, Dated 1983 June 1, 1953 " The short time available my will speech words economize force be to to me me to rather dogmatic. would clearly and em¬ have what nearer been Price 102.239% it rise in the if and accrued interest prices had been due to an increase in the I wish to state gold of power production of gold and not government debt. monetized 1o phatically at the outset that to The alternative to such a read¬ mind the price of gold is an justment would be to bring down issue only if we are determined the level of prices, wages and in¬ to stop the monetizing of govern¬ comes to what they would have my standard cifically I the the gold internationally. Spe¬ remained opposed to a change while the restore and debt ment am gold in order to create convertibility funds or for in price of closing a dollar-gap the less as relief to and still producers of been if the production International tained .if we Chamber of aiming will be at¬ restore the -cannot convertibility of currencies and stable exchange rates. Equi¬ librium before in the of balances first fortuitous *A ber be obtained in in statement World but by the Mr. payments War was result Cortney of before Congress of the International Cham¬ of Commerce, Vienna, Austria, May 20. 1953. avoid of a issue. standard prices, and HALSEY, STUART & CO. INC. COFFIN &. DICK &, BURR INCORPORATED price of gold becomes a real The reason why the 1929 United Britain States failed to HEMPHILL, NOYES &. CO. MERLE-SMITH • SCHOELLKOPF.HUTTON &, POMEROY.INC. WEEDEN BLAIR, ROLLINS &, CO. & WERTHEIM &CO. STROUD CO. ' BAXTER, WILLIAMS &. CO. NEW & COMPANY INCORPORATED INCORPORATED INCORPORATED YORK HANSEATIC CORPORATION , the question depression was so deep and pro¬ longed remains a mystery to many people. Essentially, it was due to the fact that the governments of the such offer these securities in such State. Gold strong deflationary trend wholesale of the gold State in which this announcement is circulatedfrom only 1939 Hence, if we are to restore the international any of gold had as reasons. which free the may of the undersigned and other dealers as may lawfully L.F.ROTHSCHILD &CO. Commerce are not Prospectus production of goods had The Pricing of None of the goals towards the same largely increased. Such a defla¬ tion of prices and wages is un¬ thinkable for political and social gold. - the The and of Great recognize: that WM. E. POLLOCK &, CO., WILLIAM COOLEY &. COMPANY June 11, 1953 INC. BLAIR & COMPANY BACHE &, CO. " COURTS & CO. * HIRSCH & CO. F. S. SMITHERS &, CO. CENTRAL REPUBLIC COMPANY (INCORPORATED) MRA HAUPT k CO. pre¬ 1914 price of gold in terms of of a a credit offering is made only by the Prospectus, gold, but the outcome of arbitrary abusive printing of paper of out price of gold to $70 an ounce an The one abnormal rise in prices, with¬ an markets. present lack of international, liquidity the domestic the in as tions regarding convertibility had been maintained. The result was- have more than means of greatly in throughout the world prices and wages 1920's governments growth when payments the shortage." What actually happened during World War I is price of gold rela¬ production by governments. in could increase the gold reserve to and money shortage had caused the great depression.".First of all, I object to estimating the monetary gold stocks in 1950 were rise gold due present level of world prices is structure tionship the The war. whether (excluding Russia) are about $70,- payments monetary question, of the whole world needs reserve balanced of and gold is designed to correct a lack ounce and of the supoort of this of balance within the structure of price in international exchange, world prices, as it has proven the purchasing power of gold it¬ necessary and inevitable after self has reflected the depreciation of the dollar and decreased by 50% World War I. It is essentially an for and Charles . mainly to abuses of paper money (monetized government debt) dur¬ not I wish to make clear that a de¬ and induce hoarders of gold their central banks. to Rist traces it to the teachings of 1938, increased to about $158 bil¬ Ricardo. I venture to ascribe this same period lack of understanding to two in¬ as; it was, if in 1925 the dollar the world production of gold fell tellectual prepossessions, frequent and the pound had been devalued from 32 million ounces to 24 mil¬ among English and American, in order to sustain the level of lion ounces. Excluding Russia, the bankers and economists, namely, prices reached because of the in¬ gold reserves of the central banks (a) a confusion between money flation of the monetary means of the world rose from $26,970 mil¬ and credit, and (b) a failure tolion to $35,950 million, a rise of during the war. distinguish between the different 33% as compared to "a rise of impact of money versus credit on. International Liquidity 250% in world trade. In 1938, the the long-term movement of prices. reserves of Great Britain While my main argument for a gold I wish to analyze some of the covered nine times their monthly rise in the price of gold in case of arguments against a rise in thd imports while in 1951 they cov¬ a return to the international gold price of gold. 1 ered them only three times. standard rests on what I have^(1) In its April monthly In October, 1950, the London just said, I wish to say a few "Letter" the National City Bank "Times" estimated that the gold words on the international liquid¬ tries to answer the either the in adjustment prices in terms of all national currencies, valuation of Furthermore, a rise in the price of gold would most probably a position. The value of world trade, which was about $45 billion in other true , worldwide rise in the price of a ounce. requires consequent large in with an actual production $760 million in 1951 at $35 an of the change great to The would have to be worldwide. recommendation and price of gold is necessary to cor¬ against my wishes. rect a lack of balance within the I regret to find that so many structure of world my with pared financing the trade of exchange in - international payments.) The comparison with 1914 is complete¬ ly out of place because of the shat¬ depression. 1929 abuses gold Besides, of the and their currencies and gold and yet avoid a strong deflationary trend of prices; The illusion by was of gold output to the 1940 covery level, could reach an annual rate of about $2,200 million as com¬ present monetary disorder, exchange controls, quotas problem a devalued'since 1939 by 50% with¬ people quarters greater liquidity than in the 20's credit restore monetary technique in the resto¬ out some the of international of illusion it as and standard. and Britain, for instance, should have of Only gold inspires universal and enough gold reserves for the pur¬ unqualified confidence. But if we pose of balancing a deficit in the ration of monetary order. There are ;o restore the gold standard external balance of payments until is no room for emotion in such a internationally and avoid a strong either any temporary difficulty deflationary trend of prices the question. has passed or until the central Some of my friends say that I price of gold becomes of para¬ bank has had time to put into mount importance. The? problem am recommending a devaluation of of the price of gold is essentially force measures leading again to the dollar. Let me remind them international and its readjustment am equilibrium. This is of course that the dollar has already been is It wars. in improper, because the interna¬ liquidity was then unsound, - per¬ of of chiefs of central The at times the pressure resist but those dema- and -irresponsibility oanks would have to be heroes to express personal effective an electoral the on p3liticians. opinions I shall The voluntary is no substitute for the international gold standard.' Only brake by ' shared policies the are J.' coordination of national monetary the U. S. Gov¬ Neither * .1 ** ;- an ounce. of they ' y~\ currencies into of Great' Britain had •3, price to misunderstanding, and, in conclusion, recommends inflation had been stopped the vertible as done as tional and problems involved in attain-; ing these objectives: (1) re-establishment of an international currency in which free world can have confidence, and (2) Hie prevention of a strong deflationary trend of world prices.'' Says question of "pricing gold is a real issue," and offers argu¬ ments for higher gold price. Lays opposition to raising gold are is money can¬ be attained unless "free convertibility of currencies and stable exchange rates,1 under an international gold standard,., not fy ' STERN BROTHERS k CO. 45 12 The Commercial and Financial Chronicle... (2520) What the We know that share of American Telephone and selling new Telegraph common have been far shares to finance expansion at a below, the levels previously at¬ market price above the book Security Analyst tained in Wants to Know activity. be in spite of the growth in the volume of business, but it has may By MARVIN CHANDLER* value of the old shares will raise Mr. Chandler points out objectives of analysts are to ascertain quality of a corporation's future earnings, and their relation to price of individual securities. Lists and discusses as questions of fundamental importance to these ob¬ jectives: (1) Etfect of Growth; (2) Recession Resistance; (3) Regulation; (4) Operating Factors; and (5) Manage¬ ment Ability. Concludes, no matter bow uniform statistical analyses may be, there Ml always be wide divergence of opinion among analysts. In vestor are needed - the named ones to received most only nine first votes. I not sure can am to common me growth.: earnings stock ;wili Increased arise from decreased expenses solve just two that major tion in the tax rate (let us hope!), become, we shall always have a in the depreciation rate, or a fa¬ vorable new power purchase con-, wide divergence of opinion on the prob¬ lems — q u a n t i ty of future earn¬ ings the problems we need may that of Fundamental consider that and is price—that is, the extent to which With marks turn introductory behind those to me let me re¬ now me questions which of are it fundamental importance in reaching the final conclusion as to unit De¬ of course expenses stop and frame the question. I these to seems tract, but that is pot growth. quantity be -selling for $26.60 share, compared to $20 previ¬ ously. I suspect that this situa¬ tion may explain a number r of the outstanding so-called growth stocks.; Certainly the greater the increases in demand, the greater the expansion, the more stock is sold above the previous book value, and therefore the greater per accompany >. growth suffi¬ ciently to raise earnings per share. Perhaps at this stage, we can the - Importance your to fortunate matter. a Questions Marvin Chandler help on. When they are solved, your job is done but ours is not, for we have another factor in the-absolute, such as a reduc¬ creasing the are our ultimately that that is quality of fu¬ ture earnings. Those uniform approaches favorite at any one time, and for the industry as a whole, I suspect the and how matter no analytical and As it, it is twofold, first "What causes growth in per share earn¬ ings to accompany an increasing see volume of business in in not and some others?" The cases second corollary question is, "How is such growth possible in a regulated in¬ dustry?" I shall defer considera¬ quality of earnings, but which we quantity and quality of earn¬ as analysts most need your help tion of this for the moment. ings are already reflected in the in solving. They come under five I would like to see case studies price of the security. At that major headings. There probably made of the electric point, the analyst's judgment and utilities are more than five, but these are which experience play a most important have had the most out¬ the most troublesome to me; They part. His final decision now re¬ standing growth in earnings per are: quires a high degree of selectiv¬ share in recent years, as well as a (1) The effect of Growth few which have not, to see just ity, because there are 135 electric (2) The Measurement of Reces¬ what the causes have been. Has it utility common stocks in public the hands, the vast majority of them sion Resistancy. of adequate size and quality to fill (3) Regulation (4) The Significance of Operat¬ the needs of almost any investor. And he will decide not on the ing Factors basis of whether your company's (5) The Measurement of Ability problems are being or give prom¬ of Management. . ise increase in share per ings if the rate earned value can We earn¬ book on that the know address by Mr. Chandler before Twenty-First Annual Convention of the Edison Electric Institute, City, N. J., June 2, 1953. growth but the the more it more has it has grown, needed to seek Atlantic regulatory relief, and earnings per of(ring oj these Debenturesfor sale, or an offer to buy, or a solicitation of an offer Debentures, The offering is made only by the Prospectus, Now how buy, any of suck it a regu¬ simple that growth as I de¬ possible for a util¬ benefit to the shareholder no if the company its on common can is earning capital, its business doubles, its common cap¬ ital doubles, and it continues to 10% earn Company know May 1, 1953 on the invested? money 4Vi% Sinking Fund Debentures Dated say is not second ity if earnings start at the allow¬ Why isn't it a fact that 10% $40,000,000 of the some common tell 1,1973 me equity think that company again, with $100 of com¬ mon capital represented by ten earning $1 each and sell¬ shares ing at 20. It the year-end of earnings in end of dividend, but pays no at reinvests the $10 new plant. second the year, At the will have $110 of capital earning $1.10 per share and selling for $22 each. Compare this with a counterpart was planation in the be obtained from it which„ of fewer you to shares. new the cases We also know that few some states do not exercise jurisdiction rates. over We don't factors know which has been Blyth & Co., Inc. Harriman Ripley & Co. Incorporated Lehman Brothers A. C. Allyn and Smith, Barney & Co. Company Stone & Webster Securities Hemphill, Noyes & Co. Corporation Hornblower & Weeks Incorporated F. S. Moseley & Co. G. H. Walker & Co. Dominick & Dominick . Weeden & Co. Baker, Weeks & Co. Incorporated June //, 1953. Alex. Brown & Sons A} i Riter & Co. is concerned, how these customers of dependent are yours general on business in mands frills business territory? your what extent or To nonessentials which be cut down? can and their current de¬ are mortality rate How much of be expected among commercial customers? How much family doubling, up or a can moving to less elaborate dwellings can be expected among residen¬ tial customers? I realize that you not know the may here answers better than I, but I think that you are in a better position to study the problem. I wonder, for example, if the experience in some any of the distress textile areas would be of a year assistance. What would happen to, the farm load which has grown to be of considerable importance to some companies? Do you have' any ago wholesale any power-sales arrange¬ ments which would bear the brunt of reduced demands upon After all the pur¬ V these revenue solved, are ques¬ how about ex¬ pared to other companies? Could you shut down much high cost plant which plying If the mend securities which has to more whether old the of com¬ with the least efficient plant pany to in effect is sup¬ now your lowest-priced sales? perhaps we should recom¬ so, look forward demand rises and plants replaced the low demand falls and are by actual of the know that a allowable fixed point but a range, and that growth within that range is not only per¬ missible but common. We know have able earned rate growth that at has that less some than times, carried sub-normal an and them into a utilities allow¬ perhaps out of normal although more frequently type of utility has needed range, that regulatory earning relief power. to restore its ex¬ Finally, even if your situation less promising than others, seems you better protected for it by large carry-through of revenues are a to common? We these of some answer can individual questions ourselves, but I am to that you sure could help us factual and comprehen¬ more a sive study of the problem. future. some to we here : attitude, in whether to seek relief counting upon in the find out? second I of Recession problem think be with as you intend promptly, vigorously completely when earnings drop below a reasonable level, or whether you will hold back. I think that Resistancy My \ in your and was the that our thorough as help from analysis it could we with Measurement be of help we can first interested are of success, position your Can't ways you. significant which you are here is not the flexibility all, the income tax? the in individual improve these ex¬ com¬ Where else is there cept in that most flexible cost of cases one to of ancy. We Glore, Forgan & Co. commercial and residen¬ as business We Measurement of Recession Resist¬ earnings rate is not Drexel & Co. tial Regulation Continuing our search for ex¬ planations of growth despite reg¬ My next topic is Regulation. ulation, we know that some states Probably nothing plays so impor¬ do not regulate on book value, and tant a part in our thinking and in in a period of rising prices, rising yours today as this subject. To earnings in those jurisdictions a considerable extent, you can't might well be permissible. tell us the answers. Perhaps in in the last few years. any So far pays panies that have grown the most of the several under¬ only in slates-in which such underwriters are qualified to act as dealers in securities and in which the Prospectus may legally be distributed. may load if business turns downward? and at the I to this where I'm wrong, tell me expalanations Copies of the Prospectus charges minimize the reduction in penses? How fixed are yours com¬ answers, and especially, to tell me which of these theoretical writers demand would extent con¬ your therewith? tions prevail with retained Let's assume the same other Price 102% and accrued interest what they? are of nature relationship earnings. nor I answers question but I would like Due November To of industry the What is tractual on one or industries? or tion would suance the question, the growth in lated industry. It is result Northern Natural Gas about able level. to customers whether tomer better than others? fine an few a out all its earnings cost facilities, or beginning of the second they cease to operate. What about growth was in year finances the $10 expansion the relative merits of hydro versus residential, commercial or indus¬ need by sale of half a new share. steam, comes the recession? Are trial business? Which is more ad¬ At the end of the second year the you purchasing power which can vantageous, an increase in cus¬ $11 of earnings will amount to be cut back, or would your con¬ tomers or an increase in the load $1.05 per share, which will sell at tractual arrangement not permit of existing customers? What part How about other expenses? 20 times earnings or $21, and to¬ it? mattered enough to This is hoi reces¬ the industrial load as itself is concerned, how much de¬ situa¬ same of being satisfactorily solved, Considering the first of these, I is played by the form of the rate gether with $1 of dividend re¬ whether, perhaps because of think that growth is a factor that schedules? Have expenses been ceived provide the stockholder some private characteristics or ex¬ is often over-simplified by an¬ an important factor in the differ¬ with the same $22 of value as if ternal factors, they are not ca¬ alysts. Growth certainly is not ence in performance among dif¬ all the earnings had been retained. pable of solution by you, but always beneficial, for the Pacific ferent utilities with similar In other words, if funds in the rather on the basis of whether at Coast has been the fastest grow¬ growth trends? Are the good per¬ business are capitalized at twice the prevailing price of your stock ing area of the country, in terms formances merely the result of their book value, this will be just he is getting more or less future of population, but this growth starting with older and less effi¬ as true of new funds left in by earnings, quality considered, than generally has not carried through cient plant, or with greater re¬ stockholders as of new funds sup¬ he can obtain in any of over a to increasing per share results for serve capacity throughout the sys¬ plied by sale of common. The rise hundred other issues. electric utilities. The telephone tem? Have some companies in per share earnings, however, The range of disagreement industry since the war has had been able to hold down the new is more rapid, the more funds are among us is wide. At a recent outstanding and continuing plant investment per new cus¬ left in, merely because of the is¬ •An So far chasing utility? be maintained. or the sion? less sta¬ or large in times of pendence do you have increased is than What type For example, there¬ equity now, however, earnings per will produce $20, which, when di¬ share resulting from an increased vided by 15 shares, results in volume of business. earnings of $1.33 per share. The It seems to me that aside from meeting of the utility group .of Increased earnings per share old investor has experienced a so-called special situation analy¬ the New York Society, 121 an¬ are not necessarily attributable to very satisfactory growth. More¬ sis, such as a merger or recapital¬ alysts filled out questionnaires to growth, and growth does not in¬ over, if his earnings are capital¬ ization, and short run analysis, all determine their first, second and variably produce increased earn¬ ized at the same 20 times rate as the facts for third choices for the most favored ings per share, as I noted a ihor before (which of course is very which we as utility common stocks. * A total of ment ago. Increasing earnings can high, and was used only to sim¬ 75 companies were cited, and the arise from rate relief, but that is plify analysts the arithmetic), then his search Growth earnings. fore ble book value is fixed. judgment the only growth other >100 of common capital, so is significant to the in¬ five shares are sold. Earnings at is growth in per share the same 10% rate on the $200 of my which and small firms more per share earnings even though the return in terms of earnings on been such a persistent and con¬ assuming that a company is capi¬ with tinuing result that one becomes talized $100 of common suspicious that it may have been equity represented by 10 shares, on which it is earning because of the growth. 10%, or $1 Perhaps we should stop here per share, and that the shares are and try to define or at least de¬ quoted at $20 each. Increasing limit what we mean by growth. demand necessitates raising an¬ Vice-President, Reis & Chandler, Inc. both quantity and periods of high business The result in both cases, Thursday, June 11, 1953 course any are often but impatient the first I outlined, and if you do not take an aggressive attitude, we want to know why. You may have ex¬ cellent tion. ter reasons Perhaps than we which stand for delaying ac¬ foresee bet¬ you can can economic forces good chance of cor¬ don't think that study of the 1932 recting the situation without reg¬ experience is sufficient or even ulatory action. You certainly are more you. I a rewarding, when residential usage in a better position than we to was a fraction of today's level and judge the proper timing from the when commercial and of energy were different. I want to uses how stable are industrial also greatly know revenues. viewpoint of public, political and customer relations. I think that first, How many of us are too prone to judge does the economic stability of your the matter solely from the inves¬ territory generally compare with tors' viewpoint. You can help us others? tion a average Is industrial guarantee of diversifica¬ better-than- stability? Are small plants to see the other sides to the Continued on prob- page 43 Volume 177 Number 5228... The Commercial and Financial Chronicle "dog must be shot" and that tech¬ nological obsolescence will have fluidity in the face of the threat to take its toll. Building Trends and the Building Materials Industry membered Massachusetts Institute of Technology when of buildfaig services, inch . - * 'r:':*" «ew • of construction." era addressing myself to the subject "Significant Trei^s in Building: Construction and Their Effeets is 20% the overall of and irrational completely fundamental change some in approach looking in cost loss of Walter C. tices in products; and reducserious toward aid in ing this I hope stimulate discussion which integrate my concepts of this problem with your duties in guiding the formulation of our indusand financial tendencies interdependent structure, interrelated are in and dis- in cussing them separately we must keep their relationships in mind. These tendencies may be cate¬ gorized as: - a Without any tion - by owners The ready ties with Securi¬ Company Chicago, 134 South - the Ex¬ change. . Randall - Ease- of* attachment- and detachment .will aid in the salvage of of f expensive metals and: de?, willfurther aid in meeting obso- Mr. has recently been 7-'with Cruttenden & Co. and prior Ralph G. Randall of Midwest Stock and\designers of M La Street, members co¬ adop«>| . heights, site be¬ associ- d Salle tion will further aid this process, edicts of the e of efficiency and service is standards for design and construe- tism and dictatorial t First will greatly of installation and use. has come V thereto Manager was department restraints, and built-in services industrial and space con¬ use shifts new for . of old location or economic in the . , , the is tendency engineers part of present high cost of construction services involving too much site labor and the on bury to these . donment of either the site original specific use. full of "white is elephants" which some corporation because of plaguing lending are or a lack of initial consideration of these elements. in materials; (c) Re-evaluation of the func¬ tions and designs of building use, emerged of concept and many space of our partner Watts, in Ingalls & Snyder, New York City, mques. passed away at the age of 84. connotation one another or in architectural offices. Rigid, threaded piping will have to be eliminated in carrying water sup¬ plies, either hot or cold; heavy, This advertisement is neither be superseded solicitation of offers to buy any of these~securities. June 10, 1953 NF.W ISSUE prefabri¬ by cated have conduits will have older a offering is rhade only by the Prospectus? stacks soil cast iron offer-to sell nor art The J tubing of equal efficiency and and more economically fabricated; materials new many H. pendent upon old, outmoded tech- many cumbersome Materials result of the challenge of a new Samuel H. Watts Samuel practices which are de- ciple of "getatability," to coin a word which is now being heard will As this too many the or of concept country . obsoles- in the rigidly "frozen" structures, zation and change within the life making it next to impossible, ecoof the core of the structure. Such nomically, to make necessary an: analysis on several recent changes. One of the "crying projects has resulted in the abanneeds" in this field is the prin¬ The , „ru.. . v.- mate¬ use ^ the assurance of the feasibility of moderni- New Applications of rials and ^ and cence, cepts of design; (b) ' and equipment agency New (a) ease ordinated Chronicle) dall C" past, and all of them require the panels and covering material and tive bay sizes, story of and to The Financial struction, will allow the develop¬ ment of mass production prac- 1 imperative.J All of these services are bogged down in the conserva- " ^ trial (Special CHICAGO, 111.—Ralph G. Ran- it willv greatlyv reduce the time element in design and con¬ . These First Securities Co. substantial financial in¬ a • . will Ralph G. Randall With re¬ rep¬ wh' iescerice as it impinges on appear-: of" -the trading : dej for specific occu- ™snts of • this^ cost is the high ^ • Mason, Moran & Co. Building Materials pancies. The thought is being hourly wage of the tradesmen in ance or use. As previously mentioned all of these fields, who after all are re-,, k Industry," I given to the analysis of building Hogle Conference shall try to occupancies and use to combine quired to possess unusual skills these tendencies are acting and •LOS ANGELES, Cal.—Partners ^ f • point out the two or more such occupancies into advance be considered concurrently and Managers of J. A. Hogle & with the technical improvements major tenden- types so that multiple use is posin design;. While it would be pos¬ Co.'s Los Angeles, Beverly Hills, cies toward sible over a predestined period of ? equipment and design. While it sible to expand any one of these Riverside and San Diego offices fundamental" building life in a .given location. 1S ^rue water and steam must held a regional sales meeting this be transported by pipes, air by tendencies to a much greater ex¬ changes in Inasmuch as the nature of the week at the California Club. ^ ducts, and electrical power by technology construction would tent, it is hoped that the ground¬ vary with :James E. Hogle, Managing Part¬ wires and conduits, it is equally and economthese use types, it follows that work may have been laid for fur¬ as true that our pipes, ducts and ner, and Richard Beck, Partner, ics which I buildings so built would have ther discussion and questions, both of the Salt Lake headquar¬ believe are lives extending over various pe- con(iuits are obsolete in the light ters of the firm, and Karl Meyer, gaining con- riods. The possible occupancies of contemporary knowledge, The some of which I, or perhaps some Manager of the Denver office', siderable acsuch a building must be analyzed multiplicity of sizes, fittings, and 0£ Q can answer of this I am were principal speakers at the ceptance in to determine whether one or more techniques will surely be found We are on the threshold of meeting, conducted by C. J. Ca¬ unnecessary when the present &U1C professional of such uses could be substituted a completely new era of construc¬ trend really takes hold. ble, Partner, and J. D. Boggs, and scientific for the original use without fear Voss Another phase of this dilemma tion,. all brought about by the Manager of the Los Angeles office. circles. In do- ; I may be must building the on • about uation h as In : It a tions; con¬ today this percentage has risen as high as 40-50%; This sit¬ tion heating, plumbing, air conditioning and electrical services, ali of whichyneed continuous modernizing. Concludes "we are on threshold of completely use -services basic cost; production practices which reduce unit costs.; Sees increase in ; these sumed in t that of Use Prof. Voss points out fundamental changes in economies and . obsolescence. Building Services vestment and should be designed Building services such as heat¬ so that this investment will be ing, air conditioning, plumbing amply protected. Modular plan¬ and electrical services are prob¬ ning when it becomes of age will ably due for the most complete allow all materials to compete for overhauling. There f was a time use when they meet the condi¬ Head of Department of Building Engineers technologies of building construction, which comprise rea¬ sonable durability, flexibility for multiple use, and development of-facilities to meet obsolescence. 7 Says these changes have; brought about new materials, more shop fabrication, and mass of resents By WALTER C. VOSS* / 13 (2521) for multiple uses 800,000 Shares studied be to 7 and change and services; materials have, beeirsubjected to preferably placed in prefabricated (d) Integration of modular plan- serious study ,to make them ap- vertical or horizontal panels from ning, standardization and salvage, plicable to this demand for standthey may be serviced; zonal . . AH of these may effects on the have profound financing of present and future industrial ventures, but I shall this leave to area subsequent analysis as we your expand the elements of each. Until quite recently nearly all buildings were conceived as a succession of bays and stories in¬ volving the use of columns, beams and; floor systems which were more less or dependent dimensions of the occupancy and the on site, the specific the normal nomics of structural design. eco¬ Each ardization, ease of installation and ? *n£e; u,us we a vefy def" llllte trend away from heavy masonry walls, partitions and floor , the use of lighter weight panels of metals, plastic laminates and processed of materials many As compositions. of introduction and result of the these materials, a plastering is rapidly declining in use and the structure is being erected from and a Correlative such costs as for ex¬ tied more or less pensive forms for concrete, stag¬ prearranged ideas of ings for masonry work and wages the owner or lessee and the de- 0f some 0f our highest paid tradessigner rarely questioned these men are being reduced. Site la¬ wishes; he made the necessary bor is being replaced by shop project rigidly was to concessions to such ideas in order fabrication The called owner his upon own experience and personnel to for¬ mulate his ideas and made no practices with and repetitive units, though he might have wished to revolutionize the entire approach. mass and can sufficient production reducing are unit costs. This ing approach is only now gain¬ momentum, and manufac¬ are developing more new turers serious attempt to his analyze problem from every angle and in complete detail. panels the and assemblages to meet concept. Designers are new mands for Architectural Changes process however, Recently, forward looking owners architects sought and to the and engineers incorporate in more many have their projects the principles of reason, able use, life, and flexibility for multiple ease of change to meet obsolescence of appearance, ices and This use. quires divorcement *An serv¬ approach from address re¬ restric- by Prof. Voss before the Boston Security Analysts Society at the Harvard Club of Boston, Boston, Mass., June 4, 1953. • time more heavier, of the same. accelerate will is not their expanding continually Air conditioning, signed, is probably as uneconomic as any of our services. In many cases a complete plant for cooling more Par Value $5 per share volume, cupies valuable building but is used only about 15% of the all Where that namely, the of providing at all times using same spending this in latter direction, thetrend indicating can This able unit in an area the and the needed. and and will take the stand- Thus brick, stone, tile and such materials, at least in their present dual capacity as load-bearing and skeleton bases, will disappear. The only other alternative would be depressed wages and this would destroy the very essence of pros¬ someone's Copies of the Prospectus may be obtained from any of the several underwriters, including the undersigned, only in Slates in which such underwriters are qualified to act as dealers in securities and in which the Prospectus may legally be distributed. but alto¬ toward reasonableness, but much research is being done and more must be we plaster, that equipment, we will be dollars uneconomically. gether too much of our air con¬ ditioning is in the former cate¬ gory. The advent of air condi¬ tioning and cooling packaged units is store or a on when needed it when not one or the other latter harmony with the prin¬ ciples of multiple use which as one yet are multiple Hemphill, Noyes & Co. Hornblower & Weeks Merrill Lynch, Pierce, Fenner & Beane Kidder, Peabody & Co. Paine, Webber, Jackson & has not moved too that of modular planning, standardization and salvage. These of Glore, Forgan & Co. Curtis Smith, Barney & Co. of the tendencies, far, is elements Eastman, Dillon & Co. Drexel & Co. Clark, Dodge & Co. occupancy discussed earlier. Perhaps Union Securities Corporation Corporation must approaches in the approach is two Tlie First Boston mov- conditioning The in install remove Air these more share Price $29 per com¬ air and fort future. seems cooling is necessary round the story is more satisfactory, but until air condi¬ tioning assumes its true meaning, year done before and cumbersome, use tive. of It Common Stock and dehumidification not only oc¬ tices will disappear as perity. de¬ now as de- far distant when ard approach. Company and many others. and changes; less economic materials and prac¬ concrete, American Gas and Electric heating for morl.*«£*■*«{»» its factor its cost is prohibi¬ expeditiously, more economically structural point of view. more cleanly, systems will have to be studied more carefuiiy from the standpoint of cost and systems boards distribution of use the very essence occupancy and fucker, Anthoriy & Co. ,c7 Hallgarten & Co. Lee Higginson Corporation 14 The Commercial and Financial Chronicle (2522) by. 1932. It is to be hoped that a conflagration as that can avoided, but here are the facts: In the five years from 1946 to J951 the increase in ."corporate Coal Seen As Main Source oi such Business Outlook Dubious .Thursday, June 11, 1953 .. be r In Second-Half of 1953 By W. W. aebt 19.8%, Townsend-Skinner and Company, Inc. in of a "dubious outlook for busi¬ towards end of the year" primarily on mounting public 13.8% been has dividual TOWNSEND* and more than twice and instance one and in ness and debt. Cites heavy increase in corporate borrowing rapid rise in will be is quite The present out¬ simple. only look for busi¬ is good tem the out¬ been levied ever ness and for look justment," which is an¬ other word ; burden on the mendous for taxpayer, recession, the home owner, within year is the wage earner for this con¬ of .collapse has become of conclusions — impelling. They lie in background of immediate .history, they represent facts al¬ ready on the record and, while the tendencies which they clearly delineate may be—in fact, be — of reversed, what be cannot "be has the should already taken by of the and the facts —in .At the the II Federal tism at the present little larly of the part of those manag¬ ing the affairs of our thrift in¬ stitutions. on The primary for this cause It must earnings or from the to suffer. ticularly the paid the Public Federal both lender. debt, debt, are par¬ debts, if needs drives. It must is the habit before the of a talk Pacific by Mr. Northwest Townsend Conference point.' charges War net state, debt it II was War net II nearly private debt collapse increased dividual by 5.1%. which Savings and Loan Associations, Ogden, Utah, June 8, 1953. off; So forest in¬ their new that which fire any and of good con¬ inflation n g difficult the management, of lines to has success¬ fixed operations systems/ and business volume have enabled the an elected companies to the be one major industry that has made conse¬ material the begin¬ its no increases in the price of product.' Continuation of this will require every possible success further improvement in and efficiency economy." reference' has or much for counter¬ are 'v, v ' the growth date and to quirements in : the load energy the in Continued on an Members guests will Field Jr., page 39 Gas LINE David . H. Callaway, Chairman of the Day Committee, announced today that the attendance is ex¬ pected to-exceed 325. Copies of of as the indicated President's idly, must energy reliance of the Noting the be future." * 14 over 500,000 kilowatts service or in are been steam-electric LIGHT COMPANY units will continue to be keeping down the of electricity." cost Cautioning that such factors COMPANY location, construction and is expected John F. that the over-subscribed. be Egan Visitor City In New York John F. Vice-President Egan, of the First California York for ers, of San Co. visiting ,is in New week calling on deal¬ a brokers and bankers. under generating and it will Francisco, that of steam-electric has GAS and issue With Samuel B. Franklin ago, he emphasized that "increase in size and efficiency of Company MILWAUKEE • Day. &-Co., Ill Broadway, Room 1200, of great aid in PIPE Westchester to at $l.per copy. Advance subscrip¬ tions have been coming in rap¬ Policy Commission. and power CORPORATION COMPANY travel General (Special LOS as to The Financial Chronicle) ANGELES, Calif.—Ather- ton F. Messmore is now connected with Samuel B. Franklin & Com¬ pany* - MICHIGAN-WISCONSIN Municipal Field years CONSOLIDATED GAS The Country Club, Rye, N. Y.,, June 12, for the Club's 20th Annual requirement," Mr. Phillips said.- "Steam-e 1 e ct r i c capacity MICHIGAN of to construction, compared with four JERSEY economic Bond Club of New York and their tion of the 1975 ex- plants NEW of distances." re¬ prospective 1975 report Materials consumer1 debt has also increased to such and the of - corporations v A limits ./ ^ "The generation of every kilowatthour of p o t e n t ia 1 hydro rapidly mounting total of power—good, bad and indifferent savings and the simple fact, —would supply only a small por¬ short-term brought the whole nation to grief Natural the To / just "been main American atomic plants would serve N. Yi Municipal Club 20th Field Day technological pooled interconnected any produce i o v more improvements, decline in overall volume will up, abundant an discharge of this responsibil¬ ity," Mr. Phillips stated. "So far contributing are beside the to-such times ful that of the country. The most- press¬ ing problem confronting the man¬ agers of the thrift institutions to¬ day is the question presented by troublesome item the fact before all "Fast-m made The accrue out $8V2 billion of brokers' loans, touched will acted. noncorporate debt That burden of debt, of match Phillips ity "to at determine / the Club's annual publication/ emphasize the extent and "The Daily Bond Crier," lam¬ scope of .the industry and its re¬ pooning the entire municipal bond made. Defaults, like forest fires, sponsibilities to the' nation, Mr. fraternity* go on sale at 3 p.m. feed upon themselves until they Phillips pointed to the tremendous today at the office of Ira Haupt are burned Which and the N. C. lines sistent with good service. well that this is the forest fire to At the and respon- i b i 1 , dollars and in debts know all too debt corporate 6.3% by the most constituted •if 1929, of simple deductible taxes. nings of trouble, in the shape of defaults, and those who deal in last statement, by itself, is startling but the percentage increases are even more startling. In the eight years which preceded the s transmission balancing economics. "(6) The use of types of fi¬ nancing similar to those employed by groups of companies to pro¬ vide capital to construct large power plants and transmission filling its pri¬ "of" corporate however, If this keeps, business quence burden the is .extent that J a At the end was and after factors, The the of World was •Abstract taxes rather can and local $50 billion. the transmission not billion and today it is $304 billion. extended and the government can print the money to pay devil our the prospec¬ possible cost to the customer interest • close of World War II it was $141 itself its of stood at about $125 billion. pri¬ from savings if borrower and not be be enough consider¬ apprehension. total and over World vate debt, which differs from public debt in one important par¬ ticular. a $275 billion and stands today at $265 billion. At the beginning of con¬ is the mounting total of cern harsh, warrant beginning of World War sum the greatest caution and conserva¬ time, particu¬ also are fact—to -tremen¬ extend tremendous The Mounting Debt only of are able degree of place can exercise support, These over. consequences averted mitigated .lack the furnish quired, by debt financing in com¬ because of its parison to the rates required by and has toppled equity financing, and part to the harsh words but instability oped the our com¬ tition supply of electricity at the lowest the transporta¬ mission dous on the part of the pub¬ equity purchases, part to inordinately low rates re¬ and "(5) Where long distance trans¬ is indicated, rail compe¬ and the financing costs of electric indus¬ - of This fac¬ petition. the lic in blocks fuel into closer raw of interest great to be supported, has devel¬ debt if large to be moved. transmission tion of the try is to meet Part of this has been due to lack too or future" V:■ y mary sons. pyramid inverted an which — clusion Townsend tric reli¬ for ance heavily and for the following rea- practically inescapable. /in all our history has been pre¬ The reasons cipitated or accompanied by the W. W. "main A little not for another fact. where tor, combined with high load-fac¬ tor loadings, tends to bring elec¬ energy be the facts shows very .clearly that bus¬ tive require¬ iness today, is going into debt tool ments' for ful¬ and, in fact, on all of us. And every disaster which has overtaken us a and must This would be bad enough if it were lowered power are electric power 80%. was vention steam- o n that conspiracy of circumstance over one-third of the new money during the past generation has being raised by corporations at contributed to the creation of more the present time is not for plant and more debt until today the expansion but for working capital. carrying charges alone are a tre¬ And the sum total of all these "ad- An that steam stations a -L C In, the six from 1946 to 1952 this was During the last year this 78%. against our sys¬ additions in improvements. years enterprise capitalism. free Convention will be in power must be the main reliance of the future." entire dubi¬ is year has business into and However, and in spite of all the lessons of previous history,- the the balance of this ous. of Institute power using coal, and "steam-electric con¬ 4. back which criticism valid Electric the fact that in the eight / C. N. Phillips, Director of Re¬ located, in effect, at a mine-mouth from 1922 to 1930 the debt search,/Ebasco Services, inc., New. with an assured long-term, lowexpansion of the corporations of York, N. Y., told delegates attend¬ cost, raw fuel supply. the country represented 60% of ing the Edison Electric Institute's "(4) The unit costs of trans¬ the total amount of funds plowed t /TlijuUUI mitting energy electrically are become has serious for Edison at is cern inflexibility of debt is the The It first. stated be will cussion which basis Y years con¬ dis¬ pernicious and dangerous. this of conclusion creation debt Contrary to precedent and prac¬ tice/ the Another < debts. Says when this^ credit ex¬ consumer pansion stops, demand will decrease and nation fronted with over-production. much in another, by com¬ as Phillips, Director of Research, Ebasco Services, Inc., delegates future load growth in electric parison with the debt increases of the 1920's. ' and private are tells four times N. C. much as almost Mr. Townsend bases his view i EneigyfoiElectiicPowerExpansion in-- debt non-corporate He 215 was West Seventh Street. formerly with Edgerton, opera¬ Wykoff & Co., and Fewel & Co. labor ratios, and other cost-controlling items will cause specific situations Continued from page 2 tions advantages, different to vary from averages for repre¬ sentative conditions anticipated in the immediate future, the speaker revealed the general findings of The energy transmission study which hypothetically covers dis¬ Security ...an tances up power up and 460 / THE OWNING THAN GREAT SOUTHWEST GAS TO MICHIGAN DISTRIBUTION 950,000 CUSTOMERS IN THOSE INDUSTRIAL CENTERS OF AND to The tion listed these con¬ of be further price concessions, experience is not likely to repeated in face of two fun¬ damental facts: * has economic of been first, that capacity accomplished at much cost than in previous in WISCONSIN COMPANIES' SERVING up advantages large generating units installed greater stations of great capacity are years* and second, that long-term so important that their use is in¬ growth of paper and paperboard dicated wherever load concentra¬ consumption is well assured. tions permit. The Albemarle Paper Company • * "(2) The mail?, reliance to meet is an old company with a brand AN INTEGRATED NATURAL GAS SYSTEM TRANSMITTING NATURAL AND voltages which Mr,'-Phillips as: I Like Best 700 miles, blocks of 3,600.000 kilowatts, transmission "(1) FROM to kilovolts. clusions GAS to MORE . STATES DETROIT — INCLUDING AND THE future load growth will be in new outlook on life steam-electric stations using coal, MILWAUKEE. . from all aspects and and viewed Preferred stock is my its 6% favorite se¬ their primary fuel. curity. At current price of 85, it "(3) Long-distance transmission yields a generous more than 7%. cannot be justified economically The stock is traded in the overlignite to unless the a limited extent, generating station as is the-counter of the market. case, " - • Volume 177 Number 5228 The Commercial and Financial Chronicle ... A New Look aft Development of P.U. Regulation, Utility Regulation President, NatT Ass*n of Railroad and Utilities Commissioners a new not more There Middle than the solution of I economic problems far the invention of duties regulation. ably no to more My in the purpose one. can with cope with principal national industry, in jLiigcue any o. Lougiwin is to It is a trol government and threat to their nomics—has in as a force of the society - ■/. this ' aspects. The interests of distinguished audience, how¬ the new personal conviction that and fresh look at the with the processes government. by Mr. Loughlin before Twenty-First Annual Convention of the Edison Electric Institute, City, N. J., June 1, 1953. r It is the public •devised public con¬ of demo¬ these utility affected is interest. The with control is the independent regu¬ commission which has latory built up a istrative mental for be reforms will have beneficial effect a most the regulated! on utility industry in an overall im4 provement in the caliber of the regulation under which it oper-* estab¬ fundamentally 1869 ates. More valuable than income tax legislation, more important than labor laws, more far-reach¬ duty of supervision and was di¬ rected to report its investigations ing even than changes in National Power policies, would be the de-° to the Legislature and to make velopment of better regulation of recommendations concerning com¬ utilities, properly divided between pliance with charter provisions Federal and State responsibilities, and on safety matters. to the point of strengthening pub¬ Of course, the present day com¬ lic and investor confidence. For, mission with its comprehensive without sound regulation there powers and responsibilities be¬ can be no really healthy regulated gins with enactment of statutes company and without good cor¬ in Wisconsin and New York in porate health, the service to the 1907. The change in emphasis public will suffer. from the punitive almost vindictive and Granger States railroad commissions of 1870's the to A Century of Change . the I have touched on the fact law. whole body of admin¬ But the tedium of history has place only of background in this presentation. Like all background, however, we tive unless it The regulatory agency came into being not as a single compre¬ started a It does much as and institution have experiment an stayed to be an been perfected. would lose perspec¬ But, has that progress kept pace were in the picture. with the jet-like speed with which to explain the pres¬ one revolutionary development ent situation of regulation and its crowded the heels of another as philosophical concept, "growth exemplifies the close iden¬ this nation came out of the dim¬ complete in detail, but by a tity this social phenomenon has ness of the sputtering oil lamp process of empirical growth. with all our American institutions. hensive, into The a regulatory process this in country traces its beginnings from regu¬ early had with terest of all the parties—the pub¬ economic characteristics utility we is business a Atlantic experience what ag was bearing our at people that the know them time typical of the today. dazzle of the fluorescent the The importance, then, of sound tube? In many cases the answer is regulation to the public generally, "No." to the industries it regulates, to At the outset of an evaluation, the- investors, small and institu¬ we are met by two of the most tional, and» the men who guide basic elements in any regulatory them is simply that it has suc¬ Continued on page 40 ceeded in preserving for America * ? •* t . i// • T [Land of Opportunity 7 hi territory by - the covers than stretch Louisi¬ and. Southeastern extends in rice natural lands, farms, ranches, sugar forests, fields, r'vers, bay¬ ous and this a Gulf the ike wealth Fertile resources. plantations, industrial square abundantly rich cotton and gas Texas 28,000 over miles of land m The mile 350 South-Central across ana oil the heart of Gulf great more here, transmission Gulf States Utilities system of Company, pictured the in land of of Mexico untold agricultural and opportunity. TRANSMISSION Gulf States SYSTEM OF GULF STATES UTILITIES COMPANY This, the fastest growing area in the United supplies electric service to 292 States, thriving cities and towns and the rich rural offers unlimited opportunities for Invitation to Industry * \• -i'*1 • business and along the Gulf Coast between Houston, industry. Here is an ideal year- ■ - Letters of area and New Orleans, Louisiana. around climate, The portation Charles in Louisiana and Beaumont, facilities, with;, world outlets, Orange, water large transportation . ; Arthur,Navasota, Gourde in Texas are >1 Natural gas is also distributed by the ,: pany in Baton* :* cost those served. com- supplies of oil, .v.\- V electric "power, chaap natural gas for fuel, and the necessary nativO manpower to make just Rouge, and water iSJ served to two cities in The system. starting a new :t'; cr the combination a new * ■ *'■ x" ' . V <<&>**-! are present facilities. industry relocating industry is lookihg for. * UTILITIES V furnish opportunity! GENERAL OFFICES, t we plant, relocating an exist¬ ing plant or expanding Here is - the service Engineers and other trained and sulphur and salt; adequate amounts of low Huntsville : and among or experienced personnel are available to assist in Port: • excellent rail and air trans¬ invited. important cities of Baton Rouge and Lake . inquiry concerning the advantages of this area Texas of; commission, conscious of the growth of the regulatory proc¬ complementary and pervasive ess. Now, what has been the refresponsibilities of ensuring sound suit of this century of change? and efficient utility service at rea¬ Has it been progress? Yes, in an sonable rates, was a more gradual abundant measure, the technique and less clearly marked process. and tools of performing what its .f n served is modern of the address process of system of One long overdue. Furthermore, it is in the best in¬ latory our evolution lic, the industry, and the investor. ever, are sufficently broad and its *An It is my come manner a economic industry-which the the crying need to improve and breadth, the scope and his¬ strengthen this unique institution. tory of the regulatory movement My remarks will highlight some are so great that to deal successof its most striking characteris¬ fully and clearly with it in this tics, always with the purpose that limited time demands that I con¬ through an increased awareness fine myself to only the most we can improve upon the system. salient in intricate industries The - character measure a devispd and cratic and most cherished institutions. that commission to Although unlike and weaker than the internal prob¬ significance in American and eco¬ our life was slow over¬ whelming influence which utility regulation—as an instrument of in commission Massachusetts commission, it was nevertheless charged with the fundamentally consistent with the govern¬ the privately-owned utility transportations system. not without significance that only in America, where regulation has the first permanent purpose, lished. not" essential. This form of social myself clear and simple dramatize free and a railroad social control of them has become the executive dedicated complex to assume such ment and in the investment field. that an enlightened free people its have shalt lems, have from time to time making these thoughts known the public, and to responsible men demonstration , I to .conclusive _ of office, machinery J There is prob. Commissioners "thou the and with manifold today, and ever since honored by the National ties beyond cupations, in my thoughts which I leave Association of Railroad and Utili¬ through of and can probably be considered indigenous to the English speak¬ ing world. During the course of the development of our economic society, various industries and oc¬ the lines. over a and move¬ as permanent a that stage. Regulation today has posi¬ tive powers of initiation as well cus¬ you being utilities of the with of " the between have long turned mind public our be read and up original oppression, regulation has matured and its powers have gone probably no more familiarity with the subject suf¬ striking demonstration of the suc¬ ficiently intimate that these nec¬ cess of the American system of essary omissions, I am sure, will the social early granted economic to institution the is government the have followed the develop¬ ment back to my own state. As the From Ages. reaction regulatory climate—not too stringent nor too genimportant factor in utility management. Holds better, regulation is the key to progress and calls for mutu¬ ally cooperative attitude by companies, Commissions, and tomers to cement a stronger utility structure. of ment the excesses of capitalistic liberal¬ and fresh look at the regulatory processes for long overdue, Mr. Lough!in reviews development of public utility regulation, and concludes good regulation or a -is the course, was Students 15 1832, Connecticut had developed to the highest refine-, special railroad charter ment, of all the countries in the ism developing out of the funda¬ and created a special commission < world, is the rail transportation to ensure compliance with its system still in private hands. My mental change in political and 1849, Connecticut set personal belief is that the govern-1 economic philosophy following the terms. In * utilities is erous- business, of railroad. organized independent regulatory agencies was the result of the re¬ actions of independent people to Chairman, Connecticut Public Utilities Commission favorable That This thing called regulation by / By EUGENE S. LOUGHLIN* Asserting (2523) COMPANY BEAUMONT, TEXAS,1 BATON ROUGE, LA. 16 (2524) The Commercial and Financial Chronicle... Thursday) Continued from organized labor needs to protect workers' rights and enforce legitimate demands of their 3 page summarily the More I hope unions. Picketing on responsible citizen, let against Picketing is of form of freedom a communication we pay for this be the price freedom other freedoms in that and a interests someone's for as democracy is may adversely affected. Moreover, the picketing itself is designed to protect a vital interest of the by way of shelters against union activity. In this setting the Cleveland 1, Ohio Relative to the subject eting, I believe that who in picketing these low fraud. on wage that he has a The nated by real interest in or activity. their Moreover, of its picketing which the announcement purpose the private economic has ophies. Indeed the state fact that a so-called third party employer is profiting b,y the sub-standard labor conditions of another employer is also a socially defensible activity. I use the "so-called term third Congressman South from While I Carolina labor I believe that in plant be no should case picketed think I his the written the law. the c i d e n suggest White of t d in- any one of o of m forces cure in low unrestricted Taft-Hartley more wage law license to stringent se¬ comes via the privilege. enact It even prohibitions these should cir¬ a to abuse an than a worst. People who are paid to is me all that the the right weapon that either or to Taft-Hartley picketing il¬ so legal. To cowardice should be issue has to There's the Florida of "Super Colossal* vacations where more people have fun-in-the-sun...all year'round...than on any¬ earth. the spirit ...for Business while of here There's anofher Florida...a forward- looking, aggressive state with a sound and expanding economy...based on you... air...on serve fast-growing markets. when you come for for a lifetime a continually believe move that in this throw not strike? on So all desire, the that in most unionized plants this prevails. involved tiations, rights are when, in contract nego¬ the Union and Manage¬ are rates. as a this—as should, at the can few A cents apart controversy well and as all must in such others— be settled bargaining table by honest, fair-minded representing men both sides. LIGHT COMPANY represented by a few unreason¬ able men—as has Labor. a few years it would, are settled Were I a I believe, me feel degraded and small seen stomping around in all man make to be with a sign on Furthermore, the vio¬ lence which frequently attends picket lines does the unions more harm than good. I have had sev¬ of sorts weather my back. eral union tell men me that they, too, feel as I do. C. A. NORRIS President, Gold Mining Co* Calif. Francisco 4, always regarded picket¬ it has been conducted here, as national a disgrace. not do If union continue to care under of right to a test by of a be per¬ mitted to pre¬ vent or e v e n threaten life, liberty and pursuit ago I of C. Norris A. happiness of any American from earning a livelihood by any honest or peaceable means. That may sound a little old fashioned in the light of what has been con¬ doned in this country, either le¬ otherwise, for or the best part of a half century. It has not altered changed or my views, however, in the least, and I have spent the greater part of my own life I employee in one form do not believe that any self- as an another. respecting working the idea of man relishes doing so-called "picket duty" either. Our country ruled labor by a has been too long handful of irresponsible barons; the only Management has at times been & union or I do not think human ment POWER at the conference table. gally prosperity working man must earn a good day's wage for a good day's work, and I think we be not Baker standard human wage ^E^MORETOJ^V T. our In order to retain the vacation...look opportunity... G. if are are business a should which "strike," but they should up a picket line rights, and, if the marching, what about human rights of the people secure pickets union and a matters means is to to essary to the to tween pro Labor and Management it is nec¬ who especially by rapid industrial development as they see fit in their re¬ lationships with such struck insti¬ tutions. After all, the issues be¬ have land not with them¬ employment, they certainly enlightened day and age of gen¬ erally good relationships between livestock growth...on commerce, dou/n... do served conduct selves conditions it should. as can their pay and indus¬ the institutions. thus are notice a work and living amazing agricultural and increasing trade and who such can of ahead I yoti are or Those people in vast business plants ing, promoting the ...for Pleasure... to place an adequate notice in a prominent position before struck as be tries ob¬ no I have bor and Man¬ operating rights and civ¬ I would have jection to strikers being permitted San La¬ partners property Wagner il liberties. no must of¬ those who believe in Richard Alaska Juneau It is my and irri¬ and fends make fairly that the it tates ever agement FLORIDA lieve cer¬ satisfac¬ tion of strik¬ contrary, I be¬ my through physical inability knowledge, moral Act it the To ers. tain extent in¬ enforce the law and do not do seems strike rather I that much Picketing does to the by our very cause business have same line. ume <nv doubt cumstances. firm convic¬ moves certain of plant a in¬ in citizens. a torily settled by a picket So any time dulged helps- under any been where else actions ing that and more most un-American are to areas is one the of picket¬ privilege of inserting an ad¬ putting on picketing via the vertisement in the local paper, fringe on prop¬ cause, injunction are patently designed, in these situations is not erty rights carrying a radio program or mak¬ really once again in the history of our and civil lib¬ a neutral at all. Let us suppose, ing talks to its own employees country, to destroy legitimate selfWm. J. B. Dorn erties. A union for example, a situation in which about its side of the particular ' help weapons of working people. to warrant its an incident. enterprise is selling goods Ironically, these restraints are existence should be strong enough produced under sweat-shop con¬ It is my belief that when pick¬ being enforced precisely in the and have the confidence of ditions. The enterprise is picketed its areas where union organization is eting becomes mob violence, com¬ members to such an extent that by the union whose standards are pletely blocking the entrance to most urgently needed to raise being undermined by the sale of a place of business, when people picketing would not be necessary. these products. The owners of the working standards. are clubbed who try to enter a Picketing to my mind, is an ad¬ I cannot believe that restrictions enterprise are profiting by the ex¬ mission of weakness and lack of on peaceful picketing can be jus¬ place of business, when the pickistence of these substandard con¬ almost unanimous endorsement tified as either good public pol¬ eters throw stones through auto¬ ditions. There is, therefore, in these mobile windows and generally among the workers of a strike. situations a definite unity of in¬ icy or as good law in a constitu¬ terrorize a neighborhood, immedi¬ I would not go so far as to tional democracy. terest between the non-union em¬ ate action should be taken by the outlaw picketing by an act of ployer and the distributor of the regularly constituted peace offi¬ Congress, but I think a law should L. F. LONG non-union product. The latter is cers to completely disband all be passed outlawing picketing ex¬ clearly not neutral. President, pickets. cept where endorsed by more The Cudahy Packing Co., One of the most alarming ten¬ Proper presentation of the facts than two-thirds of the workers in¬ Omaha 7, Nebraska dencies, in my view, in the labor is one thing. Violence and coer¬ volved. relations field is the substantial I, personally, do not feel that cion are something else entirely. degree to which the Taft-Hartley the right to picket is essential in We have seen Communist-domi¬ law and, even G. T. BAKER more, state legis¬ making the strike weapon avail¬ nated picket lines become unruly, latures and courts are eroding the able to Labor effective. On the s t o n e-throwing, automobile-up¬ President, National Airlines, Inc., right of peaceful picketing. Per¬ other hand, I believe that picket¬ Miami 42, Florida setting, skull-cracking mobs too haps the most significant under¬ ing is definitely an infringement often in this country. We have too I believe I understand the current in the present attempt to on property rights and civil lib¬ many instances of officers of the thinking of both those who favor revise the Taft-Hartley law has erties because it is so frequently law, both city and county, turning and those who oppose been the efforts of amending pro-sweat-shop used in such a manner that it be¬ their backs on mob violence at its the party" be¬ in context, the tnird party picketing of Union and where. Equal¬ ly, practice also, they deal else¬ establishments the into I, an as American I have always felt that doubt the wis- or particular M. nevertheless be facts C. not in any sense a am expert, this should friends injunc¬ restraints which these state courts S. public tion in labor disputes is being re¬ vived as the chief weapon against peaceful picketing and this judgemade law is making a shambles out of the right of picketing. The President, The Chicago Corp., Chicago 3, 111. U. a hair- tell WAGNER RICHARD bank a a to complex controversies The most between Labor and Management, HON. WE J. BRYAN DORN neighbors, his philos¬ changed, I hope. ened out forthwith. during a dressing establishment strike without a majority vote of has the right the Union membership involved. decent have few; but I that in cluded when they are really partners, can enforcing the law at the exist¬ be solved by approaching the ing salaries of people who are situation absolutely honestly by occupying the jobs but who are determining "what's right" in¬ not qualified to hold them. This stead of "who's right." evil situation should be straight¬ any , as men of integrity and cour¬ in this country who are per¬ fectly willing to take on the job manu¬ a store, from union Implementing the legislative anti-picketing drive is the in¬ creasingly promiscuous issuance of wages and working conditions. restraining peaceful These interests deserve, I suggest, injunctions a high priority on any scale of picketing by state and local courts. these courts are social and moral values in a de¬ The judges in making law on picketing based on mocracy. workers—their able bodied against facturer, drive to insulate areas have of discrimi¬ been property issue is versus transparent a of pick¬ any employee legitimate labor dispute a ers issue focuses We thousands of President, Republic Steel Corp., feels dismissed. and age C. M. WHITE peaceful picketing than me set down what I consider to are contained in the Taft-Hartley be controlling social and moral law itself. The end object of these principles aftecting the right of efforts is clear. It is to provide inducements to low wage employ¬ picketing. • as a thousands June 11, 1953 a war economy is thing that has prevented complete collapse of our economic structure. Up until could be in¬ Continued on page 43 . Commercial and FinancialThe Chronicle Number 5228... Volume 177 pointed out, could Interesting Tax Rulings Attorney and Counselor at Law, New York City (2) restraining collection of taxes; returns; (3) property in joint names for estate tax purposes; (4) using a trust for $3,000 annual gift evasions; (5) disallowance of tax deduction for excessive compensation; (6) loss carrybacks in relation to prior year frauds and deficiencies; (7) educational of practicing professional men, and (8) travel ex¬ between home and business. Calls attention to tax changes now under consideration. expenses penses if amended retroactive returns effect even government seeks to lien, seize or tirety sell, cedent's estate will be taxable to the the are cases most which such Restraining the Collection of facts be to Taxes time made sufficient. The unfortunate thing, when recurrent he is re¬ veals that: d and non expenses 1,600 Revenue cases. tax in Of volved have 252 tertainment and 320 medical R. (c) Partnership issue return. (e) Wolder original due date of the in¬ gether, Courts my an return, and the amended consideration. In cases. Depreciation issue, cases. in •Material prepared by Mr. Wolder for pa address before the Westchester Bar Tax Section, New York, June 8, 1953. White Plains, timely; the the in that says of purpose assessment re¬ col¬ or any where or the deficiency as¬ a jeopardy kept in mind, however, that the Judiciary will under certain extraordinary and exceptional circumstances in¬ voke injunctive relief, notwith¬ standing the statutory restrictions. Each case depends on its own facts. Injunctive relief will not be granted on the general princi¬ ples of equity. The taxpayer other assessment. It but the Commissioner of the accept it. As one who It a than should be tax. A third to the Court title is supposed to owe party who the claims property which asset be the asset to the is, then the decedent's accomplished be may said a as there is Using general This can the problem. no a by Trust for the $3,000 Annual Gift Exclusions proposition that too many people still are under the impression that Gift tax laws provide that each right to make gifts be administered as part of their in the aggregate totalling $30,000 estate upon their death, that it free of tax. When the person's does not have to be included in spouse joins in the gift tax return if their property does not have to person their estate for Federal estate tax the amount becomes Such purposes. rect. To a view is not has a $60,000, free of tax, regardless of whose prop¬ erty is transferred. In addition to this, each person can make an¬ nual gifts not exceeding $3,000 cor¬ accomplish this incorrect understanding, they will, for ex¬ ample, put property in joint each to any number of people, names, with right of survivorship. Thus, a husband will take prop¬ free of gift tax so long as no gift erty in the joint names of of his wife This one of definite transfer in estate will be bailed out. Property in Joint Names for Estate Tax Purposes Commissioner pre¬ maturely makes sessment amended return Internal Revenue may in his dis¬ cretion interest other party in whose joint name provision about not re¬ and himself, or a person will cre¬ on Feb. 18. I would say the straining the collection of taxes ate a bank account in joint names 500 amended return is timely filed. If has been held by the Courts as with some one else, or create a it is filed after March 15, it is not applying only to the taxpayer, the so-called "Totten Trust" bank ac¬ an decedent's creating a tenancy in common instead of a erty from the government, but joint tenancy or a tenancy of the only the amount the government entirety. Of course, this is a prob¬ realized on the sale. There is no lem which everyone must deal in his own private way; and so long condition that the government as there is compliance with the must sell for full value. requirements of the gift tax laws, return given other "must make out a case of gross words, a calendar year taxpayer, raised who has until March 15 to file a and indisputable oppression with¬ final return, files one on Jan. 30, out adequate remedy at law." was was cases, Association, The consistently (d) Capital gain and loss issue and then files In 600 any then both returns will be read to¬ (b) Dependency credits volved in 1,050 cases. 1,000 there amended return is filed before the Victor expenses. in is taxpayer's return. It would be opinion, however, Jthat it e n- expenses Nor any¬ income held that the first return of the taxpayer is the travel expenses, says amended specifically for shall be main¬ Court." There are a few statutory exceptions, such as the posting of a surety bond, tained taxpayer has to file a amended an involved an return. right which these, 450 in¬ which Code thing about business - suit lection of any tax Amended There is nothing in the Internal for business Code enue "no Returns e- ductions officer employee, stockholder. a No Right to File dis¬ allowed active as straining (a) The Com¬ missioner an well as a interest an a come closely held corporation of which months of in the property at the time of his death. Thus, if the decedent had Another type of case which is taxpayer is sold out by reason of Constantly cases come before a tax which is eventually proved before very frequent, is the right of a the Court in which the collection to be non-existent or the United States Tax Court? A taxpayer to deduct as a bad debt unenforcible, of taxes is sought to be restrained is that the study of 9,000 petitions filed in a loss resulting on a loan to a taxpayer cannot re¬ by injunction. The Internal Rev¬ cover the full value of the prop¬ the last 15 What type of created, then the de¬ was extent paid the entire consideration for the asset, then its value will be taxed 100% in his estate and, if he turn. tions or is invalid is not sufficient paid only part of the purchase If the purpose of the amended grounds, standing alone, for grant¬ price, then his estate will be taxed return is to reduce the tax as¬ ing a restraining order. But only on his proportionate share. sessed on the original return or where the imposition of tax would Now one of the ways to get around to exercise a revocable right of have destroyed the taxpayer's this is to do something about it while the decedent is alive. And, election, make sure to file a business, ruined it financially and timely claim for refund. The re¬ inflicted a loss for which there if it can be shown by deeds or fund claim is the proper pro¬ would be no adequate remedy in other appropriate instruments, cedure, not the amended return. law, the Supreme Court has held that the decedent during his life¬ Mr. Wolder discusses various aspects of Federal taxation that have come before the courts, among which are: (1) filing amended be can obtain a restraining or¬ though not timely filed, a false der. Likewise, relief has been original return could be corrected given in case where third parties years later by an amended re¬ claimed priority of lien over the turn. Or, an irrevocable election government. made in an original return would The mere fact that a tax is be modified by the amended re¬ barred by the Statute of Limita¬ By VICTOR R. WOLDER* 17 (2525) count. his a tenancy by the other words, man grandchildren each year, Or total of $27,000 each a a gifts of $3,000 each to wife, his three children and five stood that, if property is in joint or In could make It should be clearly under¬ names so-called "future interest" is a made. Continued en¬ free of year on page VEPCO, A PUBLIC UTILITY Vepco stock is widely held by the Public — in fact, it is held in every State Men hold slightly more Common stock than women, but the women hold almost twice as much Preferred stock of Vepco as do men. A in the Union. breakdown of Vepco stock ••' holdings shows the following distribution: " Common Preferred Stock • Stock 1,038,822 41,767 Women 922,011 74,617 Joint Accounts 157,295 3,797 464,892 41,871 Men Trust Accounts 1,421,538 Institutions Total Shares There are 201,915 5,441,034 and Others 125,504 1,436,476 Nominees 489,471 about 22,000 holders of Vepco's Common of its Preferred stock. stock and 7,800 holders Nearly 10,000 of these reside within the area served by the company, which includes most of the State of West Virginia and of North Carolina. These Virginia and parts of stockholders, through voluntary investment, have helped make possible the large annual construction programs of Vepco, particularly during the past seven years, during which time the company has more than doubled its generating capacity, which how totals over 1,000,000 kilowatts. And, approximately $40,000,000 more is being spent this year by Vepco for more power station capacity at its Portsmouth and Possum Point stations and pn its new hydro development on the Roanoke River, where the Free Enterprise system recently won such a notable decision from the United States Supreme Court. UPPER FIGURES These No. of Shareholders in them, the LOWER FIGURES Total Shares new if they projects offer further opportunities to the Public to see fit. Those who do not see fit will not be taxed to projects possible. PS. — A copy of our Annual Report will be gladly mailed upon request. V : VIRGINIA ELECTRIC AND invest make POWER • ■ ■ ' j '<?;■£ >*i *■ COMPANY 38 8 The Commercial and Financial Chronicle (2526) that indicates to me that a Lending Municipal Bonds Uiban Mortgage And The ;v lenders and This expanding tax-base of urban areas. Looks for downward readjustment in building within the next year, and values and in of the housing starts. new again be exceeded this year. This year may, in fact, be the second biggest building year since the given to the In in interest re reas, so have many problems and opportu¬ we nities in sav- and loan ings • com¬ Our mon. i nstitutions have enjoyed remarkable a growth in re- cent years, will community from vary to community. Today I would like to go over of the ground some which serves place be¬ yourselves and the savings for reasonably high a points of mutual interest be¬ the tween finances handle who men of the the of government who men and Morton ome than financing groups of 1930s.' By of new Realty Values first was This point important of ence at the of new other munity. It is true, to be sure, that lenders we the have this interest for varying combined. within You reasons. as A second com¬ to postwar peak in 1948. have a profound influ¬ is the of to affect volume interest is closely related this it basis, expect that is reasonable downward read¬ a want men to the estate estate major institutions have, in short, in our is, of sources municipalities communities. of revenues which you of tax an revenues, analysis—the institutions prin¬ Real among course, to be assured of the to the integrity of our cipally rests. Now, what men for pects *An address by Mr. Bodfish before the nnual Convention of the Municipal Fice Officers Association, Miami, Fla., stability in the pros¬ real they say is quite are nothing optimistic. the horizon on to Local Municipalities This the future are estate market? In general, I would There June 1, 1953. Means poses, your will mean, for your that from 1954 or pur¬ 1955 on, at substantially slower rate than they are today. It means, too, that instead of an a fair a block home that statement have to helped building in the central city and aided the rise and growth of suburban communities. Problem Still in of Curbing Blight another problem is share we resisting maintaining and among that of adequate common standards of housing residential properties. and loan executives are our Savings sanitation local of I need not dwell dropped plight of the days of the The had bottom the of out the on real estate during Depression. government. market, the mortgage structure had been vir¬ safeguards for health, safety and *■ e * not adopted and en- are the ihen iorceu, t in e neighborhood is after threatened. yourselves, this is cents real of value neighborhood problem, For dollars-and- a since tax your tually frozen, real estate transact revenues are tions once a house, or a group of houses, begins to deteriorate badly. From my own experience in Chicago, I and volume the to or and home rapidly. unable meet to they fell due, as their local real pay The taxes. of declined > result estate confusion was turmoil, and widespread fore¬ funds job vigorous chance of this happening than based problem was due use of to the mortgage, of the the early almost straight, short-term the principal of which fell due every four have five or I years. good a enforcing mini¬ offset by higher reve¬ increased valuation. on would 1930s did universal of additional doing Financing for Local Government again. Much of the terrible mort¬ gage if on standards, the cost would be mum Frankiy, I do not believe there a that spent were nues is promptly endangered convinced am more closures. be remiss, indeed, if I emphasize that we have not common is in seeing that there financing for our local cause ample governments. that I of many frank am in us the to say savings the long-term and loan business look forward to amortized loan (pioneered before the time when our institutions the crash by some savings and may be of greater assistance to loan associations) which provides municipalities in meeting their for an orderly month-by-month problems of financing. Our insti¬ tutions are; after all, local institu¬ liquidation of the outstanding we tions and our funds belong to the people in the community. It is logical, therefore, to anticipate the time when of these funds more be invested in local govern¬ ment for the improvement of the may community. In almost three-quarters of ties for their borrowers. This plan states, savings associations charters has provided a new source of pro-1 state already are mitted to invest in tection for the borrower, lender and the local residential tax rolls will be expanding and functioning justment in new building will set orderly receipt in probably next year, and will based on real continue ecome a far more significant part through the remainder of mortgage. We have, I think, also estate valuations, upon which you this decade. Instead of the current licked the the financial structure of many inability of cities to can project the fiscal operating annual immunities than ever production level of 1,000,- collect real' estate befo^p. In plahs of your local taxes, which igovernment. 000 houses or a very specific way—by virtbfc of better, we will, see contributed 'so much to the chaos We in the savinfs and loan field, a he fact that about 80% of our varying range of'building of of the 1930s. Today, more than meanwhile, view this stability as from assets are invested in home mort¬ 750,000 to 950,000 annually 85% of "our institutions collect the surest means of safeguarding through the last half of the 1950s. these taxes each month and then gages—we have a great and abid¬ our real estate investments, upon ing interest in the future of real pay them to the local municipali¬ which—in the final What This Our delays revising acutely conscious that if effective Today home building. On slightly than half what more is difficulties minimum great point of mutual in first, and that is the provision of a regular flow of funds for the a housing demand, and on certain estate mainly new family formation will be will mutual interest is the stabilization real of the late 1950s, the rate probably not more any mortgage The are rate result of the low birth rate of the com¬ a tend housing demand is the declining formation, family run it respon¬ sible for ,wo within reduce current a savings and home done Stable cities, they today Bodfish to will which factor it blight Government for Local Funds officers. cities many serious encountered obstacles these influence the housing industry is con¬ siderable—to say the least. reasons, modernizing their building codes, upon tant housing shortage. a radically by whose Government, Another longer have by devices of the Federal war or a various and it looks in sight. It could, factors currently try. There are a number of impor¬ practical purposes, that there no billion. as of course, be changed were new roughly today, and based on the economic Families ' your 7,600,000 picture their mortgages in savings than more houses and the is financing munity. the built have do imply be and $81/2 $7% is all the institutions which have charge of to This and loan associations of the coun¬ tween of much of the tion not, however, that the present unusually high rate of building will continue indefinitely. We I years. mean between will 1960 had ing rising propor¬ the next and building meeting common a community, and the ever- few and 1955 finance municipal For apartments since World War II and that means, for as they are hold¬ an rates judgment, the prospects my good are busi- represent, although its importance loan and savings the great bulk of our assets in institutions located in urban with billion for new residential build¬ ing such as we will have this year, impetus GI and FIIA loans. on occurred in the 1930s. the construction by the new increases recent of because war level of home building in In and past four years, will predicts Federal Savings and Loan Associations, therefore, will, when given authority by Congress, invest funds in mu¬ nicipal bonds, thus providing for them an additional chan¬ nel of investment. Stresses need of good local governments, and foresees no likelihood of collapse in real estate values tess, for eclipsed been has mark each municipal finance officers in supporting real estate as 931,000 were attention to mutual interests of mortgage such expenditure of nearly $10 annual of unprecedented been proportions. Prior to the present boom, the biggest building year in our history was 1925, when there United States Savings and Loan League Bodfish calls building home postwar has boom ' Mr. Building Boom Continues Home Chairman, Board of Directors "■ slump is anywhere in estate the offing. BODFISII* By MORTON serious the overall amount spent between real .Thursday, June 11, 1953 .. The Future municipality. the of Another important point of mu¬ tual interest and the between concern finance officers of a However, tions commu¬ with — about Community 55% total of assets of per¬ municipal is¬ Federal associa¬ the sues. our with the comprising business-wide approximately $24 billion far have not been allowed to —so participate in these investments. The United States Savings and institutions Loan League currently is seeking may be generally referred to as this authority, and we are hopeful "the future of the community." that it will be granted at an early Under this - heading, we share date. I believe it can be predicted many objectives. One of the most that savings associations will play fundamental is the desire for ad¬ a more nity and its savings - THE DELAWARE RIVER VALLEY prominent role in financ¬ equate financing so that there Industrial History is being made in the Delaware River Valley where much of the nation's Trenton, New Jersey, ufacturing plants and to history to move over here and are many immeasurably to than 8,000 area. business man¬ Others to our an ever has progress of a strong and it maae self-sufficient are tive share of far so also better, the more effective more^ building possible for as virtually residential recent basic modern and speak from experience Delaware River Valley will of and planning, zoning. decades Vice-Chairman objec¬ (and area is available for to Public / an unfortunate of from in the city the over, city plan¬ engineers to the the physical problems of their communities, many of the plan¬ ners today are more concerned social issues such as racial relations, public housing, the in¬ comes like. ELECTRIC COMPANY With savings your ible funds, anxious to prudently1 and commend and see 'you these safely in¬ this/comment, attention your loan to institutions community if they depositories. are I the in elig¬ as Common ment the change of. public are Goal—The of Good Achieve¬ Government The other great point of mutual interest good I can, stated. It is think, the be simply achievement government. Such of achieve¬ ment is, of course, the principal objective of your efforts. In our savings and loan field, we recog¬ sociologists. Instead of sticking to nize that upon good government, with ATLANTIC CITY. funds Chicago Plan Commission) there has been ning bookings. Write gentlemen 1 -A planning. The change is what might be called a Relations Department. custodians former as a shift in dominance A color film of the municipal ; vested. city standards During increasing industrial healthy nation. of live and financing is concerned. character Jersey and the we many communities to be We the continued growth of southern New in the progress operations Probably this is as good a point as any to point out that municipal that governments can help to finance the growth of the savings and loan -vavihgs and loan associations. As Many of the "name" located in this government in the years ahead. the work. I think it is safe to say of those already in the "Valley" Geared the productive capacity of contribute are more new ing new building, new communities in which written, dn the "Valley" from 5,000,000 residents. have expanded their facilities. tempo, was Lewes, Delaware, corporations of the United States planning constantly be development, may of The planning ment various result groups, is and that the actual of injnrgp our part ..real—estate the integrity investments, and, in turn, the savings intrusted to us by~~tne. peopleTof the munity. It objective" work of is this which the com¬ very practical motivates the Civic Federation of for has physical improve¬ Chicago—which I am privileged lagged^ badly in many to head—and many similar organ¬ cities. The rests izations interested in government constant improvement of efficiency and progress, and rep¬ building practices and standards resenting the point of view of the is another objective we in the taxpayer. savings and loan business share I have, of course, long believed Volume 177 Number 5228 The Commercial and Financial Chronicle ... (2527) that alert an interested and citi¬ too, it est at may and for those as public reward a jobs and their work. Admittedly, arousing public interest in local govern¬ ment is easy assignment. Dur¬ ing the last two decades, first be¬ cause of the Depression and later at of World aftermath, the War II and attention its of the American people has been largely turned to Washington.* The trend toward ever-greater centralization be blamed principally on a tue in Financial of Phila¬ to to analyst who heads M. A. sure Analysts ; the enable the . 'loaned and York in New York the that tndc banks subsequent Because the of up'; position at the banks, Co., Inc., New City, of success issues. especially tight situation City, it is apparent without this assistance from continuous period of national cris¬ tne Federal ther m-onetary is; Reserve's would be unable readily to absorb however, have intensified some honesty would by the surrender of responsibilities by the states and cities. j all admit this trend has been us tion In the during recent days supplying credit ' ac¬ preparing for this speech, I happened to run across some sta¬ purchases est you am much as will inter¬ sure they did as me. o limits ities of the situation more strates Today, that ratio has been almost exactly reversed, and the national government has expenditures ning in excess run¬ of three times those of the states and Trmnicipalit.ips. It is possible that we are now about to this trend, and I all those who reverse confident am that believe in strong, effective 1 local self-government will salute such a reversal. Within few months, a President Eisenhower will appoint a special Commission which will look into the various programs in which Federal aid is extended to states and municipalities. I am hopeful that out of this Commis¬ sion's findings will come ber of recommendations will der vast, retijrnsome appropriate functions andacttvitiesi>>>solely to men are, that the and local as the the effectively men in that you are public and treme a would position, and policies "It is demon¬ continue now able to funds just efficiently Federal banks as as to "But bor¬ pegged told represent market, financial an Mr. cline which is ex¬ undesirable as as Government are. sential ' credit accommodations. of the Federal Re¬ "In cently view policy, the question again arises as to whether it might not be timely to lower reserve re¬ quirements in New York and Chi¬ cago. Officials Co. deposits in a declin¬ ing trend, there is general agree¬ require¬ dis¬ Charles O. management Larson. Mr. He said a to so-called "free" but ever-tighter market invest their porarily idle bills, quences omy. the desire of business to intolerable, inviting conse¬ unsettling for the econ¬ .; • '* " money well as large . funds by to in national in ■' of William M. Hess. His the securities business next Au¬ gust. of Cleveland Analysts to ; Hold Fall Conference CLEVELAND, Ohio—The Cleve-' Society of Security Analysts land will hold a "Great Lakes Confer¬ ence" Oct. 13th and 14th. The pro¬ gram will management as a include forums conferences as luncheon and and well dinner Oct. 13th, and field trips Oct. 14th. and drawn othe^ in down to be ti areas. McKnight Building. are *' * •"' ministration to balance the budget this year. And, because of, the financing operations in the months state of the market, the Treasury is now precluded • from further long-term financing. Hence the ahead. necessity for the Treasury to do financing at the banks. is reaching It appears, must in the spent in j situation, of course, is the dis¬ appointing inability of the Ad¬ firm. New concerns "Nevertheless, these New York banks face not only further sea¬ sonal demands from business, but factor name tem¬ soon important included father, the firm's Chairman, will complete 51 years of activity in Larson York < Treasury fact that the borrowed sums, York as concerns otherwise Continuing, Mr. Schapiro told the Philadelphia analysts -that* most New present P. In New Location corresponding period of the American Stock Exchanges, have previous year, the reduction was MINNEAPOLIS, Minn.—Keenan announced that John de Braganca only $473,000,000, or 1.90%. & Clarey, Inc. have moved their has become associated with \ the "The decline may be attributed offices to new and larger quarters being forced to compete for funds at the banks in the Woodcock, Hess & Vice-President, and William Hess, a director. The Stock Exchange membership is held in formerly with Ames, Emerich of of were M. the the restricted tive >Shearson, Hammill Branch under had Hess, Chairman, of the Board; Harold P. Woodcock, Pres¬ ident; William Z. McLear, Execu¬ becoming 'more criminatory." Street change the Con¬ In the as Schapiro analysts. who Arleigh ment among New York City banks that the existing reserve are to which membership to partnership firms! only. With ments voted stitution serve's than seasonal.'* members more Exchange, weL Woodcock, Hess tion ever to gain admittance to membership in the 161-year his¬ tory of the New York Stock Ex¬ change. Exchange members re¬ was the Stock & Co., Inc. on June 8. The Phila¬ delphia firm is the first corpora¬ Treasury otherwise still higher interest rate on each successive issue of¬ fered. In addition, business will be enabled to obtain its own es¬ LA private '•) everywhere. rowers York corned officials of vital a Corp. Funston, President of the an well ap¬ that the prospect of the Treasury con¬ in the state government administer am sure men these "The I New ; "One effect of this flexible pol¬ icy will be to spare the operate CROSSE, Wis. —Shearson, bearing on interest Hammill & Co. have opened a key factor to the Treas¬ branch office at 125 North Fourth the vinced, jusTas-f-afh which have flexible. Reserve num¬ ment and NYSE Member Keith fact is1 that the high parent," he said, 'that the TreaS-' & Co., Inc. His association with level of loans of the New York ury must do a major portion of its City banks has persisted against Shearson, Hammill & Co. was pre¬ financing at the commercial a viously reported in the "Chron¬ declining deposit trend, reduc¬ banks. icle" of May 21. And, clearly, the Treas¬ ing their liquidity and intensi¬ ury's requirements must have top fying the pressure on their re¬ priority in the best interests of serve With Winslow, Douglas position. Since Dec. 30, 1952, the economy." total deposits have declined $1,A "hands off" Winslow, Douglas & McEvoy, policy in a free 835,000,000, or 7.25% of the $25,market on the part of the Federal 300,000,000 year end total, a de¬ 120 Broadway, New York City, which help dismantle the sprawling Federal Govern¬ states and cohTTmrnttTCB. its Woodcock, Hess Go. half of this year, a period critical because of the un¬ ury, Schapiro was a to serve that make banking rates—a Morris A. state and local be nearly 25% of the bank capital. Because New York's importance as a lending center, the conditions un¬ Treasury bills, recog¬ to to the of nizes the real¬ those of the Federal Government. hold country's f They showed that prior to the Depression, the expenditures • of governments were than three times as great as 1 issues. new Clearing House Banks "in New York City, with high lending banking sys¬ tem through tistics which I Treasury's banks "The the to authorities, for icit. participate in, and thereby in¬ Treasury & commercial continue expectedly large government def¬ ■ delphia, Morris A. Schapiro, bank declared made "The monetary authorities are already employing their resources Philadelphia • on meeting of luncheon a Schapiro second major portion of its financing via commercial banks. Speaking June 4 no because may must do their to will available system's requirements during tne Schapiro, New York bank analyst, says action of Federal Reserve in supplying credit to banking system through purchases of Treasury bills makes it apparent that Treasury civil servants who career dedicated are the of also serves funds Morris A. be said that the inter¬ enthusiasm large Federal Praises Flexible Policy of Federal Reserve holds the key to better mu¬ nicipal government. In one sense, zenry IS charting a bright future... participate in the Treasury's NIT HIKINGS CAPITALIZATION GENERAL III MILLIONS TELEPHONE SYSTEM TRENDS, 1947-1952 IN MIUI0NS OF , Of DOUAK "Under these cumstances, compelling cir¬ the Federal Reserve for 'middle ground.' therefore, that CAPITALIZATION AND NET EARNINGS the 001 LAIS 20 400 CAPITALIZATION 15 300 Scale at Left 10 200 Where IN THE MIDST MORE than 65% our Industry Grows of the OF revenue from 385,000 electric and 91,000 gas cus¬ tomers is from residential and cial customers, which include the 48,500 electrified farms have commer¬ we serve. These farms helped to make New York of the country's top ranking states in the value of its dairy and poultry products. In the midst of this progressive agri¬ culture many of the famous names of industry have grown to prominence and others are continually being added. one MODERN NET EARNINGS 100 Scale FARMING the beautiful py the the countryside, promote hap¬ living conditions and contribute to good employe relations for which region is noted. The wide variety of products has developed skills for new manufactured a versatility of industry to draw from. Proximity to the largest eastern maiv Our business is sound human voice But power are further serve, the 17,000 square miles we covering about 35% of the state's -will find no congested locali¬ metropolitan communities. An estimated 70 % of the people live out¬ area, you ties—no We will be glad to send our couragement to industrial growth. own electric and natural gas will amount to ten over . carrying the sound of the the chart above shows, the General We 62 Henry Street doubled. plan management and to keep on growing. By continuing to give shareholders the benefits of sound financing, more sound and opportunity for profit. By giving more subscribers constantly improving service. $200,000,000 for the post-war years ending in 1955. Annual Report for 1952 on request. GENERAL TELEPHONE One of the Great NEW YORK STATE Telephone American communities in 19 states. Our facilities, . Today, with 1,600,000 telephones we serve over 3000 en¬ expansion program, largely to in¬ crease . the telephone. System is sound in other respects as well. In five years our kets, excellent transportation, and ample electric as over capitalization and net earnings have more than our all Right side cities. All of which, combined with ... In at ELECTRIC & GAS Binghamton, New York Serving America SYSTEM Telephone Systems 20 The Commercial and Financial Chronicle.. (2528) party a Now-A Fail Bieak for Easiness is as of Under Our Competitive System Secretary of Commerce Administration will end punitive American The of a part a low note we and low pro¬ living should end. Gives this the is fundamentally strength of America. The motive of tem from fair but which is based on the ability of a private com¬ pany to satisfy need or desire by producing the most goods and assur¬ best cheapest the at goods, price. on to Uniquely American Our economic system is unique¬ role and en¬ properly al¬ management, it may down the This has happened and as the best service which received No the years has group wisely and the at system competitive is the most en¬ pro¬ government by it workers, the on Yet for businessmen Sinclair Weeks operates and misunderstood ment, ♦An the burdened address American New York be can system has been and the public un¬ derstand exactly how that system competitive enterprise industries, which are vital to all industry and to the general other by by by and ent Weeks Steel operation improved. Our economic govern¬ government, Secy. Iron how that from and he life. But system is differ¬ any the off Institute, or one in which government is in the a place no for man of had to remain energy bottom. by his here over or reached Every who man top could be pushed successful more new¬ That system has been developed to fit modern rules He, of the conditions. game the are the But same. Fair, tough competition still is the motive of power fluid our eco¬ nomic system. No American has finally way—that by stinting learned—the you don't is true in want service dustry, diet—in balance sheet of the has slid itor few a years down-hill and with nies that make the least money. Nor do you when on looking farm sells the research and risk capital have constantly originated ideas, new and tools, products. created with methods These have new new entirely new new new of sources profit and rundown-looking roadside worst seized first place. Industrial industries investment jobs. For all practical purposes, every plane—inventions which revolu¬ tionized the manufacturer who on for top management... At your competition can be killed From no years. aggregate a value time of until equal to a has the commis¬ nor initiated ever rates problem... or on a the functions of can concentrate on a specific, immediate whole broad range of operations. It includes engineers, designers, financial consultants, sales and marketing specialists, cost analysts—whatever specialized skills the problem calls for. Ebasco men have dollars worth of designed and constructed over one billion new plants. They have built pipelines; made doing for the past That is what The commission itself said on nation has corporation tract continue can private capital able to market When stock of it must to in yield a system to fair • to unless stock bonds. limits well as is as our Sherman Jan. 20. No other Act, passed Must the Be Kept Strong In regulating utilities and in managing o t h e r things, it is cheaper for the public in the long reasonable return if the private ownership that Administration it is the intent competition., important decisions; helped solve production problems; assisted in developing industrial relations programs. For nearly fifty years, Ebasco has served business and industry in all parts of the world. Competitive enterprise has been loaded down by heavy and badly- believes Congress in its approach to regulation ta allow earnings which will make the system of private ownership work. We know unless and the know you To find out how Ebasco can serve you, send for your free copy of "The Inside Story of Outside Help." Address: Ebasco Ser¬ vices Incorporated, Dept. T, Two Rector Street, New York 6, N. Y. an government competition increasing number has seen its rendering service are financially strong, for¬ ward looking management cannot put in all the cost-saving devices improved equipment that will and service the stant for public. The new expenditure of money and improved equipment is the way to progress, and com¬ panies with neither the to invest small cash earnings nor heavily the INCORPORATED New York Appraisal "V * Budget t Construction • SERVICES Business Studies Financial • Chicago • • ^ Rates i Pricing • Research • - •Traffic • Consulting Engineering • Washington Office ♦ Design Inspection & Expediting Office Modernization Sales & Marketing ' Taxes Washington, D. C. industrial Relations Insurance, Pensions I Safety -t, • • future in If the regulated industries . • Purchasing Systems A Methods tonight to nation, it is my judgment that the regulatory bodies must a 1 lowearnings adequate to attract and support the equity capital they can use effectively for economies, improvement and growth. If their will is be thus able investing established, to obtain public capital. change There in is assure Expensive policies can be discarded for long-range programs which will give the country bet¬ ter to have and those that strong, serve it are of getting good service out the strong. No one out of the weak. of The laws that can get it has lower costs i is essential to the welfare of the country that the regulated utili¬ ties be regulated in such a manner the to enable them to capital that they Western Massachusetts 201 plenty of room and for one attract can use Companies DEVONSHIRE ST., BOSTON, MASS. it's wholly-owned subsidiary WESTERN MASSACHUSETTS ELECTRIC COMPANY where such improvement is indicated is in the field of regu¬ lation. When regulation area departs Serving 120,000 western customers in 55 cities and towns in Massachusetts, with $75 million plant and $20.1 million and emer¬ I say without hesitation that it as Congress and provision for national gencies. rather than half-starved and weak. There service make Administrations. improvement, however, the necessary re¬ you they from any in changed with the are to render their full service to the crats. I'm here im¬ provements. voked by a Federal agency. It has been threatened with punitive ac¬ tion again and again that that spirit have courage by bureau¬ EBASCO con¬ wise of fields. It solemn contracts that companies conceived taxes. It has been faced with ie of years business studies upon which bankers and other executives have based as within the property values, long run be able the of :1 This , 60 ago. It expresses American faith in competition. It is our na¬ tional pledge to insure effective at¬ it is work." anti-trust law such an in 1937: "In the long run no private score government stopped doing im¬ to the return. prove it. That is what govern¬ courage ment has the now 4%, which consider can return, sion railway connivance of the very government which ought to en¬ Ebasco is flexible. It that one fair is by the fingertips, through Ebasco, is the specialized help of engineers, constructors and business consultants. In a single organization Ebasco combines top-flight talent with experience that penetrates virtually every type of business and industry. an or carriers equal, or nearly fair return upon average has been below borrowed Business ways way against the hand-to-mouth run one to progress. well-fed competition, with its opportunities of betterment for everybody. The refuses well-established tide of American There should be no limits to the dynamic force of fair vigorous tap running be, to may credit are the turn of the century. keep help best ing hours. Both earn aggregate property." that the buy better machinery in order to reduce costs, but figures he can do it by cutting wages and lengthen¬ history. It is accurately our working population is engaged in making or selling things unheard of at estimated that half of the assumption produce at the lowest price. That philosophy is about on a par with new person over 50 years of age was alive before the first auto or air¬ we motoring stop at the stand that the com¬ compet¬ a as best motor mousetrap has better a ago the panies, the electric companies, the chain stores, etc., so as to be sure to buy the products of the compa¬ through the country top of with around most the terms clearly to be desired. people, if they under¬ would want it this way. go so we the stand, They don't initiate, modify, establish whole will a annual net income in¬ income—is firm at the service a a divine right summit, only his own abil¬ ity will keep him there. Many a to the milk regulation. If from full a hard make the feed, and on same And comer. government-controlled economy, City, May 28, 1953. stayed ambition at in the world. It is free and private in contrast to a before heap at birth. He knew his place example, the Transportation adjust rates as of these and years private shall the dependent success possible in the as Act of 1920 says: "The commission un¬ railroads, the power and light, the industries and those furnish¬ ing communications employ mil¬ of cost a run. For gas lions low long could more industries. they can render the best possible to the public at service as unfairly treated than service communications are that ago. been and intended to keep those in¬ dustries healthy and vigorous so a , our all cheapest otherwise regulation of the interstate power, gas transmission result, the public has not received price, for the railroads, and progress punished consuming public. then—iron¬ ly American and it stems from the The way the government has original settlers. Lacking even ductive, the most prosperous and ically—blamed by government for the pioneers were been regulating these service in¬ the most humane on earth and in not performing as many miracles necessities, forced to become self-reliant to dustries reminds me of a gentle¬ as it could have, had it been free. history. It has survive. They were so far from man who owned a farm up in my the inherent The change in Administrations the government in London with part of the country some years p o w e r—f a r changed that attitude. From here its class strata, monopolies, and ago. : on out every group beyond Alad¬ in our econ¬ He had a manager who ran the feudal controls that they were din's magic omy is going to get a fair break. farm and gave-him regular re¬ free. lamp —to Already the Eisenhower AdAs a result, personal liberty pro¬ ports on the operation. Now this ) ministration create contin¬ is stabilizing our gressed rapidly, and there de¬ owner figured that; the I way to ually more money. It is removing controls make money on a milk farm was and more na¬ and other roadblocks to free en¬ veloped ah entirely different kind of society—a fluid society. All had to watch expenses tional wealth ^like a hawk. terprise. It is releasing the dy¬ limitless opportunity; to compete This he did arid complained reg¬ namic power of competition. which every¬ for economic rewards. In the Old ularly about expenses and All of us are counting on com¬ one may share. par¬ World the caste system placed a ticularly about the feed Yet for more bill, the petitive enterprise to do a record man at the top or bottom of the largest single item. than 20 job. It is of vital importance that terprise passed the field development of the industries be¬ ing regulated. livelihood attitude toward business. shackled by government, located have hard competition, the traditional croaches of this sys¬ power comes ours its from well slow capitalism. when standard agree¬ markets— of frequently so World Old and Lauding return to free competitive enterprise system under the Eisenhower Administration, Secy. Weeks says our economic system is uniquely American, stemming from the original set¬ tlers, and although conditions have changed, the rules of the game are the same. Points out competition can be killed "by connivance of the very government which ought to en¬ courage it," and alludes to badly conceived taxes and gov¬ ance found There, price cartels, division ductivity, it frequently is the re¬ sult of discouraging competition, while here we have encouraged it, By HON. SINCLAIR WEEKS* ernment inroads into business which to and ments .Thursday, June 11, 1953 gross revenues in 1952. f ' all in Number 5228... The Commercial and Financial Chronicli Volume 177 msdring economies and improving credit service. tries so can serve Capital in Encourage New of the vital service indus¬ the of last few in this country is invested in regulated industry. At a time when this country is depending on free capi¬ talistic enterprise to defeat the most ominous controlled economy of recent Other than the railroads which, they had it, would likely spend $1 to $$ billion additional from in the next five years, I have no times, it does not make estimate of how much the service us to control a fourth industries would add to this $6Y4 of our economy so that it cannot billion a year if regulation gave compete freely for capital. them freedom to compete for And when I discuss the matter money. The others are not like of attracting: capital, I do not the railroads buying their equips refer solely to the service indus¬ ment on a chattel mortgage basis tries! Industry generally, due in and falling short of their daily considerable part to tax laws needs for lack of money. presently in vogue, leans more to On the other hand, the courage borrowed money than to equity and inventiveness that risks great capital —a comparatively recent sums for improvements and econ¬ development hardly to be wel¬ omies in the future does not nat¬ sense; for comed. urally en¬ search, energetic competition, and debts. The margin on war profits by increasing the productivity of is less than on peace profits. The Among other im¬ our superb labor force we must same false logic that imagines a keep it soaring in the years ahead. nation becomes prosperous by war (1) By change in depreciation a The rise of the steel industry thinks a nation becomes pros¬ expansion of agriculture perous by inflation. Both ideas are and mining that resulted from the fallacies. allowances, so that the shorter years of obsolescence rather than and the mately $6,288,000,000. if government longer railroad be the Thus 21 heavy industry to advance rapidly? more these years in¬ industries have made capital ex¬ penditures aggregating approxi¬ money industry all in and should How courage provements: the For One-fourth economically us well. Regulated Industries vested that in the long run they (2529) of wear-out shall years standard of depreciation. will be owners encouraged the expansion did most to wipe out the indebtedness of the Civil War. The rise of the The auto in¬ prise can New on material machinery with industry with all the new indus¬ its higher productivity and lower tries indirectly stemming from costs which more greatly benefit petroleum and motor cars did much to lower the indebtedness of the consuming public. World War I. (2) By so wisely and fairly competitive enter¬ using the regulatory powers of .American to install modern government that the service whole founded that system misery The best thing happen to heavy in¬ and to the families America would be the dawn of just and lasting But is and waste. could dustry war human of a peace. until that bright morning, continue to strengthen economy on which is built the military might that is saving the we do it again. must our advances in electricity, position to plow back earn¬ chemistry, power, atomic energy free world from the horror of and their ramified stimulation, on attack, defeat and doom. ings, attract capital, expand facili¬ The times present the greatest ties and, through eventual vigor¬ old, new, and as yet undreamed, ous economic health, be able to of industries, can save this genera¬ challenge of history to all who dustries and others will be in placed a .give the public better service at tion from unbearable indebted¬ are part of our competitive enter¬ ness and carry it to a standard of lower costs. " prise system. The V new The new Administration is re¬ living far above current record Administration is emerge from men who the credit to raise the steadily giving you more moving road-blocks to business- prosperity. : and We do not need cold war or more freedom. Use that freedom small and large. It is opening wide money nor assurance that they the door of hot war to maintain our economy to give yourselves and opportunity for all yoiir regulation would not either by would be allowed a return on it high level. War destroys children record prosperity and to competitive enterprise to compete. at delay or refusal prevent earnings when their dreams come true. Thereafter business is on its own. property and lives. War piles up keep our country free. sufficient to attract-capital, we If we want this fundamental How successfully business uses might reasonably expect the rail¬ segment of American economy to its new freedom depends largely roads, for example, to greatly in¬ do its full part in the free world, on businessmen themselves. crease their yearly expenditures we shall have to They give it a fair have been accustomed to an era for plant. break. r of easy money, subsidies, pater¬ The other regulated industries I see in the papers from time to are not quite so badly off, but I time suggestions of a great emer¬ nalism, government directives and evidence The there were clear is some that if have not that assurance . should to like to call attention your report of the Committee a on gency public works program to stabilize and particularly in times Corporate Finance of the National Association of Railroad and Utili¬ of ties Public Commissioners—the associa¬ tion of the state regulatory bodies. That report points out that 25 ago we had the greatest governmental prosecution of reg¬ ulated industries ever undertaken years —the holding company investiga¬ tion—and the evil it found to re¬ form that was business the had too much debt and was controlled by too little stock. was to then are advocating what or much condemned—too debt and too little it And equity. "The financial says: dangers of high debt ratios, the importance of good service to the public, and the inevitability of service breakdowns following on the heels of financial breakdowns, have again become matters of se¬ rious ment of a very courageous the committee of commissioners. salutary effect Government ministration to mess see that which is shall we when to and if we service the industries, surely put off the to have have works public emergency day recourse and And this is especially true when its that this Ad¬ Un¬ less we also are willing to drift Into calamity, we must assure the They have been oper¬ allocative era. They entering a selling era with ating in are stiff an competition ahead. ness must If busi¬ is to enjoy a free market, it assume the responsibility for making the free market work. I have this evening discussed competitive industry and I have also discussed the service great status of industries the which generally speaking are not com¬ petitive and because of that fact subject to regulation are by our government. I have attempted to point out insofar as regulation is considering that public works cost concerned that it mustNbe so con¬ taxpayers money and the capital ducted as to allow the/industries attracted to the utilities pays taxes affected to be strong and healthy —and in a position to give the instead of adding to them. We shall always have public best possible service to the public. works and many are necessary Reponsibilities of Competitive and useful, but there is no reason to hamper private enterprise with a resultant limping economy and end up by having to start a public to provide jobs program and energize the economy. Government The need Encouragement for fresh encourage¬ ment of business by government Nearly Industry Insofar competitive industry concerned, competition itself is as should result in the public receiv¬ ing the best products that Ameri¬ ingenuity can devise at the price. I would, however, in can Heavy Industry Requires a facts the inherited. has economy industry late the 25% of our free economy state The condition of the utilities is part of the national generally particularly work to stimu¬ and the Fed¬ on regulation recognizes with equal clarity. a are encourage state regulation. It is also incumbent eral docu¬ should have It on the of we works reconsideration." This is naturally an to, not the main reliance addition point out commissions the now agreeing works other artificial stimulants. The report goes on to that declining business to strengthen economy by providing jobs. our inflation. lowest view of controls, that the abolition recent remind all and sundry management, owners, of and is labor all have a responsibility to public utilities. the general public to Show re¬ The entire field of heavy industry confined not to straint and moderation and to see requires attention. Heavy indus¬ to it to the best of their ability try makes the mare go. Its pros¬ that our economy stays on an even perity stimulates prosperity keel. throughout the entire economic The Administration by striving fabric. for balanced a budget and even¬ tual tax some of the financial burdens. But national reductions will relieve security and public mand for modern services de¬ require modern The SPUR of PR06RESS the budgets. Drastic cuts in $264.5 billion national debt, plus the state, county and munici¬ Texas — — in the Apart from everything which good government can do to reduce government costs, the sure way to ranking well above national debts and taxes relatively smaller Arizona, New Mexico, Colorado and form the spur-section of progress maintain United States, average Union in recent population increase. Southern is for solvency in these states — serving more than 235,000 customers in the great and growing Southwest. a billion dollars of area of New Orleans since World War II. Announced construc¬ tion plans should soon push this figure well past the billion mark. This record growth proves that New Orleans has become a key industrial center of the nation because its invitation to locate here has been New In an invitation industry to opportunity. to industry enjoys Orleans, combination of advantages. Here is a a unique port—sec¬ ond in the nation in dollar volume—that is host annually to nearly 4,000 ships—ships carrying the world's resources to industry's door—ships carry¬ ing industry's products to world markets. Yet, in the immediate finds in vicinity of this great port, industry abundance sources of supply, power, our make sugar cane, the volume of business. country many of the chief re¬ .op natural gas, water sulphur, saltffurs, timber, cotton, . . . f rice. INVESTIGATE NEW ORLEANS ... Every businessman knows from provides natural gas service to 55 towns cities to three quarters of expanded industrial plants have been private business to increase experience and and and built in the immediate metropolitan also pal debt, are not likely soon. Four states new can that double if the his company turnover in particular operation, the resultant ability to handle the firm's indebt¬ edness is made doubly easy. The same principle applies to the Federal Government and as a prospective location for a to our your business. A note Industrial Development Staff, New Orleans Public Service Inc., 317 Baronne St., will place its assistance at your disposal. the economic system. The sure way to burden of govern¬ ment debt is by such an increase decrease SoHthern^pUhion Gas in the production that debt and the cost t{ MfiriNG IVIID fH| V C. H. Zachry, President CIIAI JOUTHWiJT U Home Office: Dallas, Texas the national of running the government grow smaller in pro¬ portion to rise in national income. The gross national product to¬ day is $361 billion, an increase of $21 billion over the same period last year. Through industrial re¬ a, •V SERVING NEW ORLEANS WITH LOW-COST ELECTRICITY, NATURAL CAS AND TRANSIT 2 (2530) The Commercial and Financial Chronicle originally planned a few and because of the preparation could prob¬ not have been easily de¬ .Thursday, June 11, 1953 .. course, weeks Public Utility Securities ably ferred. Utility Stocks Warranted? Utility stocks 4iave disappointed of their friends recently, but the whole have not made a % Incr. on bad and showing compared with rails industrials, as follows: Dow W,53 June 3 Averages High Close Decline Industrials 293.8 268.3 8.7% Rails 112.21 103.3 7.9 53.88 49.4 8.3 Utilities __ showing of the utility stocks also be considered creditable considering the amounts common of fact that large stock have been sold by the electric and gas utilities this year. Following are he amounts in millions of dollars: Electric January Gas 33 $76 54 March Totals $3 $73 _. February.. pril Lay 54 30 63 46 2 48 26 ______ cash a might be ferment arising a of 79 105 $114 share reporting over thus made far in statistics been over an of 1953. electric showing the of principally through subscription rights: General Public Texas Illinois Natural Gas Rochester com¬ (as re¬ as available have made so Board has been time—in sible early 2%—and that not normal a been yet it 1951 hence Mr. pos¬ relationship Just restored. spread is, how¬ is difficult to determine, be¬ (1) common stocks were ab¬ ever, number dividend of have H. light He the power and with in¬ his entire career. Sammis attended pub¬ grade and high schools in University. / engineering • , . \ . ... In 1920 Mr. Sammis joined Consumers Power Company, serv¬ ing in various engineering and sales capacities. Following a short period of association with C. H. Tenney & Company of Boston, Mass.. on power sales, and rate analysis work of utilities in New York and New utility increased identified the Sammi3 at Columbia 1920 and electric of service and spent a year as an instructor in electrical "normal" a Insti¬ Hempstead, N.Y., and then ob¬ tained an electrical engineer¬ Harold Quinton ing degree in 1917 at Colum¬ bia University. Immediately following his final examinations, he enlisted in the First World War as a machinist in the Navy, later becoming an ensign. After 28 months, he was released from active Waiter ex¬ it is Directors throughout business lic for narrowing been electric ferred stocks. However, the spread between preferred and common has of dustry in yields on bonds and pre¬ stocks the Pennsylvania Power Co. the changes of about the past ten weeks. Average yields on utility common stocks have risen from around 5Vz% to 6%, compared with a rise of about %% of is also Chairman of the tute, England, he returned to Consumers Power in elected was Vice-President and Director of that a com¬ in 1932 and the following year was named to serve in the same capacities for Ohio Edison Company and Pennsylvania Power Company. In 1936 he became President of Pennsylvania Power pany their rates this year and this, has helped to make the adjustment to a higher yield basis. of course, of as ensu¬ year. Vice-President securi¬ senior only companies (Texas Eastern Production) Most of these offerings were, in adjustment has prob¬ been effected if we con¬ an now sider A Western Light & Telephone showing: ably E'iectric Texas Eastern Transmission good a obtainable now ties. Such normally low during most of the period 1935-51. Gas & Electric Southern Natural Gas far mon normally popular in the 1920s and (2)interest rates were ab¬ Gas San Diego Gas & leased by the Federal Power Com¬ mission) lag somewhat, but Star Potomac Electric Power Co., the for ing cause Bangor Hydro-Electric Lone Edison Vice-President ** " reces¬ utility prices has been the adjusting yields on com¬ stocks to the higher yields what line California ern % near-term a col¬ principal Mr. Sammis, the new Pres¬ ident, who served last year as has Pipe¬ Institute, at its 21st Annual Convention City, N. J., on June 4, elected Walter H. Sammis, Company of Akron, Ohio, as its Pres¬ ident, and Harold Quinton, Executive Vice-President, of the South¬ of some Utilities this in The ago. Electric President of the Ohio Edison sion in ceeded Derby Gas & Electric have Monthly earnings Electric & Public Service of Indiana 12-14% pilations for the industry Gas New England Electric System corresponding weeks of last year. sched¬ uled for early offering, weekly output gains to the next year or so, been made recently, or are showing Recent continue Despite the rather sharp decline the market during June, a number of new offerings have $346 excellent part of their as will a Edison held in Atlantic need of de¬ in as earnings and dividends concerned, the electric utilities have amortization earnings) increase week argument for taxes saving (which most utilities not are reviewed was Federal in February this year com¬ pared with $147,000 last year. This cash which umn 000 So far re peared figures income The pessimistic forecasts re¬ utility stocks have ap¬ in recent weeks, one of little better, since de¬ from American $232 the basis general market. garding 7.5 9.1 _____ On 11.3 President of Ohio Edison Company chosen at 21st Annual Convention at Atlantic City. Harold Quinton, of Southern Cali¬ fornia Edison Co., named Vice-President. Several fense facilities amounted to $550,- The ay March Percent. 01 Edison Electric Insiitnte new helping utility share in any comeback to the of 13.2% 8.1 __ stocks Net Income 9.0% January February likely that months, summer Last Year over Total Revs. some It appears offerings will soon begin to dry up, and this pressure on the mar¬ ket may be relieved during the By OWEN ELY Is the Decline in Electric Walter H.Sammis New President ago of cost and two years later was made a Vice-President and Director of Commonwealth & Southern. In 1944 he resigned from Common- Thus the several companies which in recent months raised their rates from $2 to $2.20 (ConsolidatedEdison, West Penn Electric, Ohio Edison have • ■ Firm ':•< • i . " % ■ ^ 4 « Consumers PRIMARY Power) tare of taken this fashion. *, Additional increases likely from time to time appear «i . (a) or (b) Natural Gas Companies from Transmission & report Producing atomic AEC and of The energy. Chairman about the commercial the Dean . Kentucky Utilities Mississippi Valley Gas Mountain . Northern recent Public the reactor, advertisement pers Troster, Singer Members N. Y. Co. & Is Gen¬ that Can Be Built Right (for $10 million)" doubtless investors. some However, leading 74 experts such as Philip Sporn of American Gas & Electric Trinity Place, New York 6, N. Y. Southwestern still remain of the opinion that atomic power is not "just around the corner." Moreover, a number of the work utilities with the actively are AEC New Service Mexico V Public Service Tennessee Gas Transmission < . Texas Eastern Transmission • West - erator Now startled Security Dealers Association Atomic Power an Service Southern Union Gas in the Monday morning pa¬ headlining - the statement * "Here Supply Southwest Natural Gas of North American Aviation Com¬ pany Fuel Indiana Public Puget Sound Power & Light : breeder full-page Service Missouri Power & Light 3.90 pfd. power' of Public City Kansas-Nebraska Natural Gas by holders who were ap¬ prehensive over the potential de¬ of Electric El Paso Electric Kansas stocks velopment Gas & Louisiana Commonwealth Gas operating savings. In the past few days there may have been a little selling of utility Operating Utilities Central Electric Central as individual companies realize larger earning power through rate increases MARKETS Arkansas Western Natural Gas necessary-yield adjustment in any Trading Markets in- and substantially Ohio Gas SCHERCK, RICHTER COMPANY Teletype SL Landreth Building 456 St. Louis 2, Garfield 0225 L. Mo. D. 123 at in experi¬ field, and the industry will certainly not be caught napping. The change-over mental work in this We recommend with an as a conservative defensive security added feature of a spin-off of oil in a properties and non-dedicated acreage generating methods, if and will involve only partial abandonment of generat¬ when it comes, ing MOUNTAIN FUEL SUPPLY GO. Capital Stock facilities—similar perhaps to the problpm of manufactured gas companies in changing to natural gas. The gas companies have been permitted bv regulatory and tax authorities to amortize the cost of conversion year Ask for our period) (usually a 10- seems for ALL WISCONSIN UTILITY ISSUES lit¬ over and there Market Place tle doubt that the electric utilities special informative analysis could make a similar adjustment if necessary. Certified Investment Co. P. F. FOX & CO. , ,• 120 BROADWAY, NEW YORK 5, Telephone REctor 2-7760 N. Y. 1-944 & NY to at Boulevard. 1-945 The Financial Chronicle) ANGELES, Calif.—Certi¬ fied Investment Co., Inc. is engag¬ ing in a securities business from offices Teletypes NY (Special LOS 3337 West Officers Olympic are Harry M. Roman, President; M. J. Cambianica, R. Secretary-Treasurer; Waltreus, director. and E. INVESTMENT SECURITIES * 225 E. MASON ST. TELETYPE & MILWAUKEE 2 Milwaukee Phone: BRdwy. 6-8040 MI 483 Chicago Phone: STate 2-0933 Volume 177 Number 5228 The Commercial and Financial Chronicle ... wealth and also from Consumers to accept the Edison, at AKron. in lbou, he became Pennsylvania Power Company. » (2531) Presidency of Ohio cnairman of tne Board of .r Lewis (Hank) Serlen Newspapers , Celebrates The New Vice-President By ROGER W. BABSON Harold Quinton, the newly elected Vice-President of the Edi¬ son Electric Institute, has been an officer of Southern California Edison since 1942 when he was elected Vice-President in Mr. Babson describes the World's Greatest Revolving Globe at Babson Park, Mass., which he has dedicated "to the news¬ of papers 1 Finance. He named was Director a Executive Vice-President in 1948, and of the Charge in 1945, company Committee of the Board of Directors in 1949. He is also,a Director and Vice-President of the Los Angeles Chamber of Commerce and a Director of the California Bank, Pacific Mutual Life Insurance Co., Pacific Coast Electrical Association, and Edison The future of Electric the Says of the world Free depends Nations four upon he served for six years Co. & Edison before Colleges; and with the Treasury Department in Wash¬ years as a partner in the firm of Arthur' ington, D. C., and for 16 Andersen (2) Our Churches,; (3) Our Schools and (4) 17th. predated, tected their freedom their and be becoming associated with Southern Cali-' for is day Co. t for all p o r Chicago Bond Traders To Hold Annual Milwaukee Bond Club Annual Field Ouling ewspapers f o th Globe was . CHICAGO, 111. — The Bond Traders Club of Chicago will hold their 27th Annual Field Day, Sat¬ MILWAUKEE, Wis.—The Bond tnenabsons Club of Milwaukee will hold their have distrib- urday, Oconomowoc Lake Club and Oco- Hills June 27, Country at the Club, Nordic Itasca, Illi¬ nois. annual field day and uted their picnic at the Tariff neys are in charge of William Landerson, Lee Higginson Corpo¬ ration, and Paul Bax, First Boston Corporation. Prizes for members will 1st be and first 3 low net 2nd low (Peoria) and gross; a spe¬ cial short hole prize. For guests, prizes will be awarded and low net for low gross (Peoria). Baseball is in charge of Charles Scheuer, Dempsey-Tegeler & Co., and will start at 2:30 p.m. Clubhouse in charge of A. Madary, Geyer & formation Gilbert Golf matches will be under the with & should Free lunch will be served from Pollock, Swift, Henke (Special to The Leighton J. Lee Financial N. has C. & Chronicle) Joins Arthur Fels to KANSAS are bankers, the manufacturers, shopkeepers. Newspapers only have the opportunity of The Financial CITY, not Chronicle) Mo. — - • David Co. d i i n Serlen W Street Mr. Serlen is years, director a the Security Traders a (Special to the P. staff Company, of Inc., Trust Building. The Financial , ^determine associated with now the firm of rooter, its sales department. . , Peabody & Co., and Mr. Sullivan was formerly in the municipal bond department of White, Weld & Co. (Special p (Special NEW to The Financial is now Fahnestork *aftnestock Street. He LAUDERDALE Ft Mildred Johnston' C the staff of Roman & Fifth Johnston & was was Mr Fla. has ioine Johnson, 23 Avenue. Mr; previously wit A. M. Kidder & Co. 9n= Edw. A. Viner Adds Philip — with connected Co & Chronicle) Chronicle) HAVEN, Conn. Susman i i to The Financial Southeast Joins Fahnestock Eisele _ With Roman & Johnson Mr. Armstrong was formerly in the sales department of Kidder, (Special The to Financial Chronicle) rhnrrh BANGOR, Maine — Thomas Co, ZU5 Church previously with Leeds has joined the staff of Ed King, Libaire, Stout & ward £0 A. Viner & Co, 22 Stat Street what the Street. who logs into pulp, their and writers and all the turn make the paper and publishers P0MER0Y, INC. UNDERWRITERS AND DISTRIBUTORS OF Distributors PUBLIC UTILITY, RAILROAD who cut the trees; the mill work¬ ers & — Dealers Chronicle) and SCH0ELLK0PF, HUTT0N Underwriters say. When I mention newspapers I CLEVELAND, Ohio—Jefferson include everyone connected with H. Ware has joined the staff of McGhee & Company, 2587 East them, including the woodsmen 55th — largely INDUSTRIAL and MUNICIPAL ink; the SECURITIES reporters, printers; and, in fact, employees, including the boys and girls who deliver the papers. Yes. and I must not forget the ad¬ — vertisers, INVESTMENT SECURITIES Private Wire between without whole" industrial collapse. our whom To all these I our W. C. Langley might system am dedi¬ Members New offices & Co. York Stock Exchange cating this—"The World's Largest 63 WALL STREET, NEW YORK 5 70 NIAGARA BOwling Green 9-2070 Teletype: NY STREET, BUFFALO 2 115 Globe." New York 6, N. Y. Broadway WAshington S06G 1-2827 Teletype: BU This "Great Revolving being located the on 300-acre Wellesley, Massachusetts. feet BArclay 7-8800 Globe" is of the Babson Institute at campus Primary Markets Tel. The Great Globe Described 122 It is 30 in diameter and weighs with the shafts and cities 37 countries The tons. are located on a U. S. Governments Municipals Public Utilities scale in 24 of Utility Stocks "Utility Stock Analyzer" containing complete data is now on the to inch, and the 75 Public Utilities the Italy, available upon request. 95% United America, other Industrials Railroads Equipment Trusts designate the home of the newspapers of 400 cities from which Our miles Globe will the of States, Great West Free population of Preferred Stocks Canadians Canada, Latin Britain, Nations are Bank France, and Germany, Acceptances the reading. Copies of these and others, includ¬ ing the "Commercial and Finan¬ cial GEYER & CO. INCORPORATED BOSTON LOS ANGELES wires CHICAGO PHILADELPHIA " a bolted a are being depos¬ concrete vault cornerstone, : 63 WALL STREET, NEW YORK 5, N. Y. Private Chronicle," ited in upon bronze under the Salomon Bros. & Hutzler Members New York Stork which will be plaque with the Sixty Wall Street, following inscription: to: "This plaque Exchange New York 5, N. Y. Privett wins H is dedicated to the BOSTON -CHICAGO PHILADELPHIA CLEVELAND SAN FRANCISCO ST. LOUIS Newspaper Globe and employ. Publishers all persons of in the their May their work be ap- c New York, and a Thursda night regular with the STAN changes, announces that William bowling league. He also plays gol b. Armstrong and A. A. Sullivan and Softball and is a Dodger; guiding their nation's leaders, but they are a great factor in electing preachers and teachers 2 Associatio the right leaders. The advertising now with Arthur Fels columns of these papers determine Mortgage Co., 1004 Grand the employment conditions of the Avenue. country; while the editorial writ¬ With McGhee & Co. 1 fo than more Kramer is ;| Henry — joined Peeler the ers With J. Lee Peeler DURHAM, to the future of America than r a Joseph Bond & .y?-.. ■ . made through the great Open-Church Movement; speeding college education, through Babson Institute, Webber College and Utopia College, and now dedicating this World's Greatest Revolving Globe and the Incor¬ be George 11:30 to 1:30 p.m. (Special John Co. of York City, members of the New York and Boston Stock Ex- in Struck, The Milwaukee Company, and William to the newspapers of the Free Bosse, Loewi & Co.; cards, F. A. World. I feel that newspaper pub¬ Newton, Loewi & Co.; baseball, lishers have not been appreciated Lyle Hamann, Central Republic when they are entitled to far Company and Tom Twitchell, B. greater respect and consideration. C. Ziegler & Co. 1 They certainly are more important porated. Reservations obtained from Vonier, Paine, Webber, Curtis, General Chair¬ direction New are awakening the churches, man. Harold Co. be may Estabrook & Co., 40 Wall Street, for Roger W. Babson Jackson & for & In H. Lewis Join Estabrook Go. plus savings Country Club June 19. guests $10; further in¬ nomowoc Guest fee, $15.00. Events of the day will begin at 8 a.m. for golfers. ; The golf tour¬ sur- c department. . aoove, • thai Memo- on fc 1 hi twentieth y ei with the t Dedication 9 c e brated Armstrong, Sullivan World. In view Bay 17, 190; June also rial Day. Free e her On greater supn bee June ROGER W. BABSON." The York< born N ewspapers. My aopeal to- a nath having into One United World. Our t h s a New pro¬ responsfOnly they can this i e n " rarity great bilities be realized. bring the nations of Mr. Sei 1 are foundation stones: (1) We Parents; !A native of Topeka, Kan., Mr. Quinton attended Topeka High School, Washburn Academy, and Northwestern University. Fol¬ lowing three years in the United States Army during World War I, (Hank) Serlen, Josepl thai & Co., New York City, celebrating his birthday on Jur newspaper publishers have entitled to far greater respect and consideration than they have received. , Institute. fornia of the Free World." been appreciated and not member of the Executive a June! on Lewis CLEVELAND HARTFORD SAN FRANCISCO U The Commercial and Financial Chronic le... (2532) II Continued jrom page 4 Restrictive Credit Policy And the Banking Outlook While has been increasing the capital measured in reasonable relation structures of many banks through¬ to its risk assets, in which cate¬ out the country, the over-all gory loans and securities are in¬ cluded. More and more it is rec¬ trend in building adequate capital be should requirements capital made some progress in thin and substantial in¬ been has structures too ognized that the net worth, or capital structure, is the true basis spotted. As I view the situation, of a bank's size, and indicates its accomplishments to date are quite intrinsic strength. As bankers, we modest and inadequate, as con¬ quite generally apply that rule in our own analysis of credit worthi¬ ness of our customers. The Gov¬ taxation as favorable to applied to building stronger fi¬ nancial institutions. A more con¬ siderate view of the amount of re¬ tained taxes earnings is of our structures of banks that should take place. our is essential in The increase order banks might be able to Government and our ple. Banking must to be its Since have as as as well shareholders and interests, has ness borrowed to in too many instances when provision should have been made for all or part of its re¬ money available In on tance of business ize favorable terms. instances numerous in business sound to , equity shares the equity markets has been influenced by the policies of our National Tax, and has re¬ cently been local manager Shearson, Hammill & Co. Hooker & for Fay Branch direction of Edwin E. Hendrickson and James T. Love. New Sparks Office ASBURY PARK, N. J. Sparks Co. have office at & branch which Wanamassa etc., J. W. — opened 1400 Drive, T. J. South with Moynahan a J. Arthur Warner to "result in some ad¬ Offerman as representative in vantage to borrowed capital as charge. contrasted with equity capital. In testifying before the House Ways With Wins low, Douglas & Means Committee just this past Monday, Secretary of the Treas¬ Winslow, Douglas & has been appeared Humphrey referred voiced also ferring it to If it is that as to in agreement as the "bad" tax. a re¬ "vicious" a tax. bad, and I think it is, should not expiration with interfere June on 30. tain itself the relationship in new & New Inc. Co., Inc., York succeeded Securities, by Officers corporation City, Eastern of the Theodore J. are: Moynahan, President; Robert Laf- McEvoy, 120 Broadway, members American nounce of New the fan and Alexander W. Moore, City, Vice-Presidents; and William Es- York New York and ser, Exchanges, Stock an¬ Moynahan that Herbert W. Klotz and Thomas Throm have become Secretary Treasurer. - formerly was Mr. Vice- President of J. Arthur Warner & its Business would be much better off to main¬ Utility securities. past investment own Houston Broadway, we Public in 120 He underwriting and distribution of sound his Henry ury have specialized in the French in the Mr. business to util¬ concerns the Profits to business. reluc¬ the flected referred Succeeds Warner Ce. HOUSTON, Tex.—R. D. French offices in the Esperson Building to engage in a securities has opened quirements in the equity markets. SAN MATEO, Calif.—Hooker & a fairly satisfactory Fay have opened a branch office equity market over a long period at 205 Fourth Avenue, under the of time, and money has been Excess our Eastern Securities We have had Excess Profits Tax For many years we Busi¬ owners. resorted R. D. French Opens Own Office in Houston those of its conducted as peo¬ our important place in I sition own strong and sound po¬ is necessary to protect its equity in strength¬ economy. country. it also has not maintained its Government, and is re¬ in the provisions of the ened, preserved and enhanced in the years ahead so as to faithfully after fulfill banks desirable, and is also in the best interest of in the capital crease fully v/hereby banks is discharge their responsibilities to atmosphere an the that ernment has been too slow in cre¬ ating with trasted inadequacy of equity capital in banking, this might be an appro¬ priate occasion to suggest to American business generally that Thursday, June 11, 1953 asso¬ Co., Inc. ciated with the firm. Mr. Laffan Presi¬ was dent of S & L Reports Inc. sound a position in its own net of worth to its over-all operations commitments, regardless of profits that might accrue through consideration of temporary tax and BOENNING & CO. benefits. Conditions vail under which Philadelphia 3, Pa. of business could pre¬ heavy term debt would seriously Blyth & Co., Inc. en¬ danger its fundamental credit po¬ sition, its JSC as solvency, very safe a position well as its of share¬ holders. Business SIGN OF ACCEPTANCE Business More than half of the .. . and more ... have used major utility holding companies than one-third of the electric companies having our in revenues of excess operating $45,000,000 services to assist in the solicitation examine ture, with its proxies for meetings of their stockholders. The management phone companies stockholder of these and find response. many services our other electric, insure This is attested to prompt gas and Improve Its Structure. generally its fown should financial re¬ struc¬ view of maintaining in a proper and a statement strong relationship to its total of business, its general volume in exposure of Should Financial ... market and tele¬ by unsolicited letters of commendation and repeat employments. particular emphasis on ade¬ quate net worth, to safely and conservatively meet its responsi¬ bilities tions through in our changing condi¬ that result economy in good and bad times. banking system Primary Markets Coast to coast retail in distributing facilities Public fluctuations, with gratifying Distribution through 23 offices located in Utility Bonds Preferred Stocks principal financial and business Common Stocks A stronger and stronger centers. Complete Trading Facilities American business will stand this country in good stead to meet the DUDLEY F. KING great opportunities and responsi¬ bilities envisioned in the future. On the Proxy Soliciting Organization of 70 Pine Street, New York 5, N. Y. National coverage through offices in 30 or representatives principal cities hope whole, there is and ernment. feeling by Gov¬ a confidence business and banks the steady progress of our nation. Ours is a country of growth. New frontiers merce of industry and to * Louisville • San Francisco Springfield • Detroit Sacramento • Minneapolis • Fresno the sound make that sibilities of Bonds in healthy credit nation • San • Eureka Diego pro¬ is a wholesome making the We have growth a study on a Our country has been one. prepared influ¬ Electric Utilities giving extensive data to move steadily forward. banking structure is vital to all people. The challenge and on 88 companies. A strong Copies opportunity to American banking Common Stocks is to make sound, manner that its contribution constructive to nation. our the and steady in Corporation Broadway, New York BUFFALO PHILADELPHIA 6 SYRACUSE orderly growth of Carl M. Loeb, Rhoades Underwriters and Distributors Investment William A. Schroeder away of Schroeder A. a Schroeder heart had with Thomson & •York Request I have full confidence American William CLEVELAND on a banking will dis¬ charge that responsibility with great credit to itself, and to our country. Oakland • Pasadena • Portland • Indianapolis • necessary encouraged by the changed political atmosphere; and along the line there is evidence of hope and faith in our ability as a and BOSTON Spokane • San Jose Seattle • Cleveland growth possible. bankers, the exercise as caution ence Preferreds HARTFORD • com¬ unmistakably 65 • Los Angeles • Pittsburgh • In meeting our essential respon¬ Utility Union Securities Chicago • Philadelphia * constantly being de¬ and a dynamic banking veloped vide New York Boston are system must stand ready to Public in attack. been • - — NEW YORK 5, N. Y. Telephone: Whitehall 3-4000—Teletype: NY 1-630 & 1-718 Mr. MEMBERS associated McKinnon, New .Gity,. since 1919. Co. Securities 42 WALL STREET passed & of AND OTHER OF THE LEADING NEW STOCK YORK AND STOCK EXCHANGE COMMODITY EXCHANGES Volume 177 Number 5228 ... (2533) The Commercial and Financial Chronicle 25 Bond Club of New York Ernest W. Borkland, Jr., Tucker, Anthony & Co.; Middleton Rose, Laird, Bissell <£ Meeds; Calvin M. Robert G. Dillon, Dean Witter & Co.; Ira B. MacCulley, Equitable Securities Corporation; George E. Clark, Adams Express Co. Cross, Hallgarten & Co.; David McElroy, J. P. Morgan & Co. Incorporated; Walter F. Blaine, Goldman, Sachs & Co.; Frank Dominick & Dominick; Duncan R. Linsley, Bullock, Calvin Bullock Kernan, White, Weld & Co.; Ranald H. MacDonald, First Boston Corporation; Hugh itnmp Gerald Moore McCormack Lines; Kuhn, Loeb & Co. E. Donovan, Richard A. George W. Bovenizer, Merrill Lynch, Pierce, Fenner & Loftus, R. S. Dickson & Co., Inc.; Woods, Edgar J. Bill Long, Doremus & Co.; Lee Beane; Wright Duryea, Glore, Forgan & Co.; Joseph Iglehart, W. E. Hutton & Co. Limbert, Blyth & Co., Inc. P. Scott Gene Ralph S. Allen, Laird, Bissell & Meeds; James P. Smith, Merrill Lynch, Pierce, Fenner & W. Maitland, Hudson Fund Distributors, Inc.; Norman Beane; Lcuis H. Ingraham, L. H. Ingraham & Lo. Dean Witter, Jr., Dean Witter & Co.; Dean Russell, Glore, Forgan & Co.; Eddie Glassmeyer, Morgan Stanley £ Co.; James J. Lee, McMahon, Witter & ustin Brown, Co. Blyth & Co., Inc.; Hudson M. Lemkau, W. E. Hutton & Co. £ Heller, Bruce & Co.; G. Norman Scott, Estabrook & Co.; Bob Erickson, Stone A1 Stalker, Kidder, Peabody & Co.; Albert F. Donohue, Kidder, Peabody & Co. Webster Securities Corp.; 26 (2534) The Commercial and Financial Chronicle .. .Thursday, June 11, 1953 Twenty-Ninth Annual Field Day Rudolf D. Smutny, Salomon Bros. & Hutzler; Frederic Dillon, Read & Co., Inc. Fred H. Brandi, Hal E. Murphy and Edwin Barton, Eastman, Dillon. & Co.; Wm. H. Morton, W. H. Morton & Co., Incorporated; E. Clark, Calvin Bullock; William L. Canady, W. L. Canady & Co., Inc. Buck Robert Frank L. Stroud Sundstrom, Schenley Industries, Inc.; Robert E. Nowlan, Company, Incorporated, Philadelphia; Dudley F. King & L. Beck, Edward The Commercial and Financial Chronicle H. Gammack Robinson, Schwabacher & Co.; Hubert F. Atwater, Co.; Col. Oliver J. Troster, Troster, Singer & Co. & Remmel, White, Weld & Co.; Philip Carow, Harriman Ripley & Co., Incorporated; Jim Robertson, Goldman, Sachs & Co.; Bob Whitbeck, First Boston Corporation H. Albert Ascher, Wm. E. Pollock & Co., Inc.; and Gilbert Whemann, Jimmy Lanin Musicians White, Weld & Co., and Marvin Levy, Lehman Brothers, winners of the doubles match S H. H. Sherburne, Bacon, Whipple & Co.; Frederick H. Steiwer, Alex. Brown & Sons; W. Harman Brown, Investors Dtversthed Services, Inc.; Henry P. Cole, L. A. Mathey & Co. Seated, front row: Lgerton B. Vinson, DeHaven & Townsend, Crouter & Bodine; Robert A. Powers, Smith, Barney & Co*; Clarence W. Bartow, Drexel & Co. Elmer F. Dieckman, Glore, Forgan & Co.; Charles Morse, Hemphill, Noyes & Co.; Harry Clifford, Kidder, Peabody & Co.; T. Jerrold Bryce, Clark, Dodge & Co.; Alfred J. Ross, Dick & Merle-Smith (2535) Number 5228... The Commercial and Financial Chronicle Volume 177 27 Friday, June 5, 1953 John C. Curran, Paul Conley, Blyth & Co., Inc.; Stanley Russell, Jr., Blyth Inc., Philadelphia; Norman De & Co., Planque, W. E. Hutton & Co. Louis H. Ingraham, E. W. Clark & Co., New York; Edwin F. Peet, Inc.; Eugene Treuhold, L. F. Rothschild & Bros. & Denton, Burns Co. L. H. Ingraham & Co.; John S. French, A.C.Allyn & Company, Inc.; Paul F. Hay, W. Joseph Nye, Neergaard, Miller & Co.; Robert L. Hatcher, Jr., Chase National Bank of the City York; Edward S. Johnston, Wood, Gundy & Co., Inc.; George K. Coggeshall, Schoellkopf, Hutton, & Pomeroy, Inc. F. A. Krayer, Republic Company; Richard C. Noel, Van Alstyne, Dillon, Read & Co. Inc.; John E. Arrowsmith, Van Alstyne, Kenneth A. Kerr, Central W. C. Langley & Co.; John Power, Eastman, Dillon & Co.; John P. C. Moran; Otto De Neufville, Swiss American Corporation Hubert Clarke, of New General I Manager of Gustave C. Sleepy Scarborough, N. Y. C. Langley & Co. William W. Noel & Co.; Joseph Ludin, Noel & Co. Pevear, Irving Trust Company; Aubrey Aubrey G. Lanston & Co., Inc. Q. Lanston, Granbery, Marache & Co.; H. Stanley Krusen, Shearson, Hammill & Co.; Allen Wertheim & Co.; Earl K. Bassett, W. E. Hutton & Co.; Raymond D. Stitzer, Equitable Securities Corporation A. Alexisson, Du Bois, Hollow Country Club, Hugh Bullock, Calvin Bullock; Henry P. Cole, L. A. Mathey & Co. 28 (2536) The Commercial and Financial Chronicle At William Earl K. M. Jr., Henry Herrmann & Co.; Harvey Mole, U. S. Steel Co.; Harold Spencer Trask & Co.; B. Winthrop Pizzini, B. W. Pizzini <fe Co., Inc. W. Carl Salim L. Lewis, Walter C. Bear E. M. Hutton & Co.; Frank Loeb, Rhoades & Co. E. ..Thursday, June 11, 1953 Sleepy Hollow Country Club Cahn, Bassett, . Gernon, Gordon R. Braman Cook, Bank of Dominion Stearns & Co.; Arthur D. Lane, Chase National Bank of the City & Co., Inc.; C. Russel Lea, Reynolds & Veigel, Halsey, Stuart Ball, H. Adams, Adams & Peck; Van Dyck MacBride, MacBride, Miller & Co., Newark, Douglas G. Wagner, Charles A. Kahl & Co.; Edward R. Greeff, Adams & Peck Montreal; Securities of New York; Co.; Arthur D. Lane, Jr., guest B. George P. Corporation W. H. R. Rutherford, E. Jansen Hunt, N. J.; White, Weld & Co.; Gerald B. West, Stone & Securities Corporation Webster Jarvis, McLeod, Young, Weir, Inc.; Charles F. Hazelwood, Paul H. Davis & Co.; Augustus Phelps, Phelps, Fenn & Co.; John Howard Carlson, Halsey, Stuart & Co., Inc. W. John S. Linen, Chase National Bank of the City of New York; Bradley Green, Guaranty Trust Company of New York; Fred Stone, Marine Trust Company of Western New York Brittin C. Trask Eustis, Spencer Trash & Co.; Charles F. Bryan, Spencer Co.; Thomas S. Evans, Lee Higginson Corporation; O'Connell, Homer O'Connell & Co., Inc. & Homer John B. Bank & Roll, J. B. Roll & Co., Inc.; William G. Laemmel, Chemical Company; Malon S. Andrus, J. G. White & Company, Trust Incorporated Volume 177 Number 5228... The Commercial and Financial Chronicle \ (2537) > Enlarged photo shows the transistor before and after being encased in its plastic shell. Inset, Transistor actual size. ransistor, mighty mite of electronics Increasingly you hear of a device tronic new elec¬ the transistor. — Be¬ of growing interest, RCA — a pioneer in transistor development for practical use in electronics — an¬ cause basic questions: swers some Q: What is a particle germanium imbedded in a plastic shell about the size of of corn. same way But transistors are with tubes in the and a as not a a vacuum. interchangeable sense be removed from set kernel that the electron tube handles electrons in circuits a It controls electrons in solids in much the that radio a or tube can television transistor substituted. New well as new components are needed. metal, is one They have quire They no no warm-up, are heated filament, and use little re¬ power. rugged, shock-resistant and by dampness. They have plifiers, phonographs, radio receivers (AM, FM, and automobile), tiny trans¬ mitters, electronic computers and relatively expensive ores. of its physical characteristics, the tran¬ sistors qualify for in lightweight, use portable instruments. opportunities for the miniaturization, simplification, and refinement of many RCA scientists, types of electronic equipment. Q: What is the present status of tran¬ sistors? A: Four kinds of RCA transistors being produced for commercial number of other types are in stages are use. A various of development. Q: How widely will the transistor be used in the future? of future ap¬ neers, research a transistor to as does detect, amplify and oscil¬ an and engi¬ facilities, have intensified their work in the field of transistors. The multiplicity applications in both military fields is being studied. Already the transistor gives evidence that it will greatly extend the base of the electronics art into many new fields of science, commerce and industry. of new and commercial Such pioneering assures from product finer perform¬ service trade- ance strated marked RCA and RCA Victor. experimental transistorized am¬ any or Radio Corporation of America electrical characteristics which enable late men aided by increased laboratory When painstakingly prepared, it has unusual electron tube. a number of television circuits. Because plications, RCA scientists have demon¬ of the basic elements found in coal and certain A: A: To indicate the range Q: What is germanium? A: Germanium, a the advantages of tran¬ are long life. These qualities offer great A: The transistor consists of of the metal What sistors in electronic instruments? unaffected transistor? a Q: World leader in radio—first in television U 'v;- 10 -m:- 29 30 The Commercial and Financial Chronicle.. (2538) and thermal which was imposed volun¬ between hydro at first and later by our generation. government as a wartime neces¬ In addition the water power re¬ sity, industry has been somewhat source? of many European na¬ slow in comprehending the full tions are rapidly becoming fully significance of that discovery. developed. Information assem¬ bled by the Power Section of the This perhaps is understandable .Thursday, June 11, 1953 from first secrecy page Atomic Power and the Electric Industry erations tarily Continued atomic energy in the United States Al¬ States. United the in here though we use tremendous and our industry and in our civilian Atomic Energy Act are now being ever-increasing quantities of en¬ lives," and it provided research prepared for presentation to the ergy, we have available abundant facilities and carried on research Congressional Joint Committee on resources of fuels and, in some toward that end. Atomic Energy. areas, water-power potentialities. Gordon of Dean chairman became Commission the in July, 1950 and under his most capable guid¬ ance extremely rapid advances have been made toward the goal of peacetime industrial and civil¬ ian utilization. Today, radioiso¬ topes are being used quite widely in many fields of endeavor—agri¬ Our in Our Development of Atomic we medicine, metallurgy— in the wise guidance of the Atomic and we are approaching the point Energy Commission under leaders where the use of atomic fuels for such as Gordon Dean, who so well the generation of electric power recognize the American Way of may be possible on a competitive Life and the need to perceive and commercial basis. continue that way, even with such Of greater importance, however, a controversial matter as Atomic has been the realization by the Energy. Articles indicating that nuclear Commission, and particularly by Chairman Dean, that if atomic fission had opened up a vast new energy is to take its proper place source of heat energy, appeared in our industrial and civilian lives, in the technical journals as early then competitive industry must as 1938. These articles were based enter into the development and on experiments carried on over a bring its vast capabilities into the long period of time by scientists effort. This position has been re¬ in both Europe and the United peatedly announced by the Com¬ States. mission and we are given to un¬ Because of the extremely com¬ derstand that recommendations plicated processes involved in re¬ for proposed amendments to the leasing that heat energy, and the the which can be made by nuclear fission was demonstrated by the first atomic bombs, the peoples of the world were stunned. Subsequent public¬ ity led a great many to believe that we could expect a vast in¬ crease in the availability of energy in all forms, and fantastic new uses for energy were predicted. At the present time, eight years energy available after the is atomic The nature of the as fuel. a Atomic fuels present a vast new tion heat of source energy. Informa¬ studies sponsored by from the Atomic Energy Commission iplftsi m /-v * |gj jjig gggj 1| % // W W/ „ % ' ' p# I % S'v/ purposes are be exceedingly heat energy in conventional fuels. The nominal of cost pound one of uranium, which potentially has the heat equivalent of approxi¬ that tons covered of uranium thorium can be re¬ economically. dustrial processes and for the gen¬ eration of electric power, using rea¬ actor at Oak Ridge, but full-sized heat energy avail¬ reactors for the generation of elec¬ economically recover¬ tric power on a commercial basis heat available in atomic fuels now able nuclear fuels is approximately have not been completely de¬ 23 times as great as that available appears to be the generation of in the estimated fossil fuel de¬ signed or built. steam, which could then be used (3) A t o m i c-powered engines posits of the world. conditions sonably well understood. practical one the of use for the generation of elec¬ or It ' ' the able in the for two submarines have been de¬ Present Status of Atomic signed Fuels (5) civilian activ¬ velopments have in been the United carried as mal type of electric tion as will be used time goes power genera¬ more This on. and more continuation crecy has been the policy of deemed increase of stations the funds in recent the portion of electric years, generated ergy hydro by hydro en¬ in the three decades from 37% efforts have Although the under jectives liminary in which the ob¬ way to complete the pre¬ are design of reactors and their necesasry appurtenances in¬ se¬ tended for the commercial genera¬ tion of electric power. (7) need There to is carry forward. what No future great this and knows one urgent development exactly developments may bring, but the accomplishment of practical industrial applications very probably will have impor¬ countries directed primary power be (6) Several studies and projects are essential been electric of to appear cially. tant largely to peacetime civilian and industrial applications. United States has decreased in the past practical, and that substantial development Atomic In most of these large with public use necessary before such power could be competitive commer¬ a energy developments nearly all of the more economical also have been carried on by other hydro-electric sites have been de¬ friendly nations, including at least veloped. Those remaining are Canada, Great Britain, France, mostly in remote areas and there¬ Norway, Sweden, Switzerland. fore have a limited economic Belgium, The Netherlands and value. In spite of the tremendous Brazil. built the fission for generation (b) has been continued. and is because of that is monopoly under the Energy Commission, in ac¬ cordance with the provisions of From the standpoint of electric the Atomic Energy Act of 1946. power we should clearly realize For national security reasons the that in the United States the ther¬ feasibility (a) reported the heat of nuclear Atomic Resources AEC, have studies and all does government Thermal Generation and Fuel teams, with the States forward industrial contracts have of responsibility, and to forward under the cloak of great clarify the steps which must be secrecy until the Hiroshima bomb taken before heat from atomic explosion in April 1945. Since fuels can become a major factor January 1947, atomic energy de¬ and Several under made this industrial proto¬ under¬ now has been under way for some time. power ities. scale is (4) Development work on atomic-powered engines for a large naval vessel and an aircraft major interest and a major re¬ velopment was taken over in 1942 sponsibility in this development. by our government and the gov¬ The purpose of this paper is to de¬ ernments of our allies, and carried in full one going tests. a fine and installation type therefore, that the contributing very substantially. As a wartime necessity, this de¬ industry has both follows, electric -»••• will mately 1,300 tons of coal is $35. It and tho¬ is thought that these atomic fuels rium, the two most important ele¬ may ultimately supplement the ments involved, are widely scat¬ present fossil fuels for some pur¬ tered in ore deposits throughout poses, but it is not anticipated that the world. Although the ore in they will supplant the use of con¬ most cases contains only small ventional fuels. percentages of these elements, it (2) It is physically possible now is estimated that at least 25 mil¬ lion tons of uranium and one mil¬ to generate steam for use in in¬ indicates Other possibilities are The initial development of being considered but as yet atomic energy came largely nothing practical has developed. through research in university Major Responsibility of Electric laboratories both here and in Power Industry Europe, with European scientists ill compared with the cost of as atomic fuels, if cost is not a first Scientists tell us that under has consideration. Test installations optimum conditions, one pound of and have been made at the Experi¬ uranium can some of the problems of utilizing furnish the same mental Breeder Reactor at Arco, this energy for peacetime civilian amount of heat energy as 1,300 and industrial tons of coal and that under these Idaho, and the Homogeneous Re¬ tric power. ilii fuels low energy from nuclear fission been more clearly established ing v/y/.y/A///.- up atomic Energy Resources of Atomic Fuels either for industrial heat process¬ flpi of development great urgency and incentive to the the situation as follows: development of atomic materials (1) The cost of heat energy in bomb, the lion somewhat becoming realistic. more The ■"' first outlook the to now have been military problems, substantial effort has been devoted to possible peace¬ time uses. This is particularly true with respect to radioactive Economic Commission for Europe istopes which are used in many (United Nations Group) indicate important ways. There has been that with the present rate of ex¬ an increasing effort to develop pansion in the use of electricity, the use of the heat energy poten¬ Italy will have used up all of its tialities of atomic materials with¬ hydro resources in 12 years and in the last two or three years until Switzerland in 15 years. These now the matter has assumed great are critical matters which give importance. We can summarize When the tremendous extent of have been even more fortunate 4 is sources Energy culture, ' of cost energy from these quite low compared to energy costs elsewhere in the We have been fortunate in our world. Energy resources, there¬ efforts in the development of fore, have not been a problem of atomic energy—fortunate that we first magnitude to most American and not the enemy first perfected industry. its use as a military weapon. And Fortunate in effects vances upon consid¬ of our on the economic ad¬ our country and perhaps national security. (8) This development could be to 10 27%. Because resources we have abundant fuel V in this country, thermal has not been a prob¬ generation Many of the nation's leading industries have located lem. Areas plants in Cincinnati recently. new mines or more America is developing its own One of the world's greatest industrial in the Ohio more important industries are attracted to this rapidly developing "Ruhr Valley of America." And it's more than coincidence, of course, that so much of this activity is up Ruhr Valley being centered in the Greater Cincin¬ Industrial Area. Activity which boosted payrolls by 10,000 people and nati $29,000,000 in 1952 . . . which saw $100,000,000 worth of new plants and also had—arid will continue to plentiful supply of electric power and gas to offer new and ex¬ panding industries, thanks to a for¬ ward-looking $200,000,000 expansion program, started after World War II by The Cincinnati Gas & Electric Co. a the cost The CINCINNATI GAS A ELECTRIC to Company America—with adequate supply of gas and electricity for home and industrial consumption an of generating $ Per Ton , 0 1 •* « Much does of the rest of the world not enjoy our abundance of fuels, and energy resources are a critical matter. The Netherlands, Belgium, Italy, Brazil, Argentina, face a particularly severe prob¬ lem. a 15. " Other countries 5 Z § o /-Average ft ■4^ S VAverage1 « O 3 C situations because of lack of fuel needed to provide low cost for industrial processes and to permit a reasonable balance heat «/> ; • > < • > < . /kwhr 11/ fly Revenue - Cetits/kwhr j « 2 S • All Services 8: « Dot i d large hydro resources, such as Norway, Sweden, Switzerland and Austria, suffer troublesome eco¬ > ° H- which have : Z' « C - ' / w electric power. nomic Saving Cincinnati—the city closest Cost of Cool- Substantial increases in the cost of $80,000,000 worth of capital improvements swing into production. This area has many solid American qualities to offer in addition to its strategic "good business" location. It has obvi¬ sources cost differential but fuel, however, as illustrated by Fig. 1, have created a problem in another have a in any event fuel has been avail¬ able and will continue to be avail¬ able for many years in the future. (and the Greater Cincinnati Industrial Area is becoming, more and more, its busy center) workshops is shaping valley—as more and distant from coal other fuel ously incur 1930 1935 1940 Fig.l- Comparison of from sole of 1945 cost of coal with Detroit Edison electricity. 1950 Company 1955 revenue Volume 177 carried Number 5228... The Commercial and Financial Chronicle 31 (2539) forward by AEC at gov¬ work and result of competitive in¬ Succeeding installations should (d) These installations would taneously, each guided by strong, the pres¬ dustry and they have done much be subsidized to the point where capable executives experienced in be improved units and it is within ent Atomic Energy Act or it could to give us our tremendous indus¬ real costs became completely ob¬ the engineering, financial, and reason to expect proven workable be carried forward by private in¬ trial administrative aspects of the elec¬ installations within ten to fifteen strength. Our unexcelled scure. ernment expense under dustry using private capital, with¬ electric out great expense to government, abundance of electric if the our our (e) This procedure would be a and long step toward socialism. exceedingly large use of Joint Ventures of Government electric power are some of the and Private Industry: Proposals truly significant factors of that in¬ for joint ventures of various kinds dustrial strength. Our present electric power po¬ have been suggested for the de¬ sition did not just happen. It velopment and construction of re¬ actors for the generation of elec¬ was brought about primarily by tric power. The reasoning upon competitive industry that had an which these proposals is based is opportunity to engage in our eco¬ not important to this discussion. nomic advancement and a respon¬ present law is modified in several important respects. (9) Although great have been ergy development infancy and research advances made, the atomic still is great a and en¬ in its of amount development re¬ mains. The National Laboratories of AEC the are available for only facilities much of now this systems, re¬ power power, sibility to perform one of the im¬ portant services which has made both to our national security and that advancement possible. to the economic advance of our Those responsibilities of the country. Continued use of those electric power industry continue. laboratories in this effort is essen¬ Ample power supply must be pro¬ search, which contribute would tial. vided for the areas served. New discoveries must be studied, de¬ As stated previously the de¬ veloped and adopted so that the velopment and construction of service is provided at the lowest full-scale reactors for the genera¬ electric of carried out might power the be (1) by private indus¬ try using private capital; (2) by presumably by AEC, using government funds, or (3) by some joint venture in government, which both private industry and government would participate. Private ties: In based Industry's Responsibili¬ an prise, it private is make the coveries people. develop to benefits we transportation, munications, to and all to have of new those of available This enter¬ responsibility discoveries, the ours, competitive industry scientific like economy upon the the with temperature-high pres¬ sure steam generators and tur¬ bines and high voltage transmis¬ While atomic energy has unique and plications, sion lines. industry's talents into the ef¬ Considerations fort; it will produce creative Perhaps the most important thinking and it will speed the consideration in carrying such a ultimate development. When the present study phases program forward is the matter of costs and by whom these costs are completed, and if these indi¬ cate that the use of nuclear fuels might be competitive, the electric power industry should actually carry out the construction and only fair to indicate that testing of full-scale reactors. This, some mutual of course, will require the expen¬ development of the forward in diture fuels any of atomic use the the results future. near tainly it will be of moves research Cer¬ to necessary use that has of substantial of money, which Investment and Cost of there must be at least aspects to years. sums but this should be re¬ garded in the same light as other research and development efforts which have been continuously should be borne. I have indicated that I believe the development of atomic fuels for the generation of electric is power rightfully im¬ Development Government: by Practically all of the atomic resource en¬ development to date has by the government and there ergy put to work in the effort to ad¬ been that the should electric assume power industry the costs of the de¬ velopment. The industry, in this includes not only the elec¬ power systems themselves, sense, already been National completed Laboratories. in In our addi¬ carried on since the tric beginnings of the energy as science is still in its a infancy. We have come long way since the very nuclear fission a very, key to finally solved but we still must solve greater problems in putting this new resource to practical ci¬ in was 1939, vilian uses. the is well agreed that many of scientific and technical prob¬ for weapons It civilization. This clearly is are those who believe this situa¬ lems yet to be resolved are of responsibility of competitive tion should continue. With some concern chieifly to government, industry. Since the most promis¬ this feeling is the result of gen¬ ing use of atomic energy is in the uine concern over defense and largely in the matter of weapons. Other problems are primarily re¬ generation of electric energy, the national security. Others believe lated to industrial and civilian electric power industry, I believe, that because the government has applications. It is equally recog¬ has great responsibility and great spent vast sums for the develop¬ nized, however. that all of these opportunity in this situation. ment, it should continue the mo¬ problems are definitely inter-re¬ If we look back for a moment nopoly for the benefit of "all the lated and that they cannot be com¬ we will In other words, know¬ note that the electric people." pletely separated. Chemical or power industry is the result of ingly or otherwise, they are advo¬ metallurgical processes, for exam¬ definite move toward developments that have taken cating a ple, which would simplify the re¬ place over a very long time. Man socialism. finement of fissionable materials vance the has known fire the duce in heat energy for From past experiences we Probably should expect that development by years. of fire prehistoric times to pro¬ government of atomic energy for commercial generation of used electric power would have the first were or thousand many industrial the metals uses which were for weapons. a Althougn Hero built primitive steam turbine in 130 B. C., it was not until Watt de¬ veloped the first practical steam engine was Since that time developments in use with of heat energy have come increasing rapidity — run it would be limi¬ steam be of inesti¬ connection reactors for industrial • with applications. The atomic energy development ward because of fund in fol¬ therefore should lowing results: (a) In the long would value be carried for¬ two broad fronts; one in¬ volving those matters of primary on importance to government, and involving matters of tations, lack of coordination and duplication of effort, fear of mis¬ 1769 ful work. the mable the ineffective that heat energy harnessed to accomplish use¬ in the takes, and bureaucratic burden. (b) These difficulties would re¬ sult in extremely high costs and a great burden, indeed, on the There tween taxpayers. maximum results other greatest operation industry. closest coordination and the the be efforts two duplication and to this to concern should to assure are co¬ be¬ avoid that the (c) - way we can move - RESERVES TOTAL SOURCE UNIT ENERGY OF ENERGY BTU DATA 610 Billion CRUDE OIL Barrels Weeks and 11.5 GASOLINE Barrels Billion Barrels 560 NATURAL GAS 35 x 6.4 x 106 0.74 x 1017 6.4 x 106 40 1017 Trillion Cubic Feet Association Per. Bureau of x 1017 Cu.Ft. 13,500 3482 6 Tons Mines the should systems further in efforts study this one may not prove we initial commer¬ should de¬ x 1017 velop x 1018 ble energy situation in many parts of the world, and our need to 1700 9,000 x 1018 " the rapidly TOTAL CONVENTIONAL as maintain 25 Million URANIUM Tons Raw Materials Division of TOTAL NEW x 106 at 1 ' H to 1 71 ,/n x 1018 Tons 1800 FUEL x 1018 - World Reserves of Fossil Fuel and Nuclear Energy possible. The unfavora¬ world face this development with broad interest and effort. A single pro¬ ject carried to completion will not be adequate. projects Preferably there independent carried forward simul¬ be several Area Resources as leadership, give this effort. The industry should continue to should Fig. 2 problems real urgency to Breeding AEC 1 Million THORIUM 3.5 technical develop¬ While 722 " WEST undertake and area. cially competitive, BTU 14,000 lUlllllllllllllllllttllllll major items in the genera¬ tion of electric power, the electric 80 Billion COAL COLORADO A GROWING of the ments 1000 BTU WYOMING future. power x Mines American Gas the parts of the United States is Institute Bureau of lllllllllilllllllllllllllllllllllllMIIIIIUIIIIIII! Because the cost of fuel in many 1017 American Petroleum 620 SHALE OIL 106 Moulten Billion NATURAL x pres¬ COMPANY IN IDAHO ent energy resources at some time in 6.4 effectively supplement may A GROWING iiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii UTAH forward of heat energy—a new fuel which WORLD Serving In obtained. In Large-scale developments would immediately present a rapidly and effectively. combustion engines, modern steam widespread threat of governmentFrom the standpoint of industry, and turbine generators and gas tur¬ financed operated thermal and the electric power industry bines. generating stations. In other words, in particular, we should regard These atomic materials as a new source developments are the more government in business. boats, locomotives, vastly im¬ proved steam engines, internal FUEL the responsibility of the electric power industry. It follows, therefore, even fundamentally it is a to be developed and far-reaching industry. Competition will bring more groups the with high ern agricul¬ properties and manner vigor it developed the mod¬ com¬ ture and countless others. new same same petroleum, medicines, dis¬ of done is power between but also the electric power equip¬ ment manufacturers, the engineer¬ industry. ing industry, power users, and tion, much research currently in Developments of practical value others who have an interest in possible cost consistent with sound progress is directly related to will come slowly. If proper effort is exerted initial maintaining our high standards of business practices. large power reactors, and a vast service at the minimum practical Atomic energy, or atomic fuels, amount of additional research has projects could come into service cost. ten offer a new source of heat energy been suggested and is needed be¬ within years, and perhaps All of these would benefit from which can be used to generate fore power reactors can be com¬ somewhat sooner. The first instal¬ the development and all should electric power. The problems are mercially competitive. The re¬ lations obviously will be experi¬ share in the burden. difficult and economic results may search would benefit not just one mental and exploratory in nature, In the matter of research and not be achieved for many years to single effort, but rather the entire but they will help solve many there are areas come. The efforts will be costly, effort. Each development or ad¬ problems. These installations development, where the problems of interest to but probably not as great as pre¬ vance, large or small, would be might be complete generating sta¬ government and those of interest a step forward in the broad dicted. The technical and eco¬ prob¬ tions or they might consist of only to industry cannot be delineated. nomic problems will tax human lem of bringing atomic energy to the reactors and necessary appur¬ These problems, in most instances, which would permit ingenuity but they must and will its ultimate useful place in our tenances can be studied only with compli¬ be solved. economy. thorough tests of the reactors and cated facilities such as are avail¬ their operation. Certainly such It is the responsibility of the able in the AEC National Labora¬ Looking to the Future reactors would be so designed and electric power industry to study tories and the results of these In looking to the future, we constructed that the electric gen¬ and develop these possibilities in Continued on vage 32 should keep in mind that atomic erating facilities could be added. Reactors for Electric Power tion It tric P. O. Box 899, booklet mailed upon request. Dept. K, Salt Lake City 10, Utah 32 The Commercial and Financial Chronicle (2540) Continued from page 75 31 inception. its since years all anticipate further .Thursday, June 11, 1953 .. We Continued from first page year-to-year advancements. Atomic Atomic Powei and the became a first energy unlocked the secret to nuclear sion Elecliic Industry would be studies of entire atomic energy value to the To bring about these conditions development." the Atomic Energy Act ot 1946 thought that much of ?h"uld be> amended in the followthis work could properly be un- mg respec . certaken by government, but this (1) To permit private enterprise is not necessarily the case. While to build, own and operate atomic the costs in question might be energy plants. substantial, they would represent (2) To permit private enterprise only a small fraction of either the to acquire own and dispose of total AEC budget, or the total fissionable materials. ccst of a practical reactor project. n\ Tn nprmit nrivate enterCertainly, this is a matter of de¬ tn !nn,,irh anH Hisnnse It is my • 01 nwn to acqu r prise tail. source P , ma er . Exact'y how the necessary funds would be yet as Those determined. should join together in interested maximize their effort, relationship might be will need serious thought. There are many legal considerations, to groups eral this upon a direct bearing problem. is It well understood the that Atomic Energy Act, as presently constituted, provides a government monopoly in the field of atomic energy. If private industry is to engage freely and actively in this development, it is essential . , , , , .. ,. . that rights of ownership be given private industry so there may normal opportunity to re- be the investments cover from efforts. practice which to profi' the usual and This is makes for business and it possible industry to exist to expand. Thermal atinS stations power ordinarily rwe* ov^ a in underits its conventions ur attend directing it to useful applications. Industry in general, and the electric power industry in particu- lar, recognizes the potentialities of this situation. America's industrial machine is the world's finest—in skilled man- because opportunities we mercial anH con- that „c tetter'Tob^in front us. place as a useful factor in civilization only when indus- Eerving try succeeds in harnessing it and /omers proper our stockholders, nation we Lab®1" Legislation our cus- our wnen with what is going on in -n all parts of the country> The conhelps us to establish and vention given again by the Federal Government matter of labor legislation. to the enactment of the to the is being Attention keep Prior Taft- acquaintanceships valuable Hartley Law, the Board of Direcin the conduct of our company tors of the Institute approved a business. It gives opportunity to statement of policy prepared by voice significant views. It helps one of its committees setting forth P°wer> in technical and scientific Us to keep our perspective, io the position of the Institute with know-how, and in industrial clarify our thinking, to develop respect to the labor issues which equipment. We must aim at pqt- informed opinions and to grasp led to the enactment of that law. ting our industrial machine to its the real significance of new de- The statement set forth at that fullest possible use in developing velopments. time will be found to be sound atomic energy's promise of a Electric companies have much and applicable today. I recombetter, more abundant, and per- business with neighboring utilities mend that from time to time you «, have a years. use could have full control of the plant fnv i+c for its useful life. rp. The organiza¬ ^ would need to know that it could obtain the necessary atomic materials for fuel and that it could or dispose of fission products through the normal channels commerce. of with condi- ducted in compliance set forth license the in standards to be accord with in pre- scribed by the Act. ... renew . PORTLAND Dinwoodie is Merrill Maine Huah — J with connected now Lynch, Pierce, Fenner & Beane. discharge of ties+to and trade industry convention the for leaders affords "Electric secret protection subject only to (Special to The Financial Chronicle) top leaders in the industry and to full disclosure to the Commission BOSTON, Mass.—George Put¬ acquaint themselves with the for its own use for purposes of nam, Jr. is now associated with broader aspects of the electric protection of national security. Putnam Fund Distributors, Inc., 50 utility business. It lifts their points The national security and safety state aspects of the atomic energy situati0n are fully recognized in sug- have not found should be possible to continue the conditions. Licensing, 'arrangements, subject to cancefiation only for failure to present ______. oi law' f assa, e that fissionable materials and classified information does of not pass into the possession Cii-onicle) ^ . stover, dr> *s Standard now boutil L,ake Avenue. , -J W lth .. I-- Hamilton (Special , Manage t to The Financial Chronicle) SPRINGFIELD, Mo.-Harriston T. Wells agement is with Hamilton has advanced bower (Special here industrv tremendously in the they A NEW 152 industry. and It is important that the top ex- Holland For years local to The Financial HAVEN, 10, 15 They now. Chronicle) Conn.—Max ca- of those who will be the top and 20 owe years from this to those who after them. come It is desir- M. L. FmJt ab!e !hat the key men of each InCOme Fu"ds> company and the younger potenStreet. now Temple withi„ tial leaders and division managers attend conventions occasionally Tear-afier-year the stimulation be to why the develop- here. That conventions, • people who should That devising An have we are attend. and obtained is objective our in programs. GROWTH Adequate Power The been year. EXPANDING, obtained and areas there RECORD 1950 1949 1948 1947 1946 1945 $889,117 682,425 562,018 497,363 369,895 303,584 238,078 211,307 "The there will be season again be such as adverse an occurred last Fall. Kilowatt Hour Sales 95,032,000 82,235,000 67,193,000 57,847,000 48,966,000 41,674,000 34,775,000 29,335,000 The electrical manufacturers ad¬ Customers Served 21,427 vised year that 12 V2 they will deliver this million kw. of gener¬ ating equipment. 20,138 greater than 18,640 capacity of plants in 1920. 17,002 of the 12 V2 15,749 installed 14,286 present 12,427 11,037 Colorado Central Power Co. 3470 SO. BROADWAY should hydro Gross Income $2,472,534 2,177,446 1,862,459 1,641,764 1,421,286 1,233,828 1,046,834 882,151 power manufacturers that adequate supply of power throughout the coming year in all parts of the country except pos¬ sibly in the Pacific Northwest if AREA 1951 the an STABLE 1952 from clear it from the United Friendly People" ENGLEWOOD, COLO. Of during is kw. the estimate 10 million kw. not all will course million sound as written. tion to will be put in op¬ Our survey shows that the entire utility industry will add about 30 million kw. in the three years 1953 to we 1955, inclusive. Not only ample capacity to supply the power demand in the years ahead of us, but plainly we have are 0 a have Uirt „ ... , big selling job to do if to make the most of the to The statement fundamentals and it is today Let me as when call your it was atten- few of the 15 principles a adopted. government should en¬ development of private Much of river development accomplished by noncapital. Licensing under the Federal be can Federal Power Act should be encour¬ aged. Local agencies, not the FedGovernment, should be respon¬ sible for the adequacy of power supply for non-Federal needs. All projects should be eco¬ nomically justifiable. Benefits exceed to should costs be required by substantial wisdom of this margins. (The nrinciple has been demonstrated by many recent instances underestimation gross of of costs by the Federal agencies.) Power should be sold at mar¬ ket value. Disposition cf power should by non-Federal marketing. be Federal power should be sold without discrimination. about eration. will response then capital. be The year. that States. dealt with This amount is the total generating all electric utility the ag0 at this Convention adopted a brief statement of principles and policies v/ith respect to the development of water resources in The Index stands at a high Nevertheless, the latest re¬ ports of our Power Survey Com¬ make Revenue con- President's Water Resources Policy Commission, the Edison Electric Institute prepared and three years Industrial mittee from courage sales of electricity have running well ahead of last The Federal Reserve Board In resources. request a Supply level. IN A RAPIDLY Year national manv cerning we Ahead Before Depreciation and Income Taxes and agencies have been natural exert on the future can leaders Those THE the Federal and State ecutives be here for the®influence ment Gross Resources themselves with the development and preservation of our is GOLDEN • Water Development Policy Hnvprnmpnts will Haves is Sound to cause them to lose contact with what is going On generally in the for KEENESBURG cus- utilities the they Corporation, Income Funds Add electric the of the customers — company, yet the nature of their work tends to isolate them from other industry leaders and reers I should like to emphasize serving investor-owned Man- Building. Conclusion the 0f of most ,and managements should, greatest degree possible, be state laws providing for reg¬ ulation and enforcement by state agencies." ees to - unfriendly hands. that job To tomer. - essen¬ special laws regulating the la¬ bor relations of utility employ¬ A°" °f Califorma' 87 arc the 7 ,y, their portant ^ . ^ con^ly Financial . intolerable and believe that under to The are When necessary any of service. vision own jobs. It also offers opportunity to stimulate divi¬ sion managers in their very im- PASADENA, Calif/—George B. curity regulations create difficult We of (Special view and enlarges their utilities local enterprises subject primarily to state regulation as to rates, finances and standards tially an Standard Inv. Adds gesting the above modifications of ^e law. Obviously, present sesituations of Street to possibility of in¬ of utility service due to strikes. the contact with utility necessary the terruptions oppor¬ potential younger make to the electric public appears minimize lationships within the industry. out the or industries ventlon helps to develop these retunity With Putnam Fund singling tion full responsibili- our customers. The con- The (6) To permit private enterprise to attain normal patent gener- fuels would need to know that it sell our private permit To (5) t{,ese electric t^g mZaat^ "farting private capital plant to atomic tion in St3Afnm?r>°inpr«?v^l?Vachieve Atomic energy will acmeve prise to obtain licenses from the Atomic Energy Commission sub- tions The Atomic Energy Act of 1946 and far , tions, which have .. end distribute and sell use, products and by-products produced in an atomic energy facility, 01 Electric Power intervening years in the come fis¬ enter- haps more peaceful world of the and with electrical manufacturers. read !he statement to refresh future. Friendship and mutual under- your views on labor questions. By —A standing and a disposition to con- way of example I quote two items as anti-trust laws and Fedjecf oniy f0 the requirement that With Merrill Lynch FlrTOH-HBider the concerns and opinions of from the statement: Power Commission regulaoperations thereunder be con(special to the financial chronicle) one another are important in the "No specific Federal Legisla¬ such to to the what but (4) To permit private enterprise made available has not been and have we Progress and Prospects scientists real factor in 1939 when we com- I think it there is a fairly be said that growing realization can |4iroiighoat this country, particu1. y in, , West, that local plan- Plng and !ocaI responsibility must haveJ ® dominating role in the sound development of natural resources and that there is grave danger to 'h,e ®vlJval, Iocal government if the Federal bureaus assume the the determining role development of natural in re- legislation were the If Bources. en¬ acted in conformity with rec~ ommendations of the 1950 Report Water President's the of their customers, are to 14% the heavily taxed changes government. the support the present time Re¬ Commission it only eventuate in national Policy sources (2541) they paying to support bureaus at all times up the well-being of its They have territory and thus helping its and own business to grow. Congress should There is no magic in the power and water Let been tried this in for natural of control moment a on local grossly unfair to the cus¬ Federal Government has entered the power companies into other fields of business. The them to be taxed through power industry is vitally interre¬ for their re¬ and individual freedom with the long- sources support tomers of big gov¬ the long-range effect ernment of bills to power support the lated with practically every other industry. A threat to nationalize government and then for the gov¬ local government ernment to exempt by law from taxation those customers who ob¬ results when power com¬ tain their power from local and panies develop water resources. national governmental proprietary The development by the compa¬ business. At present tax rates the nies is subject to local and na¬ cumulative effect of this tax ex¬ tional regulations. They must make their plans and their opera¬ emption is enormous. No industry, however efficient and progressive tions conform to the mandates and range wishes of local authorities well as in and destroy ness or any American busi¬ industry is a threat to de¬ the stroy American in all industry. enterprise free business regu¬ and the Fed¬ lations of the local The Government. agencies Federal not under such regu¬ are lation. A Plea for Fair Competition From Government Proprietary Business of that any fair-minded believe I the all the will who person facts inform must that conclusion himself with agree the Federal Changes in Money and In recent months Cost there has been, a substantial increase in interest company's contribution to area rates on long-term debt. Becauso development. It has no money to the electric power industry fcj squander on popular ventures. It pre-eminent among industries fin must pay interest and dividends to the amount of capital it requiredthose who furnish its funds and and the slow rate of turnover cap¬ its rate of return on its invest¬ ital, the interest rate on bonds t# ment must be kept moderate. The very important in its rate making Public. Service Commission will and financial problems and thkf see to that. But to carry out its change is a matter of concern to functions in serving agriculture, all of us. Rate increases obtained; commerce and general industry it during the past few years to offset must have trained personnel who the rise in the cost of labor ami are continuously engaged in plan¬ its That inter-relation has been well demonstrated in a number of for¬ the requirements of ment, such tax inequity. Either the in¬ It can and does put up a good bat¬ national agencies. Their work tle against odds, but certainly the must conserve and develop nat¬ equity must be corrected or, in ural resources in conformity with time, free enterprise in the power power to tax is the power to de¬ field will be destroyed. stroy. Big government is bigger the public interest, both local and Furthermore, the proprietary than any industry and if the basic national. They are not and cannot be a law unto themselves. Even power business of most govern¬ inequities I have pointed out are mental agencies has the unfair ad¬ not corrected, the government if they were disposed to conserve will wind up by nationalizing and develop natural resources un¬ vantage that interest on the bonds sold by them to provide money many of our basic industries in wisely they could not abuse their for this business is also tax ex¬ America as was done in England, power because they do not have and through them will effectively it to abuse. They are subject to empt, a fact that materially re¬ duces the interest rate on such dominate practically all business control under the laws and eral andI industry." the cos^ prevailing. It bf£?,vacquainted with the territory and comes critically important thai* eign countries and America can its possibilities and know how to Public Service Commissions give profit from the lesson they afford. put electricity to work to earn adequate consideration to changed engineering and manage¬ The free enterprise system is ef¬ more for the customer. in the cost of money if we are to can indefinitely survive ficient, vigorous and resourceful. meeting as rightful share of commerce build regard but it is land. contrast us to to to restrain themselves. and 9% Government Federal ask are of gross revenue Federal are needed to correct the tive force in the development of At lack of fairness. It is too much to the area that it serves, helping governments, a found wanting. control over all water and land. total of 23 cents out of every dol¬ act to reestablish fairness in the There could be no real freedom in lar they take in. It is proper that provisions of its laws. The issue here is much broader this country with the Federal along with the rest of American Government in full control of business they should pay taxes, than the power industry. The could 3SI Number 5228... The Commercial and Financial Chronicle .Volume 177 materials were based on ning and men who are thoroughly The company power is, there¬ of money then forward carry successfully the fore, especially qualified to con¬ large construction program wo tribute to area development work are in the midst of. This is not n and has an unusual opportunity matter that company management for civic leadership. that even such work though is such Do not think unappreciated appreciation not be recognized for a long time or expressed. I will take the may liberty of lines of an land quoting from few a editorial in the Cleve¬ "News" of March 1953, 27, or commissions can af¬ regulatory ford to treat In lightly. the long run, however, it felt to all free enterprise, particularly to the electric important and business, that thrifty and people be given in¬ centives to save and invest theisr/ savings with confidence in the future buying power of the dollar. This change in interest rates is in the direction of sound and fafar treatment of the investor and we should clearly understand the sig ¬ nificance of this point. power industrious commenting on the contribution of the Cleveland Electric Illumi¬ asking for fair nating Company and its President, cies competition, let us be sure that Elmer Lindseth, a past President we give fair competition in return real of the Institute, toward the wellFederal taxpayers to subsidize and that we go even beyond the being of that area: part of the power bills of the actual requirements of regulation "This program (urban rede¬ consumers of the underpriced and law to assure this in our busi¬ velopment) comes to us from an Our engineers who have beer* electricity is widespread and has ness dealings with neighboring earnest, hard working industri¬ been recognized from its begin¬ municipal and co-op systems. battling to offset the increased alist who knows what he is They are not charity subjects and nings. costs of labor and materials in If power were sold to cover the can and should pay their way like talking about, who hasn't spent the past 20 years by improvements true cost to the Treasury, includ¬ any other proprietary business, as much time talking as in ing an amount equivalent to the but we can be helpful to them, Continued on page 341 working to get Cleveland its Federal taxes that would be paid they can be helpful to us. They if the property were investor- are our neighbors, and let us see and bonds. The practice by Federal agen¬ of selling power below its cost and thereby forcing industry. While • we are in its legislation, its regulations, its interpretations of laws and regulations and its ad¬ ministration of them, and in its to it that we are sound and fair judicial proceedings, has heavily owned, in most instances the cost of Federal power would equal or in all our dealings with them. It discriminated against investorbecome exceed the fair market value of will apparent to them owned power companies and has that in reality we are their best fostered the nationalization of power as established by the pro¬ Government electric power. I need not argue Many eminent persons in the past year, including Presi¬ the point. from cost duction in the sources area. other power tive administrative and that contend action actions these have be preference no in In the of the TVA, no in¬ case monies received necessary to preserve our natural resources for the people through appropriations. Indepen¬ and to greed them protect of corporations. big the the from In speaking efficiency the of of resourcefulness and the free enterprise system, I call to your on dent estimates came up made Serving attention the very heartening re¬ trend from govern¬ versal of the mental power business in the Northwest toward a strengthening payer. terest is paid been friends. Hence there the dent Eisenhower and former Pres¬ preference clause, but by ignoring and understating costs the power ident Herbert Hoover, have stated is sold at prices that carry a heavy the case. from the Federal tax¬ The defenders of such legisla¬ subsidy would of busi¬ that region where the Government has been investor-owned ness in Federal power ago pouring out with the answer that the millions THE GREAT SOUTH WEST of dollars for power fa¬ years many hundreds of yardstick was 18 or less cilities. Another very heartening long when it was set up. development has been the bold the establishment of the enterprise of five companies in Tennessee Valley and the Pacific organizing Electric Energy, Inc. are under local regulation and projects the cost of to challenge successfully the mo¬ control and benefits or advantages Northwest construction has doubled, yet in nopoly to be had from the building of of the Tennessee Valley neither area have rates been sig¬ Authority, with its tax-free, in¬ power dams or from participation nificantly increased to the pref¬ terest-free business, in preempt¬ in government built power proj¬ erence customers. ing the supply of power require¬ ects must of necessity go to their The laws governing the sale of ments for the Atomic Energy customers. And further, in mak¬ This venture was ing such developments the com¬ power from Federal projects set Commission. panies must conform to local sen¬ up certain preference customers, followed shortly thereafter by the timent in conserving and using the that is, local governmental bodies organization of the Ohio Valley and cooperatives. These are agen¬ Electric Organization backed by natural resources. Generally they must also obtain a license from cies that have not been taxed to 15 power companies to go ahead Their contentions not are valid. They deliberately ignore the fact that investor - owned companies TVA inches Since help pay for the facilities built with a $400 million power gen¬ by the Federal Government, yet eration project. Another similar they are given preference in buy¬ development is the prograrn»of the overall plans of the various power companies in New Federal agencies with respect to ing power that is priced to make five conservation and utilization. What this preference attractive to them. York State designed to carry out the Federal organization can our Commission Power their work conform to and make natural better conserve resources than power companies which have to conform their plans to local regulation and must satisfy conditions deter¬ mined ment? or the by Federal Govern¬ local agencies the enforce establish conditions and under their construction plans and their power facilities. They follow their own considera¬ operate tions. practice is obviously designed the redevelopment of power at municipalities and rural Niagara Falls, the site where the districts into setting up power privately - owned Niagara Falls systems of their own to qualify as Power Company in earlier times preference customers under the wrote an illustrious page in the provisions of Federal law. history of private enterprise. When it comes to the exer¬ cise of monopoly lure to As On the other hand, no state which Federal bureaus will carry out The stated nents of these the public re¬ ing and can play in the develop¬ developed for ment of the areas which they benefit of the public and not serve. tices argue sources the This point brings me to the part before, the propo¬ discriminatory prac¬ which power companies are play¬ that should be private profit, but in all fair¬ who but the public benefits power is sold to regulated investor-owned companies? Any for ness, if there is nothing to compare with the monopolistic savings in cost to the company powers that Federal agencies ar¬ due to purchases of low cost power go to the customers the company rogate to themselves. Their tax money has In competing with private busi¬ serves. ness there are several weapons helped build the projects. Surely which the Federal Government The Utility there is no fairness in a provision Company's Role in Area Development the A utility duct of its company in the con¬ business must engage efficiently in long-range planning and have the courage to make de¬ cisions far in advance of operat¬ ing necessities. It must be Pr®~ to serve the power needs of the territory. It can grow no (1) Wilmington, Delaware CENTRAL POWER AND LIGHT PUBLIC SERVICE SOUTHWESTERN COMPANY OF . COMPANY OKLAHOMA GAS & ELECTRIC pared Two of these are important: that denies to certain classes of faster nor prosper more than the tax discrimination, and (2) American citizens a government selling power below cost to pref¬ subsidy extended to another class. territory it serves. It cannot shift This is what we mean by its place of business. On the other erence customers. Investor-owned hand, it can be a most construc¬ power companies, and therefore unfair competition, and legislative uses. CENTRAL AND SOUTH WEST CORPORATION WEST TEXAS UTILITIES COMPANY COMPANY 34 (2542) The Commercial and Financial Chronicle.. .Thursday, June 11, 1953 Continued, jrom page throughout. 33 We must signt of the fact that that construction and oper¬ use United and States. Securities Salesman's Corner everyone It serves of the occupied homes equally high percentage of an By JOHN DUTTON the fixed locations where work is "How to Build performed. Electricity's part in serving these activities continues to grow and multiply and the to unmatched degree. Our present standard of living has de¬ ating methods may find that tney have a new economic balance to the about 98% Of Electric Power in designs, into practically and labors of in industry the life importantly enters Progress and Prospects lose not our veloped largely from that growth. of our com¬ strike in their planning and de¬ Continuing growth and new hori¬ watchful attention mittees keeps our industry from signing because of this change in zons promise a new era of elec¬ trical living. Light's Diamond Jub¬ falling behind in any of its accu¬ the cost of money. responsibilities to the The investor-owned companies ilee affords us an opportunity to mulating a David L. Babson, the investment has written a brochure counsel, that describes the of securities or loans. These are In the very near future infor¬ large figures and they are quoted mation concerning the plans and to emphasize the significance of indicating the part that electric any change in the cost of money. power companies, in conjunction Diamond Light's Next year Oct. 21 on with companies and Jubilee in other branches of the electrical shall industry, we celebrate the 75th Anniversary of Thomas A. Edison's successful in¬ from our very significant turning point achieve his A Tribute to Board has of Directors established industry in the world shares information in tric lesser of freely as the elec¬ industry and no organ¬ power ization that so I know of does financial in the inde¬ the Committee S. Kennedy, Oklahoma is Messrs. President of Gas and Electric Harllee of Company, Branch, Jr., Georgia Power the Walker and pendence in later comfortably achieve to of the tables used Donald President of Company. I known tax For Cisler, counsel, J. K. Lasser Casey. children, have one in the brochure the Then Mr. of growth 4 puts About Babson It takes » comparative the various yardstick results of groups mentioned above. his up growth the up between stocks Do the companies,- of industries, and factually record sets to of Then he the three requisites of. deferred income, in¬ ternal growth, and safety of prin¬ the test of experience. I think you will agree that he makes quite an imposing case for * the cipal to purchase of the leading securities in such industries natural as gas, synthetic fibres, research special¬ married a Here's a prepared by the well- was and W. J. inde¬ unless years approach is used. which Edison Jubilee to reasons as with man savings he two this as This for the sturdy growth and his at 65 if current compound he tax could would invest ties, chemicals, oils, labor saving machinery, paper, etc. ' * payments at interest, would all 4% be as follows: 11 And Years Income to by Taxes 65 at 1952 Kate 35 30 35— 30 $103,683 408,762 Is Eventful an Period These tory of electric individuals as Our power. has been role cast in this eventful period of time. I be¬ that we are alert and are lieve measuring to up Is $10,000 25,000 40 20,000 40— 50,000 45 25,000 50 50,000 great days in the his¬ are If are Savings Taken 25 20 216,733 909,740 217,030 15 439,240 25 have you the on fence, who obtain a copy digest it are who afraid portfolios realisti¬ that if you will believe I clients some to look at their cally, Are We Are Living in do the committees of the Edison Electric Institute. that sure they have done a spendid job in the arranging the program. sound practice faithfully followed for nearly 70 years is one of the members am Detroit convention unfolds you will agree developments in every part of the industry to the attention of all its the The such Spon¬ soring Committee, a Planning Committee and a Program Com¬ mittee. They will present a plan for celebrating Light's Diamond a the Board of Directors those even higher brackets Program in the life of people gen¬ a thorough job of bringing erally throughout the world. latest experiences and the latest The this new Company; Our Committees for program What , No extent Institute a designed to give help¬ Example: difficul¬ many own ful attention to matters of present and future concern to us. Our President present position, was a a appropriately under¬ can take will be made available. vention of the incandescent lamp. This event, as we now can see the life of America and to organizations have We convention long-range uptrend. Dow Chemical. ties that the average investor must overcome if he is to be able to about $2.6 billion in 1952 refresh the minds of the older public. We owe our thanks to the He shows and proves and at present construction rates generation and bring to the minds Chairmen and members of these pendence. it would appear that they will of the younger generation this committees and to the companies why prewar methods of building a retirement who program are obsolete. support the Chairmen in spend about $3.0 billion in 1953, historic event and what its signifi¬ their responsible Increased taxes and cheaper dol¬ of which amount about two-thirds cance has proven to be and what carrying out lars have made it impossible for work. will have to come from the sale it offers for the future. spent Retirement Fund" of this brochure and that you either agree or disagree with David L. Babson (and I think you'll agree) that so you'll have something to go' out and tell your clients that will help you to do business and will also help them. The David L. Babson organization is located at 40 Broad opportunities our tute would be called upon to assist unhalting advance which the power industry has made through¬ out its history, an advance that has seen no let up in the rate of growth and in the striving for im¬ provement in every phase of the Says David Babson, "It is clear Street, Boston 9, Mass. Why not responsibilities, but this from the foregoing that what our write and ask them for a copy of self-congratulations. fathers saved for retirement, we "How to Build a Retirement Fund We have great work to do, great are paying out in income taxes." Under Today's High Taxes and decisions to make, important poli¬ Living Costs." cies to establish, much commercial The Tree Basic Requirements in the preparation of Jubilee business. development work to accomplish, To quote further, "What invest¬ awe-inspiring engineering oppor-, ment principles then, must guide tunities ahead, heavy responsibili¬ the investor if he is to be success¬ ties and important decisions in the ful in building a retirement fund matter of finance, questions that against today's obstacles? There tax our capabilities in relations are three tests at its meeting tomorrow. An im¬ portant feature of this plan will deal with of the the community celebrations Jubilee to be fostered by The Insti¬ utility companies. terials which mittee, the made tives from a up of representa¬ number of has concluded the furtherance ma¬ Program Com¬ will of be One as the rewards of serving President of this Institute is to companies, become better acquainted with the useful such in commu¬ men toric event. who lead and those who stitute nity recognition of this great his¬ have The of our appreciation I an before incandescent^lamp committees. of the role in I never con¬ now had they perform aspect of our began studying every the mass use of electricity. Free )perations and in fostering the de¬ enterprise fostered the growth of velopment of sound practices and is our no time for which with the local If do we wise are labors this work well, and the labor), our promote investors and we of will of advance America enterprise there to even and contemplate would slacken rest in on indi¬ no the and our evil we efforts, should should oars, to country should ensue our our of free We cannot afford companies that be can vidual freedom. we we allow our our course In closing, ment ahead of the power to keep well ever-increasing demand for electric in the thriving area they serve. 200,000-kilowatt generating units are Five new scheduled early '54. see we a growing are one seg¬ of the economy functioning member of the team. In one come shall reread we again and again from the London speech of the General, now Presi¬ dent Eisenhower. "The winning of freedom is not to be compared to the winning of a game. Freedom has its life in the hearts, the actions, the spirit of men. It must be . . . daily earned for operation this year and I that the days to System companies continue and flower cut refreshed—else like from its a life-giving roots, it will wither and die. "We fight battle—we Gas and Electric and its Operating Affiliates Appalachian Electric Power Company Light & Power Company Cehtral Ohio Indiana & Michigan Electric Company Kingsport Utilities, Incorporated The Ohio Power Company Wheeling Electric Company Kentucky and West Virgina Power Company, Inc. . in the the no . our own those things . are of God. eyes serving only defending for all things that allow personal dignity that each believe lift Company not are those mankind dH American (1) important We opportunity for are pre¬ men to their hearts and minds to highest place—there must be stragglers in such a conflict. up "The —it is road ahead certain to may be be long by marked critical and difficult passages. But we march together, endure to¬ if gether, succeed. share . . together, we shall ." They must offer "deferred Today's tax rates make income." it worthwhile to accept lower cur¬ rent income on invested capital in order to obtain (2) They must possess inherent capacity for capital growth over the years ahead. (3) They must provide relative safety of principal because heavy taxes make cult to it The Three Then David important times free society tomorrow. of a * Babson that become associated with The Rob¬ Stocks makes this observation. think (I some¬ of many us inson-Humphrey Company, Inc., Rhodes-Haverty Building, as VicePresident in the in department. the municipal bond Mr. Joliey was for¬ security business often fail to realize the validity of the follow¬ merly Space ing statement, and also to impress it upon our clients.) Quote: "Our urer observation is that most Traders Association. are investing ment do human that beings, Income not who have, - officer of Johnson, Lane, Co., Inc. For the past two years he has served as Treas¬ an & of the National Security retire¬ seem securities, characteristics." (1) men for capital purposes understand to Correction like different In the "Financial June ,-a Stocks—Stocks of 6th it Theodore H. opened his companies was |. Chronicle" of reported that Gruellemeyer had offices to engage own in stable industries, in the securities business. We are food, tobacco, utility and informed that this was in error as bank, where sales and/or earnings Mr. Gruellemeyer has not sev¬ are relatively steady but static. ered his connection with Glidden, Example: American Telephone. such as Morris (2) Cyclical Stocks—Stocks Co. of companies operating in highly vol¬ atile industries steel, railroad and brass, such as heavy equipment, copper where the volume of business and/or earnings fluctuate through an extreme the peak of the the range ple: American Car and (3) Growth from business cycle to depths of depression. Exam¬ Foundry. Stocks—Stocks of companies engaged in dynamic in¬ gas, assurance Joliey ATLANTA, Ga.—Lex Joliey has Major Types of Common dustries, such an Lex capital. 4 there be increasingly diffi¬ lost recover By our. example today of better performance under free enterprise will greater future income. to be misdirected dur¬ awareness as AGE follows: judgment to be obscured and ing this great period in the his¬ tory of our industry. kilowatts... Robinson-Humphrey investments our will enterprise, and without our we Joliey V.-P. of must meet to qualify for estatebuilding at today's levels of taxes and living costs." These are as excellence no we and interests free if in unflagging (and there is the interests Million Gov¬ t; employees a Federal ernments and with the public gen¬ erally. without were and Lex WE MAINTAIN ACTIVE MARKETS IN UTE ROYALTY CORP. UTANA BASINS OIL ENGLISH OIL Information as chemical, natural electronics where earnings and dividends are sales, in a request W. D. Nebeker & Go. f Members PAC. and on SALT N. NAT'L LAKE A. S. LIFE CITY Phone D. BLDG. 10. UTAH 9-3783 Volume 177 ' 4 I ' ■ .' . ' • available Electric the Indnstiy Should Lead In Improving Public Relations 21st - Annual^ Convention Edison Oakes, d e n Institute, in At¬ N. J., on June 3, City, Charles of "I venture to say reasons E. 'salesmanship forcefully Com¬ of pany tion Al- directing good will after ing about Pa., noting of standing of unfa¬ vorable litical for their owner share propitious for the electric power industry to take the lead in restoring and im¬ solid American proving public relations of busi¬ many ness "What it concerns. In presenting this aspect of his subject, Mr. Oakes stated: -I "In V the electric still are But here face we citing frontier human and the and was ex¬ frontier of problems we those human have wholly a busi¬ material nation and in common can agree me First was with that rector of salesmen under Chronicle) Davis L. is now had about 700 Renyx, Field & . Gerald affiliated with NEW ORLEANS, La. Corp. Investors sales he Field Joins Renyx, (Special to The Financial Vice-Presi¬ — Co., Inc. of New guidance. York. his HERE'S took war AN EXAMPLE years of industry's and objectives and "More all particularly, ac¬ of the of a war-time short¬ manpower had brought about fewer and ages alk opportunities to meet fotmWjb anc Restrictions customers. to ir " ° and the use had rationing of mate¬ forced lowering a of service standards and of the read¬ iness beings needs relationships East where until his resignation as di¬ problems, we, as an we of 60 difficult to maintain equipment and thing". It primarily involves human human dent at offices New York. Benedick Mr. The new firm with some benefits accruing to healthy business state. rials not as a maintain 42nd Street, these human close parallel in principles. understanding beginning to realize that a will Exchange. the investment media for us made it fewer and public a as personal planning." successfully those personal rela¬ tionships so essential to proper as others, yet just as real certainly filled with oppor¬ tunity. More and more we. are and is is rity firms. Prior thereto he was a senior partner of Lewisohn & Co., members of the New York Stock of the concept employee and .ovpr understand¬ frontier perhaps not as defined nor as carefully a a use institutions and professional secu¬ ■ tivities charted ness are to 'personal financial planning' as major approach in using mutual funds struggle for men's minds. "It seems to me, too, that there the problems so faced? At the outset apparent that the respon¬ of us. and new a — relations ing — clearly business our opening before individual the final analysis, somehow come to this if to be successful in this must we of senior Co., a firm which he organized provide research services to & the formation of Inves¬ velopment and as in the New York Stock Exchange firm of Kalb, Voorhis partner were we challenge of ever-widen¬ ing frontiers in 'they it enough, dustry's top producers. Mr. Kalb has resigned Planning Corp., "which will devote itself primarily to the de¬ Yet, in sibilities and arduous tasks thrust had industry have long been accustomed to the constant intimate an the opportunity to emphasize the interest of everyone in holding to Charles E. Oakes brought into the industry sev¬ thousand salesmen, many of whom today are among the in¬ eral tors We have not individuals. as under¬ relations community, and out and broad program of re¬ on a customer, time we John Kalb and Walter Benedick countries as a na¬ rather than to reach our establishing industry, present is embark po¬ climate pointed other industry, have American system. others. I think "Just a few years ago a number of companies saw the necessity to1 have been two dec¬ ades of basis. toward bring¬ as better public a those to Kalb, Benedick Form Investors Planning been able to direct our efforts on atten¬ improving well as that one of the so poorly largely been trying to of the peo¬ very them realize that their possible as During the 20 years he has been in the fund business he trained want to hear our story." have fared we tional group pro¬ can toward lentown, there confidence of use close as announce We should all make greater their abilities by more ness. and conclude that it is essential to get influence the thinking improve public relations,' we are not realizing their full potential constructive- Pennsylvania Light have revenue we there is ample evidence for us to the in thus far in the cold war is that we look to them we ducers but unless the Power True load builders and as Presi- t public has and respect. the of Electric lantic the whom companies ideas tried heretofore. ple instructive address at the of public relations field at the local to a greater extent than Pennsylvania Power & Light Co., holds present is propitious time for gaining better public attitude through greater, more effective sales organizations. an member to details level Charles E. Oakes, President of In 35 ' '■ ' , (2543) Chronicle Number 5228... The Commercial and Financial " which with could the met. be customers' Availability and this is and electric ■limunity had become a matter of first importance in the expan¬ particularly true of the industry in which the idea service to the people is para¬ of mount. electric take the mative sion ''V '' "The utilities should lead in this great infor¬ task for probably in no location Many the war the interests enterprise ciation sive. for of want better a self-expres¬ The property of the company more It is customer. his and And the employees work-r-^those personally company buy many he in many and for service in he him. to many cases, receives as a Furthermore, in share owner, he return a his invested on to provide his and others' service. erally he does not it does, of gen¬ this clearly see the system, system, bone But pointed out and as he economic system, the the profit erty is he money turn flowing savings—savings used until The cases. the sees which America private is the however, obscured this ideas and and have today other become there is a great need to restore them to their place. Words in them¬ however convincing they be, are not the answer. The rightful selves, may words need to be interpreted by countless specific acts. "And it seems to me that v/e in the electric industry are peculiar¬ ly equipped local to undertake at this level demonstration in public essential and task we have in BETTER our I of say com¬ panies highly trained sales people engaged in meeting vast numbers of the public every day and in new role Formbrite, Anaconda's drawing brass that proper appre¬ vital of doorknob made helps polish itself. each BRASS an es¬ many under the Holding Com¬ corrpanv Act. pany for contacts the cultivation on good was time. a tr of human I shouH broad scale. industry-wide a great accomplished in a short that say seemed clearly situation The call Yet, while the electric in¬ dustry's extensive efforts pitched on basis national a proved pro- Formbrite*, a superior drawing brass, recently intro¬ ductive^ they served to accentuate the over-reaching importance of duced bringing our story into the home Company, supplies the answer to a in intimate fashion." the Four Points where Four us. "First—The this lead most effective pro¬ takes place at the field community level. company "Se-ond—The sales activities organization erful means relations rn!y a duties of a "ford the of costs more public efficiently, slight enlargement of the of sales personnel dertaken without their lead can To with an vides a is all be un¬ superfine grain frequently permits savings up to 50% or more in finishing costs. In some cases only a simple "color buffing" is all that is needed. sold at no mental increase in stage. price, is Formbrite is in now Formbrite, well past the experi¬ a result of Anaconda's constant metallurgical research and product the poten¬ aid of in such ects program plant already producing additional copper an in Chile .. plant to be built in Montana! extensive modernization in the mills ofj aluminum reduction ... as well as The American Brass Anaconda is of Anaconda's of improvement, modernization expansion of existing facilities at its mines, mills' fabricating plants. This includes new mining jproj-j in the United States and an immense new sulphide) company-wide Company. Through this program. contributing significantly to the vital providing more metals and better metal job products^ •Reg. U. 5. Pot. Millions of pounds have been made, 09.) Anaconda W/re 4 Cable Company a copy of the new and interesting Publication B-39 on Formbrite Sheet, Strip and AnacondA Andes Copper Mining Company Chile Copper Company Greene Cananea Copper Company Anaconda Aluminum Company Anaconda Sales Company through the Edison Electric Insti¬ collect For Wire write to The American not overlooked. should development^ Reflecting the same progressive spirit is and work' The American Brass Company "Fcv.rtv—The electric industry tute superior to ordinary drawing brass. successfully fabricated by a wide range building efforts. regions programs and value exceptionally fine grain structure which pro¬ and manufacturers. detracting from kept fully informed of public tial The Company developed Formbrite, a metal surface far sold and than the metal itself. This "Third—Sales personnel should work sometimes help its customers overcome this problem, American Brass pow¬ a reaching objectives that is needed ard this be drawn products, very often the most or points stand out: motional work for the individual cr stamped expensive operation is the finishing, which all does Brass pressing problem in by Anaconda's subsidiary, The American metalworking industry. In the fabrication of count¬ less the improvement understanding. this because as the of less importance of protecting the rights of the people to own prop¬ erty as basic to liberty. In recent fundamental of prop¬ clearly very well back¬ becomes saw One type these cases the years, as "Now "The founders ANACONDA'S over importance of the customers played in the furnishing of sential public service. In puzzling. . lost, ing from divestment from a parent knows itself and its employees of their needs from his pays had anc concerns. it; see do and sees firm back can who new the there, right where neighbors the problems were com¬ pounded by the imposition of severe financial problems result¬ has been built solely to serve the he in their sensitivity tc years, other business does the American become of employees industrial system that we call free term, service plans of local industries the in of adequacy and make Brass Company, General Offices, Water bury 20, Conn. COPPER MINING COMPANY International Smelting Refining Company and 53273® m The Commercial and Financial Chronicle (2544) but, together with his other meas¬ ures, it provided France with a period of much-needed respite, France's Devaluation Dilemma the on By PAUL EINZIG the recent collapse of the French Cabinet, Dr. on by country at the present The alternative would that be decline a war. respite is badly needed a moment. Einzig looks for another devaluation of the French franc, but adds the solution provided by this move is essentially a tempo¬ rary one. Holds France should be given substantial external aid to inspire confidence in her currency and to uphold her of the eve Such Commenting .Thursday, June 11, 1953 .. the of gold reserve Seaboard Air Line through continued trade deficits and through the evasion of ex¬ The stock market has been a Moreover, the stock was selling at change controls by those who anticipate a devaluation; curtail¬ rather tempestuous affair in re¬ only about 5l/z times 1952 earnings cent weeks. There is ample evi¬ of $20.16 a share and it is widely ment of essential imports of raw to unemploy¬ dence that investors and specula¬ estimated that 1953 results will All these difficulties are over¬ materials leading Eng.—With the de¬ tors alike are in a highly nervous be even better. During the first Government of M. shadowed, however, by the ef¬ ment; a weakening of the defenses the recurring rumors four months of the current year in Indo-China and in France it¬ state and France was plunged fects of the gross over-valuation the transportation ratio continued as to the probable outcome of the of the franc. The French Gov¬ self through enforced economies one of her all-tooon the downtrend and, even which followed each on arms expenditure, and a gen¬ new truce negotiations in Korea frequent po¬ ernments recent years eral loss of prestige and demor¬ have injected a new note of un¬ though maintenance outlays were litical crises. other in office in a As usual the made praiseworthy effort to alization through the evident fi¬ certainty into the picture. Talk higher, common share earnings of important cutbacks in military climbed to $8.26 compared with cause of the avoid yet another devaluation. nancial weakness and instability crisis was fi¬ They doubtless realized the need of the country. M. Reynaud was production regardless of whether $7.67 a year earlier. With the traf¬ importance in Western scheme of defense. LONDON, feat the of Rene Mayer, in May into wrong in referring to the basis of past not far they assumed that France as "the sick man of Eu¬ was defeated any such action would only bring rope." A devaluation would facilitate because, in the temporary relief as the domestic interest of price level would soon adjust French exports and would stimu¬ putting the itself to the lower international late tourist traffic. It would re¬ country on a value of the currency. For this verse the outflow of capital and sound finan¬ reason pressure in favor of de¬ would strengthen the gold reserve. cial basis, it valuation has been resisted, even It would enable industries to attempted t o though it is evident that on the concede some wage increases and introduce basis of the present official ex¬ thereby to avoid some threaten¬ Dr. Paul Einzig drastic meas¬ change rates, France is a very ing major wage disputes. It ,'S ures which expensive country. The over-val¬ would give the Government a were found unacceptable uation of the franc gravely handi¬ chance to prepare the necessary by the majority of the members of the caps French export trade and measures to strengthen the fi¬ French Chamber. This situation tendsi to divert foreign tourist nancial front without having to arose again and again since the traffic to other countries. As a make unduly heavy sacrifices in nancial. The Government «od of the It war. arose in for it. But result fre¬ on experience both the ments and internal ^again during tent iculties the of financial the financial '30's. troubles in diff¬ Evidently, France the adverse aid France's of The tend¬ American re¬ a aid. And in the indebtedness European circle. pay¬ Euro¬ is, however, towards ency that there so vicious the in Payments Union. pean extremely difficult, complete ex¬ Ameri¬ running up the by and duction a some balance of indebtedness an litical stability in turn makes the solution of the financial problem is To Payments Union has level at which any new Admittedly, France has many other troubles besides her finan<:dal problems. An reached proportion of her industrial pop¬ ulation are Communists, and con>sequently strikes of a political ^character are a frequent occur¬ permitted to wonder whether the unduly The rence. ♦stir to up aim wage increase in deficit has In large obviously demands the maintaining franc. is office to be settled another in circumstances recently in to ance to Governments advised held been well stubborn devaluation. resist¬ favor in pressure is which have their gold. one There of can be little doubt of had M. Paul Reysucceeded in forming a naud the value of the This method is practiced also in other the French order difficulties a munist '30s when he constantly criticized the inadequacy of devaluations pressure in proving excessive source war favor of ap¬ remark "too became one words of expenses impose a burden on French Budget which would ^constitute a major problem even late of too and by¬ period. When became Finance it he difficult circumstances. eventually is, together with the re¬ Minister shortly before he devalued the franc quirements of rearmament in with the extent an that little" the historical that less ■(connection the of "'She As de¬ was claims. trouble for reluctantly undertaken by various Finance Ministers. His in Indo-China. French wage jtts In nec¬ to add that the solution provided by yet another devalua¬ essary tion is one. But essentially then temporary a there is French a saying according to which it is only temporary things that last. There is always a chance that the respite may was after franc be a long one the M. by devaluation Poincare as of in it 1926. Simultaneously with the devalua¬ tion France should be given sub¬ stantial external financial aid in order to inspire more, it the war to became such successful, changing to the negotiations are fic outlook still favorable and in¬ the constantly dications of a continuing trend greater operating effi¬ prospects with respect toward truce and confidence Profits Excess have Tax ?kS0, c?.ntribu*ed importantly to the reeling of uneasiness. Railroad securities, of course, have not been these to immune pressures even though most of them are at least not tax At¬ other tribute countries their share should Railroad by the have stocks Bridgeport power station lo-; cated near Eddyville is now nearing completion. The system's generating capability is increased from 32,303 KW to 76,300 KW. This keeps pace with the system demand, 135% in 10 years. which" lias increased Southern Iowa's elec¬ trical future is bright. Day & Co. to it that true is appears as conservative. Drive in Baltimore rails have the rails have generally recoveries assumed railroad mously this leadership. Students of securities pretty unani¬ are of the opinion that no is so far than more proper. It is pointed the in right and " out that earnings current been running estimates and some have year well above earlier that months to ified ar® least at Joseph W. Sener for come somewhat, traffic analysts .°.f the opinion that there is sufficient President of Baltimore. the Bond Club Baltimore The of Secu¬ resiliency in our economy to take up extras the year. in Some Admit D. D. Hall partnership. Mr. Hall is for the railroads managements have income taxes municipal department office, 14 Jones, Cosgrove Branch Coast Highway, under the direc¬ tion of Chester W. Boxley. 25% m Financial Chronicle) DENVER, Colo. —James W. Hackworth has become affiliated rado Building. (Special to The Financial Chronicle) Last staff pany, Bank of Allison-Williams Northwestern Building. Com¬ National J:.. . week announced. road this the has con¬ long- Subject to ICC and stockholder approval the split will be 2V2 for 1 instead of * for 1 that had been expected in most quarters. At the the quarterly dividend was Co., York members Stock has been elected Chairman of the Board of Standard Gas & Electric Co., to replace Edward O. Boshell, who has resigned his office as Chairman. same on time, the old Henry P. Erwin Henry Parsons Erwin, a direc¬ tor of the Riggs National Bank, Washington, D. C.. passed - away at the ness. a of 71 after age Mr. Erwin member in Stock Exchange, ciated with the past wa3 Washington and - long ill¬ a the the of was old firm of asso¬ John L. Edwards & Co. raised from $1.50 to $2. This is at the rate of $3.20 a share annually on the split stock. The stock had advanced sharply to new highs for the year imme¬ diately prior to announcement of the split and increase in the divi¬ dend. Immediately following the announcement, with a combination of profit taking and the general Specialists in Guaranteed Railroad Securities market weakness, the stock had a sizable reaction. While the decline have had psychological rail analysts viewed this as an opportunity to generate new buying interest. By may the end of some many the week of Exchange, an- split-up of Seaboard Air was Levy & New each quarter of the year. awaited Line J. the instead of 15 at least one not been influenced by MINNEAPOLIS, Minn.—Horace justification, N. Gibson has been added to the March 15 and June However, stock Joins J. W. Hicks Co. (Special to The on on Robert J. Levy, partner of Rob¬ ert railroad man¬ COMPANY Centerville, Iowa V ft *.,"•} 1953. v°lui?e has not been heavy. While later With Allison-Williams Utilities year the newly-in¬ rate participated in the declines, it is also true that in the subsquent con¬ with J. W. Hicks & Co., Inc., Colo¬ I owa boutliern even Sener Heads Fund given security markets. these declines have ap¬ parently reflected a drying up of buying interest rather than any great selling pressure. Most of the a NEWPORT BEACH, Calif. — Jones, Cosgrove & Miller have opened a branch office at 535 new basis dividend •Largely sideration. The quite actenzed recent and/or R. L. in the firm's New York Wall Street. Iowa this ground fairly easily in the peri¬ odic selling waves that have char- ian as Denton D. Hall Southern a On creased Traders Association, and civil¬ rity the National Security Traders the slack gesture Association; he was also formerly and prevent any serious decline of solidarity. A consolidation of Chairman of the Southeastern in freight tonnage. It now appears France's debt to the European Group of the Investment Bankers Payments Union would in itself reasonably safe to predict that for 1953 as a whole railroad earnings Association of America. go a long way towards improv¬ will top the most satisfactory 1952 ing her prospects. Such improve¬ level. Such a prospect, in turn, ment would pave the way towards Robt. Levy Chairman of strongly indicates the likelihood much-needed political stability. of quite a few dividend increases Standard Gas & Electric and ager of the With share for the full $22 > obvi¬ # now seems reasonable for earnings of at least look BALTIMORE, Md. —Joseph W. comparisons in the franc at its new level. The with a year ago are almost cer¬ Sener, partner in John C. Legg & role of France in the Western tain to be highly favorable. Fears Company, has been named Gen¬ scheme of defense is one of firsteral Chairman of the joint Com¬ or a let-down in business as early rate importance. It is essential munity Chest drive and United as the final quarter are abating therefore that she should be given and even if there is peace in Ko¬ Defense Fund, which will begin effective aid in her hour of in October. Mr. Sener is a Past rea and the arms program is mod¬ crisis. to • to versy. apparently been deterred lantic Defense there¬ from raising dividends in the first System, it greatly ously under-valued and increases the fore easily defensible. half of the year by the heavy cash difficulties of a This act R. L. Day & Co., members of the French Government. drain imposed by the necessity for did not provide a final solution New York Stock Exchange, on paying 35% of last year's Federal July 1st will admit North it ciency, contro¬ affected the Although no country is in as good a position as the United European countries. Mayer's resignation, his first step States to grant assistance, Britain would have been a drastic valuation of the franc. This M. Reynaud's policy during Another of national defense. Having said all this it is Government following on M. Rene Even where Trade Unions are not tinder Communist control they find it difficult to resist Com¬ France is the the sphere are ments has been offset by of po¬ pay¬ prosperity adversely affected. can are sapt to be the major cause of po¬ litical instability. Lack of of balance quent intervals during the finan-nial difficulties of the '20's, and the not or the shares \yere selling to.yield a liberal 7% on the basis of the new dividend. 25 Broad Street New York 4, N. Telephone BOwling Y. Green'9-G400 Members Nafl Assn. Securities Dealers, Inc. Number 5228... The Commercial and Financial Chronicle Volume 177 say Continued from jirst page of signifying nothing—except an effort of politically minded people who want to "get on record" in case. These clashes of arms, variety or stances •• — basic facts which are not much evidence in in the dis¬ patches which come in wholesale numbers from the na¬ tional capital. Let us never lose sight of the circumstance that many of the measures about which there is now so much controversy are preliminary in basic nature. That is to say, they are designed to tide us over until it has been possible to make a thorough restudy, reappraisal and re¬ vamping of our national policies. Tax Reform f Take for example this business of a six-month exten¬ sion of the corporate Excess Profits Tax. The President has quite specifically said that the purpose of this plan is ; to give time to do a workmanlike job on our whole system Obviously, such an overhauling could not be achieved in a day, or even a few weeks. If adequate plans of taxation. ; be laid for it in time for really constructive work can ; next year, The the achievement will be early no mean one. to be the case ter, discussion. Let time to us come to also with influential men Ex-Presidents postponement of action. Other illustrations could doubtless be found and cited, but enough has been said to make it clear that the Eisenhower Administration is, in a sense, Low some and V. Cup for Foui^- H. Lewis of Bear, Gross—Sam T. Low, both Stearns & Co., 74. Candee Cup for foursome Low Net—John D. Cronin Jr., Shear- Hammill & Co. and R. Donaidl Gibson, Hirsch & Co., 100—35—(Ki. Christie Cup for Match Play Against Par—Hosea C. Bailout son, Shearson, Hammill & Co., and Ed¬ ward H. Robinson, Schwabacher & Co. Marvin Levy, Lehman Brother^ Gilbert Wehmann, White, Co., defeated Enos Curtint, Graham Paige Co., and Samuel O'Day, Northern Trust Co., by ttte score of 10—8, 2—1 (default) in ■„ and Weld & giving the new regime the let us be adamant that it act wisely and vigorously in the end. tennis matches. /■ Special awards were won by Henry March, Ladenburg, Thaimann & Co.; Thomas F. Staley, Reynolds & Co.; A. Glen Acheson, Duryea Bache & Co.; Wickliffe Shreve, Hayden, Stone & Co.; John Jm Nolan, G. H. Walker & Co.; George D. Woods, First Boston Corp. Wright Duryea, of Glore, Forgan & Co., was elected President of The Bond Club of New York for the coming year, to succeed Joseph A. W. Iglehart, W. E. Hutton & Co., who was President during the past year. The election took place on June 5 at the at the other end subject. Again the program proposed is at bottom one of new gov¬ Winners in the golf tournaments With Paine, Webber Pennsylvania Avenue—and wishes time for his new staffs to restudy the situation and arrive at independent conclusions of their own. Meanwhile, apparently more funds than the Air Force can spend in the interim are already available from unspent appropriations of the past. • of were: of Obviously the proposal to renew the Reciprocal Trade Arrangements Act for another year is of the same stripe. It may be that the President is in this case somewhat more fully prepared with ideas as to precisely what ought to be done, or he may not be, but the fact is evident that influenfial members of Congress are in need of considerable edu¬ cation or coaxing if they are to come fully over to the ideas which the White House is supposed to have on the board Dickson & Co. way; New York Bond Club Elects W. the Lawrence Bogert, Jr., Eastman, Dillon & Co., Hudsoa R. Lemkau of Morgan Stanley & Co., and Edgard J. Loftus of R. SL ..... 11 be reasonable in of ernors—H. many get under was elected Treasurer. members other issues of similarly basic nature —the iniquitous Securities Acts, for example—but these are the ones which are involved in matters currently under are Weeks The club also elected three in general is to be said of the much publi¬ cized reduction in Air Force appropriations. The Presi¬ dent, himself an authority in military matters, has a new set of military advisers coming into office within a few weeks. He is evidently not wholly satisfied with the views and appraisals of the old Chiefs of Staff—as is well known same There * ./■ & Mr. Secretary and Dean Wit¬ Jr., of Dean Witter & Col was grips with this idea of soaking the rich upon all occasions when it undertakes to redesign our tax structure, it will miss a great opportunity and, we venture to say, lose much of the standing it now has with a good many in the community. We can only express the earnest hope that the Administration when it gets down to reshaping our foreign trade policy will be able to formulate and obtain support for a program far more realistically based than any that the Republican party has sponsored in modern times and any that has found real support from the New Deal or the Fair Deal. What is taking place now appears to be more a postponing of these real tests than anything else. They must not be evaded when the time for them is •_ Hornblower succeed of If the Eisenhower Administration does not here. Ralph elected of themselves. care Hornblower, Jr., of Quit Soaking the Rich! whether of the Pickwickian not, are of interest. In fact, in different circum¬ they would be definitely diverting and even amusing. The thoughtful observer must not — and probably will not permit it to divert his attention from certain . taken-the trouble to take to Duryea. compel the rich to take care of the unfortunate, the improvident, and the incom¬ petent—to take care of them in a way that they have never 3T Vice-President from time to time, particularly about ways and means financing these hand-outs, and it will soon become evident that the basic idea is to It We See *.As (2545) (Special to The Financial Chronicle) HARTFORD, Conn.—Edward T. Carr has been the added to stafC of Paine, Webber, Jackson & Cur¬ tis, 111 Pearl Street. L. P. Kilgore & Son Opens JACKSONVILLE, Fla. — L. F. Kilgore & Son is engaging in a securities Duval business Street. from Partners West 42 L. are Harrison Haverbeck H. R. Wright Duryea Macdonald R. Hornblower, Jr. Harrison M. Haverbeck, partner Club's annual meeting, which Day. ' was Ranald H. Macdonald in Harvey Fisk & Sons, New York City, passed away June 5th at the age of 65. held in connection with the " Bond Club Field of Dominick & Dominick elected was ... along, and is not fully prepared as yet to global plans. In all fairness, it would appear to us, it is entitled to a reasonable time to work out its ideas and to convert its party to them—so feeling its far way forward come with its conversion is necessary. as But from the longer view, the most important fact to from all this is that the real test not only of party strength and party solidarity, but of statesmanship of both the Administration and of the entire party, will come some emerge months hence, probably soon after the turn of the year. Take the matter of taxation. The Administration and the Republican party, if they are to show themselves really equal to their opportunities, must face such issues as that involved in the wholly undesirable Excess Profits Tax, or the rate at which individuals generally are to be taxed, ^ and the other more detailed questions which seem to be 7 absorbing the attention of the rank and file today. But these are only parts of vastly more important considera¬ tions which must not be allowed to go by the board when the question of a full overhauling of our tax structure is to the fore. long under the spell of New Deal and Deal semi-socialism that we are in danger of for¬ We have been Fair so getting some basic and vital Americanisms. One might al¬ most epitomize New Deal and Fair Deal fiscal philosophy in the words: "Soak the Rich and Spend the Proceeds In tax matters this concept of statesmanship the form mainly of income taxation so "progressive" be all but confiscatory in the higher brackets. This Lavishly." takes as to 76,090 Partners aren't etwqh I £m In the past seven years, through much of the program Dealers and Fair Dealers—runs through it in an so we our Partly our possible as it professionally. Study what the social security movement have to goal is an now may goal is someday to have home-town leaders in the so-called And Already, three out of four of shareowners as eagerly ever-increasing Actually, im¬ sound, every Then truly industry in we our full our Of these, currently, two out of three are Here customers. are real benchmarks of progress. Within the framework of such new name on bit live in Pennsylvania. home-town interest increasing number of shareowners. a attention of all but those who follow seek. always did. of the ..New to escape the we look forward to each partner, too. way goal stockholder list every as we But this amazing 76,090. is still far from the a a & Light Company shareowners has risen from basic idea, moreover, runs such matters more or less alone, the number of Pennsylvania Power 36,998 to Too Much New Deal P. Kilgore, Sr. and L. P. Kilgore, Jr. vestors, lies utility's numbers as reflected in of local in¬ the business-managed greatest opportunity for positive public relations.. .and for customer the would be with subsequent growth that comes public confidence. ■ J every way. l^Miisyly3«i3 ->8Liqkt Company rmoV 38 The Commercial and Financial Chronicle (2546) ... ' Thursday, June 11, 1953 1 from 17 page ' ' ■' ■...<• Continued v until after the date of the transfer of the assets to the corporation in Bank and Insurance Stocks By E. H. exchange Infezesliitg Tax Rulings And if he again took advan¬ Bank Stocks — having his wife join in the gift tax interesting report entitled "The Case For Bank Stocks— 1953" was recently published by Kidder, Peabody & Co., 17 Wall Street, New York, N. Y. ; This is the 1953 edition of a similar study on bank stocks made At time, the use of trusts gifts, including the $3,000 gifts, was very popular. one to make pertinent facts are presented on 28 of the major financial institu¬ tions throughout the country, including 14 in New York and 14 in most annual principal cities. of the Kidder, Peabody report is April, 1953. Al¬ though there have been a few changes in the data presented since that time, the fundamental factors still apply and the opinions are still believed valid. Therefore, we present the highlights taken from the report summarizing the position of bank stocks. gifts of hence do this and the higher interest rates indicate subject; it may be higher at Dec. 31, 1952 than for any The would first previous year-end. The interest rates earned on loans and invest¬ upward last year, and reached their highest point in December. Hence, earnings from loans and investments in the distributed to current year accumulation each should be above 1952, even if there are no further increases in loan volume or investments, or in interest rates. The gain in income due to these factors should more than offset any increase in expenses and taxes. "Present dividend rates appear secure. Last year, 12 of the 28 banks included in this report increased their dividend payments. In spite of the increases in disbursements, current dividends for any stated on book values do not include substantial reserves which ment. be been appeal in a corpus can opinions and supported be seen, are a Darling Director J. Darling, Jackson been elected & director of General a Telephone Corp. of Pennsylvania, of the major units of the Gen¬ York exchanges, W. ciated York With F. I. du Pont Co. to The Financial Chronicle) LOS ANGELES, Calif.—Edward K. Roberts has joined the staff of I. du Pont with Madison Telephone system. Francis & Co., 677 South Figueroa Street. be can the ave¬ is open under present law to eliminate taxes gift substantial and taxes three for estate generations portion has that Agreement A well Not known is ment of on them Avenue in an person's a office best to Compete business described up competing a at least defer for of time. self as which as an deductible New if or, not Paine, Webber Brch. ASHLAND, Wis.—Paine, Web¬ ber, Jackson & Curtis has opened a branch office at 212 Second West under the direction G. St., be treated NATIONAL BANK and of INDIA, LIMITED Bankers to the Government in Officer 26, Bishopsgate, ; London, E. C. 2 New Members American York Stock Stock Exchange Exchange 120 BROADWAY, NEW YORK 5, N. Y. in India, Pakistan, Ceylon, Burma, Aden, Kenya, Tanganyika, Uganda, Zanzibar, and Somali- land Reserve Telephone: BArclay 7-3500 Teletype—NY 1-1248-49 (L. A. Glbbs, Manager Trading Dept.) Specialists in Bank Stocks Protectorate. Authorised Capital-. Paid-up banking £4,562,500 £2,281,250 £3,675,000 Capital Fund The Bank conducts and every the trie cor¬ insolvent and the tax deficiency. excessive liable the a to tax defi¬ then employee claim for refund. had and corporation's The became payment transferee as filed The Commis¬ description of exchange business. Trusteeships and Executorships also undertaken the as the then be corporation pre-existing tax lia¬ the government creditor a Tax Free of Transfer the cor¬ Will Not Net Oper¬ a Corporation to Another "When business a state to one from moves another, sometimes it becomes advisable to change the incorporation of the com¬ pany. Thus, for example, if a business incorporated in New state of York for years had its plant in Long Island City, New York, and then moved the plant and offices to Trenton, New Jersey, it might that it would be practical to seem tion, to in the excessive compensa¬ transferee, I the of being as a really a trustee compensation was received." The The tax the for reason obvious. dispute taxpayer rate in was in bracket is thereon at annum. However, the 6% per Supreme against the held taxpayer, compensation under claim a have to pay it back was not expense; went to expendi¬ the of the arisen. of rate of right. He had the right to use it. The question of whether he might ever This As a general rule, it may that amounts paid for not to compete expenditures be amortized ratably of the agreement. which over then, might and Hence, the the never victory Commissioner. well in the next year or two. Individual Transfers Assets to net a forward as one Many be offset against any profits made Therefore, it isn't that a corporation having a operating loss is liquidated or often net its business transferred study being made how the net operating loss may be used up. Often sell if times the it an shell isn't effort of the otherwise operating loss of the tion cannot poration. be This Supreme and an are agree¬ taxable ordinary income; except that if agreement is given primarily for assuring to the purchaser the the beneficial enjoyment will of the good transferred, then the agree¬ be used. new corpora¬ many of cases which this come simple overlooked cor¬ by years dealing up point by The indivdual back held so ruling has not changed since. Yet, it is really surprising to observe the number an proprietor, their assets in corporation as a so fre¬ so old corporation and corporation are treated many. the new or such formed business to by them a in up. in bankruptcy reorganization Thus, where the com¬ cases. tute for compete to the undertakes to made carried Court pany is in financial not is corporation* to was corporation. ment without careful exchange for all the stock of the as four years to as as ktwo the partners of separate and different taxpayers. The problem co-partnership, will transfer all equally comes sole a times be may and carried year much for the deduction for depreciation. From the recipient's viewpoint, carry . in those years. quently for Stock? than subject loss backs. operating loss carried back with the Corporation in Exchange may will, operating carry too con¬ Probably everyone who is con¬ scious of tax consequences knows that ago, Claim Against Corporation When But if the pay¬ non-severable from the good then the payment is not net and it as the the life more often overlooked insofar overs conse¬ all are done about it an is nothing compete tax act against the profit of the old for to real this be worthy of correction by Congressional action; and I would not be surprised if something is Does Government Have Transferee for the agreement not the of But the fact remains that the net inequity in the law would be ment made But sey. cerns saying that taxpayer had received the ducting the business in New Jer¬ a the compensation—and, in any event, if he obtained the re¬ fund, he would obtain interest Court this way, it will not be necessary to have a foreign corporation con¬ quences are hands liable excessive known compete" are the because payments received Branches Members of Hence, the employee who received the have part of the transfer of good will in the sale of a going business and Kenya Colony and Uganda Head payment became the obtain seller. stated Main. reason of value ating Loss Carry Over or Carry Back From One Commis¬ by ' of Har¬ BANK Laird, Bissell & Meeds to to what extent they be amortized. A reciprocal question is then presented as to how the payments received are to capital STOCKS or may old INSURANCE not business ordinary capital as they then tures, re¬ certain period a made are "agreement 655 City. New that excessive poration the Then, claimed stock same Ordinarily Permit against the excessive agree¬ The question presents it¬ to whether the payments asso¬ in the a obtained earlier year when he received the agreement is customarily made one man sells a business to start their sioner a agreement "not to compete." Such Harold become Therefore, was higher agreement Bell But it unequivocally that if is properly drawn, the trust nue Exchange and other announce Freedman cessive. A partly ex¬ tax defi¬ was of the poration. determination that the a received said Co., members of New Stock taining compensation paid of the life interest. valuable Joins Hirsch Staff Paine, Curtis,' has the Commis¬ cases, sioner said, "You have a right to claim a deduction and obtain a when Hirsch & of In sioner had been successful in ob¬ ciency. of The another; and the purchaser quires that the seller will Nelson of these reason form a corporation in the State of New right to terminate the trust or to Jersey; have a tax free invade the corpus such as for the refund in the year you paid the transfer of the business from the support of the life beneficiary, or transferee liability." But the em¬ New York corporation to the New to pay over the corpus to the life ployee said "No—I'm entitled to Jersey corporation; and dissolve beneficiary, this impairs the value a refund for the year in which I the New York corporation. In the Kidder, Peabody & Co. report, because of interesting opinions, is each further. the transfer The received corporation, assumed bilities, still and as transferred. Of course, the transfer of the assets to on vmnM doctrine but rather beneficiary. if Supreme Court push this inequi¬ interest life by study for investors interested in bank stocks. (Special the had table pay exclusion, of • statements its fundamental character and eral annual value under the $3,- comes structure what¬ long assets the by the claim so unimpeached. payer a Courts says that if anyone has the period historical data going back to 1939 in the case of earnings and dividends and 1918 in the case of stock prices. In each instance detailed statisti¬ cal information is presented on all of the individual equities. N. J. it estate. These one above, decided cases would not pay example the primary life have considerable attraction for con¬ servative investors interested in a fair yield and possibilities of Webber, first the "Bank stocks appear to As the 000 have prospects for relatively stable earnings in recessionary period in general business activity. price appreciation." Beneficiary, Beneficiary can have the any time he wants it be¬ trust which banks or owner but the trustee Two recent or be would be that the individual tax¬ able income. This problem controlling stockholder how member of his family. it belongs to him. In the dollar. "The stood in fact, "compen¬ compensation is tax¬ pre¬ It would no for such taxes ever a is not the value of the gift to the inflationary influences, such as the last decade. Since 1939, for instance, rising dividends and the increase in stockholders' equity have largely offset the decline in the purchasing power,of leveling Mr. employee must in¬ would have is Mr. to ment was, and which view that the govern¬ my general compensation corporate sation" the tax liabilities on individuals existed the transfer? the for the because it assets, can invest the trust collect the income and piy corporation. cause marked by a paid, but the of clude in income the entire amount ciency and selling at about their lowest ratio to offer substantial amount of excessive of bankruptcy. Does the government have a priority claim in the bank¬ ruptcy based for corpus more over deduction a corpus, "Since Korea, the market price index of the New York City bank stocks has risen considerably less than the Dow-Jones Indus¬ appear obtain significance can be better realized should the corporation thereafter go into The problem of disallowance as not particular this the right of invest¬ example of this would An same expanding demand for equities of the type by fiduciaries and other investors. Under present tax legislation, the investment by corporations in bank stocks provides a substantially higher yield, after Federal taxes, than high-grade corporate bonds. Corporations owning bank stocks (or other common or preferred stocks) are allowed an 85% divi¬ dends received credit. Corporate bond interest is fully taxable. stocks The Compensation corporation instrument which says an the Man' "Bank . closely held and the employee that the gift is made to Mr. Benefici¬ ary, but Mr. Trustee merely holds "There appears to be an trial Average. Bank shares are to this average since 1918. Receiving is no so- a The, only claim, in would be by the gov-?, against the stock received right be or whether, assert can case, usually only arises when the corporation matter no be must can the use a The second would be a a trust where the bene¬ might have established by the banks. Assets are highly liquid and include sub¬ stantial amounts of cash and U. S. Government securities. ; 'Prudent or to beneficiary income of of the trust corpus, The have the life ficiary is in fact the real Other dividend ultra-conservative basis. an gift a income the purpose, worthy. gift to be and there year; invade to increases, therefore, appear possible. "The yields are fair. The continuity of income has been out¬ standing. Consecutive dividends have been paid for nearly threequarters of a century on the average by the banks under review. are where trust The Courts have clear-cut channels. two ments trended "Book values of future used. indicated doubtful their corporation. such not and is faith good defraud by the individuals. Excessive drawn are it in to government ernment Problem The that it may be said that if the trust is properly drawn, that the outlook for bank earnings is favorable. only 58% of 1952 earnings. they as Under called transferee claim against the interests, a deduction for tax purposes of qualify for the excessive compensation paid by a $3,000 annual exclusions. In the corporation to an employee is well It last year there were quite a few known. usually results in a double tax. The corporation can¬ cases coming before the Court on and date the 28 banks represent held Courts the trusts create the other "Loans outstanding were then But stock. by the individuals to intent creditors, the transaction. the the • corporation ques¬ could transfer, in the tion really is whether the agree¬ example given above, $54,000 each ment not to compete is actually year instead of $27,000, tax free. dealt with as a separate item in larly useful to institutional investors because of its. basic nature and the opinions expressed. While the report is concerned with bank stocks generally, "The large loan volume The nub of the made was without return, he firm. It is particu¬ in each of the past several years by the same tal payment. for circumstances, if the trans¬ the ment is regarded as non-severable tage of the "joint splitting" pro¬ from the good will and the pay¬ visions of the gift tax laws by ment received is treated as a capi¬ An The fer JOHNSON tax. This Week these business The will assets often times consti¬ taxes tax against the liabilities as¬ a claim individuals which arose prior to the date of the transfer; but which were not to difficulty and reorganize in uncovered a Chapter 10 proceeding under the National Bankruptcy Act, the Thereafter, question frequently presented the government will assert for the substantially the only real sets of the individuals. for in formulating the plan is new or whether in a corporation should be formed old corporation's ^capital the structure, etc., should be changed. The a net better judgment, if there is operating loss to be availed Number 5228 Volume 177 The Commercial and Financial Chronicle ... 39 (2547) .'Ml: turn was filed it was false and penses for traveling between his These are but a few of the tax lated eauiDment are estimated at fraudulent; and facts which oc- home and place of employment changes which are being studied S127 630 000 in 1 vn and of, is to use the old corporation —and not to form a new one. ■ nV later on, which taxpayer are not deductible, and also, his in mind on this subject are: had no reason to believe would expenses for living at the place In one tax court case, the cor- occur, cannot be used to make a of employment are not deductible, portion was m the glove manu- false return a true return for pur- The reason for the rule, accordfacturing business when it had poses of criminal prosecution. ing to the Tax Couprt, is that "for A few additional points to keep curred •. , , ^ corporation The ' ers. The Professional Man Gets was sold to new own¬ corporation, changing The into * the In a pense. of permitted where the cor¬ charter corporate original the reversed -. deductible business expense. In this case, an attorney, a member of a law firm engaged in this cause ■ successor rpbe' Commissioner solidated companies cannot be carried forward, and the net op- ReVenue statutory merger, there which continues its cor¬ porate existence to be carried for¬ company But merged the corpora¬ right the to solidate lutely Don't is: problems dissolve, or necessary making fund of — the merge, conunless abso- but company one of many i a M! incidentally increased his learning in general and in gained that the gense consider subsidi¬ over-all professional need to inthe expenses in order to per- cur current staTus the overshadows that in Relation to Fraud and Deficiencies in Prior v- the y-y*:} that Years v.; law clearly says operating loss is to be carback or carried iorwara, and pack or cairiea forward anu tax net a ried rieq be-a later as if the earlier or vear as the case may be, .year, as tne cas y it were a loss actually occur¬ deduction m law inK1 teature*:: profits etc shall make a return 1099 Form nn such of oavment. . taxpayer of actually had a larger income the result that his tax was 1950 with the Uli)ttau ui. .; instead . of $5,000 -r-/but but only the $5,000 tax was reflected in his return when he filed it on March 15, 1951. And let us assume that the net operating loss in 1951 when carried back was large ,iUUW $10,000 enough to eliminate all its and all the tax Nevertheless, has pay the prof- liability in 1950. the Supreme Court that the taxpayer must held interest on the $5,000 of taxes originally failed to re- which he ,l? • 5- + + i " eliminated ally where , the taxpayer was " indicted turns. for filing a false and fraudulent return. At the time of that the net operating loss for a later year when carried back to the year of the tax return on which he had been indicted, eliminated all net ineome and all his tax liabilities for that year. Therefore, he arth^ 1 trial, he proved gued, how from stocks of in additional several subsidiaries to as of well its as ^ received from the sale of their common stocks to meet part of the estimated costs of their construction programs, The nine utility companies which comprise the parent company s operating system supply White R. William Hornblower White, R. William ^ Weeks, New York City, was elected an officer of the New York Society of Security Analysts. In the "Chronicle" of June 4, in reporting the Society's election, a electric service in seven southern and midwestern States, serving over 2,000 communities with an estimated aggregate population in excess of 4^2 million. The name- cut of William White of the Lackplate rating of all generating awanna Railroad was inadvertent- closing loopvP/ matters genuinely Continued Some . . . R„rpan i' ' - „ from page 14 include the Bnsiness Ontlook Dubious think* that manv In Second-Half of 1953 il- foe Bureau thinks that many 11 logical discriminations have de- v-loped which should be correct- tent and at such a rate the sum that today total of this item, which contributes to the uncertainty on the part of the lender, which in It has been said with complete tors> co-partners, professional men an ine asseis or au me savings anu undoubtedlv be loan associations, 60% of all the the not too distant time deposits in all the commer- accuracy that it makes no differ^ The fai|ure q£ ^ fint aial banks and 30% of all three ence how the money was obtained as long as no one wants it back. ]gw £o pmnit coverage of the together. When that time comes, it makes , soie nroorietor general partners, proprietor, general oartners . . Alarming Growth in Consumer professional. man> etc., is; one of the outstanding gross inequities of Debt raPid depreciation of investments in capital improve- all the difference in The sumer debt growth in short-term con¬ debt is the most alarming increase with which we are more the world. impact of all this on The managers the of the thrift institutions reasonably apparent. be should Today's high level of business is ^ptwpa^pnm" that they are vulnerable prompt to any vp wp arp f>nm~ extent whatever should their use and misuse are too well r. nvmpn Inttr ml"^tvynf retronehm^t81wh.Vh f'S w ™»«le« production ana less em. nnt . .P ^ lllcSCaPaDlC IS I1UL UX 1 IbtJlI 3. SC*" 1 known. , Exemption from tax on earned income by individuais who spend at Ieast 17 out of 18 consecutive months in foreign countries is in for some Unn'nr,lltr nwnn+a/I 4a This possible change. tirnn was am. basically enacted to en¬ an ployment and yet we are com rious matter. By definition, Travel Expenses Between Home courage persons with special tech,And Business nical skiHs to accept employment a re^f One of the most constant ques- in foreign countries. But advan- level of activity it is IpJSi to a normal level the managers of the thrift institu¬ ordi¬ tions to exercise more than nary caution in the maintenance "•<= ■—■=.■— Qf liquidity and loss reserves. This could prove to be the cheapest insurance policy such an institu- titution over Summing sion: The took up qut. the entire discus¬ Administration is con- ot acPvlty ana Js nfaltdy* A ae' . ^ ^ . highly paid individuals whose pression is a retreat from a nor- fronted with the problem of wor^k in foreign countries is clear- mal level of activity to a subnor- accomplishing a slowdown and ly of a transitory nature, such as ma* 1e v e 1 0 f activity and is avoiding a breakdown. Managers moving picture stars who will in- unhealthy. It is extremely diffi- of the thrift institutions could find tried for he is working there. It is quite sist that their pictures be made cult to keep a recession from run- themselves in serious difficulties could he be pay . Security Analysts trie tions which comes before the Court, particularly the Tax Court, for decision concerns the expenses which a taxpayer has to travel to another city and live there while tage of the law has been taken by taxes which he unfortunate, but the Tax Court in Europe. ,ning into a depression, particuThat seems to make continues to repeatedly hold that, f wiucu uitume credit emia ana larl Earned income ueau. Child and , , • -4. i. f i»_ the recessl0n itself prosense. But the Court threw out where the taxpayer's home is in Dependency Expenses of working duces any substantial number of the taxpayer's argument and in one community but his place of wives. The 3% annuity rule, etc., debt defaults, every one of which effect said: At the time the re- employment is in another, his ex- etc.failure didn't uw<=. owe. uiuix UfLU*, Afi:*,**.. n If 111b Kb W11116 UITICGr Of J!,? ' law tried and mg dUrmg the perl0d- in part con¬ presently confronted. In 1945 to- being sustainedexpansion. byWhen tal consumer debt was $5.6 billion tinued credit _.W(lllowu and instalment debt was $2 billion ... . .. mugt demand of that total. Today the total of decreasP'and we ^ill be conconsumer debt, as: just stated, is fronted with the problem of over$25.7 billion and the total of in- Droduction when debt reoavstalment debt is over $19 billion. £ exceed credit extensions These debts are short-term debts. th f , m have tQ CQme Qut They must be paid in varying savin2<? or out Qf current Durment to have taxpayers file in- tal tax revenues. periods of from one month to eLslnErfowL No one knows the formation returns. While the BuExpense accounts are under three years. To pay thern out of exten^. to which today's savings reau of Internal Revenue will re- ci0se scrutiny. The advantages of ^u-r^ent wa must have no are vuinerabie but the mere fact , he and share crime. Where the Jli0 i?.!!16 indictment only / referred to Form 1099, the indict- ments> plant and equipment, or ment was defective. \ at least a higher initial depreciaThe significant feature of this tion, is carefully being studied, case is that it is apparently the The granting to management of first of its type to go to the Su- greater discretion in the timing of preme Court. Also, it demon- depreciation, in the long run. will strates the constant vigilance on result in the increase of total inthe part of the Treasury Depart- vestment, national income and to- duce its personnel by about 460 employees in the Processing doesn't Branch at Kansas City, this will have to pay the taxes at all. not hurt the Bureau's system of Along similar lines was the matching information returns holding in another recent case against individual income tax re- port and pay, notwithstanding the fact that the tax liability is actu- ended stock of Ohio Valley Electric tbe decision the . months Corp., which corporation will supply the power requirements for the ^Atomic Energy Commission's project in Ohio. The several operating subsidiaries will use the dedsinn^s that the wilful the tax law* ' v is ^ file Vnrf 1096 is a () « The necessity for Permitting to Form "f of a company proceeds of so-called first being studied, fringe benefits is among the , was N. Y. investment for those exceeded of certain types of payments, such wages annuities as rent, salary, wages, annuines, or fixed or determinable gains, a 12 31, 1953, amounted to $21,- i _ or more split 10, 1953. of the parent com¬ the for two-for-one to purchase $4,000,000 in common The entire tax treatment of pension and retirement plans and $600 a of making tax laws plants included in the system to- . . , , ,, , . wrm_„ equitable in years,respects. Over tals 3,032,271 kilowatts. for addi- ^ inse^edwhose correct picture is all the number of tures by subsidiaries Expendi- R. White, for that of Mr'W/lliam the last few J* thTtU iaw« whirh 1 y iui auui- » chanSes ln the: tax laws which tional generating capacity and re- given herewith. have eliminated inequities- have ■ . ■■■■t>*- <.,*p payment to another of in any calendar year making cents made wnc !j>D, holding the use operating The Bureau has ruled the year the treasure trove holes. n suppose vainp value utility common necessity $20,000—the loss for 1951 is carried back to 1950, thereby elim- But sale and the taxpayer to legitimately avoid taxes by finding new and differen^ l°°Pboles in the tax law. At the same time> the Treasury Department is constantly exercising viSilance to close up these loopboles as rapidly as they are uncovered.'■ Yet, at the same time, Congress is not unaware o e 5b Ui lyT" * " " "7aririrPWR of' the the names and addresses of the payee and the payor, amount and inating all profits for 1950 and kind of each payment Form 1099 also reducing the tax liability for neednot be signed but Form 1096 that year to zero. The taxpayer must be signed by the payor. The Vioo thof would therefore get back his $5,- /Supreme Court^has held thaUthe 000 of taxes if he had paid them, wilful failure to file Fo^ 1099 is . , n it, according to a Department regula- under consideration require that any person following: tions will at all times for the tax man Returns Information The studipd feature" nar par law 41 J£ootr Vrii Rn np?Jh»^ 2 'J ' ^ per share b£Sed °" the average number of shares of common stock outstandHurW tho nprinH common curities Corp. Tax chanfes Be,n« Studied personal aspect decisivp declslve on pany 800,000 Company "to First Boston Corp. and Union Se- There is the constant struggle so March ™ent firms headed jointly by The to be decided by the Courts. Treasury Thus, if a tax- ring in that year. the ttie and made by a nationwide group of invest- llf,*. the is reduced to possession income is received to the extent of its value i*1 United States currency. But whether the Bureau is correct is a question which someday will have rpMrd tn Hup of Electric and stock SlOCK, partment. that in of yesterday (June 10) at $29 recent ruling of the Treasury De far Carry Back • the tne i* 1S it 11 Loss Operating Net of Effect with hie; wnrk fnrm dated returns. ' acquiring of think ? that we ary of the other and filing consoli¬ . CQst personai expense* but the immediate it may be a to ^answer expense his the merger, The such that come taxes on wen adapted to professional auty to keep going trade or business It may be," the Court went on to say"mat the knowledge he thus will forward carry that way fill his loss which occurred prior to any a testing and individual who finds treasure has to pay Federal in- sharp the tools he actuallv used in which loses its identity lose said Appeals 4T prior to the merger of the ward. Internal position training is personal in nature and not deductible. But the Court of carried back. nothing which would prevent the, net operating loss which oc¬ of the lodging. taking of special courses and erating loss of the .new corpora- is and board took tui- for dollars than distribution The 1909 share, was made on June 10, a 2V2% stock dividend additional shares of American Gas Treasure Trove taxation and in that connection spent hundred better canacitv 1953, and followed March Public The lucky a course on erasing losses of the former con- tion for their was necessary practice, attended travel, curred much jury, a would This per Net income rax Court. a vearsince amounting of Amer. Gas & El. Go, issue before the Tax him to keep cur¬ changes be- tion, a be tax laws and severai But in with Court, general practice, and whose part¬ corporation is deemed a n©W taxable entity; and as such the op- tion cannot be and necessary on •, ordinary an as relied upon new ter chance of having the deduction stand up by paying the tax, anu seeking a reiund by a suit in the United States District and said that such expense is properly rent ... Tax Court ea^ Bankers Offer Stock Where a question of this type arises, and the amounts are substantial in nature, a taxPayer would probably have a bet- courses "learning" his fncfease changes may be expected Ex- bv 1 000 000 kw caPacixy haustive hearings by the House Di'vid^nH* nn ih* Ways and Means Committee will common stock have hPPn place of in nature. to date? The Court un ners . the keep was pay license fees. Where there is a statutory con- solvation, to of failure to because terminated gen¬ Appeals for the 2nd Circuit has now poration's business was taken over by a reincorporated company, the formation having the effect of merely extending the charter of the.,old corporation. But a carry over was not permitted where the who attends man order current and District Court Case, a carry a over was is education considered a personal ex¬ But what about the pro- fessional jn of cost erally profit which it carried back against the prior loss. This was held to be O. K. because it was still the same corporation. made generating ministration in Washington. Many the system's purposes his at Deduction A corporate name, then went jewelry business and the' Ad- 000 in l!»4 which wM new the man's home" is commence on June 16. Altogether employment and 40 different topics will be taken any travel expense he has to go up. between his place for employment and his "actual home" is personal tax The capital stock of the its loss. and considered under the .. even in a slowdown. The policy ~ 4.• i of conservatism is always §ound. 1 Under existing circumstances it is imnerativo. i-KL^ 40 The Commercial and Financial Chronicle...Thursday, June 11, (2548) •" \ • ■' ..... - yv -.''"y ,■ /■/'■ . and Fourteenth Amendments pro- aaIv Ilflllfvf • •. , . 1953 ' • . the theory that the Fifth policies of the companies, the in- accept 15 fmm >nnnp jiuiil pujv l^onunueu, ■ .. industry it is the steel skeleton of jury to the public and the inves- a new generating station rising Hon ll6W MUa Hi V ■«■ A«v IllllY Hvljllllllllfll fiscation resulting from from con- serious. have indirect, is no less against the sky or the long slash V* 1In!■■ fill ably low property has tor. must tected utility regulation It although intelligence | 1 11 unreason- rates, between erated ing and discussion as is found on appellate benches. The duties and functions of today's Commissions are only too well-known to this audience. Because their decisions affect all concerned, so vitally, only a wellinformed Commission adequately staffed and compensated should make the key decisions. These metl need not a11 be exPfrts in tbe techniques employed that is, in organic legislation who administer Acts under which Commissions operate itiation—the the »ius several the relatively ineffective powers to strong and sweeping delegations, in some cases approaching the limits of management of the property itin scope from ranee U Tf is there that frIlp ic some- annealing to man- on of enough confidently. It must have independence enough to judge fearlessly. As is well known to utility lawyers, public utility regulatory agencies in their opinions are deciding questions of law which within very broad lim- opthe to hand and the ceiling of un- 0ne reasonably high rates on the other, Broad as these markers have left the path, the final responsibility our persons basic The it this floor 0f marking the proper line where reasonableness lies in a particular But this duty of revenues which are sufficient for by othef considerations which the responsibility of the Com- many the a^aJiablena rendm-in/ -controls, the tremendous size and Investment involved, the wide- E*? «iomic power without checks and nnd P th t fth<Mrver difficult problems begin lo emerge. ^thl ^vkir^lcv^ yd t and staff ofsoundiudg- men lir,ouestioned inteeritv as opposed to, for prospective the debt ra- structure itself, to name a exam- The danger is, as Arnold has said, "that the Courts. are can befall rpgulatnrv pvnpripnrp 'Commission or hgforp member a of staH is fuUv conversant with necessary per- free people. The between bureaus and a the themselves that interests blllty every matter before ^ a uouna poWem \ « As Iflrn «iw 4.u of part the structure siruciuxe, Commission • . nce anT1^1eSS1utUSityr0industry Qf • i. 4.* administrative however nowever, utilitv utility a a suspect of harbor- is their respective cautious lot are a the utility field. a it. policy, however, the confidence . °fy in 1"suan?e W1rtth a ^ust reputation for enforcm contmue of rate conservative fair and sound! t(J lng consequences ' i ;h the decision long after it is policies, capitalization ratios, financial reporting and accounting ren- derrAed' Jts responsibilities there- procedures to name some is of ^e' ar^far greater than those of first importance to such a deter^any ^uris ^ mos! Proceedings mmation. The investor knows E Commissions guard where he stands. The company f c"arged. More and fhl?r with Pr°Perly financed and healthy » structure, ably designed to nersonnel nolicv and peisonnei ana Pullcy which wnicn from experience? How can Commission5? exnect to attract and commissions expect to attract ana comes retain experienced personnel Pricmg their ... .« th t o «rpatpc.t WII1Ln W111 promote tne greatest volume at the lowest unit cost con„isl.pnt un- ith mu;_ conn'H i_ - pponomip j u interest stops at the last line of the income ^ment is being changed. True there are many factors between the utility operating income and the net after income deductions, SU aCf ca?.lta atl°" and management policy. As time goes by, in investor State of Connecticut, the capital structure of the com- ?fr h^ta^rnor mdust y'and interf tdrfered, the industry ana tne services at rates the traditional more however, investor's attitude that his the trie i Now, the investment counselor and the investor i k can bound by red tape." -are company seeking the money must pay for it. And need I remind this audience of the impor- Ula**JS *S ?• c?ntjnuinS process the company is probably the greathp5nMMiSS1Mi%vf0n*Cern 1S es?,single factor. A Commission every ably and effectively are Mil'er oT^Z^on clnTe^ S bSv precedent, ana Dureaus pIate^ by law of the continuity ^lopmlSteln and°Ubureaues Commissions aeveiopments in Dy Sen" be assured distinction part the price the 1S A great many factors influence on their decision to buy at a given ,,+iiitxr price and hence determine the y Commission, how- cost of capital to the company, has a continuous responsi- Aside from governmental fiscal a that measures in large matter when upheld weighed and judged at the Comi"dgments have not been theutiity industry mission level. . The nature and f fcaps in a complicated civilization, Yet du -inv this oer od and after modern concept of the function of ® ®lia„1?eiul mockery of the contiut if the bureaus increase in the indivkual has obtained a de- a Commission, however, discloses J®pt °lthe quasi-kdieial regulamember and power, we suddenly m-ee of skill a nri e^nerience the that these interests when extended ^ Y should be elimfind that without knowing it we compensation paid to these men is far enough merge into one com- '"a Ho 3fh Pr?nhP Th3S irfno m" tiavp creatpd 'bureaucracv' ^omPensaiIon. Paid 10 Jnes® men 1S mon theme That is the ureser- ca do the Job- Tbe Honorable wMch is one of the wo?st fates dangerous!.V inadequate. How can encouragemlnt of a John Lod^e' the great Governor Thurman -•few bureaus and individual. The eagerness with which they avail themselves of the investment opportunities 2ing,res an£ ° f Sht ' live From this brief catalog of considerations which weigh a Commission decision, it should be obvious that for selfish reasons alone, new facilities, will be invested plant they built themselves, this money must be supplied by investors—large and small, institutional Sprain ^ndS *r\.ad.ho.c —Particularly in a S with few. in war plant more before this trend slackens, according to the best informed people, Because a utility cannot and should not be permitted to expand in a(. proceeding ends in Practically all cases when judg- rea- exthe design of the rate the and trnas ■?. ssrsssfcssyTs raa'saurrsas 3SS-SS& «H5i ME «gencies and since decisions are concerned with matters of far greater magnitude than almost any of °ur high tance the cost of money is in the state court proceedings. Moreover, ultimate rate which consumers !he conFern which tbe court has must pay for service. e ex- Objectives of Regulation ^ turn to the personnel For tio' the value of service, the sonableness of the operating but never on top." who administer the laws, some of more of intensity obseivei, "must alwavs be on taD must always oe on tap I*r»blems of Administration the of vested equipment And billions mission to of subsidiary decisions respecting the cost of capital, historical, pres- penses, and mrithout checks and balances." we ex subject amP1e, the decision in any particular rate matter is compounded it dif- verv / "sacriffces^^he inSsht balances than governmental power When a companies customers and investors. the urge nolicv* 1thiri1f a"f a Yetly thing to insist that the ferent "Freemen permit private eco- no fo making the their jurisdiction and in turn their decisions consultation t ? f statements as former Presi- more «an thing 3 ®®d f_-® y £ ano'ther ctent Hoover made to an audience »eeentlv when he said f. J cpread ownership and the concentration of economic power, prompt •such Xct competitive busies the Commission should be Of .dativeto no o away to the horizon. Billions of dollars have been in¬ consequences which are virtually incontestable except on the basis that they were arbitrary or clearly contrary to any evidence on record- It may amaze you as it did when I became aware of the fact that in terms of dollars and m terms of people affected, Com- influenced a11 the refinements of the indus- are try, but they should be men of mission. For the fixing of rates utility sound judgment. There is nothing would be iargely emasculated J After all who would more potentially harmful to the without the correlative responsithp ffrct to complain of im- regulatory process than regulators bmty and jurisdiction over the ^Jw management if it were s0 steeped in detail they cannot adequacy of service, safety standowners9 It needs little see around their subject. Over- ardg> security issues> accounting however to detect the specialization in the person mak- practices and principles. The charth^ tinal Judgment is danger- p dpci,io^ of Commissions ££Kti«o C utiUW business ous in any field. There can be no thJnh^umulate over aTeTatfieW nublk rSnsU d°»bt that hiSh'y skill?d ™e,n Snrt Dtrirkto /bodv bf inXtilities of the utility company, the trained in the mass of detail which ence ancj policy which can and do Ut le on natural gas pipe line trench a stretching and its plant from surplus earnings are the Courts. They are also mak- supplied by ratepayers who will in£ findings of fact with sweeping be required to pay a return on determining the is company the thought of op- SnT fS with SSt irnnnJd surely rests with the utility'com- itations are final judgments. They are making law just as surely as case mission. the judge , have ith th p bH TTtilitip<; Jir®"®.1iaie *0? I Commission of . . . . .. . sphere utilitie<? So g." , judicial •!' • • our State in its ju- fu,nctioni nublip in_ never nor would I ever seek to r is far u, a« concerned, commission the confidence of the is a in protection Vestment, ut of Ws willinmiP^ invp^t to ?rnw<! willingness to invest grows, result is to thp romnanv P ine whirb hpnpfit<; thp . ... . and the investor alike. consumer The ThP reduced cost of money a imnairment of thp financial Has «re even who wno manv many disagree aisagiee on on proper organization and func- Hon of utilitv a true in must numan situations inuue in most human situations, m dividual companies are deeply in- Commission •Should it be passive volved with the nroblems of their independent own businesses 2dtadfc&PS£ 'Snfr^hen MK SSy Should the Commission act merely fiiSn^ of fact and rec- Mm* o Public the Utility XrhanI your indSto buTIrrtc^ril^nter'estd Tn investor and Commission together ^ upuiousiy sdieguaraea ireeaom increase tne cost oi service to Undpr a sound rom aim. unaer a sound commisslon, ably staffed and admin- istered. such achieved. an end result can be Good regulation con- °f action as . wuirh we accord to the courts +bp mmmiccion's , the people and the prosperity ot aspire. the State. . , «s Staff to be familiar with rail- and just regulation There'is no roads, motor common carriers, gas doubt in my mind for the reasons positions has much The best answer S'«»,be that the customer is ^"eoLalks telelhone^Ind ^^inlL„ gigrelSMe^r0 utility tele»IaIh^omnanies bussef taTk e.C r^n mt nis interest, while the telegraph companies, busses, taxi- ^J^,ivVeSt0rS me and imparequally responsible en^led t0 to *n Cal tribunal. As •lowever, truly we sound shall This is the ideal which hibits p'vamnlp ,t0 •lent. dilemma in this predicaProperly administered, or- ^nized of bureaucracythere is and staffed, Hanger m a of htu the fears are well- ' aEd "le1^ investors realize the The development of atomic piles stake each has in good regulation, nas progressed beyond the labora- JJU(dl of this problfem will be on tory aiJd discussion stage and now the way to solution It is to everyPresents a current problem for the one's advantage that service standelectric utility industry. This rep- arcls be as high as possible and 4ion valid as the men it. Its big weakness is «hat it depends for its vitality and necessarily sition and presumes that its prindeal and illustrates the breadth of cipal purpose is to oppose the in^e experience required properly dustiy can do no one any good. on the person of the regHiator and on his agnizing this, Rec- Commissions have ^minister the regulatory traditionally plural, provid- log for the benefit of ^ groun think p , iato.ry agencies must validity integrity. , resents but one of the newest tech- rates as low as possible. The Com™cal questions with which regu- mision which misconceives its po- who ad- •niufeter t>ecn . , entrusted necessarily to the regulatory agency is wide indeed. like the idea of censorship, regulation to a large extent is as good as . public, the companies, 4grounded, however, for the discre- md regu- . agency. -Some dSMfc'utilHief'T5 ImltyfndtltrvUesTnthT hUdl eieVri? public utilities., It is Ulll"y maustry lies in tne nands »'eachtoiIthese cat egories with- continuation of good utility .? fLiJai?mg ai P e f e d of regulaWhen the no regu- fatory • S1nCG - .1 * Supreme Court tt •+ j procc* x g^^rMngemeHIr^ e • ^ +1 ^mted States so inadequately staffed that it was * ■ • • ^ *1 this from area trespass. persuaded to unable r»np ..tlmt as rapidly as has scientific business, The Consumers'Interest . ., . .. ' . us conslder l demonsIraTTfo hi hlsto^ ™f gSd^fficient by 1 serWre utilityttatiS pr0gress in the "eld with which conthiuation^ ship and the of snip ana rne continuation ot auri" a pri- on the partrf the " is eoncerned- The outstanding company is a good company-his Darad0v of our is civilization is that nrirp men have provided us with the as machines of anyone to of the regulatory bodies For this be luI1y conversant with the func- reason, if for no other, the public h tioning, financial aspects, and the and the utility industry has a tremany varied problems which arise mendous stake in the health and g •ees no nf tho had gressed humanly impossible for see, regulation the final analysis, in u- llMMild'coSI Wis^L^^afe an *» recommend it. wu „ «mmendations, or should it affirm- and concerned with all the prob-For a reason far less personal their efforts to aid Commission ■•lively and aggressively play an lems of all the utilities subject to and selfish than the prosperity of regulation in achieving When exclusive role as the protector of their respective jurisdictions. The the individual company, utilities that purpose is accomplished, men Hie public against the alleged mo- business of regulation makes it generally should welcome, enPrtrif;HPntiv iw Jn' rptf. Wpolistic oppression of the utility? necessary for the Commission and courage and support strong, firm ulation thpr#» iq Each of these customers Hppi x? wbich tbe commissions deciThe chief remaining influence sl°" r"a.y be aj5pealed; not affected by regulatory powers ..This is the dignity to which al is management itself. But our giant but a our social rnn<?pinii<;np<?«? that ratpnavpr'<? a adg,a^priL mismanaged and almost bun- Zfa lndid luutyment A opportunity^ vours gens . i«? nnt nparlv acVe E~enL deZn^fates ronpprn nvpr a mLh S acute where lervke T Lf It hk Ilncern with^erviL o'nt asfa h Her the higher rates It rise fa s concern UeSen ofthe^ulty ildust'ry.Io fathevagariesoflnHrtainlol" recognize this paradox and to ac- cept the challenge presented in it flickering television set— age—a a burnt out motor—an . outage at as part of your Work for sound, Bet us th responsibility to mid-day idling hundreds of workable regulation, ers and costing thousands of dolbriefly review some of lars in lost time—these are the . y h regulatio.n can real concerns of the customer, aff ™ the ratepayer ?ts ^esto? ThL' compaiw will and disclose fiLlaTdcinclu^ve proofthatit ^ Merest ^the ?L^ated 10 insist ^uc^sist on it Management. eood is to relulation inSlft Sood as on ' ,' The Inves^rs Interest f Consider the cost of capital. If typifies today's - utility effectively to question the anything But insurance aeainst such certai^t^s L noslib?! youhavea-HoodoW ulation such tween Goodrel- 'Ss and^couragf facmtiS bv in s coooeraS the?compLy^nd miSon un- provided aMkipating " the Comits needs by'taHHgHriffeTlistk cTatms before the Commission for * the need for additional funds and by the Commission recognizing this Volume 177 Number 5228... The Commercial and Financial Chronicle need for expansion and accommo¬ Continued dating its thinking to it. In such climate, service will adequate and reliable, rates be and Commission confidence in the and the companies complete. The State of Trade and tions between closing, let the problem of rates us. little a A sound Commission will a policy which will encourage the company to utilize all the data available to determine accurately as possible the ex¬ plant responsibility of and each class of customer and to price its product accordingly with com¬ petitive and other economic limi¬ tations in mind. The Commission is adequately staffed and •equipped will weigh these judg¬ ments and fix rates based not on expediency or instinct. Thus, the forces of supply and demand will be brought to bear in improving the load factors and encouraging the greatest volume of use of the company's product to the advan¬ tage of the company and custo¬ alike. mer But only in a wages fearless and in¬ formed regulatory climate such decisions possible. are increased. are At settlement without wage more specifically. follow • the depends on the amount the signs point to a steelworkers The have not specified the amount of wage increase they seek, but trade gossip has it they will be satisfied if they get around 10 cents an hour. Almost to steel man a time, but their position executives oppose hike wage a at this the question has been weakened by recent revisions in automotive wage agreements, continues "Steel" In event steel raised 10 cents hour, market observers are of the opinion base prices will rise $4 to $5 per ton. Such an increase added to those resulting from recent changes in extras will likely force steel consumers to adjust upward their prices on finished goods. The exact amount of the steel increase arising from the revision in extras cannot be determined, but wages are an some idea of the effect of these changes on steel costs is shown by the rise in the Bureau of Labor Statistics' finished steel price index which stands at 136 compared with now 130 in April when inaugurated, it points out. wage and price questions are out of the way the extra adjustments were Once the current the steelmakers market the in toward are expected to various firm and a duction costs move products. realistic position on future and competitive achieving a they toward Generally, inclined are stable pricing, with pro¬ factors in mind at all times, notes this trade journal. With steelmaking operations booming along at capacity pace, supply is comfortable, assuring support for highproduction through the year, it further notes. material raw level . If this industry wants to assure prosperity and ex¬ pansion and to enjoy the confi¬ its The continued dence of its customers the and public generally, it can do noth¬ ing better than to lend its great weight to the end of achieving a anniformly improved utility regu¬ latory climate throughout the 48 states generally and the territories and insular toe done spent in to end ideal and im¬ an wants—state lions of dollars of investment and payers' dollars which ture cases and are but totals. rate¬ in¬ this great expendi¬ Only a ■Commission which is adequately staffed can discharge this respon¬ sibility objectively and efficiently without undue delay. our Every fair see 42,100 that this type of regu¬ The companies will be on far ground in their protests against the incursions of the Fed¬ eral Government into the field of state regulation if they can point vigorous and able stdte com¬ mission, organized and equipped to discharge the obligations im¬ plicit in public regulation. States' rights are best discharged by rec¬ ognition of states' duties. to a I of am consistent are with the highest ideals of the pub¬ lic interest and that a cooperative effort to support good organic leg¬ islation, informed, dispassionate mature interpretation, ade¬ quately staffed and compensated commissions, and a mutually co¬ operative attitude by companies, commissions and ratepayers will do much to cement a strong util¬ ity structure and thus a strong and economy. The true protection of our free, private enterprise system in which the public utility industry is basic, Is a soundly conceived and inde¬ pendently conducted system of public regulation in the public interest. as The the utility alternative insofar business is concerned is and always will be state owner¬ ship and control. It is in this par¬ ticular respect that those who are regulating and those who ulated are united in are reg¬ unalterable opposition. represented an increase of 89,895 cars, 5.7% above tljie corresponding week in 1951. car production in the United States last week began output for the past week made was up of 110,387 cars and 14,877 trucks built in the United States, against 101,466 cars and 12,519 trucks in the previous week and 92,956 cars and 24,858 trucks in the comparable 1952 week. Canadian factories built 8,033 cars and 2,860 trucks last week, Ward's said. In the preceding week they turned out 8,735 cars and 3,148 trucks and in the comparable 1952 week 7,334 cars and 3,689 were assembled in the Dominion. rye registered the sharpest declines and touchedlow prices for the season. The July wheat delivery at Chicago down to $2.00 % on Monday of last week, a drop of almosfe sold 50 cents a bushel from last year's high $2.48%, and the lowest point reached by any wheat contract since March, 1950. Lack o£ export demand and fears regarding storage facilities for the newr Commercial ended and June 4 industrial Corn ments. declined in sympathy with wheat with weakness prompted by the announcement by the CCC that it would sell lowgrade corn to feeders. Oats showed comparative steadiness. Vol¬ of trading in grain and soybean futures on the Chicago Board sharply last week. Daily average sales totaled 51,700,000 bushels, against 36,700,000 a week previous, and 32,300,— ume of Trade increased 000 a year ago. Flour prices and tively. war failures climbed to 217 in the 168 in the casualties were considerably above the totals of 172 in the comparable weeks of 1952 and 1951, respec¬ Despite this increase, failures remained below the pre¬ 1950, level of 279 in the similar week of 1939. bers generally continued to confine their purchases of hard wheat bakery flours to small lots for immediate or nearby delivery. Cocoadeveloped a stronger undertone in response to somewhat broader * manufacturer demand and a lack of sufficient offerings from pro^ ducing areas. The market also received support from reports that the British Cocoa Marketing Board liad completed selling of the* main British West African crops. Stocks of cocoa in warehouses * rose to 161,906 bags, from 153,772 a week ago, and compared with* 101,050 last year. t Coffee involving liabilities of $5,000 or more rose sharply twice as numerous as a year ago when 86 businesses failed in this size group. Little change appeared among small failures. 181 from Failures 138 last week and were over increased in all industry and trade groups except wholesaling where they dipped mildly. In retail trade, casual¬ ties rose to 108 from 81, in manufacturing to 39 from 28, in con¬ struction to 26 from 15, and in commercial service to 21 from 19. More businesses failed than last year in all lines with the in¬ crease and mostly steady. Lard was lower de¬ spite further advances in live hogs which touched highest levels since October, 1948, aided by higher wholesale pork prices an# broad buyer demand. Strength in sheep prices reflected an active* demand for native Spring lambs. Cotton closed slightly lower. Trading was comparatively quiet and price movements narrow. Bearish sugar sentiment were was influenced by weakness in securities Reported sales in the ten spot markets totaled 39,900 bales^ the smallest for any week this season, as compared with 58,60#the previous week, and 69,500 in the corresponding week a yea** Loan repayments on 1952-crop cotton expanded sharply dur¬ ing the week ended May 22. The total at. 28,300 bales, was thos largest for any week reported during this season. Trade Volume Reflects Marked Gains Holiday Week from the 1952 level particularly sharp in the trades and services. Consumer debt remained close Wholesale Food Price Index Strikes 9-Month Peak wholesale food price index, compiled by Dun & Brad- street, Inc., moved sharply higher last week. It rose to $6.56 on June 2, from $6.47 a week earlier. The current figure marks a new high for the year and the highest level since Sept. 9, 1952, when it stood at $6.60. Compared with the $6.43 of a year ago, The of 31 was index 2.0%. t , represents the sum total of the price per pound foods in general use and its chief function is to show the general trend of food prices at the wholesale level. the to peak reached goods continued to account for a few a larger share of each dollar than at this time last year. . The total dollar volume of retail trade in the week was • ■ esti¬ mated by Dun & Bradstreet, Inc., to be from 3 to 7% higher than the level of a year before. Regional estimates varied from the comparable levels of year ago by the following percentages^ 3; East -f 1 to +5; Midwest +2 to +6; +4 to -f8; Southwest and Pacific Coast -j-5 to -f9 and the*. Northwest -f 3 to -j-7. New England -fl to a — South Apparel stores sold slightly less than in the prior week al¬ though shoppers' interest remained quite high. Denim sportswear, children's clothing,, and casual shoes were among the most popu¬ Men's slacks and Summer suits were sok2 lar items the past week. rapidly than at this time last more The of total a year that of year. receipts of apparel stores continued to top the fig¬ ago. consumer year a interest in household goods continued to sur¬ In wide demand were small air-condi¬ ago. tioners, refrigerators, hardware, and decorating materials. ging were outdoor furniture and picnic supplies. While in the buyer activity quickened Lag¬ in some wholesale market* period ended on Wednesday of last week, the total dollar markedly from the level volume of wholesale trade did not vary prior week; it continued to be slightly higher than the yearlevel. The favorable consumer response in recent weeks en¬ of the couraged many buyers to extend their commitments beyond their immediate needs. < Department store sales on a country-wide basis, as taken fron* the Federal Reserve Board's index, for the week ended May 30* 1953, remained unchanged from the level of the preceding week., the previous week an increase of 7% (revised) was reported from that of the similar week of 1952. For the four weeks ended In May 30, 1953, an increase of 6% was reported. For the period 30, 1953, department stores sales registered an in¬ Jan. 1 to May crease of 5% Retail the increase I weeks ago and most retailers continued to stress easy credit terntsv above 1952. trade in New York the past week was adversely af¬ by such factors as cooler weather, tended to keep shoppers at home, and the fected The Despite * Although shoppers were as active as during the prior week** one shopping day reduced the total dollar volume oaf retail trade slightly in the period ended on Wednesday of Ias$ week. However, the year-to-year gain in retail trade was quite* marked in some sections since the holiday week-end was longese ago Casualties to ( worked moderately lower the past week. Tfc® sharp declines in wheat discouraged traders and bakers and job¬ pass preceding week, Dun & At the highest level in any week since from Bradstreet, Inc. reports. 120 depressing factors in addition to Korean truce develop^- crop were ures Business Failures Soar in Latest Week 11, persistent rumors of the possibility oC Wheat and new The May on early truce in Korea. Hard in the like 1952 week. Total week in grains continued, particularly in tin* pressure latter part of the week an consumer Output Climbs 9% Above Week Ago rise following the settlement oil labor disputes at Ford and Chrysler, according to "Ward's Automotive Reports." The industry turned out 110,387 cars compared with 101,466 cars (revised) in the previous week, an increase of 9%, and 92,956 trucks V Downward or to cars date last year. last year. total cars, or Passenger confident these objectives good regulation week's U. S. Auto firmer cfosed at 276.85 on June 2, compare# previous, and with 294.90 on the corresponding week the loss of 12.9% above the corresponding week a year ago, and an increase of and lation is provided. Loadings Rise 2.2% Above Week Ago preceding week. The a ago. Loadings of revenue freight for the week ended May 30, 1953, totaled 786,755 cars, according to the Association of American Railroads, representing an increase of 17,137 cars, or 2.2% above the irregular and uncap"* and grain markets as well as continued slow export demand an# the possibility of an early truce in Korea. Higher in Post-Holiday Week by the electric light industry for the week ended June 6, 1953, was esti¬ 8,096,330,000 kwh., according to the Edison Electric Car economy. ethical effort should be brought to bear on the appropriate governmental author¬ ities to the The current total was 140,186,000 kwh. above that of the pre¬ ceding week when actual output totaled 7,956,144,000 kwh. It was 1,091,264,000 kwh., or an estimated 15.6% above the total output for the week ended June 7, 1952, and 1,362,668,000 kwh. in excess of the output reported for the corresponding period two years ago. to entitled to the protection consistent with the great part they in at small in amount This huge are play that announced Institute. to control the expenditure of vestment power farther from us are called upon in jurisdiction to regulate bil¬ in Institute The amount of electric energy distributed and of Commissions millions Electric Output Turns distance none individual Steel and 100.3% and production 2,262,000 tons. A year ago when the capac¬ ity was smaller actual output was placed at 254,000 tons, or 12.2% of capacity, due to general steel strikes. mated socialism. each Iron 000 tons of ingots and steel for castings as against 99.6%, or 2,246,000 tons a week ago. For the like week a month ago the rate was day. But each day it will be 24 hours the measurable the a American operating rate of steel companies having 93% of the steelmaking capacity for the entire industry will be at an average of 99.9% of capacity for the week beginning June 8, 1953, equivalent to 2,252,- possessions. It will not doing closer t week were by Dun & Bradstreet, Inc., on magazine. commodities last ^ tain with the general level of prices showing little change during the period. The daily wholesale commodity price index, compiledl all moment strike. a Trends in with 277.35 The extent that base prices will rise consider Industry leading steelmakers and the union, states this trade publication. Before which Commodity Price Index Shows Little Chang** For Week The Problem of Rates pense Wholesale jrom page 5 a reasonable as (2549> talks. The result was an the Coronation, whiefc current wave of peaeo estimated drop in sales volume of abou> 5% under that of a year ago. According to the Federal Reserve store sales in New York Board's index department period ended May 3^ City for the weekly registered a drop of 4% from the like period of last year. In the preceding week an increase of 7% was reported from that os. ?tbe similar week of 1952, while for the four weeks ended May 30, *195$, an increase of 4% was reported. For the period Jan. 1 to May 30, 1953, volume registered no change firom that of 1952. % 1953. . a 12 The Commercial and Financial Chronicle (2550) and~ bond With Hemphill, Noyes j ' (Special to The Financial 10 Post A SIMPLIFIED PROFIT-SHAR¬ ING plan has been established for employees of National Securities & Research Corporation, it was NATIONAL announced by Henry J. Simonson, President. The Corporation sponsors National Securities Se¬ ries, a leading mutual fund. SPECULATIVE Jr., SERIES The A MUTUAL INVESTMENT FOND created or anced and Vz New York 5, N. Y. three National Series, % in Income Series in Stock Series. Employees contributions. no requires no The plan actuarial work, it does not involve life insurance and no has fixed obligation upon the Cor¬ poration. There is Tax come no Federal In¬ income of the retire¬ on ment fund. plan has been sent to security dealers throughout the country, since the simplicity of such a plan should appeal for many cor¬ porations, particularly those with from 25 to 250 employees. have great Distributed with the retirement plan is ONE WAlt STREET CIalvin bullock GENTLEMEN: At me a no *;*Jnewyork - obligation please send prospectus on Canadian Fund, others. The various forms needed the operations of the plan are reproduced. Name. Address. ex¬ The according amendment, to the Board, makes it clear that the regulation applies to loans for the purpose of purchasing or carrying certain shares issued by open-end investment sets companies whose as¬ customarily include registered stocks. shares The City. with to these questions. answers THE FEDERAL Reserve Board June 8 adopted an amendment, t affected give interest the into trials. equivalent the Dow to level a Indus¬ Jones The economy ana the stock look better to us after- vestor is likely to profit more impending in 1951. "In the professional investor's' from developments in research, new products and new methods mind, danger is associated with? impending trouble; opportunity is- than from following the latest associated with existing trouble. on to what it was months 20 ago when market averages were close to 1953-54 period only beginning in the three basic price areas of our economy — commodity prices, in bond prices and stock prices," Mr. Schreder tions the U, (currently 50%) loans on "Now in taken are carrying stocks regis¬ in 1953 these place. While apparent in correc¬ severe basic areas the the have declines commodity jority of people now over 65 have to continue working or find them¬ selves in dependent whole or in of their daily The profit The study states that time itself he is miracles investor for granted. looks opportunities in for the them.' If prudent he will spread and be guided technical his investments for help the prudent person plan retirement; that as an exam¬ ple, $1,000 earning 3% com¬ pounded semi-annually becomes years. It also con¬ $2,443 after 30 tains "balance a planning for sheet" each of liabilities' in and assets retirement, well as life expectancy figures for men and women between the ages of as 20 and 75. The first issue of "The View" treated and with how it is retiring A NUMBER by well ;;as ..investment as know-how before he risks his dollars." CALVIN letin BULLOCK'S described the June Bul¬ Canadian Fund's U. S. investments, dictated by its policy of investing in com¬ panies, wherever organized, which stand to benefit ment of Canada. Social much - It cites the by the develop¬ that fact American oil companies operating in Canada control more than half the esti¬ mated oil reserves, in a discussion of American oil companies in the of years Cen¬ Fund's portfolio. tury Shares Trust has paid quar¬ Other American companies with terly dividends from investment important holdings in Canada and income at the rate of 10 cents per owned by the Fund are Goodyear, share and has distributed any bal¬ which owns 80% of its Canadian BOSTON Company 50 Congress Street, Boston 9, Mass. ance Funds. alert can FOR ' Name modern our the financial living." against disease. ordinary consumer," says the Long organization, "may take charity for needs weapons "The or worth in dollars to people after age 65. Bond Fund OF newer part upon relatives (Security, COMMON STOCK FUNDS . — Long 3Te ten sponsor and mana¬ Diversified Growth Stock of AFFORD A BOND, PREFERRED AND me prospectuses describing Organization and the shares of your -n organization, ger YOU person's Custoclian Fundi Please send market index. a very and skill will be rewarded." present levels. "Then serious adjustments were chasing your in move In a bulletin entitled "Science likely? will continue to be a period in- Shapes our Future" just released which extreme investment care to investment dealers, the Long The "CAN curities, in a current study, com¬ pares the stock market outlook by banks for the purpose of pur¬ The Keystone laboratory and investment opportunity grows closer every day, r says Hugh W. Long and Company, investors need a new - ments r tne these basic adjustments have ma¬ slant on what to look for in "fi¬ terialized than when we saw them- nancial news." The long-term in¬ com¬ stated. or in Ripe Old! Fund, reviews some of the new pany's underlying assets or their Age?" is the question asked uy developments in the electronics, equivalent. Such shares are Hugh W. Long & Co., mutual fund chemical and drug industries technically called "redeemable se¬ sponsors and managers located in which represent about two-thirds curities." Elizabeth, N. J., in a bulletin deal¬ of the Fund's investments. The action does not affect Reg¬ ing with the universally interest-; One of these developments is ulation T, which, among other ing subject of life expectancy. "If the tiny transistor, which will things, forbids securities brokers you live to age 65," the bulletin, replace the electronic vacuum and dealers to lend on securities points out, "you're likely to need, tube in many uses. 7 * fK not registered on a national se¬ capital for a minimum of 12.4 Another is the .wafer-thin curities exchange. Therefore, "re¬ years of living thereafter"— a. "plated circuit," which is begin¬ deemable securities" of open-end minimum of 14.6 years for women." ning to supplant individually investment companies cannot be The bulletin—the second in a" soldered electric wire connections given loan value by brokers or series titled "The Long *r View"—£ in radio and TV sets. dealers unless they are registered Comments of civilian and mili¬ points out that if your living5 on a national securities exchange, standards after age 65 require the* tary experts, reviewed in the which rarely is the case. expenditure of $5,000 per year," bulletin, indicate that plasties-^— And, of course, this action does that means you'll need to spend5 the "cheap substitutes" of yester¬ not affect section 11(d)(1) of the about $60,000 for living costs dur-' day— could become one of our Securities Exchange Act of 1934 ing the average life span after- giant industries with expanded which prohibits a broker-dealer mass use in cars, age 65. vessels, planes. from extending credit, or arrang¬ "If these figures cause you to- Pointing to the fact that "bugs" ing for the extension of credit, stop and think about your finan¬ causing infectious disease de¬ on any security which was part cial plans for the future,"—the velop resistance to older anti¬ of a new issue in the distribution bulletin continues the bulletin notes the "they will biotics, of which he participated within have served their purpose. For continuing need for the drug inT the preceding six months. the unhappy fact is that the ma¬ dustry to meet the demand for regulation which prescribes margin require¬ Regulation point cash with Finally, there is a series of 48 questions which might be asked by employees concerning their participation "in" the plan along i his vert a 232 market a unique 30-page booklet entitled, "Building the ProfitSharing Retirement Plan." It shows all steps taken by National Securities & Research Corporation from the origination of the plan to its completion. Included are the minutes of all meetings deal¬ ing with the establishment of the plan, as well as copies of all cor¬ respondence with the Treasury HAROLD X. SCHREDER, Execu¬ Department, the Trustee bank and tive Vice-President of Group Se¬ in . occurred . Mr. Simonson said that the < national securities assets, and carry the right to con¬ make / a in reinvested Securities Series funds—Vz in Bal¬ Established 1930 4 on the purchaser a proportionate in¬ terest in the issuing company's and .w...y tered change. the Corpo¬ ration of 10% of annual profits before Federal Taxes, is invested RESEARCH CORPORATION * Fund, Employees' from contributions by NATIONAL SECURITIES & 120 Broadway to of By ROBERT R. RICH Prospectus from your dealer substantial* earnings in excess of the sum bf in the regular quarterly payments a aiso prices. This is evidenced' will be distributed in the final by the fact that during the period month of the year. <■ ; of no apparent change in the BECAUSE THE LINK between averages, 501 stocks have declined; Mutual Funds BOSTON, Mass.—Peter J. Carhas become connected with & Co., 1953 Thursday, June 11* stock ris Hemphill, Noyes Office Square. prices, has correction Chronicle) * .. Massachusetts Investors Trust D-o/ sum in of of special Owing to rate excess of the namesake; International Paper, largest newsprint producer in Canada; Kennecott Copper, which currently higher owns a % interest in Quebec Iron earnings, and in and Titanium Corp., with the lar¬ quarterly payments year-end dividend. a annual .... earnings in these a of order to distribute earnings some¬ evenly throughout the year, the rate of the regular quar¬ terly dividend has been increased Massachusetts Investors pulp mill, timber what State. City gest known iron-titanium deposit; to 11 cents Address.. Growth Stock Fund the more a share beginning with dividend declared payable June 26 to shareholders of record June 16. This net income interest on clusive of Century Shares Trust oU . As in the * is payment from derived securities owned, any and ex¬ Corp., whose Canadian operations consist of a high-grade a chemical plant, and tract Montana of 3.1 Power million Co., which has purchased the Pakowki Lake gas reserves in Alberta for $10 mil¬ lion. Exploratory creased reserves to work a has in¬ total of 400 or billion cuv ft. u losses; MRS Canada General Fund A prospectus relating to investment funds may be A Mutual the shares of any of these separate obtainedfrom authorized dealers or Investment Fund Prospectus VANCE, SANDERS & COMPANY may from ■■■*' be obtained • investment dealers or 111 f DEVONSHIRE STREET 'I* Berkeley St., Boston, Mass. NEW S;4 ... fS.. > 19 2 5* \ YORK , 6i ♦FOUNDED Broadway r h o * * ★ ★ ★ 120 Prospectus * upon request LOS "ANGELES ;■ CHICAGO South LaSalle Street F*tnd-» Investment A. Diversified ir~r' *'" BOSTON a The" Parker: Corporation 200 iio West Seventh Street Lord, Abbett Set Co. New York a acre; "Experience developed over the the' • Bulletin ' comments, balance of'-net; years," capital gains past from dividends Marathon -'.Chicago ; • Atlanta — - Loi Angelei ~y Volume 177 Number 5228... The Commercial and Financial Chronicl( (2551) "reemphasizes the logic of includ¬ ing in any well-rounded invest¬ securities with 66.2% ment stocks and stocks. 7.5% in program U. S. companies Canada some having substantial interest in that country;7' made of up rate 300 over individual in in 21.4% common something broader, What the Fund SALES shares months of in 1953 of Wellington the first five reported by were A. J. On May 31, 1953, the largest in¬ holdings were as follows: utilities — electric 15.0%; dustry public Wilkins, Vice-President. oil 12.2%; chemicals and drugs for this period, he said, merchandising 5%; and to $24,627,000 largest foods 4.9%. • for any such period in the Fund's With the payment of the 82nd 24-year history. They represent consecutive quarterly distribution Sales amounted , increase of 17% an of $21,069,000 the sales over in the like five months of 1952. The mutual adding executive close of re¬ year shareholders rate record lem which condition your think- to has at the 2,000 a month. like latter and they prefer an investment in the percentage carried revenue common? Wants to Know of through to I have doubts as to the as test a of management, since there often appears to be an inherent physical characteristic of a ences"among ^ompanies^or^^cer" causes the wide differences". there is more Or is it an increasing percentage philosophy is about regula- room for earnings growth. Who is of gross to common over a oeriod? tion. Some analysts are groping right? In which stock would you Maybe the best test is simolv the for the answers to what is right put your money, and why? Can rate of return being realized on in^r We * ru x. u ■ further want to know what company which is earning a sub- tainly normal return, since your paid twelve cents per share themselves, and from investment income and three fund ported that the Fund this been June 30, 1953, the company will on have gross Security Analyst cash and U. S. Government bonds. RECORD ing expense per customer, or other such rates? Or is it - r preferred is invested in corpo¬ and 4.9% is held in bonds Continued from paqe 12 43 cents per their ital your beliefs and therefor may help them in reasons you help us to find the answer to this basic regulatory question? the capital invested in the enter¬ tant, share from realized cap¬ gains to its shareholders to date in THE 1953. thinking. But impor- more prise, ment how or well the manage¬ is doing with the funds en¬ your beliefs are a factor in Operating Factors trusted to it. But we all know of earnings prospects for your The next major weak spot in cases where this result is in spite stock. Do you believe in a fair our analytical knowledge I have of rather than because of good the GHOST Elmer Tuttle is OF threadingcharacterTn the"new ^alue rate base> with INVESTORS MUTUAL, Inc., now has more than 150,000 sharehold¬ booklet cartoon "The T aid Rekt Plans " DubHshed bv Broad Street ' PUDiisnect by tfroaa t>treei Sales Corporation, national dis¬ - the number of any country, it was announced ^Tuesday by Investors Diversified Services, Inc., national ers, largest mutual fund in the distributors and investment man¬ 150,000 shareholder mark passed by Investors Mutual during the month of May, making it the first mutual fund in the, na¬ ever base I. of ownership S. D. to achieve such of Assets these which : a broad according to the fund,, in shareholders proportionate interests, exceed $450,000,000. Corporation, a stressing satisfactory the readable NET ASSETS of Commonwealth 223,591 at the close of business on May 31, 1953. This represents an increase of $12,118,735 over a year jvhen the total net assets were ago, $50,104,856. The company has over 38,000 shareholders at this time. Commonwealth's portfolio is and Elmer's style ghost with fixed a Dividend Announcement BALANCED different ment' Broad Street - The latest things 85th Consecutice EATON which 21 ■ included Investing shares. its terms the National Corporation growth policy. Broad Street Sales stock feels be that its another newest A "best-seller" in the r,P)lm»TDri £.u uxxT AS; A FEATURE, of the Finance Forum" & HOWARD CENTS A SHARE and the courts, if necesWhat about so-called eco- nomic depreciation? lieve that the — , Women series a s on of is Wednes¬ Today." graduate of the a income account sumed each year? If s0 how much fight wdl you mal^e for it? If not, what is wrong with the the- of a How about fair turn? If "cost of what proach. rate disagree you so-called is Commerce of North¬ jored in banking and investments. The forum meetings are very pop¬ of re- with the capital" the ap- substitute method which you recommend as right? Thp vaW nf vnnr J™,* not Divid?ni3 payr.b'? June 25 Dividend to of record at 4:30 P.M., June ers 24 Federal 777/e sharehold¬ 15, 1953. Street, Boston Z fl?ud has at^ry c°™"* ?5'fl: y°u cannot us :tor us, but you '°{^ ®*^rts of do s0 informed com- c^inmns and orders in reflect other their ™ the coromission ground of and 7? of its fiscal year. PERSONAL the b k PUTNAM PHILIP National Securities & j joined Research Manager as • . bas k.MITH C. Corporation FUND Even with knowledge of the at¬ t. ^ of its stii£ faced selecting stocks Mr. hrm Putnam Fund Distributors. Inc. 50 State Street, Boston Smith, a graduate of Ford- University Law School, has been with associated T^"k law firm the New with the I vestment. urei. ent Plan Department, it was announced by, Henry J. Simonson, President. management, x„™ who Jr.. of v»r« are the most know convinced those are problem of desirable in- that best investment. quarters at the Home Office, 120 New York. a in the where protection I know for others a + ir quite fifth and last topic, easily into my which The is me Measurement of Ability of Management. There is certainly general acknowledgment managerial abilitv is an ima secudty its in and the in criterion Dortant v»a4»tmv% on book value, they believe that the risk nevertheless is increased, occasionally value of prospects. have some earnings the in consider- allowed * proach to the appraisal of man- of Perhaps our first point judgment is how good the man¬ is for furnish¬ agement's program vestment , * dealers information ing to financial an¬ alysts. If we a gocietv •/ supplied with all the want, if the President good talk luncheon ' at the Analyst or a due dili meeting, he is a good man¬ ager. I think our second point of judgment is personality. If the gence on bustles a lot, slaps the back and calls him inclined to give him strong vote of confidence. am not trying to underrate thQ be doing a stockholders? bang-up job for But more im¬ gerial ability that can be made? How do you decide whether or not Company at 2529 Russ Building, San Francisco 4, California. you Prospectus on request—. Dealers' inquiries invited southeastern system last Fall. It or your subordinates are do¬ good job? Should we study customers' accounting and collect- ing a any> management? good the question, beSs But this because my premise is that the investor and *iis representatives are not ade- aga^ay in haveindicated possible some sure 1 approaches that you can I but be helpful guiding us to better manage¬ appraisal techniques. Halsey, Stuart Group Offer Equip. Tr. Gtfs. Stuart & Halsey, . Co. Inc. and - the portant, how should we measure management? Are there any quan¬ titative measurements of mana¬ the triP over the properties of a large are facts still from its community ment we gives his or in by publlc and political leaders. This was one of the outstanding Depressions I gained in a week s am qualities of financial relations personality, because I think a good utility President prob¬ ably does need both. But on the other hand, couldn't the quiet type who perhaps is not as communi¬ cative with us as we would like funds may felt company is of I believe that our analytical ap- that describing these be obtained from in¬ Good management should be apparent in the esteem in which the utilities, is not this a recognition Managerial Ability and Wiy""777, Cer- etc. a two Prospectuses privilege, to a ra^e increase application, T*TbabS s01iae tests can be made company. Certainly this is the °* the investors acceptance of case in the form of a penalty for y°u.r securities. If you raise your bad management, if not a reward caPJtal a"d 7°}F for good a better basis than those of similar 6 ation I FUND financial leadership in introducing the over- als0 may be revealed by the naindicated that ^ure and force of opposition, if this should receive a COMMON as subscription Even the Commissions and Courts an who billing, such appear good management. leads ly limited. states card may What*. does it tainly there are tangible evidences stockholder? of game, we are - of many in introducing bi-monthlyor post- by his first name and talks a good STOCK so Accounting initiative industry talk of discussion This analyst A gentlemen have with pru- or 38 you measure *** mean to President | you us P management the agerial ability is usually extreme- best of #-» in You analysts the practice, feeling that assurance of a fair return on fair value pro- the lax dent ec0n0my? the some fair value is not only the law but vides resents wx Satterlee, War- say that such may be the case, but the past five they believe that when the latter IT »»rl 11 wAnlrA Lin »NAn/1 IttaI L! aL He will make his head- results in a relatively high return Broadway, furnished whether the margin of safety is lines, outdoor plant construction, thin, and if so, whether this rep- and other engineering innovations. we are & Stephens for years. the fact that can we tel1 whether your the Joppa project, leadership in transmission and distribution net- atomic research, high-temperature work is under-built or over-built, boilers, high-voltage transmission commis- sion> court and legislature, newly created Profit-Sharing Re- <•/ 77)o4 ten tempted particular situation, or per- agement is in demonstrated initispic-and-span neighbor ative and resourcefulness, such as gone to the other extreme, the conception and execution of members. new The final word generally is said titude PROGRESS am suggest that the results of a company be charted against the industry performance except for y°ur man as a "good operator." What is embraced in that term? How do by the courts, and we want to keep informed of their decisions which would affect you, immedi[^u!" TOTAL NET assets of Investors ately or in the long run. I say thenStock Fund, Inc., mutual fund word generally is final, because ^ * V-' ^ sponsored and managed by In- sometimes the legislature may get vestors Diversified Services, Inc., in the last word after the court increased $6,502,519 during the has spoken. If there are any legissix months ending April 30, the lative measures introduced which fund's semi-annual report revealwould affect the future earnings ed today. The fund had net assets or quality of your stock, we cer¬ of $48,045,946 on April 30, as com¬ tainly want to know of their in¬ pared with $41,543,427 on Oct. 31, troduction and ultimate fate. end I to nolic^^^voi^mptfliiatnrv'How P s ■ Yu ular and drawing large audiences. Tjeorye control of expenses? treme, where the properties are those charts over the years and I gold-plated at the expense of the am still waiting to see one where investors? If so, how do we rec- the company in question did worse ognize the fact? When is the point than the industry. The parts alreached when additional expendi- ways seem to exceed the sum. tures become too much of a luxSome evidence of managerial ury? We can Pretend some sem- achievement is apparent in the blance of a judgment in a phys- prize awards of the industry such ical inspection of your system as as the Coffin Medal, but I am sure to whether you are a good house- that there are more well-managed keePer> whether or not poles are utilities than the few who can be leaning, wires sagging, branches so recognized each year, so that is untrimmed, but perhaps your not an all-inclusive test. economies here are justified in Another field for crediting manbaPs o 87th Consecutive Quarterly start with the physical condition °f the properties.. I don't believe that any of us want to recommend the securities of a company whose properties are really run-down or obsolete, but is there another ex- y°ur anH of the subject of "The Investor Sebel on be- you should be charged with the present value of the property con- meetings held in St. Louis on four a ^ successive Wednesdays, Harry L. ,a Sebel, Mid-Western Vice-Presi¬ by keeping mission dent of Hugh W. Long & Co., Women Do ??.? rfrZhi! western University where he ma¬ Quarterly Dividend mission booklet will mutual fund field. Ac1 a ory? booklet will rival Investors School STOCK FUND A might predecessor, "Are We Talking Your Language?" which told in Mr. 29 CENTS A SHARE estate— flexible invest- a program day, June 3 FUND tells . how have been with addressed the seminar EATON & HOWARD enter¬ story of his widow's trials and tribulations and of thls approach in the event major reversal of prices? Do you believe enough in fair value to fight for it before the Com- of sary? easily non-technical Investment Company totaled $62,- Broad of Investing taining hold currently shares the income. In The tion Street of mutual fund of the fund. agers was tributor an element jailed The Significance of Opera- management. Perhaps" we""should for current construction costs,, or ting Factors. Here again I plan make tests of rates of developare you afraid of the repercus- to pose a flock of questions. Let's ment of new business, or rates of sl0ns ^ of Chesapeake 11) $3,000,000 of Chesapeake & Railway third equipment of 1953 3%% serial equip¬ Ohio trust ment trust certificates, maturing semi-annually Jan. 1, 1954 to 1968, inclusive, i The certificates are priced to yield from 2.90% to 3.75%, according to maturity.' The issue is to be secured by standard-gauge estimated to cost $3,842,680: 226 50-ton high side gondola cars and 400 70-ton low side gondola cars. Issuance of the certificates is subject to the authorization of the Interstate the following new railroad equipment Commerce Commission. the offering Pressprich & Other members of groun Co.; are: R. W. Wm. E. Pollock & Co., Inc.; & Co.; and Gregory 8c Freeman Son, Inc. 44 The Commercial and Financial Chronicle (2552) in Birming¬ tion died at his home ham, Ala. on May 30. Mr. Wells who was 77 years of age, had re¬ BRANCHES OFFICERS, ETC. Bankers and stock (common under the Texas tired recently as CONSOLIDATIONS NEW ton $1,000,000), of and and under sures in 250,000 stock (par $20 $5,000,000, CAPITALIZATIONS week MacLellan this meeting was second an¬ nounced C. dent of bank. Hesuc- ■ceeds Freder¬ ick C. William of resigned from Bank Wildner * Bank has Y. He Castor Baker sota Linseed Oil elected Oil Board of Oifice, it its Park 100 announced was on June of Gil- B. Trustee of the Flatbush by N. Baxter Jackson, Chair¬ Mr. Rogers is a member of the law firm of Rogers & Condon; May 29 by John S. Roberts, President of the announced was man. on bank. "Vice-President, Secretary and Di¬ *:• >:■. rector of Metal & Thermit Corp.; Secretary and Director of Tin & * Company of State member Corp., ♦ « under the charter and title of the # Peoples Trust Company, according to an announcement by the Board The appointment of Charles W. Buek and Joseph Pickard as Vice- IPresidents announced was of Governors of the Reserve on pany of New York, The tem. June 4 by Benjamin Strong, Pres¬ ident of United States Trust Com¬ former which is cele¬ if joined the company after graduating from Yale 20 years «go, and has been an Assistant Pickard, an 1951. Richmond, Mr. of alumnus of New York £or the past four years. He is a Director of Federal Machine & ♦ the * * was on 9, William F. Cordner, for¬ merly an Assistant Cashier, was appointed an Assistant VicePresident. Mr. Cordner is assigned turned the at G. JManover the Bank Board of New Trustees. of 1949, of 4932, he York Mr. by Ne¬ University a- 1945, in and a Vice-Presi¬ 9, 1952. Four new Bank of Virginia by the bank's board meeting They are: Richmond. William fices. if if if At a special meeting on June 4 stockholders of the Southeast the ^ State Bank of Kansas JBronx Savings Bank of New York was to the bank. of the is a on June Nosworthy, 8 by T. President of numerous are holders Mr. Brunie is President ing the surplus. Empire Trust Company and Director of $300,000. shares corpora¬ at * C as an new Bank 1,000 stock¬ share, enabl¬ of $150,000 to appear market the that confident has point really been sold out to the stable base. The prin¬ cipal buyers needed at a time like this are the commercial banks, which are usually a major factor in the market. These institutions of forming a good make could of tax ex¬ use empt income but they are scared market and, addition, their liquidity prob¬ by the behavior of the conditions them little to invest in this lems present under leave Until field. the of passage time thaws out their bond accounts and there is some run-off in loans, we hardly expect that the banks will be of much help in stabilizing can municipal market. the While the also here outlook is encouraging because of the not too large supply of bonds in prospect, we should avoid becoming such that bears confirmed the we adjustment should substantial very ignore which has taken place. We that remember also could change business the the outlook rather drastically if picture deteriorates in the months ahead. if became effective May 29. * Oscar Wells, * a * or> - in • J; r attractiveness of preferred stock dividends to those who pay/ The regular corporate income taxes is so that great downward ahead years of exerts on this for account it pull tax In the* factor further a strong a yields. may, narrowing the spread in yields over cor¬ ment bonds., Such a develop¬ would, of course, substan¬ tially reinforce the view that pre¬ ferred- stocks are in a buying . though, as in the case-* of corporate bonds,1 we may not range-even be able to , identify the • precise situation a be volume of corporate years, past J 20 . the • stacked against a fair were deal for the investor in fixed in¬ securities. come there reduced borrowing. In that event, there could /I; > Persistently de¬ clining interest rates, a rising cost of living, and the impact of highly progressive personal income taxes combined to whittle away at the to visu¬ which in substantially a / Regaining Favor the Are' Securities Income V readily be real return The investor bondholder. the in other the on of stocks, common hand, the recovery from the attainment of benefited by depression and peaks in business activity. The experience yields. This would with equities was so good, in fact, mean that the present market that in many instances it pro¬ level is partially protected against vided a complete offset to the a general rise in rates. loss in the buying power of the spread from govern¬ narrower a new bond ment On balance, I believe that the long-term investor is take entitled to dollar. / in investor The high grade bonds only had his day from constructive the fall of 1929 to the spring of 1933; but for most of the next 20 years, despite some uneasy periods ignore the possibilities of some such as 1938 and 1942, the equity further weakness as a result of investor enjoyed his innings. aggressive competition by the Since the peak of the immedi¬ Treasury for non-bank money. ate postwar price rise in 1948, moderately a view of the corporate bond mar¬ ket. However, we should not Furthermore, we should not ex¬ however, there has been consid¬ pect the supply of corporate bonds erable testimony in the economic to decline abruptly because there record to the effect undoubtedly a substantial vol¬ tionary forces have is of ume bank which debt could that infla¬ lost their It is true that the out¬ strength. and would be refunded into long- break of term bonds motion were at all favorable. which prices temporarily, but for if market conditions raised the Korean buying a War set in spree fair the last two years the correction to conclude that good quality cor¬ has been quite complete and per¬ The basic reason is not porate bonds are in a buying area, sistent. difficult to discover. In brief, our even though we cannot positively identify the present market as one productive capacity and scale of of those elusive buy points which economic activity has caught up with the rise in the money supply come along once in a decade. In summary then, it seems which took place Preferreds Are in As usual, ferred the of we stocks a Buying Range expect can follow to this country built-in market on the contrary, in interruption tion such has inflationary bias, but, as it takes a major civilian produc¬ world a war to cre¬ prime quality ate pressures powerful enough to good account of cause a persistent price rise. stocks given that established no with special variations for supply and tax factors. Industrial pre¬ have during the war long since been trend the bond corporate pre¬ has It years. of a themselves corporate widened since the first of the year as reflection a the volume in It appears at least, the record issue market. of new that, for the time being we more may be orderly entitled to It markets. pertinent to observe that long- term borrowing by industrial cor¬ porations has not been important ket. With the exception of con¬ through 1952. Even though it is issues, there have been probably true that the citizens of hardly any important industrial the United States will always vote preferred stocks sold since the for inflation rather than defla¬ vertible readjustment in March, As 1951. rates in tion, when it is began consequence, a a necessary to make choice, there is undoubtedly a point of view on the the spread in yields for industrial stocks over bonds of comparable subject in the present Administra¬ quality tion. is than narrower it has different For the first time in many been for public utility financing, together issues do with the insatiable appetite of the attractive finance tion that lower yields will prevail in due course. Although it is dif¬ ing the persistent loss of purchas¬ ing power suffered by all those living on fixed incomes or hold¬ ficult to determine when the turn ing claims to dollar assets. will come, some ures currently. The high volume, of companies, have been primarily responsible for the bulge in new offerings. a year ago corporations capital expenditures programs be¬ gan to level off. Internal of funds continue as a is sources remain high reflection of good profits and increased it to depreciation accruals. If reasonable to expect that former President; (plant and equipment outlays will of the American Bankers Associa- yields during the past two Moreover, there has been a years because they have been in change in the inflationary bias of bond yields has produced a gen¬ strong hands and there have been our government which influenced erous differential from the rate only nominal additions to the sup¬ its decisions on major questions on governments. The spread has ply through the new issue mar¬ of economic policy from 1933 rise rapid <s its alize will that buying point. will stop rising, it is easy ferred Corporates Look Attractive The About capital from $700,000 to $1,000,000. The enlarged capital <lent in the Out-of-Town Business —C. per the stock, the Union National of Charlotte, N. C., has in¬ creased Assistant Vice-Presi- ■*>""1 yields stopped losing liquidity and their if to Through the sale of $300,000 of Appointment of Charles F. Mac- Bellan $250 if including the Home Insur¬ Company, Homestake Mining •Co., Francis H. Leggett & Co., General Reinsurance Corp., North '«$£tar Reinsurance Corp., etc. ance * The additional offered addition tions basis, comparative a expect City, Mo. approved plans to increase the capital of the bank from $200,000 announced tax quite en¬ ticing, yet it is difficult to become On exempt is The election of Henry C. Brunie to the Board of Trustees of The Arthur and despite the active buying of fire and casualty insur¬ ance companies and a few other investors, prices have been stable for only short periods of time be¬ tween renewals of the downward The Stanley Hayden, Cashier, Norfolk; Howard Weeden Brown, Jr., Aud¬ itor, Roanoke office, and L. V. Harrold, Auditor, Richmond of¬ in circle of individual wider buyers, an De¬ Assistant talion in the Philippines. * in mond; Lieutenant Colonel in. World War II, commanding the "745th Anti-Aircraft Artillery Bat¬ • in he re¬ elected Louis M. Clark, Assistant Cashier, West Broad Street office, Rich¬ was a Yale of elected held well, who joined The Hanover in 1932, is with the Plaza office. A graduate he of directors at the June 5 Newell has been Vice-President of The a war, was Cashier June on officers if 1942-45 Vice-President dent Sealy elected From cember, bank's were if on working in various Assistant an Head Office. * Richmond Following the to the bank, Assistant Metropolitan Group of Do¬ Division Grace active duty with the U. S. on Navy. June to the in charge Durham, N. C. joined the bank on Gordon May 1, 1936, departments. regular meeting of the Board of Directors of The Nation¬ mestic office and Trust Company, of Mr. al City Bank of New York held take Fourth become effective having 5. Outlook foi Money And Fixed Income Securities President of the Durham Bank & Welder Co. At will Va. bank's amount June therefore, During in if July 1. He succeeds Paul Wright, Jr., Vice-President, who is leav¬ ing to become Executive Vice- Vice-President Assistant the Streets became associated with the company in 1941 and has an if William T. Gordon, Vice-Presi¬ dent of The Bank of Virginia, at "University, been the Co. brating its 100th Anniversary. Mr. since Sys¬ of Sinking Spring Bank is operated as a branch of the Peoples Trust Buek Vice-President location doubtful, will rise materially further. cards slide. The Peoples Trust Wyomissing, Pa., a and Director of of the Federal Reserve System, Cerium Metals Corp., Chromium and the Sinking Spring Bank, of Corporation of America, GoldSinking Spring, Pa., an insured .•sehmidt Chemical Corp., New non-member, merged on May 25 "York Hanseatic Corporation, etc. •Chemical $400,000 to $500,000, the enlarged the are to sell common stocks, thus serving to curtail the supply if it should become unwieldy. It seems • Minne¬ Alan Mont, from of Savings Bank of Brooklyn, N. Y. 10 stock of $3,000,000) and Company. election as a mour of the South Texas Na¬ of Houston, Texas National Falls of Great Falls, Bank as¬ from Yields approaching the point at which utility companies will pre¬ Fixed much Avenue effected as Great the of tal has increased the capi¬ market. some Continued from page 7 also Hubert E. Rogers to the Advisory The J of $100,000 issues new fer * « stock to the amount new adequate, appears concessions good porate Sale of quality public good the volume of distributed Mr. is and '/..'/ Bank (common of the Titanium Metals of Com¬ Trust & York New Co. Lead President ' of N. Vice-President a <s A consolidation was Corp. of America and Nickel Processing Corp., and a Director -High Commissioner for Germany. Chemical Brooklyn, is National eral Counsel to the United States * of Harry C. Wildner to the Board of Trustees of the Roosevelt Savings Moik who * election ' if of May 29 Schneider, Jr. the announced has O. A. Adam President ♦ ►.-•y Director and Treasurer of the United States Chamber of Commerce." • tion in 1925 and a former tional the board earlier this year at the lime of his appointment as Gen¬ * Finance Corps. the -Schwa rz pany of tour in the Army Presi¬ ftfagle, recently January 1951, until April 1952. He held the rank of First Lieutenant by Alexander in 1948. Mr. completed a army duty from Secretary Assistant directors' & bonds South porting his death, said: shares of common "A native of Platte County, Mo., 'each); surplus of $5,000,000 and he was known in financial circles undivided profits of not less than throughout the country. He was $1,000,000. a former Governor and Director The election of William C. Department, Western Division, of of the Federal Reserve Bank of An addition of $250,000, by the Stolk, President of American Can the Manufacturers Trust Company Dallas, Tex., and was a Director sale of new stock to that amount, of New York was announced by Company, as a of the Louisville & Nashville RR., Horace C. Director of Flanigan, President, U. S. Fidelity & Guaranty Co., has been made to the capital of the First National Bank of Odessa, on June 8. Mr. MacLellan joined The First Na¬ Baltimore, Md., Woodward Iron Texas, thereby raising the capi¬ the trust company in 1940 after tional Ban k Co., Birmingham & Alabama tal as of June 5 from $500,000 to of the City of graduating from the University of Power Co. He was President of New York at Chicago. He was appointed an the American Bankers; Associa¬ $750,000. REVISED over utility the Bank National stock spread of charter Chairman of the the title of the Texas National Board of the First National Bank of Birmingham. Associated Press Bank of Houston. The consoli¬ advices from Birmingham, re¬ dated bank will have a capital News About Banks NEW the Union National Bank of Hous¬ .Thursday, June 11, 1953 .. /4eclme modestly and inventories time. some not Industrial years, there is actually some genu¬ outstandingly ine sentiment in favor of check¬ look except on the assump¬ buying at present taken in field the of Meas¬ mone¬ concessions from the yields of the past year or more appears tary policy and efforts being justi¬ made to control Federal expendi¬ fied in view of the difficulty of buying in quantity in the absence tures tration is of further inflation an active In the ferred ket case new issue market. of public utility pre¬ stocks, the continues have indicate seen that the 'determined in of recent the Adminis¬ to avoid type we years. In one other major respect, issue mar¬ and, in my fixed income securities look much very attractive better than they have for many new active opinion, offers investment, opportunities.. The years; the/changed yield. rela- Volume 177 Number 5228 The Commercial and Financial Chronicle ... (2553) now prevailing. During the past two years we have seen tionships a substantial between closing of the bond stock and Continued gap Our .yields, and this probably will go still fur¬ Compared with the situa¬ ther. tion which through existed for 1949, from substantially reduced. This does imply that carefully selected equities ued many reasonably val¬ not are it does nor stocks suggest that not still attrac¬ are tive for long-term investment. It does mean, however, that the in¬ vestor can much more comfort¬ ably afford position on take to sheltered a the sidelines in fixed income securities. Even though abandon ought not to we constructive a view of equities for the long pull, we can¬ not escape some feeling of relief at no longer : being pushed and shoved into common stocks by the pressure for income. Relief from a perpetually easy money philos¬ ophy causes some painful transi¬ tional problems; but it puts us back in the business of doing a balanced investment job for our customers.- 'v V- ;.;Vl";;' ..' 'r, •_ ■ • A The government market, helped by Federal Reserve purchases Treasury bills, and reported acquisitions of the new 3}4s by of government trust accounts well as was able to stage Grandpa Again was commercial banks has added volume to a a * and the banks decide If are teaching maldistribution were to obtain thereafter our cur- inflation ist to return to the gold standard with gold at $35 an ounce. 1 Contrary to what many of my but in their American compatriots believe, it is simply arbitrary and made pos¬ sible for the time being by special tanal circumstances arising from World War II. These circumstances en- of the Financial Committee of the from Nations about the able the United States to continue to acquire gold at $35 an ouncg the a"d to maintain the price level by world's increased reserves $9,150 million at 1925, to about $11,350 mil- lion at the of end 1931. ^oney ancJ credit inflation while This in- represents an annual rate 3%% per annum which was not no doubt infla¬ of economy. The Federal Reserve Banks have been buyers of the those wha on propagandizing: collapse of a and rency and the needs of the Treasury, and the of result a the blame erroneous theories. The surest way Treasury bills tightness in a very w*at t0 cal1 *• generally accepted rate of growth of produc- normal money the market. This, along with reported small pur¬ long-term marketable obligations for government trust funds, helped to turn the market for these securities in the and We in trade countries as consider relevant the H remains to be the price of gold gold-using while wholdu a first , ii i/ u s.^ n lower than the tion t* ? crease some as capital investments), the NaCity Bank mentions that according to the Gold Delegation the end of alleviate a is not the dollar which gives value to gold. The price of $35 an ounce in authorities in what they have been attempting to accomplish. It is evident that the future trend of the government market will de¬ not be evident in the be the part on (due to disequiunderlying trade librium of may or may and should we should now," says the National City Bank) lay not in any overall lack gold pend upon the policies of the powers that be, which will there To prove that the trouble ("then -as : ;>■■■ enough so that the levels which it. psychological reaction ' * con- ' govern¬ . ** central of inflationary —« will have to be put League chases time of gold was the specific remedy to the situation, but the governments and experts did not see the light then. of monetary reserves, to new •• evitable about inflation. We have inflation when the government, with the that a • . price reached in the sell-off will be maintained in the future? To be sure there is no immediate answer to this question because it will» restricted at off flagration." There is nothing in¬ of the average person of a markup of gold, market which has been Long Bonds at Low Point? tended set j have The most important question in the money markets at this time is whether or not prices of long-term government bonds in- has * lars and sterling. A change in the similar fashion to point. Uncertainty is still a very prominent factor in the ment market despite the rally which has been witnessed. tionary tendencies that "such action could be the torch to in - gold shortage but the gold valuation of the active but nothing to get excited about yet from that stand¬ take into consideration - not the so-called was even the recent decline went low — wrong situation monetary though the powers that be had to make purchases of the nearest maturity to bring this about. According to advices, corporations with funds were buyers of Treasury bills as well as the tax anticipation bills. Tax switching by some of the Are done i- was place. What a element, should also be given The short-term issues also responded in which been :— to recognize in the gold price the inflation that had taken big assist in this operation. more have ~ markup of gold and it states that seriously inflated amounts of dol- dealers and traders, the professional the rest of the market + 1925, sizable rally from the new lows that had been made just a short time before. "Open Mouth Operations" and short covering by a should moR as companies, dealers and other investors, ance What reports of scattered but not takings of the longest marketable bond by life insur¬ too sizable sterling, and the postseriously inflated price level, war take time to find out if the sharp decline of about a week ago which carried most government issues down to new all time lows was of sufficient magnitude to satisfy the desires of the monetary # Harold Smith Is The Fiice of Gold dollars and the example, Governments on 11 page By JOHN T. CHIPPENDALE, JR. 1947 incentive to buy equities has been not Reporter from 4$ we *?dl.vldufla* ^, a e to knovr whether seen will be changed still masters of the are situation, or by a chaotic route, pertinent The time to change the price o£ this argument because ir- gold is not after opposite direction. There was also some aid in this operation from the purchases by dealers and private investors (evidently life figures insurance 1931, and second, the National monetary order and to prevent a City Bank should have compared severe and prolonged depression, the annual rate of gold production If, without further waste of time^ with the rate of growth in value we plan carefully the restoration, of the social product. of the international gold standard* This job was done by Per a price of $70 an ounce would companies). These latter acquisitions were not large, according to advices, and were more of a position rounding out nature to fill in some of the 3V4% holdings that were not com¬ pleted at the time the new bond was offered publicly. Divergent Opinions Cited Harold B. Smith B. Smith, Pershing & Broadway, New York ,> Harold Co., 120 City, is a grandpa again. A daugh¬ ter, Lorraine Pratt Smith was born June to 5 Irene B. Harold and sister, Deborah May (four in June) is almost as thrilled as grandpa. Smith, Jr. Her tween duced there (Special to The Financial portant proportions. Chronicle) LOS ANGELES, Calif .—Howard Seventh Los Inc., 210 West members Street, Snedicor Davies & was Co., previously Daniel the of Angeles Stock Exchange. recession that might come from here on in will not be of im¬ It is being pointed out that the downtrend in prices of Treasury obligations has been sizable enough to prevent the selling of these issues in order to get funds that would be used to make loans that could increase the inflationary pressure. Also the opinion is expressed that price declines from the recent lows would not accomplish a great deal more than has already been any T. Snedicor has become affiliated with Fairman & Co., those who hold the opinion that market has about run its course and are Mr. with Reeves & Co., and Dempsey-Tegeler & Co. done. confidence and psychological factors have been badly The shaken by the rapid and sharp decline in quotations of government been from a depression bast set in. Our aim must be to restore 1925 to rightf in New York a probably, accomplish what Per Jacobsson com- seek. If, on the other puted that in 1913 the relation be- able deficit to finance, then the outlook, according to some money followers, is for higher interest rates, both in the short and long-term sectors. This group is of the opinion that long-term interest rates will go to the 3V2% level if not even higher before the Treasury is through with the financing of the deficit. have few years ago. market On the other hand, would 1929 and not from Jacobsson If the pressure is to be continued on the money market as it has been in the past, and considering that the Treasury has a siz¬ the decline in the government Joins Fairman Staff 1914 to the amount of newly progold available for monetary increase million) ($250 purposes in national the ($2,7°° million) while was in as was the and income 1 as 19^ 1 to 29 ( gold $230 to 11, natl°"al increase nf'tbe million). One of the causes of th change the just mentioned re- in lation was higher price 1913 and cost of it is the precisely level at least 45% 1929 than m in 60% of the will in rise the living. From these figures production measured in the 1913 price of gold in terms of dollars or sterling contributed less to brought about in the changed by of gold chaotie a may reach indeed am abnormally high level. Ladies and Gentlemen. I am the lack of 3ense of urgency for positive action shown by a11 g°vernments despite omi- nous Sympt0ms in the international economic situation. It is our duty shou{. from the top of our vojces the dangers ahead if we da not act promptly, intelligently and wjth courage, sustaining prices in 1929 than in of limiting the creation of credit. situation, the price be route, and it we to be masters cease plain that the current gold obligations and it is believed further recessions in places of these securities would do more harm than any good which might be way we million' struck by million* w® hand, wait until Halsey, Stuart Group Offer Gulf Pow. Bds. 1913. Substantial Tax JJ. S. TREASURY STATE and Switching According to reports, there has been a fairly sizable amount switching among the commercial banks especially those that operate outside of the large money centers. These banks, according to advices, have been moving out Of the securities in which they have losses and replacing them with issues that have the same coupon rate and comparable maturities. It is believed there will be an increase in this kind of operation as the year goes along. of tax institutions Appeal to Washington is It SECURITIES indicated the among largest that the owners of smaller deposit banks, which are the outstanding marketable longthat have shown the largest price going to be done in the future to stem the decline in prices of these about a a more According to reports, these institutions are concerned further hardening in interest rates because it would have adverse effect upon them than upon the larger banks which have the short maturities and have been helped by the loans they have made at advancing rates of interest. This is a situation that is getting considerable attention, according to advices. Aubrey G. Lanston & Co. (Special to The Financial Chronicle) INCORPORATED 15 BROAD ST., NEW YORK 5 WHiteball 3-1200 231 So. La Salle St. 45 Milk St. CHICAGO 4 BOSTON 9 ST 2-9490 HA 6-6463 With Reinholdt & Gardner ST. LOUIS, Mo.—Joel W. Pope Triplett have be- and Thomas B. come associated with Reinholdt & Gardner, 400 Locust Street, members of the west Stock Two With Standard Inv. (Special to The Financial Chronicle) LOS ANGELES, Calif.—Richard H. Rue and Michael J. Flannery have become affiliated with' gold price would add to the moner.vxxxxvxvv Mid- forniq, 210 West Seventh Street, Mr. Pope Mr. Rue was previously with Hill previously with Olson, Don- Richards & Co.; Mr, Flannery nerberg & Co., Inc. with Holton, Hull & Co. was v— potential for inflation. It is a strange phenomenon that the same persons who express freely their worry about potential inflation due to a rise in the price of $7,000,000^ Gull mortgage bonds, 4Vs% series due June 1, 1983, at 101.295% and accrued interest, to A new yield 4.05%, is being made today (June 11) by Halsey, Stuart & Cck. Power Co. first i—;—• —j- Award of the issues the group at June 9 on its was won competitive sale bid of gold do not raise their voices by on 100.55%. The bonds will be redeemable at purchased by the Federal Reserve ranging from 104.30% to is inflation of the purest sort. First of all, there exists no nec¬ uniform relationship be¬ tween the value of gold reserves essary or and the amount mand. Since 1940 of effective we have inflated de¬ supply more than three despite the fact that we maintained the price of gold at $35 an ounce and without any substantial increase in our gold reserves. Second, if the profit of gold revaluation is allocated to our money times, amortize the debt of the govern- 5aen_t t°ward the Federal Reserve ■* Inc. and associates. against the continuous increase in amount of government bonds Banks, which ■*-- regular redemption prices par, or i£ they are redeemed through the sinking fund or the maintenance fund, at special redemption prices ranging from 101.30%J to par, plus accrued interest in each Gulf Power Co. case.. is engaged, within the northwestern sector of Florida, in the generation and distribution of electricity, and in¬ cident to its electric business, the sale of served appliances. Territory directly and indirectly by the company has an area of about 7,400 square miles and an esti¬ mated population of more than. 280,000. At the close of 1952, the number of electric customed .jBanks, the potential inflationary served directly was 62,120. OperStandard Investment Co. of Cali- consequences; of the rise m the ating revenues of the company tor New York and -Exchanges. Bank in the the term obligations and the ones depreciation, have .put their' case before some of the important political figures in Washington in an effort to find out what is securities. City National that the markup tary base and provide an enlarged of MUNICIPAL The (2) contends Offering was price of gold neutralized. The National the are completely aggregated City Bank stresses psychological the 12 months ended Feb. 28,1953, effects of a come come was was $7,993,000; gross in¬ $1,928,000 and net in¬ $1,833,000. 46 The Commercial and Financial Chronicle (2554) load Salesmen Have Become Lax During the past 12 years, salesmen and sales managers have tended to become lax in their attention is now the field. deserves which problem of what this serious another phase of is The proportion of such' tures wl11 vaiY wlth each com~ IslSTas 'the growth 'o'f "vou that there has been revenue so general decline pense per in the Hniiar nf sales will then be able to deErmine what the earnings would a bave befn lf ther® bad ex- <rrn« Every effort should be put forth increase sales efficiency by a study of methods used effectively to other which too War II You prior In many cases mass form one duce another or revenue more to be found far present condi- selling will pro- dollar of per sales expense. tremendous if sales we Qf increase an increased you expressed in to remain at the present low figure. is a It sales. guide you pUf 50% or will give to the profitably your sales jnto sell in order for service, allies in or the of the customer's dollar. Regardless Other effect is ment advertising and find that mass production makes it possible for them to spend proportion of larger and larger their revenue in a sales effort and at the of whether Building then, is the first phase Building Profitable Load. I suggest that each home, take out go for report one of which customers "can make in electrical appliances each it year, incumbent is upon the A committee will result from By way of illustration I would like to submit figures on a few A Retail Add'l Ann'l Cost: Kwhrs. Price Revenue Revenue 90 1100 $316.00 $19.80 16.0 100 3600 150.00 36.00 4.2 155 Ironer 100 100 Conventional Washer 20 Electric * The above values mate has Blanket. only been calculated kilowatthour for 66.0 1.00 285.0 25 153.00 0.10 1530.0 130 41.00 2.60 15.7 washer replaced. approxi¬ influence in 20 per appliances except water heaters which have been calculated at 10 per kilowatt- hour. the The calculations made above basis will vary dependent on widely local vari¬ upon many ables. A similar we get their assistance the market for appliances which have a broadening those low I ratio of very can study on lighting pro¬ interesting results. If induce a commercial cus¬ tomer to replace at 100 watt bulb with a 300 watt bulb, the custo¬ mer's increased investment is trical $0.66 and year 2500 hours per per kilowatthour upon 20 is $10. first cost. full industry is to approach its potential in dealers must and the next few manufacturers, distributors years, level to do at the more increase public ac¬ ceptance of the new appliances. An adequate job cannot be done within the sales budget of the op¬ erating utility. Second Phase of Building Profits This study and the action which results from it constitutes the sec¬ ond phase of Building Profitable An analysis of this type will en¬ Load. able you to give more intelligent direction to your sales effort. In We many companies ing lighting, for some of our the we are neglect¬ original market, newer and more glamorous applications. With a limited budget, you can direct greater emphasis to the promotion of those appliances which have a higher ratio of rev¬ enue to original cost. This infor¬ mation is also useful in discussions with', manufacturers, have toward fixed (1) of home lighting new importance suggested technique. If there is in the question any minds of any of you as to the wis¬ dom of a controlled approach to provided a relatively year period, Or an average of 155 As a result the cus¬ kilowatthours per year. ' turned the lights on only In the five years from 1947 to daylight failed either be¬ 1952 the kilowatthours per resi¬ of nightfall or because of a dential customer increased ffom lighting low intensity. tomer when cause , storm. As a result we had the 2319 to 4106, an increase of 1787, lighting demand but sold rela¬ or an average of 357 kilowatt¬ tively few kilowatthours. 1 - hours. This is an accomplishment If fluorescent lighting is used so; outstanding that it deserves to replace incandescent equip¬ further study. • k • t ment on a fixture An per fixture analysis of the monthly basis or even to produce only sales by classes of customers double the intensity, the use of shows that whereas the sales were lighting remains unchanged. How¬ fairly uniform throughout the year ever, when fluorescent lighting is in 1942, the variation between installed to provide an intensity Summer and Winter in 1952 is ' the shape the of load Rural and metropolitan char¬ Variation between compared to as in use area Relative saturation of various types of appliances. Special inducement time some the factor inherently at high load appliances such as coverings or attic Other factor. bed rates of fa¬ day or load the factor of any appliances system. Other their own load have characteristics year. and widely vary from another. at a taken curve time of peak is important but study of annual load for various hours the of day will be helpful. of his company's daily and annual load curve determine can in ad¬ the effect of any individual vance appliance the load factor of on courages the of be This method year. approached the load cause with curve should caution is a be¬ changing. A number of years ago our own found that there company definite load valley summer At curve. the was in a the generating ca¬ pacity that will be required to serve that appliance. With this in¬ simple net a of lower and variable the trend investment toward costs in the pro¬ duction of electrical energy. This trend causes load factor and its improvement to become major one responsibilities- of of the ,sales I;y have followed the practice* for a manager. I many years, of having the men, in their snare profiles drafts¬ and return it is determine on the appliance the increment V Relatively little information has been available on the load charac¬ teristics of various appliances and for the purposes of this presenta¬ tion the information collected been modifications in this rate tion its in been it has not entirety large increases would because of incur. many customers which the over has years This appendix h£s been entitled word cluded "Rough" because heating to resistance on stresses this house has in¬ been point and extent. some in : The guide does not cover all ap¬ pliances and the information on companies to 'some of the newer appliances iis adopt rates which will be com¬ somewhat less reliable than that pensatory under all conditions. the urges member The sales manager has the portunity and therefore the op¬ re¬ sponsibility to influence the load factor by a study of the daily and load seasonal company curves of his own with respect to both and typical sys¬ distribution feeder. others examination of these load curves will indicate those periods of the day or year were which to draw After a a fewer num¬ available from conclusion. selecting this subject for presentation at this meeting, I was most interest in the announcement which Mr. Clarence H. Linder made at the Annual Sales Confer¬ of the Edison ence An because ber of studies tute in Electric Insti¬ Chicago this Spring. added Some may of ple, system which a relatively obvious. For the company serving study exam¬ an in¬ Until such time as a complete is available, the data con¬ tained in the appendix should be study of substantial have assistance to allowed less of that the rate design. proper sult, the house load to saturation As of a re¬ electric heating reached between 10% in 1952 with devastat¬ 8 and ing results to system load factor. Any sales manager who permit¬ ted situation a in occur a similar to this to business-managed, tax- paying utility would have sold' his into receivership. company Keeping Load Factor in Balance .A similar situation, on much a smaller scale, and less pronounced in its effect is developing in many utilities where, due to lack of in¬ formation, pressure from the man¬ ufacturers part of a building produce , or prejudice on the sales manager, the load is tending lower load factor. I program a to The situation in any utility sys¬ never remains static. It is tem constantly changing. One appli¬ ance may produce very desirable characteristics this year but two from years it now have may a much greater peak responsibility. By constant careful analysis of load conditions sales a of his own system typical load to various manager less more on reference appliances,< the shift can the em¬ appliance having one favorable to one having a favorable load characteristic. Opportunities for load balanc¬ ing for improved load factor are also 'present in the industrial and commercial ditions fields classifications. vary that widely so it is in difficult Con¬ these to pre¬ pare any generalized data. Fre¬ quent opportunities for load fac¬ tor improvement will be discov¬ ered if the sales personnel dealing with such customers are fully quainted with the ac¬ program. Selling for improved load factor is the third and final phase of this discussion, Load. on ' Building Profitable * . Joins (Special to those King Merritt TSe Financial ^ LOS ANGELES, liam E. sociated ances. of the conclusions was parts grow without direction and with¬ out in which load be drawn from such Certain system, notably Memphis, have at¬ tempted to discourage house heat¬ announcement concerned the pro¬ without either. 1%. This posal of the General Electric increasing Company with respect to a com¬ distribution system peak or sys¬ prehensive studv of the load tem peak or without increasing characteristics of various appli¬ be can The saturation of elec¬ heating in 1942 itijs not intended phasis from, to be issued than and Characteristics." night load the appendix is complete nor that reasonably safe but future research on the subject seasonal concessions are always may not alter the-data presented dangerous. The report which EEI has TV A. curves The The 288.8 was you probably real¬ system referred to is ize that the Residential Load July. July. By this time "Sales Manager's IRough Guide to that the information contained Concessions to build appear in information available. have but 226.6 mil¬ 81.1% high¬ in million kilowatthours higher than a the in been possible to correct the situa¬ are daily the to from revenue building summer the growth in refrigera¬ made time, cut out the matter disposal is included in an appendix to this load but paper, which is now available in tor saturation and general accept¬ print. At this point I would like ance of air conditioning have in¬ to express my sincere appreciation creased the summer peak to a to those who hav£. cooperated to point just below the winter peak. make this effective was and relatively his at investment. time same hesitancy among the large stores to install air conditioning equipment be¬ cause of the high operating cost. A special summer off-peak rate was in distribution and constantly formation or sales ing, but other components of the shape The annual load the Residential were kilowatthours, than er condition in the resi¬ classification. tric house improve of the daily load The sales manager who is throughout the year equipped with a knowledge of the but the shape of this curve at time shape of the load curve of various of the annual peak is most impor¬ appliances and has made a study tant. lion the will and this sales in December fans by their very nature operate varies curve although most pronounced was dential total sales in December A few appliances such as clocks one The load Summer off-peak (5) of improved kilo¬ and customer satisfaction. electric time. sun evaluated upon the the sale of additional operate Relation of time in industrial, laundry lighting be not very pronounced. The sales to all classes of customers in 1952 were higher in the Winter than in /the commercial, and watthours, of seasons the year. the the basis of connected load but rather upon acteristics. (4) kitchen should trial load. (3) Thus which in- Proportion and type of indus¬ tem considered higher costs distributors cardboard study of on The whereas the gross revenue to the utility based to revenue firmly believe that if the elec¬ local duces could are: curve Some and dealers to at all 3.10 285.00 revenues are electric and 204.00 50* 100 In addition to conventional EEI of of the factors few there Annual Automatic Washer.._ cases, problem and recommend a program of load promotion that of 60 foot candles or more, would improve the load factor of lighting is in use whenever each member company. space is occupied. owners Water Heater promotion sales managers who wish to adopt this as sys¬ such advance the increment investment which probably appliances: Range the In concerned. additional load at some period of the day or some season financial Load is distribution feeder and of the sys¬ tem. He can also determine in you % New off-peak load insofar an tem utility to make sales manager of a your Appliance— lighting One way of improving load fac¬ tor is to design a rate which en¬ You 1952. to the invest- as our the use of the appliance. In makj,ng thjs study consideration must ^e given to percentage of sales that will replace older models of the same appliance. a Load This, of definite limit revenue . m rrontabie a a reduce the real cost of the product to the consumer. First Phase morning peak a residential study of the retail cost of various appliances and the electric time same a ben¬ a net on the for appliances is high and since there of cost earnings and any new load which tends to im¬ prove both load factors will be most profitable. If all utility systems had the same type of load curve the solu¬ tion would be relatively simple. of industries have learned the value system which of generating either load factor will have voring for the the and (6) energy its operation. other in- gram season field investment Any load building pro¬ which tends to improve eficial must equipment or the facilities of the influences product, some industry electrical uses to us factor com- the in is with that are facilities. busi- our for our we appliance some which load (2) that market a distribution in cooking, pany engages in the merchandiswater heating and clothes drying ing of appliances or not, the major is keener than at any other time function of its sales effort is to in our history. Even more im- create a demand for an appliance, portant is the other competition The first cost of many electrical dustries area consulted very are influences which in as can peculiar aspect of is our expense, it forget. have terms of gross revenue, The competition from that f0 25 of better a amount affor(j electric al- substantial a sfmpie matter to study the effect ness not will we the most of them make low that been -decline in net earnings, with this information One opportunities which lie before us in this great industry are The so have may under costly tions. in effective were World Methods industries. bf sales and no sales ex¬ w.n f.nd that increased rpvenue dolar of gross revenue penge in llnJf bee1r| ® sales activity were carried on. following the start of World War II some sales budgets were cut. ™ where they kept are 20uld not be eliminated ®^en period the During rnn«?idpration models These curve. a curred if these sales had not been made. In the analysis of your sales expense you will find that much given to this matter and within a relatively short time a hard hitting team will be back in being There load dustrial will find Thursday, June 11, 1953 . this- matter readily should take on a of load building, I because profitable lighting load would like to recount the history planning a sales can be added without increasing of a major electric system. gross small increase in net earnings. program or in appraising the re¬ the peak. In the five-year * period from The advent of fluorescent light¬ 1942 to 1947 this ^o determine the effect of in- sults of past sales programs. system showed In the improvement of load ing provided a great opportunity an increase of from 1543 to 2319 creased sales, deduct from the figures the revenue from in¬ factor we have two types of load for utilities,, the importance of kilowatthours per year per resi¬ There is the which has not been fully recog¬ dential creased sales and the expenses factor to consider. customer," an increase of which would not have been in- load factor of the particular feeder nized in all circles.. Older types 776 kilowatthours over the five- will find program. Much sional then are substantial increase in accessible and revenue but a relatively frequently in through an active sales methods. curves. profiles Building Up Utilities Profits corrected These daily load assembled in such a manner as to produce what might be termed a three dimen¬ Continued jrom page 7 .. Lawson Calif/ has ' Chronicle) — Wil¬ become as¬ with King Merritt & Company, Inc., 1151 South Broad¬ way,. He was formerly with Revel Miller & Inc. , Co., and Reagan & Co., v Volume 177 Number 5228 The Commercial and Financial Chronicle (2555) The following statistical tabulations Indications of latest week Business Activity week or or month available. month ended Latest AMERICAN steel Equivalent Steel operations (percent of capacity) gallons (net tons) §99.9 June 14 "99.6 100.3 §2,252,000 "2,246,000 2,262,000 6,359,950 6,276,150 6,983,000 6,949,000 DEPT. PERMIT AREAS of that date: t output (bbls.) —May 30 23,614,000 23,143,000 23,322,000 17,751,000 output (bbls.) May 30 2,518,000 2,296,000 2,674,000 9,868,000 9,840,000 10,012,000 7,758,000 output (bbls.) May 30 Stocks at refineries, bulk terminals, in transit, in pipe lines— Finished and unfinished gasoline (bbls.) at May 30 8,564,000 *8,348,000 8,457,000 153,923,000 157,599,000 122,161,000 23,527,000 70,842,000 22,540,000 20,040,000 67,052,000 61,314,000 50,966,000 May 30 41,425,000 40,629,000 38,989,000 38,523,000 May 30 786,755 769,618 781,499 664,223 657,494 682,457 615,459 of March $907,260 $665,299 $783,787 546,689 368,183 494,179 258,466 213,028 197,739 102,105 84,088 91,869 $1,083,795 $1,473,244 $1,433,642 __ 696,860 of cars) __May 30 Ago S.— . nonresidential 19,050,000 May 30 U. construction residential 7,851,000 152,435,000 THE OF LABOR—Month omitted): Year Month VALUA¬ 1,812,000 May 30 OF Previous building New 5,573,000 . URBAN New 6,356,150 117,047,000 Kerosene Distillate fuel Residual oil fuel output (bbls.) oil Kerosene ibbls.) at Distillate fuel oil (bbls.) Residual fuel ASSOCIATION oil OF (bbls.) at AMERICAN Revenue (number of cars) CONSTRUCTION U. S. Private (no. construction $215,247,000 $291,296,000 OUTPUT (U. BUREAU S. OF coke (tons) 152,466,000 106,855,000 137,452,000 100,159,000 119,062,003 82,787,000 97,269,000 79,359,000 99,733,000 19,329,000 1 40,183,000 20,800,000 May 30 8,825,000 *8,785,000 8,750,000 in millions 757,000 687,000 587,000 ,743,000 131,100 *138,700 116,000 95,600 *112 114 97 May 30 .--May 30 - '• / v;: . 97 14,731 8,778 6,186 5,194 5,154 4,053 1,401 3,998 1,383 1,098 3,952 3,394 6,511 term 6,409 6,209 Credit April 30: credit consumer Personal $20,940 19,267 RE¬ SERIES—Esti¬ credit goods loans Noninstalment $25,676 19,666 FEDERAL Automobile Other 246,422 $26,177 THE OF REVISED intermediate of as 450,093 136,853 OUTSTANDING—BOARD and consumer 737,127 696,515 573,669 9,073 short 762,722 710,522 350,969 municipal. SYSTEM Instalment - credit Single payment loans... Charge accounts RESERVE Z 100 = 635,079 448,716 97,747 and GOVERNORS Total 8,327,000 May 30 — SYSTEM—1947-49 AVERAGE of Repair and modernization loans...! DEPARTMENT STORE SALES INDEX—FEDERAL ; | ■> NEWS-RECORD—Month construction CONSUMER CREDIT MINES): Bituminous coal and lignite (tons)I Pennsylvania anthracite (tons) Beehive EN¬ — construction State $225,917,000 153,844,000 ;128,448,000 June _ $252,625,000 86,799,000 June 45,661,000 COAL CONSTRUCTION construction mated June r municipal etc. omitted): S. Public OF June construction and (000's U. Private , Public construction State GINEERING SERVE NEWS-RECORD: Total ENGINEERING Total ENGINEERING — alterations, Federal freight received from connections ENGINEERING CIVIL RAILROADS: freight loaded CIVIL Additions, May May 30 at Revenue .• CONTRUCTION IN S. All May 30 ! (bbls.) average U. 254,000 Gasoline « BUILDING of May 30 stills—daily are as Month 12.2 (000's (bbls. average of quotations, cases Ago June 14 each)_. to runs Ago in or, either for the are Latest TION Ingots and castings 42 Week Dates shown in first column that date, on production and other figures for the cover Year to— AMERICAN PETROLEUM INSTITUTE: Crude oil and condensate output—daily Crude Month Week IRON AND STEEL INSTITUTE: Indicated Previous 47 2,147 2,142 2,007 2,602 2,535 1,691 1,665 1.667 113.7 Service 113.6 112.9 2,673 credit • EDISON ELECTRIC INSTITUTE: c-iectric FAILURES June 6 ._,.__—June 4 on 000 kwh.)_ output (COMMERCIAL INDUSTRIAL) AND BRADSTREET, INC- — —_ DUN — __ 8,096,330 *7,956,144 7,896,539 7,005,066 217 168 165 CONSUMER 120 Month & ' ■ All Pig iron steel (per gross ton) Scrap steel (per METAL PRICES Electrolytic M. & June : ton) gross (E. .—June - 2 2 June _ J. Lead (New York) Lead (St. Louis) East i 4.131c $55.26 $55.26 $52.77 $38.83 $38.67 $38.83 $42.00 ;_ St. 29.700c 29.675c —June 29.825c 29.725c 29.925c 96.000c 97.000c 93.000c Louis) 29.675c ! and !: 111.5 bakery products products—i Dairy and 13.250c 13.250c 12.500c 13.050c 13.050c 12.300c 14.800c June 11.000c 11.000c 11.000c 17.500c at 115.6 107.4 113.9 114.8 110.3 110.4 115.0 115.5 121.1 110.4 109.1" 105.0 and Solid 117.0 fuels and ^ Household ! operation 103.9 123.6 oil— 116.9 106.5 124.4 112.3 107.8 fuel Housefurnishings 114.0 121.7 106.5 electricity 116.8. 122.1 Gas 15.000c .June — 113.9 117.7 109.0 :____ vegetables. Other foods at home _! ^ 111.3 106.8 .* 111.7 111.1 118.0 - ! Meats, poultry and fish 24.200c June : home Cereals 121,500c — 1 at at 36.875c June —— at at April: Fruits June Export refinery attin (New York) Zinc 4.376c $55.26 ' 4.417c QUOTATIONS): Domestic refinery at f- 2 4.417c copper— Straits of 100— = items Food *. (per lb.) INDEX—1947-49 Food IRON AGE COMPOSITE PRICES: Finished PRICE 108.0 108.7 114.3 - 111.0 114.0 * MOODY'S BOND PRICES DAILY AVERAGES: Apparel U..3. Government Bonds— June 91.86 Average „ June 102.46 corporate Aaa 90.65 92.12 98.26 102.96 • 103.80 110.15 June 105.86 106.39 106.74 June 104.31 105.17 105.86 June 101.31 101.80 98.57 98.88 - Railroad i _ U. S. BOND DAILY Bonds 101.31 101.97 107.44 103.30 109.63 UCTS—DEPT. 106.39 113.50 March: 105.17 —.10 _! 3.19 ■ . 1 3.07 -'v. * June 3.60 June ? 3.57 2.62 3.52 3.37 3.35 3.40 — I. June — (tons) Percentage Unfilled OIL, of orders PAINT .1949 (tons) AND AVERAGE . 100 = Stocks 3.55 Refined 3.19 3.44 3.37 417.4 436.5 — 341,666 200,761 Stocks 254,917 188,938 Produced —_— VTay 30 97 96 97 79 May 30 459,811 483,436 539,033 374,989 5 106.18 106.24 106.47 LOT DEALERS EXCHANGE Odd-lot by dealers of Number of ON EXCHANGE (customers' Y. N. — Customers' short Customers' - £|av short other May 23 Other . TOTAL ROUND-LOT ACCOUNT FOR 173 272 , Stock 4,988 7,849 11,444 765,583 $24,900,347 $23,289,207 $31,423,632 $24,761,429 194,390 179,530 251,720 164,050 sales Other 1~94~390 179~530 251/720 292,910 242,180 319,280 1 ROUND-LOT ' WASHERS SIZE IRONERS AND 'Total purchases •lf ■ Short ■ 1'•! •' < ■ *■ Other sales Total sales. • . 233,790 297,810 292,080 Total 6,268,720 7,389,220 5,668,120 5,968,570 6,566,530 WEIGHTED 7,681,300 Railroad • 5,848,730 ' ' Short sales . Total sales . Other " * rJ;. sales Banks i__! Amer. Tel & (15) 197,980 72,850 12,900 3,400 22,000 173,800 166,300 224,830 188,300 237,730 ———— 219,730 222,862 259,705 59,960 60,190 314,470 323,010 —1 383,200 May lb May 16 978,170 1,109,192 1,192,625 ^ WHOLESALE , PRICES, NEW 235,980 210,500 — —.May 16 851,755 1,098,940 1,194,060 " All commodities.. products May 16 1,020,645 1,334,920 1,404,560 932,534 RYS. U. S. DEPT. Processed , June 109.8 109.8 109.9 . ;.;*Revised figure. of Jan. l, " June 97.3 99.0 109.7 104.8 105.1 104.5 „ 1953 as against the >Fan. 1, 1952 basis of 95.9 June 113.4 108,587,670.tons, of $494,321 109,638 118,446 268,935 282,830 91,451 84,268 252,291 206,550 218,693 $1,391,203 125,944 71,410 «. 223,840 202,470 92.3 Commerce operating 112.4 $77,799,925 .1 deductions from § Based on new annual capacity of 117,547,470 tFigures pot .available because of oil strike. tons for fixed fixed deductions income charges-——— charges—.— —-- —-— ! * — (way & structure & equipment) Income ' $80,074,947 16,087,475 ! 4,369,320 92,039,095 4,334,922 92,059,556 55,943,484 <93,938,665 60,416,871 2,822,340 57,594,531 40,592,924 ! 40,876,453 taxes —-—-— 44,393,072 48,811,230 13,678,36L 7,240 W? 28,196,^07 2.80 2.89 ,58,744,111 2,800,627 Dividend appropriations: On On as ' common preferred Ratio stock stock———! of income to fixed $75,951,620 18,233,038 98,307,985 3,818,626 _1______ 18,078,257 95,878,182 25,101,575 — available after Federal * Commission)— income— income Depreciation 115.5 113.4 $1,393,317 February: -Net income 109.2 94.3 *113.5 ' foods Ulncludes 660,000 barrels of foreign crude runs $503,119 316,046 $1,626,602 institutions——. income Total 111.5 ^June and 5,^5 $604,854 " r—- - - (Interstate Income 97.2 farm lending Miscellaneous Other """ — Jpods—_ commodities other than 3.30 5.50 236,016 railway Other " All 3.41 5.51 ), OF-T : : ,4.57 INCOME ITEMS OF U. S. CLASS I Month Net Income .... — 5.87 5!53 4.60 BANK : SELECTED LABOR—,(1947-49=^00): Farm ,5.73 5.30 NONFARM LOAN compahies.—^—________— savings banks ._! Total 791,454 '•-Commodity Group— - 5.52 6.21 (000's omitted): associations— companies Miscellaneous 141,080 !——— SERIES HOME March trust and Mutual * . — of Individuals 740,970 168,890 „ —— — Bank 37,000 240,405 Insurance 180,410 60,690 S. loan and IN FINANCING U BOARD—Month 122,300 ______r ; 8,938 36,109 5.53 6.15 5.34 4-72 3.41 (24) Tel.) ———r-— OF AREAS 118,900 184,100 374,430 2Z 217,211 16,066 49,593 May: 1— (10 (200) Savings of — includ. (not ESTATE REAL 497,390 301,095 — sales ; 783,630 275,844 312,844 — sales Total sales 772,190 10,300 —May 16 May 16 ! May 16 !__ May 16 purchases Other 535,450 162,600 " ■ 3,049 ' . . — Short 100,680 396,710 ' _May 16 Total round-lot transactions for account of members— Total 137,410 646,220 ,176,710 floor— off the : Total sales > - -^ay w — 487,710 154,020 618,170 May 16 —- —— sales Other ■ : . purchases Short 734,940 97,900 May 16 transactions initiated Total . •>", _— _ 623,730 ! lVlay 16 ,—— Other sales V 581,730 437,660 _May 1,6 the floor— 2,022 OF YIELD AVERAGE STOCKS—Month (25) Utilities Average May —_ on ' 345,986 288,474 14,080 28,556 (125) Insurance MEM- —————— purchases 7,552 • ASSOCIA¬ (units) dryers COMMON Industrial 180,610 5,734,780 _ _ . • Other transactions Initiated . ' , — sales .■ 13,379 2,916 2,382 HQME (AMERICAN — MANUFACTURERS' 279,840 MOODY'S specialists in stocks in which registered—,, of 366 — of washers (units)___; of ironers (units)—. BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS: Transactions • 3.931 ' . 242 1,377 1,309 2,335 of May 16 QF 1,100 .1'612 11,783 !—.1— — sales sales —May 16 ,— ACCOUNT 573 — ! — sales May 16 FOR 99,405 121,984 (1,000 pounds)— Factory 200 _. TRANSACTIONS , YORK Total sales i Grabbots, etc. April 30 Factory Factory (SHARES): — 152,408 231,459 1.172 2,211 -r 164~050 STOCK TRANSACTIONS sales — —— LAUNDRY . Short 77,961 TION)—Month of April: "May 23 NEW 70,456 bales) — — STANDARD THE 117,036 167,785 30_w___——,—^--—-r—. - HOUSEHOLD Total Round-lot sales— , April Shipped -May 23 ON 233,682 46,396 591,964 -May 23 SALES 197,301 106,633,000 3,493 576,786 (1,000-lb. Produced 595,457 -May 23 MEMBERS 28,820 — Fiber Motes, 99 May 23 STOCK 82,479 <105,670 87,998 , — Produced —.—— OF 91,363 79,635 70,751 ! Shipped 22,020 ~ EXCHANGE AND ROUND-LOT , * :— (tons) Stocks 22,119 27,452 May 23 * shares of 135 27,724 777,027 purchases by dealers— Number 21,485 21,312 sales Round-lot : ; 22,406 584,635 sales by dealers— '. Number of shares—Total sales- 1 $32,751,152 621,366 1 Hull 1699,578 $38,550,080 22,271 Round-lot sales 866,522 $28,504,790 626,354 sales Short 630,331 $31,857,987 —-May 23 Dollar value r. 25,196 31,308 ——-———May 23 sales— Customers' 21,775 705,238 23 May 23 Customers' f 24,058 * sales shares—Total sales— of (tons) Shipped other sales -Number 233,285 147,131 — Produced — —— — 146,191 179,460 (running bales)— Stocks April 30 ^ —^ 208,612 231,782 April 30 (tons) April 30 Shipped — Odd-lot purchases by dealers (customers' sales)— Number of orders—Customers' total sales 434,758,000 123,723,000 106,108,000 129,093,000 Linters STOCK shares *811,815,000 *169,882,000 90,754,000 146,552 ^ (tons) " ' — Produced COMMISSION: purchases) orders— Dollar value * SPECIALISTS SECURITIES — sales Number AND 134,840,000 (tons) Shipped Hulls 109.20 30 April (pounds) (tons) Stocks June *149,973,000 165,269,000 *182,406,000 213,441 — and Meal- 203,693 ___. 518,480 174,631 : (pounds) 249,134 STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODD- 305,597 949,436 115,388,000 131,004,000 170,533,000 April 30 (pounds) 226,810 INDEX— .22,325 38,317 , 479,620 — (pounds)— Consumption 247,581 PRICE * 602,963 881,275,000 159,289,000 92,053,000 30-*.- (pounds) Produced Cake 24,862 371,335 Oil— Stocks 2.98 419.3 ! (ton^)—/;*, - (pounds) Shipped —May 30 of period REPORTER 3.60 3.47 mills ((ons) April Produced 3.50 3.31 \ at Oil— Crude 3.20 3.76 3.63 PROD¬ SEED COMMERCE—Month of OF Seed— Received May 30 —— >t end DRUG 3.62 413.6 3.55 3.82 3.67 v COTTON AND Crushed (tons) -L . activity 3.64 3.71 —June - NATIONAL PAPERBOARD ASSOCIATION: Orders received (tons) Production 3.84 —June * INDEX SEED Stocks 3.02 June Group Group COMMODITY , 2.93 3.44 June ___ <-*/ 3.16 3.40 3.67* i Utilities COTTON Cotton —June , Railroad Group Public 115.2 102.46 104.66 3.49 Industrials 106.2 117.5 100.65 — _. MOODY'S 107.7 104.14 AVERAGES: — corporate Aaa Baa 112.4 107.9 117.9 service. and 102.13 June YIELD Government 111.3 312.5 !_______ care goods June ■ Average 106.0 124.8 115.9 , Other —June Public Utilities Group Industrials Group MOODY'S 119.5; * Reading and recreation 109.42 99.84 ' ,_! Group 103.30 — 104.7 129.3 120.2 — — - care Personal 112.75 A V, Medical 114.46 Aa 104.6 129.4 * Transportation charges —— - ; -2.76 87,704,173 54,663,799 2,910,608 -51,753,191 38,858,314 52,445,157 16,419.1^7 m The Commercial and Financial Chronicle.. (2356) Continued from page Such actions 16 spread have employees who desire to work, is and frequently an incitement to law¬ lessness and violence and should, wide¬ created for orderly pressure limited picketing. More on Picketing This legislation in all other as is to limit the acts of those unions which members union those or against acts not in the public in¬ is terest. resolve is taking is coercion, not of the other party legislation to protect in¬ to the dispute, but of an innocent dividuals and society in general third party. As the employer who need we JOHN P. GATY the Wichita 1, Kansas been sympathetic when their conduct I have always unions with have Hyde seen munist trolled that picketing is a • »ecessary part of the right to ♦^brike. Of course, it should be believe the prem¬ t h Ingress or egress from ises being picketed. i living examples of Com¬ ployee not essarily unions, nec¬ his It, therefore, de¬ him nies g-c o n- $ ^resident, First Bank & Trust Co. with of Actually, picketing proves nothi n g because want those who Jus¬ tice at present is of Utica, New York agree Depart¬ ment ROKAHR busily en¬ docketing made illegal because it ^Infringes on property rights and along the New «cival liberties." The argument of ■line propo- ♦tents of to able thing for they have gone on strike against their employer. However, picket¬ of strike •AHe aveapon to and violence property is an entirely different thing. The use of the picketing weapon by ♦igkts" either (e m- mine) ftihasis becomes is ing se- human «are employees to do, if one to roving ri- thing, persons or squads, either hired goon ^fliculous in the by the union for that purpose or • ight of the #ioodlumism brought in from other towns and cities and set up outside the place of business, is certainly something which usually else. characterizes If In other words, the original picketing — Theodore Rokahr concept of picketing was that the *cmd especially ♦xiass picketing. By means of in¬ employee would picket the place of business of his employer. This timidation, and often by means of H%ctual violence, it denies the right concept has been distorted and •la work to those who want to corrupted in many ways during *vork. If that, and ^overturning or past several years. It seems to me elfcerwise damaging the automo- that it would be possible to restore • riles of workers who try to go to the basic concept and bar the •ttvoric through picket lines, are vicious practices which have grown up almost by default dur¬ ♦means of "securing human free«[om," my concept of human free- ing the past decades. injury to It is also based their families. on a fear complex afraid the law quick a against union sign immaturity; and while unions have grown up a they have a lot in the last 50 a Fairbanks, Morse & Co., It to picketing and Hihases of that subject can lamarized as follows: related be sum- long way to go. belief our As far eliminated be a able. ' .. the,. i it is my opinion that ever, et Melvin H. Baker (b) Bill Lantaff I feel that peaceful adjunct right to strike. a necessary picketing is of labor's <c) ized to gain Picketing of unit ployer by of a a by a that is representation a non-union¬ multiple unit em¬ unionized section of that company. Picketing to further the specific purposes should clared above an illegal, and be de¬ employer so ^attacked should be able to gain ttegal redress for losses incurred. We do not believe that peaceful picketing infringes on ♦rights and civil liberties. lieve ♦not that an peaceful rea¬ num¬ only and We be¬ President, Central Hudson Gas & •: so many aspects of this subject it is ficult my one to discuss. In dif¬ a submitting comments, I wish to empha¬ eting would be not permissible. exception Then the the proper use em¬ o ployer, the employees and the public would not/ be the victims of violence and other lawless acts. take f in to How- what¬ ever, ever said any picketing peaceful a manner. Picketing for linion recognition or organization purposes should not be permitted? as the unions may on be behalf have available to them the tried and tested method of settling such of p e a ce f u 1 picketing as a questions through the ballot box form free in speech and elections government. It is a conducted by the of method a as of . well known fact advising the public of a in far too many casest that the » use of violence and destruction by .pinion date the employer, the publicl and fellow employees has beerir .re¬ sented by the the has very do so his position by peaceful picketing; i. e.*, picketing that reason¬ obvious in the American, people. Ernest R. tion in Acker cases' pute exists, picketing an unfair Union's where a I believe causes in¬ not does that where all terfere or threaten to in¬ wit 1^ terfere no safety of per- , \ son s ;;erty " or prop- the and free and unre¬ stricted move¬ of ment right to work, and to the knowis> make and sons would be un-American. C. L. Austin or per- things to or from the employer's ERNEST R. ACKER size that I do property pickets in the attempt to intimi¬ picketing is improper exercise of "free others constitutional the employeedefinite right to concept of liberty R. J. KOCH V peaceful pick¬ an em¬ ployer union "trying ♦rights. a sonable W.W.Sebald believe, in the first place, that: under our American other hand, where are Picket¬ ing of C* R. Gaiennie amended ited to ber I owner can right in it. On the a majority of labor represents the union and a minority does not for any reason participate in v the union, that majority has no right to deny have , Pittsburgh 30, Pa. closed union, then outside work¬ ers i Jones & Laughlin Steel Corp., provided Our labor that property or elsewhere; and that this right should be protected by President, Felt & Tarrant Mfg. Co., law. Chicago, HI. so Picket¬ L. AUSTIN President, ing in this will that pickets Electric Corp., Poughkeepsie, N. Y. would be lim¬ Because there (a) R. E. Sommer destruction. the ing to aid an illegal second¬ ary boycott. our C should violence b il¬ the the law to prevent ley Act should legal: of one closed union invoke Government situations where the Florida U. S Congressman from should declare following is be allowed the the Taft-Hart¬ e to work, if he wants to, right to pick¬ en¬ pick¬ How- eting. Federal a man picketing which shop ' .. HON. BILL LANTAFF vent all we that believe The harm. labor agree to realistic to is and bodily even operate under to make it more work¬ necessary infringes on prop¬ erty rights and civil liberties, it is my view that it would not be as that my deavor to pre-* legislation concerned, coercion of freedoms is should are that picketing Our company's attitude with re- 1g£Brd its Constitution personal opinions plant is operating under an open- is supposed to provide. Any viola¬ and, naturally, I would like to see shop contract. It is our further tion of it is a violation of the Con¬ the Taft-Hartley Act retained on belief that our statutes, stitution. although I appreci¬ plants which ate that certain amendments are These who feel some are to In work. MELVIN H. BAKER a While there Chicago 5, 111. who willing adequate the be * to Chairman, National Gypsum Co., : Buffalo 2, N. Y. Middletown, Ohio v and from is able and basic right of President, Armco Steel Corp., Director of Persoimel, who foregoing worst form, it types of picketing, I think a long involves fear, step forward would have been W. W. SEBALD ! should be employees a someone em¬ amended were Hdom must be all wrong. L. R. GAIENNIE the REUBEN E. SOMMER of and thus some destroy the power of the leader. A fear complex is years, "picketing" to working majority of the a taken toward the promotion their peaceful labor relations. members will go to work of have rep¬ of the unions themselves because are think confined whereby ployees. North remedy they Walter M. Mumma I the gain prompt relief. can represent Alden John are provide or re¬ status, it should prohibit picketing the basic purpose of picketing is to prevent « * cases where the Union does not freely ex¬ jury me employer when the Union pressing themselves, but refrain¬ picketing is a reason¬ that me procedure a ing because of fear of bodily in¬ John P. Gaty front. It seems pick¬ eting "that it 4s an essential component not water¬ York work sire to It, entirely in those who de¬ gaged in in¬ vestigating such activities of stoppages. only a minority of the President & General Manager, employees. As the law provides Keystone Steel & Wire Company* procedures by which a Union rep¬ Peoria 7, 111. resenting a majority of the em¬ My views on this topic are that ployees can obtain a bargaining right to work. The THEODORE cause reason resents the trolled unions. by jurisdictional dispute without an union. plain ordinary Unions grievance and use this method of supplementing their Another abuse which contrib¬ others especially utes to labor unrest and is con¬ position — no when there is no labor dispute trary to the public interest is with one's own employees. picketing to force recognition by agree of e r work seems employer with the lead- and the reasonable that Unions should find some method of settling their vide who does con¬ o ns, u act cannot cases sorting to this practice, or legis¬ the free lation should be enacted to pro¬ it forcibly prevents of work¬ cause an em¬ control led u n always felt picketing was in viola¬ tion of constitutional rights be¬ ing by racketeer- $*eaeeful picketing only and should #xot be such that it would prevent merely state that I have We has been ethical and proper. De Witt S. I would related therefore, Hartford, Conn. General Manager, Beech Aircraft Corporation, such dispute, great economic loss President, Viee-Pres. and in the they JOHN A. NORTH place. picketed should recognize the unfairness of their acts and the fact The Phoenix Insurance Co., I Pennsylvania need to be restrained the same as summarily under the police power of the State in which such action I U. S. Congressman from Picketing resulting from juris¬ dictional disputes between Unions roristic, it should no longer come under the protection of the Con¬ stitution and should be dealt with g S. HON. WALTER M. MUMMA therefore, be prohibited. speech" guaranteed by the ConstirAnpT^sTti'in from TVfa.rvI21.1ifl Congressman trom Maryland tution. However, when picketing becomes violent, abusive and ter¬ S. HYDE HON. DeWITT *Tf .Thursday, June 11, 1953 In both instances where • I believe also our that there are • two other rights under our concept of liberty which must be protected. The first of these is the right of plant was picketed, threats to the physical wel¬ fare of em¬ ployees the was made. Wheth¬ er the not or : unions as a whole sanction tactics of this kind, the fact remains where beings moved that as human are to be accepted an of coercion R. J. Koch or other interference with the rights of others, is proper and should not be interfered with writer does not believe that it is to have whole position can be simply and ex¬ pressed in this fashion; that peace¬ ful picketing of an employer's premises by his employees, short o the his property boiled down very part f picketing. Personally, to and from he may desire. The in¬ volved threats seem employee to enter upon the employer's property to work if that entrance is permitted by the employer. The second is the prop¬ erty right of the employer which most definitely includes his right to have persons and things freely possible by law; picketing which involves picketing without intimi¬ such dis¬ dation in spite of the pious state¬ ence mass ments of the union and other sup¬ posi¬ labor unrest, is porters _ of r such activities, "intimidation of' those. picketing is;a}l peaceful^ ; that - . coercion or other interfer¬ is contrary to the constitu¬ tional liberty of Americans and should be prohibited, specifically by law and the law diligenty en¬ forced./ .t'j? • c : . . ... Volume 177 Number 5228... The Commercial and Financial Chronicle r , - (2557) • . * * INDICATES Securities Now in Registration Aberdeen Idaho Mining Co., Wallace, Idaho (letter of notification) 100,000 shares of non¬ assessable common stock. Price — 15 cents per share. Proceeds — To develop mining claims. Underwriter — Arcturus Electronics, Inc., Newark, March 30 Price—At market (about $2 to $2*& In lieu cash. per share). (letter King, Libaire, Stout & Co., New York. capital. on the basis of share new for each Underwriter quire airplanes and equipment and for working capital. Underwriter—Union mentioned bid group and 101.4011 for an interest syndicate headed by Smith, Barney & a 100.0788 for interest rate of 5%%. an Offering record June 16 amendment. four Proceeds—For working capital. Business— Manufacturer of tires and tubes. Underwriter—Reynolds & Co., New York. Offering—Temporarily postponed. • Mines, Ltd. (6/22) April 17 filed 500,000 shares of common stock (par 10 cents). Formerly known as American-Canadian Ura¬ nium Co., Ltd. Price — $1.25 per share. Proceeds — For engineering, development and mining expenses. Under¬ writer—George D. Clarke, Ltd., 50 Broad Street, New ■ and • Aviation Equipment Corp. (6/12) April 17 filed $1,000,000 of 6% subordinated debentures due.1964; 8,000 shares of 6% preferred stock (par $50), depositary receipts representing 8,000 shares of com- to Proceeds (Union ,* June Securities June (McLaughlin, Chlorophyll & Co.) (George Common Securities, Common Securities Corp.) 10:30 North American Peat Moss (R. Keppler & A. $20,000,000 Inc.) M. Rhoades & Co.) (Bids 11 (Bids 11 16 to June (Tuesday) & 45,254 Co.) by & 500,000 24 New (Estabrook Boland) & Brothers New Jersey Power (Bids and Common Bear, EDT) a.m. by Blyth Stearns Wood & Co.) Gulf Life Insurance Co., & (The (Bids - New York, Boston (Bids be invited) — For 11 a.m. & June noon 18 EDT) shares rights to expire Proceeds—For — Pittston Co. July 8 j $1,170,000 p.m. (Gearhart & Otis, Inc.) share for eaclv new modernization and expansion program. a Produces Francis I. du Pont & Blackwood one beryllium alloys. Co., New York. Underwriter —'1 Nichols Co., & Oklahoma City, Okie.* Co., Madison, N. J. May 1 filed 359 working interests in oil and gas lease# to be offered for sale "as a speculation." Price—$1,392.75* per working interest. Proceeds—For development a? oil and gas leases. Underwriter—None. ^ Bonanza Mining Co., Phoenix, Ariz. (letter of notification) 300,000 shares of June 8 Price — At par common share). Proceeds — Fen* Office—807 Title & Trust Bldg., Phoes* working capital. nix, Ariz. ($1 per Underwriter—None. • Brandywine Raceway Association, Inc., Wilmington, Del. May 14 filed $1,600,000 of 6% debentures due June 3» 1978 and 160,000 shares of capital stock (par $1) to fee# offered in units of one $500 debenture and 50 shares <*t stock. Price—$600 per unit. Proceeds—To repay deb& and for working capital. Underwriters—Laird Securitie# Co., Inc., and Laird, Blssell & Meeds, both of Wilming¬ ton, Del.; and Harrison & Co., Philadelphia, Pa. Offer¬ ing—Expected today (June 11). Ltd., Toronto, Canada acquire leases and for corporate purposes. Under ■ . . Brooks & Perkins, Inc., Detroit, Mich. April 22 (letter of notification) 6,475 shares of commcs* stock (par $1). Price—$6 per share. Proceeds—To in*<» derwriter, Watling, Lerchen & Co., Detroit, Mich. Byrd Oil Corp., Dallas, Tex. Oct. 22 filed $1,750,000 of 10-year 5J/2% convertible sink-* fng fund mortgage bonds due Nov. 1, 1962, to be offeree# for subscription by common stockholders at the rate $100 of bonds for each 28 shares of stock held (for ck 14-day standby). Certain stockholders have waived thei* rights. Price—At par. Proceeds—To repay $1,014,500 c!A outstanding notes and for drilling expenses and workintl capital. Underwriters—Dallas Rupe & Son, Dallas, Tex^j Carl M. Loeb, Rhoades & Co., New York; and Straiw. Blosser & McDowell, Chicago, III. Offering—Postponed. Carolina Casualty Insurance Co., Burlington, N.&* April 29 (letter of notification) 103,506 shares of clast B non-voting common stock (par $1) being offered to stockholders of record April 17 at rate of one new sham for each five shares held; rights to expire July 17. Pilot# —$2 per share. Proceeds—To increase capital and sur¬ plus. Office—262 Morehead St., Burlington, N. C. Un¬ derwriter—None. : Natural Gas Corp., Seattle, Wash. (letter of notification) 60,720 shares of com¬ mon stock (no par) to be offered in exchange for 11,400 shares of 8% cumulative convertible preferred stock (pas* $5) and common stock (par $5) of Northwest Cities Continued on 5& page (Wednesday) Notes & Stock $787,500 .Common (Wednesday) —Bonds (Bids to be invited) $40,000,000 :.,, July 16 (Thursday) Co —Bonds Consumers Power (Bids to be invited) $25,000,000 i,000,000 shares,^ ♦ 1 New York. Boston Philadelphia August 3 Common ^"TEids to Pittsburgh San Francisco (Monday) Denver & Rio Grande Western RR be invited)' * writer—None. To be named by amendment. EDT) Preferred (Offering to stockholders—no underwriting) U. S. Airlines, Inc 3 Commonwealth Edison Co CDTJ) the basis of (with an oversubscription privilege):; on June 18. Price—$25.50 per share. Eq. Tr. Ctfs. Equip. Trust Ctfs. noon on held stockholders—underwritten by The First Boston Co., Inc.) 40,000 shs. to $3,150,000 Chicago, St. Paul, Minneapolis & (Bids —*♦ Corp. and The Robinson-Humphrey (Thursday) Omaha Ry. Underwriter $12,500,000 Mobile Gas Service Corp (Offering shares program. Park, N. J. Underwriter—McLaughlin, Reus:* Co., New York. Bonds EDT) (C. K. Pistell & Co., Inc.) Common Chicago & St. Louis RR (Bids (Tuesday) Applied Science Corp shares 170,000 construction ___Pfd. & Common July 1 Common each afcs Bergen Daily Bulletin, Inc. (6/15-17) May 21 (letter of notification) 100,000 shares of common stock (par 10 cents). Price—$1.50 per share. Proceeds— To buy equipment and for working capital. Office —- Cascade 1,500,000 shares Seeck & Kade, Inc shares (Wednesday) Corp.) Inc.) shs. Common to June 30 15,000 for March 30 Pennsylvania Electric Co Light Co First Thorndike, common (Monday) Bonds (Equitable Securities Corp. and R. S. Dickson & Co.) Kansas Power & & 40,000 Gas Service Co Inc.; $5,500,000 Co 999,216 Debs. & Stock Jeffries and 29 (Bids 17 June (Thursday) Corp Childs, and $240,000 & Co.) Skiatron Electronics & Television Corp._.Common (Wright, Common debentures June & Light Co 11 Co. of $299,000 to .stockholders—underwritten Lehman $8,445,000 Common England Electric System (Offering Equip. Trust Ctfs. EDT) June 25 shares Nagler Helicopter Co., Inc.. R. $35,000,000 (Wednesday) noon Sunrise Supermarkets $400,000 (John EDT) stockholders—no underwriting) to Smith, Common Co.) (Offering shares Johnston Oil & Gas Co (Allen Bonds Co a.m. York County Gas Co Common stockholders—underwritten Barney $$6,000,000 Southern Pacific Co $7,000,000 Bangor Hydro-Electric Co (Offering Common about $245,000 (Bias June Class B (Tuesday) (EDT) a.m. Bonds EDT) a.m. :_Preferred Gulf States Utilities Co Washington Gas Light Co 11:30 23 New York Telephone Common Loeb, (Bids June Common $500,000 Remington Corp. (Carl $625,000 (Offering to stockholders—no underwriting) Co., Inc Co., Common Ltd.) . Bonds EST) a.m. Clarke, D. Rogers Corp. $300,000 Michigan Consolidated Gas Co (Bids (Monday) Mines, Ltd (Reynolds & Co.) $4,000,000 KLB Oil Corp.. (Aetna $1,250,000 Robertshaw-Fulton Controls Co $300,000 Inc.) Co.) & 22 Athabasca Uranium $150,000 Chemical Corp (Mitchell Reid June —Common share • To (Friday) Preferred (Fulton, (Monday) Reuss 19 Erie Resistor Corp Corp.) Bergen Daily Bulletin, Inc new Sept. 25 filed 1,000,000 shares of common stock (par $I>. Price—Approximately 64.48 cents per share. Proceeds—* (Friday) 15 one Smith, Barney & Co., New York. Bristol Oils NEW ISSUE CALENDAR Debs. & Stock of (with an oversubscription privilege); right:# expire July 1. Price—To be supplied by amendment stock. Athabasca Uranium York. 12 rate at shares held and Oil & Gas York. June Corp., New York. Bangor Hydro-Electric Co., Bangor, Me. (6/1S)* May 26 filed 45,254 shares of common stock (par $15) tf» be offered for subscription by common stockholders est Business first 10 shares of stock. Price—$105 per unit, Proceeds—For acquisition of stock of two companies, who will borrow the remainder to repay bank loans and for working capital. Underwriter — C. K. Pistell & Co., Inc., New Aviation Equipment Corp Securities £©ur Armstrong Rubber Co. $4,000,000 of 5% convertible subordinated debentures due May 1, 1973. Price—To be supplied by — • Applied Science Corp. of Princeton (7/1) May 21 filed $750,000 of 6% guaranteed sinking fund 10year debenture notes due April 30, 1963, of this company and 75,000 shares of common stock (par one cent) of Bradco, Inc., to be offered in units of $100 of notes and Proceeds—From sale of securities, to¬ unit. per of record June 5 —Indefinitely postponed. Kidder, Peabody & Co., New York. — $1,550 Palisades Co. Co. bid $40 per share. Proceeds—For working capital. Office—St. Louis, Mo. (jointly); March 31 filed Price $1,06# • Beryllium Corp., Reading, Pa. May 15 filed 88,385 shares of common stock (no par> being offered for subscription by common stockholders rate of 5% Insurance Co. one a The May 13 filed 125,000 shares of capital stock (par $4) being offered for subscription by stockholders of record held; rights to expire June 17. Co. & to be offered in units of C^ar $1) debenture, eight shares of preferred stock and depositary receipts representing eight shares of common stock. Prices Inc.; The First Boston Corp. and Lazard Freres (jointly); Union Securities Corp.; Smith, Barney & Co.; Equitable Securities Corp. Bids — Received on May 25 at 70 Pine St., New York, N. Y., were rejected. tional Securities Corp., Seattle, Wash. 2 Freres ISSUE & £ Alaska-Wrangell Mills, Inc., Seattle, Wash. June 9 (letter of notification) 58,000 shares of capital £tock. Price—At par ($5 per share). Proceeds—For working capital. Business—Lumber mill. Office—216 Third Ave., South, Seattle, Wash. Underwriter — Na¬ shares Lazard REVISED art & Co. Underwriter—None. June Under¬ Arkansas Louisiana Gas Co. of American Automobile and stock ITEMS April 22 filed $35,000,000 of first mortgage bonds due 1978. Proceeds—To repay $24,500,000 bank loans and for new construction, etc. Underwriters—To be determined by competitive bidding. Probable bidders: Halsey, Stu¬ $25 — elect to take may preferred stock. statement may be withdrawn. notification) 5,000 shares of capital per share. Proceeds — For working Office—717-720 Empire Bldg., Birmingham, Ala. Price thereof, preferred stockholders • PREVIOUS gether with $4,000,000 to be borrowed from bank, to ac¬ Equitable Corp.; Smith, Barney & Co.; Blyth & Co., Inc. Bids—No bids received on June 2; subsequently directors decided to borrow $23,000,000 from banks. Registration ^ Alabama Life & Casualty Insurance Co. 3 Under¬ Securities Ltd., Vancouver, B. C., Can. April 22 filed 250,000 shares of common stock (no par). Price—$1 per share (net to company). Proceeds — To purchase equipment and supplies. Underwriter—M. H. B. Weikel, Los Angeles, Calif. stock. Reploge, President. Proceeds—To retire said Corp. Acteon Gold Mines June 50 cents per share. writer—To be determined by competitive bidding. Prob¬ able bidders: Halsey, Stuart & Co. Inc.; The First Boston common Proceeds—To Nash S. Eldridge, the selling stockholder. Office—464-72 East 99th St., Brooklyn 12, N. Y. Under¬ writer—Eisele & E. — debentures in exchange for each share of 6% cumulative preferred stock (par $10) of Arkansas Natural Gas Corp. Underwriter—-None. Acryvin Corp. of America, Inc. May 7 (letter of notification) 3,000 shares of stock. Delbert Price Arkansas Fuel Oil Corp., Shreveport, La. May 1 filed $22,520,000 of sinking fund debentures due 1973 to be offered at rate of $10.60 principal amount of —At prices not less than 50 cents per share of stock and 25 cents per warrant below current market. Proceeds— Co., New York. (par 1 cent). ADDITION* SINCE mon writer—Gearhart & Otis, Inc., New York. ACF-Brill Motors Co., Philadelphia, Pa. April 20 filed 215,360 shares of common stock (par $2.50) and 44,303.5 common stock subscription warrants. Price & stock Proceeds —To Wallace Brokerage Co., Wallace, Idaho. To Allen N. J. March 27 (letter of notification) 40,000 shares of class A common *? n . . Chicago Cleveland / Eqp. Tr. Ctfs. * Private Wires to all offices 50 , cy Continued from page Co. per 49 in cash. Price— l-for-5^ basis, plus 25 cents a on $25 stocks. share. Proceeds —To acquire aforementioned Underwriter—Sheridan Bogan Paul & Co., Phila¬ delphia, Pa. notification) 1,800,000 shares of com¬ share). Proceeds March 4 (letter of Price—At par (10 cents per stocks. mining operations. —For Underwriter—R. L. Hughes & Co., Denver, Colo. Colo. worth, Sullivan & Co., Denver, Brothers, Manchester, Conn. May 8 (letter of notification) 23,872 shares of common stock (no par) to be offered for subscription by common stockholders of record May 1 at rate of one new share Cheney expire on June 15. For working cap¬ ital. Office—Hartford Road, Manchester, Conn. Business —Manufactures and sells textiles. Underwriter—None. each Price ten $11 — rights to held; now share. Proceeds per — Cheyenne Oil Ventures, Inc., Denver, Colo. (letter of notification) 150,000 shares of common stock (par one cent). Price—24 cents per share. Proceeds —For working capital. Office—702-4 Ernest & Cranmer Bldg., Denver 2, Colo. Underwriter—Tellier & Co., New June 1 York. Chicago Bridge & Iron Co. » May 11 (letter of notification) 6,112 shares of common stock (par $20) to be offered for subscription of em¬ ployees. Price—$49.08 per share. Proceeds—For general West 105th St., Chi¬ corporate purposes., Offices—1305 111: Underwriter—None. cago, Chlorophyll Chemical Corp., New York (6/15)1 May 28 (letter of notification) 300,000 shares of common stock (par 10 cents). Price—$1 per share; Proceeds—To Cabot Co. and for payment of other obligations and working capital. Busi¬ ness—Manufacture and sale of chlorophyll and chloro¬ $30,000 repay note Godfrey to L. phyll derivatives to the pharmaceutical, drug, cosmetic, and food Underwriter-*Mitchell Se¬ curities, Inc., Baltimore, Md. and New York, N. Y. processing trades. C.l.T. Financial Corp., New York May 15 filed $50,000,000 of debentures due June 1, 1967. Price—To be supplied by amendment. Proceeds—For working capital. Underwriters—Dillon, Read & Co. Inc.; Kuhn, Loeb & Co.; and Lehman Brothers, all of New York. Offering—Temporarily postponed, May Casualty Co. of New York (letter 29 of notification) 8,000 shares dividend preferred stock. Price—At par to be offered first to stockholders at ($25 share) per of rate $1.50 of one share for each 32 shares of stock held. Proceeds—To purchase 31,500 additional shares of demnity Co. at $6 York 38, per of Arex stock common In¬ share. Office—116 John St., New N. Y. Underwriter—None. Code Products Corp., April 20 filed share. Philadelphia, Pa. (amendment) 500,000 shares of 6% cu¬ Dixie Fire & Casualty Co., Greer, May 1 filed 55,313 shares of capital stock (par $5) to be Eagle Super Markets, Inc., Moline, III. offered for subscription by stockholders on the basi* May 21 (letter of notification) 25,000 shares of 6% pre- r ferred stock. Price—At par ($10 per share). Proceeds— - of one new share for each four shares held as of May 28. rights to expire about June 17. Price—To be supplied To redeem first preferred stock and for working capital. by amendment. Proceeds — For general corporate pur¬ Office—2519 Fourth Ave., Moline, 111. Underwriter.. Edgar Brothers Co., Metuchen, N. J. May 15 filed 100,000 shares of common stock Federation share for each share held; not more than 5,000 unsubscribed shares to be offered to certain em- Inc. May 11 (letter of notification) 10,000 shares of common stock (par $1) to be offered for subscription by stock¬ 1 expire July 1. Price $15 per share. Proceeds —. on — For. working capital. Office— Long Branch Ave., Long Branch, N. J. Underwriter—None. Erie Resistor Corp., Erie, Pa. (6/19) May 29 filed 62,500 shares of convertible preferred stock. Price—At par ($20 per share). Proceeds—To purchase machinery and equipment and for working capital. Underwriter—Fulton, Reid & Co., Cleveland, O. struct warehouse. new Underwriter—None. Flavor Seal, Inc., Spokane, Wash.May 19 j(letter of notification) 4,000 shares of common Price—At par ($10 per share). Proceeds—For working capital. Business—Makes a formula for pro. cessing fresh meat. Office—726 Paulsen Bldg., Spokane stock. Wash. Underwriter—R. L. Emacio & Co., Inc., Spokane Fort Myers Beach Water Works, Inc. May 21 (letter of notification) $298,000 of 5V2% first mortgage bonds due May 1, 1968 and 2,980 shares of (par $1) to be sold in units of bond and 10 shares of stock. ceeds—For working capital. one Corpus Christi Refining Co. June 2 filed cents), of 970,000 which shares 820,000 of Underwriter—Goodbody & Co., St. Peters¬ stock to are 10 offered be (par to the public. ing Price—$1.50 per share. Proceeds—For work¬ capital, etc. Underwriter—Vickers Brothers, New York Latter will receive warrants to maining 150,000 common shares. ... purchase the D®j*®^"M°ntana Oil Leaseholds, ay 1 (letter of Inc., N. Y. SS ?ff'C»7n35 Fi£fh Ave'' NeW Y0rk> Underwriter—Weber, Millican W Co., New York. • Dacca May 19 318,625 shares of capital 1' June 9 at rate ofsubscription ^emg °fffed for shares N- Y- one held; rights to expire share. new on stock (par June 25. for each and Laurence 3% Price—$9.20 Proceeds—For working capital, etc. wnters—Reynoids & Co. Co., both of New York. 50 by stockholders of share M. in Under- Marks & June (letter of notification) 7,500 shares of common be offered for subscription by present stock¬ 1 stock to ($20 Price—At par holders. share). per used Empire stock (par $10) by Cities Service Co. to increase Gas & Fuel Co., another sub¬ Proceeds—To purchase equipment and for working capital. Office— 287 Homestead Ave., Hartford, Conn. Underwriter ' — : ' v Heat-O-Malic, Inc., Pittsburgh, Pa. May 22 (letter of notification) 20,000 shares of common (par $3) to be offered for subscription by present stock stockholders until June 30, 1953. Price—$1 per share to stockholders; $1.50 to public.. Proceeds—To pay current liabilities and for working capital. Address—Joseph, fr. Carroll, President, 2886 Glenmore Ave., Pittsburgh^l6, Underwriter—None. Pa. ^ Huse-Liberty Mica Co., Boston, Mass. 4 June of notification) (letter Robert Chapman, Jr. Underwriter Mass. Co. Trust 5,000 shares of common share. Proceeds—To Earle, trustees for Office—171 Camden St., Boston, F. L. Putnam & Co., Inc., Boston, Price—$12.75 (par $5). Harvard — and per E. H. - ' < j Mass. Hydrocap Eastern, Inc., Philadelphia, Pa. April 27 filed 500,000 shares of common stock, of which underwriters have agreed to purchase 100,000 shares for public sale and to use "best efforts" to sell remaining Proceeds—To es¬ Price—At par ($1 per share). tablish assembly plant and acquire derwriter—Barham & raw materials. Un¬ Co., Coral Gables, Fla. ^Inland Empire Corp., Salt Lake City, Utah June 1 Frice—10 cents per stock. . (letter of notification) 500,000 shares of common share.^ Proceeds—For devel¬ opment costs. Office—620 Judge Bldg., Salt Lake City, Utah. Business—Metal treatment. Underwriter—None. Co. of North America, Insurance common " . Phila., Pa. April 16 filed 30,000 shares of capital stock (par $5) to be offered for sale to employees of company and five affiliated Underwriter—None. companies. International Harvester Co., Chicago, III. sidiary. Underwriters—To be determined by competitive bidding. Probable bidders: Blyth & Co., Inc. and Kidder. Peabody & Co. (jointly); Smith, Barney & Co.; Stone April 24 filed !!88,000 shares of common stock (no par) & company Webster (jointly). Securities Corp. and Stern Bros. & Co General Dynamics Corp. May 12 filed 250,000 shares of bank loans made to acquire stock (par $3) Proceeds—To a Aircraft • General Foods Corp., New York June 5 filed $5,400,000 aggregate amount of common stock (no par) issuable under the corporation's Em¬ ployee Savings-Investment Plan. Underwriter—None. : General Instrument Corp. May 7 filed 57,800 shares of upon • General exercise of common certain and, Public corporate purposes. Underwriter Fire & Casualty Co., Interstate Bloomington, III. (par $10) be/offered for subscription by stockholders of record March 26 to Apri| filed 28,000 shares of capital stock 1 at the rate of 1 3/11 shares for each share held. per share. Proceeds—To increase capital Price—$16.50 and • Iprplus. Underwriter—None. Johnston Oil & Gas Co. (6/16) May(21 filed 500,000 shares of common stock (par $1). Price—To be supplied by amendment.'Proceeds—To re¬ pay jjhdebtedness and for general corporate Underwriter—Allen & Co., New York. - purposes. , — (Kan.) Telephone Co. ~ March 3 (letter of notification) $206,000 of 4%% first mortgage bonds, series A, due Feb. 1, 1977. Price—100% Junction City stock (par $1), issu¬ options held by certair employees of the company. Price—Op¬ tions exercisable at $9.50 per share. Proceeds—Foi working capital. able general —None. re¬ block of 400,000 share* Corp. UnderwriterLehman Brothers, New York, to handle U. S. sales oi shares, while Greenshields & Co., Inc., will handle Cansdian distribution of a portion of the offering. Offering —Temporarily postponed. Vultee and its subsidiaries under Employees' Common Subscription Plan of 1953. Price—$25 per share. Proceeds—For common Price—To be supplied by amendment. Consolidated being offered for subscription by certain employees of Stock Bids—Tentatively planned for June 29. executives Records, Inc. filed record per re¬ notification) 300,000 shares of common (par 50 cents). Price—$1 per share. Proceeds—For stock investment pay (Texas) Hartford Special Machinery Co. shares. — of common shares Maggio Chase National Bank, 11 Broad St., New York, N. Y. $1,000 Price—$985 per unit. Pro¬ Business—Water distribu¬ Proceeds—To be St., Wilmington, Del. Underwriter—Charles J. Inc., New York. Letter to be withdrawn. — > I The stock Coronado Copper Mines Corp. Underwriters stock Wash. stock bank loans and for new- construc¬ To be determined by competitive Proceeds—To retire None. Fairway Foods, Inc., St. Paul, Minn. May 8 filed $1,600,000 first mortgage lien 4%% bonds to mature $40,000 annually from 1955 to 1994, inclusive. Price—At 100% of principal amount. Proceeds—To con¬ (no par) (to be amended upon, the acceptance of a bid for the yield $6,000,000). lowest number of whole shares as will bidding. Probable bidders: Stone & Webster Securities Corp.; Merrill Lynch, Pierce, Fenner & Beane and Leh¬ man Brothers (jointly); Carl M: Loeb, Rhoades & Co. Bids—To be received up to 11 a.m. (EDT) on June 23 at l-for-10 basis; rights to a Under¬ Tenn.; (6/23) May 20 filed 350,000 shares of common stock tion. Electronic Associates, holders of record June selling stockholders. Office—Jacksonville, Fla. writers—Equitable Securities Corp., Nashville, and R. S. Dickson & Co., Charlotte, N. C: Gulf States Utilities Co., $7.45 per share; and to public, $8.50 per share. Proceeds repay $279,500 term loan debt and for working capital. Underwriter—D. A. Lomasney & Co., New York; ; and Courts & Co., New York and Atlanta, Ga. —To Gas Service Co. (6/29) May 22 filed 1,500,000 shares of Jan. 23 (letter oi notification) 299,970 shares of common stock (par 10 cents). Price—$1 per share. Proceeds— To acquire leases, for exploration expenses, to repay loans and for working capital. Office—100 West 10th ' ployees. Stockholders have waived rights to purchase 79,000 shares. Price—To stockholders and employees, Feb. 13 filed 50,000 shares of 4% cumulative preferred (par $100) and 700,000 shares of common stock (par $5). Price—At par. Proceeds—For working capital Business—Production of dairy and poultry feeds. Office —Ithaca, N. Y. Underwriter—None. May 27 filed 999,216 shares of common stock (par $2.50). Price—To be supplied by amendment. Proceeds—To 4C (par $1) being offered for subscription by stockholders at rate of a / (6/17) Gulf Life Insurance Co. • two-thirds of Underwriter—None. poses. Harry Hall Co., Safety Bldg., Rock Island, 111. Friendly Finance, Inc., Paducah, Ky. May 21 (letter of notification) 21,400 shares of 6% prefererd stock (par $10) and 21,400 shares of class B non¬ voting common stock (par $1) to be offered in units ol one share of each class of stock. Price—$12.50 per unit Proceeds For operating capital. Office — 107 South Fourth St., Paducah, Ky. Underwriter—W. L. Lyons & Co., Louisville,' Ky. Cooperative Grange League Exchange, Inc. Ltd., Nassau ; $1,350,000 20-year 6% first mortgage conver¬ debentures due March, 1973, and 1,565,000 share* tible S. C. tal. operating capital. Office—2010 Tower Bldg., Dallas, Texas. Underwriter—None. Grand Bahama Co., of class A stock (par 10 cents). Price—Par for oeoen-, (letter of notification) 8,000 shares of common tures and $1 per share for stock. Proceeds — For ne^ stock (par $10) being offered first to stockholders of * construction. Business — Hotel and land development record April 1 at rate of one share for each 6V4 shares Underwriter—Gearhart & Otis, Inc., New York. held; rights to expire May 25. Price—$25 per share. Pro¬ ceeds—For working capital. Underwriter—None. Gray Manufacturing Co., Hartford, Conn. burg, Fla. ceeds—For Sts., Washington, D. C. Underwriter—None. N. W., April 9 tion system. Statement effective about Feb. 13. Insurance Bldg., 14th and L Feb. 3 filed stock. ★ Continental Sulphur & Phosphate Corp. June 4 (letter of notification) $50,000 of 5% 3-year promissory notes (convertible into common stock). Pro¬ stockholders oi working capital. Office- $15 per share. Proceeds—For Under¬ shares of^ preferred stock and one share of common Price—$3 per unit. Proceeds—For working capi¬ Underwriter—Frank M. Cryan & Co., New York. ? 12,000 shares of common the basis of one new share for eacs held; rights to expire on June 24. Price— shares five writer—None. common mulative preferred stock (par $1) and 250,000 shares of common stock (no par) to be offered in units of two Employees Corp. record April 28 on ' ^ Dividend Shares, Inc., New York June 5 filed 7,000,000 shares of capital stock (par 250). investment. Merrill clearing agent. Underwriter—None. (par $5) being offered to common Government Employees Proceeds—For * ' (letter of notification) 1 stock Proceeds—To repay bank loans Underwriter—Allen * subsidiaries. in Government May & Co. Fischer's r Citizens per general corporate purposes. * Lynch, Pierce, Fenner & Beane will act as of June and for / * vestments 1, with rights to expire on June 17; unsub¬ scribed stock to be offered to officers and employees. as Price—At< market. Inc., Quincy, III. March 23 (letter of notification) 2,400 shares of common stock (par $5). Price—At market (approximately $39.50 per share). Proceeds — To E. Carey, Jr., and W. D* P. Carey, the two selling stockholders. Underwriters BosCentral Fibre Products Co., for • Derby Gas & Electric Corp. May 14 filed 47,039 shares of common stock (no par), being offered for subscription by common stockholders on a basis of one new share for each six shares held Price—$18.75 & Mining Corp. Central City Milling mon 11, 1953 The Commercial and Financial Chronicle.. .Thursday, June (2558) Utilities Corp. and accrued purposes. interest. Proceeds—For general corporate Underwriter—Wachob-Bender Corp., Omaha, Nebraska. Kansas Power & Light Co. (6/17) May 6 filed 568,665 shares of common stock (par $5) being offered for subscription by common stockholders of May 25 filed 170,000 shares of common stock (par $8.75) and 50.000 shares of preferred stock (par $100). Price— record June 2 To be supplied by at the rate of shares held; rights to per shar^ expire one on new share for each June 24. 1? Price—$23.50 Proceeds—To reduce bank loans and for in¬ amendment. Proceeds—To loans and for new construction. Boston Corp., New York. repay bank Underwriter—The First f f".. Volume 177 . , Number 5228... The Commercial and Financial Chronicle ; Keystone Helicopter Corp,, Phila., Pa. April 23 (letter of notification) 295,000 shares of com¬ mon stock (par 10 cents). Price—$1 per share. Proceeds —-1*0 purchase helicopter and equipment and for work¬ share). Corp., Wichita Falls, Tex. (6/15) (letter of notification) 120,000 shares of capital stock (par one cent). Price—$2.50 per share. Proceeds— For working capital, etc. Office—Wichita National Bank York. Underwriter—John R. Co., Kent, O. (letter of notification) 7,350 shares of common stock (par $10). Price—At market. Proceeds—To certain selling stockholders. Underwriter—Ball, Burge & Kraus, for each 10 shares held Under¬ Business—Groceries. /-v.V ■ • Proceeds—To - June 25. on Co. (jointly). New shares of received be to 11 up determined a.m. (EDT) 22 filed $35,000,000 loans. > Underwriters—To be determined by competitive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley & Co. Merrill Lynch, Pierce, Fenner & Beane and Glore, Forgan & Co. (jointly); Kuhn, Loeb & Co. Bids—To be received by company up to 11 a.m. (EDT) on June 23. Stock Offering—Company also plans to issue and sell to American its parent, 700,000 (par $100). Telephone & Telegraph Co., additional shares of common stock North American Peat Moss Co., Inc. (6/15-18) April 10 filed 500,000 shares of ommon stock (par 10 cents). Price — $1 per share. Proceeds — To purchase A.*Searight, 50 Broadway, New York, N. Y. Telephone equipment and for working capital. Underwriter-r-R, -A. Xeppler & Co., Inc., New York. > /- Mechanical Handling Systems, Inc. March 31 filed 120,000 shares of common stock (par $1). North Pittsburgh Telephone Co. June 1 (letter of notification) 2,000 shares of common stock to be offered for subscription by common stock¬ Price—To be supplied, by amendment. Proceeds—To pur¬ common stock of The Louden Machinery Co. Busi¬ chase ness—Manufacture holders of record June 1 at rate of and commercial each and sale of conveyors in industrial applications. Office—Detroit, Mich. Un¬ derwriter—Kidder, Peabody & Co., New York. Offering —Indefinitely postponed. filed Corp., Granite City, III. 6% cumulative preferred stock of each share one of Fluorspar. Underwriter — To be supplied by amendment. bank loans and for construction program. Under¬ bidding. Probable bidders: Halsey, Stuart & Co. Inc.; White, Weld repay writers — To be determined by competitive & Co. and Lehman Brothers (jointly); Smith, Barney & Co., Inc. (jointly); Harriman Ripley & Co., Inc., and Union Securities Corp. (jointly). Bids— Co. and Blyth & To be received up to 10:30 a.m. (EST) on June 15 at 415 Clifford St., Detroit, Mich. Mid American Oil & Gas Co., Chicago, III. May 22 (letter of notification) 475,000 shares of com¬ mon stock (par 10 cents). Price—At the market? (around 15 cents). Proceeds—To G. W. Snyder and G. S. Olmstead, the Greenfield selling two & stockholders. 11 to be offered of record filed 40,000 for June oversubscription shares of subscription 30, 1953 on privilege). purposes. stock (par l-for-5 be supplied bank loans and for Underwriters $5) stockholders basis (with an common Price—To amendment. Proceeds—To repay struction — The First by con¬ Boston Corp., New York; and the Robinson-Humphrey Co., Inc., Atlanta, Ga. • share). Saxonburg, Butler Northlands Oils Ltd., Canada 21 filed 1,000,000 shares of capital : shares . and warrants offered in units of to one purchase 200,000 share of stock and shares one to be warrant. Price—75 cents per unit. Proceeds—For drilling of addi¬ wells and Los Angeles, Calif. May 21 filed 372,273 shares of common stock to purchase producing wells. Under¬ writer—M.S. Gerber, Inc., New York. Noryn Mines Ltd., Hull, Quebec, Canada April 23 filed 500,000 shares of common stock (par $1). Price—50 cents per share. Proceeds—To repay loans and for other corporate purposes. Underwriter—None. Oregon Fibre Products, Inc., Pilot Rock, Ore. May 26 (letter of notification) $292,200 of sinking fund debentures due Jan. 1, 1968 and 5,844 shares of common stock (par $1) to be offered in units of $100 of deben¬ tures and two shares of stock. Price—$102 per unit. Pro¬ ceeds—For working capital. Underwriter—None. Otis Oil & Gas Corp., Denver, Colo. May 21 (letter of notification) 1,500,000 shares of com¬ mon stock (par five cents). Price—20 cents per share. Proceeds—For repayment of debt and for working capi¬ tal. Underwriter—Hunter Securities Corp., New York. Inc. (amended April 24 to ucts from Peruvian lands to 1,000,000 held be Government. under concession Underwriter—B. G. from the Phillips & j Co., New York. « May 29 (letter of notification) 2,000 shares of capital stock (no par) to be offered to employees of this com¬ pany in conjunction with offer of a like number of shares Steel of Co.; share. beneficial offer interest expires Proceeds—For in Pittsburgh-Des Moines 30. Price—$43 per Office—Neville Underwriter—None. June on working capital. Island, Pittsburgh 25, Pa. if Pittsburgh-Des Moines Steel Co. May 29 (letter of notification) 2,000 shares of beneficial interest to be sold to employees of company; offer ex¬ pires on June 30, 1953. Price—$17 per share. Proceeds For working capital. Office—Neville Island, Pittsburgh 25, Pa. Underwriter—None. Pittston Co., New York (6/18) May 20 filed 50,000 shares of 5V2% convertible preferred stock to be offered for subscription by common stock¬ holders of record June 18 on the basis of one preferred share for each J3 shares*of-eommo» stock held (with an oversubscription privilege); rights to expire 20 days from date of issuance. Price—At par ($100 per share.) Pro¬ ceeds For working capital. Business — Natural gas. — Undewriter—None. if Powdercraft Corp., Spartanburg, S. C. June 3 (letter of notification) 5,000 shares of capital stock. Price—At par ($10 per share). Proceeds—For working capital. Business—Makes machine parts. Office 746 Hayne St., Spartanburg, S. C. Underwriter—Cal¬ Co., Spartanburg, S. C. if Pubco Development, Inc., Albuquerque, N. M. June *3 filed subscription warrants for 302,989 shares to be issued to present holders of subscription warrants ($1 par* common stock). Price—To be supplied by amendment. Proceeds—For working capital. Under¬ writer—Allen & Co., New York. Public Service Co. of (par $1), for account of company Packaging Materials Corp., Providence, R. I. April 29 (letter of notification) $160,000 of 5% deben¬ tures due Dec. 15, 1960, and 2,000 shares of common 3tock (no par) to be offered in units of an $80 debenture and one share of common stock. Price—$100 per unit.. Proceeds For purchase of machinery. Office — 607 Hospital Trust Bldg., Providence, R. I. Underwrite*— — Palestine Economic Corp., New York May 13 filed 472,301 shares of common stock (no par), being offered for subscription by common stockholders of record June June 17. struction 2 on l-for-8 basis; rights to expire on share. Proceeds—For con¬ Underwriters—Blyth & Co., Inc., -New a Price—$31.50 costs. per York and San Francisco. if Raisin Markets, Inc., Los Angeles, Calif. June 5 (letter of notification) 30,000 shares of class A stock. Price—At par ($10 per share). Proceeds—For working capital. Office—5320 West 104th St., Los Ange¬ les, Calif. Underwriter—None. ^Remington Corp., Auburn, N. Y. (6/15) June 1 (letter of notification) 70,000 shares of common stock (par $1). Price—$3.50 per share. Proceeds—For expansion and working capital. Underwriter—Carl M. Loeb, Rhoades & Co., New York. Resort Airlines, Inc., Miami, Fla. ing—Temporarily postponed. Pennant 'Mutual Telephone Co., Honolulu May 18 filed 200,000 shares of common stock being of¬ fered foi subscription by common stockholders of record 1953 and to employees. Price—At March 6 filed 100,000 shares of common stock par ($10 per (par $25). development of capital. Under¬ Drilling Co., Inc., Denver, Colo. Vlarch 23 (letter of notification) 42,507 shares of common >*ock (par $1). Price—$1.30 per share. Proceeds—To Morris stockholders 242. on a rata pro Proceeds—For basis. Price—20 cents per capital. Address—Box working International Airport, Miami 48, Fla. Underwriter —None. if Richfield Oil Corp., Los Angeles, Calif. June 4 filed $5,700,000 of interests in the Stock Purchase Plan for Employees of this corporation, together with 100,000 shares of no par common stock which may be purchased pursuant to the provisions of the Plan. Ridley Mines Holding Co., Grafton, N. D. 120,000 shares of common stock. Price—At par ($5 per share). Proceeds — For working capital. June 1 filed writer—None. Brothers, New York. Offer¬ -r Indiana, Inc. share. Underwriter—None. loans. Underwriter—Lehman Concessions Co., capital. Price—$28 per share. Proceeds — For Israel industry, etc., and for working June 1, Oil March 6 (letter of notification) 724,687 shares of common stock (par 10 cents) to be offered for subscription by and 262,273 for account of selling stockholders. Price—To be supplied by amendment. Proceeds — To reduce bank are Peruvian Jan. 16 filed 9,000,000 shares of common stock houn & stock (par 20C Canadian) and subscription warrants for 600,000 shares, which statement was amended May 20 to 200,000 None. Monterey Oil Co., of which 110.000 shares an if Overland Oil & Gas Corp., Bismark, N. D. (letter of notification) 115,668 shares of common stock. Price—$1 per share. Proceeds—For operating common a share for per June 5 (7/1) by — new ($25 — Co., Inc., New York. ^ Mobile Gas Service Corp. June Underwriter one par — tional Michigan Consolidated Gas Co. (6/15) May 15 filed $20,000,000 of first mortgage bonds due 1978, Proceeds—From sale of bonds, plus proceeds from sale of 215,000 shares of common stock (par $14) to American Natural Gas Co., parent, for $3,010,000, to be used to Price—At held. Nov. (pai Price—$6 per unit. Proceeds—For work¬ ing capital. Business—Purchase, processing, refining and shares — 113,000 shares of common four Proceeds For equipment. Office County, Pa. Underwriter—None. class of stock. sale one oversubscrip¬ privilege), with rights to expire on July 15; and then to preferred stockholders. Price—$1.50 per share. Proceeds—To retire $65,000 short-term debt and for working capital. Office—ill Quimby St., Westfield, N. J. • • WHitehall 3-2181. Offering—Date indefinite. (par $5) and 113,000 shares of 10 cents) to be offered in units of June 16 at 67 Telephone Co., New York (6/23) of refunding mortgage bonds, series G, due July 1, 1984. Proceeds — To repay bank Inc. 10,000,000 shares of common stock (par 25 cents). Price—$2 per share. Proceeds—For drilling of exploratory wells, acquisition of leases and for general corporate purposes. Underwriter—B. V. Christie & Co., Houston, Tex. Dealer Relations Representative—George itOck on St., New York 4, N. Y. New York • McCarthy (Glenn), 3 (with if Pittsburgh-Des Moines Co. be ,:May June 12 filed Mex-American Minerals share for each shares held (par $1) shares). Price—$2 per share. Proceeds—For general corporate purposes. Busi¬ ness—Plans to produce and sell petroleum and its prod¬ Underwriters—To common Ydrk^ Statement effective June 10. Conversion privilege expires on July 8. \ Nov. stockholders of record June 1 at rate of common Underwriter—N one. Broad demption price of unconverted shares of $1.05 convert¬ ible preferred stock (154,160 shares as of June 9, 1953), which have been called for redemption July 13. Underwriter—Merrill Lynch, Pierce, Fenner & Beane, New < by common to be first offered for subscription by Competitive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler; Union Securities Corp. and White, Weld & Co. (jointly); The First Boston Corp. and Kidder, Peabody & Co. (jointly); Carl M. Loeb, Rhoades & Co.; Equitable Securities Corp.; Kuhn, Loeb & Co.; Lehman Brothers and Goldman, Sachs & Co. Underwriter— supplied by amendment. towards payment of the; re¬ applied oversubscription privi¬ stock (par 25 cents) tion. Proceeds— Price—To be be an share new Jersey Power & Light Co. (6/16) May 7 filed $5,500,000 of first mortgage bonds due 1983. Proceeds—To repay bank loans and for new construc¬ • approximately 175181 (par $1). (with one Pennsylvania & Southern Gas Co. (letter of notification) 98,240 shares of June 1 tion To stock Corp. Bids—Tentatively set for 11 a.m. June 30, Statement effective May 22. new & Maryland Casualty Co., Baltimore, Md. May 22 filed the basis of on Proceeds — . on exchange for all the outstanding stock of Scranton Offer expires June 22. Underwriter—None. Price—$12 per share. lege); rights to expire Market Basket, Los Angeles, Calif. May 25 (letter of notification) 14,886 shares of common stock (par 50 cents). Price—$11.50 per share. Proceeds —For working capital. Office 6014 S. Eastern Ave., • Securities —For expansion program. Underwriters — Blyth & Co., Inc., Lehman Brothers and Bear, Stearns Price— Underwriter—None. " / able (jointly); Merrill Lynch, Pierce, Fenner & Beane. Bids— Price—To be supplied by amendment. * Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.; Kidder, Peabody & Co.; The First Boston Corp.; Equit¬ Electric Co. holders of record June 11 Lone Star Sulphur Corp., Wilmington, Del. May 8 filed 600,000 shares 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¬ - Building, Portland 4, Ore. Underwriter— 1 • New England Electric System (6/16) May 4 filed 828,516 additional shares of common stock (par $1) to be offered for subscription by common stock¬ writer—None. None. bidders: Underwriters by competitive biddding. Probable In None. O. Angeles, Calif. determined be Pennsylvania Power & Light Co. May 1 filed 743,496 shares of common stock (no par), 21,752 shares of 4.40% preferred stock (par $100), 53,248 shares of 3.35% preferred stock (par $100) and 39,936 shares of 4V2% preferred stock (par $100) being offered stock — Link-Belt Co., Chicago, III. May 22 filed 22.793 shares of common stock (par $5) to be offered for subscription by "selected group of officers Los 1983. Proceeds—For construction program. —To Office—Times Lamson & Sessions For expansion program. Pennsylvania Electric Co. (6/30) May 28 filed $12,500,000 of first mortgage bonds due 1,400 shares of 6% non(par $100) and 1,400 shares of common stock (no par) to be sold in units of one share of each class of stock. Price—$101 per unit. Pro¬ ceeds For working capital. Business—Credit service. May 11 (letter of notification) H;■ tion." Boland, New York. 51 Card, Inc., Portland, Ore. cumulative preferred May 20 Proceeds—For working capital. Underwriter— costs. (EDT) National Credit Bldg., Wichita Falls, Tex. Underwriter—Aetna Securities Corp., New York. ' « $37 per share. „ • KLB Oil and employees of company and its subsidiaries." expansion . Nagler Helicopter Co., Inc. (N. Y.) (6/16) May 26 (letter of notification) 299,000 shares of common stock (par one cent). Price—$1 per share. Proceeds— For working capital. Office—130 West 42nd St., New May 25 Cleveland, Proceeds—For None. ing' capital. Office—Land Title Bldg., Philadelphia, Pa. Underwriter—None. - (2559) Replin, the selling stockholder. Underwriter— Peters, Writer & Christensen,Tnc., Denver, Colo. Underwriter—N one. Robertshaw-Fulton Controls Co. (6/22) /> May 29 filed 160,000 shares of cumulative convertible preferred stock (par $25). Price—To be supplied by amendment. Proceeds—For expansion program. Under¬ writer—Reynolds & Co., New York. Continued on page 52 52 The Commercial and Financial Chronicle.. .Thursday, (2560) Continued None. from page 51 & Electric Corp. * Rochester Gas for Underwriter—The construction. new May 25 (letter of notification) 275,000 shares of common stock (par 10 cents). Proceeds—To George W. Snyder, First Underwriter—Greenfield & Jr., President and director. Co., Inc., New York. Rights will expire on June 12. Price Proceeds—To repay bank loans and shares held. seven City, Utah United Minerals Corp., Salt Lake stock (no par) being offered for subscription by common stockholders -of record May 28 at the rate of one new share for each May 8 filed 175,000 shares of common £36.25 per share. Peoples Gas.Light & Coke Co., has agreed to take ' ; * all unsubscribed stock. May 4 (letter of notification) 115,000 shares of common stock. Price—At par (10 cents per share). Proceeds— equipment. Underwriter — R. L. Hughes & * Rogers Corp., Manchester, Conn. (6/22) May 11 (letter of notification) 10,909 shares of class B «common stock to be offered for subscription by holders of class B stock at rate of one new share for each two For mining 22; rights to expire on June 29. Proceeds—To retire $100,000 bank loan and for working capital. Business — Manufacture of plastic materials. Underwriter—None. May 28 filed 1,000,000 shares of common stock (par 5 cents). Price—To be supplied by amendment. Proceeds —For working capital, etc. Underwriter—Gearhart & shares held Price—$20 Co., Denver, Colo. U. 8. Airlines, June on share. per Saint Anne's Oil Production Co. Amendment to be filed. 111. -cago, i San : new Jfor share. Inc., San Francisco and New York. Schlafly Nolan Oil Co., Inc. March 25 filed 150,000 shares of •cents). Price—$4 & Co., • stock (par 25 L. H. Rothchild & Co., New York. Offering Underwriter Nielsen — & — & ferred Sound plan. (6/16) "Subscriber-Vision." Underwriter — Office — one line. 122,700 reserved shares for sale of to common trustees of the X953; also 139,762 additional shares buy of Subsidiaries" plan to be June Proceeds—For expansion of business and other -corporate purposes. Office—Long Island, N. Y. Under¬ & Co. and Childs, Jeffries and Thorndike, Inc., both of New York. writers — Estabrook (CI- S.) Suppiger Co., Collinsville, III. (letter of notification) 3,750 shares of common (par $10) and 750 shares of preferred stock (par £100) to be offered in units of five shares, of common June 8 stock and one share of preferred. ceeds—For working capital. Price—$200 per unit. Pro¬ Business—Food packager. Underwriter—N one. Texas Pipeline Co. May 6 filed 927,273 shares of be offered Price—To aew common stock (par $1) to subscription by common stockholders. supplied by amendment. Proceeds—For for be construction and working capital. — Underwriter Prospective Offerings Mfg. Co. May 6 stockholders approved to Underwriter—None, the parent to 5,000,000 shares (par $20). It is not presently planned stock. Underwriter—Pre¬ to issue any of the additional of capital Price—At par • Western Light & Telephone Co., Inc. ; May 18 filed 78,202 shares of cumulative convertible pre¬ ferred stock (par $25) to be offered for subscription by stockholders on the basis of one new share for each five common shares held. Price To be supplied by amendment. Proceeds—From sale of preferred stock, together with funds to be received from sale of $3,000,000 — ,iirst mortgage bonds, to reduce bank loans and for construction. Chicago, 111. Underwriter Arkansas Power & March 20 it — Harris, Hall ferred stock to be offered to stockholders. per None. ■>:. share). Main Proceeds — stock & Co., plant. and 45,891 shares of $6 preferred stock per share. Underwriters— To be determined 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. Atlantic Refining Co. March 27 it sue was announced that proposed debenture is¬ later this year will be around nature $60,000,000. The exact timing of the financing are still to be de¬ and termined. Stockholders authorized debt ceeds—To be from used voted May to help struction program for 1953. 5 for pay increase to to $150,000,000. $75,000,000 the Pro¬ $100,000,000 con¬ a Underwriters—Smith, Barney & Co. may head group. Bangor & Aroostook RR. bid was received by the RFC at Room 1157, 811 One Vermont p.m. Ave., N. W., Washington, D. C., prior to 5:30 (EDT) May 25 for the purchase from it of $1,- on 675,000 of collateral trust 4% -It was refused, however, as it the bonds be may 1961. bonds due July 1, was offered too low. It is possible again in the coming Blue Crown Petroleum May 12 it 300,000 reported was shares of Co., Ltd. plans to issue and sell company common share. Underwriters — Van Price—95 stock. cents per Alstyne, Noel & Co., New York, and Walston & Co., San Francisco, Calif. Offering —Expected in June. Boston Edison Co., Boston, Mass. June 2 stockholders approved a proposal to offer 246,866 shares of capital stock (par $25) to stockholders on the basis of one new share for each 10 shares held oversubscription privilege). Proceedsr—For new (with an construc¬ tion. Underwriters—To be determined by competitive bidding. Probable bidders: The First Boston Corp.; Blyth & Co., Inc.; Smith, Barney & Co.; Harriman Ripley & Co., Inc. Offering—Expected in July. Central Power & Light Co. 2 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 and Glore. Forgan & Co. (jointly); Blyth & Co., Inc., Harriman Ripley & Co., Inc. and Smith, Barney & Co. (jointly); Salomon Bros. & Hutzler. Corp. Involve common stock. common March 24 voted stock or debt securities convertible into Stockholders to some authorize at an the annual additional shares meeting 1,000,000 of common stock. Underwriters Kidder, Pea¬ body & Co. and Estabrook & Co. handled offering in November, 1949, of $6,000,000 2% convertible debentures. — Central Illinois Public Service Co.. March 26 it was reported that the company may about mid-July sell about $6,000,000 additional common stock (first to common stockholders). Underwriter—The First Boston Corp., New York. ized common parishes pre¬ Price—At par Underwriter— *' announced that portion of the com¬ pany's financing program for 1953-1954 will involve the sale of $16,550,000 new securities, a portion of which will was Inc., 1 / - Western Saff!owerr Corp. ^ \ ' April 9 (letter of notification) ^OJjOQ, shares of common stock (par 25 cents). Price—$1.2o'/per. share. Proceeds— To construct (no par) (no par), both callable at $110 Central Louisiana Electric Co., Inc. April 16 stockholders authorized a block of the author¬ For operating capital. St./Houston 2, Tex. : ■> Light Co. announced that company may consider refunding the outstanding 47,609 shares of $7 preferred was new Offering—Temporarily postponed. • Western Natural Gas Co., Houston, Tex. June 8 (letter of notification) 7,030 shares of 5% (par $30 handled by Blyth & Co., Inc. was Bancorporation, Phoenix, Ariz. June 1 it was announced corporation plans to offer pres¬ ent stockholders the right to subscribe after July 15 for 100,000 additional shares of capital stock on the basis of one new share for each two shares held. Price — $10 per share. Underwriter—None. Central Hudson Gas & Electric be offered for subscription by stockholders of 10 at the rate of one new share for each common financing March 3 it None. , proposal to increase the a stock from 3,750,000 shares (no par) common March June Office—1006 Illinois Natural Gas Of¬ ($25 per share). Pro¬ ceeds—To repay debt and for general corporate pur¬ poses. Office—38 Main St., Westerly, R. I. Underwriter— «stock ment. supplied by amend¬ Power Co. three shares held. 1, 1968, and 40,000 shares of common (par $1), of which 20,000 shares are for account <st selling stockholders. Price—To be supplied by amend¬ To be stock unsubscribed shares. any record Statement effective June 8. due Underwriters stock to stock "for & Sunrise Supermarkets Corp. (6/25) •Tune 5 filed $400,000 of subordinate sinking fund deben¬ tures — St., York, Pa. Underwriter— months. (par 50 $50 debenture and common one Westerly Automatic Telephone Co. June 1 (letter of notification) 9,333 shares during July, common Co., Dallas, Tex. May 20 filed an unspecified number of shares of com¬ mon stock (no par), sufficient to raise approximately $7,000,000, to be offered for subscription by common stockholders (other than West Penn Electric Co., parent). Price—To be supplied by amendment. Proceeds — For possible public sale by selling stockholders during the period of July 1, 1953 to June 30, 1954." Underwriter— None. Price construction program. par) Underwriter— Proceeds—From sale of units and West Penn Gearhart, Jr., (no share. White, Weld & Co. and Union Se¬ Corp., both of New York. Offering—Postponed indefinitely. in the "Employees' stock per curities Sun Oil and $27 Line Co., Dallas, Tex. 1,125,000 shares of common stock (par 50 cents). Price—To be supplied by amendment. Proceeds —Together with other funds, to be used to build pipe¬ Stylon Corp., Milford, Mass. May 22 (letter of notification) 32,043 shares of common •stock. Price—At the market (around $1 per share). Pro¬ ceeds—To Joseph Maas, Newton, Mass. Business—Manu¬ Co. of re¬ West Coast Pipe by competitive bidding. Probable Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; Kuhn, Loeb & Co.; The First Boston Corp. Bids— deceived on May 5 but rejected. Oil Puget Nov. 20 filed determined of Sun each Corp., both of New York. fering—Postponed indefinitely. bidders: Plan for Co. and Union Securities Telephone & Telegraph Co. April 9 filed $30,000,000 of 24-year debentures due May 1, 1977. Proceeds—To repay advances from American Telephone & Telegraph Co., the parent. Underwriters— Hmd common 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 mile crude oil pipeline. Underwriters—White, Weld & Southern Bell •stock Purchase share of stock. ment. * Co., Philadelphia, Pa. April 27 filed 14,000 memberships of 15, 1964, and 580,000 shares of cents) to be offered in units of New Wright, Wood & Co., Phila¬ factures ceramic tile. Underwriter—F. D. New York. the rate West Coast Pipe Line Socony-Vacuum Oil Co., Inc. May 19 filed $15,000,000 of interest in company's em¬ ployees' savings plan and 375,000 shares of capital stock purchasable under the plan. Statement effective June 2. be share share to holders who do not elect to Nov. 20 filed $29,000,000 12-year 6% debentures due Dec. delphia, Pa. To one-half Market Allis-Chalmers that 15,000 shares of common (par lOtf). Price—At the market (about $2-$2V2 per share—$2.12y2 per share to underwriter). Proceeds demonstrate on D. C. Statement effective June 9. None. June 2 (letter of notification) York City. and common ceive cash at •stock —To (EDT) Bids—To be received June 15 at the company's Washington Water Power Co. May 7 filed 1,088,940 shares of $1.28 cumulative con¬ vertible preferred stock (par $25) and 1,088,939 shares of common stock (no par) to be issued in connection with the proposed merger into company of Puget Sound Pow¬ er & Light Co. on the basis of one-half share of pre¬ Co., New Corp. Securities Corp. Union to 11:30 a.m. up Corp. May 22 filed $10,500,000 of participations in employees •savings plan, together with 210,000 shares of no par com¬ Skiatron Electronics & Television Co.; office in Washington, Sinclair Oil stock of corporation issuable under Underwriters— by competitive bidding. Probable bid¬ Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co. and AUyn & Co. Inc. (jointly); Merrill Lynch, Pierce, Fenner & Beane and Stone & Webster Securities Corp. (jointly); Equitable Securities Corp.; Kidder, Peabody York, N. Y. mon construction. new ders: Manufacturer of electronic and electro-me¬ devices. Proceeds—For West owned None. A. C. (Edgar L.), Inc. (N. Y.) May 25 (letter of notification) 298,000 shares of comxnon stock (par one cent). Price—$1 per share. Proceeds —To acquire plant, machinery and equipment; and for working! capital. Office—10-15 Spruce St., New York. — (6/15) To be determined Scillitoe chanical Washington Gas Light Co. 1978. Indefinitely postponed. Business America, Davenport, Iowa notification) 10,000 shares of common $10 per share. Proceeds — For working May 20 filed $7,000,000 of refunding mortgage bonds due leaseholdes, royalties and producing properties, to prospect for oil and gas and to develop and operate producing properties. Office—Mt. Vernon, 111. Under¬ — — shares 12 Arizona Walburt Oils Ltd., Toronto, Canada April 24 filed 660,000 shares of common stock (par $1) which 550,000 shares will be offered in the United States and 110,000 shares in Canada. Price — $1.02 per 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. i«ell writer '■ of . common Price stock. share. Proceeds—To purchase and per / capital. Underwriter—A. J. Boldt & Co., Davenport, la. bank loans and Underwriter—Blyth program. ;;; Vault Co. of share for each three Proceeds—To retire construction Underwriter—George F. Breen, March 2 (letter of (with rights to expire July 2); employees to "be entitled to purchase unsubscribed shares. Price— per Office—127 vious 1 •shares held £13.30 (with an oversubscrip¬ tion privilege); rights to expire July 14. Price—$40 per share. Proceeds—From sale of stock, together wi|Ji $600,000 to be received from sale of first mortgage bonds to repay $600,000 bank loans and for new construction. authorized New York. of one new stockholders of record June 17 at rate J. A. Numero. President. May 20 filed 800,000 shares of common stock (par $10) to be offered for subscription by common stockholders one mon £ U. S. Thermo Control Co., Minneapolis, Minn. June 5 (letter of notification) 20,000 shares of common stock (par $1). Price—$3.25 per share. Proeeeds—To Diego Gas & Electric Co. •of record June 9 at rate of York County Gas Co. (6/24) May 25 (letter of notification) 6,000 shares of common stock (par $20) to be offered for subscription by com¬ (6/18) Inc., New York Otis, Inc., New York. April 23 filed 270,000 shares of common stock (par $1). .Price—$5 per share. Proceeds—To acquire stock of Neb-Tex Oil Co., to pay loans and for working capital. Office—Northwood, Iowa. Underwriter—Sills, Fairman »& Harris and H. M. Byllesby & Co., Inc., both of Chi- Co., Underwriter—E. I. Shelley Colorado Springs, Colo. Denver, Colo. share for each United Mining & Leasing Corp. Central City, Colo. Boston Corp., New York. June 11, 1953 Office—Fi?g^ Rational Bank Bldg., in stock for which the issuance and sale locally in the facilities of the company are located, such stock not to exceed $300,000 in aggregate market value. They also approved issuance of securities convertible into shares of any class of capital stock. Central Maine Power Co. Jan. it was reported company plans sale later this of $10,000,000 common stock (in addition to $10,000,000 of 1st & gen. mtge. bonds sold March 10, 1953), after distribution by New England Public Service Co. ol 2 year its holdings of Central Maine Power Co. common stock. Probable bidders: Blyth & Co., Inc. and Kidder, Peabody Number 5228... The Commercial and Financial Chronicle Volume 177 (2561) & Co. (jointly); Coffin & Burr, Inc.; A. C. Allyn & Co., & Co. (jointly); Harriman Ripley Inc. and Bear, Stearns & Co., Inc. Feb. 20 it Baltimore sion 000 petitioned the Maryland P. S. Commis¬ authority to issue and sell $15,000,000 of de¬ company for Proceeds—From sale of bentures. debentures, plus $25,- 000,000 to be received from sale of common stock to American Telephone & Telegraph Co., parent, for re¬ payment of loans and for new construction. Under¬ writers'— To be determined by competitive bidding. Halsey, Stuart & Co. Inc.; Kuhn, Loeb Co.; Morgan Stanley '& Co.; The First Boston Corp.; Harriman Ripley Co. Inc. and Alex. Brown & Son (jointly). Bids—Expected to be received in July. & Chicago, St. Paul, Minneapolis & Omaha Ry. (6/18) Bids will be received by the company at 400 West Madi¬ St., Chicago 6, 111., up to noon (CDT) on June 18 purchase from it of $1,170,000 equipment trust certificates to mature annually on July 1 from 1954 to son the inclusive. 1968, Co. Halsey, -Stuart bidders: Probable & Inc.; Salomon Bros. & Hutzler; R. W. Pressprich & Co. Cincinnati Gas & Electric Co. ' March 31 it the revealed was plans to raise company $35,000,000 through sale of new securities (mostly Proceeds—For •determined bonds).4 Underwriters—To be construction. new competitive bidding. Probable bidders •for bonds: Halsey, Stuart & Co. Inc.; Morgan Stanley & rCo.; Kuhn, Loeb & Co. and Salomon Bros. & Hutzler by (jointly); Blyth & Co., Inc., and The First Boston Corp. (jointly); Union Securities Corp.; Glore, Forgan. & Co. and White, Weld & Co. (jointly); W. C. Langley & Co.; Lehman Brothers; Harriman Ripley & Co., Inc.; Merrill 'Lynch, Pierce, Fenner & Beane. Previous equity fi¬ nancing was underwritten by Morgan Stanley & Co. and W. E. Hutton & Co. Jan. 9 it was • April 14 on was collateral announced company plans sale of $7,000,- trust in City Bank & Trust Co. of Reading, El Paso Natural Gas Co. 25 it was announced company plans to place privately $120,000,000 of first mortgage bonds and sell publicly 200,000 shares of preferred stock and $25,000,000 debentures. Underwriter—White, Weld & Co., N. Y. Price—$30 per shares issued. additional shares of of an & Fort Worth June 2 it April 6 it was announced company plans to issue and sell later this year $40,000,000 of new debentures. Pro¬ repay bank loans and for construction pro¬ gram. Underwriters—To be determined by competitive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley & Co. Commonwealth Edison Co. May (7/8) planned mortgage bonds, due 1983. Proceeds—To help pay cost of new construction, which, it is estimated, will total ap¬ proximately $500,000,000 during the four years through 1956, of which about $280,000,000 will be obtained from the sale of Underwriters—To securities. new be de¬ termined by competitive bidding. Probable bidders: Hal¬ Stuart & Co. Inc.; Kuhn, Loeb & Co., Lehman Brothers, and American Securities Corp. (jointly); The sey, First Boston Corp.; Glore, Forgan & Co. Bids—Tenta¬ tively scheduled to be received about July 8. Registra¬ tion—Expected on June 11. National Consumers Power Co. (Mich. (7/16) • derwriter—To be determined by competitive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; Harriman Ripley & Co., Inc. and The First Boston Corp. (jointly); Kuhn, Loeb & Co. and Union Securities Corp. (jointly); Morgan Stanley & Co.; White, Weld & Co. and Shields & Co. (jointly). Bids — Expected be to received on the stockholders approved authorized preferred proposal to increase a stock from 200,000 shares to 300,000 shares (par $100). Probable bidders for any new preferred stock financing may include Blyth & Co., Inc., and The First Boston and Shields & Corp. (jointly); White, Weld & Co. Co. (jointly); Lehman Brothers; W. C. and Union Securities Corp. (jointly); Langley & Co. Morgan Stanley & Co. it is possible that Stuart Cooper, stock common may President, said be sold later in the year. Denver & Rio Grande Western RR. Bids are about expected to be received by the company on or Aug. Nov. it of $3,300,000 semi-annually from 1, 1953, to May 1, 1968, inclusive, and on or about Oct. 1 equipment of 3 for trust a like the purchase certificates amount of from due said certificates. bidders: Halsey, Stuart & Co. Inc.; Hutzler; Kidder, Peabody & Co. Salomon Probable Bros. & Detroit Edison Co. March 24 it was announced company plans to issue an unspecified amount o.f convertible debentures due 1963 (about $55,000,000 to 4%) which may carry an first be interest rate not exceeding for subscription by offered stockholders. Proceeds—To retire bank loans and to meet National stockholders of Bank record of were of Price—$8 bottling new Detroit offered — a total ef one-for-liv* on a Proceeds—To increase capital and surplus, $50 per shares Underwriter* Michigan Corp. Menabi Exploration Co., Inc.* Houston, Tex. / April 8 it was announced company plans to issue and sell $1,000,000 of convertible debentures. Proceeds—Tte Bank, Fort Worth, Tex. announced stockholders will vote June 16 April 27 it Minneapolis-Honeywell Regulator Webber, Jackson Securities states an & 476 issue of 3,000 shares that, under present plans, these shares will be is¬ the growth of the corporation warrants. Greenwich Gas Co. the 7 Connecticut to issue U. P. Commission authorized sell and Corp., New York. & Light Co.'s $6 preferred stock shares are now Washington, D. C. as a proposal increasing (par $1.50) from 3,440,000 to Mississippi Power & Light Co. March 20, E, H. Dixon, President of Middle South Utili¬ ties, Inc., announced that refunding of Mississippi Power Curtis and Stone & Webster Securities Corp. March 18 stockholders authorized Co. approved stock common 3,950,000 shares and the preference stock (par $100) from 160,000 to 210,000 shares. Immediate issuance of in¬ creased stock not planned. Underwriter—Probably Union Kentucky Probably Paine, — stockholders authorized reported early registration is expected of 50,000 shares of cumulative preferred stock (par $50). Underwriters (no par), of which 44*may be consideredL outstanding, This issue is callable at $110 per share. Underwriters— To be determined by competitive s bidding. Probable bi&Blyth & Co., Inc., and Equitable Securities Corp* (jointly; W. C. Langley & Co., and The First Boston Corp. (jointly); Kidder, Peabody & Co., and MerrfH Lynch, Pierce, Fenner & Beane (jointly); Union Securi¬ ders: ties Corp. $200,000 of first mortgage bonds and $483,000 par value of common stock (the latter first to stockholders). Proceeds—To retire bank Dec loans. Underwriter—F. L. Putman & Co., Boston, Mass. sale • bonds. Gulf Interstate Gas Co. June 8 it of was reported that early registration is expected $13,600,000 of 5V2% notes and 3,400,000 shares of com¬ stock to be offered in units of $20 of notes and five of stock initially to stockholders of Panhandle shares Eastern Pipe Line Co. Price—$48.75 per unit. Proceeds —From sale of these securities, together with $96,000,000 to be received from sale of first mortgage to 18 insurance 4^8% bonds companies, led by Metropolitan Life In¬ surance Co., to be used to pay for new construction. Un¬ derwriter Carl M. Loeb, Rhoades & Co., New York. Offering—Of units, expected late in June. — • Industrial National Bank (Detroit) May 29 have right to subscribe on or before June 26 for 25,000 additional shares of capital stock (par $10) on the basis of one new share for each eight shares held. Price—$30 per share. Pro¬ Stockholders of record increase capital and surplus. Inc., Cambridge, publicly 131,784 additional shares of common stock fol¬ lowing hearing to be held by SEC on June 15. Proceeds —For expansion. Underwriter — Lee Higginson Corp., New York and Boston Iowa Electric writers (Mass.). Light & Power Co. reported company may sell in June some and preferred stock and/or debentures. Under¬ — was For stock: The First Boston Walker & Co., both of New York. was Corp. and G. H. Previous debt financ¬ done privately. Iowa-Illinois Gas & Electric Co. May 15 it was reported company may issue and sell early in 1954 abo'ut $6,000,000 aggregate amount of com¬ mon stock. Underwriters—To be determined by competi¬ tive bidding. Probable bidders: Lehman Brothers; The First Boston Corp.; Merrill Lynch, Pierce, Fenner & Beane, Harriman Ripley & Co. Inc. May 12 it was reported company may about $4,750,000 first mortgage bonds. pay it $800,000 bank loans and for issue and sell Proceeds—To new re¬ construction. Underwriter—Central Republic Co., Inc., Chicago, 111. Long Island Lighting Co. April 21 it was announced that company this Fall plans to issue and sell in the neighborhood of 600,000 shares 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¬ gage bonds (this is in addition to 100,000 shares of series C preferred stock, par $100, offered publicly on May 7). Proceeds—To repay bank loans and for new construction. Underwriters (1) For common stock, probably Blyth & Co., Inc. and The First Boston Corp. was announced company plans issuance the middle of 1953 of $10,000,000 first and mortgag* ly); Kuhn, Loeb & Co.; Kidder, Peabody & White, Weld & Co. (jointly); Glore, Forgan & man Brothers; Equitable Securities curities Corp.; Co. and Co.; Leh¬ Union Se¬ Corp. and Salomon Bros. & Hutzler (jointly);; Lynch, Pierce, Fenner & Beane; Harriman Rip¬ ley & Co., Inc. „ Merrill Montana-Dakota Utilities Co. May 2 it was announced company plans to issue and sell in 1953 approximately $8,000,000 of first mortgage bonds.^ Proceeds—For 1953 construction program. Un¬ be determined by competitive bidding. 1 Probable bidders: Halsey, Stuart & Co. Inc.; Blyth & Cou. derwriters—To Inc., Merrill Lynch, Pierce, Fenner & Beane Weld & Co. (jointly). Natural mon June 4 it was announced company, a subsidiary of American Research & Development Corp., plans to offer ing 11 near Underwriters—To be determined by competitive bidding. Probable bidders: Halsey, Stuart & Co. Inc. W. C. Langley & Co. and The First Boston Corp. (joint¬ Underwriter— Mass. US Monongahela Power Co. May 29 it -4r Ionics, > writer—Kidder, Peabody & Co., New York. was Kansas-Nebraska Natural Gas Co., Inc. (8/3) 9 —Watling, Lerchen & Co. and First Securities Co. and First Southwest Co., both of Dallas. common Delaware Power & Light Co. April 21 Manufacturers a April 28 April 13 it July 16. stock to its stockholders at 60,000 shares of capital stock (par $20) basis; rights to expire June 23. Price . None. applied to Michigan P. S. Commission for authority to issue and sell $25,000,000 of 30-year first mortgage bonds. Proceeds—For new construction. Un¬ company common shares for each share held. new offered for subscription by stockholders on a one-for-six basis. Price—$20 per share. Underwriters—Dallas Union ceeds—To • May 29 Under¬ finance development of oil properties in Ecuador. Under-. mon Willis Gale, Chairman, announced company to issue and sell an issue of $40,000,000 first 26 bonds. approving a proposal to split-up the present outstand¬ ing 300,000 shares of capital stock on a two-for-one basis, following which 100,000 additional shares will be company was ceeds—To Inc. mortgage — June on May Columbia Gas System, first share. Proceeds To help finance plant. Underwriter—None. unsubscribed shares. Proceeds—To retire $2,190,000 Georgia Railroad & Banking Co. debentures held by insurance firm. Underwriters—Johnson, Lane, Space Co. and Joseph Walker & Sons. " , of four per the Proceeds—To increase capital and share. surplus. of determined rate Banking Co. exchange for each share held, one share of the new company's stock, the right to subscribe within 30 days for 13 additional shares at $4.10 per share and a $250 collateral trust 5% bond due May 1, 1990; the offer to become effective upon acceptance by 95% of the out¬ standing stock. An additional 210,000 of the new shares would be purchased by the underwriters, plus any of Government Employees Corp., be be in Pa. will To — Maier Brewing Co., Los Angeles, Calif. April 18 it was announced company will offer 400,00b sued fractional No announced company may issue and sell First Railroad & Banking Co. of Georgia was announced that this new company will offer stockholders of Georgia Railroad & May 4 it two held. was $12,000,000 by competitive bidding Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co., Lehman Brothers and A. C. Allyn & Co., Inc*. (jointly); Blyth & Co., Inc.; White, Weld & Co. andl Shields & Co. (jointly); Salomon Bros. & Hutzler; W. C. Langley & Co., The First Boston Corp., and Glore^ Forgan & Co. (jointly); Merrill Lynch, Pierce, Fenner & Beane and Kidder, Peabody & Co. (jointly); Harri¬ man Ripley & Co., Inc.; Equitable Securities Corp. of preferred stock (par $100) to carry a cumulative divi¬ dend rate not to exceed 6% annually. The management shares June writers March have war¬ rants mailed to them entitling them to subscribe on or before July 15 for 15,000 additional shares of capital stock (par $10) on the basis of one new share for each . Louisiana Power & Light Co. March 20 it Corp. (jointly); The First Boston Corp., White, Weld & Co. and Kidder, Peabody & Co. (jointly); Glore, Forgan & Co. and Harriman Ripley & Co. Inc. (jointly). General Telephone Co. of reported company plans issuance and sale about June 1 shareholders of record May 15 were to . (jointly). (2) For bonds to be determined by com¬ petitive bidding. Probable bidders: Halsey, Stuart & CO» Inc.; Blyth & Co., Inc. and The First Boston CorpL (jointly); W. C. Langley & Co.; Smith, Barney & Co. Underwriter—None. Tex. 500,000 shares of common stock. Price—Ex¬ pected to be around $10 per share. Underwriter—Hayden, Stone & Co., New York. Offering—Postponed. . debentures. Co. and Stone & Webster Securities Cinerama Productions Corp. of Meeting—Stockholders new mortgage bonds due 1973. Under¬ writers—To be determined by competitive bidding. Prob¬ able bidders: Halsey, Stuart & Co. Inc.; Estabrook & Probable bidders: for costs. authorized the Eastern Utilities Associates Chesapeake & Potomac Telephone Co. of May 1 construction 5$ Gas & on held. Corp. was announced company stockholders stock Oil and White, plans to offer to com¬ 450,000 additional shares of common the basis of Proceeds — one For new new share for each four share* construction. Underwriter None. Mississippi River Fuel Corp., which owns one-half Gas & Oil common stock, will subscribe to its share plus any unsubscribed shares. Offering — Ex¬ pected early in July. of Natural New York, Chicago & St. Louis RR. (6/17) Bids will be received by the company up to noon (EDT) on June 17 for the purchase from it of $3,150,000 equip¬ ment trust certificates to be dated July 15, 1953 and mature annually to and including July 15, 1968. Prob¬ able bidders: Halsey, Stuart & Co. Inc.; R. W. Press¬ prich & Co. Salomon Bros. & Hutzler. New York State Electric & Gas Feb. 27 it issue was and sell Corp. reported that company may, later in 1955L $20,000,000 first mortgage bonds (following private sale of 75,000 shares of 4.40% preferred stock* $100 in February and $5,000,000 of 3%% debenture* due 1991 in April). Underwriters—To be determined by par competitive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; The First Boston Corp. and Glore Forgan. & Co. (jointly); Blyth & Co., Inc. and Smith, Barney (jointly); Hemphill, Noyes & Co. and Drexei (jointly); Kidder, Peabody & Co. and Salo¬ mon Bros. & Hutzler (jointly); Lehman Brothers; Har¬ riman Ripley & Co., Inc. & Co. & Co. Northwest Natural Gas Co. March 23 it was reported that this company plans to finance its proposed 1,300-miles pipeline from Canada to the Pacific Northwest by the issuance and sale of $66;000,000 of 4%% first mortgage pipeline bonds to insuxv ance companies and other institutional investors and 000,000 of 5% debentures and 1,400,000 shares of $9,- common — - i Continued on page 54 The Commercial and Financial Chronicle... 54 Thursday, June 11, 1953 (2562) Continued from page stock at $10 per share / publicly in the United States and Stanley & Co., New Yofk. Ormond Corp., Albuquerque, 10 it was the SEC with querque. an N. M. announced company plans to register issue of stock, which will be offered Central Avenue, N. E., Albu¬ Office—5003 nationally. N. M. Corp. Jan 29 company received FPC permission to file a third substitute application proposing to construct a 1,466mile transmission line extending from the San Juan Basin in New Mexico and Colorado to market areas in the Pacific Northwest. Estimated overall capital cost of the project is $186,000,000, including $2,000,000' for working capital. Financing is expected to consist of first and preferred and common Underwriters—White, Weld & Co. and Kidder, Peabody & Co., both of New York, and Dominion Secu¬ rities Corp. Ltd., Toronto, Canada. mortgage pipe line bonds stocks. Pacific Telephone & Telegraph Co. 17 Mark R. Sullivan, President, announced Dec. additional common stock. Probable bidders for bonds: Halsey, Stuart & Co., Inc.; Morgan Stanley & Co.; White, Weld & Co.; Lehman Borthers and Union Securities Corp. (jointly). Stock would be of¬ fered to stockholders, without underwriting. American Telephone & Telegraph Co., parent, owns 91.25% of ing of bonds and Pacific common Permian shares. Pipeline Co., Chicago, III. amended application with FPC for authority to construct a 163-mile pipeline system at an estimated cost of $40,269,000. Financing may be done privately. Underwriters — Stone & Webster Securities Corp. and Glore, Forgan & Co., both of New York. Of the stock of this company, 51% is now owned by North¬ ern South Carolina Natural Feb. South Georgia Natural Gas Co. 19 it was announced a FPC Presiding Feb. announced company plans to issue and approximately $5,000,000 of bonds and suf¬ ficient common shares to raise about $4,000,000. Proceeds —To repay bank loans and for new construction. Under¬ was — To be determined by competitive bidding. Probable bidders: For bonds, Halsey, Stuart & Co. Inc.; The First Boston Corp. and Coffin & Burr, Inc. (jointly); Kidder, Peabody & Co.; White, Weld & Co. For stock: Kidder, Peabody & Co. and Blyth & Co., Inc. (jointly); Harriman Ripley & Co. Inc. Southern California Edison Co. April 23, William C. Mullendore, President, stated that issue and sell 40,000 shares of new preferred stock (par $H)0)r Under¬ writers To be determined by competitive bidding. Probable bidders: Glore, Forgan & Co.; Smith, Barney & Co.; Kuhn, Loeb & Co.; Harriman Ripley & Co., Inc., and Central Republic Co. (Inc.). Proceeds—For addi¬ tions and improvements. — Public Service Electric & Gas Co. Feb. 25 it was announced company plans issuance and sale in June of $50,000,000 of first refunding mortgage bonds. Proceeds—To repay bank loans and for is considering selling sufficient securities later raise approximately $30,000,000. Proceeds Underwriters—May be determined by competitive bidding. Probable bidders for bonds: Halsey, Stuart & Co. Inc.; The First Boston Corp. and Harris, Hall & Co. (Inc.) (jointly); Blyth & Co., Inc.; Kuhn, Loeb & Co. Probable bidders for preferred: The First Boston Corp. and Harris, Hall & Co. (Inc ) (jointly). company in the year to June 24 for the issue stock by competitive bidding. Probable bidders: White, Weld & Co. and Kidder, Peabody & Co. (jointly); W. C. Langley & Co and Paine, Webber, Jackson & Curtis (jointly); Harriman Ripley & Co. Inc.; Merrill Lynch, Pierce, Fenner & Beane and Union Securities Corp. (jointly); Lehman Brothers; Blyth & Co. Inc., and Stone & Webster Securities Corp. (jointly). v-v '^^ // ^j^.- Strategic Materials Corp., Buffalo, N. Y. was reported company plans to offer for sub¬ scription by its additional common common stockholders about $1,000,000 of stock. Underwriters—Hamlin & Lunv Buffalo, N. Y., and Allen & Co., New York. securities sufficient to raise several millions approximately $27,000,000 will be required financing in the future in connection $35,300,000 construction program planned for Seeck & Kade, Inc., New York an¬ nounced that bids would be received up to 3 p.m. (EDT) on June 30 for the purchase from the of capital to finance two new manufacturing division projects in each of which it would own a 50% interest Underwriter—Eastman, Dillon & Co., New York. April 21 stockholders the authorized Probable bidders for bonds: shares and to amend a stock from the to provide that the limit on the amount of unse¬ cured indebtdeness that the company may create, as without consent of majority of the preferred stockhold¬ ers shall be 20% (instead of 10%) of the aggregate oi company's secured indebtedness and capital Charles E. Ide, President, stated that the has no present plans to issue new common First Boston Corp. and Collin, Norton & any common bonds: and surplus managemenl shares. stock financing. Halsey, Stuart & Co. Inc.; The First Boston penditures in 1954 and 1955 may Baltimore and adjacent territory. approximate this year's figure. The area served with electricity Funds required to carry out the contains approximately 2,285 proposed construction program, in square miles with an estimated addition to those provided through population of about 1,500,000, and the current financing, are ex- the area served with gas contains pected to be provided by accruals Halsey, Stuart & Co. Inc. and to reserves, and through the fur- about 267 square miles with an associates are estimated population of 1,250,000. offering today ther issuance of securities. (June 11) $25,000,000 ConsoliThe new bonds are to be reOperating revenues of the com¬ dated Gas Electric Light & Power deemable at regular redemption pany aggregate $90,868,674 ; for Co. of Baltimore first refunding prices ranging from 105.24% to mortgage sinking fund bonds, par, and if redeemed through the 1952; gross income was $13,604,541 !?J3es Y 3/8%, due June 1, 1983. sinking fund, at prices ranging and net income was $10,139,982. Offered at 102.239% and accrued from 102.24% to par, plus accrued interest, the bonds were won by interest in each case. Offer Consol. Gas El. Lf. & Pow. Bonds nPtiti^de/Xrin^gT,lr°UoP „a 4 CT,' Consolidated Gas Electric Light nf fi4Qqqq£ JU°e 9 °n a bld& Power Co. of Baltimore is COMING gaged principally in the business of producing and selling electricity and gas within the State of EVENTS m , proceeds from bonds the will be sale used of for The Co. handled Probable bidders on Halsey, Stuart Group new Hal¬ proposal to increase 5,000,000 to 7,500,000 articles of incorporation so approved common In Investment 3 announced company plans to issue and^gell about $20,000,000 of common was stockholders common stock l-for-15 basis (with an on a oversubscription priv¬ ilege). Proceeds—For 1953 construction program. Under¬ writer— None. Offering —r Tentatively scheduled: for ' late in June / .,'-r United Gas Corp. '. s announced company (in addition to aboveproposed stock offering) plans to issue "and sell about $30,000,000 of debentures. Proceeds—For 1953 construction program. Underwriters—To be determined by competitive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley & Co,, White, Weld Co. and Equitable Securities Corp. (jointly) ; The First Bos¬ ton Corp., Harriman Ripley & Co. Inc. and Goldman, May 1 it was mentioned (jointly). Offering—Expected later in i953 Sachs & Co. Walworth Co. March and *' ' stockholders 25 increase to voted authorized stock from 1,900,000 shares to 2,500,000 shares common to grant directors right to issue all or part of in¬ stock without prior offering to stockholders; reserve part of the additional shares for issue conversion of convertible 3%% debentures due creased also to May 1,1976. Underwriter—May be Paine, Webber, Jack¬ son & Curtis, New York and Boston. r Washington Water Power Co. April 10 it announced directors have approved the in May of $10,000,000 of first mort¬ was sale and $18,000,000 of debentures. Proceeds— of bank loans and to redeem 3$,000 shares of $6 preferred stock at $110 per share. Under¬ writers.—If competitive^ bidders may include: Halsey, bonds and To repay $24,000,000 Stuart & Co. Inc.; Union Securities Corp. and Lehman (jointly); Blyth & Co., Inc., Smith, Barney & Brothers Co. and White, Weld & Co (jointly); W. C. Langley & Corp. (jointly). However, both issues may be sold privately through Kidder, Peabody Co, and The First Boston & Co. > ■ ■"n ■ ■ ■■■• ..} . Westcoast Transmission April 10 it stated company may-4sstteT add sell $59,-. was 000,000 of 4% first mortgage bonds to insurance com-** panies (including Prudential Insurance Co. of America, New York Life Insurance Co.; Northwestern Mutual Life ancLjseveral Co. Canadian companies); $25,- to 4% short-term notes to the National 000,000 of 3% City Bank of New York; and about 3,500,000 shares of stock for about $30,000,000. Proceeds—To fi¬ nance construction of a natural gas pipe line from the Canadian Peace River field to western Washington: and Oregon. Underwriter—Eastman, Dillon & Co., New York. common West Texas Utilities Co. was Stuart & Co. Inc.; Stone & Webster Securities Corp. White, Weld & Co. (jointly). latest Government of Net to March Field general York Beach Club, reported that company plans issuance was shares of new preferred stock. Under¬ determined by competitive bidding. bidders: Stone & Webster Securities Corp.; Probable Harriman Ripley & Co., Inc.; Union Securities Corp. Wisconsin Public Service Corp. was reported that the company may, late'this March 17 it early in 1954 issue and sell some common stock out its financing program. Underwriter—May First Boston Corp. and Robert W. Baird & Co. (jointly). year or to round be The Worcester Gas April 2 it was Light Co. , 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¬ gage bonds. Proceeds—To retire bank loans, etc. Under¬ writers—To be determined by competitive bidding. Prob¬ able bidders: Halsey, Stuart & Inc.; Co. First Boston Corp.: Blyth & Co.. Inc.: Kidder. Peabody & Co (New York City) Bond Annual Westchester it writers—May be June 12, 1953 Municipal 2 and sale of 100,000 Toledo Edison Co. 1953 and 1954. the of dollars Webster Si United Gas Corp. Insurance / " Sunray Oil Corp. May 13 company disclosed it is planning to issue and sell and additional was —Probably White, Weld & Co. and Stone & Securities Corp., both of New York . / gage announced company later this year will and sell 50,000 shares of cumulative preferred (oar $100). Underwriters — May be determined was Corp. reported company may issue some con¬ vertible preferred stock before the Fall. Underwriters issuance Bros. & Hutzler. sey, SEC), (6/30) Attorney General of the United States Transcontinental Gas Pipe Line May 4 it upon (EDT) purchase from it of $8,445,000 equip¬ ment trust certificates to be dated July 1, 1953, and to mature in 15 equal annual instalments from 1954-1968. Probable bidders: Halsey, Stuart & Co. Inc.; Salomon on short-term bank loans. Rochester Gas & Electric Corp. May 8 company announced that, in addition to the pro* ceeds from the current sale of 175,000 shares of new common stock to stockholders (registered May 8 with June 2 the (6/24) reported company expects to do some debt financing this Fall (under $50,000,000) to replace Kuhn, Loeb & Co. and Lehman Brothers (jointly); Mor¬ gan Stanley & Co. and Drexel Jc Co. (jointly); The First Boston Corp. Offering—Postponed. its Corp.; Kidder, Peabody & Co., White, Weld & Lynch, Pierce, Fenner & Beane (jointly); Union Securities Corp.; Smith, Barney & Co. ! ' 1 Co. and Merrill Tennessee Gas Transmission Co. Underwriters—To be determined by competi¬ tive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; with Pacific Co. Southern Bids will be received by the company up to noon March 27 it new con¬ struction. from curities —For 1953 construction program. April 14 it Public Service Co. of Oklahoma March 2 it was reported company may the Examiner a Equitable,Se¬ Corp. and Glore, Forgan & Co. (jointly); May 1 it Examiner decision, subject to Commission review, author¬ izing the company to construct 335 miles of pipeline in Alabama, Georgia and Florida at an estimated cost of $8,141,518. filed April 29 it New Hampshire sell in 1953 writers Gqs Co. FPC Presiding a a Southwestern Gas & Electric Co. Service Co. of it 3 Nov. announced was decision, subject to Commission review, author* izing company to construct approximately 160 miles of pipeline at an estimated cost of $5,945,000. Securities may be sold privately through competitive sale. Natural Gas Co. Public it 19 filed Basin Feb. 4 company filed an reported company was about $300,000 of common stock. Proceeds—For working capital. Underwriter—Miller Securities Co., New York. Offering—Indefinitely postponed. that 1953 will borrow some $125,000,000 from banks to be refinanced later in year, probably by offer¬ in N. J. plans to issue and sell Shield Chemical Corp., Verona, March 26 it Pacific Northwest Pipeline company (par $100) and 250 shares stock (par $100) at the Office of Alien Prop¬ erty, U. S. Court House, Room 115, Foley Square, New York 7, N. Y. Max Kade, President of the company, has agreed to submit a bid for the stock of $650,000. of preferred Canada. Underwriter—Morgan March stock shares of common 500 53 Club Field Day of at Country Club Rye, N. Y. New June' 19, 1953 (New Jersey) Bond Club the nual field and Club. ' of New Jersey day at Rock an¬ Spring ; _ June 19-21, 1953 (Los Ang., Calif.) June 12, 1953 (New York City) Security Traders Association of New York Society of Security Los Angeles annual spring party Analysts spring festival at the at the Arrowhead Lodge, Lake Sleepy Hollow Country Club. Arrowhead, Calif. June 12, 1953 (Philadelphia, Pa.) Investment Traders Association of Philadelphia annual summer outing at the Whitemarsh Valley Country Club. June 25-26/1953 (Cincinnati, Ohio) Municipal Bond Dealers Group of Cincinnati annual party at the Country Club June.. 26; party, Thursday evening Kenwood cocktail June 25. * June 16, 1953 (Detroit, Mich.) Securities Traders Association Of Detroit & Michigan, summer out¬ ing at the Plum Hollow Country June 27, 1953 (Chicago, 111/) ;* Chicago Bond Traders Club An¬ nual. Spring Outing at the Nordic Country Club. corporate purposes, in- Maryland where all of its proper; V Club. eluding proposed construction ex- ties are located. The company June 28-30, 1953 (Santa Barbara, penditures It is presently esti- also is engaged in the sale of gas June 9-12, 1953 (Bigwin, Ontario, June 19, 1953 (Milwaukee, Wis.) mated that the company's, con- and Canada) electrical appliances and E.0^ Milwaukee AnGroup, of Investment Investment Dealers* Association nual Field Day of. the Oconomowoc struction program may require allied merchandise and the proat Ca?Sa Ban^ers expenditures of about $31,000,000 in 1953. Indications are duction that ex-furnishes and sale electricity of steam. and gas It in of Canada Annual Convention.: Lake Bigwin inn, Lake of Bays District Club Country Club. and Association second * an- Oconomowoc nual conference at the Santa Barbara Biltmore. > Volume 177 Number 5228... The Commercial and Financial Chronicle (2563) fore expiring, the stock market as ran off, the when-issued for the debentures, indicated that 10014-100^2, Decca Records Offer fair short interest a have accumulated. may Decca relatively a showing good A this week in face of further mild in the seasoned bond nervousness list definite and in the weakness equity market. the Perhaps > approach ipid-year reinvestment dividuals season was institutions and in¬ factor with a the of inclined anticipate to share interest payments and dividends. At that rather a it rate any indicated was formidable demand soaking up new issues being marketed currently with virtually all of the General Motors Accept¬ was Corp.'s intermediate de¬ bentures, due to be offered today, having been spoken for. Consolidated Gas, Electric Light of Baltimore's $25,- Co. Power 000,000 of first and refunding 30- which the top bid was separated by only about $1 a bond from the second mortgage bonds year on tender, set the pace. This issue • been reported to have was taken up quickly with in¬ companies, .savings banks and pension funds absorbing the bulk of the bonds at the offering surance price of 102.239 for indicated an yield of 3.75%. • • : ; Filling Carrying top credit rating, Gen¬ Motors Acceptance Corp.'s term relatively of short- debentures (they mature July 1, 1958) had the further at"traction of that intermediate ma¬ turity. - . It 100% at They two will deemable at months non-callable will 102% ended Dec. then thereafter to and difficult to a remember diesel equipment debentures will the for porfolios many into which it fitted nicely. The offering today, with pre¬ liminary inquiries indicating quick oversubscription, was ex¬ priced at for par a coupon. Slower of ported to re¬ but at a Paying the company price of 100.56 for 4V2S, the suc¬ cessful banking group reoffered at 102 for a yield of 4.35%. banking would groups three that indicated in be $320,398,000 at the of end had been, group received. decided to sumably due to - a The third , withdraw pre¬ The 20-year maturity, which got at the end of April 1953, 1952. increase the end speed up the months, counted to on help distribution. 000 of operation lowing the were the results income the in and had 1948 in increased of 342,800 of the all total but taken by its This had meant been by that bankers by" who would take down the unsold balance for public offering. Though "rights" virtually evaporated No. this One Louis, Raton, Rocky New COMMON Dollar and shares of 1, Ce. 1953. No. 114 L. BONNYMAN, Treasurer. Twen¬ PHELPS PIERCE meeting held •$> declared 4th, June dividend payable June 29th to (300) a of Directors has quarterly dividend of Sixty-five Cents (654) directors that Thursday, cent Board GOVERNOR of our last thirty declared, a DODGE CORPORATION £ ; COMPANY a Pacific & June DIVIDEND the on The was busi¬ ($1.25) 109 ; In of Secretary. de¬ Company, THE Mountain Mexico, STOCK P. day -per share, being Divi¬ Preferred, Capital Stock payable AuiMst 1, 1953, out of undivided net profits for the year ending June 30, 1953, to holders of said Preferred Capital Stock registered on the books of the Company at the close of business June 26, 1953. D. C. WILSON, Assistant Treasurer, 120 Broadway, New York 5, N. Y. dend of close closed. the on capital was Corporation, our Per payable share of stock this June 10, stockholders of record on June 15th. 1953 FLEECE, W. stockholders to of record May 22, 1953. pres¬ M. W. URQUHART, i war¬ Treasurer common THE COLUMBIA GAS SYSTEM, ad¬ an are Board of May 6,1953 INC. day the following quarterly dividend: engaged in the busi¬ of rec¬ the declared this has Directors Common Stock No. 76, 200 per payable record on share August 15, 1953, to holders of 20, 1953. close of business July at Dale Parker the Mining and Manufacturing by others. Certain other Secretary June 4, 1953 Phosphate The Electric Storage Battery t . on Regular * per Share. a » Regular Quarterly Dividend of Forty Cents (40c) Per Share. share at June 16, 1953. Checks will be mailed. Both dividends 1953, to are payable June 30, stockholders of record at the close of business June 19, 1953. Checks will be mailed. H. C. ALLAN, Secretary and Treasurer Robert P. Resell Philadelphia, June 5, 1953. Vice President and Treasurer were Gilbert Palmer, Na¬ City Bank, Vice-President, named tional and per of record 30, 1953, to stockholders McNelly, Union Bank of Com¬ has been elected President Society of Secu¬ Other officers <$.50) on follows: 45th Consecutive ($1.00) Common Stock, payable June the on cents as $5.00 Par Value Common Stock Accumulated Surplus of the Company Edward declared by the Quarterly Dividend of One Dollar Consecutive ^dividend of fifty Elect New Officers Analysts. Chemicals Products 4%Cuimilative 'Preferred Stock company The Directors have declared from the Analysts were May 28, 1953, ; Quarterly Dividend rity Foods • Amino • Board of Directors . the three moplhs ended. 31, 1953 the company re¬ of the Cleveland Plant • Minerals Dividends music . — Potash of subsid¬ the • Industrial G. Sawyer, Cleveland Secretary-Treasurer. Co., H -tx Pascal Trust r w~t-4 INTERNATIONAL MINERALS + & CHEMICAL CORPORATION investment banking Elected to the executive commitgroup headed by Blyth & Co.," tee were Paul J. Eakin, HornInc. The debentures are priced blower & Weeks, Thomas B. an ' at 102 and interest accrued to yield 4.35%. Commencing in 1956, fund will issue in operate a retire to the by maturity. The redemption price starts optional Proceeds 4y2% sinking full at 106% and scales down from the debentures annually. sale and of from new the sale of 548.000 shares of the util¬ stock common will be used $48,000,000 in outstand¬ ing short-term bank loans and for repay and a operates owns, to Farmers Insurance Co., John M. Marston, Ball, Burge & Kraus, Richard E. Mayne, Cen¬ tral National Bank, Warner Cliffs Iron Co., Charles A. Hoskin, McDonald & Co., and Paul M. Murphy, George W. Blauvelt and David G. Watterson, the three Past Presidents of the Society. The Society also announced that Western Reserve a course next fall to pre¬ specialists in security anal¬ ysis. WANTED ^ ]r1> CORPORATION is producers. expected increase Kansas. owns more system The Board of Directors of Safe¬ The than Permian Basin also 50% equity in company a Pipeline Co. from Northern Natural purchase 300 cubic feet of gas per will milLon day. eventually Operating revenues for the year the 1952 totaled $47.400 000 and gross be¬ income was $6,502,000. of Directors Board declared the following has dividends: STOCK Regular quarterly dividend of the 4 per cent Cumulative Preferred Stock, payable July 1, 1953 to $1.0614 share, per of shareholders dividend A share on record June holders Natural Gas sires connection. the on a Well in Street. Chronicle, New and 25 York 7. Park Place, Stock. June 19, Common Stock dividends and dividends on Secretary- Treasurer the 4% Preferred Stock and 4%% Convertible Preferred Stock July 1, 1953 of record at to are payable stockholders the close of bus¬ iness June 17,1953. MILTON L. SELBY, Secretary June 3, 1953. June 2, 1953 Box V 611, Financial mon $1.00 per share on the 4% Preferred Stock. per Stock, John H. Schmidt WESTCL0X Commercial cents 1953. broad background in trading. known 50 record of stocks, de¬ Has of Common 604 per share on the $5.00 par value Com¬ $1.12% per share on the 4%9o Convertible Preferred Stock. STOCK payable July 1, 1953 to share¬ Specializing in Public Utility way Stores, Incorporated, on June 2, 1953, declared the following quarterly dividends: PREFERRED COMMON and Common and Preferred Stock Dividends Dividends The points other TIME GENERAL 19, 1953. TRADER Chicago 6 14^ f University will present SITUATION General Offices: 20 North Wacker Drive, L. Taylor, H. C. Wainwright & Co., H. Stuart Harrison, Cleveland- pipeline system extending from natural gas fields in Texas, Oklahoma and Kansas to Ohio Rowe, pare company maintains whj^h "standing of St. holds to pur¬ now Cleveland offering of a new issue $40,000,000 Northern Natural construction stockholders. Cents this has the above Company has declared a dividend of Fifty Cents per share on the Common Stock of the Company to stockholders of record at the close of business June 15, 1953, payable June 30, 1953. Transfer books will not be and aggregated $933,265. Public of Present $16,- dividend a ty-five Directors merce, of reporting clared of at 1953. 211th W. from the Board record 1953. 1953. company ported net income of $234,685 and for the full year 1952 net income Blyth Group Offer showed company it CLEVELAND, Ohio capacity to 825 million cubic feet daily north interest, The topeka railway York, N. Y., June 5, the close of business chased sub¬ fe of 30, JOSEPH S. STOUT, June 8, The LANGLEY, Treasurer. atchison, santa operations, engaged in publishing business. to scription rights as of the close of business on Tuesday. The figures tremendous current are 1952. fol¬ made known expiration other than for corporation's iaries in¬ this of C. (15c) per share day on the capital payable July 15, 1953 declared this the Corporation June ness CORPORATION cents Universal, which would ufactured in Kansas, Nebraska, Iowa, Minnesota and South Da¬ kota. Approximately 83% of its requirements in 1952 were pur¬ 30-year convertible debentures. 'Yesterday to any phonograph Through a subsidiary, corporation also engages in " operating The investment bankers, opened sub¬ scriptions on "rights" for $162,- >■ Pictures 403 this from $21,063,000 Phillips Pete Debentures new used from ords. For additional construction to increase Late last month Phillips Petro¬ leum Co., through a syndicate of the recording, manufacture and March system capacity. 222,000 of for distribution $33,392,000 in 1948 to $125,404,000 in 1952. Net in¬ come, after all taxes, was $5,583,- to factor of totaled of 1952. the a Universal 37,500 of showed a 24.7% since receivables further ity's was may of this of to stockholders Secretary-Treasurer ness At the end of turities that has been prevalent in over as Decca Records Inc. and its sub¬ $1,622,717,000 conflict of ideas. it out of the "rut" of 30-year ma¬ utility field funds, to be purpose and sidiaries 1947, and had increased to the running but when the time came for opening of tenders, only two held W. The Receivables, after de¬ ducting applicable reserves, were 11) been gen¬ NO. Directors Company, at day, declared an interim dividend for the second quarter of 1953, of One Dollar ($1.00) a share on the outstanding capital stock of this Company, payable on June 27, 1953, to stockholders of record at the close of business on June 18, 1953. Meeting fifteen been stock 1953. 10, of ditional $375,000. Gas Co. 41/2% sinking fund deben¬ tures is being made today (June had the require the investment of provide 3 Up until the day of the bidding of has Y. M. chase for slower pace. it additional to of the net proceeds stock No. Nat. Gas Debs. were Board N. 5, June DIVIDEND The a received five years. Absorption debentures be moving the York NOTICES SHARES Wall Street, New York dividend phonographs, needles and other accessories, all of which are man¬ Northern Natural Gas Co.'s $40,- 000,000 New ' will distribution of phonographs, radio- Total to be be added of rants which additional working capital for the purchase of receivables. The com¬ creased pected Co. except that the corporation ently intends to exercise the The net proceeds from the sale the Broadway, 14 A ables railroads and other industries. of of be Rosario financing inventories and receiv¬ financing, the re¬ maining 7% being derived from the financing of other products, such as electric refrigerators and air conditioners, heating equip¬ an subscribe were greater vol¬ automobile and to purposes particular financing than other finance company in the States. During 1952, ap¬ proximately 93% of its business ment, & present plans for devoting the excess United issue of that duration. And doubt¬ there no any was Marks corporate securities of automotive ume held. Co., Inc., will be restored to work¬ ing capital. The corporation has sidiary of General Motors Corp., believes that it does 120 unsubscribed shares. sale such Honduras & $1,000,000 which has been ex¬ pended in additional purchases of sub¬ a offering time to time be determined by the board of directors. The sum of re¬ including June which is company, opportunity to eral for 30, 1957, and at 100% thereafter. The the shares will for be M. any proceeds from during the six 31, 1955, de¬ $2,023,992,000, ' which is Net clining V2 of 1% each six months an 4% be and years York New in¬ accrued is shares 3V4 DIVIDEND NATIONAL underwriting group Reynolds & Co. and by Laurence terest. last time institutions have had less and each An purchase has experienced a large ex¬ pansion in its business in the last eral $150,000,000 1953. headed Morgan Stanley & Co. The deben¬ tures mature July 1, 1958, and are priced for NOTICES Mining Company pany Spot a $150,000,000 tionwide banking group including 237 investment firms, headed by ance & of General Motors Acceptance Corp. five-year 4% debentures was marketed on June 11 by a na¬ the pending influx of semi-annual ,2 issue new New The subscription offer will expire at 3:30 p.m. (EDST) on June 25, Acceptance Debs. The corporate new issue market Inc. 318,625 additional shares at $9.20 per share on the basis of one Offer General Motors made Records holders of its capital stock of rec¬ ord June 9 rights to subscribe for Morgan Stanley Group - DIVIDEND Bankers Underwrite "quote" 55 • BIG BEN SETH THOMAS STR0MBERG HAYD0N RECORDERS MOTORS *59 The Commercial and Financial Chronicle.. .Thursday, June 11, 1953 (2564) A Washington, •• • A BeTwnJ-tht-Scent Interpretations tions below the the difference that -i - active t; \ gym m — it The CrO committee, until recently called the Committee on Ex¬ penditures in the Executive De¬ partments, may inquire into omy of the administrative meth¬ ods and operational techniques of any Executive agency, to de¬ termine whether they are being story It > Commerce Banking Com¬ Senate, which the said would create stench a the White House. and with Then p to with President heck EPT is meantime fresh poll on because these not asked to profound a on ing their decided least SEC in many their recheck neutrality" competitive, private who $10,000 or so hower in order to get head¬ no basis for which the staff make against persons subject to lines, when there is Show" actually Results the ••• spend 1953, the yond its control, year, as such abuse. watching eagerly to "They make the climate liealthy for their friends and the cuahealthy for enemies," said Committee to vote to report out an EPT extension. Fxplore Second, man into their personal the Ohio "the • a year, as be¬ Truman a as treats something they cannot affect). whether force current will The ma¬ Mr. ^ as Truman year's expendi¬ estimated in January by will amount whole in the ranks of operation" of SEC. "Why is it that the whole for operation ministration would show so build up its case for the Aid, Trade & The Tariff—How¬ ard S. to York 16, to Congressional commit¬ the press, or on the that fact The estimated for at billion less less (and $1.2 year that '54), for Truman's forecast Mr. stated innumerable occasions by the the Eisen¬ of effect net hower Administration economies will far so be merely to hold approxi¬ mately the highest postwar year of Truman On at spending spending. other the not made the upon IF the vigorous attack it extravagance in gov¬ ernment, rate the actual of spending might have risen much more than the $4.5 billion that Mr. Eisenhower says with spending, Mr. for the as Truman's new radio has used this current year IF be a apparently member and later of so was If Ike very see themselves he will re¬ been safe crats to oppose certain lay in filling their places. cies Such er, a delay, said Mr. Bend¬ is not conducive to the SEC fulfilling its function—"its only function"—the protection of in¬ vestors, he added. about the Congressman, Small SEC, said the is its ineptness. business, it almost he said, impossible southern Democratic 2 the to finds get a in FOREIGN SECURITIES I t a cut of are firm Presidents I a Trading Markets on House relatively Republican Conservative the Y.—Paper— Practices and Price Price icies—Jules ald Pol¬ Ron¬ Company, 15 East 26tb. Press Street, Backman—The York New 10, Y.— N. Cloth—$8. Winning in Wall Street—Ira Company, Inc., 225 Park Avenue^ N. Y.—$2.00. TRADING MARKETS E. KEITH PR. PFD. few con¬ other hand. Republicans can find themselves pilloried for not IRVING SHOE COM. RIVERSIDE CEMENT 'B' COPLAY CEMENT PFD. I I or P-ARL MARKS & PP. INC. I I « s I >•'% * ■ 19 Bread Stmt... New Toft 4, X Y. . * % .* % NATIONAL CO. COMMON SENECA FALLS POLAROID CORP. i !ir" W:HA«owr 2-0030 10 Post Office Tobtypo KT M71 Square, Boston 9,Mass« Telephone HUbbard 2-1990 m mintMmk mmrnrn mt.m mmmmmmmmmm Securities # V 'mm 1ST PFD. LERNER & CO. Investment > MACHINE I foreign* Securities Specialists I % stituencies, N. 38, % l « " r North" York $2.50.' THOS. G. PLANT 1ST PFD. I There "solid to poration Company, 160 Broadway^ JOHN tenden¬ " anti-White Revised in Korea, Congress is likely to drive for a secure the re-election of then Corporations: April 21, 1953—United States Cor¬ New York 17, con¬ threaten, but rather secured helped New York Laws Affecting Busi¬ ness Cobleigh—Dept. 5, David McKay- because such opposition did not ! Roslyn, N. Y.—Fabrikoid—$12.50*. GEO. Demo¬ 7 Democrats. The thing that impresses him most of for — St.„ durable truce appears to secure very and Influence1 Arthur H. Richland compared projections fiscal year. thing dubious spot indeed. It has Chairman of the SEC resign and much de¬ is — GEO. E. KEITH JR. PFD. wins, then these servatives the why there has been so EPT about the most unpopular Interested in knowing why did one continuance How to Raise Cash Bankers New hand, Eisenhower Administration had has Street, New, York 5, N. Y*. —Cloth—$10. Beaver Business Reports, Inc., 1 Main Eisenhower Administration. So 82: Bureau, by these was amounts wrong, has been on Research Commodity 1953—- Year Book: Commodity now billion $1.5 current the is revenue the President could seek. is riow?" he asked. He said he the N. Y.—Cloth—$3.75. it inherited in Federal finances. Cuts to Piquet—Thomas Y. Crowell Company, 2 Fourth Avenue, New- "mess" Truce Opens Drive for Spending tees, deny Mr. Eisenhower, can Mr. Truman is It tion GOP go happened, \ run to conservatives Congress¬ has at more than estimated, the Ad¬ to were — $3.50. If spend¬ $74.6 billion. then there will be little that the f or Crum $74.6 of figure spending The — William Leonard University of California Press, Berkeley 4, Calif.—Cloth— System, Ad¬ the hand, other the duce current tures noteworthy that not a single Administration presenta¬ If this does Operation" declared, he wants to will see jority of the Ways and Means Mr. Bender. "Whole show per 1954 (and Administration new politically- TV pay billions $74.1 minded man, woman, and child in the nation's capital is every On estimated year the complaints Naturally got hand, Mr. Eisen¬ officially Administration his that implored was has Age Structure of the Corporate pensive Truman postwar year. Federal during the fiscal "Road to apiece else one some On the other stand by the top Treasury brass. Watch have now annum. is interested in harassing persons, above their fel¬ initiative they prior to the time their "at even hears, Mr. Bender stated, to own for them to the state of Federal finances, on the public pay¬ on (reduction in force) no¬ tices and are desperately look¬ several NAM board members as that lived have who "RIF" made had impression in scale a life—but Eisenhower Mr. such on lows in the do—by Treas¬ officials. Ihem. cases roll asked to do so—since they ury Along this line that he wants to -fiee if there is any basis for -that the staff of comfortably they were in fact making some cuts individuals of the six-months extension of EPT his and expenditures. Such evidences are any number in the press reports, the NAM'S a million less than in the most ex¬ ing city that Eisenhower are definite Rate of this only $500 is that he will spend billion by implication. walking evidences are streets Cabinet contrary impression Board of Directors did not take complaints in advance of the Investigation," said Mr. Bender, Adding, however, that he had lieard so very many complaints He the President Did Not Pressure NAM against prejudging There on a that Mr. Eisenhower's best guess ministration accepts this current at Spend Truman Peak crats have got over Despite spending figure, for if it were the contrast would show done year to Ike will be because Demo¬ their peeve. it out, he pro¬ :vV/. grams. If : against free and internationalist and later voted or were not am trade said Ike., balanced a tax reduction, and and reduction tax the Democratic Adminis¬ the Democrats got sore, and President popular to be for yet defeated in their own con¬ stituencies for not voting for "road tration had left the finances in, mission." *T a seems budget - TV Ike's show," pouring into homes what unfriendly to the Com¬ persons GOP, the budget, and backing things do not who said, that favorites. He and "Old P. J. never quite learned how to get away from business!" this spreading further dissension be¬ said, that "play favorites to six for Tax tween conservative Republicans ' Bender with its friends which to the and Ways the that ; they, ing he playing tends & in exchange firms, have been elected committee, according exchange announcement. good strategy, show- : be a mess Bender, Mr. in saved Ike's tax and inquire into "numer¬ complaints," SEC Hoffman P. Wm. partners ing "bail to months. Democrats thought phases of SEC business. Mr. of all member Class B members of the nominat¬ Democrats Profits Excess however, said that he wants his Public Ac¬ counts subcommittee to go into is Winter Co., Means Committee to extend the Bender, SEC , , , voting by jurisdiction. fiave legislative Itears, of term suitable "war of nerves" wait a operates Inter¬ Committee of the House or the ous a out" President Eisenhower after would be initiated by the First, for has been announced by McCormick, President Exchange.> Arthur J. Conroy of Conroy & Co., John J. Miles, Jr., of Adriance & Finn, and Theodore A. the original intention was House of -laws under which SEC wants to committee year, the of re¬ on Democratic from comes sources: hon¬ distinguishes ft from a committee which lutings down laws or modifica¬ tions of laws for the Executive •Agencies to administer. Thus, -«ny substantive change in the two going drama garding Excess Profits Tax (one is the House Ways and Means Committee; the other is the national TV hook-up) this ^housekeeping. This Mr. one stage sort watchdog of the government's of and regular members of the Amer¬ ican Stock Exchange, as Class A members of the Exchange's nomi¬ Ike on Gilligan, Garry OnFrederick J. Roth, McGarry, Edward T. This committee is thus a mittee derdonk all with the two- connection In threatre ^administering. state A. nating Irked Dems estly, and in conformance with -fiie law or laws the agency is of Joseph mittee. Government Operations. conducted efficiently and For American S. E. The election of James Bender subcom¬ the of plans Nominating Comm. some As of this writing, how¬ ever, the full committee had not been notified of the inquiry Public Accounts subcom¬ mittee of the House Committee on On indicated Bender ings. -the not coincide with own views.) "Chronicle's" '<$< . preliminary work already was under way and that it would lead eventually to public hear¬ of Chairman is Bender * the can Mr. mission. Mr. fir* < / . ness. Exchange Com¬ Securities and capital issue approved so establish itself in busi¬ risk Rep. Republi¬ can, a seasoned legislator serving his seventh term in the House, announced that he is 4;oing to conduct a thorough in¬ quiry into the operations of the betwqen an''J (This column is intended to re-\ fleet the "behind the scene" inter¬ pretation from the nation's Capital i!Wx li ' f , : is thought M holding troops there is in neighborhood of $5 billion. the WASHINGTON, D. C. desired by in Korea and war and may or may CJeorge Bender, Ohio in appropria-: sums Mr. Eisenhower, for it M> " xlIIsli/ fromtheNation'*Capital . • $5 billion to up BUSINESS BUZZ mmmm*' Teletype BS 69